In the past I have done a post about adding to a trade in my forex education article I wrote. Today I would like to expand on that by specifically talking about the benefits of adding to winning trades. Many professional traders add to winning trades to increase profits. Once you learn how to trade profitably it is important to then begin to look at ways of increasing profits since you already know how to trade profitably. One of those ways is to add to winning positions.
The first thing that is important with this strategy is that this must be done in trending markets only. This is because if you are winning and you add to your position and the market turns you will give up all your profits and we don’t want that happening, do we?
First Step Identify a trend and get into the trade.
Step Two: once you are in a profitable trade you will want to lock in profit. If the trend appears that it is going to continue then add to the position and risk the same amount of profit that you have locked in so now your second trade has no risk at all. IF you lose the second trade your first and second trade will be break even but if you win then you will double the reward. So you have no risk and twice the amount of reward. Sounds like a very good idea to me.
Here is a video where I explain exactly how this works.
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