? Welcome to TradeCityPro Channel! Let’s dive into another educational segment. After discussing capital management and risk management, we now turn to one of the most crucial concepts before entering technical analysis: Risk to Reward! ? Understanding Risk-to-Reward in Real Life Before we start, let me give you an example of risk to reward from the real world, outside of financial markets. Imagine you are considering investing in a startup technology company that has launched a new product. Risk: You estimate that you might lose $500 of your investment due to uncertainty about the product's success and intense market competition. Reward: However, if the product succeeds and the company grows, you could make a profit of up to $2000. In this example, the risk-to-reward ratio is 1:4, meaning for every $1 at risk, you could earn $4 in reward. This ratio can help you decide if this investment is appealing. If you believe the risk is acceptable and the potential reward is valuable, you might choose to invest. ⚠️ The Reality of Risk-to-Reward in Trading In the real world, if you are a logical person, we all adhere to risk to reward principles. However, it’s puzzling how, in financial markets, you often close your profitable trades as quickly as possible while staying in losing trades for months. This indicates a failure to adhere to risk to reward principles. Before I explain risk management and related concepts, make sure you've viewed the previous sections on risk management and capital management. Remember, if you're not setting stop-loss orders, this lesson might not be very useful for you. ? What is Risk-to-Reward in Trading? In financial markets, risk to reward refers to the ratio between the level of risk an investor takes with a specific investment and the potential reward from that investment. This concept helps investors evaluate whether a particular investment is worth the risk. When trading, if you are about to open a position, set a stop-loss. If your stop-loss is triggered, resulting in a $10 loss, your target profit should be at least $20, creating a risk to reward ratio of 2. I won’t open a position with less than this! It's important to note that risk to reward alone doesn't hold much meaning. It gains significance when considered alongside win rate. The chart I will share clarifies the relationship between win rate and risk to reward. Look at the chart below. If your risk to reward is 1 and your win rate is 50%, you are breaking even—neither gaining nor losing. For risk to reward ratios below 1, you need a win rate of 100% to break even. Our logical risk to reward ratio is 2, where a 40% win rate keeps you profitable. We should allow our minds room for error rather than always striving for accuracy. https://www.tradingview.com/x/IJK4ZsJe/ ?️ Understanding Trading Tools Let’s take a simple look at our tools. The chart showcases two types of tools: short position and long position, applicable for both falling and rising markets. The tool displays your risk to reward ratio in the middle, with the stop-loss percentage below and the profit percentage above for long positions, and vice versa for short positions. https://www.tradingview.com/x/nbgDAYhY/ ? Why Should You Use a Risk-to-Reward of 2? Why do you implement a risk to reward of 2? Consider this: if I opened 10 positions this week, with 6 hitting stop-loss and 4 reaching targets, my total loss would be $60. However, due to adhering to a risk to reward ratio of 2, my total profit would be $80, resulting in a net gain of $20! This illustrates the importance of adhering to risk to reward principles. Even if we lose more trades than we win, we can still be profitable in the end. The key is to focus on the overall outcome rather than individual battles. ❌ What Happens If You Don’t Maintain a Standard Risk-to-Reward? Now, consider what happens if I don’t maintain a standard risk to reward. For instance, if I open a position with a risk to reward ratio of 0.5, even if I make a profit, a subsequent loss could negate that gain. If you are involved in financial spaces, you may have encountered signal channels that share their positions, encouraging you to follow for profitable outcomes. For example, if they claim to profit from 95 out of 100 positions, you might feel that winning sensation. But what is their risk to reward ratio? A ratio of 0.1 means that if they hit just a few stop-losses, you could end up in a loss. Be cautious of misleading advertisements and high-return claims. If you manage to achieve a 5% to 10% profit monthly and sustain it for a year, even starting with $100, your trading record will be respected, leading to more funding opportunities. Avoid falling into traps set by opportunistic individuals. ? Practical Trading Considerations Consider this: if you want to open a position but your target is above a major resistance level, and the likelihood of reaching it seems slim, I personally prefer not to open that position. It indicates that my entry point may not be optimal. ❤️ Friendly Note In closing, I encourage you to keep your positions until you reach your risk to reward target. Avoid checking the chart until you hit that point. Set alerts and make decisions only then. Always adhere to these rules for all your positions, not just one. Don’t worry about losing out on profits; instead, approach trading with calmness. Finally, remember that a profit in a position is not truly realized until it is closed and transformed into something tangible—food, clothing, a house, or a car.
