toanthainguyen

Learn to trade with the average down style

Education
TVC:SPX   S&P 500 Index
Average down style is the simplest and most secure way to invest.

The problem with many is that they go 100% into an asset instead of chopping it up with several timely equal parts.

Here we will see a technique to chop our investment cap into two equal part and buy at different points. The average level will be (buy-point 1 + buy-point 2) / 2.

Now. If price moves up again and back to buy-point 1, you have easily made profit.

If price continues to move up from buy-point 1, you have made a higher profit.

If it however dumps, you must sell at buy-point 2 (stop loss) to reduce the loss. Below this point is critical. Then loss will be heavy. Better sell and wait for a better point to re-enter.
Comment: I got several questions about WHAT IF PATTERN IS UPWARD?

Comment: Other useful tips asked by fans:

Comment: This is an example of one of my real trades. Notice my timeframe 15 min. Notice how I set stop loss at -3% instead of -2% so I don't miss the continous uptren confirmed by other indicators. I set profit target +5%. So my Profit-fail ratio = 5/3 = 1.66. Over time I will make x1.66 return on my trades.

Comment: I want to share with you another Advice of Gold:

If you want to double your money, make small steps. 5% gains for x20 times gives you a double x2 from initial capital.

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Buy the dip
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Interesting one I like that :)
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toanthainguyen VitoRozelli
@VitoRozelli, Me too bro.
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