Tuesday, December 28, 2010

Initiate position, then add

It's hard and even counter intuitive to buy something, see a profit, then add some more and increase your cost basis.  If you buy something and it goes up in value why not buy more?  Especially if you purchase something and it goes up instantly.  What does this tell you?  Your correct.

Obviously in the above scenario we have a few things.  Broke opening range, held above, and has support below.  Also, moving averages are all pointed up.  I had to add to this.

"This approach is not for the fainthearted. It puts much emphasis on
proactive trading strategies designed to produce exponential results. It
encourages you to do counterintuitive things—such as admitting uncertainty,
fear, and lack of knowledge and asking for help; sharing information;
and facing vulnerability. All of this means letting go of ego and
arrogance, which blurs your focus on the marketplace."

-Ari Kiev

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