🔁 “I’ll Average Down One Last Time” — And Other Famous Last Words
Meta Description: You said you’d average down just one more time. Now you’re 80% down, 3X overweight in a dying stock, and praying for a breakout. Here’s why averaging down is retail’s favorite self-destruction ritual.
📌 At a Glance:
Averaging down is the retail investor’s coping mechanism. Instead of accepting a bad decision, we double down like it’s a poker game.
“Stock is down? No problem. I’ll average. It’ll bounce. It has to.”
And thus begins the spiral:
Stock falls from ₹110 → ₹80 → ₹50 → ₹28
You keep buying
You keep hoping
Until your portfolio becomes a hostage situation
🧠 1. Why We Average Down (Even When It’s Stupid)
Belief
Reality
“I’m lowering my average price!”
You’re increasing your exposure to a loser
“It’s cheap now”
It’s cheap for a reason
“It’ll recover”
Your conviction ≠ market reality
“I’m investing more, that’s good right?”
Not if it’s blind faith
This isn’t dollar-cost averaging. This is hope-cost averaging.
