This sugggession is for all times, I open two trades when I am quite confident about my analysis and prediction. Trader can hedge positions on same pair if they want to avoid loss their one trade will go towards profit if one is in loss. All this need a good trading experiience when and where to trade with one position or more becuase it will use more amount for trading from your account.
This is not correct, by hedging you dont avoid the loss you are actually closing the trade in loss
I agree that its the traders choice, however, I believe one should not overtrade, which in my humble opinion is entering mor than twelve (12) trades on any given day. Getting on point to original question, I often open up to five (5) trades on the same pair without any problems.
The risk is not in how many trades you take, itās in how leveraged you are.
I think mathematical and technical is a kind of trailing stops and ātrailing openingsā that works in long trends. Needs some experience and proper risk management.
If an additional position is well thought out beforehand and provides a strategic advantage that can be quantified, then yes.
If you open an additional position because you think, or you feel itās the right thing to do in the moment, then no.
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Actually, you can open two opposite traders in same pair. If pair moves to one direction, just close the other that is going in wrong way. I have never trade this way, as it seems to me that it will have better effect on long term trading rather than on short term
This is just theory then.
Traders using US brokers are prohibited from doing this through the same broker - they would need two accounts with two different brokers, in one of which they go long and in the other they go short. But whatever happens, in order to make a profit you still need to end up with an unhedged position.
Other jurisdictions donāt ban simultaneous short and long trades on the same instrument. But its a weak strategy - if youāre unsure of the more probably direction price will take, why place a trade anyway? If you really must open a trade on a given instrument but price could go either up or down, better to place a buy order ahead of price and a sell order behind price and cancel the one which is not triggered.
That seems to me like a weak strategy.
What was the amount of risk per trade?
I limit each trade to 2% per currency.
So, if I traded, my risk for USD is 6%,
USD/AUD
USD/JPY
USD/CAD
UNLESS, I lower my risk to .05% for each trade, which put me at 1.5% total risk for all three USD pairs.
It comes down to the trading plan and risk level.