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Resolved Question
Do you strengthen your position when the trend is confirmed while you're in a trade?
over 2 years ago
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I usually add to my position if the price action goes my way. However, I don't add more units than my original position. If I entered the trade on 50K units, I usually add two or three 10K-sized units if the price breaks some key support/resistance levels as it confirms the trend I expected.
over 2 years ago
Answers (2)
Yes, I think every trader does it all the time. You just need to find a way to do it within your overall risk management scheme. If you are trailing a stop adding to a position, you need to account what it does to the risk you’re taking.
over 2 years ago
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Yes I have done this, but I only add a partial amount to my position and I plan this ahead of time. I want to be sure how much I am risking on each of my trades before I enter any position. I try not to add on impulse because I may be wrong about the move and end up losing a lot more than I anticipated. If you plan to strengthen your position, make sure it's part of your trade plan. You may also consider moving the stop loss or use a trailing stop loss to limit your loss or to lock in profits.
over 2 years ago
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