facebookWhat would you do if you bought into a stock on the first day of the dip (Monday Dow -1000), it dips more on the second day (Tuesday Dow -800) and on the third day it's looking to drop further? - Seedly

Anonymous

06 Mar 2020

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General Investing

What would you do if you bought into a stock on the first day of the dip (Monday Dow -1000), it dips more on the second day (Tuesday Dow -800) and on the third day it's looking to drop further?

Hold or sell in hopes of buying cheaper?

Discussion (6)

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If you are sure that the companies you have bought are fundamentally strong companies with a strong management team, then you should average down and buy when the stock dips further, so when it rebounds you will be sitting on a large captial gain and the dividends that was paid out.

All this starts with a prudent stock selection in the first place

when you're 100% convinced that it is an at least decent stock,

you should hold it. particularly when you speak of the current Corona Dip.

Though there still can be grave global repercussions, I feel despite of all the tragedy,

after at max 1 year all difficulties are overcome.

Though I hold single stocks myself, I am convinced today

diversified passive indexing ETFs are the better alternative

(i also follow - mainly - the latter strategy myself)​​​

Only buy stock when there's sufficent margin of safety. not becos price recently drop a lot...

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