Globe Photos Inc (fka GBPT)

[VERYLONGSTOPPEDDRINKINGTHEKOOLAID]

Bigheadd, all you have to do is the math...

When is it correct to buy a stock?
Answer: You buy a stock when you believe the price will go higher so you can sell at a profit.

Now, when is it correct to average down in a stock?
Answer: You buy a stock when you believe the price will go higher so you can sell at a profit.

See any difference in the answers?

I bought BRVO at 80 cents this summer.
When BRVO fell to 50 cents, I loaded up on it.
BRVO is now over 75 cents. I am at a profit now.

I bought GLNC at 60-70 cents this summer.
I loaded up on GLNC at 40 cents few weeks ago.
GLNC is at 58 cents now. I am at a profit now.

BOTH BRVO and GLNC have excellent fundamentals, real earnings with expectations of better future earnings and higher profits and higher expected pps.

If I did not average down, I would still be at a loss on both.

These are examples of stocks expected to have a HIGHER price per share in the longer term. That is when you average down. You do NOT average down when you have bought a stock that you expect will keep going lower and lower and never recover. You exit that stock as soon as you decide you need to cut your losses, and you move to another stock.