---
title: 'How to Properly Enter a Trade | When and How? | Risk-Reward Ratio'
source: 'https://youtube.com/watch?v=TG_lClJy8YI'
video_id: 'TG_lClJy8YI'
date: 2026-08-04
duration_sec: 660
---

# How to Properly Enter a Trade | When and How? | Risk-Reward Ratio

> Source: [How to Properly Enter a Trade | When and How? | Risk-Reward Ratio](https://youtube.com/watch?v=TG_lClJy8YI)

## Summary

This video explains how to enter trades on different timeframes, comparing aggressive entries on lower timeframes with conservative entries on higher timeframes. The presenter uses an Ethereum chart to illustrate the process, from identifying key zones on higher timeframes to finding precise entry points on lower timeframes, and discusses the risk-reward trade-offs.

### Key Points

- **Introduction to Trade Entries** [00:02] — The video covers entering trades on lower timeframes (1m, 3m, 5m) and higher timeframes, explaining pros and cons. Entry is a combination of factors on the chart. Aggressive entries have no confirmation, conservative have confirmation.
- **Progressive Entry Excluded** [00:29] — Progressive entry is not discussed because most viewers lack experience and self-discipline. Viewers interested can comment for a future video.
- **Market Structure Basics** [00:42] — The presenter reviews market structure: an uptrend changes when price updates the high (liquidity) and forms a lower high, leading to a downtrend. Same for downtrends.
- **Lower Timeframe Challenges** [01:24] — Lower timeframes have a lot of information and require practice to read effectively. The presenter made a manual on trade entries available on Telegram.
- **Higher Timeframe Analysis (Ethereum)** [02:05] — On the weekly chart, price updated old maximum and failed to consolidate, acting as liquidity floor. Expect reversal or correction.
- **4-Hour Timeframe Zones** [02:33] — Determine first support zone (zone of interest). If broken, look for shorts. Also note ineffective pricing (red line) acting as magnet.
- **Hourly and 90-Minute Timeframes** [03:02] — Identify first resistance zone for taking profit. Switch to 90-minute to see order block clearly. Plan for entry, partial fix, and exit.
- **Lower Timeframe Entry Strategy** [03:30] — Switch to 5-minute chart to find entry in zone of interest with short stop, increasing potential. Example: risk-reward 1:6 from higher TF, but lower TF can improve.
- **Executing Lower Timeframe Entry** [04:12] — Wait for price in zone, watch stops. Identify lower high (structure break) and place limit order on order block, stop behind it, target at higher TF level (2500).
- **Second Entry Example** [05:31] — Price forms another higher high, then lower high. Define bullish order block, place limit order, stop behind, same take profit.
- **Comparison of Entries** [05:44] — Higher TF trade: risk-reward 1:6, risk 1% of deposit. Lower TF trades: first 1:14, second 1:29, but with shorter stops that can be easily activated.
- **Risk Management for Lower TF** [06:52] — For lower TF trades, risk should be at least half (e.g., 0.5% of deposit) due to higher chance of stop-outs. Sometimes 0.25%.
- **Trade Management and Results** [07:32] — Price moves up, correction, sideways. First target at bearish order block, fix 50% of position. Move stop to breakeven, then to maximum. Final results: higher TF trade could earn 4.5% (or 3.5% if stopped), lower TF trades could earn 5.25% and 10.7% (or 4.1% and 8.25% if stopped).
- **Personal Preference** [09:08] — Presenter now prefers higher timeframes (15m+) for more reliable positions, less time on charts, and better results (1.5x better). Lower TF can offer higher rewards but with more risk and psychological pressure.
- **Summary: Entry Checklist** [10:03] — 1) Identify resistance zone on higher TF. 2) When price visits, switch to lower TF and find structure break. 3) Determine local support/resistance for entry. 4) Set stop and targets. 5) Place order or trade market.

### Conclusion

The video emphasizes that while lower timeframe entries can offer higher risk-reward ratios, they come with increased risk and psychological pressure. The presenter recommends using higher timeframes for more reliable trades and adjusting risk accordingly.

