I have honestly learned more from your channel than any other trading channel on TH-cam! I can’t thank you enough! In 2020 I decided to learn how to lose weight, I lost 75 pounds and have kept it off. In August of 2021 I decided to learn how to make money in the Stock market. I found your channel 3 months ago roughly and have designed a strategy based on your videos and I’m up with just under 40% returns in that time. I cut losers quickly and let winners run with a strategic understanding of a exit point. I absolutely love your videos! This is the best channel on TH-cam as far as I’m concerned! Thank you 🙏 so damn much for your time and teachings! You have my utmost respect and loyalty!
Reward to Risk is definitely the cornerstone of my strategy. Everything else should be working for it. Momentum, tight setups, timing, relative strength, industries and market conditions. Great video. Thanks.
@@kippsguitar6539 That's right, we trade for money but the primary goal is to find great trades, positive balances between reward and risk, and money will follow. We can't expect to earn money at all cost ! Not here to tell how much I profit or lose :D Wish you the very best.
Thanks Gareth. Perfectly explained. Another technique, for the non breakout trader (like me), is to buy close to support, or around the 20 week EMA, and calculate risk as distance to support whilst reward is the distance to top of Donchian channel.) If the ratio is better than 2 to 1, it's worth a punt. (Other factors have to be taken into account too, like the MACD.)
Yes but you are blinding yourself with science, strategy isn't nearly as important as people believe, it's risk management and psychology they make money consistently
@@kippsguitar6539 Calculating the stop loss and the limit is risk management. Psychology is sticking to your plan. I do not equate this with blinding oneself with science. But thank you for your comment.
Thanks for sharing. So my take away from this video is having an almost full proof set up. I’ve watched many trader videos and a lot of them screen for consolidations and breakouts, but entry for their trades vary using a combination of technical analysis. I am current working on better entry/timing. I am going to create a spreadsheet to help me managing risk after watching your video and seeing how a small breakout can make a huge difference.
The videos you make paired with the book titled Technical analysis of the financial markets by John Murphy make an incredible combination. Keep up the good work and thank you for providing so useful information every time.
Thank you for this channel. I am a visual learner and sometimes it is hard for me to read books alone. This helps me understand the book that I am reading.
Hey, I just want to comment here that I really love your channel and content! I recommend it to anyone interested in trading whenever I can, especially for your commentary and criticism. Thanks you!
I have an RR of 2:1 win/loss ratio with a 40% to 50% win rate, month to month. 6% to 15% gains per month depending on number of set-ups I get. Forex market at the moment (EUR/USD)
Your videos are very helpful for trading community for new trading ideas, risk management, psychology etc. I love the way u explain everything in simple words and appropriate example. I trade in Indian markets and got benefitted from ur videos. Keep it up. Thank you.
During a market crash a novice trader will keep hope that one day his portfolio will come to break even, but when market crashes even more he panic sells all his position and loses money. And when market begin to rise the same novice trader is afraid that anytime the market can change the direction and can go bearish, and this results in the trader locking in the profits very early missing out on big gains.
You seem to also be a novice trader with that simplistic and obvious statement, remember what Charlie munger said, be aware of your circle of competence and realistic, be very careful, good luck
Its all sounds great, on paper.....but only have a meaning in hind site. One never knows what the next hours or day brings, you won't wait for the brake out price to extend too far, then the number of your stopped out trades will increase, loosing less more often.All you can control is the risk, the reward ratio, can only be determined afterwards if there was any at all....
Not so much on paper, I have applied this approach for many years. Its all about putting probability in your favour, therefore improving the win rate too. limit loses and maximise wins is ultimately the goal.
Great content. I just don't get it why some people uses the first R as risk, and others as reward. Sometimes it gets confusing. But great video and very easy to understand. I'm new to cripto trading, was always a buy and holder, but it's boring to be a hodlr lol.
Another great video. However, in practice, keeping the loss at 1 % max is not feasible in my specific case. The transaction costs combined with the tax fee is putting me already at -1.2 %. Essentially, the batting rate and risk reward ratio must be higher in order to make a profit.
Great videos. Is there one that explains of how often it happens that she stock gaps down in aftermarket and never sells at the stop loss level and what to do in that case? I have found myself with a position still going because it gapped down and I end up becoming an accidental investor because of that.
