Thursday, April 23, 2015

Adding to Winning Positions

Adding to winning positions must be done skillfully within a specifically structured equity management plan to suit the strategy of your trade and to prevent exposing yourself to giving away profits you have accumulated on any open trades.

When you have accumulated some profits on an existing trade, a Common Sense strategy should be employed if you wish to add to your open trade, by separately considering the probability of potential for additional profit without risking equity growth on the current trade.
In simple terms, is the price point at which you are considering to add to the trade, a logical time and price to take risk on a new trade? Because that is what you are doing!

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