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Riskreward

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
S&P500 Trading Ideas Ahead of the Fed 0.25 Rate HikeThe S&P500 is looking bearish ahead of the much awaited Fed Interest Rate decision later today. Sellers looks to be in control in anticipation for the rise in the USDX value. On the daily chart, MACD shows slightly overbought signs. Selling opportunities exist at the current price 4055 with tight stop loses around 4076. Should the USDX surge later today. The S&P500 may retrace to the 4025 mark, touching the trendline as indicated by the arrow. On the flip side should the USDX break below the 101.4 - which is unlikely - the buyers will be taking control once more.
VANTAGE:SP500Short
by ciryjuma008
Bull flag on BTC?Hello. Possible bull flag forming on Bitcoin . Target around 24k . First resitance is around 22400-22800 (13th of september high) . I think 25k there will be more selling/profit taking if we even get there. You can see from the chart how 10EMA (blue one) has worked as support 3 times before when Bitcoin started its rise (marked with red arrows) . I believe it will work as a support until the price shows that it doesn't and breaks it (and stays below) . Possible risk reward is pretty good, almost 5 ratio . This is not financial advice. If you do take trades always use stop loss! First mistake novice trades do is not use them and gets their ass burned! Check out my analysis on 12th of january "why I think Bitcoin has bottomed" -Jebu
INDEX:BTCUSDLong
by PalenTrade
Learn Why Do You Need a 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. First of all, 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 should be set at the exact moment when the order is executed. 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. 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 5 times bigger than the total loss with a placed stop loss order. 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. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
9
DAY TRADING 101: How to Get StartedHello guys! Day trading is a popular way for traders to make money by buying and selling assets within the same trading day. However, before you begin day trading, it's important to understand the basics and develop a solid trading strategy. In this post, we'll cover the basics of day trading and provide some tips on how to get started. First, it's important to understand the different types of securities that you can day trade. Some popular options include stocks, options, futures, and currencies. Each of these securities has its own unique characteristics and requires different strategies, so it's important to choose the one that best fits your goals and risk tolerance. Next, you need to develop a trading plan . Your plan should include your trading strategy, the securities you plan to trade, and your risk management techniques. It's also important to set realistic goals and be prepared to stick to them. Once you have a trading plan in place, you need to practice . You can do this by using a simulation or paper trading account. This will allow you to test your trading strategy and learn from your mistakes before you start risking real money. Another important thing to consider is your risk management . This means understanding the level of risk you're willing to take and setting stop-losses and profit-taking orders to protect your capital. It's also important to maintain a proper risk-reward ratio, which means that the potential profit should be larger than the potential loss. In addition to the above, it's crucial to keep an eye on the market and news , as they can greatly impact your trades, so it's essential to stay updated with the latest news and trends. Finally, keep in mind that day trading requires discipline and patience, so be prepared to put in the time and effort to become a successful trader. To sum it up, day trading can be a great way to make money, but it's important to understand the basics and develop a solid trading strategy. Additionally, you should practice with a simulation or paper trading account, have a proper risk management, stay informed and be prepared to put in the time and effort. Which type of trading do you prefer?
BLACKBULL:US30Education
by m_maia14
1
BEST SHORT Opportunity in the markets!! SQM SHORT!!This chart is up against ATH and MAJOR Overhead Resistance lines extending back to 1996. This stock has been overbought for quite some time and has continued to move higher while markets have traded generally lower. I fully expect this one to play catch up soon. Notice the large Yellow Parallel Trend Channel that price broke out of in March 2022. Price has gone nearly Parabolic since then and is losing steam as it hits overhead resistance. Although not shown here the Price is outside of the Bollinger Bands for >5 MONTHS now indicating that price is > 2 STD away from the mean average MONTHLY Price. This is a Reversion to the MEAN counter trend trade with the 1st Target Price the broken Resistance now acting as support. 2nd Target Price would be the Monthly EMA 39. SHORT Entry = $112.46. SL is confirmation close > $116.78. Target # 1 = $77.64. Target # 2 = $60.43. This is a 8.5:1 Reward:Risk ratio to the 1st Target. Even greater to the 2nd Target. Trade has a >85% Probability of turning out EXACTLY as described!! See my prior posts on similar setups in AMD and SPX.
