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Riskmanagementstrategy

Has Bitcoin found its bottom? How to properly swing trade. Hello Everyone, This is a chart I made a few days ago as bitcoin was approaching 44k. As always. the first step in my analysis is identifying support and resistances on daily chart and looking for the formation of a bullish/bearish pattern to engage in a buying or selling strategy. Next, I look at price action and see if the selling momentum is waning off to support any buillish divergence I see on the chart. As we can see, bitcoin is in a double bottom formation. Now, how do you properly trade this without getting burned? You average in. Averaging in is a way to ensure profit with minimizing your risk. A first buy would be 25% of portfolio at 44.5k (I always buy a bit above support so my limit order fills) which is right above support. A stop loss would need to be just below 43.3k (the previous lowest low). This is about a 3% loss but a total of .07% to your portfolio. If the trade fails you can walk away taking a very small loss and you get lower prices in return. A second buy would need to be confirmed by indicators on a 4 hour to daily timeframe with shorter term timeframes showing bullish behavior as well. A good buy would be around 51-52k depending on the close on a 4 hour and daily candle and I would also move my previous stop loss up depending where the daily candle opened. At this point i would do another 25-40% buy depending on how each chart looks. A third and fourth buy would be constituted by closes above the next resistance levels and how bullish or bearish each timeframe looks. OVerall, averaging in is a great way to ensure big wins with taking minimum losses. Let your winners win and keep your losers small. Be patient, find confirmation, and utilize risk management strategies to help you become a better trader. Please give me a thumbs up if you found this useful and good luck trading!
COINBASE:BTCUSD
by RomanXIV
Stellar Lumens XLM Potential 14:1 Setup Stellar is an entire ecosystem with expanding potential. Here is something I have positioned in for now. TRADING IS NOT SUITABLE FOR EVERYONE. If you don't know what you're doing... TRADING CAN CAUSE YOU TO COMPLETE LOSE ALL OF YOUR MONEY. Even if you "know what you're doing" you can still experience expensive LOSSES and lessons. You could use a practice account and trade with leverage. Feel free to follow me on tradingview for more markups.
BINANCE:XLMUSDLong
by ZacharyHogan
5
AUDUSD should pull back lowerAudusd is caught in overall channelling. Both buyers and sellers are compelling strong, while the overall channel is in sellers territory. It is hard to know which side should continue trending move, but we can still trade it well. We are looking this trade as potential if price broke through first support level at price 0.72363. Sellers might push price lower to our first target at 0.71612. First target is very important for buyers too, so we will be looking this very closely. That means, we have to follow lower timeframe momentum too, when one side will made a breaking/ bouncing decision. Sellers next target is at 0.70831. Setting up Stop Loss to break even and following it lower... If price will bounce, we have to wait for more patterns and fact data. We hope this was helpful. Good trading Elite traders. ELitefxacademy
Short
by EliteFxAcademy
20 Days Trading CalculatorThis is my 20 Days trading calculator , i will share it for free..😊 Forex trading it's very simple, you just need to be content with small steps. That's all trading is.😊 Small steps that you take every day so when you look back down the road it all adds up and you know you covered some distance. It took me a long time to accept that, but it's true.😊 If most traders would learn to sit on their hands 50 percent of the time, they would make a lot more money. 😊 You need to have patience.😊
by Ghost_Trader_SA
