I own several good stocks such as gilead, disney, altria, hewlett packard, etc. some are down 10% now since i purchased but i havent done anything. is it a good strategy to buy more shares in a stock when they drop a minimum of 15%? or is it better to wait until they go lower? what do you guys do? thanks
M
malaguti
I'd be lightening my position in gilead
disney is still good
altria, or altera?
HP I'd be dumping
I never buy more of something thats down and absolutely never to wait for it to go lower, I only look at new potential opportunities on the rise.
I'd look at mixing your portfolio with better performing ones and getting rid of your bad choices..such as HP. Potentially look at HP once again when it starts turning up as the monthly is still relatively strong. right now its showing all the signs of going lower still
just my opinon of course
Jack o'Clubs
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It all depends why they've dropped. If nothing changed other than inputs to WACC then you can take the view that these things are cyclical and Mr Market is offering you the chance to buy more at a lower price. If something's gone wrong and earnings are likely down 20% and the stock only down 10%, then you should probably sell. You should read Ben Graham's Intelligent Investor if you're attempting any kind of long term fundamental strategy with stocks.
Re:
Altria (MO) ...Gilead and HPQ are good for long term which is my plan for most of my stocks.
Altria (MO) ...Gilead and HPQ are good for long term which is my plan for most of my stocks.
M
malaguti
That's exactly what my brother was saying when Lloyds was at £5.."its for the long term" he said which was mainly a euphamism for I don't want to sell at a loss.
Mr Market giving him plenty of opportunities to buy more, and more and more as prices go lower
Then there's my in-laws who's pension is still tied to RBS and they said the same thing.
Anyway look, if these are for the long term, stick your pension on 'em
good luck though Stoney and ignore my flippancy these are just meant as words of advice
Financegeek
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The approach makes sense up to a certain point. If you believe the long-term prospects of the companies are still good, why not picking up some more shares at a lower price. However, what if you're trying to catch a falling knife?
I think the recent drop in equities you mention is due to macro-economic factors, and not that much company-related news. In that case, buying more stocks as markets dip is akin to a dollar cost averaging approach. It's a proven strategy, so I would go for it.
Francisluis1
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You can buy more shares if you are sure they will return you big fortune. There is no one fit for all rule. Every share offer different opportunities. Do a proper research on each one and then treat each one accordingly.
Pat494
Legendary member
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I suggest you draw in the longer term trend lines e.g. weekly/monthly. on your stocks. If they are still in an up trend line cycle then buy more. If the trend lines are down or broken through the base line then dump and buy another blue chip company with up lines.
Personally I have a number of blue chip stocks and play with the leftovers on forex or you are watching the grass grow and some.
Personally I have a number of blue chip stocks and play with the leftovers on forex or you are watching the grass grow and some.
Eventually, you have to set a stop loss to limit your losses. Remember, a 10% loss on one stock can be restored with only an 11% gain on another. But a 50% loss needs a 100% gain to get back to break-even and no stock-picking strategy consistently selects stocks that are likely to double.
alexisjohn
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The company has plenty of projects to invest for the future, Disney stock is probably not going to be a high-yielder any time soon. Disney already has its presence in the on-demand video streaming industry. It owns 30% of Hulu, which now boasts more than 12 million subscribers. The company is also investing in video streaming technology company BAMTech. BAMTech’s infrastructure is already powering the streaming services for HBO Now, Major League Baseball, the National Hockey League, and the WWE Network. This latest investment could bolster Disney’s capabilities in delivering its own streaming service from its vast content library.
If you are an investor the best way to invest is with m.averages little by little and exit the same way,gain a very little profit in the long run,and take small loses,moyen will not lead you anywhere.That means you forgot getting rich from the stock market except if you invest in smaller stocks.
Anything more than that needs much knowledge in trading
