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Riskmanagementstrategy

How to win over greed?🎃1. Greed is the problem Many beginners and even experienced traders face greed. It's a feeling that makes you believe in your superiority over the market: • Opening a lot of trades, breaking risk management • Continuing to trade after incurring a loss • Refusing to take profits, hoping to earn more • Averaging losing trades, because everything is about to change. • Believing in the reliability of your pattern, although no pattern or indicator always works out 100%. 2. Why does greed take over? We all have our own desires and goals. Society teaches us that we shouldn't deny ourselves comfort. This leads the vast majority to take out loans for new clothes, iPhones, Cars.. This is how people get used to greed's superiority and put it before discipline, getting accustomed to being able to live beyond their means. What do you think happens to such people when they come into trading? God forbid, such a person immediately learns about futures, then he will lose everything in a month at most. This is exactly the 95% who lose money in the market. They suddenly see an opportunity to make a million out of $10,000 in a month, and, inspired by the stories of dogecoin millionaires from YouTube and Reddit, start to long bitcoin with x125 leverage. There is another type. They do not rush to make money, they act more cautiously. They set themselves up right away that "trading is a long game and there is no hurry". They develop steadily and study pattern after pattern. However, their game pays off very slowly, and under the influence of their expertise they allow themselves more and more "experiments". They are like King Theoden from Lord of the Rings, who was slowly losing his mind under the watchful eye of Wormtongue. 3. How do you get around greed and start using it to your advantage? Change your perspective. Instead of being greedy for money, become greedy for your professional growth . Ironically, if you stop focusing on money, they will come. Create a journal and start analyzing your trades: • What were your reasons for entering? • Did you need to open that trade or was it suboptimal? • Did you act under the influence of emotions, and if so, which one and why? Develop, grow, and reward yourself when you get better, even if your trading results are unchanged. Your brain needs to get used to the fact that the most important thing now is discipline and small improvements. Step by step, you will become a profitable trader and, when you do, withdraw your honestly earned profits into fiat to reward yourself for your fortitude and persistence. You will succeed, because unlike all casino players, you will have the backbone and endurance! Good luck on your journey! If you have any questions, feel free to ask them in the comments, I always check and answer them. Leave a like so you can enjoy the trader psychology posts in the future as well, and thanks for reading to the end. You are the best!
Education
by Artem_Dishel
8
The myth of risk management - Hack it :) I speak to a lot of traders, new and veteran. It's surprising to see how so many are not sure how risk is calculated and what the exposure really means in terms of P&L. This obviously is a major block in the road on the way to gaining confidence necessary to avoid losses. So let's break it down - *P&L is calculated by lot size * movement. Example: If you have 100 ounces of Gold (1 lot) - That's $100 in P&L (Profit/loss) for each $1 Gold moves in value, so if the price 1890 and you are buying 1 lot , price moves by $5 higher - That's a $500 profit ($100*$) , same thing in reverse, if it would drop by $5 that's a negative of -$500 in open P&L. Leverage decides what you are technically able to open in terms of margin used. So if your leverage on Gold is 1:100 - The value of a 1 lot trade is the price of Gold multiplied by the amount of ounces , so let's say 1890*100 = $189,000 value trade, but your leverage is 1:100, so you would only need $1,890 of used margin (189,000:100) to open the trade. But if you have 1:20 as leverage, you would need 5 times more used margin to open the trade. So a common misconception is that your risk is your leverage. That's not true. Your risk is your lot size. But if you have very high leverage , than you can open very high lot size with a small account - Which is extremely dangerous and not advised. So what does an experienced , smart trader do? No matter what his leverage is, he understands the short-term and the long-term range of movement, and opens a lot size that fits the size of his account considering the range of movement. If the account size is $100,000 , and you are buying 1 lot of Gold: The weekly range is 1840-2,000 , the short-term range is 1880-1910 - Price is 1890 So the exposure is ~$1,000 in the short-term (1%) back to the short-term support 1880 , compared to $2,000 on the short-term resistance (2%) of 1910. The long-term exposure is to 1840, meaning a $5,000 exposure 5% ($100*$50) from 1890 - but 2,000 is the top of the weekly range, meaning - $110 up ($110*100) = $11,000 (11%). So didn't really matter what the leverage is 1:20 or 1:100, what matters here is the range and the lot size. Thank you for reading! ----------------------------------------------------------------------------------------------------------------------------------- If you liked my educational idea please like and follow! It would mean the world to me! I promise to answer all comments/questions - I encourage you to communicate :) Thank you so much for reading - Looking forward to reaching as many of you guys as I can :D -----------------------------------------------------------------------------------------------------------------------------------
