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Management

Risk ManagementAs I promised, I publish the post about risk management. There are different types of risk management, but I will share one of the best in my opinion. When you trade futures you have no control over what is happening in the market, the only thing you can counteract is your stop orders and it depends on the volume of your position. Nothing more depends on you. You can try to control the market with your thoughts, meditations, prayers, you can try anything, but it doesn't work and it's not surprising :) What is under your control is stop loss. Don't overdo with your trades - it's when you trade too big contracts or when you trade too often. Here too, there is the considerable cause that pushes you to trade too often: you look at small timeframes and afraid to miss a profitable trade. Your problem is likely to be that you have a large number of open positions, so I will tell you how big your position should be. One simple mathematical method will help you. You have to determine the amount you are willing to risk. Say your trading account is $100,000. And you need to decide what part of that amount you want to risk on one deal. Someone might say I'm a very risky guy, I'll risk 20%, the other - 15%, and the other only 2-5%. The more percentage of your deposit you use in a deal, the better chance of zeroing out your deposit. You have to determine your risk factor. Usually, in an aggressive strategy, the risk is 10-12%. You always need to understand what percentage of your money you are willing to risk. If you know exactly what your maximum possible loss and use the appropriate stops, then you can't lose more than you have specified. Of course, you need to take into account some possible slippage. Let's assume that you set for yourself a maximum loss of $500 on a trade and don't risk more than 10% of your capital. Then the risk factor of my $100K trading account is $10K. So you only risk $500 per trade and be able to make 20 failed trades straight. After 3 unsuccessful trades, as a rule, I close the terminal and go out for a walk or drive a car, after an hour I return and make no more than 2 trades Formula: Your balance multiplied by risk percentage(e.g. 10%) and divided by your maximum possible loss (stop, e.g. $500) and as a result we get the number of contracts that you can trade. 100,000$ * 10% =10000$ 10000$ / 500$ = 20 Number of traded contracts You can see the formula on the chart It's all about money management, once you earn more money you can open more positions, and when you get a loss the contract volume decreases too. Fact of life, if you bet big you are guaranteed to lose big. Money management must begin before you enter the trade. You should know how many trades you can trade and how much you can risk for each of them. Never invest more than 20% of your capital if you are experienced, and 10% if you are new with trading. Don't trade more than six markets at a time. When you feel sure that you can't lose, it's time for the biggest risk of losing everything. Fear allows you to be careful. You must risk no more than 5% of your capital per trade, regardless of your experience. Remember, the markets aren't sweet candy, they're brutal, and many people, without realizing it, lose their deposits. The market is a puzzle without instructions. I hope I a little bit helped to put your puzzle together. Respect the market he is your teacher With respect, EXCAVO.
BITSTAMP:BTCUSDEducation
by EXCAVO
44
Bankroll and Risk Management, Risk to Reward Ratio - EDUCATIONALIn this example I am showing you how important is RIsk Management in your trading system. You could be the most talented trader in the world with a natural eye for investment opportunities, and still blow your account with one bad call without proper risk management. No matter how good you are, or how experienced you are, you’re still going to incur losses. Even the best traders in the world suffer losing trades - it’s part and parcel of trading. That’s why risk management is so important to your trading. One way that you could strike the right balance between reward and risk is to stick to a reward:risk ratio such as 2:1 or even 3:1, where your targeted profits are always double that of your maximum losses. So even if you suffer three losing trades, you’ll only need two profitable ones to ensure your total profits outnumber your losses if you stick to this reward:risk ratio. Although it’s not a general rule to follow, it can help you to visualise a specific approach to risk management. "It's not important whether you are right or wrong. It's about how much money you make." That means that you can still win 4/6 trade and you are still loosing money. In the example showed you can see that investing different amount of money in each trade can drive to a negative ROI even if yours winning rate is over 66% .