Hello Gareth, Excellent video! I understand how you came up with the risk % based on the prior basing and the breakout candle height. But how do you determine what the reward % should be for a trade? For example, do you project based on some fibonacci projection, analyst projections, or do you assume a sell at a particular RR ratio of say 2.5:1 and move on? Thank you.
I base my assumption on my historical trades which is on average 4:1 - If you build up your database or backtested data you can do the same based on your own longer term average too ;-)
I'm a little confused and I hope someone can explain. In the example he has both trades with a 50% win rate. To me entering the trade later in #2 would confirm the breakout. #1 it would seem would be more apt to have a false breakout. If that's the case #1 would have losing trades that #2 would avoid and therefore #2 should have a higher win rate. What am I missing?
The breakout of the upper resistance line is at #1, and will have lower risk. If the rationale for a stop loss is at the lower of the consolidation both would have equal chance of being stopped out 'in theory'. It is always a trade off between risk reward and win rate
What if the price action never reaches the stop loss or profit price and just ping pong back and forth. At which time would you cut your profit or cut your loss below your limit. You can’t hold forever and prevent other opportunities.
Staying within a positive trend i.e 20 week moving average will help, as does the MACD. Of course you cant be right all the time, we can only move the probabilities into our favour using a positive expectancy approach. Just like a casino.
You don’t always have to think long term. Investing/Trading is as much a tool for shaping your present financial situation as it is for forming your future one. Do you want to buy a BMW next year? Do you want to go on a cruise? Wouldn’t a vacation that was paid for with dividends feel nice?
If you are investing in the hope of buying a house, you will almost certainly be looking at longer-term instruments. If you are investing to buy a computer in the new year, you may want short-term investments that pay dividends or some high-yield bonds.
Hi there, I live in New Zealand and the time zone is brutal for trading with the US market. How can I trade and make money while living in New Zealand?
In market trading, many experts emphasize the importance of Risk Reward Ratio in Stop Loss Level design, with all sorts of arguments & rationale. Isn't it true that the more fundamental thing is the competency & skills in market projection which may bring profit. If this projection is wrong，the best Reward Risk Ratio does not work.
Hello, I entered 1000 USDT in a Crypto pair trade position by a Risk-to-Reward of 2 ; If it reaches to my take profit/TP, then I will have 2000 USDT ? Thanks,
thanks for your videos!! if you enter at a higher price that would probably means a higher win rate? so you have a worst risk reward but a higher win rate i suppose
@@FinancialWisdom yesterday i sign up to your website!! I have a question: do you use the same method to short stocks? And in other markets like commodities or cripto or forex? I want to trade in different markets that are not correlated Thanks
@@FinancialWisdom Until now I am not short stocks either, but I am afraid that a market correction could cause me a very large drawdown, in that case having some shorts would help minimize the risk I suppose 🤷♂️
I make huge profits on my investment since i started trading with a professional broker Mrs Stacie Morgan, her trading strategy are top notch coupled with the little commission she charges on her trade. Thanks so much ma'am♥
I thank you for the level-headed financial advice. I started my investment with $3,345 in just a week of trading with her I’ve gotten $7,939 in my portfolio. Thank you Ma'am
This content is rich with groundbreaking ideas. I came across a book with like themes that shifted my viewpoint. "Mastering Money Mindfulness" by Benjamin Hawk
if you are profitable trader why the fuck do you sell your strategy and membership any profitable trader who makes millions havent sell any fucking thing about teaching stuff
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I have honestly learned more from your channel than any other trading channel on TH-cam! I can’t thank you enough! In 2020 I decided to learn how to lose weight, I lost 75 pounds and have kept it off. In August of 2021 I decided to learn how to make money in the Stock market. I found your channel 3 months ago roughly and have designed a strategy based on your videos and I’m up with just under 40% returns in that time. I cut losers quickly and let winners run with a strategic understanding of a exit point. I absolutely love your videos! This is the best channel on TH-cam as far as I’m concerned! Thank you 🙏 so damn much for your time and teachings! You have my utmost respect and loyalty!
Wow that's great feedback thank you! Glad to know you are gaining or should I say losing 😊
for me it is the other way around. I have lost 7.5K in cash and gained 40% in fat.
