When is the best time to a average the stock when it is touching new high i. E. If you have bought it at much lower price. Pls guide.
Option 1. Wait for market to correct.
Option 2. Wait for temporary downside.
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In addition to what @ASP has mentioned, while valuing the company at the current price,
- Don’t anchor yourself to your initial buying price so that your assessment doesn’t get coloured by endowment bias. This will ensure that you have your eye on the future prospects of the company, not its past performance.
- Be mindful of your overall portfolio while deciding how much additional money you want to allocate to this stock.
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