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Riskreward

🔥 NEAR Big Upside Break Out Potential: Patience!NEAR has been consolidating inside this pattern for well over a year on this point. I'm anticipating big volume to appear once we will break out. Keep in mind that we will wait for the price to confirm the break out of the triangle. This signal will get invalidated once NEAR falls through the support. Stop just below 1$, target at the August 2022 highs. This results in a trade with big upside potential and a very nice risk-reward of 15.61
Long
by FieryTrading
9
🔥 ARBITRUM Bearish Support Break OutAs of yesterday, ARB has fallen through a strong area of support which held the bull trend going for over a month. In my view, there's a high possibility that ARB will continue to fall, potentially even retesting the June lows around 0.92 ARB is quite oversold at the moment, so we're going to anticipate a bullish correction towards 1.19 or so. Stop just above 1.21 for an optimal risk-reward ratio. A more risk-averse trade would be to take (partial) profits around 1$.
Short
by FieryTrading
8
VTRS - Potential U-MLH breakout to the CenterlineThe Orange down sloping Fork did it's job very good so far. Even the (yellow) sliding parallels gave us good information how wide the shift is. And we even got some confirmation from the divergence Now VTRS is nagging at the U-MLH. Also nice to see how this stock is stair stepping towards the Center line (orange lines). Is it too late to jump in? In my trading it's never too late, if I have a good risk/reward. However, we must be aware that the "Last Sellers Zone" is right in our way. Are the sellers still sitting there? Let's see if the U-MLH will break out, smack the sellers and rockets to the Center line.
NASDAQ:VTRSLong
by Tr8dingN3rd
MASTERING RISK MANAGEMENT IN FOREX📈🛑 Mastering Risk Management in Forex Trading 🛑📈 (1/6) Hey fellow traders! Let's talk about a critical aspect of successful #ForexTrading - Risk Management. It's the compass that guides us through the unpredictable market waters. Here are some key principles to keep in mind: (2/6) Rule #1: Set Your Risk Tolerance 📊💰. Determine the maximum % of your trading capital you're willing to risk on any single trade. This shields you from overexposure and keeps emotions in check, crucial for long-term success. #RiskManagement #ForexTips (3/6) Rule #2: Use Stop Loss Orders 🛑📉. Always, always, ALWAYS set stop-loss orders for your trades. This helps limit potential losses and prevents your account from taking a big hit if the market goes against you. #StopLoss #ForexTrading (4/6) Rule #3: Diversify Your Trades 🌐📊. Don't put all your eggs in one basket. Distribute your trades across different currency pairs and strategies. This reduces the impact of a single bad trade on your overall portfolio. #Diversification #ForexRisk (5/6) Rule #4: Understand Position Sizing ⚖️📈. Calculate the appropriate position size for each trade based on your risk tolerance and the distance to your stop loss. This keeps your risk consistent and prevents you from risking too much on one trade. #PositionSizing (6/6) Rule #5: Stay Informed & Adapt 📚🔄. The Forex market is dynamic. Keep learning, stay updated on market trends, and be ready to adapt your strategies. Even with solid risk management, remember that losses are part of the game. Stay disciplined and stay patient. #ForexStrategy Remember, successful Forex trading isn't about avoiding losses entirely, but rather managing them smartly. Keep these risk management principles in mind to pave the way for more consistent and sustainable trading success. Happy trading! 📊💹 #ForexSuccess #RiskAwareness
Education
by AMBAFX
🔥 Bitcoin Lost The Uptrend: Crash Alarm! 🚨If you enjoy this analysis, please like and follow. Recently I've made several analyses on Bitcoin. In general, I was more bearish than bullish based on historical pre-halving year statistics. Furthermore, I made several analyses on Bitcoin's historically low volatility where I argued that a big move was coming to the markets very soon. WIth the stock markets falling and BTC trading on edge, are we going to see a big dump soon? Maybe. I'd like to see a move below 28k first to increase the probability of this break out being real and not just a wick below support where bulls will step in and V-shape reverse to 30k. Still, a move towards 20k is in the cards. Since the 15.5k lows I argued that the bear market lows are in, and I still hold this opinion. The trade on the chart has a very decent risk-reward ratio, even for a big asset like BTC. Time will tell. Please share your thoughts in the comments🙏
Short
by FieryTrading
37
🔥 SUSHI'S Best Trade You Will Make This YearSUSHI has found very strong support at the 2020 lows a couple of weeks ago. Since then, SUSHI has been seeing strong gains. This trade is based on the idea that SUSHI's bear market low is in and that we will generally only go up for the foreseeable future. I'm expecting a minor correction over the coming weeks, hence the entry at 0.7, stop below the May lows, target at 23$. This is a long-term trade and can take another 2 years to hit the profit target. Nevertheless, a risk-reward of >100 is incredible and can lead to some serious gains.
