Averaging as a FOREX tactic

Averaging is a FOREX work strategy when you’ve made a mistake, or simply made any deal (the first that came to your mind), and the price has gone against you and you perform the same operation at a more favorable price this time. The main drawback of averaging is the fact that you don’t know beforehand up to what price the market will go against you. Each time after the first one averaging requires investing a double sum from the previous sum of the loan asserts. But if you have much money you can afford price movements in 100, 200 or even more pips. Although such things are not frequent on the FOREX market, it isn’t the best strategy especially if you see that you’ve made a mistake in defining the trend direction.