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Riskreward

Risk Management: How to set a Take Profit (TP) for your trades Hello everyone: Today let's dig into an important topic of setting a Take Profit (TP). While many traders will often have different strategies and methods on a TP, let's take a look on my approach and style on this. ITs important to understand there is no right or wrong when it comes to setting a TP. ITs what you have in your plan and what makes sense to you as a trader. It should align with your strategies and trading style also. Some may take profit quicker and move on, while others hold for longer term. Understand that both methods can have drawbacks, it's what trading is, double edge. So, make sure we follow our plan and executive accordingly to our management. Otherwise we are just making emotional decisions again. Let's look at a few scenarios on how I would set a TP. Directly tie in TP is a SL. I usually will only enter a trade if I have 3:1 RR. Meaning risking 1% to gain 3% or more. Therefore my TP will almost always be 3 times of initial SL amount or room. Few TP scenarios: -Beginning of the the previous correctional structure -Double Bottoms/swings low area, watch for LTF reversal price action and correction When price breaks ATH, monitor the price action on the LTF for bearish reversal. I would want to see a trend change, rather than a pullback. Few things to consider: -Understand you will never enter at the lowest point, and exit at the highest point Make sure you have a plan before so you will not get into an emotional decision. Always know what you plan to do before it happens. No Right or wrong as long as you follow your original plan. You can of course in time modify your plan based on market conditions. Any questions, comments or feedback please let me know :) Thank you
OANDA:XAUUSDEducation
by jojofang0901
27
Celebrate the Chinese new year with BABA tendiesAlibaba has made a nice inverted head shoulders on the daily after coming down from an ATH of 319. You can also see the 21 ema (blue line) crossing over the 50 ema (black line). There is also a nice gap above the 280.97 level to 290. Seeing patterns form on the daily time frame, as well as an ema cross over is what you like to find when looking for an explosive move, the higher the time frame the more effective your technical analysis will be. Major resistance: 280.97, above this level there is a gap to fill to 290 Minor resistance: 273-274 zone Price target: I am planning on taking this trade to 290 and will watch to see how price reacts once the gap is filled, expect a pullback after the gap is filled
NYSE:BABALong
by thefinancialworld
1
Last Week Trades EURUSD OnlyLast week Feb 8 - Feb 12, I only took 3 trades out of the entire week only on EURUSD. My first trade I was looking for a somewhat small push back down but the liquidity above was greater and that was something I over looked. Not a big deal but now its some thing I learned. My Second trade I had the right idea but I calculated my entry a little early and I ended up getting stopped out. I knew my entry was they only thing that was wrong because of the schematic still playing out on Thursday. So I entered again I believe on a 15 or 30m institutional candle with minimal drawdown price moved down to the next institutional candle. I did miss the rally off the order block but it was a Friday and I just wanted to take my profits and leave. All together last week was a gain of 3.50%.
Short
by tazionn
2
Long CRM - SalesforceHi Folks, I'm new to charting so if there's any CMT's taking a look, please feel free to criticize. Anyways, on to the chart. I like the setup for CRM here. It appears a classic Island Reversal Pattern has completed and the prices are ready to move higher. I also like the risk reward ratio. Traders can risk down to the 50DMA with a reward potential up to the prior resistance. If resistance is broken then prices could reach the prior highs. So. you'll risk $15 for a $25 upside with potential to $41. I'll be entering a position tomorrow when the market opens. Thanks for looking and GLTA.
NYSE:CRMLong
by Breakout_Charts
Bitcoin Dominance vs AltsHello! Here we have a Bitcoin Dominance chart on 4 hour timeframe. What we can find from the picture: I have marked some with Red Circles . There is a bullish divergence on RSI (orange lines) shown on 4hr and also on daily chart. Which tells us that a possibly trend change could be close by. We did test the 200 Ema (red line) 2 times already but the bears got the hold like we can see from the price action. We have seen a crazy bull market (new money flowing in) with alts, Btc and stocks. I am getting little worried because of this. Everywhere you look there is something going 20% to 100% even in US small caps. Peoples speculation is at dotcom levels. I would suggest to slowly plan your future and possible exits if you see them fit, and look past all of the euphoria what is happening all around us. This is of course to you to decide. Right now we are on this trend line on the price and the RSI . I do think that we might need to go get some more speed again from the bigger weekly trend line which is little lower, around 60%. (Previous weekly analysis) We did already see a new Ath from Bitcoin yesteday but there clearly wasn't enough bulls. Otherwise we would have went to 50k. I still think alts has little more to go based on the previous assumption and also which one would you buy with 1000 bucks. 0,02 Btc (possible 20%) or 1000 to 10k pieces of shit coin? ( possible 40% to 100% RIGHT NOW). Point is Bitcoin is expensive and people see now only fast gains, free money everywhere. What I have understoond is that US economy is not really doing well right now and at the same time Stock markets are booming. They don't go 1 to 1 so be careful If you do trades use stop loss. Otherwise you will get your ass burned! -Jebu
CRYPTOCAP:BTC.DLong
by PalenTrade
3
Make profitable trading decisionsHi Fellow Traders The greatest tool in your arsenal is your Risk/ Reward rules when evaluating the potential expencency and outcome of each scenario. By using this to protect your account it may help you to survive long enough to be profitable. Risk/ reward is quite simple. If I risk $1 on a trade, I need to make on average $1.50 to be profitable. In other words, my risk is 1 and my reward 1.5, therefore it is a 1:1.5 risk/ reward ratio, which is acceptable to potentially enter a trade if it meets your criteria. You want to try an average between 1:1.3 and 1:1.7 when looking for trade opportunities. The Risk/ reward tool on Tradeview is excellent for evaluating and getting a proper picture of the potential upside and downside before making a decision. I hope you enjoy the video and that I have been able to contribute to your potential success as a trader. Please feel free to comment and reach out if you help. Regards Wayne_G
Education
by Wayne_G
1