Thanks for the book share. Looking forward to reviewing the material. Does anyone else have any simple, solid resources that would recommend for a newbie?
This E-Book suggests that if you are in a losing position you should Add to that postion and 'Double Down.' THIS WILL GET YOU KILLED!!!!!!!!!!!!!!!! I cannot emphasise it enough. You would do better to buy and read Jason Jankovsky's "Trading Rules that Work."
Ignored
It doesn't really say that. Let's say you're willing to risk 1% of your equity on one pair and you break that risk down into three smaller parts of .33% risk each. You can "average down" in a way where you're still only risking 1% of your equity total whilst bettering your overall position.
It's quite different from averaging down as most traders do & is an interesting concept if your system can cater to it.
{quote} It doesn't really say that. Let's say you're willing to risk 1% of your equity on one pair and you break that risk down into three smaller parts of .33% risk each. You can "average down" in a way where you're still only risking 1% of your equity total whilst bettering your overall position. It's quite different from averaging down as most traders do & is an interesting concept if your system can cater to it.
Ignored
That was the way that I read it, also.
Nonetheless, I'm still not a big fan of averaging down. Two reasons, just off the top of my head:
1. All it effectively achieves (as the name implies) is the same a single entry at an average price. Everything else being equal, then, if you were to simply enter at that average price, then over a great many trades you'd be better off 50% of the time, and worse off 50% of the time. Hence averaging down can smooth return, over the short term; but over the long term, it doesn't really provide an edge in itself.
2. Suppose we average down using 3 lots, entering 1 lot at each of the 3 equally spaced steps:
In the case of a profitable trade, we will reach profit with 1 lot approx 33% of the time; with 2 lots, approx 33% of the time; and with the full 3 lots, approx 33% of the time.
But in the case of a losing trade, we will always get stopped out with the full 3 lots.
Admittedly on the occasions when we do get the 'triple' entry without being stopped out, the higher RR of the last added position compensates for this, but I still prefer a single entry. Each to their own, I guess.
do i have to pay to read it?
i'm not good at using the internet.
i'm learning right now.
my first post on forexfactory.com
i'm part of a project, funded by the Government, to support people like me,
i have learning disability, multiple sclerosis, incipient blindness.
if i learn to trade, from forexfactory.com (stay on the page),
maybe i will ask them for funds.
how much you want me to pay for the book?
i can't afford more than $1.5 for now.
is it possible to rent it, my older sister asks?
This E-Book suggests that if you are in a losing position you should Add to that postion and 'Double Down.' THIS WILL GET YOU KILLED!!!!!!!!!!!!!!!! I cannot emphasise it enough. You would do better to buy and read Jason Jankovsky's "Trading Rules that Work."
Ignored
Really? Huh...
I can't believe someone would actually think that's a good idea :/
