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Riskmanagementstrategy

The Graph (GRT)🔷 Introduction: What is GRT? The Graph (GRT) is a decentralized protocol designed for indexing and querying blockchain data. It enables developers to access blockchain information quickly and efficiently without the need to run dedicated servers. GRT serves as the native token of this ecosystem, used for transaction fees and securing the network. 🔹 Technical Analysis of GRT/USDT – Weekly Timeframe 📌 Overall Market Condition After an extended corrective phase, GRT remains within its weekly ascending channel. The price is currently hovering around a key support zone (0.1165 - 0.1334, marked in blue), which has historically triggered significant reactions. 🔍 Potential Scenarios 📈 Bullish Scenario: ✅ If the blue support holds and the price re-enters the ascending channel, further upside potential is likely. ✅ Key resistance levels: Orange Zone (0.3202 - 0.3577): Possible initial reaction level. Red Zone (0.6423 - 0.7232): Major resistance before reaching the final target. ✅ Key Consideration: If weakness in momentum and declining volume appear near these resistance levels, gradual profit-taking and a cautious approach could be wise. Otherwise, continued bullish momentum could push the price toward the channel’s upper boundary, targeting 1.0667 - 1.2607 (light blue TP zone). 📉 Bearish Scenario: ❌ If the blue support fails, the price could drop towards the next major support zone at 0.0691 - 0.0816 (gray support). ❌ Losing this level would invalidate the bullish structure and increase the likelihood of deeper declines. 🎯 Entry Strategy & Risk Management ⚡ Gradual entry within the blue support zone with a stop-loss below the gray zone is recommended. ⚡ Suggested risk: 0.25% to 0.5% of spot capital (to prevent heavy losses). ⚡ Volume increase in this area could signal a potential trend reversal. 🔹 Conclusion The current support level is critical for GRT. If it holds, the bullish scenario remains intact, allowing for potential growth toward the upper boundary of the ascending channel. However, losing this level could invalidate the bullish structure and lead to a deeper correction. 🔸 Additionally, when approaching key resistance levels (0.3202 - 0.3577 and 0.6423 - 0.7232), monitoring volume and price behavior is essential. Signs of weakness in these zones may indicate an opportunity for gradual profit-taking and a more cautious approach.
Long
by alizeynali69
3
TRADING LEVERAGE | How to Manage RISK vs REWARDFor today's post, we're diving into the concept " Risk-Reward Ratio " We'll take a look at practical examples and including other relevant scenarios of managing your risk. What is considered a good risk to reward ratio and where can you see it ? This applies to all markets, and during these volatile times it is an excellent idea to take a good look at your strategy and refine your risk management. You've all noticed the really helpful tool " long setup " or " short setup " on the left-hand column. This clearly identifies the area of profit (in green), the area for a stop-loss (in red) and your entry (the borderline). It also shows the percentage of your increases or decreases at the top and bottom. It looks like this : 💭Something to remember; It is entirely up to you where you decided to take profit and where you decide to put your stop loss. The IDEAL anticipated targets are given, but the price may not necessarily reach these points. You have that entire zone to choose from and you can even have two or three take profits points in a position. Now, what is the Risk Reward Ratio expressed in the center as a number.number ? The risk to reward ration is exactly as the word says : The amount you risk for the amount you could potentially gain. NOTE that your risk is indefinite, but your gains are not guaranteed. The risk/reward ratio measures the difference between the entry point to a stop-loss and a sell or take-profit point. Comparing these two provides the ratio of profit to loss, or reward to risk. For example, if you're a gambler and you've played roulette, you know that the only way to win 10 chips is to risk 5 chips. Your risk here is expressed as 5:10 or 5.10 .You can spread these 5 chips out any way you like, but the goal of the risk is for a reward that is bigger than your initial investment. However, you could also lose your 5 and this will mean that you need to risk double as much in your next play to make up for your loss. Trading is no different, (except there is method to the madness other than sheer luck...) Most market strategists and speculators agree that the ideal risk/reward ratio for their investments should not be less than 1:3, or three units of expected return for every one unit of additional risk. Take a look at this example: Here, you're risking the same amount that you could potentially gain. The Risk Reward ratio is 1, assuming you follow the exact prices for entry, TP and SL. Can you see why this is not an ideal setup? If your risk/reward ratio is 1, it means you might as well not participate in the trade since your reward is the same as your risk. This is not an ideal trade setup. An ideal trade setup is a scenario where you can AT LEAST win 3x as much as what you are risking. For example: Note that here, my ratio is now the ideal 2.59 (rounded off to 2.6 and then simplified it becomes 1:3). If you're wondering how I got to 1:3, I just divided 2.6 by 2, giving me 1 and 3. Another way to express this visually: In the first chart example I have a really large increase for the long position and you can't easily simplify 7.21 so; here's a visual to break down what that looks like: If you are setting up your own trade, you can decide at what point you feel comfortable to set your stop loss. For example, you may feel that if the price drops by more than 10%, that's where you'll exit and try another trade. Or, you could decide that you'll take the odds and set your stop loss so that it only triggers if the price drops by 15%. The latter will naturally mean you are trading at higher risk because your risk of losing is much more. Seasoned analysts agree that you shouldn't have a value smaller than 5% for your stop loss, because this type of price action occurs often during a day. For crypto, I would say 10% because we all know that crypto markets are much more volatile than stock markets and even more so than commodity markets like Gold and Silver, which are the most stable. Remember that your Risk/Reward ratio forms an important part of your trading strategy, which is only one of the steps in your risk management program. Dollar cost averaging is another helpfull way to further manage your risk. There are many more things to consider when thinking about risk management, but we'll dive into those in another post.
