[isatrader]

Can anyone help on stop losses when averaging up. Is it best to put a second stop loss in to protect the second buy as you would do if it was your only buy. Or do you go all in and work by pulling up your old stop loss and have all the stock on that one stop loss.

The stock is HGM, orange link is my old stop loss, red is my new stop loss. Should the whole position be on the red stop loss or just the original buy and the second buy goes on the purple line?

My personal opinion would be to go all in on a new stop loss, as if it's made a continuation and there's a new higher valid stop loss position, then that would be the position for both, as you move up your stop loss in the method as it approachs the old highs if there's a valid place to move it too.

So in this case, as it's made a continuation, the old stop loss would be moved up to the new position imo. And hence both positions would use that one.