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3 comment(s). Last comment by DividendGuy67 1 week ago

Posted by DividendGuy67 > 1 week ago | Report Abuse

Today, RAPID has broken out above the 94 sen horizontal resistance, to close at RM1. Very nice. My paper loss has shrunk tremendously. At one point, the paper loss was huge, nearly 60% paper loss (1.63 average vs 65.5 sen bottom). After a patient 2nd average down to bring down my average cost to 1.06, at 1, the paper loss has shrunk to only 6%!

I didn't use a huge amount of capital for this 2nd average down, but wait patiently for the chart to show a 2nd high probability setup. This 2nd trade is strictly not an averaging down, but a 2nd trade on its own. It happens to be on the same stock. This is typical - a stock, over its wave down, will sometimes gives us more than 1 high probability setup.

The technically correct way to average down is to take each trade on its own merit. Then, it becomes more efficient to lower the Average Cost price, without consuming a lot of capital.

Jnlee

300 posts

Posted by Jnlee > 1 week ago | Report Abuse

dividendguy67,can u explained why u invest in this stock?

Posted by DividendGuy67 > 1 week ago | Report Abuse

Jnlee, I already fully explained in this article and the link to past posts. Read them carefully.

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