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IMHO, I think it should more be averaging up, not down, there's a big
difference to me
(Assuming you are an investor or trading on the Bull side or that shorting
does not exist).
A stock going down surely have reason of doing so, unless you have unlimited
capital,
and can absorb the risk (there's a chance) that the company will go bankrupt.
(This I have experienced,and tearfully too!) As you can see, shit does
happens.
Wong, your thinking mode is we are going to have a bull market forever, beyond
our
lifetimes and some corrections every few years (this I also suscribe), but I
don't and
can't wait for my specific a stock to turn around before my productive life
ends. Life
is too short to fool around with the losers.
(Its like you have a group of regular drinking buddies,if they are all losers,
why stick with
them forever, what will happen to you?)
(Not just Omega stock but any stock thatis going downhill and fast!) I need
to preserve my capital for other stocks that is going myway, UP!!
In the big universe of stocks, why buy one that is going downhill? What I
would do is
average up, as the price goes higher and higher the smaller quantity we buy,
(the old
pyramid scheme/method).
And of course, there's another tactic, the buying of bankrupt companies for
turnaround,
but that is not for the average joe and that's another story.
Also, someone had said, do not try to catch falling knives, they just go thru
your open
hands (OUCH!,no kidding), be patient and wait for them to reach the ground,
and stopped shivering on the floor before you start to pick them up. (I
assume, patiently and intelligently).
Also, Omega being bankrupt is a reality/ possibility,dependent on the if
there's a big lawsuit and they lost. Anyway, if you are a true technical
analyst.and practitioner, you should have been out of there a loong time ago,
definite while it was above 5 dollars.
Wong wrote:
> Unless they fudge the figures, or sales really go down the drain, what
> would be the probability of OMGA going bankdrupt?
>
> As for averaging down, please refer to Robert Lichello's "How to make
> $1,000,000 in the stock market automatically!" Averaging down may not be
> the same as "committing financial suicide" provided the company is sound -
> now that may or may not be the case with OMGA.
>
> ------------------------------------------------------------------------
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