All language subtitles for 1. Risk Management system

Bomb guys, and welcome in the game, in this section, I'm going to talk about risk management.

I always like to start all my courses with the risk management guys because in my opinion, this is

the most important thing that you have to know.

And in my opinion, in my humble opinion, this is the number one reason.

Number one, why 99 percent of the traders are losing money.

Right.

In my opinion, this is really the number one where people are failing in this business.

And the reason is lack of proper and strict risk management guy.

So I'm going to make sure that I'm giving you a risk management system always, always, always before

we start learning anything else, before we dive into strategies, into technical analysis, into any

other type of lessons.

I always want to make sure that I'm talking about risk management, because this is the reason why I

lost my money before.

In the past, there is a number one, it wasn't the only reason, but reason number one, the biggest

reason.

And this is why I always make sure that you guys don't follow the same.

I mean, you don't have to go through what I've been right.

This is why you are purchasing these courses.

Right.

In order to get the experience and not going where I went, I've been right.

I can give you the shortcuts rather than you're going the long way.

So now, guys, in the next videos, we are going to dive into risk management and always remember that

risk management always first protect your money, always first.

Now dive into what is a risk management.

This video is for the one of you who don't really know what is risk management.

But as you can guess, it is to manage your risk.

Right, because you cannot be sure on 100 percent that something is going to happen.

Right.

You cannot be sure that the training that you are taking is going to work on a hundred percent.

Right?

You cannot be sure.

So since you cannot be sure, you have to manage your risk.

Right.

Because you don't know what the outcome is going to be.

You might make a lot of money, but you distrait might goes against your rights or you want to manage

your risk.

And let me tell you something, the best in the world.

They are very, very aware that they are going to be wrong many times and they have very, very strict

risk management.

Right.

Only the Danube is only the new traders, the ones who don't really know yet many about this business.

They think that they are going to be right all the time and they don't manage their risk.

But you guys also, if they want to manage your risk and how do you manage it simply when you risk maximum

one percent of your account on a single date.

Right.

And I'm going to show you how to do this type of stuff.

Don't worry, guys.

Later on, I'm going to give you a spreadsheet as well, trading diary, where you will basically not

being able to risk more than one percent.

Right.

In order to enter a trade.

But I know that many people are getting confused here because before I was confused as well.

Right.

What does it mean to risk one percent of your account on a single trade?

For example, if your account is one thousand dollars, one percent is ten dollars.

Right.

So people here are confused, are confused.

Does this mean I will enter a trade on a ten dollar trade?

Right.

No, it it the right to risk one percent.

It doesn't mean that you are going to enter in a one percent trade.

It means that if you lose this trade, you are going to be losing maximum one percent, maximum ten

dollars.

If we are talking for a thousand dollars account, if we are talking for ten thousand dollars account,

it's a hundred dollars.

Right.

This is what it means.

It means, hey, if I am wrong, I'm going to lose ten dollars or a hundred dollars if I'm standing

on a ten thousand dollars account.

Right.

This is all it me.

So this is basically I mean the day expenses.

This is the price that I'm that I'm paying to to see if this trade is going to play out or.

No.

Right.

But this is key no more than one percent.

And when you have strict risk management, you cannot lose all your money in one trade.

Right.

Because what happens to many people, they are losing most of their money in one trade.

This is not possible if you have stricter management.

Right.

But we are going to talk about this later in the videos with this video.

I just wanted to give you an idea, what is the risk management basically just to manage your risk and

to always risk maximum one percent of your account on a single trade.

So I'll talk to you again in the next lecture, I hope.

Now, you, the one of you who didn't know what is risk management, you guys now are aware what is

the risk management?

And in the next video, I will talk about why it is important.

And right, so now you already know what is risk management, now it's time to try to understand why

it is so important, guys, and why it is so crucial.

Right.

Let me tell you something.

Without a risk management, without strict risk management, no one can make it in this business.

I don't really care if you think that the best way in the world would be able to make it.

No one will make it, even if it's the best trader in the world.

They want to make it right, that they want to make it even if they are trading strategy that have even

if they have win the right 99 percent of the time.

Right.

Let's say that from a hundred trades, they are winning.

Ninety nine.

Right.

This one trade guys.

This one trade that this person or I mean I'm reporting to just anyone, let's say the best one in the

world, let's say the best trader in the world have a strategy and he's making money basically 99 percent

of the time.

His win rate is 99 percent of the time.

He's right, 99 percent of the time.

Let's imagine that he doesn't have risk management.

But before we imagine this, I can assure you guys that the best in the world, they have the most strict

risk management in the world.

Right.

But let's imagine that for some reason, there is right now the best in the world, half, 99 percent,

99 percent win rate.

And he don't have the risk management.

He don't have risk management at all.

Right.

So because let's be honest, I mean, if you guys have a strategy that win 99 percent over time, you

will be going, oh, win all the time.

Right.

Because you think you want to make lots of money, even if you win 99 out of 100 trades.

This one trade right.

There is a loss.

Gun out, right, because people are going right.

I mean, people are going and in this one trade because they are so confident they are going to win

always, that they are basically all all their capital is on the table.

And this one trade, it requires only one threat to lose the money.

Right.

To lose all the money.

This is why I'm telling you that first, there is no such strategy that wins 99 percent of the time.

But even if there was right, I mean, we are imagining some stuff here that that are not even possible.

But even if there was something like this, it's going to be losing money for sure.

I mean, without risk management, if there is proper management, it's going to be making money, of

course, but without risk, management is going to be losing money.

This is why I want to put your focus on the risk management that is crucial.

On the opposite side, guys, a strategy that have 30 percent win rate, I mean, that from a hundred

trades is going to win 30 and it's going to lose 70.

And I even have I even better test this strategy for three years in the market, in the park.

