share of the decade, page-58

funky,

it is sound advice to not *always* average down, but somewhat of a stretch to then claim to *never* do it or they will be wiped out.


for example... sure, you can say with 100% confidence that if someone always averages down, they will, one day, be wiped out.

However, if someone only ever averages down on 1 stock... but does not always do it... it is highly unlikely they will be wiped out completly.


I can double down on blackjack for an evening of fun... that does not mean I do it every night, nor that I will automatically be doomed because I did it once.

I think you need to ensure your advice matches your analytics.