Current Risk /Money Management Assessment
Capital size : $40
10%
40x10/100 = $4(margin)
Number of trades : Capital size/ margin
: 40/ 4 = 10 trades
Margin: 4usdt
Number of trades : 10
Risk to Reward = 1:2
Risk = 1
Reward= 2
R:R = 2
Lost = 6
Won= 4
Loss = 1x 6x 4= 24usdt
Profit= 2x 4x 4= 32usdt
Net Profit=Profit - Loss = 32-24 = 8usdt
Total Profit = Capital size + Profit
= (40+ 8)usdt = 48usdt
Summary of my assessment:
Capital Size : 40usdt
Margin: 4usdt
Number of trades : 10
R:R = 1:2
Margin type : Cross Margin
Minimum Target : $4
Maximum Number of trades : 3
Kind of trader: Swing Trader
Timeframe : 4hr and 1hr
4hr is my main timeframe where I will get a glimpse of the entire and 1hr is my entire timeframe so if I don't see any entry on 1hr I can flip to 15mins to pick an entry.
Trading Plan : my trading plan will cut across the following criteria:
*Trading strategy/ prowess
* Risk / money management ie
-Low leverage
-Substantial margin
-Fixed Risk : Reward
-Cross margin
* Trade management ie
-Stoploss
-Target
-At a point I will move my stoploss to entry to break even and when I see price moving in my favour I will lock some profit and allow the trade to run .
- Most importantly I will exit my position when my target is hit but if my target is not hit and it is remaining some few distances away from price I will exit base on confluences.
* Psychology
- I will manage my emotion properly and I will stick to my trading plan and be consistent with it ..
- I will stick to the rules and guidelines from my trading plan so that my emotions won't take a better part of my decision..ie I wont be over exicted when I win a trade , I won't revenge trade ..I will be consistent with my leverage , R:R irrespective of the outcome/ condition of the market., I won't allow the money I want to get be my main focus cus I will be emotional attached if I focus on the money along the line ...Courtesy Mr OG.