Hi,
I quite deny with most of you.
In fact, the very western method of avoiding 'averaging' at all costs, has not helped me.
Infact,I was able to cut my losses, and go into minimal profits by averaging the stock,i held for some time-bought at a high level and holding and averaging at lower levels!!!
The only requisite is one need's regular 'cash' or funds inflow to average such positions! and the stocks going low must be quite well averagely traded on the exchange-not" z'scrips or penny stocks!
Futures trading -is too risky,no comments or No averaging for it!as MTM loses pile up along with brokerage commissions!
I find most of the trades hit the stoploss quite often ,if the differance in price is less and it is sheer waste of your precious money without trading and only hitting stoploss levels!
earthy8