Ive read that averaging is generally bad, which is reasonable since the market trends a lot. People add to positions when it goes against them, not when it goes in their favour.
But wouldnt the opposite benefit you? Averaging down instead? Doing the opposite,should according to logick be beneficial. WHich means, that you only close some positions when the market goes against you, and not when it goes in your direction.
Other things that amateurs do is: Small take profit, and they close their positions fast. I cant count how many times ive lost due to this.
SO having a tight sl, and larg tp, should make you instantly profitable.
Noobs buy at the bottom against the trend. You sell at the bottom, with larg tp, and tight sl.
Any comments? Seriously, all these should be profitable. It will generate, many small losses, and few very large profits.
I think everything is because, you adapt yourself to the fact that the market is trending lots of the time. Amateur methods would only do ok in ranging markets. However, they lose because, the market moves more pips when it trends, compared to when it ranges.
where
pipchange in trending market is bigger than: tp in ranging market
this fact explains why amateurs lose.
I think pros already now that large tp is good and tight sl, but now i thought i would explain the reason behind it.
I think the above, where you take into account, price action,techinical levels, and ob/os levels will generate profit.
But wouldnt the opposite benefit you? Averaging down instead? Doing the opposite,should according to logick be beneficial. WHich means, that you only close some positions when the market goes against you, and not when it goes in your direction.
Other things that amateurs do is: Small take profit, and they close their positions fast. I cant count how many times ive lost due to this.
SO having a tight sl, and larg tp, should make you instantly profitable.
Noobs buy at the bottom against the trend. You sell at the bottom, with larg tp, and tight sl.
Any comments? Seriously, all these should be profitable. It will generate, many small losses, and few very large profits.
I think everything is because, you adapt yourself to the fact that the market is trending lots of the time. Amateur methods would only do ok in ranging markets. However, they lose because, the market moves more pips when it trends, compared to when it ranges.
where
pipchange in trending market is bigger than: tp in ranging market
this fact explains why amateurs lose.
I think pros already now that large tp is good and tight sl, but now i thought i would explain the reason behind it.
I think the above, where you take into account, price action,techinical levels, and ob/os levels will generate profit.