dropping down to four, page-6

I take that risk when Shorting any stock, that they might make an announcement that will go against my trade. You just need to be disciplined with position sizing and stop losses.

I can't worry about the possibility that one day they might win a large contract, that's too speculative for my trading and might never eventuate. I'd never get into any trade.

Buying more stock when the price drops is called Averaging Down and is usually not a good idea. As in, buying more of a losing stock. Then you've just increased your position size on a stock that is moving in the wrong direction and have increased your risk when you should really be trying to reduce your risk.

A better idea is to buy more stock when it is confirmed to be heading in the right direction. (Pyramiding).

People here are saying that $4 is cheap. Look at the daily chart and imagine how many people thought this same thing in mid March, early May, Mid June, early August on each of the dips and retraces. What makes now any different? Bottom fishing is a suckers game, how many people tried to do that on each of the retraces? It might work ok for short term traders who might try to profit from the retraces.

I'm not trying to be arrogant or put anyone down so please don't read my post that way, I'm just trying to explain what I'm seeing and is only my opinion. I could easily be wrong, only time will tell.

Given that it is going against what most others are wanting to hear I'm expecting a bit of resistance but the chart currently speaks for itself IMO.


Disclaimer as most people say: DYOR.