Averaging Down on Penny Stocks

In this journey into PennyLand, I’ve held on to stocks that have tanked 50% and beyond and felt like I was left holding bags. Whether these stocks are being held long, or you want to minimize your losses on a shit stock you want to get out of, I’ve learned you can “Average Down” to help reduce your losses and increase gains. 

I read a great article the other day on iHUB about Averaging Down that has been helpful for myself: Averaging Down – lowtrade

Here’s the break down on how to Average Down:

  1. Sell off either 25, 50 or 75% of stock X. 
  2. With the funds made from the sell off, rebuy stock X at a lower price. 
  3. Sell stock X at a more favorable price.

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