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After a day of mega buying will this end the day blue?
There we are - 91p.
No doubt more hopefuls will be lured in. The decline will then continue.
I see 71p.
yes but the trick is to ride the wave and average down while picking up the dividend. Works a treat.
Should slide now the buyers have spent their money.
"There we are - 91p.
No doubt more hopefuls will be lured in. The decline will then continue.
I see 71p."
Has your crystal ball had its annual service? In the absence of some sort of company profit warning, can you imagine the buying resistance to get anywhere near 71p? Unless you have some sort of insider information, you've just picked a highly unlikely number out of thin air.
"averaging down" might make your break even lower but only works if the share price goes up right? Otherwise if you have been buyng Vod at lower and lower prices your losses are still accumulating as the share price is at a 20 year low.
It is disingenuous to come on here giving the impression "it works a treat" when it can't be can it if you look at the ski slope share price? Pathetic
Narcus - I have trademarked “Ski Slope” so you cant use that phrase - only joking :)
"averaging down" is a poor tactic a lot of the time ..as you just put more capital at risk , and you can often find you have to buy a lot more shares to get any significant lower "average" price .... a lot of times people buy lower without knowing why the market has dropped the price .. before you know it, you can find yourself a lot more exposed in a share that you ever intended to be
"It is disingenuous to come on here giving the impression "it works a treat" when it can't be can it if you look at the ski slope share price? Pathetic"
Actually, you're being disingenuous by only presenting your view. There are various investment strategies, and it's easy to call one person's view "pathetic" with the benefit of hindsight. Just because the market has pushed the share price down, doesn't mean averaging down is a bad strategy for someone who's locked in, but believes the company is worth more. What happens if the narrative changes and the share price soars, possibly on takeover moves, would that make your view "pathetic" because you didn't have the foresight to see it?
Is there any iceberg sell order waiting from past few days ? or any other reason that explains this fall. I am a buy-hold guy and experienced same in Amazon stock few weeks ago. I waited until it has 5 or 6 days of consecutive losses and then went all in hoping for some swift recovery. But my draw down is 10% further from my buy price and I only came out no profit/no loss.
I am interested to know some technical explanation for this behaviour. thanks.
""averaging down" is a poor tactic a lot of the time ..as you just put more capital at risk , and you can often find you have to buy a lot more shares to get any significant lower "average" price"
I don't disagree with that view, but it depends on the company and the value of the assets versus liabilities. What amazes me is how Billions can be poured into Crypto currency, when it's clearly a smoke and mirrors investment that's dying a slow and painful death, in my opinion.
'What amazes me is how Billions can be poured into Crypto currency,'
I havent researched crypto but I believe it is 'borderless'. The ability to move large sums around the world might have an attraction for those who would otherwise face hefty tax bills. Similar to offshore operating and holding companies who only pay tax on service provided in the UK
Today's drop is purely due to ex dividend. Factor in the dividend and we may be up without actually being blue.
fleccy, we are here because we hold vodafone. It keeps going down. I am OBVIOUSLY talming about vodafone. I don't give any thought to the hundreds of time averaging down works. I am taking issue with Mary saying "it works a treat" when it can not have worked a treat with this stock in the last few years. So yeah, I will stop posting because people on here talk a load of carp about "hindsight" and other BS when I am just making a point, My point earlier was Reid get's the big calls wrong and Mary is a BS ramper
Hello All,
When I started trading (couple of years back) I also did not really understand 'averaging down', 'buy the dips' and trim on the up-ticks'
Since I have learnt, usually by making bad calls.....
I have recently re-assessed and have started using this method and to be honest it actually makes a lot of sense MaryBr190, you have at least one fan on this site - thanks for all the posts, I learnt a lot from them, eventually.
As it lurches toward all time low, it is mathematically impossible for averaging down to of worked.
Throw in the divs and some holders may of made a few percent per annum return. Is it really worth the heartburn?
"I havent researched crypto but I believe it is 'borderless'. The ability to move large sums around the world might have an attraction for those who would otherwise face hefty tax bills. Similar to offshore operating and holding companies who only pay tax on service provided in the UK"
If I saw a valid legal use for Crypto Currency, then I'd take a different view, but I don't.
What has Crypto been most useful for so far? Probably blackmail and fraud. The main use, I can see, is the ability to move money quickly and covertly through unregistered exchanges, under the radar of authorities. The Crypto Bulls will say all transactions are traceable, but the recent FTX hacks dispute that claim, with funds apparently being funneled into pools and distributed from there. Clearly the Crypto universe allows criminals to mask their finances, making it extremely difficult for law enforcement to "follow the money".
