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05-08-2011, 04:03 PM
(05-08-2011, 02:11 PM)Musicwhiz Wrote:(05-08-2011, 02:03 PM)freedom Wrote: it is really not wise to average down a loser.
buying a winner is much better than averaging down a loser, imo.
This is pretty subjective. One should closely observe and understand the business in order to make such decisions. At least one has to make sure it is a rational, informed decision.
Depending on circumstances, I have averaged up and down before, and thus far have not regretted it.
Wow! You are good.
i have average down for long-term holdings and not doing to bad.
But i have averaged down CHINA HONGX (speculating) too much and when i realised and cut loss i have lost a bundle. In the beginning i made easy money from CHINA HONGX like everyone else that might be the reason/ "trap".
Any way never been good at short-term trading.
i think it's not in my psyche.
i am in the process of learning how to average up. (Pyramid Up)
i think it's a safer and most probably will save you some money too.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.