Building Positions in Forex Trading

[moonchild]

When you're trading there are times when you get into a trade and it goes in your direction what most people advise in such instances is to move your stop loss to break even and ride away your position but the most ideal is to basically add to it since you're right.

If you're right you should build a position and how you can do that is to add to your winning trades after every retracement in the market and then move the former stop loss to break even and the current new position stop loss should be moved to the old position.

So even if the market reverses you'll be able to loss just one unit but if it goes in your direction you'll make more money instead of just entering one position.

 

[FinTrader]

This is similar to pyramiding in trading. And this is indeed a very profitable solution when new positions are added in the same direction of the trend movement. In this way, we reduce the risks, as we add orders to already profitable orders, thereby constantly increasing profits.