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If this position moves against you then you know your still wrong and you can exit.
RTIgnored
Averaging Down - Is It Really That Bad? 39 replies
'Averaging Down Is for Losers' - valid or not? 27 replies
Fast Averaging versus Slow Averaging 1 reply
Averaging Down with Support & Resistance 12 replies
Martigale and Averaging Down 4 replies
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If this position moves against you then you know your still wrong and you can exit.
RTIgnored
DislikedYes.....trading this way is extremely risky and not for those who rely on 30 pip stop losses....Ignored
DislikedOk then... I've found another flaw in your plan,,, What happens when you're right and you know it and you are holding a couple of losing positions and you can no longer open another position due to leverage restraints... You're position is fked and so is your logic.
Also you will have to decide before you trade how many trades you are going to allow yourself to be able to open and adjust your position size for the worst possible scenario...
Sorry but this whole average thing is just bollox I know a lot of people disagree but it is... By holding...Ignored
DislikedHey Cindy,
It is definitely not my intent to convince you to trade the way I trade...I obviously don't have anything to gain. FF is just a place to share ideas and perspectives.Ignored
DislikedDoes that mean I win?
This poor dead horse is getting a good kicking isn't itIgnored
DislikedForex Factory is an excellent place to pick up a nugget of wisdom here and there. You may not find the ultimate solution to all of your trading woes....but you may pick up a spark somewhere that can take your trading to the next level. You never know!!Ignored
DislikedSomething for me to think about anyway but I can't say I found any nuggets here. Maybe something will click later on but I doubt it. We'll just have to agree to disagree and I will continue making nice profits without averaging.Ignored
DislikedI was comparing the price of someone who goes all in at 4% risk and a guy who averages in at 2% each time... The guy at 4% gets the best price with 4% risk. The guy that averaged in still has 4% risk after the second position but his average price is much worse, so in all the attempts to manage the risk through averaging the overall profit will be smaller and the loss potentially larger... Is it worth it? Does the risk aversion out weigh the lost profits of getting a worse price? If he is prepared to have 4% at risk on that position why do it in...Ignored
DislikedDepending on the current market field, yes, stop sweeps happen all the time, fading them can advantageous. On the opposite end they can be good opportunities to take partials and reload on the pull back.Ignored
DislikedOr what about:
P1 : -500 SL hit -500
P2 : -250 SL hit -250
P3 : -50 SL hit -40
P4 : +300 TP hit +300
P5 : +520 TP hit + 520
Net Position +20 (ignoring spread)
Same thing! That's my only point
CheersIgnored
DislikedI was comparing the price of someone who goes all in at 4% risk and a guy who averages in at 2% each time... The guy at 4% gets the best price with 4% risk. The guy that averaged in still has 4% risk after the second position but his average price is much worse, so in all the attempts to manage the risk through averaging the overall profit will be smaller and the loss potentially larger... Is it worth it? Does the risk aversion out weigh the lost profits of getting a worse price? If he is prepared to have 4% at risk on that position why do it in...Ignored
DislikedIt's possible the career would have been killed more than twice if you did not use averaging down.
If you are now more succesful it could be that you are now simply better at trading and not necessarily because you have stopped averaging down.
Personally, I think 'anything' is better than a direct stop loss in forex.
I have paid dearly sometimes, but I still average down. I'm also getting better at it.
King.Ignored
DislikedI don't know how long you've been trading, but you have to understand that averaging down is a gambling technique, and if you do it you have an inherent gambler's mentality. You may have lucky with it so far, but ultimately you will see gambling style results. All it takes is one losing trade that you absolutely refuse to let go of, to start a chain reaction which will kill your account, or cause enough damage to leave you mentally distraught.Ignored
DislikedAveraging in w/ a high probability set up is a perfect marriage IMO.Ignored