My young padewan, this is the third time I've needed to correct you in a few days.
Parroting old saws is not necessarily good for your development.
Orders of magnitude, Frankenstein and now this.
Averaging down is not always a great idea but without spelling out the arithmetic as it applies to this case, it could actually save/make you heaps. If it's good enough for Warren Buffet it should be good enough for the careful retail punter. If the price ever gets to 40c again it has saved me a lot. I accept the risk associated with it.
http://www.investopedia.com/articles/stocks/08/average-down-dollar-cost-average.asp
This article spells out arguments both for and against accumulating/averaging down but points out that the almighty Warren uses it on occasion and it helps to have deep pockets if you must follow this recognised strategy.
It is not for you who have hardly proven yourself a financial or any other kind of guru to attempt to frighten anyone else out of their personal financial decision.
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