Hi everyone:

Today I want to make this educational video on how to calculate your risk/reward in trading and investing in the cryptocurrency market.

Many newcomers in the industry are not aware of the importance of risk management. So today let's give out different examples of them on how to properly calculate the $, %, and setting the SL/TP.

This video is intended to help traders and investors to understand how to calculate the amount to risk per trade, or per investment purpose.

I will give different examples of going long and short in trading, as well as buying coins for the purpose of investment.

Doesn't matter what crypto broker exchange you use, this calculation/formula will work, you will just need to do some simple math to get to the right numbers.

Example 1:

Want to go long on BTC in a trade

Scenario:

Trading Account $12,000

Risk 1% of your trading account

Want to go long on BTC when price hits $70,000

You want the Stop Loss @$66,000,

and a TP @ $80,000

Calculation:

Calculate your 1% of the trading account:

$12,000 Account x 0. 01 $120 per trade

Divide the $ you willing to risk to the SL amount

$120 / $4000 = 0.03

Set your entry order or market order

for 0.03 BTC @ $70,000 price

0.03 x $70,000 = $2,100

(This is the amount you will need in your trading account

to execute this position.

If you have leverage then its less $ needed)

Set your SL at $66,000

If price hits your SL, your order would be

0.03 BTC x $66,000 = $1,980

$2,100 - 1,980 = $120 = 1% of your account

Set your TP at $80,000

If price hits your TP, your order would be

0.03 BTC x $80,000 = $2,400

$2,400 - $2,100 = $300 = 2.5% of your account

Example 2:

Want to go long on ADA in a trade

Scenario:

Trading Account $800

Risk 1% of your trading account

Want to go long on ADA when price hits $2.30

You want the Stop Loss @1.70

Calculation:

Calculate your 1% of the trading account:

$800 Account x 0. 01 = $8 per trade

Divide the $ you willing to risk to the SL

$8 / $0.60 = 13.34

Set your entry order or market order

for 13.34 ADA @ 2.30 price

13.34 x 2.30 = $30.68

(This is the amount you will need in your trading account

to execute this position.

If you have leverage then its less $ needed)

Set your SL at $1.70

If price hits your SL, your order would be

13.34 ADA x $1.70 = $22.68

$30.68 - $22.68 = $8 = 1% of your account

Set your TP at $4.00

If price hits your TP, your order would be

13.34 ADA x $4.00 = $53.36

$53.36 - $30.68 = $22.68 = 2.83% of your account

Example 3:

Want to go short on TRX in a trade

Scenario:

Trading Account $54,000

Risk 1.5% of your trading account

Want to go short on TRX when price hits $0.11

You want the Stop Loss @ $0.13

Calculation:

Calculate your 1.5% of the trading account:

$54,000 Account x 0.0150 = $810 per trade

Divide the $ you willing to risk to the SL

$810 / $0.02 = 40 ,500

Set your entry order or market order

for 40 ,500 TRX @ 0.11 price

40 ,500 x 0.11 = $4,455

(This is the amount you will need in your trading account

to execute this position.

If you have leverage then its less $ needed)

Set your SL at $0.13

If price hits your SL, your order would be

40 ,500 TRX x $0.13 = 5,265

$5265 - $4455 = $810 = 1.5% of your account

Set your TP at $0.07

If price hits your TP, your order would be

40 ,500 TRX x $0.07 = $2,835

$4,455 - $2,835 = $1,620 = 2% of your account

Example 4:

Want to buy ETH to hold for long term as investment

Scenario:

Investing Account $20,000

Risk 10% of your investing account

Want to buy ETH to hold for long terms

Want to enter when price hits $4,900

Calculation:

Calculate your 10% of the investing account:

$20,000 Account x 0.10 = $2,000 per investment

Divide the $ you willing to risk to the price you want to enter

$2,000 / $4,900 = 0.4082

Set your entry order or market order

for 0.4082 ETH @ $4,900 price

0.4082 x $4,900 = $2000

(This is the amount you will need in your investing account

to execute this buy.)

You want to lose no more than 25% of your original $2,000 investment.

