Should You Average Down or Cut Your Losses?
We have all been there. You bought a stock because the narrative was perfect. Maybe it was an EV startup that was going to revolutionize trucking, or a biotech firm with a “guaranteed“ FDA approval. You bought in at $100. Today, it is trading at $70. Your brokerage app is flashing red, and you are staring at a 30% unrealized loss. The emotional part of your brain is screaming two conflicting commands at you. The first is: "Buy more! It's on sale! Low
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