Education
by wolf-lamb
5
$TA Breaks Out On New CEO Appointment$TA looks to have bottomed after rallying on the news of a new CEO being appointed. TravelCenters of America (NASDAQ:TA) appointed Jonathan Pertchik to be the company's CEO and managing director to succeed Andrew Rebholz. Pertchik has served as an executive for companies owned or controlled by private equity groups, including Starwood Capital Group, TPG, Carl Icahn, Richard LeFrak and Perry Capital. Rebholz is staying to advise TravelCenters of America until June 30. TravelCenters of America Inc. operates travel centers and standalone restaurants in the United States and Canada. Its travel centers offer a range of products and services, including diesel fuel and gasoline, as well as nonfuel products and services, such as parking, truck repair and maintenance services, full service restaurants, quick service restaurants, and various customer amenities. As of December 31, 2018, it operated 258 travel centers and under the TravelCenters of America, TA, TA Express, Petro Stopping Centers, and Petro brand names; and 43 standalone restaurants under the Quaker Steak & Lube brand name. The company serves trucking fleets and their drivers, independent truck drivers, highway and local motorists, and casual diners. TravelCenters of America Inc. was founded in 1992 and is based in Westlake, Ohio. As always, use protective stops and trade with caution. Good luck to all!
TLong
by InsiderFinancial
Long term investments - 2019: BUY XAUEURLong term investments - 2019: This is a first post on long term investment for 2019. Others will follow. Every serious investor establishes a solid money management with a balanced risk factor. Investing 100% of your savings in forex or crypto currency is like make a blind all in at poker. So a key factor is to choose which asset allocation suites better for you and to found low risk investments on long term. This investment and assets suits my needs. My first choice is XAUEUR because: 1- Global Risk Index is higher then 2018 and 2017 (ref. europa.eu ): GOLD UP because investors typically look at gold as a safe haven during times of political and economic uncertainty. 2- Why buy XAUEUR and not XAUUSD. Gold is always exchanged in USD so XAUEUR is a cross: why is better buy XAUEUR than XAUUSD? US ecominic politics push for a strong US dollar: EURUSD DOWN. Actually (this week) EURUSD is retracing up to a resistance level near 1.1500, but then it will probably go back to 1.1200 so its a good time to buy XAUEUR because, when USD will be stronger again, XAUEUR will go up very quickly. 3- Price found a strong resistance (green line) in 2017 and 2018 (yellow circles): now this resistance line is broken and will work as support while next resistance level is far higher.
OANDA:XAUEURLong
by 03.freeman
1
Long term investments - 2019: LVMH - LVMUY - MC.FRLong term investments - 2019: This is a series of posts on long term investment for 2019. Every serious investor establishes a solid money management with a balanced risk factor. Investing 100% of your savings in forex or crypto currency is like make a blind all in at poker. So a key factor is to choose which asset allocation suites better for you and to found low risk investments on long term. This investment and assets suits my needs. Today choice is LVMH group but could be other luxury assets . This is why: 1- The World Economic Forum (WEF) pubblished the new World Inequality Report 2018 where it is highlighted an increase of inequality between high and low salary. As a consequence, who has money can spend more in luxury stuff and luxury assets will continue to grow in long term. 2- Technically speaking, the first strong resistance area is between 352 and 364, so there is enough room at north for increase its value. 3- Looking at seasonality charts (2015-2019), best moment to buy are January, July and September. If you like my ideas and scripts, please leave a feedback and follow me.
