Dude I have been averaging down on gnus from 11.50 to 3.56 ...... as soon as I break even I’m out I got the money to do so I just don’t know if I really wanna keep putting more in
@@logannaslund1057 I would never average down on a small cap stock. Way too mix of a chance for the stock to either go to 0 or fall extremely far down. I stick to mid caps and large caps that WILL come back and are far less likely to go to 0. Secondly I also ensure that several ratings agencies have the stock at a buy or strong buy.
I enjoy many of your videos but I disagree with you about averaging down. If you believe in a stock and you are long you need to buy the dips! Buying shares at a discount is the best way to grow winners quickly. Red days are great days as long as the stock is not down due to anything the company did
Had just started trading, bought GNUS at 10.05, averaged down when it came to 5.31, sold at 7.60 for profits. 50% retracement is a big thing when a stock gets an overreaction sell-off
I Absolutely disagree. You don't just add to a losing position blindly. You still have to do your analysis. RSI levels are approaching oversold, bearish volume decreasing as we're approaching a support level etc. these are some metrics that you can take into consideration when you're trying to figure when to start averaging down. Also why would you add to a wining trade if the stock that your trading is shit. that doesn't make any sense. You want to take your profits and get out as fast as possible.
I'm glad you added that you are not talking about a big stock like Apple. I average down on bluechips all the time so I can do a dividend capture and not wait so long for the price drop to recover, but that's a totally different beast. I wouldn't be afraid to hold those stocks for a year if something ever went wrong.
So if you bought an IPO at $60 in 2018 and the stock is now at $1.00, with analysts projections of $3.50, I think it makes sense to buy enough shares to bring your cost basis down to $2.00. It will never go back to $60.
Corrections happen. Stocks going down has nothing to do with the stock being a loser. If you stay away from averaging down, the only one’s who’s a loser, is going to be yourself.
as long as its around a 2k position or less uve waitied till it bottom out, waited patiently for an uptrend and doubled my postion in the uptrend to break even. its worked consitantly as long as in the foreseeable future we have news.
I use position building or averaging down on stocks gapping up above VWAP. I scalp for small profits by building a position as the stock pulls back or flushes down. I cut it when the stock falls below VWAP. This has been a good strategy for me b/c most stocks that pull back when they are above VWAP are still strong stocks and usually bounce back or continue the trend up.
So many day traders .and not many real investors. The average down is a investors strategy not a day traders. Let's use KO as an example. Ol friend Warren Buffett always says to buy a stock and hope the price drops so he can buy more.. this is just your opinion.. have I added to my position and win yes. MRO I buy in around 7 to 8 because I cant time the market so as the price went down this last couple months. I bought more lower my cost and now I'm 11% plus in the positive. I am doing this with T,KO,MRO and STAG. Although stag a bit risky in my book but I would never average down a penny stock. Only a blue chip company. And sometimes you have to cut losses. Like GE . And I I sold them. The was my 2nd investment and I lost big time on GE and F. I thought was 2 great names. I been buying since nov.2017. Overall I'm in the negative a few bucks now was 100 bucks but my dividends has paid most of that lose.. I am fairing pretty good my goal is to seek income for my next generations to come
Really tough for me to admit that I'm an inexperienced idiot who bought into the hype and bought GME way too high. 1 @ 186 and 2 @ 277. I could've left when it was still safe but I knew no better. I followed the WSB "hold herd." Should I cut my losses and just sell? I need advice on how to move forward. I feel really down and very regretful. Big lessons learned.
@@roomforthefiiixins2491 so let’s get this straight. You happily listened to WSB posts when they pushed GME because you wanted to jump on the bandwagon and make some £€$, understandable. But you at the same time you ignored all the other WSB posts which said “only invest what you can afford to lose” and “do your own DD/research before investing”? And now you’re complaining that you’ve bought high and the price has dropped? My advice? Take your loss, close your account and stay away from the stock market. The bet on GME was exactly that, A BET! One which still hasn’t fully played out yet. This has been made clear over and over again. Hell, the subreddit is literally called “Wall Street BETS”. I’m sorry if you’ve lost money, but when trading you need to be able to leave your emotions at the door. If you shit yourself (to the extent that you post on RUclips begging for advice) every time your position drops into the red then you’ve either got a very poor knowledge of how the markets work and/or you’ve foolishly bet more than you can afford to lose. Get out and stay out!!!
