prd formula The combination of preparations, risks, and decisions.

[Calvinpriva 17296]

Description.
There are a few things that we should make before entering the market and place our orders, the most important thing is preparations because I believe you can not just log in to your trading account and start trading without making a little research (technical research/analysis) and see how the market is performing. That is preparing yourself to enter the market. 

 

Most of the time good preparations will give us good results though it's not all the time because sometimes the market can go another side against your trades, and doesn't matter how you prepared yourself before you entered the market, if this happens then you may lose your trade. Many traders know that they can prepare themselves well by using their knowledge, experience, and strategies but still they can lose! Though they know that, they keep going on because they understand that trading is all about preparing yourself to take a risk and make a decision though can result in a profit or a loss.

 

Topic.
So the aim of this topic is to remind you that risks can not be avoided completely, but at least by using this formula of preparations, risks, and decisions (PRD) we can reduce risks and increase profit when we need to trade. This formula can help to reduce risks because you will not just enter the market and start trading on any coins, but you will start with brief technical research before selecting a pair and trade.

 

The PRD Formula.
1. Preparations - You will make technical research on the coins and markets that you want to trade before anything else.
2. Risks - You have to make sure you understand how risky it is to invest your money in trading the coins that you selected when you were preparing to trade, and you should also remember and agree that there are two results in trading, which is profit or loss.
3. Decisions - Start trading immediately after your preparations for the technical research on your coins and market, and after you agree to yourself that you are going to take a risk because you can lose all your money.

 

Now we have to understand one thing, making preparations for trading doesn't mean to make technical research itself, but it means to make sure you prepare a trading plan as well. Only one trading plan can lead you to all of your trades, so it is not hard to prepare a trading plan.

 

Why a trading plan?
A trading plan is very important because it will help to control your capital according to your plan, in a trading plan you will not have only the trading capital, but you will also have the capital to restart in case your first trade failed. Trading without a plan is not good because you can trade with all your capital at once and you will have a lot of challenges to restart in case you lose. That is why we should also prepare a trading plan in the PRD formula.

 

So this formula will help anyone to trade in the right way (most beginners) because you will not expect only winning because trading does not work like that! Just remember trading without preparations is not a good decision at all, preparations carry the most important things which are technical research and a trading plan, then risk reminds you there is not only winning in trading so you agreed that you can lose as well (but nothing to worry because you already prepared your trading plan so you will have a plan B in case you lose), and the third step is to make a decision (you already prepared, you already agreed that trading is taking risk) so it is the time to make a decision whether to invest your money in trading or to cancel (if you are well prepared, then you have nothing to worry).

 

If you are a beginner trader, try this formula and you will give me good feedback. Good luck!

[Raqeebzy 6456]

Quite sometimes, took a break?

On 1/21/2021 at 4:26 AM, Calvinpriva said:

2. Risks - You have to make sure you understand how risky it is to invest your money in trading the coins that you selected when you were preparing to trade, and you should also remember and agree that there are two results in trading, which is profit or loss.

Everyone talking about trading and the amount of risks that follows. Only see some few talking about how to minimize it and probably how to suppress that to the bearest minimum. I think what all traders needs first is the know-how, both in the technical aspect and the fundamental part. Risks can't be escaped and so there should be calculated expected risks and with a good know-how, it can be worked towards.

On 1/21/2021 at 4:26 AM, Calvinpriva said:

trading plan is very important because it will help to control your capital according to your plan, in a trading plan you will not have only the trading capital, but you will also have the capital to re

To my best of knowledge, as this is important, I would advise a flexible plan rather than a rigid one. I mean, market conditions changes in split seconds and there can be need for a plan b when it does take an unexpected form.

Edited January 22, 2021 by Raqeebzy

[M.Asif 499]

Thanks for sharing such informative article here,it's very interesting. I think every one who want to do trading can get good skill and stratigies frome seniors and expertise and by reading useful article's like this. In addition to this when you combine these three strategies and do trading you have hundred percent chances to became successfull and earn good profits.

[Jromz 2158]

Good topic, mate. A good preparation and a solid basis in risk management is definitely needed when one is preparing to trade and wants to make the best possible decision. The combination of these factors in a successful strategy can indeed make a difference between being profitable or losing money.

[Ola22 197]

It is, in fact, one of the best topics I have read here, that prior preparation before undertaking any work is the basis for doing the work correctly, and an accurate understanding of the extent of the danger that surrounds matters makes us develop successful plans to do those actions.

[Ziyech 478]

Everyone is concerned about investing and the associated risks. Just a few people seem to be discussing how to reduce it, and most likely how to eliminate it to the bare minimum. I believe that the first requirement for all traders is knowledge, both technological and basic.

[Ziyech 478]

Since this is significant, I would recommend a currently proposed rather than just a static system, to the highest possible standard. I presume, market dynamics can switch in a matter of seconds, and there could be a need for a backup plan if anything unforeseen happens.

[yahyazaki 322]

Trading is one of the most important branches and areas about the world of cryptocurrencies and this topic has broken it down to make it easier to apprehend for new members who are intending to learn trading.