Compounding is when you are already in a trade and another setup presents itself. This would be a setup that you would certainly take if you were in no position.
For example: Let's say you are in a $1000 long position on NVDA which you entered when the price was at $100, and since then NVDA has now reached $200. Next, NVDA retraces 10% to $180, which has a strong support level and Fibonacci confluence for a bounce and continuation to the upside.
You are already in a profit, but the market has presented a strong setup which you would certainly take if you were in no trade. So in this circumstance, you add another $1000 to NVDA at $180, while moving your stop loss up to protect your current profits.
These setups are for advanced traders and allow for one to maximise their profit potential.
Time Stamps
3:14 – REN Previous COTW (DO NOT TRADE THIS)
21:30 – COMPOUNDING TRADES
31:00 – AVERAGING DOWN IN TRADES
38:35 LADDERING INTO TRADES
41:57 – EXAMPLES and Q&A
1:07:30 – TRADING JOURNAL
1:10:10 – PAUSE AND READ (MOTIVATION)
1:11:54 – BTC TA and Q&A