Trading in financial markets can be a lucrative venture, but it also carries a significant amount of risk. The markets are inherently volatile, and unexpected events can have a significant impact on your investment portfolio. That's why risk management is a crucial aspect of successful trading. In this article, we'll discuss the importance of risk management in...
As per my personal experience the following are the most primary reasons for failure in trading - applicable to all types of new traders and all the markets. Well! this is not an exhaustive list but the most reasonable one.
🚩 No Plan of Action
Trust me on this one, most traders fail to build a plan of action and fail. It is not only true for new traders but...
Fear of Missing Out
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You missed a great opportunity yesterday. You take it as a mistake and don’t want to repeat it. So, today you enter in a hurry, deviating from your edge/strategy thinking that you will nail it this time. But that might not be the case.
Missing an opportunity, because it was not in-line with your back tested strategy,...
Introduction:
Price trends do not usually reverse on a dime. uptrend and downtrend are typically separated by a transitional period or trading range, and trading range formation signal trading opportunities for traders.
The trading range separating rising and falling price trends discussed here
is a pattern known as a rectangle.
This post will cover these...
PICK 1
TRADING SKILL
THAT TOOK YOU LONGEST TO LEARN
>>>COMMENT BELOW
*DISCIPLINE*
*SPOTTING TREND
*TRADING PLAN*
*RISK MANAGEMENT*
NOTE - OPEN FOR DISCUSSION
Part 1 – Methodology Plan
This is the framework of your trading plan. Without thoroughly making these decisions, your plan may not be fluid.
Part 2 – Your Money Management Plan
Money management is the most important part of the plan. This is where you should understand how “risk of ruin” relates to your trading.
When calculating your risk of ruin, any number...