And I'm showing you in one of my courses, it has enormous results, right.

Because this 30 percent of the time when it wins, it wins big.

Right?

It is big because it's a trend.

Trading strategy is catching trend.

And most the markets, they are trending 30 percent or times 70 percent of the time.

They are changing.

They're basically going sideways.

Right.

Something like this.

So this strategy, it's normal to have 30 percent win.

Right, because it's catching the trend.

But when there is a trend, guys, it's making a lot of money, a lot as a lot.

Right.

I mean, if I show you the numbers, your mind is going to be blown away.

Right?

If you follow such a simple strategy with proper risk management, you can turn thousands of dollars

into a thousand dollars.

You can turn it into millions in the in the matter of not not very long time.

Right.

With such a strategy and with proper management on the opposite side, a strategy that have 99 percent

win rate without risk management, you can turn a thousand dollars into zero eight zero very, very

quickly.

Right.

Because this one trait, wherever it comes, is going to wipe you out.

Right.

And I see this happen over and over again.

And it happened to me.

It happened to me three times.

Guys, I'm one of these people who are not learning quickly or I mean, I did not learn from the first

time it had it.

It had to happen a second time and a third time in order for me to find out how important risk management

is.

And this is why I'm taking my time and I'm doing my best to explain you and to give you many examples.

If I'm going to go in this video and I'm going to do in order for you to be Stig's, because I really

care for you guys, the one who are my students.

And I don't want you to go through what I've been because I can be very honest with you that it's painful

and you don't want to go through that as well.

So just learn from the I mean, the best way to learn is to learn to others experience.

Right?

I mean.

Of course, it's more effective to learn through your own experience, but it can be painful.

It requires time.

It requires money, right?

You can save time.

You can save money if you only learn to to get experience from other people.

And so you don't have to go through this alone and to break your head.

Right.

You guys don't really want this.

So it's very, very key.

Now, I already gave you an idea how important it is.

Let me now show you the trade that lost to two basically two times.

I I'll show you the two times the first two times when I basically lost lost my money.

So you get an idea.

And the main reason, again, it was because of lack of risk management, lack of proper management.

Now let's first go to the good old exurbia.

Right.

This is the cryptocurrency market, guys.

I know some of you are trading other markets, but that doesn't really matter.

Risk management is the same everywhere, right?

Wherever you are, trading or risk management is the same everywhere.

Let's now find examples on the B2B next chart, because at that time, 2018, I was trading on Beat

Phoenix or I we on a daily chart.

But let me just get rid of this volume and let's find it.

I believe it was September 2000 18.

Absolutely.

This, guys.

So let's get rid of these for now.

Are those of you who were around at that time around the cryptocurrency market, you guys knew that

everything was in a bear market, right?

Since the beginning of 2018, the beginning of 2018, the bear market started the right bear market.

It means downtrend, right?

That downtrend at scale, I mean, at scale.

It was a downturn that time.

I mean, it started at the beginning of 2018.

So during this whole time, we were in a bear market.

Right.

So everything was when you are in a downtrend, I mean, most of the time price is going down.

And then there will be some rallies like this short week rallies that are countertrend trades.

If you guys are aware of this stuff, I hope you are.

If you are not, I am teaching this type of stuff.

So these are called RAND trades.

You can take type of trades like this, but I don't really recommend it for for beginners.

For beginners.

I recommend you guys to be trading to be picking trades strategies.

Right.

Because the trend is your friend.

Right.

You know, the good old saying the trend is your friend.

So anyway, I mean, we were in a downtrend and here here I am watching this report starting to go up

this SRP at this time, I was trading Elliott Wave.

Right.

Maybe some of you are familiar.

Maybe some of you are not.

Elliott Wave.

It's a beautiful theory.

It's a beautiful strategy.

Right.

So, I mean, it's playing out very, very well, especially if you get good at it.

The problem is that it did it doesn't really have a hard stop loss.

Right?

It doesn't really have a high stop loss, meaning that you are setting stop loss on the exchange.

Of course, you can adopt a way to do this type of stuff.

But since this Elliott waves, you can change them on the time.

It doesn't really have a hard stop loss.

Or at least this is how I was trading in that time without the stop loss, with mental stop loss.

I had a mentor at the time from whom I learned this.

I had a mentor now as well.

Right.

But at the time it was another person from whom I learned this strategy.

This was his strategy.

This was how he was trading.

Right.

Elliott waves.

So I learned from him.

So he also did not have heart stop loss.

This is why I did not have because I learned from him just mental stop loss, meaning that I mean,

you will be watching the prize and if it goes somewhere or whatever, you have to exaggerate.

The problem with this is that this is I mean, this is the biggest mistake that you can add to if you

are a new trader to to have a mental stop loss is the biggest mistake.

Right.

Because you are simply not going to follow it.

How?

I know.

Because I did not follow it.

Right.

I did not exit that when I supposed to exit.

Let me point out how how did it happen?

Right.

So first, let me give you a little bit of an introduction.

At that time, I was already trading full time, right?

Not only I was trading full time, I did not have any other source of income.

Right.

So this was my only source of income.

Right.

Only source of income.

Not only this, but my wife, she she was not working as well.

So basically, both of us, we were relying on this income, right.

On this one source of income, not only this, but just I mean, recently before before this moment

in here.

I don't remember exactly when actually in the in the beginning of June, in the beginning of June.

So basically somewhere right here in the beginning of June, we moved because I'm from Bulgaria.

At the time we were living here in Bulgaria.

We moved in the second biggest city here.

We moved there and we rented a nice apartment.

Right.

A very nice apartment.

We rented it.

Right.

It's not mine.

I mean, I had.

We had basically monthly expenses for the rent, for food to supply this, we had monthly expenses,

right?

