Forex Calculation Tool to cut losses

Hi guys,

I am very new at FOREX so maybe i am saying some mistakes, be kind because i learn very quickly.

So imagine this scenario.

I'm in a position that never assume the losses ( optional, let's not discuss this please ).

I enter in position that went wrong, and now i am in a position of -100€ ( example ).
At this moment i can open a position in the other direction and i hold the -100€ losses ( probably 105€ counting the losses from the second position open ).
Is there any known technique to cut this losses to the minumun possible ?

Im thinking of, open the second position with the double size of the first, and if the price goes in this direction i can possible win some profit and some point, ot the price can aproximate from the first position and i can close both with half of the loss, from 105€ => 50/60€.

Am i thinking correctly ??
Is there a technique to help do this maths ?

I will start to investigate but i remenber to ask first because this should be a matter known by the comunity.

You have a logical error there. If you open a position in an opposite direction when another position is at -100 loss that means that you have already "closed" that loss. There is no way to avoid it.

I'm not sure if you are talking about using a hedge to offset on the same pair or not but IT WON'T WORK !! I'm still using demo's still because my % of trades are getting better but not as high as I would like. I'm experimenting with different ideas and really getting into the nuts and bolts of trading. (a friend introduced me to this in '04 but I'm just getting into it now).

I have learned one thing already profit is profit and loss is loss there is no way around it. As it goes you might have traded your "offset" properly so that would net you profit so it really goes to say that the loss you are experiencing is just that, cut and dry, a loss.

There is one EA I found helpful in the last few days its called "SL-TP_move-by-mouse" if you search the web you will run across it. This allows you to move your TP and SL by double clicking the line and moving it with your mouse!! I made $160.00 in 15 min by inching my TP up little by little and closed my SL to the min, all with my mouse on screen. No more modify order for me.

Oh and about the whole make up a loss thing, I'm sitting on a position that flipped on me because I didn't set a SL and walked away from my computer for about 5 min when I got back we were heading in the wrong direction, I didn't worry, I'm thinking "retrace" WRONG, check out EURUSD today, I got in 01-26-2010 at 1.4105, my time 4:08 pm I'm still down 140 pip on H1! I tried to "make up" for the loss, "NOT"! My "profit" is
-$2,840.00 This contract will be GTC because I want to see if it will retrace but that aside take it from someone who tried to make it up, after you get past the emotion and frustration Profit is Profit and Loss is Loss.

Bye for now,
B

Hedge trading is not really advisable, and if you're broker is NFA regulated it wont help you much.

Here is what I till today sometimes still do, but be warned that it is dangerous.

If you do hedge your original position I'll do so with the same size. I'll the do either one of two things....

1. Keep the positions until I get an opposite signal and one is in profit. I'll then let the market work the other one back hoping to make the loss smaller.

2. Open a third trade after the market chose a direction and hope for the best, closing that one with a new signal and entering again in the new direction until the complete loss has been eliminated.

Again I do not advised trading like this, but sometimes we do get caught in a range, with litle or no profit to start of with.

Also get use to the fact that all trades will not be winners, and that losing is part of the game. The key is good MM and one of the golden rules of trading.... let your winner ride and cut your losses short, but that was not your question

M

I like how simple you make this. people always try to make things complicated.

Thanks for the reply, I have only been trying my hand at this for about a month and found, like most things in life KISS = Keep It Simple Stupid = When I first started I only knew how to take a position and get out if it turned on me, didn't even know how to set SL and TP and was about 60% on my trades. Then I started learning about EA's and Indicators and other things my % dropped. Mostly because I was learning but when I close my office door and really pay attention my % goes up.

That said I feel there is only one way to trade " hands on ".

Most of us are here to grab $100 here and $50 there right? So sit down and do it, don't think there is some wonderful "bot" out there that is going to make you $$$ while you sleep. Some of the tools have their place and I use some, the important ones, MAO, MA3, MA5 and my favorite one that lets me move my SL and TP on my chart and I don't have to modify an order. This said thanks again, finally someone who might see this is not an infer-mercial product where you " set it and forget it " then in the morning you have more money than when you went to bed.

Thanks Again,
B