This video breaks down how its ok to take a loss even when our plan does work out in the long run. We have to be able to maintain these good risk management habits even if we are eventually right. Because in the event we aren't right on the end we have a much heavier loss that's harder to recover from.
This is a story about how a good friend of mine lost over 700.000,- in 9 hours. And about the importance of the role of YOUR psyche in trading. Some time ago, a fellow trader phoned me. Let's call him Tom. He traded occasionally, and by day was the CEO of a small company. We arranged to meet. It supposed to be an ordinary friendly conversation. There was no...
In my intraday-trading, I'm pretty good to make money on a regular basis. It's a long time since I got out of control. But yesterday, I messed up twice. I was going short in a level, where I knew it was the bottom. The S&P500 intraday Chart showed clear support. And if the S&P goes north, the NQ will too in most cases. Then I did not follow my (any) plan and...
As it is said, A strategy is a reflection of a trader’s character . Whatever sentiments/emotions you have, reflect in your trading decisions. At first, people think that, ‘I will use xyz indicator and buy here and sell there’, thinking it’s easy to have a method that is simple. But when reality hits, all the simplicity runs out of the window with your money....
🌺Trading is not just about making money. it's also about understanding yourself and your beliefs. Your beliefs can shape the way you approach trading and ultimately impact your success. It's important to identify what we believe and how these thoughts influence our decision-making. 🌼The role of beliefs in trading is often underappreciated. A trader's beliefs...
This question is quite scary, but if you are a novice and see this question, congratulations, you are on the right path of trading. The most important lesson to learn before entering the financial markets is risk expectation. You can ask yourself, how much money do you want to make from trading? Is your goal asset appreciation, or a small fortune? If a trade...
About bad luck and downtimes in trading. Let's discuss the downtimes that traders may face. While everyone experiences them, some traders can maintain a calm mindset, while others may collapse under the pressure. What sets them apart? As I mentioned in my previous articles, trading involves risks, much like gambling. If you're seeking a risk-free investment,...
There are only two ways to avoid losing capital: one is to have a small stop-loss space (reflected in the entry position), and the other is not to bet too much at once. For example, buying one lot with $10,000 can earn $1,000, and buying ten lots with $100,000 can earn $10,000. Although the probability is the same, the more you do, the more you earn, and the...
1. Don't panic: Losing a trade can be frustrating, but it's important to remain calm and not make any hasty decisions. Remember that investing in stocks and cryptocurrency carries inherent risks, and losing a trade is a normal part of the process. 2. Don't hold onto a losing position: If a trade is not going in your favor, it's generally a good idea to cut...
In the picture you can see my pyramiding staggered stop strategy. Low at comments for a link where you can read more about this!
This chart shows the common stop-loss touch and bounce pattern. And this happened because I was liquidity. The stop-loss was set at an "obvious" invalidation level, the previous supply level ($20,800). So, right below it, there was heavy bidding. The stop-loss hunters will place their bids just slightly below presumed ask levels.
Risk to reward ratio. What is it? What does it mean and how do we use it? Now, if you made it to the point where you're here on TradingView, there's a good chance that you have heard about Risk to Reward ratio. Today, I want to dive into what it really means and how to actually utilize it. I see so many beginners missing out on huge profits and opportunities...
sometimes you dont get what you give or what you are expecting! ive been looking this chart for few weeks now and i was expecting a nice trade from this, i did what i had to i read the chart understood it, and made a decision to look over the price and the structure that i drew. and after these days of analysis and studying the idea i had for this market didn't do...
What is a stop loss? Why do i need to use it? Why should i listen? Stop loss is designed to limit an investor's loss, it is built FOR YOU. It's like fighting a boss without a weapon, yet there are multitudes of weapon ready to be used for you beside you. Why should i use a stop loss when my liquidation is far? MARKET VOLATILITY IS AT THE HIGHEST RIGHT NOW, not...
Losses are part of this business. People do not react well to losses. Badly handled losses in trading can trigger bigger losses. Furthermore, these have the dangerous potential of wiping out entire accounts. If you want to make it as a trader you need to have a solid psychological approach to accept and handle losses. Lots of internet articles are suggesting that...
Today we are comparing fixed equity percentage vs. fixed dollar amount to show how fixed % has an edge. The chart above should mostly be self-explanatory. The only real note here is that while the difference can be slight in the short term, and while static dollar amount does have an advantage in some instances, over the long term the data suggests the % based...
HOW TO DEAL WITH LOSING TRADES
Following on from my previous idea where I showed the next buying point, here is my suggested stop loss and target price for this trade. New!—BuzzWeekly coming soon!