fantastic market reaction, page-80

I totally agree. There are times when averaging up or down has its benefits. If a company is quite healthy and you hold a position and are lucky enough to pick up more for a bargain, price then there is no argument from me about averaging down.

My argument is more that psychologically people find it hard to average up. It sort of goes against what we believe in having to pay a higher price for a stock, but if the company is showing signs of growth and improvement, then it makes sense to average up into a good stock and it can be very profitable. And as I was eluding to the other day, it is amazing how long some trends stay in tact over a long period of time. Sometimes we hate paying a little extra to average up because it goes against our psyche, but it can be profitable.

Maybe those who got some of their money in at 67c on Thursday may average up or down over the next few weeks. Maybe they picked the bottom.