What Do You Think About Averaging?

Beginner Questions
21

I stopped using them as well. I’d rather hedge if I ever needed to.

1 Like
22

thanks all :pray: :slight_smile:

23

My opinion is that averaging down can be risky, as it can lead to larger losses if the market doesn’t turn in your favor.

24

Yes. The time to increase risk is when you are in a winning position, not a losing one, yet most traders take action which is aimed at reducing drawdown out of their unrealised gains, which of course reduces their probability and their magnitude.