How many times did you average the stock?
You need not average stocks after every 5%-10% fall.
Whenever you buy a new stock, you must have a predetermined strategy for the stock.
1. For every position, you should know whether you are trading or investing.
2. If you are a trader, stop-loss is a must.
3. Your averaging levels and quantities should also be predetermined.
For a trader, stop-loss is essential.
An investor may or may not keep a stop-loss. For an investor, "value" of a stock increases when the price falls and thus it doesn't make much sense for him to have a price stop-loss. The stop-loss for an investor should be worsening of fundamentals of the company. If the fundamentals change for the worse, the investor should rethink about his investment.
When someone buys a stock, he should also have exit strategy in mind.
A trader should have a stop-loss in mind and a target too. If he wants to ride the bull run in a stock without an upside target, he must use a trailing stop-loss.
Traders as well as investors should also have a predetermined averaging strategy. Before buying a new stock, both should decide at what price levels they will average and in what quantities.
Again after averaging, if the stop-loss for a trader is hit, he should exit.
For an investor, if the price erosion turns out to be more than what he had initially anticipated, he shouldn't average further. If the stock remains subdued for a long period, the investor needs to relook at the fundamentals of the company. If he is unable to explain the price fall, he should conclude that his analysis was incorrect or that the market knows more about the stock than he does.