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Riskmanagementstrategy

EURAUD 4H #shortAm looking at a strong bearish move, I have labeled my setup to be more clear to you. Disclaimer: All trading strategies are used at your own risk - Any content from this page should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide which trades to make. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations. Past results are no indication of future performance. In no event should the content of this correspondence be construed as an express or implied promise or guarantee. None of the content published in this course constitutes a recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. None of the information providers or their affiliates will advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter.
Short
by Skul_Fx
1
What I Do After I Lose A TradeI noticed I’m still in AUDNZD, which is in good profit. Price made a new high, and my first action was to move the trade to break even. At the same time, I noticed I lost a trade on NZDCHF which I set a pending order for this morning. What I did next was a reaction to the loss. I immediately sought a trade on a currency pair that was not on my list. Once I did that, I heard a voice saying, STOP DOING THAT! This is a repeated action I do when I lose a trade. Instead of feeling the loss, I try to medicate it by looking for something else to do. As soon as I realized this, I wrote that down as a limiting belief and then wrote down what I believe about the market. Limiting Belief: Losing a trade makes me feel like I need to look for a trade on another pair to make my money back. Action to take: take a slight loss. It’s better than letting a losing trade run. Belief: Small losses tell you the price has reversed and to be patient to wait for the following setup on the same currency pair. Belief: The market changes. I have to adapt quickly because the price movement will change, which means every trade is unique. Belief: Make trading a fun puzzle to figure out. It will become overwhelming if I work on too many puzzles simultaneously. What I noticed last was how I felt. Usually, I feel a tight pinch in my chest before I get on my charts. Its anxiety. I didn’t feel it this morning. I felt relaxed. After dealing with years of anxiety I can feel it decreasing the more I write out my thoughts and beliefs and see how they are what I trade. Experiencing today's lose I had no feeling just a reaction I will work hard to not do again. What reactions do you have when you lose a trade. What are thoughts and feelings? If negative what can you now begin doing that will help you adapt to price movement with a clear mind and well thought out actions? If you found value in this shared moment of my trading journey please like this post and comment. You're not alone in this trading world. Let's talk it out.
by ShaquanLopez
1
Risk Management Strategy Spot trading can yield high returns, but it’s crucial to have a well-defined strategy in place before diving in. This entails analyzing the project, determining the size of your entry, and devising contingency plans in case of unforeseen circumstances. In this article, we’ll discuss our approach to spot trading and share our insights with you. Before entering the spot market, it’s critical to categorize the various assets available. With over 10,000 different projects to choose from, each with its own unique features, we sort them into three categories based on risk level: High Risk: This category includes projects that are prone to exit scams or are high-risk due to their small capitalization. We pledge no more than 0.5% of our total capital to these projects since they pose a significant risk to our portfolio. However, if they perform well, we may see significant returns from just one high-risk transaction. Middle Risk: Projects in this category have an average market capitalization of between $50 million and $500 million. We can pledge up to 1% of our allocated capital to these projects, which are less likely to collapse but still carry a degree of risk. Low Risk: This category includes established mastodons of the cryptocurrency market with a high market capitalization, such as those in the top 50 of Coin Market Cap. We can pledge up to 3% of our allocated capital to these projects, as they are less risky but still carry some risk. To diversify our portfolio, we allocate our capital as follows: Cash reserves: 30% High Risk: 15% Middle Risk: 30% Low Risk: 25% While our portfolio may seem risky, we aim to earn returns rather than simply preserving our capital. However, in the current bear market, we adjust our strategy to focus more on cash reserves: Cash reserves: 70% High Risk: 5% Middle Risk: 15% Low Risk: 10% With over 70% of our portfolio consisting of stablecoins, we can buy back into the market at more favorable prices during drawdowns. In short, a risk management strategy should be tailored to each market. In a bull market, a riskier strategy with more high- and middle-risk projects may be appropriate, while a bear market calls for a risk-free strategy with a small percentage of high- and middle-risk projects and the majority in stable assets. In summary, our risk management strategy for spot trading is designed to minimize losses and prevent undue stress. Consider using it as a starting point for developing your own strategy, and monitor its effectiveness over time.
