Hello , I recently read about a trader who likes adding to losing positions , I would appreciate some feedback about this
is it reasonable? dangerous? scary? dumb? profitable?
andrew
is it reasonable? dangerous? scary? dumb? profitable?
andrew
Adding Buy/Sell Arrows to Positions Retrospectively 5 replies
Adding On to Winning Positions 27 replies
Need code for adding positions during trend 0 replies
Adding positions during a trend 5 replies
DislikedYou say this person likes adding to loosers. If so, he/she is a born looser.Ignored
Dislikedok so as far as I understand it is not reasonable to add to a losing position and when a position becomes losing it is only reasonable to wait until the loss reaches a certain point and get out? and what about adding to profitable positions?Ignored
DislikedMicro, I'm not picking on you but when calling someone a loser you should endeavor to spell it correctly. I just thought it was funny.Ignored
DislikedI add to losing position sometime within predefined risk range, but I never enter full risk size on opening position. I guess I'm insane?Ignored
DislikedI think averaging is one of the most intelligent entry techniques.. think about this: you will almost never get a perfect entry.. the market usually drops 10, 50, and sometimes even 100 pips after you open a position, and unfortunately for you.. its against your position most of the time.
I like to cut what a full position is for me in half, and enter half when my strategy calls for it.. and enter the other half after the market pulls back even farther.
notice how im not doubling my position, but averaging in.. there is a huge difference.. if your account can only take on 1 lot at a time, then open 5 minis then another 5 minis... not 1 lot then another lot..
good luck and good tradingIgnored
DislikedI agree with you entirely superdezign. I do this quite often and it plays out to be profitable. If you are capable of understanding where and why price should stall in an area then reverse, then this is a strategy to gain quite a bit more profit than what you normally would have. For example, I had a trade on the Gbp/Jpy that went against my initial trade as I knew it would. I then filtered down to the lower timeframes and found a pinpoint price to enter another in. By the time I would have been at breakeven, I was in profit by around 75 pips. This makes a huge difference in your equity curve when used properly.Ignored
Dislikeddid the same exact thing this week.. on the AUD/JPY, but I was up around 500 pips by the end of the trade versus being down 300 pips.. not to shabbyIgnored