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She wore the pants in that family . . . she was offended that he had to work for a living . . . she got what she deserved.

If you can't pay a $2000 mortgage, you can't pay a $1200 mortgage. That's why.

"Take the GDX example I posted about earlier. Explain to me how I could have known in advance that it would have bottomed just below 16 instead of at 25, where I began purchasing (and my ultimate average cost ended up being around 20). I'm certainly willing to hear if there's something I've...

I think Warren Buffett had a thought experiment in which the market was only open one day a year . . . what would you do? You probably wouldn't scale in . . . It's true that in some situations the waiting is the hardest part, but that's not an excuse for scaling. The "you can't pick tops and...

Does the scaling in help you get a better price? If so, only by averaging down. I'd like to hear somebody defend averaging down . . . I suspect that scaling in is more psychological hedging than a trading strategy.

If a position is worth taking, it's worth taking with a full position. Again, all of your toe-dipping and finger-in-the-winding accomplishes nothing. Think about it this way. If you have ten positions, selling each position is a scaling out, scaling out of your total portfolio. There is no...

Who said anything about picking tops or bottoms?

Interesting. Often people fail to get out of a losing position out of fear of "missing the move" . . . "Man if I take the loss and miss the move, that's doubly painful." Nothing worse than getting stopped out AND missing the move. It's almost a prospective aversion to future regret . . . If...

It's interesting that none of the defenders of scaling in/out as a valuable form of money management are willing to defend it . . . It may be indefensible as anything other than a psychological crutch ("sure my first buy was bad but now I can scale in, spread my risk over time, reduce my cost...

A simpler way of making my point is, don't worry about scaling into your positions . . . in the end it all averages out. And if your initial buys are good - as they should be, otherwise why bother - then scaling in is actually a drag on performance.

No, I'm not advocating buying until you are about to die and then making one massive sell order, to rack up your final score. If that was your question.

Let's say that over your entire trading lifetime you make 10000 buys and 10000 sells. Buys average $35 and sells average $37. Not bad. Let's say another trader makes 2000 buys and sells at the same prices and same total size. Both come out with the same profit. Scaling in is irrelevant, just...

This is a "vacationing in Malawi" market . . . Investors are trying to avoid the next 5% decline and they're going to miss the 50% rally. Unlike in 2008, when a 5% decline was nothing . . . you can't miss the next big rally!

"A traders account balance and statements are comprised of a plethora of averaged up/down transactions." Let's ignore the average up trades for a moment . . . It doesn't matter whether a trade is an average down or not. Each trade is independent . . . just like every coin flip. So it doesn't...

Right. Trend trading is trading the trend. What you're describing is martingale countertrend trading. You can blow smoke about trading the fractal blah blah blah, but you've got a martingale rtm strategy that's basically "this is to high it's going back down and if I'm wrong I'll double down to...

This is a rtm strategy, right? You're betting the "trend" won't continue, right? That's the whole basis of the strategy, not a tangent.

I also take issue with the useless "scale in/out" philosophy. If you scale in and average a $45 price, that's the same as buying once at $45. If you're shooting at a deer, hitting one out of five deer is the same as hitting one deer in five shots. Same thing. Maximizing win rate is irrelevant...

"Assuming a rectangle, make sure your first entry starts above/below the opposite mid side. ie First long, below the mid, first short above the mid." You're trading counter the short term trend . . .

This sounds like the "channeling stocks" ad. Maybe people make money doing that, seems to me like you'd get stuck in a lot of dead stocks. In any case, you'd be trading for dimes and quarters. Ameritrade used to have an Amtd index . . . very informative. Nearly all traders were countertrend...

http://www.dailyfx.com/forex/technical/ssi/table/2010-07-15-1526-US_Dollar_May_Fall_Further.html Looks like most of the wrong-way traders are betting on dollar strength vs. euro and yen and pound.