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[20:27:40] jordan: let's try something different. First let's put into place theory and work back from that
[20:29:01] jordan: starting with position X (let's call it's size 100). If we start with 100 and as it moves into profit we subtract (as described above) the position gets smaller as we move into profit
[20:29:28] jordan: our risk is whatever our risk was with the total original position.
[20:30:37] jordan: now if we start again with position X (size 100) and as it moves into profit we add additional size (20) and move the stop to break even (we now have reduced our original risk to zero and increased our position size
[20:31:16] jordan: again as it moves into profit we again add one more time (size 20) and move stop to break even again. Looking to take profit with the size now (160) and no risk.
[20:31:50] jordan: on trades stopped out (size 100) our risk is much smaller than on trades that profit out (size 160).
[20:32:29] jkapf: ok, following you....
[20:32:42] jordan: additionally the stop (at size 100) would also be smaller than the gain (size 160). Or for example stop 100 pips at (100) target 200 pips (size 160)
[20:33:20] jordan: additionally on top of that - (we have everything in our favor here) we increase the original size (100) after each losing trade.
[20:33:44] jordan: this puts EVERYTHING on our side structurally
[20:34:03] jordan: does that make sense - in theory?
[20:35:18] jkapf: in theory, yes....
[20:36:08] jordan: let's work backwards from that
[20:36:52] jordan: i know that wasn't perhaps explained or articulated in the past way. Are you still able to grasp what I am getting at?
[20:38:18] Belinda: I'm not sure I'm following all of this, but is there anything we are doing today?
[20:38:52] jkapf: it makes absolute sense to add additional positions while trade is in the profit.
[20:41:08] jordan: no today Belinda, but for sure Sunday evening (monday at 0gmt)
[20:41:44] jordan: growing the position (setting stop to break-even and reducing risk) and growing profit potential.
[20:41:44] Belinda: OK. Thanks. I hope I can be around then.
[20:42:07] jordan: the other way we were starting from position X (100) and reducing.
[20:42:35] jordan: if not I will bring you up to speed when you can be
[20:43:13] Belinda: thx
[20:44:14] jkapf: don't feel intimidated Belinda... it sounds complicated in the beginning, but you will learn... Jordan is a pretty good teacher!
[20:44:39] Belinda: thanks
[20:47:51] jkapf: I guess your thinking is to have much smaller but more frequent steps added to build up various trades...
[20:49:28] jordan: did you ever make this mistake? start with a position and then as it goes against you add to it, then again as it continues to go against you add to it again. Then it snowballs against you wiping you out as you keep 'hoping' it comes back?
[20:29:01] jordan: starting with position X (let's call it's size 100). If we start with 100 and as it moves into profit we subtract (as described above) the position gets smaller as we move into profit
[20:29:28] jordan: our risk is whatever our risk was with the total original position.
[20:30:37] jordan: now if we start again with position X (size 100) and as it moves into profit we add additional size (20) and move the stop to break even (we now have reduced our original risk to zero and increased our position size
[20:31:16] jordan: again as it moves into profit we again add one more time (size 20) and move stop to break even again. Looking to take profit with the size now (160) and no risk.
[20:31:50] jordan: on trades stopped out (size 100) our risk is much smaller than on trades that profit out (size 160).
[20:32:29] jkapf: ok, following you....
[20:32:42] jordan: additionally the stop (at size 100) would also be smaller than the gain (size 160). Or for example stop 100 pips at (100) target 200 pips (size 160)
[20:33:20] jordan: additionally on top of that - (we have everything in our favor here) we increase the original size (100) after each losing trade.
[20:33:44] jordan: this puts EVERYTHING on our side structurally
[20:34:03] jordan: does that make sense - in theory?
[20:35:18] jkapf: in theory, yes....
[20:36:08] jordan: let's work backwards from that
[20:36:52] jordan: i know that wasn't perhaps explained or articulated in the past way. Are you still able to grasp what I am getting at?
[20:38:18] Belinda: I'm not sure I'm following all of this, but is there anything we are doing today?
[20:38:52] jkapf: it makes absolute sense to add additional positions while trade is in the profit.
[20:41:08] jordan: no today Belinda, but for sure Sunday evening (monday at 0gmt)
[20:41:44] jordan: growing the position (setting stop to break-even and reducing risk) and growing profit potential.
[20:41:44] Belinda: OK. Thanks. I hope I can be around then.
[20:42:07] jordan: the other way we were starting from position X (100) and reducing.
[20:42:35] jordan: if not I will bring you up to speed when you can be
[20:43:13] Belinda: thx
[20:44:14] jkapf: don't feel intimidated Belinda... it sounds complicated in the beginning, but you will learn... Jordan is a pretty good teacher!
[20:44:39] Belinda: thanks
[20:47:51] jkapf: I guess your thinking is to have much smaller but more frequent steps added to build up various trades...
[20:49:28] jordan: did you ever make this mistake? start with a position and then as it goes against you add to it, then again as it continues to go against you add to it again. Then it snowballs against you wiping you out as you keep 'hoping' it comes back?
[20:50:11] jkapf: oh yes... gamblers bad luck ...
[20:50:35] jordan: the opposite needs to be applied
[20:51:16] jordan: to be honest the initial entry can even be random - it is how the trade is managed that is important. However we should give ourselves the best edge we can for entries
[20:51:39] jkapf: I like the idea of building up a larger trade if we are in profit. Combined with carry trades when it will resume again, it can be very profitable.
[20:51:16] jordan: to be honest the initial entry can even be random - it is how the trade is managed that is important. However we should give ourselves the best edge we can for entries
[20:51:39] jkapf: I like the idea of building up a larger trade if we are in profit. Combined with carry trades when it will resume again, it can be very profitable.