RIsk management with REAL trades not examples from past data
This is a sequel to our first post on risk management with trades we have actually executed and not using examples from past market data.
In this chart, we show how seven trades would be executed and with said trades increase our profits while minimizing our risk.
Closing our trades early protect us from any possible "flash crash" situations.
You can have a 30% trade success rate and still be profitable, or even have a 90% winrate and not be profitable.
We use real trade examples in this chart, with all of the details below. Even the losing ones. Make sure to browse them if you like by clicking them below.
POST 1
POST 2
POST 3
Take note that no matter what, we stick to our original trade plan and once our stops get hit we'll just take the loss then sit on the sides waiting for a new trading opportunity.
POST 4
POST 5
Closing our position at a high price when we see an indication of price reversal allows us to re-enter at a lower price and buy more with our initial position.
In these specific trades, we use resistance, support, candlestick patterns, and flag patterns as our confirmations.
Closing our position at a high price when we see an indication of price reversal allows us to re-enter at a lower price and buy more with our initial position.
With every trade that is made, stops and take profits are adjusted with each position.
Hover your mouse cursor over each area to see why a trade was executed!
There are trading opportunities every day. Don't be in such a rush to always have a position open. Trading emotionally is an easy way to get burnt.
These calculations are based on the starting principle of $1,000 USD
** We actually lost less on the trades that didn't go through, because we can adjust our stops to our entry so we'd lose nothing but thats a post for another day! **
FAQ
Now how can you use this strategy to your benefit?
When you open a position and have your stops in place, and when you're in profit keep a close eye out for reversals; when the price begins to reverse
close your position and continue to observe the price. When the price is done correcting and is lower, watch for a bullish reversal to continue its run.
When this is done re-enter with new stops.
I don't trade flags or some of the techniques used to predict a movement. What should I do?
Regardless of how you predict price movements, you can refer to this as a way to trade a market consistently in order to make more profit while minimizing your risk.
This is merely one example of how you as a trader can create a trading plan that you stick to consistently to make pips!
What if you closed it and it kept going up?
At times it's better safe than sorry. we do this
Why not just hold?
In some markets, a price can reach a certain point and not return to it for months or even years.
I definitely don't have the time to be watching charts constantly to be able to do this!
Anything worth doing is worth overdoing. Besides, Tradingview has very nice tools available for all of us to enjoy.
Simply setting an alert on a trend line will help!
We appreciate all feedback and suggestions if you have any feel free to comment below!
Wish you all the best. Have a great weekend everyone!
In this chart, we show how seven trades would be executed and with said trades increase our profits while minimizing our risk.
Closing our trades early protect us from any possible "flash crash" situations.
You can have a 30% trade success rate and still be profitable, or even have a 90% winrate and not be profitable.
We use real trade examples in this chart, with all of the details below. Even the losing ones. Make sure to browse them if you like by clicking them below.
POST 1
POST 2
POST 3
Take note that no matter what, we stick to our original trade plan and once our stops get hit we'll just take the loss then sit on the sides waiting for a new trading opportunity.
POST 4
POST 5
Closing our position at a high price when we see an indication of price reversal allows us to re-enter at a lower price and buy more with our initial position.
In these specific trades, we use resistance, support, candlestick patterns, and flag patterns as our confirmations.
Closing our position at a high price when we see an indication of price reversal allows us to re-enter at a lower price and buy more with our initial position.
With every trade that is made, stops and take profits are adjusted with each position.
Hover your mouse cursor over each area to see why a trade was executed!
There are trading opportunities every day. Don't be in such a rush to always have a position open. Trading emotionally is an easy way to get burnt.
These calculations are based on the starting principle of $1,000 USD
** We actually lost less on the trades that didn't go through, because we can adjust our stops to our entry so we'd lose nothing but thats a post for another day! **
FAQ
Now how can you use this strategy to your benefit?
When you open a position and have your stops in place, and when you're in profit keep a close eye out for reversals; when the price begins to reverse
close your position and continue to observe the price. When the price is done correcting and is lower, watch for a bullish reversal to continue its run.
When this is done re-enter with new stops.
I don't trade flags or some of the techniques used to predict a movement. What should I do?
Regardless of how you predict price movements, you can refer to this as a way to trade a market consistently in order to make more profit while minimizing your risk.
This is merely one example of how you as a trader can create a trading plan that you stick to consistently to make pips!
What if you closed it and it kept going up?
At times it's better safe than sorry. we do this
Why not just hold?
In some markets, a price can reach a certain point and not return to it for months or even years.
I definitely don't have the time to be watching charts constantly to be able to do this!
Anything worth doing is worth overdoing. Besides, Tradingview has very nice tools available for all of us to enjoy.
Simply setting an alert on a trend line will help!
We appreciate all feedback and suggestions if you have any feel free to comment below!
Wish you all the best. Have a great weekend everyone!
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