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30% WIN RATIO AND STILL PROFITABLE?-Trading psychology and Risk Hello traders! -READ THIS DESCRIPTION FOR MORE INFORMATION! -This tutorial is for people who are struggling with RISK MANAGEMENT and MONEY MANAGEMENT. In this tutorial i will show you how to be profitable with 30% ratio. But first i will explain you what is risk and reward. -Risk is amount of money or percentage what are you willing to risk(lose). -Reward is amount of money or percentage that you want to achieve. When you decide to start trading or you are already trading but still struggling with risk and money management you should follow my advice to improve your trading. I will give you few things to consider when you are trading forex markets. I will give you 4 tips to follow to become more profitable: 1.Don't risk more than 3% of your total capital! -Lets say you have 1000$ account and you want to start trading,you decide to risk 3% of your capital and that is 30$ with risk reward ratio 1:1 and you won 6 trades,you made +30$ of total profit.You have 60% win rate and you made only 3% of total return.WHY?I will explain in next paragraph! 2.Focus on RISK REWARD RATIO! -With proper RISK REWARD RATIO you can win more % and more money while you have less than 60% win rate,let me explain! Lets say you have 1000$ on your account and you decide to enter a trade.You are willing to risk 3% of your total capital BUT now your RISK REWARD RATIO is 1:3 What that means? That means that you are risking 3% to make 9% and with even lower win ratio you can be still profitable,you can survive this long term game! -Lets say you have 60% win ratio like in previous situation but with 1:3 RISK REWARD RATIO.You won 6 trades and lose 4 BUT you lost 4% and you make 18% and at the end that is +12% of total return on your capital.You see same win ratio percentage but with way more better results than with 1:1 RISK REWARD RATIO! -You lost 40$(4% of total account balance) and you win 180$(18% of total account balance). -You put stop loss lets say 50 pips and you put take profit at 150 pips for example. 3.Let winners run and cut your losses at proper time! -Lets say you put your stop loss 100 pips above you sell order and the price went strong bullish and you see that the price will hit your stop loss but you hope that trend will reverse or something like that,...Don't do that! WHY? In trading you should be aware that your emotions will affect your final results! -When trading you will feel lot of different emotions such as;fear,joy,hope,greed,impatience and so on. Let me explain something about that emotions for you! -FEAR-You face fear in few situations,first situation is when your trade is in profit but you have fear of losing that trade and you close with few pips in profit instead letting it run until profit target,...Second situation where you face fear is when you put too much orders of same pair and all pairs went in negative direction. -ADVICE FOR YOU:Risk amount that you can cover with win trades,lets say risk 1 to get 3 and if you lose 3 trades you will cover your loses with that one trade and do not open to much same positions! -JOY;Joy is good in life but in trading can be very very bad!WHY??? Lets say you won 3 trades in the row and now you feel very happy and you think that you are master of trading now,...In next trade you decide to put bigger lot and you lose that trade,What now? In one trade you lost all your profit from your previous win trades or even more! -ADVICE FOR YOU:Sometimes you will win sometimes you will lose but that is part of the game,it is okay to celebrate your wins but you need to be aware that loses are part of the game too.Also when you win some trades do not increase your lot to much because you think you are now master of forex. -HOPE;It is good to have hope in life(health,health of your family) but in trading hope can erase you all account balance!HOW? -Lets say you put trade and you see that trade is going in wrong direction and you know that price will hit your stop loss but you HOPE that trend is going to change somehow but at the end you ended up with loss,and you known that you are going to lose and you did not cut off that trade because of HOPE! -ADVICE FOR YOU;Cut off your losing trades and let your winners run! -GREED;Remember this;BEARS WIN,BULLS WIN BUT PIGS ALWAYS GET SLAUGHTERED!-What that means?Pigs are greedy and greed will destroy your confidence and your account balance. -ADVICE FOR YOU;Let your winners run and don not be greedy when you see little profit and you decide to close the trade,do not over trade,if you have bad day,you have more loses than wins,do not trade more because all you want is profit.You will have new opportunity tomorrow! -IMPATIENCE:Impatience is big enemy of traders!Always be patient and disciplined about your trading! 4. 30% AND STILL PROFITABLE?-Do not focus on money focus on % -I will show you simple formula how to calculate your RISK REWARD RATIO and this is how it goes; -1:3 risk reward ratio with 30% win rate, so you have 7 loses and 3 wins if you take 10 trades. = -7x1+3x3 = -7+9 = +2% I will explain you why is like this; -You lose 7 trades and per every trade you lose 1% so you lost 7 trades and that is 7% -You won just 3 trades BUT with 1:3 risk reward you get for every win 3% in return so that is 3x3=9% At the end you ended up with +2% in profit with just 30% win rate! Lets do another example but with 1:4 RISK REWARD RATIO -1:4 risk reward ratio with 30% win rate,you lose 7 and you win 3 if you take 10 trades. = -7x1+3x4 = -7+12 = +5% -Look at this now 30% win rate and you are still profitable! -With 1:4 risk reward ratio you can lose 7 trades and win JUST 3 trades and you are still profitable! -You lose 7(-7x1 ) trades but for every trade that you lose,you lose 1% and for every win trade you win 4% in return so that is 3x4=12 -At the end you ended up with +5% in profit with just 30% win ratio! 5.CONCLUSION At the end i will tell you what you need to learn from this; -Don not risk more than 3% -Focus on RISK REWARD RATIO -Do not let emotions ruin your trading -Do not focus on money focus on %(total return at the end of trade) THANK YOU SO MUCH FOR READING THIS TUTORIAL ABOUT TRADING PSYCHOLOGY! -If you like this content please support me with like and follow me for more new tutorials and analysis!
