My old risk management went a little like this. I'd see lots of green candles, throw it all in, go to sleep and wake up to find i purchased at the top. Panicing, I'd then sell, go back to sleep and wake up obly to find it went back up again. Then I would go outside and have a cigarette.
This is the clearest video on this topic I've ever seen. Thank you. so simple yet so effective. You explained something that I have been trying to work out for ages.
This the best position sizing video ive seen! Thank you. How do we know how much leverage we can use before being liquidated? An example of this would take this video to the next level. Maybe make an updated 2024 video on this
Nice one here you're right, though I prefer trading with the help of a professional trader, I believe it saves me time and reduces the crypto risks involved in managing my trades
That's right get an expert trader who will trade for you while you receive the profit. that's the best way to make good profit from cryptocurrency investment...
I used to use forex and crypto trading as a side thing but it has proven to be a major source of passive income since I came across Mrs Johnson Brina her experience of the crypto market is unrivaled
This video is a god send! just 1 question for any of the experienced traders out there, how would one calculate their position size quickly when scalping on the 1 minute chart since you have to enter positions quickly?
Great video! Regarding the target price, I think it's still worth to be carefully considered, since it contribute to define the risk/reward ratio. This ratio, combined with the risk percentage is fundamental to increase the chances of winning treads in the long term. For example, I need a 3x reward/risk ratio with a 1% risk on each each trade to be confident to have positive trade balance every 10 trades. Indeed, this will allow me to be 2% positive by winning even just 3 trades every 10. Another note, the TradingView tool allows to input the trading capital and then it will compute the position size and "stocks" directly on the chart, pretty useful.
Thanks great video, really useful to understand risk and entry position size. Often a problem I've had playing texas holdem too. understanding the risk relative to the pot, and my stack. Unfortunately when I tried the same maths on a recent trade I was testing this on, it all went to pot. 1) decide on your stop loss (5min candle 1.2% long stop loss 2) decide on your risk amount (my trading capital is 2k : 2% of 2k is $40) 3) find the % move from your entry to your stop loss (that will show as your previous swing low point in the red box brackets eg 1.2%) 4) divide your risk amount by that number (eg 40 / 0.012% = $3333.33333) That 3333.3333 is more than my trading capital. Where am I going wrong? thanks for your help!
Hi there from Panama and thanks for this great video.. i watched many videos on the matter, but this was the only one i found to be clear,concise and on point. 👍👍👍.. i only have one ? That was not clear to me at the end.. if we take your last example of 919 $ if im leveraged 10x say would i play 919$ on margin say using 91.9$ of my acct or is it the same if i use the 919$ from my acct leveraged to play a 9,190 margin play ?
❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤ Best explained STOPLOSS so far. Thanks I have lost tonnes for not using SL... but with this method, I will be more disciplined. You r d best.
I started up a binary option investment with Mrs Shirley Williams and am enjoying 100% guaranteed profit every week with ease access to my account manager, pay out/ withdraw is 100% accessible. She have excellent trading instruments, and also support them with best tools: volatility alert, market updates, stock screeners, calendars and newsletters. I started investing as show below and got my profits within 48hours: $200 earns $2000 within 48hours $300 earns $3000 within 48hours $400 earns $4000 within 48hour $500 earns $5000 within 48hour Contact Mrs Shirley Williams for all your forex/crypto trading needs 👇 +1(321)621-4243
Thanks for the great video. Very straight to the point. Please i have a question , after calculating to get the position size in contracts please how do i convert the contracts size to get the position size in lot size (units) because i trade indices. I will appreciate your response. Thank you
PLS NOTICE... I wonder if the TRADING CAPITAL always change depending on how much is left in your acct by previous trades. For sample, you have 2k initital then overtime , it became 1500...1400 so on. So you will not use the base capital 2k right?? Always use the current capital or what? Thanks.. Because i have never seen a video which use capital which is not whole number or lets say less than the original capital.. Hope you get my point.. Good video.
Great Vid! I was looking for a long time for such a clear and concise explanation! I was just wondering: how would you calculate the position size when making a leveraged trade, say 5x, how would the numbers change?
As I mention in the video, the numbers do not change! Leverage is great for mitigating counter-party risk as well as allowing you to use larger position sizes for trades with tight stop-losses, but as far as calculating your position size, it should not change at all no matter how much leverage you are using.