by CryptoCheck-
2
COFORGE Options Trading Strategy: Breakout and Momentum-BasedIn this post, we’ll explore a couple of options strategies for COFORGE using the data for strike price 9000 . By closely monitoring the price action and key option data, we can make informed decisions that align with market trends. Here’s how we can approach trading this stock’s options effectively: Key Option Data Breakdown Call Short Covering: Indicates that the market sentiment is bullish as traders are closing their call positions, signaling a potential upward movement. Put Writing: A strong sign of bullishness as traders are actively writing puts, expecting the price to stay above the 9000 strike. Call and Put LTP (Last Traded Price): Calls LTP: 278.8 (indicating that calls are gaining traction). Puts LTP: 100.7 (a lower LTP for puts suggests lower demand). Open Interest (OI) and Change in OI: Calls OI Change: -47,850 (indicating a reduction in call positions due to short covering). Puts OI Change: +123,975 (signifying an increase in put writing, which reinforces the bullish sentiment). Strategy 1: Buying the Call or Put Based on the First 5-Minute Candle This strategy involves observing the price movement in the initial 5 minutes after the market opens and deciding whether to buy a call or put, depending on the price action and option data. When to Buy the Call or Put: If the first 5-minute candle shows a bullish move, consider buying the call option as the market sentiment appears to be in favor of upward movement. If the first 5-minute candle shows a bearish move, consider buying the put option. However, given the overall data showing strong put writing, this could be less likely. Why It Works: The first 5 minutes are crucial for gauging market sentiment, and with the data indicating strong bullishness (due to call short covering and put writing), a call option is likely to perform well. Considerations: This strategy requires watching for clear momentum during the first 5 minutes. If the market remains indecisive, it may be better to stay on the sidelines to avoid wasting premium. Strategy 2: Breakout Strategy – Buy Calls or Puts on the Break of Highs This strategy involves waiting for a breakout of the call or put’s high price. The breakout indicates a shift in momentum, and we’ll enter the trade based on whichever direction triggers first. When to Buy the Call: Watch for the call’s high price (389.85). If the call option breaks this level, it signals that the upward momentum is gaining strength. Buy the call to capitalize on the breakout. When to Buy the Put: If the call option doesn’t break its high and the price starts to show weakness, consider buying the put once it breaks its high (360.6). However, the data suggests that the market bias is bullish, so a call breakout is more likely. Why It Works: Breakouts are powerful signals of market momentum. Since the data shows heavy put writing, the call option is more likely to break its high first. This creates an opportunity to buy calls in a bullish trend. Considerations: Always monitor the volume and the price action for confirmation of the breakout. If both calls and puts test their highs without clear direction, consider waiting for a clearer signal. Conclusion: Given the strong bullish sentiment reflected in the options data—call short covering and put writing—the most reliable strategy is Strategy 2. Watch for a call breakout above 389.85 or a put breakout above 360.6 (if the call fails to break its high). The bullish bias suggests that the call option is more likely to outperform, but a breakout in either direction can trigger the strategy. Pro-Tip: Set a stop loss just below the breakout level to manage risk effectively. The market sentiment is heavily tilted towards bullishness, so a call option breakout is the most probable outcome.
