BB,
Your right on the money, I almost always average down, unless it is just a total dog. It may take some time but it seems to always pays off. When the MM's bring these down that is what they are doing, getting stock cheap. If it's good enough for them at a 50% discount then it's good enough for me. If I liked it at .10 cents then I should love it at .05 or .025 cents. Takes guts and patience but it pays off in the end.
With trading you must conquer your emotions and be very disciplined about your goals.