Stoploss
What are the ways to profit from choosing an exchange wisely?Previously, we wrote about the free bonuses that exchanges provide us and how they ensure the speed of transactions and minimal slippage . In this idea we will talk about the interface of exchanges, the terminal and what are the main types of orders that should be on any terminal nowadays.
An interface of a cryptocurrency exchange should be user-friendly. We won’t use any product or service which repels us by its “packaging” on first impression. So let's check the most common mistakes and so called red-flags that exchanges make in their interface:
Cluttered Interface. This can make it difficult for us as users to navigate the exchange and find the information we need
Poor Navigation. If we can't easily find what we're looking for, we're likely to become frustrated and leave the exchange. It's important for exchanges to have clear and intuitive navigation
Lack of Mobile Optimization. You have already known all the importance of mobile-optimized interface. (Mobile devices were responsible for 43% of all cryptocurrency transactions in 2022)
Confusing Terminology. Cryptocurrency can be complex, especially for newbies. It's important to use clear and simple language to help everyone understand the exchange
Slow Load Times. Finally, slow load times can be a major issue for cryptocurrency exchanges. If we have to wait too long for pages to load, we are going to live very soon
In a current market with many “players” it's hard to get a user with only a quality design and interface and here we come to another important point for traders - types of orders and options for it . It is important to have many different types because it allows us to execute trades in a way that best suits trading strategy and risk tolerance. Here is the list of the most popular and in the meantime significant ones:
1. Market order: buy or sell a given instrument at the market price. The price for these types of orders is defined as the best price available on the market at the point of time the order is being placed. Since the price changes constantly, the total price and fees are provided as estimates rather than exact values.
2. Limit order: execute a trade at a specified price or better (limit price). A Limit order to buy would be at the limit price or lower, and a Limit order to sell would be at the limit price or higher.
Subtypes of limit orders:
Good-Till-Cancelled - lasts until the order is completed or canceled.
Day - automatically expires if not executed on the day the order was placed.
Good-Till-Date/Time - automatically expires at the specified date and time.
Fill-Or-Kill - must be executed immediately in its entirety; otherwise the entire order will be canceled
Immediate-Or-Cancel - must be executed immediately. Any part of an IOC order that cannot be filled immediately will be canceled.
3. Scaled orders: you can set multiple orders at once. This lets you implement the most sophisticated trading strategies with ease. For example, if you'd like to consistently sell portions of some currency in case its price is increasing. Usually, you would have to create a whole lot of sell orders manually, specifying the desired amount, and the price each time. With Scaled orders, you can noticeably speed up this process.
Now a little bit about options:
A Stop-loss option on your orders helps with minimising risks attached to trading. This option is available for Market and Limit orders with a preselected Stop option, which ensures that your order will be placed as soon as the price reaches a certain value, called the Trigger price.
A Take-profit option on your orders helps with consolidating your gains from trading. This condition is available for Market and Limit orders with a preselected 'Stop' condition — a condition that ensures that your order will be placed as soon as the price reaches a certain value, called the Trigger price.
A Post only option ensures that your limit order will be added to the order book and not match with a pre-existing order. If your order would cause a match with a pre-existing order, your post-only limit order will be canceled. The 'Post' only option guarantees that you will pay the maker fee and not the taker fee unless matched with a hidden order.
A Reduce only option enables you to create buy and sell orders meant to reduce an existing position without opening an opposite long or short position worth more than the current value of your leveraged assets. This essentially means that you will not be able to execute more than the size of your position, allowing you to trade without risking over-exposure of your assets.
In conclusion, it’s crucial for you to choose exchanges that have a user-friendly interface and a variety of order types. It can help execute trades more efficiently and with greater precision, leading to a better overall trading experience.
Thanks for reading! Write in a comment what other important points you pay attention to when choosing an exchange
GOLD : What Should Be Ideal Risk Reward Ratio OANDA:XAUUSD
A good risk/reward ratio could be seen as greater than 1:3,
where you would risk 1/4 of the overall potential profit.
For trading to prove profitable in the long term, a trader should not typically risk their capital for a lower risk/reward ratio,
as this will mean that half or more of their investment could be lost.
