BackgroundWhen you start trading it is always a question on strategy. One could consider why close negative positions and decrease your balance. Why not to wait while position turns positive, close it and increase your balance instead. Seems quite good. But is it so? Possible strategyIt is quite clear that if you open one big position which takes all your margin and if market goes against you, it could take years while your position turns positive or it could never happen if you receive margin call. Of course there is possibility to continuously add additional funds and wait while market goes in your direction. But it could take long years. From statistical point of view it should happen sooner or later but from statistical point of view it also could take more time than human being could live on this planet! It seems not interesting perspective.Therefore another possibility comes to mind. To use small positions which takes little part of your margin and if market goes in your direction just close profitable position and if market goes against you open new position at some point with expectation to close this position when it turns profitable. If not - open one more position with …
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