TheRumpledOne wrote:Price moved against me, so I entered a second time.
Price moved against me again, so I entered a third time.
Price moved my way and I exited with a profit.
I have to warn people against this unless they know exactly what they are doing. Exactly what they are doing, particularly in determining position size to achieve an acceptable RoR (risk of ruin). Doubling down, averaging down...whatever you want to call it needs a much larger account (or much smaller trade size) than more traditional approaches to money management. Having said that I rather like these sorts of approach providing it is an extremely high probability set up.
Having got the warning out of the way might I ask if the third position goes against you do you stop out?