Both me and her and we had no other income, just this income.

Right.

So you guys can get an idea how dependent we were on this.

Right then because this is this is important to know.

So you will see.

So we know the pressure that I felt.

Right.

Because when I started to see all my money going away, you can imagine what pressure this was, because

I knew that there is no other money and there is no I mean, this is just it, right, that I mean,

I'm done.

So basically, I don't remember exactly at what price I started to shortlisting.

I think it was somewhere in the 30 percent range.

And as you can see, it went to seventy seventy nine actually.

It went to seventy nine cents.

And I started to short it here.

I stole everything was going down, the readership was going up.

So I called my waves and I started to short this thing or I started to short it.

Now at that time I was training on eleven dollars.

I mean eleven eleven thousand dollars at Garderobe, not on eleven dollars of course because how can

you like eleven dollars a gallon on eleven thousand dollars.

Right on between now at that time I'm not ready now.

I don't know what leverage they are allowing now at the time.

The leverage, the margin it was three points 3x.

So since I was my account was eleven thousand it means that I was able to trade on a thirty three thousand

dollars if I borrowed all the money.

Basically it meant that I can borrow twenty twenty two thousand dollars more from the exchange rate.

Twenty thousand dollars more plus my eleven thousand thirty thousand.

This is the maximum amount that I can enter or that I can trade with.

Right.

Because I guess you are familiar with margin because most of the people are I mean margin.

It means basically to borrow money from the exchange to trade with.

Right.

But this is very, very dangerous, especially for people who don't know what they are doing at that

time.

Right near the time, I was not really aware of what was going on.

Right.

I mean, I was trading I was making money.

But you will see that in this one trade, I lost everything, which is I mean, how how is that?

This is a reasonable ride.

But the the reason is lack of risk management and other reasons as well.

And psychology mainly.

But I the main reason was because I do not have a stop loss.

If I had to stop loss, this was not going to happen.

Let me now give you the idea what happened.

This thing started to go up.

And I started to short it right, I cut my ways, everything like I mean, the other side is going over

both all this type of stuff that I mean, I don't even want to go into this right now.

I have course is on that side.

You can stay there to see that most people trade with are saying absolutely wrong way.

I was doing the same at the Times is why I know it's the wrong way.

People think it's overboard and it's going to go down in reality in the overboard zone.

I don't even go overboard.

I don't like these terms.

It's it is the out like always the out-of-band zone.

Right.

Because in reality, over there, the biggest moves happen in the over boat, the biggest move happen

in the over boat and the biggest down move happened in the oversoul right.

But at that time I was seeing all over both.

Let's start to shortlisting because I was combining RSI and Mike in this with Elliott waves.

Right.

So I started to shortlisting immediately.

It started to go against me or I immediately started to go against me.

Now, of course, I did not enter in a thirty three thousand dollars position that either way, I don't

remember at first what position I opened.

But since I do not have risk management, I this is why I don't even know.

I cannot even see what I mean.

If I log into the exchanges, I can find a history in this type of stuff to see what position sizes.

But I did not have risk management.

So it meant that because what if you have a property management, you will know how much your position

size is going to be right.

And if your position size is a thousand dollars, you cannot enter in a trade with I mean, in this

trade with more than a thousand dollars.

Right.

But since I did not have risk management.

I entered it with some money, then it starts to go against me and I did the second mistake that I started

to add to my position, right.

And you guys never want to do this.

You never guys want to be adding to a losing position, right?

You guys never want to be adding to a losing position.

This is doomed to failure, right?

I mean, you can be adding and you have to be adding to a winning position.

Right.

But do a losing position.

No, no, no, no.

I know this from my personal experience, because by the time it's I mean, I don't even remember exactly

where.

But at some point I was already all in.

I kept adding to my losing position and I kept adding until I realized that, I mean, at thirty three

thousand dollar losing position, massively losing position, I was fighting the market.

Right.

My ego was like, oh, this will go down.

And I will let me let me just interrupt right here to to give you idea why I was so confident.

Because also, I mean, my mentor at the time, he was on social media.

Right.

I mean, he's doing on social media right now.

But I don't even look on social media.

What's going on on Twitter, on the Twitter.

He was basically in the same position.

And he he he had the same analysis like mine.

And this gave me so much confidence because I was like, I mean, this guy in my in my in my head,

he was like authority.

Right?

The one who knows everything.

And the moment I saw that he did the same analysis like mine, I felt like a genius.

I felt like I'm right.

This thing is going to go down.

So I was thinking, he's going to go down here.

It's going to go down here, are going to go down here.

But it never really went down.

Right.

But I had this big confidence.

And it's just I mean, it prevented me from basically exiting my position.

I have a chance I have the chance to exit with the one thousand dollars loss.

I did not take this chance because I.

I mean, I was like I mean, they're gonna I had this mentality.

I mean, they're gonna lose everything and I'm going to make a lot of money.

This thing cannot continue to go up forever.

So I waited.

And I can tell you that these were the two the longest two days in my life where I waited to be liquidated.

Right.

I, I just watch it continue to go up and go up and go up.

The loss was becoming bigger and bigger and bigger.

So there were no sense anymore to close this position.

I mean, if I'm going to lose eight thousand or eleven thousand, I mean, the difference is not that

much.

Let's just hope let's just hope this thing is going to stop.

But it never really stopped again.

The longest two days in my life because it take two days, right.

Two days for this to play out.

Two days just I mean, absolutely.

I mean, I was in absolutely desperate stages looking and hoping that this and being so angry that I

did not get all this position earlier and all this pain.

And it's just I waited, waited, waited until I got liquid there.

And then I throw my phone in the wall.

I broke my phone.

I basically disappointed everyone.

I disappointed my my family, my wife.

Everyone was so disappointed we had to leave the apartment because I lost all the money.

