Originally Posted by
;
You are averaging!!!! In Forex Markets ?????? That is suicide...I can understand people averaging in stocks or bonds, but I can't comprehend people averaging in Futures or Forex. . .In stocks and bonds, it is a pain in the ass, but in stocks and FX, it is suicide. It's like jumping from a plane with no para, and trusting that you will have a safe landing on the floor!!! ...
My brother, from time to time, the tendency goes up 2000 pips at a month or 2, and nobody can stop it, because no body can. Take care that averaging is really quite hazardous. The very best you aim from averaging is to breakeven, while FX should be a sport of profit, not breakeven.
You may read exactly the exact same opinion from a number of different traders over here, it is just ordinary. I never tried averaging neither in stocks, nor in FX. In stocks, I used to stay with losing positions, until they came back. Although I'm not doing this anymore today I cut losses shortly based on probability, but that I never pour good money after bad money as many state. Can I add to a LOSING trade? What's so good in it makes me add to it? When the transaction is dropping, all the fundamentals and technicals are contrary to my opinion, therefore why should I stick with my opinion if I understand that it's not right??
Think of it this way, don't throw good money after bad money.
Happy trading brother,
Thanks,
Nader