Who will admit they got slaughtered averaging down today?

hilmy83 said:
What the hell. Why do you just keep letting your positions go to shit like that?
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Because I am still in the throes of a market bounce on the Fed pausing the hikes. When that happens the markets will soar. I thought that is what was happening a month ago when I entered the position. Powell flip-flopped, and we are seeing the effects of that.

I still have plenty of time to counter with a layer in, which I may do if the jobs number comes in soft tomorrow, which will send the market higher.
 
Just checked the YM chart, and these ranges are always so impressive...

1000pointspreadmym.JPG


~1000 points from midnight last night until now. Awesome.

(Green number is high up top on the Y-Axis, red is the low.)
 
No one was slaughtered by averaging down.


Because even the blind can see it was on the downtrend;
the highs got lower and lower and lower.
 
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!
 
Averaging down is fine. If you are an investor with a long time horizon and a steady, depression proof income who diversifies investments into quality securities.

For a short term trade idea, say entering a partial position on a intraday breakout, then after observing a correction towards an apparent S/R zone, it might be reasonable to add there. The add would most certainly be very close to a stop, thus not risking that much more, assuming the position is not going to be held overnight, of course.
 
OMG!!! The ultimate group loss porn! :D No biggie, you all just earned some tax breaks to be applied to your profit. :) Now go make some profit tomorrow!!
 
Overnight said:
I learned last year to not average-down in a rising-rate environment. I got one small position that is down 1200 bux or so with June expiry on the MES. Powell fooled us all with his Economic Forum talk in mid February about dis-inflation, and then backtracked during his Congress testimony. The guy is a scourge.
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Yeah I dunno why he went back and forth like that. First he said there is a bit of disinflation and we can relax the rate increase a bit and then when the other Fed governors all yapped about more rate increases, he's like "yeah yeah I changed my mind. We need to increase the pace of rate increases". Seriously, confidence much?
 
hilmy83 said:
Averaging down is cancer. I've tested it using all kinds of target and final exit permutations, it DOESN'T WORK!
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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.
 
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