BITSTAMP:BTCUSDEducation
by Crypto4light
Why leverage size is not matterHello dear community. Each trader is a part of discussion about leverages. Some of them say that it's risky, another just playing in casino with 50x. But why leverages is not matter, and how do not lose all deposit? Read below. Firstly, you need to know about 2 things. Support line Risk management Support line I am confident that you know about support line a lot of info, but just reminder. Support line is a zone when price jump back multiply time and coin start growing again. Support line can be detected on each timeframe. But for our case we need to see on 1D and 4H timeframe. Risk management If you are trading without risk management, you will be bankrupt. However, what is that? Risk management is the amount of funds in cash or percentage that you can risk in some trade. For example: You trade BTCUSDT with deposit 1000 USDT. Before you make a trade, you need to decide how many USDT or % will be your risk. The funds that will be lost in the worst scenario of trade. It can be 3-5% for start. In USDT, it will be 30 - 50 USDT. What is next? Next, you should calculate your position size. I suggest using next formula: Position size = Risk /(Buy level - Stop loss). It means if closer to stop-loss you buy order the bigger position you have. Buy level Current chart has support zone on 22546-22261. I suggest split your buy order on few slices on this zone. Stop loss I usually set stop loss behind this zone, in current example my stop at 22222 In this case, the formula will be: 50/(22403,5 - 22222) = 0.276 BTC is your position with risk in 5%. In this example, will be ~6X leverage. But if increase risk until 10%, leverage will be 12X. Trading is not about casino, is about math. Good luck and have good trades!
Education
by JoFiBaTaL
Plan for XAUUSD with CPI AnnouncementOANDA:XAUUSD Gold has been trading in the range since last Friday (10th February 2023). It is clear that speculators and investors are waiting for something: maybe some economic indicators like CPI will decide the movement of Gold by today (14th February 2023) Within the 1H timeframe, It is clear that gold has a strong chance of continuing its downtrend if it breaks below the trading range of 1850-1865 with the the following key support levels: 1st Support at: 1835 2nd Support at: 1825 Key Support at: 1800 On the contrary in a bigger picture of Day timeframe, Gold can still push for another leg upward as the price action has slowed the downward movement. If CPI number comes out in favor of Gold then it has a chance of testing the following key resistance when it breaks the range between 1850-1865 upward: 1st Resistance at: 1880 2nd Resistance at: 1885 Key Resistance at: 1900 The most importance part of all; Place a trade where the Risk to Reward favors in the direction that you choose!!!
OANDA:XAUUSDShort
by ChartTrail
🧊The Iceberg Illusion In TradingThe iceberg illusion in trading refers to the perception gap between what people think trading is and what it actually means. Many people see trading as a simple way to make quick profits and accumulate wealth, with the idea that all one has to do is buy low and sell high. However, the reality is far more complex. Under the surface of what appears to be a straightforward process lies a world of risk, stress, and uncertainty. Trading is not just about making money, it requires discipline, patience, and a deep understanding of the markets. Those who don't understand the true nature of trading may face financial loss, depression and failure, much like the hidden dangers beneath the surface of an iceberg. Success in trading often requires much more than just a basic understanding of market trends and patterns, and those who dive in without being fully prepared may face dire consequences. 🔷 Above the Iceberg Above the iceberg, people often see the glamorous and attractive side of trading, characterized by success, wealth, and financial independence. They imagine traders as confident and knowledgeable individuals, making smart decisions and reaping the rewards of their investments. The image of traders making large profits in a short amount of time is one that is often perpetuated by media and popular culture. People often see the stock market as a fast-paced, exciting place where opportunities for financial gain are abundant, and the idea of being able to control one's financial future through trading is alluring. This perception of trading often creates a rosy and idealized image of what it entails, leading many to believe that success in the markets is easy to achieve. 🔶 Bellow the Iceberg Below the iceberg, lies the reality of the challenges and difficulties that traders face on a daily basis. There are many hidden risks and uncertainties that are not immediately apparent to those who are new to the world of trading. Some of the things that people don't know that lie beneath the surface of the iceberg include: 🔸 Market volatility: The stock market is a highly volatile environment, and prices can fluctuate rapidly and unpredictably. This can make it difficult for traders to manage their positions and minimize their losses. 🔸 Emotional stress: Trading can be a highly emotional experience, and the pressure to make the right decisions can be immense. Many traders struggle with anxiety, fear, and depression, particularly when faced with losing trades. 🔸 Lack of understanding: The stock market is complex, and it can be difficult for traders to understand all of the factors that influence market trends and prices. This can lead to costly mistakes and an increased risk of financial loss. 🔸 Competition: The stock market is a highly competitive environment, and traders must be able to keep up with fast-moving markets and make quick decisions based on complex data and information. 🔸 Long-term success: Many traders are focused on short-term profits and may not consider the long-term impact of their trading decisions. Achieving lasting success in the markets requires a well-thought-out strategy and a strong understanding of the markets and the risks involved. 🔸 Timing: Successful trading often requires precise timing, as markets can change rapidly and prices can fluctuate. Traders must have a deep understanding of market trends and be able to make quick decisions to take advantage of opportunities. 🔸 Risk management: Trading involves risk, and traders must be able to manage their positions and minimize their losses. This requires a well-planned and executed risk management strategy, including setting stop-losses and taking profits at appropriate levels. 🔸 Knowledge and experience: Trading is not just about buying low and selling high. It requires a deep understanding of market trends, economics, and financial analysis, as well as years of experience to develop a successful trading strategy. 🔸 Discipline: Trading requires discipline and patience, as well as the ability to stick to a well-thought-out strategy. Many traders make impulsive decisions based on emotions or market rumors, which can lead to financial losses. Welcome to the hardest game in the world. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
11
