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The mental state behind individuals of technique is denial. People believe they are reduce their initial entry price by continuing purchaser more simply because stock’s price falls from increasing. It’s the modus operandi of distressed traders, traders in a panic. As a strategy it is hardly ever effective. To produce matters worst, you’ll magnify your losses if the stock keeps dropping.
Speculators make trades gold futures contracts through commodities exchanges, where the cost of this precious metal is actually determined. For the average investor such speculation is not a good alternative.
