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In bear market, what’s better in your opinion, Averaging or buying new?

I’ll go first. I think buying new shares is better because it diversifies your portfolio. Though you are already on a loss, the new stocks which you’ll buy will definitely cover it up given you do careful research. For instance, the shares that were previously high priced, that gave good returns, are now available for lower price. My two cents, what’s yours.


View on r/NepalStock by Rhyss007


3 COMMENTS

  1. It depends on your outlook / time horizion. You also need to ask yourself if you are a trader or investor. Widely different approach.
    If you are mostly looking into short holding period look into buying outright at attractive prices and with clear target ( time or pnl). If your time horizion is in years by all means average it down but be smart amout it.

  2. If you are confident in some stock being undervalued than those that you are currently invested in then logically it makes more sense to go all in on the undervalued stock than diversification or averaging. The only variable here is your level of confidence. If you’re not confident and dont want to risk it all, diversification is the way to go.

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