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Continuing to average down can be very dangerous imv -
that's in general terms rather than NEX specific.
100% agree with G8RXN. It is impossible to predict a bottom, therefore if you like a company in a volatile market, jump in with a small amount and average down on any major sentiment driven dips. This really is the only winning strategy in the medium term. Trying to trade spikes and troughs is a mugs game.
Personally, in a volatile ftse250, if i wanted to allocate say £10k, i would divide this by 5 and stick in 2k tranches, and with every 10%+ sentiment driven drop, with the percentage drop depending on the beta, which is currently high. I have my own formulas for each stocks i like and plugged into an algorithm, so i sit back and do nothing. My fees are £3 per trade, so commission is £15. Plunging £10k into a stock and watching it drop 20 - 30% is £2-3k gone with the opportunity to buy more gone. This is what puzzles me. Do the math and a £15-30 commission pales in significance compared to a 20-30% loss of entire investment, even on a very small investment of a few hundred squid. This strategy takes balls, but it is the only one that has worked for me thus far.
We have seen a low 160s base here now for a while with the markets indecisive where to go next, therefore a tranche at this level as opposed to waiting for 150p which may or may not come is the smart thing to do if you wish to take a position here.
DC, depends on what volume you are dealing in and what trade
commissions you pay.
Right not eighth lol
Yes you are eighth but it saves the fear of losing too much a £5 deal cost is not the end of the world in comparison to 5 figure drops. Little and often is the best way to play the market at the minute, nex does look cheap though
Buying the dips, or averaging down as it often becomes, means increased commissions costs. It puzzles that people do this. Another problem is running out of funds because the number of dips is unknowable. Keen to hear investors thoughts they manage this aspect of a portfolio.
Atb
Ill give you guys a tip. Dont try and find the bottom. If you like a stock buy it and then buy again on dips otherwise youll be kicking yourself forever