In the event of a double dip..... how to I trade? before the march rally i was waiting for my stocks to go down futher before I bought. In the end kept rationalizing to myself that it would go down futher in march so I didn't buy . Average down or how to guage the price to buy etc? Assuming a double dip.
*sigh*. Why do newbies always have to discover and make the same mistakes en route to learning how to trade? I see at least 3 serious flaws in the OP...
I don't know, Zones, I really don't know. Maybe it's because whenever they ask presumably more experienced players what to do, the answer is too many times along the lines of: "If you don't already know, I can't be of any assistance." Ah, ah?
Trade what? Trade when, exactly - before (ie, guessing it'll happen), during (like that moment last March), or after (like now)?
guys,thanks for not answering anything. Im sure im not the only one who missed out on the march rally. If i made mistakes, please point them out to me, everyone was a newbie once.
who is this? 15 posts? "If you don't already know, I can't be of any assistance." so what, if I already know, I don't need to ask?
Do you swing trade or day trade? If you day trade the big mistake I can see is allowing a directional bias to control your decisions. It comes down to the old addage "trade what you see, not what you think" I am also of the mindset that this market is going to take it on the chin again eventually, but the big thing to watch for is that the market will provide you with plenty of evidence, when it is time to go short. Realistically you probably should not be averaging down much at all, if you are new. When I take a trade i need to take it instantly cause often im jumping in on momentum, the only time I will double down on a position is if there is a strong technical reason to do so, like a double bottom, or the previuos days close(or high/low) serving as support/resistance, or else I double it up as the trade goes for me as opposed to when they go against me. So the only time it makes sense is if there is still a valid reason, when you are starting out often times bias takes control over reason, and you are just looking for any reason to average into a loser, I would not reccomend it until you have a few years of experience. Do not pay attention to all the arseholes on this site, they are just bitter because they are failures, there are plenty of good traders on this site if you pay attention to the right people.