Nooooooo .... What are you saying !!! It's just a story!
yes of course it is .....
Lesson learned
- Thread starter trader1974
- Start date
yes of course it is .....
Victor Neiderhopper(His two books) style, he mentions that along with Buzzy Schwartz in Pit Bull.
Personally, for me it go goes like
1) double up
2) and if that doesnt work then go full tilt, ie. use all the free margin available in the account
Going 2,4,8 is showing too much calmness
90% of losses like this is self-inflicted. September 2020 was my worst month. I was making monies January 2020 up until July 2020. In September 2020, I gave up $5,000 in profits. Now, if I stuck to my stop losses, I would have lost $2,000 instead, which would have been fine. You shake it off and move on. No sense crying over spilt milk.
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I have found that making a second entry is fine. Three .... Three is already a lot.
You have to watch.
You have to watch.
The second entry (if it's adding to a loser) just reenforces a bad habit.
Add only to winners, dump losers (easier said than done).
That's the way my algo does it, and the algo/cpu doesnt have a problem doing it that way.
The dangers of averaging down without a hard give up SL in place!
I don’t know where that traders long entry was at on the chart or his averaged down points were at, but I see plenty of give up points, places where he should have dumped it, doubled up and went short. Apparently he didn’t have the discipline to do so.
I average down on probably between 1/3 and 1/2 of my trades But it is of prime importance to ALWAYS have a hard “give up” point SL set in place. If price reaches that point then ones premise is wrong. Take the loss, double up or triple up and go in the correct direction.
I don’t know where that traders long entry was at on the chart or his averaged down points were at, but I see plenty of give up points, places where he should have dumped it, doubled up and went short. Apparently he didn’t have the discipline to do so.
I average down on probably between 1/3 and 1/2 of my trades But it is of prime importance to ALWAYS have a hard “give up” point SL set in place. If price reaches that point then ones premise is wrong. Take the loss, double up or triple up and go in the correct direction.
I rarely add to winners but then I am a scalper. Sometimes I do add to winners if a good move is unfolding but in the world of scalping (1 to 8 points as I define it) adding to winners can see me underwater very quickly as price gives me 4 points and instead of taking it I add more and then it whips back to 2 points under my original entry. So I am down 2 points on entry 1, and 6 points on entry 2. Ouch! If trading large size.
I guess I have an advantage... I've never made any money trading.
And if I ever did, I think it would be luck just as often as skill.
And if I ever did, I think it would be luck just as often as skill.