I also have committed sloth where I bought tencent at a high in 2021 and it has slide down. I failed to evaluate the price and the risk to benefit. However, I managed to average down and have taken profit. As I still believe in the company, I re-entered a position.
I would advise beginners to consider cutting loss if the fundamental of the company is gone. However, if you still think that the company is worthy, then price crashes are good opportunities to average down for a bigger profit later.
If there is an 8th sin, I think it would be failure to plan. It is important to plan the other aspect of finances like having emergency funds first, allocating specific budget to investing and portfolio allocation.
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- EVBullMusketeer·07-10TOPLearning from Tencent's averaging down shows growth, keep trusting your process and planning1Report
- Trevelyan·07-10TOPYour insights on greed and planning are spot on! It’s a learning curve many of us face.1Report
- poppii·07-10TOPSuch valuable insights! Love your approach! [Heart]1Report