OTC:LVMHFLong
by 03.freeman
We make losing trades profitable. Martingale + Position Trading.The graph shows, by the example of BTC / USD, the combined 2 money management strategies for taking high profits with minimal risk. And for all the trading time, only 4 transactions were made, including the loss-making one, almost 2 times more expensive than the minimum price! I showed a specially bad option when a person could not or did not want to exit Stop Loss and suffered tremendous losses. The price of the first purchase is almost two times more expensive than the minimum values! This is in order to show the high efficiency of this symbiosis of work. And how to pull even the most hopeless unprofitable transaction into profit. There is a similar work on altcoins, but there are some peculiarities. On the one hand, they are easier to work and many times faster, but there are nuances. There will be free time I will make an article. Let's say the first purchase of BTC was at a price of $ 6400 per coin at the bottom, which turned out to be not a bottom at all. Let's say that you didn’t get out on Stop Loos, or you had a coin in a cold wallet. And of course, during the dump, the input / output on the top exchanges was closed and you could not transfer coins to sell. When the exchange opened coin input, you no longer wanted to sell at a loss of -30% or so. What to do in such a situation? If you are still a bad trader and can not cover the losses due to the skill of work within the day. In such a sad situation, the Martingale money management method will help you. Martingale with proper operation will take out losses and help to gain a position at averaged reasonable prices. A straightforward positional trading , about which I have already made a teaching idea, will help you get profit at average high prices when the trend changes to an upward one. The main thing in this matter is understanding of work and patience. Also, you don’t have to stare at the charts every day. Due to the entry with a volume 2 times larger than the losing trade, we get profit. The most important purchase of even 2 BTC was at a potential price bottom, from which a trend reversal could take place. It is important to buy not on support, but when it is confirmed. As a rule, 2-3 purchases are made before a trend reversal. In no case should there be more. Note that in the purchases and sales that I showed on the chart there are no lows and highs. The position was exited by breaking the uptrend line and fixing the price below it at a bitcoin price of $ 10,000, and the maximum price in this trend was $ 13,888! Coin purchases were also far from the minimum values. And the first is almost 2 times more expensive than the minimum price of a downtrend! Minimum prices and maximum prices let us leave the hamsters. We need to get real profit in real money with minimal risk. _____________________________________________ To summarize the example of work in numbers: 1 losing trade purchase of 1 BTC ($ 6400) Spent $ 6400 Work - MARTINGALE 2 purchase 2 BTC ($ 3900) Spent $ 7800 3 purchase 3 BTC ($ 3,500) Spent $ 10500 Total Average Position 6 BTC No loss comes at a price of $ 4100 for 1 BTC Spent $ 24,700 ___________________________________________ Work - Position Trading. We have 6 BTC with an average average purchase of $ 4100 for a total of $ 24,700 A long sideways movement begins. We are waiting for its change to an uptrend. We hold a position in an uptrend. Stop Loss under the uptrend line if there is no way to control the position every day. We exit the Stop Loss or market position when an uptrend line breaks through and the price fixes below it. The important thing is not breaking through itself, as there may be a false breakthrough, namely, fixing the price below the trend line. In this example, the position was exited when the uptrend line was broken and the price fixed below it at a price of $ 10,000 . Once again, I recall that the maximum price in this trend was $ 13888! The sale was very far from the highs, but for that with a confirmed trend change. And even with these values, the profit was: 6 BTC at a price of $ 10,000 = $ 60,000 - $ 24,700 = $ 35,300 net profit, with the initial loss-making transaction, it is almost 2 times more expensive from the lows of the trend! And the most paradoxical, for all this time only 4 transactions were completed along with the first unprofitable !!! ________________________________________________________ I will describe in more detail these 2 methods of money management. Let's start with MARTINGALE. Martingale - is a bet management system discovered by French mathematician Paul Pierre Levy in the 18th century. According to the Martingale money management method, the new entry point should be exactly two times larger in volume than the previous losing trade. This is done so that the minimum price movement in your favor covers previously unprofitable transactions due to the accumulated large volume at lower prices. This is all achieved through math and volume increase when the price moves against you. But not everything is so smooth, we will consider all the shortcomings and dangers of this method in this article. Not everything is so smooth, it is very important that there are a limited number of unprofitable transactions. After all, all losing trades in order to get profit must be covered with double volume or at least a large percentage of entry. It all depends