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The trading and investing signals are provided for education purposes and if you use them with real money, you do so at your own risk.
In this video I give you very practical tips on how you can improve your trades overall. When it comes to improving trades this is what we can achieve:
- Improve the Reward:Risk ratio (RRR)
- Improve the exits for larger winners
- Make sure price hits your take profit
- Reduce the size and quantity of losses
- Avoid stop runs
- Improve our trade management and avoid mismanagement
Most traders want all this but don't know how to get there. Or, they just randomly change their trading. There is a better way!
And for that we focus on a few metrics:
- The Updraw and Drawdown
>> Those two metrics tell us how close price came towards our profit target and stop loss.
>> If we see that price, on average, does not come close to our stop loss (low Drawdown), we are setting it too far away. Reducing the stop size can help us improve the RRR
>> If we see that price often turns ahead of our target (high Updraw, but below 100%), we might want to set the target a little closer
- Potential performance
>> Looking at how much money you are really leaving on the table by mismanaging trades can be an eye opener
>> In Edgewonk, the potential performance metric is unique and it tells you immediately how to correct your behavior and takes out the guesswork
- Simulator
>> The simulator takes your own performance data and simulates a potential account development for you
>> See immediately what to expect from a risk perspective so that you can be prepared better. Or, adjust your risk to avoid large drawdowns
Tradimo helps people to actively take control of their financial future by teaching them how to trade, invest and manage their personal finance.
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Risk warning: Trading in financial instruments carries a high level of risk to your capital with the possibility of losing more than your initial investment. Trading in financial instruments may not be suitable for all investors, and is only intended for people over 18. Please ensure that you are fully aware of the risks involved and, if necessary, seek independent financial advice. The educational content on Tradimo is presented for educational purposes only and does not constitute financial advice.
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