Are you down 50% one or more of your stocks?
That's the position a lot of people are finding themselves in at the moment. Part of the issue was that, of course, the overall market dropped, but investors may have paid too much when they bought the stock in the first place. We teach our Readers to NEVER pay retail prices for a stock - that's what retail traders do - not professional traders!
First of all, see our previous articles about Scaling Into Positions. The very short story is that you should never make a full commitment to a position early on. You should break your portfolio down into Allocation Blocks equal to no more than 10% and preferably 5% of your portfolio so that no one position can break you. Then you break your allocation blocks into quarters and each position should be started with a 1/4 entry.
Had you, however, made a 1/4 allocation to DIS in Feb, let's say buying 100 shares for $14,000 in a $50,000 allocation block, you would have plenty of buying power to buy 100 more at $90 ($9,000) and your average on 200 shares would be would be $115 ($23,000) - not even 1/2 of your $50,000, and down only 18.3% on the larger position.