on the consistent number of losing trades. The longer this sequence, the higher the likelihood that the deposit will not withstand the load and the remaining funds may not be enough to maintain another position in the market. The whole effectiveness of this method lies in the correct entry points and the right tool selection. Using Martingale can increase your chances of making a profit. But if you do not own dimensionless capital, then you will certainly encounter a situation where a series of losing trades at an accelerated pace will take its lion's share. Therefore, in order to protect yourself, determine for yourself the share of your trading capital that you can use for each next series and the limit of losses that you may incur. If you reach this threshold, then trading should be stopped. In this case, you will have to admit defeat, but in the alternative you will only lose the previously set amount and protect the rest of the funds. Initially, you need to choose the right tool, weak tools that forever in a downtrend without kickbacks are not suitable here. The tool chart can tell you whether this depot management method is suitable for this tool or not. The use of Martingale on trading instruments in an eternal downtrend is a direct way to zero the deposit. Coins are candidates for delisting, or abandoned without active developers in the social. networks and without the presence of a major player similarly - the way to drain the deposit. You can use this method to control an unmeasured amount of unnecessary program code. The delist of the coin is from the exchange, and you will have unnecessary program code for anyone that will always remind you of your stupidity. It matters a lot where you enter the deal . Do not catch falling knives, do not try to buy at the lowest possible price, it is important to buy at those levels where the price stops, where there is a reversal potential. A doubled position or tripled when the price moves is much lower than the initial entry will make a big profit. At the same time, chaotic entrances to the transaction when the price goes against you, without understanding what is happening and why the bistro will empty your deposit. It is also very important to have an initially large deposit that would withstand a drawdown and a double purchase volume. _________________________________________________ Benefits of money management using the Martingale method. 1) It is possible with the right choice of instrument to significantly disperse the deposit. 2) Very often, you make a purchase at the lowest prices or close to the minimum values. This is achieved due to the fact that when the price goes against you, you should buy lower, and with a high degree of probability one of the purchases will be the minimum value of the trend. The main thing is that the deposit does not run dry until this moment. 3) With the help of Martingale, sometimes you can pull out at a loss, or even in a plus, it would seem a hopeless position with the help of an additional asset with an increased volume from the first entry. And when the price moves in our favor, we can exit with the entire volume of one transaction and thereby close the losing trade. By other methods, we had to wait a long time for a certain price, or to make a lot of positive transactions in order to cover losses. ____________________________________________________________ Disadvantages of money management using the Martingale method. 1) Martingale's capital management method, especially its classic version, assumes a sufficiently large deposit that will be able to withstand a large minus in open positions and will allow opening new positions with an increased volume. 2) The effectiveness of the Martingale method directly depends on your trading strategy in which it is applied. If the strategy has low efficiency or is completely unprofitable, then this method will only aggravate it. 3) A high proportion of the probability of a deposit being leaked if the trading instruments are chosen incorrectly. The Martingale method has an increased level of risk. If the classical rules of money management allow a risk of 3-5% of the deposit, then the riskiness of strategies with Martingale is about 60%. ___________________________________________________ I would like to add that martingale is often used (almost always) on viola when recruiting a large position, only in a modified form. This is still more of a “market maker” strategy, but one of the components of the work is martingale. With each new entrance, loading a glass with a dialed position. ____________________________________________________ Position trading. Position Trading Rules: 1) A signal to enter a position is the beginning of a trend on a large timeframe (with a timeframe of 1 day or 1 week). 