At the moment we are approaching the end of the second phase, the so-called upswing or early phase of the bull market.

In this post you will learn how to:

- Navigate each phase of a bull market

- Maximize your income

- Avoid the most common pitfalls.

Phase 1: accumulation

This is where we were for quite a long time.

We have witnessed many scary events such as the Luna crash, FTX crash, Binance scam and USDT unpegging.

However, it was during these periods that the major players accumulated significant positions.

No new liquidity is entering the cryptocurrency.

No volatility, no narratives, just depression among everyone.

The price action in the market was dull and unstable, which led to many weak hands exiting.

But now we see that this was only a preparatory phase.

What happened after all this?

Bitcoin soared to its all-time high and even surpassed it.

Important tips at this stage

- Avoid over-trading:

Don't sabotage yourself by taking rash positions on bad ideas out of boredom. Focus on survival first and the winnings will come later. Don't play a bad hand just because you're bored - wait for a good one.

— Build your position only in high-quality projects:

Look for projects that can thrive in the upcoming bull market. Focus on those with market fit, competitive advantages, active development teams, solid roadmaps, and strong financials.

- Keep capital in reserve:

The appeal of investing in undervalued legacy projects is strong, especially when you consider that their values ​​have fallen 90% from their peak. However, consider this: Chances are the next cycle's top performers haven't emerged yet. people prefer to be in a completely new project than to revive an old one.

- Fill in knowledge gaps:

This phase is amazing for learning, not for a bull market. A bull market is about taking advantage of existing opportunities. use this period to deepen your understanding. You don't want to be caught off guard by a new protocol during a bull market and have to learn the ropes.

Phase 2: Acceleration (beginning of the bull market)

This phase is characterized by rising prices, which leads bears to become distrustful.

Unbelief can be detrimental.

Bear market PTSD is holding you back from success.

What drives a bull market?

- Innovation and hype:

last cycle we saw DeFi and artificial intelligence come onto the scene. What will catch our attention next? GambleFi? NFT revival? maybe DePIN? RWA?

There will likely be areas that we haven't thought of yet.

- Economic changes:

When the Fed finally cuts interest rates, it will open the floodgates to more liquidity in the market.

— Updates in legislation:

Clearer, cryptocurrency-friendly regulation from the US and other countries could be a significant catalyst for the growth of cryptocurrencies.

— Reducing barriers:

Improved wallets, easier account setup, and user-friendly apps can have a huge positive impact on attracting new users to our space.

Simply put, one major event can cause a domino effect.

This gradually spreads throughout their surroundings, repeating the cycle over and over again.

Phase 3: Peak

It is at this time that “ordinary” people begin to flock to the market, the retail.

That's when even your grandma will want to buy ETH and put it on a card.

The funny thing is that people enter phase 3 of 4, but in their minds they think they are entering phase 2 of 5.

Bull markets are self-reinforcing.

What does it mean?

When prices rise, it creates FOMO, creating a positive loop that pushes prices even higher.

In the end everything goes up.

Just look at the charts for the 2020-2021 cycle.

Investing just $1,000 in shitcoin could potentially change your life.

FOMO and euphoria takes effect.

It seems that the festival will last forever, and it is at this moment that all rational thoughts recede into the background.

People quit their jobs to become full-time crypto degenerates.

Some are even selling their homes to invest in crypto assets.

But by thinking this way, they may be making their biggest mistake, because the peak may be very close.

The main question you probably have is: can you identify the top?

Yes you can try. Here are some signs:

- Everyone starts boasting about their cryptocurrency income.

— Mainstream media are starting to cover cryptocurrencies widely.

— Cryptocurrency YouTubers are starting to upload more than three videos per day.

— Popular brands are starting to mention cryptocurrency just for the hype.

- Celebrities get paid through sponsorships or launch their tokens/NFTs.

Remember, everyone will try to convince you that this time is different.

You have to fight your instinct.

The main thing at this stage is to focus on take profit levels.

- The party won't last forever.

— Take a few chips from the table while you can.

— your future-self hopes that you won't be too greedy.

If you never take profits, the market will take them back and teach you a very expensive lesson.

Phase 4: Decline

"What goes up, comes down."

The bullish surge will reach its zenith and speculation will begin - was this a real peak, or are we at the beginning of a protracted "super cycle"?

People will tell you that this time is different and that we will all get rich.

Be wary of super cycle talk, Bitcoin extension theories, and questionable charts.

Remember that everyone has a financial stake in keeping the party going.

They need to retain the audience for as long as possible.

And everything starts again...

The information on this resource is addressed to an unlimited circle of persons, and is not an individual recommendation; It is exclusively informational and analytical in nature for our team own use, and should not be considered as a proposal or recommendation for the investment, purchase, sale of any asset, trading operations on financial instruments. It's your own responsibility what usage you will make about it. The views expressed reflect only the author’s exclusively personal view.

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Why do most traders fail despite positive win rates? The answer can be found in human psychology. How do we tame the inner beast? By managing risk properly.

This post is a brief introduction to the concept of risk management in trading. It is intended to provide insight to help you avoid the common pitfalls that have prevented traders the majority of traders from being profitable in the long run.

Risk Management

Many experienced traders say that profitable trading is not only about finding the best trades, but also about proper Risk Management. Some even go so far to say that profitable trading is only about Risk Management. Some even call it the holy grail.

In my experience, you can't be a good trader without a proper RIsk Management.

Let's start with the most used risk management terms:

• Entry = price at which your order is executed
• Position Size = number of coins you buy or sell
• Capital = your total account balance
• Stop Loss = order to close a losing position and prevent further losses
• Risk Amount = Capital you lose in a trade if your stop loss gets hit. If you want to maximum risk 1% of your capital in a trade, this is 0.01 x Capital amount.

Stop Loss

Often new traders overestimate the importance of their trading methos at the expense of risk management. But your trading method can only bring you so far. As we know the market can do anything at any time. There is always the possibility of a news event we couldn't predict at all. No trading method can guarantee a 100% win-rate. That's why proper risk management is just as important.

Traders use stop-loss (SL) orders to exit their position when price hits a level "where the market has turned against them". SL orders help you keep your losses small. It has to be at that technical level where the reason you entered the trade is no longer valid. When entering a trade, you determine your SL location using technical analysis, like moving averages or support and resistance levels.

What is most important is that when you enter a trade, you do it for a reason. Because you saw a particular price pattern. When price action turns out to behave differently, then your reasoning to be in the trade has lost its validity. So:

When price violates the exact reason you entered the trade, is the signal to exit the trade.

Many traders use a sof SL, they first wait for price to violate the reason to be in that trade, before they place the stop order manually. I prefer to use a hard SL to determine in advance at what price the original reason to enter the trade will be violated, where you will be proven wrong, and at what price you place a SL order as soon as you enter the position.

Some traders dislike using SL mainly because although it protects you against very big losses, it can also stopotherwise profitable trades too early.

Many research papers prove that stop losses actually work:

https://www.lunduniversity.lu.se/lup/publication/1474565

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2407199

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=968338

Fake-outs

At any time, you should be aware of possible stop-hunts/ fake-outs.

Often many (mostly retail) traders get stopped out, because they think a support is a very narrow price level, and thus put their stop loss orders right below it. Big traders often use this knowledge to stop out retails traders to get the liquidity they need. This is called stop hunting. And the fake break-outs of those supports (and resistances) are called fake-outs or failure swings. That's why you should always use higher timeframes on major swing highs and lows, to confirm that it is actually a real break-out. So always look for confirmation with an actual close above/below the support or resistance level on a higher timeframe chart.

