This is something I've been considering lately... Wondering what you all thought. Normally, when I take out a trade, it almost alway goes against me initially (like in the first minutes after taking it). So what I'm wondering, for example, if I took out a trade, with a 20 pip stop loss, would it be better to say enter a trade for 3 lots right off the bat, and live with the result either way (risking 3 lots for -20 pips) or perhaps take 1 lot trade, then if the trade goes against me 10 pips, enter a 2nd lot, and then if it continues to go against me to 15 pips, enter the 3rd lot (risking 1 lot at -20, 1 lot at -10 and 1 lot at -5).
The risk seems to be less this way, but the winners would obviously most likely be less profitable as well unless you happen to find yourself at one point -15 and then it turns your way (which would also get you to break even quicker). So I guess my question is, what seems like the better situation?
Thoughts?
The risk seems to be less this way, but the winners would obviously most likely be less profitable as well unless you happen to find yourself at one point -15 and then it turns your way (which would also get you to break even quicker). So I guess my question is, what seems like the better situation?
Thoughts?