Strategy Profit By Switching

There are times when the market moves do not fit our predictions, so we have open positions become rugi.Namun in such conditions we can still turn out to be profitable to strive for is to do the switching.

Switching based on the meaning of the word is replacing. In forex trading, the switching strategy is to change the direction by closing losing positions and opened a new position in the opposite direction of the positions that have been closed in the hope of gain second position will be greater than the loss in the first position was closed.

For example:

Currently the price of GBP / USD is 1.5500. I predict BGP / USD will rise towards 1.5600. Therefore I opened a buy position.
Hose how many hours it turns GBP / USD moves against my predictions, GBP / USD Down and is currently at the level of 1.5450 buy position .Artinya I lose 50 points.

After re-analyzed, it turns GBP / USD will fall towards the 1.5350 level.

So that today I do not lose, I decided to close my long positions with a loss of 50 points and opening new short positions.

After a few hours it is true that the market moves according to the results of analysis both are down, and now stands at the level of 1.5375

Finally after feeling the profit obtained enough, then I closed my short positions with a profit of 75 points.

Of the accumulated 2 above transaction by performing switching, today I profit by 25 points ie 75 points deducted from profit loss of 50 points.

 

Tips to perform the switching strategy:

- Perform switching to open a second position which is opposite to the first position only if the prediction gain second position exceeds the first loss position will be closed.
- Should do switching when big trend will be formed, namely when the breakout band.

This switching forex strategy requires a convincing analysis, because if it is not convinced by the second prediction, you should only do the first cut loss position without having passed with switching. If we are still forced to be tossed around by the market and even suffer a loss of 2 fold.

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