Today, I would like to share one of the trade management strategies which I like most. I have been testing this management quite a long time and in my opinion is one of the most powerful tools in trading. Trade management as a part of the risk management is highly related with trading style and ability to hold good decisions in various time frames. This setup is highly recommended for long term traders or investors but in fact, there is no limitation to use it even during the high volatile days at single trading session.
Small curiosity – Many of huge institutional futures traders with lot of money and thousands of lots in positions trades the same way especially during the trading sessions with clear direction. In fact, there is causality between their trades and direction of the day, because they are key market movers. You can see it in a Depth of market (DOM) if you are familiar with reading of orderflow. So let’s take a look what this is all about.
Same picture for all of us
Let’s say that we have a guy who strongly believes that AUDNZD rate has a huge potential to rise. It is a beginning of the year and our guy sees picture like this front of him.
No matter what analysis he c…
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