Low Risk Trade (Trading for Beginners)

Low Risk Trade (Trading for Beginners)

Low Risk Trade (Trading for Beginners) 300 169 Minimalist Trading – Best Trading Indicators for TradingView

One of the best ways to maximize profits is to look for a Low Risk Trade.

But what is a Low Risk Trade?

First, the bad news.

It’s not a trade setup that you learn and apply straight away.

Of course, you need a good trade setup, but then you need to learn how to trade safely.

Essentially, you need to learn how to reduce risk in trading.

Now, the good news!

In the live trade on TradingView that we discuss below, you can learn how to turn almost any trade into a Low Risk Trade.

Remember: it comes down to trade setup plus trade management.

The price action and our trading indicators are indicating that we have a low risk trade.

Additionally, we decide to trade it on the conservative side because further analysis suggests that a major resistance might prevent a bigger target.

Trade setup – 1 Nov 2018

One example of a very safe trade Setup 1

The setup is very clear in this case. We have:

    1. A higher bottom (displayed by the Bottoms Tops Signal)
    2. A higher low in the RSI Exhaustion (which means that the RSI Exhaustion supports the price movement)
    3. Bearish exhaustion

The only concerning thing is that between our entry price and the expected target, there’s a major resistance level displayed by the Levels and Zones.

Such major resistance poses a potentially big problem in reaching the target because it is very likely that it will slow down and eventually stop the price as it approaches the sell zone and the resistance as well.

Because of this analysis, we set our target right at the resistance so that we dramatically increase the chances of being correct and we get involved in a very low risk trade.

Trading safely is the best way to go for consistent profits and, if we’ll get it right, then it’s going to be a 2x profit.

Trade update – 1 Nov 2018

One example of a very safe trade Setup 2

The price is moving rapidly towards the resistance.

Trade update – 1 Nov 2018

One example of a very safe trade Setup 3

A top appeared and the price is now moving lower, however, there’s no technical evidence that our setup is invalidated so we stay rational and stay into the trade.

Trade closed – 2 Nov 2018

One example of a very safe trade Setup 4

The price continued to move sideways for quite some time and within three candles went to the target allowing us to close the trade with a 2x profit.

Ultimately the price moved as we initially predicted, confirming the fact that a clear and simple chart pattern analysis is essential even with the best currency trading strategies.

Moreover, this win confirms that minimizing the risk in trading is the most sustainable way for consistent profits.

What about your experience with risk?

Do you typically trade safely or do you look for high-risk high-reward opportunities?

Share your experience by leaving a comment on the YouTube video above!