Addicted to Average Down?

Discussion in 'Psychology' started by Pension_Admin, Jan 22, 2010.

  1. GG1972


    What's new ? Another Canadian fraudster. Laws in Canada beg even a decent person to be criminal-he couldve done so much better with trading weed futures lol
  2. hope you didnt avg down today
  3. I hate to say it, but I have to agree. There are so many hit-and-runs nowadays and with our current legal system, it's much better (financially) to have the victim dead than alive. This shout out the message, "It's better to commit crime." Thieves pretty much rules, because store owner can't catch and arrest them. One store owner has gotten charged for catching and beating a thief who has been stealing from him many times. The court let the thief go, saying there was no proof of theft.

    Anyway, regarding Average Down, I think it is extremely addictive--like cocaine.
  4. No, I never did. I did some calculation on a spread sheet using my strategy and it showed that the result would be the same rather I average down or not.

    So, I do the opposite.

  5. venkat


    People average down(myself included) when they can't/don't cut losers quick basically both are bad for a trader...I am trying to get rid of both of them.
  6. Definition of "Investment".... a busted trade.
  7. Are you able to post your future telling spreadsheet?
  8. It's just a simple spreadsheet, assuming random outcome (coin flip) with a fixed r:r.

    It doesn't tell the future, but it does help with my mental preparation.

  9. Stosh


    I have found that averaging down is an excellent strategy when prices bottom and trend up soon after your purchases. I may write a book about this strategy. Stosh
    #10     Jan 22, 2010