NYSE:SQMShort
by eganon69
19
📊HOW TO CREATE A TRADING PLAN📊 📖What is a trading plan? A trading plan is a comprehensive decision-making tool for your trading activity. It helps you decide what, when and how much to trade. A trading plan should be your own, personal plan – you could use someone else’s plan as an outline but remember that someone else’s attitude towards risk and available capital could be vastly different to yours. 📚Why do you need a trading plan? You need a trading plan because it can help you make logical trading decisions and define the parameters of your ideal trade. A good trading plan will help you to avoid making emotional decisions in the heat of the moment. ✳️TRADING PLAN CREATION STEPS: 1️⃣Outline your motivation Figuring out your motivation for trading and the time you’re willing to commit is an important step in creating your trading plan. Ask yourself why you want to become a trader and then write down what you want to achieve from trading. 2️⃣Decide how much time you can commit to trading Work out how much time you can commit to your trading activities. Can you trade while you’re at work, or do you have to manage your trades early in the mornings or late at night? If you want to make a lot of trades a day, you’ll need more time. If you’re going long on assets that will mature over a significant period of time – and plan to use stops, limits and alerts to manage your risk – you may not need many hours a day. It's also important to spend enough time preparing yourself for trading, which includes education, practising your strategies and analysing the markets. 3️⃣Define your goals Any trading goal shouldn’t just be a simple statement, it should be specific, measurable, attainable, relevant and time-bound (SMART). For example, ‘I want to increase the value of my entire portfolio by 15% in the next 12 months’. This goal is SMART because the figures are specific, you can measure your success, it’s attainable, it’s about trading, and there’s a time-frame attached to it.You should also decide what type of trader you are. Your trading style should be based on your personality, your attitude to risk, as well as the amount of time you’re willing to commit to trading. 4️⃣Choose a risk-reward ratio Before you start trading, work out how much risk you're prepared to take on – both for individual trades and your trading strategy as a whole. Deciding your risk limit is very important. Market prices are always changing and even the safest financial instruments carry some degree of risk. Some new traders prefer to take on a lower risk to test the waters, while some take on more risk in the hopes of making larger profits – this is completely up to you. It is possible to lose more times than you win and still be consistently profitable. It's all down to risk vs reward. 5️⃣Decide how much capital you have for trading Look at how much money you can afford to dedicate to trading. You should never risk more than you can afford to lose. Trading involves plenty of risk, and you could end up losing all your trading capital (or more, if you are a professional trader). Do the maths before you start and make sure you can afford the maximum potential loss on every trade. If you don't have enough trading capital to start right now, practise trading on a demo account until you do. 6️⃣Start a trading diary For a trading plan to work it needs to be backed up by a trading diary. You should use your trading diary to document your trades as this can help you find out what’s working and what isn’t.You don’t only have to include the technical details, such as the entry and exit points of the trade, but also the rationale behind your trading decisions and emotions. If you deviate from your plan, write down why you did it and what the outcome was. The more detail in your diary, the better. I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
4
How To Succeed In Your TradingFocus on one single trading strategy One thing that many people try and do is switch between strategies constantly. This is setting you up for failure, and if the concept of probabilities is truly understood, you will comprehend the reasons why a single strategy will work. Any strategy is not going to have a 100% win rate, so first you should attempt at getting 50% of your trades right. After that mastering a 2:1 Reward to risk ratio is what will make you profitable. Trying to juggle many strategies will have you working tirelessly, but not moving forward in any particular one. Less trading, more education Many people have the conception that spending countless hours in front of the screen looking for potential set ups is how it should be, however that is completely wrong in my eyes. I spend minimal time now looking at charts and set ups, I highlight key levels I want to look at, along with alerts, and simply wait for the market to head there. Time spent looking at charts should be simply for education and mastering your strategy through back testing or simply understanding previous data. Approach the market from a neutral position Anyone that knows me knows how big I am on trading psychology and how I believe it is the most important aspect of trading. Emotions in trading can be one of your greatest enemies as it can lead you to failure even after your success. There are scenarios where you can take trades and be in positive which will lead