Young Trader need advice and mentor(if possible)

However, I would not recommend a novice average down. Only experience can give you the sense if the odds are still in your favor to average down into a loser. Most probally can’t do it well because of the emotions involved. However, to the chagrin of the gurus it can be quite profitable and render a high win rate.
 
NoodleStrudle said:
always was...yet the masses still embrace it for various reasons, some of which is because vendors push that approach, or because of the promise of quick riches (which are in fact non existent).
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yes it is usually the most attractive because you do not need much capital and you really make fast money: but because it is the most attractive it is the most difficult too
 
volpri said:
However, I would not recommend a novice average down. Only experience can give you the sense if the odds are still in your favor to average down into a loser. Most probally can’t do it well because of the emotions involved. However, to the chagrin of the gurus it can be quite profitable and render a high win rate.
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experience is critical
 
Good for you if it works for you. But statistical properties contradict your last claim. The shorter the time frame the more random moves are. In all asset classes. On a micro and millisecond time frame the probability of the next move to be up or down or unchanged is uniformly distributed. That is the basic assumption of every high frequency trading model off which multi billion hft firms are built upon. Just saying.

volpri said:
Well my trades usually last 1 to 3 minutes on average. On occasion I will have a 10 to 15 minute trade but that is not often. So a 2 point scalp on 10 contracts is $1000.00. Do that 8 times a day. Is that quick enough for you? Rich enough? I usually don’t start with 10 contracts but will scale in (i.e. average down) if it moves against me up to 10 contracts providing PA context still looks ok. Or I will scale in if it moves in my favor with “zip”.

I consider a scalp in the ES being 1 to 4 points depending on the sessions volatility. Now granted I usually trade different than most and even if I think I will see a 4 point move I may scalp in and out of that move 3 or 4 times locking in profits and entering on a small PB again at a better price so I may squeeze 7 points out of a 4 point move. Commissions are no problem for me as 1/2 point will pay my RT comm. For me that is better than buying and holding for 4 points. Do the math and see. I take most of my signals off a 5 minute chart but will sometimes dial down to a 1 minute chart for a signal depending on the sessions dynamics. I have a high win rate in part because I am willing to grab 2 points when the market gives it to me and enter again if it continues on or has a small pb then continues. If it appears it is not going to give me 2 to 4 points rather quickly I am happy to grab 1 point and then enter again at a better price.

I am not a vendor but I do believe small moves are easier to anticipate that large moves of say a week or month. Plus, I consider money at risk ONLY when it is in the market. So, by multiple entries and exits during a session my money is only at risk for minutes or seconds at a time as opposed to having it locked it for 2 months.

I realize trading this way does not suite everyone but it does me.
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Averaging down always has a high win rate until the rare event when you will be taken to the cleaner.

volpri said:
However, I would not recommend a novice average down. Only experience can give you the sense if the odds are still in your favor to average down into a loser. Most probally can’t do it well because of the emotions involved. However, to the chagrin of the gurus it can be quite profitable and render a high win rate.
More...
 
Most everyone taking this approach loses money very quickly not makes money. Averaging down is in my book one of the worst approaches to trading. In my many years in professional trading I can confidently claim that there is a strong positive correlation between the seniority and profitability of a trader and the degree of how strongly such trader advises against ever increasing position size on a losing position. There are the rare exceptions but generally adding size on losing positions is a hugely inferior strategy approach

traderGOD said:
yes it is usually the most attractive because you do not need much capital and you really make fast money: but because it is the most attractive it is the most difficult too
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volpri said:
Well my trades usually last 1 to 3 minutes on average. On occasion I will have a 10 to 15 minute trade but that is not often. So a 2 point scalp on 10 contracts is $1000.00. Do that 8 times a day. Is that quick enough for you? Rich enough? I usually don’t start with 10 contracts but will scale in (i.e. average down) if it moves against me up to 10 contracts providing PA context still looks ok. Or I will scale in if it moves in my favor with “zip”.

I consider a scalp in the ES being 1 to 4 points depending on the sessions volatility. Now granted I usually trade different than most and even if I think I will see a 4 point move I may scalp in and out of that move 3 or 4 times locking in profits and entering on a small PB again at a better price so I may squeeze 7 points out of a 4 point move. Commissions are no problem for me as 1/2 point will pay my RT comm. For me that is better than buying and holding for 4 points. Do the math and see. I take most of my signals off a 5 minute chart but will sometimes dial down to a 1 minute chart for a signal depending on the sessions dynamics. I have a high win rate in part because I am willing to grab 2 points when the market gives it to me and enter again if it continues on or has a small pb then continues. If it appears it is not going to give me 2 to 4 points rather quickly I am happy to grab 1 point and then enter again at a better price.

I am not a vendor but I do believe small moves are easier to anticipate that large moves of say a week or month. Plus, I consider money at risk ONLY when it is in the market. So, by multiple entries and exits during a session my money is only at risk for minutes or seconds at a time as opposed to having it locked it for 2 months.

I realize trading this way does not suite everyone but it does me.
More...
And for me, I am amazed at your description - it is exactly my style and conception. Glad to know "I am not the only one".
 
I would say altogether - I have built my system over the years, the system, and set-up of the signals, which I can trust and feel confident when I have to open my trade and then follow it. It took hours over hours of market observation, thousands of sim trade and hundreds of real. Good books and webinars and some life coaching too. Mostly to build psychology, the technical part of trading is really not hard, what is hard is to put it in a field and master it without being distorted by emotions.
 
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