Winning the forex. - page 11

[OMar1979]

Does averaging mean opening in the same direction as a losing order?

[Vladimir Karputov]

OMar1979:
Does averaging mean opening in the same direction as a losing order?

Yes. For example a position

sell and there is a loss on it. If you increase this position - that is to add another sell, that is what averaging means.

But averaging is self-deception.

[Valerii Mazurenko]

barabashkakvn:

But averaging in general is self-defeating.

I disagree.

averaging is just a tool like any other (like a knife, for example, you can (for example) cut).

it is often used by options traders, hedge funds (a recent example is Franklin Templeton's purchase of about 40% of all Ukrainian Eurobonds, which were bought gradually, with increasing yields (equivalent to a decrease in their value)), etc.

Yes, and in general, the same R. Vince recommends to enter a position (if it is not min.lot) in parts in equal time intervals with approximately equal volume (for long-term - it can be weeks, for medium-term - hours / days, for short-term - it makes no sense :)) On average (but not always!), with this tactic, the entry price comes out better than the entry at once.

Anyway, that's how it is :)

[Andrew Petras]

"Austerity ruined more Jews than the Holocaust" (c)

[Roman Shiredchenko]

Silent:
"Austerity ruined more Jews than the Holocaust" (c)

Happy Jewish workers' solidarity day! :-)

[Andrew Petras]

R0MAN:
Happy Jewish workers' solidarity day! :-)

Likewise! :-)