How To Level Up In Positions

In the last sesh, we were chatting about how to level up and peace out of a trade. Now, we're showing you how to slide IN a trade. 😎

The first sitch we gotta talk about is stacking your positions even when your trade’s not giving you those good vibes. 😬

Adding more to a "losing" play is risky AF and honestly, newbies shouldn’t even try it. 🤨

If your game is clearly losing, why pour more cash just to watch it go down the drain? Total cringe move, right? 🤦‍♂️

We say “pretty much” cause, like, if you got the smarts to add more without stepping outta your risk comfort zone, then sure, go off! 🙌

To pull this off, you gotta be on point with some rules to keep it legit. Here’s the cheat code:

1. A stop loss is non-negotiable and you MUST stick to it, fam.
2. Entry levels of your game gotta be pre-planned before you hop in.
3. Position sizes need to be pre-calced and the overall risk level shouldn’t make you sweat.

Trade Example

Let’s peep a simple trade scenario to get the 411 on all this:

From that chart up there, looks like the pair dipped from 1.3200, chilled between 1.2900 to 1.3000, then took another dive.

It found its ground around 1.2700 to 1.2800, then pulled back up to the hangout zone.

Now, say you’re thinking the pair is gonna drop again, but you ain't vibe-checking any specific turning point.

Here's how you could roll into the trade:

Entry Option #1:

Go shorty at the broken resistance-now-support of 1.2900, aka the low-key base of the consolidation zone. 🤔

But yo, jumping in at 1.2900 means it might still cruise higher, so you could've pulled up at a more lit price. 🤷‍♂️

Entry Option #2:

Play the waiting game till the pair hits the top of the zone, 1.3000 – also kinda a big deal as a power level – possibly epic resistance. 😤

But if you’re stickin’ around for 1.3000, the market might ghost before it gets there and you’ll miss the dip party. 🙇‍♂️

Entry Option #3:

Chill till the pair tests the probable resistance zone, then dips below 1.2900 into the downtrend before making your move.

Safe route, 'cause you get the tea on sellers running the show again, but you’re not coming through on that sick, early downtrend price. 🤔

Entry Option #4:

What's the move? Why not vibe in both at 1.2900 and 1.3000? The taxi's here, tbh! As long as you jot this plan down and stick with it! 🤙

Determine Trade Invalidation Point (Stop Loss)

Wanna know where to exit stage left? For ease, let’s hit 1.3100 as the “yo, abort mission” signal that the market’s heading north. 🚫

That’s your cue to bounce outta the trade. 🚶‍♂️

Determine Entry Level(s)

Next up, we decide the entry vibes. Since there was support/resistance at 1.2900 and 1.3000, drop in entries there. 🎯

Determine Position Size(s)

Lastly, let's do the math on size so you can keep it chill on the risk front. 🧮

Say you’re flexin’ a $5,000 account but only wanna risk 2%. Uh-huh, you’re good to risk $100 ($5,000 balance x 0.02 risk) on this one. 💵

Trade Setup

Here’s a way to set this whole show in motion:

Short 2,500 units of EUR/USD at 1.2900.

According to that pip value calculator, 2,500 units of EUR/USD gives you $0.25 for each pip move.

With the stop at 1.3100, you’ve got a 200 pip stop on this play, and if it touches your stop, that's a $50 "ouch" (value per pip movement ($0.25) x stop loss (200 pips)).

Short 5,000 units of EUR/USD at 1.3000.

Again, using the trusty pip value calculator, 5,000 units of EUR/USD means you're at $0.50 per pip move.

With that stop at 1.3100, it’s a 100 pip stop on this play, and if it slaps your stop, there goes another $50 (value per pip move ($0.50) x stop loss (200 pips)). 💸

Cumulatively, this makes a $100 loss if you hit that wall. 💀

Not too tough, right? 💪

We’ve cooked up a trade where you can jump in at 1.2900, and even if things get rocky and grow into a loser, you can snag another setup and still be within good risk vibes. 😌

And if you're curious, the combo of the two trades forms a short position of 7,500 units of EUR/USD, with an average tag of 1.2966, and a stop loss spread of 134 pips.

If the market bounces down after both plays were triggered, a 1:1 reward-to-risk win ($100) is on the table if the market slides to 1.2832 (1.2966 (avg. entry level) – 134 pips (your stop)). 🤑

Cuz most of your bag flew in at the "lit" price of 1.3000, EUR/USD’s fall doesn’t have to go far from the resistance zone to bag that nice profit. Sweet gains, fam!!! 🍬