I apologize, myanswer was all too brief as I was just passing through the house.

You are absolutely right! My superior technical analysis (I like to refer to it as my "spidey sense) would have had me out at $1.47. I then would have bought in at 7.5 cents (several million shares) in Dec '08. Wouldn't have got suckered in at a buck or so, the right shoulder on the head and shoulder pattern that fooled so many mere mortals. When it dropped to .05 later that week, THAT is when I would have averaged down! (several million more shares). I would have taken most of my money off the table a year ago at about $1.35, rebuying at about half the price during the July doldrums. Not sure how I missed selling at a bit over $5 a month ago and rebuying at $3.50 a couple weeks ago... Spidey sense musta took a holiday!

OK, sarcasm aside, hindsight is 20/20 and if some poor, uneducated schmuck bought in at $1.50 and put an equal amount in at a dime, he'd be smiling right now (sorry, that was sarcasm too). For your question to be valid, you would be asking is there ever a case where the stock gapped up dramaticly after gapping down dramatically, one day after another. Then the best strategy would be to average down instead of selling higher and then averaging down. No, I don't know of such a case.

Come on H'r, you used to give good rational arguments. Now you just argue everything.