Reader says... ... Singtel, average down from entry at $3.62 till $3.33, average cost is about 3.44. I only started buying stock about 6 months ago, and having using this approach. I decided an entry price, normally at 52 weeks low so I got a margin of safety, then average down if the stock keep dropping and stop when the stock moving up. What is your opinion of this average down approach? One down side I learnt so far is if the stock run up after my entry price, then I will not be able to accumulate much as only nibble small amount (3k-4k) at the start. It happened with my ST Engineering, Sheng Siong and First Reit. The stock took off after my entry and have no chance to buy since then as I tried to chase. Also, what do you think about stock with low transaction volume? Should we avoid those as it might not be easy to sell with low daily volume ? ......