Investing #101 for dummies!!
Example:
Did no DD, saw PTQ going up!! Bought 1,000 shares @$1.10!
Whoops!! It went to $0.35!! Actually did some DD and saw the company was strong and growing. Bought 4,000 shares @$0.35!!
Now I have 5,000 shares and invested $2,500.00.
Did a lot more DD...company now profitable for two years and growing.
Bought another 2,000 shares @$0.35!!!
Now I have 7,000 shares with little downside risk and an investment of $3,200.00 or an average cost of $0.46!!!!
I may even be green this week!!!!
When the stock returns to $1.10 as money comes back into GDXJ I have $7,700.00 or a nice profit of about $4,500.00 less commissions etc.
OR, I CAN SIT LIKE A FOOL AND CRY AND HOLD MY LITTLE 1,000 SHARES @$1.10 AND WHEN THE STOCK RETURNS TO ITS ORIGINAL VALUE SELL AND MAKE NOTHING!!!! WHOOP-DE-DOOO!!!
Maybe along the way I sold off a little when the stock surged irrationally with the HT or whatever and all my remaining shares are actually cost free like some of Eric's.
That is the lesson for today!!!!! If fundamentals are strong and growing you average down!!! If not you sell, take home the tax loss, and move on down the road!!! LOL!!!!! OR YOU CAN JUST ASSUME THE FETAL POSITION, SUCK YOUR THUMB, AND CRY, CRY, CRY, AND MOAN!!! ONLY THE FORMER ACTUALLY MAKES MONEY!!!
THAT IS WHY IT IS CALLED INVESTING AND IT IS ONLY A GAME FOR GROWN-UPS!!!ADD A COUPLE OF ZEROS TO THE NUMBERS AND IT LOOKS MUCH NICER AND WORTH WHILE.
