DislikedVerto, I agree to take the SMALL loss. But, what does one do when the trade is at level three or four already, and there's some sort of news coming up? Also, it's always uncertain what the impact of news will be. It could be the news would make the pair(s) reverse and turn your current losing trade into a winner.
One way is to check the calendar for news and just don't trade during a week that some news is expected that week. NOT trading is good sometimes.
[b]Another is to throw a hedge on your trades if they are a hole you can't or don't want...Ignored
For example:
You're at level 3 going short and don't feel like taking the loss. A news release is coming up. You hedge.
Price spikes up 1000 pips but you're hedged so no loss (only commissions on your hedged position which are minimal).
You cannot close your hedged position until your price is in similar spot that would put you at level 3 anyway. In other words, if price is going DOWN after the spike, you can't un hedge because you would not be at a level 3 short position during a down trend.
Plus, as soon as you unhedge a loaded short postiion while the market is going down, you know that will mark the very bottom of it and price will just continue to go against you
Make sense?