Tell me why averaging down is a bad idea .

Discussion in 'Trading' started by joker542, Jul 25, 2019.

  1. How about alter his strategy with debt put spread? The loss is limited but winning chance is high since it’s over sold?
     
    #101     Jul 28, 2019
  2. Overnight

    Overnight

    B1S2 is talking about trading psychology, not trading mechanics.
     
    #102     Jul 28, 2019
  3. Overnight

    Overnight

    I missed this from a few days ago, and just wanted to address it...

    Remember early May? I took a big loss by cutting my loss short, because it moved rapidly wrong. When it fell like 150ish points or so, I thought, "buy the dip". So then I bought in a single MNQ instead of a single e-mini.

    It then proceeded to drop another 600(?) points after that. And then, it reversed, and came back into profit like 3 weeks (?) after entry.

    Feb 2018 was an example of a real fast V. Oct 2018 was an example of a slow moving V. So how to determine which V is forming? I thought March 22nd was going to be a month's long V deal so I cut my loss short for like 100 points. But no, it was ONE DAY. Yeah, I cut my loss short, but I just happened to do it at the nadir of the drop. If I had held onto the thing for just one or two more days? Profit! These decisions are very tough, sure.
     
    #103     Jul 28, 2019
    coplii likes this.
  4. tiddlywinks

    tiddlywinks

    Let's see...
    In a period lasting somewhere north of 3 weeks, and an adverse (NQ?) movement of roughly 750 points, the ONLY trade you saw to take was an add? What were you thinking during the first 20,30,50,100 points against you? Oh wait, thats rhetorical... you were thinking and wishing.


    Again thinking and wishing. Where is it written "V" is required? Why would it be a "month long V "deal"? Right, Just 2 more days... nothing like non-acceptance, even now, of your trade, and your (lack of) plan.

    And currently, you are sitting on another multi hundred point adverse position. This time in YM. What were you thinking when it was 20,30,50,100 points against you? You have not learned. But hey, whadaya know, thinking and wishing is scalable across instruments!!

    Maybe change your nick to ON. Overnight is definitely off.
     
    #104     Jul 28, 2019
    coplii likes this.
  5. Overnight

    Overnight

    No, the trade I saw was to close the loser. Then after it dropped a bit more, I went back in long. It's in my journal. I do not recall the exact dates and details.
     
    #105     Jul 28, 2019
  6. bone

    bone

    Relying upon oscillators as a primary trade entry indicator is ruinous.

    Oscillators are fine if the entry can be reliably confirmed with another indicator or rule set that is not an oscillator. But using oscillators in isolation is just begging for trouble.
     
    Last edited: Jul 28, 2019
    #106     Jul 28, 2019
    murray t turtle and coplii like this.
  7. Overnight

    Overnight

    And one more bit, which is a reminder to you, and all others who forgot why I have this nick in the first place...

    It is because my biggest concern has always been, and always will be, the overnight margin required on any trade in futures (Yes, even daytrades. Overnight/initial margin is the king of swinging rules). I plan my trades all around that, which is why I cannot yet trade any decent size to reach my goals.
     
    #107     Jul 28, 2019
  8. tiddlywinks

    tiddlywinks

    Trade-size is not your problem. Unless your intent is to blow out quicker.
     
    #108     Jul 28, 2019
  9. Overnight

    Overnight

    *sighs* Well, you and I have different visions of market swings I suppose.
     
    #109     Jul 28, 2019
  10. tiddlywinks

    tiddlywinks

    Possibly. But all your ballyhoo about YOUR taking significant point losses (to the tune of 100's of points per), which you have peppered inside many related and unrelated threads virtually everyday recently, relays that this is not about a definition.
     
    #110     Jul 28, 2019