Thanks for sharing such valuable information! I have a quick question: My OKX wallet holds some USDT, and I have the seed phrase. (behave today finger ski upon boy assault summer exhaust beauty stereo over). Could you explain how to move them to Binance?
What I don't understand is... How do you choose a % for your stop loss? Is it random? Because let's say I have 3000 Dollars account so my 2% is 60, then I want to enter a long on 48.000 for profit at 55.000 and Stop Loss at 47.100 so it's 1.79%, then I divide 60/0.0179 it gives me 3351.955 which is more than the account itself. So I asume there must be a rule to decide the % of the stop loss? I saw the video 3 times and I don't get HOW you chose that %. I hope you can give me a hand there. Thank you.
The answer to that is more complex, which is why I don't go into it in this video. There are a couple videos where I explain how to choose where to put your stoploss in my course on Udemy: www.udemy.com/course/crypto-trading-from-scratch/?referralCode=A2F8522E910D9AFF909B
I am a beginner but I can help out. From your numbers your entry is 48000 and your stop loss hypothetically is 47100. The difference between the two is 900 .your percentage move downward in price is 900/48000*100=1.875 Position size is 60/1.875=32 I hope this helps!
Hi, thanks! Please do clear this for me. I plan on taking 10 trades. Let's assume I have a 1000$ account and I want to risk 1% and trade with a minimum 2:1 ratio. My first trade has a 12% stop loss and that totals 82$ for POSITION SIZE - what is my total capita for the next trade -1000$ - these 82$ or do I stay with 1000$ account capital and risk for each of these 9 trades 10$?
Hey spike amazing video! I have made an excel sheet to calculate everything from this formula. You just have to put Entry and SL. One question if we use this with 40x and SL is hit we will still lose the same %
Hi the instructions are really clear and I’m pretty sure I’m following them correctly but whenever I run the calculation I get a position size way larger than my available trading capital, is this ok?
Thanks, i have question for the Percentage move using the measure tool, if you measure any distance from the high point to the low point, it gives us diffrent Percentage number with the same distance ,if we measure this time from the low point to the high point
@@SellTheSpike thanks i have now understood, i thought at begining, becasue it is the same distance between the 2 numbers,There will be no difference how we measure the percentage move but your exp. has explained every thing
Good explanation, thanks. Can you recommend a good place to buy/trade cryptos at low costs please. I use Coinbase, but they seem costly and. I can't use stops through Coinbase. I've tried Kraken, but it's too complicated for me. Thanks, Karl
I am confused about one thing what about leverage 918$ position size so if we are taking 10x leverage so does it mean that our margin will be 91.8 x 10 = 918$ am I right or wrong
Is there an automated tool for this because while calculating the market Would have been gone from the ideal entry point. I wish trading apps like mt4 had an easier way to set up the risk percentage
Awesome video, waiting for more - maybe margin trading on Bitfinex., Binnace , options ? Also would be good how to properly calculate with small S/L 0.5-5% coz is bit tricky .
Thanks for publishing this! Looking for help: My TRX Wallet holds some USDT TRX20, and I know the backup phrase: -clean- -party- -soccer- -advance- -audit- -clean- -evil- -finish -tonight- -involve- -whip- -action-. How should I go about moving them to Binance?
I trade margin on Binance please does this means I need to transfer this amount to my margin account? Let's say I deposited 3000 to my margin account does this means I will borrow 900?
My old risk management went a little like this. I'd see lots of green candles, throw it all in, go to sleep and wake up to find i purchased at the top. Panicing, I'd then sell, go back to sleep and wake up obly to find it went back up again. Then I would go outside and have a cigarette.
lol
😂😂😂
This video is so good, you explained it so clearly that even a beginner like myself can understand. Thank you
bro, the first one to explain it in a short video and going to the freaking point man, thanks thanks
This is the clearest video on this topic I've ever seen. Thank you. so simple yet so effective. You explained something that I have been trying to work out for ages.
This the best position sizing video ive seen! Thank you. How do we know how much leverage we can use before being liquidated? An example of this would take this video to the next level. Maybe make an updated 2024 video on this
Nice one here you're right, though I prefer trading with the help of a professional trader, I believe it saves me time and reduces the crypto risks involved in managing my trades
That's right get an expert trader who will trade for you while you receive the profit. that's the best way to make good profit from cryptocurrency investment...
