In the past year, many people walked away from stock market, and most of them lost money. Usually, here is a choice, either you cut your loss, maybe 50%, say bye to stocks and never come back, in this case, you are winner. The other choice is that you stay and wait for your stock to come back and you will be winner as well. The losers only belong to those who are buying in bull market and selling in bear market time and time again.
I mentioned the my strategy on airliners when OIL hit 120 several months ago. After that the OIL hit 140 and the bubble is broken up. Taking NWA for example, my strategy made me bought this stock 4 times, 100 shares a time at 15.x, 9.x, 7.x and 5.x respectively from Jan to July this year, the average cost on my account is 9.72 for 400 shares so it's making money. My UAUA average performance is worse than NWA but above water anyway. However, ZNH is even worse and I am losing money on it - this indicates you need to diversify your investment within individual sectors.
To have stocks, dollar averaging is better than lump sum purchase, the same thing holds now for H-shares listed in US market as ADRs. After commodity stocks such as SNP PTR ACH in trouble, the telecoms were also bashed in these days, and people said H shares are over, ADRs are over like what they said to airliners half year ago. However, I am buying and asking friend to buy Hong Kong funds, bank notes, and gradually accumulating nice blue chips such as COSCO, China Mobile, which are bashed in recent days. I also own Anshan Steel, Chalco, Mengniu Diary, Alibaba and Bank of China. Let's see what will happen 6-12 month later.
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