The risk/reward ratio marks the prospective reward an investor can earn for every dollar they risk on an investment. Many investors use risk/reward ratios to compare the expected returns of an investment with the amount of risk they must undertake to earn these returns. A lower risk/return ratio is often preferable as it signals less risk for an equivalent potential gain.
Consider the following example: an investment with a risk-reward ratio of 1:7 suggests that an investor is willing to risk $1, for the prospect of earning $7. Alternatively, a risk/reward ratio of 1:3 signals that an investor should expect to invest $1, for the prospect of earning $3 on their investment.
Traders often use this approach to plan which trades to take, and the ratio is calculated by dividing the amount a trader stands to lose if the price of an asset moves in an unexpected direction (the risk) by the amount of profit the trader expects to have made when the position is closed (the reward).
KEY TAKEAWAYS
The risk/reward ratio is used by traders and investors to manage their capital and risk of loss.
The ratio helps assess the expected return and risk of a given trade.
In general, the greater the risk, the greater the expected return demanded.
An appropriate risk reward ratio tends to be anything greater than 1:3.
EUR/USD : Euro/Usd Trading CycleOANDA:EURUSD
Price is trading In Channel Up , Price is making Higher high And Higher Lows
Possible price will retest lower trendline to gain further momentum
EMA is supporting Buyer's
Breakout either side of channel will tell the weekly trend
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here are 4 basic stop-loss methodsStop loss is a trader's least favorite word
But it is a condition for long-term survival in the market
Most traders have a confused or wrong understanding of stop loss
There are two types of traders who lose more than 50% of their money
The first type, the traders who don't stop-loss, they simply don't recognize what is the point of stop-loss?
Stop loss may be a new mistake, but not stopping is certainly a mistake, and although most people are reluctant to take a loss of capital, given the limited time and money available, it is wise to trade a small local loss for a big picture initiative.
The second type of traders, the indiscriminate stop-loss traders, after taking specific losses because of non-stop-loss, go to the other extreme, indiscriminate stop-loss.
This can lead to an account with less and less money and then back to the same old path of not stopping and swinging between stop loss and no stop loss over and over again.
The correct stop loss is your seat belt when driving, not to ensure that you will not necessarily crash, but to ensure that you crash, the damage is reduced to a minimum, the correct stop loss in order to sustained and stable profits in the market, before entering the transaction has a complete trading strategy, and clear stop profit and stop loss position in advance, follow me, so that part of the people first learn to trade.
here are 4 basic stop-loss methods
1.Fixed point or stop loss percentage.
2.Stop loss at support or resistance positions.
3.Stop Loss at Breakout Level.
4.Trend or swing highs and lows.
XAUUSD : Gold SVB Ralley Near to EndOANDA:XAUUSD
Gold is trading in extreme bullish pattern
Gold is rallied more than 1000 pip's in last 1 week
Big reason is downfall of banking sector collapse of SVB and other banks
people shifting money in precious metal like gold
1865 is touching of upper trendline of rising wedge
Rising wedge is a bearish reversal pattern
Gold will target 1920 area and in extension 1890 area this month
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RISK MANAGEMENT STRATEGIES There are several risk management strategies that can be used to help mitigate potential losses and increase the chances of success in any investment or trading endeavor. Here are a few common risk management strategies:
Diversification is an essential risk management strategy that involves spreading your investments across different markets, asset classes, and securities. The goal of diversification is to reduce the overall risk in your portfolio by minimizing the impact of any single investment or market on your portfolio.
When you diversify your portfolio, you spread your investments across different asset classes such as stocks, bonds, and commodities. You also diversify across different markets, such as domestic and international markets, and across different sectors, such as healthcare, technology, and consumer goods.
By diversifying across different asset classes, markets, and sectors, you can help balance out potential losses in any one area. For example, if you have all of your investments in the stock market, you are vulnerable to a significant loss if the stock market experiences a downturn. However, if you have some investments in bonds or commodities, those investments may perform well during a market downturn, helping to offset your losses in the stock market.
