Doubling down on a falling stock is a bad idea if you need the money or you're using margin debt, i.e. if you're looking for a short-term pop. The market doesn't reward wannabe heroes. If you're willing to endure long months, and perhaps years, of pain, however, it may be a profitable strategy.
That said, this morning I converted 100% of my regular portfolio to NTAP. Then I converted 100% of my IRA to NTAP. No, I'm not joking, and yes, I know this is risky. I don't use margin, and this is long-term money -- I have gotten out of the very tempting but very destructive habit of depending on stock gains to pay for living expenses (did buy myself a lot of nice audio equipment with a few small sellls back in the $150 days though :-) ).
My total cost basis? I dunno, probably around $10, but it still hurts to see $150 to $37. I wonder what the folks whose cost basis is $150 are feeling, and whether they're still holding on.
DS has some great insights on Netapp vs EMC. Thanks again to him for keeping us well-informed, especially on EMC's "NAS" efforts. |