2) Exit from the transaction is carried out only if there are sufficient grounds for the end of the trend (trend change). Positional trading is suitable for those who have already traded an impressive depot and are already tired of staring at the monitor and burning their time, spoiling their eyesight. For those who no longer get high from the excitement of management and so on. Because a large depot can in most cases be dispersed only by such methods. A person must have iron patience and an understanding of the market cycles. Because profits need to wait a long time. As you can see from the graph, for example, only one trend can last up to a year. Positional trading is the work on the trend on a long-term basis, on charts covering a large time scale. For its implementation, fundamental and technical analysis is often used. Position trading is suitable for all types of markets: cryptocurrencies, stocks, goods, Forex. In other words, position trading refers to a relatively long-term holding of a position in the direction of a global trend. Thus, position trading is an independent style, significantly different from others. Market participants can use this approach to hold short-term and long-term positions. Maintaining a position in the trend, and not work on small weekly fluctuations. This is the main difference from swing, which involves working on the basis of market cycles of several days. In positional trading, you can hold a trade for months or even a year or more (Dow Jones index), it all depends on the trend. Coins for positional trading are selected very carefully, they must be reliable, be closer to TOP or be this top as an example of Litecoin. There should be a real development of the project in the long term, with a strong team that really does something, and not only has a promise legend. It is very important that the coin you choose for positional trading be highly liquid. You can work (or rather need) as in long and short. In any direction the price you earn. Only the large time frame is important, we do not pay attention to small price fluctuations. The purchase / sale of an asset is made only upon confirmation of a change in trend. No hai and loy! Minimum prices and maximums will be left for hamsters. ____________________________________ The advantages of positional trading. 1) Does not take into account small price changes, that is, does not require constant monitoring of the situation. 2) There is no need to be near the computer all the time. In positional strategy, the most important thing is a deep and thorough analysis, on the basis of which a further decision is made. 3) An open position simply needs to be monitored if there is a situation that can change the position or price. Positional trading strategy is an analysis of daily, weekly and monthly timeframes; holding an open position for at least a few days to several months. In simple terms, positional trading is a meaningful and balanced entry into a transaction based on holding a position in a trend. ____________________________________ The disadvantages of positional trading. 1) a long expectation of results that can actually be measured only after months or years; 2) high responsibility for each forecast and analysis, since it can take many days and weeks to hold the wrong position; 3) slow progress in trading (holding positions is good if the trader already has experience, but you won’t be able to gain it quickly by opening deals once a year); 4) the need for significant investment (you can get a tangible income from position trading only if you have a decent amount of money in the account). As a result, holding a position in certain cases is a significant advantage for an experienced trader, but fatal for beginner speculators. _____________________________________________________ Also in positional trading, I made a training idea on examples of the LTC / BTC pair. bidding and everything described there is relevant for working now on a coin. EDUCATION LTC / BTC Positional trend trading in the channel with a step of 190%. Also in the fixed ideas under the description of this, all my teaching ideas are published here on Tradingview.
COINBASE:BTCUSDEducation
by SpartaBTC
13
Capital Management - Pyramiding. Coin for pumping. Matic.Money Management Method - Pyramiding in action online on a pump coin. Matic / btc . Big profits are minimal risk. Smart trading. Stop Loss showed where to place and by what principle they move because all the zombies want to see them. Stop Loss takes place when you are not in control of a position for a long time. But you must clearly understand where you should go when the price goes against you, and no retention of a losing position, in case, "what if the price comes back." Always adhere to your strategy and plan, but at the same time, be flexible and have all the scenarios in advance. Be smarter for other market participants. Matic / btc pyramiding in profit figures now: 1 entry point for $ 1000 + 177% $ 2700 (net $ 1700). 2 entry point for $ 1000 + 135% $ 2350 (net $ 1350). 3 entry point for $ 1000 + 90% $ 1900 (net $ 900). 4 entry point for $ 1000 + 35% $ 1350 (net $ 350). The total profit at the moment from 4 entry points with a minimum risk of $ 4000 becomes $ 8350 (net $ 4300). There is one thing, but the profit is much larger, as the trade was conducted in the accumulation channel with a price step of + 77%. Trading was carried out by 30% of the accumulated position, increasing it with complex%. Trading in the channel will allow you to advance to a specific profit before the channel breakthrough. It will also help minimize its risks in case the uptrend support of the accumulation channel is broken down. As you would already be in profit from trading in the channel in 77% increments, at least cover Stop Loss loss. It is clear that the movement of 77% of the channel will not come out each time, like the entrance and exit when confirming the price reversal from support / resistance. But 30-40% can be obtained, but not always. This also needs to be understood. Also no need to