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It doesn't really say that. Let's say you are prepared to risk 1 percent of your equity on a single pair and you break that risk down into three smaller portions of .33% risk each. You're able to average down in a way where you are still only risking 1 percent of your equity total whilst bettering your overall position.:
It's quite different from averaging since many traders do would be an interesting concept in case your system can er to it.
That was the way that I read that, also.:
Nevertheless, I'm still not a huge fan of averaging down. Two reasons, just off the top of my mind:
1. It all effectively achieves (as the name suggests) is the exact same one entry at a mean price. Everything else being equal, then, if you were to simply enter at that typical price, then over a fantastic many trades you'd be better off 50% of this time, and worse off 50% of this time. Hence averaging down may smooth return, over the short term; but over the long run, it does not really provide an edge in itself.
2. Suppose we typical down with 3 lots, entering 1 lot at each of the 3 equally spaced measures:
In the case of a profitable commerce, we will reach profit with 1 lot approx 33 percent of the time; together with two lots, approx 33 percent of the time; and with the entire 3 lots, approx 33 percent of that time.
But in the instance of a losing transaction, we will always get stopped out with the entire 3 lots.
Admittedly about the occasions once we do get the 'triple' entry without being stopped outside, the higher RR of this last additional place stinks for this, but I prefer just one entry. Each to their own, I figure.
Is it really so harmful this e-book?
Thanks.
Yes, if you read it you'll find a margin call.:
So, do not do that.
1,233 accounts Obtained a blow up
LOL. Nice one mate:
Do I need to pay to see it?
I'm not good at using the internet.
I'm learning right now.
My very first post on cliqforex.com
I'm part of a project, funded by the authorities, to support people like me,
I have studying disability, multiple sclerosis, incipient blindness.
If I know to trade, from cliqforex.com (remain on the webpage),
possibly I will ask them for funds.
Just how much you need me to pay for the book?
I can not afford more than $1.5 for today.
Is it feasible to lease it, my older sister asks?
Really? Huh...:
I can't believe someone would actually think that's a Fantastic idea :/
GREAT read. . THKS
Bumped for the new crop of rookies coming in who desires books to read.