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Posts by idfnl

I think the difference that might be escaping you is incremental versus opportunistic. He doesn't mean DCA, he means averaging down. I think that's what "if you had a (temporary) cash stake and wanted to direct it to an investment, does it really make sense to average in except for psychological reasons" means DCA, The rest seems a bit of word salad.He made a point above that seemed spot on, but then it started to splinter. Abandon the rich vs poor stuff.Unless I'm the...
I never think of a position this way. Sure, it doesn't change the 50 shares you bought at $45, but why would I care since I hold 10,050 shares that average $2.21? To me, seems like the average is what really matters.If I buy 100 shares of a stock 4 times at 50, 40, 30, 20 then I consider my basis to be $35 and if the current share price was $37, I'd be up $2. Often, but not always this serves to help me decide whether to average down, so if it dipped to 30 and my...
This raised an eyebrow, as they just built a huge office building near my home. I'm astonished, that chart looks like boulder going downhill. How can a company losing that kind of money spend that way?
Some tasty fodder here... http://www.dailytelegraph.com.au/sport/us-sports/jayson-williams-dishes-dirt-on-satanic-michael-jordan-mighty-manute-and-chunky-charles/news-story/4502fd7176127c7bd5206bd7528400d1
Maybe we're being semantic, but I only view a real loss as such when you hit the sell button on a trade. Otherwise I just consider myself down or up on the bet.I don't trade margin, so the idea of a loss on the value of the portfolio doesn't hold a lot of meaning to me beyond a data point.I don't see a difference between averaging down and dollar cost averaging beyond one taking place when the equity falls below a price or average price you paid for it.If you hold an...
Its a paper loss. The market should eventually price in rising rates so in the mean time you can take advantage of the lower level.
I always thought averaging down was the best way to deal with it
It's relevant to wider point about large corporations and bailouts, special treatment in general for those deemed too big to fail.
This is not reserved for banks, hence mentioning GM
If I ran a small sized corporation that failed thru being badly run, nobody would bail it out, nor give it an emergency loan. So there is this body of public corporations than qualify for this special state supported status. General Motors, for example. In essence, these become state run corporations because they will be there to catch a fall.The state just ends up becoming a reckless risk taking enabler.
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