Why averaging down becomes meaningless: explained with diagrams of averaging down markets and trend markets

Reasons why averaging down becomes meaningless

Because it becomes meaningless when it is meaningless

That is, in markets with strong trends, control cannot be exercised

Even if you manage to exercise it, you won’t make a profit

There are large latent risks

There are many latent returns that appear

That is averaging down

In reality, even if there are many profit patterns

In reality, the amount of losses recorded is large

So the means to endure it collapses

Averaging down is not designed to make you lose

It is in a state where losses occur easily—patterns of loss are formed

That is because a trending market appears,

and it ends with whether it flips or not

Ultimately, unless you continuously reset it in your head with a poker-like diagram, you cannot keep making a profit

When a flip fails, the trend continues dragging in that direction

In the end, averaging down exists within a poker-like diagram

If you do not fully accept this,

you’ll picture a scheme where you lose with a movement as small as the coronavirus

A poker-like sense is necessary for averaging down

Since a trend is occurring, the trend is not absolute

That sense is also not necessary—such ideas are all lies

The correct answer does not arrive from start to finish

What exists is all by chance, not all correct—it is simply results

Look at the results and think “now is a trend-following moment,” “now is a reversal,” “this year is averaging down,” “next is a trend”

That is the way of thinking

From the beginning, market logic keeps being reorganized

And the rule of pattern rearrangement does not change

Because,

The market is based on an absolute mechanism

A averaging-down market continues to appear, then a trending market continues to appear

Most of this pattern

Therefore, the correct approach is that it is right not to set limits in a trend-following automatic trading

In reality, there is no real pattern in the market; it is “something that seems to have no pattern at all”—that is the market

A hypothetical market (laugh)—truly there is nothing at all

What exists is

A averaging-down market → a trend market

as a change

Ranges simply do not exist

There is only a trend

So at this time, the answer is that the diagram of averaging-down market might be fine

A trending market is the real concept of the market, and that is the correct answer

And that is something that cannot be guaranteed to be correct—such is a trending market

The stronger the trend, the longer it lasts

Until then, it will be back to the indicators as if priced in

That is how it is composed

From the beginning, there is nothing

Everything is solitary, and everything is full of fakes

Everything is soaked in tricks—that is the market

Because there is initially no answer and no absolute correct,

you can embed it with automated trading that follows the trend

and choose a poker-like trade with simple interest

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