Recent content by rparmar70

OK. For long stock/ETF positions this may make sense. I trade only futures (ES/NQ) where the downside is also limitless. :D Given stocks have been so positively correlated lately (and hence I hear that stock picking business is dead), how do you diversify?

Appreciate your observations but IMO trading as a business is about developing good habits, repeatability, and consistency. Averaging down has the potential to destroy one's account, at least undo all the good work behind tens or even hundreds of profitable trades. And I don't need to...

100% agree. And this leads to either quitting very quickly, resulting in death-by-a-thousand-cuts OR brain freeze, resulting in let-the-losses-run!

In my 10 years of trading experience, mainly day/swing trading ES/NQ, I have learnt first hand that both averaging and trading without stops will eventually lead to ruin! But if I have to rank which one is worse, it's indeed averaging! Weeks/months of hard earned money can vanish in one trade...

@fttrdr, thanks for such a great post! You mention "If you are trading with $50 stops you will blow your account. Death by a thousand cuts. Average reasonable risk for one contract is about $500." So, are you saying that average stop for e-mini should be 10 points? What risk/reward do u...