Buying on a pullback vs. averaging down

[billyjoe]

Most books on investing will tell you that averaging down (buying more of your favorite stock as it retreats) is a big no no , and I'm proof of that (MCZ) and others, however, nearly every day someone will announce on Mr.Market's site that they're waiting to buy on a pullback. What's the difference ? Is it a TA thing?

billyjoe

[DSteckler]

"Averaging down" means buying additional shares at a lower price. Sometimes that's smart, sometimes that's not.

"Waiting for a pullback" usually means you want to see a lower price before you make the initial buy.