So, what happened to your "Short" Oz / USD. and Pounds? Did you get pounded? I can barely watch. I know, not a happy ending to be on the other side of the trade, guess the kangaroo won this battle. And thanks very much I bought the koala.
Yep, he picked a bottom......only thing was he bet the wrong way by nearly 500 pips so far! He's probably keeping a low profile hoping the thing will turn around :eek: Two and a half months and he's down 150 pips overall, what a total waste of time....
I have been getting whipsawed by the GBP/USD lately, anyway looking to jump on a short if market reverses to the downside. My long would have worked out if I did not get stopped out. I almost think it may be better to average down once if you get direction right instead of taking standard stops right now. If trade does not get filled, looking for continued weakness in USD, and will look to try to go long again in next couple days.
'Average down', I prefer to call it 'scale in' I agree, it's unrealistic to try and pinpoint a price most of the time, there's no harm in getting in and out at a few different levels as long as risk remains the same overall, it makes more sense than having a rigid entry/stop/limit in my opinion.
Right now things are looking pretty quiet and dangerously ranging... I think EURUSD will pull back from 1.49 but waiting for some ugliness before taking a short pos - after all it might thunder ahead to 1.50.
I personally don't recommend average down your position. People say it's a money management tactic, but i say it's draining your capital. How would you know if this thing will pull back to your break even / profitability level.? What you should be looking for in trades are small losses and look for break even, small wins and big wins. Capital preservation is a must my friend.
And how is capital any less preserved by averaging/scaling in/out of a trade, all you're doing is being more flexible with entries/exits, the risk can be exactly the same. Lateral thinking frd
I don't disagree, risk can be the same depending on your tolerance. But when I am averaging up my position, the risk I am taking is half of the profits I made from my first trade. I won't say it's a risk free. I always long/short on a pullback / pop-up. So this way I minimize my losses. At least it prevents me to blow up my capital. It's a different story when you are averaging down, you are basically adding more to your losing position. Off course it can go in your favor and let's not hope it'll be a disaster.
No, you're still not getting it x% risk is x% risk no matter how you slice it, there's just as much chance of disaster either way. Think about it....if it helps then describe one of your typical trades.