Decoded Intelligence Signal

Averaging Down

intermediate
risk
Verified: May 26, 2026

Lexicon Core Definition

Buying more of an asset as its price falls to reduce average entry cost — in trading contexts, this increases position size and total risk in a losing position, violating core risk management principles.

Analysis Breakdown

Buying more of an asset as its price falls to reduce average entry cost — in trading contexts, this increases position size and total risk in a losing position, violating core risk management principles. Full explanation coming soon when Journey 8 content is ingested.

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