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Buying on a big market drop
06 Mar 2021 (418 views)

The growth stocks fell sharply on 5 March 2021. Many of the growth stocks that I monitored dropped more than 10% (in one case 25%) during the session. These stocks already fell by more than 25% on the previous few sessions.

I sold several stocks (not the growth stocks) to raise cash of $156,000 USD to invest in the five stocks shown below. These growth stocks had dropped to a level that showed good value.

I cleared the position for four stocks and made a profit of $3,448 when the prices increased by 10% above my cost. 

This is the first time that I traded actively when the market fell. I was lucky that the market rebounded for its oversold position. It allowed me to clear off the purchases and come out with a profit.

I  bought 200 Tesla shares (100 at $711, 50 at  $618 and 50 at $568). As the price continued to drop, I bought more shares to average down my cost.

The average cost of the 200 Tesla shares was $596. The stock closed at $598 giving a modest gain of $367.  I will add this long term holding to my existing 100 shares.

Previously, I bought 100 Tesla shares at $711. With the additional 200 shares bought on 25 March, I now hold 300 Tesla stock at an average cost of $634, total of $190,000 USD. 

Tan Kin Lian

 

Note - I am sharing my experience. I am not giving investment advice and not recommending the purchase or sale of any stock.



Buying on a big market drop
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The growth stocks fell sharply on 5 March 2021. Many of the growth stocks that I monitored dropped more than 10% (in one case 25%) during the session. These stocks already fell by more than 25% on the previous few sessions.

I sold several stocks (not the growth stocks) to raise cash of $156,000 USD to invest in the five stocks shown below. These growth stocks had dropped to a level that showed good value.

I cleared the position for four stocks and made a profit of $3,448 when the prices increased by 10% above my cost. 

This is the first time that I traded actively when the market fell. I was lucky that the market rebounded for its oversold position. It allowed me to clear off the purchases and come out with a profit.

I  bought 200 Tesla shares (100 at $711, 50 at  $618 and 50 at $568). As the price continued to drop, I bought more shares to average down my cost.

The average cost of the 200 Tesla shares was $596. The stock closed at $598 giving a modest gain of $367.  I will add this long term holding to my existing 100 shares.

Previously, I bought 100 Tesla shares at $711. With the additional 200 shares bought on 25 March, I now hold 300 Tesla stock at an average cost of $634, total of $190,000 USD. 

Tan Kin Lian

 

Note - I am sharing my experience. I am not giving investment advice and not recommending the purchase or sale of any stock.