InvestorQ : In stock markets, what is meant by throwing good money after bad?
Riya Dwivedi made post

In stock markets, what is meant by throwing good money after bad?

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seema Upadhyaya answered.
3 years ago
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When you let a bad strategy to determine the fate of a good strategy, you are throwing good money after bad. When you book losses in future stars to add more of cyclical companies with limited visibility, you are again throwing good money after bad. Most people do this either knowingly or unknowingly. Throwing good money after bad is done in a variety of ways. You can either average a bad investment decision. Alternatively, you decide to exit a quality stock and invest in a company with dubious credentials. Worse still, you stay too long in loss making positions and exit rapidly from profitable positions. Don’t throw good money after bad! Throwing good money after bad has another implication. Taking your investment profits into trading is never a good idea. That is also like throwing good money after bad.

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