Supports and resistances are the cornerstones of all chart patterns. Most of the time supports and resistances are not exact lines, but more like zones. So even though people draw people draw them as lines, you better treat them as zones. Not everybody draws their lines at the same spot. And traders don't place their bids and asks at the same spot either. It's a typical beginner's mistake to look at s/r levels as precise lines.

Position Sizing

Risk management actually refers to a wide range of different things. Let's start with position size. Risk management and position sizing go hand in hand. Most novice traders trade with the same size in every trade they make.This eventually results in risking too much on your total account in a wrong trade, and wiping out many previous winning trades.

That's why we need to practice Money Management. We need to manage our total trading capital. Proper money management means:

Only risking a fixed percentage (of your total account) in each trade. Most professional traders only risk a maximum of 1.5% to 3% of their total capital.

Your risk (the money you could lose) in a trade is determined by where you place your stop loss. Let me explain by an example:

• Total account capital is $ 1000
• Max allowed risk amount per trade is 1.5% of capital. 0.015 x $ 1000 = 15
• Position size : 10 coins at $ 10 = $ 100
• Stop loss distance not further than: ($ 100 - $ 15) / 10 coins = $ 8.5

As you see, position size, total capital, and stop loss are all tightly connected. When you decrease the distance to the stop loss, then your allowed position size increases. Thus a tighter stop loss, gives you a bigger position size for the same risk amount. All this is to ensure that you never exceed the maximum allowed risk over your total capital in a single trade.

As a pro trader, you:

• First determine the SL level based on TA
• Next determine your position size: how many coins you can buy, based upon your total capital and the maximum allowed risk %

Another example:

• Coin price on entry: $ 10
• TA based stop loss level = $ 8
• Total account capital = $ 1000
• Max allowed risk per trade: 0.015 x $ 1000 = 15

What is the max allowed position size?

• $ 10 - $ 8 = $ 2 risk per coin
• $ 15 / $ 2 = 7.5 coins or $ 15 / 0.2 (risk % in decimals) = $ 75
• (if 7.5 coins hit SL, then the total loss is $ 15

This leads us to the following position size formula:

Nr of coins = (max allowed % risk per trade x capital) / (entry - stop loss)

Practice this a lot, for a pro trader this should be second nature. You can practice this by answering this question when planning a trade:

• What is my total account capital? $ 1000
• What % of my account do I want to risk? 2% ($ 1000 x 0.02 = $ 20)
• What is my entry price? $ 10
• What is my stop loss price? $ 8
• What is my position size? $ 20/ $ 2 = 10 coins

Leverage

Margin and leveraged trading allow you to borrow cryptocurrency with your trading capital as collateral.

You don't use your capital to trade crypto directly, but indirectly. You use your capital to borrow more cryptocurrency. So you can enter a bigger position with les money. This is called leveraged trading.

"Liquidation" happens when the losses on your position exceed the capital you used as collateral to borrow that position.

That's why you lose that capital on liquidation. So when you use ALL of your capital as collateral, then you also lose all of your capital on liquidation.

If you want to make sense of leveraged trading, then your allowed position size is indispensable information. Leveraged trading can increase your potential profit, but can also increase your losses at the same time. Thus, it influences your maximum allowed position size. Proper risk management is essential.

Example;

• What is my total account capitel? $ 100000.
• What % of my account so I want to risk? 2%. (100000 x 0.02 = $ 2000
• What is my entry price? $ 10000
• What is my stop loss price? $ 9000
• What is my position size? $ 2000/ $ 1000 = 2 BTC

Now imagine I use 2x leverage instead. When price hits my stop loss now, I lose $ 2000 (instead of 1000). Thus my max allowed position size is now $ 2000/ $ 2000 = 1 BTC

How much leverage should you use max? Please read the following on binance website: "On average, over 80% of traders use on binance futures trade at a levergae of 20x or higher (chart below). Additionaly, 20% of the users trade with 100x or more leverage. While high leverage trading is most popular among binance futures retail traders, most of its institutional traders, who contribute to 81% of the total trading volume, tend to trade at a leverage of 20x or less".

So 80% of binance futures traders use 20x or higher. These are the majority of traders, retail traders. But the biggest traded volume, 81% of total trading volume , or the institutional traders, tend to trade at 20x or less.

A 30-day average of leverage usages on binance futures:

As we will see later on, the majority of traders is not profitable in the long run. Eventually retail loses, and big money wins. It's obvious we should avoid retail behavior, like using high risk leverage, and stick to the sub 20x/10x levels instead.

Gambling

For a professional trader it is very important to remember, maybe even repeat like a mantra, this quote from Warren Buffet:

"Anything can happen anytime in the markets."

The crypto market is a very volatile market, and as such can be compared to a casino. Many unexperienced novice crypto traders are high on "hopium", and their trading career is a mere gamble. They "fomo" into trades only to panic out of them next.

The reason many new traders blow up their accounts is because bad risk-reward (RR) ratios combined with losing streaks. They take big risks for small rewards and to repair that damage they take even bigger risks. But for every percentage that you lose, you need an even bigger percentage to recover, like illustrated below:

So if you lost 50% of your account in the last trade, you need a reward of 100% in the next trade to only break-even. And you even need a reward 9 times bigger if you lost 90% in the previous trade.

Besides a healthy RR ratio, you should obviously never risk too large a portion of your account in a single trade.

But how do professional traders stay in the game in such an unpredictable market? Just like how a casino stays in the game. For example many people think that the roulette is a 50/50 game.

But in reality, the casino has a small advantage. The roulette wheel has 18 red numbers, 18 black numbers, BUT also 2 green numbers. Anytime it hits the green numbers the casino wins. It is not a 50/50 game ay all, the casino has a small advantage. Out of the 38 numbers, the player can win by 18 numbers, the casino by 20 numbers:

• Casino win-chance: 20/38 = 52.63%
• Player win-chance: 18/38 = 47.37%

This shows you the casino has a 5.3% advantage over the player. This shows us that the casinos are in this for the long run. They don't mind losing bets, because in the long run they win the most bets.

This is exactly what professional traders know. Next to having high win-rate trading methods, they a re used to manage risks like casinos.

Risk and reward

Traders shouldn't base their SL (and take profit) on a fixed risk/reward ratio, but use technical reasons to decide where to take profit or to take a loss. But you can use a 1:1 RR ratio as bottom line. So for every $1 you risk, you want to win at least $1. It's good to avoid trades where you can potentially win less than you can lose. Many Many traders actually prefer a RR ratio between 1:1 and 1:2 (or higher).

This is popular trading rule. Big wins & Small losses = Profitability

Experienced traders know this, keep your losses small, and let your winners run. This has to do with statistics, as illustrated in this graph.

As you can see, the higher the RR ratio, the lower the required win rate to break-even! For example when RR ratio is 9, then you are break-even after winning only 10% of your trades. So, when you win 50% of your trades, that means 40% is pure profit. Imagine if you win 70% of your trades with such a RR ratio. The next table shows you some exact numbers.

This is very important to grasp:

Imagine you take very much risk for very small potential profit, a RR of 50:1. Then you need to win 98% of your trades to only break-even. But imagine having a high probability strategy and win 5% of your trades while risking 1%. Then you would be break-even after 17% of your trades being winners. If you lost 83% of your trades you would still break-even.

Statistics let you win in the long run. Even with a low win-rate. Don't focus too much on single, but look at trades as part of a series of trades. Don' get scared of losing trades but keep them small. In the short term you might have a losing streak, but in the long term you will win, because of your statistical advantage.

