What should I do to effectively use a mid-journey step-through (two-step) long position?
Quick back-and-forth averaging is bad and will lead to a back-and-forth slap when it goes wrong
Quick back-and-forth averaging, when it goes well, continues to generate profits
Whether it succeeds
or fails
is one or the other
That is quick back-and-forth averaging
Is quick back-and-forth averaging effective?
From the perspective of stop losses, it is “effective.”
However, the market is made by the trader’s expectations
In other words, the market moves in a way that benefits either side
So eventually a market will come that I don’t understand
So eventually there will be a series of markets that oppose my forecast
From this fact,
Is quick back-and-forth averaging truly effective?
The answer is no, right?
Quick back-and-forth averaging will fail somewhere eventually
If you think that way
It is more effective to use a stop-loss from a one-shot perspective
Similarly, with averaging, you should trade from a one-shot perspective
By doing so,
Averaging can be traded in a one-shot manner as well, so it is = effective
However,
Because quick back-and-forth averaging changes direction,
It has the potential for back-and-forth slaps and will amplify losses in large quantities
By imposing a stop loss,
Losses can be reduced
By incorporating market sense and discretion,
You can escape even from the perspective of back-and-forth slaps
With quick back-and-forth averaging, you cannot escape that back-and-forth slap perspective
Why is that?
Because you believe in a trend when a fake-out occurs,
From the premise that you believe in a trend
Therefore,
You keep slapping back-and-forth
Even if you widen the range, the win rate may rise,
But you will also enlarge the range of big back-and-forth slaps
And you will incur such losses again
Behind quick back-and-forth averaging lies
Such an answer
Please always cut losses and take a break when using quick back-and-forth averaging
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