NSE:COFORGEEducation
by ruelfernandes
Risk Management in Trading: Keeping It Simple and Stress-FreeIf you're new to trading, you’ve probably heard the golden rule: “Don’t risk more than 1-2% of your account on a single trade.” Sounds easy, right? But let’s be real—trading is way more than just crunching numbers. Let’s Break It Down 1. Don’t Bet the Grocery Money! 🍎 First things first: Never trade with money you can’t afford to lose. Imagine this—your rent is due next week, but instead of saving, you decide to trade all that cash because you’re feeling lucky. Spoiler alert: That’s not luck—it’s a one-way ticket to Stress City. When you trade money you can’t afford to lose, every market wobble feels like the end of the world. Keep your bills paid and your pantry stocked before you even think about trading. Example: Think of trading like buying lottery tickets. You wouldn’t spend your entire paycheck hoping to hit the jackpot, right? (Well, I hope not!) Treat your trading account the same way. 2. Discipline > Math 🧠 Sure, knowing the 1% rule is cool, but what really matters is sticking to it. Here’s the thing: Losing streaks happen to everyone—even pros. The question is, how many losses in a row can you handle without losing your cool and going all-in on a “revenge trade”? Example: Think of it like a diet. You promise to eat just one cookie, but after a bad day, you eat the whole pack. The same thing happens in trading if you’re not disciplined. One bad trade can lead to a whole bunch of bad decisions. 3. Trading Won’t Pay Your Bills (At Least Not Yet) 💸 Many people dream of quitting their job to trade full-time. Sounds great, but here’s the catch: You need a lot of money to make trading your main income source. The trader in the video suggests keeping a day job while learning the ropes. That way, you’re not relying on trading profits to survive. Example: Imagine opening a lemonade stand, but you only have two lemons. You can’t expect to make enough lemonade to pay rent! Work on growing your “lemon supply” (your trading skills and capital) before you go all-in. 4. Watch Your Trade Count 🕒 Making too many trades in one day is like eating too much junk food—it might feel good at first, but it’ll cost you later. Even small risks add up quickly when you’re overtrading. The pros call this “death by a thousand cuts.” Example: If you take 10 trades in a day, risking 1% each, you’re suddenly risking 10%. That’s like ordering 10 desserts because “they’re just tiny.” Spoiler: It adds up fast. 5. Learn from Poker Players 🎲 Ever watched poker pros on TV? They don’t bet everything on one hand—they manage their “bankroll” carefully, so they don’t lose it all. The same idea works in trading. Lower your position size when things aren’t going well so you can stay in the game. Pro Tip: Want a fun exercise? Use poker chips or fake money to practice “betting” on trades. Seeing your stack shrink will remind you why managing losses is so important. Simple but Powerful Lessons Build a Safety Net: Before you think about trading full-time, save up enough money to cover your expenses for a few months. This way, you can trade without freaking out over every dollar. Learn a Backup Skill: Trading takes time to master. While you’re learning, keep a steady job to support yourself financially. Focus on the Process, Not the Profits: Winning traders don’t obsess over the money—they focus on following their strategy and improving their skills. A Few Quotes to Keep in Mind “Risk management isn’t about numbers; it’s about discipline.” “If losing money makes you panic, you’re trading too much.” “Turn off the profit and loss display—focus on making good trades.” Final Thought: Keep It Chill Trading is like a marathon, not a sprint. Take your time, stick to your plan, and never risk more than you’re comfortable losing. If you approach it with patience and discipline, you’ll not only survive but thrive in the markets. Now, go grab a coffee (or lemonade) and plan your next trade with confidence! ☕🍋 Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
Education
by Crypto4light
1
Hidden Risk: How to Uncover and Control Before You Click 'Buy'As seasoned traders, we understand that risk management isn't just a beginner's concept; it's the bedrock of sustainable profitability. We've moved beyond the rudimentary rules and are fluent in position sizing and stop-loss orders. But in the dynamic landscape of TradingView, where opportunities arise and vanish in the blink of an eye, even intermediate traders can fall prey to impulsive decisions that erode our hard-earned capital. The solution? Systematizing our risk assessment with a pre-trade risk profile. It isn't about reinventing the wheel but refining our approach to ensure that every trade aligns with our overall strategy and risk tolerance. It gives us an edge by keeping us disciplined. The Pitfalls of Complacency It's easy to become complacent when we've got a few winning trades under our belt. We start to feel invincible precisely when we're most vulnerable. We might skip steps, loosen our stop-losses, or increase our position sizes beyond our predefined limits. We are often driven by emotions rather than logic, and it's a slippery slope. Remember, even a well-defined risk management plan is useless if it's not consistently applied. Each trade carries unique risks influenced by factors beyond our standard calculations. Creating a Pre-Trade Risk Profile: A Refresher Before hitting that buy or sell button, click on TradingView to create a simple risk profile for the specific trade. Ask yourself a series of critical questions: 1. The Asset's Volatility: What's the current Average True Range (ATR)? How does it compare to the asset's historical ATR? Higher volatility demands wider stop-losses and potentially smaller position sizes. Are there any upcoming news events or economic releases that could impact volatility? Factor these in, as they can significantly alter the risk landscape. Be aware of, for instance, earning reports. 