The averaging down technique is so tempting, and I used to do it, but it rarely works. Probably the biggest lesson I've learned in trading is to take the loss. Then jump back if you feel that it is the right thing.
But, averaging down for the INVESTOR is the right move. Dollar cost averaging is what the greats do. The difference is that they are investing in strong companies.
My sincere hope is that all of you, even Mr. Big at 6.50's get one more opportunity to profit. My advice for that opportunity:
1. As soon as you reach profitability, take 30% of your investment off once you've hit a 10% gain. Then put a stop at your break even.
2. Take another 20-30% of it off at the 20% gain level.
3. Either let the rest ride, or take the rest off at 50% level.
Those are exceptional gains.