Invest
Sub-strategy: “averaging down”
By SGKiasuGentleman  •  August 18, 2019
Before I write a blog post on my main strategy in investing in equities, I shall first talk about a useful and seemingly simple “sub-strategy” which I had adopted: “averaging down”. “Averaging down” involves investing additional amounts in a financial instrument or asset if it declines significantly in price after the original investment is made. The main advantage of averaging down is that an investor can bring down the average cost of a stock holding quite substantially. Assuming the stock turns around, this ensures a lower break-even price for the stock position and higher gains as compared to the situation in which the price of the stock was not averaged down. From my own example, I had purchased Singtel at a price of $3.86 in July 2017 which was too high of a price to pay for Singtel. However, the price of Singtel plummeted to $2.96 in March 2019 due to...
Read the full article
By SGKiasuGentleman
Hi everybody reading this blog! I am SGKiasuGentleman, a 22-year old student at SMU School of Law. I started this blog due to a stroke of luck, or perhaps to be more accurate, a stroke of misfortune.
LEAVE A COMMENT
LEAVE A COMMENT

Your email address will not be published.

*

Your Email Address will not be published
*

Read More Articles
More from thefinance