When to get back in to a trade?

Hi fellas

I’m a true newbie at this forex game and trying to learn whatever I can so I’ve gone through all the stages of forex school and I’m now looking at systems and charts etc.

Anyway, here’s my question. If you are using a system such as the Cowabunga where two MAVs give a signal to start a trade (confirmed by other indicators) and you make the trade but it reverses and hits a stop loss or you buy out etc, how do you tell when (or whether) to buy back in if the trend appears to resume?

Most likely you’ve reduced your potential profit by coming out but if it looks like it’s going back in the expected direction do you buy back in if all the original criteria are still met or as you are now a way off your original MAV indicator do you just write that one off and wait for another fresh trade on a new signal?

Any views and reasons appreciated!

Cheers

Steve H

nah, dont chase profit :slight_smile: there will be other opportunities. if you’re going to try and catch the resuming trend, learn fibonacci retracements, it should help you. (also see blackknights lessons on fibs)

I re-enter trades when price shows that it’s still going to head back my way. Which is why I for one like to have tighter, but not ridiculously tight stop losses. You can always get yourself back into a trade that’s going your way.

Now, once price has left the station and went on to the place you were wanting it to go, I wouldn’t necessarily jump on. Also, there’s been times when price has retraced on me and I was able to find another entry when price started heading my way.

basicly just wait for your strategy to get a fresh indication of a entery point. sometimes you get stoped out and the trend continues but if you get in the habbit of jumping on because you think it may continue you might lose more than you were willing to risk in the first place. but if a new signal appears confirm it and then yes you can re-enter the trade.

best of luck to you

pt~

Cheers for the answers there chaps; seems like it’s a question of using some discression in each case then. Practice makes perfect on this one then I guess :rolleyes:

The “cowabunga system” works well on 15 min charts, and hourly charts, so if you miss it on the 15, and it is turning around, you can catch it on the hourly.

So just scale it up to a 1 hour and check if the indicators still line up :rolleyes:

Cheers, I’ll give it a try.