Actually grid trading works too, which is essentially averaging down except you double down (kind of like martinghale) so instead of .1 .1 .1 .1 it's .1 .2 .4 .8 say i want to go short eurusd right now and wanted to establish total net amount of $7 ...

why is everyone so afraid to average down?

ignorance...sigh. how is my account going to be toast when i use stop losses on my average downs?

why is everyone so afraid to average down?

not if you plan your averages before , in a risk averse manner

why is everyone so afraid to average down?

i agree , give trades room, wide stops and smaller lot sizes.

why is everyone so afraid to average down?

AUD and NZD sell off is a result of risk aversion from contagion fears='safe' currencies go up, CHF, dollar etc

Strat's Long Term Stress Free Trading

sigh, same comments, probably not really reading my posts. 'why add to a position if it's losing? accept the loss' because entries are never perfect, if the trades starts to lose off the bat, my reasons for the trade are not necessarily 'wrong' now ...

why is everyone so afraid to average down?

i'm pretty sure spot forex options exist;if not trade currency futures and use options on them. the pip count doesn't matter: by my analysis , BEFORE the trade occurs i set a stop loss, beyonf which i deem myself wrong, trades always go through ...

why is everyone so afraid to average down?

thats what i do as well, i use a multiple of ATR as a hard stop for all the positons, and then spread my three orders ...say every 100 pips further, i will cancel them all once the hard stop is breached. my RRR is often very high, im swing trading ...

why is everyone so afraid to average down?

course though, im swing/position trading to be honest i could just buy a put option when going long instead of doing this (which i plan to do instead, later) and add to winners on dips whether using options or averaging down the good thing is you ...

why is everyone so afraid to average down?

this is why i said, that averaging down as you have, is dumb. do it in a calculated manner- don't keep averaging down forever, i average down 3 times, then that's it, if price keeps heading up and i've shorted (i set a stop loss obviously) i exit ...

why is everyone so afraid to average down?

of course, if i think the market will react to a level well, i'm going to put more risk into it lol, it's just that when say EURUSD is on the rise now, but you think it could collapse...you can average down every 150-200 pips or so

why is everyone so afraid to average down?

longer timeframes+combination of technicals and fundamentals=WIN another thing: calculated averaging down is a win too

AHA moments in your trading career

Contagion fears, stock markets looking volatile.... =risk aversion? dollar=safety and AUD/NZD/GBP are selling across the board,not to mention euro's demise...long dollars please

Identifying Market Swings - Medium and Long Term Trading

the razor is online again! welcome back , have good trading? i had my best demo trade ever with the USDJPY thanks to some principles laid here

Identifying Market Swings - Medium and Long Term Trading

This is why i lke to use fundamentals/economics to determine direction

Higher Highs/ Lows and Lower Highs/ Lows

why not just use protective options?

What's the point of hedging?

razorjack would you say sentiment is also an important part of the 'big picture'? . obviously with the euro PIGS greece etc, france threatening to leave it's all a bit fearful..

Identifying Market Swings - Medium and Long Term Trading

why you guys bring your stop to breakeven so quickly, is truly beyond me .

james16 Chart Thread