Hello traders.
In this video, I delve into the fundamental principles of risk management tailored specifically for beginner traders entering the world of financial markets. I start by emphasizing the importance of understanding risk and its implications on trading outcomes. By setting clear goals and objectives, traders can align their risk management strategies...
Hey! Have you been spending day thinking about mistakes you made and things you didn't do?
Investors are knowingly comparing an exchanges to a casino. A gambler, losing, does not get up from the gambling table in the hope of winning back. He believes that the likelihood of winning increases with every lost bet. This phenomenon, called player mistake, is common...
Today’s topic is going to be on three types of stop losses . This is a very critical topic because stop losses come under the category of risk management.
Risk management is such a pivotal, important and critical topic. Why? Because professional traders and investors, the first thing that they always do and constantly think about before they get into a trade or...
This diagram helps visualize the effects of overtrading. Overtrading is placing more trades than should be placed, typically resulting in unnecessary losses. There is a fixed number of trade setups that will occur with any trading system during any time period and ideally each trade setup will be traded to produce maximal profits. In general, trades that are...
From central bank interest rate resolutions, non-farm payrolls, PMI indexes, inflation rates and other data reports, to geopolitical developments, and even natural disasters, these are major news that foreign exchange investors cannot ignore.Because the trend of the currency is always guided by these major economic events and news developments, it is accompanied...
There are only two ways to avoid losing capital: one is to have a small stop-loss space (reflected in the entry position), and the other is not to bet too much at once. For example, buying one lot with $10,000 can earn $1,000, and buying ten lots with $100,000 can earn $10,000. Although the probability is the same, the more you do, the more you earn, and the...
Just like this. Buy and sell limits above and below structure, as in the most recent highs/lows, with your TP in general being a return to structure. Brutally easy way to scalp and make money.
Few more examples...
This one shows where the stop loss might be. In general, I go with a 2/3 or 3/4 type rule, where I'll have a wide cluster of limits, then a...
‼ Survival rules in trading for newbies, if you respect those rules i can make a bet you wound't lose your account as the majority of traders are.
‼ The key word there is IF YOU RESPECT
✅ 1. Always trade with a stop loss
✅ 2. Have a pre-determined risk on each trade no more then 1%
✅ 3. Don't move your stop loss if the price is not going in your favour
✅ 4....
I would like to save people from getting burned so after 3.5 years of being in this space here is my advice:
1. It is easy to fall in love with an investment, especially when you believe it could make you rich.
Have belief, but don't be blinded by it. Consider that you could be wrong, late, or even too early.
2. Price can remain irrational longer than you...
I've seen lots of people getting liquidated on there longs on this BTC dump. This is why I think people never take into consideration risk management or don't know how it actually works. Maybe this can help a lot of people and help them clarify things. YES, the getting rich quick by leveraging is a probability, but if you ask me, I would consider it luck in the...
Here we look at 3 traders, all claiming to have a winning trade with 100 pips - however, with very different % gains on their accounts.
The main part of trading is profitability, you can not pay your bills with pips.
This explains what you need to focus on and be aware of!
Hope it helps,
Regards
Darren
Today we are comparing fixed equity percentage vs. fixed dollar amount to show how fixed % has an edge.
The chart above should mostly be self-explanatory.
The only real note here is that while the difference can be slight in the short term, and while static dollar amount does have an advantage in some instances, over the long term the data suggests the % based...
In this example I'm gonna show you how important is the entry point.
With same levels for stop-loss and take profit, one position will give you the opportunity to earn 3 times more than the other.
It doesn't mather if the position is a loss or a win, I just want to visualy show you the importance of the entry.
As I promised, I publish the post about risk management.
There are different types of risk management, but I will share one of the best in my opinion.
When you trade futures you have no control over what is happening in the market, the only thing you can counteract is your stop orders and it depends on the volume of your position.
Nothing more depends on you....
In this example I am showing you how important is RIsk Management in your trading system.
You could be the most talented trader in the world with a natural eye for investment opportunities, and still blow your account with one bad call without proper risk management. No matter how good you are, or how experienced you are, you’re still going to incur losses. Even...
