What a stupid study

[wxytrader]

Who in their right mind buys and holds without averaging down? An entire study and analysis about the study is done and nobody in the room has the sense to mention that? Using stop losses is straight up gambling. All the video does is praise stop losses for saving the trader from bad entries. It's like driving blindfolded and then praising the seatbelt for saving you when you wreck.

 

[maxinger]

If
BUY and HOLD with no STOP and
BUY more and HOLD with no STOP and
BUY even more and HOLD with no STOP

works for you, then congrats to you.

You have found the holy grail !!!

 

[Q.E.D.]

Who in their right mind buys and holds without averaging down? An entire study and analysis about the study is done and nobody in the room has the sense to mention that? Using stop losses is straight up gambling. All the video does is praise stop losses for saving the trader from bad entries. It's like driving blindfolded and then praising the seatbelt for saving you when you wreck.

I have not watched the video, but just so your trading ignorance doesn't go unanswered:
1. Averaging down is a losing strategy;
2. Trading without some type of stop-loss methodology, is guaranteed to remove one's trading capital.

The above are not quite a priori, but based on how free markets work for thousands of years. Yes, thousands, and certainly since organized exchanges.

It sounds like you have had success ignoring the above -- as opposed to the world of successful traders, whom have remained so by following those parameters.

Have you read Nassim Taleb's BLACK SWAN? Suggest you (others) read, especially the epistemological / philosophical aspects.

 

[Begbie00]

Who in their right mind buys and holds without averaging down? An entire study and analysis about the study is done and nobody in the room has the sense to mention that? Using stop losses is straight up gambling. All the video does is praise stop losses for saving the trader from bad entries. It's like driving blindfolded and then praising the seatbelt for saving you when you wreck.

Yikes.

It's the stop loss that tells you you may have a blindfold on in the first place, and you should pull over and take it off first before you get back on the road.

 

[newwurldmn]

I have not watched the video, but just so your trading ignorance doesn't go unanswered:
1. Averaging down is a losing strategy;
2. Trading without some type of stop-loss methodology, is guaranteed to remove one's trading capital.

The above are not quite a priori, but based on how free markets work for thousands of years. Yes, thousands, and certainly since organized exchanges.

It sounds like you have had success ignoring the above -- as opposed to the world of successful traders, whom have remained so by following those parameters.

Have you read Nassim Taleb's BLACK SWAN? Suggest you (others) read, especially the epistemological / philosophical aspects.

There are literally hundreds of thousands of millionaires and many billionaires who will disagree with #2.

 

[wxytrader]

I have not watched the video, but just so your trading ignorance doesn't go unanswered:
1. Averaging down is a losing strategy;
2. Trading without some type of stop-loss methodology, is guaranteed to remove one's trading capital.

The above are not quite a priori, but based on how free markets work for thousands of years. Yes, thousands, and certainly since organized exchanges.

It sounds like you have had success ignoring the above -- as opposed to the world of successful traders, whom have remained so by following those parameters.

Have you read Nassim Taleb's BLACK SWAN? Suggest you (others) read, especially the epistemological / philosophical aspects.

You are describing the mantra retail is fed to guarantee they lose money.

 

[smallfil]

The argument against stop losses is that you get stopped out because market makers do gun for your stop losses to force you to sell before, they run the stock prices higher. That is life and part of the game. The problem is with hard stop losses, market makers see them or can guess from stock charts where the stop losses are resting. Mental stop losses (requires you have discipline) seems the better approach because market makers do not see your stop losses. Some sell into strength to exit their positions. I have been stopped out even with a trailing stop using ATR to give it room to move. I made smaller profits than, I would had I simply sold into strength. That is something I am seriously, thinking of adopting in my trading. Still, I will not totally, do away with stop losses. Just modify how I use them.

 

[smallfil]

I have not watched the video, but just so your trading ignorance doesn't go unanswered:
1. Averaging down is a losing strategy;
2. Trading without some type of stop-loss methodology, is guaranteed to remove one's trading capital.

The above are not quite a priori, but based on how free markets work for thousands of years. Yes, thousands, and certainly since organized exchanges.

It sounds like you have had success ignoring the above -- as opposed to the world of successful traders, whom have remained so by following those parameters.

Have you read Nassim Taleb's BLACK SWAN? Suggest you (others) read, especially the epistemological / philosophical aspects.

Have done it before and averaging down is the dumbest thing to do. Why add to your losing trades? If you want to add to your positions, add to your winning trades. That is the smarter thing to do.

 

[wxytrader]

Yikes.

It's the stop loss that tells you you may have a blindfold on in the first place, and you should pull over and take it off first before you get back on the road.

See you are looking at it all wrong. The seatbelt is saving you from a wreck that should have been avoided, and the blindfold is telling you, you shouldn't be on the road at all. If you take a trade without legging in, and without an averaging down plan then you are essentially gambling.

 

[taowave]

Not going to watch the video,but when you say Buy and Hold,are you referring to a somewhat diversified portfolio/Index or single names? You are talking Investing,not trading.

When you talk averaging down,I asssume you have a plan based on some prudent money management approach? we arent talking doubling down??

Your analogy is awful and is a by product of living in a massive bull market. What is the longest(time) peak to trough to peak in the last 20 years compared to the longest comparable scenario?

Driving blindfolded ="You dont see it coming" = Massive Bear market
Seat Belt = Stop Loss= Saving you from the wreck..

Simple solution is to Backtest and watch out for survivorship bias.

Who in their right mind buys and holds without averaging down? An entire study and analysis about the study is done and nobody in the room has the sense to mention that? Using stop losses is straight up gambling. All the video does is praise stop losses for saving the trader from bad entries. It's like driving blindfolded and then praising the seatbelt for saving you when you wreck.