So basically, we had to leave.

We did not have money to pay the rent anymore.

I did not even have capital to trade with.

I had to now start working a job.

Right.

I have I had to start working some job that I hated in order to save money to start trading again.

And it was a painful, very, very painful experience, guys, and I really don't wish anyone to go

through this.

So this is why I'm telling you this management is so important, because if I had a stop loss, this

was not going to happen.

Right.

The stop loss was going to be hit.

I was going to exit.

Go and take the next right.

That's it.

Right.

You cannot.

But what happened is that I lost all my money in this account in one trade.

Right, because of lack of risk management.

Now, I can cut this video because it's probably getting too long.

And in the next one, I will share with you my other experience.

Right.

Which is, again, because of lack of risk management.

But if the take away from these guys is that you always have to have stop losses and proper risk management,

I mean, my idea with these two videos with this one and the next one is to create references, basically

believes in your head that you always have to have a stop loss and risk management basically to get

the idea why risk management is so important.

In this video, I will share another story from my personal experience, which will give you an idea

how risk management I mean, how important risk management is and why why you always have to have a

risk management.

Right.

Let's now open the Bitcoin chart because because this happened on the BTC chart.

Let's delete this and let's go to our weekly chart.

I will show you something intriguing right now.

Just give me a second.

Let me just say, actually, we need the BTC on the Bitstamp.

Let me see if I have it here.

I mean, we need the Bitstamp chart because the Bitstamp charm, Havelock, has a longer history, right?

So let me now open here something.

We just needed a 21 exponential moving average guys, if you are not aware of moving averages, I have

courses on moving average empty teaching, moving averages exponential mostly.

Right, because I'm using mostly the exponential I actually hear.

So what I want to show you now is this is Bitcoin, I don't know if you are familiar with it, I guess

you are most of you know, this type of stuff if you are not before what happened.

I mean, there was I mean, the previous bull market.

This is this is actually the previous bull market that end up in the end of 2000.

Seventeen.

Right.

And then the bear market happened.

But the bull market before this, because the bitcoin is going in cycles, just like everything else,

it has a bull market uptrend, then a bear market downtrend, then a bull market again uptrend, then

a bear market.

Right.

So it's going through these type of cycles that you can make a lot of money if you want to one of these

cycles.

Right.

And this is what I was trying to do when I when I did my second biggest loss.

But I will give you an idea in a moment.

Let me first show you here.

So basically, this is the bull market before actually this is this is even before.

And then you see again, bear market, then another bull market.

Bear market.

This was in 2014.

And in 15, basically at the end of 2015, the new bull market started.

Right.

So basically after this scenario, the new bull market started.

Right.

And why I was looking at this type of stuff and why everyone was looking, because we we were looking

when we were down here.

Right.

We were looking when we had this bull market, then a bear market, then we were waiting for the bull

market to start.

And first we wanted to know everyone wanted to know how it would start and then what's it start?

What is the best way to start adding for a long term position?

Right.

Because look what happened after this bull market started, right?

This bull market started right here at three hundred dollars roughly in November 2015, and then just

in the end of 2017.

So in two years, the price went from three hundred dollars to twenty thousand dollars, guys.

Right.

So you get an idea how important it was to to basically to position yourself and to catch something

like this for everyone.

Right.

Not only for me, but for everyone.

Now, look now what happened first, if you guys are aware of market structure, I'm not sure.

If you are not, you check my courses.

I'm teaching market structure because it's very, very important.

Market structure is simple.

Higher levels, higher highs, uptrend, lower lows, lower highs, downtrend.

When you are getting lower highs and higher laws, you are getting Trango to squeeze your eyes.

You always have to be aware of the market structure.

Now, on the weekly timeframe, the market structure changed right here.

We are already in a bull market, right?

We already made actually in reality, it happened right here.

I mean, here we make the first potential, A, that make your heart high.

So we already had a change in market structure.

But as you can see, it is moving down.

It was I mean, it was tough.

So some people consider here the start of the bull market.

Right.

And I understand this, but anyway, if it's here or here doesn't really matter.

My point is that after the bull market started, let's imagine it's was here.

Look now how prices reacted when it went to the twenty one exponential moving average.

Again, this blue line is a twenty one exponential moving average.

If you are not really aware of what is this, I'm not really going to dive into this.

You can check my courses and you will find out more out of the more exponential moving averages and

how you can use them for an Asian strategy.

I am trading now.

My strategy that I'm using now all the time is with exponential moving averages right now.

Look how this basically where it's touch first touch.

It happened here in January 2016.

Then here, this is not really touch, but we can I mean or actually let's just don't even categorize.

Let's call this one that are clear three times three weeks that retouchers here.

Right then here we got how many.

Five, five times.

Then here, one more.

This one is very, very close.

Solid.

Just count it here three.

Three more times.

Right.

He had another time, but you guys now who haven't seen these, you guys are like, oh, man, this

is free money, right?

And it was free money at the time, but not.

And this bull market.

Right.

Then I'm going to show you.

And the first time that we close, I mean, as you can see during this bull market for two years, we

never really closed below what I mean by close the candle to close below this to anyone exponential

moving average.

Right.

So basically one here.

Let's do this.

These are tough times, but let's just count all this as one.

So one, two, three.

All this we can count as one, three, four, five, six, seven times guys for two years, seven times.

And this was the best the best place to buy.

I mean, this was just the ultimate place to buy Bitcoin.

Right.

And just to hold it, just buy and hold, buy and hold.

Even if you don't trade, you are just only buy and hold that you are going to make tons of money,

buy and hold during here these buy and hold during these see the levels 350.

Let's actually let's actually see if we are buying here.

So now one time here.

Second time here, OB's.

Third time here, look at these trades guys, let's see now how much what are the returns?

