Addicted to Average Down?

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

  1. Averaging down (or up) on major indices over long periods of time (15-20 yrs +) generally works. Basically the shorter your time frame and the more concentrated the investment each time you average down, the riskier it is, imho.
     
    #101     Jan 27, 2010
  2. Redneck

    Redneck


    N.H.

    Thank you Sir

    And you were absolutely correct - Today was a better day:)


    See Ya

    RN
     
    #102     Jan 27, 2010
  3. NoDoji

    NoDoji

    When I think about the trades where I averaged down or held a loser way too long, it was always because I had a strong opinion. Over time I discovered the market will allow you to hold your strong opinion until you exit the trade cursing and screaming at the ridiculous price (the price you thought it could NEVER possibly reach), then it will laugh at you and move swiftly in your favor.

    OK, time to get back to "Trading in the Zone" so I can get rid of those market personification thoughts...

    :p
     
    #103     Jan 27, 2010