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Strategies & Market Trends : The Home Run -- Ignore unavailable to you. Want to Upgrade?

To: gold 77 who wrote (111)	5/23/2006 6:51:35 PM
From: Patrick Slevin	Read Replies (1) \| Respond to of 525

Well, I'm not certain where you are sitting with your position but..... one thing I should make clear. My philosophy on building a Futures position is to maintain a low cost average. So for example, you enter a position with 3 contracts, ..... the contract moves higher and you purchase two more. Then one more. What you are doing is keeping a low average price per contract. ----- You can see through this thread that I bought more contracts when the price was low and few when the price was high. --------- Try not to overtrade in the sense that you are scalping. Try only to position yourself in the sense that you are adding to a low center of gravity .....accumulating at low points, selling a small amount at high points. SnP you are in and out. Here we are positioning a Long term move, you are trying to build a base where the center of gravity is low. Briefly, use your own manner of determining a so-called bottom. Accumulate there, keep a close stop. If the market moves higher don't scalp unless the market starts to run a lot. If it just moves higher reasonably, add slightly to the position. ---------- I know it seems stupid. On the thread I recently added two June Gold at somewhere around 694. But that made the average cost 613. That's not too bad with Gold at 673. All we are trying to do is add small at high levels and large at low levels. As traders we are selling spikes and buying dips but the lower it goes the more we buy the higher the less we sell. I know I'm going to be 6 weeks trying to explain this but believe me it makes sense. Provided you believe it's a trending market.