Third rule: surrender (with thanks to Welles Wilder and ‘Adam Theory’). Ie, accept the flow of the market and hop on the bus
You’ve actually succeeded and are far from bankrupt: you are rich in wisdom. First you accepted rule one when you hedged the trades. Second despite that obviously being a slightly panicked move you did it because - rightly - you surrendered to the fact that the market wasn’t listening to your trades’ desires but rather bombing off in the opposite direction. So first you should celebrate the gaining of wisdom. Wilder invented many technical methods before he realised it was easier to float down the river than beat his way with a compass through the jungle to reach the port.
Next, where too from here? Well Wilder’s little girl Herenow would look at your chart and say, “yep, that’s a sure fire downtrend” and ask you why you haven’t shorted some more. Every pip the dt continues you eat into the losses on the Long. Then when the pair starts going up, close your shorts for a profit. Don’t worry about your losing long position. You should double up when you close your winning shorts.
Anyway that’s the strategy that ‘Adam’ would espouse. It only works if you have enough capital vs your trade size to open new positions alongside the hedges. Check out Dale’s thread. Keep us posted how it goes! I’m jealous of what you’ve learned here already. Took me ages.
Lol… What is the best way to thank you sir I really appreciate your reply…
Yeah I wont be bankrupted… that was a bit exaggerated to get replies from you pro’s… but I wanted to make sure if that is a downtrend before start piling up short positions and keep closing them for small losses if the trend is opposite.
If hope had a value it would be the richest element in the entire universe for all the dollars it gained from people praying to it’s name for success and losing as a result of it.
If you don’t know why you’re in a trade. Don’t trade.
If you don’t have an exit strategy before you enter the trade. Don’t trade.