RE: Spkes25 Oct 2022 23:28
Have to agree with our idiot on this one:-
There are spikes (albeit few and far between these days) and I've traded on loads of them.
One day I was able to buy and sell three times in the same day for 20% price each time.
But yes, you can only realise a profit by selling after the SP has risen above what you paid sufficiently to give you a reward for your risk.
If it keeps going down, you can only sell by losing the value of your stake.
Same goes for "Averaging Down"; If the SP keeps falling while you're "averaging down" you may be reducing the size of your loss in percentage terms, but you're still losing actual money until the SP rises sufficiently that you can sell above your average.
Meanwhile you're just throwing good money after bad, in the hope the SP will rise at some point and validate your increased wager.