We will get an idea how excited I was right for this scenario.

Look at this, and I'm not even going to the exact spot, but you will get that idea still.

Let's now bring this to 20000 because this is where it ended up.

So let's bring this to 20 thousand.

And, of course, it's unreasonable to think that you will exit exactly at the top.

But just to get a perspective, what kind of returns we are talking about.

Right.

Because here we have seven trades.

In the matter of two years, seven trades that you guys can see that you guys can see what type of returns,

right?

The first one, the best one five thousand five hundred percent profit, 4800 percent profit, three

thousand four hundred percent profit, two thousand four hundred forty four percent profit, one thousand

nine hundred sixty six percent profit.

Nine hundred and fourteen percent profit.

Five hundred thirty four percent profit.

The words trade guys that in reality took just less than three months, three months, actually the

worst trade that take three months.

It gave you five X right by X guys.

So you guys can get a perspective how excited I was right.

To catch this.

Not only excited, I was sure that basically I'm talking about this here.

I will sure that when the bull market started this to anyone is going to be the ultimate spot to buy

the best parts to buy.

And it is just the most it is it's not the short, it's not the if, it is the most when this comes

into play to buy.

Right.

And to do this over and over again until we go to the moon.

Because, I mean, I was expecting this type of scenario and this type of scenario can again happen.

But just it's probably going to happen in a little bit different way.

Right.

Because many people were looking at this same scenario and this is why this happened.

Right.

But let me give you an idea what happened.

Once we break above here, it was very clear that the the bitcoin is I mean, the bull market started

right at descale.

So I I was participating in this breakout.

So during this time, I had some positions.

Right.

But not exactly as much as I wanted.

Right.

So during this whole time, I was waiting for this thing to go to these twenty one so I can buy those

of Bitcoin.

Right.

So I can buy as much as possible because I was expecting them to.

I mean as you can see seven times here for two years, it never closed below the twenty one.

So I was sure that the same is going to be again, so during this whole time for about from here, let's

say during this whole time, another day, 61 days, I was waiting for this 21 to come into play for

the price to come down here.

And I was going to buy a lot.

Right.

And this is what happened.

I bought a lot here, right?

I bought a lot.

And at this time, of course, I was trading with risk management and all this type of stuff.

So I before the previous example, I did not use risk management at all in twenty eighteen here.

I absolutely traded always with risk management.

But in this scenario I was just so sure that this is not going to close, that I break my risk management

rule and I and there I was like, oh it's OK.

I mean let me just enter a very weak position here.

I was not even considering this to go wrong.

Right.

So I just I was so sure that this is and that this is just not going to close below this that I was

buying.

I mean, the more down it was going, the more I was buying because I was like, this is going to be

a week just like here.

Right.

You see this week's, for example, right here, you see this week, guys, it went below.

But by the time the week close, even this one, this is even better example because look how big it

is.

It went down a lot.

But by the time the weekly closed, it went back about right.

It went and it closed above.

So I was like, oh, this will close above by the end of the week.

So the more down it was going, the more I was seeing it as an opportunity to go back.

But by the time Saturday, I already started to panic because it's not looking like it's going to go

back.

And by the time Sunday it closed below and I ended up at a very big loss.

Right.

I mean, I still had the discipline to exit, right?

Because if it was my all my previous me, I was not going to exit here.

And I was like, just going to hold it.

And if it continued to go down, I was probably going to be liquidated.

Right.

Because I was in a big budget position, but I had the discipline and I was like, OK, I was absolutely

wrong.

Just exit.

I mean, I broke my rule.

I broke it.

Right.

I risk more than I have.

I should head on a single trade.

And I lost a lot of money here.

Right?

I lost a lot because just like I told you, the more that it was going, the more I was buying because

I was expecting it to bounce and I was even going to make a lot of money, but it did not.

So I lost a lot not oh, I lost a lot.

But basically I still had the power.

So I improved a lot at the time because I had the power to just accept this loss, take it and continue.

Right.

I knew that I have a strategy.

I knew that over time I will make this money.

So it is just OK.

I accepted it and I lost it.

Right.

The problem was that after this happened, as you can see, it went for sideways, right?

It went sideways.

And then this this scenario right here, it was I mean, here I was thinking that basically if we check

the bottom guys on this scandal, I can assure you the bottom is very big.

I was thinking like, look at the bottom, right.

Look at the bottom of this scandal compared to this previous scandal.

So I was like, oh, man, this was a trap.

They just knew that everyone expected this to hold.

So they trap the people so they will exit their positions.

So they will load.

Right.

They will load their position.

And now this is going to go up so fast.

I mean, they start to make up some scenarios here.

And obviously, I mean, I was wrong.

So this was this was a trap, right?

No, this was the trap.

But this trap.

Absolutely right.

So here I broke my rule again.

And as you can guess, I mean, I lost a lot, right?

Because I was like, oh, man, I'm so angry.

I'm so mad.

I mean, this how they did.

They dropped me so bad.

Now we are going to the moon.

Let's just go as much as possible because I was right.

This thing is going to go to the moon.

This was just a trap right here in order to for the people to I mean, for the people to be stopped

out.

But so I basically here is where I lost the remaining right.

I mean, I did not lost everything here, but here I lost almost all the remaining because I enter too

big.

And as you can see, it closed below.

So I exited, but I lost a huge amount.

Right.

I mean, is just how it is.

Right.

And this is all because of.

No, I broke my wrist measurement rules.

Right.

And of course, there are other reasons behind the scenes, like not accepting the opportunity to be

wrong.

I mean, not accepting the possibility to be wrong.

I was absolutely certain that this is going to happen, but it did not happen.

Right.

And again, just just to mention something here, guys, and I will I wouldn't tell you because.