$2,000 x 0.75 = $1,500

$1,500 / 0.4082 = $3,674.67

Set your alert and SL at $3,674.67

If price hits your alert/SL, your order would be

0.4082 ETH x $3,674.679 = $1500

$2,000 - $1500 = $500 = 25% of $2,000

You want to gain about 50% of your original investment before selling.

$2,000 x 1.50 = $3,000

$3,000 / 0.4082 = $7,349.34

Set your alert and TP at $7,349.34

If price hits your TP, your order would be

0.4082 ETH x $7,349.34 = 3,000.00

$3,000 - $2,000 = $1,000 = 50% of $2,000

Example 5:

Want to buy MATIC to hold for long term as investment

Scenario:

Investing Account $1,500

Risk 20% of your investing account

Want to buy MATIC to hold for long terms

Want to enter when price hits $2.25

Calculation:

Calculate your 20% of the investing account:

$1,500 Account x 0.20 = $300 per investment

Divide the $ you willing to risk to the price you want to enter

$300 / $2.25 = 133.34 MATIC

Set your entry order or market order

for 133.34 MATIC @ $2.25 price

133.34 x $2.25 = $300

(This is the amount you will need in your investing account

to execute this buy.)

You want to lose no more than 50% of your original $300 investment.

$300 x 0.50 = $150

$150 / 133.34 = $1.1249

Set your alert and SL at $1.1249

If price hits your alert/SL, your order would be

133.34 MATIC x $1.1249 = $149.99

$300 - $149.99 = $150. 01 = 50% of $300

You want to gain about 75% of your original investment before selling.

$300 x 1.75 = $525

$525/133.34 = $3.9373

Set your alert and TP at $3.9373

If price hits your TP, your order would be

133.34 MATIC x $3.9373 = $525

525 - $300 = $225 = 75% of $300

Any questions, comments and feedback welcome to let me know.

If you like more of these contents, like, subscribe/follow and comment for me to keep doing them. :)

Jojo

Today I want to make this educational video on how to calculate your risk/reward in trading and investing in the cryptocurrency market.

Many newcomers in the industry are not aware of the importance of risk management. So today let's give out different examples of them on how to properly calculate the $, %, and setting the SL/TP.

This video is intended to help traders and investors to understand how to calculate the amount to risk per trade, or per investment purpose.

I will give different examples of going long and short in trading, as well as buying coins for the purpose of investment.

Doesn't matter what crypto broker exchange you use, this calculation/formula will work, you will just need to do some simple math to get to the right numbers.

Example 1:

Want to go long on BTC in a trade

Scenario:

Trading Account $12,000

Risk 1% of your trading account

Want to go long on BTC when price hits $70,000

You want the Stop Loss @$66,000,

and a TP @ $80,000

Calculation:

Calculate your 1% of the trading account:

$12,000 Account x 0. 01 $120 per trade

Divide the $ you willing to risk to the SL amount

$120 / $4000 = 0.03

Set your entry order or market order

for 0.03 BTC @ $70,000 price

0.03 x $70,000 = $2,100

(This is the amount you will need in your trading account

to execute this position.

If you have leverage then its less $ needed)

Set your SL at $66,000

If price hits your SL, your order would be

0.03 BTC x $66,000 = $1,980

$2,100 - 1,980 = $120 = 1% of your account

Set your TP at $80,000

If price hits your TP, your order would be

0.03 BTC x $80,000 = $2,400

$2,400 - $2,100 = $300 = 2.5% of your account

Example 2:

Want to go long on ADA in a trade

Scenario:

Trading Account $800

Risk 1% of your trading account

Want to go long on ADA when price hits $2.30

You want the Stop Loss @1.70

Calculation:

Calculate your 1% of the trading account:

$800 Account x 0. 01 = $8 per trade

Divide the $ you willing to risk to the SL

$8 / $0.60 = 13.34

Set your entry order or market order

for 13.34 ADA @ 2.30 price

13.34 x 2.30 = $30.68

(This is the amount you will need in your trading account

to execute this position.

