Well since i only had a 2/3 position in DIVX when it sold off in afterhours adding the last 1/3 seems like the smart thing to do , if it sells off further i would just sell but if it starts to bounce you can recover much quicker and re disperse the money into new trades that much sooner. I regret not waiting a bit longer before buying but realistically i only missed by about 70 cents. Yes i know every where you hear and read not to average down but do they ever define what levels they are referring to, as in if a position goes down do they instantly sell or do they give it time, well if they give it time couldn't they actually lose more money, which in essence is what you are saying i'm in jeopardy of doing. Buying 4000 shares of some $2.25 stock is madness to me.
Risk control is a very important aspect of trading.
2 comments:
Do you think you might want to review this strategy?
It's throwing good money after bad. I don't like it. But that's just me.
Well since i only had a 2/3 position in DIVX when it sold off in afterhours adding the last 1/3 seems like the smart thing to do , if it sells off further i would just sell but if it starts to bounce you can recover much quicker and re disperse the money into new trades that much sooner. I regret not waiting a bit longer before buying but realistically i only missed by about 70 cents. Yes i know every where you hear and read not to average down but do they ever define what levels they are referring to, as in if a position goes down do they instantly sell or do they give it time, well if they give it time couldn't they actually lose more money, which in essence is what you are saying i'm in jeopardy of doing. Buying 4000 shares of some $2.25 stock is madness to me.
Risk control is a very important aspect of trading.
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