I would have been more conservative in my calculations if it's medium or long-term trading, but for day trading, especially scalping, it's always good to loosen up so that the profit would measure up with the energy and time given to it. Day trading styles are many but scalping is the riskiest and most demanding, one should carefully observe the one they are engaging in so that careful training, management and plans would be used.
Me, with $1,000 capital, x3 risk is enough for me when scalping, and I should be averaging $90 daily. But for other styles better than scalping where I must hold my positions longer, my risk would be x3.
Topic: Trading with profitability - page 4. (Read 534 times)
What if I say it is 0x leverage. It means you should not trade with leverage but with Spot trading only.
There is no 0 leverage, leverage starts from one which assume the spot trading type of an asset. If you do not want to use leverage, you will set the leverage to at least 1. Do you think your collateral is safe with x1 leverage. The coin you use as a collateral can lose its value anytime and if that coin drop 50% in price, your x1 leverage will no longer be x1 leverage.
I experienced lost with leverages and I would say, if you don't earn a lot from this market, you should not trade with leverage. Risk to lose money with leverage is big enough and if anyone think using leverage can help them getting rich, forget that idea.
Recently I find it more profitable to earn just $5 daily either through scalping or scalp trading that is turned into day trading. I am not using altcoins for this but bitcoin.
Earning $5 on a $1,000 investment is way too conservative for any trader. That's making 0.5% on a daily. On my part, I like to swing. If I were to trade a $1,000 portfolio I would place myself on a 10% weekly profit for a start and that will be not to cause me any anxiety. 10% weekly will amount to $100. That's around $14 daily. Targeting it daily will mean to pile up pressure to meet up target. Keeping it on a weekly basis will allow one the opportunity to aggregate all winnings. Trust me, there are going to be days when you will make more than the $14 and days when you won't make up to it. Doing the daily thing means traders are more prone to forcing themselves into trades even when they should clearly stay on the sidelines. 5X leverage should be okay enough to get that target.
It is better that we look at consistent profit no matter how little than to aim at huge profit that will not be consistent. If we are trading for huge profit then that is also how huge the losses will be when we lose and if you are having bad trades, you run out of capital faster. However, the more appropriate percentage of profit to aim for no matter the size of capital is suppose to be around 1-3 % per trade but a trader can also decide to increase that depending on his or her profit ability. Trading with low leverage and stop loss is advised also.
Leveraged trading can tempt someone to delay when closing his trade, especially when market conditions are rising. This makes them want bigger profits than they already have, which also makes many traders lose because suddenly, the market changes direction, and your trade gets red, which makes you lose.
It's better to get enough profit every day than to force yourself to find more profit, especially if market conditions are still like they are now. It will benefit you more than staying in that trade. The profit will be different for each day because it depends on the coin we use for trading. But if it was a daily profit of $5, I would not reject it and would close my trade.
It's better to get enough profit every day than to force yourself to find more profit, especially if market conditions are still like they are now. It will benefit you more than staying in that trade. The profit will be different for each day because it depends on the coin we use for trading. But if it was a daily profit of $5, I would not reject it and would close my trade.
Recently I find it more profitable to earn just $5 daily either through scalping or scalp trading that is turned into day trading. I am not using altcoins for this but bitcoin.
Earning $5 on a $1,000 investment is way too conservative for any trader. That's making 0.5% on a daily. On my part, I like to swing. If I were to trade a $1,000 portfolio I would place myself on a 10% weekly profit for a start and that will be not to cause me any anxiety. 10% weekly will amount to $100. That's around $14 daily. Targeting it daily will mean to pile up pressure to meet up target. Keeping it on a weekly basis will allow one the opportunity to aggregate all winnings. Trust me, there are going to be days when you will make more than the $14 and days when you won't make up to it. Doing the daily thing means traders are more prone to forcing themselves into trades even when they should clearly stay on the sidelines. 5X leverage should be okay enough to get that target. 
You must have your risk / reward ratio like 1/3. It means you should open your trading position if you see a chance to get 30% profit with that position and only 10% loss with it.
10% should be your cut-loss, not bigger.
This can be possible for altcoin traders because altcoins are more volatile, unlike bitcoin which is less volatile. Or for people that wants to go for swing trading. 10% should be your cut-loss, not bigger.
Another reason you can go for this option is if you want to leverage, but the more the risk and closer the liquidation price.
Since many days ago, bitcoin increased to $25000, have not decreased to $22000 yet. Let use use this two price range for the calculation.
$25000 / $22000 * $1000 = $1136
That is just 13.6% for swing traders.
What if I say it is 0x leverage. It means you should not trade with leverage but with Spot trading only.
There is no 0 leverage, leverage starts from one which assume the spot trading type of an asset. If you do not want to use leverage, you will set the leverage to at least 1. $5 daily from $1000, please don't joke.
If you only look for $5, your risk / reward ratio is bigger than 1/3 and I believe maybe risk is higher than reward. You should not trade if chance to lose is bigger than chance to gain.
I have done most of the calculation above to know how 13.6% is what swing traders that trade short term and go short position since when bitcoin falled from $25000 will still be expecting to gain because bitcoin has not falled up to $22000 since that time till now. If you only look for $5, your risk / reward ratio is bigger than 1/3 and I believe maybe risk is higher than reward. You should not trade if chance to lose is bigger than chance to gain.
Although I understand you that $5 which is 0.5% is too small, but 30% is also too very big for scalpers and day traders.
As an experienced day trader, or a scalper, if you have $1000, what profit will you be looking for? Also what amount is your stop loss?
You must have your risk / reward ratio like 1/3. It means you should open your trading position if you see a chance to get 30% profit with that position and only 10% loss with it.10% should be your cut-loss, not bigger.
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What leverage would you prefer to use?
What if I say it is 0x leverage. It means you should not trade with leverage but with Spot trading only.Quote
Recently I find it more profitable to earn just $5 daily either through scalping or scalp trading that is turned into day trading. I am not using altcoins for this but bitcoin.
$5 daily from $1000, please don't joke.If you only look for $5, your risk / reward ratio is bigger than 1/3 and I believe maybe risk is higher than reward. You should not trade if chance to lose is bigger than chance to gain.
One of the mistakes traders do make which I have made in the past is to be looking for a better profit. A good example is when having $1000, looking for a way to make $100 or more daily. That would be when leveraging it will come to mind, but leveraging is one of the reasons some traders find it that they are continuing losing.
As an experienced day trader, or a scalper, if you have $1000, what profit will you be looking for? Also what amount is your stop loss? What leverage would you prefer to use?
Recently I find it more profitable to earn just $5 daily either through scalping or scalp trading that is turned into day trading. I am not using altcoins for this but bitcoin.
If you are a day trader and you are using bitcoin to trade, if you have $1000, how much profit are you expecting daily? You may not use $1000, you can use percentage and I will understand what you meant too.
As an experienced day trader, or a scalper, if you have $1000, what profit will you be looking for? Also what amount is your stop loss? What leverage would you prefer to use?
Recently I find it more profitable to earn just $5 daily either through scalping or scalp trading that is turned into day trading. I am not using altcoins for this but bitcoin.
If you are a day trader and you are using bitcoin to trade, if you have $1000, how much profit are you expecting daily? You may not use $1000, you can use percentage and I will understand what you meant too.
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