Viking Therapeutics has been in a downtrend since late 2024, with price consistently making lower lows. However, since mid January, 2025, both the Relative Strength Index (RSI) and Stochastic Momentum Index (SMI) have been sloping upward, diverging from the price action, which continued to trend lower. IMO, this bullish divergence signals that selling momentum has been weakening despite the stock's decline, and today’s 11.5% spike reinforces the idea that this setup was in play. While a single strong move doesn’t confirm a full trend reversal, the divergence leading up to it suggests that downside pressure has been fading. The key now is whether VKTX can sustain this momentum in the coming sessions. Stay tuned!
//@version=5 indicator("TRIDENT-3 Signal", overlay=true) // 1. ट्रेंड फ़िल्टर emaFast = ta.ema(close, 9) emaSlow = ta.ema(close, 20) trendUp = emaFast > emaSlow trendDown = emaFast < emaSlow // 2. वॉल्यूम स्पाइक (150% of 20-period avg) volAvg = ta.sma(volume, 20) volSpike = volume > 1.5 * volAvg // 3. मोमेंटम (RSI + MACD) rsi = ta.rsi(close, 14) macdLine = ta.ema(close, 12) - ta.ema(close, 26) momentumBullish = rsi > 50 and macdLine > 0 // 4. सिग्नल जनरेशन buySignal = trendUp and volSpike and momentumBullish and (close > emaFast) sellSignal = trendDown and volSpike and (rsi < 45) and (close < emaFast) // प्लॉटिंग plotshape(buySignal, style=shape.triangleup, color=color.green, location=location.belowbar, size=size.small) plotshape(sellSignal, style=shape.triangledown, color=color.red, location=location.abovebar, size=size.small)
? TRADE ALERT: EUR/USD BREAKDOWN! ? ? EUR/USD has broken the trendline and key support level with a strong bearish candle! ? Sell Now! ? Entry: 1.04550 ? Target: 1.02950 ? Indicator: EMA 50 (1H Time Frame) ? Trendline Break Confirmed ! The bearish momentum is strong, signaling further downside potential. ⚠️ Risk Management: ✅ Set Stop-Loss above 1.04850 to manage risk. ✅ Use proper position sizing to protect capital. ✅ Avoid overleveraging—trade smart! ? Stay vigilant! Market conditions can change quickly. #Forex #EURUSD #SellSignal #Trading #RiskManagement ??
PDYN is a turnaround growth AI Drone Software company. From a purely Gann technical standpoint, at about $250 MM market cap, the company stands to potentially achieve substantial gains from AI, Drone, and Small Cap tailwinds in the coming months. PDYN also has an existing contract with RCAT to deliver it's drone software to. https://www.tradingview.com/x/VWKYeZ8j/ As we can see from the green vertical lines. These are points where Gann analysis expects to see turnaround points for the stock. It has fallen substantially from it's 15$ 52 week high on December 30th, but has had a reaction (correction) period of 51 days. I will note 3 Gann-based forecasts tools that substantiate a potential 40-50% rally in the next coming weeks or months. 1. The price failed to structurally break below the 50% Gann support level from the 15$ high. Aka the support level that is 50% below $15 -> $7.50. This is marked by the thick horizontal blue line. 2. It has shown signs that the 30-35 day reaction period is the bottom. The Jan 29th-Feb 3rd period. If this reaction period is not correct and the price does not breakout, then the next important bottom dates are Feb 28th - Mar 5th. These reaction pivotal times are marked by the green vertical lines. 3. Finally, one of Gann's rules is that if the 1st rally high is broken, a trend change is underway. So it stands that the Feb10th breaking of the 1st rally high of $11.86 on Jan 22nd is evidence that a trend change is underway for PDYN. STOP LOSS: $6.50 Ideally should set a stop loss 1 point from the 50% Support Level of 7.50. Risk no more than 10% of your capital on this trade.
