Risk Management in Trading
Risk management is an important factor for all new and season traders. We always encourage all our new traders to start with small risk ($200 to $300 depends on contract & personal experience) per trade, once they can achieve their consistency and confidence, they are then encourage to "Up-size" by using the proper percentage risk management.
As a seasons swing trader, you have to be mindful of autumn at resistance levels, and spring at support levels. When your entries are using trending indicator (moving averages), once the price reached either resistance or support levels, you need to stay alert on whether are there "seasons clues" for you to take profit and or turn direction.
Let's take a look at todays's Si-MSCI, it gap up with "spring" candle and was followed by a bullish summer signal at moving levels (MA), it traded higher to the resistance level (MF Pivot), a bearish autumn signal - shooting star was formed to end this up-move.
Now is the time to focus back on the GAP. From the shooting star, it traded down but still miss to close the gap. Once the price start to touch the support MF pivot line, traders must keep an eye on whether there are any reversal candle at this level.
In today's case, Si-MSCI traded to the support level (MF Pivot), a reversal "spring" bullish IB has formed. You can now choose to close your short position or reverse according to the new "spring" setup. Price eventually retrace back up and closed the day in summer season.
Throughout the whole trading day, we have 5 swing opportunities using proper risk management & seasons color tool to execute every trade.
The outcome? It was shown on the chart.
RISK DISCLOSURE STATEMENT:
THE RISK OF LOSS IN TRADING CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND OTHER SIGNIFICANT ASPECTS OF THE FUTURES MARKETS. YOU SHOULD THEREFORE CAREFULLY STUDY FUTURES TRADING BEFORE YOU TRADE.