The higher the risk/reward ratio you chose, the less often you need to correctly predict market direction in order to make money trading.

Psychology

Unhealthy risk-reward ratio's, and holding on to losses is a psychological pehenomenom. Most traders have a tendency to avoid losses at all costs. This is also known as "lossaversion theory, or Prospect Theory." It means that losses tend to have a bigger impact on traders (and people in general), than an equal amount of gain does. When an average trader wins $1000, this leads to less emotional impact, than when it would have been a $1000 loss. That's the reason many traders hold on their losing trades, and turning them into big losses, as they can't accept the loss. This obviously creates an unhealthy risk-reward ratio.

How prospect theory works is illustrated in the next matrix:

There are 2 instances where we exit a trade. When we take profit (TP) or when we stop loss (SL). But how do you know it's time to exit your trade? You already learned a popular trading rule: Big wins and small losses = Profitability.

We can learn a lot from the forex market, as this market consists of many experienced traders. A major forex broker shows us these results:

"The above chart shows the results of a data set of over 12 million real trades conducted by clients from a major FX broker worldwide in 2010 and 2009. It shows the 15 most popular currency pairs that clients trade. The blue bar shows the percentage of trades that ended with a profit to the client. Red shows the percentage of trades that ended in loss".

As you can see, traders are correct more than 50% of the time, with the most papular currency pairs. So, you would think that most traders would be profitable trading Forex, right? But it's nope. Most Forex traders are actually not profitable.

to understand why, please take a look at the next chart:

"The above chart says it all. In blue, it shows the average number of pips traders earned on profitable trades. In red, it shows the average pips lost in losing trades. We can now clearly see why traders lose money despite being right more than half the time. They lose money on their losing trades than they make on their winning trades".

Many forex traders that are wrong about the market's direction, are still profitable in their overall trading. How? Because they practice good money management; they cut their losses asap and let the profit run.

The importance of money management and thus the usage of stop loss and take profit orders, is illustrated in the following chart:

"The 2 lines in the chart above show the hypothetical returns from a basic RSI trading strategy on USD/CHF using a 60mn chart. This system was developped to mimic the strategy followed by a large number of live clients, who tend to be range traders. The blue line shows the "raw" returns, if we run the system without stops or limits. The red line shows the results if we use stops and limits. The improved results are plain to see."

Planning a trade

As said, it is normal for humans to want to hold on to losses and take profits early. It is the main reason many traders fail to be successful. We must overcome this, and remove our emotions from trading.

The best way to do this is to set up your trade with stop loss and take profits orders from the beginning, and stick to your plan. Once you set them don't touch them again.

You need to know when you are in a losing trade. As a technical analyst you should already know at which point your trade goes wrong, even before you enter the trade. The technical reason why we enter a trade always has a level where it is no longer valid.

Many new traders built their strategy upon their entries. But it is just as important to focus on your exits. You need an exit when you are right and when you are wrong. When you go long and price goes up, then you are ok, the trade will often take care of itself as it runs towards your take profit target. But in case a trade turns against you, you should also know where your stop loss target is. That's at the price level where technical analysis is proven wrong. It's the level where you no longer want to be in the trade. It can be because analysis were wrong or the market changed direction, because remember:

Anything can happen at anytime in the markets.

In the previous part you already learned how to manage your risk using position sizing. That is set in advance, before entering the trade. Now you know you should also determine the level where you cut your losses in advance.

Now afteryou have entered the trade you can actually sit back, relax, and let the trade plays out. This is also very healthy from a psychological perspective.

You need to do your own analysis, plan the trade, follow the plan, and manage risk. No one is forcing you you to get on a trade. Take you own responsibility. And remember. You will get losing trades. Don't try to avoid losses, or you might losing all.

Don't trade with fixed SL or TP percentages. Don't force your static SL/TP level on the markets but let the market decide where they should be. Use technical analysis for this. There are no magic numbers for this, no holy grail.

Many FFT strategies result in high win rates. When trading high win rates signals and back testing different settings, you will notice that when you improve your risk/reward rate (by setting a correct SL and TP), then your win rate will deteriorate proportionally.

Risk/reward and win rate are actually 2 sides of the same coin. A too close SL will hit more often statistically. Give trades less room to breathe, ans the more trades will die.

Many traders claim the holy grail in trading is to have a high win rate; while having a high risk/reward at the same time.

In my experience the most important habits of professional traders is the avoidance of over-trading. After finding the high win rate opportunities with the highest probabilities (like FFT signals) professional traders only trade those setups with the healthiest risk/reward ratios. This is the most reliable path to the "expert trading" quadrant in the above matrix.

To less experienced traders these habits are sufficient to be profitable

• Get an edge over the market, so you win more than 50% of your trades. This can be achieved by a solid trading system, for example based upon FFT signals ans strategies. (Although I know there are many expert traders that are even profitable with a 30% or lower win rate).
• Your risk/reward ratio should remain above 1. The higher the better but keep an eye on your win rate.
• Don't over trade, let the market decide. Be patient, a profitable trader knows also when to stay out of the market.

Averaging entries

A popular entry method amongst some traders is to average into positionsusing additional entries as price move against their first entry. This is often considered a bad practice by many other traders though. This technique is called "adding to a loser". But let me explain why I don't totally agree. There should be a logical and technical reason to double down on position. By looking for divergence on (multiple) momentum indicators, like the rsi and MACD (and histogram). For example, when price breaks below your entry level, and makes a lower low, this could be considered a reason to cut losses and exit the trade. But you could also consider adding to your position, in case you get a good signal, or the momentum is decreasing and the price might still reverse soon. Although price action goes against us, decreasing momentum can be a sound technical reason to stay in the trade and even add to it. In my opinion this helps me with one of the hardest part on trading: timing your entries right.

Example of a double bottom signal, where adding to the position at the lower low is justified by MACD (and histogram) divergence indicating the decrease in bearish momentum:

An important question when averaging into a position is:

When do you stop adding to a position and decide stop your loss?

Just like we determine our stop loss based on technical analysis that give us the levelwhere the reason to be in the trade is no longer valid, determining if we want to increase the position is also based on technical analysis.

If price goes against us, beyond our initial entry, but momentum shows divergence, this confirms a possible reversal, and we can decide to add to our position, and improve our exposure, and average entry price.

But on the contrary, if price goes beyond our initial entry , but momentum is convergent as it also continue to increase, and our reason to enter the trade in the first place is weakening, then we might consider to skip another entry, and wait for price to choose direction: reverse or continue and hit our stop loss. It's always best to let the market decide.

Zero risk exits

In trades with high profit potential, you can consider using a "zero risk" approach:

• Set your RR at 1:1, so the SL at the same distance than the TP.
• When price hits the TP level you exit only 50% of the position.

In case price fails to go any higher and falls back to the SL level, then you close the remaining part, and the whole position is closed at break even, or "zero risk". But in case the price does go higher, you have infinite profits potential. After the first 50% exit, without moving the stop loss order, the risk is limited to zero, and you get unlimited profit potential. Knowing how to maximize profit, while taking the fear out of a trade is one of the most powerful asset a trader can have.

Of course this zero risk strategy can only be executed when the market reaches the 1:1 TP level first. In case it first reaches the SL, then you can't turn it into a zero risk trade obviously.

Simple zero risk rule: If you use a 1:1 RR and are able to exit the first 50% of your position at the TP level, then the rest of the trade is risk free.

