2% Risk Management Rule For Trading...
ฝัง
- เผยแพร่เมื่อ 3 ต.ค. 2020
- #trading #stocks #riskmanagement
A lot of traders struggle to keep their profits because they don't have proper risk management. Learning how to properly size positions is a very important skill to learn when attempting to be a profitable trader in 2023 and to consistently make money from home thru trading. Invest your time and money into learning these techniques to help make your trading journey a lot easier.
Instagram: / umarashraf
Trading Instagram: / umarashraftrades
Download our Position Sizing Calculator for free: stockmarketlab69633.ac-page.c...
Visit our Website: stockmarketlab.com
*DISCLAIMER* I am not a financial advisor and anything that I say on this TH-cam channel should not be seen as financial advice. I am only sharing my biased opinion based off of speculation and my personal experience. You should always understand that with investing there is always risk. You should always do your own research before making any investment.
That is a brilliant intro: It's not about how much money you make; it's about how much money you keep.
Thank you for taking your time telling us the 2% down side, I think you are definitely a very good person 🎉
Most elaborate video I've seen so far on risk management. Thanks for this great video.
you are legit the only person who's helpful for me to watch
Single Handley the best piece of information on day trading you can find on TH-cam
Finally, a school lesson that i have genuine interest in and actually want to learn!!
pop quiz in 5 mins
I am excited to have bumped into your videos today, one take home from this, focus on the risk side the reward will take care of itself
It is obvious that Stop Losing is important, but your presentation makes it more interesting, so go ahead and well down.
Thank you Umar, Amazing explain!!
I wish I watch your video 3 days ago. I lost $2600 in two days because I wasn't following my exit strategy.
You guide every one with honesty. I appreciate it. Thanks bro
Perfectly described, thank you Umar.
This video is golden, thank you 🙏
I'm a newbie trader and obviously am gathering knowledge before taking the plunge. Never knew about the 2% rule, so thanks.
Hi. I'm also looking to get started.
Very clear and concise explanations
Detailed video, thank you❤
Eye opener for beginners wish i seen it 2year ago would save a lot as learning alot thanks bro god bless
I risk 3% and aim for 6-9% ….following these rules will keep your account alive for 20 losses in a row
You are a good man Umar, you make the well.
Thank you.
Appreciate... I have a 2% rule and here is how mine works for me...
First I study the market, update demand and supply zones, (avoiding trading in major financial event news day until the news is out), I open multiple small leveraged trades and the sum of all open trades does not to exceed 2% of my total capital out which mostly they end in profit and rarely any one hits my stop loss and even if they hit stop loss I do get back certain portion of my trade in to my capital..
I believe gradual growth is better than blind greedy trades...
Please could you help me
@@saimahussain4576 sure... what help do you need...
This is the first video I've watched that explains perfectly Risk Management. some adults need to be explained like babies. THANK YOU
Loud and clear umar thanks,
Great video !
Thank you Umar🙌🏻
Great clip. Thanks.
Not to mention that you explain easier? though in SA, i like you, your likeable person. keep it up.
thank you brother !!!
Thans again bro Umar for this learning video.. Keep it up
This is the video I've waiting for! Thank you immensely, Umar!
TH-cam is a place where gems can be found
Very good advice I hope to see all your videos
Simply great video.
Grear Explanation sir, really Loved it
very good and easy to learn. thank you
This is formation is money. I keep losing a lot of money. Had I used the 2% rule, my account would be green right now, I would be winning more than I lose. Right now, my losses are bigger than my gains, because I have no risk management. I loss $6500 in a week and a half, had I practiced risk management and cut the loss at 2% each day, I would actually be up $100 from my two green days, but instead I'm down $6500, because I had no risk management. I've added it to my rules now and will follow it to a T. I care more about keeping my capital. My gains will come as long as i stick to my rules, but in order for me to stay in the game...i need to be strict with the risk management. I'm out if I'm down 2%, whether it's one candle, two candles, or 3 candles. As soon as I'm down 2%, I'm out.
