Should I buy more when the stock price is low?
If you think you’re losing the value of a stock because it’s continuously going down, don’t lose hope.. Just like what other investors say, it’s just a paper loss until you sell it. But again, why would you when you know that you’re going to lose your money? Unless you’re cutting losses or you need cash badly that you need to liquidate your paper assets. But if it’s not the point, then we can hold it for now until such time that the price move up again..
Now the question is, WHEN is that time?
The answer is, we don’t know. Not even the best investor or trader can tell what specific time or date will a stock price will go up or down. We can make speculations yes, but again, these are just mere speculations. And we have to bear in mind that not all speculations are correct.
One thing I learned when this is the situation is, to buy more when the price of the stock is low. Why? Because you’ll get to buy more when the price is down. And when you average your total shares, the price of the stock you bought at a higher price will be pulled down. When the right timing comes and you’re almost at your goal, then you’ll probably gain higher returns. It’s hard to recover when you’re stuck at a very high buy price. Thus, buying more stocks when the price is low may be a good alternative.
But before you make any additional orders, make sure that you analyze the trend and movement in the market and do your own research. What if the stock price continued to move down? You’ll get stuck. Or worse, you might have to sell your stocks at a loss. Then who will you blame? Me? Or the market? Or how about yourself? Who made the decision in the first place?
I’m not saying I’m an expert. I’m just sharing my thoughts…
And I’m not saying you follow my advise or suggestions. These are just barely based on my own experiences in the stock market. I could be right. I could be wrong. Again, do your own research.
Always remember that the stock market, just like most investment facilities, offers no guarantee. The best investment is still EDUCATION.
So, Good luck! 🙂