Learn How To Fish
- Thread starter VJAY
- Start date
- Status
Why Is Risk Management Important?
Risk management is the most important topics about trading. Why is it
important? Well, trading is a business of making money, and to make money
you have to learn how to manage your capital and your potential losses.
This is one of the most neglected areas in trading. Many traders are anxious
to get right into trading without choosing the right lot size for their positions.
When you trade without a risk management plan, you are actually gambling.
You are not looking at the long-term return on your investment. Instead, you
are only looking for that "winning lottery ticket."
You can have the best trading system in the world, and still lose all your
money in the market. Risk management will protect your capital from
unnecessary losses and make your account profitable in the long run.
Risk management is the most important topics about trading. Why is it
important? Well, trading is a business of making money, and to make money
you have to learn how to manage your capital and your potential losses.
This is one of the most neglected areas in trading. Many traders are anxious
to get right into trading without choosing the right lot size for their positions.
When you trade without a risk management plan, you are actually gambling.
You are not looking at the long-term return on your investment. Instead, you
are only looking for that "winning lottery ticket."
You can have the best trading system in the world, and still lose all your
money in the market. Risk management will protect your capital from
unnecessary losses and make your account profitable in the long run.
Taking all vps into account , (not in HH HL vp s and LH LL vps ) marked some trading possiblities ?!
View attachment 26464
View attachment 26464
About backtest and Reports ..By Xray bro....
Backtesting for me means below table
But there are two more items which we should check, one is luck factor and another recovery factor
Luck factor: (% of highest winning trade / % of average winning trade). it should be very less, if it is 5 or 7 then system success depends of few extraordinary trades,which is not good !!!
Recovery factor : ( total net profit / absolute draw down) it should be more then 2
Backtesting for me means below table
But there are two more items which we should check, one is luck factor and another recovery factor
Luck factor: (% of highest winning trade / % of average winning trade). it should be very less, if it is 5 or 7 then system success depends of few extraordinary trades,which is not good !!!
Recovery factor : ( total net profit / absolute draw down) it should be more then 2
Live education 
Here trend is UT at yday closing ...today opened gap above VPH normally we need a pvt for entry to start...when this scenerio happens just lower your TF you get any type pivot agg/small enter into trade ...after enter if get any chance to move TSL move one time ...then wait for mpvt as normal way ...its help to pos with trend ...today if I traded normal way to wait for pvt then till this time trade not came....just sharing my style of trade...
Here trend is UT at yday closing ...today opened gap above VPH normally we need a pvt for entry to start...when this scenerio happens just lower your TF you get any type pivot agg/small enter into trade ...after enter if get any chance to move TSL move one time ...then wait for mpvt as normal way ...its help to pos with trend ...today if I traded normal way to wait for pvt then till this time trade not came....just sharing my style of trade...
- Status
| Thread starter | Similar threads | Forum | Replies | Date |
|---|---|---|---|---|
| L | Help me learn AFL | AmiBroker | 1 | |
| F | Learning to Fish | Technical Analysis | 10 | |
|
Learning to Fish with Vijay Sir | Day Trading | 40 | |
|
Learn How to Fish - VJAY | Derivatives | 10 | |
|
What happened to Learn to Fish thread? | General Chit Chat | 57 |