@@robertelkins5928 To be completely honest, your points are all completely valid and I agree with you. I had no business buying in in the first place. I was swept by the herd mentality and haphazardly began playing in the market which is a very treacherous place to be. It took no time at all for me to realize that every step I was taking merely took me several steps back. I am grateful to say that the money I have invested if entirely lost would not jeopardize my standard of living or day to day. The sole purpose of me soliciting advice is to clean up the mess that I am wholly responsible for and minimize my losses before bowing out; at least until I actually learn a thing or two. In this very short amount of time, I can say that I've already learned a lot.
I averaged down in steps, so bought at a lower value sold, when I sold just taking out what I put in to average down then re-bought once it when lower again and then kept repeating this so I wasn’t losing much more if it was a bust. Took a while but got in the green eventually have only tried it twice not with big amounts
I totally get it if you are a trader but what about for the investor? Specially now with a down market. I mostly DCA with a few deviation plays. On the investor side of the fence, in your opinion, would averaging down be a good strategy?
Normally I don`t do day trading but invest in long term. I have average down on these stocks ; otter tail, republic services, waste management, tesla, pepsi, wells fargo, and telus. did I do anything wrong? I did my fundamental studies on these stocks. You can still buy amazon, alpha, Berkshire A stocks by buying fractional shares. Great videos. You can learn a lot from you.Thanks. Very much appreciated.
RGF... averaged down... and down.... and when it bounced to average price.... instead of jumping out... went right down with the stock. Bagholding... hard lesson learned.
Agree. Averaging down only works on good companies and/or good rule based exchange traded funds. If your position is failing, count your loss. Do not add to your loss.
I'll admit I'm new and fomo got the best of me. I bought 500 positions in a stock at 1.51/share. Never came back up. I waited and the stock dropped to .48 and i bought 1500. Finally was able to sell in the green at .663 with new avg cost at .63.
I make a living from averaging down and trading both with the trend and counter-trend. The only reason people have trouble and become bagholders is because they buy too aggressively and end up top-heavy. Calling it a "loser mentality" and claiming it doesn't work is complete bs lol.
I’ve always added to losers because I know some of the winners also come down…..What goes up must come down…Buy low strategy I thought and then sell high.
Sometimes it's funny but I feel very blessed when all my holdings are negative in the red and my only one company that has ten or twenty thousand shares actually moves a few pennies. It trumps all! It's the only ray of light on those bloody daze
Yes, people dont want to admit they are wrong, so true. Im from Malaysia and a lot of investor still keep averaging down on gloves shares and refused to admit that are momentum shares. I cant wait to see the end results. From comments below, they didnt reveal the stocks they averaging down is fundamental or momentum. This is crucial. As momentum stock, once the momentum is gone, averaging down will not do anything.
What about buying 1/3 or 1/2 of the total shares you were gonna buy, and then adding to your position later on, whether you buy the vwap hold and then buy more on the hod break or you buy at the breakout but it doesnt work but its set a higher low so you add more. If it reverses and you stop out, you lose as much as you would if you bought all the shares at once. but if it does go your way, youre average would be lower than if you bought it all at once.
My nat gas stock went down badly because of climate change and NG-F has almost collapsed...so I have managed so far to eliminate my losses by $2,000 by averaging down...only $2,000 more to go LOL...but this is a really good energy stock. So will do this with one more trade and then I will own it at its current value.
I am considering averaging down on a stock that I bought much too high. It has dropped and has stayed low but fairly steady at this lower price point. Since I bought during a pop and the stock has dropped approx 50%, I want to double my shares and try to cut my losses. Does this sound like a good idea?
if you are already lost 50% is alot do not put more money, just ride it until reaches a price you are comfortable losing, the stock need alot to come back from 50% down, i see 20% $tat but 50% , wish you luck , the biggest rule i have learn and really really hard to put in practice "Cut your losses quickly"
Hey curious about what you think about averaging down to cut loses on this AMC meme stock? Its super volatile and has momentum and folks are holding, volume is high... Say you bought in at $14 and it crashed down to $8, you hold waiting for the bounceback. But it keeps dipping, $6, then up to $7 and swings around from $7-$9 daily. It might never reach $14 again...is averaging down a way out of the hole? (buying at dips and selling slightly up, cashing in on the profits to help bring your red back to green). Or are you throwing good money after bad? I think a lot of folks can benefit from you answering this question. Thanks!
You are 100% correct never invest in stock that spikes and never come back to the price. When they spike they can hit $90 but then end of day they bid for $50 and it will never reach $90 and trying to get back your money will cost you exponentially x5 per share you purchased so if you paid $120 and bought 3 shares coz it was spiking and you wanted a piece of it well to average out down to $30 you bees to spend $450 coz it's lost a 50% momentum and your saying to yourself just keep holding out it will come back well it won't. So if your going after spiking shares do not go above $20
So averaging down on high value stocks are better because they can spike fail and come back. Compared to small dollar stocks that are likely not come back, averaging down is not coming back
I’m new to trading. But I’ve heard people talk about averaging down. And I’m thinking. Why throw money at a losing stock. I’ve heard this about inpx. Anyone who is anyone knows this is probably the worst stock to hold. And yet people are averaging down. Like do your dd.
