fantastic market reaction, page-79

Making the 'mistake' of averaging down is only a mistake if it continues to go down and has no or little hope of going back up pass you're average down point. If you average down at a point where you think the price has a very good chance of clearing on the way up and staying above then it is in no way a mistake, thats where a long or medium term chart would come in handy.

All things being equal you would have a better chance of loosing money if you averaged up (depending on where you averaged up)then if you averaged down. Just because on average you haven't lost money. It doens't mean you have not lost money in actuality, because the high price point shares you bought would have lost money if the price went below it, and had you not bought those high point share you wouldn't have lost anything and the profit you make on the lower price share would not have been eroded by the averaged up shares.

Having said that, if you averaged down when you shouldn't you just end up increasing your chances of loosing more money then you would have if you hadn't. This is where valuing/pricing your stock is important. Is the value/price of your stock significantly higher or has a good chance of being than the point at which you want to average down.

PS. I have no problem with having a constructive 'arguement'..