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WHAT IS QM (SIMPLY)Quasimodo trading setup or QM is an advanced reversal pattern in which its formation signals the end of a trend, and most traders use its variants to improve trading results in the forex market. If u don't understand it, there is high possibility for stop hunting. u may heard HEAD AND SHOULDER pattern, yes? QM is exactly HAD (head and shoulder) and u can trade it at: FL'S _ S&D ZONES and SR lines. it is also a Great show for money back and u can short it at all. What invalidates it? only Do not ENG the first support.
COINBASE:SHIBUSDEducation
by Amirlolal
The Best Strategy to Apply Trailing Stop Revealed Hey traders, In this post, I will share with you my strategy to apply a trailing stop. Please, note that I am applying a trailing stop only in trend-following trades and only when a trade is opened on a key level. I trade price action patterns, so the following technique will be appropriate primarily for price action traders. Moreover, my entries are strictly on a retest. 1️⃣ Spotting a price action pattern, I am always waiting for its neckline breakout. (if we talk about different channels, then by a neckline we mean its trend line) Once I see a candle close below/above the neckline, I set my sell/buy limit order on a retest. Stop loss will strictly lie below the lows of the pattern if we buy and above the highs of the pattern if we sell. I spotted a horizontal trading range on an hourly time frame on AUDUSD. I set a sell limit order after a breakout of its neckline. Stop loss is lying above the highs of the pattern. 2️⃣ Once we are in a trade, you should measure the pattern's range (distance from its high to its low based on wicks) and then project that range from the entry to the direction of the trade. In the picture above, the pattern range and its projection are the underlined blue areas. Once the price reaches the projection of the pattern's range, you should move your stop loss to entry and make your position risk-free. Move stop to breakeven in traders' slang. 3️⃣ Then you should let the market go. 📈If you are holding a long position, you should let the market retrace and set a higher low and then a new higher high or AT LEAST an equal high. Once these conditions are met, you can trail your stop and set it below the last higher low. 📉If you are holding a short position, you should let the market retrace and set a lower high and then a new lower low or AT LEAST an equal low. Once these conditions are met, you can trail your stop and set it above the last lower high. In the example above, stop loss was modified when the price set a new lower high. Stop loss is now lying above that. Catching a trending market you should trail your stop based on new higher lows / lower highs that the price sets. Occasionally you will catch big winners. How do you apply a trailing stop? ❤️Please, support my work with like, thank you!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
2
Securing Trades: Moving Stop Losses to Breakeven Forex TradersProfitability is the ultimate goal for all traders in the forex market. However, evaluating profitability is not a straightforward task. While many traders rely on comparing the size of their losses to their profits, this single metric alone may not provide enough motivation or a comprehensive understanding of one's success. In fact, solely fixating on this indicator can sometimes trap us in psychological pitfalls. When faced with a series of unsuccessful trades and accumulating losses, the desire to recoup those losses and attain profits can become overpowering. This intense longing often drives traders to take unnecessary risks and make impulsive trading decisions, driven solely by the emotional need to recover their losses. Unfortunately, succumbing to such emotional pressures typically leads to even greater losses, further intensifying the emotional turmoil associated with trading. To mitigate the emotional tension and prevent impulsive decision-making, one effective strategy is to employ a technique known as moving the Stop Loss to breakeven. This technique involves adjusting the Stop Loss level to the trade's entry price once a certain profit threshold has been reached. By doing so, traders can secure their initial investment and eliminate the risk of incurring any further capital losses. Moving the Stop Loss to breakeven serves multiple purposes. First and foremost, it reduces the emotional pressure that traders experience when managing their trades. By eliminating the possibility of incurring additional losses, traders can approach the market with a clearer and more objective mindset. This, in turn, helps to curb emotional biases and impulsive decision-making, which often lead to detrimental outcomes. Furthermore, moving the Stop Loss to breakeven can provide a sense of psychological relief and instill greater confidence in one's trading strategy. Traders can take solace in the knowledge that even if the trade eventually turns against them, they will not suffer any financial loss. This fosters a more disciplined and strategic approach to trading, as the fear of losing capital is significantly reduced. Implementing the practice of moving the Stop Loss to breakeven is ultimately a risk management technique aimed at safeguarding traders' capital and minimizing emotional stress. By adopting this strategy, traders can achieve a higher level of psychological stability and make more rational trading decisions. While it does not guarantee profitability on its own, it serves as an invaluable tool in maintaining a balanced and disciplined approach to navigating the forex market. What Is Breakeven To comprehend the concept of breakeven, let's delve into an illustrative example. Consider two scenarios where we analyze the market and identify an ascending channel. We wait for a test of the upper boundary and observe a bearish absorption reversal pattern, prompting us to sell EUR/USD with targets near the lower boundary of the channel. In the first situation, our short position initially brings a profit of approximately 15-20 pips, and our profit expectations rise. However, instead of continuing in our favor, the price abruptly reverses and triggers the Stop Loss order. As a result, a position that had shown a small profit closes with a loss. At the moment when the price reaches 15-20 pips, which accounts for more than half of the anticipated distance from the order opening point to the Take Profit level, we make a strategic move. We adjust the Stop Loss level below the opening price, effectively securing our position from further loss. The subsequent price movement can unfold in two possible ways: 1) The price continues its descent and reaches the Take Profit level, resulting in a profitable outcome for our position. 