Averaging IN (not Averaging Down)

ironchef said:
Not too many of us have Soros' and CIS's capabilities. For a small mom and pop retail, how can I determine if I should trade like Soros or B1S2? And how do I test/backtest the two hypotheses?

Not trying to argue but trying to understand.
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One way, Ironchef, you can trade like Mr Soros; do what he calls ''a real time experiment'' That is trade/invest, + make a profit, but have a plan if your real time experiment fails to make a profit.:cool::cool:
 
Newc2 said:
After looking back at many of my frustrating trades where they were killed not long after entry, I have come to the conclusion that averaging in is the best way to minimize the effect of market noise while also skewing reward to risk in my favor.

Does anybody have experience with this as I really think the benefits here also extend to helping one's trading mindset? Instead of looking to book profits asap, a trader scaling in is looking to add to a winning trade so the mind is set up correctly from the outset.

Thanks to @tomorton for ringing a bell in my mind to look into this.
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Can work well;
dont take all year to do it + have excess profit killing commissions. Still need to allow for DAL GM ...... hitting $0.00.And when the major trend changes///not real often; good way to get killed. Helpful within those limits.:cool::cool:
 
murray t turtle said:
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Can work well;
dont take all year to do it + have excess profit killing commissions. Still need to allow for DAL GM ...... hitting $0.00.And when the major trend changes///not real often; good way to get killed. Helpful within those limits.:cool::cool:
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my problem was that i was taking on too much risk without realizing it.
If Apple got hit then my Google holding would too etc.
My risk per trade was fine but portfolio risk was not.

So now i use open profits to give me the go ahead to take the next position. If it all moves against me after in profit then it's only profit that i'm losing (and not my initial capital).

Also the added benefit is that i can choose the best stock that meets my criteria and only focus on that. These are both beneficial too
 
Newc2 said:
my problem was that i was taking on too much risk without realizing it.
If Apple got hit then my Google holding would too etc.
My risk per trade was fine but portfolio risk was not.

So now i use open profits to give me the go ahead to take the next position. If it all moves against me after in profit then it's only profit that i'm losing (and not my initial capital).

Also the added benefit is that i can choose the best stock that meets my criteria and only focus on that. These are both beneficial too
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Most fund managers average in;
really have to. I even like to average my gasoline buys for my 4 cyl HMC ,LOL. I know of a fund manager who loaded the boat [fund]with 20% AAPL, 2011 or 2012; that IS way to big a %% for most all. But good tech stock...:cool::cool:
 
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