You could be right; however, averaging down is important if you bought much too high and you still believe in the stock. You are in the market to make money and that goal may never be reached if, in hindsight, you started buying too high or too early. Since my beginning price in the stock on a split adjusted basis is almost $7 .... I had to average down. Although this stock may see that price again, I am not forseeing it in the near future .... and if I did not continue to average down, even this past year at prices in excess of .50, I would still have an average price over $5.
Yes ... I have too much of this stock, especially if I am wrong and this thing does not go back up. But then, I can't have enough if this thing does go up to $1, $2, and then some.
Averaging down depends on how much you believe in a company and what your current price is. If you have a low average cost, it is easier to think the way you do. Thank you for your opinions, Loren, always valued. |
