Monday, October 10, 2011

Thoughts in Arts: Averaging Down



I really don't have any problems averaging down - that is, if I'm Investing.
But when it comes to trading, Averaging down is a big NO-NO.

Some traders when stuck, would find their hope rekindled when their issue rallies.
And if they have the money, they add to their losing position.

This kind of situation is like finding light dangling in some pitch black abyss.



Ain't that Light just pretty you'd touch it? 







Well, most traders just don't see the BIG Picture. 





There are always Big Evil Fishes behind these rallies.


Of course.. It's just me talking.

14 comments:

  1. This post reminds me of EDC yesterday (Friday).
    It's up @ 5.20+... then at the closing, it's down @5.0+

    Dead cat bounce.

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  2. but after 3 years, it's now 8. why waste your energy watching your stocks everyday? :)

    ReplyDelete
    Replies
    1. because by wasting your energy into watching the right stocks can yield to greater profits. ;)

      Delete
    2. but after 4 years, it becomes 5.0+.
      I therefore conclude Zee Freaks is right.

      Delete
    3. but after 5 years, it's still 5.0+ (5.65 to be exact). ^_^

      Delete
    4. but after 6 years it;s still 5.0+ (5.58 to be exactER) (-_-)

      Delete
    5. and now it is gone

      Delete
  3. Hi sir, when is the right time to add more positions to a stock that you own? Previously from one of your blog you mentioned that when you sell one company, you use the money to add to your current positions.

    ReplyDelete
    Replies
    1. Adding on breakouts would be the safest way.

      Delete
  4. Funny, just before I read this post nag average down ako... well, like 3 mins ago. HAHAHA! Okay lang, at least I will now learn.

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  5. lame question of a newbie [me]: what do you mean averaging down in trading po? TIA.

    ReplyDelete
    Replies
    1. averaging down is when you add to your losing position. There are others who suggest to average down to lessen the loss but the truth is it will just magnify your loss.

      Delete
  6. thank you po uli..
    kung itong blog nyo po ay mas maaga ko nabasa before kahapon nag bagsakan cguro tatawanan ko nalang ang mga big fish..
    napakalaking tulong nito sakin kase ito yung hinahanap ko na mga gusto matutunan yung galawan nang mga timawa..

    ReplyDelete