Open Locking Position

Often occurs when a trader is in a position open trade is one-way / price movement trends that point so that the position of the opening of experiencing loss. Current position or the position of a difficult loss like this is a war going on in the mind of a trader. A trader there who choose to allow it or cut loss or lock position.
Locking position option is a very difficult choice because if the appropriate analysis, the position could change be profit loss and can increase the loss otherwise. Here is my review in use locking techniques.

There are some traders opted to lock position or also known as hedging positions thus experiencing the chaos now will open the lock. Many are afraid of equity drained or add a loss when opening the lock. Many were afraid to miss the opening price.

The chaos and fear makes the mind clear and could no longer give a bad influence in trading decisions. Indeed think of locks, especially when a locked position distance (between the buy and sell positions) too far, it would be very distracting and ultimately makes us long to move in addressing the problem of locking. When we have an open position in a long time, of course, there is the cost of a broker charged to us every day. The best way when we open positions that have been cut with one loss.

If you've already done a fairly large locking, inevitably we have to deal with it. One way to open the locking position is to treat them like the locking to open a new position. We need not ignore the locking position. We don't need to find out where the price will be fixed and turned around. We don't need to wait for prices already are below/above locking position. we need to find out is where the direction/trend of price movements at this time.The most important thing is we've been doing a deeper analysis and by using the right-mind was crystal clear.

Same as open a new position. We have to know is where the direction/trend of the current price. For example, we know that the price trends for the next 4 hours is up based on technical analysis or fundamental. We certainly will open the open buy positions and wait for new profit we close close buy and vice-versa when prices trend down.

How to implement locking position ? For example we have locking position: open buy EURUSD at 1.3534 and open sell EURUSD at 1.2950, where the current position is at the middle price of the lock in 1.3000. What do we have to wait for the price is above or below the 1.2950 1.3534 recently we could open locking position ? With the above mentioned ways, certainly not necessary. We have to change the perception / mindset of us that we do not have any locking so that we are not focused on the locking position, like opening a new sheet (clean sheet). With trading strategies that we have and the analysis of trends in price movements, we have a new trading plan, where the open positions, the position of profit taking and position of stop loss. With locking-an existing, if we do not open a new position, but rather the close one of our open positions.

From the example in the above position. We already determine that the price is likely to rise to the top. Means we have to close positions sell us at 1.2950. There may be a thought that we would be a great loss if we close positions sell it because the current price is at 1.3000. Indeed we would lose but the cut is our balance and not (have) our equity. In the trading, which is more important to note is the value of equity and not balance. So we sell we close the position at 1.3000. When we associate with open a new position, then position the lid this is a sell position at 1.3000 open buy us at 1.3000. This is what we must remember.

Now when the price match estimates that prices rise to 1.3050 area, for example, the mean value of equity we grow, even though the value of our balance is reduced. The value of the equity will go through the addition of 50 pips (1.3050 minus 1.3000) which means 500 dollars for regular contracts. In regard to the locking, we should open a sell position back at 1.3050. So this time we still have lock position in open buy and sell at 1.3534 1.3050 with equity increased 50 pips.

The case of the example above, we don't need to wait for the price is below or above the open positions we have recently done something against the locking of the 50s. By treating locking position like opening a new position, we can open the locking in any price without having to wait too long and without having to find or predict the extreme rate.