I agree completely with lowtrade's remarks. Averaging down is a powerful way to play on the bid action, even if you are taking a loss, in order to recieve the pay-off when you execute a well placed sell.
Before I came to Pennyland trading I spent about six months doing fictitious trading using an excel spreadsheet I made. Basically the action was "if I invested X dollars at this price and then sold X dollars at this price". I tracked the spreadsheet like a real investment. It was through my simulated plays that I learned the most and never lost, or made, a dime. But it taught me the invaluable strategy of playing the down.
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