Learn Risk to Reward Ratio | Forex Trading Basics Hey traders, Planning your every trade, you should know in advance the profit that you are aiming to make and the maximum amount of money you are willing to lose. In this educational article, we will discuss risk reward ratio - the tool that is used to compare your potentials losses and profits. Let's start with an example. Imagine you see a good buying opportunity on EURUSD. You quickly identify a safe entry point, your take profit level and stop loss. From that trade you are aiming to make 100 pips with a maximum allowable loss of 50 pips. To calculate a risk to reward ratio for this trade, you simply should divide a potential gain by a potential loss: R/R ratio = 100 / 50 = 2 In that particular example, risk to reward ratio equals 2 meaning that potential gain outperform a potential loss by 2. Let's take another example. This time, you decide to short USDJPY. From a desirable entry point, you can get 75 pips with a potential loss of 150 pips. Risk to reward ratio for this trade is 75 divided by 150 or 0.5. Such a ratio means that potential loss outperform a potential gain by 2. Risk to reward ratio can be positive or negative. If the ratio is bigger than 1 it is considered to be positive meaning that a potential gain outperforms a potential loss. If the ratio is less than 1, it is called negative so that potential loss is bigger than potential risk. Knowing the average risk to reward ratio for your trades, you can objectively calculate the required win rate for keeping a positive trading performance. With R/R ratio = 0.5 2 winning trades recover 1 losing trade. You need at least 70% win rate to cover losses of your trading. With R/R ratio = 1 1 winning trade, recover 1 losing trade. You need at least 50% win rate to compensate your losses. With R/R ratio = 2 1 winning trade recovers 2 losing trades. You need at least 35% win rate to cover losses of your trading. Trading involves extremely high risk. Risk to reward ratio is a number one risk management tool for limiting your risks. Calculating that and knowing your win rate, you can objectively decide whether a trade that you are planning to take is worth taking. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
11
I would lie to you that I am very special!This is an event that has spread all over the real and virtual space these days I am better than you, more beautiful than you, smarter than you But the reality is something else But we know the truth! You and I are human, we have our merits and demerits, we all lied, we were all kind, we were both good and bad! we are equal .. With this introduction, I wanted to get here that we in the financial markets are involved with an equal scale of types of risk It means that if I am facing some risks, you are also facing almost the same risks! So, of course, if we are profitable but have a low win rate, or vice versa, we have a high win rate, but we may not be profitable in the long term. Accepting this risk is the most basic step of entering the market. I think money management and risk management are the only keys to success Our learnings about technical and fundamental analysis only play a role in reducing or increasing the risk of our trade!
Education
by HoneyCreateMoney
Learn Why Do You Need a Stop Loss 🟥 Hey traders, Talking to many struggling traders from different parts of the world, I realized that the majority constantly makes the same mistake: they do not set a stop loss. Asking for the reason why they do that, the common answer is that these traders consider the manual position closing to be safer, implying that if the market goes in the opposite direction, they will be able to much better track the exact moment to cut loss. In this article, we will discuss why it is crucially important to set a stop loss and why it is the number one element of your trading position. First of all, let's discuss what is a stop loss. By a stop loss, we mean a certain price level where we close our trading position in loss. In comparison to a manual closing, the stop loss should be set at the exact moment when the order is executed. Stop loss allows us limiting the risks in case of unfavorable movements. On the chart above, I have illustrated 2 similar negative scenarios: 1 with a stop loss being placed and one without. In the example on the left, stop loss helped to prevent the excessive risk, cutting the loss at the beginning of a bearish wave. With the manual closing, however, traders usually hold the negative positions much longer, praying for a reversal. Holding a losing trade, emotions intervene. Greed and fear usually spoil the reasoning, causing irrational decisions. Following such a strategy, the total loss of the second scenario is 5 times bigger than the total loss with a placed stop loss order. Stop loss defines the point where you become wrong in your predictions. Planning your trade, you should know in advance such a point and cut your loss once it is reached. Never trade without a stop loss. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
9
DAY TRADING 101: How to Get StartedHello guys! Day trading is a popular way for traders to make money by buying and selling assets within the same trading day. However, before you begin day trading, it's important to understand the basics and develop a solid trading strategy. In this post, we'll cover the basics of day trading and provide some tips on how to get started. First, it's important to understand the different types of securities that you can day trade. Some popular options include stocks, options, futures, and currencies. Each of these securities has its own unique characteristics and requires different strategies, so it's important to choose the one that best fits your goals and risk tolerance. Next, you need to develop a trading plan . Your plan should include your trading strategy, the securities you plan to trade, and your risk management techniques. It's also important to set realistic goals and be prepared to stick to them. Once you have a trading plan in place, you need to practice . You can do this by using a simulation or paper trading account. This will allow you to test your trading strategy and learn from your mistakes before you start risking real money. Another important thing to consider is your risk management . This means understanding the level of risk you're willing to take and setting stop-losses and profit-taking orders to protect your capital. It's also important to maintain a proper risk-reward ratio, which means that the potential profit should be larger than the potential loss. In addition to the above, it's crucial to keep an eye on the market and news , as they can greatly impact your trades, so it's essential to stay updated with the latest news and trends. Finally, keep in mind that day trading requires discipline and patience, so be prepared to put in the time and effort to become a successful trader. To sum it up, day trading can be a great way to make money, but it's important to understand the basics and develop a solid trading strategy. Additionally, you should practice with a simulation or paper trading account, have a proper risk management, stay informed and be prepared to put in the time and effort. Which type of trading do you prefer?
