Stock market strategy

Stock market trading tip
for profitable swing trading strategies

One user of this online stock trading forum wrote this quotation:

"It wasn’t until my mentor explained to me that when you are trading, and showing a profit, that is the point where you should be adding to the position, not closing it out, that I began to understand what I was doing. Once I started following his advice, my trading profits soared. "

Although I have not though about this particular issue before, after reading it I spent some time on this.

And I think it is correct statement.

The best way what trader can do is to add into already profitable trade if there are reasons for continuation of such trade. Or if trader already closed one trade then make second (or third) entry into trade in current trend.

But as I mentioned - if there are reasons for continuation of trend move in profit .

The important condition for possible new entry or addition into profitable trade is that profit target zone defined by next important level of support (for short trades) or resistance (for long trades) is far enough. It does not have sense to add into position which trades already on strong support or resistance .

You can see this example of possible re-entry on this GOOG stock chart. I did two trades during downtrend but probably adding into already profitable trade could be better strategy

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