WHEN TO ADD MORE MONEY TO A POSITION
Phil Town Here's a question from Gordon in Michigan:
When is it ok to add additional money to a position? For example, I am up about 13% on my PNRA investment (in about 3 weeks). Should one wait to receive sell signals (get out), and then purchase more stock after receiving fresh buy signals? I hope to never get sell signals, and I'd like to own more stock too...
My response:
Good question about when to add more money. Don't add in the middle of a trade. You can wipe out a lot of gains that way. Wait until you are out and ready to re-enter. Then come in with a strong, focused position.
Congratulations on a great investment.
Now go play.
About Phil Town
Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces.
He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil's goal is to help you learn how to invest and achieve financial independence.
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