The term averaging can be confusing for newer traders. In simple terms, it means entering a stock at one price and then adding more shares later, which creates an average cost basis based on how many shares were purchased at each price. Buying at higher prices is known as averaging up, while buying at lower prices is averaging down.

In this episode, we take a deeper look at the pros and cons of the three different ways traders add shares to a position. These approaches I refer to as professional, risky, and deadly — and understanding the difference may be the key to avoiding a trade that never ends.

Episode Resource: youtu.be/7eT7kjkq4NA?si=fDDXhv8t8KCkHclq

Set up a free coaching session with Paul:
https://calendly.com/dts-paul/coaching-session-w-paul

The DTS Free Stuff Page:
https://disciplinedtradingstrategies.com/free-stuff

To learn more, visit:
http://disciplinedtradingstrategies.com

Listen to more episodes on Mission Matters:
https://missionmatters.com/author/paul-lange

Due to the holidays, it's been an extra couple of weeks since my last podcast. This one actually came as an offshoot from the last DTS educational event I did in mid-December. That event was called A Fireside Chat at DTS and highlighted some of my favorite topics from the year. One of those topics had to do with the role of strategies and the misunderstanding of that role as it comes to traders. This podcast explains that very critical concept and also uses a great analogy foreshadowed by the title.

This one was inspired by many questions I received. In this episode, I break down one of the biggest trading demons we all face — FOMO. I talk about how fear, impatience, and the pressure to “catch the move” can quietly push us into overtrading and stepping outside our plan. I’ll show you how these emotions connect, how they trick even experienced traders, and what I personally do to stay disciplined when the market is tempting me the most. If you’ve ever chased a trade you knew you shouldn’t take, this one will hit home.

Set up a free coaching session with Paul:
https://calendly.com/dts-paul/coaching-session-w-paul

The DTS Free Stuff Page:
https://disciplinedtradingstrategies.com/free-stuff

To learn more, visit:
http://disciplinedtradingstrategies.com

Listen to more episodes on Mission Matters:
https://missionmatters.com/author/paul-lange