🔊I would like to talk a little about money management and risk management. 🙌🏻That’s very important in trading. Because trading isn’t only psychology. 🙅🏻♀️Your financial result depends on how competently you can manage your available capital💸.
🤜🏻Risk management - determining the maximum position volume in a transaction and the maximum stop value.
📌 Never enter the market with one position on all available capital.
The most common money management tactics:
⭐ trade in all capital ⭐ fixed lot ⭐ fixed percentage ⭐ optimal percentage ⭐ safe percentage ⭐ fixed proportion
👌🏻But no matter what money management tactics you choose, the essence will stay the same - you should always consider your risks (the amount, that you will lose in transaction).
If You entered the deal, You should always put Stop Loss, and keep in mind the price level after which you MUST close deal.
✔The concept of positive mathematical expectation✔ The average value of your profits must be higher than the average value of your losses.
THE MOST IMPORTANT RULE IN THE MARKET: 🔴 DON'T STOP! ❣Do not worry about your losses❣
🤜🏻Only on your own mistakes you can learn to be successful💋💋💋 And of course, 👉🏻don’t forget about improvement of your skills.💪🏻
This is why i still think of myself as a noob. The fine print. Calculating targets, risk-reward assessment . On the bright side, still haven't made the same mistake twice !