People mostly the non traders, always ask how much money do you plan to win before you enter the trade, as soon as they ask this question their novice trading mind is exposed. A good traders always counts meticulously counts how much one is willing to loose on a trade first.
This is not pessimistic sight this is forward deliberate trading shark thinking.
Let me explain, for the sake of this conversation we will refer to a win as Rw *reward* and a loss as Rs *risk*
The Good
The Bad
The Key point to remember here is the Rw to Rs ratio. The trade did not work out as my tight STP loss was triggered above the SZ(D) yet price continued going down, I did not chase, I did not enter the trade again, I accepted the Stop Loss, know what you are willing to risk before you enter a trade
This is not pessimistic sight this is forward deliberate trading shark thinking.
Let me explain, for the sake of this conversation we will refer to a win as Rw *reward* and a loss as Rs *risk*
The Good
- longterm chart (W) is in a downtrend, having recently broke and closed below the (W) demand zone
- the current chart (D) on the left is running up into a Supply zone SZ,
- lots of room for price to run down if SZ holds,
- Good Rw to Rs ratio
The Bad
- market is bullish
- historically bullish stock
- The (D) downtrend did not make a Lower Low before the correction to the SZ
The Key point to remember here is the Rw to Rs ratio. The trade did not work out as my tight STP loss was triggered above the SZ(D) yet price continued going down, I did not chase, I did not enter the trade again, I accepted the Stop Loss, know what you are willing to risk before you enter a trade
Pernyataan Penyangkalan
Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.
Pernyataan Penyangkalan
Informasi dan publikasi ini tidak dimaksudkan, dan bukan merupakan, saran atau rekomendasi keuangan, investasi, trading, atau jenis lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Ketentuan Penggunaan.