Five star | *****| Trading Checklist FAQs | LiteFinance

Here is the article. 

#TradingCheckList #RiskManagement #5-3-1Rule #1PercentRule #90PercentRule #No1RuleOfTrading #RuleOf20 #50-50Rule #TradingRules #MyRules #531Rule #5050Rule #TradingRules

What is a trading checklist?

A trading checklist is a predefined set of criteria a trader uses to evaluate potential trades, ensuring alignment with their trading plan and risk management strategies.

What is the 5 3 1 rule in trading?

The 5- 3- 1 rule in trading stands for analyzing 5 indicators, considering 3 different time frames, and focusing on 1 particular trading opportunity to minimize risk and enhance decision-making.

What is the 1% rule for traders?

The 1% rule for traders dictates that no more than 1% of a trader's capital should be risked on a single trade, promoting long-term sustainability by managing potential losses.

What is 90% rule in trading?

The 90% rule in trading suggests that 90% of your trading success is due to psychological factors and discipline, while only 10% relies on technical analysis and strategy.

What is No 1 rule of trading?

The No 1 rule of trading emphasizes the importance of a well-defined trading plan, guiding traders to make decisions based on logic rather than emotion, crucial for consistency.

What is the rule of 20 trading?

The rule of 20 in trading advises traders to not have more than 20% of their trading capital exposed in the market at any given time to manage risk effectively.

What is the 50 50 rule in trading?

The 50 50 rule in trading refers to the understanding that, despite thorough analysis and a solid trading plan, the outcome of any trade has an inherent 50% chance of success.

Julia's notes:

1. Be a trader following rules first
2. I have to discipline myself first, following the above rules - 1% rule for traders
3. 1% rule for traders - set stop loss - 1%
4. Forget those big loss on SABR stock, I need to learn how to make money on other stocks first; I will go back to work on risky stock like SABR later
5. Try to memorize those rules - 6 rules, rules about risk management, percentage in the market, technical analysis and chance of success - inherent 50% chance of success
6. First rule to follow - 1% rule for traders - no big bet - change my behavior

Why Risk Management is so Important? 📌

Here is the link. 

Why risk management is so important! http://www.financial-spread-betting.c... PLEASE LIKE, SUBSCRIBE AND SHARE THIS VIDEO SO WE CAN DO MORE! We know that as traders we want to have a good probability of success (i.e. high win rate) but we also want the risk/reward ratio to be as high as we can. But we also realise that it can work both ways - the win rate could be as low as 10% - if just 1 in 10 trades work but if it makes 50 times the money you lose everytime you win you know that you will end up making time over time. So we have this balance that we have to make as traders. Say we have a trading strategy with a 50% chance of success Risk/Reward ratio: 2:1. If we have this kind of strategy we will make money in the long run. But why is risk management important? Even with this winning strategy we can have a string of losing trades that could potentially wipe you out. Don't rely on luck to keep you in the game...

Why risk management is so important

Strategy 50%

Wins +$1000

Loses -%500

$5,000 10%

$10,000 5%

$25,000 2%

$50,000 1%

I risk $107 to make $7,500 in Trading… This is how

Here is the link. 

In this video, I talk about how I manage risk as a day trader, r multiple, position sizing and so much more!