Stocks Dropping? Buy More!

12

March 22, 2010 by esarsea

After getting burned by Rudy (and taking an extended break), I decided to once again roll the dice on a penny stock. 

A few months ago I bought 180,000 shares of RMDM at $0.001 per share for $180 plus commission. Good fortune followed, and the stock quickly rose to $0.0015, a 50% gain! I set a sell order at $0.002 and figured I would get out if I doubled my money.

We never quite got to $0.002. In fact, we didn’t stay above $0.001 very long. RMDM has been trading for $0.0003 and $0.0004 for the past several weeks. So what’s a person to do? Buy more! Today I purchased 235,000 more shares at $0.0004 for $94 plus commission.

Before you think I have lost my mind, consider this. Previously, I had 180,000 shares at $0.001. Now I have 415,000 shares at an average price of $0.00066. My purchase has effectively lowered the price I paid for my first 180,000 by nearly half. Before, if RMDM went back up to $0.001 I would have broken even. Now if RMDM goes back up to $0.001 I stand to gain $141 over my $275 investment – a nice 51% return.

I know, it’s small potatoes…but I find it entertaining!

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12 thoughts on “Stocks Dropping? Buy More!

  1. Randy Spiker says:

    …… and if RMDM goes belly up, you’ve lost your investment but had an exhilarating ride in the process, right?!!! If this doesn’t work out as planned, are ya ready to enroll in PSA? (Penny Stockers Anonymous :-o)

    It’s a darned good thing you don’t live in Nevada and all those impulses calling you to increase your fortune. (lol)

    Oh, I almost forgot……. good luck and do keep us posted.

  2. Stu says:

    Will do, thanks. I figure a few hundred bucks is ok to play with…heck you can blow through that in less than a day in Nevada!

  3. Stu says:

    RMDM is up to $0.0006 today – that’s a nice 50% increase from $0.0004

  4. Stu says:

    $0.0007 this morning!

  5. Stu says:

    Closed at $0.0008 today. Nice!

    • torqdog says:

      Just what does 0.0008 equate to? 8 thousanths of one cent or is it 8 ten thousanths of one cent?

      The zeros are on the wrong side of the “8” ;-)

  6. Stu says:

    Well, the 4th digit to the right of a decimal is the ten thousandth place, but we’re referencing it in relationship to a cent…which is already 1/100th to start with (or the 2nd digit to the right of the decimal). So if we move the decimal 2 more places to the right to compensate, then the 4th digit to the right of a decimal would be in the hundreth position in relation to 1 cent ($0.001 would be 1/10 of a cent for example).

    The cool thing is that $0.0008 is double the $0.0004 purchase price of my last 235,000 shares. Had I not bought them I would still be in the red after my intial purchase of $180 (180,000 shares at $0.001) but now I am actually in the black after spending another $95 when the price fell :-)

  7. Stu says:

    It started to dip so I sold @ $0.0007, which puts me even, and that’s after commission. I’m going to watch it, and if it gets back down to $0.004 I’m going to buy it again.

  8. torqdog says:

    I never asked……. what does RMDM specialize in?

  9. Marty says:

    Just curious. I was one of those dummies who bought into Rudy and lost a small amount of money compared to many others but I am curious now since they have had to pay a penalty whether their is anything I can do to get that money back. I am not an savy invester, in fact I don’t mess with stock very ofter at all except to keep track of my 401K. I figured there are many more savy investors out there that could at least point me in the right direction.

    • esarsea says:

      I have not heard anything. The website/service I purchased my shares through, Options Xpress (owned and operated by Charles Schwab) is typically very good about sending messages and/or news about stuff like this. I imagine if there is any eventual settlement with shareholders, the word will come through whoever you bought yours from. Like youl I’m thankful I didn’t purchase as many shares as I had wanted to.

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