Posted by lae2 on August 20, 2008 at 18:26:34:
Make up your mind to never take losses. Make the margin call with your lunch money and eat beans thereafter. The only reason to average down on a particular stock is if it is unique (unlikely, but CREE qualifies) within its sector. Whenever you feel the urge to average down; instead enter a new position in the same sector. You must always have positions in the green to sell to make a call. Never take a loss and it is hard to lose in the long term.