Search Results for: Averaging Down
Change moves markets forward
… not always, or forever. So, money-making investors can buy rising winners but quickly sell when they are wrong. They never make the wealth-damaging mistake of averaging down but sell losers and mistakes to move on.
What makes the market go up and down?
The forces of supply and demand drive markets. An increase …
Smart investors use smart diversification
… smart diversification
4 Positives of short selling
9 Short selling facts
If you must look at options
Investing academics hold court
Yes to dips but no to averaging down
Buy high sell low!
Janet Yellen told me!
Show me the numbers
Time to invest or time for an advisor?
Investing strategy option danger
Mortals see …
Investors never average down
… averaging down and the many related risks.
5 Answers to FAQ questions investors ask about averaging down.
Learn the risks of the averaging down strategy.
Learn when averaging down can work.
Investors learn to buy dips but avoid averaging down.
How investors deal with an investment the market devalues.
Averaging up vs averaging down.
The …
Avoiding Costly Investing Mistakes
Avoiding costly investing mistakes improves your portfolio results by avoiding errors to help you finding quality investment opportunities. Errors of investing on news or turnarounds without research, holding losers or averaging down and not paying attention have big costs.
What you learn:
This lesson covers common avoidable errors that harm investors. Investing on news without …
Key investment success choices
… over huge funds.
7.
Avoid 6 investing sins Lesson 7
Avoid 6 investing sins to eliminate errors that hurt investors and fail to take advantage of active investing opportunities. Those errors include using only news, no research, loser holdings, turnarounds, averaging down, not learning or paying attention.
8.
Investment impatience destroys wealth Lesson 8 …
Contents and Layout
… White Top Investor lessons by subject.
A
Analysis – the world of infinite facts and opinions
Analysts Reports – experts yes, objective maybe
Annual Reports – facts and management pitch
Averaging Down – a strategy to avoid
B
Basic Investing – single and multiple investing lessons
Basic Numbers – understand financial statements
Basic Time – the time commitment of investors
Blog – all …
Optimism and unrealistic investor expectations
… where you want to go. Put the past where it belongs, in the past.
Do not chase losses with more money. Never, ever under any circumstances average down. That increases the amount of dead money and it freezes any upside potential. Averaging down also means you take on an unknown opportunity cost.
Share: Optimism and …
Investor homework grows profits
… favor.
The situation is favorable when our current homework or earlier research indicates a specific company is a buy. Then, should the price dip, we can confidently buy. If we already own the company, buying more is simply averaging down. That is not something I recommend.
Get the odds to tip in your favor
From
Distracted investing misses profits
… as a turnaround play.
Averaging down sinks investor performance
Investing misses, write-offs, bad math and distracted investing all combine in the most common of investing sins, averaging down. This really bad but very common strategy can seriously harm your portfolio.
Averaging down means you buy more shares in a loser. Naturally if you keep …
Speculation failures improve investing
… that approach works, you neutralize even more money than the initial investment in the speculation. That is putting good money after bad. Stocks take time to recover. Averaging down means you have even more under-performing capital tied up for a long time. Combined, these factors harm your overall portfolio performance.
Better to sell out …