{quote} Yes. Just don't understand the advantage of it over locking in a fixed loss instead at what ever your risk level is on a single trade. So far it seems to me it’s only psychological advantage maybe that you feel better with not having a fixed loss booked in, which is final. Instead you have 2 floating positions then, one negative one positive. It would be from advantage if by the end of the day, or maybe the next days, you would be able to unwind the negative side at break even but you can‘t forecast that. You could even do worst by making...
Recently I'm trying to translate this into day trading which is altogether quite different and I also chase the daily range similar to Billy I think. Hence why I am here to add a few more weapons into the war cabinet.
When you learn how to do this successfully it will open your eyes to what it really is. Sorry to be cryptic but the only way is for you to trade it to see it, and you'll soon realise what a waste of years it has been "learning" to be a losing trader. There is a reason for this.. and I came to terms with it although it still p**^% me off!
What might be helpful is to cut your usual trading account to very small and understand how 30% margin affects your positions without any pressure of losing a lot of money if you screw up? I'm practising / refining on a £1000k live account and my first position is 0.01 lot size. I'll do this for as long as it takes to know it inside out before I even think of scaling up. No pressure.