2. The Trade Setup: What's your entry point, and why? Is it based on an explicit technical signal, or are you chasing a move? Where's your stop-loss, and what is your rationale behind it? Is it placed below a key support level or based on a multiple of the ATR? What's your target price, and is it realistically achievable given the current market conditions? Avoid setting overly ambitious targets that expose you to unnecessary risk. 3. The Correlation Factor: How does this asset correlate with other positions in your portfolio? Are you inadvertently increasing your exposure to a specific sector or market trend? Could a single event trigger losses across multiple positions? Diversification is key, but it requires careful consideration of correlations. 4. The Time Factor: What's your intended holding period for this trade? The longer the timeframe, the greater the potential for unforeseen events to impact your position. Does your stop-loss need to be adjusted based on the timeframe? A wider stop-loss than a day trade might be necessary for a swing trade. 5. The "Gut Check": Are you comfortable with the potential loss on this trade? If the answer is no, it's a red flag. Either reduce your position size or reconsider the trade altogether. Are you trading based on a well-defined plan, or are emotions driving your decision? Be honest with yourself. From Profile to Action: Implementing Your Assessment Once you've answered these questions, you have a clearer picture of the trade's risk profile. Use this information to: Fine-tune your position size: Ensure it aligns with your pre-determined risk per trade (e.g., 1-2% of your capital). Set your stop-loss: Place it strategically based on the asset's volatility and your chosen support/resistance levels. Determine your risk/reward ratio: Is the potential profit worth your risk? Aim for at least a 1:2 or 1:3 risk/reward ratio. Bonus Tip: Develop Your Risk Score System Consider creating a simple risk score system to streamline your risk assessment further. Assign points to different risk factors based on their potential impact. For example, here is the Trade Impact Estimator (T.I.E): Volatility: Low Volatility (Below Average ATR): +1 point Average Volatility (Within Average ATR): 0 points High Volatility (Above Average ATR): -1 point News Events: Major News Event Scheduled: -2 points Minor News Event: -1 point No News Event: +1 Point Correlation: High Correlation with Existing Positions: -1 point Low Correlation: +1 point Timeframe: Day Trade: +1 point Swing Trade: 0 points Long-Term Trade: -1 point Trade setup: Good Risk/reward ratio: +1 point Neutral Risk/Reward ratio: 0 points Bad Risk/Reward ratio: -2 points Set Thresholds: Total Score of +3 or higher: Potentially a lower-risk trade, consider proceeding as planned. Total Score between 0 and +2: Proceed cautiously; consider reducing position size. Total Score of -1 or lower: Re-evaluate the trade, widen your stop-loss, significantly reduce position size, or avoid the trade altogether. Disclaimer: This is a simplified example. You can customize your risk score system to include additional factors and adjust the point values based on your own trading style and risk tolerance. You can also assign more points to factors that have historically impacted your trading results. It's crucial to backtest and refine your system over time. The Takeaway Mastering risk management is a continuous journey. By incorporating a pre-trade risk profile into our routine, we elevate our trading from reactive to proactive. We transform ourselves from gamblers to calculated risk-takers. On TradingView, where information flows ceaselessly, this disciplined approach is not just an advantage; it's a necessity. So, refine your process, stay vigilant, and make your trades profitable.
COINBASE:ETHUSDEducation
by hydtie
Renzo (REZ)REZ Analysis 🔹 Overall Status: After an initial drop, REZ coin has been fluctuating within a range box (yellow zone) between 0.03070 - 0.05034 and has recently broken above the upper limit of the box, moving upwards. Currently, the price is pulling back to this broken range zone. 🔹 Key Levels: 1️⃣ Support Levels: Bottom of the range box: 0.033 - 0.030 0.618 Fibonacci retracement: Current potential support area 2️⃣ Resistance Levels: Daily resistance zone (red): 0.065 Bullish Targets: First Target: 0.17279 - 0.21604 (1 Fibonacci level) Second Target: 0.40065 - 0.50092 (1.618 Fibonacci level) Third Target: 2.09323 - 2.61712 (2.618 Fibonacci level) 🔹 RSI and Entry Signals: RSI is currently in an ascending channel on the daily timeframe and is at the bottom of the channel, suggesting potential support and continuation of the uptrend. A move of RSI into the overbought zone, along with a breakout of key resistances, could signal a stronger entry point. 🔹 Scenarios: ✅ Bullish Scenario: If the price stabilizes above the 0.065 daily resistance (red) with increasing trading volume, a move towards Fibonacci targets becomes more probable. ⚠️ Bearish Scenario: If the price fails to stabilize above resistance, a correction towards the range box bottom (0.033 - 0.030) could occur. 🔹 Trading Volume: Monitoring the increase in volume when breaking the daily resistance is crucial, as it could signal a sharp move. 🔹 Conclusion: Safe Entry: After price stabilizes above the red resistance zone with increased volume. Risky Entry Zones: Near the range box support levels and 0.618 Fibonacci retracement. 📊 Confirmations: Breakout of daily resistance with high volume Support from RSI at the bottom of the ascending channel Reaction to Fibonacci levels 🔑 Recommendation: Always prioritize capital management. Set a stop-loss at the breakdown of the 0.030 support zone.
