Resource Capital Gold Corp GDPEF

RE: RE: Leigh:Resource Calcul

[lmcbain]

The ONLY reason to average down is the belief a stock will go up from the level you are buying at; if you sell below where you bought shares at, you lost the same amount on those shares regardless of what you bought your other shares at and if you sell above where you bought at, you made the same amount on them regardless of your cost base on your other shares.

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"IF" you believe that averaging down has a benefit at a particular price point, then there is just as much reason for a new investor to buy, because they will have the same potential as you to improve their position.

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Just a thought.

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Salut,

Leigh McBain