New World Gold Corporation (NWGC)

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Here's my two cents. This stock has been dropping for one main reason: panic. People see the stock selling off and they start to worry about their position. I can't blame them. No reason to hold onto a losing position when there is no bottom in site. Every time the price drops further, more people are tempted to sell. It's a self-fulfilling prophecy, but a reality nonetheless. Think about it. If you owned shares today, how many times were you tempted to sell in order to avoid further losses?

Even if you believe in the company, you are forced to sell some shares to maintain a solid trading strategy and avoid massive losses.

That doesn't mean this is a bad company. Sure, there are some negatives, but all companies have negatives, even Fortune 500 companies. I'm not saying this is an amazing company because I don't know enough about them, but I do know that it is undervalued based on the financials I have seen. I didn't get in this stock because of any pumper and I'm not trading based on what anyone else is doing.

I think there are still a lot of people who want shares when a bottom has clearly formed. I know I do. I want millions more shares but I'm not going to be a martyr until I know what my risk is. I made the mistake of thinking technical support levels would hold and I loaded shares along the way. Right now, this stock is breaking through support levels too easily. There was barely any buying pressure on the ask today.

That being said, I think that some buying power will go a long way. Similar to how panic triggers more panic, confidence can trigger more confidence. If a few million shares get taken out on the ask, this has room to run. I'm not telling anyone to just hit the ask because that would be foolish, but I do think a time will come when this can bounce back. Traders just need a reason to be bullish and we haven't been given a reason in the past couple of days.