You should never move your SL to break even though. Then the SL level no longer makes sense from the perspective of the technical reason you entered the trade in the first place. When placing a SL you should consider volatility, a trade needs room to breathe, if you take this away you could potentially close a winning trade too early.

This turns the odds against you in the long run. The ATR valueis often added as extra volatility buffer to the stop loss distance.

The information on this resource is addressed to an unlimited circle of persons, and is not an individual recommendation; It is exclusively informational and analytical in nature for our team own use, and should not be considered as a proposal or recommendation for the investment, purchase, sale of any asset, trading operations on financial instruments. It's your own responsibility what usage you will make about it. The views expressed reflect only the author’s exclusively personal view.

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Going Short - This is the opposite of going long. You borrow an asset to sell, hoping to buy it back cheaper later. If the price goes up instead, you're stuck buying it back at a higher cost, resulting in a loss.

Understanding Leverage - Leverage allows you to amplify the size of your trade by borrowing money. A 2x leverage on a $100 trade effectively makes it a $200 trade. This can boost your gains, but it also magnifies your losses.

The Dark Side of Leverage - Here's where caution is crucial. If the market moves against your leveraged position, you can lose more than your original investment. For example, if you use 10x leverage on a $100 trade, a 10% market drop means you lose your entire $100, not just the $10 you would lose without leverage. In some cases, losses can even exceed your initial investment, leaving you in debt to the broker.

Risk Mitigation - To mitigate these risks, use 'Stop Loss' orders. This will automatically exit your position at a predetermined price level, limiting your potential losses.

Due Diligence is Key - No amount of tips can replace good old-fashioned research. Know your asset, know the market, and base your decisions on solid information rather than hype or fear.

How to Place a Conditional Order:

1. Select the Appropriate Trading Platform:
• Start by choosing a trading app that supports conditional orders. Most modern platforms offer this feature, but it's essential to confirm its availability before proceeding.
2. Access the Conditional Order Section:
• Navigate to the conditional order section within the trading app. This is usually found in the order type menu, alongside market orders and limit orders.
3. Choose the Conditions:
• Specify the conditions under which you want the order to be executed. This could include price triggers, time frames, or specific events in the market.
4. Set the Trigger Price:
• If your conditional order is based on price movements, set the trigger price at which the order will be activated.
5. Select the Order Type:
• Choose the type of order you want to place once the conditions are met. Common order types include market orders, limit orders, and stop orders.
6. Review and Confirm:
• Carefully review all the details of your conditional order before confirming. Ensure that the conditions are accurately set and align with your trading strategy.

How to Follow a Conditional Order:

1. Monitor Market Conditions:
• Keep a close eye on the market conditions to ensure that the triggers for your conditional order are met. Market changes can happen quickly, so staying informed is crucial.
2. Receive Notifications:
• Many trading apps offer notification services. Enable notifications to receive real-time updates on the status of your conditional order.
3. Adjust Orders as Necessary:
• Markets can be unpredictable, and your initial conditions may need adjustment. Be prepared to modify or cancel your conditional order if the situation changes.
4. Evaluate Performance:
• After your conditional order is executed, evaluate its performance. Assess whether the conditions were met as expected and analyze the impact on your overall trading strategy.

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Conditional orders are a valuable tool for traders seeking efficiency and precision in their transactions. By understanding how to place and follow these orders, investors can gain a competitive edge in navigating the complexities of the financial markets. 📈💼

These trading patterns signal those market conditions where a statistical edge exists for a trader to take advantage of.
So, while they are not foolproof, price patterns do provide an edge that can be utilized over the long term, which is how all successful traders make their money and beat the market.

Trendlines in Technical Analysis

Trendlines are straight lines that trace the price movements of the market. An uptrend is defined by higher highs and higher lows.
An uptrend line is drawn below the price levels to show the support levels or is drawn above price levels to show the resistance holding price down.

Downtrends occur when the market makes lower lows and lower highs. Downward trendlines drawn above the prices illustrate the resistance levels.

At least two points must be used to form the line. The more points that fit on the line, the more valid the trendline will typically be found to be.

A sideways market can also be illustrated by two parallel horizontal lines representing both the resistance and support of the range, respectively.

Candlesticks are composed of a part called the body, which represents the opening and close of the price for that period.
Another part of the candle extends above and below the body representing the high and low for that period.
These long, thin projections are called shadows.
Sometimes, a period high or low will coincide with an open or closed, in which case there will be no shadow extending beyond the body.

Some may advocate the drawing of trendlines based on the shadows, but the fact remains that these shadows are outliers, and the price action generally spends most of the time in the body of the candle.
When drawing trendlines, stick to the closing prices of the periods for the most part.

Continuation Trading Patterns

Sometimes, during a trend, the prevailing movement pauses.
There are various logical reasons for this. As a rally continues, long buyers will start selling to take profits, creating selling pressure that drives prices downward.

This selling pressure, combined with buying pressure, creates sideways price action.
Conversely, when a large downward motion will trigger short selling to cover, creating buying pressure to counteract the downward trend. Market conditions occur constantly throughout all markets and create recurring trading patterns in the price chart.

Pennants pattern

A pennant is usually foreshadowed by a sharp rise in price. This almost completely vertical rise in price is called the flagpole or mast.

The two converging trendlines are a downward trendline representing the lower highs and an upward trendline representing the lower lows.
A pennant that follows a sharp downward move will tend to continue downward and be considered a bearish pennant, while a pennant forming after a sharp upward move will be considered a bullish pennant.

Pennants usually appear about halfway through the entire price move, so the move after the pennant is broken will typically be about the same magnitude as the mast.

Flags pattern

Flags are composed of parallel trendlines that buck the current larger trend.
These can be upward-trending, downward trending, or sideways. Unlike wedges (mentioned below), the trendlines do not converge.

Flags that slope upwards appear in a downward-trending market, while downward-sloping flags will appear in an upward-trending market.

The trend will tend to continue after the flags have materialized and the price progresses out of the pattern.

Wedges pattern

In technical analysis patterns, wedges are similar to pennants, except that both trendlines are moving in the same direction.
Rising wedges tend to foreshadow upward breakouts, while falling wedges give rise to both upward and downward breakouts.
This means that, particularly for falling wedges, confirmation should always be obtained before trading the breakout.

Triangles pattern

One common chart pattern is the triangle. There are three types of triangles:

Symmetric Triangles pattern

Symmetric triangles are created when the line connecting the highs converges with the trendline connecting the lows to form a triangle.
those trading patterns are defined by a downward trendline and an upward trendline converging together.

Since both lines of the ascending triangle have essentially the same slope, the direction cannot be predicted.
With any likelihood, a breakout in one direction or the other is likely. But the direction of the triangle is not upward or downward because the slope of both lines more or less mirrors each other.
This pattern suggests that the trend in place before the pattern formed will continue once the price breaks out of the triangle.

Ascending Triangles pattern

An ascending triangle is formed by a flat line that comes with the highs staying at pretty much that same price and a sharp upwards trendline that comes with the higher lows.
In other words, the highs will stay constant while the lows will rise.

This pattern suggests that buying pressure exceeds selling pressure, which will essentially result in a breakout to the upside.

Descending Triangles pattern

Descending triangles are like upside-down ascending triangles. Instead of pointing upward, they point downward.
This pattern is caused by the flatness of the slope of the bottom trendline and the sharper downward slope of the top trendline.

This pattern suggests that sellers are overtaking the buyers and pushing prices downward.
This is a bearish continuation pattern that indicates a breakdown (downward breakout) once the pattern is broken.