Crypto currency doesn't make it easier to pay for stuff, it has limited ability to process large numbers of simultaneous transactions and is plagued by fraud, and investors losing their money. The only thing that surprises me, is that the vested interest players have managed to keep the music going so long. All this is my opinion, but FTX and all the other collapses suggest the House of Cards are falling.
which method is this please? I am also avg, buy the dips guy but burnt my hands with Deliveroo, Boohoo.etc.. realised this doesn't work always.
Many people talk of 'averaging down' on these boards but more usually on penny stocks than on FTSE 100 stocks. But it is a very dangerous game and if we all remember what got Nick Leeson into trouble ! I have done it on an AIM share thinking I was smart only to be left with even more losses ! Though none of us could have forseen the Ukr war, and I personally never thought he would do it !
"As it lurches toward all time low, it is mathematically impossible for averaging down to of worked."
Depends on when you invested, what your initial investment was, the size and timing of your averaging down investments and the amount of dividends you've received.
If your initial investment was £1000+dealing costs at £2 a share, giving you 500 shares, and you then topped up with £10,000 a share at £1, then your average price per share after purchase will be around £1.05p; Assuming dividends remain at around the current 7.7P a year, you could break even, or be in profit, in less than two years.
Clearly it wouldn't be mathematically impossible.
'The only thing that surprises me, is that the vested interest players have managed to keep the music going so long'
I suspect you are right. More money was going in than coming out. With the current economy, I imagine less money going in and more coming out. In the end, if something is unregulated and operates outside a generally accepted legal framework, then it's the wild west. Some innovative products are emerging in the ecosystem, like blockchain?, and could have commercial and security advantages over legacy products or ew risks that need to be managed
'With the current economy, I imagine less money going in and more coming out.'
https://www.msn.com/en-gb/money/news/crypto-lending-company-genesis-suspends-withdrawals-reportedly-considering-bankruptcy/vi-AA14t6EM?ocid=msedgdhp&pc=U531&cvid=1c3b0af3ab924f2096422cbf50e68fad
Averaging down is only worth it when the company fundentals are solid and it is a short term blip with either the sector, whole market or a temporary set back at the company. Vodafone isn't where it is due to any of these.
The fact is if you don't believe in the company then you shouldn't hold it at all. If you are holding then there must be a reason? Sitting on a paper loss isn't a reason to carry on holding. If the company is no longer a solid investment then sell as it is usually better to cut your losses. Holding a loser has an opportunity cost as that money can be put to work elsewhere. If you still think the company is a great investment then buying when it's cheaper should be welcomed by you, so you should average down. You're now getting shares cheaper than you previously did in a company that you regard as a solid investment, surely that's a good thing? The point is that if you aren't prepared to average down and buy cheaper in every stock you own then you need to ask yourself if you should be holding them at all.
I averaged down in Shell during 2020. At 875p that was a no brainer. It was a temporary issue with the entire sector and guaranteed to come back. I threw the kitchen sink at it and the price was a blessing not something to be feared. I knew buying Shell at that price was a once on a lifetime opportunity and would make me a lot of money. The losers were those that were selling at multi decade lows in a solid company. That's the perfect average down. My investment case in Shell didn't change because of a temporary global problem. But that's Shell and this is Vodafone and it's up to you to work out if Vodafone is a solid investment with a bright future or a dog that you should leave.
mrcautious. Nick Leeson was not averaging down. He was a trader at Barings Bank in Singapore,& was able to buy a vast amount of shares, & then sell immediately on a different exchange, at a slightly higher price for a guaranteed profit, due to the very small variations between exchanges. (or so he thought). Unfortunately the markets crashed in the micro second between the buy & sell. He did try & chase his losses, but eventually bought down Barings bank. (Averaging down) Of course averaging down is possible, but risky if the price just keeps falling. You can always bring your average down, If you own 50,000 shares at an average of £1.30 (£65k & then buy 50,000 more shares to lower your average to 1.20 you increase your holding to 100,000, as your average on 100,000 shares is then 1.20, if the sp falls to £1, you are then losing £20k. But if had just kept the original 50,000 shares, you would be losing less, £15K. Of course, if the sp goes back up to 1.30 or more, then the averaging down has worked to your advantage.