BITSTAMP:BTCUSDEducation
by Exactus
Why do traders mostly lose? Point of viewFor 3-5 minutes while going through this forget what you know about trading. First thing is : Let's remember our goal, every successful action/plan started with a clear goal that led the way: In our case it's profit When starting to trade seeing the numbers go up and down plays with your head and emotion quickly tempting you with the unlimited potential at your fingertips. Even experienced traders that had some lucky streaks forget that the wanted end result is simple - to be in the money, meaning, making profits consistently. In order to secure our goal of making profit we need to first start with remembering this is not a 'get rich quick' scheme and there is no magic - A big bunch of money won't fall on your head out of nowhere, at least not consistently. Now - remember this : It's a lot better to be consistently profitable than to have a series of a few winning streaks . With this in mind, it's great if you would put up a sticky note on your screen reminding this - As at times it gets hard keeping sight when numbers run wild. I see many traders look at between 5-10 crypto currencies, 3 commodities and 10 currency pairs - Deciding based on a variety of different things what to trade on every time. This way of action has no structure at all - Which makes it very hard to reach a certain target: profit. It is necessary to have focus, structure and a plan with a single minded mission: PROFIT. But not just any profit - smart profit, a profit that was a result of planned action. So how do you make a plan? The easiest way to effectively craft a well thought out plan is to focus on between 2 to max 3 instruments Learning the range, price action and tendencies of 2-3 instruments can be done within a few weeks going through 1h, 4h and weekly time-frames and determining the short-term and long-term projections of each of the 2-3 instruments. Once you start seeing the patterns and understanding the price action continue by implementing what you learned on the instruments on a demo account testing a possible strategy that relies on clear idea of what to do with every possible scenario. You may not get it right with the first strategy, so try others until you find one that shows consistent results - while mastering the 2-3 instruments you have chosen and continuing to following up on a daily basis on relevant news, changes in trends on short-term and long-term projections. For me - Because I've dedicated years trading and following Gold and WTI , learning how and why it moves - I prefer trading a swing trading strategy, keeping trades open between 3 days to 2 weeks usually, this puts my bigger picture understanding of the instruments into true effect The difficulties you will find while searching for your strategy are - *Greed *Fear *Lack of patience *Lack of discipline in plan Don't let them in - Remember your plan and one and only goal : consistent profit! Thank you for reading, Let me know what you think and what you would like to hear more about :D
BITSTAMP:BTCUSDEducation
by Exactus
3
BTC in accumulation from 4/2021. Long-term bullish triangle!Today I want to present my main scenario. As long as 37400 holds I give this scenario the highest probabillity. I have identified an expanded triangle in the WB of the triagnle. Foundation for this scenario is WB which made HH and WC which has corrective nature and was unable to make LL thus it made HL. Now we are moving up in WD which is a complex correction with heavily overlapping structure. It is however still making HHs and HLs. As long this is the case we should be bullish. We have already seen some bullish indications such as D engulfing and swept liquidity below 39k. The probabillity of this scenario increases if we manage to get the confirmations labelled on the chart. If this scenario is correct we should finished the triagnle by summer and ultimately move to ATHs towards the end of the year (and perhaps reached the mythic 100k). We are forming our gameplan based on the indentified patterns which give us higher probabillity (they have been proven statistically significant) which in the long run should give us an edge (alfa = overperformance) in the markets. However, we should also be prepared for the alternative scenarios with lower probabillity so that we dont suffer large losses or get wiped out, even if it means limiting our profits and cutting losses when we are proven wrong. As TWC says, the only thing you can control in the markets is how much are you going to lose.
