Forum Archive Index - April 2000

["Moose" <aorang@voyager.co.nz>]

I wonder at the thinking behind buying more and more shares in a 
stock at lower and lower prices because it is getting cheaper and 
cheaper.
Okay, it does average down the cost of the shares you bought at 
the higher value, but until the stock bottoms (who knows where) 
this does not seem to me to be a good strategy.
Patience and waiting until the stock has bottomed and started to 
rise again on an obvious and consistent uptrend may be better.
Picking the turning point is of course the hard part. However I would 
rather buy knowing the stock is trending upward than trending 
down.
Once it is moving up then keep buying on dips to increase your 
holdings.
I am the first to admit however that timing purchases and sales 
right is never easy and the benefit of hindsight is not available at 
the time of placing the order.
I bought ITC last week @ 0.56!!!!
Moose

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