Adding positions

[pb]

The rule you follow to add positions, I believe, are part of your money management system. But surprisingly, I've found this is a little discussed area. For example, in Elder's 'Come Into My Trading Room', there is a huge amount of discussion on money and risk management and almost nothing on adding positions.

I know of two general stategies to add position:
1. Add positions on retracements, while the main trend is still continuing.
2. Add positions following mechanical rules, like the Turtles, e.g., add a new position every 1% price movement in your direction.

I wonder which one is followed by the majority of successful traders here (or if there are other ways)?

Thanks.

 

[Salty Gibbon]

I tend to reduce positions and lock in profit as I go along rather than add them.

 

[lilboy716]

i trade listed stocks. i add position in both directions.

in a long position
if i am up, i will sell when the specialist opens up the spread, and buy some if price retrace a bit. i trade the bounces on the way up.
if i am down, i will buy more when the specialist opens up the spread not in my favor.

both rules subjects to other "unwritten" rules that i follow, i look at how the market is doing over all. and where the stock have been trading before.

The rule you follow to add positions, I believe, are part of your money management system. But surprisingly, I've found this is a little discussed area. For example, in Elder's 'Come Into My Trading Room', there is a huge amount of discussion on money and risk management and almost nothing on adding positions.

I know of two general stategies to add position:
1. Add positions on retracements, while the main trend is still continuing.
2. Add positions following mechanical rules, like the Turtles, e.g., add a new position every 1% price movement in your direction.

I wonder which one is followed by the majority of successful traders here (or if there are other ways)?

Thanks.