whatever guys to inductor so in this video I'm going to show you what have I been through since the first year and how do you already manage my risk at the very beginning of my trading career and this video is going to be a little bit more numbered and just make sure that pay attention to I'm saying I don't have like a board I can draw so I can pull the numbers right here and you can basically generally do your calculations let's get started so a lot of people have a small count let's assume because
I did a server before let's assume a starting on count has three thousand and four three thousand dollar account you don't have that much opportunities to really screw up if you screw up you're done so a lot of people wants to start with a small account and you're a college students or you don't have that much funds to really invest in stock market then this is your video to watch before we get into video make sure to hit the like button make sure to leave a comment below even questions is getting to it so starting
at three thousand dollar account typically what I do for portray there will be five doubt typically while I do on risk wise is 5% to 7% per trade so if I invest or if I decided to short the stock or long the stock with $3,000 or my whole accounts and I'm risking five to seven percent so the risk will be around $150 to $210 now a lot of people think oh you're just all in your account but when you are trading that little small count you have to kind of go 50% or 75% of your
entire account now before we get into that you're going all-in and you don't really how to manage your risk let me give you how to really manage all that risk plus with the pattern winning percentage now back to the start at $150 to $210 will be your risk or total and in this case a lot of beginners when are trying to get in the stock market they they're focusing into multiple strategies a lot of strategies it's good if we all really know what they're supposed to do but as a beginner you don't really have that
much simples to have data item statistics to support you to have any samples to back test and you're just going because people said it's gonna be a good pattern and you're supposed to go long here is multi-tape retail now the very good examples that I had is when people say buy a good breakout he's supposed to have a really good winning percentage but when I trapped 200 samples altogether the breakout he always turns in to fake out the chances of turning into a fake cow is about 60 to 70% so basically you are buying a
breakout within a 30% winning percentage now back into the samples so once you figure out okay well this is the maximum loss I want to lose because before it going to the mark you're going to any type of patterns you have to think about what is your maximum dollar loss it's because if you can't afford to lose this much don't ever place trades that make you uncomfortable so this is number one rule you just stick with number two general statistics I know a lot of people have a question about how to really track statistics how
what's the detail about it I will do a video about how to really track general patterns 101 for the next video so make sure turning to the next video now for broad wise general statistic is you want to track the pattern winning percentage let's say I want to track the specific actions how many times they happen which is the frequency of the ear because when I'm aiming to your strategy I want to know what's my maximum risk reward or what is my average reward what is how many times did it happen per ear so in
that case I can simulate all types of gains or the minimum gain per year the largest gain per year so I would know how much money I can make by using a $3,000 account now when percentage is also very important because from the last video I did have a three twenty five thousand dollar counts to prevent that if the pattern did 10 times losses in a row because there's a chance that if the stock has a 90 percent winning percentage there's a still a chance you can lose 20 times in a row always trying to
focus on the best winning percentage when you just start on the first year of trading is because you don't have that much chances to really screw up so growing your first initial count I will say it's the hardest to do compared to you have a bigger account now once you find the pattern frequency once you find the pattern reward can use your general statistics to really know okay so let's say I make this trade I risk about $150 and made about 450 bucks then I will have a three thousand four hundred fifty dollar account so
in the next time I can start to size a little bit bigger because I know this is a really high winning percentage pattern so in that case when you your account grows into a ten thousand twenty thousand dollar account and for me I don't really go all in that much anymore because with the three thousand dollar can kind of have to do like 75% equities and fifty percent equity but we grow into something ten thousand twenty thousand there your money starts to really show up let's say we have a $10,000 account you're using they said
thirty percent equity you can make about five hundred bucks and eight hundred bucks per day that's considered to be really good and when you grow into X thirty thousand dollar account and fifty thousand dollar count the less equity you will need to use portrayed that means you can spread your account into multiple different accounts to really protect yourself from all those losing streaks number three we're all humans very emotional and we're gonna make mistakes so we're gonna make a larger tray we're gonna make bad trades I will say you can't really prevent that you can't
not make any mistakes at very beginning I will suggest you to study as much as possible to gain as much data as possible before you really using real money into the trading world so number one backtester strategy number two manage risk number three try to endure as much to really prevent you making mistakes now be here for this video make sure leave a comment below if you have any questions I will do a video about general statistics 101 for people that just got into statistics and wants to know work to track how to track the
day hi Taillow how do you really know where is the maximum award and with words the maximum risk also leave a comment below about idea what should I do in the next video and let's wrap it up thank you for watching I will see you guys next video [Music]
