Adding to a losing position..right or wrong?

Quote from Fast_Trader:

I think if I were playing with a few million dollars, averaging in would be the best way to trade.

-FastTrader
More...
Well in that case you would be scaling in, which is a pre-determined strategy as you just stated in other words. This is one way that deep-pocket commodity traders enter in to positions.

But scaling in and averaging are different. Averaging is usually a knee-jerk response to a blown or absent stoploss. The trader averaging is usually just looking to improve the breakeven point.
 
Sorry, I meant scaling-in...just wasn't sure of the exact terminology. Averaging in as a knee-jerk response would be a bad idea IMHO. But if it is part of the plan, and anticipated, that's a different story.

-FastTrader
 
Quote from EqtTrdr:

I am refering to futures ES and NQ contracts in this thread but I guess it can be applied to stocks as well.

As a rule I never add to losing positions, but actually try to add to winners. I am able to do this for all time frames except for scalping for obvious reasons...

However,

I only know 5 profitable traders..( I am not one of them) all who trade futures..
ALL 5 ADD to losing positions.. averaging up or down depending on direction of trade...

ALL 5 are profitable..

I just dont see how its possible. Take today for example, every time you added to a short position the market kept going up against you, they all averaged up on their shorts on ES and NQ. They all are holding who knows how many contracts open saying the market will pull back tomorrow...

But what if they gap it up first and you are down -20pts on 50 contracts..(ouch)

just looking for opinions...
More...

WRONG!!
 
Oh, I forgot what thread I'm in. It's like disneyland, but far more boring and aesthetically austere, but disneyland isn't at all austere, and I don't have a good witticism for this post.


Hi Baruch,
Enlighten me.
 
You must log in or register to reply here.
Back
Top