I disagree, it is fear and lack of confidence in your entry that leads you to be scared of taking a full position.
It depends on the timing, I've seen B1 start with 2 lots and build up, I saw him enter with 20 lots straight away. We all saw him nail a 100 point slide, did we not? And after that 80 all in? Next plan of action: short 1329.75 (other account), Stop 1332, PT 1327.50 (initial position size)
This is incorrect. If a trader has no fear and has full confidence, then a stop need not be placed. Yet everyone places stops. It's prudent trading to start with small trades even if you have confidence. In addition, an arbitrary stop of two points when 2 points has no relation to reaction lows/highs is foolhardy. Stops must be related to the current chart or they are simply noise. Nothing personal there Vol--Most traders share your views. Most traders lose--
My problem with averaging is if your are right about the trade you either only get a portion of the position or you get forced to enter at a worse price while you chase. If you are wrong about the trade, you keep adding to losers and when you finally get stopped out, odds are the trade will reverse and you are not going to dare take the same exact trade after getting your ass spanked from averaging down the first time.
I am looking at the same thing but I'll probably short 1329.50. Support is beginning to gain strenght here at 1330 isn't it.
I've also seen him average short in from 1250-1280 and then get stopped out. Besides his trading can be misleading because he has 2 accounts one, for short term, and one for long term, and from the times that I have read his journal there is often opposite positions in each account which just ends up being a hedge.
If the stops are within the confines of current reaction lows/highs, then yes you will be stopped out and prices will reverse in your direction again.
it depends on your averages, why do you think I am doing a divergence based J? To establish a positive expectation "system" that will enable myself to trade big capital and not go after 1-2 points, but substantially more than that.
So when you start averaging, you must change the stop size constantly if they are based on the chart.