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Riskmanagementstrategy

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
📖 STEP 3 to MASTER TRADING: WHAT’S YOUR TRADING EDGE? 📖The topic of trading edge in the market is highly underrated, in my opinion. That’s why today I propose to discuss it, and I hope it can help you to shift your perspective on this matter. So let’s think about this together. What parts does your trading edge consist of? 🟩 THE BIG FILTER For me, the first part of any trading edge is its filter. So your trading system tells you very clearly when you should NOT be in the market. It protects your capital - both $ capital and emotional capital - from poor market conditions, and low-quality and low-probability setups. And what it actually means when you execute your edge is that most of the time, you will stay out of the market. 🟩 YOU WILL “MISS” THE MOVES That’s really tough topic for many of us, me included because very often you’re looking to enter the zone, but the price can either turn right before tapping into it or tap and doesn’t give any confirmation for entry. And that could be very emotional. However, the fact is simple - such “missed” moves are also part of our edge. Why? Because if you tested one set up, one pattern, and you know it’s profitable the way it is, then you need to execute it the way it is. Keep in mind, when I say profitable, I don’t mean crazy profitable. Today, with access to prop firms, we need a very low % of profitability to earn for living. We can scale the $ amount relatively easily if we are profitable consistently. So again, we don’t need every move, and we don’t need the whole move. We just need some part of some moves - and a good edge will make consistent profits out of this. And only then, if you want, you can tweak, refine and step by step make your system even more profitable. 🟩 THE PATTERN This part is actually your entry pattern. Notice again, this is just a part of your system, not the whole system. If you really understand this, you’ll be much more relaxed in the market. This part should include a written checklist for your entry - just like a pilot has a checklist before his flight. A checklist, in its turn - is a part of your trading plan, it’s the essence of your trading plan. You will refer to it before every trade. 🟩 MANAGEMENT, LOSERS AND BREAKEVENS When you executed your edge in the market, now you need to manage the trade accordingly, based on your checklist. So take partials, accept breakevens and losers. If you entered into a high-quality setup, which turned into a BE or a loser - it’s the part of your system, and usually, it doesn’t make sense to overthink it and try to find flaws in your system. But that’s flexible, and of course, you can analyze what happened, and maybe even find something to tweak, but very often a loser is just a normal loser, and breakeven is just a normal breakeven. 📖To recap, any edge will include: 🔹“missed” trades 🔹trades, where price didn’t tap into your entry order just a bit 🔹trades where you were stopped out for several pips and price then went to profit (if it repeats constantly, maybe consider having a bigger stop loss) 🔹full TP 🔹partials 🔹losers 🔹breakevens 🎁If you’re still here, here’s a BONUS trading hack for you. Ask yourself and try to answer honestly this question: “During all the time I’m trading, what is the maximum amount of days in a row, when I followed my rules to the T, honestly?” You will be surprised, but the usual answer is 3-10 days. Yes, people can trade for 2-3 years, but never manage to follow their rules (whatever they have at the moment) for at least a month in a row. It all leads to catastrophe, of course. Thank you for your time! If you want to see more educational materials, please hit the BOOST button and leave your comments below. Dima
FOREXCOM:XAUUSDEducation
by Yelli_trades
7
1% risk per trade is too much, try this insteadHello traders, Remember when you just started trading, almost everywhere you could hear about the 1% per trade risk rule? While this is not too bad, I think in most cases 1% risk is too much. Here's why: 1. If you're trading a 100k prop firm account, 1% is $1000. Imagine you have a very usual losing streak of 3-4 trades. Now you've lost 3-4%, and $3-4k in dollar amount. If you're a day trader, it could happen in one day easily. Ask yourself honestly, how would you feel about it all and if you will be capable of executing your edge? 2. Most prop firms will have a 5-10% drawdown breach rule So again, a very usual losing streak will take you halfway to account termination. 3. 1% risk leaves almost no room for days where you executed poorly or traded emotionally. We are all humans and we make mistakes. Something goes wrong and you trade the setup you were not supposed to be trading. And instead of stopping after 3 losers, you continue to trade more. So what can we do about it? My suggestion is very simple: risk no more than 0.1-0.25% per trade. If your average winner is 3-7RR, then with a good account size a 1% winner is just huge and more than enough. And if you're going through the evaluation process, such a small risk will keep your equity curve in control and still will allow you to grow it to profit targets. Hope it helps!
Education
by Yelli_trades
BTC TA - Bearish scenario 4h I opened a short yesterday at the $23300 level. Let's see what will happen 🚀. Just remember: Stick to your plan and have a good risk management 👍 And that's the main reasons I decided to take a short on BTC : ► Confirmation of the breakdown of the rising wedge ► Retrace of the 0.5 fib level ► Tripple or four Top ► High risk reward ratio Trading setup: Entry: $23310 SL: Moved to small profit TP1: $21600 (already taken 40%) TP2: $20555 ⚡Just to notice. We are right now in a very volatile market phase in the crypto. Crazy and unpredictable things could happen. That's why you should use a stopp loss. ⚡ Disclaimer: DYOR. No financial advice. Just for your impression.