## Transcript

in this video we'll talk about entering a trade, how to enter on lower timeframes like 1 minute, 3 minutes, 5 minutes, and how to enter on higher timeframes. I'll also tell you the pros and cons of each method. What I mean
by entering a trade is a combination of factors that must be on the chart to open a position. Your code can be aggressive, which has no confirmation, and conservative, respectively, with confirmation.
This video will not discuss progressive entry, since most of you do not have enough experience and self-discipline to use it correctly. I'm afraid that such a strategy will be unprofitable for you. But if you are interested in this
topic, then write about it in the comments, and I made a video on this topic. Now, a little theory before starting for those who don't know what the structure itself is, the basis that you need to know about the market structure. I've already talked about it. Watch the video in
the tips, and on the screen you see diagrams of what the structure itself looks like for an see the upward structure changes when the price updates the hyrule for an upward trend.  This is what forms lover.ru and then a
downward trend begins. It also works with a downward structure. Now, for a better understanding, here's how it looks on the chart. You should understand that on lower timeframes, there is a lot of information about reading the
timeframes. It is obvious that there are many similarities, but there are also many differences. To effectively understand the market structure, for example, on a minute timeframe, you need a lot of practice, as well as working through different situations in
history. To make it easier for you to learn the material, I made a manual regarding trade entries. There is a basic guide that is necessary so that you don't forget and can always look it up. You can find this article on my Telegram channel in a
pinned message. Also, subscribe to it in the channel. There is a lot of interesting and useful content. The link is in the description. In general, I hope that you at least figured it out a little, but if not, you will now understand. I now open the
ether chart. First of all, we look at the higher timeframe. To conduct a start with a wonderful timeframe. Here you see that the price updated the old maximum and was unable to consolidate behind it.  This maximum acts as a liquidity floor
after collecting traders' stops, a natural reaction followed. We can expect that there will be a reversal in this range and the price will begin to correct lower or a sideways movement will begin. Now we switch to the four-hour
time frame. Here we determine the first support zone and the marked field, which translates as zones of interest. If this area is broken and the price goes below it, we will look for shorts there and to form a low high,
are looking for now. The long is also higher. We see ineffective pricing, which I marked with a red line. It serves as a magnet for the price and it is quite possible that we will see the price even higher before the correction. Now
we switch to the hourly time frame. Here we can determine the first resistance zone where we will fix the main part of the potential & lomb position. Here we will switch to the 90- minute time frame so that the
order block that I defined can be better seen. Already at this stage, we have a plan for entering, partially fixing, and completely exiting the long position. Also, even if the price goes below our zone of interest, it's okay. We will use the
marked bearish order block for  Entering a short position, what do you ask now and why was this necessary? It's simple. We'll now switch to lower timeframes, for example, a 5-minute chart, and look for an entry into a long
position when the price is in our zone of interest. What does this give us? It gives us the opportunity to enter a position with a short stop and significantly increase the potential of the transaction, perhaps even tens of times. If we simply enter with a limit
order from this green area, then the security here needs to be set behind the minimum bullish order block that we noted on the 4-hour timeframe. As you can see, the potential of the transaction is very good, the risk-profit is 1 to 6, but we'll now
try to increase it. Here we are now expecting the price to be in our zone of interest, and only when the price is in it will we begin to watch the stops. The price is testing We see a reaction. Now the only thing left is to
determine the laurel high where the structure will break and, after updating a certain maximum, look for an entry point. While the price is here, I structural element. When the price goes above it, then an
uptrend will presumably begin. Here you can see that a new lower high has formed.  Okay, I do n't really like looking at such structural elements since there was only one candle here, this is after the liquidity sv,
but let's try marking this lavryha and waiting for the price to update it. This is what the structure itself looks like, after which you can find an entry based on various factors. I don't want to switch to a
timeframe now and look for an ideal entry even lower. I simply place a limit order on the kuna, overlapping the balance. We place a stop behind what's formed in your blog, and we set the target for the fluff and the timeframe. The main target, as we determined earlier, is 2,500,
so we place it there on the stein. Now we'll see what happens next. Will they pour honey into us? The price moves even higher and forms another hair high. Therefore, we expect a heirloom to form and we'll look for another
