The TREND is your friend.. The biggest lie ever!

[murray t turtle]

Murray Turtle, Felix bacharov,Botpro..it's endless and the reason is he is getting paid or is a silent partner...

I am going to say this one last time, keep me out of your Surf alias drama, I have already offered to prove to you that your mistaken..If I have to I will take this to the next level...I fly solo, always have.

RRY-16[7];
Close, actually -part right, but its Murray T turtle ...............................................Nickname not an alias.Don Bright Trading used to have a fit if someone used an alias. I told him Murray T Turtle was a nickname,, NOT an alias!! LOL-LOL

 

[dartmus]

I bought 200 shares AAPL, it declined, I bought 200 more instead of cutting the loss as I usually do, it continued dropping, I bought 200 again, finally I got out with 800 shares.

Are u still using this strategy hurricane_sh?

 

[hurricane_sh]

Are u still using this strategy hurricane_sh?

Go f*uk yourself.

 

[Handle123]

Averaging down works but on a very tight limited basis and great deal of back testing. I do it now in everything I now trade, BUT, you must have low losing percentages, and have to know how to hedge well. I am very very surprised especially in these times where data and computers are available that traders don't use them to discover how to hedge, the billionaire traders have them used in their Trading Plans. Would you let your sixteen son or daughter drive your car without having insurance? That is what hedging is about, but in this case it is not needed for entire trade but so many days after getting in you back testing will show best amount of time to keep long option or debit spreads. I believe I have read that some billionaire traders make more on the options that actually owning or selling short stocks. So many different ways to use options and trading stocks or commodities you either buy/sell/sidelines.

But one has to realize what the long term trend is when averaging down, if you trying to find bottom and was hedged, I would think unless you out of first trade then buy lower again hedged, as trend changes and more added on retracement, get hedged again for short amount days with Debit Put Spread as your insurance, at some area dump long put and keep short puts to try to recoup losses on long. It is see-sawing back and forth with options to keep losses down when trend is your friend but have them make up the losses on stocks when market says too early. I have learned so much more about risk in last few years and now devote most of free time to learning more about trying to control my risk. The way you get very low losing percentages is using insurances and bottom line, you be surprised once you learn how to use them, instead of having thinking you won't make as much profits having something that decays, you will find your bottom line actually increases using them.

 

[i am nobody]

Average down means you entered to early in the trade. So you should not average down but take a better (later) entry. It is better to enter too late then too early. If you enter too late you miss some profits, if you enter too early you collect losses. I prefer less profits above more losses.

 

[Money Trust]

That's kinda sorta why learning how prices move is essential. Anyone who understands market cycles knows that markets trend only about 15% of the time. To understand market structure is to understand how to trade in different environments.

And, when someone says the trend is your friend, what they mean is that when a market is trending, it's best to trade in the direction of the trend. No one ever made the claim that markets are always trending.

 

[hurricane_sh]

Average down means you entered to early in the trade. So you should not average down but take a better (later) entry. It is better to enter too late then too early. If you enter too late you miss some profits, if you enter too early you collect losses. I prefer less profits above more losses.

If you enter too early, you have the chance to get even by average down; if you enter too late, your only option may be cutting losses.

 

[Chris Mac]

If you enter too late you miss some profits, if you enter too early you collect losses. I prefer less profits above more losses.

Pearl of wisdom.
+1

CM

 

[Chris Mac]

If you enter too early, you have the chance to get even by average down; if you enter too late, your only option may be cutting losses.

Average down is for losers.
Being right too early is being wrong.
Listen to pros' advices rather than give your opinion.
You will learn, and maybe you will improve with hard work and discipline.

CM

 

[MarketAddict]

Average down is for losers.
Being right too early is being wrong.
Listen to pros' advices rather than give your opinion.
You will learn, and maybe you will improve with hard work and discipline.

CM

Averaging down isn't for losers.. It's for experience traders with big accounts..