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Riskmanagment

Embracing Risk ManagementEmbracing Risk Management in Forex Trading: In the world of forex trading, embracing risk management is an integral aspect of achieving long-term success and preserving your capital. Implementing effective risk management strategies is essential to navigate the inherent uncertainties of the forex market. Let's explore some key principles of risk management in forex trading. • Define Your Risk Tolerance: Before entering the forex market, it is crucial to determine your risk tolerance. Assess your financial situation, investment goals, and personal comfort level with risk. This will help you establish appropriate risk parameters and guide your decision-making process. • Proper Position Sizing: Determining the right position size is a critical element of risk management. Avoid overexposing your trading account by allocating a reasonable portion of your capital to each trade. A general rule of thumb is to risk only a small percentage of your account balance (e.g., 1-20%) per trade. This ensures that a string of losing trades does not significantly impact your overall account balance. • Utilize Stop-Loss Orders: Implementing stop-loss orders is vital to protect yourself from excessive losses. A stop-loss order sets a predetermined price level at which your trade will automatically be closed if the market moves against you. Place your stop-loss orders based on technical analysis, support and resistance levels, and market volatility. This tool helps limit potential losses and protects your trading capital. • Take-Profit Targets: Setting take-profit targets is equally important in managing risk. A take-profit order enables you to exit a trade when the market reaches your desired profit level. Determine your take-profit targets based on technical analysis, market trends, and reward potential. Regularly reassess your take-profit levels as the market evolves to secure profits and prevent sudden reversals. • Risk-Reward Ratio: Maintaining a favorable risk-reward ratio is crucial for long-term profitability. Aim for trades that offer a potential reward that outweighs the potential risk. A positive risk-reward ratio means that your potential profit is greater than your potential loss. This allows you to achieve profitability even with a lower win rate, as long as your winning trades outweigh your losing trades. • Regular Evaluation and Adjustment: Consistently evaluate and analyze your trading performance to identify strengths and weaknesses. Keep a trading journal to review your trades, assess your decision-making process, and identify areas for improvement. Adapt your risk management strategies based on market conditions, and avoid chasing losses or taking excessive risks due to emotional impulses. [ i]Remember, risk management is an ongoing process that requires discipline and continuous monitoring. Stay informed about economic news releases, market events, and volatility to adjust your risk parameters accordingly. Embrace risk management as a fundamental part of your forex trading journey, and let it guide you towards consistent profitability and capital preservation. In forex trading, success is not solely determined by profitable trades but by effectively managing risks and protecting your trading capital. By embracing your risk management principles such as defining your risk tolerance, proper position sizing, utilizing stop-loss and take-profit orders, maintaining a favorable risk-reward ratio, and regularly evaluating and adjusting your strategies, you can navigate the forex market with confidence and achieve sustainable results. Embracing Risk Management trading GOLD: In the golden path of trading gold, risk management takes center stage as a paramount factor for success. It is crucial to implement effective risk management strategies to protect your capital and navigate the inherent uncertainties of the forex market. Let's delve deeper into the key aspects of risk management in trading gold. • Proper Position Sizing: Determining the appropriate position size is the foundation of risk management. Carefully consider your account size, risk tolerance, and market conditions when deciding how much of your capital to allocate to each gold trade. Avoid overexposure by keeping your position sizes in line with your risk tolerance, allowing for potential market fluctuations. • Stop-Loss Orders: Implementing stop-loss orders is an essential risk management tool. Set a predetermined level at which you will exit a trade if the market moves against you. This ensures that your losses are limited and prevents them from spiraling out of control. Always place stop-loss orders based on sound analysis and risk-reward ratios to protect your capital. • Take-Profit Levels: In addition to stop-loss orders, establish take-profit levels to secure your profits. These levels are predetermined price points at which you will exit a trade when the market reaches your desired profit target. Take-profit orders help you lock in gains and avoid potential