Adding To A Loser
The action of a trader/investor increasing a position in an asset when its price is heading in the direction that's opposite to what the investor/trader desires. This is generally not a wise investment decision because, unless the asset begins to move in the desired direction, the investor's losses will increase.
Investopedia Commentary
An investor might add to a losing position instead of closing it because he or she gets emotionally attached to the asset and has a hard time accepting that it was a bad investment. But once the trade moves substantially in the wrong direction, it may be time for him or her to consider closing out or re-evaluating the reason for having the position rather than putting more money at risk.
Related Links
Trading The MACD Divergence
The Art Of Selling A Losing Position
See also: Average Down, Average Up, Dollar-Cost Averaging, Stop Order
Also spelled: adding to your losers