2) The price reverses direction and triggers the Stop Loss order. However, since we had moved the Stop Loss to breakeven, the position is closed not at a loss but at a breakeven point, meaning we exit the trade without suffering any financial loss. Based on the given example, we can define the concept of breakeven as follows: Breakeven level refers to the adjustment of the Stop Loss order of an open trade to a profitable area. The objective of implementing this strategy is to exclude potential losses in the current trade, effectively safeguarding our capital. By moving the Stop Loss to breakeven, we ensure that even if the trade turns against us, we exit the position without incurring any financial loss. The Psychology Of Breakeven On Forex The success of traders is influenced by various factors, with trading strategies and money management accounting for 10% and 20% of the equation, respectively. However, a significant portion of success, 70% to be precise, stems from psychology and emotional balance. Therefore, trading is primarily a journey of self-improvement and self-discipline. In this context, breakeven can serve as a stabilizer or a source of calmness, and each trader must decide for themselves whether it aligns with their trading approach. Traders who neglect moving their Stop Loss to breakeven often do so out of a desire to "beat" the market in a particular situation, disregarding risk management principles. They forget that each trade is merely an opportunity to generate profit and that a trader's success hinges on the cumulative outcome of all their actions. By moving the Stop Loss to the breakeven level, traders ensure that their trading account is not exposed to unnecessary risk. This approach allows them to step back temporarily, preserving their capital, and return to trade another day. Breakeven becomes especially valuable when a trade accumulates substantial floating profits. It acts as a safeguard, protecting capital and preventing the unfortunate scenario of a winning trade turning into a losing one. However, it's crucial to note that utilizing the breakeven level requires proper understanding and application. Emotional traders may be tempted to move their Stop Loss to breakeven prematurely, resulting in a high number of breakeven trades. Therefore, it is essential to thoroughly study this tool and evaluate how it can be effectively integrated into your trading strategy. In general, if your next trade concludes without a significant profit or loss, it may be wise to take a break and rest. Achieving a result close to breakeven or closing a trade at breakeven can be viewed as a positive outcome in the long run, contributing to overall trading success. Why Do Traders Move Stop Loss To Breakeven? There are several reasons why traders opt for a breakeven stop in their trading: Psychological Comfort: Moving a trade to breakeven provides a sense of comfort and security. By eliminating the possibility of a loss, traders can view the trade as a risk-free profit. It reduces the emotional stress associated with potential losses and allows traders to stay in the trade with a peace of mind. 1) Expert Opinion: Many experts in the field of technical analysis advocate for protecting earned profits, and a breakeven stop is often recommended for this purpose. By locking in profits, traders can avoid the disappointment of seeing a profitable trade turn into a loss. This helps maintain discipline in following the trading plan and preserves the expected outcome of the strategy. 2) Greed and Fear: Some traders move their trades to breakeven as soon as they have a small profit, driven by greed and fear. They fear losing the profits they have already gained and hope to capture even more gains. However, this approach can backfire if the market retraces and stops the trade out at breakeven, only to continue moving in the desired direction. Fear and greed can cloud judgment and lead to impulsive decisions. Building confidence in both the trading strategy and oneself is essential to overcome these emotions and stick to the trading plan. 3 )To build confidence in the strategy, traders should thoroughly test it on historical data for an extended period. If the strategy demonstrates consistent positive results over several months, the trader can have faith in its effectiveness. Building self-confidence requires a holistic approach, which may include activities like meditation, exercise, and self-reflection. In conclusion, utilizing a breakeven stop can provide psychological comfort, align with expert advice on protecting profits, and help manage the emotions of greed and fear. However, it is essential to understand and apply this technique in the context of a well-tested and proven trading strategy, while also working on building self-confidence. How Do I Correctly Set A Breakeven Level? Moving the trade to breakeven is a decision that should be made with careful consideration. Rushing to set breakeven as soon as the price surpasses a certain number of points from the opening level can lead to premature trade closure and missed profit opportunities. It's crucial to set the breakeven level correctly and at the right time. There are certain scenarios where moving the trade to breakeven is appropriate: 1) According to the rules of your trading system: The decision to move the trade to breakeven should be planned and integrated into your trading system. This ensures consistency in your approach and prevents impulsive decisions based on emotions. 