At this time, again, this idea I get from from my second mentor, right from my second mentor, he

from him, I saw this scenario and he was very sure guys.

He was also very sure that this actually from him might get the idea to be so sure, because he was

like so sure that this thing is not going to belong to anyone.

He was absolutely sure.

And then this is why I mean, I'm not about to blame someone else.

It's absolutely my I mean, I'm taking all the responsibility.

No one told me to enter without risk management or something like this.

No one ever told me something like this.

So it's all my fault.

My point is that, I mean, this gave me additional confidence because I was like, oh, he knows what

he's doing.

So I gave him additional confidence.

And this is what happened.

This is why now, guys.

Some of you who are in my discord, because as you guys I mean the one of you who don't know, I have

a discord group.

Let me just quickly show you the discord.

You can find the link in the course I saw on my website.

If you want to, you can find the link.

Let me just show you my website.

Just quickly, you can find the link to join my Dischord group, because this is where you can ask me

any question, you can be in an environment with other traders, right?

This is my group.

You can get your invitation and to join.

So you will be in an environment with other traders, right?

Very good environment where everyone is sharing what they are learning.

You can see, guys, we were all together in this environment.

You can find this link the best.

You can just open my website, Bobby B dot dot com right there.

Navigate to about me.

Page, again, my website is very similar, dot polka, dot com, you can find it in the search, then

just go down and you can find here the resources, right, my YouTube, my discourse.

You just click here, join the group, I'll show you and you will be able to join my group.

You will get an invitation to join got the 217 members, so this is how you guys can join if you want

to and you can join here, ask me a question.

My point was why I'm telling you this, because many people are asking me often for predictions.

But this is why I never really want to get prediction guys.

And I'm doing my best.

I mean, I want to help.

But in the same time, I never really want to give predictions because I know that people will run and

take a trade based on this prediction without preparing themselves for if this is wrong.

Right.

Because they think that if someone told you if someone I mean, if someone that they trust tells them

something they consider it's truth.

Right.

And this is why I'm telling you this, because I was doing this right.

I was considering what these people are telling me the truth and I was making decisions without preparing

myself for what if they are wrong and this is what happened.

Right.

So this is why I'm I mean, you guys, I know that you want me to give you predictions and stuff, but

I really don't want because this is very, very dangerous.

And I I wish you the best.

I don't want you guys to lose money based on this type of prediction.

So this is it for this for this video.

I just wanted to give you another example how important risk management is.

And it's a must, right?

Always, always, always.

But don't you guys worry?

In the next lectures, I will talk about how but basically how to calculate this type of stuff.

And I'll give you also training, spreadsheet trading, slash trading diary where this diary is trading

spreadsheet.

We would be doing the calculations for you automatically so we don't have to worry.

Now I'm out for this video and always remember protect your money first.

Always know that you're going to be wrong many times.

Always know that everyone is wrong, many times even the best in the world.

And you have to manage the risk.

If you do, I will talk about the risk management system.

Right.

So I'll give you an idea how to calculate it, because it's important to know how you are not going

to do it always manually.

Right.

Because in a negative way, though, I will give you my training spreadsheet, my trading diary that

is calculating this automatically for you.

But still, I want to show you how the calculations are being done so you can get an idea.

Right.

So first thing you are always going to risk.

You guys already know this, right, that you are always going to risk a maximum of one percent of your

trading account on a single day.

You guys always have to remember that trading is a game of probabilities.

There are no certainties.

Right.

And there are no certainties.

You'll never really know what's going to happen on 100 percent.

You cannot be sure you don't have a crystal ball.

Even the people who have a crystal ball, they are not at all trying to help us out with time.

You can check.

I mean, you check these are people like Nostradamus or whoever you want, guys.

And you say that they were on many, many times.

Right.

So even if you have a crystal ball, you always still have to imagine what the guys I mean, even if

you have a crystal ball or if management is just as important as it is even I mean, if you don't have

a crystal ball, just like most of us, we don't have so one percent on a single trait, what does this

mean?

How do you calculate one percent?

Just I don't even have to write this down, guys, because it's very, very important.

Just whatever your account is, I sure know how to calculate it.

So you know what your risk amount in dollars is, right?

So I can actually write it down for you.

Let me write it down for you.

Let me just put this here like this anyway.

Just a second, OK, perfect, let me write this down for you.

So this is the guy I mean, if you want to know how much your risk in dollars is going to be, just

multiply your account size, your account balance to 0.01.

Right.

And I'm going to show you now.

So if your account is 1000 dollars, just multiply 0.01.

This is one percent.

Right.

And it means ten dollars.

Your risk amount in dollars is ten dollars.

So I can actually write this one for you here below.

So your risk amount is going to be ten dollars.

If your account is one thousand dollars, multiply 0.01 and this is going to be your risk.

Right.

This is how this calculation is being done.

If your account is, let's say, two thousand five hundred dollars, you are the same 0.01.

Twenty five dollars Bumpe.

Right.

If your account is I mean let's say it's fourteen thousand.

Right.

It's going to be a hundred and forty dollars.

Right.

It's very simple math.

One hundred and forty dollars.

This means that if you lose distrait or whatever trades you are going, I mean you cannot lose more

than ten dollars if you are trading on a thousand dollars account, you can never lose more than ten

dollars on a single trade guy.

So this is key no matter how sure you are.

Don't be like me.

I was so sure about this bitcoin trade, actually.

Let's just remove this.

I was so sure that this to anyone will hold and I took a big risk and I lost more.

In reality, we should never lose more than one percent.

Right?

In reality, in a thousand dollars account, you should never lose more than ten dollars.

Right.

So this is the first thing that you need to know in order for the risk management system, right?

So the first thing that you have to know, let's right here one let's put one big number.

This is the first thing that you guys have to know.

