walkway foundations

Most investors consider adding more money to stock positions they already have in their portfolios. But in those cases, it's helpful to know the advantages and disadvantages of averaging up or averaging down on a given stock.

In this installment of The Motley Fool's "Ask a Fool" series, Fool.com contributor Dan Caplinger discusses whether you should average up or down on a stock. With several examples, Dan notes when each strategy is most likely to succeed, as well as explaining why neither strategy always works out.

------------------------------------------------------------------------
Have a question about stocks, investing, a specific company, managing your money, or any other aspect of the financial world? Simply email AskAFool@fool.com and we'll do our best to get it answered!

------------------------------------------------------------------------
Subscribe to The Motley Fool's YouTube Channel:
http://www.youtube.com/TheMotleyFool
Visit us on the web at http://www.fool.com.

This video is part of The Motley Fool's "Ask a Fool" series.

Have a question about stocks, investing, a specific company, managing your money, or any other aspect of the financial world? Simply email AskAFool@fool.com and we'll do our best to get it answered!

------------------------------------------------------------------------
Subscribe to The Motley Fool's YouTube Channel:
http://www.youtube.com/TheMotleyFool
Visit us on the web at http://www.fool.com.