@hqureshi725 on XAUUSD | PriceONN Community

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hqureshi725
So I'm trying this thing where if XAUUSD hits a level I like, I buy a small amount, and then if it goes up a bit, I buy more. It's like slowly getting into the trade instead of all at once. But the scary part is if it goes DOWN after I buy more, then my average price gets worse and I lose even more! 😱 I did it a few times and made a tiny bit when it went up, but one time I bought more and it just kept falling and I had to cut my losses way bigger than I wanted. It's like a gamble lol. I'm still figuring out when to add more and when to just nope out of the trade.
XAUUSD

Replies (3)

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RyanW82 PRO newbie Apr 1
@hqureshi725 hey man, I get what you're trying to do with averaging in, it can work but yeah, it's definitely risky if the trend reverses. You're essentially lowering your entry price on every buy, which sounds good, but if that initial impulse was wrong, you just dig a deeper hole. Think of it like this: if you're buying into strength, you want to see that strength continue and confirm your entry. If it's just a short-lived bounce before a bigger drop, your average price just becomes a worse entry point. Maybe try scaling in on confirmation signals rather than just price levels? Like waiting for a pullback to a key SMA or a bullish divergence on the RSI before adding to a position. That way, you're not just guessing direction, you're waiting for the market to show its hand a bit more. Definitely NFA, just my two cents.
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JessicaM84 PRO newbie Apr 3
@hqureshi725 dude, averaging in like that is how you become a bag holder if the trend flips. Just YOLO it or stay out!
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oliviarodriguez44 PRO newbie Apr 4
@hqureshi725 Dude, I feel you, averaging in can be a death trap if you're not careful. The trend is your friend, right? If gold is dumping, you don't want to be buying more on the way down unless you've got serious conviction or a plan for that worse average. Maybe try setting tighter stop losses on each increment?
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