The power in building a position

Happy New Year to you all traders!

I trust you enjoyed the Christmas break and are all ready and primed for what will be an eventful 2019 in markets.

I thought Id start 2019 with a great piece of insight courtesy of one of my VTP clients. Ee Lyn is a promising trader who is progressing nicely towards consistently profitable  trading success. She is already managing funds and chipping away nicely.  I received an email from her last week updating me on her trading performance for December:

“Here are my trade results for the 2 weeks to year-end. I have kept my Gold trade open over the holiday period as it was in profit and I have been trailing the SL with the swing lows. Should have kept the last CADJPY trade going as well (I closed the trade manually) as my original target was W1 support at 80.50 (8R profit) and SL had been moved into profit prior to Christmas. The first CADJPY trade was entered on D1 chart, and the rest were adding to the position (entering on H1) when the SL for each subsequent position had already been moved to either break even or profit. I now see what you mean about adding to positions!!

CADJPY short +5R CADJPY short +7R Gold long still open USDCHF short break even US30 short +2.1R AUDJPY short +5R CADJPY short +5.4R CADJPY short +3.7R US30 short break even

I hope youd agree that’s a strong end to 2018. She’s posted a fine set of trading results and can take some personal and professional satisfaction in her performance.

I have for many years being mentoring folks that the way to make step-change in their equity curves is to look at riding their winning positions by adding to them. I call it “The Brasso Trade”.  As your man George Soros says:

I teach traders a very simple mechanical way to add to their position that also includes risk and trade management.  Now of course it’s much easier to talk about adding to your position than actually to do it so what I suggest is that people start by adding at the smallest amount possible – to get themselves into the habit of adding to their winning trades. Remember that is also very important – we are adding to winning trades. That is a very different proposition from averaging down on a losing trade!

Ee Lyn has very kindly provided me with some screen shots of one of her positions in CADJPY and has allowed me to share them with you all.

I hope it gives you some insight into the power of building a position and how adding to your winning trades is the way forward.  Perhaps you could make it part of your goals and objectives for 2019 to build an adding-on tactic to your trading plan?  I’ll be covering a small element of this in our Q1 Online Traders Forum on Saturday 12th January.

Ee Lyn has demonstrated some fine trading here and it bodes well for her continued success and development as a trader in 2019. I believe she’ll become a truly world-class trader and money manager.

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