@Abra85, welcome to AGO!
Here is my two bobs worth as a wolf who's long in the tooth.
You are asking for the impossible. As a few others have already said, it is not allowed on HC to give other people advice, so no one will do it. Nor is it ethical. Not only that, most punters here are too wise to do it in case later they are proved to be proved wrong! However, here are some general thoughts that might help, but please note:
nothing I say is advice, just the sort of things you will read in a book, plus some of my own experience. Please, the bottom line is to do your own research (DYOR) before buying or selling. Clearly your question suggests that you've suddenly discovered that you should have done some before buying, and are belatedly doing it now, but do take heart from the fact that 99% of people learn the hard way on the stock-market by losing money when they first get in.
You have three options:
(1)
Sell for a loss - If you do not have any profit to balance against this loss, this will be dead money until you can later take a profit to offset the loss against and it will need to be a trading loss not a capital gain loss. I have done this in the past when I have (stupidly) held onto stock that have died a slow and ugly death, and years later sold in a tax year when the loss, ironically, became valuable. I'm happy to confess that I still hold a parcel of AGO, bought in February 2014 at $1.05), that is in such spectacular loss (98.6%) that it would be laughable, except for the fact that I made such a terrific profit trading AGO from October through to February that the loss is now actually very useful (if and when I decide to take it).
(2)
Hold - Usually someone continues to hold a losing stock when they have reasonable expectation of it rising again to the point where the loss is acceptable, or the stock is in profit again. So your question becomes 'what is the chance of AGO getting back to 0.032'? If you read back through some of the AGO threads you will find mixed opinion as to the worth of AGO as a company, and thus the inherent value of the shares. There are many people who are strongly supportive of AGO, and only a few who are not (I guess all the others bailed a while back LOL!).
You need to go back and read some 3-6 months of AGO HC posts to come to your own opinion on this. I read HC every day and my educated guess is that there are many people holding from as high as 5 cents who do believe that AGO will get back, not only to 0.032, but to at least the high of February of 0.053. There were options issues some time ago for 7.5 cents, so someone in the company had reason to think AGO would get to at least that. I am holding various parcels at higher values because I believe in AGO's business proposition and while these are of course showing a paper loss, I have been profiting lately by pip trading between 0.012 and 0.017 (e.g. I sold a parcel at open this morning at 0.016 that I bought 10 days ago at 0.0135).
(3)
Average down - You've indicated that you're considering averaging down. Many people take this option in the mistaken belief that they'll get back to profit sooner, and can pull their money out with a big sigh of relief that they made a narrow escape. However, averaging down can be throwing good money after bad. The books all suggest that you should do this
only if there is a likelihood of the stock rising immediately (i.e. you've chosen a technical indicator that suggests the SP is about to, or is already going back up). This then actually becomes an independent trade. If the SP goes back up to the point of your new average, great - you've made a profit. However, if the SP on your second parcel goes up a bit and goes back down, you need to be ready to sell it again quick fast to either make a small profit, or take a stop-loss.
As to buying AGO now at 0.014, there is every possibility that it will stay below 2 cents for some weeks or months yet. You need to ask yourself whether if, for example, you bought another 1.5 M at 0.014, giving you an average of 0.023, you'd be happy to have that extra money tied up in the market for potentially months, and maybe even to lose that too.
The bottom line is that this is your decision, but in saying that, I am reminded of an old 'consultant' joke that went something along the lines of the consultant getting paid for providing advice to a company to 'do nothing'. The company was enraged, yet it was actually the best action for the company to take at that stage.
Best of luck with your future investments in the market.
GW