This channel was the missing puzzle for me. Thank you for sharing your experience with people
Thanks
Reward to Risk is definitely the cornerstone of my strategy. Everything else should be working for it. Momentum, tight setups, timing, relative strength, industries and market conditions.
Great video. Thanks.
Well said!
Yes but do you make money!!
@@kippsguitar6539 That's right, we trade for money but the primary goal is to find great trades, positive balances between reward and risk, and money will follow.
We can't expect to earn money at all cost !
Not here to tell how much I profit or lose :D
Wish you the very best.
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Thanks Gareth. Perfectly explained. Another technique, for the non breakout trader (like me), is to buy close to support, or around the 20 week EMA, and calculate risk as distance to support whilst reward is the distance to top of Donchian channel.) If the ratio is better than 2 to 1, it's worth a punt. (Other factors have to be taken into account too, like the MACD.)
Hi William. Thanks for sharing!🙏
Yes but you are blinding yourself with science, strategy isn't nearly as important as people believe, it's risk management and psychology they make money consistently
@@kippsguitar6539 Calculating the stop loss and the limit is risk management. Psychology is sticking to your plan. I do not equate this with blinding oneself with science. But thank you for your comment.
@@williamkz I do, KISS
@@kippsguitar6539 Moi aussi.
Thanks for sharing. So my take away from this video is having an almost full proof set up. I’ve watched many trader videos and a lot of them screen for consolidations and breakouts, but entry for their trades vary using a combination of technical analysis. I am current working on better entry/timing. I am going to create a spreadsheet to help me managing risk after watching your video and seeing how a small breakout can make a huge difference.
The videos you make paired with the book titled Technical analysis of the financial markets by John Murphy make an incredible combination. Keep up the good work and thank you for providing so useful information every time.
Thanks Joao - I'll take a look.
Thank you for this channel. I am a visual learner and sometimes it is hard for me to read books alone. This helps me understand the book that I am reading.
Great to hear.... thanks
The best channel on investing I have ever seen. Your videos can be the best selling honest educational course on investing!!!
I appreciate that!
But highly unlikely you can profit unless you can actually follow them under pressure like most people can't, it's all about psychology
She's wonderful. She prayed after video.
I am definitely given you a follow
Awesome! Thank you!
Hey, I just want to comment here that I really love your channel and content! I recommend it to anyone interested in trading whenever I can, especially for your commentary and criticism. Thanks you!
Thanks Jung - Appreciate that🙏
It’s the absolute best trading channel on TH-cam!
@@kapitalidea agreed!
Your channel is such a blessing! Thank you and I have never seen a channel like yours! Great work!
Sir, probability is also is important R:R 1:2.25 has 25℅ probability of hitting target and R:R 1:1.33 has 40% probability of hitting target.
@@bulletprooftrading yes.. In terms of only relative price movement.. Not with respect to chart patterns... Wt do u trade?
its all dependent on the way you trade and how you enter aka your accuracy of entries and time spent in a trade
I have an RR of 2:1 win/loss ratio with a 40% to 50% win rate, month to month. 6% to 15% gains per month depending on number of set-ups I get. Forex market at the moment (EUR/USD)
With those ratios and win rates, you wouldn't profit.
@@ianbrown5955 Is your trading method simple?
That's me. Willing to ride a stock to zero and take small gains because I am afraid of a reversal
Are you broke still?
Thank you so much. Your channel helped me develop my own great strategy that helped me grow my account
Great to hear!
I have taken two losses around 95% each. The old saying you don’t lose money until you sell is total crap. I learned the hard way.
Yep, always have a stop loss
Hard lessons are the most memorable though, never forget them
Your videos are very helpful for trading community for new trading ideas, risk management, psychology etc. I love the way u explain everything in simple words and appropriate example. I trade in Indian markets and got benefitted from ur videos. Keep it up. Thank you.
Great to hear🙏
During a market crash a novice trader will keep hope that one day his portfolio will come to break even, but when market crashes even more he panic sells all his position and loses money. And when market begin to rise the same novice trader is afraid that anytime the market can change the direction and can go bearish, and this results in the trader locking in the profits very early missing out on big gains.
