No. of Recommendations: 1

Averaging down is a no-no. It's risky strategy better avoided. But, of course, we've all done it and gotten away with it, and --as a value investor-- it has to be done. But not as a trader. If the market doesn't immediately confirm the entry are correct, you get out.

However, here's a situation our rule set hasn't yet addressed. When the market does confirm the entry was correct, do we add to the position? Adding money would increase profits, but at cost of increasing trade-management complexity. I'm inclined not to average up and just make single shot bets and then move on. But I'm wondering whether I should try to average up when conditions favor doing so.

Your thoughts?
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