simoan wrote:Lootman wrote:I feel sure that you know this but much the same can be achieved by leaving in place a series of buy limit orders, to capture any drop in share price to a point where you would like to add. Then you might not feel any need to look at all.
But why would anyone buy based on price alone? To completely ignore valuation is the very essence of stupidity. Maybe for an index tracker with a long term perspective that approach wouldn’t be ruinous, but for individual company shares your limit order is more than likely going to trigger when there has been a profit warning in the current market conditions. The first profit warning is rarely the last in my experience. It’s almost a guaranteed method for capital erosion.
Doubling down on losers is not a good idea generally, I agree. Although it can work out - last year I kept buying Nvidia as its price declined and I am now up 300% on that position in 12 months.
But that was what Gerry said he wants to do, so I was just suggesting a way to do that.