+Darren, I have made same mistake, average down too early when I bought SHCHAN at around 1.20 in March. Then I waited some 3 weeks before I rebound.
Patience is required.
I average down also for BENALEC from 1.23 to 1.12.... sold all at 1.14-1.15 with loss (however, overall still gain since March). I sold with loss because to free cash for MEGA SALES, which may come any time.
Lesson learnt: Always keep bullets....
You use Margin facility? I find it helpful when you need average down but no more cash.
Hi Bro ChongKH, Pls becareful when using margin during poor market. better to stay aside then risk more money that you really don't have in these situation.I too Have benalec at 1.34 and have not average down. too little bullets :(
I would not try margin because the risk is too high for this slow moving counter..however i agreed with patient is required during bad market..Benalec is a good fundamental company so i'm afraid because what i have is holding power...I'll wait till it rise back then only I will sell or maybe keep it until rm2.00 just for investment
franksoweto ~ Thank you. I am aware the potential risk. Therefore, I make sure I manage it within acceptable MOF of below 60%(keep a buffer, in case crash 30% still can be below Force Sell MOF of 80%)
I have sold all at 1.15.... now waiting... if drop, will buy again at 1.10.
We don't know if this is Holland or not as next month it might be anywhere, 1.10 or 1.30.... next month 1.30 but the following month can me 1.10... this is share market.
No Worries ChongKH, seems like it is inching up a little but this I believe is a good counter for the long term.I don't know whether it will drop to 1.10 - maybe when ah jib gor finally announce the errection it probably will :) also I'm a long term so if it goes low I can average down since this is a good counter. Yep, be patience :)
diablo88: Okay, I get the hint, thanks. Been keeping this in my "KiV" file due to a few analysts' report. Going to take profits from a couple of counters that are already in the plus and enter while this is still on the ground floor. At the very least, I think the downside risk is small - the "Reward-Risk" ration is more than 3:1.
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Posted by diablo88 > 2012-05-28 17:17 | Report Abuse
why? Because the price is down? :)