Learn The 5 Possible Outcomes Of Your Trades
https://www.tradingview.com/x/BsH8RttD/
Hey traders,
Depending on your actions, you can get 5 completely different results
taking just one single trade.
1️⃣The first outcome is a small win.
By a small win, I mean a winning trade producing up to 2.5% account growth.
2️⃣The opposite situation leads to a small loss.
To me, a small loss is a losing trade producing up to -1% account decline.
3️⃣Occasionally once the price starts moving in the predicted direction, one can protect his trading position moving his stop to entry and making a position risk-free.
Being stopped out such a trade produces 0% profit. The level where the position is closed is called a breakeven point.
4️⃣If one perfectly predicts a future direction of the market and opens a trading position accordingly, occasionally, a huge profit can be made.
5️⃣Being wrong in the predictions, however, one can adjust and trail a stop loss not letting himself be stopped out. Such behavior may lead to a substantial loss or even a margin call.
❗️Learning how to trade, I strongly recommend you eliminate the 5th outcome. Managing not to lose more than 1% of your account will substantially improve your trading.
Let me know, traders, what do you want to learn in the next educational post?
Hey traders,
Depending on your actions, you can get 5 completely different results
taking just one single trade.
1️⃣The first outcome is a small win.
By a small win, I mean a winning trade producing up to 2.5% account growth.
2️⃣The opposite situation leads to a small loss.
To me, a small loss is a losing trade producing up to -1% account decline.
3️⃣Occasionally once the price starts moving in the predicted direction, one can protect his trading position moving his stop to entry and making a position risk-free.
Being stopped out such a trade produces 0% profit. The level where the position is closed is called a breakeven point.
4️⃣If one perfectly predicts a future direction of the market and opens a trading position accordingly, occasionally, a huge profit can be made.
5️⃣Being wrong in the predictions, however, one can adjust and trail a stop loss not letting himself be stopped out. Such behavior may lead to a substantial loss or even a margin call.
❗️Learning how to trade, I strongly recommend you eliminate the 5th outcome. Managing not to lose more than 1% of your account will substantially improve your trading.
Let me know, traders, what do you want to learn in the next educational post?
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