Greetings 🙋♂️
I would like to tell you about the method I apply in the financial market.
▶️Risk/Reward Let me briefly explain what the RR system is for, which you may come across frequently 👇
▶️People get under a lot of stress when buying and selling because they do not want to lose their efforts.
▶️But since they cannot manage their portfolio, they buy and sell with gambling-like movements.
▶️Risk/Reward (RR) system here protects you from further damage and serious losses in positions where you will lose money while growing your portfolio steadily.🎉
▶️Let me explain briefly with an example; 👇
🔸I consider my wallet size to be 1000 dollars.
🔸In every position I will trade, I first determine the amount I will lose and this rate does not exceed 2% of my wallet. ❗❗❗
▶️That means I have $1000 #BTC I will take a trade at parity, I took a trade at 70000, I will stop at 69800 and if I stop, I will lose 20 dollars and my wallet will shrink by 2%. 🤗
▶️So on a wallet balance of $1000, I set my R level as $20. Well, I have determined the amount I will lose, what should be my profit rate?
🔹Here, your trading ability comes to the fore, but according to my own strategy, I aim for a minimum of 1.8 R in a transaction where I risk 1 R and I usually close the transaction around 2.2☑️
▶️You will say, isn't it a little to trade with 2% of the wallet?
▶️No it's not. First of all, money is not big or small, money is money. You must understand this. This system is designed to protect your wallet, but let me summarize it with the worst case scenario.⬇️
☢️You received 10 transactions in June and 7 of your transactions were stopped and the money you risked is 2% of your wallet, which is 20 dollars.🔽
🔹In this case, you lost 7 * 20 = 140 dollars.☑️
🔹If you become TP with 2.2R in all 3 transactions, you will earn 3 * 44 = 132 dollars.✅
▶️In this case, in a bad scenario such as 7 stop and 3 tp in the transaction where you buy 10 units in June, your wallet loss will be minimized and you will lose 8 dollars from the 1000 dollar balance, which is less than 1% of your wallet. ✅
▶️You can reproduce the examples yourself, there is a lot of informative content on this subject on the internet. I tried to explain as much as I could.
⛔ Your priority should be not to make money but not to lose it, and please avoid gambling-like behavior. ❗
Good luck 🙋♂️