Risk management helps with many psychological issues in tradingLet’s also talk about another so very important, and often undervalued part of risk management. Risk management really does help me to stay emotionally stable during trading. Just think about it: If I place a trade with a 30% risk and I lose it, it will hurt so much, and it will allow my negative sides, my revenge nature to come out and start dominating. I will be stressed, I will not sleep well if this trade will stay overnight. And even if I win, I will be emotionally and mentally tired, I will most likely not be able to continue trading in a normal state of my mind and emotion. The next thing is not so obvious, but if you have bad and not consistent risk management, you will NOT TRUST YOURSELF. Can you imagine how destructive it is on a subconscious level, how much stress it causes? You start your trading day and deep inside you know you can do many bad things with your account because you know how often you just follow an impulsive behavior, and how often you revenge trade. You know it can be so bad you can actually blow your account in 1 day, as it happened before. Even if you made a self promise to trade according to your plan. And on the contrary, what happens if I regularly, consistently risk 0.25-1% of an account. Many GOOD things will happen, both obvious and not so obvious. First of all, after entering a trade, I will most likely be able to stay relatively calm - I know if I lose, I’ll lose only 0.25-1%. I know I can trust myself and I will not move or remove my stop loss. I'm protected. It will help me to be pleasantly curious about how my trade will develop. If it goes my way, I will be naturally glad it was good, but I will not fall into euphoria and become over-excited, because I risked only 1% and my gain will be 1-2% only. That's very nice of course, but not too much to bring me to a state of euphoria. If it goes against me, I will allow it to do so and hit my SL. And after it does so, I will then realize that it’s totally fine to lose a trade. I can lose even 10 of them in a row, and I will still have 90% of my account ready to trade the next day, next week, next month, and next year. I believe good risk management lets you feel you DO control at least something in your trading, you will feel you can allow yourself to be mistaken about the trades you take. That's why I think we should not concentrate on the ways of eliminating overtrading, stress during trading, emotional trading, fear, and so on. Instead, we should focus on good risk management. I will post more about practical ways of improving risk management.
UEducation
by Yelli_trades
1
GJ 120 pips Sells BreakdownPrice broke below the support we highlighted, however as there was no lower wick on the 1h breakout candle, price had no clear range to move down, so instead of moving to the lower timeframes to look for selling confirmations, I stayed on the 1h timeframe and decided to look for a break and retest setup, as it was not on a lower timeframe my confidence for this trade was pretty good. As soon as we tapped into the broken support zone, I took an entry with half of my usual risk, stops were above the previous candle and my TP was highlighted on the chart. Profits were taken at each of the support zones as we tapped into them, this lowered our risk and secured profits. When we hit our final target, we removed our TP and let 10% of the trade run, the target for this was 135.887, as this was a possible rejection zone and also 120 pips profit. This target was also hit before price formed support to continue back up.
Education
by rhf_fx
EJ Analysis 04/10/2020 -- UpdateI had already highlighted that for buys to be valid, price needed to break resistance and form a support. Price did exactly this and as support was formed, I looked for confirmations to enter buys. When the bullish 15m candle broke the high of the previous 15m candle which was our formation of support, I entered the trade. My stops were below the current 30m candle and I secured profits and left stops at BE when the zone highlighted as a potential barrier for price to break through was tapped. I left half of my position open and closed 90% of that at the 100 pip mark, with my final runner eventually getting stopped out at 98 pips profit. This is an example of trailing stop loss, every so often I moved my SL further into profit following market structure. The risk reward on this trade was 18.36 and price moved beautifully with no bumps along the way.
