Gamuda : If we are caught at RM5, should we be averaging down at RM4? Then .... wait for RM3 to buy more? How about RM2 ... we certainly need huge funds prepared for averaging it. Once RM2 done, are we going to all in at RM1?

This is Gamuda, one of the largest construction company in our country, Malaysia and listed in KLSE. It used to be index-linked, for your info.

Averaging down is not easy ... as we are prepared to be stuck for some time ... and expecting it to have reverse and uptrending again.

But ... we never know the BOTTOM. So, instead of timing the bottom, we buy in stages?

We were taught in very wrong ways/methods of averaging down, actually. We do not simply average it down. It the stock traded at RM5 previously, it doesn't mean RM3 is cheaper? Perhaps, you have bought at RM5 at very high-level? It is VALUATIONS thru biz-analysis and fundamental-analysis ... not base on the price traded in bourse, ok?

Averaging down in 2018 is kinda ridiculous decision to make ... and adding more in 2019 could be suicidal. But again ... no one knows, right?

Good luck to those averaging down. If we know what we are doing, no need to care about what others saying. Stick to our plans?

TEH