Averaging when already In the RED....
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thread: Averaging when already In the RED....

  1. #1

    Averaging when already In the RED....

    Hello Men,

    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?

    Leon

  2. #2
    Hi Guys,

    Im starting this thread for a disscusion on whats refered to as'Averaging down' (I presume ). I understand that this Is frequently looked down as a bad move, but with the arrival of FTI there seems to be very afew practising it and I have suspicions that some senior members additionally Emlploy It in to their trading plans.

    I averaged down In my way which I tested From the Journal section of this site, and although I did very nicely became obsessed with analyzing It way so have since analyzed It onto a forex simulator and have been undergoing similar...
    I call it Scaling In Yes; I really do utilze it BUT:
    I'd like to think I have a Reason to Believe I am on the right side of the fence until I do this.

  3. #3
    Junior Member virr.exc's Avatar
    27
    1 Attachment(s) I'm no specialist, but this man reportedly made a few quid.

  4. #4
    Junior Member Danichesa's Avatar
    24
    In addition, I use it and have success with it. Although I am in line together and utilize it as an scaling in approach. I put higher priority on managing the transaction than the actual entry.

    Trade Well. .
    Brent



    Hi Guys,

    Im starting this thread for a disscusion on whats refered to as'Averaging down' (I think). I understand that this Is often looked down as a bad move, but with the arrival of FTI there seems to be very afew practising it and that I have suspicions that some senior associates additionally Emlploy It in to their trading plans.

    I averaged down In my way that I examined In the Journal section of this website, and although I did very nicely became obsessed with testing It that manner so have since tested It on a Currency Market simulator and have been experiencing similar...

  5. #5
    Junior Member alexandrasanz's Avatar
    23
    I average down in everything is do, even when buying shares, esp in the current climate.

    Heck I typical down and up also.

    More importantly, the risk needs to be clearly underlined. The rest is modus operandi

  6. #6
    I'm no expert, but this man apparently made a few quid.
    I understand this Is the sort of thing Id be in your side of this fence with usually, but I cant argue with the fact that it appears to be working out... for now.

  7. #7
    I love to think that I have a Reason to Believe I am on the right side of the fence before I do this.
    And I wouldnt expect anything less from a respected guy like you...

  8. #8
    I typical down in everything is do, even if buying stocks, esp in the current climate.

    Heck I typical down and up too.

    More importantly, the risk needs to be clearly underlined. The remainder is modus operandi
    Agreed

  9. #9
    I also use it and have success with it. Although I'm consistent with and utilize it as an scaling within strategy. I place higher priority on handling the trade than the real entry.

    Trade Well. .
    Brent
    Can you scale out aswell?

    The reason why I ask Is because If you find entries hard to pinpoint then It will be any easier to choose a fantastic exit.

  10. #10
    A futile hedge is where you've got a position going long in the long run for example, and then take a position brief when you see you can earn a nice short-term retracement commerce, without it impacting your overall position.

    Or is this where you take a commerce going short for example, the market retraces and you then take another place going short again when you believe the market includes a continuation of the first move?

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