Ready to hold the support zone to make a new move higher?
? Welcome to TradeCityPro Channel! Let’s continue with another training session after the first part, which was about Capital Management, and dive into the important topic of Risk Management. ?️♂️ Risk Management as a Profession One of the heaviest responsibilities, riskiest roles, and most demanding efforts in studying or working in a company lies in the field of Risk Management. The job of risk management exists in various fields, including banking, insurance, investment, and consulting. People working in this field are responsible for identifying financial, operational, or project-related risks and designing strategies to reduce or manage them. The income of a risk manager varies depending on the country, industry, level of experience, and scope of the project. In developed countries, risk managers in financial industries can earn high incomes. On average, in the United States, the annual income of a risk manager ranges between $80,000 and $150,000. ? Risk Management in Financial Markets Risk management is one of the most important skills and concepts in the world of finance, business, and even daily life. It helps you identify, assess, and control potential risks to avoid unexpected losses. ? What is Risk Management? Risk management is the process of identifying and assessing potential threats and then taking actions to reduce or eliminate their negative impacts. This process helps you make more informed decisions and protect your capital or resources from unnecessary risks. In financial markets, risk management means identifying, evaluating, and controlling risks related to investments to prevent major losses. This includes setting a Stop Loss, diversifying your investment portfolio, using leverage responsibly, and sticking to your trading strategy. The primary goal is to preserve capital and optimize profits by managing potential risks. ? Why Should We Manage Risk? Before diving into the explanations, let’s illustrate the concept of risk management with a life example: Do you give the same kind of gift to your parents or partner as you would to a distant relative or a friend you recently met? Of course not! Everyone holds a different level of importance in your life. Now let’s examine this in financial markets. It’s better to have different risk management strategies for your setups and strategies based on market conditions. Categorize them into different groups using your Excel data and setups. As a side note, in this training, when we talk about risk, we mean the amount of capital you will lose after entering a position and hitting your stop loss not just the amount of capital involved in the position. Additionally, if you don’t have a written trading plan, strategies, or if you don’t document your positions in Excel or any other platform, this will not be beneficial for you and may result in future losses. ? Implementing Risk Management in Trading We need to categorize our trades based on market conditions, daily circumstances, chart setups, strategies, win rate, written trading plans, and our trade entry checklist. Here’s how I categorize trades: Very Risky - Risky - Normal - Confident 1️⃣ Very Risky For this category, it’s better to have a separate account purely for testing, FOMO, or experiments. These trades have very few confirmations (1–2). Trade with less than 0.1%–0.25% of your main capital in this category. 2️⃣ Risky These trades are opened in your main account because they generally meet some confirmations but lack key ones. For instance, you anticipate a resistance breakout and go long before confirmation. These trades usually have a small stop loss, leading to higher risk-to-reward ratios. Use 0.25%–0.5% of your capital for these trades. 3️⃣ Normal These trades have most confirmations but might miss a few. For example, out of 10 items on your checklist, 6–7 are confirmed. These form the majority of trades. Be cautious about the win rate of this category, as it should be higher than your overall average. Use 0.5%–0.75% of your capital here. 4️⃣ Confident These trades have all major confirmations, and your strategy’s triggers are activated. Additionally, 8–9 out of 10 items on your trade entry checklist are confirmed. These are your most confident trades. Use 0.75%–1% of your capital for these trades. https://www.tradingview.com/x/e3Udaxbv/ ⚠️ Daily Risk Management Don’t use your entire daily risk limit at once. For example, if your daily risk is 1.5%, keep some risk in reserve in case your first trade hits its stop loss. This allows you to recover and even profit later in the day. Focus on normal trades. These should form the majority of your trades since they maintain a healthy win rate. Risky trades might lower your win rate, while confident trades occur less frequently and won’t significantly impact your overall win rate. ? Building Risk Management and Consistency Risk management based on your checklists and spreadsheets can take around 6–8 months to develop, starting after learning technical analysis. In the beginning, allocate 0.5% risk per trade while documenting your trades. This will prevent unnecessary self-blame for stop-loss hits in risky trades and help you trade confidently with a solid plan. ❤️ Friendly Note If you don’t follow these principles, trading might become an on-and-off journey, leading to frustration and eventual market exit. In the end, your money will go to traders who adhere to these rules. If you’ve read this far, congratulations! Unlike misleading social media ads, this guide offers genuine, practical insights. Be proud of your effort and focus on applying these principles. Let’s progress together and elevate our lives through financial markets. ?
