Thread: why is everyone so afraid to average down?

I wonder why people put so much emphasis on entrance' the market's likely to bounce off this pip, I know!'

What is wrong with establishing a sum per pip, then adding to standing, winner or failure until it gets there.

Take now I shorted the eurusd, at 1/3 of my total position size, if it climbs some more (X pips) I'll add yet another 1/3 etc..

Identical with winners, so I will advertisements to them on down the way...

typical averaging down is silly, as in, buying support, it cracks and you also add some more: has to be planned.

However everybody is so afraid to admit they aren't ideal on entry/exit is past me

ps this is largely for swing trading

Originally Posted by ;

quote Theoretically, averaging down is not optimal in hindsight, but neither is contained in. Buying complete lots in the lowest price and shutting them out fully in the highest price is best. THAT IS MATH. But as I've tried to stress, assessing the market in hindsight is a fruitless, insignificant exercise, and lots of traders despite their best efforts do need to deal with non-mathematical risks, e.g. feelings and emotions, that might be equally as important as money management, if not more so. Losers hype up market cliches. -Smittens

Excellent article, I concur entirely with your analysis.

I really don't think people are frightened to average down. I see it frequently, every time I add to a winner somebody is on the other side, no doubt averaging down.
Seriously though, I like how I can build a long-term possy into a position dimensions I couldn't have hoped for at the outset, simply by adding on at worse prices.
The ideal place to add on is to look at a chart and ask yourself, where would people average down? ... Where if they are cutting their losses (although not)...