[Question] I think infinite averaging down/up (namping) could become a devilish trade; is it allowed or not? [Answer]
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Why traders who have been averaging down end up unable to place stop-loss trades effectively
【Question】
In the case of averaging down
I think infinite averaging down becomes a devilish trading approach
Mr. Amemiya, is infinite averaging down acceptable?
【Answer】
Hello, this is Amemiya
Yes, I consider infinite averaging down acceptable
However, this is only after understanding the risks
Also, not in FX but
in binary options where there is some time to trade and the risk is fixed
I think BO ladder is the most suitable
Ultimately, the market is recognized as capable of rising and falling
but who knows when the upward and downward moves will occur, it is a fact
Therefore, only when you adopt a trading strategy where risk is properly controlled, like a BO ladder,
will infinite averaging down become effective
Please use it after adding such risk elements
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