Averaging Down.

[sk_1]

Being the new kid on the block I'm going to share my trading with u guys and hope to learn from the "oldies". PRESTON, JOHN LAND OTHERS HAVE BEEN VERY NICE TO ME ON THIS FORUM. I bought Anglo at 41286 just after my rave week in Ballito and have topped up now at 37700. Hope I,m doing the right thing!?

[asylum]

well from this weeks experience i averaged down on MTN at what i thought was a great price and almost got badly burned this is the first time ive averaged down and in future will think twice about doing it.omo

[Preston]

I suggest that you develop an excellent spreadsheet with regard to averaging down, then compare the loss (loss on sale, brokerage cost of purchasing and brokerage cost of repurchase)sustained with the opportunity gained with regard of additional shares purchased. Will help in the long run. I am waiting for NPN to reach a certain level and then i will average down even more.

[sk_1]

Thanx guys, hey Preston, my sister wants to know if you are now a married man?!

[Preston]

Only on the 26 of Jan 2008. I am however extremely scared of sister dad (lol).

[#6]

Listen bru'...averaging down boils down to luck, pure and simple. I remember meeting our man Simon(sbk) for the first time back in 2005 and arguing over lunch over this issue...he was against and I was for. This because I had averaged down a gizillion times to my benefit.....here come the cruch amigo....remember when ou Trev' issued a sin tax warning on sol....yep, I averaged down at R200 but on a very short dated warrant....I came off R5 bar poorer. Yeh at my yougin age , tis was a good 10-1 bet, alas got a proctoscope up my !@##$. Ever since then and a good few klaps from the misus, play much smaller and wiser and tattooed Simon's rulebook where I can't forget and I have almost recovered. Point is......a few good calls and you think you are god and without a rulebook and only ego guiding you...you ain't gonna last. SO DONOT AVERAGE DOWN AS A RULE! To B-baby, gravy, Y and the gang.....CHEERS...ages since I had one of these Johnnie/Jack rants. Where the hell is my goat @$#@$5 amigo Y????????

[Preston]

Dinen, i have pretty lucky so far. I will never forget how STUPID i was to listen to individual in this forum in respect of AMS. I immediate response was to average down at R1100 and buy again at R850...but NO i got burn't by being GOD DAMN STUPID.

[Champ_golfer]

Guys guys, dont average down if the market falls If u hold futures, choose ur exit strategy BEFORE the big fall begins, usually one day 3-4% loss, then get out and don't wait for better days Check the Cat and market out, and then if it corrects or plunges a bit, you will have a nice position to enter at a bargain LOW level and best of all, won't have to bear any losses whilst the market falls to get to the low level. Ive learnt now after 18 mths, put Stopp loss, trailling 5% and if it gone so be it, it would go way down under and u can pick some up at a very nice BARGAIN and ride it back again.. Think of it like a wild horse and u the rider, it will take all ur energy and alot of falling to try and tame it, then when his steam runs out, and ur flat, u cant get on to even take a short ride. Let the guys with big egos and mouth ride the BIG WAVES down, and fall to near death, when it's calmer and the horse is under control it's much easier to jump on with fresh energy and have a WILD ride !! Enjoy the experience, and remember egos don't last--

[Plonky]

I dont know if this qualifies as "averaging down", but I dumped SBK and WHL yesterday in order to grab more AGL shares. This could mean that I averaged down for AGL, but I see more potential in AGL improving than I do for the others. I hold nearly 2000 AGL shares now.

[sk_1]

Thanks guys, lots of advice there for the little kid on the blick. I bought Merafe at 190 late last year and am showing nice profit. The share has dipped a bit recently, do I bail or hold on to this one? thank u for your advice in anticipation!

[Champ_golfer]

Hope u sold on 2.50 as it's slowly but surely heading back to 180/185c end of next week