Applying the 1% Rule in a Single Trade
Determine your risk capital, i.e., the total amount of money you're willing to risk in your trading. This should be money that you can afford to lose without it affecting your lifestyle. Calculate 1% of your risk capital.
Take calculated risks– One of the golden rules of intraday trading is – Take risks but be smart about them. Determine your capacity to take risks based on your age, beliefs, commitments, dependants, etc, and invest wisely.
If there is one thing industry professionals have learned in all their years in the financial markets, it is never add to a losing position. That means never “average down” a losing long position or “average up” a losing short position. This is even more important when using leverage.
The 5-3-1 trading strategy designates you should focus on only five major currency pairs. The pairs you choose should focus on one or two major currencies you're most familiar with. For example, if you live in Australia, you may choose AUD/USD, AUD/NZD, EUR/AUD, GBP/AUD, and AUD/JPY.
The 70:20:10 rule helps safeguard SIPs by allocating 70% to low-risk, 20% to medium-risk, and 10% to high-risk investments, ensuring stability, balanced growth, and high returns while managing market fluctuations.
The 123 setup consists of three pivot points. The confirmation of the 123 reversal pattern lays at Pivot Point 2. The target when trading a 123 formation is at a distance equal to the size of the pattern, applied beyond Pivot Point 2. Your stop loss should go beyond Pivot Point 3.
The golden ratio of 1.618 – the magic number – gets translated into three percentages: 23.6%, 38.2% and 61.8%.
Studies show that the number one mistake that losing traders make is not getting the balance right between risk and reward.
§ 1831 Element Three—The Information Was a Trade Secret. the information derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable through proper means by, the public.
1. George Soros. George Soros, often referred to as the «Man Who Broke the Bank of England», is an iconic figure in the world of forex trading. His net worth, estimated at around $8 billion, reflects not only his financial success but also his enduring influence on global markets.
Definition of '80% Rule'
The 80% Rule is a Market Profile concept and strategy. If the market opens (or moves outside of the value area ) and then moves back into the value area for two consecutive 30-min-bars, then the 80% rule states that there is a high probability of completely filling the value area.
Swing trading is most suitable for beginners due to this low speed.
Rule 1: Always Use a Trading Plan
You need a trading plan because it can assist you with making coherent trading decisions and define the boundaries of your optimal trade. A decent trading plan will assist you with avoiding making passionate decisions without giving it much thought.
Accepted Type: Integer. A unique identifier assigned to each Expert Advisor (EA) or trading strategy. It helps distinguish between different EAs or strategies running on the same trading account.
The most commonly used Fibonacci retracement levels are 38.2%, 50%, and 61.8%. The Fibonacci retracement level gives technical traders a good edge in the market. The Fibonacci retracement tool is one of the most common trading tools on charting software - MT4.
One of the simplest and most effective trading strategies in the world, is simply trading price action signals from horizontal levels on a price chart. If you learn only one thing from this site it should be this; look for obvious price action patterns from key horizontal levels in the market.
Pyramid 3-2-1
In the bottom section, the students record three things they learned for the day. In the middle section, the students record two questions they have. In the top section, the students describe how the information learned is applicable to their everyday lives.
The 3-2-1 exit slip strategy is a method of summarizing one's learning with a basic format in which: Students write three things they learned in today's lesson. Next, students write two things they liked or two interesting facts about the lesson. Finally, students write one question they still have about the lesson.
According to FINRA rules, you're considered a pattern day trader if you execute four or more "day trades" within five business days—provided that the number of day trades represents more than 6 percent of your total trades in the margin account for that same five business day period.
Rule 611, among other things, requires a trading center to establish, maintain, and enforce written policies and procedures reasonably designed to prevent “trade-throughs” – the execution of trades at prices inferior to protected quotations displayed by other trading centers.
It can work well if your essential expenses are within 50% of your income and you want a balanced approach to spending and saving. 70/20/10 Rule: May be better if you aim to save more aggressively or have higher essential expenses that exceed 50% of your income.