Averaging down

Averaging Down
purchasing more of a security at a lower price than that paid for the security originally. This is supposed to offset the average cost of the security.
CATEGORIES ...

Averaging down
Buying more of a share as it's price falls in order to establish a lower overall average entry price.
Related Terms: ...

Averaging Down
Averaging down is when you are in a losing trade, and you take another position to try to make your average entry price lower. This is a strategy that can work under certain conditions, but it is very dangerous in a volatile market.

Averaging Down
Buying more of a security at a price that is lower than the price paid for the initial investment. The aim of averaging down is to reduce the average cost per unit of the investment.
Bb ...

Averaging Down
Buying a security as it drops resulting in a lower average purchase price.
Bear Market ...

Averaging Down: Buying shares of the same security at successively lower prices in order to reduce the average purchasing price.
top of page
- B - ...

Averaging Down: Buying more of a security at a lower price than the original investment in order to reduce the average cost per share.
B
Back Months: The futures or options on futures months being traded that are furthest from expiration.

-- Averaging down.
Don't do it. For one thing, you shouldn't even have the opportunity, because you should have sold that dog before it got to the level where averaging down is tempting.

When Is Averaging Down Effective?
After considering what we have said above, there are exceptions for averaging down. Perhaps the company is solid, with earnings and improving revenues.

Averaging down is a very simple concept. When you're underwater on a position, that is, the market is going against the position you've taken on the stock market or any financial market, ...

Averaging down. Should you average down and when?
Hold on. How long to you need to hold onto a stock? Find out...
Make Money. What's the problem?
Order types. What is a MOC order or stop limit? Find out.
Position sizing.

Averaging down allows investors to lower their cost basis in a stock, reducing the amount the stock must rise in order to show a positive return.

Averaging down
Buying more of a stock or an option at a lower price than the original purchase so as to reduce the average cost.
B ...

Even worse than holding to a losing position is adding to a losing trade (by averaging down which is the opposite of pyramiding).

Averaging Down
Trading on Margin
When to Trade Aggressively
Silence is Golden
Simplify Your Trading Layout
Watch Trades for Clues
It's All About Personality
Day Trading Headlines
Trading Without A Trend
The View from the Hammock ...

Pyramiding winning trades or "averaging down" losing trades is a no-no.

I am up 8% since the start of this year and I am up about 37% since my last orgy of averaging down in mid October.

.
Averaging Down - Is Averaging Down a Good Idea?
Are You an Investor or a Trader? - Know the Difference Between Investors an...
Why Stock Prices Fluctuate
Investing Lesson 1 Intro to the Stock Market ...

Don't compound your losses by averaging down (i.e., don't keep buying additional shares at lower prices). It is tempting to think that a loss "doesn't count" until the position is closed--but it does! ...

4 Things to Look for in an Investment
Investing in Stocks - Personal Finance in Your 20s and 30s
Averaging Down - Is Averaging Down a Good Idea?
Stock Buybacks - Are Stock Buybacks Good for Investors
Investor Math Basics - Investing ...

-- I would have felt good about putting more into the ETF. As it is, I had a full position from the start and because I don't want it to be an overwhelming part of my portfolio, I missed out on opportunities to improve my position by averaging down.

averaging see dollar cost averaging, value averaging, averaging down. More generally,... away from the market Idiom used to describe when the bid on a Limit Order is lower or the offer price is higher than the current market price.

See also: Market, Averaging, Stock, Trading, Position