BewareBeware the advice of so-called experts...the Gartmans and Taylors of this world are ordinary people with opinions ...In Taylor's case that opinion is usually wrong or timing is atrocious...was tempted to sell when he recommended CSC...Gartman has a better chance of being right occasionally as he deals with 50 / 50 prognostications...ie oil /gold is going up /down...funny to see CNBC calling him "The Commodity King" ...he is no such thing...just a guy who's got an opinion and presently enjoying the limelight that TOUT TV (CNBC) is providing...
AS for averaging down...if I can buy a stock that I really like at its absolute bottom,then ther wouldn't be any averaging down...but maybe averaging up...however one can't often buy at the bottom...so average down(if you like the story) to increase holdings and profits...People who never average down must buy in at the absolute bottom all the time...they couldn't like a stock very much if they won't buy it even cheaper than the first purchase...There are no absolute rules such as "Never average down" in the financial world....and anyone who thinks that there are absolute rules will probably lose a lot of money...All just my opinion