averaging prices

awantha · 1 averaging prices Mon Jul 11, 2011 6:46 pm

awantha

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i got my portfolio totally minus and for the moment i can hold for some time (max 4 months) what i am thinking is averaging my stocks but will this be ok since the prices are going down please comment

thambi · 2 Re: averaging prices Mon Jul 11, 2011 8:16 pm

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thats what many investors do to cut their losses however many top investors like jesse livermore always argued against averaging prices of shares as he believe money could be spent elsewhere to generate profit ....

but in this condition i would advice you to wait for a few weeks or months and analyze the market if the cse keeps becoming red be patient and once a rock bottom as bein hit then buy shares they would most likely be at a real bargain prices therefore you can average your shares to lower levels than if you rush into things now and loose even more money as i beilive most of the shares will fall to lower levels in the near future just be PATIENT buddy

rocksan · 3 Re: averaging prices Mon Jul 11, 2011 8:39 pm

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Correct prices will go further down the in weeks and months to come be patient

early · 4 Re: averaging prices Mon Jul 11, 2011 9:19 pm

early

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rocksan wrote:Correct prices will go further down the in weeks and months to come be patient

Any idea by how much you expect the market to fall?

Aamiable · 5 Re: averaging prices Mon Jul 11, 2011 11:53 pm

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awantha wrote:
i got my portfolio totally minus and for the moment i can hold for some time (max 4 months) what i am thinking is averaging my stocks but will this be ok since the prices are going down please comment

Some stocks like PAP directors have sold at much higher levels and currently trading low is it worth averaging such counters............ Where as shares like CFIN CARS BUKI HNB companies have come forward and stabilized share prices during a major crash this morning. .........Large quantities have been brought back while there was excessive selling pressure on other stocks.... Cool

rajithasamaranayake · 6 Re: averaging prices Tue Jul 12, 2011 12:21 am

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In my opinion this market may fall close to 6,000 within the next 3 months. In all probability the year of 2011, could well be a year ASI going down rather than appreciating. More the number of over-valued IPOs, lesser the time taken to go down to 6,000.

Jonathon · 7 Re: averaging prices Tue Jul 12, 2011 6:26 am

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yes rajithasamaranyake 6000 level seems to be the expectations mabye the high 5000's even some stocks will suffer more than others fundamentally strong shares will always be stable to a certain extent even in times of a bear market ..... time for people to identify the gems when the market is down