Trading is NOT gambling if you use calculated risk. Here’s a simple thread on Risk Management and how to Calculate your Risk.🧵(1/10)
• Risk to Reward Risk to reward is what you’re willing to lose vs what you’re calculated to make. To be a successful trader you must have at least a 1-1.5 R-RW. EX-you risk $100 per trade to make atleast $150. Therefore you can be wrong more than right + still be profitable.
• Position Sizing Position sizing is very important in risk management and in controlling your emotions. Position yourself to the point where you can lose the money and not care, then get consistent and scale up.
• Taking Profits Add up base hits, 20% on a trade is AMAZING. You see people hitting home runs etc, don’t let that influence you. If you are in a trade and it gets to the point where you take a screenshot of your account then it’s time to sell.
• Leaving Runners while the play is running trim and move your stop loss up. By doing this you can ride the trend and still lock in close to maximum profits.
• How to Trim? Trimming is super important while scalping. Trimming is when you sell portions of a stock while it goes up. I like to do it in 3 portions. Usually 30%,50%, and 70-100%. While trimming you move your stop loss up while the stock is moving so that you minimize risk
• Types Of Stoplosses Stop-losses are super important. This is how you calculate your risk, stoplosses allow you to stop out down a certain percentage. Their are trailing stop-losses, and regular stop-losses.
• Trailing SL vs Regular SL The trailing stop-loss trails behind the stock as its price moves, this allows you to ride the trend and catch a good amount of the move while trimming. A regular stop loss just triggers at a certain price.
• What NOT TO DO - NEVER AVERAGE DOWN ON A TRADE - NEVER HOLD THROUGH YOUR SL - NEVER ENTER A TRADE WITHOUT A PLAN - DONT BE GREEDY, GREED IS THE KEY TO FAILURE 🤣
Hope you guys enjoy these simple short threads. More to come in the coming days! I’d appreciate all engagement to this thread, also if you enjoy educational information, trade ideas, game plans, tips, and much more make sure you are following me! (Big announcement next week 👀)
@PBInvesting This is a great thread! 🎉 Managing your risk and building an effective risk management strategy is key 🔑
@PBInvesting Ay yo hol up. All ya'll gotta do is 10% daily gains flippin' USDT no cap. Markets straight up bussin fr fr
@PBInvesting @Cardiorudy read thread
@PBInvesting @readwise save
@PBInvesting Love the education! Thank you
@PBInvesting @readwise save
@PBInvesting Thanks for sharing
@PBInvesting @WOLF_Financial Absolutely spot on. So important to develop position sizing and risk management skills early in one’s trading career. I coded my position sizing calculator and risk management tools into @tradingview.
@PBInvesting Resistance and support
@PBInvesting Big props lil bro
@PBInvesting Period
@PBInvesting Why never averaging down?
@PBInvesting @threadreaderapp unroll
@PBInvesting Much appreciated PBInvesting
@PBInvesting I don’t know if I can trust a boy in a coon skin hat. Those are always the ones too worry about.
@PBInvesting Just look for next key level breaks.
@PBInvesting Trading what?