Added to MARA about a 3 weeks ago hoping it would come back and ended up becoming a bagholder. Finally decided to take the loss...LESSON LEARNED...wish I'd seen this video before that.
That's not true, Mara is great company. It can go back to 40/50 range if Bitcoin goes up in value.(I average down MARA twice already, plan to average down even it will drop to 5 dollars per share)
Okay but what about if you are about to cut your loss of let’s say $400.. and the stock is consolidating.. but you are down unrealized. if you average down enough you can cut your unrealized down to half and sell for let’s say, a $200 loss. What are your thoughts?
well I found this on an investment search.. I'm no trader. in sure this is good advice... but I have used this average down strategy for big name MRO,KO,T and other top brand and here to say for a long term goal. this works.... if mathematics and its facts. yes I have lose on F and GE and end up with a lose. but I hit a sale bench mark with lose and took it. not I have sold and re bought F at the low end and have gain some of my losses. as a long term investor.. no trader or day trader penny stocks nothing like that. buy and hold. am a dividend seeker.. end goal long term paycheck to my son and his sons son and so forth.
I've hit bit averaging down multiple times. As early as a few hours ago with SNDL and NAKD. It is a very profitable if you know when too much is TOO much and you know how to pick the right ticket.
Just some stupid troll suggested this method, and already knowing it's such a stupid idea, thanks for confirming it. It's like buying a broken car and then buying another car totally burned down and now you have 2 cars with lower unit cost :)
I believe is a bad strategy now that I’m new and got hit hard. However, it’s not an apple or amazon stock but I wouldn’t call it a penny stock either. I bought CCL and NCLH cheap and sold from 9-18ish recently. Then trying to get a friend into this I told him the stock would likely go down that same day. I sold all and rebought at 16 to show them how even though long run it’ll go higher but for now I’ll take that small profit and rebuy at 16.. well over the last couple of days it sank to 13-14. And I’m -2000 , this is why in THIS case I don’t believe avg down to be a bad thing. Because if you look how steady the cruise lines have been when running.. “I KNOW” it’ll rise again. So is this stock and overall typical expectation an exception to the rule? I’ve learn a lot this weekend and forced myself to learn more and I feel like I should have got out around 15 and then rebuy all cheaper and have less loss, but now the stock is down and I didn’t get out so in this case I held the bag like a dumbass I’ve learned but since I’m low I feel like adding more at a low price on a solid stock isn’t a bad thing. Not a penny stock though..
i don't understand how not to use downing average price, is mathematic. i've been using with stocks that i know are good companies and underpriced. i bought alibaba for 2 months and now is 14% green, and i did the same for about 10 other stocks. i don't know how to buy a share that never drop, so i buy till it stop dropping, and i'll have more shares rising
Yes : and I lost every time lol When you average down not only are you taking a bigger chance. Your risking a bigger loss. I average down all the time in stocks I’m long term invested but there not penny stocks
Well i did that couple of times ..sorry but i didn't loose ..it went back up..i guess i was lucky that time..i should keep in mind they volatile stocks and can go up or down anytime..my thing is how do you know if it's gonna go up or down based on the need when the market open??
also what you think when you keep a few dozens shares of a stock in certain price after selling majority to get profits just in case surges in the next couple weeks , i really really appreciate.
Hear me out, you bought $100 of a share at $10 so you have 10 shares. If you buy then $100 dollars of shares at $8 you add 12.5 shares. So you have now 22.5 shares at averaged at what? Is it 9 dollars or is it a weighted average so it would be below 9 dollars? Thanks
I'm one of those hard headed traders lol. I've had about 7 losers and 5 of them broke even after I averaged down. I think it really all depends on the individual trader's mental capacity in the market and how early they get in on price wise. Many different factors in every single person. Can't really spot out a certain style is "ineffective" just cuz you've had multiple bad scenarios with it. Someone else in the world got totally lucky and had the opposite luck lol. But I get it bro. KEEP THAT WINNER'S MENTALITY 💯💯💯 I understand THE OVERALL CONTEXT
Wow so many ppl mad lol not averaging down has def saved in trading garbage stocks where ppl recommend averting down better off cutting at 2 or 3 percent and moving on great video!
If a stock is trending down, you have to find a catalyst. To blindly average down is stupid. Averaging down on pull backs on a stock that's strong or trending up is wise.
