How to calculate average stock price?▼
Weighted average = Sum of all (Price × Quantity) ÷ Total shares. ₹100×100 + ₹80×50 = ₹14,000 ÷ 150 = ₹93.33.
Should I average down on a falling stock?▼
Only if fundamentals are intact. Averaging down on quality stocks at lower prices reduces your breakeven. Never average down on broken companies.
What is averaging down strategy?▼
Buying more shares as price falls to reduce average cost. Works well in market corrections for quality stocks.
How does averaging down affect returns?▼
If stock recovers: faster breakeven and higher % gains. If it does not recover: larger losses on larger position.
What is dollar-cost averaging?▼
Investing a fixed amount at regular intervals — automatically buys more shares when prices are low. Exactly what SIP does for mutual funds.