what do you think about this? you double your first lot so you get the double profit but you not forget you double your risk too .is it right ?
In principle you are correct. Double your position and you double your risk. But you could decide on a pre determined stop, say for example 25 pips at 1% of account balance risk on a trade . Then devide this percentage risk by 50% i.e. 0.5% risk on two trades (total 1% risk). Argueably this is a better money management strategy because you have more flexibility over the trade. If from the off you get stopped out for 25 pips you lose 1%. No great shakes. But if say the trade goes your way by 25 pips you could for instance close half and set the remaining half to run with the stop set to break even. There are other ways of playing out multiple trade entries, this is just one example. You might set a trailing stop or a predifined TP etc. The choices get real interesting with say 5-10 trades in play!
Yes, trading is scalable. You decide how much you want to make once you have a system down. Obviously everything risk:reward and capital all need to be proportional otherwise you blow yourself up. But that’s one of the beautiful things about trading, once you have it down all you need to do is start trading larger to make more. Unlike traditional business where increased production usually has more costs and overhead.
Indeed, double lots double loss
it all depends on how you manage it, you may double your lots to double your profit and still have the option to lower your risk
Greed is a really bad source for advices.
I agree Mr Gone, I was just pointing out his concept if doubling the lots will double the profit and the risk which is right… but just to add to it IT is NOT ADVISABLE
How is that beautiful. Kinda messy if you ask me ;p
its beautiful because it increases your profits. assuming you got to the point were you have solid risk management and a trading system (you wouldn’t have grown your account to the point where you could grow size with out it). If your successfully and consistently trading there is no reason you wouldn’t want to trade the biggest size you could handle. If you dont have those required skills, you wouldn’t have grown your account or you would have eventually blown up anyway. it doesn’t prevent the inevitable just helps you maximize your potential.
I have taken to using a method of re-entry to the market that increases my ‘lot size’ per winning trade.
I use stops at 2x ATR on many of my trades, once this has moved past my entry position - and so long as the reason for the trade is till valid - I will enter another trade. The 1st is now risk free as the market can’t go back passed it (unless there is a massive gap) without me being in profit on that trade. I believe some of the Turtle Traders used a similar system.