7 guides published so far — more are added regularly.
The exact weighted-average formula this cost averaging calculator uses, step by step, with a worked example matching the tool's own defaults. Grounded in the actual calculator code.
Cost basis explained plainly: what it means, how average cost basis differs from a simple price average and from FIFO/specific-lot methods, with a full worked numeric example.
Averaging down on stocks explained: the weighted-average math, why stocks have no expiration so the position can recover on its own timeline, and the real risk of concentrating more capital into a falling position.
Averaging down on crypto explained: how 24/7 trading, larger volatility swings, and the lack of an earnings/fundamentals anchor change the risk calculus compared to stocks.
Averaging down on options explained: why expiration and theta decay fundamentally change whether adding to a losing options position makes sense at all, unlike stocks.
Averaging down and dollar cost averaging use the same weighted-average math but differ in intent and timing: one is a scheduled, price-agnostic habit; the other is a reaction to a price drop.
A practical framework for deciding between adding to a losing position and cutting it: what actually changed, position sizing limits, and separating thesis from sunk cost.