I'm still building my investment/trading plan and thinking about different strategies to employ for my long term investment decisions, and short term trading decisions.
In terms of long term investments, what are your thoughts/experience on an averaging down strategy if the situation arises to purchase additional shares at a discounted price?
Given the fluctuations that I have seen over the past couple of weeks, most notably the shock sent through the market from S&P's credit rating news, in future situations where a lower entry point exists, would you buy more shares at a discounted price if you have a long term view of the sustainability/growth of the company?
I'm interested in how this strategy can be used and if it is widely used by ASF members or something to be warned against.
Look forward to hearing from some of you!