2) When events deviate from your trading scenario: If the price doesn't unfold as expected, such as in cases of flat-lining or lack of momentum, moving the trade to breakeven can be considered. However, it's important to factor in the time element. If you entered a trade during a period of low market activity, such as between sessions, it's advisable to allow more time for the price to develop before making any adjustments. 3) Allowing for price volatility and maneuverability: It's not necessary to move the trade to breakeven immediately after it becomes profitable. Price movements can be erratic, and giving the trade some room to breathe and maneuver within a reasonable range can help avoid premature stop-outs. The decision on when to move the Stop Loss to breakeven level is subjective and depends on various factors, such as the volatility of the currency pair, the timeframe being traded, and the trader's individual preferences. Traders often use technical tools like Fibonacci retracement, fractals, pivot levels, or other indicators to help determine appropriate breakeven levels. Ultimately, finding the right balance between protecting profits and allowing for potential gains requires experience, practice, and continuous refinement of your trading approach. Disadvantages Of Using Breakeven: While applying breakeven can offer certain advantages, it's important to acknowledge the potential disadvantages as well: 1) Impact on mathematical expectation: Triggering breakevens too frequently can negatively impact the overall mathematical expectation of winning trades. Each time a breakeven is triggered, it reduces the potential profit and increases the breakeven rate, which can erode profitability over time. Traders need to carefully consider the balance between protecting profits and allowing trades to run for maximum potential gains. 2) Effect on trading statement: If a trader consistently closes positions at breakeven, it can impact the overall trading statement. This becomes significant when traders showcase their results to potential investors or when assessing their own performance. A high number of breakevens may give the impression that the trader is risk-averse or lacks confidence in their trades. It's important to strike a balance between breakevens and profitable trades to maintain a positive perception. 3) Comparison with initial stop loss: Statistically, breakevens are triggered more frequently than initial stop losses. Some traders choose to close a portion of their position at a profit level equal to the initial stop loss level. This approach allows them to secure some profit while letting the remaining portion of the trade run for potential further gains. By doing so, they aim to strike a balance between locking in profits and giving trades room to develop. Ultimately, the decision to apply breakeven or its variations should be based on careful analysis of individual trading strategies, risk tolerance, and desired trade outcomes. Traders should consider both the advantages and disadvantages to make informed decisions that align with their overall trading goals. Trailing Stop: In addition to the standard breakeven closure, another option to consider is the trailing stop. This order type allows the stop loss to automatically trail the price at a certain distance as it moves in your favor. To set a trailing stop, you can right-click on the open position and specify the trailing stop size in points. Here's how it works: Let's say you've bought the EUR/USD pair at 1.1000 and set a trailing stop of 50 points. As the price moves in your direction, reaching 1.1100 and giving you a profit of +100 pips, the trailing stop will also adjust accordingly. If the price retraces by 50 pips to 1.1050, your position will be closed with a profit of +50 pips. This type of order is particularly useful for medium-term trading or during large market movements when it's uncertain when the trend might end. When used correctly, the trailing stop allows you to capture maximum profit from an open position. However, it's important not to set the trailing stop too tightly in volatile instruments to avoid premature closing of the position based on minor price fluctuations. Trailing stops offer flexibility and the potential to lock in profits as the price moves in your favor. They can be a valuable tool for managing trades and protecting gains, especially in trending markets. Traders should consider their trading style, risk tolerance, and market conditions when deciding whether to use a trailing stop and how to set the appropriate distance to maximize potential profits. Conclusion. n summary, one of the primary goals for traders is to avoid incurring losses. The concept of breakeven is rooted in this principle, as it allows traders to protect their positions and prevent losses. By moving the stop loss to the breakeven level, traders ensure that even if the trade does not result in a profit, they will not experience a loss either. However, it's important to recognize that breakeven can be a double-edged sword. While it protects traders from losses, it also carries the risk of giving up potential profits. This is because once the stop loss is moved to breakeven, the trade is essentially locked in at a break-even point, and any further upward movement in price will not be captured as profit. Traders need to carefully consider the trade-off between protecting against losses and potentially sacrificing profits when deciding whether to apply breakeven. It ultimately comes down to individual trading strategies, risk tolerance, and market conditions. It's crucial to find the right balance and use breakeven judiciously. Traders should assess the specific circumstances of each trade and make informed decisions based on their analysis and risk management plan. By doing so, traders can navigate the complexities of breakeven and strike a balance between safeguarding their profits and maximizing their trading outcomes.
