The lesson I learned bitterly in the past is never dig oneself a small hole then hope that it will magically recover. Sometimes it does but the fear is the word "wrong". I am never afraid of being wrong and I am often, what I fear is to trap myself in a big hole with the idea that it is too painful to crystalise the loss or makes my portfolio decimated otherwise. Averaging down does that unfortunately because if it is done in order not to be wrong then playing defensive to lower the cost base, the longer one gets trapped below that cost base, the more eager one wants to get out breakeven. That is like saying I am taking on all these risk of ruin only to come out not losing any money?
I learned all these BS retail mindset along the way because that is how I was brought up socially to never accept defeat or be wrong!
BDR Price at posting:
9.4¢ Sentiment: None Disclosure: Not Held
