If losers average losers, then I am a loser | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Simple Moving Average Vs. Moving Average? 8 replies

Winners scale winners, losers scale losers 12 replies

A Loser System Wanted 90 replies

Confessions of a Pip Loser 1 reply

Seasoned newbie and professional $$ loser 36 replies

Attachments: If losers average losers, then I am a loser
Exit Attachments

If losers average losers, then I am a loser

  • #1
  • First Post: Aug 4, 2011 9:47pm Aug 4, 2011 9:47pm
Averaging down is how I scale into a position.

Once or twice a day, someone is driving the price to a certain level and then ripping their orders from the market and then jumping in on the reversal. That is market mechanics.

Its a personal preference, as I find that a lot of times I am waiting for just that right moment of reversal, and then miss it initially when it happens. Through averaging down, I see it in hindsight, and then am already holding my position, where I would have wanted it to be.

With fifo, this lets me close my 'worse' positions for a profit first, and leaves my best position running (not that it matters, other than psychologically).

Losers average losers is bullshit.

Losers follow other peoples' advice about trading, that's what it should say.
  • #2
  • Aug 5, 2011 12:12am Aug 5, 2011 12:12am
Quoting RichFWebb
Averaging down is how I scale into a position.

Once or twice a day, someone is driving the price to a certain level and then ripping their orders from the market and then jumping in on the reversal. That is market mechanics.

Its a personal preference, as I find that a lot of times I am waiting for just that right moment of reversal, and then miss it initially when it happens. Through averaging down, I see it in hindsight, and then am already holding my position, where I would have wanted it to be.

With fifo, this lets me close my 'worse'...
I think there is a difference between scaling in and averaging down. Scaling in is okay and averaging down is fatal.
When scaling in you have a predefined exit point for your positions. When averaging down you don't have such a thing and would average down until the market turns or your account is depleted.

Don't know what the fifo rule has to do with it, since that only affects the brokers - not you personally. Your profits and losses will stay the same no matter which rule is used on the broker's end.

cheers
  • #3
  • Aug 5, 2011 12:49am Aug 5, 2011 12:49am
I think it can be specifically useful, scaling in, when price is near several closely grouped s/r levels, as you can kind of feel out how far into s/d price will go.
  • #4
  • Aug 5, 2011 12:51am Aug 5, 2011 12:51am
Quoting RichFWebb
I think it can be specifically useful, scaling in, when price is near several closely grouped s/r levels, as you can kind of feel out how far into s/d price will go.
all depends if your system has a positive expectancy.
  • #5
  • Aug 5, 2011 12:52am Aug 5, 2011 12:52am
Attached Image


Ah not this shit again... thanks Tudor...

This has truly been discussed ad nauseum...

The message is a clear one if not subjected to mental masturbation... have a maximum risk amount in mind when entering a trade and don't talk yourself out of it....

It doesn't matter if you scale or average.... (tudor does these things quite frequently in his infamous vid). The point is to listen to the market when it has proven your trade idea wrong and to take your loss.

Hence the losers average LOSERS

First it has to be a LOSER for losers to average it. So yes if you continue to add to a trade which has went past your maximum risk and/or invalidated your reasoning for taking the trade then yes you are in fact a LOSER
  • #6
  • Aug 5, 2011 12:59am Aug 5, 2011 12:59am
thanks for clearing it up. must have had a mental block.
  • #7
  • Aug 5, 2011 12:59am Aug 5, 2011 12:59am
I don't average except in my carry trade account. However, I'm not one to bash people who average a loser because I don't know what the specific objectives/goals of the other trader are. Nor do I know how much money they are working with or what time horizon they are looking to have their goals met.

Now if you are trying to make a living off trading forex on a week to week basis, then I think averaging in is not the best approach.
  • #8
  • Aug 5, 2011 1:01am Aug 5, 2011 1:01am
I didn't realize the term 'scaling in' existed. Thanks guys. Sorry for the terrible thread lol
  • #9
  • Aug 5, 2011 1:08am Aug 5, 2011 1:08am
Quoting RichFWebb
I didn't realize the term 'scaling in' existed. Thanks guys. Sorry for the terrible thread lol
just goes to show how much research you did before deciding to open a pointless thread. you owe the internet 25c.
Congratulations ScalaFX for coming out of the closet!
  • #10
  • Aug 5, 2011 1:21am Aug 5, 2011 1:21am
Quoting nubcake
just goes to show how much research you did before deciding to open a pointless thread. you owe the internet 25c.
sorry i wasted your precious time, doing nothing, waiting for setups.

just because we all have google now, everyone has an attitude. i like interacting with people. people can get to know me better, and where i'm at as a trader if I share my questions and opinions.

it's called the human experience. you ask questions and learn.
  • #11
  • Last Post: Aug 5, 2011 1:26am Aug 5, 2011 1:26am
Quoting RichFWebb
I didn't realize the term 'scaling in' existed. Thanks guys. Sorry for the terrible thread lol
As long as your risk is fixed, you're good to go. If your initial risk is 3% and you average down staying within your 3% risk, then all is good since you averaged the price within your risk parameter. i.e. scaled in.

Averaging down is risking 3%, prices moves against you so you take another trade at 3%....

Just as an example...
Don't wish it were easier, wish you were better. ~ Jim Rohn
0 traders viewing now