Saturday, February 7, 2015

Averaging Down... Can you handle it?

Hi Everyone!

I came across an interesting concept on the ability for oneself to averaging down on the share that you are currently holding. I saw it at hardware zone - share, stock and indices section of this forum. I saw a certain forum-er who show an interesting graph. The graph below show the attitude a investors/trader when it comes to trading.

I certainly take this graph into consideration when it comes to averaging down some of my shares. It certainly an interesting lesson that one trader must understand. But for me, I am a longer term investor rather than trader, thus, I only look into low risk and stable blue chips company that I have confidence in and invest in it to see it grow (or sometimes fall). Afterall, I am building my own empire :D

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