{"id":10290,"date":"2011-03-08T11:44:33","date_gmt":"2011-03-08T16:44:33","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=10290"},"modified":"2021-05-06T15:22:46","modified_gmt":"2021-05-06T19:22:46","slug":"traders-ask-doubling-down-bella","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/traders-ask-doubling-down-bella","title":{"rendered":"Traders Ask- Doubling Down Bella?"},"content":{"rendered":"<p>In <em>One Good Trade<\/em> I offered this example of a RIMM trade:<\/p>\n<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/03\/fake-breakout-rimm1.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-10289\" title=\"fake breakout rimm\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/03\/fake-breakout-rimm1.png\" alt=\"\" width=\"462\" height=\"583\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/03\/fake-breakout-rimm1.png 462w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/03\/fake-breakout-rimm1-237x300.png 237w\" sizes=\"auto, (max-width: 462px) 100vw, 462px\" \/><\/a><\/p>\n<p>Today I got this email from SMBer Terry:<\/p>\n<blockquote><p>Hello Mr. Bellafiore,<\/p>\n<p>I just have a quick question about adding size to a short in a weak stock that is working against you. In your book, you reference a play in RIMM around the level of 82. The play is to get short at this level, as shared by Steve.<\/p>\n<p>So you piece into this trade, since it is early in the open, and slowly add size, even if it moves against you, until it hits another level (82.25 in this case). Then you wait and hit it if it keeps rising. This strategy to me resembles doubling down a bit, and I was curious if there were better ways to do this, especially if the 2 levels you are trading off of have a substantially larger gap? Do you add size proportionally slower in a normalized fashion? Is there a general rule of thumb for adding size (arithmetic, geometric, etc.)?<\/p>\n<p>Thanks again!<\/p><\/blockquote>\n<p>So was I doubling down? Is there a better way that you would trade this set up?<\/p>\n<p>Mike Bellafiore<br \/>\nAuthor, <a href=\"http:\/\/www.amazon.com\/One-Good-Trade-Competitive-ebook\/dp\/B003VIWRJA\/ref=tmm_kin_title_0?ie=UTF8&amp;m=AG56TWVU5XWC2\">One Good Trade<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In One Good Trade I offered this example of a RIMM trade: Today I got this email from SMBer Terry: Hello Mr. Bellafiore, I just have a quick question about adding size to a short in a weak stock that is working against you. In your book, you reference a play in RIMM around the level of 82. The play &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/traders-ask-doubling-down-bella\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":10289,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,908],"tags":[1651,4674,81,653,1354,1349],"class_list":["post-10290","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mike-bellafiore-bellas-blogs","category-traders-ask","tag-doubling-down","tag-one-good-trade","tag-smb-training","tag-trader-training","tag-trading-coach","tag-trading-mentor"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Traders Ask- Doubling Down Bella? | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/traders-ask-doubling-down-bella\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Traders Ask- Doubling Down Bella? | SMB Training\" \/>\n<meta property=\"og:description\" content=\"In One Good Trade I offered this example of a RIMM trade: Today I got this email from SMBer Terry: Hello Mr. Bellafiore, I just have a quick question about adding size to a short in a weak stock that is working against you. 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