Quote from Picaso:
i.c. fed people,
How are you doing, man? Still holding your position or you bailed out?
I hope you're doing ok, but see, this is why averaging down is a risky game best left to professionals who always have a B plan.
We're down about 24 points under your 1217 average of two units; that is 2 x 24 x 50 USD = 2,400 in the red.
If you had been trading 2 (1+1) e-minis with 12,000 USD, that would mean that last night you would have got a margin call when we touched 1194.
If you had averaged down a third unit - say at 1199 with an average of 1211, you would need 16,500 USD in your account just to avoid a margin call and would be 3,000 USD in the red.
I understand you're trading a much smaller size, if so, good for you, consider this a very valuable lesson that you're learning the kind-of-hard way, but at a very cheap price.
Oh, and this is a very, very, VERY mild correction.
Note: not putting down all averaging-down systems/styles, just saying that you always need a B plan / hard stop.
(but thanks)