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.

Pastimes : Grinders and Gripers Coffee Shop -- Ignore unavailable to you. Want to Upgrade?

To: David in Ontario who wrote (184)	6/26/1998 8:05:00 PM
From: The Osprey	Read Replies (2) \| Respond to of 4201

Yes, Candy lowering or averaging down her hemline is not a very good idea in this business.Tips will drop back or possibly disappear the same as averaging down on an investment or stock. AVERAGING DOWN is quite basically the process where you a buy a stock and then accumulate more if the price drops back.The reasoning behind this action is reduce your average cost of a stock purchased downward so when the stock recovers it dosen't have to go up as far to recover your initial investment.The danger is the stock continues to drop and you lose more and more money and the stock may lie idle or cease trading completely(egads).Most "investment experts suggest you should never, never, never Average Down for this reason. They suggest you set a price drop you can tolerate according to your own criteria e.g- 10-15%. When it hits that you sell quickly and take your loss and move on to the next stock. I use averaging down in my business but it is in fund sales which carry stocks in many industries across the spectrum and they are usually long term RRSP accounts but in individual stocks it's better to take the loss and move on.Averaging up or pyramiding is a better way to go with stock and I will discuss this with Apex when he comes in.Candy will make more tips if she averages up I am sure. Don't you agree? We will probably have more customers as well.We have to do something or we may just have to do that private placement(post 116) we discussed in earlier posts. OSPREY