As a trader you should never add to a losing position!
Most traders add positions to a losing trade to average their entry price. This is hazardous to your trading career. Averaging down into a losing trade is the only thing that will assuredly make you lose a bulk if not your entire trading capital. Most losing traders use this strategy.
Sometimes averaging into a losing trade may work for you. But over time it will eventually ruin you. This is one of the main reason why LTCM, Barings and Sumitomo Copper went bust.
If you want to be a profitable trader always add or average into a wining (profitable) trade. Add on to your positions in the direction of the profitable trend.
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