Lesson 13 advanced trade management techniques Welcome to Lesson 13. My name is Sam ADA. I'm a global macro Currency Trader and the owner of effects from New calm. This is the advanced forex course for smart traders. Market wizards Scott Ramsey said it's not about being right. It's about making money.

It's the ultimate forex traders dream have a big possession on a trade that goes your way and get out with a large profit. And with all the large moves in the Forex market, it should be easy, right? Turns out is not as simple as you might think, to manage risks on a large position. And then to get out with your profits before the market reverses requires hard work and lots of it. Instead, you can use trade management roles to build your position. limiting your risk, and then to hold on to your profits when it comes time to exit.

This is the crux of how you as a retail trader can grow your small account into a big one. It's by implementing trade management techniques daily build a large leverage position while minimizing risk that you have the opportunity for big profits. These techniques involve scaling into and out of a position, reentering a position, trading around a core position and building a risk free position. Advanced trade management techniques work hand in hand with the complex exit strategy in this 12 part this lesson in lesson 12 I focused on managing your position after the trade is placed. Your position sizing model from lesson seven is also linked to your trade management techniques. Don't try to be 100% right when you trade.

By using a series of structured entry and exit points throughout the trade, you don't have to be 100% right on your timing, you simply have to be right on your idea. Of course, if you're spot on with your timing, it can be helpful, but it's not necessary to win big in the market. Once you have an idea and the price action is in alignment with it, you can then start to develop your position. If you are right in the price action continues to confirm your idea. You can continue to grow your position to a meaningful size. If you're in a position, and you sense that the market is about to turn, you can begin to light in your position.

If you are wrong and the market continues to be favorable, you still have skin in the game and can rebuild your trade. If you're right in the market turns in continue to lock in profits. Contrast this with a single position approach. One if you take a full size position and lose, then you will have lost the maximum amount to. If you take all your profits in one go in the market continues in your direction, you have broken one of the cardinal rules of trading and cut your profit short. In particular, this type of approach is suited to the retail trader and allows you to focus more on your position sizing and risk management, which is one of your agents over larger market participants, and less on being right on the particular timing, which is a challenging skill to master.

Market was at como Shea said having a beautiful idea does not get you very far. If you don't do it the right way. implementation is more important than the trade idea itself. It's not about being right. It's about how much you make when you are right. Have you ever picked the trade perfectly and then not done anything about it with taking only a small possession?

All the while the market did exactly what you thought it would your problem Was implementation. Many of the market was it's talking about how implementation of the trade idea they have developed is more important than the trade idea itself. If you have a good idea, but failed to capitalize on it, or effectively manage your risks in the idea itself is pretty worthless. The concept behind advanced trade management techniques is to implement trade ideas skillfully based on your own trading objectives. Scaling in with low risk entry points. While there are a number of ways to profit from the currency markets, one way is to take a big position and ride it hard.

If the market goes for you and you're highly leveraged in the right direction, your profits can be grand. Of course, this is the goal of scaling in to build a large position so that if the market moves in your favor, it will generate a significant profit. Scaling into a position is when you place a number of trades over time and at different prices with the goal of building a larger position But taking a small initial possession that if it goes against you causes a small loss, then you are protecting your core capital. As the trade goes for you, you can add possessions, you have the profit from the original position to cushion you from any fall in the price of your new possessions. This keeps your overall risk on the account at a manageable level, while at the same time keeping the running for very large profits.

Stockings gallon points, you can develop many different formulas for scaling into trades. But one of the best ways to do it is to stalk low risk scaling points, like you would low risk entry points. For example, if the price breaks through key levels, you get a pullback and a race Okay, no in the direction of your trade, or you get some news that is supportive of your position, then you can add additional positions to the trade. There's no need to be complicated about when you scale and the most important thing is to have a plan to follow it. Combining your position or using multiple stop losses. As you scale into new positions, you have some choices to make about where you place your stop loss.