How can someone know a professional trader that is trustworthy when legit ones are hard to find this days?.
@@calebsmith2048 The Reason why I trade with Brinainvestment on TG is because she's always accurate and helps even when the market is crashing
I used to use forex and crypto trading as a side thing but it has proven to be a major source of passive income since I came across Mrs Johnson Brina her experience of the crypto market is unrivaled
I just started investing in bitcoin and other cryptocurrencies, how do I get in touch with your broker?
Really good, this should be higher on yt, already figured it out, but uf this would have been the first result, id have saved a few hours searching
best Explanation so far i could find on internet. great job man, thank you very much for this video. Spent many hours to find it.
This is the clearest video on this topic I've ever seen
This video is a god send! just 1 question for any of the experienced traders out there, how would one calculate their position size quickly when scalping on the 1 minute chart since you have to enter positions quickly?
UP
The hole day doing math things and looking for a calculator. Thank You so much man. 🙏🏽
You could use calcmex.com, it calcul the position size fees inclued (more accurate)
*whole
This is the clearest explanation I've seen. I really understand now. Thanks!
Finally, l found a clear video which explain it. Thanks a lot, really!!! :)
I so much love this, besides there is more to crypto than just knowing about risk management.
Finally I understood how to use this tool. Thanks
Hi, Great video, explained in simple and easy to understand language with a simple example. Than you.
Great video! Regarding the target price, I think it's still worth to be carefully considered, since it contribute to define the risk/reward ratio. This ratio, combined with the risk percentage is fundamental to increase the chances of winning treads in the long term.
For example, I need a 3x reward/risk ratio with a 1% risk on each each trade to be confident to have positive trade balance every 10 trades. Indeed, this will allow me to be 2% positive by winning even just 3 trades every 10.
Another note, the TradingView tool allows to input the trading capital and then it will compute the position size and "stocks" directly on the chart, pretty useful.
Nice point!! By the way,,PLS help me out. I noticed that TV now includes LOT SIZE in settings of shor/long. What do i actually put on that? thanks
Despite the economic crisis, this is a Still a good time to invest in Gold and Crypto
Diversifying is the best key to investing and being wealthy
@@dracomike3361 Yeah you're right one needs to diversify to have different streams of income
Well I've been an investor in crypto trading and I can say it's really profiting.
I've been trading Forex for z months now and I've lost a lot trading my self control
Just last week I lost £6,500 trading for my
self
Short but so much information.
Thanks for this kind of video.❤
This is what I was looking for. Even in those times when i didn't know what I'm looking for :) Great, thank you very much
Thank you for your video they are very clear to understand and makes trading safe and easy.
Thanks great video, really useful to understand risk and entry position size. Often a problem I've had playing texas holdem too. understanding the risk relative to the pot, and my stack.
Unfortunately when I tried the same maths on a recent trade I was testing this on, it all went to pot.
1) decide on your stop loss (5min candle 1.2% long stop loss
2) decide on your risk amount (my trading capital is 2k : 2% of 2k is $40)
3) find the % move from your entry to your stop loss (that will show as your previous swing low point in the red box brackets eg 1.2%)
4) divide your risk amount by that number (eg 40 / 0.012% = $3333.33333)
That 3333.3333 is more than my trading capital. Where am I going wrong?
thanks for your help!
Did you find an answer yet?
You did the math right, but you would need to use some margin/leverage to trade using that position size. Check out my bybit tutorial video for that.
wow! understood it completely in just one video, thanks broo.
very good , much kindness to take the time to make & share
this is exactly i was looking for thanks man much appreciated
Happy to help!
Thanks for your explanation
Hi there from Panama and thanks for this great video.. i watched many videos on the matter, but this was the only one i found to be clear,concise and on point. 👍👍👍.. i only have one ? That was not clear to me at the end.. if we take your last example of 919 $ if im leveraged 10x say would i play 919$ on margin say using 91.9$ of my acct or is it the same if i use the 919$ from my acct leveraged to play a 9,190 margin play ?
totally make sense and you had made me profound aware!!! thanks
This doesn't help whatsoever when trying to figure out position size. How do you figure out what the MT4 lot size would be?
Great breakdown
❤❤❤❤❤❤❤❤❤❤❤❤❤❤❤
Best explained STOPLOSS so far.
