Disliked{quote} Theoretically, averaging down is never optimal in hindsight, but neither is averaging in. Buying full lots at the lowest price and closing them out fully at the highest price is optimal. THAT IS MATH. But as I've tried to stress, analyzing the market in hindsight is a fruitless, irrelevant exercise, and many traders despite their best efforts do have to deal with non-mathematical risks, e.g. emotions and feelings, that may be just as important as money management, if not more so. Losers hype up market cliches. -SmittensIgnored
why is everyone so afraid to average down?
- #202
- Last Post: Mar 30, 2014 5:39pm Mar 30, 2014 5:39pm
I don't think people are afraid to average down. I see it often, every time I add to a winner someone is on the other side, no doubt averaging down. 
Seriously though, I like how I can build a long term possy into a position size I couldn't have hoped for at the outset, simply by adding on at "worse" prices.
The best place to add on is to look at a chart and ask yourself, where would people average down?... Where "should" they be cutting their losses (but not)...
Seriously though, I like how I can build a long term possy into a position size I couldn't have hoped for at the outset, simply by adding on at "worse" prices.
The best place to add on is to look at a chart and ask yourself, where would people average down?... Where "should" they be cutting their losses (but not)...