教育

Trade everything that moves. The mechanics of the position set💡

Trading on the market can be regarded as a full-fledged struggle for the right to survival, where the main enemies are two factors, infinite randomness and time.
By adapting your positions to what is happening, you risk becoming that very accident and you can only fight with time.
The mechanics of the position set includes a theory about the direction of the price.

Directivity theory
The essence lies in the continuous direction of the price when the distance from the selected zone is inevitable. It is important to highlight the level and work as soon as the price reaches these values.

How is the usual set of positions made
Opening a position in a certain direction, as soon as the price goes against the desired forecast, closing with a stop loss, abandoning the transaction, searching for a new entry point, and trying to predict the direction, is an extremely difficult task.

An example of a set of positions taking into account the theory of price orientation and risk control R
The mechanics of position recruitment are based on clear and simple principles of operation, flexible thinking, quick adaptation to market sentiment.
If you start to apply these mechanics in practice, you will notice how at first glance simple things are difficult to do the practice. There will be a feeling that nothing will work, there is no logical explanation for this, eventually, everything will be lost and a big chaotic high-speed car will crush you.
This is the basic principle, as long as the market is such, you have very little chance of the death of capital. While large funds, investors, and someone else is fighting among themselves for huge movements, we do not necessarily have to accept their rules of the game and play on their territory in predicting the general and long-term direction of the market.
You should think with your head and look for benefits primarily for yourself, taking into account all the nuances of what is happening.

But how to be flexible?
Constantly turning over a position is completely unprofitable, in the final execution, losses exceed the target profit. It is not at all clear where and when to put stops, overturns, and takeaways.

This is where the risk control system R will help us

She kicks down the door, breaks into our strategy, and, as the most important puzzle, falls into its rightful place!

From my experience, the optimal risk per trade for a beginner is $10
With a smaller volume, there will simply be no motivation to work.
But it is worth remembering that the deposit should not be extremely small, as it will not withstand a series of unsuccessful transactions
For example, if the deposit is $100, 1R= $10, the power reserve is 10 stops, this is extremely small
But with $ 400, you can already try, since the probability of getting 40 stops in a row is extremely small

Example of risk calculation for a $1000 deposit

The risk is reasonably low
R=$10
Power reserve 1000/10=100
100 stops

I recommend having a power reserve for the 200R series, from practice I can say that for training and the first results will be enough.

All calculations are carried out without taking into account the commission

A few tips for improving efficiency:

- Do not risk your funds in vain, TradingView provides an excellent opportunity for paper trading (demo) completely free of charge, where you can try out any of your ideas and strategies.
- Search for highly volatile tools and work with them.
- Analyze the broker (exchange) for conditions, commissions play a particularly important role, pay attention and look for more favorable conditions.
- Before you start trading, you should have a clear action plan, the most important component of which should be a risk control system.
- Your stop should be tied only to the mathematical component of the transaction.

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