Excellent explain and teach Risk Management.
good video, i started with 0.2% per trade for some months and slowly increasing my strategy working and now i risk 3% per trade to start compound my capital till 100-250k then i can quit my job. im also adding weekly money to my account each sunday to grow it consistently
Thank you ...🙏
Great Video...Very Impressive...
Asalmoalikum Umar bhi u made an incredible video always use proper risk good suggestion
May Allah reward you to the fullest
Am I wrong but I thought it is forbidden for Muslims to gamble ?
This video really helped thanks a lot 🎉
Thanks man, that helped me a lot. Great video!
thanks Omar
Thanks mate 🙏🏼❤️
Great video, trading come with a lot of
benefits And I have just bought my first
house through it. As a beginner I was
scared of loosing my savings but I'm glad
I took the bold step that is now favoring
Congratulations.
I will love to be your friend dear as well
as sharing some i dears which you're benefiting
Okay but is not luck, is all about having good investment plans most of all trading with a trust worthy expert.
Watching professional trading videos and most especially connecting with the right person the digital world is full of in unreal people I met some of them during my success journey. I felt same way when I started especially when you use demo account you might be winning but when you put in real money you start losing I understand and I pass through it all. I’m very happy I’m profitable now
Hey how good are your earnings I will like
to get some insights into trading thank
you.
Currently i can attest to the fact that I
make $18,300 weekly through trading
which is more better then my monthly
salary job. trading becomes my passive
income.
Your are a great teacher. Thanks so much for this information Umar Ashraf...Take care
Hello @UmarAshraf28 did you ever make the video about how to use stops? About Where to place stops?
great video. break right down
Thank YOu Umar
Informative
Assalamualaikum ya akhi. Anta mumtaz. Ana mohamad min malaysia. JazakaAllah khair
Superb sir
I also want to add to add that risking 2% on an intra-day setup is far riskier than risking 2% on a daily-chart setup. These look same on excel sheet but they are not same. Also it is important to use wide stop loss as they have less probability of getting hit. But you will have to reduce your position size.
Wide and very wide stop losses also get hit....ask me how I know.
@@RotterStudios I can take a guess ... but how do you know? Are the magic words "market makers" and " with their own trading desk"
Depends on your entry point. Get in at the right price and your stop loss can be more tight.
I been trying to figure this out for the longest !!!! Lol Thanks Umar🙏🏼
Just subscribed after 2nd vid. Thank you for the mental restructuring!!!
Where can I find the video on stop loss?
Always providing value! Thank you
Thank you
Brilliant Lesson learnt, I needed this. Cheers
Thanks you
Useful
This video is : THE VIDEO that I was looking for. Thanks a bunch.
thanks you
thank u sir
Wish I watched this great content before making errors. Never too late though thanks for this great content!
Do you have risk management calculator of umar Ashraf please send me
Dude this explanation is spot on! Gonna watch the stoploss and probably some more videos. Really great!
For me if the account is big enough and depends on how confident i am on the setup i will risk from 0.5% to 1% and on confirmation that setup is valid i can add up.
For a smaller account bellow 10k i am willing to do a 4% on a high quality setup 2% on entry and add up to 2% when my position is in profit and i am extra confident.
Because 0.5% 1.3 rrr on 200k is enough profit for me but on 10k the same risk and reward its not that tasty. 200k 0.5% is 1000. and 4% on 10k is 400 on the the reasons the bigger the account the better.
I risk 10% of my total account :-) that's how much I'm comfortable with.
protect the down side is my new life motto
So basically the 2% rule is if you have 2k and 2% of that is 40 so if the stock is 10 and the stop loss is at .50 that would be 80 shares. So in total you would need to spend 800 on shares in order to lose 40 from that 800.
Does and know how much you should be withdrawing on a 2:1 trade per trade realistically?
I do 0.5% and only trade 1:3 risk to reward or higher
Is it okay to have multiple trades open at the same time at 2% risk for swing trading or would that let you get potentially draw down too much from temporary overall market conditions ???
