All language subtitles for TraderFXBichin 2000 - 4

plan there's also going to be a
PDF where you can actually

for watching. Hope you found
some value and I'll see you

said about the cut off for
profits hopefully everything's

you might want to make one
yourself but it gives you a

trading plan really but by the
end of the chapter you should

general template so Let's drive
into the next video. Thank you

print that out and you know
write down your plan of course

and then limits and guidelines
how much are you going to risk

you actually cut off your
trading review your strategies

in a week a month you know any
specified time period before

have a good idea of what you
need to include in your trading

that capital how much are you
happy to risk and your

individual trade risk as well
both fit into the same section

be moving on to talk about the
flip side of this targets and

coming together now we are just
starting out here with the

session okay so that is for
this video we're now going to

guidelines where we'll
elaborate a bit more on what we

do some back testing and reroll
ready to go again on the new

you going to be trading with
your risk tolerance based on

might start upping your
position sizes to try and make

seep in cut off your trading at
a set profit target and then

section then recapping we have
capital so how much capital are

eventually you're going to run
into loss and if you are

the profit you've made that
week and more so don't do that

okay that is pretty much all
for this money management

that back and if that happens
you can easily give away all

you make a lot of money don't
let that greed and cockiness

susceptible to revenge trading
and if you take a loss then you

to go smashing the market time
and time and time again because

feeling greedy like this
chances are you might even be

and then run the market again
next week okay there's no need

think cut off points need to be
marked down in your trading

even want to bump it up to 10%
if you're a super aggressive

make 5% in a week. Now, that's
some nice profits. You might

it is to actually give all that
profit back and feel like an

plan loss cut offs so if you
lose a certain amount in a week

just allow allow the markets to
move, come back next week than

chill and allow the markets to
realign and on the flip side if

a day a month cut off review
your strategy have some time to

idiot by the Friday weekend
session comes in. So, always

more risk. It's easy then to
just cut off trading and and

reason really to be sitting in
the market putting yourself at

about in the psychology section
greed can see in, okay? Greed

that on the flip side if you
make X amount in a week month

trader but let's say you reach
5% in a week. Uh there's no

cut off your trading as well
now the reason is as we spoke

can really creep in and cause
real issues. So, let's say you

potentially go and actually
back test your strategy and see

little bit of reworking right
over a week losses are fine

winners or something like this.
Of course, I'm not saying if

strategy okay if you have bad
performance over a month like

losses are normal but if you do
lose consistently for a month

you lose six trades paired with
winners but let's say you lose

if there's any ways that you
can refine that and improve

that where you lose 10% in a
month strategy probably needs a

building my confidence back up
in it. Now, if I lose X amount

in a month, let's say if I lose
six trades in a month, no

10% in a month. You'll cut off
your trading and review your

trading, come back next week,
after a weekend of back

trades in a day, I'll cut off
my trading. Come back tomorrow.

