Thanks for your nice post , may be it will help more
This tripped me up for the first several months of my time in the markets. I've got an easy way without having to do "actual" math. I go off of a 3k balance. When I put a trade in for EURUSD for example: Long @ 1.1165o Stop @ 1.1135o Subtract the difference (65-35 = 30 pips) Take the unit size (0.10 = $1/pip) Times that by the pips (30 pips) and your SL is $30 buffer, which is 1% of a 3k account, which is how I manage risk. Hope that helps!
The "Fear" of risking "too much" wich 6% its NOT (lol) came from the fact that the average trader doesnt know wtf its going to happen when the trade its placed !! they dont know why they placed in the first place, they dont know how to manage it once its running, WHY are they using those "targets" or "risk reward ratio" etc.. OF COURSE they are going to play "defensively" because they NEVER KNOW WHEN THEY ARE GOING TO WIN !! thats why they recomend "risk 1 or 2% max" Find a repetable condition and EXPLOIT IT !! thats your ONLY job as a trader !!!...
. This sort of thinking is not sustainable. I have heard these words several times from people.. none of them has a real account more than 1K and vanished few weeks later. You can be one of them or may not be one of them which doesn't mean much. At the end of the day you sit in front of a screen all day to catch that move so does that 2% guy too. So the bottom line is you cannot be real trader if you don't manage your risk properly. Assuming you risk 20-30%. And how much do you gain? 5%?, 10%?, 50%? . If you say you are getting 30 to 100% return per trade then at least we would know you are taking a reasonable RR ratio no one would say anything about that. But then you have to be so damn rich by now. If you say you are gaining lot less.. 2-3 or 5% per trade then you really need to have a 99% accurate setups to survive.
Happy trading..
{quote} I think you are giving the wrong advices for rookies.
How could i (or anyone) possibly talk about % per trade if the one listening doesnt have a clue how to even put the odds in their favor? think about it =)
{quote}I never see a real trader risking 20-30% of balance or equity even with 98% winning rate. If you think you are so damn sure you can just as well risk 90% of your balance
and no i cant risk 90% because the broker doesnt let me do it.. Theorical max its 69% with a 1% safety factor before margin call with my usual Stop loss =){quote}This sort of thinking is not sustainable. I have heard these words several times from people.. none of them has a real account more than 1K and vanished few weeks later. You can be one of them or may not be one of them which doesn't mean much.
BTW, i trade like this: i have 2 live accounts, 1 small wich i trade the way i do for a series of trades, wich i end that cycle at around 20/30 trades, then i withdraw the profits to the main and leave the same starting capital and i repeat the process every month over and over again (the "main account its just that, like a savings account where i manage what i need to spend for a living) easy, risk free and consistent .. you should try it =)
{quote}At the end of the day you sit in front of a screen all day to catch that move so does that 2% guy too.
and i wont waste my time for a measly 2% sorry, but to use such a small % of risk it means that the trade its "shitty" at best with a random result, odds stacked against you, unknown variables etc.. in other words = shitty conditions = mediocre trades = "get shafted" results = "risk a little because you never know wtf its going to happen" mindset.. thats a big NO NO{quote}So the bottom line is you cannot be real trader if you don't manage your risk properly.
{quote}Assuming you risk 20-30%. And how much do you gain? 5%?, 10%?, 50%?.
{quote} If you say you are getting 30 to 100% return per trade then at least we would know you are taking a reasonable RR ratio no one would say anything about that. But then you have to be so damn rich by now.
{quote}If you say you are gaining lot less.. 2-3 or 5% per trade then you really need to have a 99% accurate setups to survive. Happy trading..
My R:R its not fixed its "average" with a minimum threshold of course, wich i just speak about it right on top of this response =)
{quote} Firstly, i want to say thanks for your reply, I certainly did not expect you to reply to my comment. I have now looked through a lot of your previous posts and understand that you choose the renko chart instead of time based charts every single day of the week, i now get why you do this so i am now going to look into this PURE PRICE Trading only. If i can spend thousands of hours on the normal time charts then im sure i can also spend thousands of hours on the Renko. Is it possible for you to answer the below question? (i completely understand...
{quote}1. Can i just ask where did you find the renko chart that you use on the MT4
{quote}2. Do you use moving averages (Simple or Exponential) and any indicators (such as RSI, but i personally feel that every indicator made is useless). If you do use moving avergaes, are they large like the 200 S.M.A or small like the 50 S.M.A or 8 S.M.A
{quote}3. Do you only ever place market orders (either at the completion of a renko bar or when your pattern is displayed) or do you use pending orders.
{quote}4. Do you wait for "confirmation" (such as a completion of a renko bar) 5. Should the length of the bar be big (600 pips instead of 50pips etc etc) or small.
{quote}6. When you say constant patterns can be seen on the renko, do you mean patterns with the bars i.e 2 bars up then 3 bars down signals a new trend etc etc.
{quote}7. Iv read that you do not have a set "take Profit" but only set a stop loss in case your analyses was wrong (and you also go break even as soon as possible) but where would be the best place to place a stop loss.
Stop loss in my case its around 2 bricks most of the time
{quote}8. Finally, do you use support/resistance often or trend lines. The below picture was uploaded by you a while back, just to confirm are the arrows on the chart your entry points? or where you would potentially enter the market?
{quote}I completely understand if you feel that i am asking too many question and do not wish to answer. I am very very hungry for success in this market and believe that it can be done, hence why im asking alot questions. P.S Please do not leave this forum ahah, iv seen multiple profitable trades leave forex factory (means us noob traders cannot get access to a gold mine of information and tips from successful traders). Thank you soo much for your response. {image}
