GJ again

Plan for today is to sell 50% only due to bounce zone conditions.

Sell when cycle crossing below 143.88

Target = 142, just above 141.97 LL value

Stoploss = just above upper TL (or) H1 cycle up

GJ short

This is GJ short earlier this morning.

Banked 80pips 50% but the other half was stopped out at break even trailing stop.

Kep points

1. H4 at outer region of Daily ATR channel.

2. Strong mean set up

3. Support kicks in at yesterday's congestion area.

Money Management 2

Define Risk

There are two kinds of risk level to determine before going ahead with money management framework- i) monetary risk and ii) technical risk.

Monetary risk
It is simply the dollar amount willing to risk for each trade. Usually it is a percentage of the account size e.g, 1%, 2% or 3% etc.

Technical risk
It is a price level at which the position will be closed, usually in a loss. It can either be fixed ( e.g, support/resistance line) or dynamic ( e.g, trend following with moving average).

Monetary risk + technical risk = position sizing

So far, it is easy to calculate position size for a given set up. In the past, I used to end up here thinking that my trading plan was complete. I know my risk, TA stoploss is there and position sizing is perfect! But there is a much bigger thing to consider.