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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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Watching KK, even after their good results, iko mbaya saidi. Receive with simplicity everything that happens to you.β β Rashi
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Rank: New-farer Joined: 8/6/2015 Posts: 26
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Woi, too much blood on streets today ! KENRE, EQT, SCOM
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Rank: Veteran Joined: 6/23/2011 Posts: 1,740 Location: Nairobi
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My advice to those who have never experienced a bear. This is just like a sine wave, it goes up and down. You will have your day and soon.
If you are already in, now is your opportunity to increase your holdings or average down, if you donβt want to increase hold on. If new, time to buy.
The most important: Always know when to sell and when that time comes take the decision because like a sine wave there will be another fall and another rise.
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Rank: New-farer Joined: 8/6/2015 Posts: 26
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Well said @Streetwise.
Couldn't agree more !
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Rank: New-farer Joined: 10/16/2014 Posts: 33
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Bought Equity @ 52 and Centum @ 60. Would you advise to sell and buy at a lower price e.g Equity sub 40 or buy more of the shares and average down? Never been in a bear before!
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Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
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dpmungai wrote:Bought Equity @ 52 and Centum @ 60. Would you advise to sell and buy at a lower price e.g Equity sub 40 or buy more of the shares and average down? Never been in a bear before! If you sell you will loose .add more to reduce you avarage buying price . If you bought equity at 52 and now it's 40 and you choose to add more then the total BP will be(40+52 =92 then 93/2= 46) 46 which will be lower than the 52 you bought. I learnt from veterans like boris, vvs, Pesanane and the rest. You don't sell during bear instead you load but you sell more during bullish and buy less because price are overpriced . ...I stand to be corrected
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Rank: New-farer Joined: 8/6/2015 Posts: 26
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Pole Sana @dpmungai !
Heed advice given by @Streetwise and you should be fine. You either hold or continue buying to average down. selling now beats logic. In your case however,a hold strategy would not be very wise unless you do not have immediate need for the money since you might have to wait VERY long to reach prices at which you can sell at a profit.
I would therefore recommend averaging down. To what extent is determined by how much you are holding currently as the price will be a weighted average. If you hold a lot then you must also buy a lot at low prices to really bring down the average price.
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Rank: Member Joined: 1/3/2014 Posts: 257
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@dpmungai your best strategy as aptly advised by @enyands and @kahuna is to average down. Use this strategy if you have more money to put in. Do not be in a hurry to buy. Right now the market is still sliding so wait for the market to bottom out. Then start buying when it starts to climb again. Example Equity @52, if you put in an equal sum as your initial equity purchase and buy at 33, your average price will be around 42.50.
Your second best strategy is to sell and re enter at a lower price. You should only use this strategy if you have no more money to put in. Again, wait for the market to bottom before re-entering. This strategy is dependent on your exit price being higher than your re-entry price. Example exit Equity at 39, use exit funds to re-enter at 33, you break even at around 43.40
Your third best strategy is to hold. Be prepared to wait a really long time. You should use this strategy if you have a long term horizon. Break even at 52.
Your last and least useful strategy is to sell and walk away never to come back. Needless to say you will have lost money and will not recover it. This is not recommended.
I know the advice was already laid out by @enyands and @kahuna, I just wanted to rank them in order and use examples as a guide. The examples are just based on the share price and do not factor in the fees/commissions but the point is they provide a mathematical guide to ranking the various strategies.
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Rank: Chief Joined: 1/3/2007 Posts: 18,187 Location: Nairobi
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Why did you buy at 60? If the same reasons apply then, if you can, but more at lower prices. Think like Warren Buffett. There is a lot of information online behind his reasoning. Don't cry about a discount. Stock up when there's a discount. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 11/15/2013 Posts: 1,977 Location: Here
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VituVingiSana wrote:Why did you buy at 60? If the same reasons apply then, if you can, but more at lower prices. Think like Warren Buffett. There is a lot of information online behind his reasoning. Don't cry about a discount. Stock up when there's a discount. @vvs You would have made a poor tearcher! thanks God you aren't a teacher. Just like diff students are at diff levels of learning, stock investors are at diff levels...Explain to each according to their level...the lower levels need arm holding for guidance. Give explanations and relevant examples just like @sniper did..You aren't at per with him/her. Everybody STEALS, a THIEF is one who's CAUGHT stealing something of LITTLE VALUE. !!!
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Rank: Veteran Joined: 8/10/2014 Posts: 986 Location: Kenya
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dpmungai wrote:Bought Equity @ 52 and Centum @ 60. Would you advise to sell and buy at a lower price e.g Equity sub 40 or buy more of the shares and average down? Never been in a bear before! Both financially sound companies with high growth,take advantage of the cheap prices and bulk up. The when a bull appears, sell half of those u bought cheaply
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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dpmungai wrote:Bought Equity @ 52 and Centum @ 60. Would you advise to sell and buy at a lower price e.g Equity sub 40 or buy more of the shares and average down? Never been in a bear before! Hold on to the shares, sell after 5 years then come to Wazua and buy all elders and chiefs a drink as a way of saying thank you. Life is short. Live passionately.
