This Might be the Biggest Lie in Investing--Don't Fall for It

Posted On Jun 29, 2015 By Greg Guenthner

Averaging down is throwing good money after bad. It’s usually a sucker’s bet. Instead of improving your situation you’re tying up even more money on a losing investment. Using our example, your stock would still need to rise 50% to bring you back to breakeven. The starting line. And that’s after you’ve already doubled-down on your investment.