Need help and advise

yelhsa · 1 Need help and advise Fri May 06, 2011 3:51 pm

yelhsa

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Hi, I own 10,000 LGL-X shares bought at 38.50. Since then price has come down quite a lot. I was thinking of price averaging. The current price is Rs. 30. In order to bring down my average price closer to the current price, I will need to buy quite a few more shares. Does anyone think this is a wise decision. How many more shares would someone recommend that I buy and what would be the ideal price for LGL-X.
Thank you

wallstreetguy · 2 Re: Need help and advise Fri May 06, 2011 7:30 pm

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My signature says it all. My opinion is buy few shares, and as the shares take a dip futher, I would buy. I think this is the good times to buy.

I recommend you to buy, if you hav addtional money, which your not in a hurry off to sell, money which you can risk in this volatile market,because in the end, in these market, Bulls win, Bears win, Pigs get slaughtered.

mark · 3 Re: Need help and advise Fri May 06, 2011 9:13 pm

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yelhsa wrote:Hi, I own 10,000 LGL-X shares bought at 38.50. Since then price has come down quite a lot. I was thinking of price averaging. The current price is Rs. 30. In order to bring down my average price closer to the current price, I will need to buy quite a few more shares. Does anyone think this is a wise decision. How many more shares would someone recommend that I buy and what would be the ideal price for LGL-X.
Thank you

this share touched 29 level and rebounding to 30-31 level.....better to average your price....
when buying put your buy orders at different prices,don't go for seller.....let him to come and fill your order.......
this may stagnant in these levels for sometime,so better to average and hold on to it...........

milanka · 4 Re: Need help and advise Fri May 06, 2011 9:27 pm

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Agree on averaging but Moniter the trend before buying thinking then you could average. If its on a downward trend then you can not average in one go. So as mentioned above you have to buy at different price levels different qtys.

yelhsa · 5 Re: Need help and advise Sat May 07, 2011 10:43 am

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Thanks guys for the advise.

smallville · 6 Re: Need help and advise Sat May 07, 2011 11:10 am

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Sometimes theres no hope in averaging when the share keep falling and we dont see an uptrend and not sure abt it as well..
For the amt you're trying to avg I think I think u'll have to spend more than 3laks now.. suppose if you sell at a loss it will be ard 87000/-..

Now u can make another choice..
From the money you're willing to invest to avg the LGL, buy shares of another company which can make you at least 50000/- in coming 1-2 months and hold on to ur LGL.. So u may be ain a position to even the loss and the same time if LGL comes up, u can sell Wink

Now if you just happen to read the forum posts, I'm sure u'll find few good shares to invest to get a good return in a shorter period Basketball

mark · 7 Re: Need help and advise Sat May 07, 2011 11:23 am

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smallville wrote:Sometimes theres no hope in averaging when the share keep falling and we dont see an uptrend and not sure abt it as well..
For the amt you're trying to avg I think I think u'll have to spend more than 3laks now.. suppose if you sell at a loss it will be ard 87000/-..

Now u can make another choice..
From the money you're willing to invest to avg the LGL, buy shares of another company which can make you at least 50000/- in coming 1-2 months and hold on to ur LGL.. So u may be ain a position to even the loss and the same time if LGL comes up, u can sell

Now if you just happen to read the forum posts, I'm sure u'll find few good shares to invest to get a good return in a shorter period

agree......................i think this is the best choice,and also it will reduce the risk of focusing to LGL too much.........
@yelhsa-consider smallville's opinion........ Cool

yelhsa · 8 Re: Need help and advise Sat May 07, 2011 11:30 am

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Hi Smallville
Your advise also makes sense. Thanks again for all the replies.

StocksWatch · 9 Re: Need help and advise Sat May 07, 2011 11:46 am

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I also tend to do this mistake at times by trying to average my cost. The price of a share is falling for a reason and remember we are trying to catch a falling knife by opting to average our cost.

We wont know which is the bottom (only the history will tell) and each time we stepin thinking that we were lucky to grab some shares at the bottom. The next moment, you find that you were wrong and may repeat the process until you realize that you are holding hell lot of shares of that company, exposing your portfolio to a higher risk.

So as smallville correctly pointed out above, if you can identify a better share that has got potential to appreciate at a higher rate, why not go for that and forget this share for sometime.

yelhsa · 10 Re: Need help and advise Sat May 07, 2011 11:49 am

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Thanks StocksWatch, yes I think I will go with Smallville's advise.

tkc · 11 Re: Need help and advise Sat May 07, 2011 1:02 pm

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smallville wrote:Sometimes theres no hope in averaging when the share keep falling and we dont see an uptrend and not sure abt it as well..
For the amt you're trying to avg I think I think u'll have to spend more than 3laks now.. suppose if you sell at a loss it will be ard 87000/-..

Now u can make another choice..
From the money you're willing to invest to avg the LGL, buy shares of another company which can make you at least 50000/- in coming 1-2 months and hold on to ur LGL.. So u may be ain a position to even the loss and the same time if LGL comes up, u can sell

Now if you just happen to read the forum posts, I'm sure u'll find few good shares to invest to get a good return in a shorter period

Agreed with smallville....Sometimes "Averaging" is not the best way to cover losses...