Cup and Handles pattern

A cup and handle pattern is a bullish continuation pattern.
The pattern is defined by a U-shaped cup or bowl, which then transitions into a downward trend, which is called the handle.
Cups with more of a U-shape give a stronger signal, while cups with a pronounced V-shape should be avoided.
The depth of the handle should not exceed beyond half the depth of the cup.

Reversal Patterns

Just as continuation patterns signal the continuation of a trend, reversal patterns signal the reversal of a trend.
While continuation patterns suggest that the market is pausing before another push in the same direction, a reversal pattern foreshadows that the trend has exhausted itself and the market is about to go in the opposite direction.

Head and Shoulders pattern

A Head and Shoulders pattern consists of a peak, followed by a larger peak, followed in turn by a peak of a similar size to the first.
This pattern suggests that the market is at the top and will turn in the other direction.

Inverse Head and Shoulders pattern

The inverse head and shoulders pattern is simply an upside-down version of the same pattern.
That is, it is defined by a trough, followed by a bigger trough, which is then followed by a trough of a similar size to that first trough.
This signals that a downtrend is about to turn up.

Double Tops and Double Bottoms pattern

Double tops and double bottoms are shaped like Ms and Ws, respectively, and are a sign of price attempting to break through support or resistance and failing to do so.

They suggest that the price is unable to penetrate further and is about to move in the opposite direction.

Triple Tops and Triple Bottoms pattern

These are similar concepts to double tops and double bottoms, but even more powerful because the price was denied the breakthrough three times instead of only two.
The more often a support or resistance level holds when being tested, the stronger than support or resistance level is.

Candlesticks and Price Action

The relationships between the parts of candlesticks create regular patterns. Long shadows can indicate the rejection of a price move.

Pin Bars

A pin bar is a candlestick whose shadow is long on one side and whose body is small and closes on the opposite side of the candlestick.
When a long shadow extends up from a small body, this is a bearish pin bar.
The long shadow at the top of the candlestick suggests that the price attempted to move up and was rejected by the market, as indicated by the close at the body of the candlestick near the bottom of the candlestick.

Hammer Candlesticks

When a long shadow extends down from a small body at the top of a candlestick, this is a bullish pin bar, also known as a hammer candlestick.
The logic here is the same as with the bearish bin par, only reversed.
Price was rejected at the long shadow end of the candlestick, suggesting that the market will continue moving away from it.

How to study technical Analysis Price Patterns?

Forums are one of the most popular places for sharing knowledge between people.
Sign in and follow opinion leaders Take advantage of their experience and learn their ways of trading.

You can also find quite a few online courses but check carefully before you sign up, and look for recommendations.

Of course, you can also learn independently with forims, YouTube or books.

But remember, there is no substitute for experience, so be patient and use the Demo account to improve and practice in the technical analysis.

Another important point about those chart patterns is their success rate. Here is what a 2 years study conclude when you rely only on those patterns.

Ascending/Descending triangles – 39.5%

Double Top/Bottom Pattern – 41.2%

Head & Shoulders Pattern – 48.6%

Trend lines – 37.0%

Engulfing Candlestick – 42.7%.

Bullish/Bearish Flags – 44.4%

Morning/Evening Star Candlestick – 45.9%

Ascending/Descending Wedges – 38.2%

Exhaustion Gap – 42.6%

Hammer Candlestick – 45.5%

Conclusion for Technical Analysis Price Patterns

Price patterns are quite logical when you learn them and understand what they can tell you about what is happening in the market.

But it is not recommended to rely only on price patterns.
The right way to use price patterns, combined with price action, like support/resistance or supply/demand.

When it comes to handling finances, one crucial aspect always remains, paramount - clear-headed calculation and composure. Emotions stand as the foremost adversary of profitability for investors. Why? Because when we find ourselves making decisions to buy or sell assets under the influence of the crowd's pressure or in moments of heightened stress, we tend to draw hasty conclusions, bypass careful analysis, and ultimately incur financial losses.

How can you shield yourself from overly emotional decisions and avoid financial losses?

Maintain Realistic Expectations Anchored in Facts:

The essential truth about investing is its inherent unpredictability. No one can guarantee that your investments will yield returns tomorrow or meet your profit expectations. However, this does not imply that your strategy is flawed. Keep evaluating the market situation rationally, acknowledge the risks, and stick to a well-thought-out plan.

Resist the Urge to Follow the Herd Mentality,

Hype, or the Advice of Short-term "Experts": Taking risks can be commendable, but only when backed by thorough analysis and data.

Break Free from Conventional Thinking;

Think Outside the Box: Have you encountered naysayers who claim your chosen path won't lead to success? Or have you confined yourself to a single strategy? Disregard such limitations! Opt for long-term investments, diversify your assets and amounts, regularly acquire additional holdings, and savor the magic of compound interest.

Define Clear Investment Goals:

Investing money solely for the sake of wealth accumulation seldom works. You need specific, life-oriented motivation: goals that are real, measurable, and achievable. Stop dwelling on the idea of not having enough money and concentrate on a strategy for achieving what you desire most.

Overly Cautious Attitudes Equate to Fear of Market Risks:

However, there's no escaping these risks. If the thought of losing your investments sends shivers down your spine, start with conservative instruments. They are the most comprehensible and dependable. As you grasp the workings of each financial tool and the expected outcomes, you'll gradually overcome your fears.

News about trading, headlines, often glorify the dramatic one-time gains of lucky individuals. However, the reality is that such events are the exception, not the rule. True trading mastery is not about hitting the jackpot with high-risk leverage; it's about the steady, disciplined pursuit of consistent gains. Let’s debunk the myth of overnight success and highlight the power of compounding steady returns.

The Myth of the Big Win

Highly publicized stories of traders making astronomical gains in a short period can paint a misleading picture. These events typically involve high leverage and substantial risk, meaning that for every success story, countless others face devastating losses. The truth is that consistent gains, not occasional windfalls, are the cornerstone of long-term trading success.

Jealousy and Perception in Trading Circles

It's natural to feel a twinge of envy when you hear about someone else's big trading win. However, remember that people are more likely to share their successes than their failures. The traders who boast of large profits are not necessarily the ones who are sustainably successful. It's the traders you don't hear about, the ones quietly compounding moderate gains, who are often the true success stories.

The Power of Consistent Gains

Imagine growing your portfolio by 2% every trading day. While it may seem modest compared to the alluring 100% gains often flaunted, the effects of compounding are nothing short of remarkable. If you were to achieve a 2% gain on your portfolio five days a week for one year, you would not merely double your money; you would potentially increase your portfolio by a factor far beyond that.

In fact, starting with a hypothetical amount, a consistent 2% daily growth compounded over a year of trading days would grow your initial investment by over 17,120% by the year's end—a testament to the exponential power of compounding.

Find the right strategy and stick to it.

The information on this resource is addressed to an unlimited circle of persons, and is not an individual recommendation; It is exclusively informational and analytical in nature for our team own use, and should not be considered as a proposal or recommendation for the investment, purchase, sale of any asset, trading operations on financial instruments. It's your own responsibility what usage you will make about it. The views expressed reflect only the author’s exclusively personal view.

To join or have a look at the channel with a 30 mn trial, follow the provided link to our chatbot @JoinFFTChannelVIPbot (Telegram)

In all transactions, our standard risk (R) from the deposit is 1%. Based on this, we prescribe STOP LOSS and PERCENTAGE OF DEPOSIT in each transaction.

