Investing 102

[GregWeld]

Originally Posted by CRCRFT78

Thank you for the insight Greg. I didn't think to look at it from that perspective because the bleeders don't scare me into making any irrational decisions (buying high selling low). I'm in this for the long haul and given my time line I believe KMI & CAT will/should recover. One reason why I was considering buying ATT to add to my positions.

Just to make sure I'm understanding what your explaining to me. Buying shares at a lower cost per share will bring my average cost per share down which should help speed up my recovery IF the stock price rises and does not decline further because now the gap has become smaller between my losses and breaking even. Selling the long-term shares of KMI will eliminate the higher cost per share keeping the new shares at the lower cost basis allowing my gains to become more substantial IF the share price rises by not having to make up as much ground to recover.

I think I just repeated what you said but I need to make sure I'm understanding it.

Yes --- you're following perfectly.


This is only one opinion... and you need to follow what YOU want to do. Not what I suggest. I'm just tossing this out here because it's a good subject for Investing 102. Just ways to think about stocks... and we've not been in a period where people are experiencing losses. The market has mostly gone UP since we started this whole thing. So I actually like this new "issue"... and it is a good subject. What to do when things aren't going your way.