If you have leverage then its less $ needed)

Set your SL at $1.70

If price hits your SL, your order would be

13.34 ADA x $1.70 = $22.68

$30.68 - $22.68 = $8 = 1% of your account

Set your TP at $4.00

If price hits your TP, your order would be

13.34 ADA x $4.00 = $53.36

$53.36 - $30.68 = $22.68 = 2.83% of your account

Example 3:

Want to go short on TRX in a trade

Scenario:

Trading Account $54,000

Risk 1.5% of your trading account

Want to go short on TRX when price hits $0.11

You want the Stop Loss @ $0.13

Calculation:

Calculate your 1.5% of the trading account:

$54,000 Account x 0.0150 = $810 per trade

Divide the $ you willing to risk to the SL

$810 / $0.02 = 40 ,500

Set your entry order or market order

for 40 ,500 TRX @ 0.11 price

40 ,500 x 0.11 = $4,455

(This is the amount you will need in your trading account

to execute this position.

If you have leverage then its less $ needed)

Set your SL at $0.13

If price hits your SL, your order would be

40 ,500 TRX x $0.13 = 5,265

$5265 - $4455 = $810 = 1.5% of your account

Set your TP at $0.07

If price hits your TP, your order would be

40 ,500 TRX x $0.07 = $2,835

$4,455 - $2,835 = $1,620 = 2% of your account

Example 4:

Want to buy ETH to hold for long term as investment

Scenario:

Investing Account $20,000

Risk 10% of your investing account

Want to buy ETH to hold for long terms

Want to enter when price hits $4,900

Calculation:

Calculate your 10% of the investing account:

$20,000 Account x 0.10 = $2,000 per investment

Divide the $ you willing to risk to the price you want to enter

$2,000 / $4,900 = 0.4082

Set your entry order or market order

for 0.4082 ETH @ $4,900 price

0.4082 x $4,900 = $2000

(This is the amount you will need in your investing account

to execute this buy.)

You want to lose no more than 25% of your original $2,000 investment.

$2,000 x 0.75 = $1,500

$1,500 / 0.4082 = $3,674.67

Set your alert and SL at $3,674.67

If price hits your alert/SL, your order would be

0.4082 ETH x $3,674.679 = $1500

$2,000 - $1500 = $500 = 25% of $2,000

You want to gain about 50% of your original investment before selling.

$2,000 x 1.50 = $3,000

$3,000 / 0.4082 = $7,349.34

Set your alert and TP at $7,349.34

If price hits your TP, your order would be

0.4082 ETH x $7,349.34 = 3,000.00

$3,000 - $2,000 = $1,000 = 50% of $2,000

Example 5:

Want to buy MATIC to hold for long term as investment

Scenario:

Investing Account $1,500

Risk 20% of your investing account

Want to buy MATIC to hold for long terms

Want to enter when price hits $2.25

Calculation:

Calculate your 20% of the investing account:

$1,500 Account x 0.20 = $300 per investment

Divide the $ you willing to risk to the price you want to enter

$300 / $2.25 = 133.34 MATIC

Set your entry order or market order

for 133.34 MATIC @ $2.25 price

133.34 x $2.25 = $300

(This is the amount you will need in your investing account

to execute this buy.)

You want to lose no more than 50% of your original $300 investment.

$300 x 0.50 = $150

$150 / 133.34 = $1.1249

Set your alert and SL at $1.1249

If price hits your alert/SL, your order would be

133.34 MATIC x $1.1249 = $149.99

$300 - $149.99 = $150. 01 = 50% of $300

You want to gain about 75% of your original investment before selling.

$300 x 1.75 = $525

$525/133.34 = $3.9373

Set your alert and TP at $3.9373

If price hits your TP, your order would be

133.34 MATIC x $3.9373 = $525

525 - $300 = $225 = 75% of $300

Any questions, comments and feedback welcome to let me know.

If you like more of these contents, like, subscribe/follow and comment for me to keep doing them. :)

Jojo

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Free Telegram Channel (Forecast, Analysis, Updates, Live Stream, Lessons, Q/A): https://bit.ly/3kllWnV

All my info & content: https://linktr.ee/aeristrading