Quote:
Originally Posted by GregWeld
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.
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I'm going to have to add to this ----
ALWAYS go back and redouble your research before investing more!! Go back and really make certain this is a company that's "okay" and you're comfortable holding. Make sure there's not news you missed about the companies outlook etc.
In other words --- DON'T JUST GAMBLE. Don't just make a bet that you'll buy more on the dips and it will reward you!! You'll feel way better about investing if you've atleast done your homework and think that you have a really good understanding of where you're money is going to work. If you still feel it's a good investment - then go ahead and add to your holdings while it's down.