Today (the first week of the second month i'm doing real trade), actually this morning(got a little busy, didn't get the chance to write about it here this morning). Anyway, i've finally understand something and would like to share it with you guys, my fellow "padawan". So my story goes.
so last monday(i think
) i saw RF1508 setup on EURCHF and decided to for it. The position was open, (while my GBPxxx pair was not - retracement didn't reach my limit). Now with one position open, the next day i saw opportunity on EURGBP. So what i did was, moved my EURCHF sl to 1:1 position and set my order for EURGBP and had this in mind, "even if EURGBP hits its sl i still got EURCHF to cover for the losses".
And this morning as i look over the chart and got the feeling that EURGBP might really hit sl and with both had one similarity in pair, the EUR, i started to have the feeling that chances are EURCHF might also reverse and hit my, now 1:2 sl. And if it does happen, i'm gonna have less profit. This reminds me of TFG comment on my previous post ["Well I wouldn't open two trades like AUDUSD and AUDJPY. I don't look into correlation maps or anything like that just use common sense.I try to stick with one trade at a time"]
Taking into account of my recent losses (AUDUSD) i realised that my trade might end up breakeven or worse some losses. This is when TFG advice became crystal clear to me (the reason for "why only one position at a time and hold on it until it either hit sl or tp). If i hadn't open the EURGBP, i should now enjoyed a profit (AUDUSD loss minus EURCHF Trailing 1:2 hit).
Conclusion to my understanding, it is totally unacceptable to open more than one trade accept on such situation:
1) On a particular day, say, there's an opportunity on 4 correlated pairs and i intend to open a limit on all pair by applying risk management e.g divide the risk to 4 equal amount and calculate the size for each position based on that (Just like what TFG wrote, i don't really remember whether its in one of his article or forum post)
2) If you got, say, EURUSD position currently open, it is only acceptable to open another position if its, say AUDJPY.
so last monday(i think
) i saw RF1508 setup on EURCHF and decided to for it. The position was open, (while my GBPxxx pair was not - retracement didn't reach my limit). Now with one position open, the next day i saw opportunity on EURGBP. So what i did was, moved my EURCHF sl to 1:1 position and set my order for EURGBP and had this in mind, "even if EURGBP hits its sl i still got EURCHF to cover for the losses".And this morning as i look over the chart and got the feeling that EURGBP might really hit sl and with both had one similarity in pair, the EUR, i started to have the feeling that chances are EURCHF might also reverse and hit my, now 1:2 sl. And if it does happen, i'm gonna have less profit. This reminds me of TFG comment on my previous post ["Well I wouldn't open two trades like AUDUSD and AUDJPY. I don't look into correlation maps or anything like that just use common sense.I try to stick with one trade at a time"]
Taking into account of my recent losses (AUDUSD) i realised that my trade might end up breakeven or worse some losses. This is when TFG advice became crystal clear to me (the reason for "why only one position at a time and hold on it until it either hit sl or tp). If i hadn't open the EURGBP, i should now enjoyed a profit (AUDUSD loss minus EURCHF Trailing 1:2 hit).
Conclusion to my understanding, it is totally unacceptable to open more than one trade accept on such situation:
1) On a particular day, say, there's an opportunity on 4 correlated pairs and i intend to open a limit on all pair by applying risk management e.g divide the risk to 4 equal amount and calculate the size for each position based on that (Just like what TFG wrote, i don't really remember whether its in one of his article or forum post)
2) If you got, say, EURUSD position currently open, it is only acceptable to open another position if its, say AUDJPY.
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