BLACKBULL:US30Education
by m_maia14
1
Why do you need trading plan? If you make a mistake while trading on the market, you will be punished very quickly. The market doesn't like mistakes or carelessness, so the price will be a minus from your DEPO. This is just how things work. Because of this, planning is an important part of successful trading and not just a feature of an option that doesn't help you reach your goals. Today, we'll talk about what a trading plan should look like and lay out a clear set of rules that a trader can rely on in his work, no matter what the market is like, how long the investments are, or how much money they have to invest. If you don't have a plan, you're setting yourself up to fail. Remember this simple rule and stop trading based on how you feel. The market is not the place to make hasty decisions. If you have a clear trading plan that includes all possible ways to respond to changes in the market, you won't doubt the rightness of your trading decisions, and you'll be much less likely to make emotional trades that hurt your trading account. A trading plan and a trading diary will help you become a more disciplined trader and use your time, money, and nerve cells more wisely. In trading, what is a trading plan? If a trader doesn't have a plan for how to trade, he or she is likely to lose money in the market over time. As a broker, I have seen dozens of examples of this rule being true. This was also clear when I opened my first trading accounts. Most traders who consistently lose money on the financial markets do not have a trading plan. They open and close trades on a whim, or if they do have a plan, they ignore it when it would be best to follow it. Keep in mind that one of the hardest things about this kind of business is to stick to a trading plan. Just ignoring it once is enough to erase the trading results from the last few weeks or months. Trading is based on discipline, but it won't make sense if you don't have a clear plan of what can and can't be done. In trading, what is a trading plan? There must be at least five parts to a trading plan. Also, each of them could be a possible answer to the question: Can you trade on the market right now? Which way should you trade? (if it's a directed trade) How to figure out the right time to enter the market? How to define the goal and limit the risks? How to figure out the best size for a position? This is the "skeleton" of a trading plan. Each part needs to be written in detail on its own, based on the trading method, risk tolerance, and details of the markets being traded. Not every part of a trading plan is as important as the other parts. Some of them need to be changed to fit your trading style (Points 1, 2, and 3),while others should never be ignored or changed in a big way, or trading on this account will end very quickly and tragically (Points 4 and 5). To sum up what has been said, the following can be said: In the trading plan, you should list all the ways you could react to a change in the market. If this happens, you won't have to worry about "force majeure" anymore. Sharp market movements and losing trades will definitely happen, but the risk of negative trends will be taken into account in the trading plan and will not be able to cause a trading account default. Most of the time, the market is just like any other place. And if a trader loses money because the market went up or down by 5–10%, the problem is probably with the trader's plan and the fact that he or she didn't follow money and risk management rules, not because a Fed official said something. The most important thing for new traders is to learn how to work with a trading plan and risks. They shouldn't think about how easy it is to get into the market, how many Xs they can have, or how carefree their life could be. You can only stay in the market and start to fully grow and develop as a trader if you stop making rash decisions that cost you your deposit. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. * Look at my ideas about interesting altcoins in the related section down below ↓ * For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
Position sizing 101 - how to avoid crippling lossesPosition sizing is determining the correct size of the position based on the amount of money you risk on the particular trade. Before you can do that, you need to figure out what is the maximum acceptable risk of the trade. That risk is usually expressed as a % of your balance, that you are willing to lose. To make sure you don’t lose more than this amount traders set a Stop Loss order which is the real maximum exposure of your position. If you don’t use a stop loss, you are exposing your entire portfolio! Where to put a stop loss? That’s where Technical Analysis can be handy. The majority of retail traders would look at the chart to find out – usually behind some support/resistance level or based on some volatility indicator, such as ATR Rule of thumb: Risk between 1-3% of your portfolio balance on each position. This way any single individual loss won’t wipe your account and break your spirit. And more importantly, even a string of losses will leave you with enough ammunition to recoup the losses. Have a clear approach to risk: 1. Set a risk limit for each trade, asset in general, day, week, and month (you won’t risk more than X account) 2. Determine the right position size and start small 3. Increase the position size of trades slowly if your account grows 4. Lower size or switch back to paper trading if your account doesn’t Two types of position sizing methods: Fixed and flexible Fixed position size Using the same position size for every trade Good for finding out if your strategy has an edge Make sure you come back and reevaluate position size periodically. Flexible position size Using a percentage of the current balance Cluster of wins makes every following win larger Cluster of