Trending Assets
Top investors this month
Trending Assets
Top investors this month
@officialbullish
Bulllish Trading
šŸ˜Ž| Welcome to Bullish šŸ”’| Complete Transparency, No Nonsense šŸ“ˆ| Stocks, Forex, Crypto & Finances
5 following8 followers
The 1% Rule (Weekly / Day Trading) ļæ¼
šŸ”’
ā€¼ļøRisk management is essential for traders, as It helps to manage losses and means we are best placed to remain profitable even when losing some trades.
ā€‹
šŸ’ŽThe 1% rule just means you never risk more than 1% of your capital on any given investment. (There are risk management calculators to calculate your risk for you.)
ā€‹
āœšŸ¼Personally, we would risk 1% to make 5% on any trade as a general rule of thumb. Meaning we apply a risk reward ratio of 1:5 so each win is the equivalent of 5 losses.
ā€‹
šŸ“–Risk reward ratio - Is used so investors can see the expected returns of an investment compared with the risk they must take to achieve these returns.
ā€‹
šŸ“–Taking partials - Is when we take a portion of profits off a running trade to reduce the level of risk in the remaining trade.
ā€‹
šŸ“–Break even - We would use this to describe when a trade closes with zero profit and zero loss. Therefore the trade has broke even.
ā€‹
#bullish
#learntoearn

ļæ¼
ļæ¼
post media

@troy12/16/2022
Risk management is šŸ”‘
Add a commentā€¦
Gambling vs Trading
There is a very fine line between the two if you havenā€™t been taught the correct way to manage your capital / funds.
ā€‹
When trading there should be a emotionless approach with set objectives.
ā€‹
When gambling you just want to win as much as possible, as fast as possible. If you try this in trading you wonā€™t last long.
.ļæ¼
post media

What would you say is the best way for traders to minimize the impact of emotion in their decision making process?
+ 2 comments
šŸ—£
A wise man once said,

ā€œWhether weā€™re talking about socks or stocks, I like buying quality merchandise when it is marked down.ā€

ā€œDonā€™t pass up something thatā€™s attractive today because you think you will find something better tomorrow.ā€

Warren Buffett

These two quotes couldnā€™t be more relevant at the moment as thereā€™s a lot of fear, without taking the time to recognise opportunity.

If you believe in the value of a company/stock & feel it is undervalued donā€™t wait until tomorrow seeking better prices. Take calculated risks managing your risk tolerance and make quality acquisitions at quality prices.

Watchlist
Something went wrong while loading your statistics.
Please try again later.
Already have an account?