HOWEVER, if you are already experienced and want to enter a trade with a risk of 2% or 3%, then below we will tell you how to calculate the required deposit percentage to enter a trade. Only change your R when you get experience.

The goal is to keep the risk on each trade fixed.

It is impossible for the risk in one transaction to be, for example, 1% of the deposit, and in another transaction 5% of the deposit.

It has been mathematically proven that with 30% of successful transactions with risk management of 1 to 3, your deposit will be in profit.

Our recommendation: always take a risk per trade of 1% on your deposit. Then if you have 7 losing trades you will affect only 7% of your deposit. And you can make a profit of at least 8% on the remaining 3 trades.

What does risk to profit 1:3 mean?

Let’s take, for example, buying a coin for $1.

Let's set a stop loss at $0.9. What is the risk of being stopped in this trade? Exactly 10%.

In order for the 1:3 condition to be met in this deal, we need to earn 30%. That is, set a take profit of $1.3. Provided that technically this is actually achievable on the chart (And without this condition, we would not enter into the transaction).

Risk of loss - 10%.

Potential profit - 30%.

We get risk to profit - 1:3.

Let's calculate the required percentage of the deposit using the example of a transaction from the channel.

Input data:

• Let's say our deposit is $100,000.
• We chose for ourselves that we want a risk of 1% of the deposit in each transaction.

The following deal comes up:

What do we see in the deal?

• We could potentially lose 2% of the entry amount.
  We can earn +6% to the entry amount.
• Trade with risk to profit 1:3.

How to do the calculation:

The trade stop is -2%.

-2% of $100,000 = -$2000.

If you enter the entire deposit without leverage and enter a stop loss, the minus will be equal to -2% of the deposit (-$2000).

And it should be -1% (-$1000).

This means that you need to take the amount of funds to enter 2 times less than 100%.

Or 100%/2 = 50% of your deposit. That is $50,000.

You can take this 50% with 1X leverage (essentially no leverage) and then your own funds in the transaction will be 50%.

Or with an isolated 10X. Then the equity in the transaction will be 5% (5% * 10 = 50%). That is, $5,000 of own funds.

Do you want a 2% risk?

When calculating the percentage of the deposit, add *2 to the formula.

It will turn out:

100%/2*2 = 100% of the deposit. That is $100,000.

This is because in this example the stop is only -2%. And if we enter the full amount, then the default risk will be -2%.

How to choose leverage?

1. The leverage must be ISOLATED, otherwise there is a huge risk of losing the entire deposit in one transaction.
2. The size of the leverage affects only the liquidation price and has absolutely no effect on the profit/loss of the transaction, because your loss is fixed: 1-3% of the deposit of your choice.
3. It is IMPORTANT to take such leverage that the liquidation price is further than the stop price.
4. If point No. 3 is observed, then the difference in the amount of leverage remains only in the amount of own funds in securing the transaction:
1. With a leverage of 5X at $1000, $200 will participate ($200*5 =$1000);
2. With 10X leverage at $1000 = $100. ($100*10 = $1000);
3. With leverage 20X = $50 ($50*20=$1000).
4. With leverage 100X = $10 (10$*100=$1000).

When you learn how to calculate volume correctly and quickly, you will be able to use the leverage you want. At the same time, the risk of the transaction will still remain fixed, regardless of the leverage size: 5X, 10X, 50X, 100X.

The information on this resource is addressed to an unlimited circle of persons, and is not an individual recommendation; It is exclusively informational and analytical in nature for our team own use, and should not be considered as a proposal or recommendation for the investment, purchase, sale of any asset, trading operations on financial instruments. It's your own responsibility what usage you will make about it. The views expressed reflect only the author’s exclusively personal view.

To join or have a look at the channel with a 30 mn trial, follow the provided link to our chatbot @JoinFFTChannelVIPbot (Telegram)

Understanding R-related Terms for Trading
Here are some terms for understanding R values.

1R: is our ideal amount of risk. This is put in our trading plan as our “standard position” size. 1R is how much we want to risk on a trade; put another way, how much we are willing to lose on trade. For me, 1R is 2% of my trading account balance, for example.

That said, we don’t need to use this position size on all trades if we are experienced traders. We may end up with Fractional Rs (discussed below).
R-Multiple: our profit or loss on a trade divided by the amount we intended to risk. If we risk $500 and make $2000 (2000/500), that is a 4R trade. If didn’t place a stop loss and lost $750 when we were only supposed to lose $500, that is a -1.5R trade (750/500).
If you are interested in really digging into your trading results, then you will also want to understand the following terms.

Fractional R: when we choose to, or end up, risking more or less than our ideal amount.

R-Theoretical: is what we plan to risk and make on a trade. For example, we may say this is a 3R or 3:1 reward:risk trade. We want to risk 1R to make 3r. This is relevant before the trade and while it is open.

R-Actual: is what we actually end up making/losing on the trade in terms of R. We only know this once the trade closes/finishes.

“R” is how much you are risking, and making, per trade. It is a standardized amount (dollars or percentage of account) for YOU.

R could be 1% of your account if you typically risk/want to risk 1% of the acount. Or it could be 2% or 0.5% of the account balance. Up to you. I typically risk 1% of my account per trade. I recommend beginner to use always the same R.

R could also be a dollar amount you are comfortable with, although I recommend this is also a percentage of your account, as over time dollar amounts tend to change as our account grows and shrinks. A percentage can remain stable over time.

If risking 1% of the account, that means on a $10,000 account you’re willing to lose $100 on a trade. The value of the position can be much more than $100 (for example, you could enter a trade for $5,000 or $10,000+ worth of stock), but if that position loses $100 you are getting out as that is 1R.

Experenced traders use a stop loss to define exactly when they will get out of a trade if it moves against them. Knowing the stop loss and entry point allows a trader to determine the exact position size they can take to risk 1% of their account on the trade.

The point is, YOU are choosing your R. It doesn’t matter if someone uses a different percentage or dollar amount.

Want to take high-momentum stock trades that last a week to a couple of months? My

Trading Profits Expressed as R or R-Multiples
For every trade, you can now express your risk as R.

Your profit, expressed as R, is how many risk units you make on the trade.

If you set a 3:1 reward-to-risk for the trade and risk 1R, you will make 3R if the price hits your profit target.

If your 1R is 1% of the account, if you lose, you lose 1% of your account. If you win, your account increases by 3%.

Convert to dollars if it makes it easier. Divide what you expect to make by your risk amount.

If you typically risk 0.25% of a $475,000 account, your dollar risk is $1,187. If you stand to make (or actually make) $5,789 on the trade, that is 4.88R ($5789/$1187).

Another way to calculate your R profit is to look at the percentage difference between your entry price and stop loss price. Say there is a 5% difference. If you are going to take profit when the price rises 20%, that would be a 4R trade if the price hits your target. If you take profit at 50% above your entry price, that is a 10R trade.

Fractional R Trades
R is what you are comfortable risking per trade. But we may not risk that amount every time.

To find out what your factional R is, divide what you are actually risking by what you normally risk.

For example, we may usually risk 1% of our account per trade, but maybe market conditions are poor so we reduce our position size to half. If the price hits our stop loss, now we are only losing 0.5% of our account. I would record this as a -0.5R loss.

Or maybe we take a position size that is too large, or we don’t exit when we are supposed to, and we lose 2% of our account. I would record this as a -2R loss.

The same goes for a profit. If we only risk 0.5R, and win a 3:1 trade, we made 1.5R. We would have made 3R had we risked 1R.

