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Good Risk/Reward

A Good Trade Vs A Bad TradeThe Good Trade Process A good trader would do some analysis post market, some do it in the evening while the others at night but the time of analysis does not matter. He searches for his favorite setups on higher time frame charts and look for potential opportunities. He takes down only those trades which qualify his risk appetite. Opportunities with 1:2 or more risk to reward ratio are normally good for consistent traders. The trader sits patiently and wait for setups/strategy to complete and looks into lower timeframe charts to finetune his entry if possible. Discipline is followed for exits and stops, which are not moved (few exceptions) after the trade is initiated. If the trader follows the above tenets but a trade turns out to be a loser, I would definitely call it a Good Trade because he followed the right process. One needs to accept that in trading business one has no control over the results but the process. Post analysis helps the trader to know his weaknesses. He notes down his weaknesses after each trade and plans what he can do about it. A Bad Trade A Bad trade is exactly the opposite of a good trade. None of the above traits are followed. The trader takes position chasing a breakout or trades a pullback coz prices are lower. No proper setups are followed and risk reward ratio is poor. Stops are moved when they are about to hit and profits are taken before targets are reached. With this type of trading, the trader can not survive the market for long. Soon he bursts his account. The trader is so desperate after watching his PnL that he can't even post analyse his trades in frustration. This only reflects that he is not learning, he just wants money. But the truth is that learning is an ever ending process in any field. If the trading process is not followed but a trade comes out to be a profitable one, I will definitely call it a Bad Trade. Trading Performance: One should never judge his trading potential just on the basis of few losing trades. Losses are part of trading business (but only if one is taking it as a business and not Casino ). Few losing trades are just part of those hundreds trades that one will take in future. So with the right trading process, the chances are rare that a trader ends up as a loser after those few hundred trades. For that one surely needs to assess his trading strategy and psychology at least every three months, for early improvements. Hope above information from my experience will help some traders to overcome failures and the other to improve their trading. Regards
NSE:NIFTYEducation
by Bravetotrade
23
Wipro is on Crucial level {Must Watch}Wipro is standing on the crucial levels... If it crosses 260 levels it may give big upmove towards upper direction... And in that case targets will be 260/270/283 whereas SL will be 250 If It gives breakdown then we may see downside and shorting opportunity... In that case targets will be 250/240/235/227 whereas SL will be 260 In both the above cases RR is perfect... :D Note: Do your own study before making any position... Please Like, Follow and Comment your views below...
NSE:WIPRO
by MrAkshatP
4
HINDZINC on crucial level { Must be on watch list }Hindustan Zinc is inside a channel where price is lil far away from bottom line and has made double bottom which indicates down trend is weak... But price is getting rejected from 247 which is a resistance level... If price breaks 247 and sustain above that then we can consider it as a confirmed breakout.. In case of Breakout my targets will be 255/268/282/290+ where as SL will be 240 just below that resistance which could definatly act as support if price sustain above those levels... And , If price break the bottom support region 230-220 (chances are less) then we can consider, it will follow downtrend with the channel... So, in that case target will be 212/200/190 and SL : 225 In both the cases Risk Reward Ratio is favourable... Note: Do your own study before making any position... Please Like, Follow and Comment your views below...
NSE:HINDZINC
by MrAkshatP
4
Channel Breakout { Very Bullish }Ujjivan Fin Serv has beautifully took support over the support line and broke the channel with a very big no. of volumes... Points which confirms Bullishness : 1. Took support on support line and based on that support, It has broken Channel... 2. Very High no. of volumes traded on the last trading day of week.. 3. Looking towards higher time frame (weekly) A very Bullish Engulfing candlestick pattern is formed.. Charts are clearly indicating that it may touch 450 zones again... Targets are 335/350/370/390/420/450+ SL: 305 Risk Reward Ratio is perfect.... Note: Do your own study before making any position... Please Like, Follow and Comment your views below...
ULong
by MrAkshatP
25