Two situations I don't remember seeing covered well or at all in trading books. I have these situations, they are not just theoretical.
1. you have a long trade open in your chosen market ABC, the risk is at the usual default 2%, and the trade is currently in the money. Your TA has not indicated an exit and price has not reached your target. Your system generates another buy signal. What would you do?
2. Same set-up with a long in XYZ, but now your system generates a short entry signal. What would you do?
I can tell you up till now I have always ignored secondary entry signals in the same direction as my primary trade. And likewise short entry signals if my original exit points have not been reached. But I'm sure nobody ever told me to do this so it needs to be questioned.
Happy to hear members' actual responses to these scenarios - i.e. what you have actually done, not just what you think I should do,
1. you have a long trade open in your chosen market ABC, the risk is at the usual default 2%, and the trade is currently in the money. Your TA has not indicated an exit and price has not reached your target. Your system generates another buy signal. What would you do?
2. Same set-up with a long in XYZ, but now your system generates a short entry signal. What would you do?
I can tell you up till now I have always ignored secondary entry signals in the same direction as my primary trade. And likewise short entry signals if my original exit points have not been reached. But I'm sure nobody ever told me to do this so it needs to be questioned.
Happy to hear members' actual responses to these scenarios - i.e. what you have actually done, not just what you think I should do,