In this video, I talk about how I manage risk as a day trader, r multiple, position sizing and so much more! Follow my socials: Instagram - / umarashraf Twitter - / umarashraf #daytrading #trading #riskmanagement
Our goal as traders is to stay alive and the one way we can do that is by MANAGING our risk! Please trade responsibly and make sure you dont oversize or put on massive risk!
Each day it's like i will die today suffering from harrasment blackmailing tons of calls everyday everything is out of my hand please understand that my situation is worst i don't have a choice but have a fire in my self please request you please support
A true trader will get to know that without support he can't live if you where in my situation and I was in your situation i was helping how much I can bcz I feel the pain going through
I am in a difficulties situation i am hard time in financial my debt is $16500 monthly interest is 3.5% on over due amount it's been 3 months i am not able to pay my debt charges are adding up getting tons of calls harrasment blackmailing everyday everyday it's like today is my last day that much pressure is near my neck I need funds around $7000 to $8000 so can get some time and fix my debt I need one chance it's been 9 months handling this now it's like everything is out of hand without support I couldn't I am 23 years old failure happen from everyone but we do lean many things I know what i have done i have releasized i leant from it i know now how to fix my debt but i need support need one chance i don't have a choice
Have a fire in my self when I need support no one comes to support even u went in this phase what I am going through u can find easily fake and real u know that not everyone comes out from it. U have a power to give me a opportunity it's all Depends on you
Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid economy crisis, and even pull it off easily in favorable conditions. Unequivocally, the collapse is getting somebody somewhere rich.
I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or market condition, but such execution are usually carried out by investment experts with experience since the 08' crash
The issue is people have the "I want to do it myself mentality" but not equipped enough for a crash, hence get burnt. Ideally, advisors are reps for investing jobs, and at first-hand encounter, my portfolio has yielded over 300% since 2020 just after the pandemic to date.
i'm blown away! mind sharing more info please? i am a young adult living in Miami where i've encountered several millionaires, and my goal is to become one as well
NICOLE ANASTASIA PLUMLEE' is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Luck is way off the picture. Jonas Herman, a licensed fiduciary is the brain behind my success. I've gotten into a plethora of assets with $19k spread across stocks (options and futures) for the short term and Roth IRA, index funds, cryptocurrency and ETFs, for the long term. Now with over 91k in roi, I sit back and just reinvest at intervals while I handle my other businesses.
I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024
Since risk is at an all-time high right now, perhaps you should be a little more patient and return when it has decreased. Alternatively, you can consult a trained financial expert for strategy.
It's been quite a pump. But you know, with crypto, the big question is always when to take profits. What are your thoughts on that? I've been holding $250k worth of crypto since 2021 and seen it pump n dump
I've been keeping an eye on the charts, and it does look like a major breakout. The real challenge is predicting when this pump will end. Timing the market can be tricky.
Right, when it comes to situations like this, it's ideal to engage in various options using an advisor, and I can attest to success of the basket approach seeing my portfolio grow from $350k to almost $1m in barely 3 years, by far my best financial milestone.
I'm DCAing in Pbatesltd as well. ETH heavier DCA and ALGO. I'm taking your advice and starting Google tomorrow with a 50 dollar purchase and continuing Microsoft and Apple. VTI and VOO on another app and longterm portfolio. Here we go family!
I just want to say you i believe in myself that I am more capable than i have ever imagine I need one chance I need some funds ($8000) so I get some time to fix my debt whatever it's happens I will keep going on in life i really want to do something meaningful in life by
I wish you see me as in you I have a fire in myself but don't have a choice I want to do something in life i badly need your support it's an emergency please🙏i don't want to cry i don't want to give I want to fight please i releasized my mistake now i know what to do
don't have enough time my time is running out even in my last stage of my life even god give one chance to fix everything I know now what was my mistake and i have learnt now I know how to earn it back I need one chance I don't have a choice but have a fire in my self
Your support would mean the world to me, and it would be a beacon of light amidst the darkness that engulfs me. I will forever be grateful for your compassion and generosity
found this channel a month or so ago and have been hooked digesting different past videos ever since. very clear, and very articulate in what he points out. keep 'em coming. thx for sharing!!
How to believe in one's self... Just to even start to begin to learn.. we must have the baby steps very well defined. This schooling is just that. Take it easy.. let us all work our optionality.. to keep on survival mode until we can master the arts of autonomy. Thank you, Umar. You have parresía!
Thank you for clarifying the distinction between the amount invested vs the amount risked. I remember having a small eureka moment when I noticed this when reading one of the books Umar mentioned, The New Trading for a Living. Appreciate you bringing this to greater attention given how easy it is to be confused about it.
