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Re: jordanperry180 post# 19334

Friday, 07/21/2017 11:45:01 PM

Friday, July 21, 2017 11:45:01 PM

Post# of 24250
It depends on how far in you are already and how much faith you have that the stock will rebound to a higher pps. For instance I don't recall if you said how many shares you loaded I could swear it was a few million, for the sake of argument let's say 3 mil @ .0005. If you were to take advantage of a dip at say, 2, & someone filled you and you bought, ohhh, 4 mil more shares in a single transaction, you've effectively averaged down to like, the 3.2 - 3.5 range and it still didn't cost you very much, which means it would only take 1 tick for you to be green. This matters more for people who bought in the double nuts 20 range obviously because they can bring their cost from 20 down to like 8.5 so they save themselves in 5 or 6 ticks instead of 17 or 18... I know I don't have to explain it but sometimes seeing it laid out can be an eye opener. Maybe not for you in this case because you're only 2 away from breaking even so you'd have to buy more to make a meaningful reduction in your average.

I guess ultimately what im getting at is averaging down isn't always a bad thing, especially if you're doing it with low trips.

This play can't really go much lower that's why I threw a few more bucks at it when it came down this far. I attribute it mostly to the lack of good news, that's why I'm taking the risk of throwing more in.