Forex Education: Adding to Your Trade

This is a combined Forex Video Tutorial and written forex education tutorial, to meet peoples different learning aptitudes. You have the opportunity to follow me on Twitter to get the latest updates.

I have found that trade management is one of the most important tools a trader can use to improve their trading profitability.

There are many trade management techniques that may be implemented. For the scope of this training I am going to focus on adding to a position. The technique helps to leverage my trades for increased profits.

Steps for adding to a trade

  1. Have clear entry point, Stop Loss, and targets as defined by your trading plan.
  2. Must not exceed your predetermined risk parameters.
  3. Have predetermined set rules for adding to your trade.

How I do it

  1. I first split my trade risk in half and open the first half of my position.
  2. If the requirements for my trade are still in place I then add the second half of my trade at the correct time.
  3. Note the adding will be done if the trade is positive or negative.

Example

Enter on a daily trade setup (see Chart Below)

After Entry price moves against you 50 pips begin looking for an opportunity to add.

Wait for the entry requirements to confirm a re-entry as long as it does not pass your initial stop loss. (see example)

  • Keep the stop loss at the same technical level as the initial half.
  • Since Stop Loss is shorter adjust trade size to equal the same amount of risk as the first half.

The Video has two examples for those of you that want more information.

Thanks for stopping by if you have any questions or comments please do not hesitate to contact me.

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Casey Stubbs is the founder of Winners Edge Trading, which is one of the most widely read forex sites on the web. Winners Edge Trading has trained thousands of people to trade the Forex markets.

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  • Agbogodwina

    Thanks Casey. This video has answered some of the questions that has been bordering me.

  • Thanks so much John, I appreciate the comment and I am glad I helped you.

  • JS

    What can I say?-Brilliant!! Another piece of the jigsaw filled in!

  • Yes every trader has to adjust the money management so that it suits their personal trading strategies and also personalities.

    Thanks

    casey

  • Thanks for the great comment, I appreciate it. You are right good money managment is the key to improving profits. Thanks for sharing that with us.

    Casey

  • Pamateriales

    HI CASEY, GREAT JOB ON THE VIDEO, VERY INTERESTING, STILL, I THINK I’D TAKE MY STOP LOSS A LITTLE LOWER WHEN YOU SAY TO TAKE IT TO BREAK EVEN, SO I’LL HAVE AT LEAST A CERTAIN WIN TO PUSH ANOTHER SHORT POSITION, FINALLY HAVING A FREE TRADE WITH A LOT OF POTENTIAL, BUT THAT’S ME,

  • Spider

    One of the best videos about trading I have ever seen. Risk management is very important but it is only a matter of mathematics and discipline. Trade management is harder to learn and requires more practice. Those who take the time to practice practice practice become professional traders and make great returns. I have my own system that uses no indicators and is successful 80% to 90% of the time and it made me money. After I learned how to better manage my trades, my profits tripled on the same trades. Thanks again Casey from me and all the learning traders out there. I suggest that all traders watch this video at least 3 times.

  • Thanks Lionell I am glad that his can be of use to you.

  • Lionell Dixon

    Good Stuff Casey. I really appreciate you and the things that you and your staff does for us. Great information that hits a home run every single time. Thank you.

  • Thanks Tom

  • TomR

    Great video Casey — very well illustrated.

  • Marcnic

    Very informative and will definitely be working into my trading program