fantastic market reaction, page-111

And your arguments do have merit as well. Of course, people can also be caught out, just like they can being caught averaging down.

However, as i have said, averaging down, which most prefer/only do, can at times be fraught with danger. This can especially be the case when the market is doing well, but the company you average down into is going badly. There may be more to the company than meets the eye. The market is also very forward thinking and sometimes if a stock price is losing value, there is a reason for it. And yes, in some cases in can be pinned to the gold or silver price.

But, I have been resource companies where commodities are rising but my company is hardly rising. Then when it falls, my company tends to fall much worse than others.

AS i said, you bring up valid points for and against. I do like to average down too, especially if my original position was only to dip my toes so to speak. Both averaging up and down can be good ways to manage money and average into the stock taking away the concern of making an initial poor decision.