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...
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...
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...
BINANCE: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.
Hello, 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.
OANDA: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...
Wrapping up from Part 1, I cover the example of taking 1/3rd profits and how that affects your risk in a potentially losing trade.
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.
☑️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...
1. People are born traders. While it is true that certain personal characteristics make it easier to trade, no one is born a trader. One of the main themes of the Market Wizards books written by Jack Schwager is that almost none of the market wizards was successful from the start. They all worked hard at it. 2. You have to have a high IQ to trade. Just not true....
Hey traders, Planning your every trade, you should know in advance the profit that you are aiming to make and the maximum amount of money you are willing to lose. In this educational article, we will discuss risk reward ratio - the tool that is used to compare your potentials losses and profits. Let's start with an example. Imagine you see a good buying...
🟩STOP LOSS IS:A stop-loss order is an order that automatically closes a losing position once the price hits the pre-specified level. We usually calculate SL in pips, but there can be many ways to set it. It can be time based, percentage based or volatility based. For some investors SL is some piece of critical news, which alters their perception of the value of...
Hey traders, Talking to many struggling traders from different parts of the world, I realized that the majority constantly makes the same mistake: they do not set a stop loss. Asking for the reason why they do that, the common answer is that these traders consider the manual position closing to be safer, implying that if the market goes in the opposite...
he Average True Range is a volatility indicator measuring how much the price of an asset has moved over a certain number of periods, in other words how volatile the asset is. It was created by J. Welles Wilder and was featured in his book “New Concepts in Technical Trading System”. It was originally designed as a volatility indicator able to capture gaps in...
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...
Hello everyone! One of the most important , and in the same time, one of the hardest aspects of trading is the ability to manage correctly your emotions and leave them aside while trading. So how can we manage our emotions in stressful situations? Here are some tips that every trader should consider when starting trading: 1. DO NOT ACT ON ANGER: every time...
Hello again! Here I prepared for you what I consider the most important tool when it comes to risk management and developing a discipline, which helped me a lot in my trading journey: stop loss! At first, I have to admit that I found it truly frustrating to see how 2 pips can trigger the stop loss and right after that my position reaches my target, but in...
💲In today's educational post, I would like to share with you a post on: Amount of Return Necessary to Restore to Original Equity Value 10% - 11.1% 20% - 25% 30% - 42.85% 40% - 66.66% 50% - 100% 60% - 150% 70% - 233% 80% - 400% 90% - 900% 100% - ☠️ 💲Remember, never risk more than 0.5%-2% of your capital on one positions 💲Never lose money you can't...