how stupidly misinformed it is lol. I hope you guys have learned something since we last discussed the topic. I will start this out by saying that it is just as easy for a stock to go from $5 to $10 as it was to go from $10 to $5.. mathematical percentages are not probabilities. Probability is based on the average true range or a standard deviation.
@wxytrader can you just give us a rundown on your experience and qualifications etc to be presenting us with so much "educating" over numerous Threads please. EDIT I just watched the Vid. Talk about basic Maths. It even contradicts OP's previous Threads. What a NumbNiuts! Once again, averaging down an individual Stock seems Russian Roulette. Where are the Guru Stock traders in here: @stonedinvestor @vanzandt @themickey Is I right?
Guys...this isn't about averaging down...it's just plain wrong to think that a stock has a harder time going from $5 to $10 than going from $10 to $5 dollars lol. MARA and CLSK do this every week! Ever heard of a trading range or a channel? Price does this with regularity.
I left my last "day job" in 2006, (HSBC Bank, Jersey City,) Since then I have traded for myself, for a living. I know all about losses. If you get them,, how to recover. I think my last losing year was 2012. And I haven't had an equity at a loss for quite some time. Please .move on.
You are looking at a small sample and using hindsight bias. I would guess over all stocks, on average, over the long run, it takes about twice as long for a stock to double than to half.
There is no hindsight here lol. You are saying that the stock market has a long bias and climbs slower than it drops...the video is not addressing this charactertic...the video is trying to say that the recovery back to $10 is hindered by math! How do you guys not see the problem with the logic here???? The probability of price moving to any level is measured by atr and standard deviations...not the percentage it has dropped lol.
Stocks return what? Say 8% a year on average. Therefore it takes the average stock about 10 years to double in value, over the long run. No getting away from that, shout about short terms ATR and Stdev all you want.