-to those who use calculated averaging down..

Discussion in 'Trading' started by TGpop, Jul 22, 2010.

  1. TGpop


    i'm stuck in a big rut, i understand averaging down in a planned and calculated way is extremely high probability of success, i have the problem of -where to exit?

    among other problems, i would greatly appreciate some help as i am fairly new to trading. i have skype my name is TAjammy if you want to speak to me there

  2. What instrument are you trading?
  3. TGpop


  4. I average into virtually every trade I make. Small initial position, and add by either averaging down or up depending on the price action and other various variables. Flexibility is the key.

    That being said, before I put on a position I always know my "uncle" point before hand. Make sure this "uncle" point is at a reasonable level that won't break you. The biggest mistake people make with averaging down is those who average down into oblivion because they believe that price has to come back eventually, right? Not always.

    Have a plan and know what you will do given various price action scenarios before they happen.
  5. TGpop


    here it comes ' you can't average in currencies'.

    true to an extent, but im saying if it's an uptrend and its oversold ill buy 10% of my position, if it falls more ill buy more and more until it hits my pre defined stop loss
  6. I wasn't going to say that, I trade futures and know better what can be done there. Currency trading I'm not too familiar with.

  7. TGpop


    could you help me with my problem?

    do you average? if so, where do you exit?
  8. All my stuff is based on math, not complex math but actually rather simple math. However finding it took some time. But I ALWAYS adhere to the math, I never try and wing it.

    So to answer your Q, I would work on coming up with precise criteria for, not ONLY avging but also exit points. If currencies are anything like liquid futs, you should be able to find something that works consistently.

  9. TGpop


    hmm i use 10 ATR to average in to
  10. TGpop


    my problem is i don't know where to exit...i average down with multiple targets for each trade, but not sure whether i should just use one target
    #10     Jul 22, 2010