Long
by alizeynali69
Compound (COMP) 🔢 COMP Analysis 🔹 Overall Status: The COMP coin, after following an ascending channel, successfully broke above the channel’s ceiling. At the PRZ zone (which includes the ascending channel ceiling and weekly resistance), selling pressure led to a price correction, pushing the price down to the 0.382 Fibonacci level. ✅ Key Point: Stabilizing above the PRZ zone can accelerate price growth toward Fibonacci targets. Trading volume in this area is crucial as it can provide stronger signals about the buyers' or sellers' dominance. 🔹 Support and Resistance Analysis: 1️⃣ Support Levels: First Support: 0.382 Fibonacci level around $79-$81. Second Support: 0.5 Fibonacci level around $68-$71. Third Support: 0.618 Fibonacci level near $60-$62. 2️⃣ Resistance Levels: PRZ Zone: Weekly resistance and broken ascending channel ceiling (around $92-$103). Bullish Targets: First Target: 1.618 Fibonacci level (already achieved). Second Target: 2.618 Fibonacci level near $300-$330. Third Target: 3.272 Fibonacci level around $500-$550. Final Target: 3.618 Fibonacci level near $720-$750. 🔹 Price Movement Prediction: 1️⃣ Bullish Scenario (if price stabilizes above PRZ): If the price stabilizes above $140 (PRZ zone), it may head toward the 2.618, 3.272, and 3.618 Fibonacci levels. Increased trading volume above PRZ will confirm buyers' dominance. 2️⃣ Bearish Scenario (if the correction continues): If the 0.382 Fibonacci level is broken, the price correction could extend to the 0.5 and 0.618 Fibonacci levels. These levels could offer attractive opportunities for re-entry via laddered buying. 🔹 RSI and Entry Signals: The RSI indicator on the weekly timeframe is at 72.71 (overbought zone), indicating possible selling pressure. Positive Note: A bullish divergence between the price and RSI suggests the uptrend may resume after a correction. The ascending RSI trendline can act as support. ✅ Conclusion and Recommendations: 1️⃣ Key Levels: Supports: $79-$81 (0.382), $68-$71 (0.5), and $60-$62 (0.618 Fibonacci). Resistances: $130-$140 (PRZ) and higher targets at $300-$330, $500-$550, and $720-$750. 2️⃣ Entry Strategies: Laddered buying near 0.5 and 0.618 Fibonacci support levels if the correction continues. Entry after price stabilizes above the PRZ zone ($130) with rising trading volume. 3️⃣ Risk Management: Pay close attention to trading volume and price action near critical levels. Monitor the RSI indicator to assess trend strength and identify potential corrections or continued growth. 💡 Final Recommendation: In the current conditions, wait for technical confirmations (such as stabilization above resistance or corrections to lower levels) before entering. Prioritize capital management to minimize risks.
by alizeynali69
The bears pair of the week. Shorting today into Dec. EURGBP You could definitely do well shorting the EURUSD pair today, but even more lucrative is probably to go short on the EURGBP currency pair. Why do I make this call? Because it is imho more bearish than EURUSD at present, because unlike the latter which will probably have a bounce intraday at least during the start of the Asian session, bears will move in at some point on EURUSDvat about the 1hr timeframe from memory. But every chart I viewed of EURGBP 1minute to 3monthly has the tipping-over effect and right from the get-go I think this will sell-off. Of the other EUR pairs I have checked, i'm only about 1/3 through, EURCAD & EURAUD are also very bearish on the charts and the EURUSD I expect to gain the bearish sell a bit later during Asia Monday. I will probably take a small lot size Short and ride this one into December using a mental-soft-stop which puts me in control to exit the trade when I want. For example, if an intervening bullish news story is released to the market to pump up the falling EUR. I would like to report back when profits or losses are taken. For a review of trade.
Short
by Easy_Explosive_Trading
I'm pretty sure it's Long-Gold. It's a battlefield. Im beaten'em Hi everyone, it's been a tough day in Gold Asia trading. I supported the long theory that they gave us at the start of Asia trading today. Long story short, there appeared to be a bullish gap up and price was moving up I would not say impulsively but smoothly. But price stalled twice within an hour at the top of the double top I spoke about on 2hr timeframe. I made 2 legititimate short entrys on price weakness as price reversed downwards, I thought that was fair enough, I had no intention to short, that is simply what got served to us. The market-maker-muppets at gold went after my stops twice. They finally got my first trade, because price slowly reversed after price stalled twice, I went to a 1m timeframe and as discreetly as I could got a good risk/reward on the short. The muppets did not like that. Anyways, after my second short I refused to call it in or buy-back, I was very heavy shorted because I took a lot of profits in Crypto at the weekend. So then after that M-top/flag formation where price went sidewards (because I jammed them with my short trade), they decided to take the market for a run beyond the neckline. Fair enough. I even bought back my short trades at a slight loss. But I will play fair. Instead of price moving back upwards, the market runs a bit lower and then Bam I went massive short again. But my long positions are bigger because thats ultimately where the market will go. Enough of my rant. The daily chart looks very bullish. Price also at the bottom of a rising wedge on daily. I don't watch television but Im hearing the Russian war takes a new twist, supportive of Gold I would say. I will keep you posted. Ahm if the market goes sidewards all session, then you know why,
