Chip :
Before pointing fingers at someone, consider every losing trade as a learning opportunity. When a stock drops after you enter a position, it gives you the chance to learn how to manage the downside, what adjustments you can make, and how to recover.
That happened to me with INFQ. Instead of panicking, I started researching, studying, and learning different recovery strategies. The biggest lessons I learned were to be patient and to truly understand the strategy you’re using.
I continued selling cash-secured puts (CSPs) to collect premium, lower my cost basis, and accumulate more shares at lower prices. When INFQ eventually reached $21, I was able to recover my entire initial investment and was left with 600 shares essentially paid for by the strategy. That was only possible because I averaged down responsibly and significantly reduced my cost per share.
Another important rule I follow is that I never enter a trade with all the capital I’ve allocated for it. I usually start with about 30% of my planned investment. If the stock drops, I still have capital available to average down at better prices.
Just because Ernie enters a trade doesn’t mean everyone else should blindly follow. He’s sharing his strategy, not giving personalized investment advice. Each of us is responsible for doing our own research, understanding the risks, and deciding whether a trade fits our own plan.
2026-07-02 01:29:55