1812 Brewing Company Inc (KEGS)

[lowtrade]

redsoxnumba1

Have you ever run the numbers for adding on vs. taking loss, being on the sidelines & re entering lower. In a declining stock?

Example;

PPs .005 shares 100k =$500 invested.

Now what happens if it falls to .004 & you sell and it continues to fall and you re enter. Then the long awaited move up comes.

Do this with adding on at .004 & .003. Then selling at .004 and re entering at .003. Without putting up more cash, then re entering wtih the extra cash you were going to add.

Look at the different portfolio value at the .005 point in the move, after adding on & being on the sidelines to re enter.

Here's what happens if you just hold:
.005 100k = $500 before & after.

sell at .004 x 100,000 = $400 (loss $100)
Re enter .003 > $400/.003 = 133,333 shares
133,333 x .005 = $667

before at .005 $500, after at .005 $667
Profit $167 - $100 loss = $67 more profits, by moving out & re entering lower. With the same amount of money. Try it with adding money.

You run your numbers!!
Because you will own more shares lower and the Gain % lower is larger, going up, you should find more gains by taking a loss, & re entering, then adding on, or holding.

It's all in the numbers! Long & strong is NOT a wise trading style!!! IMO!!!!

I'm on the sidelines now. Except for my .0055 buy yesterday for sale today.

I go on the sidelines. Don't hold long & don't add on. In a declining stock.

Back to basics. Think of trading stock like a business, not a gamble! Aways run the numbers for each trade! Including entry/exits & profit/loss.