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