I agree with Flack
When a stock goes down, you never know how far it will fall. The only thing you really know for sure is if you sell , you will get out with the loss you see in front of you . To many times I have averaged down on a so-called great company , only to find it keeps falling. BTW , the one stock I did this with really taught me a lesson , it still down and this is 5 years later. I was new at investing, and read the papers, and time and time again , they said how great at stock it was. I looked at its trading pattern over a 5 year period, it screamed buy me. So I did, all the while not realizing the sector was about to turn off . Now, I have zero tolerance for a loss, this trade has helped me do very well in this industry . It taught me never to try and catch a falling piano , and only have loyality to one thing ( the ticker) . (imho) |