Tenho trabalhado com uma combinação de estratégias, a saber, pyramiding, average down fazendo hedge quando necessário e usando stop gain sem stop loss. Meu stop loss é travar as perdas com o hedge, e sigo iniciando um novo ciclo com a nova tendência do mercado focando em day trade e swing trade no Mini Dólar da B3.
Average down and up trading is a great strategy. I use IT for many years. I ALSO use 4 indicators using this strategy. My losses in this strategy are bigger than my winners, but the amount of winners are far far more then the losers. Overal its profitable.
I agree, as long as the stock has high volume and at least over certain dollar range.....such as blue chip stocks then it's a great strategy. Tho I agree low liquidity stocks could be a recipe for disaster.
it works on blue chips stocks if your on dividend investing it will not work on short term trading the point is in investing you go to long term, buy on a dip to add on your stock for more dividends long term you win they call it cost averaging.
Great video. How do you know your stock is going to keep going long enough to average up? I guess it depends on when you average up in the stocks upward trend?
I recently averaged down on a bio stock, they had 3 promos the last 2 months, then they put on yahoo finance they are having a share holders meeting tomorrow 2-10-2020, I held unto them just to see how it plays out. They paid the promoters $30.000 each time, i think it was just to keep the chart sideways other than crashing, do you think i am thinking wrong on that, i've been trading for almost a year, trying to figure it out, thanks for the videos!!!
I don't need to be anonymous, I accept my ignorance at the time and deserved to lose that money for my experience and education accounts. I admittedly am a bagholder of a few stocks. Read investing books and used it on day trade stocks Tip: DON'T DO THAT! I know better now but I didn't then, so since I'm down 90% in those via stock splits, my stock holdings went down and my average skyrocketed, I wasn't paying attention, and knew nothing of stop losses. Since I'm so far down, I'm waiting for bottoming out on the daily, then at the lowest point I can (If I believe the trend is about to change) I will average down to attempt a Houdini and escape "break-even" and redeem myself of my ignorance trading before educating myself first.
My biggest problem isn't averaging down with options but exiting trades when they go the wrong way. I fail to set my stop loss. So damn frustrating but i love trading and i have to find a way to control that emotion
Have you ever added to a loser? What do you think about this old-school approach?
I haven’t personally, it sounds like a great idea but it also sounds like something you’d only do if you’re pretty confident in the pattern.
I now feel way better about averaging up though
Dude I have been averaging down on gnus from 11.50 to 3.56 ...... as soon as I break even I’m out I got the money to do so I just don’t know if I really wanna keep putting more in
@@logannaslund1057 a week later..$1.73
@@logannaslund1057 I would never average down on a small cap stock. Way too mix of a chance for the stock to either go to 0 or fall extremely far down. I stick to mid caps and large caps that WILL come back and are far less likely to go to 0. Secondly I also ensure that several ratings agencies have the stock at a buy or strong buy.
I enjoy many of your videos but I disagree with you about averaging down.
If you believe in a stock and you are long you need to buy the dips!
Buying shares at a discount is the best way to grow winners quickly. Red days are great days as long as the stock is not down due to anything the company did
Listen to his video again and he says it clearly to what your disagreeing with.
Averaging down has worked for me 90% of the time every time!
Awesome!!
I added to a loser today and it bounced. Made 10% in stead of breaking even. I think this strategy can work if you're buying really low.
buy the dips
It probably goes the same the opposite direction - adding to a winner that suddenly turns round crashing down!
Hi yes it is true
Thank you
True if it's a 1% gain, but if you have a 5% gain n average down to 3% to increase dollar gain n reducing % gain it's worth it. I have done it.
Then u put your stop loss at 2% gain if the stock starts to go down for some reason.
Had just started trading, bought GNUS at 10.05, averaged down when it came to 5.31, sold at 7.60 for profits. 50% retracement is a big thing when a stock gets an overreaction sell-off
I Absolutely disagree. You don't just add to a losing position blindly. You still have to do your analysis. RSI levels are approaching oversold, bearish volume decreasing as we're approaching a support level etc. these are some metrics that you can take into consideration when you're trying to figure when to start averaging down.
Also why would you add to a wining trade if the stock that your trading is shit. that doesn't make any sense. You want to take your profits and get out as fast as possible.
Yeah completely agree. You average down strategically. Don’t forget level 2 bid stacking. Important.
Why not find a better stock
Inmean best
I'm glad you added that you are not talking about a big stock like Apple. I average down on bluechips all the time so I can do a dividend capture and not wait so long for the price drop to recover, but that's a totally different beast. I wouldn't be afraid to hold those stocks for a year if something ever went wrong.
