Hello. I am new to FX trading and I would like to know how is it that experience traders build their positions. I know most of the people will wait for confirmation on their strategy but would you take your full position all at once or slowly add until desired positions size is accomplished? How do you know when to get out? Is it when your position reverses or when your profit target hits? What’s your position size, typical stop loss and profit target? Thank you.
In forex for quite a long time now trends on the daily charts have been short and likely to fail without warning. So I have been going full in on the first signal but only with small positions.
On a much stronger trend such as seen on Dow or S&P I will enter also with a small position but then add to it at the first opportunity, such as when unrealised gain equals initial risk.
Risk per trade is typically 1% of account capital. I don’t set profit targets in advance but always set a stop-loss. In a strong uptrend this will be the low of a swing low bar: in a weak uptrend it will be 2 x ATR20 below the entry price.
Hi dhjesus,
You’ll find there are many ways to make money on the markets. I am a day trader so I go all in on every trade. So my risk is 1% of my account. As soon as the market moves in my direction I move the stop loss to breakeven. Then I move it 0.5% at a time as the market moves. I get out when the market stops me out or at my own discretion if I feel I’ve made enough.