stanu, Averaging up. I almost always average up. I trade in 4 accounts. If I see a stock that I like I usually buy that stock in all 4 accounts. Once the stock has moved up 10%, I double my position in all 4 accounts. Now, by doing this, I have eleminated loading up on stocks that don't go up because if that orig investment doesn't move up shortly after my purchase, I sell it in all accounts. As good as most stockpickers are on this board, we all know of stocks that just seem to have great earnings, but for some reason just don't go up. CXTI and SWTX come to mind. Now by doubling up after a 10% increase, the stock now has to drop 5% before I'm in the hole. That is a nice cushion to have.
I hardly ever buy more after that second purchase.
