Hi WaveRider,
"....
Please, keep the advice coming."
WaveRider, I don't know whether my "good advices" are that good as I am very sure some seasoned forex trader veteran do not agree with my trading style. But, as I was informed right from the start of my forex journey, all new traders will eventually develop their own individual trading style & system that best suit them as no two traders will trade exactly the same way. I guess that's the unique human factor
Ok, another trading strategy which I have very recently adopted in my forex trading strategy was a remark made by one of my business associates who has absolutely no experiences in forex but is a shrew businessman.
When I mentioned to him that at times I am "forced" to cut my losses due to market reversal, he asked me why I have to do that? I told him that if I don't take the losses or to hedge them to increase my equity these losses might jeopardize my trading account leading to a margin call and possible account stop out.
His simple answer is, "Why don't you dump in more capital into your trading account since, as you said, the market will eventually reverse turning those losses into profits;right? If you take these losses, that money would be gone and you will be down so many percent of your capital or profits. But if you add in more capital, you not only keep your account safe but have the potential to add more profits into the account if some good trading opportunities arises".
That makes perfect sense to me and so, from now onwards, I will simply drown my losses with more capital. I don't have to use all the available free margin but simply keep them for entering trades when good setups are present.
I think I will dump in more spare capital into all my existing trading accounts as I don't have to use them all to make trades, but it does give me the luxury of choosing to use or not to use these spare capital as I see fit and, if I enter good trades setups, I will be able to make more money than any bank in the world will give me for interest
As I have mentioned, I am sure a lot of traders emphatically do not agree with my trading style, but that's my style and I am comfortable with that.
So, my young friend, I wonder what trading style you will adopt as you matured in trading the forex!
All the best!