As a rule, I never average down. Some might, that's fine. I've done this in the past and been burn't badly. I was thinking - please let this come back and I'll never do it again. :)
I think stops are a much better strategy. With averaging down, instead of buying, usually you should be selling.
I guess it all depends on the quality of the stock. If it's a speccie, get out, no questions.
