CateFul,
Simply,what dt is saying is that just because your losing doesn't mean you've lost(you only lose when your stopped out).Therefore,if you haven't lost,placing another position is only giving you an average position closer to current prices and therefore beneficial,provided that it doesn't exceed your maximum risk.
If your total risk is 2% and your stop on your first position is 2%,then you have no business buying/selling in again.
You must break your position up in order to operate this way.
I do this quite regularly and it works well.
dt,if i have misunderstood let me know and all apologies if i have.
I wouldn't want to confuse things,trading is confusing enough as it is.LOL.
Cheers
sk
Simply,what dt is saying is that just because your losing doesn't mean you've lost(you only lose when your stopped out).Therefore,if you haven't lost,placing another position is only giving you an average position closer to current prices and therefore beneficial,provided that it doesn't exceed your maximum risk.
If your total risk is 2% and your stop on your first position is 2%,then you have no business buying/selling in again.
You must break your position up in order to operate this way.
I do this quite regularly and it works well.
dt,if i have misunderstood let me know and all apologies if i have.
I wouldn't want to confuse things,trading is confusing enough as it is.LOL.
Cheers
sk