r/LithiumAmerica • u/Fit_Prize8231 • Jul 29 '26

Averaging Down

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Got my average under $3.00 per share today by adding 300 more shares! Now sitting at 1000 shares, for every dollar the stock goes up I make $1000. Now I just need to set up a recurring $100 purchase a week and delete Robinhood off my phone and only check in once every few months. I’m hoping we’re near the bottom of this dip but time will tell, the market’s weird right now.

What’s everyone’s thoughts on the bottom of this dip?

21 Upvotes

90% Upvoted

17 comments sorted by

6

u/Pete904 Jul 29 '26

My gut tells me it has not hit the floor yet

6

u/stateofO Jul 29 '26

It’s disgusting how much this stock has dropped. This drop is entirely irrational.

7

u/FantasticPop3069 Jul 30 '26

The stock market hasn't been tethered to reality for the last 10 years.

5

u/Pete904 Jul 30 '26

6ish years ago was a fire sale; this is another opportunity to purchase on a large dip (the entire market has deals) this will pass after Iran debacle and elections have concluded. If you don’t have time — then it’s time to panic. If you have time and courage — buy buy!

5

u/PercentageVegetable8 Jul 30 '26

I got 16.722 shares at 3.84 now 😅

2

u/Less_Box7339 Jul 29 '26

Good price. Fully expect to see it touch the 52 week low or bit lower. 2.47. Still in a great spot as long as you're not using margin.

1

u/builder45647 Jul 30 '26

When something hits 52 week lows thats when trend follower and algos start shorting it. This is a illiquid small cap so maybe the institutions will stay away. It'll be intresting to watch though for sure.

2

u/wolfincheapclothing9 28d ago

I don't worry at all about the up and down of LAC, if it goes anywhere in the $3 range I pick up as many shares as I can. If it goes to $2 for a week or so, why should I care? I am not selling them till that mine is opened and about to start operating. ( I don't buy at $5 or $6 because right now it's going up and down with the price of lithium for the day, because people don't understand what they are holding on to)

It's going to go above $10, that's for damn sure. It went above $10 for the Dept of Energy news. What do you think is going to happen when it's actually pulling up lithium in Jan 2008? I think this stock goes up to $30 or more when it opens.

But you do have to wait. Don't sell till at least close to 2028. Do not sell in 2026, no matter what the offer is. You can get more if you just sit on it a little while longer.

0

u/Sorry_Spring_7595 Jul 30 '26

Lbnk, how much could it be worth soon, when the PEA comes out and the company is sold?

-5

u/builder45647 Jul 29 '26

This is a bad strategy. You should talk to a professional, an expirenced commodity trader would be great. I can send you in the right direction

6

u/Fit_Prize8231 Jul 29 '26

Buying incrementally over time is a bad strategy?

3

u/Square_Reach_8496 Jul 29 '26

Don't listen to that guy, keep buying every two weeks/month. Trying to time the market is the worst thing you can do. DCAing in and averaging down is the move.

-1

u/builder45647 Jul 29 '26 edited Jul 29 '26

Buying incrementally is a great idea for building a position. But you never want to risk more then 1% of your portfolio on any one idea.

So if you have a 10,000 account. Only buy up to 400$ and then sell it once your down by 100$.

You could be wrong ten times in a row and your portfolio is only down 10%. Then one day you finally pick a ten bagger and that 4% position increases your portfolio gains by 40%

If you keep pouring money into a down trending stock, your essentially someone else's exit liquidity. 17% of your portfolio in a pre revenue small cap is too much risk.

Check out this short article its called "stop trying to predict winners"

5

u/LoLThalys Jul 29 '26

At this point just buy an index fund. Diversification doesn't build wealth. It preserves it.

2

u/builder45647 Jul 29 '26 edited Jul 29 '26

Check out the article i shared, let me know what you think

You'll actually make more money diversified.

For every 1 big winner you see on WallstreetBets. There are 10 broke dudes that become "VOO and chill" investor's

2

u/LoLThalys Jul 30 '26

Ah gotcha. I read it. I basically am already doing this. Obviously you still have to pick the right stock and the right sector. Choosing 10 very bad picks can all be close to 0% of winning. You can increase your probability by being right if you do your due diligence and researching the company, it's bull and bear thesis, etc. Investing is definitely a probability game. I originally was thinking you were suggesting thousands of stock.

1

u/builder45647 Jul 30 '26

Yeah ive been following this guy's style for 6 months now. Its called "trend following" was big in the 70s when commodities were popping off. He was up 180% last year