Adding to win trade forex
In the past I have done a post about adding to a trade in my forex education article I wrote. Today I would like to expand on that by specifically talking about the benefits of adding to winning trades.
Many professional traders add to winning trades to increase profits.
Once you learn how to trade profitably it is important to then begin to look at ways of increasing profits since you already know how to trade profitably. One of those ways is to add to winning positions.
How to Win Consistently in Forex Trading - Success Resources
The first thing that is important with this strategy is that this must be done in trending markets only. If the trend appears that it is going to continue then add to the position and risk the same amount of profit that you have locked in so now your second trade has no risk at all. IF you lose the second trade your first and second trade will be break even but if you win then you will double the reward.
So you have no risk and twice the amount of reward. Sounds like a very good idea to me.
Learn Forex: How to Scale In to Positions
Here is a video where I explain exactly how this works. Trading forex on margin carries a high level of risk, and may not be suitable for all investors.
The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.
You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. Home Blog Tools Pricing BROKER About Us Were Hiring Contact Us! Adding To a Winning Trade Written by admin on June 8, First Step Identify a trend and get into the trade.
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Adding to a winning trade: forex position sizing and risk profile
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