The only video in the top search results that ACTUALLY doves into risk management. The other ones just explain why it’s important without ever giving examples or pop out a chart with no way of telling what the position was. Excellent content.
Hi Umar like you said we need to buy 40 shares with a $2000 capotal if we are risking 2%.But waht if the premium is much higher and we are not able to buy 40 shares in $2000?
Lets say on a USD 2000 account, What if I lost the first trade and equity goes to 1860, so the question is what would be my next max stop loss would it be 37.2 this time and so on and vice versa if I won the first trade. Just tell me what do you do with your trades
Are u teaching options here?
Sir i am from India
First time i am watching your video
Wonderful teaching sir
Best way to protect your money first
RRR is important in our trading
Risk reward ratio & stop lose should be in your disciplines
Thanks sir
@Umar Ashraf is this real channel owner r fake man this commented person
Unlikely unless you keep your eye on it every min. 5% stop loss is more realistic as the time you react to time of actual trade is volume dependent / whales can move more than 2% per 30 sec.
I'm a high-position trader. Lots of research -- minimum speculation. 1% trailing stop loss. In my first 5 months trading I made 238K. "Trading" is my world!
@officialumarAshraf009 Been beat up a few times since -- as you know: there are no short-cuts.
How many positions do you keep at once? if you have 5 positions open, and you lose them all, you lose 10 per cent. Do you keep more positions open if you trade with the 1 per cent instead?
I will be back trading full throttle in a few months ;)
How did it go?
wonderful strategy
Where are you from
Rainititan@gmail.com))
I`ve learnt a lot here, Warren Buffet once said " if you don`t find a way to make money while you sleep you will work until you die, now i understand why?
That was deep! Hardcore fan of Warren Buffet. I got to start investing in mutual funds because of him and i haven`t regretted it
I wish this was taught in college, and i am just trying research, learn how to trade stocks and options
This is true
But its never too late though its just to make move
Financial education should be taught in every level of education but because of the misplaced priorities we have in the system, the average man is suffering it
Exactly! its never too late to start. That`s why i am watching videos on how to trade options and equity
Nice information man keep sharing knowledge with us lots of love from India ♥️♥️
I take 3% risk per trade while selling options.
christ, wish i'd seen this a week earlier - got liquidated for 65k the other day. gulp
is there any way to ask you a question directly ?
Im an ict trader trading only eu 2% is a sweet spot to me
hmm.. correct me if im wrong please. A price going from $10 to $9 is a difference of 10%... Would you suggest or recommend using a strategy to look at drawdown from the perspective of the price of the Instrument itself going 1% down and going ALL in at $2000 to buy 200 shares. This in essence would mean they would have to sell when the price goes to $9.90 compared to $9?
Volatility will be too large to have a $9.90 stop loss, and you'll just get stopped out during normal daily price action. You will lose 9 out of 10 of those trades, meaning you must make 9*$20 (1% of your bankroll each time) in the final trade just to break even. You want to make the trade on the stock with a $9 SL, which doesn't make 10% drawdowns very often so that you win smaller, but way more often.
day trading position size between 0.25 and 0.5% per trade per day
Is 2% a day trading metric? If it is a long term account, volatility is a lot higher and 2% is too tight.
Umar this was an excellent video. Please do keep more coming. A SL video would be greatly appreciated.
How will you calculate with leverages? (1:30). on the same example of two thousand?
leverage just means how many trades you can open risking 2% at one time. that is independent of what hes talking about
Great info. Just subbed.
what is your strategy winning % and what is your average reward per trade?
please help 😂
Let’s say my account balance is 1000 and I use 2 % $20 and keep the 980 separate can I use 50x leverage on that $20? And my stop loss is liquidation? Coz I only lose $20 if it’s liquidated does that work?
So how would I implement this with options of premiums are like 1.90 but I have an account with $1000 to start off? Man, grinding a small account seems like it won’t be easy, especially with those tight stops.
Great video brother 🔥🔥💯💯