Eli5: with stocks going down why would someone hold and buy more on the way down (average down) and not just sell now and buy again when the stock bottoms out?

Question

Eli5: with stocks going down why would someone hold and buy more on the way down (average down) and not just sell now and buy again when the stock bottoms out?

In: Mathematics

Answer 1

Thanks for everyone’s answers. I only keep stocks for 5-10 days on average and I can usually time the bottoms within 5-10%. Hopefully it works out but if not wish me luck 🙂