potential entry into the position. I define a bullish order block. It will be better visible on 7 minutes. I also place a limit order there in lunar units and a stop behind this order block. The take profit is the same as in the previous position. Now we'll see what
happens. The price clearly tests the support area and begins to move higher. Will they pour honey?  I took it, and now let's compare the entry on higher timeframes. The trade on higher timeframes
was opened simply from the support zone without waiting for confirmation on lower timeframes. This trade could have been entered with the standard risk that you of the deposit. The risk-reward ratio is 1.6. That is,
by risking one percent, I can potentially earn 6 percent. This is very good, and it could have been a quality trade if the price does reach... Now let's look at the positions that could have been opened on lower timeframes
after confirmation. The first trade that was opened after the local structure itself has a risk- reward ratio of 1.14, and the second trade that was opened after updating the hair high on the formation of hairrule has a
risk-reward ratio of 1.29. This is completely different, and thus the potential of the trade becomes much higher. But when we open a position on lower timeframes, we must understand that we have a fairly short stop and it can very
easily be activated. In some cases, before you catch that very risk-reward ratio, you can catch several stops simply because the price will manipulate the highs of the Ilay mi within the local range, collecting
liquidity. Therefore, for such trades, you should take a risk at least twice as small as the standard. For me, a reasonable risk on a trade where I enter on lower timeframes is 0.5 percent of the deposit, but here everything
depends on the factors. Sometimes when I use a risk of 0.25 percent of the now we look at the development of our potential positions. We will talk about this later. The price confidently moves higher here.  There was a correction and a
sideways movement begins. I remind you that our first tag is on the red line, this is a bearish order block. Here we will fix 50 percent of the position. The price is breaking through the order block very aggressively, therefore, 50.20 of the position is already
closed. There is already a reason to move 100 into the plus. In this situation, to completely protect yourself in one of these trades, I would put a stop here and the next one at 25 percent would be at this maximum. As we see, the price is already
collecting it and the main part of the position is closed. Then we would get a big profit, considering that the stop is already in the plus. We can forget about this trade and just wait without doing anything until the price takes our last stop. And now a few
numbers. In the trade that we opened on higher time frames, we could have earned four and a half percent of the deposit if it worked, three and a half percent. If we were ultimately knocked out by the stop, if anything, I
read a profit if we entered with a risk of one percent, and the first trade time frames could have brought 5.25 percent from Deposit if every take is triggered and 41 percent of the deposit if the price hadn't
gone to the last thousand and turned around. But here I think we entered with a risk of 0.5 percent of the deposit. The second trade is much sweeter. We could get 10 and 7 percent of the deposit if the price reaches all tracks
deposit if the price reaches all tracks and 8.25 percent if we are knocked out by a stop that is at breakeven. Now you can compare the difference and ask yourself whether it is necessary to open trades on lower timeframes at all. If the difference is not
why are you entering? What is the example here of Bristol and Pol Amba? In many cases, due to incorrect analysis, you will catch several stops before a successful trade. And I'm looking for you to underestimate the risk, otherwise each trade will put too much pressure on
you psychologically. Is it worth it? I don't think so. Previously, I opened each of my trades on lower timeframes chasing an order, quite ineffective. Now I often open my positions
on at least a 15-minute timeframe and  I don't know, lunch, besides, I get very good results that are one and a half times better than when I traded on This allows me to spend less time on the charts and open more reliable
positions. There is still a difference in reward, but often, entering from since here you can open a position with a risk of one percent of 23 percent of the deposit,
which is something the lower timeframe does not allow for. Well, for me personally, from and so on. Let's summarize what you need to look at when looking for an entry point into a position. First, identify a resistance zone on higher timeframes and wait for the price to be there. Second,
when the price has already visited your zone of interest, switch to lower and find where the structure will break. Look only at significant highs and lows and the city where there was a clear rebound. Look on the Premiere 3 screen after the
structure breaks, determine the local support or resistance zone from where you will enter, determine the stop targets and place a thread there or move according to the market. Now all you have to do is go to Telegram, find it in the
pinned  I'll post an article on this topic and spend a lot of time with the charts and testing the race. If you have any questions, please write them in If you have any questions, please write them in the comments below the video.