Pilar Pertama, Money Management Trading || First Pillar, Trading Money Management
If we can manage our loss and manage our lot, then our durability would be safe If we're able to control the risk, our capital would be safe That's why we mustn't play with random lot The minimum for day trading is 20000 pips Good morning friends, Assalamualaikum wr. wb. We'll discuss the candlestick chart that I already open Let's review the market progress tonight We'll continue the lesson after we review this In the morning, we already said about how to place our order spot starting from the happened candle move Let's see. There's strong seller move When seller is strong and has no meaningful rejection it means seller is dominating Gold character, when it's long like this, it'll continue or consolidation Consolidation has bigger chance. This went up, then consolidation then breakout In gold, consolidation will occur after a strong trend Don't hope that today will be extreme or opposing strongly We'll observe the each movement We already told you about how to read it this morning If we follow the steps, we'd be able to find a correct order spot Seller is dominating, then correction is starting Watch the power after the correction There's nearest psychology level here, then breakout After the breakout, it didn't continue but it went back suddenly without any rejection Without any rejection above, it becomes red suddenly Someone asked about the up power before, then I answered not yet, but we can start to sell When we order here, we get some, but we can get more in the next hour When there's no rejection then it turns strong suddenly there'll be chance to continue to go down You may watch it, either up or down When it goes up with no rejection then there's changing color candle suddenly When it turns, watch the seller power. It can only reach here It means it couldn't go lower than the low So, the power is equal It goes, seller pulled it back again, then buyer goes up again This is consolidation How long? Until it breakouts from this area If it breakouts, it'll go stronger The bigger chance is going down because seller is dominating However, watch the structure when it's formed above Watch when buyer formed its structure If it breakouts the psychology, we follow the buyer Although the trend is going down but the nearest structure is going up, so we follow the nearest It'll be tested again at the retracement because it could bounce again when it reaches retracement It could go back stronger after it breakouts the psychology level If we see by the pressure by candle character by the history, there's chance that it'll go consolidation If consolidation, it has no strong power or high volatility, it'd be hard to get profit faster You may test and try it later Gold, after a long trend, it'll go consolidation then it'll move strong again The consolidation could go for even 3 days Let's zoom out. Usually it'll move around that area
The consolidation will move around here It goes down, then it'll be pulled back again So, the power would be equal, like this until it breakouts the consolidation Follow the direction The main trend is going down However, we must watch the structure, the high and low If the high and low get higher, then we focus on buy Otherwise, if the high and low get lower, we focus on sell In consolidation, it'd be hard to get big pips especially exit quickly, because the movement is very slow How can we see the power and volatility? See the previous formed candles We can see the pressures from the history This is the evaluation and review Don't hope for a strong breakout because it's slow Be careful if you have an order, because you may be trapped Let's continue the lesson so the newbie can follow We'll discuss about the main 3 pillars in trading 3 main trading pillars so you're not trapped in loss-deposit cycle It'd happen if we don't understand these 3 pillars The first one to learn and practice is controlling psychology Or money management and risk management Always prioritize in controlling lot managing the loss If we're able to control the lot, our durability would be safe If we're able to control the risk, our capital would be safe That's why we mustn't use random lot The minimum durability for day trading is 20000 pips But, all positions must be cleared at 00.00 a.m So, budget : 20000 is for finding the maximum lot After we found the lot the next step is limiting the loss of each transaction which is around 400-500 pips Or we can limit it around 2-3% per transaction Limit it around 2% of all the transactions in a period of time I'll repeat it. The minimum durability is 20000 Limit the loss of 400-500 pips per transaction The maximum total loss in a cycle is 20% of the budget We can use 400-500 pips or 2-3% of the budget We already explain the way to apply it If we found the lot, then we limit it by using this We can use 2-3% of the budget So, the chance to fall is very small because we can manage the lot able to maintain our durability then able to control the loss. We must master all of them
For beginners, take 0.5-1% for the target If you're already know it, take around 2-3% of the budget It's still realistic. What matters is learn it well If you mastered it, you can take more than 5% Determine the budget and target For example, I want to get 2% of the budget Then, my daily target is 500 dollars So, 500 times 20, my monthly target is 10000 USD It's normal It's fine if you want 1 million dollar a day If we have a target and know the percentage we must adjust the budget Since we take 2% of the budget as the target and I want 500 dollars a day, so 100 : 2 times 500 dollars That's for calculating the realistic budget Don't aim for big profit if your budget is small It's nonsense. Our budget would run out in a short time
We wouldn't be able to be consistent because getting big profit with small budget needs big lot If the target is 500 dollars a day and 2% of the budget we need 25000 dollars We must be realistic, not using small budget with big lot What'd happen is we'll lose it all when we're wrong This is the realistic one that we can catch by logic For example, I need 300.000 rupiah a day, around 20 dollars In 20 workdays, it's 400 dollars 400 dollars is around 6 million rupiah For example, my monthly needs is 6 million rupiah It equals 400 dollars. So, the daily target is 20 dollars Then, the percentage of the daily target is 2% of the budget So, 100 : 2 times 20 dollars it's 1000 dollars For the lot, it's 1000 : 20000 The maximum lot is 0.05
We can divide it into 0.01, 0.02, 0.03, and 0.04 What matters is the maximum lot in a transaction period is 0.05 If we're doing a wrong order, we must cut loss and do recovery If you want to use the extreme way, you can use twice bigger, but try not to use the maximum lot Lets count it. 20 dollars a day with 0.05 lot How many transactions that we must do? We must have a plan The target is 20 dollars per day 2% of the budget, then the lot is 0.05
So, 20 : 0.05. It's 400 pips a day Adjust it with the pair. Each pair is different If we use EURUSD, the target per transaction is smaller In gold, we can take 100 pips per transaction 100 pips for each close transaction is very easy If 100 each, then we only need 4 transactions a day If we get 200 pips in a transaction, we only need to get 200 more Sometimes the profit we take could be more or less What matters is we can get 400 pips. It's realistic and achievable That's the realistic way to calculate. Don't do it recklessly
100 dollars budget with 0.5 or 0.6 lot It's speculation. If right, we get big profit. If wrong, bankrupt Trading is business, so we must calculate and analyze Even though analysis isn't absolute, at least we have an overview It's for our working way. It's also a part of trading system If we don't have a system or plan in trading we'd be ruined, because we'd chase profit even if we get much There's no orientation of the budget More times to order mean there's more chance to fall Let's continue to risk management and money management To be continued....