reversals that can erode your profits. Regularly reassess your take-profit levels based on market conditions and adjust them accordingly. • Risk-Reward Ratio: Maintaining a favorable risk-reward ratio is essential in risk management. This ratio represents the potential profit you can make relative to the amount you are willing to risk. Aim for trades that offer a higher potential reward compared to the potential loss. By consistently seeking trades with a positive risk-reward ratio, you increase your chances of profitability over the long term. • Regular Assessment and Adjustment: Risk management is an ongoing process that requires continuous assessment and adjustment. Regularly review your trading performance, analyze your trades, and identify areas for improvement. Adapt your risk management strategies as market conditions change and stay vigilant in monitoring your trades to ensure they align with your risk parameters. Do remember again, risk management is not about avoiding risks altogether but rather about managing them intelligently. By implementing proper position sizing, setting stop-loss and take-profit levels, and maintaining a favorable risk-reward ratio, you can protect your capital and create a solid foundation for long-term success in trading gold. In the golden path of trading, risk management is not a choice but a necessity. Develop a disciplined approach to managing risk, and let it guide you towards a prosperous journey where the allure of gold meets the prudence of risk ☆ Good Foreign Exchange Trading Daysz ☆ J
OANDA:XAUUSDEducation
by ATU_TAD
⚠️ Risk:Reward & Win-Rate CheatsheetThe reward to risk ratio (RRR, or reward risk ratio) is maybe the most important metric in trading and a trader who understands the RRR can improve his chances of becoming profitable. Basically, the reward risk ratio measures the distance from your entry to your stop loss and your take profit order and then compares the two distances. Traders who understand this connection can quickly see that you neither need an extremely high winrate nor a large reward:risk ratio to make money as a trader. As long as your reward:risk ratio and your historical winrate match, your trading will provide a positive expectancy. 🔷 Calculating the RRR Let’s say the distance between your entry and stop loss is 50 points and the distance between the entry and your take profit is 100 points . Then the reward risk ratio is 2:1 because 100/50 = 2. Reward Risk Ratio Formula RRR = (Take Profit – Entry ) / (Entry – Stop loss) 🔷 Minimum Winrate When you know the reward:risk ratio for your trade, you can easily calculate the minimum required winrate (see formula below). Why is this important? Because if you take trades that have a small RRR you will lose money over the long term, even if you think you find good trades. Minimum Winrate Formula Minimum Winrate = 1 / (1 + Reward:Risk) 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
8
NZDCAD, Pullback to an area of value, look for sell entries Price action has pulled back an area of which we saw a strong impulse breaking downward from a strong structure level. Price has now retraced back to this area which we could see a nice sell opportunity. Wait for bearish price action and find an entry thst meets your trading plan. Thanks Trade Safe **If you found this idea helpful in any way, hit the LIKE button and FOLLOW me for more analysis and educational ideas** Share your view by leaving a comment below. I appreciate all the feedback.
Short
by ktlfx
What's Risk and Reward ratio vs Profit factorWhat is Risk-Reward Ratio? The risk-reward ratio is a ratio used in investing that compares the potential profit or gain of an investment to the potential loss or risk that it poses. This ratio is often used to determine whether an investment is worth pursuing or not, and can be a helpful tool in managing risk. The risk-reward ratio is typically expressed as a ratio of potential profit to potential loss, with a higher ratio indicating a potentially more favorable investment opportunity. For example, if an investment has a potential reward of $10,000 and a potential risk of $5,000, the risk-reward ratio would be 2:1. Examples of risk-reward ratios can be found in many different types of investments, such as stocks, bonds, mutual funds, and options. For example, a stock that has a potential upside of $20 per share and a potential downside of $10 per share would have a risk-reward ratio of 2:1. Similarly, a bond that offers a potential yield of 6% and carries a potential risk of default of 3% would have a risk-reward ratio of 2:1. In general, a higher risk-reward ratio indicates a potentially more attractive investment opportunity, as the potential gains are greater than the potential losses. However, it is important to remember that higher potential gains also often come with higher levels of risk, and investors should carefully consider their risk tolerance before making any investment decisions. What is profit factor? The profit factor is a metric used in trading that measures the relationship between