Reason why averaging down (Nampin-style) trading is recommended for discretion in decisions

Think about Stop Loss

A trade that goes bad with a single entry and then reverses

Trades that average down

If you do this

One-entry reversal is

only profitable when a trend appears, and

if you keep doing it, the losses will spread wider and wider that you cannot quickly recover

However, with averaging down, there are many aspects that can save you and make profits

Basically, stop thinking in terms of market good or bad and adopt a averaging-down type

and judge the market momentum

Doing this with a Dannmber averaging-down type is hell

It takes many days to win

Averaging down is the downward move until a trend appears

Just averaging down to catch the market timing

Ultimately it depends on entry timing

Make the entry timing mechanical

Why is a logic-variable type trade bad

Because the market momentum changes constantly

Therefore,

Ultimately,

It ends up being either Averaging down type or Time-waiting type

Why a market-variant averaging-down is bad

You never know where the market ends

Because the latent risk is too large

If you do it

Only a withdrawal-type averaging-down

If you average down,

you must limit it to “contrarian averaging down” only

Entry timing is basically all contrarian

Contrarian is effective

Averaging down, in other words

was supposed to be effective to catch the contrarian entry timing by forcing averaging-down

Basically, you should only focus on deciding whether to place orders or reserve contrarian setups using time-waiting strategy

Because market moves are unpredictable and move in unpredictable ways

If you trade by discretion forever, you can only pursue contrarian averaging-down

Difference between averaging-down and a single-shot entry

If it goes back, you gain profit immediately—just that

If the market doesn’t revert, you only incur losses

Thus a single-shot setup has a faster turnover

Also with discretionary averaging-down

There is the nature of “returns before profit” and “you must always fight”

Hence “market view becomes distorted” and “losses become excessive”

Considering these, time-waiting type is better

Because it is far more efficient than trend-following trades

Why time-waiting is good with alternating 12 hours and 6 hours

Markets generally move back and forth within about 3–6 hours at a time

To maintain entry timing and turnover,

You must aim for the action of “targeting one specific move out of each round trip”

In other words, you must not be swayed by every round trip

To adapt to every round trip implies

Each time you must change your market direction

That only distorts market sense or expands losses

Therefore there are traders who increase by trading only contrarian averaging-down

In reality, aiming for a low-risk, high-return setup within a few rounds leads to faster turnover

Meaning of contrarian averaging-down and the meaning of faster turnover of time-waiting type

These exist, which is why capital increases

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