I wrote below about selling on spikes. Has anyone tried "averaging down" (don't know if that's a real term). For example: I bought BIS about a year and a half ago on what I thought was a breakout at 2.25. Well it didn't break and sunk to almost 0.30. I bought more at 0.45 shortly after bringing my average price down to 0.80/share. It certainly helps if your breakout turns into a false move. Then you are in on the next spike or breakout. Thoughts anyone?

Non-investolators would say that buying more when it gets lower puts you in a danegerous situation. By buying at one level, watching it fall and buying again, you may be worried about it dropping yet again. At that point, you may pit more money in to average it out again. Then what if it drops once more?

Etc...

Of course, we're looking at a system somewhat reliable, more often right than speculation. So perhaps averaging out is a very good move since we SHOULD never sell at a loss anyway.

Remember, everybody seems to want in on the stock when it's rising, everyone wants to sell out when it's tanking. it's the contrarian who has to have the steel will to buy it when it's down. Makes me feel good some days...I am comfortable 'averaging down' since, I figure if I believe in a stock at a higher level, why shouldn't I have that same faith at a lower level. It worked with me on MILT and PESI. Trying it now on BIS.