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 OUR
STRATEGY - Step 3 - Trading
3.3. Opening
Trades / Waiting
/ Managing Trades / Hedging
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We are always looking to correctly
time our entries, so as to be into the money
early in a trade. This saves time, adds up profits,
allows us to use more funds for a certain trade (only
when some partial positions are already protected) and
lowers the overall risk exposure. However, even if our
entries are temporarily trading 'out of the money' -
as long as the pre-established unit size for the trade
is not reached - we may still add up to our positions,
waiting for the trade to mature.
Cutting losses may be difficult at times, however
we see it as an inevitable means to protect our investment
and that of our clients. If and whenever we discover
a flaw in our triple buffer perspective, action is take
immediately to take profits immediately and/or minimize
losses, as the case may be. Also, we may decide to hedge
our positions, thus gaining time to re-think our
immediate strategy and come up with the right solution.
We use stop loss orders for 2 main purposes:
1) to protect your account from possibly large
drawdowns (when trading conditions are extremely
volatile) and 2) to make sure that our money management
rules regarding maximum position sizes are respected
at all times.
Opening
Trades / Waiting
/ Managing Trades / Hedging
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