Well first of all I'm not betting the farm on a single stock for all the reasons you mentioned...another problem is the reverse split taking away all the shares you accumulated at the bottom.
Really you have no risk holding cash? What if the price resumes after stopping you out early and you leave a 10 bagger on the table? You have essentially realized a loss of 10x
Taking a small loss solves all those problems. You never did say where you were getting the money to average down.
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