Lowering a losing average is simply incurring a larger net loss. Check it out on your account summary. why would you want to do that? The averaging down strategy is so flawed IMO. Simply need to admit that you made a bad entry and you have the choice to take the loss and move on or sit it out. By increasing the size of that bad entry doesn't make it go away. Don't worry Scott we've all done it, man did I learn the hard way but will never do it again. You should see my bad entries especially this week! But compounding the problem by building a larger problem will inevitably cause a gigantic problem which I'm sure many can attest to here.
For example, wouldn't $20k at 35cents be better left there rather than adding another $20k at 20cents? (works out to be about a .255 average) Or doubling again adding $40k at 10cents (approx .145 average and still 3 times the current SP!)
Wouldn't it be more prudent to put that capital into something that is going up?
It's only a stock guys, a simple three letter code in which the goal is to profit from. It's not meant to be a romance.
Just my thoughts on a cold Saturday morning.
Cheers
IMU Price at posting:
4.8¢ Sentiment: None Disclosure: Held
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