Long
by FieryTrading
13
🔥 SHIBA Bearish Channel: Bear Market Bet!SHIBA has a very decent over the last month or so. It's likely that we get some kind of reversal in the near future. I'm going to increase our bearish chances by waiting patiently for SHIBA to reach the top resistance of the channel. Yes, this trade playing out would require a continuation of the bear market for the next few months. This could also be considered as a hedging trade. Stop just above 1400, target at 500, results in a very decent R/R of 7.92
Short
by FieryTrading
13
🔥 CLV Best Risk Reward Trade Of The Year?CLV appears to have broken out of a 2 year downtrend. This could be the starting signal of a multi-year bullish trend. In order to confirm the break out we're going to wait patiently for a daily candle to close above 0.048. Once we made the entry, stop below the most recent swing lows, target at 2$. This allows us to build a massively reward trade with a potential risk-reward of over 145, one of the best trade of this year. Keep in mind that this is a long-term position and could take 1-2 years to play out.
CLong
by FieryTrading
23
🔥 SXP Crazy Bounce Idea: Support + Bullish DivergenceSXP seems to have found (temporary) support alongside the diagonal purple support line drawn on the chart. This reversal trade idea is based on the idea that this support will hold and cause a bounce, helped by the bullish divergence that's apparent on the RSI. The high of the last couple of days is around 0.335, so we're going to wait for a daily candle to close above that area to initiate the trade. Stop under the recent lows. With a target at the April highs we can construct a very good trade with extremely high Risk-Reward.
Long
by FieryTrading
16
🔥 ID Bullish Break Out After Months Of SellingIf you enjoy this analysis, please give it a like and a follow. ID is one of the newer tokens on Binance. At the start of the listing it showed some strength, but has sadly been selling for months at this point. However, ID has broken out of a one month downtrend by breaking through a diagonal resistance line, see chart. My assumption is that, with some luck, we can at least get back to the May highs. For an optimal risk-reward I'm betting on a reversal in the short-term, but not below the most recent swing lows of around 0.248. This results in a very good risk-reward of well over 22.
Long
by FieryTrading
29
🔥 MANA Best Long-Term Trade For Next Bull-Run: High Gains🚨If you enjoy this analysis, please give it a like and a follow. MANA has been losing value for nearly 2 years at this point. However, I anticipate that there's some decent money to be made on MANA in case this falling wedge pattern plays out as I expect. MANA looks weak, and will likely lose more value in the coming weeks/months. I'm going to be very patient for MANA to see more selling and step in around the bottom support of the falling wedge. Stop around 10% below the wedge's support, target at 5$. This results in a massive risk-reward of almost 95. If this plays out, this trade can be your best trade of the decade with a huge 95x return on your risk.
Long
by FieryTrading
23
🔥 XRP Ultimate Game Plan For The Next Bull-RunIf you enjoy this analysis, please give it a like and a follow. With XRP's lawsuit behind us, a lot of the bearish sentiment has been cleared. Still, it appears that this event had little staying power with the bulls, since XRP has given up around half the gains it made shortly after the SEC news. Nevertheless, I'm long-term bullish on XRP. As seen on the chart, XRP is seemingly trading in a parallel channel. The top two resistance lines are direct copies of the bottom support line. I'm going to wait for XRP to drop towards the bottom support, and ideally bounce from it. My target for the next bull-run is placed at 7$, stop just below the channel's support. This will give us a massive risk-reward of almost 110, which is a serious money maker if it plays out well. Keep in mind we can hit the bottom support further away in time, which moves the entry up.