be afraid to buy at prices at a higher price. Sometimes buying at slightly higher prices is much safer than buying at the bottom, which may not be the bottom. The most important thing is the correct entry and exit point. The entry point should be with a potential big profit and minimal risk. What else does trading in the accumulation channel give you? You need to understand what could have been so (it is unlikely, but this should not be ruled out) that the price channel would have broken down and fixed under it. If you were “Waiting” like everyone else, it would mean a losing trade. And a loss in the amount of your Stop Loss according to your strategy. And if you have a big position, but not a lot of liquidity in a coin? As a rule, such coins are so, then there are situations when a breakthrough of support creates a panic-drain in the market, which goes to a large percentage of the price movement. Here, in this case, the extra earned profit up to the input amount helps. Another addition in such coins in most cases is not possible to become short, therefore trading in two directions will not work. This must be understood in advance and taken into account in your trading strategy! It is also important that someone thinks that he would just enter the breakout zone of the downtrend and take the same + 100% without these games and complexity. This is so if you have a small input, let's say $ 500-1,000 is not a problem, but if the amount is larger, this will cause difficulties to enter not noticeably and not provoke a premature price increase. You need to understand that at important pivot points you are not the only ones who want to enter the market, and in some coins the liquidity is low. And an entry instead of a step of + 2-3% can provoke a price increase of 10%. You can just trigger a panic buy. Another option, for example, you bought 50% of the coins for the planned amount. Further you see that a further purchase will provoke an increase in the price by an unacceptable%. You can use your purchase to keep the price from rising and force other market participants to sell you and thereby gain the remaining 50% of the planned position. This works if you know how to work with a glass and a ribbon of sales and purchases, well hiding the actions made in advance. After all, you need to understand that not only hamsters are on the market, and there are traders who not only look at charts, and therefore are more informative in what is actually happening. But all this only works in ordinary situations. At important points in the price reversal, your walls will be eaten up, you will give someone a gift allowing them to buy a large position without slipping the price. Just ask yourself a question, and you wouldn’t do it if someone gave you such a gift? It is easier to work on TOP coins with this management method due to the greater liquidity and greater predictability of the price movement, but the profit there is many times smaller and more time-stretched. Time is money. The liquidity of TOP coins allows you to work in large amounts, and there will always be enough liquidity for a short Stop Loss, which can not be said about pump coins. It is worth mentioning that you can work short on top coins if the price goes against you, therefore there is less risk due to greater plasticity for the trading instrument. But once again I’ll remind you the profit is much less, a long extended time interval and a small selection of trading tools. I showed in more detail about this method of money management on TOP coins using the example of LTC / USD in these trading ideas: EDUCATION Pyramiding How to earn 52000 with a risk of 5% from 10000 1part EDUCATION Pyramiding money management. 2 part. Short LTC/USD The trading idea for this coin for 13 11 2019 is before pumping and leaving the accumulation zone. MATIC at the breakout zone of the downtrend Great growth potent
MEducation
by SpartaBTC
Pyramiding online on a coin for pumping. Matic. Smart trading. Money Management Method - Pyramiding in action online on a pump coin. Matic / btc. Big profits are minimal risk. Stop Loss showed where to place and by what principle they move because all the zombies want to see them. Stop Loss takes place when you are not in control of a position for a long time. But you must clearly understand where you should go when the price goes against you, and no retention of a losing position, in case, "what if the price comes back." Always adhere to your strategy and plan, but at the same time, be flexible and have all the scenarios in advance. Be smarter for other market participants. Matic / btc pyramiding in profit figures now: 1 entry point for $ 1000 + 177% $ 2700 (net $ 1700). 2 entry point for $ 1000 + 135% $ 2350 (net $ 1350). 3 entry point for $ 1000 + 90% $ 1900 (net $ 900). 