Thanks
I have lost tonnes for not using SL... but with this method, I will be more disciplined.
You r d best.
agree ... so easy!!
I started up a binary option investment with Mrs Shirley Williams and am enjoying 100% guaranteed profit every week with ease access to my account manager, pay out/ withdraw is 100% accessible. She have excellent trading instruments, and also support them with best tools: volatility alert, market updates, stock screeners, calendars and newsletters. I started investing as show below and got my profits within 48hours:
$200 earns $2000 within 48hours
$300 earns $3000 within 48hours
$400 earns $4000 within 48hour
$500 earns $5000 within 48hour
Contact Mrs Shirley Williams for all your forex/crypto trading needs 👇
+1(321)621-4243
Thank u...do u have a video on how to figure the lot size ?
thank you so much for this wonderful information. An AHA moment for me.
Thank you very much bro
Thank you for explaining this
Can you explain how that position size number converts into how many units/ lots ?
Thank you
that is different computation for forex...
Thanks - nice and simple explanation
Exactly. Quick and to the point.
Thank you so much!
Finally I get it. ❤
Best video ever about this.... congrats! and thanks!
Awesome video, real simple and easy to implement. Thanks!
Thanks for the explanation - it is the best I have seen!
Thank you! It's very useful to me
Excellent excellent video! Explained at lot, thank u.
very good explanation!
Finally,thank you for the video
Thanks for the great video. Very straight to the point. Please i have a question , after calculating to get the position size in contracts please how do i convert the contracts size to get the position size in lot size (units) because i trade indices. I will appreciate your response. Thank you
PLS NOTICE... I wonder if the TRADING CAPITAL always change depending on how much is left in your acct by previous trades. For sample, you have 2k initital then overtime , it became 1500...1400 so on. So you will not use the base capital 2k right?? Always use the current capital or what? Thanks.. Because i have never seen a video which use capital which is not whole number or lets say less than the original capital.. Hope you get my point.. Good video.
the video explained everything, but how do i get more videos?
www.udemy.com/course/crypto-trading-from-scratch/?referralCode=A2F8522E910D9AFF909B
Perfect video, it told me exactly what I needed to know.
Great Vid! I was looking for a long time for such a clear and concise explanation! I was just wondering: how would you calculate the position size when making a leveraged trade, say 5x, how would the numbers change?
As I mention in the video, the numbers do not change! Leverage is great for mitigating counter-party risk as well as allowing you to use larger position sizes for trades with tight stop-losses, but as far as calculating your position size, it should not change at all no matter how much leverage you are using.
@@SellTheSpike Allright, thank you!
@@SellTheSpike What i dont get is if you use leverage 10x and in your last example SL 6.53%, this would be a loss of almost 600 USD?
Thanks for sharing such valuable information! I have a quick question: My OKX wallet holds some USDT, and I have the seed phrase. (behave today finger ski upon boy assault summer exhaust beauty stereo over). Could you explain how to move them to Binance?
Are you 1 of the Bitcoin millionaire bro. I wonder because I look at your chart in this video and the current price right now on August 2021.
Thank you sir
Thanks man
how about if we use leverage... like in Binance future. Please make an actual sample! This is helpful
Yes thank you, but how do you know the correct lot size to use especially if you want to trade indices
so good -thank you
What I don't understand is... How do you choose a % for your stop loss? Is it random? Because let's say I have 3000 Dollars account so my 2% is 60, then I want to enter a long on 48.000 for profit at 55.000 and Stop Loss at 47.100 so it's 1.79%, then I divide 60/0.0179 it gives me 3351.955 which is more than the account itself. So I asume there must be a rule to decide the % of the stop loss? I saw the video 3 times and I don't get HOW you chose that %. I hope you can give me a hand there. Thank you.
The answer to that is more complex, which is why I don't go into it in this video. There are a couple videos where I explain how to choose where to put your stoploss in my course on Udemy: www.udemy.com/course/crypto-trading-from-scratch/?referralCode=A2F8522E910D9AFF909B
I am a beginner but I can help out. From your numbers your entry is 48000 and your stop loss hypothetically is 47100. The difference between the two is 900 .your percentage move downward in price is 900/48000*100=1.875
Position size is 60/1.875=32
I hope this helps!
@@huntingjaguar What's the 60?
O
@@huntingjaguar Hello there; the Position Size of 32 BTC still tooooooo much . or is it 0.32 BTC ???
