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04-11-2011, 03:41 AM
I have been doing pyramid down(average value down) since day one. My version is buying 1,2,3,4..actually is trying to catch the falling knife. From reading many investment books, not one author favors this value average down. They all favors value average up(pyramid up). Why? That's buying 4,3,2,1,.. i am now trying to practise this method. It's like trying to catch the "flying-up-knife" instead of the falling knife which is much more dangerous.
It's definitely safer. i admit i have yet to put into practice. It's also because of this new mindset i did not average down any stock during this mini downtrend. Why? Because my " gut-feel" the "falling knife" has not really fall low enough for me to start pyramid up.
It's definitely safer. i admit i have yet to put into practice. It's also because of this new mindset i did not average down any stock during this mini downtrend. Why? Because my " gut-feel" the "falling knife" has not really fall low enough for me to start pyramid up.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.