Trading & Business

🔥 6 Entry methods

Educational Post📕 Sticking to stop loss is a must to do when (BUYING the DIP) Opening a position without setting a stop loss is a big mistake and it can be disastrous when buying the dip ! Here, we show a tempting setup to open a long position in rectangle (1). It is of course OK to go long in this setup in the hope of catching possible up coming up going wave shown in green. But without setting a stop loss? Not at all ! Followings are just two simple possible scenario which may happen: Rectangle (2) shows a scenario which may happen if lucky. Although it will bring us profit, believe me it bothers all the traders a lot emotionally. Rectangle (3) shows a terrifying scenario which can whip out all our capital ! Please keep it in mind that " Preserving capital is a first rule of trading ". If you think this is an unrealistic scenario just take a look at #ETSY , #SHOP, #SQ and #ROKU. @TechBusinesses

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📊 How to Use Multi-Timeframe Analysis Trading works best when you assign each timeframe a role instead of staring at one chart blindly. 🟡4H chart gives you direction, key levels, and supply and demand. This is your bigger picture map. 🟡1H chart shows structure: breaks, reversals, order blocks, and fair value gaps. This is where momentum shifts become visible. 🟡15m chart provides timing: liquidity grabs and confirmations to execute precise entries. The flow is simple: context from 4H, structure from 1H, precision from 15m. Skip one, and you either miss the bigger picture or mistime the move.

Common risk management strategies There is no single way to approach risk management. Investors and traders often use a combination of risk management tools and strategies to increase their chances of growing their portfolios. Below are a few examples of strategies that traders use to mitigate risks. 💡 1% trading rule The 1% trading rule (or 1% risk rule) is a method traders use to limit their losses to a maximum of 1% of their trading capital per trade. This means they can either trade with 1% of their portfolio per trade or with a bigger order with a stop-loss equal to 1% of their portfolio value. The 1% trading rule is commonly used by day traders but can also be adopted by swing traders. While 1% is a general rule of thumb, some traders adjust this value according to other factors, such as account size and individual risk appetite. For instance, someone with a larger account and conservative risk appetite may choose to restrict their risk per trade to an even smaller percentage. 💡 Stop-loss and take-profit orders Stop-loss orders allow traders to limit losses when a trade goes wrong. Take-profit orders ensure that they lock in profits when a trade goes well. Ideally, stop-loss and take-profit prices should be defined before entering a position, and the orders should be set as soon as the trade is open. Knowing when to cut losses is essential, especially in a volatile market where prices can tumble rapidly. Planning your exit strategy also prevents poor decision-making from emotional trading. The stop-loss and take-profit levels are also essential for calculating the risk-reward ratio of each trade. 💡 Hedging Hedging is another strategy traders and investors use to mitigate financial risk. It consists of taking two positions that offset each other. Simply put, traders can hedge one trade by making an opposing trade of similar or equal size. It may seem counterintuitive to enter positions in opposite directions, but if done properly, hedging can reduce the impacts of a market move. For instance, imagine that you are long BTC and holding it in a personal wallet. If the market enters a downtrend, you could take a short position to offset your long position without having to move your BTC. This is what we call a market-neutral strategy. 💡 Diversification As the old saying goes, you should not put all your eggs in the same basket. In other words, diversify your portfolio. In theory, a well-diversified portfolio offers more protection against massive losses compared to a portfolio made up of only one single asset. If you hold a crypto asset in a diversified portfolio, the maximum damage you would receive if its price tumbles is a percentage of your portfolio. On the contrary, if your portfolio is completely made up of a single asset, then you could potentially lose 100% of your portfolio’s value. 💡 Risk-reward ratio The risk-reward ratio calculates the risk that a trader will be taking relative to the potential reward. To calculate the risk-reward ratio of a trade you’re considering, simply divide the potential loss by the potential profit. So if your stop-loss is at 5% and your target is at 15% profit, your risk-reward ratio would be 1:3, meaning that the potential profit is three times higher than the risk.

Doji This candle has zero or almost zero range between its open and close. Rather than implying potential reversal or the clear dominance of either bears or bulls, these candles suggest indecision or balance between the two forces. Neither buyers nor sellers are fully in control. A doji that occurs in the context of a strong trend implies the weakening of the dominant force that resulted in that trend. A “long-legged doji” has long wicks in both directions, implying strong, balanced pressure from both buyers and sellers.

Hammer 🟠It is a candlestick with a small body (a small range from open to close), a long wick protruding below the body, and little to no wick above. In this respect it is very similar to a dragonfly doji; the primary difference is that a dragonfly doji will have essentially no body, meaning the open and close prices are equal. 📈When a hammer appears at the bottom of a downtrend, its long wick implies an unsuccessful effort by bears to push price down, and a corresponding effort by bulls to step in and push price back up quickly before the period closed. As such, a hammer candlestick in the context of a downtrend suggests the potential exhaustion of the downtrend and the onset of a bullish reversal. 😄The “neckline,” often determined by the high of the previous bar, is the level that price must hit on the next candlestick in order to confirm the hammer’s reversal signal.

1️⃣0️⃣ Forex trading tips 1. Know the market, doing your research is essential in attaining strong returns with forex trading and investing. 2. Stick to your philosophy and do what works best for you. 3. Practice trading without using money, apply and test other methods, techniques and strategies in order to develop your current philosophy. 4. Know your limits and stick to what you know, stay in your circle- you don’t have to be a genius at everything, stick to the places in which you are smart about. 5. Don’t trade on impulse, leave the emotions at the door and stay purely rational when it comes to trading and investing forex. 6. Keep your trading slow, steady and controlled- again be calm and rational with your trading. 7. Be consistent in your approach and never give up, stay persistent. 8. Keep on learning and developing your mindset, you will only trade as well as you think you can- keep on learning about forex through resources. 9. Stay focused on what you are seeking to attain, where focus goes- energy flows. 10. Give it time and be aggressively patient, give your approach some time to work and don’t expect immediate results- trading is an art and the craft takes time to pay off.

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