Make the right choice

What does a trader need to do to disperse a deposit?

What does a trader need to do to disperse a deposit?



What does a trader need to do to disperse a deposit?

Most traders work on the hourly chart, trading intraday. This allows you to take profits without lingering for months in a long and sometimes even tedious medium-term. But you must admit, you can sit for the sake of profit! How to disperse and at the same time not destroy the deposit?


Our task is to see when the price on the hourly chart breaks the main level. The screenshot shows several price impulses. Those who are familiar with the subject of fractals can apply them, but fractals themselves are more complex in analytics than levels.

Our first deal was 0.1, and the second at 0.2, as can be seen in the screenshot, the deal worked out our forecast as clockwork. Now for the risks of the deal! Medium-term trade and wait for the “profit” will take from three to seven days. But the advantage of this overclocking is given by the “mathematical calculation”. We earn even if there was a loss from the first transaction, then our second transaction covers the loss from stop loss and at the same time gives a profit. But in this situation, I want to warn:


1) After a successful transaction, we must definitely return to lot 0.1! If we do not, then this will lead to disaster. Many traders after the second successful transaction experiment, and increase the lot, making it 0.3, 0.4, etc. I would like to warn that such an approach will not lead to anything good. If we have a profit from the second or third transaction, then we need to return to the first lot of the overclocking algorithm. (Conditionally 0.1)


2) Take points and stop loss. If at the first losing trade your stop was 30 points, then in the second trade it should also be 30 points. It is possible that a reversal will not occur and it will come to the third deal with lot 0.3. The third deal should also be 30 points on the "stop loss".

If you do not take into account the size of the stop, then you can increase your losses and our stop at 60 points of the second transaction from 30 points acceptable, turn the lot into 0.3 with a stop at 30 points. All transactions must be accurate and as our possible losses. Therefore, it is impossible to jump overclock from the initial lot to the third (from 0.1 lots to move to 0.3).


3) You need to sit out a deal until the end, and only when the price gives 70 points will the transaction be converted to “without loss”. If we transfer earlier, then I assure you, the Market Maker will hook your order on a rollback. This moment was seen very often and if someone says that you need to translate into breakeven after 30 p., This advice comes from the Marketmaker. The fundamental rule to reduce risks is to try to move the stop at “no loss”, which gives us some insurance and emotional balance.

I would like to summarize, if on the first transaction we caught a loss of $ 3, then in the second transaction with an increased lot, we earned $ 18. We covered a loss of $ 3 and earned 15. Now we need to return to lot 0.1 again. As soon as a loss occurs, we move to lot 0.2. If lot 0.2 is at a loss, then go to 0.3. This is the last stage of overclocking boundaries. If this deal goes wrong, then we are obliged to take the work on the bugs. Once the problem is discovered, and you have worked to resolve it, you can start trading. It should be remembered that overclocking a deposit is always an increased risk and adding more extreme is dangerous for capital.


You can disperse a deposit, but you should do it correctly and according to the rules. Then you can disperse the deposit, but after that it is better to switch to the classic money management which always contributes to the emotional balance!



Comments (0)

Latest posts

Natural gas prices: forecasts for 2021

Commodity markets can be of interest to investors for many reasons. Intermarket relations mean that the rise or fall of prices in a given commodity market affects prices observed in other markets (stocks, bonds, currencies, etc.)

Read more

Automotive at the time of the war: among the favorite titles Stellantis and Volkswagen

Major changes in the automotive sector in recent years, the transition from mergers of large companies, such as FCA with PCA (Peugeot Citroen Automobiles), to strategic innovative enterprises.

Read more

Popular Tags