losses makes every following loss smaller How to calculate the correct position size: You need to know 1. Trading account size 2. Acceptable risk (in % per each trade) 3. Invalidation point (in form of a distance from the open price) The formulae: Position size = Trading account size x Acceptable risk / Invalidation Example: 1. Trading account size = $10,000 2. Acceptable risk = 1% 3. Invalidation point = 4% drop in market price Position size = $10,000 * 0,01 / 0,04 = $2,500 This way you will always risk losing $100 no matter where your Stop Loss goes! If Stop Loss must be wider, say 8%, the calculation is: Position size = $10,000 * 0,01 / 0,08 = $1,250 Doubling the distance to our stop loss has us reducing our position size by half to maintain the same possible loss. How to set position size in Tradingview 1. Use the Long position or Short position drawing tool 2. Input your account balance 3. Select the risk you're willing to undertake - either as a % of your account balance or as a monetary value 4. Enter the market price of your Stop Loss 5. Look at the "Quantity" field in the drawing tool = that is the position size you should use to adhere to your risk settings.
CME_MINI:ES1!Education
by CleoFinance
2
Learn How to Apply a Position Size Calculator Hey traders, In this educational article, I will teach you how to apply a position size calculator and calculate a lot size for your trades depending on a desired risk. First of all, let's briefly discuss why do you need a position size calculator. Even though, most of the newbie traders trade with the fixed lot, the truth is that fixed lot trading is considered to be very risky. Depending on the trading instrument, time frame and a desired stop loss, the risks from one trade to another are constantly floating. With the constant fluctuations of losses per trade, it is very complicated to control your risks and drawdowns. A lot size calculation, however, allows you to risk the desired percentage of your capital per trade, limiting the maximum you can potentially lose. A lot size is calculated with a position size calculator. It is integrated in some trading platforms like cTrader. If it is absent in yours, there are a lot of free ones available on the internet. Step 1: Measure a pip value of your stop loss. It is the distance from your entry level to your stop loss level. In the example on the picture, the stop loss is 290 pips. Step 2: Open a position size calculator Step 3: Fill the form. Inputs: Account currency, account balance, desired risk %, stop loss in pips, currency pair. In the example, we are trading with USD account. Its value is $20000. Trading instrument is EURUSD. Step 4: Calculate a lot size The system will calculate a lot size for your trade. 0.069 standard lot in our example. Taking a trade on EURUSD with $20000 deposit and 290 pips stop loss, you will need 0.069 lot size to risk 1% of your trading account. Learn to apply a position size calculator. That is the must-use tool for a proper risk management. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
5
How much money in your account to bank your monthly income?“How much money would you like to bank a month?” $3,000 $5,000? $30,000? To answer this question and to get you on the path of achieving this income, you’ll need just one tool. Pull out your profitable trading plan You and I both know that to set a monthly income goal for trading, you’ll need a solid, proven and easy to follow game plan. If you do have a trading strategy that you’re happy with and works for you, then great. You should already have a strong indication on how your portfolio has performed during an array of different market environments. Obviously the more data you have on your trading, the higher the reliability that you’ll earn similar monthly returns in the future. Once you have gathered your historical trading data, you’ll then need to jot down four important stats namely: Four stats to create a desired income per month Stat 1: No. of expected winning trades per month. Stat 2: Average % gain in rands per trade. Stat 3: No. of expected losing trades per month. Stat 4: Average % loss in rands per trade. To choose the monthly income you’d like to pocket per month, you’ll need to know how much you’ll need in your trading account. Let’s say you want to bank an average $3,000 on average per month, with both winning and losing trades. For this article, let’s use the metrics of the MATI Trader System that I’ve back and forward tested for the past 20 years. Let’s plug the stats into the table to see. Expected return a month: $3,000 Stat 1: 3 Winning trades per month. Stat 2: 4% Average gain per winner. Stat 3: 2 Losing trades per month. Stat 4: 2% Average loss per loser. We now have all the information to calculate how much money you’ll need, in order to bank an average monthly $3,000. 1 Formula to calculate how much you need in your trading account Step 1: Find out the total percentage gain you can earn per month = (Winning trades X Gain % per winner) = (3 Winners X 4% Gain) = 12% gain. Step 2: Calculate the total percentage loss you can lose per month = (Losing trades X Loss % per loser) = (2 Losers X 2% Loss) = 4% loss Step 3: Finally calculate the amount of money you can net on average per month = (Total gain %) – (Total loss %) = (12% Gain – 4% Loss) = 8% Net gain Step 4: Know your trading account size to pocket a desired monthly income. = (Expected amount to earn ÷ Net % return per month) = ($3,000 ÷ 8% Return) = $37,500 So to bank around $3,000 on average per month, with 3 winners and 2 losers, you’ll need to have a trading account of $37,500. Don’t be fooled if you think you’ll bank $3,000 EVERY month! As you know, my goal through sharing this information is to show you how realistic successful trading works With pretty much every trading system, you can expect around three to four losing months a year. This year I had around 5 losing months - It's been a tough one. Some months you may be down $2,000 and other months you’ll be up $5,000, we never know for certain how the future will pan out. However, with a proven and a long back and forward tested trading system, with this formula will give you the edge of what the likelihood of your returns will be. The formula works on any size portfolio or desired income - I am just giving you an example with banking a $3,000 a month... If you enjoyed this article or would like to share feedback I'd love to hear it :) Trade well, live free.. Timon MATI Trader
