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Riskreward

S&P500 - Bulls still not out of the woods ...S&P500 - Despite the optimism we're seeing in the markets today, I wouldn't go on a buying spree right away. Many setups have been popping up but I still believe we're in a bad phase right now and there is a high chance for markets to sell off and make new lows. What the catalyst might be, I don't know... Maybe Trump will not acknowledge the results ? Who knows What I do know is that it's possible we're in a Flat correction here (or next leg of a sideways Triangle) therefore be particularly careful because the potential sell off could be very sharp!
FOREXCOM:SPX500
by ElliottWaveBelgium
AUDNZD Swing Idea 10/30/2020The demand zone in which the price is ranging right now has already been tested 3 times as a Support. Logically, we can't blindly trust this Demand Zone and just place Buy Limits. The more a price level has been touched or tested, the more likely it is to be broken. Therefore, we will wait for clear rejections in lower timeframes to confirm the Bullish Volume. Although, if the price breaks our support and goes lower than the previous higher low, we would wait for a Clear Retest and look for Sells inside the Flip Zone.
by joseafab
RISK 2 REWARD ratio is the key I know almost every trader has asked themselves these questions: How come I keep losing?! WHY?! Why do I keep getting stopped out?! Why is it taking so long? ! Is it even possible?! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Today I have some good news for you maybe you already know this maybe you don't, but this is for those folks who do not know the power of a good Risk to Reward ratio. Let me tell something real quick you do not have a 80% winning rate not 70% I am going to say not even a 50% winning rate to be profitable ( Hold ON A MINUTE man HOLD the bus man... serious) dead serious. With a risk to reward ratio of 1:2.5 you only need to win 30% of your trades to be profitable ( see below ) SAY YOU execute 10 trades and you only win 3 so essentially 30% LOST:7 WON:3 Total loss: Total profit: 7 * 1 = 7 3 *2.5 = 7.5 Total profit - Total loss = +0.5 Now even though 0.5 is not a lot at least it's not a loss. But there are a few things extra to keep in mind : 1) Your risk to reward has to stay the same for the period of the 10 trades 2) Your lot size needs to stay the same 3) AND as possible try to keep the amount of pips the same for your ratio because it does not help if you win 3 trades and you decided to set one of your positions SL as 100 pips and its TP as 250 pips and the rest of the positions SL as 20 pips and TP as 50 pips. If you lose the the big trade and hit the SL of a 100 pips its gonna through everything out of wack. So be sure to try and keep everything as consistent as possible and it will be a matter of time before you see profits. Trade with H
by Trade_with_H
Entry Strategies using Support & Resistance ZonesBrief video tutorial discussing entry strategies using support and resistance zones. How I produce support & Resistance zones can be learnt from the live stream recording HERE With any trading indicator, it is vitally important to have a sensible entry strategy with entry, stop loss and enough risk to reward to the next support or resistance zone. It is also as important not to fudge your entry and stop to give a decent risk to reward. Frame your charts first with Support & resistance zone, put on your stop and your entry. Then the last thing to do is put on your risk to reward. I cover this in this video and show you how to use the Fibonacci extension tool to work out your risk to reward
CME_MINI:RTY1!Education
by PBratbyOfficial
Nat Gas - Classic patterns vs Elliott WaveWe can make the case for this being a rising Wedge Pattern or in terms of the Wave Principle, an Ending Diagonal fifth wave. Looking at the Wedge pattern, there's nothing wrong here and we can short if price goes outside the pattern. But there are two problems with this view according to the wave Principle : 1) Wave 4 did not enter wave 1 territory altough this can happen on rare occasions. 2) Proportions wise, wave 3 is bigger than wave 1 which is possible in case we have an Expanding Diagonal but because wave 4 is smaller than wave 2 here, I don't think that's the case. This then leaves us with the Extended fifth wave possibility I talked about on the last update. We can therefore expect something similar to this or possibly even much higher prices than 4.00 if it really starts to get extended.