So if you bought an IPO at $60 in 2018 and the stock is now at $1.00, with analysts projections of $3.50, I think it makes sense to buy enough shares to bring your cost basis down to $2.00. It will never go back to $60.
Exactly!
I did it with WWR, I averaged down my original position by almost 30x and made 80% back in 2 months. I don't mind averaging down.
Corrections happen. Stocks going down has nothing to do with the stock being a loser.
If you stay away from averaging down, the only one’s who’s a loser, is going to be yourself.
as long as its around a 2k position or less uve waitied till it bottom out, waited patiently for an uptrend and doubled my postion in the uptrend to break even. its worked consitantly as long as in the foreseeable future we have news.
Averaging down works when fundamentals are strong and company is undervalued as a long term hold. If you're trading average cost down will kill you
yes. I think that s true.
I did it in good fundamental stocks averaging down .. and got profit 90 percent of the time ..
Nice!!
I use position building or averaging down on stocks gapping up above VWAP. I scalp for small profits by building a position as the stock pulls back or flushes down. I cut it when the stock falls below VWAP. This has been a good strategy for me b/c most stocks that pull back when they are above VWAP are still strong stocks and usually bounce back or continue the trend up.
I totally disagree as well. This has been working freaking great for GME
How long have you been using averaging down and how successful it is?
So many day traders .and not many real investors. The average down is a investors strategy not a day traders. Let's use KO as an example. Ol friend Warren Buffett always says to buy a stock and hope the price drops so he can buy more.. this is just your opinion.. have I added to my position and win yes. MRO I buy in around 7 to 8 because I cant time the market so as the price went down this last couple months. I bought more lower my cost and now I'm 11% plus in the positive. I am doing this with T,KO,MRO and STAG. Although stag a bit risky in my book but I would never average down a penny stock. Only a blue chip company. And sometimes you have to cut losses. Like GE . And I I sold them. The was my 2nd investment and I lost big time on GE and F. I thought was 2 great names. I been buying since nov.2017. Overall I'm in the negative a few bucks now was 100 bucks but my dividends has paid most of that lose.. I am fairing pretty good my goal is to seek income for my next generations to come
Really tough for me to admit that I'm an inexperienced idiot who bought into the hype and bought GME way too high. 1 @ 186 and 2 @ 277. I could've left when it was still safe but I knew no better. I followed the WSB "hold herd." Should I cut my losses and just sell? I need advice on how to move forward. I feel really down and very regretful. Big lessons learned.
@@roomforthefiiixins2491 so let’s get this straight. You happily listened to WSB posts when they pushed GME because you wanted to jump on the bandwagon and make some £€$, understandable. But you at the same time you ignored all the other WSB posts which said “only invest what you can afford to lose” and “do your own DD/research before investing”? And now you’re complaining that you’ve bought high and the price has dropped?
My advice? Take your loss, close your account and stay away from the stock market.
The bet on GME was exactly that, A BET! One which still hasn’t fully played out yet. This has been made clear over and over again. Hell, the subreddit is literally called “Wall Street BETS”.
I’m sorry if you’ve lost money, but when trading you need to be able to leave your emotions at the door. If you shit yourself (to the extent that you post on RUclips begging for advice) every time your position drops into the red then you’ve either got a very poor knowledge of how the markets work and/or you’ve foolishly bet more than you can afford to lose.
Get out and stay out!!!
@@robertelkins5928 To be completely honest, your points are all completely valid and I agree with you. I had no business buying in in the first place. I was swept by the herd mentality and haphazardly began playing in the market which is a very treacherous place to be. It took no time at all for me to realize that every step I was taking merely took me several steps back. I am grateful to say that the money I have invested if entirely lost would not jeopardize my standard of living or day to day. The sole purpose of me soliciting advice is to clean up the mess that I am wholly responsible for and minimize my losses before bowing out; at least until I actually learn a thing or two. In this very short amount of time, I can say that I've already learned a lot.
What about with VTI or index funds?
Thanks for the explanation.
You bet!
Yes. I bought CINF a few times on its way down these past few months and rode it back up.
If it dips a lot and is running up I have broke even with a little profit. But only tried 2 times. Best to stop loss before it drops
I averaged down in steps, so bought at a lower value sold, when I sold just taking out what I put in to average down then re-bought once it when lower again and then kept repeating this so I wasn’t losing much more if it was a bust. Took a while but got in the green eventually have only tried it twice not with big amounts
my whole strategy is to average down. I'll hold until I'm profitable. so far, I'm profitable and I'm building my positions on the low.
Congrats on being profitable, keep it up!
I totally get it if you are a trader but what about for the investor? Specially now with a down market. I mostly DCA with a few deviation plays. On the investor side of the fence, in your opinion, would averaging down be a good strategy?
