We Go To The Moon ( Binance Futures )

2021-09-02 15:09:02 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. Open / Comment

2021-09-02 15:08:02 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. Open / Comment

2021-09-02 15:03:01 Justin Sun tweets about #BTT . Something is coming after 3 days Open / Comment

2021-09-02 15:01:29 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. Open / Comment

2021-09-02 14:51:43 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. Open / Comment

2021-09-02 14:34:01 Trading with only 5% of your capital doesn't mean your trade/position size is only 5% of your total capital.

What it means is that you're RISKING 5% of your equity in a single trade.
Whatever happens, you will not lose more than 5% of your equity on a single trade. Open / Comment

2021-09-02 14:23:41 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. Open / Comment

2021-09-02 14:10:20 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' Open / Comment

2021-09-02 13:58:46 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 Open / Comment

2021-09-02 13:51:27 Technical Analysis MASTER-CLASS.

Part 1- 'How not to lose your money'

Please retweet. It might help a trader from losing it all.

A thread. Open / Comment