Adding to your position for profits

I read that some traders, when in a profitable trade, will add to their position in order to maximize profits.

I was ahead 40 pips on a trade and added a few positions hoping for more pips.

I just took a kick in the teeth and had to cut my losses. Now I'm still ahead but the amount gained will be reduced from my...ahem experiment

I was hoping that someone with more experience could fill me in on the methodology used to do this properly.

The only way to do that is you got in a good strong trend and figure out where to add positions. Of course the best scenario is you got in at the begining of a strong trend. Well, I did wrote something about this and you may check it.
http://www.forexfactory.com/showthread.php?t=13333

Good luck
Rick

In addition, I would say wait until your potential loss with the 2nd position is covered by the gains from the guaranteed profit with the first position. Whether you "guarantee" the profit by moving the stop up or closing some of the first position is up to you. I haven't experimented enough with this, so this could be utter shite and I'm happy to admit I'm wrong if a more experienced trader would like to offer some advice.

Hello,

First of all, please remember that market can turn at any given moment.Tha's a simple statement which is true.So in order to adding posistion, im usually based on my money management first then to technical.Meaning, for an open need to move in my favor for a certain profit, depend on the on the pairs.Let say for example GBP-JY.Afer the price move for a 75 pips in my favor, then i move my stoploss to bep, by doing that, my stake on the first open position already cover to at least BEP and I can used to another signal that come from technical (PA).I wont add a position if this money management still not meet by the open posistion even if i get a signal on my chart.this can be apply to single pair (adding another order in the same pair) and adding to the other pair.

The other art you can follow is like this.Let say your money management is not to put more than 5% to all open trade.So when planning a trade, you enter and put a half of your risk allocation- 2,5%.So when you get another signal on other pair, you can still enter that trade with another 2.5% risk.As the price move to your favor (the first trade, or the second or even both of them) the first thing to do is to secure or put that 2.5% back to your equity (by moving the SL) then you can open the other trade.Dont try to open if the risk that you put still not secure.Even a hocus pocus pattern or signal appear on the chart.


hmm..LOL there is another way to sizing the position when we are profit and our stoploss already move beyond our BEP entry..I'll add somehow..got to go boy.Something coming up.Hope this helps

Remember One thing ...Real Account is not for experiment's Or testing new stratigies... You can do experiment's on demo for your practice. Make some strong rules in your trading and becomes strick to your rules, like money managment , Profit taking target's, SL , Etc...
Set Your daily goal's... & Try your level best to achieve them... Dont try to achieve more from them if you are not sure about positive outcome, Hope you'll never experience with this again....
GoodLuck...
HappyTrading...

I don't think adding to you positions is a good thing for intraday trading when you're only aiming for 30-60 pips. You have to overcome the spread everytime with your new position. Be glad that you first position is in profit.

Exist some good strategy that says - cut your lose position short in linear progression and let the profitable possitions grow like avalance if you adding to them. But never forget to go out of the trade in some predefined moment.

In my opinion concentrate on one position at a time,unless you get a 90/95/100% SOLID indication to enter another trade,following your exact trade rules.That doesn't mean to say your 2nd trade will go the way you expect it to.

Regards

Ken