FTX:BTCPERPLong
by Tradern53
2
Not having a position is also a position - When trading is bad?Every day we start by choosing between long and short. Sometimes you wake up, look at the btc chart - and clearly see your setup. And sometimes you don't see it. But you still saw how many of your friends traded shorts successfully and decide to enter a hostile market. Bottom line: Lost profit, exhausted nerves, stress, a blow to self-esteem. Most traders forget that there is a third option - to stand aside. Let's discuss when such position can be useful and why most people use it so rarely. Pro traders can be split into 2 types: Bulls and bears. They trade for profit only in one direction, because they have a trained eye to see only their kind of setups. When a bull finds himself in a bear market, he either trades in the red or breakeven. The same true for the bear. And yet, even knowing this, the trader continues to trade unfriendly setups. Fueled by success that he carries from his market, he is sure that just a little more, a LITTLE LITTLE more, and he will be able to trade profitably in this market as well. "And if I can trade for profit in both directions, then I will become an absolute terminator and even Warren Buffett himself will personally beg me to share my market forecast with him!" I don’t know if you woke up with such thoughts in the morning, but I definitely had a couple of times. The answer to this phenomenon is GREED (for money or fame). And the easiest way to get rid of such incidents is to write the following rule in your trading algorithm (I hope you have it): • Trading during correction is prohibited. Just one sentence will save you a huge amount of money and help you increase your capital much faster. Instead of losing money trading corrections, it is better to: • Relax and spend part of your honestly earned profit on yourself and your loved ones. • Patiently wait for your market and return to the game. Do this - and trading will bring you much more pleasure, and you will earn even more and enjoy your life! If this article was useful to you, please like and leave a comment so that I understand that it has value to you and will continue to write educational material in the future✌️
Education
by Artem_Dishel
277
How to lose your deposit quickly? Easy to follow Step-By-Step🔥Why am I qualified enough to teach you this? I lost 16 deposits and in 6 years I heard dozens of stories of people who lost their life savings in a couple of months by trading. I have personally tested many of these rules and confirmed that they work. So what are we waiting for? Lets get it started! 1. Trade with maximum leverage There is no need to trifle, the bigger leverage is, the greater your profit will be🤑 2. Don't use stop losses SL’s are for the weak. You probably remember how many times your positions went in the right direction after you closed them by stop loss. Stop losses are evil🤮 3. Average losing positions Everything is simple here - the more you average, the less you lose. That means you can keep going. Nothing ventured, nothing gained🥂 4. Use your last money and don’t be shy to borrow The more money you put in, the more money you pull out. Since you are 100% sure that BTC will grow, take loans not only in banks, but also from shady organizations, do not look at interest - you will repay everything back in a month anyway, and your profit will cover any losses💵 5. Trade only when you have been fired from work, haven't slept all night, your girlfriend/wife has left, or you have quarreled with relatives When everything is bad in your life, it is better to do what you do best - trading. Having earned a lot of money, you will not only be distracted from everyday problems, but also regain confidence and a smile on your face!😉 6. When you closed a losing position, immediately open a new one with double volume to recoup losses You came into trading to win! So win and never admit defeat! You are Hercules and defeating everyone in the market - this is your 14th feat! No step back, only forward!✊ 7. Prioritize Elon Musk's conspiracy theories and tweets over technical analysis Do you already have the conviction that the Illuminati run the market and every time you open a position and the market goes in the opposite direction, the Illuminati move to harm you? If not, then quickly look at your lost trades. You did everything right, but you still lost money. Why is that? Just don't tell anyone...🤫 8. Believe that trading is luck and the odds are always 50/50 This makes it much easier to make decisions. If black has fallen out on the roulette wheel 2 times in a row, then the chances that red will fall out are much greater. Therefore, do not hesitate to go against the trend, probability theory is on your side 💪 9. Stop exercising your body and mind You will need neither a healthy body nor a focused mind in trading. You only need your eyes to see “buy“ and “sell“ buttons, you don't need much intelligence for this. Being in the green zone? The green zone is a myth for suckers who engage in self-deception.😏 10. Quit your daily job Since you already created an account on Binance a week ago, watched a couple of trading videos, sorry, I meant in-depth educational materials, and even have already made a couple of successful trades, then it's time to finally quit that boring job. The road to millions is open, it remains only to take the last step.🤩 11. Manage your friends money Why getting rich alone? Take your friends and family with you. They will be grateful later.🙌 12. Don't look away from the screen until you've regained every last cent. Winners don't walk away with losses. Make sure your deposit has at least doubled before ending a session.😎 13. Never fix profits. If it has grown a little, then it will grow more. Do you remember how you closed the position when the coin grew by 5-10%, and then it rose another 200%? That’s what I’m talking about. Don't close too early, keep trades for the maximum profit.📈 14. Trade at night If you don't have time, don't give up. There is always an opportunity to earn. Even after a hard day at work.🤜🤛 15. Analyze the market on a 5m timeframe and trade on the 1m. Opportunities are always there - the main thing is to be open to them.🤞 I hope these tips will help you quickly drain your deposit down and return to a normal life. If you liked them or you are already using them, please click Like and leave a comment so that I understand that it is valuable to you and will continue to write educational materials in the future.✌️
Education
by Artem_Dishel
32
MARKET RISK MANAGEMENT: WHAT YOU NEED TO DOFor More Trading Videos and Analysis, Go ahead and click on the follow button. Given the current state of the markets at the moment, especially this morning, Correct risk management becomes ever more prominent as a skill. If you do not possess it, you are both putting your capital largely at risk AND missing out on Trades you could actually be taking in the meantime.. This is because when the market moves against you, you can still make money. That in essence is the key to success. We will use the DXY as a measure on this video due to its market exposure.
