Chris Perruna: Averaging down does not change absolute dollar loss

Chris Perruna: Averaging down does not change absolute dollar loss
Averaging down does not reduce loss

Chris Perruna, senior vice president at Self-employed, observes that averaging down to lower the cost basis in investments does not alter the absolute dollar loss.

He explains that the original investment remains at a significant loss until total break even is achieved, calling the perceived advantage of a lower cost basis an illusion.

Perruna has previously highlighted RDDT trading above $200 as the stock formed the right side of a seven month base, according to an earlier report. In a separate analysis, he identified RKLB, ASTS, and SPCX as promising space industry stocks, suggesting these smaller names may outperform their peers, as noted in a prior article. These observations reflect his focus on both individual stock formations and sector-specific growth opportunities.

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