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Riskmanagementstrategy

Not having a position is also a position - When trading is bad?Every day we start by choosing between long and short. Sometimes you wake up, look at the btc chart - and clearly see your setup. And sometimes you don't see it. But you still saw how many of your friends traded shorts successfully and decide to enter a hostile market. Bottom line: Lost profit, exhausted nerves, stress, a blow to self-esteem. Most traders forget that there is a third option - to stand aside. Let's discuss when such position can be useful and why most people use it so rarely. Pro traders can be split into 2 types: Bulls and bears. They trade for profit only in one direction, because they have a trained eye to see only their kind of setups. When a bull finds himself in a bear market, he either trades in the red or breakeven. The same true for the bear. And yet, even knowing this, the trader continues to trade unfriendly setups. Fueled by success that he carries from his market, he is sure that just a little more, a LITTLE LITTLE more, and he will be able to trade profitably in this market as well. "And if I can trade for profit in both directions, then I will become an absolute terminator and even Warren Buffett himself will personally beg me to share my market forecast with him!" I don’t know if you woke up with such thoughts in the morning, but I definitely had a couple of times. The answer to this phenomenon is GREED (for money or fame). And the easiest way to get rid of such incidents is to write the following rule in your trading algorithm (I hope you have it): • Trading during correction is prohibited. Just one sentence will save you a huge amount of money and help you increase your capital much faster. Instead of losing money trading corrections, it is better to: • Relax and spend part of your honestly earned profit on yourself and your loved ones. • Patiently wait for your market and return to the game. Do this - and trading will bring you much more pleasure, and you will earn even more and enjoy your life! If this article was useful to you, please like and leave a comment so that I understand that it has value to you and will continue to write educational material in the future✌️
Education
by Artem_Dishel
277
How to lose your deposit quickly? Easy to follow Step-By-Step🔥Why am I qualified enough to teach you this? I lost 16 deposits and in 6 years I heard dozens of stories of people who lost their life savings in a couple of months by trading. I have personally tested many of these rules and confirmed that they work. So what are we waiting for? Lets get it started! 1. Trade with maximum leverage There is no need to trifle, the bigger leverage is, the greater your profit will be🤑 2. Don't use stop losses SL’s are for the weak. You probably remember how many times your positions went in the right direction after you closed them by stop loss. Stop losses are evil🤮 3. Average losing positions Everything is simple here - the more you average, the less you lose. That means you can keep going. Nothing ventured, nothing gained🥂 4. Use your last money and don’t be shy to borrow The more money you put in, the more money you pull out. Since you are 100% sure that BTC will grow, take loans not only in banks, but also from shady organizations, do not look at interest - you will repay everything back in a month anyway, and your profit will cover any losses💵 5. Trade only when you have been fired from work, haven't slept all night, your girlfriend/wife has left, or you have quarreled with relatives When everything is bad in your life, it is better to do what you do best - trading. Having earned a lot of money, you will not only be distracted from everyday problems, but also regain confidence and a smile on your face!😉 6. When you closed a losing position, immediately open a new one with double volume to recoup losses You came into trading to win! So win and never admit defeat! You are Hercules and defeating everyone in the market - this is your 14th feat! No step back, only forward!✊ 7. Prioritize Elon Musk's conspiracy theories and tweets over technical analysis Do you already have the conviction that the Illuminati run the market and every time you open a position and the market goes in the opposite direction, the Illuminati move to harm you? If not, then quickly look at your lost trades. You did everything right, but you still lost money. Why is that? Just don't tell anyone...🤫 8. Believe that trading is luck and the odds are always 50/50 This makes it much easier to make decisions. If black has fallen out on the roulette wheel 2 times in a row, then the chances that red will fall out are much greater. Therefore, do not hesitate to go against the trend, probability theory is on your side 💪 9. Stop exercising your body and mind You will need neither a healthy body nor a focused mind in trading. You only need your eyes to see “buy“ and “sell“ buttons, you don't need much intelligence for this. Being in the green zone? The green zone is a myth for suckers who engage in self-deception.