You are right sir. I will only buy a iPad when the sale is over. And ill buy 2 more if the price goes up. Great plan!
Thanks for the free Info! Subbed
Thanks for the sub!🙌
Normally I don`t do day trading but invest in long term. I have average down on these stocks ; otter tail, republic services, waste management, tesla, pepsi, wells fargo, and telus. did I do anything wrong? I did my fundamental studies on these stocks.
You can still buy amazon, alpha, Berkshire A stocks by buying fractional shares. Great videos. You can learn a lot from you.Thanks. Very much appreciated.
Thanks for the comment!
I have made it work more than once on the same stock VISL
How about averaging down to break even to get out of a bad deal?
Im doing this to Palantir, i am confident will be a winner
awesome!!
RGF... averaged down... and down.... and when it bounced to average price.... instead of jumping out... went right down with the stock. Bagholding... hard lesson learned.
Agree. Averaging down only works on good companies and/or good rule based exchange traded funds. If your position is failing, count your loss. Do not add to your loss.
Well said. 👏
I'll admit I'm new and fomo got the best of me. I bought 500 positions in a stock at 1.51/share. Never came back up. I waited and the stock dropped to .48 and i bought 1500. Finally was able to sell in the green at .663 with new avg cost at .63.
I make a living from averaging down and trading both with the trend and counter-trend. The only reason people have trouble and become bagholders is because they buy too aggressively and end up top-heavy.
Calling it a "loser mentality" and claiming it doesn't work is complete bs lol.
I’ve always added to losers because I know some of the winners also come down…..What goes up must come down…Buy low strategy I thought and then sell high.
👍
I learned many years ago to NEVER AVERAGE DOWN. Only AVERAGE UP. You never want to be holding a stock in the red longer than desired.
👍
Sometimes it's funny but I feel very blessed when all my holdings are negative in the red and my only one company that has ten or twenty thousand shares actually moves a few pennies. It trumps all! It's the only ray of light on those bloody daze
this speak to ma heart
Yes, people dont want to admit they are wrong, so true. Im from Malaysia and a lot of investor still keep averaging down on gloves shares and refused to admit that are momentum shares. I cant wait to see the end results.
From comments below, they didnt reveal the stocks they averaging down is fundamental or momentum. This is crucial. As momentum stock, once the momentum is gone, averaging down will not do anything.
I have averaged down and it worked for me to get out without a loss
How do I do the math on how much money is needed to average down to break even
Great tip!
🙌🔥
*The penny stock master*
What about buying 1/3 or 1/2 of the total shares you were gonna buy, and then adding to your position later on, whether you buy the vwap hold and then buy more on the hod break or you buy at the breakout but it doesnt work but its set a higher low so you add more.
If it reverses and you stop out, you lose as much as you would if you bought all the shares at once. but if it does go your way, youre average would be lower than if you bought it all at once.
My nat gas stock went down badly because of climate change and NG-F has almost collapsed...so I have managed so far to eliminate my losses by $2,000 by averaging down...only $2,000 more to go LOL...but this is a really good energy stock. So will do this with one more trade and then I will own it at its current value.
I had $IBIO at $.75 and bought more when it was $.16 and with the recent action the position has went green
hope u didnt sell ibio yet
Say like we are contributing to a 401k at work each week, isn't that averaging down and up ??
KEY take away >> 2:22. He's not talking about high value stocks like you would managing a portfolio
💯👏
What stock did you average down on that didn’t come back ?
Castor maritime , they did a split . Recovered it averaging down in Nio and Churchill capital lol .
Answer to the title: never! (unless you invest in a really longturn big company investment)
I am considering averaging down on a stock that I bought much too high. It has dropped and has stayed low but fairly steady at this lower price point. Since I bought during a pop and the stock has dropped approx 50%, I want to double my shares and try to cut my losses. Does this sound like a good idea?
if you are already lost 50% is alot do not put more money, just ride it until reaches a price you are comfortable losing, the stock need alot to come back from 50% down, i see 20% $tat but 50% , wish you luck , the biggest rule i have learn and really really hard to put in practice "Cut your losses quickly"
Hey curious about what you think about averaging down to cut loses on this AMC meme stock? Its super volatile and has momentum and folks are holding, volume is high... Say you bought in at $14 and it crashed down to $8, you hold waiting for the bounceback. But it keeps dipping, $6, then up to $7 and swings around from $7-$9 daily. It might never reach $14 again...is averaging down a way out of the hole? (buying at dips and selling slightly up, cashing in on the profits to help bring your red back to green).
