Cafa "Rastus2 - happy to plug in any theoretical numbers you care to supply.
IMO just does not work with a falling SP. Can work with a SP that is trading withing a range, even a large range over a period of time. "
ok then, since you asked.
lets say
bought $10,000 worth of stock @ the $1.00 mark
bought another $100,000 worth at the 0.50 mark
sold at the recent spike (post GE13)... lets say 0.68
I think they made a profit... but they are fabricated numbers not a real world example.
Like I said, it can work, or it can smash you if the SP does not bounce back (or change trend on the bigger picture)....
Saying it can never work is wrong, much the same as saying it is the best way to make a profit is wrong.
It's easy to beat the system by averaging down, but only if the SP manages to get back above your average price which involves a few variables through the entire process.
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