newscalper wrote:Still in the GBPJPY trade, now only 26 pips up as the sob is coming back to my average. This has always been my problem with averaging in, few huge wins, lots of small losses and b/e and after totting it all up I'd have been better off not averaging in and taking the money that was on offer from the get go.
It's tempting to average in especially when an earlier trade is in profit and price seems to be going your way, but the decision to average in must be independent of the earlier trade. You should not average in because you feel safe with the profits (which are not realised yet), but ask yourself in the scenario if you have no open position at that point, would you feel comfortable taking that trade. If you are, then go ahead and average in. Otherwise, continue to observe the price action and "feel" what the market is doing.