09-08-2014, 01:32 PM
(07-04-2014, 02:11 PM)sunrocker Wrote: But what if your avg price is down more than the STI? For example, your avg price is down 10% while the STI is down 5%. Should you avg down or wait for STI to go down to 10%?
Which is the optimal way to avg down? Based on avg price or current price?
http://www.investmentmoats.com/wealth-bu...revisited/
This is a great article to explain averaging down.
I would say that looking at the numbers, it would be best to average down for every 10% drop
Disclaimer :-
I am not an investment professional.
I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.
Nothing written here is an invitation to buy or sell any particular stock.
At most, I am handing out an educated guess as to what the markets may do.
The market will always find a new way to make a fool out of me (and maybe, even you!).
Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.
I am not immune to that, so please understand that any past success of mine will probably be followed by failures
I am not an investment professional.
I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.
Nothing written here is an invitation to buy or sell any particular stock.
At most, I am handing out an educated guess as to what the markets may do.
The market will always find a new way to make a fool out of me (and maybe, even you!).
Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.
I am not immune to that, so please understand that any past success of mine will probably be followed by failures