The Stock I bought High and what I did after it Fell
I bought 10 shares of $Apple(AAPL.US$ at $150 each, it fell to $120, causing me a 20% loss. I then bought 20 more shares at $120 each. The average cost of my shares became $130 each equating to an 8% loss which was a lot easier to recover and it was done in the first day of the price rebounce and by the time it got to my original purchase price of $150 a couple of days later, I was already up by $20 a share, giving me a healthy 15% return on my total investment.
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bwjx : Thanks. Just wondering if you bought the recent dip on 24th Feb
WinningTrader : Glad you have the money to double down to average down.
Elizabethy : When was the last time apple had a -5% today? It's been forever!
DarioDOP Elizabethy: Back in the summer
DarioDOP WinningTrader: Only invest 1/3 to 1/2 of your intended total investment, you can always increase once you see thing are on an upward trend after initiating your original investment
MiGirl : I'm a new comer and appreciate you explaining how it works and keeping it simple for easier understanding
Jonathan Parcus bwjx: it will be ok stuff happens every day
willeu : But it could also be risky if you double down and try achieve an better average. If the price continue to dive, you may suffer more losses than you could imagine. This will work if you have a huge capital
Timothy W Hershey : yeah that makes good sense. I never considered that angle. But let's suppose your like most new investors and you don't have that cash on hand....most new investors don't unless someone helped them to the advise you gave. so let's suppose buying more st any price isn't an option. what then,?
MiGirl : I have to get back w)u on it I onit sumsmu elesr Rt nowb