Well why our orders get average to particular price why we cant keep them as two Separate order instead of combing to existing one like suppose I took trade at say Rs 150 then my position turn into loss say price went to Rs 160 but I have strong belief that price will fall so I am again shorting at 160 so I get average price of 155 but as orders are place differently why cant we see them as two different orders on chart instead of averaging it.
by seeing two different position we can have better understanding like weather our second order is doing good or no so we can act accordingly. and cut our losses or reduce our losses effectively as we are going to have one winner with me
like i place my first order at 150 then at 160 then price again came to 152 but market is uncertain this time so i square off my 150 rs position here cut my looses and hold my winner which is at better price of 160
and when you handling multiple position it gets difficult to put your sl according to new average price traders are not in that mental state specially if you are scalping