😏 10. Quit your daily job Since you already created an account on Binance a week ago, watched a couple of trading videos, sorry, I meant in-depth educational materials, and even have already made a couple of successful trades, then it's time to finally quit that boring job. The road to millions is open, it remains only to take the last step.🤩 11. Manage your friends money Why getting rich alone? Take your friends and family with you. They will be grateful later.🙌 12. Don't look away from the screen until you've regained every last cent. Winners don't walk away with losses. Make sure your deposit has at least doubled before ending a session.😎 13. Never fix profits. If it has grown a little, then it will grow more. Do you remember how you closed the position when the coin grew by 5-10%, and then it rose another 200%? That’s what I’m talking about. Don't close too early, keep trades for the maximum profit.📈 14. Trade at night If you don't have time, don't give up. There is always an opportunity to earn. Even after a hard day at work.🤜🤛 15. Analyze the market on a 5m timeframe and trade on the 1m. Opportunities are always there - the main thing is to be open to them.🤞 I hope these tips will help you quickly drain your deposit down and return to a normal life. If you liked them or you are already using them, please click Like and leave a comment so that I understand that it is valuable to you and will continue to write educational materials in the future.✌️
Education
by Artem_Dishel
32
MARKET RISK MANAGEMENT: WHAT YOU NEED TO DOFor More Trading Videos and Analysis, Go ahead and click on the follow button. Given the current state of the markets at the moment, especially this morning, Correct risk management becomes ever more prominent as a skill. If you do not possess it, you are both putting your capital largely at risk AND missing out on Trades you could actually be taking in the meantime.. This is because when the market moves against you, you can still make money. That in essence is the key to success. We will use the DXY as a measure on this video due to its market exposure.
TVC:DXY
by WillSebastian
using USDT.D for closing or opening positionseach one of those ideas about the USDT dominance show a great opportunity for you. if the first one happen and you still have available liquidity of stables coin you might have a chance to build up your portfolio again. if the 2nd one happen you might wait more to gain more profit from your previous buys. if the 3rd on happen and BTC still obtain enough demand there would be great chance for those who still wait for 2nd entrance( the 1st on was on BTC around 33). so based on this logic I guess that would be a reasonable risk management. the key for a good trader is that you should always have enough liquidity on lower level in order to build a profitable wallet when market go down and give you more opportunity. meanwhile if market give you a chance to close position with profit don't miss the chance and save money. having enough liquidity is more important than huge numbers which are only numbers until you change them to Dollars $$$$. please share your ideas if you are agree or disagree with me and it would be appreciated to press the like button. hope to have more profits day by day. thanks for your patience to read my idea .
CRYPTOCAP:USDT.D
by behzadjl
Risk Management Basics | Retest Trading 💡 Hey traders, Being breakout traders we have two options for trade entries: when the breakout is confirmed we can either open a trading position aggressively once the candle closes above/below the structure or we can be conservative and wait for a retest of the broken structure first. What is peculiar about the second option is the fact that the majority of pro traders prefer the retest entries. In this article, we will discuss the pros and cons of retest trading. ✔️First, let's discuss whether the retest is guaranteed. NO. How often do we see that? Around 50-55% of the time. Does it mean that 45-50% of breakout trades will be missed? YES. The main disadvantage of retest trading is that a lot of trading opportunities will be missed. Occasionally the breakout triggers a strong market rally not letting the price return back to the broken structure. So what is the point to wait for a retest then? Why let the market go without us in case if there is no retest? ✔️Most of the time the breakout candle closes quite far from a broken level. Opening the trading position once the candle closes and setting a stop loss below/above the broken structure, one can get a very big stop loss. Such a big stop that its pip value exceeds or equals the potential return. 