I would like to discuss averaging down

Discussion in 'Risk Management' started by Daring, Sep 1, 2012.

  1. Is the market random all the time?
     
    #281     Sep 22, 2012
  2. Ok- describe where you have done it strategically using a detailed real world example please.
     
    #282     Sep 22, 2012
  3. I don't think so. Over time, the averaging costs would probably make quite a difference.

    And that really is the whole difference here. Some have an edge which makes averaging down not only useless but costly. Others have strategies which require averaging down.

    So if I told you how I trade, you would scratch your head and say, "Well maybe. But the only way I can see that working would be to average down."

    I say it is a bitch when you put it on and it takes off before you can get a full load on, but really, I can make very good money on one unit if it goes my way. For instance, the last three trades in four days did exactly that, and I started them with one unit and ended with one unit. 2 of them hit my target and the other one moved so fast and so strong I just took the profit.
     
    #283     Sep 22, 2012
  4. Daring

    Daring

    Perhaps some traders see order where others see chaos ?
     
    #284     Sep 22, 2012
  5. that's the first sign. You start seeing patterns in charts. It goes downhill from there. More money has been lost trading support and resistance than was ever lost averaging down.
     
    #285     Sep 22, 2012
  6. Daring

    Daring

    Aside from adding and substracting to your positions what else do you use t basis you trades, any other indicators or fundamental analysis ?
     
    #286     Sep 22, 2012
  7. What you have said is interesting.

    Why is what you have said true?
     
    #287     Sep 22, 2012
  8. Look - most of what oldtime says keeps him in the running for absurd hyperbole poster boy -- this latest post being no exception.
     
    #288     Sep 22, 2012
  9. Just think of the profit you would generate if you actually had confidence in your entries to put a full position on.
     
    #289     Sep 22, 2012
  10. ammo

    ammo

    you've passed judgement so far on the no mortgage guy,oldtimer,averaging as a trading style..that's just off the top of my head,..what stratosphere are you residing in,and why are you mingling with the peasants,are you an empirical worshipped being somewhere
     
    #290     Sep 22, 2012