Position building and working with positions. This is the key to profit.
I learn this very important technique among other things from Oliver Velez.
Positions building as pyramid with light on the top and very heavy on the bottom.
This how I work with my positions.
Let’s say today make my first little buy at 32900- black line
Then it drop to 32122 i got more but this time little more than first buy blue line.
This brought my average price down to pink line. The price then move up to 33000 i close most of positions at that level now i got profit and i have my buy position open at pink line level. If price will move up I keep it, if price will move down i am ready to build it more.
Or i can close everything at 33000 and done for the day.
Or i can do like novice trader does: got in all at once at black line 32900. I would be sweating and praying for price to go up. And wondering how professionals trading and making money every day. Or even worse get stop out at 32000 and watching price to go to my entry and then continue higher, and that will lead to the next disaster on the next trade instead close the loss i will hold positions and wait for comeback until losing half of account.
I learn this very important technique among other things from Oliver Velez.
Positions building as pyramid with light on the top and very heavy on the bottom.
This how I work with my positions.
Let’s say today make my first little buy at 32900- black line
Then it drop to 32122 i got more but this time little more than first buy blue line.
This brought my average price down to pink line. The price then move up to 33000 i close most of positions at that level now i got profit and i have my buy position open at pink line level. If price will move up I keep it, if price will move down i am ready to build it more.
Or i can close everything at 33000 and done for the day.
Or i can do like novice trader does: got in all at once at black line 32900. I would be sweating and praying for price to go up. And wondering how professionals trading and making money every day. Or even worse get stop out at 32000 and watching price to go to my entry and then continue higher, and that will lead to the next disaster on the next trade instead close the loss i will hold positions and wait for comeback until losing half of account.
