you cannot spend your life looking for lows, my belief is that FMG is worth more than $2, while you may disagree with averaging down , I am not an investor and use a particular strategy , which generally works well, as for naked short selling it may or may not exist the G20 countries have in the main installed separate exchanges to monitor markets and hopefully reduce the risk of illegal practices, and yes you can be prosecuted just ask those in jail.
capital allocation is important in trading, of course a stock can always go lower,and you can run out of capital.
spend more time looking at live data on the bid and ask, not charts trying to predict outcomes or reliance
on probability for particular patterning if you do watch the data on the bid and ask you will see a pattern
which varies dependant on the system used to manage the stock.
in any case these are my personal opinions which i apply in real time to capture profit and left field events do not fit into the equation
today will be interesting, the last time i traded a stock similar to FMG with more volatility using $2500
and T3 settlements i turned it into $33k in 6 months using my theory and riding volatility on the basis of accumulation or capita gain endlessly-- thats afternoon trading, after my real job and during the lead up to the GFC in a company spiralling down that was ultimately delisted-- it was a big one
FMG Price at posting:
$1.79 Sentiment: Buy Disclosure: Held
(20min delay)