Long
by FieryTrading
36
Are You Taking the Right Risks in Trading? Best RISK Per Trade What portion of your equity should you risk for your trading positions? In the today's article, I will reveal the types of risks related to your position sizing. Quick note: your risk per trade will be defined by the distance from your entry point to stop loss in pips and the lot size. 🟢Risking 1-2% of your trading account per trade will be considered a low risk. With such a risk, one can expect low returns but a high level of safety of the total equity. Such a risk is optimal for conservative and newbie traders. With limited account drawdowns, one will remain psychologically stable during the negative trading periods. 🟡2-5% risk per trade is a medium risk. With such a risk, one can expect medium returns but a moderate level of safety of the total equity. Such a risk is suitable for experienced traders who are able to take losses and psychologically resilient to big drawdowns and losing streaks. 🔴5%+ risk per trade is a high risk. With such a risk, one can expect high returns but a low level of safety of the total equity. Such a risk is appropriate for rare, "5-star" trading opportunities where all stars align and one is extremely confident in the positive outcome. That winner alone can bring substantial profits, while just 2 losing trades in a row will burn 10% of the entire capital. 🛑15%+ risk per trade is considered to be a stupid risk. With such a risk, one can blow the entire trading account with 4-5 trades losing streak. Taking into consideration the fact that 100% trading setups does not exist, such a risk is too high to be taken. The problem is that most of the traders does not measure the % risk per trade and use the fixed lot. Never make such a mistake and plan your risks according to the scale that I shared with you. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
15
Guard Your Funds: Only risk what you can afford to lose.🎉 Risk Management tip for Vesties and @TradingView community! 🚀 😲 We all know the saying "only risk what you can afford to lose," but do you know the powerful impact it can have on your trading journey? 🤔 In the ever-evolving world of cryptocurrency and futures trading, one fundamental principle stands as the cornerstone of profitable and sustainable trading journeys: Only risk what you can afford to lose. Embracing this essential concept is crucial for preserving capital, maintaining emotional stability, and cultivating a disciplined approach to risk management. In this article, we will delve into the significance of operating money and risk within the confines of one's financial capacity and explore the key pillars that underpin this approach. Understanding Risk Tolerance and Capital Allocation: 1. Assessing Individual Risk Tolerance: To truly understand one's risk tolerance and establish a robust risk management strategy, traders are encouraged to engage in a thought exercise that involves imagining potential losses in tangible terms. Visualize throwing money into the bin or burning it completely, purely to experience the feeling of losing money. This exercise may seem unconventional, but it serves a crucial purpose: it helps traders gauge their emotional response to monetary losses. During this exercise, consider the two extreme scenarios: the first being the largest amount of money you can lose without causing significant distress, and the second being the maximum amount of loss that would completely devastate you financially and emotionally. These two amounts represent your Fine Risk and Critical Risk , which reflects the sum you are willing and able to lose over a specific period of time without compromising your financial well-being. 👉 The next step involves breaking down the Fine Risk into smaller, manageable parts. 🔑 Divide the Fine Risk into 10 or even 20 equal parts, each representing the risk amount for every individual trade. This approach is designed to create a safety net for traders, especially when they encounter unfavorable market conditions. For instance, imagine a scenario where you face five consecutive losing trades. With each trade representing only a fraction of your Fine Risk, the cumulative loss remains relatively small compared to your risk capability, providing emotional resilience and the ability to continue trading with confidence. By splitting the Fine Risk into smaller portions, we can safeguard their capital and ensure that a string of losses does not result in irreversible damage to our trading accounts or emotional well-being. Additionally, this approach promotes a disciplined and structured trading mindset, encouraging us to adhere to their predefined risk management rules and avoid impulsive decisions based on emotions. Remember, risk management is not solely about avoiding losses but also about preserving the means to participate in the market over the long term. 2. Establishing a Risk-to-Reward Ratio: The risk-to-reward ratio is a critical metric that every trader must comprehend to develop a successful trading system. It is a representation of the potential risk taken in a trade relative to the potential reward. For a well-balanced and sustainable approach to trading, it is essential to ensure that the risk-to-reward ratio is greater than 1:1.10. A risk-to-reward ratio of 1:1.10 implies that for every unit of risk taken, the trader expects a potential reward of 1.10 units. This ratio serves as a safety measure, ensuring that over time, the profits generated from winning