I bought BDTX stock in price 5.66$ few days ago. But now stock droped a lot. Should I buy it more to decrease average price? Is it a good strategy?

The decision to buy more stock to decrease the average price, known as "averaging down," is a common strategy but not without its risks and considerations. Here are points to ponder:

1. Evaluate the fundamentals: Before deciding to average down, assess whether the decline in price is due to temporary factors or a fundamental deterioration in the company's prospects. If the company's value remains unchanged, averaging down could be a reasonable approach.
2. Consider the market sentiment: Look at the broader market trends and sentiment. If there's a general market downturn, averaging down might not be the best strategy, as the stock could still decline further.
3. Risk tolerance and investment horizon: Ensure that you are comfortable with the additional risk and that your investment horizon aligns with the potential volatility of the stock. Averaging down increases your exposure to the stock, so it should align with your risk tolerance and investment goals.
4. Portfolio impact: Averaging down can affect the overall balance of your portfolio. If you become heavily weighted in a single stock, it can increase the risk of your portfolio. Diversification is key to managing risk.
5. Cost averaging vs. averaging down: Cost averaging involves investing a fixed amount of money at regular intervals, regardless of the price. This strategy is different from averaging down, which is done to lower the average price per share of a stock already owned. Consider whether you are applying the strategy correctly.
6. Potential for recovery: Analyze the stock's historical performance and whether it has shown a tendency to recover from similar price declines. This can help inform your decision on whether to average down.
7. Professional advice: If you're unsure, consider seeking advice from a financial advisor or investment professional who can provide personalized guidance based on your specific circumstances and investment goals.

In the case of Black Diamond (BDTX), here are some additional points to consider:

• The company has recently been upgraded to a Zacks Rank #2 (Buy), indicating positive earnings estimate revisions.
• The stock has experienced a significant decrease in short interest, which could indicate reduced bearish sentiment.
• There has been substantial insider purchasing of Black Diamond Therapeutics stock, which could be a positive signal.

Given these factors, if you believe in the company's long-term value and the recent developments suggest a recovery is possible, averaging down could be a strategic move. However, it's crucial to ensure that your decision is based on a thorough analysis of the company's fundamentals and the market conditions, rather than solely on the desire to lower your average price.