Every now and then, you should take a step back and re-look at your portfolio of stocks.
The lull period in September usually allows some time off for calm reflection.
It is during such periods that you can take a long, hard look at your stock positions.
For companies that have performed well, give yourself a pat on the back.
And for those that are not, treat it as a learning opportunity and learn from your mistakes.
But as you do your review, a common dilemma arises.
For stocks that are performing well, should you add on to your position?
Conversely, for positions that have performed poorly, should you buy more to lower your average cost?
It’s not an easy decision to make and many investors may end up in a quandary.
Let’s walk through the decision process so that you are better equipped to tackle it.
Averaging up
First off...