Very true
You seem to also be a novice trader with that simplistic and obvious statement, remember what Charlie munger said, be aware of your circle of competence and realistic, be very careful, good luck
Its all sounds great, on paper.....but only have a meaning in hind site. One never knows what the next hours or day brings, you won't wait for the brake out price to extend too far, then the number of your stopped out trades will increase, loosing less more often.All you can control is the risk, the reward ratio, can only be determined afterwards if there was any at all....
Not so much on paper, I have applied this approach for many years. Its all about putting probability in your favour, therefore improving the win rate too. limit loses and maximise wins is ultimately the goal.
You have a fundamental misunderstanding of trading and thank god for your negative beliefs here they stop you from trading, it's a blessing
Thanks, one of the great learning youtube channel.
My pleasure!
Please make videos on Wyckoff and Tom Williams
Pure Gold! Really appreaciate it Sir. ❤️
Always welcome
i use a robot that does well with an RR of 5:1. it requires the trade to 'breathe' before hitting the TP
Much depends on your point of view.
Попробовал, всё работает, спасибо!
Great great info as always!!! Thank you
Thanks for watching!
As usual very nice video I would love when you will make video about Trading Tribe from Seykota
Noted
Great content. I just don't get it why some people uses the first R as risk, and others as reward. Sometimes it gets confusing. But great video and very easy to understand. I'm new to cripto trading, was always a buy and holder, but it's boring to be a hodlr lol.
Good point! thanks
Another great video. However, in practice, keeping the loss at 1 % max is not feasible in my specific case. The transaction costs combined with the tax fee is putting me already at -1.2 %. Essentially, the batting rate and risk reward ratio must be higher in order to make a profit.
Hi Nobby, 1% is max equity risk, not positional risk.
@@FinancialWisdom Thanks for that clarification! Again: I really enjoy your videos, outstanding work.
Thanx, cartoons always make it easier lol
lol i guess it takes the mundane out of it...
Great videos. Is there one that explains of how often it happens that she stock gaps down in aftermarket and never sells at the stop loss level and what to do in that case? I have found myself with a position still going because it gapped down and I end up becoming an accidental investor because of that.
Not that I know of. To be honest its a very rare occurrence for me, perhaps more so on small/micro caps
Very good video thank you Arno.
Glad you enjoyed it
very useful. thank you
Glad it was helpful!
At 5:18, how do you get 4% risk ratio? Thank you.
Beautiful explanation! Thanks man!!!
You're welcome!
Hello Gareth,
Excellent video! I understand how you came up with the risk % based on the prior basing and the breakout candle height. But how do you determine what the reward % should be for a trade? For example, do you project based on some fibonacci projection, analyst projections, or do you assume a sell at a particular RR ratio of say 2.5:1 and move on? Thank you.
I base my assumption on my historical trades which is on average 4:1 - If you build up your database or backtested data you can do the same based on your own longer term average too ;-)
I'm a little confused and I hope someone can explain. In the example he has both trades with a 50% win rate. To me entering the trade later in #2 would confirm the breakout. #1 it would seem would be more apt to have a false breakout. If that's the case #1 would have losing trades that #2 would avoid and therefore #2 should have a higher win rate. What am I missing?
The breakout of the upper resistance line is at #1, and will have lower risk. If the rationale for a stop loss is at the lower of the consolidation both would have equal chance of being stopped out 'in theory'. It is always a trade off between risk reward and win rate
That's the trade off, false breakouts v highly gains
Very very nice video sir 👌..
I love your video..... ❤️
Thank you so much 😀
How do you determine the reward target? Or do you just go for a set return at which you exit regardless of how good the trade is or isn't going?
Backtest data or your own previous trades (the average reward)
How arw you deploying capital in relation to R/R ratio? Are you doing percentage Kelly or predetermined position sizes? (250, 500, 1000 share etc )
Yes I'm using fractional Kelly.
Do you ever short a stock after a breakdown from consolidation?
No I dont, I have a long bias to the markets and trade that way. If the market turns collectively I turn to cash.
Traders r the worst at yt😂 this vid helped a lot ty
Thanks 👍
What if the price action never reaches the stop loss or profit price and just ping pong back and forth. At which time would you cut your profit or cut your loss below your limit. You can’t hold forever and prevent other opportunities.
