Risk Management
$Spdr S&P 500 Etf $Invesco QQQ Trust
Why I emphasis on risk management and stop loss:
Most traders secure profit when their trade is green at 10-20% in profits. They sometimes will put a trailing stop or they will exit most if not all positions by then.
With that being said, If you as a trader is doing the same, then why are you allowing your red trades go more then 10-20% red?
You have to be strategic on both ways. Can’t hope that your red trade goes green.
If you know that you take profits at 10-20% then you must also respect the same method going the opposite direction.
It doesn’t matter how big or small your account size is. It’s about knowing when to exit both ways.
A lot of people that do not grasp this method, tends to lose the most amount of capital. Why risk your capital when the trade is going against you? Yet, those people that do not follow that rule are the same ones that say “market is manipulated.” No, you’re not being smart with your capital. You are acting as a gambler and not knowing when to stop. Addictive personality is always trying to be in a trade even when it is going against you. This is what blows up majority of peoples account.
How often do you reevaluate your trades? Your good and your bad? What did you see when you entered the trade? Where did you go wrong? Where did you go right? Did you have your exit strategy when price hits a certain target (regardless of the direction your play goes)? Do you ask these questions after your trading day? If not, then maybe you need to if you truly want to successfully build your account.
Do not let other people dictate your money. If you follow someone into a trade, not all times will that person get you out of a trade. Most won’t even say they got out or when they got out. Is the person you following have a stop loss in place? An exit strategy when it’s green? If not, then why do you follow them?
These are questions you need to ask yourself.
Apologize if the post is too long. But 90% of retail traders lose money because they do not have a proper risk management. Be smart about your capital. It is YOUR money!
Why I emphasis on risk management and stop loss:
Most traders secure profit when their trade is green at 10-20% in profits. They sometimes will put a trailing stop or they will exit most if not all positions by then.
With that being said, If you as a trader is doing the same, then why are you allowing your red trades go more then 10-20% red?
You have to be strategic on both ways. Can’t hope that your red trade goes green.
If you know that you take profits at 10-20% then you must also respect the same method going the opposite direction.
It doesn’t matter how big or small your account size is. It’s about knowing when to exit both ways.
A lot of people that do not grasp this method, tends to lose the most amount of capital. Why risk your capital when the trade is going against you? Yet, those people that do not follow that rule are the same ones that say “market is manipulated.” No, you’re not being smart with your capital. You are acting as a gambler and not knowing when to stop. Addictive personality is always trying to be in a trade even when it is going against you. This is what blows up majority of peoples account.
How often do you reevaluate your trades? Your good and your bad? What did you see when you entered the trade? Where did you go wrong? Where did you go right? Did you have your exit strategy when price hits a certain target (regardless of the direction your play goes)? Do you ask these questions after your trading day? If not, then maybe you need to if you truly want to successfully build your account.
Do not let other people dictate your money. If you follow someone into a trade, not all times will that person get you out of a trade. Most won’t even say they got out or when they got out. Is the person you following have a stop loss in place? An exit strategy when it’s green? If not, then why do you follow them?
These are questions you need to ask yourself.
Apologize if the post is too long. But 90% of retail traders lose money because they do not have a proper risk management. Be smart about your capital. It is YOUR money!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Teaching how to trade off of TA
Respect your capital and securing profits
@SOC_Trading
53Followers
10Following
347Visitors
Follow
rengoku : golden advice!
Kiifer : If u find out PMEAAE TEXT ME 229 457 8844
Violets : Do you recommend a smaller stop loss then the profit margin goal...for example 10 % consistently...sell. Gain 20%to 30%sell%
RomezOP Violets: Yes. But it also Depends on the contract that you paid for, say you purchased a contract for .40 and you do a 10% now you limit the movement. A quick spike down will stop you out. At 20% you’ll have a bit more Flexibility