Going to hold GOLD short over the weekend. The research, info and system indicates that selling is about to commence. Of course, nothing is 100% but confidence/odds is high on a sell off. Enjoy! Surf
You have a point my jockey friend. However, with proper position sizing-- a disaster is highly unlikely. Have a great weekend!
I guess I have seen too many guys taken out on stretchers adding to losing positions. Have a great weekend as well.............
One way to think about adding to a trade that has moved against the original position is as follows: -Each entry is essentially a different sub-system. If each entry level tests out as a viable strategy component independent of the others, there is no inherent reason not to take additional entries. In this framework it is not correct to simply call it, "adding to a loser". -The risk comes because exposure is being increased while equity is decreasing. This can be managed by trading with a conservative amount of leverage and other methods, and having additional exit criteria to get away from bad trades. I think many people get queazy when they see this being done because they think of "doubling up" to "make it back" which has put many traders out of business. The point is this is not necessarily the mindset or approach that is being used. Managing equity exposure to forward expectation is always a balancing act. Whatever means one has to increase exposure when expectation is highest, will likely lead to better results, so long as total risk is monitored and a back up plan to preserve capital exists (And that backup plan does not mitigate or offset the use of increased exposure when it is necessary.)