fantastic market reaction, page-91

I see only one problem with the scenarios.

The person averaging down is more likely to get the bottom and then if the fundamentals are correct and the stock rises they will get the $146000 final position for a $40000 outlay.

The guy averaging up is unlikely to pick the bottom. So that purchase of 20000 at 0.50c is a very very optimistic and misleading example. I'd say the person averaging up would likely buy in at the $1 mark and then average up from there leaving only $66000 for a final outlay of $30000.