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Riskreward

GBPUSD Good buy opportunity!Based on the chart, price have reached a major support area and a false breakout have happened. Also based on this false breakout we can conclude that there is strong demand at this area which can be good sign of buyers strength. Even more based on candlesticks, we can notice a good bullish Engulfing formed here 3 days ago while we can see no sign of sellers power. So based on this scenario I opened a buy position with a great risk reward ratio which can be about 1:4. Note: As always please take risk management rules into consideration before opening any position on the market. Good Luck!
Long
by Brian_Philips
NAKD Revival Pattern Huge Risk RewardI'm starting to really like NAKD for a revival play after a significant double bottom off the 200-day moving average around $0.48. There is now a clear defined risk-reward with a stop below the double bottom low. Technically price is showing signs of recovery with the 200-day moving average holding nicely resulting in a strong double bottom and higher lows since then. Additionally, the 20-day moving average has recently crossed over the 50-day. Fundamentally this company recently received shareholder approval to fully divest from its brick-and-mortar interests and pivot to pure e-commerce. They are also sitting on $270m of cash and no debt which means they are well-positioned to make strategic investments and acquisitions. On a news catalyst this can easily run to $3+, but of course trade your plan and take profits when it makes sense for you.
NLong
by UnknownUnicorn20061862
9
EURJPY good opportunity for buyers!Based on the chart, price dropped on a major support area and a good rejection completed (We can see a very good bullish engulfing candle on the chart!). The rejection was so strong and it can be a good sign of buyers power at this area. Also we have to consider that we are in a uptrend situation. So based on these scenarios opened a buy position with a good risk reward which is about 1:3. Note: As always please take risk management rules into consideration before opening any position on the market. Good Luck!
Long
by Brian_Philips
DOGE/USDT Indecision!!Hello Community! Let's take a look at DOGE on the Daily TF. I went ahead and mapped the most important S/R zones on my chart, shown by the horizontal lines. Right now it looks like it's in indecision. You can consider opening a long position at the white or red support lines shown or wait until the top greenish line is touched and open a short. Make sure either option you choose you calculate your risk/reward. The Crypto Market follows BTC movements so at the end of the day it comes down to what project you have faith in the most. The reality is some coins will have stronger movements ( Bullish or Bearish ) based on how BTC moves. Don't trade with what you're not willing to lose. Love it or hate it, hit that thumbs up and comment. It'll be greatly appreciated! This is not financial advice. Safe Trading Calculate Your Risk/Reward & Collect! Simplicity Wins
by rnaofs
Using Risk Management to Not Lose Money Risk Management In this article we are going to talk about the most exciting topic of risk management! Sarcasm aside, this is probably the single most important lesson that any trader or investor can ever learn. Warren Buffett famously said: "Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1." So, if it is good enough for the most successful investor of all time, it is good enough to write a post about. Now, this quote does not apply to every single trade; no one trades without taking losses. But this is more about mindset, how to strategize, and your performance overall. In fact, with what you are about to learn, you will see that it is actually possible to lose more trades than you win while STILL being a profitable trader. We will get to the actual math/strategy in a moment. First, a short word about psychology. Nothing makes a trader lose more money than not having a well thought out plan or not sticking to it. We need to make our strategy first so that we can do it logically, and without emotion. This is easier to do beforehand because we haven’t actually put any money in the market yet. So, what is it that we need to know? What is my total account size? What am I willing to lose per trade? What is my Stop Loss? What is my Position Size? What is my Risk to Reward Ratio? If you cannot answer these questions then it is not a good idea to click the “buy” button! Unless you just want to gamble and throw money away. Question 1 - What is my total account size? Probably the easiest question for you to answer. Account size is the amount of money that you have in the market. Personally, I like to split my total account size into two parts. One part for longer term HODLing. One part for short-mid term swing trading. For my calculations, I forget about the HODL account and only look at the money in the trading account. I personally do not day trade. If I get into a position, I expect to be in it for 1-4 weeks. Obviously, this rule is flexible based on market conditions. Question 2 - What am I willing to lose per trade? This one is a bit more subjective because it comes down to how risk averse you are. It is generally accepted that you should risk between 1-5% of your account per trade. For me, anything above 3% is higher than I like, so I stick to 1-2% and sometimes 3. So, if you have a trading account of $10,000 and you want to risk 1%, you are risking $100: $10,000 x .01 = $100 To be clear – Risking 1% of your account does NOT mean using 1% of your account each trade. You are not spending $100 on each trade. Risk =/= position size. Risking 1% means that if your Stop Loss gets hit you lose $100. Question 3 - What is my Stop Loss? Firstly, what is a Stop Loss? A Stop Loss is an order that is placed to automatically close you out of a position should the price be hit. You should place your Stop Loss order right after you open your position. This is also a good time to place another order to close out your position at your target price. But where do you put the Stop Loss? A Stop Loss is best placed at a price that invalidates the reason you got into the trade in the first place. Sometimes this is, very creatively, called the “Invalidation Level”. For example, if you are trading a breakout to the upside, and then the price of your crypto shoots down in the other direction past your support levels, it is no longer a breakout and you should exit the position. To restate this in a different way, this