Good (Friday) morning everyone.
Well: we have one or two more signals (GBP/ZAR, EUR/ZAR, EUR/GBP, and GBP/BGN). There ARE more but I'm not interested in them at present. Moreover: these are NOT the 'main' ones I'm waiting for (with the exception of GBP/ZAR that is) e.g. GBP/USD, GBP/JPY, GBP/CAD, GBP/NOK, and EUR/USD (to name BUT A FEW)!!!
Just one thing that I think needs 'a mention':
As you MAY know any and all postions that I open NOW are 'logical' positions and there is a good reason for this:
Let's take EUR/CAD (one of my 'still open' 'test positions'). Now: the trade is going against me at the moment (although I'm nowhere near getting a signal to place an order to SAR or 'Enron' the position as you should be able to see). But let's just say for the sake of argument that the price continues on down and I do eventually get a signal to place a short stop order because price has closed contrary the SAR and that order is executed. Now remember: MY ORIGINAL LONG POSITION is a 'logical' position and my short stop order is ALSO going to be a 'logical' position for the same number of lots as my original position MINUS ONE LOT (don't get this wrong because then you're defeating the object). At this point I've accomplished two things: 1) I've freed up the margin used on the position and 2) any further loss if the price keeps on going against me is based only on ONE lot which of course will be negligable. NOW (and this is where you'll hopefully see the benefit): WHEN I get a signal to go long again I can COMBINE both of these positions into ONE SINGLE POSITION. The PROFIT that I've made as the price has continued on down gets offset against the loss on the long position by doing this. I then add to this newly created position and the difference is that as the price NOW goes in my favour I start making profit (reducing any loss) FROM NOW i.e. I don't FIRST have to get to BE before I start making a profit. THAT'S the benefit. Make sense???
Now just one thing:
Someone asked me the other day if this is possible at ALL other brokers. Now: I cannot speak for ALL other brokers but I CAN tell you this is NOT possible at GCI (my other broker) i.e. it's only possible at Delta. The reason for this is because at Delta you are able to 'dump' lots i.e. reduce the position size to the quivalent of a single lot whereas at GCI the lot sizes are fixed so if you try this at GCI you'll land up in a perfect hedge which is ALWAYS a recipe for disaster.
I hope this makes sense. If in doubt I STRONGLY suggest that you try this on a demo first so that you can see how it works. The REAL object of the exercise is that you never take a loss i.e. if the trade goes against you you put the position 'on hold' as it were UNTIL you get another signal to take the trade in the same direction as before.
(Looking at my EUR/CAD 'test position' while typing this post I MAY JUST get the chance to give you a REAL LIVE DEMONSTRATION of this 'action' in the not too distant future by the looks of things)!!!
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