Averaging Up

Tom, what is your position on averaging up, as I have been doing as (one of your recommendations) climbs?—B. 
Thomas E Garrity: If I had a choice with any stock, I'd prefer to average up, but each stock has its own personality. The stock you mentioned has proceeded forward in price only after consolidation periods. Having said that, I'd wait for a price pull-back and a pause before picking up more shares. However, if volume soars, you should try to get the low price for the day. After a stock hits a high, it usually retraces, providing an entry point.

Tom GarrityThomas Garrity
Small Cap Investment Specialist, Analyst and Editor of Cabot Small-Cap Confidential

Tom Garrity is analyst and editor of the limited-subscription newsletter, Cabot Small-Cap Confidential. A lifelong investor, Tom has been a stockbroker, stock analyst, venture capitalist, and portfolio manager. His long career and varied experiences taught Tom to make investments only when the odds of winning significantly outweigh the risks. He applies this philosophy to every stock he recommends in Cabot Small-Cap Confidential.


What our readers are saying about Cabot Small-Cap Confidential
More information on Cabot Small-Cap Confidential

 

Our Free Newsletter

Cabot Wealth Advisory delivers independent, no-nonsense investment advice on how to build long-lasting wealth. Learn about new hot stocks & the market timing indicators to profit from them. Simply enter your email address below - Start today!

We Value Your Privacy

Which Cabot Publication is Right for You?

Traditional growth investors subscribe to our Cabot Market Letter.

Aggressive investors are comfortable with the high-momentum stocks in Cabot Top Ten Trader or the fast-growing international stocks in Cabot China & Emerging Markets Report. 

Conservative investors follow the Cabot Benjamin Graham Value Letter to invest in high-quality undervalued stocks.

Long-term investors find undiscovered companies with compelling stories in Cabot Small-Cap Confidential.

ETF Investors use the solid advice in Cabot ETF Investing System to outperform the market.

Options investors follow Cabot Options Trader to buy puts and calls for quick profits with less initial risk.

Energy investors discover the strongest oil, gas and alternative fuel stocks in Cabot Global Energy Investor.

If you're not sure, Cabot Stock of the Month features stocks from all of our newsletters, helping you build a diversified portfolio of growth, energy, international and value stocks.