testing, a weekend of retesting
my strategy and you know,

If I lose three trades in a
week, I will cut off my

going to cut off my trading if
I lose X amount in a month I'll

parameters. If I lose 4% in a
day, two losses. If I lose two

okay? So the final part of
money management then that I'm

cut off my trading and review
my strategy so let's give some

sessions now whether that be a
day a week or a month you need

examples right so let's say we
Put in in place some

amount is going to lost
regularly and accept that,

to set these parameters so if I
lose X amount in a week I'm

this chapter we will be putting
together a trading plan and

guidelines so these are cut off
points for your losing trading

I'll show you an example
trading plan limits and

hold on to my profits and then
this one wins as well you only

going to talk about right now
of course towards the end of

previous trade okay so set an
amount and stick to it

individual trade risk is highly
important so consider this

up it again to 2% you lose and
you've lost your entire

discipline and losing your mind
so decide an amount that's easy

to lose regularly set that in
stone in your trading plan

make a tiny little bit of
profit and then let's say you

say one trade you risk 2% you
win that and you think right

I'm only going to risk one on
this new one because I want to

risk and you lose a few trades
and you decide to up the risk

and this is when things start
to get out of hand and let's

to try and win that back you're
just going to lose more right

detrimental right then done
that if you start out at 2%

changing your risk per trade
that is when everything goes

because if you start breaking
away from this and you start

stressed without breaking your
processes losing your

is an easy amount to lose
regularly without getting too

worthwhile whereas 1% kind of
feels like it's not but it also

that 1% risk account but that
one to three is going to make

us 6% so we're going to be up
4% right we're going to be up

losers2% seems the sweet spot
for me it makes trading

more right double the amount on
this higher one so basically as

maximize profits okay 1% is
easier to lose but when you win

profit doubling is of course
going to go much further than

nice profit so that is why I
think 2% is the sweet spot it's

reward on a 2% risk account
you're making 4% right so your

going to take us up 3% so it
will be around 2% profit on

profits are doubled and because
we always control risk the

lose and you lose 2% it's no
big deal but 2% allows you to

$1, 000 account using 1% risk
we are down to 990 we lose that

but then let's say we win a one
to 3 now the one to three is

the doubled loss as well so
let's say we hit a a loss on a

easily be won back with the
next trade at 1-2 or high risk

easy to lose regularly when a
trade comes through and you

980 okay that's not too bad $10
more so the profit is doubled

like you know a tiny little
scraping off the top and it can

that's easy to lose regularly
2% is nice if I've got $1, 000

trying to bring that back so
you need to decide an amount

same trade on a $1, 000 account
using 2% risk we are down to

something in three trades and
that's going to be stressful

dollars. You're at $880 after
three trades or thereabouts so

we always aim to stretch out
our winners longer than our

right and then you might be you
know messing up your process is

past 4% you don't need to and
pushing it past 4% is going to

account and I lose $20 on that
I'm not too stressed that seems

processes the processes of
trading losses are going to be

that then might stress you out
a little bit you might think

risk reward you're only making
2% if you get a 1 to 2 risk

a trade at 1% risk your profits
are small you can get a 1-2

reward making me back a nice
forty which then feels like a

and if we have good risk reward
we can win all that back okay

not going to keep losing money
but you know a losing trade is

per trade choose that amount 1
to 4% and then decide an amount

another 5% on the next trade
that's going to send you into a

account. So risk tolerance,
okay? That is going to be

from that risk tolerance is the
individual trade risk. So this

is a sure far away after a
losing streak to blow your

so you have to accept that
losses are part of the process

trading capital as well. We
always want to look at this

trade risk. So you have to
outline this individual trade

is kind of what we just spoke
about. How much you can risk

follow that risk risk reward
and we follow this individual

consistently coming through
you're not just going to

heavily outlined inside the
trading plan. Now leading on

winner no we won't do that but
We can, right? We can if we

I'm not saying you're going to
lose three trades for every

approach we can lose three
trades and then we can win one

to mess around with your risk
rules and ultimately lead

you might be happy risking $200
on a $10, 000 account but you

should never be risking $200 on
a $1, 000 account because that

risk of version is going to
suit your individual needs your

that is easy to lose regularly
okay as we just mentioned the

consistently lose lose lose but
you know as we've spoken about

meltdown mode you're going to
make bad decisions you're going

wait I've just turned my
thousand dollars into 800

with the risk reward approach
and the risk management

yourself into deeper losses so
that risk of tolerance that

lead to you know stress okay if
you lose a trade and you lose

risk tolerance in percentage
figures as mentioned, okay? So

sound too bad but three trades
and you are down under nine00

trading a thousand dollarsand
you lose a trade at four

percent. You've just lost 40.
Now, $40. Now, it might not

individual ability to handle
risk and your individual

trade, that's not going to feel
easy, okay? Let's say you are

stick to 2% myself is because
if I'm losing 4% on every

risk that you are happy to lose
regularly. Now the reason I

win win lose win win lose lose
win things like this right it's

are willing to lose on a trade.
I never recommend pushing that

decide how much money, how what
percentage of your account you

part of the process right you
don't win win win win win you

a bit more mumbo jumbo so
decide your risk tolerance,

because we are going to run
into losses consistently we're

happy to risk per trade. You
know 1%, 2%dummy, 3%, 4%. I

a bit hectic and a little bit
dangerous. But you need to

account because then you're
going to be risking a lot

contrary you might not want to
hold your risk at 2% or 4%.

