LEARN RISK MANAGEMENT

Advanced Risk Management System

Why you need to learn this system for profitable trading?

Risk management helps cut down losses, managing risk also means protecting your capital
Strong risk management protects trader’s account from losing all money.
Risk management is key to successful trading.

Without proper knowledge of risk management, profitable trading is impossible.

Most of the traders are running for Perfect indicator, Accurate entry, Accurate exit, No loss trading setup & unfair Algo trading practices. Risk management is only a term for them but without proper knowledge of risk management, profitable trading is impossible.

A trader needs to understand how to manage his / her risk, position-sizing, stop loss management, profit booking tactics.

Every trader must know about these facts -

Everything is probability-

The stock market is a game of probability, there is no certainty so if you are running for the perfect trading setup which generates 100% result, this is an endless search;100% accuracy doesn’t exist in the stock market. If anyone wants to become a professional & profitable trader, he/she have to understand the game of probability. No one can make money without accepting losses. As profit & loss is part of your trading journey. Before start trading, you need to set these three important points, responsible for managing capital & keeping losses to a minimum.
  1. Risk profile (About Investment Amount)
  2. Risk appetite (Risk Taking Capacity)
  3. Per trade risk (Calculated Risk)

Risk to reward ratio-

Once you get a suitable entry as per your trading system, think where would place your stop loss & profit order. After getting reasonable price levels for your order, measure the risk-reward ratio. If favorable then go ahead otherwise skip the trade. Never forecast price movement always believes in the analysis.

Success key for risk to reward ratio -

Winning trades should be larger than your losing trades

Fix reward vs flexible reward –

Against the risk of you, trade rewards should be flexible. Do not go with fixed reward, try to understand this concept, if you work with fixed reward then you might be missing the bigger profit of your trade if price moves aggressively into your direction or might get lost if price takes early or accidental reversal before your target point.

Let’s discuss about above image –

  1. Here we have taken the example of 1:2 fixed risk to reward ratio entry price is 500, sl price is 495 & target price is 510. (Sl= 5 points, target 10 points)
  2. After execution of a trade, You are waiting for target price 510 ( 10 points double the risk ), as you have taken a risk of 5 points at 495.
  3. When everything is in your favor you get your target at 510 without any challenge.
  4. But Due to high volatility if the price takes early reversal (before your target price), a high probability to get lost. This is an actual challenge where 90% of traders don’t know what to do? And this blank state of mind generates only negative results.
  5. On the other hand, if price triggers your target at 510 where you book your profit & exit from the market after that price moves aggressively in the same direction and makes a good rally on the buying side then definitely you miss this golden opportunity. This is another challenge facing the majority of traders.
But don’t worry you can crack this challenge with our proven price action techniques “Accidental Reversal” where you will learn how to catch reversal in run time market. You can exit before stop-loss triggers when price movement is against you & capture bigger profit if the price goes in your favorable direction

Position sizing-

Always go with calculated risk, take quantity of stocks according to your per trade risk. Take Random risk or manipulation of risk is always dangerous to your hard earned capital so do not apply this kind of wrong practice in stock market.
The stock market is not an experimental ground, winning trade requires discipline, patience, a proven trading setup, strong knowledge & a set of skills.
A Single profit should be wiped out multiple small losses.

Stop loss management-

Do not challenge the stock market with open stop loss it is possible to end up losing your whole capital in single trade. One more wrong activity tracked that is -Most of the trader manipulates their stop loss when price goes near to their stop loss point, this wrong activity only increase your losses.

AS WE KNOW IMPORTANCE OF RISK MANAGEMENT SYSTEM, OUR EVERY MEMBER KNOWS ABOUT IT, OUR MEMBERS ARE MASTER TO HANDLE –
  1. Following market trend
  2. Diversification
  3. Being patient & avoiding quick decisions
  4. Planning the trade in advance
  5. Stock selection before opening the market
  6. Stop loss & Take profit
  7. Set stop-loss points
  8. Probability vs. certainty
  9. Half of the risk

OUR MEMBER’S PERFORMANCE WITH CALCULATED RISK

LOW RISK HIGH REWARD

OUR PRICE ACTION TRADING SYSTEM PROVIDES LOW RISK HIGH REWARD TRADES, AS YOU CAN SEE IN ABOVE MENTIONED CHART, 42 PROFIT POINTS GENERATED WITH VERY SMALL RISK. WE CAN SAY 1:8+ RISK TO REWARD.
1:2 GENERATED AGAIN WITH OUR POWERFUL PRICE ACTION TRADING SYSTEM. THERE IS ONLY 7 POINT RISK AND REWARD IS 17 POINTS. THIS KIND OF TRADE WILL BOOST YOUR TRADING RESULT.
ONLY 6 POINTS RISK BUT PROFIT IS HUGE ( 44 POINTS ) THIS IS CALLED LOW RISK HIGH REWARD TRADING SYSTEM.
RISK MANAGEMENT IS MOST IMPORTANT ASPECT OF TRADING, NO ONE CAN MAKE CONSISTENT RESULT WITHOUT PROPER RISK MANAGEMENT SYSTEM.

See what our members say about our risk management training session.

Make your strong & effective trading plan with our finest & streamlined implementation oriented course for your winning trades.

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