How could I ignore such a well known financial expert as ONeil who advocates against averaging down on a falling stock?
Let me start by saying that you would be hard pressed to find many professional money managers who do not average down on their stock purchases. A good money manager never assumes that a stock is at a bottom, and will typically build a position as the stock falls down in price. O’Neil’s book is designed to alert amateur investors who regularly dump large sums of money into one stock. His advice should not be taken as a standard recommended practice to all investors; and, should be more dependent on each individual strategy and its money management elements. So, when the TheRootofAllGoodisMoney Strategy scale into positions, please do not confuse it with averaging down.