the profits generated by winning trades and the losses incurred by losing trades. It is calculated by dividing the gross profit of winning trades by the gross loss of losing trades. A profit factor of greater than 1 indicates that the trading strategy is profitable, while a profit factor of less than 1 indicates that the trading strategy is not profitable. A profit factor of exactly 1 means that the trading strategy has breakeven results. Some traders consider a profit factor of 2 or greater to be a good measure of a profitable trading strategy, as it indicates that the strategy generates twice as much profit as it incurs in losses. However, it's important to note that the profit factor is just one metric and should not be used in isolation to evaluate the performance of a trading strategy. Other important metrics include the win rate, average profit per trade, and maximum drawdown. In summary, the profit factor is a key metric used in trading to evaluate the profitability of a trading strategy, and it can help traders to assess the risk and reward potential of their trades. Example: Example 1 - Risk-Reward Ratio: Let's say you're considering buying a stock at $50 per share, and you believe it has the potential to rise to $70 per share. However, you also recognize that there is a risk that the stock could fall to $40 per share. In this scenario, the potential reward is $20 per share ($70 - $50), while the potential risk is $10 per share ($50 - $40). This gives us a risk-reward ratio of 2:1, which means that the potential reward is twice as high as the potential risk. Example 2 - Profit Factor: Let's say you have a trading strategy that involves making 10 trades over a period of time. Of those 10 trades, 6 are winning trades and 4 are losing trades. The gross profit generated by the winning trades is $6,000, while the gross loss incurred by the losing trades is $3,000. To calculate the profit factor, we divide the gross profit by the gross loss, which gives us a profit factor of 2. This means that for every dollar you lose on losing trades, you earn $2 on winning trades. By looking at both the risk-reward ratio and profit factor, you can evaluate the potential risk and reward of a trading opportunity and the profitability of a trading strategy. It's important to keep in mind that there are other factors to consider when making trading decisions, such as market conditions, technical analysis, and risk management strategies.
CAPITALCOM:GOLDEducation
by JackPepperstone
1
Profit fixation Profit fixation There are three main profit-taking strategies: 1. Fixed RR (1:2, 1:3RR). 2. High RR (1:10RR and above). 3. Partial profit taking. Fixed RR. When trading with a fixed RR, the trader ignores the situation on the chart and places a take profit at the level of 1:1, 1:2, 1:3, taking into account the commission. This approach has a high win rate and also relieves the trader from feeling greedy. You do not need to select targets, accompany the position and worry about a random factor that the price may react to. We think that many people are familiar with the situation when the take is put on a lay, the price reaches 1:5R without removing the minimum, and then hits the stop. The weak side of the strategy is that it has limited profit potential. Often when trading with the trend, you can get more than 2 or 3%. High RR. According to this strategy, a position is opened on a lower timeframe, and targets are allocated on a higher timeframe in order to set a short stop and a long target. On the other hand, this does not prevent you from using a fixed take profit level.A. At one time, Liquidity traded high RR and set a take at the level of 1:10, regardless of the targets on the chart. Many in this strategy are captivated by mathematics. With a risk-reward level of 1:10, a win rate of 10%-20% or 1-2 profitable trades over a distance of 10 positions is enough not to be unprofitable. And yet, this strategy can harm the trader. If the price does not reach the marked targets, you will not make a profit even if you did everything right. This puts a lot of pressure psychologically, especially when it was possible to take 3-5% and close the position in plus. You may get the impression that there are only two extremes: earning rarely, but a lot, or little, but often. But there is another strategy that helps to balance and find a happy medium. Partial profit taking. The trader fixes the profit in parts as the selected goals are achieved. Targets can be determined both by schedule and by risk-reward ratio. For example, you fix 50% of the position at 1:3, 25% at 1:5 and 2 more5% at 1:10. Either 50% on FTA and the rest on potential reversal zones. This strategy will help you capitalize on your trading ideas, reducing the risk of losing profit when the price falls short of the marked targets. Partial fixation will be useful for novice traders because it creates a positive experience and demonstrates what you are capable of. Do not jump from extremes to extremes and look for balance. 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"!
