is averaging down a good strategy ??, page-8

  1. 10,751 Posts.
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    It depends on if the stock the stock was hit by an event that has crippled its attraction. If I am convinced that the stock will recover and it later does, then I may average down wirh the view that I save on brokerage and can if I wish sell the lot later. If the story is good then the lower entry was lower risk than the previous. I buy on weakness and sell on strength.
 
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