whats scratching the trade mean?
ManjunathScratching means getting out of a trade at a small profit/breakeven/small loss as you feel the trade is not moving as you expected.You are avoiding a stop out.A scratch trade is often a winning trade because it will get you out of the market before the price turns against youST
ST,1. When do you decide that a trade needs to be scratched? How much room do you give a trade to play? 2. If a trade goes against you immediately after entry, what do you do? Do you ever consider reentering a scratched trade?
Augu Bhai1.If price fails to break FTA I will consider scratching the trade.Depends on a)how strong the rejection from FTA is.b) Origin of the move. I will not hurry to scratch in case of a BOF.For TST and FTC I will act fast.2.Price reversals rarely happens without testing a trouble areaI rarely risk more than 10 points.Yes, I will enter beyond the latest swing point if RR is still favourableST
ST,Thanks for the clarifications.
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