JSE:J200Education
by Timonrosso
>1%Hello everyone Today I want to discuss with you a serious issue of risk management. Surely each of you has heard about the 1% rule: do not risk more than 1% of your capital in one transaction. The rule is well-known and quite useful, it is better to lose 1% than the entire capital. Beginners, although they know this rule, rarely follow it and this is a big problem. I think this is the main problem of beginners, people think that the problem is strategy, but FOREX trading is a game of probability. The Probability Game Not every trader understands what probability is. Most are afraid to study this question because they are afraid of long mathematical formulas. Do not be afraid, you need to study! And even if you don't want to do it, there is an easier way. In simple words: probability is something that happens more often than usual, but not always. Not clear? Let's take any pattern. By the method of research and observations, experienced traders decided that this pattern is often found on the market and it can be traded, while trading this pattern does not promise 100% results. This means that if you trade this pattern infinitely many times, you will be in the black at a distance. At a distance… We're getting close. Distance is a series of transactions. Whatever pattern you choose, whatever strategy you have, you need distance, you need to make a series of trades so that the pattern works out in order to understand whether this strategy is really profitable. But if you risk everything or almost everything in one trade, what distance will you have? Exactly. Without a series of trades, you will not be able to profit from the pattern, without risk management and following the 1% rule, you will not be able to make a series of trades, because your capital will disappear very quickly. Do you think that 1% is too little? Professional traders risk an even smaller percentage in transactions. The goal is to stay in the game as long as possible and that's when you'll be super profitable. Traders who risk less than 1% in transactions get huge profits at a distance, so don't worry about profits, think about losses, how to reduce and avoid them. Demo account The biggest advantage of a demo account, in my opinion, is that it is free and every trader can train to follow risk management for free and as much as he wants. I advise you to set aside a month for trading on a demo account with the right risk management. Set a goal not to open trades with a risk of more than 1%. And no matter what your strategy is, just follow the rule. I assure you, you will see the difference. Analyze, study, train and victory will find you. good luck! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
6
📖 STEP 4 to MASTER TRADING: Focus on One Pattern 📖 "I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times." - Bruce Lee We, traders, have a natural passion for learning and that’s really great and helps us build that foundation for trading. However, a moment comes when enough is enough and it’s time to focus on something more specific. But very often, we can make the unconscious mistake of trying to learn as much as possible, without even questioning if we really need it at the moment. 🟩 TOO MUCH INFORMATION For anyone eager to learn, the information is there. In fact, too much information, and naturally, it can be hard to stop learning. Sometimes we just feel we need to learn about one more pattern, one more strategy, one more approach. And it may seem that more knowledge will bring quality. And that’s true when you just start trading, however, later in your career, it makes sense to think and ask yourself: “Do I really need one more strategy which I know on an average level, or should I maybe focus on one strategy, or one pattern of any given strategy - and really master it, and refine it to the very deep level of understanding?” 🟩 IT’S UNCOMFORTABLE TO LET GO This part can be discussed for a long time, but based on what was said before, it’s literally uncomfortable for traders to let go of this habit of trying to trade multiple patterns, and learn more patterns in between. I’m not sure why this is so, there must be some psychological reasoning for this, but in simple words, every new trading pattern can be treated by us as a new opportunity to make profits in the market. And so when we stop learning more patterns - it can feel like we’re missing something. And it may seem that the more we trade, the more patterns we can use - the more profit we can bank because we can enter into the market based on different patterns. And while that may be true to some genius traders, for most of us it doesn’t work that well. More importantly - we don’t need to do it. It’s enough to master 1-2 patterns of a given system we believe in and tested, and so have confidence in it. I propose you consider “cutting off” 90% of your trading knowledge and focus only on executing 1-2 patterns max. Think about it. If you’re like me, you should feel really uncomfortable or even scared to do this. It may even seem stupid. Because it means you should let go of all the time you dedicated to learning, and maybe even trading with some systems before. But it’s an illusion because that time and effort - they are not lost, you can’t lose them, they are part of you now, part of your experience, something that led you to finally choose something you will work with really closely. But if you will attach to everything you learned before – this will confuse you and spray your focus all over the place, making it much harder to become a specialized, professional trader. 