EURJPY – Added to my trade – Trade Management
Earlier this morning I got another signal to go long in the EURJPY and decided to go long again, increasing the size of my trade. This goes against the usual trading practices as most traders try to “secure” some profits (taking partial profits) once the market moves on our favor… Here is what I think: If the market moves in my favor, I know that the likelihood of my trade hitting the TP order increases, why would I take partial profits limiting my profit potential? Instead of limiting my profit potential what I’m trying to do here is increasing my trading size, in case the market hits my TP order, my gains will be larger…
I have certain rules about how to add to a position, one of them is that on my first trade I should not have nothing at risk, meaning that at least my SL order on my first trade is at break even (I have it here at +64 pips). Here are the numbers of this trade:
SL: 116.55 (locking in +64 pips)
If the market goes against me and stops me out, I will make 23 pips (+64 pips trail stop on 1st trade – 41 pips 2nd trade SL).
Now, if the market goes in my favor and hit both TP orders, I will make 705 pips (405 on my first trade + 300 pips on the second one).
How do you manage your trades? Feel free to comment…