Average down - small wins, big losses?

Discussion in 'Risk Management' started by Peblo, Oct 8, 2017.

  1. volpri

    volpri

    Wish i could trade today but have other things to do. Good luck.
     
    #71     Jan 19, 2018
  2. volpri

    volpri

    Thanks for informing me. Good to know. Do you know where mr tudor is now?
     
    #72     Jan 19, 2018
  3. Last I heard he was living large in Florida.... avoiding state income tax, you know.
     
    #73     Jan 19, 2018
    volpri likes this.
  4. volpri

    volpri

    #74     Jan 19, 2018
    Simples likes this.
  5. volpri

    volpri

    "Whatever the majority of educators say do; then due diligence to do the exact opposite, at the right time of course" quote by ME
     
    #75     Jan 19, 2018
  6. ironchef

    ironchef

    But but.. Everyone said scaling into or averaging down is a loser's game.
     
    #76     Jan 19, 2018
  7. ironchef

    ironchef

    #77     Jan 19, 2018
  8. Sprout

    Sprout


    Yeah, well, that girl in the train station after she ditched you approached me and chatting me up. After getting a text, her plans changed and she invited me to hangout.

    I really didn’t have an interest in an imaginary girl but she was alluring and even mentioned she was dumping her boyfriend for missing his train.

    I had to go, but only after she insisted on making plans and getting my digits.

    She says, “I don’t understand. We just met. Why I’m so turned on around you!!? I don’t even know your name!”

    I reply, “sorry, I don’t give out my name to pre-stalkers.”

    Her, “Stop teasing me!”

    After some playful banter, I relented,

    “Some call me bean.

    bean there, done that, got the t-shirt, and gave it to goodwill. Now go back to your boyfriend, I’m sure he’s a really nice guy, even though he misses the train sometimes, he’s just misunderstood.”
     
    #78     Jan 20, 2018
  9. schweiz

    schweiz

    I personally know 2 persons who lost each over 10 million$ ( yes ten million dollars). One in futures S&P, and the other one in Forex. They were both "specialized" in averaging down.

    The one in the S&P sold 210 contracts at 250$ a point at 495 in 1995. In 1994 he made more than 1 million profit. When things went wrong he waited till the market retraced and averaged down. But in 1995 it didn't retrace anymore at all. After lots of margin calls his account got wiped out completely. He was lucky because he still had some 3 million on another account that he used for living.

    The second one got harmed with a position in Australian dollars that went wrong. The bank closed his position when his account was almost at zero. He was not so lucky, he lost all he had (inherited) and is selling textile now.

    They both know what it means when they speak about "catching the mother of all losses".
     
    #79     Jan 20, 2018
  10. volpri

    volpri

    Ok bean. A Few live calls using the hersey bar method will clear anything up for the girls in question. The pretty one and the fat lady singing the last song of the concert.

    Since you have bean there and done that should be old school for you. Next trading session might be a good time to demostrate for all the Elite and not so Elite traders.
     
    #80     Jan 20, 2018
    themickey likes this.