aversion and your personal
ability to handle loss now your

decide on that how much you are
happy to risk per trade right

000 you may still be willing to
risk $200 per trade okay which

you're going to be risking $400
per trade. You might want to

$200 on that trade now if you
drop your account down to 5,

and going to grow over time
what you're trading okay

never recommend going past 4%.
That's when things begin to get

keep that risk around 200. So
decide how much you're actually

ability to handle loss is going
to improve and going to develop

sorry if we are shifting the
account up to a $20, 000

risk tolerance is going to be
based on your personal risk

would then bump your risk
tolerance up to 4% on the

5% on a trade that's quite a
lot and then if you lose

main main aspect of capital
that's the main aspect of

on a 10% now, I mean a $10, 000
account right you're risking

risk per trade right if you're
trading a 2%2% risk per trade

and that's not a whole lot of
your account, right? Now, if

capital how much of the capital
that you're trading with are

much of your account how much
money are you actually have to

you actually going to put at
risk leading on from that then

we have that risk tolerance
what we just spoke about how

put you back £4000pounds or $4,
000. Now, that's going to hurt

risk 4% without feeling, you
know, too stressed out, right?

more though I don't recommend
it. But you can go ahead and

going to be trading with and
then really we're going to work

you're trading a hundred
thousand, a 4% loss is going to

ahead and risk 4 percent, okay?
You may even go ahead and risk

our risk tolerance and our risk
aversion around that so that is

a little bit more, okay? So,
decide how much capital you're

If you lose a trade, you're
going to lose four pounds or $4

tolerance and the basis of your
risk management plan and the

you're going to be now what I
mean by this is If you are

trading with before you can
actually decide how risk averse

reason is because you need to
know how much capital you're

trading with a small account,
$100, 100 pounds, you can go

trade with it's going to form
the basis of your risk

on. So let's talk about these
different money management

starting point of our entire
trading plan okay when you have

aspects then. So capital
starting point this is the

section and it's going to talk
about how much actual

consider capital so how much
money are you actually going to

tolerance, okay? It is a lead
on from the risk tolerance

those manifestations and those
motivations outlined as we

amount of money that you will
be able to lose before making a

spoke about in the previous
video you now want to actually

will cut off your trading until
next week or next month or so

trade cut off for that session.
So if you lose X amount you

individual risk you are willing
to take on on each trade.

trading plan as well. Limits
and guidelines refer to the

Limits and guidelines are going
to be in the core of your

section. Individual trade risk
which very much suits the risk

spoke about this earlier in the
course in the risk management

ability to actually take on
certain amounts of risk. We

tolerance which refers to your
individual risk aversion and

refers to the amount of capital
you're trading with. Risk

going to be worked into your
plan. We have capital which

key aspects of money
management. These are all

without further ado, this video
we are going to talk through

in terms of revenues and
outgoings, right? With wins and

losses. So we need to treat
this like a business. So

consider bringing into your
trading plan. So there are four

the different aspects of money
management that you need to

at all times. That includes
managing our risk and actually

of the core aspects of your
trading plan and it's going to

managing the amount of capital
and working with that capital

like a business and we need to
be on top of money management

be one of your core aspects of
trading, right? We run this

markets and conquer. So money
management is going to be one

running through the trading
plan section and talking about

How we doing everyone? Welcome
back to the course. We're now

actually preparing your trading
plan ready to go out into the

over there.