4 entry point for $ 1000 + 35% $ 1350 (net $ 350). The total profit at the moment from 4 entry points with a minimum risk of $ 4000 becomes $ 8350 (net $ 4300). There is one thing, but the profit is much larger, as the trade was conducted in the accumulation channel with a price step of + 77%. Trading was carried out by 30% of the accumulated position, increasing it with complex%. Trading in the channel will allow you to advance to a specific profit before the channel breakthrough . It will also help minimize its risks in case the uptrend support of the accumulation channel is broken down . As you would already be in profit from trading in the channel in 77% increments, at least cover Stop Loss loss. It is clear that the movement of 77% of the channel will not come out each time, like the entrance and exit when confirming the price reversal from support / resistance. But 30-40% can be obtained, but not always. This also needs to be understood. Also no need to be afraid to buy at prices at a higher price. Sometimes buying at slightly higher prices is much safer than buying at the bottom, which may not be the bottom. The most important thing is the correct entry and exit point. The entry point should be with a potential big profit and minimal risk. What else does trading in the accumulation channel give you? You need to understand what could have been so (it is unlikely, but this should not be ruled out) that the price channel would have broken down and fixed under it. If you were “Waiting” like everyone else, it would mean a losing trade. And a loss in the amount of your Stop Loss according to your strategy. And if you have a big position, but not a lot of liquidity in a coin? As a rule, such coins are so, then there are situations when a breakthrough of support creates a panic-drain in the market, which goes to a large percentage of the price movement. Here, in this case, the extra earned profit up to the input amount helps. Another addition in such coins in most cases is not possible to become short, therefore trading in two directions will not work. This must be understood in advance and taken into account in your trading strategy! It is also important that someone thinks that he would just enter the breakout zone of the downtrend and take the same + 100% without these games and complexity. This is so if you have a small input, let's say $ 500-1,000 is not a problem, but if the amount is larger, this will cause difficulties to enter not noticeably and not provoke a premature price increase. You need to understand that at important pivot points you are not the only ones who want to enter the market, and in some coins the liquidity is low. And an entry instead of a step of + 2-3% can provoke a price increase of 10%. You can just trigger a panic buy. Another option, for example, you bought 50% of the coins for the planned amount. Further you see that a further purchase will provoke an increase in the price by an unacceptable%. You can use your purchase to keep the price from rising and force other market participants to sell you and thereby gain the remaining 50% of the planned position. This works if you know how to work with a glass and a ribbon of sales and purchases, well hiding the actions made in advance. After all, you need to understand that not only hamsters are on the market, and there are traders who not only look at charts, and therefore are more informative in what is actually happening. But all this only works in ordinary situations. At important points in the price reversal, your walls will be eaten up, you will give someone a gift allowing them to buy a large position without slipping the price. Just ask yourself a question, and you wouldn’t do it if someone gave you such a gift? It is easier to work on TOP coins with this management method due to the greater liquidity and greater predictability of the price movement, but the profit there is many times smaller and more time-stretched. Time is money. The liquidity of TOP coins allows you to work in large amounts, and there will always be enough liquidity for a short Stop Loss, which can not be said about pump coins. It is worth mentioning that you can work short on top coins if the price goes against you, therefore there is less risk due to greater plasticity for the trading instrument. But once again I’ll remind you the profit is much less, a long extended time interval and a small selection of trading tools. I showed in more detail about this method of money management on TOP coins using the example of LTC / USD in these trading ideas: EDUCATION Pyramiding How to earn 52000 with a risk of 5% from 10000 1part EDUCATION Pyramiding money management. 2 part. Short LTC/USD The trading idea for this coin for 13 11 2019 is before pumping and leaving the accumulation zone. MATIC at the breakout zone of the downtrend Great growth potent
MEducation
by SpartaBTC
IS IT WORTH TAKING THE TRADE? THE FINAL DECISIONSSo you have the "perfect" setup; all the stars align and you feel utterly confident in taking the trade, but should you? I have a process that must be completed before I even think about pressing the trigger. Fundamental analysis points me in one of two directions, then from there I'm either short or long. I then look if there is a technical entry point that lines up in the way I want to enter. The final step to take is too see what target will be and what my R:R is. For those that don't know R:R is risk to reward. So if you have 1:1 R:R and you risk 1% of your capital on a trade, then you stand to gain only 1%. This is pretty much a 50/50 gamble, and we don't gamble in trading. If all the stars align and the R:R is 1:1 DON'T TAKE THE TRADE, MOVE ON! We win by having better winning trades than looser's. Ideally I want a 1:1.5 R:R, ideally 1:2 (So if i risk 1% and my trade reaches TP I gain 1.5% or 2%). If I have a R:R less that this I stay away or risk 0.5% on a trade, but I advise you stay away from the trade and look for another opportunity. After all, there are infinite entries in the future. Happy Trading.
