Sometime back, I blogged about my long position on Super Group (S10) [click here to view]. For the past 2 months, the counter is experiencing a steady downward trend. Two days ago, one of my reader posted a comment on my post and asking for my insights about this counter (later on I understand that he is thinking about adding more Super Group shares since the share price is at the "low" now. I use low with quotation marks as it is really subjective).

My response to him/her is that since the share is still in the midst of downward trend, I will not add any position at the moment. The idea is simple, avoid buying stock that is on the downward trend as we will never know when it will hit the bottom (learnt it from one of the investment book ;-)). I use this guide whenever making a buy decision ...