Pathway to $5, page-54

Cheers mate, I am thinking that the worst case scenario is usually plausible with high consequences but of low probability.

We have no idea if this falls past $3.60 or $2.50. We have no idea if and when the punters start the next rally. The prudent thing would be to make sure that you are aware of your own appetite for risk, your investing plan and the fundamentals. Something like that.

I have only been investing since March 2020- barely two years- so certainly not a hard bitten veteran of the market.

My basic plan is to buy near support and I usually intend holding but then I when I suspect resistance I sell- and repeat. I came to realise, as I suppose everyone does after a while, that you need to have a plan for when the SP falls below support after buying in.

My basic plan for holding a stock that falls below support- is that I do not over commit to any one stock or sector in the first place- so diversify- by not over committing with the first buy in I then feel more comfortable with averaging down- learning not to average down too soon- important to keep researching the stock- you would not want to be averaging down on a stock that is a falling knife or not worthy of an investment in the first place.

So far, this strategy has been working for me- and have taken profits after a number of stocks have plummeted under support. But, I realise that one day, even with research, I could be caught with a falling knife that goes belly up- so I will need to be disciplined and not invest too much on any one stock.

You cannot avoid risk- you can only manage it.

So, sure mate, perhaps it might go to $2.50, albeit low probability, but make sure that you have a plan to manage that risk- based on your circumstances and risk appetite.

IMHO DYOR