NLong
by ElliottWaveBelgium
Here's How I Doubled My Money on Silvergate Capital Corp ($SI)I sold half of my position on a double of $SI yesterday. I'm now in a risk-free position for life. I bet only a small size, but I think small is the way to go for longevity in this game. I took this trade for two reasons: Fundamentals & Technicals. I'll break down both. The Six Most Important Fundamentals Firstly, the six most important fundamentals looked good. You can take a look at the fundamentals, here . The fundamentals are broken down into six categories Value Dilution Cash Debt Growth Effectiveness Here are some metrics for $SI: Value P/B: 1 P/E < 20 Dilution < 25 million shares out Cash P/C < 5 P/FCF < 5 Debt D/E: 7 Long-term D/E: 0 Growth Quarterly Revenue Growth > 5% Quarterly Earnings Growth > 20% Effectivness Return on Assets > 0% Return on Equity > 0% Return on Capital Employed > 0% These six fundamental criteria cover virtually all aspects of a stock's fundamentals, and it's the best way to get a clean, holistic view of a business. These six fundamental criteria all kinds of stocks, whether they are high-growth, value-based, dividend-paying, small-cap, etc Sometimes, businesses may have high debt (like this one). However, if they have good cash-flow, that, in some ways, balances the high debt. Why? Good cash-flows will be used to pay off the debt. On Risk And Relax , you can choose the fundamental factors that you think are the most important, and ignore the rest. This way, you can cleanly analyze a business without the noise. In this case, $SI had a good score of over 65% when considering all six fundamental criteria. Now, let's look at the technicals. The Most Important Technicals There are several technical indicators, but in my opinion, the most important "indicator" is market structure. In other words, is the price shows signs of a bottom? I want to see the price in the shape of a 'W'. And around April of this year, that's exactly what I saw. The Bottom Line All other technical indicators are fine, but they add noise. The goal should always be to subtract noise. And the best way to do this is to focus solely on price action (market structure) and the six key fundamentals. If both are a go, then I feel comfortable buying! So, that's what I did. I bought @ $9, and I sold half of my position when the price hit $18. I had the conviction to keep holding because of the fundamentals. I hope this helped. I also made a YouTube video on this investment. Check it out!
S
by realcapmillen
NZDUSD - Follow up to previous post This is a follow up to my previous post and is here simply to show the effectiveness of the Elliott Wave Principle and one way to apply it. We shorted this ending diagonal right after closing our longs because for 2 reasons : 1) We got an Ending Diagonal wave 5 which should be followed by a sharp reversal. 2) We got could count 5 waves up, and the wave principle tells us that a reversal should then follow. Here's how we played this with my subscribers: 14 Oct 18:13 :I'm shorting this one. 20pip risk is nothing 16 Oct 01:23 : Our short was a great idea and played out perfectly here. I'm going to close and take 2/3 of my profits and move stop to 6652 for the rest. 20 Oct 01:52 : I prepared the chart yesterday but didn't find the time to look it up today and sadly missed a nice opportunity to re-enter again on those one... Sorry 🙏 Let's now see if it can go outside this rising channel and below 6576 at which point we maybe can get a new shorting possibility. 20 Oct 17:09 : Testing lower channel line. If it stays sideways here, we could get a new short entry possibility.
by ElliottWaveBelgium
NZDCAD - Good R/R Set up - TRADE OPPORTUNITY Technical view of - NZDCAD - Whilst having fun doing my weekend analysis for the week ahead, I do this to plan my week ahead - I'd like to share a good trade opportunity for you for next week! Pattern - Head and shoulders / Bear Flag - Measuring the patterns both = to good Support areas. - If it goes above the areas of where the shoulder should be - the pattern of H&S is no longer validated - I would then concentrate more on the Bear flag formation building, for further confirmation you could wait for the break out and trade the pull back or get in where you think is appropriate following your trade plan. Within my analysis - I have clarified where I'd be taking profit - Profit 1 & 2, I tend to scale out of trading taking profits due to psychological reason, which there are great books out there and mentors to help you with this - if you're interested within learning more about this - message privately. Again, follow what your plan - I will be only taking 60-70% of my profits at profit 1 area (Depending on price action at that moment of time) and the rest at profit area 2. (You could even go through lower time frames for day trading set up opportunities - Higher time frame = Shorter time frame movement). Key tips: All alerts and don't forget to put an appropriate STOP. It's good R/R trade. Remember: Just a trade idea, not a recommendation. Have a great week ahead! All the best, Trade Journal
by Trade_Journal