Or maybe we end up with a position that is too big, so we are really risking 1.6R. If we are aiming for a 4:1 target, we will end up losing -1.6R or making 6.4R (because 1.6 x 4 = 6.4).

If it makes it easier, convert your R percentage into dollars. If your account is $123,690 and you typically risk 0.5% per trade, that means you can risk $618. If you notice you are risking a bit more or less, such as $675 or $580, this will change your R on this trade to 1.1R ($675/$618) or 0.94R ($580/$618) respectively.

This may vary slightly once the trade is complete. For example, you may have intended to risk 1R, but with slippage on the exit you end up losing 1.1R. Record the trade as a -1.1R loss.

Differences Between R-Theoretical and R-Actual
If we tell ourselves that we are going to hold for a 3R target on this trade (or a -1R loss), then that is what we should do unless our trading plan provides us with other options.

If the theoretical reward:risk on your trades is 3:1, then you should be making 3R on your winners. If your average actual winner is 1.5R, that tells you something is wrong. What you think should happen is not aligned with what you are actually doing.

Maybe you are exiting your profitable trades too early.
Maybe your profit targets are not reasonable (stop loss may be too big, making 3:1 very hard to reach), or the targets are not based on a sound method/strategy. Rather, they are based on whim or wishful thinking, not actual price chart data and statistics.
No matter the reason, it is good to know whether you are achieving what you set out to achieve. Many traders come to me saying they are winning a good amount of their trades and using a 3R or 4R target and yet they are just barely breaking even. The math doesn’t add up. They should be making a great profit.

The problem always lies in one of two things:

They are making less R than they think. They set out to make 5R on a trade, but then close it early when they are onside 2R when the trade starts to turn a bit against them, for example. That is not a 5R trade, that is a 2R trade. You are your results, not your intentions.

The R losses are bigger than they should be. Someone may be fairly disciplined, but occasionally there is a huge loss where they didn’t close their trade or didn’t use a stop loss and they lose -7R or -10R. Or maybe it’s less dramatic, but they’re constantly losing -1.2R, -1.5R, -2R, -1.3R, -1.6R. They are often losing slightly more than they planned.

This has a big effect on overall profit! If your actual average R loss is -1.3 (instead of -1R), you are not trading with the reward:risk that you think you are. For example, if you do average 3R on your winning trades. This should be a 3:1 reward to risk. But if you are losing -1.3 on your average losing trade, your actual reward:risk is:
3R / 1.3R = 2.3 Your reward:risk is quite a bit less than what you think it is!

R allows traders with different account sizes and risk tolerances to compare strategies and results.
If one person is risking $10 per trade, and another is risking $5,000, they can both express their results in R. If the $10 trader is averaging 3R per day, while the $5,000 trader is averaging 1R, the $10 trader is showing better skill even though the dollar amount he or she is making is way smaller than the dollar amount the $5,000 trader is making each day.

One person may only be risking 0.25% of their account per trade, and another may be risking 2%. Yet, if strategy results are expressed in terms of R, they can calculate their potential profit based on their own account size and risk tolerance.

For example, if a day trading strategy makes 30R a month, all the trader has to do is multiply 30 x the dollar amount of their R. If they risk 2% of a $6,000 account, their risk amount per trade is $120 x 30 = $3,600 profit. If someone else risks 0.25% of a $100,000 account their risk amount per trade is $250 x 30 = $7,500 profit.

R-Actual reveals mistakes in position sizing.
If you are constantly messing up your position size, R will show this because your losses will be a lot different than what they should be.

If you have a problem getting out of trades when you are supposed to, your average R loss will be bigger than expected, maybe -1.5R for example. You are losing 50% more on each trade than you should.

We don’t really need to worry about intentional fractional R trades, because our R-Multiple average tells us if we are doing well in terms of reward:risk. For example, maybe we are constantly risking 0.5R instead of 1R because trading conditions are poor. That is fine. If our average R-multiple is still 3R, we know we/the strategies are still doing well, even though we are trading smaller than we usually do.

R-Theoretical and R-Actual Show Us Reward:Risk Quickly
Reward:Risk, win rate, position size (which is already factored in if using R) and the number of trades we take determine our profit. That is it. By knowing your R values, you always know what your reward:risk is.

Take averages of your closed trades to see what your average R-multiple is. If it is low, and you aren’t doing well, you pretty much have your answer as to why. You need to hold for bigger gains.

Averages are very easy with R since our results are typically numbers like -1, +3, +2.6, -0.89, and so on.

Here’s how I calculate reward:risk:

Add the profits divided by the number of profitable trades.
Then add up the losses divided by the number of losing trades.
Then divide average profit by average loss.
Using the 4 trade above:
Average profit = 5.6 / 2 = +2.8R
Average loss = 1.89 / 2 = 0.945R
Reward:risk = 2.8R / 0.945 = 2.96
Our average profit is almost 3x our average loss.
If you add up all the profits and losses and then divide by the total number of trades, that gives your Expectancy. For example [ (-1 +3 +2.6 -0.89) / 4 ] gives us [ 3.71 / 4 ] or 0.93R. Assuming our results stay similar, we can expect to make 0.93R per trade, on average. That is expectancy expressed as R (and using R to calculate it).

To use R, you must define your risk before the trade.
Many people take trades without considering their risk. They don’t have an exit plan for a losing trade (and probably not for a winning trade either). Find one strategy and stick to it.

By defining R, we know exactly where to get in and out, because that is how our risk is determined.

Over many trades, we find out what our R-actual is, and we can work to reduce our losses to 1R or less, or increase our R-multiples.

R is about what happens at the account level.
R is based on the size of the account. If risking 1% of the account, and making 20R over 10 trades, you know your account is up 20%.

If you risk random amounts on each trade, who knows how much you made!? Yes, you can look, but the point is that the result is random because the position sizing and risk is random.

When we standardize our risk, it makes it much easier to track results and spot mistakes and areas of improvement.

The information on this resource is addressed to an unlimited circle of persons, and is not an individual recommendation; It is exclusively informational and analytical in nature for our team own use, and should not be considered as a proposal or recommendation for the investment, purchase, sale of any asset, trading operations on financial instruments. It's your own responsibility what usage you will make about it. The views expressed reflect only the author’s exclusively personal view.

To join or have a look at the channel with a 30 mn trial, follow the provided link to our chatbot @JoinFFTChannelVIPbot (Telegram)

We recommend you to search about risk management in trading. First you need to understand the concept of what is an "R" in trading.

I will explain with a concrete example.

Let's say you have a $2000 deposit.
1R represents the risk you are ready to take in case of the position reach the stop loss.
It can range from 1 to 3 percent of the total deposit you have in your trading wallet.
Let's take the average value of 2 percent of the deposit. Not too safe nor too agressive.

1R = $40. (2% of $2000)
This is your stop loss.
It is always the same in all trades. Do not change it until you make minimum 2x.

Now you receive a signal.

Then here is the signal

🟢 TRBUSDT. Long.

Entry range: $114.2-$114.2

Stop at $100 (-14%)

Target: $150-$200

What to do?

1) Log in to your trading platform.
2) Select TRBUSDT.
3) Check if the coin is within the entry range.
4) Enter the margin (for example, $20).
5) Set the stop at the $100 TRB price - this stop should equal to your R: -$40.
If the stop is less, then increase the margin; if more, decrease it.
6) After setting the stop loss, you can place your take profits.
7) Only after that, you check the reaction of the coin at entry level and then enter the trade when trend is confirmed.
8) You apply your strategy to take profits and exit.

