The Learning Lesson From A 10% Profits Trade
Trade Analysis
Gold had been in the downtrend for 2 months.
Lazy Trend System spotted a momentum entry.
Following the rules, with 2% risk on capital, this trade yielded a profit of 10%.
Risk to reward ratio = 1 to 3
3 Keys to Success:
Patience
The trade was executed on Daily chart, there are typically less than 10 potential entries in a calendar year. Swing trader always has to be patient, follow the system and trade when the opportunity appears.
Risk Management
Never risk more than 3% on one single trade! It takes more effort to recover big losses than to grow the portfolio. A proper risk management not just help to protect capital, but also to grow your trading portfolio consistently in the long run.
A Good Trading System
Having a good and consistent trading system is the key to succeed in trading for the long run. Test, test and test the system with your risk management till you are fully comfortable with it. Keep a journal of your trades, and always learn and review the historical trades.
Gold had been in the downtrend for 2 months.
Lazy Trend System spotted a momentum entry.
Following the rules, with 2% risk on capital, this trade yielded a profit of 10%.
Risk to reward ratio = 1 to 3
3 Keys to Success:
Patience
The trade was executed on Daily chart, there are typically less than 10 potential entries in a calendar year. Swing trader always has to be patient, follow the system and trade when the opportunity appears.
Risk Management
Never risk more than 3% on one single trade! It takes more effort to recover big losses than to grow the portfolio. A proper risk management not just help to protect capital, but also to grow your trading portfolio consistently in the long run.
A Good Trading System
Having a good and consistent trading system is the key to succeed in trading for the long run. Test, test and test the system with your risk management till you are fully comfortable with it. Keep a journal of your trades, and always learn and review the historical trades.