The 100-Pip Traderdecision. I prefer not to add to losing positions or cost-average.
That has never worked for me personally.
Q: What timeframe charts do you look at?
A: My favorite timeframe chart is the one-hour chart. That’s
where it all happens for me. In the past I’ve extensively used the
15-minute chart and others, but right now my main focus is on the
one-hour.
I often take positions on the one-hour chart and hold them
for a day or longer. I regularly hold these positions overnight, and
because I’ve got a defined risk and a specific profit target, I can just
let the trade go without my attention. Like most traders, I check on
my trades regularly (and somewhat compulsively), but I generally
try my best to let them run their course.
Q: So you basically range trade more in the short-term and trend
trade more in the long term then?
A: [Laughter.] Well it is exactly the opposite. Historically, I
look for breakouts into trends on the short-term charts and in the
long-term, I have been far more successful trading the corrective
patterns in ranging markets.
Q: So how many positions do you generally have at the same
time?
A: When I first started trading, I would have a whole basket
of positions open at the same time. I might have six or seven
positions based on a similar system on a similar timeframe chart
across a variety of currency pairs. So I might take a position on the
British pound/U.S. dollar and then simultaneously take a position,
for instance, in the euro/Canadian dollar. Although I wouldn’t
necessarily be trading the same currency pair and they wouldn’t be
very correlated, the same fundamental principals would be used