Late to the party on this one. Perfect entry was 46.70. Volume is heating up and breaching its Avg 30D vol while breaking out of a trend. Pretty Bullish move. I can see this continuing to 60 based on this push. GL!
The Great Banana Republic of Bananadom ? In a world where sunshine dripped like honey and the very air smelled of sweet ripeness, lay the Great Banana Republic of Bananadom. Here, houses were carved from colossal banana peels, their smooth yellow surfaces gleaming. The roads? Paved with dried banana chips, providing a satisfying crunch with every step. The citizens, known as Bananadomites, were a cheerful bunch, their skin naturally tinted a warm yellow. They wore clothes woven from banana fiber, adorned with intricate patterns of banana leaves and blossoms. ? Our protagonist was Bananabelle, a spirited Bananadomite with a crown of woven banana leaves atop her head. Bananabelle wasn't just any Bananadomite ; she was the Royal Banana Baker, famed throughout the republic for her innovative banana-based delicacies. From banana bread that sang sweet melodies when sliced to banana smoothies that granted temporary flight, her creations were legendary. ? Life in Bananadom was idyllic, a continuous cycle of harvesting, baking, and celebrating the glorious banana. But one day, a shadow fell upon this sunny paradise. The Great Banana Tree, the source of all bananas in Bananadom, began to wither. Its leaves drooped, its fruit shriveled, and the air lost its sweet fragrance. Panic gripped the republic. Without the Great Banana Tree, Bananadom would cease to exist. ? Bananabelle, known for her courage and ingenuity, stepped forward. She proposed a daring quest: to venture beyond Bananadom, into the uncharted lands rumored to exist beyond the seemingly endless banana plantations that surrounded their republic. Legend spoke of a mystical Banana Oasis, a hidden paradise where the first banana seed sprouted, and where the secret to eternal banana growth resided. ? Gathering a team of brave Bananadomites– a strong banana farmer named Bananabert, a wise old banana leaf weaver named Nana, and a nimble banana monkey named Chip – Bananabelle set off. Their journey was fraught with peril. They navigated through jungles of giant banana slugs, crossed rivers of banana pudding, and outsmarted grumpy gorillas guarding banana hoards. ? Along the way, Nana shared ancient Bananadomite lore, revealing that the Great Banana Tree's decline was linked to a growing apathy among the Bananadomites. They had become complacent, taking the banana’s bounty for granted and forgetting the importance of gratitude and respect for nature. ? Finally, after weeks of travel, they reached the Banana Oasis. It was a sight to behold: a lush valley teeming with every variety of banana imaginable. At its heart stood a shimmering waterfall of banana nectar, nourishing a single, glowing banana seed. ? As Bananabelle approached the seed, a voice echoed through the valley. It was the spirit of the Great Banana Tree, reminding her of the importance of cherishing their blessings. Bananabelle, humbled, vowed to reignite the spirit of gratitude and respect in Bananadomite. She carefully collected a vial of the banana nectar and, with a renewed sense of purpose, led her team back home. ? Upon their return, Bananabelle poured the nectar onto the roots of the Great Banana Tree. Slowly, miraculously, the tree began to revive. Its leaves unfurled, its fruit plumped, and the air filled with its sweet fragrance once more. The Bananadomites rejoiced, their hearts filled with gratitude. Bananabelle's bravery and wisdom had saved their republic. From that day on, the people of Bananadom celebrated the Banana Oasis Quest, a reminder to always cherish the gifts of nature and the power of community. And Bananabelle? She continued to bake her legendary banana treats, each one a testament to the enduring spirit of the Great Banana Republic of Bananadomite. ??? What's a Banana-tastic adventure ??? https://www.tradingview.com/x/QUQ7XzmB/
Here is at the chart for HIMS Stock which we traded as part of my subscribers group. Stock idea was posted as buy and Investment idea total 3 times in last 3 months giving returns of 225%, 161% and 150% till date. There is one more leg possible and can do the 100 levels if the results are positive.
On time frame H4 I observe a triple divergence with both the RSI and MACD indicators. Is it time for a retracement? Profit taking and resumption of the bullish trend? Possible, we'll see.
as u see RKLB is about to drop bearish triangle but if reverse will jump back in this is just my journey into investing I could be wrong