Averaging strategies are commonplace in the world of investing (and trading). The two straightforward averaging approaches are “average down” and “average up”. If you do not know what are the ups and downs, here is a brief introduction to these terms. Average Down According to Investopedia¹, the definition of average down is: The process of buying additional shares in a company at lower prices than you originally purchased. This averaging strategy is usually used by investors (and traders) when the price of their shares (and other financial instruments of other asset classes as well) goes below their original purchase price. By buying more of the shares at the lower price, the average price of the entire holding would be lower than the original purchase price. For example, I had bought 100 shares of ABC Company at $1.00 each, totalling $100.00. A few months later, the price ......