You can treat each new position as an individual position. With its own stop loss, you can manage the risk and positions together with one combined stop loss. If you treat each position separately, you may end up being stopped out on some of your scan and entry points. But you will not suffer such wild swings in your equity throughout the trade. Managing the rest together with one stop loss is the more aggressive option is it means you generally end up with a larger position if the trend does go your way. market was it poetry to Jones said hopefully I spend the rest of the day enjoying possessions that are going in my direction.

If they're going in my direction, I have a game plan for getting out scaling out of a possession. Once you have carefully crafted your large possession using a scale and methodology, you may not want exiting out of it to be an all or nothing decision. Again, it comes down to your psychology. If it is a tremendous pressure to be right about where you exit, then you are highly likely to make mistakes and cut your profits short what to hold on and hope. Instead, if you have a series of exit rules, and then you use them to appropriately scale out of parts of your trade, then you don't have to be perfect in your timing define profits from the market. Sometimes you exit a position and based on market action, you want to get straight back in.

At other times you might take profit and look to reestablish your position later. To do this, you can use a reentry methodology. green trees are used in two circumstances when you close the entire position or when you close part of the position. If your stop loss a trailing stop for your position is hurt, then you will be closing your entire position, but often stops get hurt in the market reverses in your favor. In this case, you can choose to either reenter the whole position or to start to scale back into the original position. When you do take profit, you might look to reestablish power all of your position at a better price is the market does not always go in a straight line to your objective.

The strategy of selling at key levels and waiting for pullbacks can work very well. In fact, you will find a lot of old dog traders who use this as the primary strategy. Trading against and hedging the core position. Trading or hedging a core position is really about your trading mindset. When it comes down to it exiting part of your position has the same real effect as trading against a hedging a position. If you have short term lots in your buy three lots in unit seven lat short No matter if you have established a new position.

Close some of your own position or place to trade is a huge confused, don't worry too much. It's a tricky concept to grasp. And I did call this lesson advanced trade management techniques. What you really need to know is that for some traders, opening a trade in the opposite direction to the core position can be a good thing. If you have a big cushion of profits, that can give you confidence, if you have a large winning position, you are likely following the currency pair very closely and will have developed a strong sense of it even flow. This means you could be very good at picking spots when it's going to go against you.

So why not place a trade. Another significant benefit of trading against the core position is that if you generate profits from the trade, you can then use them to add more size to the original position. This is one way of building a very large position for a trade pitching with cross writes. Another tool you have at your disposal for managing your trades is the ability to hedge your core position with a cross rate. This converting your trade into what is called a synthetic position in a different currency pair. You might do this to heed short term weakness in the base currency of your trade or benefit from temporary strength and another currency.

Market was Scott Ramsey said I can get hurt when I've been getting paid. But it's hard for me to get hit from a standing start. That is key. Voting a risk free position. Imagine if you had a large position in a currency pair that would benefit greatly if it goes your way but has little or no risk of it goes against you. Building a risk free position relies on the fact that markets don't always take off straight in your direction.

Instead, it often chops around for a while before finally giving way to a trend. If you have conviction that the currency pair is going to move in a similar way You can start to place long and short trades within the choppy movements around your entry. As you accumulate profits, you can start to trade at a bigger size, offsetting your risk of the profits, and with some luck eventually getting to a point where your profits more than cover any risk you have on the trade, a risk free position. market was at its acota said, as I continue to incorporate more expert trader roles, my system became more compatible with my trading style. You can see how all the entry and exit points we have outlined in this lesson come together in a trade on the ad USD. Use a sideways market type to build a rescue position.

Once you get the breakout, you quickly scale and on the first part of the move. As the price starts to reverse. You take profits before adding the position back on as the original trend resumes. You try to get the core position but closing out as the trend resumes. Of course, at some point you're going to need to close a position completely. To do that you would use your complex exit strategy from lesson 12.

Time to get out your trading plan, advanced trade management is a lucrative skill to master. To do it well, you need to be very clear on your objectives, as well as in sync with the market. But you don't need to get it perfect. If you can do half as well, as this example, you'll be in for some very healthy paydays. Think about how you want to manage your trades, write it down in your trading plan, and make sure you follow it. Managing the large positions you'll be able to build is going to take discipline.

So having written roles is essential. For this lessons coursework, build your trade management plan. I'll see you in the next lesson.