- Mark Roberts
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calculation comes out one point one nine otherwise known as nineteen rounded up to twenty percent we have a two to one ratio on this trade that is a good ratio really good ratio that means you can actually be wrong 50 of the time. still make loads of money if you win every time in a two to one ratio you’re going to be making money this is a great risk reward ratio trade but you may say well what is that profit. loss you’re just picking numbers out of the air yes. no we’re using support. resistance for these levels it’s all that we can go off the support. resistance that we found at these levels there’s support down here we can see that there’s also resistance here. that’s what we want to break out. then the next resistance is the big swing high that we’re trying to trade off it’s all that we have these are the numbers the support. the resistance the trends that we have to go off back in mega app beeda. i’ll show you exactly how to put these orders in firstly for the buy our entry we have to place a limit order. the limit was uh 33 437. we come here 33437 how much you want to trade is up to you if you want to trade big boy bucks. like 10 bitmega app beeda a trade probably not best 0.05 bitmega app beeda okay that works out we’re trading 1600 bucks place that limit order place that buy or just go ahead. do a market order but you might get a worse trade next up put your stop loss in remember that’s a stop loss order come back to the chart right here go over to sell because you’ll be a seller for this specific order stop limit right here thirty thousand more or less thirty thousand thirty thousand you’re telling the system that if the price gets down to 30 000 sell out okay you stopped out of your trade trades over make sure you put the same amount as you went long for. exactly the same if you’re trading 0.05 of a bitmega app beeda trade that .05 of a bitmega app beeda you see the total is 1500. yeah we would have lost a couple hundred bucks if the trade moves against us then put in another sale order remember a take profit is simply a stop limit sell order above our trade because this is a take profit come back to the order check the system how much is our take profit our take profit is forty thousand forty thousand then put the limit as forty thousand same amount of bitmega app beeda press that cell two thousand dollars you’d get again if you’re trading 1600 bucks you would have made 400 bucks really good trade. that is how you put it in the system all of your orders that aren’t executed or haven’t gone through yet will be down in your open orders you can view them cancel them. if they have gone through they’ll be in your order history let’s go back to these risk calculations absolutely everything in here has been input on to finance let’s go back to mega app beeda see how this trade went remember we’re in around this level stop loss down here want to take profit around forty thousand here’s the next stage trading wouldn’t have got up there. thirty eight thousand five hundred that was intraday didn’t finish there but didn’t quite meet our take profit again we’re getting a big break out here. there you go bang we got that 40 000 here we would have been traded out 40 000 near that previous swing high. we would have lost out on money now this is one of the downsides. i would say of putting in a definitive stop loss. take profits is you know you’re going to lose out on longer term profits possibly but the more lacks. loose you are with these orders. the amount that you’re trading it’s more risk. it’s up to you but we would have missed out on this. also this but we would have made very decent money. then you can go again with a different trade later on you can let your profits run you don’t have to put a take profit in there you can actually just raise your stop loss level to make it. that you will make money out of the trade. you know you won’t lose because your stop-loss level can now raise up. if you don’t want to put a take profit in there you don’t have to you can run your winners if you want but this is just to show you. you can make that choice as you want next example what is the trend we’re in an uptrend that is obvious the 200-day moving average we’re way above it we’re obviously in an uptrend. we know the trend right now what is the price action this is a bullish trend we know that price broke out once you can see that here sellers came in price found lots of support moved up sellers came in again right here this is right for a breakout because we can see what is known as a small mini consolidation right here after the big move see this day is a huge move this day is a huge move. we just traded this one we just traded this move right here we went in here. then we sold out around here then we have another huge move up to the upside again you might have wanted to trade this but. I’m doing this after this pullback we have a huge bullish engulfing right here absolutely huge. you might have wanted to go in at that point as well let’s say you didn’t for whatever reason because it had a sell-off right here then you had the big sort of recovery day kind of volatile you might want to stay out of that market but then we have consolidation like. i said consolidation is key let’s see where the support is support’s here right we can see that we have one two days of support right here after a big move up you’d expect sellers to be coming in right huge move up sellers are coming in yeah they did but they found huge support right here there’s definitely buyers in at this price around 44 000. price went up came down definitely found support here again sellers pushed it down this is definitely an area of support where is the resistance definitely here we can see the price was coming up. kind of found a little bit resistance here but also here one two days of resistance absolutely definitely resistance right there let’s move in on this can you see the candlestick chart like we said classic hammer candlestick right here it’s not absolutely perfect like we saw in those diagrams real charts never are you can see a huge down move seller’s trying to push it down moving up right here definitely a hammer that’s a bullish move telling us that buyers are pushing it up. for this session it finished green we have the support we have the resistance we have the trend. we have the candlestick pattern telling us that we could be in bullish territory let’s come here to trade remember we enter at the start of the next candle we place our stop loss one atr from the price that we get in that. we place our take profit near the last swing height these are the entry calculations on this trade open at 48.80. you can see that right here next up we need to see the atr for the stop loss 4 000. our entry level 48 800. the atr is 4 000. that gives you 44 880 for our stop loss. then our take profit we could say around 57 000 near the latest swing high. remember risk calculations entry price minus atr equals 44 800.. that is our stop loss just. happens to be really near levels of support as well which is super great. remember we have support here. support here really great that our stop loss is at or just a little bit below that to give us some breathing room just in case it comes down. then moves back up our at-risk position 4 000 divided by 48.80 is 0.08 otherwise known as 8 that is our at-risk position because we use the level of support. the atr you’re risking eight percent here thousand dollar trade you’ll be risking 80 bucks profit calculations our take profit divided by entry price 1.17 otherwise known as 17 a two to one ratio yet again this is our take profit here is our area of loss here is our area of profit. i like this ratio it’s a two to one profit ratio let’s go back to the real mega app beeda chart. see how this trade did remember.