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Strategies & Market Trends : Investing during a Bear Market -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (198)	11/14/1997 12:48:00 PM
From: Richard Estes	Read Replies (1) \| Respond to of 226

"But if a year or two from now you find yourself still holding stocks that are worth less than half what you paid, don't panic then and sell. Buy more then, if the company still seems sound" Missed the short message, I was responding to above. It seemed you suggested that someone set thru losing 50% of capital, then buying more. But why is holding the shares so important? You go thru all this, why not sell at $90 and buy 450 shares at $20, per your example? You would suggest that they double their losses from $50 to $20 by doubling down, buying 100 shares at $50 or total investment of $15,000 which is worth $4000 at $20. I agree that margin trading is only appropriate if the trade is going in your favor. you double your profits at cheap rates, as I pointed out, you double your losses. So if it is used by anyone, learn to sell