Zeev's Turnips Patch-No Politics (ZEEV)

[Sandy Mack]

...Zeevs catchy phrase 'plan the play/play the plan' applies here... Most of my positions (even day trades) already have averaging up or down as part of the plan..

Paul...In fact, Z's credo has been mine, too, for quite some time. Having a plan and sticking to it is paramount no matter what strategies one employs. If averaging works for you, then by all means, have at it. As for me, I much prefer exiting at a small loss, then re-entering the trade anew when the reversal seems apparent. Often, though, I'll change the direction of my play altogether (e. g., going short instead of long) when the "expected" reversal doesn't materialize...something I couldn't do without a much greater loss if I'd been averaging into the position all along. In the early years, I averaged a lot and got burned a lot as a result. Now, I sport a yellow sticky on my desk that reads, "DUMP! Don't double!", and its presence has saved my butt countless times in recent years.

Sandy