I would like to discuss averaging down

Quote from ammo:

its not a fools game this is how morgan and goldman trade, you've again provided a skewed vision that pigeonholes your mental capacity,i e bollinger bands,nothing wrong with that if its your preference,but if you are wearing blinders,you wont grow and your tool box may come up short as the market changes,for instance, the vanishing return to the mean,just an if..the example says that you selll into a general area rather than a specific price
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Ammo-- I can't even believe you are trying to justify averaging down because "this is how morgan and goldman trade..."

The comparison is so far out of the realm of apples and oranges on a number of levels... least of which we as retail traders don't come remotely close to having the tools that they have at their disposal... tools that can significantly increase their odds of success by averaging down... we as retail traders do not. Of course Goldman and Morgan and a vast number of other firms do it.
 
Quote from riffrafffpatrol:

I have no idea what their actual track record is.

I do know that you can find out for yourself--
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OK - I understand. These guys are great traders because they have a web-site and make lots of calls ... and because you say so. I guess they're so busy printing money via trading that it would be a tremendous burden to keep track of their actual profits or losses for the year. I realize that it's only the losing traders who actually worry about such silly little details. :D Of course, I'm welcome to subscribe and spend my time and money to tabulate their results.
 

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Dustin,

There are some market conditions, particularly certain, instrument timeframe conditions, that merit adding to heat.

However, NSM today was most definitely not one of them.

You had a potential area of resistance in the daily that you could have used to exit any longs, not that you had any as you only did shorts from what I see in your log, and then via a smaller timeframe reverse short upon confirmation on the key area of the daily timeframe.

Why add when you can be precise?
 

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Quote from Dustin:

Fine I'll bite. Here's one trade from this morning. I thought it could be done around 31, but maybe go to 32. How would you have handled the trade?
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OK if my math is correct- your average price is just under 31.08.

This stock made a new all time high. As soon as it breaks the prior high... we have absolutely zero point of reference above on where supply is... it is extremely risky to short stocks at all time highs-- with no pivot point of reference.

The lowest risk is no trade until price establishes a supply level... pulls back.. and then rises to test the new level. You now have a point of reference... a pivot to trada against. In this case the supply pivot was established at 31.32... price retraces 50% then returns to the supply zone-- the high probability trade was 31ish... with a stop above the HOD (whether it be a penny above.. or "wiggle" room of $ .10 or $ .20... whatever it is.. just position size accordingly based on the entry and stop loss distance).

My actual entry would be after the 5min 10:55 EST reversal hanging man candle closed.. a penny below it (31.09ish). My exit would be as price entered the demand zone... which the first level of strong demand where price spent little time at the level and left with strong momentum is the 29.94 pivot doji at 9:45est... the signal for me would be the doji/almost hammer reversal candle on the 5min at 11:55 est.

Your selling average price if I did the math correctly was 30.77.... price hadnt even made its primary move yet.

Our average price is almost identical... however I did with a point of reference and clearly defined risk against where the chart was going to prove me wrong. You had no idea where price was going to stop. And you risked completely skewing your risk to reward profile had price turned on you with only a few hundred shares... yet you figured (assuming you did since you said you do) your max risk on the way up as you added. You are taking on hugh risk.. with limited profit potential. That is extremely high risk and reckless. My entry is full on position-- with about a 3:1 reward/risk... as I place approx $ .20 wiggle room above my pivot in most cases.
 
well there you go Dustin,

first of all you shouldn't have even made the trade

and second of all, if I had made the same trade I would have done it with less risk because I know what is probably going to happen

the fact that you are the only one who made any money off the trade is irrelevent

and besides it doesn't count, because you cheated and averaged down
 
Quote from oldtime:

well there you go Dustin,

first of all you shouldn't have even made the trade

and second of all, if I had made the same trade I would have done it with less risk because I know what is probably going to happen

the fact that you are the only one who made any money off the trade is irrelevent

and besides it doesn't count, because you cheated and averaged down
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Oldtime-- nice sarcasm.

Anyone can make a successful trade.

My first goal is to make a good trade.

My second goal is to make money.

Anyone can make money on a trade... doesn't mean it is a good trade.
 
Quote from Slave2Market:

OK - I understand. These guys are great traders because they have a web-site and make lots of calls ... and because you say so. I guess they're so busy printing money via trading that it would be a tremendous burden to keep track of their actual profits or losses for the year. I realize that it's only the losing traders who actually worry about such silly little details. :D Of course, I'm welcome to subscribe and spend my time and money to tabulate their results.
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Ahhh lovely... more sarcasm. Love it.

This T3 discussion is completely irrelevant.

You win. They don't know what the heck they are doing. They are just salesmen peddling snake oil. Feel better?
 
Quote from riffrafffpatrol:

Please provide an actual trade example like Dustin did... not a hypothetical.
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i've been posting em live on et for years,look em up,please stop bashing averaging with your hypothetical one sided logic, if you don't like it don't trade it,but stop pontificating on that which you know nothing about,hypothetical..blow it out your...
 
Quote from ammo:

i've been posting em live on et for years,look em up,please stop bashing averaging with your hypothetical one sided logic, if you don't like it don't trade it,but stop pontificating on that which you know nothing about,hypothetical..blow it out your...
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ammo... nice class.

I've given you numerous reasons why it doesnt make sense.

All you seem to be able to do is tell me I don't know what I'm talking about.. that's not much to hang your hat on Ammo.

A typical straw man response "been posting em live on et for years.."

How about a recent one that supports your thesis?

Dustin did it-- y cant u?

Better yet-- how about dissecting my analysis of his trade and tell me how what he did helps him and debunks my analysis?

You are taking this personally. Im open for constructive criticism. You havent provided any.
 
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