Averaging a loser? What`s to like? The correct way to approach this is to add the second unit after the first unit shows a profit, which is how a winner scales into a winning trade. With regards to the trade that was posted, I could see one entering the 1st unit at 1202,25, but then not add anything until that unit shows a profit. Alternatively, one could add the 1st unit at 1194,50 and then add the second on a rising market. Only losers average losers. Don`t forget.
When predetermined like that, isnt he scaling in the trade with predefined risk and everything? Just saying... FoN
Any trade can become a loser, regardless of one's trading style. So how do you know this one will be? If I don't know the outcome, what makes you think you or any one else does?
Good Morning! Gold is now sitting on the 200SMA on daily chart! I have a short at 1218.25 since last night, but not sure how the market will react today. It seems to me that lack of a decent pullback might pull the ES lower after the open. Will hold the short for a bit