🟩 FOCUS ON YOUR BEST PATTERN ONLY When the time comes, and you’ve tried several strategies, it now makes sense to stop exploring additional systems and just focus on one system and learn everything about it. For example, if you’re trading head and shoulders, then stop trading double tops and bottoms, break and retest, and diamond patterns. Why? Because head and shoulders are not just 5 lines on the chart, it has numerous variations in how it plays out in the market, in different markets, sessions, and contexts. And you have to know it, see it, test it, and refine it. Become a master of head and shoulders, or any other specific pattern and trading approach, and be profitable with it. And if profitability is there - you can move on to another pattern, but at that stage, you will not need it probably. 🟩 HINDSIGHT TEST, BACKTEST, FORWARDTEST, REFINE It’s a great practice to have a “hindsight journal” and your backtesting journal, that will only be about that pattern you chose to trade. And there could be several reasons for choosing some particular pattern. But usually, it comes from your mentor or anyone else that you saw who reached sustainable profitability with it, and you believed in this pattern. But that would not be enough. You can’t tell your brain - believe in this. You need to actually show and prove it to your brain and to yourself. So you need to backtest this pattern, and only this pattern for at least 150 trades. This will help you to develop real confidence in the system. 🟩 YES, IT CAN BE HARD TO FIND “YOUR” SYSTEM I spent almost 3 years before I really found something I was willing to stick to long-term. Not sure if there’s actually good advice on how to find the system for yourself. It depends on your personality, your lifestyle, etc. Based on my experience, I would say just continue to learn and listen to yourself. Most likely you’ll find some trader or a mentor and you’ll like his trading style. Try to replicate it, and stick to his system. With time, and during journaling and live testing, it will all develop into your own system. Yes, it may look similar to your mentor’s but it will be your system. And once again, a trading system can have different kinds of entry confirmations, but it makes big sense to choose 1 or 2 confirmations and master them. 🎁 For those who are still reading :), thank you, and here’s BONUS trading hack for you. Next time during your trading day, when you'll feel something is wrong, maybe you're frustrated or just feel like your discipline starts to slip away, or maybe even you catch yourself thinking about entering without entry pattern or risk more than usual - realize that's your "monkey brain" stepping in. It's very hard to control, but easy to trick. Here's what you should do. Say to yourself: "Ok, I'll do whatever I like, place any kind of trade with the risk of half of the account if I want, BUT after 20 min. pass." Then you just start a timer (you can google "timer 20 min.") and do whatever you like after that 20 minutes. Usually what happens is you calm down and don't do stupid things. It very simple but effective technique. 🚀Thanks for your BOOSTS and support🚀 💬Send your comments and questions below, I'll be glad to talk to you💬 Dima
BITSTAMP:BTCUSDEducation
by Yelli_trades
19
What is IDO? Benefits and Risk WHAT IS IDO? SHOULD YOU BUY LAUNCHPAD TOKENS? What is an IDO? The initial decentralized offer is the process of selling tokens early on decentralized exchanges for new crypto projects (DEX). "IDO" - Initial Dex Offering. Decentralized intermediary exchanges help new blockchain companies sell their tokens. IDO is a common way to get people to invest in a crypto project. It works in a way that is similar to an IPO, which is when shares are sold on the stock market. IDO takes place in two steps: Tokens can only be used by a small group of people. On average, one participant gets a "allocation" of $100 to $1,000, but it depends on the project and could be more. Start of business. After being made, tokens are put in a pool where they can be sold. At this point, they can already be traded. How IDO works? With the help of decentralized exchanges (DEX), putting tokens into action is much easier. The project team issues its tokens on the chosen platform, and the exchange is already selling and transferring tokens. People buy them, which helps pay for the project. The main benefit of this method of promotion for the developer is that the process is automated. On DEX exchanges, everything is automated using smart contracts, so the developer doesn't have to deal with each sale and purchase. Here are some basic rules about how IDO works: From the start, the project is tested on the chosen DEX, and only after that can it be used for IDO. If the "exam" doesn't go well, they won't be able to enter IDO. Then, they sell a certain number of tokens for a set price. Buyers block their money, and the amount of assets they bought is given to them. After tokens are made, they are given to people (TGE). To buy, you have to be on the list of investors who have been checked out (White paper). For verification, you need either an address for a crypto wallet or the completion of tasks set by the project. The project team gets the money from the sale of digital assets, minus the money that goes into the liquidity pool. When the tokens are unlocked, they can be traded after the purchase. Coins can be locked for a few months or even a few years, depending on the project. During the attraction of investments in the project, the tokens are not liquid. Participation in IDO To join IDO, you'll need the following: - Metamask or another active