Stocks
Averaging down: when it works, and when it just concentrates your worst idea
Buying more of a falling stock lowers your average price. It does not lower your risk.
October 5, 2026
2 min
Markets Editor
Meera Raghavan covers Indian equities — earnings, valuations and the difference between a good company and a good investment. She spent six years on a buy-side research desk before moving to journalism.
Equity research, valuations, market structure · 11 years experience · Mumbai, India
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Buying more of a falling stock lowers your average price. It does not lower your risk.
Brokerage is the smallest line on most contract notes. Here is the rest of it.