Traders Laboratory - View Single Post - Have you ever tried to "catch a falling knife"?
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Old 09-26-2006, 11:14 PM
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Re: Have you ever tried to "catch a falling knife"?

I would NEVER average down. Why buy a falling stock? You are wrong and your ego is not allowing you to take a loss.

The only thing I would do in a falling stock is short or liquidate for a loss. Im not trying to be a hero and catch the dead lows. All I want is the meat (the middle of the trend).

Have you made money averaging down? This method is a sure way to lose unless you are playing with deep pockets.

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