Never add to a losing position?

Discussion in 'Trading' started by Free Thinker, Feb 23, 2010.

  1. achilles28

    achilles28

    That's a ~reverse martingale. Double up after each consecutive loss.

    Not a good idea. Demo it. I imagine it'll generate longer equity growth with patches of severe drawdown.

    When entries are the problem, work on entries. Market is technical in the short term. Look for logical areas of support/resistence/fib confluence, multi-time frames, use price action, sell on pullbacks, buy on dips, use trader vic setups. Cut losses short and take another stab at the next window.

    Contemplating averaging down means you can't short-term trade. Learn that, instead of gambling account equity praying for rain. My 2 cents.
     
    #51     Feb 26, 2010
  2. Reverse Martingale? That is a Martingale...... .....??

    TINS
     
    #52     Feb 26, 2010
  3. lol. you really think hedge fund managers like eddie lambert sell their positions if it goes against them a little?
     
    #53     Feb 26, 2010
  4. achilles28

    achilles28

    You're not Eddie Lambert. :D
     
    #54     Feb 26, 2010
  5. this whole thread is about how the best hedge fund managers operate. the evidence seems to show they do not operate as you suggested. many do add to losing positions. maybe you could learn something from them. just my 2 cents.
     
    #55     Feb 26, 2010
  6. achilles28

    achilles28

    When i've got 9 zeros on my account, yea I probably could. Until then, it's just boring reversals and pullbacks for me. Cheers.
     
    #56     Feb 26, 2010
  7. It's Eddie LamPert, with a "P". And where did that come from? Achilles28 didn't mention anything about Eddie Lampert or closing a position if it goes a little against you. You can't just stuff that into someone else's mouth.

    Now is this nonsense? You tell me!
     
    #57     Feb 26, 2010
  8. "Cut losses short and take another stab at the next window. "

    are your glasses fogged up?
     
    #58     Feb 26, 2010
  9. Cutting losses short doesn't necessary mean closing the position when it goes against you by little. There is a HUGE difference.

    Stop making stuffs up. If you are unclear of something, all you have to do is ask.
     
    #59     Feb 26, 2010
  10. Exactly. these eliters simply seem not to understand.

    Keep up the good work!

    TINS
     
    #60     Feb 26, 2010