So, I've got about 50 shares of a stock I bought at $2.00 a few months ago. It is worth about $1.50 now so I'm holding. Its a long standing company so the stock should go back up eventually.
Is a good strategy for a stock like this to just buy more now to offset what I paid earlier or do I just keep holding or do I get out as soon as it spikes a bit?
If I buy 100 more shares at $1.50 so that I essentially spent $1.66 each instead of $2.00 then sell when out goes to $1.66 or higher instead of waiting for out to hit $2.00 or higher.
Its definitely a strategy.
>>1136264
saving you ass strategy: you fucked up edition,
you should have sold at 1.60 to cut your losses
buy back in + more later when it goes lower. like now.
you already fucked up
>>1136264
What stock? The market is pretty extended right now and due for a pullback in the next couple of weeks (or possibly worse), so it doesn't matter if the price is cheaper, if it has already had a recent surge since the Jan/Feb drops, you might want to wait for a decent pullback.
I don't think anyone can legit answer your question without checking out the stock's chart. It is a valid strategy, I think, but you need to buy the second lot at a good support level, or you risk just compounding your losses.
50 shares of a volatile penny stock. who gives a fuck.
Cowabunga guys. I guess I really fucked up this time. The stock is HOV. I'd made quite a bit of moola on it before, got greedy and zinga'd when I should have bazinga'd.
It was up to $1.74 the other day and crizashed again.
>>1136518
Thanks for the solid answer.
I'm using robin hood so no fees. I think I'll do some more research before I order more shares, but I definitely think the stock will hit near $2 again in the coming months.
>>1136834
they were in the news.
they're pulling out of building houses in San Francisco and a few other markets. They said the price of land was too frothy,
Sounds like they're anticipating a real estate bubble.
>>1136264
If it's a solid company and its got good fundamentals you could buy more. I mean, we're talking $100 dollars of initial investment so it's not like you bet the house on it or anything
Or, you could view that initial 50 shares as a long term investment (since it's down) and buy another stock, preferably in a completely different sector. This would help you diversify your portfolio which is a pretty solid strategy.
>>1136264
Are you confident enough to risk $300 to save a $50 loss?
>what is dollar cost averaging
>>1136897
I'm teasing other stocks too. Made some change on PWE Monday. I'm basically just learning with robin hood. I've started to spend more time looking at charts. I really like barcharts website to get stocks to track then use chart geany to get a better look.
I think I'll but more hov soon, just enough so if it hits $1.65 again I can pull out.
I'd rather fuck up and learn the hard way now with small change than do Out later with big money.
>>1136910
Thanks. Had no idea there was a term for it.
You guys are allright, don't go to school tomorrow.
>>1136264
Well now your gambling.If your looking to value invest(hold long term) ask these questions.
>Has the company been around more then 10 years?
>Is the P/E ratio 2 or lower?
>Does the company have growth rate of at least 5-7% every year?
If the answers are yes to all then you picked a good company whos stock has a good chance of going up.
I would not buy more shares and just hold until the mistake fixes itself.
>>1136264
I'm in a similar predicament.
I dropped (albeit a smaller amount) into IMMY, the company that countered Martin Shkreli (sp?) whose corporation was going to charge those astronomical prices for AIDS medicine.
I figured if their generic gained traction, it'd mean a relatively decent return. Since Shrkeli is in the can, I have no idea what this spells out for the future of his former company / whether competitors that make generics are going to have any sway.
Currently IMMY is sitting at a 30% loss for me, roughly $60 or so. wat do
>>1137171
research before you buy next time none of what you said was true mind you I can forgive you cause you are like 99.99% of speculators
>>1137131
Why sell at a loss?
Ask yourself two questions:
Do you think the stock will never go above the price you bought it again?
Do you need the money immediately?
If the answer is no, then I would ride it out.
The only reason I say this is because I've pulled money out of a down stock before and lost thousands only to have that money sit on the sidelines and watch the stock recover over the next year.
I've posted my entire portfolio on here as recent as January with down stocks and all the retards on /biz/ tell me to sell my holdings. I watch over the next 45 days as my stock fully recovers and then some. So I should have listened to /biz/ and sold at a loss right? Wrong.
My point is there are a lot of people on here who are all talk, have no real investment experience, and probably secretly want to see you fail. Just food for thought.
>>1137158
Established 1959
Growth rate slow since 2008 but recovering, even making profits. Projected high growth rates for 2017 and 2018.
PE average had been 33 the past decade.
>>1136264
Adding to a losing position. Show that trader out please
