otcbargains undervalued stock board

[jtomm]

Hey Otc, I daytrade a fair amount and a suggestion I would make is to NEVER average down. It's very different than value microcaps. Many of these runner stocks will start down and never bounce. Just develop that mindset of I will never average down. Put a sticky on your computer screen and repeat it to yourself often.

I speak from experience. I traded sort of the same way you did when I first started, nearly everyone does. I think there's something in human nature that says, "if I buy more down here, it only needs to bounce a little and I'll break even or make money."

But these momentum runner stocks are often very scammy. Plus the key thing to remember is that word momentum. When the downward momentum starts, look out. I've found it's best to set a definite mental stop loss, before you even enter the trade, and follow it. Know where you're getting out before you ever get in. Take many small losses if you have to. You might lose $50 four different times on entries in the same stock before making $400. Nothing wrong with that. It's the averaging down that can wipe out months or years of gains.

Never, ever, ever add to a loser