BITFINEX:BTCUSDShort
by CryptoPlough
BASIC MONEY MANAGEMENT - LOT SIZE - REVERSAL - ACCOUNT SIZEHey Everyone, A repost to remind newbies of some basic money management fundamentals. We see too many new traders trade with random lot sizes with no understanding on the impact it has on account sizes, which result in not only losses but BLOWN accounts. This post is by no means a risk or money management strategy but more so just basics on the movement of reversals and how the lot sizes impact the value of your account during this reversal. Trading with the right lot sizes allows a trader to manage their account/money when the trade goes against them. The right size allows a trader to move a range without blowing their account and without seeing their account reverse to the point of no equity. This type of trading gives traders anxiety and in return this anxiety impacts trading psychology . This then has a ripple effect and impacts your trading decisions and analysis. The example we show on the chart is an entry of SELL that reverses by 380 PIPs. This movement happened in literally 2 candles (1hour candles) , so in two hours the price from entry reversed by 380 pips. This example then shows what this equates to in monetary value dependent on lot sizes. The example shows that anyone with a £500 account trading this movement with a lot size of 0.20 would have blown their account. Lot size usage should be based on the size of your account for example; £500 size account - we will only use 0.01 size lot sizes with maximum deployed total no more than 0.05. This will allow an account to survive volatile movements. Also using stop losses on top of this setup further strengthens the risk management. £1000 size account - we will use 0.02 lot sizes with maximum deployed total no more then 0.10 any given time. £2000 size account - we will use 0.03 lot sizes with maximum deployed total no more then 0.30 any given time. £5000 size account - we will use 0.06 sizes with maximum deployed total no more then 0.50 any given time. Basically 0.10 for every £1000, as the total deployed usage allows us enough flexibility of movement on the chart and then using stop losses on top of this, gives us further control of our money management. We hope this quick basic insight helps some of the newbies better manage their lot size usage. Please like, comment and follow us to support our work, we really appreciate it! GoldViewFX XAUUSD TOP AUTHOR
OANDA:XAUUSDEducation
by Goldviewfx
8
ETH TA - 1h Bearish scenarioI opened a short in the morning around at the 0.618 fib level. Let's see what will happen 🚀. Just remember: Stick to your plan and have a good risk management 👍 And that's the main reasons I decided to take a long on ETH : ► Confirmation of pullback of the ressistance (grey box and orange line) ► Retrace of the 0.618-0.65 fib level ► Tripple Top ► High risk reward ratio Trading setup: Entry: $1925 SL: Moved to bear breakeven TP1: $1736 (60%) TP2: Let it run till $1280 or SL hit after moving it down ⚡Just to notice. We are right now in a very volatile market phase in the crypto. Crazy and unpredictable things could happen. That's why you should use a stopp loss. ⚡ Disclaimer: DYOR. No financial advice. Just for your impression.
BITSTAMP:ETHUSDShort
by CryptoPlough
Position Sizing StrategiesPosition Sizing Traders spend much of their time looking at charts and analyzing using technical or fundamental analysis, or a combination of both. While this indeed is a very good thing to spend time on, not all traders take their time to focus on risk management, and more specific position sizing. I see a lot of new traders or old traders which trade only to have their accounts blown up by taking random positions with no plan whatsoever. Proper position sizing is a key element in risk management and can determine whether you live to trade another day or not. Basically your position size is the number of shares you take on a trade. It can help you from risking too much on trade and blowing up your account. Without knowing how to size your positions properly. You may end up taking trades that are far too large for your account. In such cases, you become highly vulnerable when the market moves even just a few points against you. Your position size or trade size is more important than your entry and exit when trading or investing. You can have the best strategy in the world. But if your trade size is too big or too small, you will either take too much or too little risk. So how do you prevent yourself from risking too much? How do you know the right quantity to buy or to sell when you initiate a position? Let's say you have $10,000 in your account, and there's a stock valued at $100 you like and want to buy. Do you buy 100 shares, 10 shares, or some other number? This is the question you must answer to how to determine your position size. If you decide to spend your entire account balance and buy 100 shares, then you will have a 100% commitment to the stock and this is not indicated also in taking a position that represents a large portion of your total portfolio. There is also the opportunity cost involved, you will have to pass up other trades that you may have liked to enter. Position Sizing is a critical issue that a trader needs to know beforehand and to do on the fly. It's as important as picking the right stock or currency to invest. Position Sizing Strategies ☀️ There are several approaches to position sizing and I will run down some of the more popular ones. 1️⃣ The first one and the most common one is "Fixed percentage per trade". Position Sizing can be based on the size of an overall portfolio. This means a percentage of that overall capital will be predetermined per trade and will not be exceeded. That would be 1% or even 5%. This fixed percentage is an easy way for you to know how much you are buying when you buy to use a simple example of fixed percentage position sizing. Let's take again the $10,000 account size and a $100 stock. If you take a simple one-person position based on your account size that comes down to a single