C - Does anyone ever average down?

Discussion in 'Stocks' started by u21c3f6, Sep 8, 2007.

  1. mde2004

    mde2004

    Always average down on a losing position is what my broker at GS told me when I was younger.
     
    #21     Sep 8, 2007
  2. He was a child molester.
     
    #22     Sep 8, 2007
  3. You should do exactly the opposite.

    Start small, and buy retracements of a strong stock on the way up.

    Never adding below the original starting price to preserve capital.

    You want to buy into strength not the other way around.

    As you do this adjust an emergency stop for all positions in case of a disaster.

    A good example is AAPL.

    Anek
     
    #23     Sep 8, 2007
  4. Sometimes I average down (or up when I'm short selling), but it's probly best that newbies don't try this because stocks can get away form you in a hurry---9 years into my trading career and some these quick moves still surprise me.
     
    #24     Sep 8, 2007
  5. Averaging up is not averaging down when short selling.

    Averaging up is when you only add to winning positions.

    The term down refers to your capital and not direction.

    Anek
     
    #25     Sep 8, 2007

  6. Never add to a losing position. Cut it off quick, or sweat it out long term. When you increase your time horizons, things sometimes work out but not always.
     
    #26     Sep 10, 2007
  7. I could not agree more just not sure why it was directed towards me :)

    Anek
     
    #27     Sep 10, 2007