Hi guys,
I am very new at FOREX so maybe i am saying some mistakes, be kind because i learn very quickly.
So imagine this scenario.
I'm in a position that never assume the losses ( optional, let's not discuss this please ).
I enter in position that went wrong, and now i am in a position of -100€ ( example ).
At this moment i can open a position in the other direction and i hold the -100€ losses ( probably 105€ counting the losses from the second position open ).
Is there any known technique to cut this losses to the minumun possible ?
Im thinking of, open the second position with the double size of the first, and if the price goes in this direction i can possible win some profit and some point, ot the price can aproximate from the first position and i can close both with half of the loss, from 105€ => 50/60€.
Am i thinking correctly ??
Is there a technique to help do this maths ?
I will start to investigate but i remenber to ask first because this should be a matter known by the comunity.
I am very new at FOREX so maybe i am saying some mistakes, be kind because i learn very quickly.
So imagine this scenario.
I'm in a position that never assume the losses ( optional, let's not discuss this please ).
I enter in position that went wrong, and now i am in a position of -100€ ( example ).
At this moment i can open a position in the other direction and i hold the -100€ losses ( probably 105€ counting the losses from the second position open ).
Is there any known technique to cut this losses to the minumun possible ?
Im thinking of, open the second position with the double size of the first, and if the price goes in this direction i can possible win some profit and some point, ot the price can aproximate from the first position and i can close both with half of the loss, from 105€ => 50/60€.
Am i thinking correctly ??
Is there a technique to help do this maths ?
I will start to investigate but i remenber to ask first because this should be a matter known by the comunity.