By following this method, you'll never lose more than $40 on a trade. 1R
Profit and loss are measured in the number of Rs.
If you earn $120, that means you've added +3R to your deposit.
If you lose $80, that's -2R accordingly.

When you make more than X2 to your depo, u can change your R value or keep the same R and withdraw some money.

Then, now you have to follow your strategy and take ptofits from the trade.

We highly recommend that you write all your trades in a journal. Then you can check what worked best to enter your position and adapt your strategy accordingly.

The information on this resource is addressed to an unlimited circle of persons, and is not an individual recommendation; It is exclusively informational and analytical in nature for our team own use, and should not be considered as a proposal or recommendation for the investment, purchase, sale of any asset, trading operations on financial instruments. It's your own responsibility what usage you will make about it. The views expressed reflect only the author’s exclusively personal view.

To join or have a look at the channel with a 30 mn trial, follow the provided link to our chatbot @JoinFFTChannelVIPbot (Telegram)

📜 My story doesn't start in a little village from the middle of nowhere like the fairytales of Instagram influencers or homemade success stories. My name is Nathan, I was born and raised in a medium-sized city. There are good chances to find a good job there and I moved from there by choice, not necessity.

🏡 My family wasn't poor, but not rich either. My parents did their best to provide me with the best education and care possible. They were quite successful in their life choices. Actually, I am an average person. I like football games, dad jokes, eating junk food and going out with friends. I followed my way through the education system, got quite good results at school, and ended up at university.

🎉 I had fun there, parties, chasing girls, and barely studied. Great memories from that period of my life. Then, I decided to stop "studying" and to make money. I had dreams and decided to move from my city and take my chance abroad with a friend from university. He was similar to me, full of dreams, positive, and with many hopes about life. In one word we were delusional.

🌆 So we went to London after watching movies and videos claiming that it was a city where you could easily find a job and make good money. I come from a cold country but in London the weather was bad, not so cold but rainy almost all the time. It was hard to find a good job without university graduation. We found a room that we shared because rent is really expensive in London. I eventually found a job in a restaurant cleaning dishes, and the good part of this job is that they fed me. Food is expensive there, and the quality is not really the best.

🍻 On weekends, sometimes we went out to the pub and met a circle of friends, some expats following the same kind of dream as us. Pubs are nice in London, easy to meet people. So, our main distraction was to go watch the football on TV at the pub and have a few beers with friends. Life wasn't so bad after all. We had a job, a room, and met new people. We survived.

🤝 It was among this circle of friends that I met this guy who only spoke about crypto and blockchain. Good looking guy but who spoke like a geek. People kind of laughed at him and made jokes, but he was a really nice guy when he spoke about things we could understand.

💼 I had a feeling that this guy was worth something. He was working in a call center and said that he was studying trading by himself. One day, he disappeared from the group, he didn't come to the pub, and nobody really knew where he went. He probably found a job or a girl and then left. It is quite common in our age and social category to have people join, come and then go.

🤷‍♂️ Whatever, I was going on with my life, and one day I met this guy again, maybe 6 months later. He was a totally different person. He looked more confident. We had a chit-chat about life and other not important things, after he explained how his life changed when he got in contact with a group of traders. They accepted him into their group as an analyst. Some checked the news related to crypto markets, others monitored the markets, focused on coins, made analyses, took decisions on trades to follow, and others were good at finding coins with great potential for growth.

📈 They were quite new in their association and were already profitable. He then told me that they had a chat where they monitored all their trades, and also made it available to close friends or family members. They were profitable at an average of 5 to 10% per month, more during the good months 20 up, if you followed every trade they validated and the conditions such as the entry, stop loss, and applied an exit strategy. It was kind of like Chinese language to me, but I understood the main point.

📊 He showed me their group on his phone, and I could check by myself. I was first doubtful because I always considered trading as being at the same level as gambling. I didn't think people could be profitable doing that. But I took the time to check the trades, looked at charts, and went back in time on this chat. Yes, there were unsuccessful trades, but most were profitable. Numbers don't lie, and statistics were showing a 23% profit for the month I checked.

🤝 This group of traders isn't focused on making their trades available to the public, providing trading education, or anything else. They accepted some members to join the chat and follow the trades. Mostly relatives and a small circle of friends who wanted to try and already know or willing to learn about trading. It's up to anyone who joined to learn by himself about the general concepts of trading: how to enter the trade in the best conditions possible, the exit strategy to generate profit and minimize risks, the mindset, and psychology of a trader are such concepts you need to learn before being able to take full advantage of those signals.

💬 So, I asked if I could join. I was curious. He told me to learn first about basics of trading, which I promised to do, and he said he would ask for permission to accept me in the chat. After a few days, he called me, and I was accepted in the group. Of course I didn't learn much in just a few days and wasn't ready. Inside the group, It is just signals to follow. I made some losses because I wasn't following exactly the stop-loss and wasn't aware of basic trading strategy. I didn't enter at the good timing or took trades which weren't confirmed. I also got some coins pumping but didn't take profit because I was too greedy and thought they will go higher, other coins started in the red and I stopped by fear of losing too much. Too early. My emotions were in control. I was in between greed and fear. I got everything wrong. I started to doubt. I called my friend who reminded me what he said about learning first. But he mostly focused on psychology. For him 80% of trading is about mindset. So eventually I questioned myself and decided to be more serious. Being accountable for both failures and success was the starting point. Because who is wrong? The signals? The analysts? Or me who decided to enter the trade? Of course ME. Be responsible for your decisions. Have a trading diary, monitor and analyse your trade. Check what was a good decision and what was not. You have to become a trader not someone who blindly follow someone else.

💰 Within 1 month I became more consistent, I was starting to make some money. My friend told me to check profit strategies, risk management, exit strategy and it helped a lot. My pnl was green, I added more funds to my account, made more money and now I don't need to have another job anymore. Of course I have bad days. But after finding the strategy that suit me, trading has become my new job. It's a full-time activity; you need to learn and train yourself, check the charts, the news, never miss a trade, check it carefully, write supports and resistance on the chart and take the best profits from them with an appropriate strategy. Ready to exit in case of emergency and a market change. Now I still follow the signals and also find some by myself. It is really worth it. I really enjoy doing this. It's exciting.

🙌 I have been doing this for a while now, and I am very thankful to have had the chance to meet that person and that group. We are now good friends. Cryptocurrencies and trading have changed our lives.

🤔 So I had the feeling that I could give something back. I had the idea to make those signals available to more people. I wanted to share the opportunity they gave me. My friend and the other traders didn't agree at first. They are not planning to make a business out of it, for several reasons.

1️⃣ First, they don't have much time for that. 2️⃣ Secondly, they are earning enough money and are not planning to become the next Jeff Bezos. 3️⃣ Also, they told me that some people are too lazy to learn that even with good signals, they can be unsuccessful and then complain and blame others for their own mistakes.

🤝 Nevertheless, they accepted my idea but without being involved in the project. I am trying to give others the same chance life gave me. For a modest contribution, you can have access to those signals. I make really often more than that amount in a day, sometimes even in minutes. It is now up to you to learn how to get the best profit from those signals.

📚 Be aware that I won't provide much support except what I bring in this blog and the vip channel. No paid courses to learn trading, no training, nor education will be provided. All the required materials are available online and on this blog. Trading is a skill you have to learn by yourself; the internet is full of awesome learning opportunities. Crypto is full opportunities. You can change your life and become financially independent if you really want to. It will require learning, making sacrifice, and being really involved in your new activity. The choice is yours.

🚀 Remember: "Fortune favors the brave" 🌟

FFT

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