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Better to average Up Stocks Than to Average Down

Better to average Up Stocks Than to Average Down 
               - invest If an investor is caught by a sudden decline in Stock price, it might be worthwhile to hold on to the original investment, let the price drop until it bottoms out and then begin a program of buying in at various price levels as the Stock moves up.


averagingg down, thought frequently suggested, is often not the best practice. It is an aggressive strategy, which some would describe as "throwing good money after bad." there is no way to know how low the price will drop or when it will recover. A strategy that can lower the averaging down, can be accomplished by averagingg up. averagingg up can be more emotionally difficult task than buying a winner, but it can also effective by increasing profits. It is an aggressive strategy, with less risk then averagingg down, although it is advisable to place some limitations on that risk. When the Stock an investor is holding suddenly takes a "U" turn for the worse and the price declines significantly due to a bad market or bad news, the investor could decline to hold and see how low the price is able to drop. Eventually the Stock will reach in a supply zone and sellers will start to unload. If the investor believes the Stock holds value, in spite of the selling which has occurred, it can be an ideal time to begin averagingg up.


Day trading Related reading

Sell the losers and let the winners Stock run
Protect your Capital and Profit
Heavy Volume, the Price Rises; Light Volume, the price falls; Volume work as a driver;
Winners Keep On Winning
Diversification is the Key to Stock portfolio management
Watch Out for Block Trades
Never Short in Dull Stock Market
Never Buy a Stock Because it Has a low Price
Avoid Over trading - control trade
Better to average Up Stocks Than to Average Down
 
  

 

























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