You click to buy the index fund. Yes, you notice that its liquidity is quite low, but you don’t have much knowledge and experience in researching the individual companies yet.

Your order is filled. You’re one of the owners of the fund.

You refresh your browser to see how the counter fares.

It drops for another 20 points just as the index itself drops for 14 points something .

You frown…

If you decide to buy more & thus, do that ‘average-down’ thing, click here.
If you decide to cut your loss immediately, click here.