Paul, I have a small position in a stock I like and I'm looking to add to it at its now lower price. Appreciate your comments.—J.A.

Paul Goodwin: Cabot's experience has been that averaging down in a position isn't a high-odds gamble. You're better off following your sell disciplines and looking for a stock that's in an uptrend.  The occasional big win from bottom fishing is usually swamped by the big losses that come when you double-down on a stock that's in a decline. Good luck.

Paul Goodwin
Emerging Markets Specialist, Analyst and Editor of Cabot China & Emerging Markets Report

A researcher and writer for over 30 years, Paul Goodwin has been a member of the Cabot investment team and editor of Cabot China & Emerging Markets Report  since 2005. Under Paul’s stewardship, Hulbert Financial Digest rated Cabot China & Emerging Markets Report  the number-one-rated newsletter of 2006 with a 78.6% gain for the year, the number-one-rated newsletter of 2007 with a  74.1% return, and the one of the top-performing investment adivsory for five years with a 20.5% annual return as of 12/31/10.

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