QUOTE(statikinetic @ Sep 21 2022, 03:21 PM)
I don't trade but have learnt one rule in regards to it.
Average down only applies to fundamental investors.
If you are trading, NEVER average down. Just CL.
Some instances you may win, but in the long run it is always a losing exercise caused by base emotion.
'Fundamental investors' always, always try use the value excuse when they average down. It's never the fact they had made the mistake, either choosing the wrong stock, buying the stock at far too optimistic valuations. Yes, they will buy more. And more. And end result is always the same. They lose.Average down only applies to fundamental investors.
If you are trading, NEVER average down. Just CL.
Some instances you may win, but in the long run it is always a losing exercise caused by base emotion.
Like they buy Harta now. Simply because they believe it so oversold, blah blah blah... And when the idea fails, they fast hand, fast leg claim they are fundamental investor etc etc etc.
Investing and trading the same la. Don't do it. Don't average down. Don't even call it DCA.
Sep 21 2022, 03:34 PM

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