Averaging down: why is it so tempting for beginners?

Averaging down adds to a losing position at a better price, lowering the average entry. It feels smart — and it concentrates risk on exactly the trade that's proving you wrong.

Have you done it?

• what made it feel justified at the time
• how the trade ended
• what rule you now use to prevent it

The position sizing guide shows what averaging does to the numbers: the "better" entry is a bigger loss waiting.