As we never know what will happen on the stock market it is wise to never buy a full position in a stock all at once. Buying a whole position in one buy might force you to helplessly watch the stock further decline while you don’t have any more buying power. Buying in small stakes allows the investor to average down in declining markets. As the stock recovers you can sell the positions you acquired over time at a higher level in order to manage your portfolio risk and book a small profit. Over the long term those small trading profits around the margin of safety compound to amazing investing
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