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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Interesting Microcaps
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Author: Bankman007   😊 😞
Number: of 52 
Subject: When to Average Down
Date: 12/07/23 7:42 AM
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No. of Recommendations: 5
As someone who's had spotty performance averaging down I thought this was worth sharing.

microcapclub.com - When should you average down

Averaging down can be a wonderful thing. In fact, variable pricing is the best thing about the public markets. Short-term stock prices are yanked like a dog on a leash by the madness of the crowd.

Investor sentiment is a pendulum that swings back and forth between extreme optimism and extreme pessimism and never sits still. It's on the extremes where the astute investor waits patiently buying or selling.

Even Berkshire Hathaway, one of the largest, most durable businesses in the world trades in a 30-50% trading range every year. Every. Year.

Coincidentally this is also why many successful short-term traders focus on trading the same 2-3 stocks every year. There is enough volatility in a couple things to make a living. These successful traders find the pulse of a company's stock. They know when the heartbeat becomes irregular.

Microcap stocks are inherently more volatile which means you will have even more chances to average down.
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This community has written 52 posts about Interesting Microcaps. The article-length ones it recommended most:
Screen trade basket: FF, MCRAA, BELFA, and RSKIA · 5 recs · 2024
Changed mind on DIT, added KEQU · 5 recs · 2024
Too interesting to make the cut · 4 recs · 2024
Not so micro: Seaboard Corporation (SEB) · 3 recs · 2026
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