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REDDIT

Why do people here prefer buying stocks that drop by more than 50%?

A
Jun 29, 2026 · 21:28

Instead of high-quality companies that never drop by more than 25% and keep compounding shortly after the dip?

It's always the same scenario... The stock drops a lot and looks super-cheap, so you buy. The stock keeps dropping, so you buy more to average down. The stock keeps dropping and you have no more money to average down.

Why not just buy a stock that only drops a little, wait for a support, and start buying on the way up? You never feel bad about buying such stock and having it in your portfolio...