by joebrownFX
USDCHF what is nextWhenever we have multi lows/tops breaking is stronger than usual, as we have right now. The price has break Fibo and MA200 level and strongly continue to rise. RSI at lower time frames is overbought, which can be some short opportunity to squeeze a bit. As I see Fibonacci 61.8 will remain resistance level ( daily fibo) and Fibo 62.8 ( weekly) will remain support level. After smaller profits with sell action, my play for this will be SELL at 1.00 area and compounding those trades with proper money management. For those who can afford: 10k at 1.00, 25 k at 1.01, 50k at 1.02
by DejanDjekic
HOW TO MANAGE RISK (ESSENTIAL MATERIAL)How do I calculate/manage risk? Managing your risk is absolutely essential as profitable trader. When you enter a trade there are only five outcomes: 1) Big win; 2) Small win; 3) Break even; 4) Small loss; 5) Big loss. As long as you can cut off the "BIG LOSS", no matter how bad you trade, its still likely that you are a profitable trader. Most people's account got blown up because of big losses. Here is how I do it: 1) Every trade I only invest 2% of my entire capital; eg a $10000USD account the affordable stop loss would be 2% x $10000USD = $200USD. 2) Calculate my stop loss in pipes; eg 50 pipes ; $200/50= $4 USD per pipe => Lot size =0.4 Standard Lot eg 10 pipes ; $200/10=$2 USD per pipe => Lot size = 2 Standard Lot For a $10000USD account if you are to blown up your account based on the above methodology you will need 50 consecutive losses, which is statistically impossible. Apart from the above personally I have also set up my ground rule as follow: if my account is decreased by 5% daily (including floating losses) I am done trading for the day. This is because you WILL become emotional at this point and will want to win back. This win back thought will kill your account. Accept the loss and move on next day. Losing is part of trading.
TVC:DXYEducation
by StevenFu
1
OIL UKOIL BCOUSDPlease find information in the chart bubbles. good luck and have fun trading! always focus on money management. you can take a lot of 1% losses but your account can only handle a view big losses, right? when you lose 10% e.g. 1000$ of your 10k account then you have 9000 left. the next 10% risk trade is only 900$, so the potential winning gets smaller, too. after that 2nd one being stopped out again you have some 8100$ left! risking again 10% of that is 810$ risk for the 3rd trade. now this one needs to be more than -more- than a 1:2 winner to get you back to breakeven. if lost you have some 7300$ left. with again risking 10% (730$) in the 4th trade this one need to be a 1 : 3.6 winner to get you close to breakeven... hope you see the point. in addition: think of your psychology. what does it do to your trading style when you started with 10000$ account and you only have 5000$ left? are you panicking? are you still trading your proven strategy? are you averthinking things and switching markets or strategies or rules? a good chance you will do stupid tings like that, right? ;)
OANDA:BCOUSDShort
by ernstschwarz
2
AUDNZD: Trade Update / Risk LessonWhats up guys? This idea is correlated to the one linked below. The difference between those two is the two yellow boxes. In the first i counted the first level as yellow box wrong and so the trade made another move down. I just wanted to give my follow traders a quick update about how the idea now looks with the correct two yellow consolidation boxes. We do not expect price to rise before another move to the downside. And yes we are still in the trade, which is linked below. Remember using always something between 1-2 percent risk keeps you long term in the game and also protects you from these mistakes. I am only 0.5 percent in drawdown from this trade!
Long
by darian_fx