tock Waterfall Formula: Understanding and Utilizing It

Hello, friends! Today we're going to talk about stock investing, and if you're not familiar with it, don't worry. We're going to make today's topic, the "Stock Ride Formula", easy and fun.

What is the stock picking formula?

Have you heard of the term 'stockpiling'? It refers to the behavior of buying a stock and, when it loses money, buying more of the same stock to cut the losses. The strategy we use to do this is the "stock churning formula".

Caution.

But here's the catch. You should thoroughly analyze a stock's financials, market trends, and other factors before using this formula, as it can cause you to lose more money than you would otherwise.

Application of the formula

So, how do you apply this formula? The first thing is to buy additional shares of the losing stock. For example, if you bought a stock at 10,000 won and the price dropped to 9,000 won, you can buy additional shares to lower your average purchase price.

The second is to repeat this multiple times, but again, you need to be careful. You shouldn't buy stocks blindly, but consider the value of the stock and your financial situation.

Wrapping up

The stock picking formula can help you cut your losses, but it can also hurt you if you use it incorrectly. That's why it's important to be knowledgeable about stocks and analyze them thoroughly before using it.

Investing in stocks can be difficult and complicated, but once you understand the basic principles and strategies, anyone can do it. I hope this article has helped you with your stock investing, and I'll see you in the next installment!

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