Bought the same stock multiple times at different prices? Add all your purchases and see your true average cost, total investment, and current P&L in one place.
per share
#
Price
Qty
Value
Metis analyses the stock's technicals and fundamentals to tell you whether adding more makes sense or if it is time to cut your position.
Averaging down means buying more shares of a stock you already own at a lower price to reduce your overall average cost. If the stock recovers, you break even faster or profit sooner. But if the stock keeps falling, you are simply increasing your exposure to a losing position. The golden rule: only average down when your original reason for buying the stock is still valid. If the fundamentals have changed, averaging down is just adding to a bad trade.
The weighted average price accounts for how many shares you bought at each price. Multiply each buy price by its quantity, sum all those values, then divide by the total number of shares. For example: 100 shares at Rs 500 (Rs 50,000) plus 200 shares at Rs 400 (Rs 80,000) equals Rs 1,30,000 total for 300 shares. The weighted average is Rs 433.33 per share, not the simple average of Rs 450.
For swing traders, averaging down works best when the stock drops to a known support level and the broader trend is still intact. Check if the sector is holding up, if institutional investors are still buying (FII/DII data), and if the technical structure shows a higher-low pattern. If all three are positive, adding a second tranche at support can be a strong move. Never add a third tranche unless the first two are already in profit.