Trading Anti MC dengan Money Management || Anti MC Trading with Money Management
After we cut loss, the market goes back again It's because we focus on profit, not trading system We must make a trading system How? In order to make a trading system trading system is like our game rules Each work has SOP If we're entering a restaurant, there's SOP When we enter, they serve the menu Then we order and it's processed There's SOP. We can't just go to the kitchen and order a food Same as trading, there's SOP, trading system In trading system, the main one is how to order Know when to order buy or sell, that's the main thing Second, we must know what to do when the market turns, recovery or risk management If we know the way to order and recovery, even if the market goes up or down, we don't care Don't be a fortune-teller, thinking that it's going to up to here Focus on the process and follow the market direction We don't have the power to control the market So, we only can follow it. What matters is know the technique and chance We'll teach you about how to order later For the recovery, if we analyze that the market will go up Turns out the market goes down after we buy This is where recovery and risk management is useful No one can read the market 100% accurate We only read to find the highest probability The biggest probability is for reducing loss If we're used to it, then there's profit chance even the market goes up or down It's just we must be sharp in reading and ordering We'll discuss it in technical What matters is we know the mindset In trading, we must focus to the process The process is about analysis, recovery, and etc. Then, make a trading system. We'll show you how later This is the overview. Trading is easy if we mastered it
First, know the money management and risk management then know the way to order and recovery. Not just buy and sell, the process is long We must analyze, observe, and consider the plus and minus points If the market turns, we must have a recovery simulation This is the overview. Let's go back to money management If our budget is 2000, take 1%, so it's only 20 dollars It's too small. That's why we must know the consequences If we work in a company and we're inexperienced don't ask for high salary, we'll be a laughing stock Like the process. If we want to work or open a business let's say we sell meatball If the usual price is 10000 and we sell for 30000 There's potential, but no one would come there If we sell meatball and no one's buying, what do we do? If the usual price is 10000 and we just open it, reduce the price 8000 or 9000. Reduce it. Don't just follow the experienced ones Sometimes people just watch the big profits Same as selling anything, if the price is unreasonable it's fine because food price is relative 5 meatballs, some sell for 10000, some even sell for 50000 Why? Because this one is already famous The experience is high. Same as trading. Say, the budget is 2000
For professionals, getting 100 dollars with 2000 dollars is easy But, we must realize and measure it ourselves So, be realistic. Since we're not experienced, realize that With time, after we're improved, the profit will follow it Let's go back to 2000 so there's calculation 2000, if we take 1%, it's 20 dollars a day Then, what about the lot? What lot? Then how many orders should we do? We must have a plan Back to our budget, 2000 Let's say we use XAU pair, gold Remember, the gold daily movement is around 1600-3000 pips 3000 pips is based on the 5 digit behind the dot so you don't take it the wrong way In EURUSD, we use broker that shows 5 digit behind the dot Let's measure this green, there's 257 in the middle then it's 257 pips There's 4 digit broker, but in the present, usually they use 5 digit If you use 4 digit, divide it by 10, so it's 25.7 I use the 5 digit, so it's 257 pips, including in XAU Let's measure a thick candle, this highlighted one From top end to bottom end It is 862 pips Now, let's go back to the topic Remember, the usual daily move is around 1600-3000 It's for normal condition. If there's high impact news, it could go around 3000-6000
If the market is extreme, it could even reach 13000 the maximum It's conditional. The most often one is this It means the daily move from top to bottom is around 1600-3000 It's for adjusting our durability and budget So, when we do short-term trading, day trading Try to clear it in a day Clear means there's no transaction How? Learn and train to exit quickly Before we go there, there's durability list It's for determining the lot that we'll use First, the safe durability is 50000 Medium is 20000 Third one is 10000 pips. The high risk is 5000 pips Let's learn the safe one first If we use the safe one and it's hard to get 20 dollars We can lower it to the medium durability Surely we'll achieve it faster with this, but we must control it So, I'll take the middle one, the 20000 We prepare 20000 pips for the durability We won't go MC in a day if we understand the risk management What matters is know the durability first Let's prepare at least 20000 durability Now, how to calculate the lot? We can't do it randomly since it's related to durability The durability is 20000 pips The budget is 2000 dollars So, 2000 : 20000 So, the lot is 0.1 It's the maximum lot We can divide this to ten 0.01 Or five 0.02
