Bumping this back up for those who need it. It is still relevant and always will be.
I wanted to bring attention to the post I read today (below), which could be another option for managing trades like these that can run for extended periods:
Chances are no matter where you enter, the position will go against you at some point, and almost always multiple times. So, starting with a position 1/3 or even 1/4 of your preferred size can help control your draw-downs. In the end, if the position goes against you then you’ve still stayed within your risk tolerance. However, if it goes in your favour, entering at different levels (averaging) can actually increase the rewards.
This type of cost averaging strategy is similar to investing, and is viewed by many as “adding to losing positions”. However, when done responsibly, can be rewarding.
Now, without further ado, here are a few more charts for your viewing pleasure:
Silver has been in an uptrend for 2 years, but looks to be in a bit of a consolidation period. How long this will last, who knows, but I will be using the cost averaging strategy in anticipation for a nice move up:
GBPUSD - A picture perfect leg up (in hindsight) with a fake-out to the downside. Too bad I missed it:
USDJPY - Lots going on here. Strong downside, but need to see what happens at that support level:
EURGBP - This one was a heart-breaker. They don’t always work out so be prepared:
GBPNZD - I have 2 open positions here:
Happy trading!