Average Down

Dictionary Says

Definition of 'Average Down'

The process of buying additional shares in a company at lower prices than you originally purchased. This brings the average price you've paid for all your shares down.
Investopedia Says

Investopedia explains 'Average Down'

Sometimes this is a good strategy, other times it's better to sell off a beaten down stock rather than buying more shares.

Articles Of Interest

  1. Buying Stocks When The Price Goes Down: Big Mistake?

    Averaging down is a trumpeted strategy that has merit, but when it is used carelessly, it can amount to throwing money away.
  2. Take Advantage Of Dollar-Cost Averaging

    We explain how dollar-cost averaging offers protection and opportunity in a sinking market.
  3. If I own stock that drops in price is this a sign that I should buy more?

    This is a good question, and the answer has two parts. First, let's address the concept underlying the strategy to which you are referring, and then discuss the validity of this strategy. Buying ...
  4. Five Investing Pitfalls To Avoid, According to Investor's Business Daily

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  6. How Risk Free Is The Risk-Free Rate Of Return?

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  7. Top 4 Most Scandalous Insider Trading Debacles

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  8. Nobel Winners Are Economic Prizes

    Before you try to profit from their theories, you should learn about the creators themselves.
  9. The Copper King: An Empire Built On Manipulation

    Find out how Yasuo Hamanaka's actions in the copper market forever changed the rules for commodity traders.
  10. 7 Controversial Investing Theories

    We take a closer look at the theories that attempt to explain and influence the market.
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