Hi Guys,
Im starting this thread as a disscusion on whats refered to as 'Averaging down' (I think). I understand that this Is often looked down on as a bad move, but with the coming of FTI there seems to be quite afew practising it and I also have suspicions that some senior members also Emlploy It in to their trading plans.
I averaged down In my method that I tested In the Journal section of this site, and although I did very well became bored with testing It that way so have since tested It on a forex simulator and have been experiencing similar results.
Now, like anything In trading, averaging down needs to be done In a planned and risk aware manor. I see it like this, If my bias Is still reasonably strong for the original direction then why not enter at a better price? And, correct me If Im wrong in my assumption, but the further price moves the more likely It is due to retrace(atleast a little), and If this doesnt happen, then you always have your pre-determined stop price to take you out of the trade gone wrong.
Does anyone else here regularly trade In this way?
Leon
Im starting this thread as a disscusion on whats refered to as 'Averaging down' (I think). I understand that this Is often looked down on as a bad move, but with the coming of FTI there seems to be quite afew practising it and I also have suspicions that some senior members also Emlploy It in to their trading plans.
I averaged down In my method that I tested In the Journal section of this site, and although I did very well became bored with testing It that way so have since tested It on a forex simulator and have been experiencing similar results.
Now, like anything In trading, averaging down needs to be done In a planned and risk aware manor. I see it like this, If my bias Is still reasonably strong for the original direction then why not enter at a better price? And, correct me If Im wrong in my assumption, but the further price moves the more likely It is due to retrace(atleast a little), and If this doesnt happen, then you always have your pre-determined stop price to take you out of the trade gone wrong.
Does anyone else here regularly trade In this way?
Leon
Living the adventure in my head.