Who will admit they got slaughtered averaging down today?

[stochastix]

wonder if the skew is correlated with the dsp frequency on powells microphone, trading is like some noise always over the fuckin horizon, been too foo fucking slow nursing this goddamn neck got another fucking pinched nerve from a fucking disc again not near as bad as thd one a year and a half ago tho

 

[traider]

You have flexibility if you are an options trader. I structured a position when SPY was trading around 400. I would have made money if it went to 420 because of long detas, I would make money if it moves sideways via theta decay. As I type, SPY is below 390. So I just wait a month to buy the shares at 360 which is a support area and will surely rally back to 390. Pretty cool, huh!

Why not structure it so you will benefit from it tanking to 360 in the first place.
Does your option position which is long deltas not lose when SPY tanks

 

[KCalhoun]

Ima buy more UVXY if it keeps going up. Long >3k overnight here. Gap up yay



Call me odd but I like buying uptrends

 

[comagnum]

The daily grind: aggressive risk/trade mgmt, minimal/progressive exposure, leveraging onto profits not the principal.

 

[emulimu]

Why not structure it so you will benefit from it tanking to 360 in the first place.
Does your option position which is long deltas not lose when SPY tanks

Because nobody knows when it tanks, if it tanks. I benefit from two of the three outcomes and in the third outcome, a delayed benefit. My stop loss is in time which is based on SPY’s historic behavior, macroeconomics etc. It all depends on where the juicy premium is and when I buy/sell it, I have to hold it till expiration. Once the SPY moves a few points, the losses are in thousands. I can’t just cut them.

 

[murray t turtle]

I certainly have in the past more than id like to admit.

%%
I WILL admit to cutting a loss on some longs;
but buys briefly below 200dma can work well, so since it did not work \confirmed inverse or sells.
Great quote '' there is a thin blue line between you + danger'' I thought they were noting a 50 dma, mine is blue today\LOL
Actually that ''thin blue line'' article referred to the LVPD;
not that they arrest or stop on a 50dma ignore
Storm knocked my power off, good thing they fixed it by market open.
______________________________________________________

 

[hipster ned]

What the hell. Why do you just keep letting your positions go to shit like that?

There’s plenty of this mind fodder on this site…

 

[hipster ned]

I forgot where I heard it, but some dude like a decade ago kept averaging down on a commodity (copper i think) before finally having to sell at a billion dollar loss or something.

You can’t average down certain instruments. commodities have much longer cycles…people who do “average down” usually do so in tighter windows and with more mean reverting instruments. beating a dead horse really

 

[mervyn]

depends on your account balance, big whales can afford average down.

 

[Overnight]

You can’t average down certain instruments. commodities have much longer cycles…people who do “average down” usually do so in tighter windows and with more mean reverting instruments. beating a dead horse really

You can average down (or up) on any instrument. It's just a term for DCA, and it does not have to be long term. The success rate of that, well that is a different story. But there are ways to layer that DCA across multiple months, which is the same thing. Although, I guess that is how the financial crisis started in the first place. By layering and using more and more leverage. Ooops!