Or are you throwing good money after bad? I think a lot of folks can benefit from you answering this question. Thanks!
Understanding more and more
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You are 100% correct never invest in stock that spikes and never come back to the price. When they spike they can hit $90 but then end of day they bid for $50 and it will never reach $90 and trying to get back your money will cost you exponentially x5 per share you purchased so if you paid $120 and bought 3 shares coz it was spiking and you wanted a piece of it well to average out down to $30 you bees to spend $450 coz it's lost a 50% momentum and your saying to yourself just keep holding out it will come back well it won't. So if your going after spiking shares do not go above $20
Solid tip with no cherry on top! Thank you!
So averaging down on high value stocks are better because they can spike fail and come back. Compared to small dollar stocks that are likely not come back, averaging down is not coming back
I’m new to trading. But I’ve heard people talk about averaging down. And I’m thinking. Why throw money at a losing stock. I’ve heard this about inpx. Anyone who is anyone knows this is probably the worst stock to hold. And yet people are averaging down. Like do your dd.
Some people get lucky just to be humbled later.
Added to MARA about a 3 weeks ago hoping it would come back and ended up becoming a bagholder. Finally decided to take the loss...LESSON LEARNED...wish I'd seen this video before that.
That's not true, Mara is great company. It can go back to 40/50 range if Bitcoin goes up in value.(I average down MARA twice already, plan to average down even it will drop to 5 dollars per share)
Okay but what about if you are about to cut your loss of let’s say $400.. and the stock is consolidating.. but you are down unrealized. if you average down enough you can cut your unrealized down to half and sell for let’s say, a $200 loss. What are your thoughts?
well I found this on an investment search.. I'm no trader. in sure this is good advice... but I have used this average down strategy for big name MRO,KO,T and other top brand and here to say for a long term goal. this works.... if mathematics and its facts. yes I have lose on F and GE and end up with a lose. but I hit a sale bench mark with lose and took it. not I have sold and re bought F at the low end and have gain some of my losses. as a long term investor.. no trader or day trader penny stocks nothing like that. buy and hold. am a dividend seeker.. end goal long term paycheck to my son and his sons son and so forth.
I added to VISL stock when it was at 0.20,
Would your thesis change if the stock has a decent dividend?
I've hit bit averaging down multiple times. As early as a few hours ago with SNDL and NAKD. It is a very profitable if you know when too much is TOO much and you know how to pick the right ticket.
My average cost of AMC is $13.56 per share and now it's going for $5.55...was thinking bout buying 30 more shares at $5.55 but idk what to do
Could have and should have no dude.
Just some stupid troll suggested this method, and already knowing it's such a stupid idea, thanks for confirming it.
It's like buying a broken car and then buying another car totally burned down and now you have 2 cars with lower unit cost :)
this is strategy does not work in penny stocks or low volume - low dollar stocks....but it does work nicely in blue chips stocks with high liquidity.
I believe is a bad strategy now that I’m new and got hit hard. However, it’s not an apple or amazon stock but I wouldn’t call it a penny stock either. I bought CCL and NCLH cheap and sold from 9-18ish recently. Then trying to get a friend into this I told him the stock would likely go down that same day. I sold all and rebought at 16 to show them how even though long run it’ll go higher but for now I’ll take that small profit and rebuy at 16.. well over the last couple of days it sank to 13-14. And I’m -2000 , this is why in THIS case I don’t believe avg down to be a bad thing. Because if you look how steady the cruise lines have been when running.. “I KNOW” it’ll rise again. So is this stock and overall typical expectation an exception to the rule? I’ve learn a lot this weekend and forced myself to learn more and I feel like I should have got out around 15 and then rebuy all cheaper and have less loss, but now the stock is down and I didn’t get out so in this case I held the bag like a dumbass I’ve learned but since I’m low I feel like adding more at a low price on a solid stock isn’t a bad thing. Not a penny stock though..
Nice nice nice thanks for the tips
i don't understand how not to use downing average price, is mathematic. i've been using with stocks that i know are good companies and underpriced. i bought alibaba for 2 months and now is 14% green, and i did the same for about 10 other stocks. i don't know how to buy a share that never drop, so i buy till it stop dropping, and i'll have more shares rising
Yes : and I lost every time lol
When you average down not only are you taking a bigger chance. Your risking a bigger loss.
I average down all the time in stocks I’m long term invested but there not penny stocks
Well i did that couple of times ..sorry but i didn't loose ..it went back up..i guess i was lucky that time..i should keep in mind they volatile stocks and can go up or down anytime..my thing is how do you know if it's gonna go up or down based on the need when the market open??
also what you think when you keep a few dozens shares of a stock in certain price after selling majority to get profits just in case surges in the next couple weeks , i really really appreciate.
