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AMZN long setup and detailed explanation - 1:3 Risk-RewardAmazon daily chart shows higher lows and higher highs. I have decided to go long with a proper risk management. I'm going to risk ~2% of my account here. AMZN LONG TRADE SETUP: Entry: 1739.43 (or at the opening of 18th Nov) SL: 1681.62 ($57.81 from entry) 1. TP: 1811.69 ($72.26 from entry - 1:1.25R) 2. TP: 1933.25 ($193.82 from entry - 1:3.35R) Risk: ~2% WARNING: Winning probability is lower than 45% (by the day of execution) DESCRIPTION: Say you have $10,000.00 in your account. How much would you risk per trade? My maximum risk appetite is 2%. In this case, I'm planning to risk $200.00. Let's calculate our position size: IMPORTANT: If you are new to trading, you want to risk lower. Preferably lower than 1%. Stop loss value = Entry - SL = 1739.43 - 1681.62 = 57.81 For short setups, you need to use absolute value. That's why we are getting absolute value of stop loss value. In this case, we will not need to use ABS, but let's make a habit of doing it. Stop loss value = ABS(Stop loss value) Position size = Risked amount / Stop loss value Position size = 200 / 57.81 = 3.46 We can not buy 3.46 lots (3 or 4). If I buy 4 lots, my risk is going to be $231 (2.31%) and if I buy 3 lots my risk is $173.46 (1.73%). I'm okay with 2.31% as it's lower than 3%. Note that as your account balance grows (or if you have a higher account balance), you want to risk lower to be consistently profitable. Losing $200 may not hurt you but if you have $100,000.00 you don't want to risk $2,000.00 per trade. Sooner or later, you are going to have consecutive losses. Margin = Lot x Entry price = 4 x $1739.43 = $6957.72 After entering this trade, i will still have $3042.28 in my account balance. I have used only 70% of my account balance for this trade. SUMMARIZE: Risk = $231 = 2.31% of entire balance Margin = $6957.72 = 69.57% of entire balance Available balance = $3042.28 1. Target profit = $289.04 1. Target probability is lower than 45% (by the day of execution) 2. Target profit = $775.28 2. Target probability is lower than 40% (by the day of execution) DISCLAIMER: I'm not a financial advisor. This article is shared for educational purposes only and should not considered financial or investment advice. Please do not follow my trades. Please remember to follow me on TradingView Trade safe, Atilla Yurtseven
NASDAQ:AMZNLong
by AtillaYurtseven
AMZN @ Daily @ Crucial Days until Christmas (year end 2016)AMZN lost -16,83% from it`s all-time by 847.21 (2016/10/16) until 710.10 (2016/11/14) Meanwhile the 2nd main upside trend broked also - with a GAP! And this GAP is also the 1st target to get back on a bullish track. I am slightly optimistic, but i want a visual evidence - want to see the shares even to trade between 789.49 & 815.43. Buying before is also an oppurtunity, `cause the downside trend, which even breaked the 2nd main upside trend was left behind while last wednesday trading day ... How ever, maybe i am too kosher !? But i want to see the share even trading out of the downside trend - even between the GAP, if it has to be ?! And from thi points of view, all in all, i am still pretty neutral - and would like go long much higher over next week, if even the broked downside trend holds ... Possible short-term target for bears are, in my opinion : 736.70 2nd leg of the w-wave 710.00 1st leg of the w-wave Possible short-term target for bulls are, in my opinion : 792.40 lower middle high of the w-wave & end of the extended downside trendline 843.09 start of the extended downside trendline For mid-term trendfollower traders the all-time high (847.21) could be a support line to get long - even like the alll-time high from last year by 696.44 (2016/12/29) for bears to get mid-term short once again ... Take care & analyzed it again - it`s always your decission ... (for a bigger picture zoom the chart) Best regards Aaron
NASDAQ:AMZN
by Devise2Day