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Old 06-03-2009, 09:22 AM   Nav to Top  #31
AndyB
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Originally Posted by mahmissa View Post
Then made my second, and larger error: told the hubby over dinner one night. Yep.
Hah - I have the same issue with my wife. She now gets strategic quarterly trading updates from AndyB Enterprises Ltd

BTW a general comment, in my experience I've found averaging down to generally be a bad idea unless you planned it (scaling in) and are sure of the eventual direction of that stock (i.e. its severely undervalued).

Averaging down allocates the most amount of capital to the worst performers in your portfolio. Another method, averaging up (Google "Reverse Scale Trading" for a nice article on this) sounds crazy but gives you far better probability of success, as capital is allocated to the best performing stocks, plus it lets you ride a run for further than you normally would.
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Old 06-03-2009, 10:18 AM   Nav to Top  #32
kuba
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Originally Posted by AndyB View Post
BTW a general comment, in my experience I've found averaging down to generally be a bad idea unless you planned it (scaling in) and are sure of the eventual direction of that stock (i.e. its severely undervalued).

Averaging down allocates the most amount of capital to the worst performers in your portfolio. Another method, averaging up (Google "Reverse Scale Trading" for a nice article on this) sounds crazy but gives you far better probability of success, as capital is allocated to the best performing stocks, plus it lets you ride a run for further than you normally would.
I think that I have to agree in a sense. I have done some averaging down in rather poorly performing stocks and I will take out the averaged-down chunk of shares when they are break-even, and move this money to better performing stocks.

I understand now that averaging down makes sense like you said -- when the stock is supposed to perform well long-term.

But since I'm really trading for only 2 months now, I will wait a bit, stuff is bound to rebound eventually

An my definition of a poorly performing stock takes very short timeframe into account (1 month), and may be entirely wrong in general. My intention is to hold most portfolio for 1-1.5 weeks at most.
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Old 12-16-2012, 05:19 PM   Nav to Top  #33
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I bought Bank of America because I saw it on CNBC web site. Got burned for it.
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Last edited by rmartish; 12-16-2012 at 05:57 PM..
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Old 12-08-2013, 08:38 AM   Nav to Top  #34
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Bought $1000.00 worth of NTEK in the spring at .013 per share held for one week till it fell to .01 got completely out of my position only to watch it skyrocket a couple weeks later and it didn't slow down till it hit .17 a few months later. Lesson, have patience and a little faith in your DD. More recently bought into FNMA during the summer for $1.47 just to watch it fall to $1.00 held on to it and am now in the $2.70's. So far a lesson well learned.
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Old 06-04-2014, 07:00 PM   Nav to Top  #35
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Started trading in January. Spent about 5500 in 5 different stocks, about 1000 each. Bought
Ashr, itb, camp, two, and slw. All in my Roth ira. I'm 24 years old, just getting in. I bought a service
From stansburry and associates. That's where I got my recommendations. I saw they have a good track
record. All 5 are down, one about 30%. Down $1000 right now. Wanting to sell camp, but also wanting to wait for it to go back up! I looked into all the stocks before I bought and thought I was making an educated decision. Just trying to save fore retirement for my family. I also bought 5 acres on the big island of Hawaii. Any advice from more experienced traders? I also was approved level 2 for options in Feb. But am not going to mess with them until I am more experienced. Thinking of just riding out the loss I have in stocks, waiting for them to go up. Although going in my plan was to use a 25% stop. Any advice? Please and thank you
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Old 08-02-2019, 10:35 AM   Nav to Top  #36
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So far so good, no spam for two days now...Sorry if some of you have to hit the verification code for a few posts, but they will disappear after you make 5 posts or so.
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