BITSTAMP:BTCUSDEducation
by Crypto4light
gbpjpy analysis - 01 mar 2023happy first of the month!! hope we all have profitable months :) so here it goes... - on the daily market closed below the downward trendline yesterday - down to the H4 a bearish engulfing formed closing two previous bullish candles - a head and shoulder pattern formed which is more clearer on the H1 - entry could have been taken at the london open where the right shoulder formed - but now we WAIT for a breakout of the neckline and depending on how aggressive your entries are you can enter at the immediate breakout or wait for a retest of the neckline - and just like every other trade I DO NOT KNOW WHAT WILL HAPPEN NEXT, i'll just act on my edge and SEE WHAT HAPPENS
Short
by K0KETSO
2
Practical advice for a novice traderPractical advice for a novice trader - It doesn't matter what size of the deposit you have, start gaining experience with symbolic sums: $10/50/100, as you gain skills, you can increase the deposit, but be prepared to lose. In addition, with such an initial deposit, the logic of the behavior of market participants will open up to you. - Do not invest in trading those funds, the loss of which will affect the quality of your life, only what you are ready to lose. - Do not rush to leave your main job, let trading be your hobby for some time, perhaps it will grow into something more over time (but this is not certain). - More trades does not mean more profit, you can make several trades in a month and earn more than if you made dozens of trades a day, and sometimes it’s best to be out of the market, but this is very difficult without experience. 90% of a trader's time is spent on analyzing the instrument and the situation, forget about the rush, opportunities appear and disappear every day, know how to wait. - The first transactions can be made on paper, on an unfamiliar chart, but just take into account not only the profit or loss, but also the time spent. - It doesn’t matter what timeframes you work on, as long as you manage to trade profitably, but you need to start studying the chart with higher timeframes: monthly, weekly, daily and go lower, so you will understand the whole picture. - There is no endless growth, as well as an endless fall, markets are cyclical, and reversals usually occur at the most unexpected moments. Do not make decisions on emotions, only a well-thought-out plan. Develop your own trading strategy, according to your initial data and temperament. - Don't ask others where to buy and where to sell, they don't know. - If the instrument has already made several hundred percent growth from the bottom, then it is not rational to enter it without stops, if the profit from the bottom is several thousand percent, then it is contraindicated to enter such an instrument on growth without waiting for a significant rollback! - Even if everything points to a specific direction of movement, always allow 1% for the opposite option, this can save you from significant losses. Always control risks. - If you make a profit, withdraw at least a part, regularly, you must understand why you are spending your time on this. Ideally, over time, withdraw all the money invested, so it will be easier for you to psychologically operate with a deposit. There are no universal strategies. Your trading strategy should be well-considered, but at the same time adaptable to the current market situation. Something works well in a rising market, and does not work well in a falling one, and vice versa. You will be able to earn if you quickly adapt to the situation and skillfully manage risks. 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"!
BITSTAMP:BTCUSDEducation
by Crypto4light
2
nas100 analysis - 22 feb 2023- we broke through the neckline of the double top on the daily timeframe yesterday - we are currently at an intraday level of structure where market looks like its retesting it and continuing being bearish - currently waiting for the break of the previous low at 12052 to go short - or if the market wants to retest the neckline of the double i will wait for a break of the 12101 level and go long on the retest, but my long term bias is bearish as on the daily we are bearish - funny thing what i just said right now might not even happen the market could gap to a new high or low we'll never know but that's why there's risk management :)
NShort
by K0KETSO
Risk Management Strategy Spot trading can yield high returns, but it’s crucial to have a well-defined strategy in place before diving in. This entails analyzing the project, determining the size of your entry, and devising contingency plans in case of unforeseen circumstances. In this article, we’ll discuss our approach to spot trading and share our insights with you. Before entering the spot market, it’s critical to categorize the various assets available. With over 10,000 different projects to choose from, each with its own unique features, we sort them into three categories based on risk level: High Risk: This category includes projects that are prone to exit scams or are high-risk due to their small capitalization. We pledge no more than 0.5% of our total capital to these projects since they pose a significant risk to our portfolio. However, if they perform well, we may see significant returns from just one high-risk transaction. Middle Risk: Projects in this category have an average market capitalization of between $50 million and $500 million. We can pledge up to 1% of our allocated capital to these projects, which are less likely to collapse but still carry a degree of risk. Low Risk: This category includes established mastodons of the cryptocurrency market with a high market capitalization, such as those in the top 50 of Coin Market Cap. We can pledge up to 3% of our allocated capital to these projects, as they are less risky but still carry some risk. To diversify our portfolio, we allocate our capital as follows: Cash reserves: 30% High Risk: 15% Middle Risk: 30% Low Risk: 25% While our portfolio may seem risky, we aim to earn returns rather than simply preserving our capital. However, in the current bear market, we adjust our strategy to focus more on cash reserves: Cash reserves: 70% High Risk: 5% Middle Risk: 15% Low Risk: 10% With over 70% of our portfolio consisting of stablecoins, we can buy back into the market at more favorable prices during drawdowns. In short, a risk management strategy should be tailored to each market. In a bull market, a riskier strategy with more high- and middle-risk projects may be appropriate, while a bear market calls for a risk-free strategy with a small percentage of high- and middle-risk projects and the majority in stable assets. In summary, our risk management strategy for spot trading is designed to minimize losses and prevent undue stress. Consider using it as a starting point for developing your own strategy, and monitor its effectiveness over time.
