Cheers mate. A few things I picked up in there that I didn't notice before.
Here is a drawover I did today on IM's chart.
..
) so they put SL just above or below the wick.
Hi all!
It's been a while since I visited here and I just caught up on the majority of the posts. Recently, the flavor of the month for me has been risk and money management. I was wondering if anyone can shed some light upon this with regards to this kind of trading methodology. How much in terms of % do you guys usually risk, and how much do you expect to gain? I've always wondered what it means when red mentions 'heavy' and my assumption has always been that it means taking a large position (please correct me if I am wrong!) Anyway, just want...
- but lesson learned). Hey biDc,
my money management is pretty simple.
My total focus is Risk to Reward ratio, which should be atleast 1:5++ in order to take the trade.
I risk 4% per trade. So i can make 100% in 5 profitable trades and can loose 5 times and then get all back with one winning trade. Since i take only the high probability entries with precisely defined fresh sup/dem theres only Choatic mind that can stop you from that plan. (which mein did
If my account balance falls for 25% i re-calculate my initial risk, to 75% my new 100%...
Thanks for the reply MIKY. How often do you achieve target of 1:5? What happens if price runs your direction but reverse before achieving your target? I usually scalp 5min charts and I go somewhere along the line of 1:1 to 1:3 while risking 1% per trade. I guess I must be quite risk adverse!
(still figuring sth out, so am sticking just to one). When liquidity comes back the pip range will extend and 1:5 will be pretty easy. Most of mein 1:5 get to 1:7 or even more. But remember!! it all comes back down to identifing true fresh supply and demand levels. That way lowering your risk and heightening your reward . 