Great info but stock price/risk is easier to calculate than options…if using the stock chart with options for r/r then the calculation is skewed due to premium…may enter a contract at .90 risking .10 for a stop at .80 but .80 can hit prior to your stop level on the stock chart and that level can now be .70 so your risk is messed up
You work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K in a meme coin from just few months ago and now they are multimillionaires.❤️
you know what your risk is on that $10K ? Almost certainly the whole $10K. If you have the mindset to follow "some people" & hope for the best ( which in most occasions means. "it will go up " ) then you probably are not disciplined enough to take a pre-set stop,( a loss ) because you have an expectation that "it will go up", or "it will come back". That's not trading. That's blind speculation. You are better off spending the $10K in Vegas.
Thanks Umar. I remember a few videos ago you caught a lot of push back on saying that if you risk $1 to make $1, that was a bad trade and it's not sustainable. That push back included me. I know this triggered you to make this video. I now see your prospective. If you're profitable with a higher multiple than 1, you can stay in the game even with a 50% win rate and still be profitable. It didn't make sense when you said, but now it does. Because over a period of time, if you're risking more to make less than your risk, eventually, your risk is going to wipe you out, because you're going to lose trades. That's just a part of trading. Kudos!👍👍
Great video! I really have a question. For someone with less than $10,000 to invest, how would you recommend we enter the crypto market? I am looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally. What's your take on this approach?
Trading without a professional guide....Hud i laugh you, because you will remain where you are or even make huge losses that will stop you from trading, this has been one of the biggest problem to new traders
Ms Layah Heilpern was my hope during the 'bear summer' last year. I did so many mistakes but also learned so much from it, and of course from Layah Heilpern .
She is my family's personal broker and also a personal broker in many families I'm United State, she's a licensed broker and a FINRA AGENT in United states
I realized that the secret to making a million is saving for a better investment. I always tell myself you don't need that new Maserati or that vacation just yet. That mindset helped me make more money investing. For example last year I invested 80k in stocks and made about $246k,but guess what? I put it all back and traded again and now I am rounding up close to a million
You work for 42yrs to have $2m in your retirement, Meanwhile some people are putting just $20k in a meme coin for just few months and now they are multi millionaires. I pray that anyone who reads this will be successful in life
Thanks for continuing updates I'd rather trade the stock market as it's more profitable. I make an average of $42,500 per week even though I barely trade myself.
PLEASE ADVISE ME. I was told to spread my savings across different things like BTC and Stocks to protect and support my retirement. with everything being shaky,I'm considering going into Trade. i don't wanna make the wrong choice.
you must have these things in mind 1. Have a long term mindset. 2. Be willing to take *risk*. 3. Be careful, if you're not spending to earn back, then stop spending. 4. Never claim to know - Ask questions and it's best you work with an assistant.
Yo I didn't know Kate was this popular,my cousin trade with her for some months now, I tried but couldn't understand anything it's not my thing tho so I passed Lol. I can testify that trade pays very well because my cousin at 23 bought a house already.
When it comes to Trade, I can confidently say that bitcoin is the best option. But most people think it's all about buying and leaving it to rise but It takes a lot more you need to trade it to earn daily.
Umar, you are the BEST, brother. Your educational videos are always phenomenal. I love them. Thank you for being honest and straightforward. More blessings.
Stops can take most traders out depending what asset they are trading. Dow for instance most traders get whiped out daily seeing their stops hit multiple times. Deep topic. trade smaller than you want to. you can always add. I am a swing trader mainly so I walk away from my charts and my stops are far away from my entry i would say 80% of the time I come back with my limit order filled then on to the next trade
I trade forex and there are EAs that will size your position automatically. You can tell it you want to risk, let’s say .25% of your account and then you position your stop loss on the chart and click buy or sell. I trade on the M1, so I have to be fast with the order. There’s no typing in trades, just drag and click.
is just a basic vid regarding risk management ,good for traders that like go full margin(gambling habit) to know basic RR ,i hope in future umar can make more advance theory vid thanks
If you wanna be successful, you most take responsibility for your emotions, not place the blame on others. In addition to make you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet people still invest and succeed. You must look outward if you wanna be successful in life.
Bro this video was so good I really needed this and omg the aesthetic is so clean keep up the amazing work big dawg ima get there and surpass you one day stay grinding
Impressive.Thank you Ömer😍🙏❤🙏 Very clear speech you've made. You opened up my mind. Risk Management is really one of the most important keys to Trading Education.Thanks
OH GOD, THIS VIDEO WAS SO MUCH NEEDED FOR ME. I USE TO MAKE GOOD AMOUNT BUT WIPED OUT MANY TIMES AT THE END OF THE WEEK, NOW I WILL IMPROVE MY R THANX UMAR FOR THIS BEAUTIFUL VIDEO..
Yh I have, he once thought me how to trade for about a month, and He was actually friendly through out. i can now profit $800 - $1,500 every day on my own without any fear of making huge loss.