share, you may be thinking you are no better than the person with a $100 account buying one share. The difference is that the $100 account holder has a 100% position size while the $10,000 account holder is putting just one percent at risk. Which position size allows a trader to sleep better at night? Of course, the second position sizing helps control the risk. A 1% hard limit on each trade allows you to tolerate many losses in your search for profits. Protecting your capital is your primary job. Your secondary job is allowing room in your portfolio to find other trading opportunities. The fixed percentage amount is an easier approach to accomplishing this 2️⃣ The second risk management approach involves a "fixed dollar amount per trade". This approach also uses a fixed amount for this time. It's a fixed dollar amount per trade, rather than a percentage of the actual portfolio. This involves choosing a number again and using the same $10,000 portfolio as an example. So you decide you won't spend any more than $200 on any trade. For traders with small account sizes, this can be an attractive approach because it limits how much you can lose. However, it also limits what stocks you can buy. You will have to roll out some securities based solely on their price. Of course, this is not necessarily a bad thing. 3️⃣ The third approach is "volatility-based position sizing" A more complex approach, but one that allows for more flexibility is position sizing based on the volatility of the security you plan to buy. It's more dynamic because it doesn't treat each stock the same. This approach allows you to drill down and exercise finer control over your portfolio. For example, growth stocks will invariably be more volatile, and that volatility will be reflected in your portfolio. To reduce that overall risk on your portfolio. You wouldn't buy less high volatility stocks than you would lower volatility stocks. You can measure volatility with something as simple as a standard deviation over a given period, say 15 or 10 trading days. Then depending on the deviation, you adjust the number of shares you buy when you initiate a position. This allows lower volatility stocks to have more weight in your portfolio than higher volatility ones. Position Sizing based on this ideology lowers the overall volatility within a portfolio. This strategy is frequently used in large portfolios. Even longer-term traders and investors face position sizing questions for them when the price of a security with their holding goes down. It represents more value. Adding to their position, in this case, is referred to as averaging down. Long-term traders can decide to average down using similar position sizing approaches by risking either a fixed dollar amount or a percentage amount when the stock trades down you can use standard deviation here as well to help figure out the dollar amount. Some additional common sense risk parameters seem worth mentioning and may be incorporated into your trade plan. For example, Once you've figured out how much you're comfortable losing a stop loss level for each trade should be determined and placed in the market. A seasoned trader will generally know where to put their stop loss orders after having optimized their trading plan and chart analysis is often performed when setting stop-loss orders rules of thumb should be followed when you use stops to manage risk on your positions. By now I hope you realized that correct position sizing is crucial. You should always consider how much you buy when you buy and also know how you came up with that number. Regardless of your account size. Take the time to come up with a consistent approach that matches your trading style and then stick to it. You can incorporate flexibility as well. For example, if you're willing to take more risks with your portfolio, you can die a lot of the person that you use. sound money management techniques can help make an average trader better and a good trader becomes great. For example, a trader that is only right half of the time, but gets out of losing trades before the loss becomes significant and knows the right winners to a substantial profit would be way ahead of most others with trade with no clear plan of action whatsoever. And you have to find the right balance because if you risk too little and your account won't grow and if you risk too much, your account can be destroyed in a few bad trades. 🌱 If you found value and learn something new, leave me a like to show your support. 👍🏼❤️
INDEX:BTCUSDEducation
by parissap
23
#gameplan P3N Low-Risk Setup:Risk management is very crucial when you trade. Here is one of my mostly applied strategies for risk management. It's useful for people who trade in a very volatile market or fade. This method aims to limit the loss to zero by taking profit when reaching 1R. It's with less profit than expectation, but lower the risk. 1. Open the position and set how much $ you're going to risk for this gameplan. Then set the partial TP at the 1R and xR levels. (xR is your target.) 2. When price reaches 1R, it TP 1/2 position to keep the small profit. 3. If the trend is against our expectation and have a down move to -1R, at which our stop loss is, we close the position with 1/2 of the original with the same amount of loss as the profit. So this will keep our trade safe. However, if it goes up to 5R, which is out target, we can still keep 1/2 of our position to take the profit. Tips: You can use Fibonacci tools to predict how many xR in your gameplan.
by p3nchan
2
15% Short Trade Set Up!Since support failed we can see a back-test of the S/R line happened and it is now looking like a short position will be best in the short term. Stop above the S/R line. Targeting $17 then $16. Every day the charts provide new information. You have to adjust or get REKT. Love it or hate it, hit that thumbs up and share your thoughts below! Don't trade with what you're not willing to lose. Safe Trading, Calculate Your Risk/Reward & Collect! This is not financial advice. This is for educational purposes only.
Short
by rnaofs