$Cornerstone Strategic Value Fund Inc (CLM.US)$  ​Today I wi...

$Cornerstone Strategic Value Fund Inc(CLM.US)$ ​Today I will use CLM as an example of how I profitably average down in a declining market. But I do use this strategy for many other stocks like oxcl,jepq,qyld,occi,gecc,usoi, etc. I have been using this method more recently. I am asked on more than one occasion why I don't just buy once when I think the stock has reached the bottom instead of buying when it simply declines by a few percentage points. For example, why buy CLM for 7.23 when later you can buy it for 6? Effectively averaging down and keeping your average price close provides profitable options. Let’s review quickly. I have been buying CLM at different price levels for the last couple of months, averaging down, and keeping the average within 3%. This means that from 10/26/22 to 12/14/22, the stock was well above my price average, so I collected monthly dividends and sold 35% of my position for an average profit of 10%. I added at 7.23, bringing my average down to 7.52. Friday, when the stock was up 4% at 7.80, I sold 15% of my position for a 4% profit. If we get another bump next week, I will sell another 15%. When practicing profitably by averaging down, I try to recycle 25% to 35%. Meaning that in keeping with my goal of averaging down, whenever I think it's possible to shave 25 to 35% off the top for a profit and later on buy those same shares at a lower price, I will do it. This strategy works well when you can disconnect yourself from all emotions and think like Spock, valorizing logic over emotion. Economists have been forecasting a recession for months, and most see it starting early next year. Whether deep or shallow, long or short, is up for debate. Still, the idea that the economy is going into a period of contraction is pretty much the consensus view among everyone, yes, everyone. True, we have “Bear Market rallies” that add volatility to the market. But if you can't see the market has been in a downtrend for a while, then I'm afraid logical thinking is gone. The significant upside to this is that we all have the advantage of thinking logically if we so choose. You understand that the market is in decline and nothing important has taken place to change that way of thinking; therefore, by now, you know the bear market rallies are opportunities to average down in a profitable way. This adds to your bottom line while at the same time always putting yourself in the position to buy more for less, and in doing so, you are continuously adding more overall value to your long-term dividend portfolio.​