Today I saw a stock market veteran with over 20 years of experience say: "In the stock market, there's no such thing as averaging down, only right or wrong." However, I recently saw Duan Yongping, despite a 2 billion yuan paper loss on Pop Mart, still saying he'd "buy more," and Dan Bin, whose fund's net asset value had fallen to 0.6, was even planning to invest in SpaceX. I'm completely baffled! Who's right and who's wrong?! Isn't this the most taboo thing for retail investors: "buying more as prices fall, stubbornly averaging down"? After careful examination, I discovered there's a different logic behind both. Duan Yongping and Dan Bin are "actively reallocating," not "passively averaging down." There's a crucial difference: First, consider whether the underlying investment logic has been broken. Retail investors average down because "the price has fallen too much, and they want to dilute their cost basis to break even," completely ignoring fundamentals. Veteran investors add to their positions because "the company is still excellent; it's just that the macro environment has created a golden opportunity." Duan Yongping dared to buy Pop Mart because he valued its IP portfolio and global reach—a form of asymmetric betting. Secondly, he considered whether he had a continuous cash flow. Retail investors often average down by borrowing from online lenders and leveraging after going all-in. Dan Bin's investment in SpaceX was profit from his previous "double-sell strategy" at a high price. He was using his earnings to plan for the future. Thirdly, he considered whether there were risk control boundaries. Retail investors' averaging down only leads to increasingly heavy losses. Duan Yongping clearly defined a red line when buying Pop Mart: "Holding positions will never exceed 10%." This is his system. Do you understand? Retail investors' "averaging down" is admitting defeat to the market; it's gamblers blinded by losses. Big players' "adding to their positions" transcends stock price fluctuations, using cash to buy undervalued, high-quality assets. If you don't even know where this company's competitive advantage lies, and you're just adding to your position because you want to break even after a 20% drop, that's not investing, that's donating to the market. Adding to your position without a systematic approach is suicide. The systematic approach of buying more as prices fall is how you reap the rewards.