Long
by rhf_fx
Importance of Risk Management - let's talk about it againIntroduction We all hear from everywhere about risk management. They all say the same: “It’s important, it will help you to protect your capital, etc., etc.” But today I wanted to talk to myself about risk management in more detail. And I’m sure I will have a much better understanding of practical risk management in forex after this - I will talk through its psychological aspects, about RM role as the main principle of trading. I will do it in “talking to myself” format to remind myself in the first place about how important risk management it. Don’t be fooled by the simplicity of risk management. Unfortunately, risk management in FX is too simple. Dangerously simple I would say. In its basic form, good risk management means risking 0.25%-1% of your account per one trade. That’s it. Just do that and most likely you will have an unbreakable account for at least several months. Yes, of course, you can have a drawdown due to emotional trading or revenge trading or whatsoever. But because you will have good risk management, I will have so much time to stop trading emotionally, I can even take 10 revenge trade or 10 absolutely random stupid trades - and your capital will still be in place, even if you will lose every and each of these 20 trades. I ask myself the question - how do people blow their accounts? Very often it happens in 1-5 days of bad, emotional trading, even if the whole months before was good. I’m talking from my experience though, and I don’t know - maybe everyone else is good as their risk management. So why really it happens? In the first place because of bad risk management. Not because of the strategy, not because of the market acting randomly and not in my favor. Because I don’t want to have a simple yet powerful rule of risking 0.25-1% per trade. I start to complicate things and want to risk 5-20% at first, to gain some profits, and only THEN I want to implement good RM. Theoretically, it’s possible, yes, but in reality, I lose my mind and blow my account. So don’t be fooled by the simplicity of RM - because it’s not easy. Because it’s not easy to control yourself while facing a possibility of doubling your account in 1 day and to stay calm and even indifferent to it. Always remember, Risk Management is the #1 rule, you can't control the market, but you can control your risk management. Stay calm and risk 1%. Trading is a survival game. RM is the foundation of any strategy, risk management is the most important part of any strategy and step #1. Stay calm and risk 1%. Jesse Livermore said: "If you cannot sleep because of your stock market position (you are weak), then you have gone too far. Reduce your positions to the sleeping level." Stay calm and risk 1%.
OANDA:XAUUSDEducation
by Yelli_trades
1
How to not lose Money and be smart in Risk ManagementIt's complex code but great if you want to add on risk-free. If you have started a successful Position and wish to add on without risking losing any Money this Formula is for you! Please link my Work and be credible, we help each other in this Community! :) Formula: (Current Price/ First Position Entrance Price) = Positive Value AND Additional Entry DO ((CP/FPEP)-1)/2 = Maximum Risk Tolerance. (MRT) FPEP*(MRT+1)= Risk-Free Stop Loss Price for Add On(RFSLP) ( RFSLP is optional Info) (First Position Order in USDT * MRT) > (Second Position Oder in USDT * Number C) Execute Additional Order Number C = (Additional Stop Loss Price/ Entry Price) -1 = Number B √(NumberB)² = Number C First Position Entrance Price = Entry Price of First Position Positive Value & Additional Entry are Boolean Functions Number C is the Percentage you will set at Risk for the additional Position
BITSTAMP:BTCUSDEducation
by UnknownUnicorn5507594
3
NVX Bulls Hunting +100%Novonix Limited (ASX: NVX) is an integrated developer and supplier of high-performance materials, equipment and services for the global lithium-ion battery industry with operations in the USA and Canada and sales in more than 14 countries. Bulls Hunting +100% Huge Fractal Bullish Pennant + Targets 1.925 & 2.800 From point of break Fib Extension Targets - (-0.272 & -0.618) looking achievable and lining up to Fractal Target Regions Market Structure forming within Pennant - Higher Low and Lower High indicating squeeze Fib Retracement - Huge bounce off the .5 Golden Pocket Level MACD - Indecisive oscillation indicating squeeze CCI - Still trending up and no signs of Divergence on the Daily Bollinger Band - We have been riding the 20 MA since April 24th Daily Resistance - 3 Touches on Daily Resistance, "4th Touch" incoming? Depending on your "Risk Management" & "Entry/Exit Strat" there are 2 entries. Point of Break/ Bottom trend of the Pennant. These Ideas are NOT 'Financial Advice'!. Scenarios are based off a mixture of TA and Fundamentals current at the time. All IMO GLTAH. Happy Hunting!!!
