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Strategies & Market Trends : Investing during a Bear Market

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To: Tommaso who wrote (180)11/14/1997 11:00:00 AM
From: Richard Estes  Read Replies (3) of 226
 
"Very good" companies can go down, and stay that way, or take years to come back. IBM from it's 1987 high took ten years. I don't know what a "very good" company is. I sometimes think the definition of a good stock is name recognition.

In this time of $10-25 commissions, Why would anyone hold a stock where you have a 50% loss and add to it, on the hope/wish that it will go back someday. SELL a looser, buy it back later. Don't feed a loser. You are suggesting putting more money at risk after a 50% decrease in capital. Think about what you said. Bull markets can make people believe every stock will return to old highs.

Margin allows doubling profits, but also causing doubling of losses. If you can't sell, don't buy on margin. If you can't sell a loser, don't get in the market.
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