average price discussion, page-11

May I make some comments on your desire to average down on Z1P.

I assume your logic is that you can arrive at a lower average cost per share, in which case the major flaw is that you have no way of knowing whether the average cost will go in your favour or not, in fact you could be further adding to your losses if the price continues to drop.

You are simply basing your approach purely on hope.

This is not a personal dig at you but in the main people think it is a clever idea to add to a losing trade, whereas have you ever considered it as not being able to accept that the trade was wrong.

If I may quote from a famous trader William.J.O'Neill (who achieved a return of over 5000% over a 25 year period)
"Carefully average up, not down, and cut every single loss when it is 7% or 8% below your purchase price with absolutely no exception."

All the best

V