that's a good synopsis of exactly what I try to do. and I might guess there have been some studies done.
The one thing you didn't really describe is that its a good strategy for those who got theyre core at the very bottom at 15-20 cents (which I did) ( its now 60-80 cents by the split)
But for those investors new in finding AVXL,maybe the lowest price they could begin a position,lets say it was at 3.30,not too bad, or the bottom at 2.43/2.76 maybe ok. what about those who bought their first position at 3.88 or 4.dollars...they are now underwater. I did that tedious and stressfull trading process of riding the giant downwave from 14.84 to 3.16 and 8 to 3.30 and 8.30 to 2.43. Its hellish to do. but it helps manage the losses,and reposition at ok costs. Ive been trying to do that in the latest collapse,bought a lot at 4.05,looking to sell it around 4.85 at the 200ma...but watching it fail at 4.48 and then get bled right back down again, I sold the 4.05 at break even, and now haven't bought this 3.90. I might be wrong not to buy it, or right if it falls more to the many lower targets below 3.90. Its a lot of work. managing the portfolio. watching the price action, and not afraid to sell a lot at 14.50 ,traders who did that made a ton of profit there....and probably expected to start rebuying around 10 or 8 dollars, then realized it was a catastrophic collapse happening and they waited till around 6 dollars ,watching it with horror as it continued to 3.16. had the coolness to start buying there....I remember watching the 4.30 area as a very key price point....as it remains now. and its been a central zone as the recent 200ma ran thru it. it was the breakthrough area that generated the latest rally to 6.64, and remains the same breakout area now. and because price is being kept below it, the bias look downward still,in my view. and I could become wrong.if we see a surge tomorrow like this chart diagrams.
my trade I'm waiting for was to buy here and sell at 5 dollar area,to offset the small losses I'd have when I sell the 5.80 shares I bought in the last cycle. I'm now having to wait to buy more now, in the final bottom area, half as a core and half trading, so that I can sell a whole bunch at the 5.30 area to break even on these trading shares. The mess I got myself into was that I bought (against my better caution) trading shares at 5.50 and 5.80, thinking we'd get that rally, and now I'm stuck with 'expensive' trading shares.I hold my core shares for the great rainbowsuccess. but the trading shares I sell some at break even when it proved a wrong trade, if I can get back to even I sell them. would you buy trading shares right now for 5.80 ??? is that a good price to pay right now? maybe 4 dollars is a good price to pay now, but if the bleeding game continues, better bargains might be found at 3.30-3.00-2.80 area. Its always a guessing game isn't it.
AVXL in a coiled triangle terminal now,centered around 4 dollars (last time I looked)
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