Catfish, I learned the same lesson about averaging down; but on different stocks. I lost a ton. I still have massive looses in my portfolio that I'm finally begining to wash away. I never average down anymore, unless I have really strong convictions about the situation. I actually average up more often now....and am considering averaging up on DCTH and BIPH soon.
I've made some money last few week by buying put options on some NASDAQ tech. stocks right before they release their earnings reports. The recent trend has shown mid-cap tech. stocks being sold off on earnings, practically regardless of their results. WFII, SEAC, IDCC, and lots of others. One I'm looking at for next week is TIBX reporting earnings Wednesday after the close; but I haven't bought my puts yet.
Do you ever trade options? I haven't heard much discussion about options strategies on these boards; but these are some of the best money making opportunites in the market. I made a triple in IDCC puts in one day last week.
I also like to buy long-term call options on good growth and value stocks.
I only use about 5-10% of my portfolio on options; but sometimes this is the hardest working money I have, if I make the right call.
"Our houses are such unwieldy property that we are often imprisoned rather than housed in them." - Henry David Thoreau, Walden: Economy, 1854
