If the company has good fundamentals and has been sold on stupidity.. Yes averaging down will work as when common sense comes back the sp will return to the level you first bought or even go higher... But if its a spec play and you've bought in on pending results and those results are not what the market expected.. You are best to sell and take a loss or you'll will see the sp drift lower on low volume due to no interest in the company and then you are trapped..
