How To 'Stack' Trades In Forex Trading

[moonchild]

Do you know there are forex traders that make 100x returns consistently and even though these people are not reported by forbes they actually exist and the secret of these kind of folks is 'Stacking', and stacking trades means opening multiple positions in the same currency pair, with each position having its own entry point, stop-loss, and take-profit level. The idea behind stacking is simple, to capture more of the market's movement while reducing risk by scaling out of a position.

To get started in stacking you have to identify the current trend in the market, before you start stacking trades, identify a trend in the market. this will help you determine the direction in which you should be opening positions or closing if you are in already, if you understand a trend then go ahead and make an entry look for key support and resistance levels where you can enter the market, make sure the market is volatile when you do this and then set stop-loss and take-profit levels.

After doing the above the next thing to do is monitor your trades and keep an eye on them and please DO NOT LEAVE YOUR TRADES, babysit your trade till you exit the market and adjust your stop-loss and take-profit levels as the market moves in or against your direction and then scale out of positions ss the market moves in your favor.

 

[marym]

While it is true that some traders may use stacking to achieve high returns, it is important to note that stacking can also increase the risk of loss. Opening multiple positions in the same currency pair means that if the market moves against you, you could potentially face multiple losses instead of just one. Additionally, stacking requires a lot of skill and experience to execute properly. It is not recommended for novice traders to attempt stacking until they have a thorough understanding of the market and have developed a solid trading strategy. As with any trading method, it is important to always manage risk and not put all your eggs in one basket.

 

[moonchild]

Yeah, it is true, it is not for beginners though because you'll first have to identify the currency pair you want to trade and this can be based on a variety of factors, like market trends and price action. and once you've identified your currency pair, you'll want to determine your entry points - this is where you'll 'stack' your trades and this can be pretty much hard for a beginner.

But then are a lot of different technical indicators and chart patterns you can use to identify key levels of support and resistance, as well as potential breakout points. once you've identified your entry points, you can stack your trades easily

Setting your stop loss and take profit levels is really important in stacking and I cannot say this enough, because it helps you manage your risk and avoid losing more than you can afford which is the issue for most beginners.