Additionally, diversification can help you take advantage of opportunities in different markets and sectors. For example, if the stock market is experiencing a downturn, other markets, such as commodities or international markets, may be performing well. By diversifying your investments, you can take advantage of these opportunities and potentially improve your overall returns.
It's important to note that diversification does not guarantee a profit or protect against loss, but it can help reduce the overall risk in your portfolio. However, diversification requires careful planning and ongoing management. You should regularly review your portfolio and make adjustments to ensure that your investments remain diversified and aligned with your goals and risk tolerance.
Diversification is a critical risk management strategy that can help reduce the impact of any single investment or market on your portfolio. By spreading your investments across different markets, asset classes, and securities, you can help balance out potential losses and take advantage of opportunities in different areas.
Setting stop losses is a vital risk management strategy that involves setting a predetermined price point at which you will sell a security to limit potential losses on any given trade. Stop losses are commonly used by day traders and other active investors to protect their portfolio from large drawdowns and minimize potential losses.
The concept of a stop loss is relatively simple. When you buy a security, you set a price point at which you are willing to sell the security if the price drops to a certain level. This level is known as the stop loss level. If the security's price reaches the stop loss level, the security is sold automatically, limiting your potential losses.
The main benefit of using stop losses is that they allow you to manage risk effectively. By setting a stop loss, you limit the amount of money you can potentially lose on any given trade. This can help prevent large drawdowns and protect your portfolio from significant losses.
Stop losses are also valuable because they help you avoid emotional trading decisions. When you have a predetermined stop loss level, you can take the emotion out of trading decisions. This can help prevent you from holding onto losing trades for too long, which can result in even greater losses.
However, it's important to note that setting stop losses is not foolproof. In fast-moving markets or markets with low liquidity, a stop loss order may not execute at the desired price, resulting in losses greater than expected. Additionally, setting stop losses too close to the market price may result in the order executing prematurely, potentially missing out on gains.
Setting stop losses is an important risk management strategy that can help protect your portfolio from significant losses. By setting a predetermined price point at which you are willing to sell a security, you can limit potential losses and avoid emotional trading decisions. However, it's essential to use stop losses carefully and adjust them as needed to ensure that they are aligned with your goals and risk tolerance.
Position sizing is an important risk management strategy that involves determining the appropriate amount of capital to allocate to each trade based on the level of risk involved. Position sizing is critical because it helps you manage the risk in your portfolio and avoid overexposure to high-risk positions.
The idea behind position sizing is to ensure that the amount of capital you allocate to each trade is proportionate to the level of risk involved. For example, if you're taking on a high-risk trade, you'll want to allocate less capital to that trade to limit the potential losses. Conversely, if you're taking on a low-risk trade, you may allocate more capital to that trade.
Position sizing can be calculated in various ways, but the most common method is to use a percentage of your account balance for each trade. For example, if you have a $100,000 account and you decide to risk 2% of your account on each trade, you would allocate $2,000 to each trade.
By carefully managing position sizing, you can limit the impact of any single trade on your portfolio. If you allocate too much capital to a single trade, you run the risk of losing a significant portion of your portfolio if that trade goes wrong. On the other hand, if you allocate too little capital to a trade, you may miss out on potential gains.
Position sizing is also essential for avoiding overexposure to high-risk positions. If you have too much capital allocated to high-risk trades, you run the risk of suffering significant losses if those trades go wrong. By carefully managing position sizing, you can ensure that you have a well-diversified portfolio with appropriate levels of risk.
Position sizing is a critical risk management strategy that helps you manage the risk in your portfolio by determining the appropriate amount of capital to allocate to each trade based on the level of risk involved. By carefully managing position sizing, you can limit the impact of any single trade on your portfolio and avoid overexposure to high-risk positions.
The risk-reward ratio is an important risk management tool that can help you make more informed trading decisions. The ratio measures the potential return on investment against the amount of risk involved in a particular trade. By focusing on trades with a favorable risk-reward ratio, you can increase your chances of success and limit potential losses.
The risk-reward ratio is typically expressed as a ratio of the potential reward to the potential risk. For example, if you're considering a trade where the potential reward is $2,000 and the potential risk is $1,000, the risk-reward ratio would be 2:1. A favorable risk-reward ratio means that the potential reward is greater than the potential risk.
