If price start drop to my stop, didn't hit the stop and comeback and move in my direction( my private pullback..)good chance I will increase the size.
I think you'll find averaging into a winner will be smiled upon here. Would you move your stop if price got near? and then add to your position to average your price in the hope that price will still turn in your favour? That is the conundrum.Potentially save the current trade or respect the stop and live to trade another day. Best advice I got from this thread:Losers are afraid of losses. Shout out to Uncle Sun T.
Again…scale vs average down…these markets have been vertical flushes in both directions post 2009, so you are at a disadvantage if you are continuously waiting for confirmation or chasing…
ive agreed with you on that. scaling into a trade as opposed to pinpointing a level makes sense to me. averaging,in relation to a trade that is currently in the red,is still up for debate.
And thats the problem…Scat made a good post in the swing trading thread that should move this conversation forward…If you are a swing trader, you have to live with the counter moves…These current markets illustrate this point well…Most rallies and pullbacks occur on illiquid vertical moves…oftentimes pre market or pre/post release some econ data…majority get chopped on the in between… So if you are a bull or a bear and you have a signal with a fail safe “out” then every point below or above that out is a buying or selling opportunity
I’m only continuing this conversation because I truly believe that the conventional “wisdom” is so entirely mis applied that its hindered people from moving forward
Dont confuse taking a starter and building your position, with averaging down. There's a big difference between the two.