Fact discussions, page-349

I don't understand why anybody would buy a falling stock let alone average down and so compound losses further , the traditional road to ruin.
Stock has fallen 93% off September hi last year. Does that make it a bargain now? Just because it is falling? Are you shopping in Coles with your mother, it's on sale let's buy it (aka "bottom picking").
The smartest amongst us cannot pick a bottom or a top for that matter.

This mentality from childhood seems to have carried over into stock purchase.
Counter trend trading is typically not useful.
Surely if one wants to continue with this stock, you would wait for a decisive sign of a clear reversal. I for one do not see it, but that's just me. But maybe today's 15% increase was such a sign who knows.
On its face, a $0.05 rise and what was once a $5 stock doesn't seem like a very big deal.
Personally I suffered enough with similar stock, a competitor to this one...RFN, a challenger to this one, fallen from $2 late last year to 7 cents today.... I allowed myself to be suckered it in by the hype.
Why do people keep behaving this way?
Rule number 1: cut losses .
Rule number 1 (again): never average down thinking you're getting a bargain by lowering your average entry price. Two sides of the same coin.
The main reason why people lose money in markets is they think they know what's going to happen next.
Well you don't, you can't, and you don't even need to. But that would take days to explain.
GLTAH
PS... is this was a shortable stock and it probably is not , being speculative, people would have made a fortune.