By focusing on trades with a favorable risk-reward ratio, you can increase your chances of success. This is because you're only taking on trades where the potential reward outweighs the potential risk. This means that even if some trades don't work out, you can still make a profit if the majority of your trades have a favorable risk-reward ratio.
One of the benefits of the risk-reward ratio is that it helps you avoid emotional trading decisions. By focusing on the potential reward relative to the potential risk, you can take the emotion out of trading decisions. This can help prevent you from taking on trades with too much risk or holding onto losing trades for too long.
It's important to note that a favorable risk-reward ratio doesn't guarantee success. Even trades with a high potential reward relative to the potential risk can still result in losses. However, by focusing on trades with a favorable risk-reward ratio, you can limit potential losses and increase your chances of success over the long run.
The risk-reward ratio is an essential risk management tool that measures the potential return on investment against the amount of risk involved. By focusing on trades with a favorable risk-reward ratio, you can increase your chances of success and limit potential losses. It's important to use the risk-reward ratio in conjunction with other risk management strategies to ensure that you have a well-diversified and balanced portfolio.
Staying informed is an essential risk management strategy for day traders. It involves keeping up-to-date with the latest news and developments in the market, both on a macroeconomic level and for individual securities. By staying informed, traders can identify potential risks and opportunities and adjust their trading strategies accordingly.
There are many ways to stay informed as a day trader. One of the most important is to keep an eye on financial news sources, such as Bloomberg, CNBC, and The Wall Street Journal. These sources can provide valuable insights into market trends, company news, and other factors that can impact your trades. Many day traders also use social media, such as Twitter and Reddit, to stay informed about the latest news and trends in the market.
Staying informed also means staying up-to-date on changes in regulations, economic indicators, and other macroeconomic factors that can impact the market. For example, changes in interest rates, trade policies, or fiscal policy can have a significant impact on market performance. By staying informed about these factors, traders can adjust their trading strategies accordingly and make more informed trading decisions.
In addition to staying informed about the market, traders should also stay informed about their individual securities. This means monitoring earnings reports, company news, and other developments that can impact the price of a particular security. By staying informed about individual securities, traders can make more informed decisions about when to buy, sell, or hold a particular security.
Staying informed is an essential risk management strategy for day traders. By staying up-to-date on the latest news and developments in the market, traders can identify potential risks and opportunities and adjust their trading strategies accordingly. Staying informed involves monitoring financial news sources, social media, macroeconomic factors, and individual securities to make more informed trading decisions.
Overall, effective risk management involves a combination of these and other strategies, as well as careful planning, discipline, and a commitment to a sound trading strategy. By using these techniques and remaining focused on your goals, you can better manage risk and increase your chances of success in any investment or trading endeavor.
STAY GREEN
we can see the weakness of the trend in the last movementWe are in an upward trend, we can see the weakness of the trend in the last movement, so we can enter into a sell transaction at the price of 1.74138 or after the failure of the last swing, the loss limit has also been determined.
⚠️ This Analysis will be updated ...
👤 Banipal : @hosseinbakrani
📅 03.16.2023
⚠️(DYOR)
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Inter-exchanges spread is an interesting volatility indicatorAfter observing how much price could be different between exchanges especially during times of high volatility and emotion, I wondered whether I could reliably aggreggate and display concisely this information to improve my trading without having to frenetically check a dozen tickers of the same symbol across a dozen different exchanges, as most traders do, myself included. This led me to create two indicators based on this idea.
Here is the first indicator, which summarizes the inter-exchanges spread by calculating the deviation (standard deviation or median absolute deviation, the latter being more robust against outliers - exchanges that saw scamwicks due to low liquidity or an unusually large whale doing an exceptional transaction):
And here is the second one, which instead displays clouds of min-max values overlaid on the price data, so that we preserve the price data, which can be directly used to define stop losses or entries:
The subject of this idea is what I highlighted by a red arrow in the chart above, from the second indicator applied to BTCUSD in the first half of March 2023, post SVB bank collapse. BTCUSD saw an unexpected face-ripping rally. No indicator I know of could predict it, and no price action was indicative, except from experience knowing that we were in the lows of the range and that it was a potential time for a rally up, but I could not predict the proportions. I knew that because of SVB being a black swan event, the pump could be big, but I had no indication it could be bigger than the post FTX rally.
