Im starting this thread as a disscusion on whats refered to as'Averaging down' (I presume ). I know this is frequently looked down on as a bad move, but with the arrival of FTI that there seems to be quite afew practising it and that I also have suspicions that some senior members also Emlploy It in to their trading strategies.
I averaged down In my way that I examined In the Journal section of this website, and I did very nicely became obsessed with analyzing It way so have since analyzed It onto a Currency Market simulator and have been experiencing similar outcomes.
Today, like anything In trading, averaging down must be done At a planned and risk conscious manor. I see it like that, If my prejudice remains fairly powerful for the original direction then why don't you enter in a better price? And, correct me If Im wrong in my assumption, however the additional price moves the more likely It is due to retrace(atleast a bit ), and If that doesnt happen, then you always have your pre-determined stop price to take you from this transaction gone wrong.
Does anyone else here regularly trade In this manner?
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