do many of you average down on stocks ?, page-21

Nickoo given your scenario I may well be a buyer at $1. However the money I bought with would be the money I'd retrieved from the $3 buy when I stopped out at $2.70 or whatever.

Interesting math.

Say 1000 at $3, then 12 months later 1000 at $1, (I'm assuming you'd double the stock not the outlay). Total commitment $4000 for 2000 shares. Ave. $2

However $3000 outlay for 1000 then stopped out at $2.70. 12 months later buy 2700 at $1. Total outlay $3000. Ave price $1.11

Your total expenditure is $1000 less and you have the div. from another 700 shares.