Multiple Entries Like it or not, it is arrogant to think we can know the best price and time to enter a trade. This is due to the constant m...
Like it or not, it is arrogant to think we can know the best price and time to enter a trade. This is due to the constant manipulation of prices by the Robber Bank market makers (MMs). When they are bears they pump price and support it while accumulating shorts. They move price lower and support it while filling SM short orders with shorts they got at the higher prices. They drop price to sucker in new shorts. They hike price to stop hunt the new shorts. And they can repeat any part of these price manipulations again
and again before ever getting on with a true move lower to make profits! The reverse of all this is true for when the MMs are bulls. With all this manipulated whipping and whacking of prices, how can anyone of average intelligence or above think they can know the best price and time to enter a trade?
For many years I have been an advocate of making an additional trade entry if the MMs sufficiently “improve” the price. For many years I have also been an advocate of trading light relative to account size. Every time I have adhered to trading light I have been overall profitable. Whenever I have departed from trading light I have lost money. You see, the manner of trading multiple entries can create a new problem. If the MMs continue to “improve” the price, how many additional trade entries is it safe to make? And what is the price level that is no longer an “improvement” but is instead a signal to shut down the trade?
Trading Flexibility Considerations
First off, if you are not a US resident, you are lucky...escaping the heavy hands of the US Robber Banks and their syndicate of crooked banks around the world that operate the currency market for retail traders. If you are a US resident you should find an unregulated offshore broker to work with. The US Robber Banks do not want you making money,....they want to “steal” your money. The “false” regulators NFA, CFTC and others around the world obedient to these crooked Banks force all “regulated” brokers to impose “restrictions” making it harder for you and easier for the banks: preventing hedging, enforcing FIFO (First In, First Out) trade closings and mandating only very low margin (usage of OPM, “other peoples' money). Contrary to the liars at the NFA, CTFC and the Robber Banks they serve, these restrictions do not benefit retail traders. They benefit the Robber Banks!
Account Size and Margin
The following are suggestions based on account size and 1:500 margin. Ten is the maximum number of open entries. This is sufficient to run to 2 or three trades concurrently, applying up to five EPs (entries) to each of two open trades, or applying up to three EPs to each of three open trades.
$500 Account: EPs = 1 micro-lots x 10 = one mini-lots max. open.
$1000 Account: EPs = 2 micro-lots x10 = two mini-lots max. open.
$5000 Account: EPs = 10 micro-lots x 10 = ten mini-lots or one full lot max. open.
You can extrapolate these values to apply to other account sizes, where the accounts have the same margin. Lower margins logically necessitate lower maximum open values, which you will have to experiment with and determine for yourself. If you are a US resident currently limited to only 1:50 margin (usage of OPM), you might start with this simple “rule of thumb”; the maximum open is one micro-lot per $100 in account. And this might be a bit too liberal, so be careful until you have experience with it.
Deviate to larger values if you wish, but do so at your own increased risk.
Multiple Entries With Churning
The entries of a multiple entry trade do not necessarily need to be kept per the original intent for them. An occasion might arise where taking early profit on one or more entries is better than keeping the entries running as you might have originally planned. This can be because price action is undulating....ranging....making the prospects good for later reentry, again at a good price and which can mean extra profits in the long run, even if price action is only moving up and down instead of actually making a good
move. This process of entering, taking profit and then reentering again at a price similar to the first entry due to undulating or ranging price is called churning.
Another benefit of deciding to take unplanned early profit is if price action on the trade is becoming less favorable. In such a situation it might become increasingly prudent to take some profits here and there. This will reduce the risk on the trade and the replenished account liquidity will serve you well in the event a new and better opportunity arises elsewhere.
Discipline Matters, too!
Traders can be classified into either of two groups. There are those that wish to build their account towards the day it is sufficient to provide an income. There are those that simply want their account to make extra spending money. Whether you are leaving your money in the account, attempting to build the account value with larger size entries as success increases the account size, or are withdrawing the profits periodically, you must never forget what the rules are that have just been specified.
From personal experience I vouch that if the rules are adhered to, if you trade light relative to account size and have the discipline to close invalidated trades promptly, you will succeed. If you do not adhere to these rules, if you get greedy and reckless by over trading and not closing trades that are starting to lose money while the loss is still small, you will lose even more money....and in all likelihood you will eventually you will lose your entire account!
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