Dear friends, I am here to share the back up plan for the trade in case it backfires. Consider a case in which we bought EUR/USD (Lot size 0.02) at price 1.3500 and expecting a profit of 50 pips (1.3550)
Many traders do not know how and when to get out of the trade. There losses keep running and they are out of the game with zero balance. Does not it sound familiar to you?
In above mentioned case we consider EUR/USD price has started moving downwards.
Plan -A
When EUR/USD price reaches to 1.3400 buy another 0.02 EUR/USD lot size and wait for the price bounce back to 1.3500. Once it reaches to 1.3500 close both the trades. First trade will be closed with zero profit and second trade will be closed with 100 pip profit.
Plan -B
If price does not bounce back to 1.3500 and fall further then open third trade with same lot size 0.02 at 1.3300 Now wait for the price bounce to 1.3400 Once price get back to 1.3400 close all the 3 trades with no profit no loss.
Plan -C
If you open trades as per our signals and calls you will never come in a situation where you need to use Plan -C Still we are explaining it. In this case we we consider price further falls to 1.3200 It means three trades are already open and price has reached to 1.3200 You have to open fourth and final trade 0.06 lot which is 3 times bigger than the initial lot (0.02) size. From here price is bound to bounce back to 1.3300 and you can close all the trades with no profit no loss.
Now, you may have realized why I ask to open the small trade size because with a bigger trade size you will not left with any back up. You cannot apply Plan A, Plan B, Plan C
So, Shut Up Listen And Do!!
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