I just realized why adding to losers leads to greater losses than those gains realized by adding to winners. When you are adding to a loser, you are trying to avoid losses at all costs. Thus, you are eternally hoping that the trade would go your way. So after you average down and when the price comes to Break Even, the eternal hopeful self won't get out and hold on for more gains. The end result is losing a lot more than what you bargained for. When you add to a winner, you are trying to avoid losses at all costs (or else you would've added onto a loser), and thus when the price bouces back to Break Even, you get out without a loss. You get out prematurely without being able to hold on for great profits. Thus, in the end those who adds to losers lose a lot more, while those who adds to winners doesn't win as much.