DislikedAs a wrongly timed entrance , just signifys your lack of the ability to pulse the market.
The right protocol, I repeat, would be to either withdraw from the position
with minimal damage.(damage control if you please).
or to commit into the position, as a rescue process and a re-averaging process
for position retreval.
There is no other avenues other than these two options.
If positioning was bad, and the trader reverts back to analysis,
then the whole process collapses into hope.
And a host of subjectivity and egoistical processes begins.
Which will paralyse the traders determination and create illusional thinking.
I hope I articulated clearly.
regardsIgnored
You articulated it quite clearly.
So, when opening a position, you never commit your total position? If your timing is off, then you need to be able to commit more capital to re-average it out and wait for your anticipated move. I assume your money management plan will only allow so much of a loss to accumulate, or am I wrong? I also assume that there is a predefined amount of loss?
If I'm correct in my assumptions, what percentage of the total available capital is used in initiating the position? How is the rest added?
For traders like us, we tend to have fairly straightforward and rigid money management systems. From everything I've read to date by you, an institution has more resources and methods available to them in order to ride out an ill-timed position. Are your risk parameters set in stone, or are they flexible? Do you use thresholds with your risk? I got the sense from your posts that there is a type of flexibility that most of us aren't using. Whether or not we could is another question.
I understand if you don't want to get into such specifics as my questions point towards. I just thought I'd ask.