Tell me why averaging down is a bad idea .
- Thread starter joker542
- Start date
Live? Real?
First trade 8 positions....
1. what was your actual over all profit?
2. Where was your SL and total loss if hit.
3. News spike say 5pts beyond SL.so worse case, total loss in that case?
I bet you risked a lot for a very small profit and even a 90% win rate doesnt get you over all profitable.
I have some last minute packing to do and a flight to catch. Will be back around Aug 13 if all goes well. Not sure I will have internet where I am going so I may not post anything until I get back. Nevertheless, here are the stats for the MES and ES trades above. The profit shown is after comm.
The earlier profit was before comm. To scalp successfully you have to have strategies and tactics that facilitate a high win rate. I don't care about what "could" have happened. I care about what did happen. The death of scalpers is greed. I grab what the market gives me. I can always go back in. I don't worry about comm. Brokers have to make money too.
When I get to hotel near airport I may have time to post my thinking as to why I took these trades. Once I am out of the country I may not have internet.
gotta run bye
MES
MES cont....
ES
ES contin….
The earlier profit was before comm. To scalp successfully you have to have strategies and tactics that facilitate a high win rate. I don't care about what "could" have happened. I care about what did happen. The death of scalpers is greed. I grab what the market gives me. I can always go back in. I don't worry about comm. Brokers have to make money too.
When I get to hotel near airport I may have time to post my thinking as to why I took these trades. Once I am out of the country I may not have internet.
gotta run bye
MES
MES cont....
ES
ES contin….
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In Honduras... had a little internet today. Here is an example of scalping MES (micro ES) in night session..averaging down...taking what the market gives...not being greedy...all in a few hours. More could have been made but I went out to eat supper and after getting back traded some more. This is clearing after comm over 200.00 on one micro. The red are short entries magenta covering. Green are long entries brown exiting longs. Lines connect entries averaging down and go to exits of averaged down positions.
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It is not always bad to average down. I would recommend this strategy only for the long term investors. For day traders to benefit out of averaging down, the market has to be really volatile. But be careful about the market conditions, before you average down.
