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What are the advantages and disadvantages of trading using an averaging system?

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  • What are the advantages and disadvantages of trading using an averaging system? in General Forex Discussion_index
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what is clear is that if we don't have a strong mentality, good skills and enough experience then we will be destroyed more easily when we use this averaging system.
#31 - May 10, 2021, 03:51:58 AM

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Averaging
Is a trading technique by opening an order in the same direction as the previous order with the same lot.
In my opinion, there are two types of averaging, the first is plus averaging, and the second is minus averaging.
Averaging plus is done when the previous order has experienced a profit, and the trader returns to the delivery order with the aim of getting a bigger profit.
Averaging minus is done when an order that previously suffered a loss but is not closed, then the trader returns to the order in the same direction with the hope that the price can reverse again and the resulting profit can also cover losses from the previous order.
#32 - May 16, 2021, 01:44:17 PM

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Trading Averaging techniques must be carried out by those who are very experienced, their mentality is ready and the skill is capable
#33 - June 01, 2021, 09:33:12 PM

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The averaging technique can indeed bring considerable profits, but it must be carried out with sufficient skills and mentally prepared
#34 - June 02, 2021, 10:24:42 AM

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Trading by using averaging if not done with a good skill and enough experience will be very disadvantageous
#35 - June 03, 2021, 10:26:27 AM

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For me, if this system is run by people who don't have good skills, it will do a lot more
#36 - June 04, 2021, 11:59:36 AM

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If the averaging system is not run properly and correctly, it will actually be able to bring about huge losses in a short time
#37 - June 07, 2021, 12:29:21 PM

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Advantages and disadvantages of trading using an averaging system??

Personally, in my opinion, the advantage used in trading using the averaging system is to minimize losses that occur in stop losses so that a student is not wary of the losses they will get, while the loss of trading using the averaging system is to get the expected profit, because it is accumulated on average. sad words to get a large profit as expected cannot be applied using the averaging system
#38 - June 10, 2021, 03:10:07 AM

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Averaging techniques are actually very profitable if we can apply it correctly and precisely. Right in the sense of LOT settings, risk management in accordance with the trading plan and right in the sense we can read the beginning and end of a trend. When our op averaging is appropriate, then in a short time, once we close the averaging position, we can profit up to hundred%. Or if we floating loss akn faster because the number of pips for the BEP is reduced.
The requirement for applying averaging techniques is actually quite easy, namely 100% absolute emotional control. If not then the MC will wait. Please note the averaging technique that made Jesse Livermore successful in trading and also made him depressed. I personally used the averaging technique down, but failed because of lack of emotional control. Now more to Set and Forget Op.
My advice if using this technique should only be limited to 2-4 OP and use a stop gloss.
#39 - June 11, 2021, 05:55:50 AM

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I think trading by averaging if it's not run well it will be very detrimental or fast enough to make us experience a large number of losses, therefore we must be careful before running this averaging trading system
#40 - June 12, 2021, 12:41:53 AM

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