Comments on: How to trade: managing exposure http://www.olsenblog.com/2010/03/how-to-trade-the-tight-rope-of-managing-exposure/ Just another WordPress weblog Thu, 02 Feb 2012 04:53:16 +0100 http://wordpress.org/?v=2.8.6 hourly 1 By: GregE http://www.olsenblog.com/2010/03/how-to-trade-the-tight-rope-of-managing-exposure/comment-page-1/#comment-2415 GregE Thu, 18 Aug 2011 04:18:01 +0000 http://www.olsenblog.com/?p=369#comment-2415 I recently used this strategy to get out of a losing AUD short position at break-even. I would normally have closed at a loss, but I considered the fact that 70% of traders were long AUD would work in my favor when (if) the reversal came. I also used tools.olseninvest to help decide at what price level I should increase my position. I must say it feels wrong to increase your risk when in a losing position, but if you do it carefully in the right situation it can work. Thanks as always for your blog and information services. I recently used this strategy to get out of a losing AUD short position at break-even. I would normally have closed at a loss, but I considered the fact that 70% of traders were long AUD would work in my favor when (if) the reversal came. I also used tools.olseninvest to help decide at what price level I should increase my position. I must say it feels wrong to increase your risk when in a losing position, but if you do it carefully in the right situation it can work. Thanks as always for your blog and information services.

]]> By: Nicholle Evanosky http://www.olsenblog.com/2010/03/how-to-trade-the-tight-rope-of-managing-exposure/comment-page-1/#comment-2405 Nicholle Evanosky Sun, 19 Jun 2011 09:44:59 +0000 http://www.olsenblog.com/?p=369#comment-2405 Wonderful goods from you, man. I have understand your stuff previous to and you're just extremely wonderful. I really like what you have acquired here, really like what you are saying and the way in which you say it. You make it enjoyable and you still care for to keep it sensible. I can't wait to read much more from you. This is really a great site. Wonderful goods from you, man. I have understand your stuff previous to and you’re just extremely wonderful. I really like what you have acquired here, really like what you are saying and the way in which you say it. You make it enjoyable and you still care for to keep it sensible. I can’t wait to read much more from you. This is really a great site.

]]> By: web site seo http://www.olsenblog.com/2010/03/how-to-trade-the-tight-rope-of-managing-exposure/comment-page-1/#comment-2400 web site seo Fri, 13 May 2011 15:26:29 +0000 http://www.olsenblog.com/?p=369#comment-2400 I truly wanted to construct a brief message so as to appreciate you for some of the marvelous tricks you are showing at this site. My particularly long internet look up has at the end of the day been compensated with good facts to write about with my great friends. I 'd repeat that many of us visitors actually are undeniably blessed to live in a fabulous network with so many special professionals with useful secrets. I feel pretty blessed to have discovered your weblog and look forward to really more thrilling minutes reading here. Thank you once again for everything. I truly wanted to construct a brief message so as to appreciate you for some of the marvelous tricks you are showing at this site. My particularly long internet look up has at the end of the day been compensated with good facts to write about with my great friends. I ‘d repeat that many of us visitors actually are undeniably blessed to live in a fabulous network with so many special professionals with useful secrets. I feel pretty blessed to have discovered your weblog and look forward to really more thrilling minutes reading here. Thank you once again for everything.

]]> By: richardo http://www.olsenblog.com/2010/03/how-to-trade-the-tight-rope-of-managing-exposure/comment-page-1/#comment-2185 richardo Tue, 01 Feb 2011 13:20:56 +0000 http://www.olsenblog.com/?p=369#comment-2185 Thank you for your question: Augmenting a bet on a loosing position is an integral part of a good trading, it is comparable to increasing the speed of your car to escape a dangerous situation. Important, do not augment the size of your loosing position too early and even more important, do not forget to reduce the size of your position as early as possible again. Especially, when you are in a loosing position, your personal intrinsic time ticks faster and you tend to look at the price ticker more frequently. This has the effect that you increase the size of your position far too early. As a rule of thumb I suggest the following: if your entry signal is based on a price move of x%, then wait for another price move of x% to increase your position. This strategy will only work, if you have sufficient reserve margin capital available. For this reason, I recommend that the opening trade should be a fraction of your 'normal trade size'. Thank you for your question: Augmenting a bet on a loosing position is an integral part of a good trading, it is comparable to increasing the speed of your car to escape a dangerous situation. Important, do not augment the size of your loosing position too early and even more important, do not forget to reduce the size of your position as early as possible again. Especially, when you are in a loosing position, your personal intrinsic time ticks faster and you tend to look at the price ticker more frequently. This has the effect that you increase the size of your position far too early. As a rule of thumb I suggest the following: if your entry signal is based on a price move of x%, then wait for another price move of x% to increase your position. This strategy will only work, if you have sufficient reserve margin capital available. For this reason, I recommend that the opening trade should be a fraction of your ‘normal trade size’.