🖼️In the picture, I drew a classic channel breakout trade. The aggressive trader opened a long position as the candle closed above the channel's resistance. His stop loss is lying below the lower low of the channel. Analyzing his risk to reward ratio, we can see that his reward equals his risk. On the right side is the position of the conservative trader. His stop loss in lying on the same level. However, instead of opening a trading position on a breakout candle, he decided to wait for a retest of the broken resistance of the channel. Just a slight adjustment of his entry-level gives him a completely different risk to reward ratio. ❗️Patience pays in trading. Missing some trades a retest trader will outperform the aggressive trader in the long run. Trading is about weighting your potential gains & losses. Paying commissions and swaps for every trade, it is much better for us to trade less but pick the setups that give us a decent potential reward. What type of trading do you prefer? ❤️Please, support this idea with like and comment!❤️
Education
by VasilyTrader
30
BASIC MONEY MANAGEMENT - LOT SIZE VS REVERSAL AND ACCOUNT SIZEWe 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 ontop 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 £!000, as the total deployed usage allows us enough flexibility of movement on the chart and then using stop losses ontop 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! GoldView
OANDA:XAUUSDEducation
by Goldviewfx
16
XRP/USD NO NEED TO RUSHAnalysis: Right now patience is the key on the market, there is no need for huge spikes to the upside. A constantly growing trend will do the job if a lot of people are interested of buying. A lot of analyst posting about 50/50 chances about the price to go up or down, it's always the case, but we need to be 1 step ahead before the price action. If you wait until you see a huge price rise, you miss the low risk-reward opportunities from buying now safely with a stop loss of 1.10$, and you will start buying at 1.6 or even higher to catch the rise and you will have a nonsense risk reward ratio on the trade. As I shared my chart about my last long position you can see that I entered at the bottom of the correction from 1.2$, so our stop loss is at 1.10 in case of a sudden flash crash. I am not speaking about targets right now until we will go higher than the previous high. If it takes a lot of time to get to that top again, it will offers us higher price targets as well. Consider to join our community to get more of this kind for Free. community.protradersnetwork.com #forextrader #forex #forextrading #forexsignals #forexlifestyle #trading #money #cryptocurrency #trader #bitcoin #forexmarket #forexlife #technicalanalysis #stockmarket #forexanalysis #forexmentor #daytrading #forexgroup
Long
by tmsarn
Has Bitcoin found its bottom? How to properly swing trade. Hello Everyone, This is a chart I made a few days ago as bitcoin was approaching 44k. As always. the first step in my analysis is identifying support and resistances on daily chart and looking for the formation of a bullish/bearish pattern to engage in a buying or selling strategy. Next, I look at price action and see if the selling momentum is waning off to support any buillish divergence I see on the chart. As we can see, bitcoin is in a double bottom formation. Now, how do you properly trade this without getting burned? You average in. Averaging in is a way to ensure profit with minimizing your risk. A first buy would be 25% of portfolio at 44.5k (I always buy a bit above support so my limit order fills) which is right above support. A stop loss would need to be just below 43.3k (the previous lowest low). This is about a 3% loss but a total of .07% to your portfolio. If the trade fails you can walk away taking a very small loss and you get lower prices in return. A second buy would need to be confirmed by indicators on a 4 hour to daily timeframe with shorter term timeframes showing bullish behavior as well. A good buy would be around 51-52k depending on the close on a 4 hour and daily candle and I would also move my previous stop loss up depending where the daily candle opened. At this point i would do another 25-40% buy depending on how each chart looks. A third and fourth buy would be constituted by closes above the next resistance levels and how bullish or bearish each timeframe looks. OVerall, averaging in is a great way to ensure big wins with taking minimum losses. Let your winners win and keep your losers small. Be patient, find confirmation, and utilize risk management strategies to help you become a better trader. Please give me a thumbs up if you found this useful and good luck trading!
COINBASE:BTCUSD
by RomanXIV
Stellar Lumens XLM Potential 14:1 Setup Stellar is an entire ecosystem with expanding potential. Here is something I have positioned in for now. TRADING IS NOT SUITABLE FOR EVERYONE. If you don't know what you're doing... TRADING CAN CAUSE YOU TO COMPLETE LOSE ALL OF YOUR MONEY. Even if you "know what you're doing" you can still experience expensive LOSSES and lessons. You could use a practice account and trade with leverage. Feel free to follow me on tradingview for more markups.
