The art of adding to winners
With the Euro consolidating near
122.80 a few days after it’s explosive move up on Monday, those who
are long the currency in some manner contemplate either adding to their winning
position, scaling out of some, or closing the position completely. All of those
options have some validity to them. However, in light of what I have outlined in
a number of previous blogs regarding my feelings of the Euro moving to 128-129,
I am going to focus this blog on where to add into the winning position of the
Euro trade.
Adding into a winning position is much like getting into a
position for the first time, with the exception that adding to it increases your
exposure to it while still keeping your initial risk low if you get in at
quality spots that provide liquidity on the side of the trend. From a technical
standpoint, there are five things I discuss in my book and I will highlight them
briefly here as to what general criteria must be met before adding in…
Read More