A note to Risk Management and Exit Strategy
I had a message and was inspired to speak my mind about correct risk management.
What is it? How can I use it? How does it serve me?
First of all, positions with no SL are a really bad idea, I don't care what bankers do. It is not cool or useful at all.
Depending on how refined your strategy is, you will be struggling with higher Exits in your beginnings.
Risk Management for Beginners:
Start with an 1:1 Risk Reward. Which means, exit all positions at the same amount where your Stop Loss would have been. It is the safest and fastest option until you know enough about the markets to aim for more. If not, most of your trades will land in BE and your losses will hurt even more. Trust me, I've been there.
Risk Management for advanced traders:
When your general win quota has reached about 70-90%, your account will not necessarily will be growing. Because we are humans and always will do some stupid experiments in between, whether we feel too safe with a bad idea, or want to try something new.
Its time to set 2-3 Exits. Use multiple positions, so you can leave them running.
2 Exit Strategy (50% at Exit 1 and 50% at Exit 2)
3 Exit Strategy (25% at Exit 1, 50% at Exit 2, 25% at Exit 3) This way you secure 200% with every successful trade.
Risk Management for Pros:
You can aim for higher exits minimize your Stop Loss. When you know where to find an Exit5 or Exit 10. Never reenter the same trade, the first idea is always valid.
Have a 4 Exit strategy without variation on the amount of risk per trade, and take an extra open trade for higher positions. Always know what your target is. (25% at Exit 1, 25% at Exit 2, 25% at Exit 3, 25% on the open position).
Do never vary the amount of your risk. Be aware that emotions do not matter and there is no difference in between trades. All aim to be profitable, otherwise we would not be trading. If you decide for 0.5% or 1 or 5%, it doesn't matter, just do not vary ever. Down or upscale slow, very slow.
What is it? How can I use it? How does it serve me?
First of all, positions with no SL are a really bad idea, I don't care what bankers do. It is not cool or useful at all.
Depending on how refined your strategy is, you will be struggling with higher Exits in your beginnings.
Risk Management for Beginners:
Start with an 1:1 Risk Reward. Which means, exit all positions at the same amount where your Stop Loss would have been. It is the safest and fastest option until you know enough about the markets to aim for more. If not, most of your trades will land in BE and your losses will hurt even more. Trust me, I've been there.
Risk Management for advanced traders:
When your general win quota has reached about 70-90%, your account will not necessarily will be growing. Because we are humans and always will do some stupid experiments in between, whether we feel too safe with a bad idea, or want to try something new.
Its time to set 2-3 Exits. Use multiple positions, so you can leave them running.
2 Exit Strategy (50% at Exit 1 and 50% at Exit 2)
3 Exit Strategy (25% at Exit 1, 50% at Exit 2, 25% at Exit 3) This way you secure 200% with every successful trade.
Risk Management for Pros:
You can aim for higher exits minimize your Stop Loss. When you know where to find an Exit5 or Exit 10. Never reenter the same trade, the first idea is always valid.
Have a 4 Exit strategy without variation on the amount of risk per trade, and take an extra open trade for higher positions. Always know what your target is. (25% at Exit 1, 25% at Exit 2, 25% at Exit 3, 25% on the open position).
Do never vary the amount of your risk. Be aware that emotions do not matter and there is no difference in between trades. All aim to be profitable, otherwise we would not be trading. If you decide for 0.5% or 1 or 5%, it doesn't matter, just do not vary ever. Down or upscale slow, very slow.
相关出版物
免责声明
这些信息和出版物并不意味着也不构成TradingView提供或认可的金融、投资、交易或其它类型的建议或背书。请在使用条款阅读更多信息。