However, the second indicator linked above provided a convincing evidence of a much bigger volatility in the highs (green cloud) than in the lows (red cloud), which suggested that, in addition to an overall high volatility and hence emotions and hence likelihood of a big move potentially happening soon, the bigger green cloud suggested a bigger interest in longs than in sales (red cloud). Hence, it seems the second indicator's green and red clouds can also be seen as representative of buying-selling pressure in some ways that even buying and selling pressure indicators can't show (see also my other indicator which is a merge of several buying-selling pressure indicators):
This is a very interesting observation that I don't think I saw before. I will keep investigating inter-exchanges metrics, as this may provide a new way to detect early market inefficiencies.
BTCUSD: Mistakes beginner traders makeBINANCE:BTCUSDT
Some Of the Main mistake's Beginner Trader often make ;
* Trading without a trading plan. Every trader needs a trading plan.
* Trading too much, too soon.
* Emotional trading.
* Guessing.
* Not using a stop-loss order.
* Taking too big positions.
* Taking too many positions.
* Over leveraging.
How to Trade the Markets - Step 1 - Creating a LifelineHello,
In this video series i will be walking you through my new approach on how i am currently trading the markets.
Step 1 - Creating a Lifeline
We need to create a lifeline that factors no more than 2% on a stop loss playing the current daily candle. I will show you how to enter and factor in a stop loss for security in your capital.
Bitcoin Path Before New Bull Cycle Begins [Daily TM Analysis]Dear Traders/Investors
As you can see on the chart, I believe Bitcoin is going to experience a rough patch on coming days/weeks. there are two possible scenarios for bitcoin to arrive at 14000 USD level before the new bull cycle begins.
A: Hit 20000 level then recovery to 25000-28000 and then head to 14000
B: Hit and break 20000 level and after a pullback heads straight to 14000 level
Apparently the stop loss for this analysis is 28000-30000 level to be broken upward.
I'll be glad if you share your thoughts and comments with me.
Stay safe guys and manage risk responsibly.
STOP LOSS AS LIFE SAVIOROANDA:XAUUSD
Stop-losses prevent large and uncontrollable losses in volatile trades. If you’re not using stop-losses, it’s only a matter of time when a large losing position will get out of control and wipe out most of your trading profits, eventually even your entire account!
If you’re serious about staying in the game in the long run and growing your trading account, it’s necessary to use stop-loss orders in every single trade you’re taking. That’s the first rule of this article – Always use stop-losses!
Stop-losses also play a major role in risk management. Depending on their stop-loss, traders are calculating what position size to take, how much money to risk on a single trade, how much they’re risking on any single dollar they’re making, and much more .
Time Stop
As their name suggests, time stops refer to closing a trade after a pre-specified period of time. For example, a trader who is day trading the market could close all of his open trades after the end of the trading day, while swing traders who don’t want to hold their trades over the weekend could simply close all trades by the end of the Friday trading session.
Time stops are best combined with other types of stop-loss levels. If your trade is still active by the end of the trading day or ahead of the weekend, you could look to close it manually in that case.
Percentage Stop
Finally, percentage stops are based on a percentage of your trading account to limit the total risk of a trade. For example, a trader with a $10,000 account who wants to risk 3% of his trading account on a single trade could place a stop-loss at a level that ensures his total potential loss is $300.
Some traders might think that percentage stops are a good way to manage and limit losses in the market. However, bear in mind that percentage stops imply placing a stop-loss at an arbitrary level, as long as the total potential loss doesn’t exceed a percentage of the trading account.
Much better results can be achieved by combining chart stops with percentage stops, i.e. a trader would place a stop-loss based on an important technical level and manage his total risk by adjusting the position size of the trade. We’ll show you how to do exactly that later in this article .
Trailing Stops
Trailing stops automatically move the underlying stop-loss level with each tick of the price that goes in your favour. However, if the price reverses and starts to go against you, a trailing stop will stay at its most recent level, limiting your losses or locking in unrealised profits.