If we don't want to use too small, we can divide it into two 0.05 0.05 is not that high In extreme condition 0.05 is still can be covered by 0.1 The distance can't be too far, around 500 pips When we buy, then the market goes down 500 pips We can cover it. If it goes down strong and breach the psychology level, we can sell with 0.1, here We can leave the buy or close it. There's recovery
Let's calculate it if we use 0.1 lot Let's calculate so it's safer and we can achieve what we want because our target must be adjusted since we're inexperienced The lot is 0.1 If we divide it into two 0.05 Don't use random lot, use that we usually use For example, 0.05, 0.04, 0.03, and 0.01 We use 5 numbers, from 0.01 to 0.05 Use these numbers every day Don't use other number, like, 0.08
If we never use it, don't use it so we can master it more For me, I usually use 0.25, 0.55, 0.75, 1.25, and 2.01 I never use other numbers When the market is normal, we use this one In a trend, we use this one When it's at the peak, we use this or this to take the chance Try each number character for at least 100 times I don't mean in a day, but cumulatively at least try with 100 transactions with different lots Try those lots at least 100 times each So, you'll find the difficulties there too Let's use the 0.05 first Two 0.05 The target is 20 dollars a day If 20 dollars is divided with the lot, 0.05, we need 400 pips a day 400 is standard and easy to achieve In gold, if the target per transaction is 100 pips then we only need 4 transactions It's if we use this lot It means if we use the maximum lot, 0.1
it's faster, we only need 2 transactions with 100 pips for each transaction, it's easy 100 pips is small move, but we must know the time and move When the market is not crowded, we close even though it's not 100 yet When the market is crowded, we can take more So, we must understand the time and volatility Time, there's Asia, Europe, America, and where these 2 meet Asia is in the morning, 6 a.m - 1 p.m The asia market usually is calm and not so crowded Now is still Asia market, so the moves are small like these ones Let's see the yesterday. This is also Asia When Europe is starting, the candle is starting to be long We must understand each market condition What time that suits us? Asia, Europe, or America? It depends on each trader Sometimes someone can only do it in the morning or night Each person has his own business which affect his trading time Asia market is small. At 2 p.m, Europe is starting to enter Europe enters at 2 p.m until 10 p.m America starts to enter at 6 p.m 6 p.m - 3 a.m
So, there's a crowded market when Europe and America meet What time? Usually it's around 7 p.m - 10 p.m That's the peak It depends on how we know the market character that suits us If you like the Asia, morning, it's fine Or we can do it in all time, but don't take too much profit in Asia, for example For Europe, take around 100-200 I mean in the Europe-America market If it's above 12 p.m, I recommend you to take a break Don't do trading after midnight If possible, clear the transaction before 12 p.m so we can sleep well We don't have a burden Watch the time and volatility. Volatility means the ups and downs
Usually the volatility is high when it's in the Europe-America time So, getting 100 pips is so easy Especially when the market starts to move long, 100 is easy Any question on money management or time determining? Don't be hurried, follow the process. Do it step by step Next is risk management In trading, nothing is absolute The only certain thing is loss Why? After we order, there's spread It's a loss already. So, loss is a certain thing How to minimalize the loss? With risk management. How? We can do risk management by percentage Usually we take 2-5% of the budget If the budget is 2000 and we use 2% risk, it's 40 dollars When the minus reaches 40 dollars, we close it If 5%, it's 100 dollars. Depends on how ready we are to lose it
If we leave it, it could explode and run out So, the main thing to do is limiting the risk It's if we use percentage Or we can use pips. If in gold, it's around 400-500 Around 400-500 pips. The maximum is 800 pips If the lot is 0.05, 500 pips is 25 dollars
If we use pips, it's smaller than percentage We can apply what suits us. That's the point This is the most important thing to limit the loss Take around 400-500 pips So, the budget won't run out because we already limit the risk We can leave it until 2000 pips. If we use 0.05 lot, it's 100 dollars We leave until it's 2000 pips. If we use 0.05 lot, it's 100 dollars. But, we don't recommend it
It's too high Don't take risk that's too high We can use it early. But, our order way must be right first, for sure If not, we could be trapped in a long floating That's the lesson for today We'll discuss technical next. Reading candle character, each move For the practice, we'll always guide you so you understand Good morning and see you next time
2021-08-17 07:27
