AVERAGING down/up = success?

Discussion in 'Risk Management' started by buybig, Feb 15, 2009.

  1. oraclewizard77

    oraclewizard77 Moderator

    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.
     
    #61     Apr 25, 2011