Hear me out, you bought $100 of a share at $10 so you have 10 shares.
If you buy then $100 dollars of shares at $8 you add 12.5 shares. So you have now 22.5 shares at averaged at what?
Is it 9 dollars or is it a weighted average so it would be below 9 dollars? Thanks
I'm one of those hard headed traders lol. I've had about 7 losers and 5 of them broke even after I averaged down. I think it really all depends on the individual trader's mental capacity in the market and how early they get in on price wise. Many different factors in every single person. Can't really spot out a certain style is "ineffective" just cuz you've had multiple bad scenarios with it. Someone else in the world got totally lucky and had the opposite luck lol. But I get it bro. KEEP THAT WINNER'S MENTALITY 💯💯💯 I understand THE OVERALL CONTEXT
Wow so many ppl mad lol not averaging down has def saved in trading garbage stocks where ppl recommend averting down better off cutting at 2 or 3 percent and moving on great video!
Thank you!
Great advice sir. Sounds very honest advice
Thank you
Thanks for watching!
I am a bit confused. I am losing on GMe 1600 and I was thinking of averaging down and sell it. So its a bad idea? Should I just lose my money? 😭
If a stock is trending down, you have to find a catalyst. To blindly average down is stupid. Averaging down on pull backs on a stock that's strong or trending up is wise.
Tenho trabalhado com uma combinação de estratégias, a saber, pyramiding, average down fazendo hedge quando necessário e usando stop gain sem stop loss. Meu stop loss é travar as perdas com o hedge, e sigo iniciando um novo ciclo com a nova tendência do mercado focando em day trade e swing trade no Mini Dólar da B3.
I was able to average down on my amc shares and I’m in the green above 10% so it does work but I agree it’s doesn’t work a lot
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Average down and up trading is a great strategy. I use IT for many years. I ALSO use 4 indicators using this strategy. My losses in this strategy are bigger than my winners, but the amount of winners are far far more then the losers. Overal its profitable.
Would you be willing to share your strategy with me?
I agree, as long as the stock has high volume and at least over certain dollar range.....such as blue chip stocks then it's a great strategy. Tho I agree low liquidity stocks could be a recipe for disaster.
it works on blue chips stocks if your on dividend investing it will not work on short term trading the point is in investing you go to long term, buy on a dip to add on your stock for more dividends long term you win they call it cost averaging.
Great video. How do you know your stock is going to keep going long enough to average up? I guess it depends on when you average up in the stocks upward trend?
Is there ever a scenario where you can average down to the current market price of the stock?
Thank you for the tip.
Ive NEVER done it and never will! nicely said
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What if you average down to make your loses smaller?
Where do you get your shirts
I recently averaged down on a bio stock, they had 3 promos the last 2 months, then they put on yahoo finance they are having a share holders meeting tomorrow 2-10-2020, I held unto them just to see how it plays out. They paid the promoters $30.000 each time, i think it was just to keep the chart sideways other than crashing, do you think i am thinking wrong on that, i've been trading for almost a year, trying to figure it out, thanks for the videos!!!
Yes it works. But you do have to be careful.
I have on cdev and work more then once in the same week
Knowledge Account Increased
lol I am adding to a losser right now VRUS cause its going to pop
How's that popping going?
yes. it depends as u said
I average down on core companies only, using CFDs. Work nice, just need to start open trade at value price.
How do you feel about averaging down on big stocks like amazon and apple?
Those and blue chip company's are the best ones to avg down.
That’s where the moneys at.
I Lower average by selling covered calls against it at my initial buy in strike.
Time is your friend...Patience to wait until it goes up..either or nobody knows
I don't need to be anonymous, I accept my ignorance at the time and deserved to lose that money for my experience and education accounts. I admittedly am a bagholder of a few stocks. Read investing books and used it on day trade stocks Tip: DON'T DO THAT!
I know better now but I didn't then, so since I'm down 90% in those via stock splits, my stock holdings went down and my average skyrocketed, I wasn't paying attention, and knew nothing of stop losses. Since I'm so far down, I'm waiting for bottoming out on the daily, then at the lowest point I can (If I believe the trend is about to change) I will average down to attempt a Houdini and escape "break-even" and redeem myself of my ignorance trading before educating myself first.
My biggest problem isn't averaging down with options but exiting trades when they go the wrong way. I fail to set my stop loss. So damn frustrating but i love trading and i have to find a way to control that emotion
More intros than the actual definition of average down.
yes amc stock in jan 27 i missed it, but feb....money baby
Dollar cost average is good when you really believe in a stock wit a solid analysis and the market overreacts on news or rumors.