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CSykes

07/20/07 4:50 PM

#19363 RE: MARINO #19361

Well there are ways experienced traders can work themselves out of holes. The bad thing is if you don't know what your doing you'll just make your situation worse.

If you buy a stock and it drops to quickly most traders will cost average. NEVER EVER go all in on a stock. You have to nibble at it. So if your first buy is a bust you can average down. Wait for a bounce... nibble.. if it climbs take 10%. Wait again to confirm bounce, if it continues and it's below your original purchase then nibble again. Average up.. continue to cash out in 10%-20% blocks. Eventualy you will work yourself to break even or to small profit.

Biggest mistake folks make is they buy to much in one block. Experienced traders buy in small $500 blocks. Sure they may spend as much as $10K in one day but they do it tiny bits making $20-$50 a trade. At the end of the day on a sub penny stock with good momo you might make $200-$500 a day.