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Risktorewardratio

USDJPY - Analysis and Potential Setups (Intraday- 10.02.25) Overall Trend & Context: The OANDA:USDJPY pair is in an overall downtrend on the higher time frames and has reached highly significant support/demand levels. Lower time frame has given bullish indications, we can try to capitalize on this. Technical Findings: Price broke above the 200 EMA - this can act as dynamic support so watch current levels. Demand zone was formed after sweeping internal liquidity (which resulted in an impulsive bullish break). RSI shows overbought conditions - resulting in a pullback which is what we want to see to confirm price action (currently trading below the 50% level of the RSI) Potential Scenarios: Since we have seen a reaction off HTF supply zones we should wait for proper confirmations prior to entry. If the demand fails, short positions should be considered - analysis will need to be adjusted to adapt to changing supply levels.
Long
by Apexfx_Alpha
1
A Risk Tolerance Test for All TradersRisk Tolerance trips up more traders than any other emotional aspect of trading stocks, or any other asset class. How is your risk tolerance? Would you say that you have a good stable risk tolerance? Or is it the main reason you take small gains or losses? If you need help evaluating your risk tolerance, take this Risk Tolerance Test . If any of these apply, then there is a problem you need to address: Do you get stopped out of trades and then watch as the stock moves up? This is caused by setting stops too tightly for the kind of trading style being used. Do you panic as the stock retraces and lower the stop loss to avoid getting stopped out? This actually increases risk rather than lowering it. Do you raise your stop loss before the stock forms a new consolidation for support? This also increases risk rather than lessening it. There is higher risk that you will get stopped out prematurely. Do you check profit or loss everyday on your held stocks? Position traders should only be checking their balance once a month. Swing traders could wait for the end of the month but can do it weekly. Are you a swing trader who checks your positions intraday to see what is happening? This runs the risk of reacting prematurely to intraday volatility that eventually evens out. Have you given up on using stop losses because "they don't work"? You probably just need to learn a better method for placing stop losses. Do you hold and hold with no stop loss, watching a stock tumble, unable to exit and ultimately exiting too late or "holding long term" instead? This is a chronic problem among retail traders that indicates the lack of a complete trading plan, one that provides a plan for when your holdings go against your intent. To keep your risk tolerance in check try adding these simple steps to your trade analysis: Carefully check the Risk to Reward ratio of your picks, and only trade stocks with a good probability for profit vs. loss. Consider the amount of money at risk in each trade. Think about how you would feel if you lost that money should the trade go against you. Add this parameter to your trading rules. Lower overall market risk by trading more than one or two stocks at a time. Spread your capital outlay over a few picks rather than putting it all on one trade. Use stop losses on every trade. Place stops under the appropriate support levels for the chart patterns and your intent. If you are a Swing Trader, it is important to enter trades only on strong market days. Not every flat day is a good day to swing trade. You'll keep more of your profits over time if you wait for ideal days and picks. The simplest way to improve risk tolerance is to continually paper trade on a Simulator even after you've started trading live. Most beginners do not practice executing their trading plan sufficiently before jumping into the market. They allow emotion to cloud better judgment and let greed overwhelm decisions. Trading is the only business where normally calm, intelligent, and wise people do really greedy things that end up being foolish and risky. And it all comes down to the emotions that come with money, especially fear, greed and pride. Traders have one thing to compete against and that is their own emotions, which can cause poor decisions. My best advice for all traders is this: compete against your own prior trading history to improve results, and ignore what is going on with everyone else. Summary: Emotional control comes from having a sound plan, sticking with it, and not changing it because the market has moved on a whim or some guy on social just made a lot of money. Create your trading style, which is a plan of attack for the market. Set out your strategies and use the correct ones for the current Market Condition. Only trade stocks that have a risk factor you can live with. Use stop losses appropriately, and you will be successful. Problems occur somewhere in all of this, when traders miss a step and deviate from the plan. When you feel emotions getting out of hand, controlling your trading decisions, consider the above checklists for help evaluating and adjusting your mindset. Greed is a tough emotion to control, because it is insidious and hard to identify in ourselves. Fear is easy to identify and much easier to control or harness. A certain amount of fear is necessary and good in the market, because it keeps individuals from taking too much risk. However, fear that dominates daily emotional energy only creates constant losses. Think about this and study prior trades. If they performed well after being stopped out, then there is a risk problem to address in your trading plan.
