Hi SF,

What I meant is this. Let's say that stock I mentioned fell from $3 to $2. So you decide to buy in at $2 for long term. As the stock keeps falling from $2 to $1.20, what is your remedial action? Average down or cut loss. For some stocks that have fallen from around $2.80 to now about 80c, the risk is certainly less. So if HLJHLJ buys in at 80c is less risky. I just presume HLJHLJ by saying "buying over time in bear marekt" means averaging down. If my guess is right, then averaging down for that stock from $2 to $1.20 is not exactly what I would do. My main point is don't incur huge paper loss if you have no net profit from last bull run. 

You are right. I have changed my style a little. I feel it is important when you learn mistakes, you need to learn, adapt and change a bit and not be so rigid. This is just my point of view. As I explained before, in the past I picked quite a few good counters buy always sold too early. So I analysed and told myself,"Ok, let's try just buy and hold." That change in strategy proved to be right when the bull run ran in 2006 to Sept 2007. But now looking at what's has happened in this great bear market, I need to fine tune my strategy a bit to maximise my profit. Does it make sense to hold my winning stock from Sept 2007 to Sept 2008 for long term and lose all the profit I made? In my mind, I am always thinking of ways to improve:) Last year I never knew anything about short selling. But I find it extremely useful. So I need to add this into my "tools".

When you first started work, you probably had only a few skill sets. Gradually through years of experience in your professional work you gradually  become better provided one is willingly to learn and make some changes. Life cannot be so rigid. Largely it is also how Singapore came to where it is today, discarding what does not work and improving with change. The same with America with change.  

Hi lookcc and HLJHLJ

Cannot agree with u 2 more.

Have to be focus  and not be "influence' by ppl who do trading.And also i ensure that the counter i intend for investment pays a divvy greater than the FD rate.Counters can included keppel corp,SIA etc...This way,we have capital growth and divvy.

As they say,investment is a patience and boring game.

To me,real estate investment is the same concept...it always take a long term to improve the value while we collect rental income.

Lastly,if u are into margin lending and depending on ur risk taking level and depending on ur cash management skill,if the divvy returns is greater than margin rate,it is a good time to go margin.

For Livermore.....actually i could not see any posting by either HLJ or lookcc that says they intent to average down.Do we need to average down just because the px fell??

I have actually follow ur posting(livermore) and reckon u have chop and change ur focus/strategies many times over the period of last 1 to 2 years.

Hm....

that would depend on the concept of 'value'. hehe.

If we're using FA terms of NAV and book-to-price as value, then, few stocks have even hit their proper value levels. Most would be deemed overpriced even now. 

If it's price you're talking about though, then yes, a lot of stocks have fallen from the highs that they were chased up to previously.

Which only goes to show how Graham was indeed right, when he said that markets swing forever in the pendulum between irrational exuberance and unwarranted pessimism.

in which case, i would question in the first place, the initial stock selection. You don't do DCA for trading stocks or worser yet, speculative ones.

In second place: question the initial buy price. If value is at $1, or $2, why are you buying at $3? Stocks now, though they've fallen so much, realistically, very few are at or below NAV. Strict rules for value investing is first buy px not more than NAV, better yet if a half or a third. Then there are also historical trends to consider, and its current chart.

Bottomline:

If it is a real 'value' counter, it should not drop more than 50% from your first buy px. because you wouldn't have chosen to buy it at $3.

if it was meant as a trading counter, 2.8 would have been a stop loss. Lowest 2.7.

Either way, trader or investor, if one followed the rules, there should not even have been the issue of $3 to $1.22, and you're averaging down all the way. That's desperation, not investment.

Just my observation.

One will notice in the investment section of any bookstore,80% of books are on how to do share trading and/or read TA.

This,in my opinion,is because many ppl lost money doing trading in shares.Thus the writers, publishers and book salesmen(like ipunter) will cash in on the poor small time retail traders.Sound like snake oil salesmen.

 Nobody will teach ppl how to make money because the simpliest thing to make money is doing the boring buying of good counters,sound business model,sustainable dividends payments and good management.

Personally,i would recomend ppl go for personal cash flow management.This is a life time skill .

Hi elfinchilde,I have not and will not lost sight of my initial objective in my investment.