this is a cooper_5e trading tip for when you mess up a trade and long the local top or short the bottom - why lose money and fees in a losing position, markets go up and down right?
Disclaimer; you must have some sort of idea of market directions, reversal, support/resistance etc.
So...
you longed the top (and think duh why did i do that) :-(
the market turns on you but you dont take loss well and decide to hold as you may do this and hold until you can breakeven (so you can relax)
what you need to do is wait for temporary reversal signs in the market and add to your long (daunting i know)
when the momentum pushes up your loss reduces (yay) but having doubled your stack means your liq is closer now.
when you see its topped out you reduce position (do not close entirely) - nice, youve banked some cash now.
but the banked cash isnt a win yet as all you have done is lower your liq mark - good idea in leverage state
the market drops again and your -% increases, you see reversal - repeat the above steps - more in bank but unusable too.
the market drops agani, repeat, however this time theirs a ripper candle that passes your average entry, this means your in +% and your monies made on the way down are banked as profit :-)
here you can exit at breakeven... or hold for further glory
this is a roulette cheat of double down (oops im giving gambling tips now) where u can take many loss but each time double up until the color you sat on wins, changing direction mid game may continue bad fate
i dont do this technique too often but if im tired or making rash decisions it can be a good way to make money whilst losing to increase the wins when winning ;-)
Disclaimer; you must have some sort of idea of market directions, reversal, support/resistance etc.
So...
you longed the top (and think duh why did i do that) :-(
the market turns on you but you dont take loss well and decide to hold as you may do this and hold until you can breakeven (so you can relax)
what you need to do is wait for temporary reversal signs in the market and add to your long (daunting i know)
when the momentum pushes up your loss reduces (yay) but having doubled your stack means your liq is closer now.
when you see its topped out you reduce position (do not close entirely) - nice, youve banked some cash now.
but the banked cash isnt a win yet as all you have done is lower your liq mark - good idea in leverage state
the market drops again and your -% increases, you see reversal - repeat the above steps - more in bank but unusable too.
the market drops agani, repeat, however this time theirs a ripper candle that passes your average entry, this means your in +% and your monies made on the way down are banked as profit :-)
here you can exit at breakeven... or hold for further glory
this is a roulette cheat of double down (oops im giving gambling tips now) where u can take many loss but each time double up until the color you sat on wins, changing direction mid game may continue bad fate
i dont do this technique too often but if im tired or making rash decisions it can be a good way to make money whilst losing to increase the wins when winning ;-)