Support and Resistance Levels: Support Levels: These are price points (green line/shade) where a downward trend may be halted due to a concentration of buying interest. Imagine them as a safety net where buyers step in, preventing further decline. Resistance Levels: Conversely, resistance levels (red line/shade) are where upward trends might stall due to increased selling interest. They act like a ceiling where sellers come in to push prices down. Breakouts: Bullish Breakout: When the price moves above resistance, it often indicates strong buying interest and the potential for a continued uptrend. Traders may view this as a signal to buy or hold. Bearish Breakout: When the price falls below support, it can signal strong selling interest and the potential for a continued downtrend. Traders might see this as a cue to sell or avoid buying. 20 EMA (Exponential Moving Average): Above 20 EMA(50 EMA): If the stock price is above the 20 EMA, it suggests a potential uptrend or bullish momentum. Below 20 EMA: If the stock price is below the 20 EMA, it indicates a potential downtrend or bearish momentum. Trendline: A trendline is a straight line drawn on a chart to represent the general direction of a data point set. Uptrend Line: Drawn by connecting the lows in an upward trend. Indicates that the price is moving higher over time. Acts as a support level, where prices tend to bounce upward. Downtrend Line: Drawn by connecting the highs in a downward trend. Indicates that the price is moving lower over time. It acts as a resistance level, where prices tend to drop. Disclaimer: I am not a SEBI registered. The information provided here is for learning purposes only and should not be interpreted as financial advice. Consider the broader market context and consult with a qualified financial advisor before making investment decisions.
**Chart Analysis:** - **Elliott Wave Formation**: Wave 1 is complete, and we’re in Wave 2’s corrective A-B-C phase. - **Wave B Opportunity**: A BUY zone (green) has been identified, based on Fibonacci retracement levels and technical confluence. - **Wave C Target**: After Wave B completes, Wave C provides a future sell opportunity to secure profits from the long trade. - **Wave 3 Potential**: Wave 3, as per Elliott Wave theory, is typically the longest and most powerful wave. Target levels have been marked based on Fibonacci extensions. - **Invalidation Level**: A break below will invalidate this setup. **Trade Plan:** - **Entry**: Place a buy limit order within the highlighted green zone (Wave B completion). - **Targets**: - **Target 1**: . - **Target 2**: . - **Stop-Loss**: Below the invalidation point to protect capital. **Rationale:** - **Confluence Factors**: Fibonacci levels align with key support zones. - **Market Context**: Bullish momentum aligns with overall market sentiment. **Disclaimer:** This analysis is for educational purposes only. Trade at your own risk.
The Dollar has melted down to our second POI, down to $107 & so far has bounced back up. It is possible that price might still drop a little lower, but overall I expect the Dollar to turn bullish again. We've seen Wave 4 correction complete, followed by a 'BOS' above Wave 3 high confirming the bull run will continue. Retest of supply zone completed, now time for the move up to continue?
Currently, Litecoin is encountering formidable resistance at the $114 threshold, which has proven to be a critical barrier to upward momentum. Beyond this level, additional resistance can be observed at $140, suggesting a challenging climb for any bullish movements. On the downside, significant support is established within the $96 to $97 range, providing a safety net for potential dips. In terms of strategy, we might consider initiating a long position if the price convincingly breaks above the $114 resistance level and sustains its position there for a reasonable duration. This confirmation would indicate a possible bullish trend. Conversely, should the price decline below the $96-$97 support zone, it may warrant a reevaluation, potentially leading to the initiation of a short position as this could signal bearish sentiment taking hold in the market.
The crypto market is shaking off selling pressure sparked by the launch of DeepSeek, an innovative AI model that hit the AI sector hard. Amid this turbulence, XRP has rebounded impressively, recovering from a dip below $2.7 to climb 10% in the last 24 hours, trading at $3.15. Notably, this surge comes as trading volumes drop by 18%, hinting at passive bearish pressure and setting the stage for a potential breakout. XRP continues to trade within a bullish pattern, supported by massive whale activity. Recent data reveals that whales accumulated nearly 120 million XRP during the dip, with 25 million XRP purchased on Upbit and moved to unknown wallets. This accumulation underscores growing confidence among major players, aligning with bullish market sentiment. Technical indicators further support the bullish case. XRP’s MACD and DMI are primed for a bullish crossover, signaling momentum for a breakout. The ADX remains low, suggesting that the bulls are in an accumulation phase, while the on-balance volume is incrementally rising, confirming strong buying interest. The Chaikin Money Flow indicator, heavily above zero, signals strength in the ongoing rally. XRP is currently consolidating near the 0.786 FIB level at $2.77. A breakout above this zone could see the token surpass the 1 FIB level, targeting a new all-time high at the 1.2 FIB level of $4.18. With whale activity, bullish technicals, and improving market sentiment, XRP is positioned for a strong breakout. Will this rally push XRP to new heights? The next few days could be pivotal.
As we can see the overall trend is an uptrend, the break above neckline and new higher high confirmed this. However if you notice the market failed to make new higher highs meaning we have sellers participating and they might push the trend down It would be advisable to stay away from the market until we can clearly see who is in control of the market between Bulls and Bears Now let's talk about the best entry point here, a break above Resistance would mean buyers regained total control of the market and we should look for buys here and If the market breaks below the Solid Low then we have our confirmation that sellers are in control and we should look for sells so all in all it's best to wait and not chase the market as that can end in negative results. Good luck Traders
BTC might keep pumping as it has bounced from the bigger timeframe trendline, although might retrace to the 618 fib level again. Seems there is a rising wedge forming. This is a nice low risk high reward setup for a potential short trade.
Analyzed and observed important break of structure and Fractal breaks will it hit my TP?