Very good question.. Struct and I have talked a lot over the last few weeks about that very thing.. Of course everyone has their own theory, style, risk factor etc. etc. etc... For me my limit on any purchase this year ( at least down here in OTC LAND the big board stocks are a different story )is no more than $1000.00 into each and any position I take this year, of course the size of your bank roll and account makes a difference to.. Obviously I failed to follow my rule with AZFL ( DISCIPLINE IS TOUGH ).. My thought would be take an initial $500.00 position if it runs great if it goes down wait for the bottom and then average down with the remaining $500.00..I actually had to use this method on IJJP a few weeks ago, I waited for weeks to make what I thought was a good buy, boy how I was wrong, the bottom fell out and I had to wait it out for the bottom then hit it again with my reserve money and average down, now I am in a much better position to profit and get out when it bounces which I think is very soon... Am I making sense ? I am small potatoes down here in the markets but I am working hard to change that.. I have always loved the stock market, I have had my E Trade account for almost 10yrs but really only have been actively trading for the last 2 yrs... I work hard and am a learn by doing kind of guy...well I lost a substantial amount of money learning now its time to make money.. I just saw a video kind of about this topic I will post it after this.. for when you have time
