Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (16149)	1/12/2003 1:01:10 AM
From: TimbaBear	Respond to of 78700

Averaging down.... I don't usually "average down", at least not as a philosphy of investing. When I buy, I usually commit the full amount that I want to have invested in that particular enterprise all at one time. There are a few instances where circumstances force me to take a much deeper look at the valuation. If, upon that deeper evaluation, I discover that the stock is more attractive to me then I might get more involved. But that doesn't happen very often. While, as a rule, I don't average down, I do often average out. By that I mean that if I have a nice return on my investment, I usually take some off the table. If the stock price keeps rising past my "comfort zone to buy", I'll either set rising stops or just get out if I don't feel like watching it all the time. Sometimes I'll leave a trace position just to keep me in touch with the company's price performance. These "trace" positions are usually paid for out of profits from the other sales. Timba