BITSTAMP:BTCUSDEducation
by Crypto4light
I would lie to you that I am very special!This is an event that has spread all over the real and virtual space these days I am better than you, more beautiful than you, smarter than you But the reality is something else But we know the truth! You and I are human, we have our merits and demerits, we all lied, we were all kind, we were both good and bad! we are equal .. With this introduction, I wanted to get here that we in the financial markets are involved with an equal scale of types of risk It means that if I am facing some risks, you are also facing almost the same risks! So, of course, if we are profitable but have a low win rate, or vice versa, we have a high win rate, but we may not be profitable in the long term. Accepting this risk is the most basic step of entering the market. I think money management and risk management are the only keys to success Our learnings about technical and fundamental analysis only play a role in reducing or increasing the risk of our trade!
Education
by HoneyCreateMoney
Learn The HIDDEN Costs of Trading In this educational article, we will discuss the hidden costs of trading. 1 - Brokers' Commissions Trading commission is the brokers' fee for opening a trading position. Usually, it is calculated based on the size of the trade. Even though most of the traders believe that trading commissions are too low to even count them, the fact is that trading on consistent basis and opening a couple of trading positions weekly, the composite value of commissions may cut a substantial part of our profits. 2 - Education Of course, most of the trading basics can be found on the Internet absolutely for free. However, the more experienced you become, the harder it is to find the materials. So you usually should pay for the advanced training. Moreover, there is no guarantee that the course/coaching that you purchase will improve your trading, quite often traders go through multiple courses/coaching programs before they become consistently profitable. 3 - Spreads Spread is the difference between the sellers' and buyers' prices. That difference must be compensated by a trader if one wished to open a trading position. In highly liquid markets, the spreads are usually low and most of the traders ignore them. However, being similar to commissions, spreads may cut the substantial part of the overall profits. 4 - Time When you begin your trading journey, it is not possible to predict how much it will take to become a consistently profitable trader. Moreover, there is no guarantee that you will become one. One fact is true, you should spend a couple of years before you find a way to trade profitably, and as we know, the time is money. More time you sacrifice on trading, less time you have on something else. 5 - Swaps Swap is the fee you pay for transferring a position overnight. Swap is based on a difference between the interests rates of the currencies that are in a pair that you trade. Occasionally, swaps can even be positive, and you can earn on holding such positions. However, most of the time the swaps are negative and the longer you hold your trades, the more costly your trading becomes. The brokers' commissions, spreads and swaps compose a substantial cost of our trading positions. Adding into the equation the expensive learning materials and time spent on practicing, trading becomes a very expensive game to play. However, knowing in advance these hidden costs, the one can better prepare himself for a trading journey. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
10
Are you prepared to lose? (and what to do if you are not)A new trader, let's call her Sarah, has just started trading in the crypto market. She has been reading articles and watching videos about trading, but hasn't taken the time to develop a solid trading plan, or to gain a good understanding of the markets and underlying assets she is trading. Sarah sees bitcoin's value is going up, she doesn't do any further research or analysis, she doesn't set a stop loss or take profit level, she just buys bitcoin, with the expectation that she will make a quick profit. Unfortunately, the value of bitcoin doesn't perform as well as Sarah had hoped, and instead of going up, it starts to go down. Sarah gets anxious and starts checking the bitcoin's value frequently, and since she didn't set a stop loss, she watches as her position continues to lose value. Eventually, the bitcoin loses so much value that Sarah is forced to sell it at a large loss. Feeling disheartened, Sarah starts to second-guess herself and her abilities as a trader. She didn't have a plan or a strategy, didn't manage her risk properly, and didn't have a clear understanding of the markets and the underlying asset. She didn't prepare for the possibility of losses and didn't have a plan for exiting losing positions. 😭😖😞Unfortunately, the story above is very common in trading, so how can we prepare for losing trades? ☝🏽 Preparing for the possibility of losses is an important part of risk management and can help traders to minimize the impact of losses on their trading capital. Some ways to prepare for the possibility of losses include: 1️⃣ Setting realistic trading goals: Traders should set realistic goals that take into account the inherent risks of trading and the potential for losses. By setting realistic goals, traders will be better prepared to handle losses when they do occur. 