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“Adding to a loser” describes continuing investment in a stock or fund that has continued to decline. Continuing to invest when it is going down in value can be a solid play up to a point.
If you remain bullish on the company or fund, you may be getting a great deal on the shares that you purchase. When the price rebounds, you will have full participation in the upside with more shares than you would have otherwise.
This is also known as Buying on Weakness. Obviously, this sounds fine until you are the one putting your money into the stock that continues to decrease in value. You could really be buying into the unfortunate fate of a company doomed to fail.
Value investors attempt to find companies whose stock is oversold or undervalued by the markets.
Through fundamental analysis, which includes looking at the balance sheet of a company and the market information about peer companies, they buy equities that have fallen out of favor or are “off the radar” for most investors.
Adding to a loser could be a value investment, or it could be a money pit.
The advance/decline divergence oscillator tracks the rate of change in the advance-decline line. McClellan Oscillator
Coverdell ESA accounts can be used to cover educational expenses. Similar to a 529 Plan
Currently, you have to be 62 years or older to start receiving Social Security benefits, and this includes spouses
One simple example of Present Value is the amount that needs to be invested in order to grow to a specific amount later
The payments remaining on an interest-paying bond or instrument, plus principal... annual rate is the yield to maturity
Counter-party risk is the risk that the person on the other side of the trade will not meet his or her obligations
Appraisal Fraud is the intentional misrepresentation of the value of a home using an appraiser’s statement
If a bank forecloses on a home, and it does not sell at auction, it becomes bank-owned-property (or real estate owned)
The Broadening Wedge Descending pattern forms when a currency pair price makes lower lows and lower highs, forming a downtrend
The Ascending Triangle pattern has a horizontal top line representing a resistance level, and an upward-sloping bottom