smart trading pre mrp formal agreement, page-2

"TW, I’ll share my strategy with you, maybe you’ll learn something.

If your average price for example is 10c and you have 250K shares total cost = $25K

(and that takes into account participation in the recent rights issue + free oppies and I’m sure many long termers have topped up over the last six months and in addition written off some more expensive purchases in INL against other gains made over the last financial year like I did etc)

Now with INL at 2.5c you can buy another 500K shares total cost = $12.5K and your average price is now only 5c (Rights Issue price)."



Gorr thanks for that D, so if you buy more shares at a lower price it brings your average price down.

Awsome, never thought of that.You can tell you know what you are talking about.

Ok, sarcasm aside, before any newbies get sucked into this beginners cycle of events.

Know your risk.Stick to it.
Buying more (averaging down) is highly risky, everybody has heard the saying don't put all your eggs in one basket.Good advice.

Worst case scenario, you do as D suggests, Intec fail to get agreements, go bust.You have just thrown more money away.


On occasion the strategy is prudent, but very,very rarely.

If you are only risking 0.5% of your funds on each trade, then it may be worth risking another 0.5 to get your average price down.Not many have accounts big enough to only risk 0.5%.