MightyOne wrote:STEP 1: POSITION
Your only short trade is from the price of 1.3427; where you actually enter a trade is irrelevant.
The fibo is telling you that your lowest price for a short trade is 1.3311.
STEP 2: LOT SIZE
So long as 1.3427 remains untouched, you are committed to increasing your lot size.
You are not trying to be right about direction, you are trying to GET PAID if you are right about direction:
The average trader will short 4 lots (your min size) and make 50 pips(!) or $200.
The Space trader will build a position to 20 lots and make the same 50 pips or $1,000.
(5 times more money ---> that's = 5 winning trades in one shot for the same risk!).
The average trader might hold for 200 pips and make $800.
The Space trader makes greater than $4,000 over the same space.
If both traders are the same person then he will have the same stops/position, the same number of losses/wins, but much different results esp after compounding.
But it gets better:
Lets say that you build your size to 20 lots and liquidate for a loss of most of your space at 1.3400 & 27 space remains.
Your new space looks like this: (20/4) * 27 or 135 pips.
Your total space in the picture was 116, you are +19 pips!
LOTS convert to SPACE
SPACE converts to LOTS
Adding size on a RET, when you are flat, does not harm your position; it simply adds to your potential.
STEP 3: PERCENT GAIN
If your min lot size is $4 then you have a $10,000+ account.
If you made $4000 (20 lots, 200 pips) then you are up ~40%.
Your targets are intervals of 12.5% & at each interval you decide then and there if you are going to hold for more or liquidate (stick to your decision!).
RECAP:
You can do ANYTHING with entries so long as:
1) you have position
2) your size is increasing
3) you are targeting %'s
This is Space Wars.
THIS IS THE Space quote of all space quotes!!
Im so happy Im going back to the future.
You do know june 9th 2015 was the day Marty McFly
Punched into his Delorian??
