Okay, if you're telling me you're just an extremely mentally strong trader. Than I understand. If not I still don't understand because unless you're just randomly buying a contract, than you would be using some type of metric to initially buy the contract... right? some type of edge? EDIT: To be clear I also never said "rely on". I am not talking about randomly averaging down. For further example if you know this is a good place to buy your initial contract and the market dips lower, but no other metric has changed and you add one. That is still averaging down, but I am confused how that makes it bad. If you really have an edge in the markets you're not panicked or upset if price moves against you, you actually want that to happen so you can increase your position size. Now if you were to tell me "My edge is so strong I am precise OR if it goes against me even a little I know I am wrong", if that was the case I still don't understand because if you're THAT accurate wouldn't you just go in a lot heavier. Because if that were true why wouldn't you?
Say you had NO edge, zero clue whatsoever. You have 50/50. A dart board even! Quite simply, the difference between averaging down and averaging up, is that in the latter, you are winning. You are winning prior to the average, and after averaging. Is that not important?
[ Sorry for so many edits in last post. I should of finished it out but I started hit enter than wanted to add a lot. Yes, that is a world of difference in that alone. If we say it's 50/50 and we agree there's no edge when initially buying or at any point. Than I wouldn't try to debate. But that isn't the reality of trading (again unless you're extremely mentally strong where you can do that, even than you would still need some type of measurement to know when to enter or at least when to cut your losses right?) That's all I am saying if you have a measurement for initial buy, adding or getting out of your position if it doesn't go up +10. If any of that is true than I don't see why you're assuming people can't have an edge when averaging down?
I understand, but unless I am misreading or doing a poor job of interpreting what people are saying. It seems most are correlating all averaging down as random or an inherently bad thing to do. Seems I am doing a poor job of explaining that, that isn't always the case.
sorry yes i wasnt taking offence i was joking. i think averaging down might be legit anyway in most of its forms
Quite simply, the difference between averaging down and averaging up, is that in the latter, you are winning. You are winning prior to the average, and after averaging. Is that not important?
Thanks for your time and replies, but you just repeated the same exact question without responding to anything I said. It's actually very odd or if you're trolling, well done you got me. Enjoy your weekend.
I asked a question, you didn't /couldn't answer it. Sometimes it is as simple as acceptance. Enjoy your weekend also!
Sorry but that is just factually incorrect. If you scroll up I did indeed answer your question and than did a follow up behind that.