2️⃣ Establishing a risk management plan: This includes determining the appropriate size of each trade, placing stop-loss orders, and evaluating the potential reward relative to the potential risk. This can help to limit potential losses and protect trading capital. 3️⃣ Maintaining a proper risk-reward ratio: This means that the potential reward of a trade should be greater than the potential loss. This helps ensure that the potential reward justifies the potential risk. 4️⃣ Diversifying the portfolio: By spreading capital across a variety of different markets and instruments, traders can reduce overall portfolio risk and minimize the impact of losses in any one market or instrument. 5️⃣ Building a trading cushion: This means keeping a reserve of capital that can be used to absorb losses and maintain the trader's ability to continue trading. This cushion should be large enough to withstand a series of losses, but not so large that it affects the trader's ability to trade effectively. 6️⃣ Emotionally preparing for losses: It's important to remember that losses are a normal part of trading and to not let them affect you emotionally. By preparing emotionally for the possibility of losses, traders will be better able to handle them when they occur. 7️⃣ Have a plan for exiting losing positions: Having a plan for exiting losing positions will help to minimize the impact of losses on the portfolio. This could include setting a stop loss or taking profits at predetermined targets. ⚠️ Remember, it's important to accept that losses are a normal part of trading and that they are not a reflection of the trader's ability. By preparing for the possibility of losses and implementing a solid risk management plan, traders can minimize the impact of losses and increase the chances of long-term success. I hope this has been informative to you, and if it was, please leave a like or a comment below. 👇🏽👇🏽👇🏽 Thanks for your visit!
BITSTAMP:BTCUSDEducation
by Profit_Through_Patience
34
Managing Risk Using Probabilities 3 In part 2 of this series, we discussed the probability of a coin flip and how the odds that you land on heads "x" number of times in a row significantly decreases each time the coin is flipped. Therefore, it is important to understand the difference between "the probability the chart goes up or down" and "the probability that you (the trader) find yourself in a winning trade." The brings me to my next point of gathering your data. There is a difference between gathering data to calculate the probability an asset will rise or fall versus gathering data on a specific trade set-up and determining whether or not it will win or lose. Backtesting and forward testing are both excellent methods to calculate probabilities. In my honest opionion, backtest at least 100 trades in order to best calculate probability. Ask yourself if you are okay with losing more than 3 times in a row. If your set up loses more than 4 times in a row, it is very likely your odds of being in a losing trade are worse. Please take the time to think and meditate on this matter. If there are no questions concerning this, I may begin to go into details of my own personal trading set ups on the next article. Be blessed! Handy
BYBIT:BTCUSD.PEducation
by DelusionalRams8
2
"MATIC" Polygon growth potentialHello guys. hope you are good today im going to explain a few about the reasons MATIC skyrocketing these days. i look this happenings in 2 sides: first Fundamental News and second Technically. lets go... "On Monday, deltaDAO, a data economy solutions company, launched its Gaia-X Web3 Ecosystem network upgrade based on Polygon Supernet. The Polygon team said the collaboration brings the blockchain at the heart of European data economy. The partnership enables a global trustless data economy where users are in full control of their data, it added Antoni Martin, co-founder of Polygon, said the partnership will help provide an open and federated data economy for the European digital ecosystem. Earlier, Wall Street bank JP Morgan said it successfully executed a trade using the Polygon blockchain network. This came as a big boost to the Polygon community as it led to MATIC price rise. Similarly, another major collaboration news came in the form of Instagram with Meta saying it will be using Polygon for its first NFT marketplace. " Sooo excellent reasons exist for this rally. now lets see it technically... the price action breackout a long side move from JULY and surpass the 200MA. and break the important 1$ resistance. asnd when we add 55EMA to the chart we see a nice GOLDEN CROSS. what a nice situation... lets imagine its just a step of correction so we have C wave in play with at least 78.6% fibonacci level target 1.76$. and maybe 100% level on 2.6$! BUT... be careful if bitcoin come back below 20000 , maybe we see a pullback to 200MA and price 1$ or 0.97$ and after that again it starts. and in the end all of this analyze is my personal opinion and you shuold DYOR (Do Your Own Research). so i use I THINK already :) dont forget to manage your capital and risks. and dont forget we play in a VERY RISKY market so ALL THINGS POSSIBLE... i hope success for all of you my dear friends.
