An In-Depth Lesson on Risk-Reward [XRP/USD]
In this technical analysis on XRP/USD I will be mainly talking about the theme of risk and reward. Also we'll be touching a little bit on horizontal support and resistance.
Risk-Reward is a powerful concept in trading. It allows you to manage your portfolio smartly and allows you to not have to be right all the time. You cannot be right a 100% with your trades, and the beauty is you don't need to be.
I don't understand all the hate on Tradingview in the comments when somebody makes a call and it turns out it is all wrong. This happens, it can happen, and it's all fine.
If you manage your risk in a basic way, I'd say that a 51% win rate is enough to become rich over time. But the beauty of proper risk management is that even a win rate of 20% can allow you to gain money over time. As long as your rewards are significantly higher than your losses.
In this trade I'm going to display that. We will be using the age-old concept of buying low and selling high.
Using the horizontal support zones you can get a feeling of what "low" and what "high" means on a chart. Prices near the horizontal support are "low" and prices near the horizontal resistance are "high".
It's really that simple.
The price has been around the horizontal support zone already for quite some time, and the zone got confirmed a lot. This is a fantastic buy opportunity. There is a high chance that the price will go up. We have a clear exit strategy (stop loss directly below the horizontal support, take profit directly below the horizontal resistance), and there is more to be gained than to be lost.
Good luck!
Follow me for consistent high quality updates, with clear explanations and charts.
Please like this post to support me.
- Trading Guru
--------------------------------------------------------------
Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
Risk-Reward is a powerful concept in trading. It allows you to manage your portfolio smartly and allows you to not have to be right all the time. You cannot be right a 100% with your trades, and the beauty is you don't need to be.
I don't understand all the hate on Tradingview in the comments when somebody makes a call and it turns out it is all wrong. This happens, it can happen, and it's all fine.
If you manage your risk in a basic way, I'd say that a 51% win rate is enough to become rich over time. But the beauty of proper risk management is that even a win rate of 20% can allow you to gain money over time. As long as your rewards are significantly higher than your losses.
In this trade I'm going to display that. We will be using the age-old concept of buying low and selling high.
Using the horizontal support zones you can get a feeling of what "low" and what "high" means on a chart. Prices near the horizontal support are "low" and prices near the horizontal resistance are "high".
It's really that simple.
The price has been around the horizontal support zone already for quite some time, and the zone got confirmed a lot. This is a fantastic buy opportunity. There is a high chance that the price will go up. We have a clear exit strategy (stop loss directly below the horizontal support, take profit directly below the horizontal resistance), and there is more to be gained than to be lost.
Good luck!
Follow me for consistent high quality updates, with clear explanations and charts.
Please like this post to support me.
- Trading Guru
--------------------------------------------------------------
Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
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(bắt đầu từ tháng 2 - 2023)
t.me/Vietnam100eyes
(bắt đầu từ tháng 2 - 2023)
Disclaimer
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