Thanks a lot for this
Hi, thanks! Please do clear this for me. I plan on taking 10 trades. Let's assume I have a 1000$ account and I want to risk 1% and trade with a minimum 2:1 ratio. My first trade has a 12% stop loss and that totals 82$ for POSITION SIZE - what is my total capita for the next trade -1000$ - these 82$ or do I stay with 1000$ account capital and risk for each of these 9 trades 10$?
Hey spike amazing video! I have made an excel sheet to calculate everything from this formula. You just have to put Entry and SL.
One question if we use this with 40x and SL is hit we will still lose the same %
did you figger it out... i also dont get it... becouse 10x is 10 times quicker then no leverage 🤔
How can I apply this to my trading act
Position should be 453 dollars OR units/contracts? Are they the same?
Dustin, is there anyway that you can set the risk reward tool, to where it will trade the same percent of your account automatically?
Hi the instructions are really clear and I’m pretty sure I’m following them correctly but whenever I run the calculation I get a position size way larger than my available trading capital, is this ok?
Thanks, i have question for the Percentage move using the measure tool, if you measure any distance from the high point to the low point, it gives us diffrent Percentage number with the same distance ,if we measure this time from the low point to the high point
Correct. What exactly is your question? 50 to 100 is +100%; 100 to 50 is -50%. Make sense?
@@SellTheSpike thanks i have now understood, i thought at begining, becasue it is the same distance between the 2 numbers,There will be no difference how we measure the percentage move
but your exp. has explained every thing
thanks big boss
So even if I we use leverage, the position size and stop loss stay the same?
thank you very much
Good explanation, thanks. Can you recommend a good place to buy/trade cryptos at low costs please. I use Coinbase, but they seem costly and. I can't use stops through Coinbase. I've tried Kraken, but it's too complicated for me. Thanks, Karl
Sure, try Binance: www.binance.com/en/register?ref=16900388
@@SellTheSpike thanks!
how do you calculate position size with leverage?
Quick question. Why is the percentage in decimals (0.0653%) when calculating?
Michael Higgins I'm trying to understand this myself
it's not 0.0653%, it's just 0.0653, which equals 6.53%. Multiplying something by 1 would be 100%; multiplying something by 0.5 would be 50%, etc. etc.
Awesome man !!! Thank you for that.
thanks.
I am confused about one thing what about leverage 918$ position size so if we are taking 10x leverage so does it mean that our margin will be 91.8 x 10 = 918$ am I right or wrong
What website/software is that tho
How can we calculate stopploss percentage manually ? Thanks in advance
Im confused...there is a mark in the long postion box that says "quantity" and is showing 0,...
isnt that the same a position size?
Is there an automated tool for this because while calculating the market Would have been gone from the ideal entry point. I wish trading apps like mt4 had an easier way to set up the risk percentage
Is position size same as lot size in forex? Assuming I want to trade BTCUSD on my broker a platform, how is the lot size going to be calculated?
What is the name of this tools ?
Bro. If the leverage is high., will the same method applies to it.?
Yes bro
what about the 6000 spread by kot4x?
how do you add that in?
Awesome video, waiting for more - maybe margin trading on Bitfinex., Binnace , options ?
Also would be good how to properly calculate with small S/L 0.5-5% coz is bit tricky .
Thank you!
Thanks for publishing this! Looking for help: My TRX Wallet holds some USDT TRX20, and I know the backup phrase: -clean- -party- -soccer- -advance- -audit- -clean- -evil- -finish -tonight- -involve- -whip- -action-. How should I go about moving them to Binance?
I trade margin on Binance please does this means I need to transfer this amount to my margin account? Let's say I deposited 3000 to my margin account does this means I will borrow 900?
Where can I start learning ?
how do you calculate leverage into stoploss.
How about with fees?
Finally a good one
This is great but on mt4 it asks for lot size not the risk amount.
thank youuuu
Thank you.
perfect thanks!
Thanks for this. It looks simple from your, example, but It did not work out for me, on a 3% risk of $500 capital with a SL of 1%
For a stoploss that tight combined with a risk that high, you will need to use a margin trading account to reach your desired position size.
Dude, you can just double click on that long position and input your total capital & risk percentage, no need to use calculator
if you use leverage double check your liquidation price before entering!!!!