The other day I chatted with a dude on #daytraders, he made 72 trades this year on MSFT, for 1.5pts each, NO losing trades. His big secret, of course, is to hold on and average down if he was wrong, there was one time he averaged in his maximum buying power of 10 lots, and couldnt trade anymore... Better lucky than good, MSFT came back up, he is now out of hybernation. I guess this strategy could work under certain circumstances.. he already made 100+ points this year on the stock, even if MSFT goes to 0, he is still in the money for the year. Not my cup of tea though... I rarely risk more than $0.25 on a trade.