A voice of pragmatic reason in a sea of noise. Th

A voice of pragmatic reason in a sea of noise. The other issue I often see is a falling share price being seen as an opportunity to average down. That is one key mistake investors make when they find themselves on the wrong side of a trade but of course everyone states unequivocally they are doing the right thing because they know the share price will go up (even as it falls). They also use, and you can verify this by checking any message board (two on this service) are carbon copy examples of this message board - meaning the same excuses for a falling share price (bashers, shorts, daytraders) are given. Complete and 100% faith in those running the company (blind faith rather than objective views), and becoming emotionally involved not only in their belief in the company but in the belief that others are out to do them harm in order to get a better entry price because (coming back to the averaging down statement) they know, and you know the price is going to sore and they want in lower.

I had a great teacher in all of this and he said to me..."averaging down (or up on a short position) is like making love for chastity." Of course there are always examples where this has worked but investors who lose don't hold the majority of losing positions as they averaged down, up to scrutiny.

I will dig out the great example of averaging down versus stop losses one day when I have the chance. Not only do you save money, you sleep better.