you to feel over confident, happy, and those will ultimately will lead to irrational decisions if you let them. Those emotions will make you believe you are better than the markets, or that you can outsmart them, ultimately leading your successful trade to turn into a failure. The same can happen when you feel the opposite and lack confidence to enter another trade due to a loss, or think have feelings of doubt. This is why the market needs to be approached by a completely neutral position. Once you understand that for every person on one side of a trade, there is someone on the opposite side, you will begin to understand that the market itself is just a whole bunch of neutral information moving in nobody’s favour. Write your goals Affirmations are great and something that has helped me in every aspect of my life and not just trading. It is very important to write down your goals in order to manifest them into reality. All ideas first begin in the mind, and then come into the physical. Your goals need to be solidified, definite, and written down in order for your mind and yourself to know exactly what you are going after. Every single day, you need to read your goals aloud, envision them in your mind with every bit of detail possible in order to bring them into the physical. In order to achieve a goal you need to arrive at the destination first in your mind. Relax There is no need to rush a single thing in your trading journey, and believe me take it from my experience, every time I tried to, I failed. People attend university for years before going out into a career which then takes many years before mastering it, yet people want to master trading in a year. Patience is required in all aspects of trading, whether it’s on the charts themselves, or with your strategy, or with your learning curve. It all requires patience. If you are going after trading as a serious life career which you aim to remain in, then relaxing and taking your time is the first step. Nothing great comes from rushing it, especially the markets. Know how to handle your trades Based on your strategy and the concept of probability there are a number of things needed in order to appropriately handle your trades. Firstly, don’t touch your stop loss. I cant say this enough, but stop losses are determined as the final barrier before the trade is invalid, and they are determine before entering the trade. If you find yourself moving your stop, ask yourself why. You will find out mostly its out of fear of losing your money, which is one of the 4 fears of trading. Accept your loss and let the trade stop out, you had it there for a reason. Also, don’t leave trades behind out of fear. If you have a strategy that you have confidently developed, you should understand that the overall should be a greater number of winners than losers, and you should not leave trades behind out of fear, because they can be the ones that perform the best and make up for the losers. Another thing to have in place is an appropriate strategy for exiting your trades. Many people have trades that are in profit, however due to the lack of knowledge on how to exit their trades, they still end up not profitable. You need to have a system on how to exit your trades appropriately and at what levels. Always remember, the profit running on a trade is not yours until its closed. Risk management Yes, I know you have heard it and read it a thousand times already, but you have no idea how important risk management is until the day you master it and recognise it was the single greatest thing holding you back from success. People can have amazing strategies, the best reward to risk ratios, but with the inappropriate risk management trust me it means absolutely nothing. I have seen people overleverage on a trade simply because it “looked too good” compared to other trades, only for it to be the worst of the bunch. I have seen people lose tremendous amounts of money and one thing I can promise you is not a single one of these people lost 100 trades in a row at 1% a trade. Every single one of them lost their entire accounts due to ONE trade that they married. Risk management should be one of your main areas of focus, because believe me if you have mastered it, even with an average strategy you are doing much better than someone with an exceptional strategy with no adequate risk management. Keep track of your performance The only way to improve in any aspect of life is to first recognise what needs change and then work on it. It is very important to actually understand your positives and negatives and have them all tracked. A journal is one of the first steps in order to look in the mirror. Being completely honest is the only way a journal will work, and lying is only lying to yourself. If you are after serious improvement you need to appropriately identify all your flaws in order to better them. You should never feel down or behind, remember trading the markets is one of the biggest psychological challenges one can face, and that is exactly why not everyone is suited for them. Instead see it as a challenge to better yourself and achieve the perfection and discipline you have always desired on and off the charts. Trading the markets will teach you lessons that you will carry with you throughout your entire life and not just on the trading floor.
COINBASE:ETHUSD
by opes_trading_group