average down - lyc, can it work?, page-27

Cafa I can answer this as I did it, but only with LYC as I believe in the product & my investment is a long term investment.

I did start with $10,000 & the reason was because I start all my trading with $10,000, but as I got to know lyc & rare earths more I invested more & became an LT investor of lynas, not a trader.
Just like your example, each buy in I bought more, but not just to average down, it was also because as time went by I learned more about lynas & rare earth.
A big buy was 48c/49c & was much more than the figures you talked of (try much more than double your figures), infact I even used Westpac money the Friday before the Malaysian election, selling enough shares 3 days later to cover what I had used of Westpacs money (this helped hugely in bringing down my average).

Now some are calling this a gamble, I was convinced BN would win so no gamble IMO (I've spent a lot of time in Malaysia & know it well including the politics)

I do not advice averaging down unless you are 100% sure in the fundamentals of the company & can afford to lose the money.