trades will outweigh the losses incurred from losing trades. While there is a popular notion that the risk-to-reward ratio should ideally be 1:3, what truly matters is that the ratio remains above the 1:1.10 mark. Maintaining a risk-to-reward ratio of at least 1:1.10 is beneficial for several reasons. Firstly, it allows traders to cover their losses in the long term. Even with a series of losing trades, the accumulated profits from winning trades will offset the losses, allowing traders to continue trading without significant setbacks. Secondly, a risk-to-reward ratio higher than 1:1.10, combined with proper risk management and a well-executed trading system, enables traders to accumulate profits over time. Consistently achieving a slightly better reward than the risk taken can lead to substantial gains in the long run. 3. Determining Appropriate Position Sizes: Once you have a clear understanding of your risk amount and risk-to-reward ratio, you can proceed to calculate appropriate position sizes for each trade. To do this, you can use a simple formula: Position Size = (Risk Amount per Trade / Stop Loss) * 100% Let's take an example to illustrate this calculation: Example: Risk Amount per Trade: $100 Risk-to-Reward Ratio: 1:2 Stop Loss: -4.12% Take Profit: +8.26% Using the formula: Position Size = ($100 / -4.12%) * 100% Position Size ≈ $2427.18 In this example, your calculated position size is approximately $2427.18. This means that for this particular trade, you would allocate a position size of approximately $2427.18 to ensure that your risk exposure remains at $100. After executing the trade, let's say the trade turned out to be profitable, and you achieved a profit of $200. This outcome is a result of adhering to a well-calculated position size that aligns with your risk management strategy. By determining appropriate position sizes based on your risk tolerance and risk-to-reward ratio, you can effectively control your exposure to the market. This approach helps you maintain consistency in risk management and enhances your ability to manage potential losses while allowing your profits to compound over time. Emotions and Psychology in Risk Management: A. The Impact of Emotions on Trading Decisions: Emotions can significantly influence trading decisions, often leading to suboptimal outcomes. Traders must recognize the impact of emotions such as fear, greed, and excitement on their decision-making processes. Emotional biases can cloud judgment and result in impulsive actions, which can be detrimental to overall trading performance. B. Recognizing and Managing Fear and Greed: Fear and greed are two dominant emotions that can disrupt a trader's ability to make rational choices. By developing self-awareness and recognizing emotional triggers, traders can gain better control over their reactions. Implementing techniques to manage fear and greed, such as setting predefined entry and exit points, can help traders navigate turbulent market conditions. C. Developing a Disciplined Trading Mindset: A disciplined trading mindset is the bedrock of successful risk management. This involves adhering to a well-defined trading plan that outlines risk management rules and strategies. By staying committed to the plan and maintaining a long-term perspective, traders can resist impulsive actions and maintain discipline during times of market volatility. D. Techniques for Avoiding Impulsive and Emotional Trading: To avoid impulsive and emotional trading, traders can employ various techniques. Implementing cooling-off periods before making trade decisions allows traders to gain clarity before acting. Seeking support from trading communities or mentors provides valuable insights and helps traders stay grounded. Utilizing automated trading systems can reduce emotional interference and ensure trades are executed based on predefined criteria. In the world of cryptocurrency and futures trading, the fundamental principle of "only risk what you can afford to lose" remains the cornerstone of successful trading. Embracing this concept is essential for preserving capital, maintaining emotional stability, and cultivating a disciplined approach to risk management. Understanding individual risk tolerance and breaking down total risk into smaller portions allows traders to navigate unfavorable market conditions with resilience. Maintaining a risk-to-reward ratio above 1:1.10 ensures that profits outweigh losses over time, while determining appropriate position sizes enables effective risk control. Emotions play a significant role in trading decisions, and managing fear and greed empowers traders to make rational choices. Employing techniques to avoid impulsive trading, like cooling-off periods and seeking support, reinforces a disciplined trading mindset. In conclusion, adhering to the principle of only risking what you can afford to lose leads to sustainable success in the dynamic trading world. By implementing effective risk management practices, traders enhance their chances of achieving profitability and longevity in their trading journeys. 📝👋 Feedback is super important to us! 😊 We would absolutely love to hear your thoughts and comments about the article. 🧐 Did you find the information helpful and well-explained? 🤔 Your feedback means a lot to us and will help us improve our content to provide better insights in the future. 😇 Thank you so much for taking the time to share your thoughts! 🙏 We're excited to hear from you! 💬
INDEX:BTCUSDEducation
by Vestinda