Jan 18, 2022 1 min read averaging down

Should I "Average Down" on a Losing Stock?

We buy a stock at $30, and it falls to, say $22. So buying even more should be a no-brainer, right? Not so fast.

With the stock market beginning to weaken in recent days, the question of "averaging down" is something many of you are asking about.

I know the situation. We buy a stock at $30, and it falls to, say $22. If it was a good buy at the higher price, it should be a great buy at the lower price. So buying even more should be a no-brainer, right?

Not so fast.

As my new video explains - as a trading strategy in a falling market - "averaging down" on a losing stock is a bad habit every trader needs to break:

Best of goodBUYs,

Jeff Yastine