Because Australia is so big, you need a huge supply for your catheter. I think it is ingenious to put it on a hand-truck, to wheel it in front of you as you "Outback" it!
oh yes because scaling in and holding all of those loss points you are holding for the entire loss! just ot get out a small profi tmakes so much senes. Do this.. look at the max drawdown per trade while its on for teh full position. then see what you made total after fees and slippage for teh entire trade set. you will see it takes just a few bad trades to wipe out equity big time. I used to trade this way. not kidding until i go tired of always making money then losing big. making a lil money and losing big.
It's not something I do nor something I recommend but I know traders who do...and successfully. As in any robust trade plan, stop loss limits need to be strictly defined net of entries along with acceptable scale entry levels. The drawdowns on losing trade have to be weighed against trades saved by the strategy as well as MFE along with other factors. As with any trade plan, it's all about the numbers. The concept is adding to increase the odds of a trade working. Scaling to simply avoid a loss is lethal and may be the single most behavior leading to failure.
I like what you wrote but the problem especially for new traders would be not making a dedined plan between adding to a loser or just exiting. to make a trade work? hmmm
Not @speedo's problem. Nor @volpri's. Certainly not mine, nor should it be yours. But is you want to crusade, why not start a journal of your own and show us how its done?
Implied PB's early entry. There is a reason. Here are some trades taken 1-4-2021 right after the open of RTH's. I am posting 3 views of the same trade. A 5 min chart. A 2 min chart and a 1 min chart. Just look at them and try to figure out what is going on in me making this trade which was a short initial position followed by averaging down (adding to it as it went against me ), twice. Why would I do that? And why would I enter short early on my initial entry before an implied PB was completed on the 5 min chart? I will give more explanation later today. Probably tonight. Right now got other things to do.
And here is what happened in roughly 70 minutes from the open of RTH's. And after my exit. So why didn't I hold for more gain. There are more than one reason: 1) I was collecting pictures to post and annotating so after my exit I was busy doing those things so you would have something to look at! So I was not trading after my exit. 2) Probabilities. Most traders leave out the probability element or factor in individual potential trades to take within a larger context. Especially the opening context. Several scenarios can play out. It is only as price unfolds one can see those scenarios take place. a) In an opening selloff 80% of the time there will be a minor reversal last maybe for 5 bars or so then a continuation of the bear selloff. That percentage drops a bit if there was a gap up opening as in today's PA b) In an opening selloff 50% of the time have a major reversal (in this case a bullish reversal) lasting two or more legs for a good intraday swing. That percentage increase a bit in gap up openings as in today. But there can still be a selloff continuation 40% of the time. c) In an opening selloff if the first reversal is minor (as in this case) then it is likely there will be another leg or two down before a any feasible reversal to the bullish side takes place. To entertain the thought of a bullish reversal I have to see some buying come in. That will be indicated by stronger reversal attempts not minor ones. That is, I want to see more than just a previous minor reversal or two to look at entry on a potential reversal. There were none (i.e. major buying pressure) in todays PA the first 70 minutes. d) In an opening selloff we can get one minor reversal after another that just has trend continuation (in this case bearish trend) This results in a SPBR trend. (Small pullback bear trend). Such a scenario will have multiple entries most of the day on many subsequent implied PB's. So grabbing profits from an initial trade is fine because there will be several more entries after the initial exit. So as a trader I am grabbing profits and seeing what scenario plays out to subsequently make more entries on a reversal move to bullish or a continuation of the bearish move. In this case A and C played out. An we are basically entering D. However, B COULD have played out. So I lock in those profits. Almost immediately after me exiting there were plenty of more short entries to take to entering again short is a viable option. I have to go but will make more comments tonight.