Actually, let's just put it.

This first thing is how much you are going to risk.

On a single train ride, the second thing that you guys want to know is.

Let me try this here second thing.

Actually, I should say,

this is the second thing, right?

The second thing that you want to know is where your Stop-Loss is.

So this is the second thing you want to know how far from the price right now your Stop-Loss is.

And I'm going to show you let's just make this bigger.

Let's just go on a daily timeframe or actually we can even go on a two hour time frame.

Let me just put the E.M.S. here up.

We just need all the e-mails.

I'm just going to give you an idea.

This is a strategy that I teach.

This is with MS.

But we're not going to go into this.

Right.

Let me just see if here we get an idea here.

There was an entry.

So let's say that you are seeing here the moving averages to cross.

Right.

So you are going to enter a trade.

Now, it doesn't really matter what your strategy is.

The guys, at some point you will want to enter trades.

Right at this moment, when you decide to enter a trade before you enter the trade, you have to identify

first, as you already know, how much you are going to risk.

Right.

The second thing that you want to identify is how far your store is going to be, where your stock price

is going to be.

Right.

So if I'm seeing this, basically my strategy, the strategy, my strategy that teaching is giving an

entry right here.

So it gives you an idea right here.

But before I enter, I want to identify where my store are going to be.

In this case, I will pick a stop loss somewhere below this level, right below this level.

So now I have the second thing that I have to know before I enter a trade, which is how far my stock

is.

Right.

And this is this number is two point thirty seven percent.

This is what we need.

Right.

And as you can see, this trade is beautiful, right?

I mean, right now we're sitting at eight point twenty three.

Recent reward still did not give exit.

But it's let me now go back to this.

The second thing that we want to know is how far our stop loss is.

In this case, our stop loss was actually I can just delete this and use this.

Our stop loss was to point I don't remember.

I forgot already two point forty three or whatever.

It doesn't matter, let's say two point forty three percent away.

Let's just make this a little bit more than one from from the other one.

So now, you know, the second most important thing, how far your stop loss is basically from your

entry price.

Again, you are not entering yet, guys.

You have to be aware of this before you enter.

You are doing this process right here.

And after you do after you find out these two.

Right.

Ten dollars come out in dollars.

The stop loss is two point forty three percent away.

Now, you can calculate how much your position is going to be and then you will be able to enter.

Right.

So this system guy that I'm teaching you right now, it's designed to protect you basically.

So you cannot really enter without a stop loss, right?

You cannot enter without risking more than one percent and you cannot enter without stop loss.

Right.

I mean this I design it in a way that can prevent me, because my problem was that I was risking too

much on a single trade and I did not even get osteoporosis.

Right.

So this with this process, with this system that I teach you now, you will eliminate if you are strict

with the course and discipline, you will eliminate this problem instantly, just like this, right?

I mean, you can because you cannot enter without it now.

So now after you have these two, you just divide.

Let me first before I let me write this down for you.

Now, you will get your risk amount in dollars.

Let let me just put it at risk dollars, you know, what is it right?

It is this one you just divided by.

And what you will get is your.

Your position seems like you will get your position sorry for these guys, you will get your position

size right, let's now do the calculation.

So 10 dollars is your risk, right?

Ten dollars divided by zero point zero two four three.

Because at this point, I mean, this is two point forty three percent and your position is now four

hundred and eleven dollars.

Right.

So let's write this down here below.

So basically you do these calculations then dollar by zero point zero two four three and it equals four

hundred and eleven dollars.

Right.

So it means that you will buy Bitcoin for four hundred and eleven dollars.

This is your position size.

And after you do this you said your stop loss.

Right.

You guys know how to set stop losses and all this type of stuff.

If you don't know you can.

I mean, in my quarters you can see I have four courses for beginners as well that teach type of and

all this type of stuff.

So you then are going to set your Stop-Loss right away and you are all set, guys.

You are all set even if this trade goes against you.

Right.

In this case, this trade went beautifully and it made tons of money.

But even if it goes against you, you will be stopped out and you will lose maximum ten dollars.

Right.

So with this system, again, you cannot enter a trade without knowing these two things that are so

important.

Right.

Because in order for me to enter a trade, I know I have to know how much my position is going to be

right.

But with that, I mean, I cannot know what the business is going to be.

I cannot know or how much money I will buy or sell or without knowing how much I'm risking and without

knowing how far my Stop-Loss is.

Right.

So this is key, guys, and I really advise you to start using this resource management system.

Now, this is what is happening behind the scenes.

Right.

I wanted to give you the whole process and everything, but in the next video, I will give you the

spreadsheet, the training diary, that we will be doing this automatically for you.

So now, if you have to watch this again, if it's not clear, I hope it is because it's simple.

If it's not, you have to watch it again just to to to get familiar and to be aware how this box is

being done.

And then in the next video, I will show you my spreadsheet and how to be using it because you will

be able to get it for free and use it for yourself.

So this is the trading spreadsheet.

This is the trading diary that you guys are going to be able to get.

First, let me show you how you can use it and then I'll show you how you can get it for free.

Right.

So first, here are the numbers of trades, right?

Here is the bear.

This is very simple, right?

You just have to type what value trading and spreadsheet is for cryptocurrency.

Right.

If you want to use it for on the other markets, you will.

I mean, you can still use it.

Absolutely.

Just you are not going to have to put here the price of the coin.

You still can absolutely use it for whatever you are trading.

Right.

So let's say that you are trading Attarian, then here you will have to put long or short position.

Right.

You have to be doing this in order for this formula to be calculating properly your profit and loss.

Right.

Because the formula is different for long position and for short position.

So you guys always have to make sure that you are put in here either if you are in the low position

or a short position, if you are in the largest type sale and it would be green if you are in a short

just type S and it will be shorter.

