Agreed, d risk is there, esp the coy pack up n go. Hence, b4 doing the avg, look at the stock first.

ie, audio visual entertainment, expiry date is not weeks, whereas palm oil, an essential daily living item.

iPunter      ( Date: 16-Jan-2009 09:11) Posted: The act of 'averaging down' is a move to fight or spar with the market, since we are not satisfied that it has 'eaten up our money'. When the price has gone down, we have lost money. When the price has gone very low, we may think it is cheap and good to buy more of the same (averaging down). But in actual fact, as long as one is still holding onto our original stocks, he has already bought , because he has not yet sold. Because he has not yet sold, his current holding is still exposed to great risk because it may go down some more, no one knows how much more. To buy some more of the same is simply to increase one's exposure. This practice is good for thrill-seekers only, not money preservers!...