Saturday 24 December 2011

Keep averaging down on your favourite stocks???

Read? Will you dump more than 50% of your capital at one go into your investment?

Not the first time and will not be the last time that I am hearing it again from the mouth of a big loser

I came to realise that there two groups of retail investors who are more likely to average down on their losing stocks to build up fairly large positions in their portfolio. They are smart ones or ignorant ones.

The rest of us who thinks that we are not that smart and are still attending lectures and doing tutorials in the University of Stock Market better stay far away from it. It is really very difficult to recover from huge losses in our portfolio without injecting significant new capital into our portfolio. How many of us can keep injecting more and more capital for investment?

No comments:

Post a Comment