Please tell me who all are reading this blog and give your comments
All the readers of my blog, please tell me about yourself in the comments section, and tell me how you feel about it. It will give me a kick to write more stuff like this.
Tuesday, December 21, 2010
why it is easier to trade with multiple lots
I feel it is easier to trade with multiple lots. As I trade using only the market generated inforamtion, no other fundamental news or classical technical indicators, I think market generated information can only tell you which direction the price has more chances to go, so, by using it you can only know whether we shall buy or sell, but we can't predict a target for this or I should say there is no logical target for any trade, you can only define your risk. So, we shall try do the same, try to predict the direction of price, define your maximum risk, put on the trade, let it run, until the market generated information does n't tell you that market is probably gonna turn its head. But usually market does so, when market is not at the maximum profit you have seen in that trade, and sometimes it happens when even after seeing a big profit, it comes below your long position or above your short position. So, if you are trading with multiple lot size, you can scale out at various prices which are not the logical targets, but possible turning points.
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