Great content here and love the way you break it down Crypto is bringing a different revolution in the world economy. People who are optimistic investors earn consistently.... others will just sit and watch. Already making over $56,000 profits and hopefully more in next bull run
56k waw its a lot of money rly happy for you.... I know its kind of weird but i was wondering if you can lend me 50usd... or as gift im desperate I just need a little help... one night i opened a postion and accidentally droped my phone and my screen got broke so i couldn't get in time which lead me to blowing up my account... I know its not your problem but if you can and i know you can pls help a brother out im really desperate... you have no idea how much u could help me
Just wanna say THANK YOU FOR THIS VIDEO i have seen some your youtube and few videos but this one hit home for me on the risk to reward thanks again also seen you on rizdom podcast one and two times great contents.
Hi Umar, Listening to your short videos from last 3 to 4 days. Would like to inform that I am that person that risked a lot to get little profit & one day it wiped out. Thank you for taking on the core points which I need to follow.
I'm using a tiny account as a beginner, which is a real pain, but I think it's teaching me early about risk management and being very precise about my stop loss placements. It's half the battle to winning. I always ask what my risk is in relation to potential profit and am I allowing for those crazy blips in price that come out of nowhere sometimes.
Yeah, but you can only compare upside and downside risk if the odds of an instrument going up and down are the same, which is never true because stock prices aren't a random process. You can't use probabilities, stock returns don't fall on a normal curve. And, ok, this is a big point of frustration with me: You also don't address that the closer you set your stop, the more frequently you will be stopped out by a momentary fluctution, so by setting your stop at a small fraction of your potential profit, you're decreasing the loss amount, but you're greatly increasing the odds of a loss. For instance: You could set all your trades so you shoot for $10 profit every time, and, every time, you set your stop 1 penny below your purchase price. Yeah, that's a 1000R trade, but you'll lose all your money that way, because no stock will ever rocket straight up after you buy without dipping at least a little. And, again, you can't use the rules of probability (like placing your stops at 1 standard deviation away) because stock returns aren't normally distributed. Placing stops 1 stdev down does not mean you will win 84% of your trades as if you were betting on dice rolls. Over time, the fat tails of the stock return distribution will kill you if you try that. A 5R trade might get stopped out 6x more often than a 1R trade, so you wind up losing more money than if you'd just set your stops for 1R trades. You don't address how to know if it is even possible to find a "sweet spot" where moving the stop closer doesn't increase your odds of losing by the same amount or more. I wholly agree: capital preservation is the name of the game, and kudos to you for underscoring the importance of it, definitely. But nobody ever seems to address these sticking points, and without clarity on them, risk management is just a game of hocus-pocus.
First time watching your content. Excellent explanation from start to finish. You definitely earned my hitting the subscribe button. I just started swing trading and I look forward to seeing more of your content.
Great video as always man, very helpful and insightful. I'm a bit confused about something though. You showed a -3.26R after mentioning not following "Stop". The confusion for me, is that having a predetermined Stop means having a Stop Loss before executing the trade. So how is it possible to not follow the Stop? The Stop Loss has always been automatic for me during paper trades, so how is a -3.62R possible when you're using Stop? This is of course assuming you're talking strictly about Stop Loss when you mention Stop, but can you use a Stop without Stop Loss in the first place?
I have been trading for a long time. If I'm sure I'll make $1, I'd rather risk $100 than close at a loss. The main goal is not to lose money or to minimize the damage.
In trading, possessing technical analysis skills is not sufficient on its own; discipline and emotional maturity play crucial roles in achieving success. Embracing the mindset of "time in the market vs. timing the market" proves valuable, especially during market fluctuations. I attribute my growing daily earnings to Alex Heinz's valuable insights and daily trade signals, coupled with my commitment to continuous learning. Kudos to the journey ahead!
but this is not the only way. for a swing trader like me i can just put more margin into my trade and reduce the liq price. and if the price dumps i always compound into my trade and after it goes up i always take profit 50% and put it into my margin again if i need it. thats an alternative solution. but your solution closes the whole trade.
So for example, I might move my stop loss if I think I can dip below the point of liquidation so I don’t get stomped. When you say “if the price dumps I compound into the trade”, what would that look like?
@@extremeencounter7458 lets say my entry price is 2500$ and the price at the moment drops at 2400$. I will increase my Long position into that trade. So my entry price from 2500$ will reduce, but you have to watch out bc your liquidiation price will go up. But if you have enough money you can increase your margin or set a stop loss.
How do you manage R during swing plays? Like say I’m risking 1 to make 3 but during my play I technically go past where I’m suppose to exit but my trade is still not invalid and later ends up going to 3R but let’s say I don’t get that 3R and it doesn’t recover now in my journal it looks like I just blew my trade up and exited -3/-4R. “Heavy stubborn” hold some would say but I need to allow the trade to breath right?
The primary issue I have had is that if I buy a stock at $10, put a stop loss at $9, the stock will go to $8.50, triggering the stop loss, then some hedge funder will say "oh it's too cheap now.. I'm going in" and then the stock goes up to $12. What would you do in that scenario ?
