Have you guys ever experienced this situation where once you bought a stock, their share price immediately drops and caused you to suffer paper losses? However, different people will react differently towards this kind of situation, some will be excited and some will be disappointed, so which one are you?
Let me crack the code on why some people are genuinely happy and excited when the stock they bought immediately dropped in price. This is because everyone is unsure about their first purchasing on a stock, as you are not sure that whether this price is to lowest, or will it drops further down. Hence, they are able to buy more and lowering their average cost at the same time. Furthermore, most of the people are cautious about their first purchase, hence the quantities will be lesser, and dropping down more meaning that they have another opportunity to build up their portfolio.
However, there will also be another concern if the stock price dropped. What if the share price dropped continuously, and we as a small investor will not be able to keep averaging down? First, we shall know that a good company and a good stock will not have their share price to drop 30% in a day, or dropped 80% from its peak point, unless they are extremely overvalued such as the Technology Bubble in 2000. That being said, the solution for this is to set a few price point to enter and never buy the stock if the share price failed to drop to your entry point. For example, if you bought a stock at RM1.00, you are not going to buy more at RM0.97 unless you are fairly sure that the stock will only hit RM0.97 and rebound back, but do take note that there is no certainty in stock market. Hence, the strategy you can use is to put entry points at RM0.90 and RM0.85, and when the share price dropped to these points, you know that this is the chance to buy more at lower price.
On the other hand, the writer is well aware that some people will be disappointed when the share price dropped after they purchased the stock. To be honest, unless you are doing short-term trading on a relatively weaker company that every bid that the stock dropped will make you anxious, or else it should not be too big of a problem. A good company will definitely rebound in no time, and we can see this happened back in March 2020 where all companies dropped to their recent low, but is able to rebound back in the next few weeks.
In short, a price drop shall not be a problem from an investing perspective, but should be viewed as a golden opportunity to buy more. However, this will be all up on the person’s attitude and holding power, to see whether he or she can handle the temporary paper loss, for a potentially few-fold of returns.
你们是否也有过这种经历,当你刚买了一个股时,它的股价立刻跌而让你蒙受纸上亏损?但是,不同的人会有不同的反应,一些人会很兴奋而一些人会很失望。而你,又是哪一种呢?
让笔者来解释为什么有人是真的会因为股价下滑而感到高兴和兴奋。这是因为大家在第一次买入这个股时都会感到很不确定,不确定现在的价钱是否已经是最低,还是可能会更低。因此,股价的下滑让他们有机会买更多并且拉低它们的平均价格。除此之外,大多数人都会在第一次买入时比较小心,所以数量会相对的比较低。这也意味着如果股价下滑,他们有第二次机会来买的更多,并且扩充它们的投资组合。
但是,在股价下滑时大家也还有另一个担忧。那就是如果股价一直下滑,我们这种小投资者不能一直买下去,那该怎么办?首先,我们要知道一个好的公司是不会让自己的股价在一天里面下滑30%,又或者从高点跌80%,除非他们当时非常的被高估,就好像2000年的互联网泡沫一样。话虽如此,我们也应该设定几个买入点,同时在股价跌到你所设定的买入点前,坚决不买。举例,如果你一开始以RM1.00买入了一个股,你也不可能会在RM0.97再买除非你能肯定这个价钱就是最低。但是我们也要知道股市并没有百分百的。因此,你可以采取的做法可以是将买入点设定在RM0.90和RM0.85,而当股价跌到这两个价位时,你便知道这是加码的机会。
另一方面,笔者也很清楚一些人会在股价下滑时感到失望,特别是刚刚才买入的股。但实话说,你如果不是在一些基本面不好的股做着一些短期交易,你根本就不需要因为股价跌了一个价位而感到心急。一个好的公司是绝对会在短期内反弹的,而2020年3月就是最好的例子。当时所有的股都跌到了最近的新低,但就在几个星期后,大多数的好股都强势反弹。
总结,在投资的角度来看,股价的下滑不应该是一个担忧,而更应该被视为买入的黄金机会。但是,这也要视乎一个人的态度以及持股能力,看他们是否能够应付暂时的纸上亏损,来让未来有机会获得几倍的回酬。
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Created by YOLO123 | Feb 02, 2021
You need to take all aspect about this counter why it goes down into consideration, not only the value bec the stated value could be wrong.
Like Lambo its NTA is 6 cts, but the company is losing money and the profit is just paper profit from Focus, which could reduce in price due to its highly overvalued with huge volume of 6 bil shares and 2 bils of PA and wa.
The fools will blame others for giving negative comments, the smart 1 will be become alert instead of rushing to buy more. Cut loss must be at the beginning when it started to come down from rebound at 5 cts and should sell at 4.5 cts.
Now, is it too late to sell or it is too early to buy? it all depends on whether they are going to have share consolidation or not.
2020-12-14 12:49
Ready to all in my investment on focus-wd at around 2.5-3 cents even though the prices kept on declining since its listings.
2020-12-14 13:35
ks55
Surely you must be very happy!
Why do you buy the stock in the first place?
Value for money, correct?
Since you already see value in that stock, any thing cheaper will see more value in it. Buy more!
Only if you are a punter. You want to take a free ride. You want to be a day trader. You are using OPM. Or you don't know what have you bought.
So after your bought the share, and the price start to come down. Don't blame others but your own self!
2020-12-14 12:35