Nickoo given your scenario I may well be a buyer at $1. However the money I bought with would be the money I'd retrieved from the $3 buy when I stopped out at $2.70 or whatever.
Interesting math.
Say 1000 at $3, then 12 months later 1000 at $1, (I'm assuming you'd double the stock not the outlay). Total commitment $4000 for 2000 shares. Ave. $2
However $3000 outlay for 1000 then stopped out at $2.70. 12 months later buy 2700 at $1. Total outlay $3000. Ave price $1.11
Your total expenditure is $1000 less and you have the div. from another 700 shares.
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