NYSE:AXPEducation
by MarthaStokesCMT-TechniTrader
EURCHF | Short H1 | Market Exec | Taking a Safe Haven TradeTechnical Confluences for Trade: - Stochastics are in Overbought Conditions on H4 & D1 time-frame - Price action is at a Consolidation/Supply area - Price action may reverse towards the lower Consolidation/Demand area Suggested Trade: Entry @ Area of Interest 0.9815 -0.9835 SL @ 0.9879 TP 1 @ 0.9767 (Close Half-Position & move SL to Entry level once TP1 is achieved) TP 2 @ 0.9707 Risk-to-Reward @ Approx. 2.00 (Depending on Entry Level) ________________________________ Boosts 🚀, Follows ✌️, Shares 🙌 & Comments ✍️ are much appreciated! If you have any ideas or charts, do share them in the 'Comments' section below and we can discuss our perspectives to improve or strengthen our strategies. If you want something analyzed, do drop me a DM. :D ________________________________ Disclaimer: The above suggestion is an personal opinion in general and does not constitute as investment advice. Any decisions taken based on the above suggestion is purely your own risks. Any websites / brokers / applications suggested here are also provided as informational purpose only. ________________________________
Short
by weekendanalyst
EURGBP Position RR 1-110 (Technical)Yesterday I have Entered this trade with 5 pips stop loss using 2% of my bank account. Currently it moved 50 pips in my direction. I just put it a bit above breakeven. Entry Reasons: On Montly/Weekly we can see that: 1) The price is slowing down. 2) On weekly chart we can see a Falling wedge formation. 3) Plus it is on monthly support level. 4) Also we can see the RSI MACD Divergence. So, in summary on technical side this pair is bullish. Will closely look at its fundamentals in process. My entry was: 0.83101 My Sl: 0.83151 My TP: 0.85601 PS: I wont move my SL to make the price more space to move. Will Update frequently.
Long
by Ryokoooo
1
BITCOIN'S BULLISH REVERSAL CONFIRMED!As continuously discussed over the last few weeks, both here and on the YT channel, we've long welcomed a fakeout down below the very key $30 000 support zone, but given that it would recover aggressively and at massive trading volumes. We have now gotten EVERYTHING we've asked for and more in Bitcoin, and for those reasons there is a strong chance the bottom has in fact been set, and that new all-time highs are within reach. What then are the things that further confirm this bullish reversal case? 1) As marked on the chart, we had a fakeout that turned into a bullish hammer on the 4-hour chart - and at significant trading volumes at that to let us know that the bulls are in full control and that they control the support zone. 2) The support zone held up. This is important as there is no support to speak of below until the previous all-time high at around $20 000. 3) The RSI is showing healthy patterns of recovery. This slow, gradual increase is a textbook sign of emerging strength. These would all individually speak of strength. Now they come together as a force and I am convinced enough about this being a reversal to have moved all-in, not in Bitcoin, but in Marathon Digital Holdings, as it moves exponentially to that of Bitcoin. Of course, there are still dangers lurking about. IF the price were to break below $30 000 again, then expect a brutal capitulation drop to take place. Luckily, there's a lot of built-up strength on the charts now to render that possibility unlikely. With that said, I will release EVERYTHING should Bitcoin break below again. One test below was the bullish fakeout to shake out the last weak hands that we asked for. A second revisit would change everything for the worse. With that said, I am highly optimistic about this. And given that I bought in again at $33 000 equivalent, the stoploss is $3 000 below. But ... given that new all-time highs are fair to assume given the five month long wait in combination with the fact that we're technically still in a mark-up, $90 000 should be a conservative number before any significant correction of -20-30%. This means that the upside is $57 000 whereas the downside is $3 000. This gives us 19:1 in odds. What this means is that as long as there's at least a 5% chance of this having been the bottom, then it's mathematically worth taking a long trade. And, I'd say it more than fair to assume that the chances of this being the bullish reversal we've been waiting for is far higher than 5%.
COINBASE:BTCUSDLong
by LongLifeTrading
2
Bankroll and Risk Management, Risk to Reward Ratio - EDUCATIONALIn this example I am showing you how important is RIsk Management in your trading system. You could be the most talented trader in the world with a natural eye for investment opportunities, and still blow your account with one bad call without proper risk management. No matter how good you are, or how experienced you are, you’re still going to incur losses. Even the best traders in the world suffer losing trades - it’s part and parcel of trading. That’s why risk management is so important to your trading. One way that you could strike the right balance between reward and risk is to stick to a reward:risk ratio such as 2:1 or even 3:1, where your targeted profits are always double that of your maximum losses. So even if you suffer three losing trades, you’ll only need two profitable ones to ensure your total profits outnumber your losses if you stick to this reward:risk ratio. Although it’s not a general rule to follow, it can help you to visualise a specific approach to risk management. "It's not important whether you are right or wrong. It's about how much money you make." That means that you can still win 4/6 trade and you are still loosing money. In the example showed you can see that investing different amount of money in each trade can drive to a negative ROI even if yours winning rate is over 66% .
Education
by wolf-lamb
5