XPE General Topics, page-366

Sigh....

I already explained how he could have above your post. But here we go. I'll do it with the actual maths. I'll leave out brokerage to keep the maths easy to follow.


He bought 100,000 as an example previously at 1.9c total $1900

Today he sells 50,000 of those at 3.7c for a total return of? $1850

Currently that leaves him with a total holding of 50,000 shares costing $50. Average price? 0.1c

Thats averaged down a lot. Almost a free hold.

NOW

Lets say he still wanted to hold 100K shares so this afternoon he bought back 50,000 shares....

Bought 50,000 shares just 2 pips lower at 3.5c total $1750

This leaves him now with a total holding of 100,00 shares, and he has averaged his cost down as mentioned to 1.8c. Easy.

In fact depending on total holding size you could have averaged down a lot today.

But it is risky. Despite the down rampers going mental on the threads yesterday we all know this ones about to go blue sky, and if your selling down to average down on a dip, there is always a risk you miss it.

But there is a risk in everything and I averaged down just like this many times through the last 6 months so good on him for playing the game and winning, its what we are all trying to do.