Who is bailing out of stocks like Dell and who is Dollar Cost Averaging?

Question

Curious as to what others are doing... I first bought into Dell at over 30 and have DCA'd down to 23 with the price now at about 19... what have been your big losers and what did you do with them?

Answer 1

I am a mutual fund man and have been dollar cost averaging in a Fidelity Fund. The Freedom Fund 2040. (It actually adjusts itself as you get older from aggressive to conservative). I am hoping for the best. Although, I am diversified in real estate as well as my own business (best investment yet). Hope this helps. Good Luck, it seems to be harder and harder to make any money.

Answer 2

Never chase a falling stock...its like standing in front of a train or catching a falling knife...better to take the loss now and move on to the next trade or u else u will be putting youself in very bad position....think about it...what would u do if dell falls to 15, to 10, or to 5...how much cash u have left to average it down...u will find it you will need a lot of money to average it down close enough for a retracement to hit your average price for a exit...is it worth the risk? never put yourself in a position where you can get wipe out or else its game over....you should read the book "Rogue Trader" and you will know how a trader brought down Barings Bank using similar DCA technique...

Answer 3

I've been short the stock market since Feb....Dell looks like $10 by fall.

Answer 4

Depends on your basic strategy. I myself have been doing stocks for 30 years and never averaged down.

Answer 5

Not this birdie. Dell has some serious problems. It's a hold, but not buy.

Answer 6

never chase a stock down.
I short bad companies like kkd and xmsr