The Traderszone Network

Published in TZ Latest News 16 February, 2017 by The TZ Newswire Staff

closing out some of your position sounds like the worst strategy ever

since it means your losers will be twice as big. Ok you buy 2 contracts. But you lose. Double loss. Now you do it again. Hey, you get some profit. Better close one out and lock in that profit. Now price goes against you back to the beginning. You now have half of what you should have made. Remembering that loss from before this trade, you’re now in the negative. If you think price is still going to go up, why not buy more rather than sell something?