Yes but ET will never understand this. Trading is hard on the psych, adding to winning trades is even harder, so don't hold your breath
I have two issues with adding to a winning trade: 1) it raises your average cost and makes it so that a smaller movement against you wipes out your profits. 2) just because a trade is "winning" does not mean it is going to keep going in that direction. If you have confirmation that it's going to keep going in your direction, then sure, add to a winning trade. Go all in. I'm sure there are some people who can add to a winning trade as part of their successful strategy, but doing so doesn't work for me.
Next add on QLD is probably going to be $47 or so. That's assuming price doesn't keep going up for a while first.
Thank you for answering one of my questions. What about target ? Do you trail or got a target in mind, that part is still missing from your journal. Thanks
Oh sorry. No target yet. But when I come up with one I'll post it in here, or I'll at least post my exit in real time.
Great, wish you best of luck/skill with your positions. I know I give you shit but at least I follow your journal
If you believe you can't predict direction at all, and don't use any leverage, what's the point of trading? How do you intend for your strategy to beat passive index-tracking? In other words, why not set up a diversified portfolio of SPY and bonds (and perhaps gold, REITs etc.) and rebalance yearly? If you like, tinker with the weightings a bit based on perceived under- or over-valuation. This way you'd save on commissions and avoid short-term CG taxes.