Well in that case you would be scaling in, which is a pre-determined strategy as you just stated in other words. This is one way that deep-pocket commodity traders enter in to positions. But scaling in and averaging are different. Averaging is usually a knee-jerk response to a blown or absent stoploss. The trader averaging is usually just looking to improve the breakeven point.
Sorry, I meant scaling-in...just wasn't sure of the exact terminology. Averaging in as a knee-jerk response would be a bad idea IMHO. But if it is part of the plan, and anticipated, that's a different story. -FastTrader
Oh, I forgot what thread I'm in. It's like disneyland, but far more boring and aesthetically austere, but disneyland isn't at all austere, and I don't have a good witticism for this post. Hi Baruch, Enlighten me.