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Strategies & Market Trends : Strictly Buy and Sell Set Ups -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (7514)	1/29/2006 8:23:09 AM
From: CommanderCricket	Read Replies (1) \| Respond to of 13449

dabum, "Good" averaging is when the position added is part of the trader's original plan to DISTRIBUTE RISK. Thanks for posting this article. One of my strategies for starting longer term positions is placing 3 - 5 separate buys across an entry point. Lets say you want 10k shares of EPEX at $20/share for a 1 year plus commitment. The expectation is the first buy will be well timed but often that is not the case. Thus if EPEX drops or goes up 1%, a second buy is taken and so on (hard stops are determined prior to trade). Best case is always buying up into the trend, but I've done equally well, buying a spread across a bottom. Your article confirms what has worked well for me. This strategy does not work well for 2 - 5 day swing trades though. For those its one buy in/out. Michael