The importance of Multi Unit Trade Strategy !
Always ask yourself what if I am wrong? Whats your strategy for risk management if you are wrong? Is it just sticking to your stop loss?
Do you sell all of your shares at resistances without any bearish signal?
NVDA is a clear example which shows the importance of Multi Unit trade strategy. Multi Unit Trade Strategy is simply dividing your position to some parts. Change your attitude of trading. No one and nothing force you to open or close all of your position at once.
Multi Unit Trade strategy is a powerful tool to manage the risk of alternative scenarios. Watch how NVDA behaved:
Last drop from 648.57 to 538.36 showed almost an impulsive character. Normally people expect an abc form of counter trend correction reaching to 0.618 or maximum at 0.786 retracement and resumption of bearish trend. BUT NVDA made a new high. You always have to ask yourself what if I am wrong? What are possible alternative scenarios? See the chart. some alternative scenarios are shown ( some have very low possibility and some are more possible).
NVDA reached to 0.618 retracement with no sign of bearish reversal, So it was wise action to hold you long position ( As my followers and I did). Please Do Not Forgot that we need a bearish signal to go short at proposed resistances.
After that, NVDA reached to 0.786 retracement which was not typical for wave B and the move up character was impulsive not corrective. We had bearish signal this time with stochastic indicator in overbought zone in daily time frame and bearish reversal in H1. Was it good decision to close all the position? Absolutely not. There are always alternative scenarios. Thats why I asked my followers to just close half of their position and now they are benefited from today's another move up.
My Strong recommendation:
Use Multi Unit Trade Strategy. You get more profit in long term using it.
Good Luck every one.
Do you sell all of your shares at resistances without any bearish signal?
NVDA is a clear example which shows the importance of Multi Unit trade strategy. Multi Unit Trade Strategy is simply dividing your position to some parts. Change your attitude of trading. No one and nothing force you to open or close all of your position at once.
Multi Unit Trade strategy is a powerful tool to manage the risk of alternative scenarios. Watch how NVDA behaved:
Last drop from 648.57 to 538.36 showed almost an impulsive character. Normally people expect an abc form of counter trend correction reaching to 0.618 or maximum at 0.786 retracement and resumption of bearish trend. BUT NVDA made a new high. You always have to ask yourself what if I am wrong? What are possible alternative scenarios? See the chart. some alternative scenarios are shown ( some have very low possibility and some are more possible).
NVDA reached to 0.618 retracement with no sign of bearish reversal, So it was wise action to hold you long position ( As my followers and I did). Please Do Not Forgot that we need a bearish signal to go short at proposed resistances.
After that, NVDA reached to 0.786 retracement which was not typical for wave B and the move up character was impulsive not corrective. We had bearish signal this time with stochastic indicator in overbought zone in daily time frame and bearish reversal in H1. Was it good decision to close all the position? Absolutely not. There are always alternative scenarios. Thats why I asked my followers to just close half of their position and now they are benefited from today's another move up.
My Strong recommendation:
Use Multi Unit Trade Strategy. You get more profit in long term using it.
Good Luck every one.
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