Live: Splitting entries, Take Profits & Scaling Out
Hi all,
In today’s webinar, I focused on one of the questions I received from a member. It was about splitting entries while entering trades.
I also spoke about what I have been doing with the crypto and oil shares I have bought using leverage. Finally, Ashley went through E&S setups and also showed us a few trade ideas that were slightly different from mine but still had multiple reasons.
Don’t forget to watch my new Podcast with Tickmill, If you watch it please do so on YouTube and leave a “like” and a comment if possible.
Podcast Recording: Trading & My Investing Strategy
Splitting Entries
I use this strategy to enter trades to maximize my profitability. If you have been missing trades quite often by a few pips only for it to go 100+ pips you can use this strategy too. I usually put the lower lot size first and then the higher lot size lower depending on whether its a long or short. In this way if the trade goes further than your first entry you have a chance to catch the second entry and maximize your profit.
The EURGBP is a great example of this. You can see why I kept one entry higher and the other entry in my A-grade preferred area.
You can also do this with GBPNZD. Since the stop was big I have split the entries. You could also do it on GBPCAD and EURCAD but we still need big pullbacks.
Taking profit and scaling out
I first focus on how can I reduce my risk in the trade. Whether it is moving my stop loss, taking 10% off the trade, or closing it before a high-risk event if it’s too risky to hold. I look at the 4HR chart and focus on areas where the price has stopped before. I also look at the daily range because chances are if it has done its range or more, then it’s likely to stop.
You should also make a habit to scale out of the trade, this will help you massively in seeing your account grow. I tell my students to at least take 70% of their trade-off at 2:1 TP area. Then move your stop to a safe place and leave the rest to run if you think it will go further in your direction. Otherwise, just close the trade.
To calculate lot sizes I use the free version from Myfxbook, link below:
If you struggle with fundamentals and want a better understanding of macroeconomics, follow Marc Chandler. He has been in this industry for many years and knows what he is talking about. Link to his latest article below:
Dollar Retreat Extended, but Turn Around Tuesday may have Already Begun
Although the AUD dropped a couple of weeks back after a rate hike, the minutes from the meeting were still hawkish. Here is an article showing there was some correlation between USD/JPY, USD/CNH helping the AUD rise this week.
AUD/USD rises as RBA min retain hawkish bias
In the past few month, I have been sharing this article with you. Buffet’s Berkshire Hathaway sits on a record pile of $157 billion cash. Although his third quarter made a loss in the stock market as its currently weak, his operating earnings rose. Why do you think he has soo much cash piled up? Well, he is most likely waiting for the market crash to come and then piling in buying the stocks cheaply. Again not financial advice but it’s what I think.
Buffett’s Berkshire Hathaway cash pile hits record $157 bln with deals scarce
Here is also an interesting article on how the bond market ate the whole financial system. Bonds are huge and a lot of investors and banks put their money in them as they are considered one of the safest investments in the world.
How bonds ate the entire financial system
One last article to share with you, it’s very important to read behind the lines. Sometimes the headline can be misleading. The news is that Jamie Dimon the CEO of JP Morgan is selling his $140 mn shares. But if you read the article it says he hasn’t yet but is considering doing this from next year as he is getting closer to retirement and also for tax purposes.
Jamie Dimon $140 mn shares sale
You can watch the full webinar below:
Kind reagrds,
Marc