Education
by lCrn49
1
BTCUSD: resistance resisted. The end for bulls?Hello guys and gerlz! Having successfully foreseen BTC bullish rally from 7Keks to 9Keks it is now my time to reconsider trading idea. I am only saying what I see from charts and nothing more. Following the dump #BTC has approach first S/R level being 8450 from where bulls stepped out strong. Price now is fighting for 8680 which pushes from above. What can I expect next?: Bullish scenario: If bulls break out 8680 I see good chances at least to test 8840. Any successful attempt to hold above this level make me think we go back to 9Keks pretty soon and higher onwards. Case 1 breakout happens from current price. No further liquidity probe is needed to make a shot. Case 2 breakout needs more power which sends price back towards 8470 level, i.e. the lower range of the zone. Eventually bulls break out targeting first 8840. Bearish scenario: Current support fails and price deeps down towards next buyer zone 8200 where new consolidation takes place. Please please please!!! DO NOT forget to comment and like my analysis, agree or disagree, regard to disregard! Action is better than no action! Appreciate it! Love you all! Trade safely!
BYBIT:BTCUSD.P
by rfelchuk
3
Can LVS still go higher? Maybe, but headwinds are getting strongEARNINGS PREVIEW UPDATE: Las Vegas Sands had a banger of a year, returning 30+ % for people who got in before August 2K19. Dividends and margin improvement were mainly responsible since Macau sales have been declining. New infastructure investments will be completed this year in Macau and legalized sportsbetting in the USA should definitely beef up profits. But, With such a great year behind us can this rally continue? Earnings will be key here. Headwinds include the Coronavirus outbreak which will further hurt Macau sales going into Chinese holiday season, amazing returns last year, and most likely a shrinking dividend. Its competitiors all look like better value buys as well. /// % Growth TTM w/ Competitors www.tradingview.com /// Here for information puposes. Please comment any thoughts, biases, or opinions. Some Articles: www.nasdaq.com finance.yahoo.com www.benzinga.com
NYSE:LVS
by kingmidasLXIX
Figure "Cat Ears" A rare bear figure. BCN / BTC exampleAn example of this figure is on a BCN / BTC coin. A very rare figure, sometimes found in its various versions on altcoins. I have never met her on TOP 10 altcoins. This formation is generated by the fact that a major player (altcoin market maker) for a long time holds one price zone (usually this is the area where the main position was set) and all attempts to raise the price and reverse the trend fail. At one point, the strength and desire to keep this zone are running out and there is a breakthrough of the scalp level (zone of support of the figure). The Cat Ears shape is a bear formation. It arises only in a bear market and predicts a further decline in prices. Visually, it resembles a combination of the "Double Peak" and "Failed Cup" formations. The figure "Cat Ears" is named because of the apparent external resemblance to the ears of a cat. The figure is a rare, but reliable figure, and gives a clear price goal. The usual duration of the formation of the "Cat Ears" figure is from 10 to 60 days. This figure is very misleading in the sense that the presence of a horizontal cluster zone (“scalp”) gives a false impression that the price has reached very strong support. The left and right ears try to deceive the trader, making them believe that the price shows signs of strong interest of buyers. In fact, the return of the price to the scalp line (support) after the formation of the right ear is an indication that interest in purchases is short-term. ________________________________________ Phase shaping. "Cat ears" is formed of 6 phases: 1) Downtrend. Price is in a strong downtrend. 2) Pause . The price pauses for a while and fluctuates in sideways movement. 3) "Left ear. " The price shoots up, then quickly returns, forming the "left cat's ear". 4) The scalp . The price again fluctuates in lateral movement, forming a "cat scalp." 