Imagine you have 100 shares at 10 dollar average. 1000 total. Then the stock goes down to 5. You lose 500 dollar. If you interpret a possible continuous downtrend, can you lower your initial average without putting in more money?
Example: selling 200 dollar at 5$ from the 500 dollar that you are losing, and then re-buying the same amount (200 $) at less than 5$ (for example, at 4$)
Is this possible?