When in trouble, double; are you averaging down (long on stocks)?

Quote from stock_trad3r:

what stocks do you have?
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Index futures (ESU8)
With LOTS of additional cash, to reduce leverage.

And yes, its a long term trade.
 
Quote from crgarcia:

Index futures (ESU8)
With LOTS of additional cash, to reduce leverage.

And yes, its a long term trade.
More...
I'm not sure I'd call a couple of months long term. :)

... and the leverage offered by on a futures contract remains the same regardless of how much cash you have.

Having said that, I've averaged down several times on the ES and they didn't end well. Just when you think it can't go any lower...
 
in the long run, its a guaranteed losing strategy. All it takes is one move that keeps going against you, assuming you keep averaging in as some people do. Will work out the vast majority of the time if you have enough cash, but that one time it doesn't and you are dead.
 
Quote from crgarcia:

??
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When you figure out something write it down.


Pause.


And do the opposite.



You are the George Costanza of trading according to your posting record.
 
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