5) "The right ear. " Price fires a second shot, but returns again, forming the "right cat's ear." 6) Breakthrough. Continuation of the downtrend. The price breaks through the scalp line (support line) and the downtrend continues. _______________________________ Various formation options "Ears" left / right - can have different heights. The scalp line may be slightly above or below phase 2 (“pauses”). In most cases, this figure is formed during 6 phases, but in very rare cases it happens that phase 2 - “pause” is absent. Or vice versa, when phase 2 is very long and volatile, and it appears that the price is on the “reinforced concrete bottom”. But, then further formation of the “Cat Ears” figure - makes it clear that the downtrend will continue. All these variations of this figure have only one continuation - the resumption of a downtrend. _______________________________ Formation and volume change. As one would expect, during the formation of the “Cat Ears” figure, the volume is usually average or even at low values. Short-term volume increases may occur at the tops of the left and right “ears”. The lowest volume is observed in the "scalp" phase (between the "Ears"). Penetration of the Scalp support line can occur with a high volume, and any attempt to roll back to the scalp line is usually accompanied by a low volume. Often, volume surges can be observed at the beginning of phase 2 and at the lower points of the left ear. There are sometimes cases when the volume on the right “ear” is higher than on the left. This is due to the fact that when the price returns to the scalp line after the formation of the right ear, there are many traders who bought at the last local peak and suffer losses. Roughly speaking, traders who believe in growth are trying to get out of position. Thus, the increased volume on the right “ear” may be similar to the behavior of the volumes in other cases, when the crowd is also trapped at the top. In the case of the “Cat Ears” figure, the price has already tried twice to go up (left and right “ears”), but could not do this and returned to the scalp line (support). If the price then falls below this line, negative technical factors will appear that will trigger panic sales. The downtrend will continue. It should be noted that the behavior of volumes is not significant for this figure, except in special cases, since the figure itself is a fairly strong bearish signal. ___________________________________ Setting target when working with a figure. After breaking through the support on the scalp line, we can expect a decrease in height in percent from the top of the Ear to the level of the Scalp. It is also important if the price is being traded in your favor, and according to the plan you should already fix the profit, then it is advisable to stay in position while you get additional profit instead of the planned one. But always remember - greed begets poverty.
BEducation
by SpartaBTC
1
EurJpy bearish divergence, sell approaching set up .Eurjpy looks to be in an ideal sell set up looking at divergence, resistance zone plus trend line we can hope that it drops to tp 1 and 2 indicated by the green dotted line. This also fits in nicely with our chfjpy sell that we have active. And just to touch on that be patient guys its normal for this to happen possibly a sl hunt by the bigger players, we just need to be patient. But be sure to stick to your risk management as that is the most important. Today is my Bday so im going out, hope yall have a wonderful day. Dev.
Short
by Dev5777
4
ETHUSD There are two options: 1. If the price will reach the last higher high, it going to touch the resistance (komo above the chart). we have to notice the price needs to show his power for higher price. 2. If NOT, then we have to except forcing the support to break down. when i focus on the history of this chart, i found several situation like now. But, on this moment we have to ready for selling on the higher price or (if break down) sell and re buy on lower price. In this case, what are the investors believing? this price is enough for ETH or this coin have more value? what are you thinking about PSYCHOLOGY of investors & traders?
BITFINEX:ETHUSD
by amin.izadi4
Institutional Supply for the CHN50Dear Traders, Due to demand, I'll upload a few chart ideas beyond the forex markets. Besides the previous post about the DAX, the CHN50 is also looking good for a weekly pullback from Weekly and Daily Supply, both breaking a clean bullish trend to the downside. The same gameplan is used as for the DAX, which is to show patience and see price-action move a bit higher towards the end of the week before a solid correction in the start of the new year. The Daily chart can be used nicely to spot reversal zones inside of this weekly supply zone, besides that the intra-day charts such as the 1hour and 4hour chart will be applied to create a full breakdown for the CHN50. Have a good one.
