DislikedHello friends. I have discovered something. Please, help me to navigate if i am on the right way.
It is about controlling risk and snowballs.
It was very difficult for me to get to this point of understanding, so i ask you for help again. Please, who knows how this works, tell me that i am now rightly directed.
I have discovered this :
Imagine trades...
Example: 10000units is scout...Ignored
There's is much power in the skew. but practice it on demo, before you jump out with your money. You need first to learn to ride in the direction of the trend.
Don't ride with high skew for very long, your goal is to add as it starts it's break run in your favor, and then skew back out, with the goal of carving out the center of the move with the most positions. Your profit from that, is either banked or held in reserve for the remainder. The toughest part of this is the timing of adding in profit, but you can't over stay with high skew, and you can't add high skew after the big break run. It's all about feeling the pulse as the push starts and feeling it as it starts to lose momentum.
edit: personal thoughts here, once you've committed by adding and you start to take profits, you have to let that move finish and come back to you before you start the process over again. There are times you will add and the market takes off, you take some profits and the market just keeps going. Just like mistiming your entry, you missed the markets signal and exited before it was done. At this point you should still have your scout or some adds left, but fight the urge to jump back in, as this is a greed scorpion about to sting you. Any new adds will likely be added at the end of the move and trapped in skewed losses as the market retraces. So take what you can from what the market offers, but don't reach across the table and try to grab another handful of food from the serving dish, once you've passed it on.
Start small, enter your scout, and then when you feel the move starting in your favor add another one or two, and let that move push in your direction, when you feel it starting to slow, take off one of the adds leaving you with either you scout or one additional.
If it continues, ride with the other for additional pips, if it starts to retrace, take off the other add in profit, you still have the scout. If after you enter it reverses, kill the adds and your in defensive mode with your scout, if you are still in the trend direction, you have mistimed the market. Wait for the chance to rescue you scout or establish your base at a better level.
You want to watch the price in relation to your average position, once you start adding don't let it go in the red.
But do not fix your sights on 10 pips, that may be your average in certain market conditions, you will have some positions for 7 pips and some for 27. You might have a scout ride for 70 as you move in and out on the waves. But the market decides not you.
Wait for the market to turn and get in and dance.
regards,