MLong
by TraderAmin-KZ
2
Learn TOP 5 Tips For Trade Management 📖 Hey traders, In this post, I will share with you my tips for trade management. But first, let me elaborate on what is exactly a trade management. Trade management is the set of rules and techniques applied for managing of an already active position. Trade management is a very important element of any trading strategy that should never be neglected. 1. Never remove a stop loss Being in a huge loss, many traders refuse to admit that they are wrong. Instead, watching how the price moves closer and closer to a stop loss, they remove stop loss hoping on a coming reversal. The alternative situation may happen when the price is going sharply in the desired direction. Watching the increasing profits, traders remove a stop loss, being afraid to miss bigger profits. Both situations may lead to substantial, higher than initially planned losses. Driven by many factors, the market can easily burn all gains and move against the desired direction much longer than traders stay solvent. For these reasons, never remove a stop loss. It must be always set. 2. Never modify your stop loss if a position is in loss Watching how the price moves closer and closer to a stop loss is painful. Instead of removing stop loss, some traders move it and give the market more space for reversal. Even though such a technique is safer than the complete stop loss removal, it is still a very bad habit. Each stop loss adjustment increases the potential loss, not giving any guarantees that the market will reverse. It is highly recommendable to keep your stop loss fixed and let the price hit it and admit the loss. 3. Know in advance your profit protection strategy Where do you take your profit? Do you have a fixed tp level or do you apply trailing stop? You should always know the answers. Coiling around take profit level but not being able to reach it, the price makes many traders manually close the trade or move take profit closer to current price levels. Another common situation happens when the market so quickly reaches the desired TP level so the traders remove TP hoping to make bigger than initially planned profit. Such emotional interventions negatively affect a long-term trading performance. TP removal may even burn all profits. Do not let your greed intervene, and always follow your rules. 4. Never add to a losing position Watching how the price refuses to go in the intended direction and cutting a partial loss, many traders add to a losing trade in hopes that the market will reverse and all the losses will be recovered. Again, such a fallacy usually leads to substantial losses. Remember, you can add to a position only AFTER the market moved in the desired direction, not BEFORE. 5. Close the trades manually only following rules Quite often, newbie traders manually close their trades because of some random factors: they saw someone's opposite view, or they simply changed their mind. Remember, that if you opened a trade following your trading plan, you should always have strict rules for a position manual close. Do not let random factors affect your trading. Following these 5 simple tips, your trading will improve dramatically. Remember, that it is not enough to spot and accurate entry. Once you are in a trade, you should wisely manage that, following your plan. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
5
1% risk per trade is too much, try this insteadHello traders, Remember when you just started trading, almost everywhere you could hear about the 1% per trade risk rule? While this is not too bad, I think in most cases 1% risk is too much. Here's why: 1. If you're trading a 100k prop firm account, 1% is $1000. Imagine you have a very usual losing streak of 3-4 trades. Now you've lost 3-4%, and $3-4k in dollar amount. If you're a day trader, it could happen in one day easily. Ask yourself honestly, how would you feel about it all and if you will be capable of executing your edge? 2. Most prop firms will have a 5-10% drawdown breach rule So again, a very usual losing streak will take you halfway to account termination. 3. 1% risk leaves almost no room for days where you executed poorly or traded emotionally. We are all humans and we make mistakes. Something goes wrong and you trade the setup you were not supposed to be trading. And instead of stopping after 3 losers, you continue to trade more. So what can we do about it? My suggestion is very simple: risk no more than 0.1-0.25% per trade. If your average winner is 3-7RR, then with a good account size a 1% winner is just huge and more than enough. And if you're going through the evaluation process, such a small risk will keep your equity curve in control and still will allow you to grow it to profit targets. Hope it helps!
Education
by Yelli_trades