TVC:DXY
by WillSebastian
using USDT.D for closing or opening positionseach one of those ideas about the USDT dominance show a great opportunity for you. if the first one happen and you still have available liquidity of stables coin you might have a chance to build up your portfolio again. if the 2nd one happen you might wait more to gain more profit from your previous buys. if the 3rd on happen and BTC still obtain enough demand there would be great chance for those who still wait for 2nd entrance( the 1st on was on BTC around 33). so based on this logic I guess that would be a reasonable risk management. the key for a good trader is that you should always have enough liquidity on lower level in order to build a profitable wallet when market go down and give you more opportunity. meanwhile if market give you a chance to close position with profit don't miss the chance and save money. having enough liquidity is more important than huge numbers which are only numbers until you change them to Dollars $$$$. please share your ideas if you are agree or disagree with me and it would be appreciated to press the like button. hope to have more profits day by day. thanks for your patience to read my idea .
CRYPTOCAP:USDT.D
by behzadjl
Risk Management Basics | Retest Trading 💡 Hey traders, Being breakout traders we have two options for trade entries: when the breakout is confirmed we can either open a trading position aggressively once the candle closes above/below the structure or we can be conservative and wait for a retest of the broken structure first. What is peculiar about the second option is the fact that the majority of pro traders prefer the retest entries. In this article, we will discuss the pros and cons of retest trading. ✔️First, let's discuss whether the retest is guaranteed. NO. How often do we see that? Around 50-55% of the time. Does it mean that 45-50% of breakout trades will be missed? YES. The main disadvantage of retest trading is that a lot of trading opportunities will be missed. Occasionally the breakout triggers a strong market rally not letting the price return back to the broken structure. So what is the point to wait for a retest then? Why let the market go without us in case if there is no retest? ✔️Most of the time the breakout candle closes quite far from a broken level. Opening the trading position once the candle closes and setting a stop loss below/above the broken structure, one can get a very big stop loss. Such a big stop that its pip value exceeds or equals the potential return. 🖼️In the picture, I drew a classic channel breakout trade. The aggressive trader opened a long position as the candle closed above the channel's resistance. His stop loss is lying below the lower low of the channel. Analyzing his risk to reward ratio, we can see that his reward equals his risk. On the right side is the position of the conservative trader. His stop loss in lying on the same level. However, instead of opening a trading position on a breakout candle, he decided to wait for a retest of the broken resistance of the channel. Just a slight adjustment of his entry-level gives him a completely different risk to reward ratio. ❗️Patience pays in trading. Missing some trades a retest trader will outperform the aggressive trader in the long run. Trading is about weighting your potential gains & losses. Paying commissions and swaps for every trade, it is much better for us to trade less but pick the setups that give us a decent potential reward. What type of trading do you prefer? ❤️Please, support this idea with like and comment!❤️
Education
by VasilyTrader
30
BASIC MONEY MANAGEMENT - LOT SIZE VS REVERSAL AND ACCOUNT SIZEWe see too many new traders trade with random lot sizes with no understanding on the impact it has on account sizes, which result in not only losses but BLOWN accounts. This post is by no means a risk or money management strategy but more so just basics on the movement of reversals and how the lot sizes impact the value of your account during this reversal. Trading with the right lot sizes allows a trader to manage their account/money when the trade goes against them. The right size allows a trader to move a range without blowing their account and without seeing their account reverse to the point of no equity. This type of trading gives traders anxiety and in return this anxiety impacts trading psychology. This then has a ripple effect and impacts your trading decisions and analysis. The example we show on the chart is an entry of SELL that reverses by 380 PIPs. This movement happened in literally 2 candles (1hour candles) , so in two hours the price from entry reversed by 380 pips. This example then shows what this equates to in monetary value dependent on lot sizes. The example shows that anyone with a £500 account trading this movement with a lot size of 0.20 would