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Rank: Member Joined: 8/15/2015 Posts: 817
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sparkly wrote:dpmungai wrote:Bought Equity @ 52 and Centum @ 60. Would you advise to sell and buy at a lower price e.g Equity sub 40 or buy more of the shares and average down? Never been in a bear before! Hold on to the shares, sell after 5 years then come to Wazua and buy all elders and chiefs a drink as a way of saying thank you. exactly.hold on to those shares.the holding period is about two years if you are to look at the nse charts
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Rank: Member Joined: 8/15/2015 Posts: 817
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enyands wrote:dpmungai wrote:Bought Equity @ 52 and Centum @ 60. Would you advise to sell and buy at a lower price e.g Equity sub 40 or buy more of the shares and average down? Never been in a bear before! If you sell you will loose .add more to reduce you avarage buying price . If you bought equity at 52 and now it's 40 and you choose to add more then the total BP will be (40+52 =92 then 93/2= 46) 46 which will be lower than the 52 you bought. I learnt from veterans like boris, vvs, Pesanane and the rest. You don't sell during bear instead you load but you sell more during bullish and buy less because price are overpriced . ...I stand to be corrected the trend of the market is key if you will make money with your strategy because we can be in a sell-off and you are loading up.but for nse right now yep this strategy will work fine. are your really sure about that averaging down mathematics?where did you learn it from.
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Rank: Member Joined: 8/15/2015 Posts: 817
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any technical annalists here ? those fibs look pretty delicious on the nse chart . lol
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Rank: New-farer Joined: 10/16/2014 Posts: 33
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The wisdom in you guys kweli. The short time I've been in stocks I have learnt much more from Wazua than what my broker would have taught me in a million years.. Will do the math on hold and average down. @sparkly, drink after 5 years? let me save a bottle now to start aging.. 
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Rank: New-farer Joined: 8/6/2015 Posts: 26
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Cornelius Vanderbilt wrote:enyands wrote:dpmungai wrote:Bought Equity @ 52 and Centum @ 60. Would you advise to sell and buy at a lower price e.g Equity sub 40 or buy more of the shares and average down? Never been in a bear before! If you sell you will loose .add more to reduce you avarage buying price . If you bought equity at 52 and now it's 40 and you choose to add more then the total BP will be (40+52 =92 then 93/2= 46) 46 which will be lower than the 52 you bought. I learnt from veterans like boris, vvs, Pesanane and the rest. You don't sell during bear instead you load but you sell more during bullish and buy less because price are overpriced . ...I stand to be corrected the trend of the market is key if you will make money with your strategy because we can be in a sell-off and you are loading up.but for nse right now yep this strategy will work fine. are your really sure about that averaging down mathematics?where did you learn it from. Haha, thought as much about that mathematics. I hate to say he or she is wrong given that could be correct assuming a scenario where the investor buy an amount equal to current holding once-off in which case the average price would be calculated as per the example. However, in order to generalize, it is important to note that the resulting price will be a weighted average.
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Rank: Elder Joined: 12/25/2014 Posts: 2,301 Location: kenya
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Kahuna wrote:Cornelius Vanderbilt wrote:enyands wrote:dpmungai wrote:Bought Equity @ 52 and Centum @ 60. Would you advise to sell and buy at a lower price e.g Equity sub 40 or buy more of the shares and average down? Never been in a bear before! If you sell you will loose .add more to reduce you avarage buying price . If you bought equity at 52 and now it's 40 and you choose to add more then the total BP will be (40+52 =92 then 93/2= 46) 46 which will be lower than the 52 you bought. I learnt from veterans like boris, vvs, Pesanane and the rest. You don't sell during bear instead you load but you sell more during bullish and buy less because price are overpriced . ...I stand to be corrected the trend of the market is key if you will make money with your strategy because we can be in a sell-off and you are loading up.but for nse right now yep this strategy will work fine. are your really sure about that averaging down mathematics?where did you learn it from. Haha, thought as much about that mathematics. I hate to say he or she is wrong given that could be correct assuming a scenario where the investor buy an amount equal to current holding once-off in which case the average price would be calculated as per the example. However, in order to generalize, it is important to note that the resulting price will be a weighted average. Ha ha I did 3R for those who know it . That's why I said I stand to be corrected .but the weighted avarage sounds ideal and sound . I was just trying to drive a concept but the math involved was kaput. 
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Rank: Chief Joined: 1/3/2007 Posts: 18,187 Location: Nairobi
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Boris Boyka wrote:VituVingiSana wrote:Why did you buy at 60? If the same reasons apply then, if you can, but more at lower prices. Think like Warren Buffett. There is a lot of information online behind his reasoning. Don't cry about a discount. Stock up when there's a discount. @vvs You would have made a poor tearcher! thanks God you aren't a teacher. Just like diff students are at diff levels of learning, stock investors are at diff levels...Explain to each according to their level...the lower levels need arm holding for guidance. Give explanations and relevant examples just like @sniper did..You aren't at per with him/her. The best teachers want to make you think ππ½π And why repeat what others are explaining so well? πππ Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Member Joined: 8/17/2007 Posts: 294
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the blood letting continues at the NSE.. when will it stop?
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