cryptocurrency wallet; - Enough money in the right stablecoin to buy tokens and pay for exchange fees; - Set up the connection to the DApps. Make sure you have enough money in your account to cover the cost of transactions before you buy tokens. After connecting the DApp, you need to follow the instructions, which may be slightly different on each exchange. When a user buys tokens, he or she gets to keep them. When the generation period is over, the money is moved to the crypto wallet. Please keep in mind that the terms of the exchange say that assets may be locked for a while or used to stake. Before agreeing to the project's terms, you should carefully read the instructions. IDO's Safety Measures There are risks involved in any activity that has to do with buying assets. This is especially true when real money is used to buy virtual tokens in the crypto ecosystem. You have to do exactly what is said. A few rules to follow in IDO to stay safe: - Check out the link to sign up. Scammers can offer a fake link when they want to send money to a project. If you use it, the money will go to the attackers and not to the platform. This means you can forget about tokens. Look for strange redirects. - Think about what you want to say. Project ideas are usually posted on well-known, popular exchanges, but not always there. - Don't put money in until you've looked into the project. All of the information about the founder and his team needs to be carefully looked at. Most of the time, projects that make money are made by professionals who have done it before. - Pay close attention to the terms. Based on the rules of the exchange, tokens could be blocked for a long time. You need to know what to expect ahead of time. - Mentally say goodbye to the invested amount. The most important rule of investing is that you should only invest money that you don't mind losing if something goes wrong. IDO is not a way to make money where you have to put in money. Not because it was a scam, but because it took so long to pay back. What will happen to IDO? The rules for initial public offerings that are decentralized are always changing. There are new ways to trade coming up. The IDO (Initial Farm Offer) scheme is as popular as the IFO (Initial Farm Offer) scheme. The biggest problem with IDO is that assets have to be frozen before they can be released into the pool. So, you can only make money with tokens after a while. How many people take part in the trade determines how many digital coins the investor will get in the end. To attract big investors, basic and unlimited sale are added as new functions. IDO is one of the most popular ways to get money for a project right now, so they will become even more popular and better in the future. IDO's + - Using this method to get investments has a number of benefits: - Investors and developers don't work directly with each other. Instead, they work through an exchange, so the investor doesn't have to trust the smart contracts of the project. - Part of the money raised is put into the pools so that there will be a market for trading tokens after the sale. - To make a transaction, you don't need to give any personal information; all you need is an active crypto wallet. The project can be used by anyone. - At first, little-known tokens can attract investors, but it would be hard for them to do so through large, centralized exchanges. - IDOs let you buy a limited number of tokens, so that more people can put money into the project. This cuts down on the risks. IDO's - - Among the things that are bad about the IDO scheme, the following stand out: - Not enough good protection. The project is open to everyone. There is no guarantee that someone won't use IDO to launder money or do other illegal things. - There is no proof. Through initial decentralized offerings, it is easier to spread tokens that don't have very high ratings. Launchpads and IDO (launch pads). Should you buy launchpad tokens? Launchpad is a place where people can invest in new crypto projects. Money can be raised so that tokens can be released, developed, and improved. The most important thing that platforms do is bring together investors and blockchain developers into one crypto community. When people invest in digital assets, they want to get virtual currency at a good price. Before the project is published, it must be checked out to protect investors from fraud. The more popular and larger the launchpad, the higher the requirements are for crypto projects. At the same time, most online IDOs are just scams, and the number of these projects is growing all the time. To pick a good IDO, you have to look at a lot of information. The best way to avoid a scam is to do your own research (DYOR). After careful analysis, the choice should be based on objective criteria. he launch of a project on two top platforms at the same time is a good sign. In this case, it doesn't matter which launchpad to use. Investors. Be sure to research the investors and only trust those on the so-called "white list" if that is at all possible. Terms. Paying enough attention to the project's tokenomics is important. For example, some proposals say that you can get assets in a few years. Long-term investments in small projects are risky in a world where things change quickly. You should always think about whether the game is worth your time. If the project isn't shown on trusted platforms and investors from the Whitelist aren't involved, it's not a good idea for a beginner to take them on. You can try to learn about tokenomics by looking at the best projects. After you've mastered the details, you can try more risky launches, but only after you've done a thorough objective analysis. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. * Look at my ideas about interesting altcoins in the related section down below ↓ * For more ideas please hit "Like" and "Follow"!
Education
by Crypto4light