level should not be arbitrary. There is no reason to automatically put your Stop Loss at 6.7138%, or any other random number, of your entry. The level you chose should be based on Technical Indicators; like a base of support, a Fibonacci level, or a previous high. This is because the market does not care about your arbitrary values. The market is made up of people and whales (who, believe it or not, are also people), and they, the ‘Market’, care about TA. Here is another example of a more short term trade to the downside. You could be more aggressive with the Price Target considering the resistance was so weak, but this is just an example to illustrate my point. (MACD looks nice there too. Learn more about that HERE ) Question 4 - What is my position size? In order to calculate position size we need to know a two different things: Risk Per Trade - 1 to 5% Distance from entry to the Stop Loss in percentage terms So the equation is Position Size = (Total Trading Account Size X Risk Percentage)/Distance to Stop Loss from entry For example, if you have a $10,000 account and you want to risk 2% while your Stop Loss is 10% away from your entry: ($10,000 X .02)/.1 = $2,000 Position Size while only risking $200. One thing to note here is that the closer your Stop Loss is to your entry, the larger Position Size you can trade with. So if you move the stop up to 5% away from your entry: ($10,000 X .02)/.05 = $4,000 Position Size while still only risking $200. Naturally, a larger position gives you more potential profit. (Don’t take this to mean use margin. I personally don’t use margin for Crypto and would recommend that most people don’t either.) Now that we have the position size, we should determine if the trade is worth getting into by finding your Risk to Reward Ratio. Question 5 - What is My Risk to Reward Ratio? The Risk Reward Ratio, sometimes simply known as R, is the ratio between your potential profit and potential loss. Reward/Risk = R So if you open a position where you can potentially lose $100, and you can potentially profit $300, then your trade has an R of 3. If you click on the Long or Short Position button in TradingView, you can move the sliders up and down and see what your R will be in real time. Double clicking on this will take you to the settings where you can input exact values. Since you set your Stop Loss at a logical point, one based on TA and not a whim, you should do the same with your Price Target. So why is having a high and, more importantly, realistic R a good thing? Because then you can actually lose MORE trades than you win and STILL be profitable. If you know your average R you can easily calculate the minimum win rate you must have to stay profitable over the long term: (1 / (1+R)) X 100 Let’s say your average R per trade is 2.5: (1/(1+2.5)) X 100 = 28.5% Meaning that you only need to win 28.5% of the time to not lose money overall. Because of the nature of this equation as your R increases, your required winrate to stay profitable decreases. Final Thoughts So, now that you have asked yourself, and have answered, the five big questions you are ready to open a trade. Remember why we do this. We should not expect to win every trade. But you must set yourself up so that when you do lose there is minimal damage to your account. Understanding the basics of Risk Management is the tool you need to keep your losses small, and account intact. Please let me know if you have any questions and if you like it, please hit the thumbs up and be sure to follow for more! Links to my Fibonacci Retracement, RSI, and MACD guides are below. Give them a read for more information!
Editors' picks
BITSTAMP:BTCUSDEducation
by zsamochin
55
XAGUSD Down ward expectation!Base on the chart, price reached a major resistance area and a strong rejection have happened on 3rd of June and now the market reattempt to get its previous price but it failed which can be good sign of weakness on buyers at this area and on the other side, it can show the strength of sellers at this area. So based on this scenario I prefer to be seller at this area with a good risk reward ratio about 1:4 which means low amount of risk and good potentiality of profit. Note: As always please take risk management rules into consideration before opening any position on the market. Good Luck!
FOREXCOM:XAGUSDShort
by Brian_Philips
GBPUSD Sounds a good buy opportunity!Based on the chart, we can found a very good market range since about 26 days ago! So we should have a good strong support and resistance which took price among them. An now price is on the support zone and remember before this ranging market, we had a good uptrend movement! So I opened a buy position at this support area and will hold it until it reaches to the specified areas on the chart which can provide me a reasonable risk reward ratio(about 1:3.5) Note: As always please take all risk management rules into consideration before opening any position on the market. Good Luck!
Long
by Brian_Philips
ETH/USDT - considerable potential 67% movement after correctionHello, Traders! The interest in altcoins begins to fall gradually. Traders are progressively fixing their positions in altcoins in favour of BTC, so Bitcoin's dominance begins to increase incrementally. In such a situation, it is possible to look for ETH purchases on a deep correction, after the stops of aggressive buyers are collected. It's best to wait for the price to move into the $1960 - $2140 zone and search for buy entry there. A stop-loss can be placed below the level of $1740. The targets for such purchases will be $2488 $2800 $3000 $3200 $3590 Perfect risk/reward ratio of 3.60! Good luck and watch out for the market! P.S. This analysis is created for educational purposes and shall not be considered a piece of financial advice
COINBASE:ETHUSDLong
by UnknownUnicorn10064030
As requested, here it is my analysis on MTNB!As another request, I’ll analyze MTNB today! This time for @D0981237654! The stock has low liquidity, so, the intraday chart is hard to read. But we have some good signs in the daily chart. We have an inverted head and shoulders + an advanced breakout on the RSI. In the weekly chart we are above an interesting support level. If I had to do anything here, I would buy, set a stop-loss under 0.72 and aim for the 1.70, or even the 2.20. Good risk-reward ratio! If you liked this trading idea, remember to click on the “Follow” button to get more trading ideas like this, and if you agree with me, click on the “Agree” button 😉. See you soon, Melissa.
AMEX:MTNB
by UnknownUnicorn21312077
4