RE:RE:Someone posted here from last week asking if WEED was moving
pcbert wrote: im down so much at 4$ , hoping for a miracle
If that person went "all in" with every cent they were willing to invest then they are pretty much stuck with the average they have until the company produces a strong enough report or issues news on a big merger, deal etc that will wave a BUY NOW flag in the face of the stock market.
If they only went in with some of their cash available then averaging down a SP from $4 to something much lower shouldn't be too hard. They could run the trade on paper first to see how adding cheaper shares to the higher average helps.
The last option would be to introduce a new "block of cash" that is only to be used for gathering shares (Trading for Position Only). All they do is buy some shares then set out a LIMIT ORDER sell at a higher price simply to pull out the new "cash block" they introduced. This would not be a "cash profit taking trade" but simply a trade to gather more shares and drive down the overall average. The "Profit Taken" is actually additional shares while not having any more cash in play than what was there in the first place. Again, this can be ran on paper first to best understand how the trade would work and to ensure that the "Cash Block" and additional shares expected are "enough" to justify the trade. Spreasheets are great for running these sorts of scenarios so that is even a better way to see how it works.
jmho
Q