Rocketdog

The fact that I averaged down probably minimised my losses but in hindsight it would have been far less stressful to take the initial loss and move on. I got into trouble by not following my trading plan. I 'jumped the gun', averaged own, widened my stop and still lost money. Lesson learned.

I got lucky recently. I took a trade on the 6E when my entry conditions hadn't been fully met. The trade went against me immediately. I then tried to avoid the loss. I averaged down by adding another contract. That didn't work. I moved my stop several times. That didn't work either. The potential loss kept getting bigger. Price finally turned and came back to my original stop loss level. I gladly closed the position. I have since rewritten my trading plan. I have included a notation to "Never move stops or average down. Take the loss. Wait for a new opportunity."