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Hmm, guess I'm not ready to go live for a while yet.
Ok, this is the way I looked at it....
If I buy 5 lots at say 1.6040, then if the price moves to 1.5950 ('if', that bit I wasn't as positive about, hence not going short) I could buy another 2 lots in the expectation of it going above 1.61 (or at least in that general direction)
If it only went to 1.6030 then although the 5 lots would show a loss of $500, the 2 lots would show a gain of $1600....that was the plan. On the other hand if it didn't go down before going up there would be no need/opportunity to buy the other 2 lots and just be a matter of deciding at what point to sell.
I guess I'm way off here, wrong risk/reward ratio (back-to-front even), too much leverage, don't know where (or why) to set stops.
Thanks guys, I feel like I've been hit with the sledgehammer of reality that I really don't have a clue what I'm doing. Better to find out now than -20k later!
I think I'll go back to reading for a while...and keep the day job!
Cheers
Peter
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