ASX:NVXLong
by Trader_Johnni
3
Possible Retest & Long Position - GBPCHF - 7.68% R:R Hi All! Hope you're keeping well and having a great weekend! Just wanted to share a personal analysis I've made on GBPCHF! Please feel free to comment below any questions you may have! With GBPCHF, I would personally like to see some movement to the downside towards the marked 4hr structure, to retest it as a support for price then to move back and follow the price trend to the upside. As you may not know, the Bank of England has a speech tomorrow which will greatly affect the pound - if the speech is 'hawkish' then we could see some strength for GBP which will support this long position. You may notice that the fib retracement isn't on the highest wick, which is something I've personally done because I feel that maybe the last two candles on Friday could be very sketchy to work off, especially towards the market close. By doing this though it's lining up perfectly with the structure, and would be nice to get a long from that position. We're also above the 40EMA which I personally work with on minor pairs which will support this - also this could count towards a touch on the ascending trendline (subjective) which could also show support. I have chosen to have my stoploss at 20pips + 3pips for spreads, and I will be risking 1% of my capital for this trade. Confluences: Trendline Structure 40EMA Fib Retracement Conformation "Pending" 😉 Obviously please do your own analysis, so please don't take this as gospel and please ensure that you use the correct risk management for this trade. Let me know your guys thoughts! Cheers Daniel Instagram: @DanielJamesFX Twitter: @DanielJamesFX
Long
by danieljamesfx
3
A brief introduction to RISK MANAGEMENT:If you like my ideas and the work I do, please check out the links in the signature and give me a like ;). As I tend to get a lot of questions about this topic, most traders don’t seem to understand basic risk management in trading! From my experience capital protection and risk management are probably the most important part of any trader's skillset. So that is why I wanted to address this in a more elaborate educational Idea. The kind of questions I get: - I’ve got half my portfolio in this coin and the other in this do you think I need to sell. - Do you think I need to sell my … and buy … - I've been holding this since it was at that price do you think it will go down more ... I know these don't necessarily seem like bad questions to most people, but that is not actually how you should be trading. Note: In crypto trading lots of people (myself included) keep their portfolio in BTC or ETH. Now in doing this, you should not look at the dollar amount of the asset, but the goal should be to increase the amount of the asset you hold. If you are going to switch every five minutes because you think about the dollar amount of said asset, I would advise you to stay in dollar and trade from there. Now with that little particularity out of the way, we can look at how trading should be done. It is known most retail traders take positions with their entire capital and then when it drops they get scared and don’t want to sell because psychologically they can’t handle the risk. Now, this is the best way to blow up your entire portfolio in the shortest amount of time. In trading, you can never be sure a trade will be a winner so you should always make sure you can handle a string of losers without it affecting the bottom line too much. Example of how human psychology works in regards to this is a study done around the Kelly Criterion formula: ( This example is from the Wikipedia page of the Kelly Criterion ) Each participant in this study was given $25 and asked to bet on a coin that would land heads 60% of the time. Participants had 30 minutes to play, so could place about 300 bets, and the prizes were capped at $250. The behavior of the test subjects was far from optimal: Remarkably, 28% of the participants went bust, and the average payout was just $91. Only 21% of the participants reached the maximum. 18 of the 61 participants bet everything on one toss, while two-thirds gambled on tails at some stage in the experiment. Using the Kelly criterion and based on the odds in the experiment (ignoring the cap of $250 and the finite duration of the test), the right approach would be to bet 20% of one's bankroll on each toss of the coin. If losing, the size of the next bet gets cut; if winning, the stake increases. If the bettors had followed this rule (assuming that bets have infinite granularity and there are up to 300 coin tosses per game and that a player who reaches the cap would stop betting after that), an average of 94% of them would have reached the cap, and the average payout would be $237.36. In this particular game, because of the cap, a strategy of betting only 12% of the pot on each toss would have even better results (a 95% probability of reaching the cap and an average payout of $242.03). Now, this