All language subtitles for TraderFX9004 - 3

screenshot those charts. Go
back and mark those charts out

further ado let's dive into
stop loss orders and position

$1 per trade. Every single time
to achieve the successful risk

seventy5 cents. So, how do we
actually make sure to risk that

going to be right every single
time. So that is how we make

loss orders begin to come in.
Position sizing refers to the

So, when we get into a loss and
the trade starts going against

Hopefully you found some value.
Take some notes. I mean

will lose if it hits the stop
loss okay and that is a good

other areas come in. This is
where position sizing and stop

the trade goes to the target we
win say three times what it

versus reward approach. I'll
see you over in the next video.

if you need to. And I will see
you in the next video when we

just continue go and go and go
and go and go and we're not

size of the trade that you put
on. So, how big how much money

sizing and see how we can
actually go about risking this

reward so we're risking $1
there to make two dollars

example of a risk versus reward
trade okay that's 2. 75 risk

moving into in the next video
in this course. So without

because if we don't use a
stop-loss order, a loss can

short. Now, that is how we
actually cannot avoid losing

point and the target is
significantly bigger than the

us, a stop loss order is going
to be used to cut the loss

buy point that's where we buy
the market okay the stop loss

is the bottom of that great box
and the target is up there in

order that cuts off a losing
trade when it starts to happen.

talk about the next step in
risk management stop loss

understand that just yet most
likely but that is what we are

sure we risk the $1 per time.
Of course you're not going to

is actually going into that
trade? A stop loss order is an

one per trade every single
time? Now, this is where the

risk versus reward on a chart
so the middle point there the

the highs and as you can see
that space between the buy

allows some leeway for losing
trades. Here's an example of

space between the buy point and
the stop loss now that means if

why we need to this into our
trading and how it really

a nice realistic risk versus
reward examples that show you

shows a 35% win rate where we
start off with a terrible

at the green bar we can see
there fifteen wins and five

time we win 1234 trades we are
back up over where we started

I'm going to go up from where I
was even before I won that

a lot of beginner traders
struggle with is stress from

so you can see that risk versus
reward in play there so that's

$500. I thought I'd include
that one there because you know

the you know different risk
versus rewards. So if we look

end we still end the 20 trade
process with a profit over

a win comes around it's going
to be very very nice win that

have a 55% win rate 11 wins
nine losses coming out just

trading processes.

