How To Know When To Buy & When To Average Down On Your Investments

I often get these questions: "How do I know when to buy?" and more importantly, "How do I know when to average down?"

So in this video, I want to discuss those two topics. In this video, you'll get:

  • Tips to know when an asset is overvalued
  • Tips to know when a downtrend is likely over
  • How to get closer to a market's bottom (or stock's bottom) by averaging down
  • How I know where it makes sense to average down on a stock or index.
  • How to know if an asset is solid and should be invested in or averaged down on, in the first place

I hope you enjoy the video.

God bless!


Thanks so very, very much!!! So clear and easy to understand.


Thanks Sean. Very helpful. Averaging down was my Achille’s heel. You touched on it before but another question has always been how much of my total portfolio should I be allocating to a single position. If the target was per se 5%, then do I have 3 piles of 5% (15% total) or do I divide the 5% into 3 (~2% per pile) for averaging down. Thanks again for all the coaching!


You're welcome. I'm glad that helped. Normally, we'll build up to 20-25 positions in a regular market. In this defensive market, we may have fewer positions due to less values able to be found.


In a perfect world, you'd divide your money by 20-25 for the money allocated to each stock and then sub-divide each stock's money by 3. But keep in mind, we live in a world that's not textbook. Maybe we'll have that many positions at some point, maybe not, depending on what the market gives us. Maybe we'll be able to do full averaging downs, maybe not. Also, as we're adding some positions...at some point, we'll be selling others and freeing up some fresh capital. So there are those variables to consider too.

Really great info! Thanks Sean!!!


Thank you. I sure do appreciate that.

Great video, we had spoke on this, but great public domain knowledge


Thanks. I appreciate it.