Staying within a positive trend i.e 20 week moving average will help, as does the MACD. Of course you cant be right all the time, we can only move the probabilities into our favour using a positive expectancy approach. Just like a casino.
Love you
Love you too!
Awe I love all of you too! Lol
I'm a newbie I still don't know!
in my opinion i think we should put minimum RRR 1:2
No 1:3 is good but do what makes u profit
You don’t always have to think long term. Investing/Trading is as much a tool for shaping your present financial situation as it is for forming your future one. Do you want to buy a BMW next year? Do you want to go on a cruise? Wouldn’t a vacation that was paid for with dividends feel nice?
If you are investing in the hope of buying a house, you will almost certainly be looking at longer-term instruments. If you are investing to buy a computer in the new year, you may want short-term investments that pay dividends or some high-yield bonds.
PRISCILLA DEARMIN-TURNER is my financial Expert .. look her up
Talk is easy. to Do it is another story.
very confusing but i am trying my best to understand it
Hi there,
I live in New Zealand and the time zone is brutal for trading with the US market.
How can I trade and make money while living in New Zealand?
Hi - I use the weekly charts therefore trades can be opened and closed on the weekend regardless of timezone.
Just asking what things do you discuss in your group?
Hi - Everything strategy related, a weekly report from me, my selections/philosophy etc
@@FinancialWisdom where do you invest? Stocks? Crypto?
In market trading, many experts emphasize the importance of Risk Reward Ratio in Stop Loss Level design, with all sorts of arguments & rationale.
Isn't it true that the more fundamental thing is the competency & skills in market projection which may bring profit. If this projection is wrong，the best Reward Risk Ratio does not work.
Hello,
I entered 1000 USDT in a Crypto pair trade position by a Risk-to-Reward of 2 ;
If it reaches to my take profit/TP, then I will
have 2000 USDT ?
Thanks,
How can you have same win rate without confirmation?
Do you not obtain your “R” until after it breaks resistance in your original box @3:15?
thanks for your videos!! if you enter at a higher price that would probably means a higher win rate? so you have a worst risk reward but a higher win rate i suppose
Absolutely!
@@FinancialWisdom yesterday i sign up to your website!! I have a question: do you use the same method to short stocks? And in other markets like commodities or cripto or forex? I want to trade in different markets that are not correlated
Thanks
@@aldolabuonora Hi - I dont short stocks, I have a long term positive bias and I trade that way - I do trade Bitcoin on the long side too,
@@FinancialWisdom Until now I am not short stocks either, but I am afraid that a market correction could cause me a very large drawdown, in that case having some shorts would help minimize the risk
I suppose 🤷♂️
@@aldolabuonora Possibly.... maybe shorting the index would be a better option for you...
How are you getting these “R”’s?
R-Multiple by Dr. Van Tharp
Yes it's very insightful
5:30 You don't explain you're getting the 4% 6% numbers.
😎
🙏
Pzl hindi me video banaya kare
Hello, may I know what software do you use to make this animation? Great content as always..
Hi - Videoscribe
I make huge profits on my investment since i started trading with a professional broker Mrs Stacie Morgan, her trading strategy are top notch coupled with the little commission she charges on her trade. Thanks so much ma'am♥
With just a thousand bucks. my portfolio is worth much more now within just weeks of trading with her thanks Stacie.
I'm surprise to see others who trade with Mrs Stacie, i am currently on my 5th trade with her and my portfolio has grown tremendously
I thank you for the level-headed financial advice. I started my investment with $3,345 in just a week of trading with her I’ve gotten $7,939 in my portfolio. Thank you Ma'am
Pretty good. please how can i reach this Mrs Stacie? i want to invest i'm in Taiwan
@@anitalawrence2668 REACH HER ON HER TELEGRAM
This content is rich with groundbreaking ideas. I came across a book with like themes that shifted my viewpoint. "Mastering Money Mindfulness" by Benjamin Hawk
Malayali undoo
Yes
Shit explaination starts at 2:50
if you are profitable trader why the fuck do you sell your strategy and membership any profitable trader who makes millions havent sell any fucking thing about teaching stuff
Thanks for your kind feedback 😊
😂@@FinancialWisdom
How's your investing championship going now