Averaging Down

Averaging down when stock trading is usually a bad idea despite what many investment advisors may tell you.

It’s supposedly a good way to reduce your cost base but we feel it’s a way of throwing good money after bad. A good stock trader sells losers not buys into them!

However, averaging up or ‘pyramiding’ is a good practice to adopt. Buying more of a stock that is trending up can never be a bad idea. Just be aware not to over expose yourself to one particular stock in your portfolio.

Dave J

Related Posts

Tagged with: • • • • •

Filed under: Blog Posts

Like this post? Subscribe to my RSS feed and get loads more!