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Monday, January 16, 2012

Your action?


What is your action when the stock’s price (if you hold the counter) keep falling?
You may:
  1. Sell if you set a cut loss point;
  2. Continue invest in & average down your buy in cost;
  3. Store it and close your eyes and don’t bother.
Pro on No.1 - you can take back $ on hand, and ready for other chances;
Con on No.1 - Stock might be rise in the Short-Mid-Long term, you lose a earning chance.
Pro on No.2 - Shares on hand keep increasing with cost averaging. If the Company had dividend payout, you also can collect dividend.
Con on No.2 - what if the stock keep falling, your $ will be lock, you might miss for other chances
Pro on No.3 - your emotion will not be affect as you put down and don’t bother
Con on No.3 - you might total loss your money, or you might gain.

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