In averaging into a position, I look at it in a couple ways. 1) I believe in my trade, but am not sure of getting a perfect entry. So I place the 1st contract and see where the market goes. Does it start to go up right away for example if I am long, or does it go against me a little then start to go my way. 2) I made a mistake in my trade, and while I am underwater, I see a spot I would have gone say for example short if I could do it over, but I still have a stop where I want to get out because the market has proven me wrong.