I think it makes sense to do this after a loss only if you then have reason to believe the stock is ready to reverse and this makes the stock a bigger potential earner than before it dropped. To do this just to bring your average to a point where you can tell yourself you aren't as much in the...
Many traders use the term "weak hands" to refer to holders who exit their positions at the first sign of a trade not going their way. I guess they think they are strong by sticking with a stock through thick and thin. I'm new to trading, but this is like first day of stocks 101 stuff.