FOREXCOM:CHINA50Short
by newcapitalfx
Institutional Supply for the DAX Dear Traders, Due to demand, I'll upload a few chart ideas beyond the forex markets. The DAX is looking really good for a weekly pullback from institutional supply, created by breaking the 2017 bullish trendline to the downside. The gameplan for this potential short opportunity is to show patience and see price-action move a bit higher towards the end of the week before a solid correction in the start of the new year. The Daily chart can be used nicely to spot reversal zones inside of this weekly supply zone, besides that the intra-day charts such as the 1hour and 4hour chart will be applied to create a full breakdown for the DAX. Have a good one.
XETR:DAXShort
by newcapitalfx
BNB. Ascending channel 20%. Work on a coin. Local uptrend. In favor of coin growth. 1) Local uptrend. 2) Global uptrend. 3) The only coin that holds an uptrend after 2017. 4) Ascending channel in increments of 20%. 5) Strong coin liquidity. 6) Dad and mom in the face of the strongest player in the Binance market. 7) TOP cryptocurrencies. 8) The clarity of trade. ________________________________________________________________ BNB is one of the most powerful coins among more than 2000 different types of menagerie of coins. The BNB coin is now in a global uptrend. A local uptrend has also begun, which has formed an upward channel. Channel in increments of +19 - 21% . Good place to make money. It is also very important that all potential movements are easy to predict in the future. Currently, trend trading within the channel is from support to resistance of the channel’s trend lines. If the Binance exchange raises its price with bots on a similar formation as before, then perhaps with a breakthrough of the rising channel we will see a new maximum price. Sooner or later this will happen. If the Binance exchange does not cease to exist. _________________________________________________________________ Entrance on a breakthrough or rollback after a breakthrough depending on what your trading strategy is and at what level the entrance will be. When trading in the channel, the entry is at the bottom of the channel when confirming support. __________________________________________________________________ Who uses Stop Loos - as the price rises, be sure to move them up taking into account the volatility of the instrument. When trading in the Stop Loos channel behind the channel support line. But it is possible that they will knock it out if they make a false breakdown before growth. ___________________________________________________________________ The first real target is to trade in the channel + 20% (maybe several times). The second target is a breakthrough of the resistance channel in the region of 0.0033 (yellow level). The third target is the previous high in the area of 0.0044 (this will be possible if the price consolidates above the level of 0.0033). The fourth target is a new maximum price - 0.0061 or + 144% from the channel breakout zone. Adverse events if the local uptrend breaks - the target of the short is 0.0018-0.0020 (purple support line). Below I think they will not give. __________________________________________________________________ In this trade, it is very important to follow the ascending trend line (green line). Especially when the price approaches it (to the bottom of the channel). Specifically highlighted the red zone on the trend line of the uptrend for clarity and comprehensibility. If the price breaks through it and consolidates below it, the uptrend is changing. Always trade with the trend! If this happens, then with a high degree of probability the price will fall to the support zone in the area of 0.0018-0.0020 (purple line). This is a very strong level of support. I doubt that the Binance exchange will let it break through. _____________________________________ Specially showed on the previous upward and downward trend how well the trend lines work and work out all the figures in the classic TA. There are no tricks and deceit. There is only one reason, the exchange has a lot of money and it will not "get dirty" on its coin. According to the BNB chart, one can study the classical working out of TA figure, at least the last two trends. Feel the dynamics of the transition of one figure to another. 1) Ascending channel 66 days + 66% . (I previously described in my chat how to read non-random numbers). By the way, I received the first communication lessons of this kind back in 2017 in the summer on the first pump of the same BNB coin! 2) Then a breakthrough of the channel and an ascendant pennant. Testing to the height of the flagpole in the classic TA. 3) Triple top (reversal pattern) at the top of the trend. 4) Breakthrough of the uptrend line + breakthrough of the “Neck” line of the triple to p - the final confirmation of the trend reversal. 5) Downtrend . The formation of a downward wedge. 6) Breakthrough of the descending wedge and the beginning of the formation of the ascending channel - trend reversal. But the most important thing in trading is trend trading. Always follow the trend lines!