have blown their account. Lot size usage should be based on the size of your account for example; £500 size account - we will only use 0.01 size lot sizes with maximum deployed total no more than 0.05. This will allow an account to survive volatile movements. Also using stop losses ontop of this setup further strengthens the risk management. £1000 size account - we will use 0.02 lot sizes with maximum deployed total no more then 0.10 any given time. £2000 size account - we will use 0.03 lot sizes with maximum deployed total no more then 0.30 any given time. £5000 size account - we will use 0.06 sizes with maximum deployed total no more then 0.50 any given time. Basically 0.10 for every £!000, as the total deployed usage allows us enough flexibility of movement on the chart and then using stop losses ontop of this, gives us further control of our money management. We hope this quick basic insight helps some of the newbies better manage their lot size usage. Please like, comment and follow us to support our work, we really appreciate it! GoldView
OANDA:XAUUSDEducation
by Goldviewfx
16
XRP/USD NO NEED TO RUSHAnalysis: Right now patience is the key on the market, there is no need for huge spikes to the upside. A constantly growing trend will do the job if a lot of people are interested of buying. A lot of analyst posting about 50/50 chances about the price to go up or down, it's always the case, but we need to be 1 step ahead before the price action. If you wait until you see a huge price rise, you miss the low risk-reward opportunities from buying now safely with a stop loss of 1.10$, and you will start buying at 1.6 or even higher to catch the rise and you will have a nonsense risk reward ratio on the trade. As I shared my chart about my last long position you can see that I entered at the bottom of the correction from 1.2$, so our stop loss is at 1.10 in case of a sudden flash crash. I am not speaking about targets right now until we will go higher than the previous high. If it takes a lot of time to get to that top again, it will offers us higher price targets as well. Consider to join our community to get more of this kind for Free. community.protradersnetwork.com #forextrader #forex #forextrading #forexsignals #forexlifestyle #trading #money #cryptocurrency #trader #bitcoin #forexmarket #forexlife #technicalanalysis #stockmarket #forexanalysis #forexmentor #daytrading #forexgroup
Long
by tmsarn
Has Bitcoin found its bottom? How to properly swing trade. Hello Everyone, This is a chart I made a few days ago as bitcoin was approaching 44k. As always. the first step in my analysis is identifying support and resistances on daily chart and looking for the formation of a bullish/bearish pattern to engage in a buying or selling strategy. Next, I look at price action and see if the selling momentum is waning off to support any buillish divergence I see on the chart. As we can see, bitcoin is in a double bottom formation. Now, how do you properly trade this without getting burned? You average in. Averaging in is a way to ensure profit with minimizing your risk. A first buy would be 25% of portfolio at 44.5k (I always buy a bit above support so my limit order fills) which is right above support. A stop loss would need to be just below 43.3k (the previous lowest low). This is about a 3% loss but a total of .07% to your portfolio. If the trade fails you can walk away taking a very small loss and you get lower prices in return. A second buy would need to be confirmed by indicators on a 4 hour to daily timeframe with shorter term timeframes showing bullish behavior as well. A good buy would be around 51-52k depending on the close on a 4 hour and daily candle and I would also move my previous stop loss up depending where the daily candle opened. At this point i would do another 25-40% buy depending on how each chart looks. A third and fourth buy would be constituted by closes above the next resistance levels and how bullish or bearish each timeframe looks. OVerall, averaging in is a great way to ensure big wins with taking minimum losses. Let your winners win and keep your losers small. Be patient, find confirmation, and utilize risk management strategies to help you become a better trader. Please give me a thumbs up if you found this useful and good luck trading!
COINBASE:BTCUSD
by RomanXIV
Stellar Lumens XLM Potential 14:1 Setup Stellar is an entire ecosystem with expanding potential. Here is something I have positioned in for now. TRADING IS NOT SUITABLE FOR EVERYONE. If you don't know what you're doing... TRADING CAN CAUSE YOU TO COMPLETE LOSE ALL OF YOUR MONEY. Even if you "know what you're doing" you can still experience expensive LOSSES and lessons. You could use a practice account and trade with leverage. Feel free to follow me on tradingview for more markups.
BINANCE:XLMUSDLong
by ZacharyHogan
5