WOLFSTACK EXCHANGE
Ir al canal en Telegram
Join the pack! Wolfstack Exchange: Where smart traders unite. Discover an intuitive platform that combines crypto trading and web3 gaming, designed for strategic mastery and secure transactions. Unleash your trading potential!
Mostrar más4 799
Suscriptores
Sin datos24 horas
-207 días
-8830 días
Archivo de publicaciones
4 799
101.
-Don't risk more than 3-5% equity on a single trade.
-Position size matters, not leverage.
-Your position size can be as big as needed while risking only 5% of your equity.
-Leverage needs to be determined keeping the stop loss in mind.
DON'T RISK MORE THAN 5% ON ONE TRADE.
4 799
The profitability is gained from obtaining a good R:R (Risk to reward) ratio over a period of time.
R:R, Stop Loss placements and the use of leverage will be explained in the next threads.
4 799
It might come as a surprise that the most successful and long term traders have a strike rate of around 40%.
The best traders that I know personally and even myself don't have that high of a hit rate.
Then how does such low strike rate lead to profits in the long run?.....
4 799
The chart below shows the consecutive losses a trader will DEFINETELY face over a period of time with the given hit rate.
Now imagine if someone with a respectable hit rate of 70% risked 40% of his capital in each of the 6 losing trades. REKT.
4 799
But Why risk so little capital?
Per math, even if you have a very high strike rate (ratio of winning trades) eg 70%, there will come a time when you will have 6 consecutive losing trades.
High equity risk trades are historically proven to deplete all capital as explained below.
4 799
Leverage usage is a function dependent on the Stop loss determined based on TA.
I use only technical analysis to determine the stop loss and the leverage multiple shall be determined by it.
We will learn the application of leverage in the "Stop Loss" thread.
4 799
Trade Size will be determined by the LEVERAGE on that 5% equity.
This is illustrated in the note below.
Notice how 5% equity at risk of $100,000 becomes a position size of $100,000 by risking just $5000
Caution- This is just an illustration,we will learn to use leverage later.
4 799
The 5% Rule
NEVER risk more than 3-5% of your portfolio on a single trade.
3% is what I prefer, 5% is an aggressive approach.
This might sound bizarre, a waste of time but let's understand it further.
4 799
Since 90% of the traders lose money due to lack of risk management, we don't need to further discuss its importance.
If we don't manage risk mathematically, we WILL FOR SURE lose all the capital. FOR SURE.
In this thread, we will try to understand
'Optimum position sizing'
4 799
Fact- 90% of the traders lose money.
We will learn how to be in the top 10% by mastering Risk management in the next few threads. The most important but most ignored concept.
According to me, ALL of trading knowledge is futile if you don't follow Risk Management. Period
4 799
🔥 Complete Technical Analysis Masterclass
Part 1- How not to lose money.
Study it in detail. I'm going slowly to help everyone understand. These tutorials are ALL you need. I will begin from the beginning and take till the most advanced level.
4 799
The most important thing for a trader is risk management
We will send you the best ways to manage your risk in a few minutes🥰
4 799
Trading is filled with errors, stumbling blockade and even Liquidations that will lead to costly mistakes.
Your aim is to accept that the market will change, strategies will become useless and edges will die.
Adapt or Die.
Be ready to learn a new edge, a new Pattern. To restart
Good morning ❤️❤️❤️
4 799
🟢Futures Signal (4h)
🟢 BTC - SHORT
Entry 28000 - 28450
Targets: 26909 27.500 27000
Stop loss: 28862
