In a bustling town nestled by the sea, there was a young trader named Kira. Her dream was to navigate the vast and unpredictable market waters, much like a seasoned fisherman seeking the best catch. Her mentor, an old trader named Captain Renzo, often spoke of the market as a treacherous sea full of challenges and opportunities. "Ahoy, Kira!" Captain Renzo would...
One of the biggest mistakes a trader can make is to neglect the aspect of risk management. In this video, I divulge the most pivotal lesson I’ve gleaned from my experience in trading. During the initial years of my trading journey, I disregarded the importance of risk management, which proved to be detrimental in a significant way. The watershed moment of my...
Hey traders, In this post, we will discuss a common fallacy among struggling traders: overestimation of a one single trade . 💡The fact is that quite often, watching the performance of an active trading position, traders quite painfully react to the price being closer and closer to a stop loss or, alternatively, coiling close to a take profit but not...
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.
Greetings, fellow traders! As a seasoned veteran of the financial markets, we've witnessed firsthand the transformative power of trading, its ability to elevate individuals to new heights of financial freedom and fulfillment. Yet, we've also observed the struggles of many aspiring traders, their goals & dreams marred by a lack of guidance and a clear...
The difference between trading and gambling. This article will shine a light on the most frequent mistakes that traders make. These mistakes blur the thin line between trading and gambling. Many people have spoken on this topic, but we truly believe that it is still not sufficient, and traders should be better educated on how to avoid gambling behaviour and...
The feeling of ever admitting that one’s action is wrong is something many people never acknowledges, outside the works of trading, you get to see that even in a bilateral misconduct between two sovereign nations, it’s always difficult or maybe impossible for one of those countries to accept that there were at fault( being wrong), it goes on in every aspect of...
How I manage the order volume? I often trade Futures, where I can take advantage of leverage to optimize profits. But at first, I didn't know what was a reasonable amount to enter an order with. I know my maximum is 10% of my capital as I shared in the prev post. But when calculating with leverage, it made me quite confused at first. Try the following...
In the realm of trading, success isn't solely derived from intricate technical analysis. Surprisingly, the key to triumph lies in an unconventional ratio: 20% technical analysis and a staggering 80% blend of emotions, discipline, psychology, risk management, and money management. If you appreciate our charts, give us a quick 💜💜 The 20%: Technical...
What is position sizing & why is it important? Position size refers to the amount of risk - money, contracts, equity, etc. - that a trader uses when entering a position on the financial market. We assume, for ease, that traders expect a 100% profit or loss as a result of the profit lost. Common ways to size positions are: Using a set amount of capital...
The Foundations of Solid Risk Management 🛡️📊: Risk management in trading involves a series of strategic decisions aimed at minimizing potential losses. It revolves around understanding the risks associated with each trade and employing measures to mitigate them. Whether you're a novice or an experienced trader, risk management remains a non-negotiable aspect of...
Risk management is one of the key topics in forex trading that is not emphasised enough. Instead, there is too much emphasis on solely focusing on being on the right side of the market to consistently make money while ignoring proper risk management in the process. This post will completely debunk this, so after you have finished reading, you will hopefully have a...
What portion of your equity should you risk for your trading positions? In the today's article, I will reveal the types of risks related to your position sizing. Quick note: your risk per trade will be defined by the distance from your entry point to stop loss in pips and the lot size. 🟢Risking 1-2% of your trading account per trade will be...
🎉 Risk Management tip for Vesties and @TradingView community! 🚀 😲 We all know the saying "only risk what you can afford to lose," but do you know the powerful impact it can have on your trading journey? 🤔 In the ever-evolving world of cryptocurrency and futures trading, one fundamental principle stands as the cornerstone of profitable and sustainable...
US Economic Indicators: We know about trends and trend changes, but why a trend changes? The tops and bottoms of the market are determined by the fundamentals, like news releases, while the technicals show us how we get between those two points. So a news release can be the cause or trigger of a trend change. So it is to our advantage to at least be aware of...
As we wait for GBP CPI news later today and the BOE rate hike decision on thursday , its good to remind ourselves that one trade doesn't make us its a marathon not a race . The volatility associated with these fundamentals is always a double edged sword . STAY WOKE
📚 #Risk_management Risk management in forex for retail traders is essential, especially considering the use of leverage. Leverage allows traders to control larger positions in the market with a smaller amount of capital. While leverage can amplify profits, it also increases the risk of losses. Here's how risk management and leverage factor into forex...
Understanding the concepts of relative drawdown and absolute drawdown is crucial for effective risk management and evaluating the performance of trading strategies. In this publication, we will delve into the understanding of both relative drawdown and absolute drawdown. 🔷 Relative Drawdown: (Sometimes referred to as equity drawdown) Relative drawdown is...