Hi wanna know how averaging works and how it cna help you??? can someone do some short class tutorial??

u bought 100 lots of AIRASIA at rm1.5 = RM15000
now the price is RM1
so u buy 150 lots more at RM1 = RM15000

now u have 250 lots = 25000 units
RM30000/25000=RM1.20

now u have average down ur cost from 1.5 to 1.2

it is better to average down at same cost not quantity

good...

depending on what stock you are holding.

if it is a blue chips with good fundamentals, by all means, you may average it if you have extra cash. if it has dropped more than 30% of your cost, you can start to pick up.

if it is a goreng shares, it is advisable to set a cut loss point rather than keep on averaging.

like GAmuda today////

actually you can make profit from gamuda by short selling

u dare?

short selling prohibited in islam..so i cannot

This post has been edited by greddym3: May 30 2008, 03:22 PM

and what is short selling? mind elaborate more?

u borrow stock from other people
then u sell the stock
the stock goes down
u buy back and u give it back to the people

In lay man terms, you borrow shares to be sold today, and then you buy it back later.

You can only make profit by short selling if the price is going down.

Sell first at high price.
Price falls and you buy at lower price.

Please correct me if I am wrong. Still learning.

u sell now 2.45...wait until 2.20 u buy the share to replace ppl..u make 0.25

Short selling is prohibited in KLSE, one can be charged because of short-selling if SC wants to or it is serious.

Only regulated short-selling is allowed.

regulated how? explain more

There are certain counters that are designated for regulated short selling.
One needs to make arrangement with investment bank to borrow shares first before can sell into the market.

I quote lklatmy's signature

statistically, averaging kill more ppl than helping them.

lol didn't know that....anyway not all stocks are doing halal business so you also follow this rule ah?

yes always.genting bjcrop guinesss mphb even maybank i dont dare even the fundamental is strong.
only syariah approved stocks can buy.

Wow that's hard to believe