My pov and experience

Keep on averaging down is not a good practice in investing.

When a stock is keep on going down on long term basic, it is better to review the reason of it.
Good stock that are registering stable and profit growing and keep on rewarding shareholders with generous dividend, generally their stock price won't keep on sliding on long term basic one.

Whenever an invested target poorly perform, it is advisable to patiently monitoring first instead eager to average down, if really that bad, sliding non-stop, cut loss early.
Average down could mean double the loss instead of trying to gain back.
Average down may be = bet more on the losing stock...

Get rid of losing stock, but keep those performing (gain) one should be the motto of investing.
But most people did the other way. Take profit (sell) those gain one (normally gain a little), but keep losing one and average down more.

Average up is better that average down.

There are many, ten or hundreds of many good stocks out there for choosing around.
Don't need to fall in love in one or two.

We are not choosing a single "wife" in investing, we can or should have wife(s) in investing.

Diversification is important to mitigate the risk in investing.

This post has been edited by cherroy: May 6 2019, 02:58 PM

Just to add (not to disagree the use of FCF, in fact FCF is one of strong indicator how well the company is doing)

FCF is not foolproof figure to see whether it is worth to average down or not, especially those cash generated is not rewarding back to shareholders as dividend.
Also, billions of cash may be wiped out in single poor investment decision made by the company, or large capital outlay needed to replace the depreciation figure that resulted FCF every year one.

There are companies with strong FCF, even racking up billion of cash in coffer, but stingy to reward their shareholders, generally those stock share price won't be performing too well either.

There is one common feature on those stock that so called rewarding over the long term -> Strong FCF that translated into generous dividend to shareholders.

Bank stock is not foolproof.

There were banks that facing severe problem during downturn due to increase of NLP, which needs to be bail out or seek for financial assistance that may dilute existing shareholder.
It may not be delisted easily, but it doesn't mean share price won't plunge.

Best eg. would be US famous bank C that before financial crisis, its share price was around USD50, now after the crisis with economy fully recover and even with DJ shooting all time high (with reverse split 10:1), now share price is around USD 68.
Normalise the reverse split mean before crisis USD 500 --> USD68 now.

I don't think above query has any to do with the topic.

Anyway, just OT a bit, it depends on one's financial management preference, and there are plenty of option/ways eg.
1. Split FD into various trench, that ensure every week you have FD matured to withdraw upon, aka you have a much loose liquidity.
2. There are some good high yield saving/current account in other bank, that may have good rate, we have a topic of it as well. https://forum.lowyat.net/topic/4439367
3. Money market instrument.

IPO is not everyday got one and there is published schedule as well. So one can actually plan ahead for the liquidity needed.