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Thoughts on Averaging Down


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#31 jabba

jabba

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Posted 09 October 2005 - 11:21 PM

I think some good points were addressed above... 1. scaling in is probably better then doubling down. 2. scaling in is better used at part of the original plan then on top of your full position. 3. even if you scale in there should be some sort of uncle point... you shouldn't be willing to hold til zero. 4. if you commit a survivable percentage to a position you won't get killed... for example, scaling in to a $20K stock position with a $100K account.

Edited by jabba, 09 October 2005 - 11:22 PM.