Fibonacci Practice and Risk Management

Trading is a game of probability and variables.

Our Lead Analyst Daniel tells a story that is renowned in the trading world.

Let this story be a reminder that you are swimming among some big sharks and there are no guarantees, especially in trading.

By now you should know that there is no circumstance where we don't apply risk management, ALWAYS apply risk management.

Remember the game you are playing and never try to force it, only take the setups the market presents.

You've heard this before...

We're going to say it anyway: Practice - Makes - Perfect

Apply the tools as you learn to use them and backtest them on charts.

You don't need to be hunting for setups when you're doing this.  Instead, look for previous patterns of confluence and realise that Technical Analysis is no accident.

Time Stamps

6:24 – WTC Previous COTW (DO NOT TRADE THIS)

• Daniel trades only coins that he has been trading for at least a year. He gets a feel of how they are trading. They have to trade technically well (XRP does not obey TA, therefore, it is off of the list. Too many fake-outs)

25:35 – RISK MANAGEMENT + GREAT STORY

• In trading, it only takes one person (with a fat finger) to think differently than you and the setup you thought was unstoppable is broken = there are ZERO guarantees!
• Trade from PROBABILITIES!
• Let them set up come to you, do not chase trades!

35:33 – PRACTICING FIBONACCI TOOLS

• When trading breakout of the parallel channel you can also find the target with pulling Fib – you can look at CC, the start of the channel, expansion tool for instance
• When SL would be too wide you can just wait for the change of MS and enter a bit higher. Place SL two higher lows back and therefore your trade is safer.

1:11:17 – TRADE JOURNAL

1:14:59 – Q&A