I would like to discuss averaging down

Quote from oldtime:

You think about it a while, and do your tests, but I am pretty sure in the end you will see averaging down without averaging up will get you in the end.
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I agree and meant to comment on this. Everyone has their own style of building positions, but often times with RTM you take some heat then you are back to break even. Typically this is the point where I double up, while the average losing trader would start to cover. So, I completely support averaging winners and losers in different situations.
 
you incorrectly assume the trend will reverse and give you some relief.

pick the wrong black swan and it can be deadly.

retail does this and 95% flush the account over time.
they call it investing.

how many clowns are averaging this one down........:)

long and wrong, elevator down.

-2

et
 

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Quote from oldtime:

I never use stops exept at BE on my winners, but I take losses, sometimes very large losses, much much larger than I ever would have taken when I was using stops.......
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OT,

you are old enuf to know better.

-3

et
 
Quote from Dustin:

I agree and meant to comment on this. Everyone has their own style of building positions, but often times with RTM you take some heat then you are back to break even. Typically this is the point where I double up, while the average losing trader would start to cover. So, I completely support averaging winners and losers in different situations.
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Dustin,

When you add on heat, do you add same size as you had, less or more ?

Thank you once again for sharing your experience.
 
Bad habit,unless you have the buckets of money.If you have deep pockets,you can ave down withing the screen range.A screen range,is all you need.
 
Quote from SatMir:

Bad habit,unless you have the buckets of money.If you have deep pockets,you can ave down withing the screen range.A screen range,is all you need.
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Well a board veteran just testified that without averaging down he would be working at Burger King, and if you did your homework, as I did, Dustin is one of the most illustrious members of this board.

I think there is a difference between averaging down with a max loss in mind and averaging down into infinity, which is precisely what Dustin stated.

Like I posted on the beginning of this thread, one of the worst aspect of trading, at least for me, is when price goes into chop mode, this kills traders using fixed small stops, and especially with low volatiity, chop is more present than ever, this is something averaging down takes care of.

Obviously, a good knowledge of market structure is required to average down correctly, and according to experienced traders statements, the ability to average up correctly once things go your way, instead of taking profits is also imperative and no less important.

I got a lot to study, but I am grateful these people are pointing me in the right direction.

Once again, feeling comfortable with your trading style is important to perform with peace of mind. Frankly, I'm just tired of getting stopped over and over again because price became directionless, getting stopped when you not even wrong on direction, is a sin, except for brokers of course, so just trying to adapt a trading style that is compatible with myself, while becoming consistently profitable.

Just trying here, just trying.
 
Quote from Daring:

Well a board veteran just testified that without averaging down he would be working at Burger King, and if you did your homework, as I did, Dustin is one of the most illustrious members of this board.

I think there is a difference between averaging down with a max loss in mind and averaging down into infinity, which is precisely what Dustin stated.

Like I posted on the beginning of this thread, one of the worst aspect of trading, at least for me, is when price goes into chop mode, this kills traders using fixed small stops, and especially with low volatiity, chop is more present than ever, this is something averaging down takes care of.

Obviously, a good knowledge of market structure is required to average down correctly, and according to experienced traders statements, the the ability to average up correctly once things go your way, instead of taking profits is also imperative.

I got a lot to study, but I am grateful these people are pointing me in the right direction.

Once again, feeling comfortable with your trading style is important to perform with peace of mind. Frankly, I'm just tired of getting stopped over and over again because price became directionless, getting stopped when you not even wrong on direction, is a sin, except for brokers of course, so just trying to adapt a trading style that is compatible with myself, while becoming consistently profitable.

Just trying here, just trying.
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There is no other solution except the correct one,never mind the samples and trials,and experiments.The fact you do not willing to take stops,doesnt mean you have to ave down.Don`t fool yourself,you`ll blow up even faster this way.Or you can try and crack the correct way.The choice isn`t that big.
 
Quote from Daring:

Well a board veteran just testified that without averaging down he would be working at Burger King, and if you did your homework, as I did, Dustin is one of the most illustrious members of this board.


Just trying here, just trying.
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just because one gets a positive expectancy from a random selection of trading vehicles does not mean it is correct.

once established, bad habits are even harder to break.

another retail long side fav.

buy them all at zero.

-4

es
 

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Quote from eurotrasher:

just because one gets a positive expectancy from a random selection of trading vehicles does not mean it is correct.

once established, bad habits are even harder to break.

another retail long side fav.

buy them at zero.

-4

es
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I don't think see how your example has any relevance.

No technical analysis applied, you implying there was not a maximum monetary stop loss and you are assuming everything would be purely position management, in this case, averaging down.

What if you read into the RIMM downtrend, and the averaging down was applied from the short side?

Sorry but you are totally off base here.
 
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