How To Know When To Buy & When To Average Down On Your Investments

I often get these questions: "How do I know when to buy?" and more importantly, "How do I know when to average down?"

So in this video, I want to discuss those two topics. In this video, you'll get:

  • Tips to know when an asset is overvalued
  • Tips to know when a downtrend is likely over
  • How to get closer to a market's bottom (or stock's bottom) by averaging down
  • How I know where it makes sense to average down on a stock or index.
  • How to know if an asset is solid and should be invested in or averaged down on, in the first place

I hope you enjoy the video.

God bless!

Comments (22)
No. 1-21
TednLiz
TednLiz

Awesome Sean! Love the extra bonus videos!!

Sean Hyman
Sean Hyman

Editor

Thanks. As I see common questions/gaps, etc. I try to fill those with articles or videos that help fill those knowledge gaps. I'm glad to see they're helpful.

JaneBerlowe
JaneBerlowe

So very clear, illustrative, and helpful! Thank you Sean.

Sean Hyman
Sean Hyman

Editor

Thanks, Jane. I sure do appreciate it.

FusionDude
FusionDude

This is gold. I wish I had learned this 5 years ago. Thanks for your continued efforts to educate

Sean Hyman
Sean Hyman

Editor

I'm glad that was helpful. Thanks.

dominic52
dominic52

Thanks for the averaging down info. Very helpful on understanding how & when to average down. Your good work has help me increase my wealth & donations with my ministry.......Thank you

Sean Hyman
Sean Hyman

Editor

Thanks.

Bekka
Bekka

Thanks so very, very much!!! So clear and easy to understand.

Sean Hyman
Sean Hyman

Editor

Thank you. I'm glad you enjoyed it.

Bill17
Bill17

Thanks Sean. Very helpful. Averaging down was my Achille’s heel. You touched on it before but another question has always been how much of my total portfolio should I be allocating to a single position. If the target was per se 5%, then do I have 3 piles of 5% (15% total) or do I divide the 5% into 3 (~2% per pile) for averaging down. Thanks again for all the coaching!

Sean Hyman
Sean Hyman

Editor

In a perfect world, you'd divide your money by 20-25 for the money allocated to each stock and then sub-divide each stock's money by 3. But keep in mind, we live in a world that's not textbook. Maybe we'll have that many positions at some point, maybe not, depending on what the market gives us. Maybe we'll be able to do full averaging downs, maybe not. Also, as we're adding some positions...at some point, we'll be selling others and freeing up some fresh capital. So there are those variables to consider too.

Alan Blommer
Alan Blommer

Really great info! Thanks Sean!!!

Sean Hyman
Sean Hyman

Editor

Thank you. I sure do appreciate that.

mmontetx
mmontetx

Great video, we had spoke on this, but great public domain knowledge

Sean Hyman
Sean Hyman

Editor

Thanks. I appreciate it.

Scott
Scott

Hi Sean. CIG was down significantly today on dollar strength versus the real. Should I buy more? I'm already pretty upside down on it but as a 3 billion dollar company I would be willing to average down. What do you think?

Sean Hyman
Sean Hyman

Editor

Nope. That was just a typical move for an emerging market stock. No big deal at all. Just regular movement. I’m away from my computer at the moment, but simply check out the search field mentioned in last night’s weekly video. Put in that symbol and you’ll see my recent thoughts on it.

Bekka
Bekka

I just re-watched this and it's so good! I'm going to try and get my hubby to watch it:)



shmcc2000
shmcc2000
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