Section 2: Averaging
This technique is the opposite of scaling out. As the trade develops, the trader keeps adding lots attempting to capitalize on the continuing price movement.
Trading with multiple lots is a very common practice. Unfortunately, most traders forget to apply a basic principle on their trade management technique:The trend is your friend.
In the following sections, we will see the correct way to apply each trade management technique mentioned.
This technique is the opposite of scaling out. As the trade develops, the trader keeps adding lots attempting to capitalize on the continuing price movement.
[Table 1]
Trading with multiple lots is a very common practice. Unfortunately, most traders forget to apply a basic principle on their trade management technique:The trend is your friend.
In the following sections, we will see the correct way to apply each trade management technique mentioned.
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