I would like to discuss averaging down

Winners give winners time and room (up to a point) to launch.....

:eek:

 

I hear you, yet other experienced traders strongly disagree, so we got ourselves opposite views.

 

I gurantee you, you keep averaging down and you will finally buy at the bottom.

 

And make good use of opportunity.

 

You may find yourself lacking $1 dollar,before you blow.Why not buy at the bottom without averaging, anyway.

 

This is a tangent, no one is talking about averaging into infinity.

 

You may want to check Oldtime`s post once again.I just replied to his statement.

 

I know just too many assumptions.

#1 You ran out of dollars ? Irrelevant when you have a fixed monetary stop

#2 Being able to tell the bottom is a pretty big assumption

#3 At no point the possibility of averaging down on a short position was even considered, why must it always be against the correct side of the market when samples are provided?

Just some thoughts, I welcome the discussion.

 

if you have a fixed stop on the whole position, it is exactly the same as having a stop on each individual entry. Typically the stop on the first will be very wide, and each subsequent entry will have smaller stops.

The argument against is usually made by traders who are fully margined on every trade and can only take a small loss.

if you post you are long, they will tell you you should have waited for the bottom, when you buy again at the bottom they will tell you now you are wrong because you are averaging losers.

best is just to pretend you are schizophrenic with a multiple person disorder and treat each new entry as a new trade, and keep all the averaging down to yourself so as not to raise their ire or ridicule.

 

True on so many levels.