always going to achieve the
targets that we want to hit so

two charts we've spoken about
it's easy to see why right I

still need to learn to trade
with accuracy. We cannot just

losses. So that's where there's
75% win rate. We make a nice

streaks I mean that's eight
lost trades and then by the

$3 so now we're up to $4 profit
even after another losses we

also does is act as a huge
stress reliever. Now something

first trade so it's a big
stress reliever knowing that

win rate as you can see we
still come out with around $1,

exit a trade right so we may
lock in a 1 to 0. 5, which

don't get stressed if I lose a
trade because I know the next

have to close out one to ones
sometimes we're going to lose

know a few different random
lines on here which are showing

them we'll lose a couple trades
in a row sometimes we might

the basis of all our technicals
in the basis of all of our

healthy profit of you know
almost $25 00 dollars. So the

different amounts of wins and
losses. Uh the win rates and

So risk versus reward is not
going to be perfect we're not

that just shows you what I was
saying about the stress relief

this risk versus reward
approach just because the

it is however based on that
still the best way to ensure

500 in profit okay and that's
with a 50% win rate we then

accuracy rate and we can still
make money on a consistent

example that baby blue example
this one's a good one as well

success because without it you
are essentially gambling and

wipes clean a couple of losses
at least So this chart has got

better win rate than 33% we can
make substantially more

a one to three regularly now
this is going to be harder to

some examples of realistic risk
versus reward. So we've got you

just hoping to win as much as
you can when really we know

like this we allow even with a
50% win rate as you can see a

trading now becomes a process
rather than actually having to

risking $1 to make two. And as
we've said because we can't win

market has movements of its own
is not a perfect way to trade

profits. Now the red line is
showing where we are doing that

going to lose my money I've
lost some money blah blah blah

losses are inevitably going to
come in what risk versus reward

you see after that we're
looking at the blue one now by

over $1, 000 in profit there
and then of course the bottom

losing streak taking us down
almost minus $1, 000 and in the

the risk versus reward approach
the 50/ 50 1 to1 approach has

large part of this course. But
it's good to adopt and very

very important to adopt this
risk versus reward approach

are not opportunities that
we're going to taking loads but

reward the harder it is to
achieve. So if we're going for

right we know that we can even
sit through these these losing

risking one to make one
essentially that coin flip

would be you know 50 cents
profit for $1 risk now these

if we are always targeting 1-3
that doesn't mean we're going

what I'm trading now with this
risk versus reward approach I

basis. Uh it's important to
note though the higher the risk

can win a trade and then I
could lose two trades in a row

more effective. It allows for
even more losses and can still

losses right you lose a trade
you start panicking damn I'm

actually allows us to lose
trades and still make money. So

before we even get that far
because this is going to lie in

the way risking $1 to make $3.
what you'll see after this is

don't get stressed at losses
and as you've seen from these

trade which was a win takes us
up to $3 profit and then what

second example the red bar 10
wins 10 losses, so that's a 50%

to hit one to three all the
time sometimes we're going to

achieve than of course a one to
one or a one to two. So we do

very very good and put me ahead
right even in this instance I

see we start with the $1profit
two losses takes us to negative

when we win only 33% of our
trades we are still up to that

row we still are up $1 in
profit so we win again we win

every trade never will. We must
follow these risk versus reward

course is why we're going to
talk about analysis for quite a

the risking $1 to make two now
in this example here our first

gamble into the market any
which way and hope to make

with this approach we can trade
with you know around 33 to 35%

trade is going to be a the next
winning trade is going to be

seven trades we're actually
down whereas we were up $5 on

further than this right we can
actually push it further than

win rate are skewed with the
risk versus reward and it

money. We do need an edge. We
do need some accuracy which of

we lose two trades in a row
right so these two losses in a

even have to close a negative
RR because we have to early

$1 our win then just takes us
back to break even and then two

approach with the same win rate
as the 1-3 risk reward and we

accuracy rate and we can still
come out with the profit. That

win loss win loss win loss
scenario we allow consistent

bring you out to the same
amount of profit. Now you can

the effectiveness of risk
versus reward and just really

that puts us at $1 in profit
right so then our next trade

essentially two steps forward
one step back and when we trade

and so on and so on and in the
end we are still after seven

allows us to go in
realistically without trying to

really shows you there how it
actually puts us ahead and

account growth through the
losses, through the ups and

$5 mark. So if you can risk
$one to make $3 this is even

dollar basically breaking even
at where we started. So that is

and I'm still not concerned
because I know when I win again

rules to win long term. Now
risk versus reward can go

win every single trade you can
accept losses knowing that when

this blue bar here where we are
risking $1 to make $2. we can

trading like a coin flip where
is a 50/ 50 chance that we win

are at $2 profit still. So you
can see after seven trades even

which is a loss we are back at
break even then trade we win we

downs. So it allows us to win
trades with only a 50 percent

imagine if we trade this one to
three approach and we have a

more losses takes us down to
minus $2 so at the end of the

loss takes down $1 a win takes
us up $2 as you can see it's

us actually down by one minus
$1 so you can see there how the

see after our first trade which
is a win we are up $2 in profit

which is a win again we win $2
so that takes us up to $3 a

when we just trade with the one
to one we are only up at that

1-2 risk versus reward approach
we are up to $5 profit whereas

after the seven trades in this
example where we trade with the

with $1 after our first win
then after our second trade

so then when we lose a trade we
lose one of those dollars and

win every single trade and
still achieve consistent

first trade we start we make a
dollar right so we start off

and lose and if we win we win
$1 if we lose we lose 1 okay.

trades still just sitting with
$1 a profit now in the second

so we start off with a dollar
as second trade we lose that we

are back up to $1 profit trade4
we lose back down again so on

account growth and we achieve a
consistent account growth so

and a consistent account
growth. The term holy grail

reward focused approach so this
red bar across the bottom we

there is a holy grail strategy
this is it so how does it work

the difference between risk
reward trading and a non-risk

are looking at risking $1 to
make $1 so this is essentially

inevitably happen, while
maintaining consistent progress

are down to nothing so okay
right profit wise sorry so

strategy is thrown around a lot
in the trading world and if

the idea of risk versus reward
is to risk $1 to make $2 plus

okay and what we've got here is
a chart which essentially shows

versus reward approach and all
of the other areas of risk

risk reward process, this RR
approach allows us to take

losses regularly, which as
we've spoken about, will

reward. Risk versus reward is
at the center of my trading

Everything we do in the market
revolves around this risk

RR, that's why I'm standing for
risk versus reward. So this

strategy and it is going to be
at the center of yours.

management run in line with
this RR approach. So when I say

Hello, so in this video we're
going to talk about risk versus

orders.