RE: Averaging Down?good post...and for what its' worth I agree....in fact there was a discussion of this on the GPR board recently....an excerpt from my two cents in that exchange is...
"one thing I don't intend to do with these companies is average down...feels too risky to me...price spikes can be so dramatic and corrections can be prolonged for months or years....too many other fliers out there to be buying into a down trend with the potential to do nothing for another year or more (to complete another drill program, find another JV partner, reapply for permitting etc) etc)...by spreading $ out over 12 or so, if one falls badly, the damage is minimized and I'll take the smaller hit and go looking for another uptrend rather than chase a down one...
maybe if you're a active trader, or a professional that works directly in the business of mining, you may have the insight and expertise to exploit oversold situations or be smart and informed enough to recgonize an undervalued play before the market does and average your cost down...otherwise, if you're a small retail investor relying on company websites, news releases, sedar, etc, accept that you are making the best, most informed guess you can as a lay person researching as much as your interest and real life responsibilties allow you in your spare time...might be wiser for that person to try to make as good bets as they can and then let those prove they're going to pay off before adding more money to the kitty to back ones that are going in the other direction...if the bet was right in the first place, the price will come back to you and you can chase it up instead of down.... "
you may also be interested in checking out this series...
https://investopedia.com/university/fiveminute/fiveminute8.asp