UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 77123  
Subject: Re: chasing losses Date: 5/20/2012 4:15 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Most people tell you that doubling down is a bad idea. If the stock has declined by your loss limit (usually 10 to 15%), you are better off to admit that your timing was wrong on this stock and sell. Then buy something with better prospects.

Value investors who buy stocks that they think are undervalued, have a different situation. If it was a good buy before, its a better buy now. But if the price is going down, how low will it go?

Growth investors will sometimes double down but only after careful thought about it.

If it was supposed to go up and didn't usually you want to sell. But did you give it enough time? When will earnings be reported next? Will they be good?

Usually holding losers is a mistake. Sell and buy something better.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.