Education
by FOREXN1
18
❗️USE STOP LOSS AND BECOME A BETTER TRADER❗️ 🟩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 the asset. Regular stop losses can be many and varied too, for example trailing stop. Also, we sometimes move SL to entry after the half close to protect the gains and make our position risk free.However, all situations I listed above have one thing in common and it is the fact that the SL was used! 🟥Honestly, I am amused by the massive number of people who send me screenshots of their MT4 with several open trades on the same pair all of them without SL and with 90% of account lost. And they ask me what should they do? A great illustration of what is would take to recover from such a loss, is on the drawing above. With the 90% loss, you have only one tenth of the original account left. That means you need to make ten times more money than you have left just to recover your losses. 999% gain needs to be made just to have your old account back. It took you a day to blow it, and might take months to recover the losses. This is the brutality of the trading. The market is unforgiving and will punish you if you treat is without respect. If you are careless or if you make mistakes. The market always comes back to collect, waiting for the moment you drop your guard and relax for a second. Please always use Stop Loss, because, as it happens, it stops you from losing too much! I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Dear followers, let me know, what topic interests you for new educational posts?
BITSTAMP:BTCUSDEducation
by SignalProvider
7
My Biggest New Trader Mistakes & Lessons LearnedI thought I'd share my experience with other New Traders (I'm still 'new', 2yrs in). I made all the classic mistakes and plenty more, my learning is only just beginning. Hopefully this educational post helps others new to trading. Use a Stop Loss So many times I didn't use a Stop Loss. One of the main reasons was I kept getting Stopped Out and then the price reversed, it made me paranoid. Also when the day changes at the start of the Asia session, or over the weekend with the gaps on market open, I thought I was better not having one. I've Learned: If you don't use a Stop Loss it's psychologically hard to get out of a losing trade and you can easily blow your account. I think it's OK to move the stops temporarily before the Asian open, but ideally the trade would only be left open if a) it's well in profit and b) the move looks likely to continue. Don't move your SL & TP I kept moving both of these stops, I either couldn't face the actual loss when a trade went bad (it seemed less real on paper and there was always 'the chance' it would come back in my favour) or I got greedy when the trade went in my favour and then before I knew it, it reversed and my profit was gone. I've Learned: Moving Stops and Targets risks profitable trades; it's psychologically damaging as it suggests lack of planning and strategy, this is gambling. On the other hand, having a plan and seeing it playout, however big or small is hugely satisfying and is the best confidence builder. Get In and Out I kept looking for the really big moves, and I had a few, but only a few. I believe the longer you're in a trade, the riskier it is due to the many factors that can affect price - Institutions, Fundamentals, Global Events, there are so many things that can turn a good strategy bad, and I lost money. I've Learned: There are so many trading pairs, so many options, there'll always be another trade. Staying in a trade for too long is leaving money on the table, when it could be in your account, getting out too early is annoying, but having profit on the trade is much more important. Leaving trades over a weekend I've left both winning and losing trades over a weekend, and many times previously winning trades went against me, and losing ones got worse. Price can be unpredictable due to fundamental changes over a weekend. I've Learned: On a Friday, unless 80% happy that your trade will continue in the right direction over the weekend, close it and review again after market open (you may lose a few but you will have banked profits or minimised losses in many cases). Keep Fundamentals in mind I follow some traders who don't seem to care about Fundamentals, but in that time I've seen many of their signals go bad because of big news. I think, that they think, that if the news is in their favour they reach target quicker. If it's not, they reach target slower, as the market has already decided future price regardless. I've seen fundamentals shape both shorter and longer term trends, they can easily cause reversals and commonly they cause spikes in the opposite direction from what you'd expect, before then moving as you'd expect, but this can be too late. I've Learned: Each pair / trade is different, however I've learned to take a pragmatic approach, often getting out of a trade before the news and waiting for the market to calm down before considering re-entering. This can mean missing