What is the right time and way to average a stock?

[Nitin Bhatia]

Nitin Ji
Namaskar.

Kindly advise:

1. When to start buying more of a stock to bring down the average cost especially when one is not in hurry to sell it. (Fundamentally strong stock like ITC for example)
2. How to buy more shares of that stock; for example buy more of it every time it falls 5%?
3. How to re-balance the stock portfolio when it is too heavy with one stock and that stock is in high notional loss.

Thanks and regards for sharing your valuable insights.
Suman

[Nitin Bhatia]

Answer to this question would be different for person to person. This depends on how much money you want to invest and how much risk you can take.

I would suggest, never average out any of your loss making trade.

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