EIGHTCAP:XAGUSDLong
by Easy_Explosive_Trading
1
Cardano is popping, up 10% again today, will take 0.50 soon When I first bought this a couple of weeks ago, it was in a massive contraction & squeezing stage, despite recent buyer activity, there was even more selling prior to this demand for many months earlier this year. So I waited for it to come into my area of confluence because I was desperate to turn some red on my screen into green. I knew there was fairly recent (month or 2) buying demand so I knew this would return once price became too good to not take action to buy. I loaded up on it around 0.33 cents and I told readers of my initial post on ADAUSD to buy in at these low levels as it would move up fast and a break above 0.455 cents would be big as well. This Cardana is my best performing Crypto and it is a more recent Buy compared to say DOGEUSD & TRON (that gives nothing aways at this stage.) Given where things are at now and Bitcoins firm position, 0.50 for ADAUSD is good buying I think. Just got alerted of a newswire on this theme. www.tradingview.com
EIGHTCAP:ADAUSDLong
by Easy_Explosive_Trading
Learn How to Avoid Margin Call in Trading Hey traders, In this educational article, I will share with you 5 simple tips that will help you not to blow your trading and avoid margin call. 1️⃣ Always Use Stop Loss. Let's start with the obvious - with the stop loss order. Never ever trade without that. Before you open your trade, plan in advance its placement, stick to it once the position becomes active and never remove it. 2️⃣ Manage Your Position Sizes I know that most of you are trading with a fixed lot. That is a bad habit. You should measure the lot size for each trading position you take. You should define in advance the risk percentage you are willing to lose per trade and calculate the lot sizes for your trades accordingly, then. 3️⃣ Avoid Taking Too Many Positions Remember that in trading, quantity does not imply quality. The more trades you take, the harder it is to manage each position individually. I would suggest opening maximum 5 trades per day and holding no more than 8 trades simultaneously. 4️⃣ Avoid Trading Too Many Markets The wider is your watch list, the harder it is to focus on each individual element inside. Do not try to control as many markets as possible, instead, narrow your watch list and concentrate your attention on your favorite trading instruments. 5️⃣ Remember About Volatility The more volatile is the market that you trade, the harder it is to trade it and the bigger stop losses you need to keep your positions safe. Remember, that the volatility is the double-edged sword. It can bring substantial profits, but it can also blow your entire account in a blink of an eye. Following these 5 simple rules, you will make your trading much safer. Study them and add them in your trading plan. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
1
EUR GBP SETS UP FOR A BUY-LONG:The best trades are the ones that allow you to buy low in price, sometimes even at their last leg of a short. This is what sort of happened with EUR GBP earlier today when I saw its price get so low and tempting to buy an order, but there was also a reversal setup taking place which also had momentum in the price action, something you don't often see when bargain hunting on trading. I knew that this trade would ascend and run nicely for EUR GBP because the currency combo had 2 macd's working its return to momentum, these would give an early indication of how long the currency pair might need macd to support its future growth, but it was also a chance to catch up with miserable clients and koolj. So take profit for educational purposes ate 84.30 Stop Loss: 83. Buy up until 83.50 I should go to target quickly with very little data economic today. Thanks for taking the time to read.
Long
by Easy_Explosive_Trading
15M Gold pullback & "Squeeze" and Buy Breakout RSI > 60-65For education purposes guys. One way to trade Gold is on the 15M, 1HR or 4HR and await for a pullback and squeeze-consolidation. But most of the magic is done with 1 indicator only, the RSI stock-standard with 14. You want to see Gold breakout initially for longs past 70 and get really overbought. The reverse for shorts under 30 on the RSI. So we have not bought anything yet. We set an alert or monitor for the RSI on gold to come back to the 50 level or a bit less is okay. But we basically want the RSI to return to about 50 because this is when the squeeze is happening as Gold has a break from momentum until it fires up again. It will fire up again if you have the price action supporting another run and breakout of Gold. Now, we watch as the RSI momentum starts to build up again and we can buy the Gold price once the RSI hits 70 which is very good breakout momentum. I like to buy at 60 on the RSI but either is okay. You sell when the momentum begins to cool again at an RSI level that still exceeds the 70 level for longs. These are usually in and out trades but if the market really opens up for you then stay long gold and good enjoy watching the strategy. Below is the less noisy chart and it's honestly all you need, 1 indicator RSI with setting 14.
