How To Lose Small When Trading Big
Losing trades aren't always bad. It's when you don't manage the trade before you lose that can make losing trades bad.
Let me walk you through 4 positions that I stacked week and show you how I avoided losing thousands of dollars and kept the loss to under 1%.
Firstly, it's important to understand that I am a swing trader which means I observe a variety of higher timeframes.
Secondly, I use my own strategy called TMP. It's based around every pullback within the trend cycles so I can trade the continuation of the trend.
Thirdly, This analysis was mostly done on the weekly, daily, 4 hour, and 2 hour timeframe.
Lastly, I aim for more than 2:1 reward to risk trades and for these trades I was sure to keep my losses below $500 a trade.
Trade 1
s3.tradingview.com/snapshots/i/ip2YkQIh.png
This trade was based on the weekly timeframe. The reward to risk was around 4.50 and I knew I'd be in this trade long term. Probably around a month or so, maybe longer.
I risked 0.50% in the trade because I needed to build the analysis and I knew I wanted to stack more trades in case price went my way which you will see me begin to build in the new few trades.
Trade 2
s3.tradingview.com/snapshots/r/RpG2yGOI.png
This trade was based on the 4 hour timeframe. Price made a new higher high on the 4 hour. I set a pending order so when price pulled back it would trigger me into the trade.
This trade was a 8:1 reward to risk ratio. I risked 0.50% on this trade.
Price began to go my way. I felt good about the trade.
Trade 3- Trailing the stop begins
s3.tradingview.com/snapshots/m/mtg3hiR9.png
Price made a new higher high. I had to drop down to the 2 hour timeframe to get a good view of this trade. My feelings on this trade was neutral. I reminded my self that no matter what I'd follow my rules. So I set another pending order and went about my day.
The Reward to risk on this trade was a 16:1.
I risked 0.25% on this trade.
Now at this time I'm sitting at 1.25% of risk in 3 trades.
This was when I decided to move my stop loss on both trades underneath the third trades higher low.
I had just a little risk left on both of these trades but nothing heart stopping.
I was stoped out of the third position for a for around -0.27%. But my first two trades continued to run.
Trade 4- The last stand
s3.tradingview.com/snapshots/m/mtg3hiR9.png
Then price went my way. I realized I wanted to be long again and the entry sat right where I'd just entered my precious losing trade.
The reward to risk was 19:1. Whew! This was the opportunity of opportunities for me this week and I couldn't avoid entering.
So I set another pending order to buy. It triggered and a few hours later, I lost the trade. and my other trades were taken out as well.
I lost a total of $761.
This was only 0.76% loss in my account because of how I managed my trades as price went up in profit.
Had I kept my trades at the same risk(1%) and never moved my stop loss I could have lost $4000 this week.
The key to losing small is to build out your positions each time price makes a new high or low depending on the direction of the trade.
I built 4 positions and I have to say I would do it again. The potential for big rewards to risk got me, and I knew risk 1% on each trade would have meant I'd lose my funded account due to their drawdown rules. I cannot lose 3% in one day. Thats very manageable when you decrease your risk per trade.
Thats what had to be done.
If you don't think you can pass a challenge by decreasing you risk, your rewards aren't big enough.
If you learn anything from the trades I entered this week, the previous statement above is how can lose small while trading big.
Do I still believe NZDCAD can go up? Yes!
As long as price stays above the weekly higher low. I'll build out this scenario again.
Well, I really do pray you enjoyed this recap from my trading this week. I had no other trades on my other currency pair so it was a smooth trading week.
Be sure to like this article if you enjoyed it and found it intriguing. If you have any questions do ask them below.
Much love and blessing❤️
Shaquan
Let me walk you through 4 positions that I stacked week and show you how I avoided losing thousands of dollars and kept the loss to under 1%.
Firstly, it's important to understand that I am a swing trader which means I observe a variety of higher timeframes.
Secondly, I use my own strategy called TMP. It's based around every pullback within the trend cycles so I can trade the continuation of the trend.
Thirdly, This analysis was mostly done on the weekly, daily, 4 hour, and 2 hour timeframe.
Lastly, I aim for more than 2:1 reward to risk trades and for these trades I was sure to keep my losses below $500 a trade.
Trade 1
s3.tradingview.com/snapshots/i/ip2YkQIh.png
This trade was based on the weekly timeframe. The reward to risk was around 4.50 and I knew I'd be in this trade long term. Probably around a month or so, maybe longer.
I risked 0.50% in the trade because I needed to build the analysis and I knew I wanted to stack more trades in case price went my way which you will see me begin to build in the new few trades.
Trade 2
s3.tradingview.com/snapshots/r/RpG2yGOI.png
This trade was based on the 4 hour timeframe. Price made a new higher high on the 4 hour. I set a pending order so when price pulled back it would trigger me into the trade.
This trade was a 8:1 reward to risk ratio. I risked 0.50% on this trade.
Price began to go my way. I felt good about the trade.
Trade 3- Trailing the stop begins
s3.tradingview.com/snapshots/m/mtg3hiR9.png
Price made a new higher high. I had to drop down to the 2 hour timeframe to get a good view of this trade. My feelings on this trade was neutral. I reminded my self that no matter what I'd follow my rules. So I set another pending order and went about my day.
The Reward to risk on this trade was a 16:1.
I risked 0.25% on this trade.
Now at this time I'm sitting at 1.25% of risk in 3 trades.
This was when I decided to move my stop loss on both trades underneath the third trades higher low.
I had just a little risk left on both of these trades but nothing heart stopping.
I was stoped out of the third position for a for around -0.27%. But my first two trades continued to run.
Trade 4- The last stand
s3.tradingview.com/snapshots/m/mtg3hiR9.png
Then price went my way. I realized I wanted to be long again and the entry sat right where I'd just entered my precious losing trade.
The reward to risk was 19:1. Whew! This was the opportunity of opportunities for me this week and I couldn't avoid entering.
So I set another pending order to buy. It triggered and a few hours later, I lost the trade. and my other trades were taken out as well.
I lost a total of $761.
This was only 0.76% loss in my account because of how I managed my trades as price went up in profit.
Had I kept my trades at the same risk(1%) and never moved my stop loss I could have lost $4000 this week.
The key to losing small is to build out your positions each time price makes a new high or low depending on the direction of the trade.
I built 4 positions and I have to say I would do it again. The potential for big rewards to risk got me, and I knew risk 1% on each trade would have meant I'd lose my funded account due to their drawdown rules. I cannot lose 3% in one day. Thats very manageable when you decrease your risk per trade.
Thats what had to be done.
If you don't think you can pass a challenge by decreasing you risk, your rewards aren't big enough.
If you learn anything from the trades I entered this week, the previous statement above is how can lose small while trading big.
Do I still believe NZDCAD can go up? Yes!
As long as price stays above the weekly higher low. I'll build out this scenario again.
Well, I really do pray you enjoyed this recap from my trading this week. I had no other trades on my other currency pair so it was a smooth trading week.
Be sure to like this article if you enjoyed it and found it intriguing. If you have any questions do ask them below.
Much love and blessing❤️
Shaquan
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.