You're right. 1000%+ gains in July. That would've been some solid gains. I also could've played a bounce off of the mid teens area in September that reached .005. That's 200% - 300% easily right there. Then in November I could've played another bounce from the low teens that reached the .004 area. That's another 200% - 300% easy gains.
The difference between you and I is you look at a chart and see the negatives. By doing this you are passing up the opportunities that take place in the meantime. And that's fine. If that's how you like to do things, by all means do them that way. If it works for you great.
In stocks there are some certain things we know will probably be the case.
1. The price will always come back to it's moving averages. That is why it is a moving average. When it goes above it'll eventually go back down to it's moving averages. When it goes below it will eventually come back up to its moving averages.
2. Support - It's reasonably safe to assume that stocks are generally going to hold extreme supports. Looking back to July and late May, I can see the extreme support is .001. So this price is mentally flagged in my mind as a fairly safe entry point for reloading for a run that will eventually come. These are stocks. It's generally not a matter of if, but when they are going to turn around.
Notice in these two things I made no mention of anything the company is doing. I don't pay attention to those things. The chart simplifies everything for me. I know it has popped in the past and I know that it's very likely that it will pop again.
Based on this I know that any entry around .001 at the moment is fairly safe due to past supports. And I know that eventually it'll move back to it's moving averages. Right now it is below the fifty day and the 200 day moving averages. Regardless of what the company does if I follow these two rules it's a high likelyhood that I can make a good trade out of it.
That combined with the fact that the reward over the last year is quite hefty. If I put a 100 in on the first run in July I made a 1000 dollars and that is a conservative percentage above. I take the same 1000 and then put it in in the high teens and being conservative ill go with 200%. Now my 100 is 2000 dollars. I put that back in for the third run and do another 200%. Were talking gains of 4000 dollars. So I put in a 100 dollars to get 4000 dollars. Speaking in poker terms my pot odds here were 40 to 1. That means that if I can make this happen succesfully 1 out of 40 times I am making money. And that's assuming the original 100 dollars goes to 0 every time which we know it wouldn't.
Try looking at it with an opportunistic attitude instead of a negative attitude and you will see the vast amount of opportunities that are right in front of you.
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