I understand the 3 step investment strategy completely. About the ONLY time I'd recommend averaging down for any reason, is stepping into a long term investment. I use to teach that at the board.
My problem is using it on bottoming stocks in bad industry sectors. There use to be a investment philosophy to buy the "Dogs of the DOW" and hold for 5 years. It died with the market crash, pretty much, until 2013. Now it's hold for a year.
Good luck, I just can't see how your investment picks can beat something like a large divvy REIT or large cap multi national growth stock, in this market. Then again the DOW is big cap multi nationals.
I'm more concerned with the picks, then the process. IMO if your going to invest. Invest in something good, not bad. Reap gain, don't wait for it. But I'm not a contrarian investor by nature. I hold 2 REITs NYMT & ARR. Both who have just given new 15% buying ops !!!
Just food for thought.
