As I discussed in my earlier write-up When to hold'em and when to fold'em Part 2., I can't put a third lot on now with low risk to my precious trading capital, so I will take the first lot off in profit and add a new one on. Then the risk of the trade is fully offset with the profits already made. So, first the oldest lot is cashed in for profit, and then the new one is placed on, and the stop is adjusted. Now this trade is fully funded, equity curve is moving up nicely (+103 pips), and the trade contains no overall risk. When spacing is available again, I can put the third lot on with no worries. If there is a retracement and I'm awake, I'd probably exit this 2 lot set-up at a break even point and walk away with my 103 pips profit ready to try again. If I'm asleep a retracement might run it all the way to the stop and I only get 20 pips or so profit, but I have to sleep sometime. Questions?
Edit: This might seem like a lot of back and forth effort here, but I have a goal in mind. That's to establish an extremely profitable long term multi-lot position trade with a minimum of risk to my trading capital. While that might seem like an impossible task, I'm here to say it's not impossible, but it might seem very difficult and frustrating if you don't have a clear map of how to get from here to there. My goal is to show you one way to get there without a retracement blowing through leaving you with a loss after having been way ahead and wondering, WTF? If I can navigate these treacherous waters at least once, right before your eyes, then you'll know not only that it can be done, but at least one way to do it. Then you can follow this well worn path through the woods, or perhaps find some shortcuts yourself in the future. Just be sure that if you wander off, that you know just where you are going and what the risks are. There are hundreds of dead ends that can leave you wandering in circles until the end of your days. We know just where we are going, a very profitable long term multi-lot trade put on with minimum risk to our trading capital. Lets keep our eyes on the prize.
Edit: This might seem like a lot of back and forth effort here, but I have a goal in mind. That's to establish an extremely profitable long term multi-lot position trade with a minimum of risk to my trading capital. While that might seem like an impossible task, I'm here to say it's not impossible, but it might seem very difficult and frustrating if you don't have a clear map of how to get from here to there. My goal is to show you one way to get there without a retracement blowing through leaving you with a loss after having been way ahead and wondering, WTF? If I can navigate these treacherous waters at least once, right before your eyes, then you'll know not only that it can be done, but at least one way to do it. Then you can follow this well worn path through the woods, or perhaps find some shortcuts yourself in the future. Just be sure that if you wander off, that you know just where you are going and what the risks are. There are hundreds of dead ends that can leave you wandering in circles until the end of your days. We know just where we are going, a very profitable long term multi-lot trade put on with minimum risk to our trading capital. Lets keep our eyes on the prize.