Long
by SpartaBTC
14
LTC / USD. An expanding triangle forms. + 70%. Entry PointsLTC / USD An expanding triangle forms . The third wave inside the triangle, as a rule it is the largest. Potential + 70% . Traders rarely trade inside triangles, especially in expanding ones. I trade these triangles internally and often, but only at the final stage of the formation of the triangle, how exactly here you can take the largest profit in the short term. As a rule, the price in the final phase of the formation of the triangle is impulses, this makes it possible not to stay in position for a long time. Perhaps on lightcoin due to strong liquidity, the price movement will not be as rapid as in medium-liquid coins. I am leaving the position at 70-80% of the way the price moves from 100% of the target. This is especially true when the position is large and there is not enough liquidity for sales at the highest point. _______________________________________________ Here is an example of an algorithm for working in such formations shown in this learning-trading idea: TNT Coin operation. Impulse + diverging triangle + channel. But it is worth noting that there is a difference that must be taken into account. On TNT, the horizontal channel, and on LTC, the downward channel at the moment. The positive point is that earlier on the coin there was a breakthrough of the downtrend line. Price is now back down to the downward channel. In this example, the TNT coin shows the enormous profit that trading with this figure gives that most traders are afraid of. The moment of entry is important. Training + trading idea: TNT Coin operation. Impulse + diverging triangle + channel. _______________________________________________ The entry points and Stop Loos I showed on the graph of the coin. I will not repeat myself as everything is clear. It is worth noting that these two downtrend lines (in red) are very important. The lower downtrend acts as a support for the diverging triangle. She is very important for observation. On it is the turning point of the price. If its price is now breaking down and fixing below it, this will mean that the figure will not form. Then trade from trending in a downward channel. The second downtrend line is the resistance of the downward channel (upper boundary of the channel). If the price breaks through it again and is finally consolidating, then this will most likely mean that the trend is finally reversing upward. This is how the complete formation of an expanding triangle will break through it and reverse the trend. The goals there are impressive for such a highly liquid coin. It is very important in such formations to observe the change in volume. _______________________________________ Target from the first entry point + 70%. Target from the second entry point + 45%. The risk on Stop Loos is minimal , showed on the chart. It’s up to you to set how much you bet on your Stop Loos trading strategy. I try to always enter this way so that the risk is ZERO. ________________________________________ Features to which you should pay attention when forming this model of a figure. 1) There must be a minimum of 4 points of contact 2 touches to the ascending line of resistance and 2 to the descending line of support. Then later touch points on both sides should tend toward the horizontal center of the triangle. And it is worth noting that the more points of contact, the more reliable the figure. 2) The volume of trading as the formation of the figure should increase. The “Expanding Triangle” figure, in contrast to other triangles, changes in the trading volume indicators on the contrary, that is, the volume increases with the formation of the expanding triangle. 3) If inside the “Expanding Triangle” (component of the triangle wave) the price increase is accompanied by an increase in volume indicators, then it is most likely that the figure will be broken up. And vice versa, if inside a symmetrical triangle a price drop is accompanied by an increase in volume indicators, then most likely the figure will be broken down. Do not forget to look in the tape of sales. The chart may show a "fake" that imposes a market maker. This is especially true for instruments with medium and low capitalization. 4) The ideal moment for a breakthrough is considered to be the moment starting from half to 3/4 of the figure. A break in the first half of the figure, as a rule, turns out to be premature, and in its last quarter, most likely, will be insignificant. 5) The "diverging triangle" triangle is a figure of the continuation of the trend. Most likely, the price will break through the support / resistance level and go in the direction of the trend. This is in most cases. The direction of the price movement depends on the side on which the price has left the figure. Therefore, the direction of the price movement into which the triangle made its way, rather than the previous trend, is more important. 6) the proximity of significant levels of support / resistance can also affect the direction of price movement. 7) If the upper resistance line has been broken, it becomes a support line. The broken bottom support line later becomes a resistance line. Sometimes after breaking through the price as a result of correction may temporarily return to this line. 8) The breakthrough of the figure should be convincing. It is desirable that a breakthrough in the direction of the dominant trend be accompanied by an increase in trading volume. When breaking against the trend, a sharp increase in trading volume is a prerequisite for confirmation. 9) An important breakthrough is not so important, namely, fixing the price outside of support / resistance. 10) The goal when working out the “Expanding Triangle” after the breakthrough is equal to the absolute value of the widest part of the triangle added to the price exit point. Similarly, the target is measured when trading inside the triangle and it does not matter in long or short. 11) This is the only triangle that allows you to trade very profitably inside the figure, because with each new wave inside the triangle everything is higher, therefore the profit potential is greater. If we assume that an “Expanding Triangle” is being formed, and that the formation of the figure has not yet been completed, then it makes sense to open a counter position from the support level or resistance level in the expectation that the price will reach the opposite side of the triangle.
COINBASE:LTCUSD
by SpartaBTC
4