Made a lot of paper-trade scalps in FAZ and... made some judgement errors by averaging down on a couple of my entries. Still, I was 22 of 25 winners. My 3 losses totaled $17.00, the 22 winners totaled $797.
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My averaging down, even if rare, is troublesome; even as I am sharpening my feel for movement. Getting better at trading but still averaging down is a losers folly. A sharp trader can get away with averaging a losing trade for better price quite often, but in the end will still be punished on those rare occasions. Call it what you will: "Trading around a core position," "averaging in, averaging out," scaling in, scaling out." No matter the name, it is faulty trading and is a sign that more work has to be done to sharpen one's skills. A better entry will dramatically reduce the need to average down; use of a stop will be the safety net.
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If you didn't know already, this is the reason why I have not traded real money in many months and why I will not trade real money until I solve this mental shortcoming.
