"Averaging down" is not a good idea when a bearish trend is in...

  1. 1,633 Posts.
    "Averaging down" is not a good idea when a bearish trend is in place! The capital needed to do that always puts an investor over weight in the equity and catching falling knives that cut their invested capital to pieces IMO. FAR (pardon the Pun) better to set a tight stop loss and preserve capital while waiting for the next good entry. That way if the SP falls 60% then recovers to a bullish trend we only need a 5% -15% rally to recover our losses and maybe even less if we also then commit the capital we would need to average down to the point that a 25% rally would be needed to recover losses by averaging down.... As I said "averaging down" is usually a bad idea!
 
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(20min delay)
Last
35.0¢
Change
-0.005(1.41%)
Mkt cap ! $32.34M
Open High Low Value Volume
35.5¢ 35.5¢ 35.0¢ $4.551K 13.00K

Buyers (Bids)

No. Vol. Price($)
1 21186 35.0¢
 

Sellers (Offers)

Price($) Vol. No.
36.0¢ 1577 1
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Last trade - 15.31pm 11/07/2025 (20 minute delay) ?
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