August 1, 2015

How Do You Add To Profits?

Top traders add to profits. Now I use several ways. Remember in the heat of a fast moving trade you often have to appreciate you are in a good trending move and get in, rather than get your pen and paper and calculator out. The Pips Predator’s job is to get you into those good trending trades.

So for instance, one method I use is that every time a position shows a profit of 1% of my total risk capital (imagine all my trading capital is £10,000, then 1% is £100.) then I open an additional position, and move my stop loss up to the entry of the preceding previous position. That ensures that I am trading on profits, locking in profits, and also maximising a good trend I have found.

Another approach is shown in the image – the High-Low method.



So profits are about adding to positions, and locking in profits by moving a stop loss up each time each position.