out, but too many times I was on the wrong side of the news, I'm more profitable stepping back first. Have positive involvement in the TradingView community From time to time I see comments on Trader's ideas that are less than positive, as though the commentator can predict the future? As a community of retail traders we are up against the institutions and the big money movers who love to take retail traders' money, this means as retail traders we're all on the same team. The total value of all of our accounts is like comparing the size of an atom to a planet! I've Learned: If you don't like someone's idea, move past it, or discuss professionally. Be open-minded to ideas and celebrate success, 'like' ideas that you like and give positive comments where you agree, we're all in this together, and everyone is trying their best. Do your own research I signed up to loads of Telegrams and followed signals blindly, and it cost me a lot. It's too easy for people giving signals to only report on the successful ones. The community around trading, particularly TradingView is awesome but it can be confusing, for every chart, for every pair there is so much subjectivity. Previous price action does not dictate future price movement, if it did everyone would win. I've Learned: Don't put your destiny in the hands of others, read and learn as much as possible but create your own plan and strategy, it's much more rewarding, both psychologically and for me, financially. Take a Break I was watching the charts of my trades almost constantly, whether up or down I was watching them, but not doing anything. If losing (without a SL) I'd be watching hoping it would come back, if winning I'd often manually close too early, or leave it too long (FOMO) and it was too much and made no positive impact on my trading success, it just caused stress. I've Learned: To create my plan with all of these lessons in mind, and action it if the conditions are right. If I'm working on my personal trading development now, I'm looking for future trading opportunities, I'm setting alerts for future price action, I'm writing and publishing my ideas, and most importantly I'm taking a break to enjoy weekends, holidays and normal stuff! Writing and publishing this education article is really cathartic for me, it's helping me to keep embedding the lessons I have learned. The best lessons are the hardest ones, the expensive ones! I've just started publishing my ideas on here and I appreciate all the support I can get to becoming a better trader, hopefully one day I can be good enough to do this full-time. It'd be great to know if you've experienced these and other lessons as a new trader. Are there any more that you can share with me, and the rest of the TradingView community?
OANDA:XAUUSDEducation
by Finchcliffe
7
❗️USE STOP LOSS AND BECOME A BETTER TRADER❗️ 🟩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 the asset. Regular stop losses can be many and varied too, for example trailing stop. Also, we sometimes move SL to entry after the half close to protect the gains and make our position risk free.However, all situations I listed above have one thing in common and it is the fact that the SL was used! 🟥Honestly, I am amused by the massive number of people who send me screenshots of their MT4 with several open trades on the same pair all of them without SL and with 90% of account lost. And they ask me what should they do? A great illustration of what is would take to recover from such a loss, is on the drawing above. With the 90% loss, you have only one tenth of the original account left. That means you need to make ten times more money than you have left just to recover your losses. 999% gain needs to be made just to have your old account back. It took you a day to blow it, and might take months to recover the losses. This is the brutality of the trading. The market is unforgiving and will punish you if you treat is without respect. If you are careless or if you make mistakes. The market always comes back to collect, waiting for the moment you drop your guard and relax for a second. Please always use Stop Loss, because, as it happens, it stops you from losing too much! I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
117
How To Calculate Risk/Reward To Trade & Invest In Crypto MarketHi 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
BITSTAMP:BTCUSDEducation
by jojofang0901
35
ATR Indicator - How to Avoid Getting Stopped out of TradesIn this post we can see how the stops were taken out beyond. the 26600 price level. For any setup that a noobie trader may place, the SL would be taken out at this level; However using the ATR indicator we can avoid getting stopped out and keep our trade. I recommend you watch some videos on this indicator to get a better understanding but the main jist of it is -> Take a sweep low/high of a range and add/minus the ATR value (on the sweep candle) to get more legroom for price to move (but it will miss your stop) I hope you find this useful.
Education
by faken
1