Even I admit I made this mistake with SGH. I bought at $1.27 which was comparatively 'cheap' - however it went down much further and I did not have a sufficient exit strategy subsequently losing 40%.
My new strategy for SGH is not to explain away large losses by convincing myself that I am 'going long' or by 'buying down' which simply compounds the problem. IMHO I believe it is better to cut your loss and exit the stock, wait, and then choose another future entry point into the same stock if/once things become more clear.
I may re-enter SGH and speculate in the future but whilst it is a falling knife and whilst there is no firm movement towards recovery what is the point of re-entering?
SGH Price at posting:
55.5¢ Sentiment: Sell Disclosure: Held
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