Page 97 - Ultimate Guide to Currency Trading

and take a dive. So, you will be protected, yes, and you will win in your trades, (even if only by a small
amount)

Build Up Your Positions at Slower Rates

The key is to find ways to protect your account and at the same time, build up the positions at a
slower rate. This slower rate will give yourself time to build the position and insulate you from any
market movements against you. This will be done in a kind of dollar cost averaging. For example, you
could start with 100 units in the morning, and then check your smart phone for the status of your
trades. The position could be down; if it is, add more units in proportion to how much it is down. If it is
down a lot, add 100 more units. If it is down just a bit, add only 25 units. The idea is that you will be
adding when you are down in a method of buying on the dips. This buying on the dips can go a long,
long way in keeping your trade profitable once the market does turn around. Just think, if you have
made ten or fifteen buy-ins over a three or four day period and then the market does fall, you have
prevented yourself from blowing up your account at the first sign that the trade is moving against you.
At the same time you will be adding more and more of a trade that you have a strong idea will work.
In this case you would never want to overexpose yourself. The maximum trade exposure would be
two-fifths of your total available margin. If, after three days, things haven't happened, but the market
has slowed down, then you too take a breather. This would be a good time to walk away from the
market and enjoy one of your other hobbies, whether it be collecting coins or playing sports. In times
like these, you have to remember, the trades are good. You know you will be worried. You know you
will keep checking. Try to take it easy and go for the medium- to long-term and wait for the trades to
turn. If you want, you can enter in some take-profit points to alleviate any pressure that you might
miss the trade. Most people find that the adding of a take-profit point to a longer-term trade adds to
the problems of checking. The best thing is to let the trade ride and come back to it when you have
cooled off a bit. Look at it with a fresh eye, and wait for the trade to turn around. Remember, it's a
good trade, you've thought about it. Let the trade work for you.