EIGHTCAP:XAUUSD
by Easy_Explosive_Trading
Mastering the "IF-THEN" Mindset: The Key to Stress-Free TradingIn this video, I’ll share how using IF-THEN statements helps me stay balanced in my trading. It’s simple: IF the price does this, THEN I’ll do that. Having a plan like this keeps me from getting caught up in emotions and helps me react to what’s actually happening in the market – not what I wish would happen. This mindset keeps things smooth, makes trade management easier, and keeps me consistent. It’s all about staying ready for whatever the market throws your way. If this vibe clicks with you, drop a comment, like, or follow – I’ve got plenty more insights to share! Mindbloome Trading Trade What You See
Education
by Mindbloome-Trading
Why Smart Traders Trust the Risk-to-Reward Ratio!Risk Reward Ratio In the world of trading, profit potential alone doesn't define success. More important than chasing profits is understanding and managing risk. This is where the Risk-to-Reward Ratio becomes a vital component of every trading strategy. Traders who ignore this concept often find themselves on the losing end, even when they win more trades than they lose. On the other hand, those who master the art of managing their risk relative to their potential reward tend to find consistent success over the long run. In this idea, we'll explore why the Risk-to-Reward Ratio is crucial, how to calculate it, and why traders should prioritize it for sustainable profitability. What is the Risk-to-Reward Ratio? The Risk-to-Reward Ratio compares the amount of risk a trader takes on in a trade (the potential loss) to the potential reward (the possible gain). Simply put, it tells you how much you're risking for every dollar you're aiming to make. For example, if you're willing to risk $100 on a trade but expect a potential reward of $300, your R ratio is 1:3. This means for every $1 you're risking, you aim to make $3. How to Calculate the Risk-to-Reward Ratio: Determine the Risk: This is the distance between your entry price and your stop-loss level. Determine the Reward: This is the distance between your entry price and your take-profit level. The formula is: Risk to Reward Ratio = Potential Profit/Potential Loss Why is the Risk-to-Reward Ratio So Important? Maintains Profitability Despite Losses: No trader can win 100% of the time. A favorable R allows profitability even with a low win rate. For instance, with an R of 1:3, winning just 25% of your trades can break you even. Limits Emotional Trading: Emotional decisions often lead to poor trading choices. A clear R helps enforce discipline, making it easier to adhere to your trading plan and reducing impulsive actions based on fear or market fluctuations. Improves Trade Selection: Not every trading opportunity is worth taking. A favorable R encourages selectivity, focusing on trades that offer high potential returns relative to risk. This helps eliminate low-quality trades, leading to a more profitable strategy. Balances Risk and Reward: Finding the right balance between risk and reward. A favorable R ensures you’re not risking too much for too little gain, allowing winning trades to cover losses over time. Improves Long-Term Consistency: A solid R creates a sustainable trading system. Maintaining discipline and risking only a small percentage of your capital helps protect your account during losing streaks. Combined with a strong strategy, this fosters a reliable edge in the market. Risk-to-Reward Table and Breakeven Win Rates To understand how different R ratios affect your breakeven point, let's look at the table below. It shows the win rate required to break even, based on different Risk-to-Reward ratios. ​https://www.tradingview.com/x/5GZcSrlz/ -if your R ratio is 1:1, you need to win 50% of your trades just to break even. -With a R ratio of 1:3, you only need to win 25% of your trades to break even. -A higher risk-to-reward ratio reduces the pressure to win more trades because when you do win, your reward is significantly larger than the risk you took. This table highlights the power of having a higher R ratio. Even if your win rate is low, you can still remain profitable as long as your winners significantly outweigh your losers. Examples of Risk-to-Reward in Real Trading Let’s say you're considering a long trade on Bitcoin. Your analysis shows the entry price should be $64,000, with a stop-loss at $62,500 (a $1,500 risk). Your target price is $68,000, giving you a potential profit of $4,000. Risk: $1,500 Reward: $4,000 Risk Reward Ration = 1500/4000 = 2.67 In this case, your R ratio is 1:2.67, meaning that for every $1 you risk, you aim to make $2.67. If you only won 30% of your trades, you could still be profitable over the long term because of the higher reward relative to your risk. Mastering the Risk-to-Reward Ratio is essential for traders seeking long-term success. By understanding and implementing this concept, traders can effectively manage risk, improve trade selection, and maintain profitability, ensuring a more sustainable approach to trading. Regards Hexa
COINBASE:BTCUSDEducation
by HexaTrades
2
The 1% Rule: A Key to Long-Term Trading SuccessUnderstanding the 1% Risk Management Strategy in Trading Effective risk management is the backbone of successful trading, helping traders preserve capital and avoid emotional decision-making. The 1% risk management strategy is one of the most widely used approaches, aimed at limiting the potential loss on any single trade to 1% of your total trading capital. Let’s break down how this strategy works and why it’s essential for both novice and experienced traders. What Is the 1% Risk Rule? The 1% risk rule ensures that a trader never risks more than 1% of their account balance on a single trade. For example, if you have $20,000 in your account, you would limit your risk to $200 on any given trade. The idea behind this rule is to safeguard your account from catastrophic losses that could occur from consecutive losing trades . How to Apply the 1% Risk Rule To apply the 1% rule effectively, you need to combine position sizing with stop-loss orders. Here’s how you can implement this strategy: 1. Determine Your Account Risk: Calculate 1% of your trading capital. For example, with a $10,000 account, 1% equals $100. This is the maximum amount you’re willing to lose on a single trade. 