Quote:
Originally Posted by captainofiron
Hows everyone doing on oil?
I must say I was tempted to sell back when I was under ~25%
But I didnt and instead threw a grand at it from my former companies 401k
so far looks like it helped, with the lower cost basis as of this morning I am "only" -1.6%
Just wanted to say thanks to Greg and the other financial wizards posting on here, if not for you guys, I would have sold it when the pressure was on
|
So this is exactly what I just wrote about when I responded to Jay's question above. You AVERAGED DOWN your cost -- getting them closer to where the stock is currently trading. This way it only has to go up a little to get your loss smaller or maybe even turn it into a gain. THIS DOES NOT ALWAYS WORK THIS WAY. Trust me -- I've lost plenty of times trying to catch the falling knife!! But you have to TRY -- and you have to have CONVICTION about the name and be willing to take some risk like this once in awhile. It's HOW YOU FEEL about the names your investing in - that keeps you from folding like a blubbering little school girl when things aren't so rosy! That's when you make some money!! Is it HARD to do? Oh hell yeah. Will you lose sometimes? Oh hell yeah! But we have to look at our pile of money as just that -- the pile -- if the pile is growing overall --- then we're okay. So if you're winning on 6 out of 10 investments -- and even on 2 - and losing on 2 - it's okay! You'll rarely if ever have all 10 firing all at the same time.