Averaging down is unfairly treated as a cardinal sin — done with a pre-planned total risk size and an unbroken thesis, it’s often better than repeatedly cutting and re-entering.
“Never add to a loser” is a useful warning against reckless trading. It is not a law of markets. If you have already defined your maximum risk, planned your entries, and still have a valid reason to hold the trade, adding at a better price can be more disciplined than repeatedly bailing out and chasing…