2. Set a Stop-Loss: A stop-loss helps cap your losses at the 1% threshold. If you’re buying shares of a stock at $50 and decide on a stop-loss 1 point below, your “cents at risk” is $1 per share. If you’re willing to lose $100, you can buy 100 shares ($100 / $1 per share risk). 3. Position Sizing: The size of your trade depends on the risk per share. By determining your stop-loss level, you calculate how many shares you can buy to keep your total loss within the 1% limit. This process prevents you from taking excessively large positions that could lead to significant losses . Why the 1% Rule Is Effective The 1% rule is effective because it keeps your potential losses small relative to your total capital. Even during periods of losing streaks, this strategy prevents large drawdowns that could lead to emotional trading or complete account wipeout. For instance, if you experience a string of ten losing trades in a row, you would only lose 10% of your capital, giving you plenty of opportunities to recover without significant emotional stress . Advantages of the 1% Risk Rule 1. Protects Your Capital: By risking only a small portion of your account on each trade, you prevent significant losses that could deplete your account. 2. Encourages Discipline: Sticking to the 1% rule helps instill discipline, keeping traders from making impulsive trades that deviate from their trading plan. 3. Provides Flexibility: The rule works for all market conditions and strategies, whether you are trading stocks, forex, or other assets. As long as you adhere to the 1% threshold, you can trade confidently without fear of losing too much on any single trade . The Risk-Reward Ratio An essential component of the 1% rule is pairing it with a favorable risk-reward ratio. Traders typically aim for a minimum reward of 2 to 3 times the risk. For example, if you’re risking $100 on a trade, you should aim for at least a $200 to $300 profit. This ensures that even with a 50% win rate, your profitable trades will outweigh your losses . Conclusion The 1% risk management strategy is a powerful tool for minimizing risk and protecting your trading capital. By incorporating proper position sizing, stop-loss orders, and a disciplined approach, you can navigate the market confidently while safeguarding your account from large drawdowns. Whether you’re a day trader or a swing trader, applying this strategy will help you build consistent success over time. By maintaining a focus on risk management, traders can shift their mindset from seeking high returns to preserving capital, which is the key to long-term success in the markets.
CRYPTO:BTCUSDEducation
by HexaTrades
MHUA Chinese Med Tech Penny StockMHUA is shown here on the daily chart. It is currently trading at about 90% off its high of the year. It is in the high volume area of the long term volume profile suggesting there is sufficent liquidity to support active trading. Recent volume spikes suggest buying volume increases with the spikes being about 10X relative volume. Price is over the POC line of the volume profile demonstrating that buying pressure exceeds selling pressure. Price is at or near to one standard deviation below the mean anchored VWAP and so in the undervalued area as confirmed by the RSI Stochastic < 20 %. Chart patterns include an engulfing " big ass " candle on 5/1 and a three-bar strike with another engulfing green candle on 5/12. Both of these could be considered long entry signals especially when supported by the price above the POC and the RSI. I will take a position risking 0.25% of the trading account to begin the trading week. I am targeting a gain of $15.00 per share being a 50% retracement back to the high YTD and a 300% return on investment. I will take a 100 share position and close 10 shares each time the price rises by $2.00. This will adequately mitigate the risk of a volatile penny stock while adequately rewarding the risk taken.
NASDAQ:MHUALong
by AwesomeAvani
Never Trade Without Stop Loss! Hey traders, Talking to many struggling traders from different parts of the world, I realized that the majority constantly makes the same mistake : they do not set a stop loss . Asking for the reason why they do that, the common answer is that these traders consider the manual position closing to be safer, implying that if the market goes in the opposite direction, they will be able to much better track the exact moment to cut loss. In this article, we will discuss why it is crucially important to set a stop loss and why it is the number one element of your trading position. What is Stop Loss? Let's discuss what is a stop loss . By a stop loss , we mean a certain price level where we close our trading position in loss. In comparison to a manual closing, the stop loss (preferably) should be set at the exact moment when the order is executed. On the chart above, I have an active selling position on Gold. My entry level is 2372, my stop loss is 2381. It means that if the price goes up and reaches 2381 level, the position will automatically close in a loss. Why Do You Need a Stop Loss? Stop loss allows us limiting the risks in case of unfavorable movements . On the chart above, I have illustrated 2 similar negative scenarios : 1 with a stop loss being placed and one without on USDJPY. In the example on the left, stop loss helped to prevent the excessive risk , cutting the loss at the beginning of a bearish wave. With the manual closing, however, traders usually hold the negative positions much longer , praying for a reversal. Holding a losing trade, emotions intervene. Greed and fear usually spoil the reasoning, causing irrational decisions . Following such a strategy, the total loss of the second scenario is 6 times bigger than the total loss with a placed stop loss order. Always Set Stop Loss! Stop loss defines the point where you become wrong in your predictions. Planning your trade, you should know in advance such a point and cut your loss once it is reached. Never trade without a stop loss.
OANDA:XAUUSDEducation
by VasilyTrader
16