SwingTrade Member Forum

[SAMNOTSAMUEL]

You can lose more than 100% on a position.

If a full position is established on a company like VBDG at say 40 cents and there is averaging down, one could lose a lot more than the initial investment even though the initial investment could have been substantial.

Example $100K at 40 cents. $50K more at 20 cents.
$50K again at 10 cents, all in an effort to have $100K in.

Also on the plus side a stock if you bought at right time might quadruple but if you sell on the way up, you might only double.

Variations on the above themes are done all the time in the real world.

sam