[00:02] in this short video, we'll talk about risk management, analyze how to open a calculate its volume. I believe that the main problem why
[00:14] many people constantly fail and will continue to do so is the wrong approach to opening trades. They don't control the risk because, first of all, when opening a trade, they are concerned about the potential profit that
[00:29] can be obtained if their analysis is correct. This is how the worst trades are opened, which will gradually lead to a loss of the deposit. The best trades are also opened
[00:42] by assessing the potential loss. This is the main difference in the long run: traders earn not because they can predict every move, but because they limit their losses. There is no difference here based on what
[00:58] analysis concept you trade and what your win rate is, for in any case, you will make mistakes. This must be accepted. There are no tools that work with 100% accuracy,
[01:11] and you will not be able to work even at approximately this level without sufficient experience and knowledge. Look at this table. It shows how many stop losses you need to receive in a row with a certain risk
[01:26] to completely lose your deposit. The calculations were made using the compound interest formula. calculations were made using the compound interest formula. One trade in which you made a mistake will lead to the loss of the entire deposit,
[01:42] and here it will no longer matter how many profitable trades you opened before, but you will still lose 100 percent. Most retail traders do trade without a stop loss. The main reason for this is fear of incurring losses, making a
[01:58] mistake, or activating a stop loss, and as a result of working out the expected scenario, this is why they are ready to confidently risk everything. I think that the analysis is
[02:10] correct and now you will be able to earn a few percent. You must avoid this because sooner or later you will make a mistake and lose without a deposit. As we continue, I recommend
[02:25] subscribing to my telegram channel. Here I write about trading analytics and thoughts on the market. In it, you will find a lot of useful and interesting information for yourself as a trader. Follow the link in the description under the video.
[02:39] Now look at the first two columns. This is the optimal risk with which you can open a position because this gives a huge room for error. Losing trades will not critically
[02:53] affect your material and emotional state, which will contribute to achieving positive results over a distance, or at least To break even, if you open trades with a risk
[03:06] of one percent, you will need 460 losing trades in a row to get only one percent of your deposit out of 100 percent,
[03:20] you will need to open 70 losing trades in a row. I can't imagine how you can lose even half of your deposit if you open trades based on some kind of analysis.
[03:35] deposit if you open trades with a win rate of 25 percent and a risk-reward ratio of one to four, that is, only every fourth trade will be profitable. Yes, if you open 20 trades with a risk of one
[03:51] percent, you can earn four and a half percent of your deposit, and if you open trades with a risk of two percent, you will get already six and a half percent. These are excellent results that you
[04:06] can achieve with any analysis concept. You simply need to limit your losses and open trades with an acceptable risk-reward ratio. Of course, the risk for each trade should be the same;
[04:20] it should not change from trade to trade depending on your confidence in the analysis. Based on this table, you can see that we  Don't focus on one specific trade. There's no point in
[04:34] setting a goal to earn or lose as much as possible at once. We should make money on a series of trades, sometimes allowing reasonable losses.
[04:47] To do this, you need to calculate the future position volume. I'll show you how this is done for both the cryptocurrency and foreign exchange markets. Let's start with the first. To do this, we simply need to
[04:59] use the tools available in the trading view. On the left, you need to select a long or short position depending on the direction of your trade. They have a built-in calculator
[05:12] that provides all the necessary information for opening a trade. Then, click on the place where your long position will open. The bullet displays the length of your stop loss. It can be placed under the minimum of the
[05:28] first candle that formed its balance. The balance. The green bullet is the potential of your trade. We can set it at the maximum where the correction began.
[05:41] The line connecting them is your entry. Now, you need to go to the settings of this tool. In the argument tab, you are interested in two your photo size and the desired risk of the trade.
[05:57] Commissions for opening and closing a trade are not taken into account here. loss to one percent, you can enter a risk of 0.9 percent or lower in this field.
[06:09] It depends on the exchange you are trading on and the length of your stop loss in individual trades. Therefore, by opening several standard trades, you can calculate how much it will cost on average to open and close
[06:23] your trades. After the required value is entered, we look at the quantity field. The volume of your trade is shown here. This is the amount, in our case, almost 2 bitcoins. You enter it on the
[06:38] Perry exchange. Opening a position. The volume of a position always depends on the length of your stop loss. If it is shorter, for example, we set it for at least 2 candles, then we should already open a trade for 3.3
[06:54] bitcoins. Then, if the price reaches these values, we will still lose only one percent of the deposit. Now, look at the field below. This is the risk/reward ratio. This
[07:08] number, seven point one, means that the potential profit on this trade will be all times higher than the potential loss. We risk one percent, this is our fixed loss, and potentially, if
[07:24] the price reaches our target, we will earn seven percent. The minimum risk/reward ratio, which is optimal to use, is one to three. Such scenarios provide an initial
[07:37] basis, giving you many opportunities for that.  To make mistakes and stay breakeven or profitable, a setup with a risk-reward ratio of 1.5
[07:49] or more will allow you to effectively cover losses and make a profit over time. I recommend establishing for yourself what risk-reward ratio suits you best and trying to open only such trades.
[08:05] If this trade is closed, I'll flow, then you will earn seven percent of the deposit. To see how much this will be in dollars, you can look at the amount field.
[08:20] in this scenario. If the price activates your stop-loss, then you will lose one percent of the deposit. This will also be displayed in the This will also be displayed in the amount field only on this side.
[08:33] Now let's look at how to open a short position, but on the forex market, you do the same. Choose a short or long position and set your entry stop- loss and targets on the chart.
[08:49] You need to find a position volume calculator. so choose any one you like. Here, in the first bullet, you must select the pair that is traded. In the second, the currency of
[09:04] your choice. In the third, write the size of your deposit and in the next, the desired risk per trade. Now we need to enter the length of our you. Stop loss in pips. To do this, go back to the chart and hover the cursor over the
[09:20] position set by Shuhrat. Here, look at this field. This is the length of your stop loss in pips. 43.3. This is the value you need to enter in the calculator.
[09:38] Then, click the calculate button and you will see what volume you should This is 0.23 lots. If the deal closes at stop loss, you will lose one percent, that is, one hundred dollars. As I showed in
[09:54] this field, set clear rules for opening deals for yourself and always adhere to them. be able to achieve positive
[10:07] results in your trading in the shortest possible time. If you learned something new in this video and you liked it, then like it and write comments because this will greatly help promote this video. And also, don't forget to subscribe to my
[10:21] also, don't forget to subscribe to my Telegram channel. The link is in the description.