is why we do not want to trade like this. We should choose a risk level we are comfortable with per trade and keep this consistent. You can use the Kelly Criterion which can be difficult to do because it requires the win probability per trade for the calculation. Now you could get this by trading a certain trade setup you like to trade, let’s keep it simple, a 100 times. By doing this, you could gage the probability of this setup being a winner and that would allow you to use the Kelly Criterion formula. For beginners, a simpler way of doing this is the 1 percent rule. This means you risk 1% of your portfolio per trade. Simple example: You have a risk-reward per trade of 1/1.5 and your strategy has a win rate of 50% of the time and you make 100 trades on a 10000 dollar portfolio. You would end up with a 25% gain after 100 trades even though the 50 losing trades lost you a total of 5000 dollars. Because of the risk-reward the winners got you 7500 dollars which brings you to 12500 dollars in the end. This is a simple example but it shows the importance of both risk/reward and position size. Of course in reality it would play out slightly different. You would recalculate after every trade if your portfolio decreases due to a loss, which means you reduce your positions to make sure your risk stays at 1% of your portfolio and if you win you increase your positions to do the same. Another thing people get wrong with this rule is they start just betting the same position on each trade of let's say 5% and think they will get out when they lose 1%. This does not work!!! You should look at your setup and where you want to place your stop and look at the percentage between your stop and your entry. If this is for example 20%, you take your 1% risk tolerance and divide it by 20, then multiply it by 100 and that will be your position size. If you are using leverage you will need to divide this position size by the amount of leverage used. An example of risk-reward is shown above. From my experience, some general rules I use which tend to improve your results on top of a risk management system as described above: 1. Cut your losers quickly and keep your winners. 2. Don't change your stop unless you take profit and move it above break even. 3. Always place your stop at a technical level and not a random percentage, for example, the last highest low. Of course, you can adapt this to fit your trading strategy and style but the basics will be the same. I hope this was helpful and if anything is unclear feel free to ask me a question through chat.
Education
by VrotteOtter
WTI Mid-Term Technical Analysis - Potential and Risk Here is a more in depth analysis of yesterday's published idea. WTI has appeared to have confirmed a new bottom with the EMI after closing repeatedly above bottom support (scripting thanks to @bonic) signaling a heavy buy signal on the weekly and monthly charts. We have to manage risk here. I have place a strong watch on the bottom uptrend support around 1.8 up to potentially 2.5 and so on. Stop loss should be used accordingly how low depending on how much you are willing to risk. Though that should be pretty clear if you stay up to date on analysis. immediate resistance but according to EMI appears likely to break through both 2.37-.39 and 2.55-6 resistance lines. If it fails to do so you may consider selling to play safe. Read the charts. bounce off long term support same bounce with a more current date range
NYSE:WTI
by CryptoStockCoin52
Dash Long Term low Risk Trade PlanSetup is pretty smooth and easy to do Green circle shows where i can enter the trade. I'm planning 2 entries in it. ( $77 and $57) Stop Below the ATL I may compound on the way up, if that happens It is not suitable to risk lower than R and risking more than 5R, I have to make an exception because while market retracing i need as much as cash i could spare. I have too much altcoin trades/waiting orders so my rules says do not overexposure myself is a must and its not negotiable! I can risk .75 R for 4-5 trades if i wont close/take profit with my current trades. Since shitcoins has too much to offer i'm ok with low risk/reward. ..................................... The Color Map of The Chart Red = (M)onthly Yellow = (w)eekly White = (D)aily Green = 4H Blue = 1H Rainbows = Mins .....................................
KRAKEN:DASHUSDLong
by badmilkshake
USDJPY: buy the rumor, sell the fact - possible scenarioI think the markets are pricing that the US-China Phase 1 deal is going to be signed, so the risk-off sentiment is still present. The idea of going short in USDJPY is based on a well-known phrase: buy the rumor, sell the fact (news). Are we going to see the price going down? Who knows, but it's better to be prepared, if the price breaks the support zone around 109.3 price level it's decent to join bears with stop above 109.65 and profit around 108.4 (R:R=2.57) // Follow me to stay updated with my trading ideas.)
Short
by GIgor_021