Karel Ruzicka @RoseThorn__Trade: "📉 𝟓 𝐈𝐌𝐏𝐎𝐑𝐓𝐀𝐍𝐓 𝐅𝐀𝐂𝐓𝐒 𝐈𝐍..."

Czech Republic

📉 𝟓 𝐈𝐌𝐏𝐎𝐑𝐓𝐀𝐍𝐓 𝐅𝐀𝐂𝐓𝐒 𝐈𝐍 𝐓𝐑𝐀𝐃𝐈𝐍𝐆 📈 ⚠️ Anyone thinking of copying my trades should read this carefully. Especially point no. 3 ⚠️ 1️⃣ 𝐀𝐧𝐲𝐭𝐡𝐢𝐧𝐠 𝐜𝐚𝐧 𝐡𝐚𝐩𝐩𝐞𝐧 There is absolutely no certainty in trading and anything can happen. I speak about situations that can be hardly predicted like "fat finger" incidents. Suddenly, there can be trillions $ traded and we can see "rockets" with 700-1000 pips in few minutes. Or we could see situation when the swiss stopped to manipulate own currency which led to chaos with unexpected consequences. My point is, that because of these situations we should always trade the way so we could also trade tomorrow. In other words it is crucial to have proper risk management and money management. 2️⃣ 𝐖𝐞 𝐝𝐨𝐧´𝐭 𝐧𝐞𝐞𝐝 𝐭𝐨 𝐤𝐧𝐨𝐰 𝐰𝐡𝐚𝐭 𝐰𝐢𝐥𝐥 𝐡𝐚𝐩𝐩𝐞𝐧 𝐢𝐧 𝐟𝐮𝐭𝐮𝐫𝐞 𝐚𝐧𝐝 𝐰𝐞 𝐜𝐚𝐧 𝐬𝐭𝐢𝐥𝐥 𝐞𝐚𝐫𝐧 𝐦𝐨𝐧𝐞𝐲 Many trades do not understand that. Is it really necessary to always predict where the price will go? To earn money on the markets we need to have advantage. We need EDGE. This EDGE can be small, even 51 %. We never know what will happen on market. No one knows. But, if we have EDGE, then with time and after certain number of trades, EDGE takes effect. If EDGE is 51% then these 51% of trades earn money. We don´t have to know what will happen in next trade (and we don´t really have to care too much) because the amount of trades with such EDGE will be simply positive. 3️⃣ 𝐓𝐡𝐞𝐫𝐞 𝐢𝐬 𝐫𝐚𝐧𝐝𝐨𝐦 𝐝𝐢𝐬𝐭𝐫𝐢𝐛𝐮𝐭𝐢𝐨𝐧 𝐛𝐞𝐭𝐰𝐞𝐞𝐧 𝐩𝐫𝐨𝐟𝐢𝐭𝐚𝐛𝐥𝐞 𝐭𝐫𝐚𝐝𝐞 𝐚𝐧𝐝 𝐥𝐨𝐬𝐢𝐧𝐠 𝐭𝐫𝐚𝐝𝐞 If your profitability is 60%, does it mean that in every 10 trades you will have 6 profits and 4 losses? NO, of course not. You can know EDGE but you can´t know when exactly you will have profits and losses. Imagine a box with 100 marbles. 60 of them are blue and 40 of them are red. When blinfolded you can´t know which color you pick. You can´t know that one time you pick red marble and next round you pick blue marble. Such conclusions are statistical impossible. However, you know that when you pick 100 marbles (all of them) you will have 60 blue and 40 red. It is same with trading. For that reason short-period performance is irrelevant in trading. Only long-period performance (at least 4 months) is relevant to acknowledge if the trade strategy is good or not. We should never get upset because of 3-4 bad trades (even in one row). It can simply happen 4️⃣ 𝐄𝐃𝐆𝐄 𝐢𝐬 𝐧𝐨𝐭𝐡𝐢𝐧𝐠 𝐦𝐨𝐫𝐞 𝐭𝐡𝐚𝐧 𝐚𝐧 𝐢𝐧𝐝𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐠𝐫𝐞𝐚𝐭𝐞𝐫 𝐩𝐫𝐨𝐛𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐭𝐡𝐚𝐭 𝐨𝐩𝐭𝐢𝐨𝐧 „𝐀“ 𝐰𝐢𝐥𝐥 𝐡𝐚𝐩𝐩𝐞𝐧 𝐦𝐨𝐫𝐞 𝐥𝐢𝐤𝐞𝐥𝐲 𝐭𝐡𝐚𝐧 𝐨𝐩𝐭𝐢𝐨𝐧 „𝐁“ I suppose that there is no other explanation needed. In other words, EDGE is statistical advantage in the market. 5️⃣ 𝐄𝐯𝐞𝐫𝐲 𝐦𝐨𝐦𝐞𝐧𝐭 𝐨𝐧 𝐦𝐚𝐫𝐤𝐞𝐭 𝐢𝐬 𝐮𝐧𝐢𝐪𝐮𝐞 No matter how it looks every moment on market is absolutely individual. It does not matter that the setup looks similar as before. It is important to understand that every setup is unique. For example: trader sees a pin bar and thinks "this situation looks absolutely same as that pin bar which I traded last month and it went perfect". So instead of risking reasonable amount of money (for example 1% of portfolio) he risks 3x more. Only because it looks like more profitable setup. Such trading is of course not very appropriate. Firstly because of EDGE settings. Secondly, because every moment in the market is unique. Even if such pin bar is in the same timeframe there should be totally same trading atributes like - amount of orders, volume of trades, same time of entry and same time of closing positions (of other traders). It is simply IMPOSSIBLE $OIL $NSDQ100 $BTC $GOLD $EURUSD $SPX500 $GER40

Not investment advice. The author may have financial interests in the mentioned instruments.