taking profits 1 and 2 here hit and filled at 1446 BE stop holding for new highs overnight... great trading today... going to be trading lightly tomorrow due to most likely low volume.
I dunno. This newbie sees the market gapping down tomorrow and then gradually pushing higher towards the end.
Everything works if you know how to use it. Is averaging up any different than averaging down with a plan? I know a trader who leases a system that scales in for $25,000 month. He has a $2million drawdown exposure planned in on every trade, and 8 out of 10 times his $2million is suddenly worth $22 million.
I average down on almost every trade if I can... I like to get my feet wet and if the market gives me a better price then I will take some more. Of course I know what my risk is on every trade and how many contracts to add on at each price. I use a computer to calcuate everything for me so I dont have to touch a thing other then the exits. I agree with avarus.. averaging down with a plan can be extremely successful as long as your risk per trade is the same and you always have your stop on the other side of your zone.
It may work fine on chop days like today, but on trend days if you are wrong you will get killed on the slow grind up or down.
ya thats where people get killed... I wouldnt be against the trend on a trending day because my plan wont allow it. Even if I was my risk would not be any higher.. its just a zone and if it doesnt hold I know I am wrong and get out. Easier said then done for most though.