Is the Motley Fool a Scam or is Motley Fool Legit? I get this question a lot for some reason… But it's still an easy answer: The Motley Fool is DEFINITELY NOT a scam. My results with the Fool picks over the last 5 years have been phenomenal, as you have seen.Dec 1, 2021
When should you double down on a stock?
The "double down" strategy requires that you throw good money after bad in hopes that the stock will perform well. Fortunately, there is a fourth strategy that can help you "repair" your stock by reducing your break-even point without taking any additional risk.
What is doubling strategy in trading?
A doubling strategy implies a relationship between a security's return and its trading volume. This relationship should be asymmetric: in the case of a long (short) position, a price fall (rise) would be followed by a significant volume increase, while a price rise (fall) would not.
Why Averaging down is bad?
As I mentioned earlier, one big downside of averaging down is increased risk. Think about it: By averaging down, you're increasing the size of your investment. So, if that investment continues to fall even further, your losses can become even greater than if you had left your investment alone.Aug 26, 2018