I’ve doubled down on money losing stocks because I believe they will be acquired by larger companies..

Question

I own four stocks JTR, WMD, CYM, and ONCS. Three of the four, I am banking on them being bought out by a larger firm. A fourth one is a hot mess that does well on PR and little on delivery and I hope to ride it’s cyclical trend and get out before the truth hits.

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Anonymous 8 months 4 Answers 88 views 0

Answers ( 4 )

  1. Doubling down in this time of the market cycle seems like a very risky thing to do because the market may crash completely. It would likely have been better to cut your losses short, preserve your capital and then reinvest when the market hits the floor. This sounds like you have fastened your seat belt and are determined to ride the bear market down to floor with your money invested in the market.

    There may be merges and acquisitions yet you just don’t know in these market conditions.

  2. Better would have been to wait if you were to invest more. I understand you are invested and you want to ride it out. OK that’s fine. However at the same time if half your stock you buy high and the other half low then you bought at a medium good price. But if you buy twice high then it will be difficult for you to make money on the stock because it is going down now for a while and then when it comes up again it will have to surpass current levels for you to earn a profit.

    Better to wait and buy in again at the bottom of the market instead of buying too many shares at too high a price.

  3. Doubling down is never a safe investment strategy, it seems you may have been overcome with the fear and greed emotions here.. it won’t end well.

  4. Sounds like you’re going to be in for a world of hurt, just saying…

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