Actually, there are two cardinal sins being committed here. Neglecting
to use a stop is suicidal according to nearly all Forex experts, also
’Averaging’ has been mathematically proven to invite disaster.
Averaging is the practice of adding to losing postions in the certain belief
that the market must eventually turn in your favour.
of course with large or even regular 1% risk position size all this
would be perfectly true
but I remember many years ago opening a Swiss bank account,
and although I didn’t have vast offshore funds, or even modest
offshore funds, I wan’t involved in trading, but I did regularly check
on the exchange rate, and it was most illuminating, especially
without the smokescreen of the charts. while the price would
always fluctuate a little, it always reverted to the mean.
but even a small fluctuation can be hundreds of pips, which
on the charts can look like the Wall Street crash. but it isn’t.
price may fluctuate hundreds of pips in either direction but rarely
thousands of pips, so by just hanging in, price eventually hits TP
but I agree that exit ( or exits ) is where the chart reading skill comes in.
As a rule of thumb I look to Distal band which is invariably hit, but usually
price overshoots, so I would like to optimize the trade if I can
at the moment I have sixteen open positions and they are all uniformly
going against me at the moment
what is good is that this provides the opportunity to test the system
and gain confidence when it turns back in my favour. it will do
@rrram2 is right, his enviable stats prove it, if price moves against you
hundreds of pips then open another position which might go hundreds of
pips against you. Its highly unlikely but if you can handle that scenario
then it becomes a waiting game, not a panicking game
and incidentally, you can trade this system on the lower time frames
but the Daily is the best TF, the bands do reconfigure on the Daily a
littl,e but repaint on M15 a lot, so it is riskier, but still more profitable
than binary options