]]> By: Raf http://www.olsenblog.com/2010/03/how-to-trade-the-tight-rope-of-managing-exposure/comment-page-1/#comment-2147 Raf Fri, 28 Jan 2011 16:42:47 +0000 http://www.olsenblog.com/?p=369#comment-2147 Hello, I always learned that pyramiding a loosing bet is a very bad practice, but pyramiding a winning one is the way to go. When/Why do you recommend augmenting a bet on a loosing position ? For my "defence" I don't trade FX :) Thank you, Raf Hello,

I always learned that pyramiding a loosing bet is a very bad practice, but pyramiding a winning one is the way to go.

When/Why do you recommend augmenting a bet on a loosing position ?

For my “defence” I don’t trade FX :)

Thank you,
Raf

]]> By: amir reza Kabiri http://www.olsenblog.com/2010/03/how-to-trade-the-tight-rope-of-managing-exposure/comment-page-1/#comment-2068 amir reza Kabiri Wed, 15 Dec 2010 19:26:16 +0000 http://www.olsenblog.com/?p=369#comment-2068 Nothing is consistent in the financial markets, except maybe the poor trading habits of some people! was interest ! Nothing is consistent in the financial markets, except maybe the poor trading habits of some people!
was interest !

]]> By: Meeste Sõrmus http://www.olsenblog.com/2010/03/how-to-trade-the-tight-rope-of-managing-exposure/comment-page-1/#comment-2055 Meeste Sõrmus Wed, 22 Sep 2010 20:13:22 +0000 http://www.olsenblog.com/?p=369#comment-2055 Morning I just writing to say that you have done some interesting posts recently and I was very glad to find your blog and read all your articles Hope you keep writing cheers Morning

I just writing to say that you have done some interesting posts recently and I was very glad to find your blog and read all your articles

Hope you keep writing
cheers

]]> By: Mark Brant http://www.olsenblog.com/2010/03/how-to-trade-the-tight-rope-of-managing-exposure/comment-page-1/#comment-1962 Mark Brant Tue, 10 Aug 2010 22:39:30 +0000 http://www.olsenblog.com/?p=369#comment-1962 I'm selling the tops of 70%ers on the 15-min. charts and the avalanches are coming like Swiss clockwork. 70%ers should be highlighted right on live prices for quick access. XAG is a 70%er but one must refer to the Historical Ratios to find it. If I see a price continue I will follow the coastline with price averaging per the program but so far the 70%ers all fail tests of resistance at the 15-min. tops: yen, swissie, xag. Now I'm thinking like a pro. I'll bow out and let others provide feedback for a few months. Thanks so much, sir! I’m selling the tops of 70%ers on the 15-min. charts and the avalanches are coming like Swiss clockwork. 70%ers should be highlighted right on live prices for quick access. XAG is a
70%er but one must refer to the Historical Ratios to find it. If I see a price continue I will follow the coastline with price averaging per the program but so far the 70%ers all fail tests of resistance at the 15-min. tops: yen, swissie, xag. Now I’m thinking like a pro. I’ll bow out and let others provide feedback for a few months. Thanks so much, sir!

]]> By: Mark Brant http://www.olsenblog.com/2010/03/how-to-trade-the-tight-rope-of-managing-exposure/comment-page-1/#comment-1941 Mark Brant Mon, 09 Aug 2010 01:46:50 +0000 http://www.olsenblog.com/?p=369#comment-1941 Thx. I've absorbed HTT completely. I really like that 70% threshold for passive herding because a big avalanche of cascading margin calls will probably rack up hundreds of pips very quickly and soon. Anyone who trades the HTT way will be in the top 0.1% of all traders worldwide and that is no small accomplishment! I'm not flooding I'm just overjoyed with success. Thanks again Richard and Deevz! Thx. I’ve absorbed HTT completely. I really like that 70% threshold for passive herding because a big avalanche of cascading margin calls will probably rack up hundreds of pips very quickly and soon. Anyone who trades the HTT way will be in the top 0.1% of all traders worldwide and that is no small accomplishment! I’m not flooding I’m just overjoyed with success. Thanks again Richard and Deevz!

]]> By: Deevz http://www.olsenblog.com/2010/03/how-to-trade-the-tight-rope-of-managing-exposure/comment-page-1/#comment-1913 Deevz Sat, 07 Aug 2010 02:43:42 +0000 http://www.olsenblog.com/?p=369#comment-1913 @Mark In my opinion, market mechanics matters much more than fundamentals. If 70% of the traders are in a direction and price is moving against them, to me, that indicates a very strong trend. On a side note, you might want to discuss these kind of things on a forum on account of not flooding this website with comments; this is not my blog however, so I have no say in it. Take what I say with a grain of salt! @Mark
In my opinion, market mechanics matters much more than fundamentals. If 70% of the traders are in a direction and price is moving against them, to me, that indicates a very strong trend. On a side note, you might want to discuss these kind of things on a forum on account of not flooding this website with comments; this is not my blog however, so I have no say in it. Take what I say with a grain of salt!

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