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Message: <blockquote data-quote="vicroads" data-source="post: 15363998" data-attributes="member: 459718">Some times when we loosing a trade we feel to open another trade to the same direction thinking that price will reverse. Lets say,,, Buy 100,000 EURUSD @ 1.3250 and price starting to coming down against you..@ 1.3220 = 30 pip loss (300$) open another buy order at this price and if price continue to come down...@ 1.3200= 60+20 pip loss (800$)..  now you think you never going to accept this 800$ loss( its a huge loss) and try to minimize loss by opening another buy position @ 1.3200. most of the time we get lucky and price starting to reverse at this point and we are able to close this trade with a minimum loss or even with a good profit. ( in this example if price reverse to 1.3222, we can breakeven this trade)  What happen if price go down further below 1.3200. you maximize your loss very fast until you get a margin call.So doesn't matter how many times you win by averaging, Only one bad trade can make you cry.cheers</blockquote>

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