Don't average any stock because it went down.
Don't average any stock thinking there is no change in fundamental.
Stock goes down not only when fundamental becomes bad, but also when it is valued high.
If stock is not growing enough , then don't average it.
I usually don't average down. I average on upside.
Downside we don't know the Bottom, so how much we will buy? It will keep on going down.
While upside, the trend is Up, which is very imp in stock market. Buying don't come for nothing. Better average those stock, which went up after you bought and still didn't come back to your buy price, and again started going up....
eg. South West Pinnacle Exp Ltd.
We talked here at 172, went to 224 , came down to around same 170, and turn back....So it never gave paper Loss. It means, our price was correct to buy, correct price I discussed.
Stock which never give you Loss is your Best Pick. Average such stocks. Don't make a mistake to sell such stocks for peanuts of profit. Don't trade to lose the deli