Double Up

A strategy employed by some investors that doubles their position in a security(either in dollar value or share amount) when the security is down, lowering their average cost and hoping to profit from a recovery or breakeven at a lower price.

This strategy may be yield potentially large returns but also contains inherent risks as the stock could go down to zero. Also see “Dollar-cost averaging” a similar method, but a more complete discussion of the perils of pursuing such a strategy.