To butt in (excuse me): the main difference between knee-jerk averaging down and waiting to buy when the stock bottoms is exactly as you indicated.
Whatever fundamentals/news/reports/etc. that caused the drop have now had time to do the damage they're going to do. The stock settles, it begins to move up. Now average down.
IT does.. in general i don`t avg down for the same exact reason. the other reason i dont do it cuz if i avg down even on a technical - and the support doesnt hold i basically bought more worthless stock and im selling for a bigger loss. I Usually tend to add more stock as the stock progresses up and i bring my avg UP but hold 2-3 more shares so i make my win more profitable.Anyhow the only reason im wondering about idra is cuz the channel looks pretty bullish and it should reverse any day now... and basically the price im gonna buy now and the price im gonna get once the channel is broken has 20-30 cents difference( if u buy dip 3.00-2.90) which is actually a pretty good % return
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