Revising Positions

It is very welcoming that every trader runs his own trading journal. There he should explore his decisions and try to get a hold of trading as a bussines. Thinking laud and try to get a hold of different strategies, tactics and scenarious. The net is very educational environment where one can really explore and adopt some good directions and learn about story behind trading.

One attribute behind this is that everyday when positions are held for a longer period they should be REVISED!

Steps behind this are:

1. REVISE a POSITION.

We should revise positions hourly, depending on a positions strategy. If there is a strategy for a weekly trade we should at least revise it daily. Very important decision making process is if there are some news coming up. Markets at that time are very volatile and they try to get all the SLs around particular levels. We should really play it safe and not try to rise SLs for the time of the news. Sometimes it will win us time to close it in plus but markets dont give a lot of oppurtunities. That is why before the news we should try to close our positions rather to hold them.

2. LOCKING IN THE PROFITS.

Revising position is a tough thing to do. It makes us wanna try to hold position in minus and on the other hand it makes us close position when the market is in our direction. Still, revising should be really a qouestion about what changed on the market? If there is some pressure on particular currency in general (Market report) or there is some fundamental change going on (News spikes), we should really reconsider locking in the profits when the market is still generous. Better be up 0,15% then down 0,30% one hour or 15 seconds later, right?
Preserving the capital is a respectfull role of a good trader which does not give his good decisions to the market.
Strategies here are different, depending on the market of course. We should definately lock in 0,20% profit if we are up. Big hedge funds and other financials markets definately do it like that. Market is too hectic and vicious to spare you some 0,1 percentage.


3. ADDING POSITIONS IN A CLEAR TREND DIRECTION.

When the market is generous we still have to consider locking in the profits. If there is some particular level where you should think the market will have a strong resistance we should really lock in the profit. Adding up occurs on peacefull market conditions and when the noise is on, we should see adding up - but locking in first!