The idea here is to allow market swings to unfold and use them to establish a larger position at better prices than your current level. Medium to long term trade strategies can typically benefit from averaging into a position. This refers to the practice of buying/selling at successively lower/higher prices to improve the average rate of the desired long/short position. This will move your overall position value in the desired direction. Sometimes adding to winning a position is acceptable, such as after a technical level breaks in the direction of your trade or you get a signal. This is generally considered too risky and can "pyramid" you into a less desirable position. 

Was this article helpful?
0 out of 0 found this helpful

Comments

0 comments

Please sign in to leave a comment.