We actually don't disagree. Strategically adding to bring down one's dollar cost average I get. Turtle did that. I advised Allie to do that. But that's a move you ONLY do when you are significantly down. It's not a move that you repeat with each drop. Turtle understood the stock could head lower after he bought. He tried to lower his cost at the best price he could get. Folks on this iHub continue to add with each fall. They are so in over their eyeballs. It's scary how much they invested. The way you described it is the way it should be used. Dollar cost averaging is not a move to be buy trigger-happy with in a biotech stock that has no reported earnings and a high quarterly burn rate. Ever. It's not one that should be done as the stock falls 10-20% while the company remains silent. It's used too often and improperly on this company's stock. It's shocking.
This stock is considered a falling knife pick. Where the knife will ultimately stop dropping, none of us knows for sure. Anyone who claims this isn't a risky falling knife opportunity will be lying to themselves. The bottom could fall out. The stock could head to zero. I hope that's not the case, but it could happen. It's a risky investment, particularly as the company is not talking. Knowing this, I created what I consider a starter position. I have a certain amount that I'm willing to invest in the science and I risked a portion of it. It is impossible to time an entry. I wanted in, as I believe in the promise of the technology. But I also like safety. My preference would be to add to my investment when the market recognizes the scientific value. But there is a chance it may not for a while. And so, I purposely did not go all in. It's too dangerous. Too many unknowns. I needed funds to dollar cost average, IF it comes to that. I understand the dynamics and that the floor below is not stable. In fact, I've known it's been shaky. I continue to warn others that the stock can head lower, and oversold levels are meaningless on this stock. I personally could have seriously bought my starter position months before "good" news could hit. I may end up being down over 90% at some point. Again, no one can time things perfectly. Being good at technicals is useless in a falling knife situation, unless you simply are trying to trade the stock, which I have no interest. If the stock continues to fall and I find myself down over 90% too, I would consider adding a small amount to lower my average. Again I see that as a possibility. It wouldn't take much to lower my average if that were to happen (me being 90% down on this stock, if that were to happen). I also am in no risk of losing my shirt. Again I have not gone all in. I can be picky where I add as I already have a position, and by having an established position, I'm not in the least bit desperate to add shares. That's what a starter should be on a falling knife stock. It should be thoughtful and deliberate. I see down is more likely to be the direction for the time being, until they report something "positive". But at this stock price, I can recover from a 40% drop. Adding here does not represent sale. At all. Instead it represents a break-even range, where a the stock could head in a few days (or one) on positive news. I will ONLY consider adding if my holding falls to a point that adding seems like the only way I can recover part of my holdings. But again that's not my intention. I'd rather wait for positive news to make sure my continued investment in this company is safe. Then I can safely use the technicals to purchase more shares. That's how I have always made money in the market. Get in. Then be picky where and WHEN you add. The WHEN is just as important as the where.
I'm honestly scared for folks who bought large positions under $1, and continue to add more and more with each financing, with each drop. The position they hold is so large now, that if this falls to $.10, they will be down hundreds of thousands of dollars. I'm mostly speaking to them. You own enough shares. Respect falling knife risks. You'll have plenty of time to add if things turn positive. Save your dry powder to add there.
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