American Green Inc (ERBB)

[jugs]

One of the problems with averaging down is that it feeds an ego. But often a stock drops in value because people fail to see value. ERBB looks like a better value to me today because I can buy more cheaply while recent news makes it appear more valuable. I don't care about averaging down, I just want profitable trades and that's about selling---not buying or buying cheaper.

Brokers like to push averaging as it encourages more trades and that spells commissions. It also puts investors on a path towards accumulation. It's not always a good idea to accumulate.

I especially like your line about the financial planner:

i know your financial planners tells you this is the way to go and if you liked it at 100 you'll love it at 80

Yeah, right! Let's watch the bottom drop out and add to the speed it drops by risking more money.

One item I disagree with:

Stop losses won't work when trading is suspended. Also when the bottom falls out due to an unforeseen event--- your shares set up on a stop loss will be victims in free fall. Better to baby each position and have parameters in place so you can micromanage safely.

My opinions in all this, of course.