Got to work on this "Add" or Pile-on" business. My adds are mostly pile-ons - that means, when I add I usually double or more than double my existing position. So the impact of that last add is always big.
Advantages of adds:
1. Give me additional profits when I get them right 2. I can scale-in slowly, and take minimal risk on my initial position
3. Allows me to dream. One of my dreams is that I get 1 move with all adds right, and pile-on my full trading capital in the move. And then the market just zooms in my direction, and the money multiplies x multiplies x multiplies x multiplies..... Wow!!
1. I almost never book profit on the last add... which is usually the big one. That add is only there to pull down my profit. (But you know, the add before that was the last add a few seconds back) 2. Adds force me to tighten my SL, and sometimes exit early from good move.
3. Difficult to manage multiple adds. If the move is quick (which is when i add more), I am sometimes clueless about the current position including adds.
Need to put thought on this add business.... should I minus the adds from my trading. Probably be thinking about that this weekend...
How about adding 1/2 with inetial pos?eg if ur inetial pos is 2 lots then add with 1 lot each only....(Thanks and remembering our SAINT sir on this scaling)
If ur inetial pos is big one then....decrease wise...eg 20-10-5-2-1...