And the next thing that you have to do is to simply put your stop loss.

Right.

Because you guys already know how to identify where your stock price is going to be.

Actually, whatever your strategy we are using you, you always have to know where your stock price

is going to be before you enter the trade.

Right.

So let's say in this case, the.

The stop loss is three percent away, right?

So we will put three and that's it.

Stop loss done.

The next thing that you have to do is you have to put your account balance, right.

So let's say that your account balance is one thousand three hundred dollars, just one thousand three

hundred dollars.

And you will see that the risk is automatically calculated because I put here in the formula to calculate

automatically, you just have to put your account balance.

I mean, I cannot make this automatic because I don't know how much your account balances, right.

This one cannot be automatic because this one is different every time and this one is different every

time.

Right.

So these two, you always have to put it just like this as well, right.

Of course, the risk is always the same, meaning it's one percent of the account.

So when account is different, the risk will be different.

You can see here if the county's fourteen thousand, the risk is going to be another 40 dollars.

Right.

But the point is that then your position size is going to be automatically calculated.

As you can see, the moment you put a stop loss on account, balance your position, size is automatically

calculated automatically.

Now you know that you have to buy or sell if you are short selling Attarian for 433 dollars.

Right.

But since we are in the cryptocurrency market and you can be trading at Taroom against Bitcoin, right.

This thing, we are not really I mean, you cannot open a trade if you know only your position in dollars.

This is why I bought here.

But I stopped going in dollars.

Right.

So when you are this is for when you guys are trading Bitcoin bears.

Right.

I mean, outcries against Bitcoin, right, when you are trading this, you just have to put the price

of the coin here in dollars, right?

Let's say that a barrel now is four hundred thirty dollars and you will get the number of coins.

Right.

A number of coins that you have to short or long ride.

So this is how you can open.

This number is equal to the position size, right?

It is just if you are trading, I can actually show you with your right.

If you are trading.

Let me just go here.

If you are trading cryptocurrency and because some of you will be from the other markets and you might

not be aware what I'm talking about when you are trading Bitcoin bears, basically you have to know

how many coins you are going to short or long, because otherwise there is no way to enter the position.

Right.

I mean, you have to be doing these calculations manually.

Let's open that they don't BTC, so we will see what I'm talking about.

So this is there on Bitcoin from here, you can either way get the price that you are going to put here

at this price, you are going to put here, as you can see here, to open.

In short, you need the amount of a room, right?

Because the prices in Bitcoin, you need the amount of attention to know what kind of position size

you guys are going to open.

So this is what this purpose for the one of you who are going to be using this spreadsheet for forex

or something else or the the stock market.

You don't have to be doing this right.

The price of the coin, then you will just put your entry, whatever the entry is.

Let's say that the price now is zero point zero three.

Then you have to of course, when you exit, you have to put your exit.

Let's say that you exit at zero point zero three zero five hour.

Let's just make it a little bit more, something like this.

So basically here to see how many percent you made and what profit loss you made.

Thirty five dollars.

Right.

And then here, what I advise you to be doing is to put screenshots.

Right.

Screenshots.

How do you put screenshot from the trading view?

Just click this button.

Take a snapshot.

Copy this.

Then just base it here and that's it, right, and now wherever you come back, you can just click and

open and see the trade right now.

This is very, very important, guys.

This is very, very important, as you can see here below.

These are the people that currently basically enrolled in my two month mentorship program.

Right?

They are in there.

So here I can open now and check the traits of everyone.

Right.

Because, I mean, you guys want to be recording.

I want to make a point now why you want to record your trades, right?

Because you cannot progress in something that you don't measure.

Right?

You cannot progress in something that you don't measure.

So this is why you want to record your trades, because later on you can come back, either you or someone

else, for example, you can ask me, hey, I let's go and review my trades to see where my boat is

leaking.

Right.

Because, I mean, you can ask for help, but if I don't see your trades and all this type of stuff,

I have to see and find out where the boat is leaking.

Right.

And you can do this on your own as well.

But in order to do this, you have to record all trades.

So later on, you can open this spreadsheet and see, OK, here, I've done this here, I've done this.

Let's see now.

And it's much easier when you get someone, for example, like me to review.

I can quickly see where you are, what you are doing wrong and when you are doing wrong.

Right.

So here there is one more place for comments that you can put, comments if you want.

And here, as you can see, I have the spreadsheets of the people who enroll in the mentorship program.

You guys are broadly aware of my two months mentoring program.

If you are not you, you can contact me if you are interested and we will talk about it.

But I mean, I can easily now open the spreadsheet and check all their trades, write and check what

they've done right, what they've done wrong and all this type of stuff.

And you can be doing this on yourself also.

But if you don't have the data, how can you do it right?

I mean, if you don't have a date.

So this is why, guys, I encourage you to get the spreadsheet.

If you don't have one, if you have one, I encourage you to use it and to record all your trades without.

I mean, you should not do a trade without recording it.

Right.

All trades plus screenshots, because with the screenshot, it's much easier to see what happened.

Right.

To open and see what happened.

And if you want, you can put comments as well.

Where do you get the spreadsheet?

The spreadsheet again from my website.

You can find it in about me.

It about me is the page where you can find the free resources that I have, right?

So basically you can go here and find the daily routine, the spreadsheet.

So basically, we just click here and you will get the spreadsheet right.

And again, it's crucial to record your trades, guys.

It's crucial to record your trades because this is how you can grow.

You cannot grow with something that you don't measure.

So this is it for this.

Also, you can make your own if you want to, but it's it's necessary to have a spreadsheet trading

diary where you record all your trades.

So this is it for this video.

Now, you can start jumping in the other parts of the course, but I just always want to make sure that

in all of my courses for I'm talking about risk management all.