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LordTurkeyBaster

02/27/14 8:18 AM

#90460 RE: Kazerone1 #90459

Averaging down means buying more stock as the price falls. You're lowering your cost average -- thus it's called averaging down.

Averaging up works the same but the opposite.
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catty

02/27/14 8:41 AM

#90475 RE: Kazerone1 #90459

Kazerone: Averaging down means you buy a stock at let's say $10 and it then goes down to $5. You then buy more at $5 ... so it averages out at $7.50 Hope that's clear. But just to confuse you a little, the same principle applies to averaging up. You seem to be new in the market, so be careful.
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someone1

02/27/14 9:18 AM

#90502 RE: Kazerone1 #90459

It means buying more shares at a lower price to average down the price from where u originally bought from... . Always good to average down if ur looking to hold long, just wait for a good buy in price unless u see it confirming an upward movment to the 52 week agin. :-)