BINANCE:XLMUSDLong
by ZacharyHogan
5
AUDUSD should pull back lowerAudusd is caught in overall channelling. Both buyers and sellers are compelling strong, while the overall channel is in sellers territory. It is hard to know which side should continue trending move, but we can still trade it well. We are looking this trade as potential if price broke through first support level at price 0.72363. Sellers might push price lower to our first target at 0.71612. First target is very important for buyers too, so we will be looking this very closely. That means, we have to follow lower timeframe momentum too, when one side will made a breaking/ bouncing decision. Sellers next target is at 0.70831. Setting up Stop Loss to break even and following it lower... If price will bounce, we have to wait for more patterns and fact data. We hope this was helpful. Good trading Elite traders. ELitefxacademy
Short
by EliteFxAcademy
20 Days Trading CalculatorThis is my 20 Days trading calculator , i will share it for free..😊 Forex trading it's very simple, you just need to be content with small steps. That's all trading is.😊 Small steps that you take every day so when you look back down the road it all adds up and you know you covered some distance. It took me a long time to accept that, but it's true.😊 If most traders would learn to sit on their hands 50 percent of the time, they would make a lot more money. 😊 You need to have patience.😊
by Ghost_Trader_SA
Risk management helps with many psychological issues in tradingLet’s also talk about another so very important, and often undervalued part of risk management. Risk management really does help me to stay emotionally stable during trading. Just think about it: If I place a trade with a 30% risk and I lose it, it will hurt so much, and it will allow my negative sides, my revenge nature to come out and start dominating. I will be stressed, I will not sleep well if this trade will stay overnight. And even if I win, I will be emotionally and mentally tired, I will most likely not be able to continue trading in a normal state of my mind and emotion. The next thing is not so obvious, but if you have bad and not consistent risk management, you will NOT TRUST YOURSELF. Can you imagine how destructive it is on a subconscious level, how much stress it causes? You start your trading day and deep inside you know you can do many bad things with your account because you know how often you just follow an impulsive behavior, and how often you revenge trade. You know it can be so bad you can actually blow your account in 1 day, as it happened before. Even if you made a self promise to trade according to your plan. And on the contrary, what happens if I regularly, consistently risk 0.25-1% of an account. Many GOOD things will happen, both obvious and not so obvious. First of all, after entering a trade, I will most likely be able to stay relatively calm - I know if I lose, I’ll lose only 0.25-1%. I know I can trust myself and I will not move or remove my stop loss. I'm protected. It will help me to be pleasantly curious about how my trade will develop. If it goes my way, I will be naturally glad it was good, but I will not fall into euphoria and become over-excited, because I risked only 1% and my gain will be 1-2% only. That's very nice of course, but not too much to bring me to a state of euphoria. If it goes against me, I will allow it to do so and hit my SL. And after it does so, I will then realize that it’s totally fine to lose a trade. I can lose even 10 of them in a row, and I will still have 90% of my account ready to trade the next day, next week, next month, and next year. I believe good risk management lets you feel you DO control at least something in your trading, you will feel you can allow yourself to be mistaken about the trades you take. That's why I think we should not concentrate on the ways of eliminating overtrading, stress during trading, emotional trading, fear, and so on. Instead, we should focus on good risk management. I will post more about practical ways of improving risk management.
UEducation
by Yelli_trades
1
GJ 120 pips Sells BreakdownPrice broke below the support we highlighted, however as there was no lower wick on the 1h breakout candle, price had no clear range to move down, so instead of moving to the lower timeframes to look for selling confirmations, I stayed on the 1h timeframe and decided to look for a break and retest setup, as it was not on a lower timeframe my confidence for this trade was pretty good. As soon as we tapped into the broken support zone, I took an entry with half of my usual risk, stops were above the previous candle and my TP was highlighted on the chart. Profits were taken at each of the support zones as we tapped into them, this lowered our risk and secured profits. When we hit our final target, we removed our TP and let 10% of the trade run, the target for this was 135.887, as this was a possible rejection zone and also 120 pips profit. This target was also hit before price formed support to continue back up.
Education
by mcrhf_fx
EJ Analysis 04/10/2020 -- UpdateI had already highlighted that for buys to be valid, price needed to break resistance and form a support. Price did exactly this and as support was formed, I looked for confirmations to enter buys. When the bullish 15m candle broke the high of the previous 15m candle which was our formation of support, I entered the trade. My stops were below the current 30m candle and I secured profits and left stops at BE when the zone highlighted as a potential barrier for price to break through was tapped. I left half of my position open and closed 90% of that at the 100 pip mark, with my final runner eventually getting stopped out at 98 pips profit. This is an example of trailing stop loss, every so often I moved my SL further into profit following market structure. The risk reward on this trade was 18.36 and price moved beautifully with no bumps along the way.
Long
by mcrhf_fx