CONCULUSION :
WETHER YOU DO FOREX , STOCKS OR CRYPTO TRADING , STOPLOSS IS IIMPORTANT , AND IT ALWAYS GIVE YOU ANOTHER OPPURTUNITY TO TRADE AGAIN
Strategy Coding E05: Risk Management (Part 1)This is a deep dive into the concepts surrounding "Risk Management" and how to realistically model managing risk.
We will discuss:
Risk Units
Scaling in to positions at a one third risk unit increments
Raising stops
Taking profits
Closing/exiting the position.
GBP/USD Technical Analysis: Bearish Bias as Price Approaches Key📉 The GBP/USD currency pair is currently showing a bearish bias as it approaches a key support level at 1.2100. 📊 Technical analysis suggests that a pattern breakout may expose the key 1.2000 level, indicating further downside potential. 💰 Our trading opportunity is to sell at the current level of 1.2098, with a take profit target of 1.20421 and a stop loss at 1.22779.
Hashtags: #GBPUSD #TechnicalAnalysis #BearishBias #SupportLevel #TradingOpportunity #TakeProfit #StopLoss
Bitcoin Hammers ceremony in 4HHi friends.
I see about 4 hammers on a strength Trendline and i think price
will go to the upper band i have shown on my chart.
If the price surpass this 24000 resistance level
after a pullback to this level , we will see a huge increase in BTC in coming days.
Dont forget we are in a 4H time frame and this trendline is very important.
In addition this hammers shape in an important support level (22500) too.
after price reach this path i draw in my chart we should look it again to update our
analysis.
so if you enter a trade dont forget to set your SL below this support level and choose the upper
line for your TP.(I show it on my chart and its R/R is 2.6 its good i think! )
Hope you enjoy this analysis.
share me your opinion
I will be happy.
Thanks for reading my idea
Love you all
gold analysis - 09 feb 2023so first things first...
-market brokeout to the downside on the daily timeframe
- then market ranged for 4 days forming a bearish flag which is a continuation pattern
-market is currently at a significant support level so if it breaks entry can be taken on the initial breakout (aggressive) or wait for a retest of that structure (conservative)
- take profit is placed at the 1849 level but market could go down to the 1835 which is current support on daily
market can be bullish out of nowhere but we will wait and see
❗️PLAN VS FOMO EFFECT❗️
☑️A trader with a plan is someone who has a well-defined trading strategy that outlines their entry and exit points, risk management approach, and overall trading philosophy.
☑️They have a clear understanding of the markets they are trading and make decisions based on objective analysis and research. They are disciplined and stick to their trading plan, even in the face of losses or market volatility. They avoid impulsive decisions and emotions like fear of missing out (FOMO) that can lead to bad trades.
☑️On the other hand, a trader with FOMO is someone who makes impulsive decisions based on fear of missing out on potential profits.
☑️They may jump into trades without fully understanding the market conditions or conducting proper research. They may also ignore their risk management strategy, in an effort to make quick profits. They often enter trades based on rumors or tips from others, rather than their own analysis.
This type of trader is more likely to make poor trades and suffer significant losses.
☑️In summary, a trader with a plan is someone who is disciplined, objective, and systematic in their approach to trading, while a trader with FOMO is impulsive, emotional, and reactive in their approach.
I Hope you guys learned something new today✅
Wish you all Best Of Luck👍
😇And may the odds be always in your favor😇
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BNB / USDT 1H INTERVAL, STOPLOSS AND TARGETSHello everyone, let's look at the BNB to USDT chart on a 1-hour timeframe. As you can see, the price is moving above the local uptrend line.
Let's start with the support line and as you can see the first support in the near future is $326.4, if the support is broken then the next support is $324.2, $322.2 and $319.2.
Now let's move to the resistance line, as you can see the first resistance is $330.2, if you manage to break it, the next resistance will be $332.7, $335.9 and $340.1.
Looking at the CHOP indicator, we see that we have a lot of energy for the next move, the MACD is on the verge of entering a downtrend, while the RSI has a rebound.