Saw this on my feed today. A good reminder of what to consider when a trade goes against you:
Averaging down on a technical trade is usually not going to be a good idea in my experience. A genuine fundamental one, perhaps is worthy - but you would need to be considering a pilot, position sizes etc.
Too many times in my earlier days my trades started as
1st parcel $2000 at 1.5c
2nd parcel $1000 at 1.1c
3rd parcel $500 at 1c
leaving an average of 1.3c and still sitting 30% in the red. At which point, even if the stock rebounds some 25% .. you are still not even back to breaking even on an overweight position.
Its also worth making sure you are well researched a companies history, as much as just the new things its promising.
4CE was SOC which didn't have the most loved history. There was plenty of 4CE love on many social media platforms. Fair to say though that a few would have been in on the placement so had a relatively good entry. Even at today close of 2.5c, those who took up the placement still aren't in the red.
Not to say that 4CE is a good or bad proposition I'm not across its more recent endeavors.
and lastly, the twitter poster @RollyTrader did a great Chat With Traders podcast a few months ago - trading the ASX which is nice and relatable. Thoroughly recommended listening. https://chatwithtraders.com/ep-110-george-rollytrader/
