فوركس ساتو

COMPOUND GAINS VARIATION 1
Ok, let’s say right now (at this moment in time) the prices are
around point C. Obviously you would place your entry order at the
price level of B, and your stop is at A (trade 1).
Now prices continue along the green line from our diagram. Prices
go up to D and start dropping to E. It looks like here is another
good place to enter a trade at D with your stop at C, but really it’s
not.foreex sato
Why is this not a good place to enter your second trade? Well, what
would happen if the market would turn around now. Your second
trade would get stopped out at C, as would your first trade (because
you would have moved your stop of the first trade to this point). As
you can see visually, both trades would result in a loss (not good).
At least move the stop of trade 1 to point C so at this point if your
trade goes bad you get stopped out for just a tiny loss.
Ok, so you forget about entering your second trade here, and you
continue to wait. Now prices continue moving upwards and you get
to point F, and it starts moving towards G. Now you may consider
entering your second trade at price level of F with a stop at E (trade
2). As soon as your trade is executed (prices go up and your trade
becomes active) then you immediately replace your stop from your
first trade to this level (E). So now both of your open trades have
their stops at E.forex sato
What would happen if the markets turned around now and you got
stopped out (both trades)? Well, trade 2 would be a loss, while trade
1 would be a profit. In an ideal world having both stopped out
would result in a small net profit, or a break even. Don’t enter trade
2 if it would mean that the net loss would be greater than 10 pips
(keep your risks small while going for super gains).
Let’s say that the market keeps moving up. Now you have two
active trades. Prices now have reached point H, and are dropping to
point I. For much the same reason as explained above, we won’t
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enter a trade here, as your stop for all three trades would be at G,
meaning that one trade would be a winner while two would be
losers. So you don’t enter a new trade here, but you move your
stops of the other two trades to G.
Now the markets have reached point J. Here you would enter a new
trade (after prices dropped a bit, not shown in diagram) for the same
reasons as explained above (trade 3). All your stops would be set at
the price level of I.
You would continue with this method until you either get stopped
out, or if you manually exit the trade (as will be explained after the
following variation).
As you can see, you have safely added more lots (3 in this example)
to catch more gains from this nice price trend.forex sato
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