Strategy

Every unit of risk carries with it a unit of reward. What that implies is that not every trade offers a great potential reward for the risk on the trade.

Therefore, the winning strategy here involves tremendous amount of patience, discipline and also executing trades without hesitation whenever a particular report calls for trades to be initiated i.e. Buy or Sell.

For Foreign Exchange (FX) especially, absolutely no trades should be placed when HIGH impact news is on its way. This is due to the increase in volatility that can cause stop losses for trades to have the potential of being hit when entering trades as news (High impact) is getting released. Effort is currently been made to have a platform in the member area display all HIGH impact news for a particular day of the week.

For now, it is very important to check when HIGH impact news will be released because of the different time zones of members. Daily FX does have a calendar for news for each particular day which can be found here. Once on the website, it is very important for each member to set his or her timezone so that the time for HIGH impact news can be set accordingly. This news is specifically shown in a red box on the web page. Any member that is not sure how to use the link to set news properly for a particular day can also contact me here and I will make sure to provide a free tutorial on how to use check the page for news.

Reports can also call for staying out of the market because trading every twist and turn in the market will eventually obliterate a trading account or capital. Having patience helps to avoid taking bad trades that will lead to losses and also gives the market the opportunity to orient in the direction of the next big move (trend), which is how profits will be made in a much safer way.

The focus therefore of Coin Analyst Investments is to offer only QUALITY trades backed by the finest research and analysis, instead of QUANTITY.

Quality trades do require patience, discipline and also executing trades without fail once a conclusion has been reached to initiate a trade. The best thing to do once an entry point to a trade has been missed with the trade well underway is to wait for the next quality trade and know that the market will always be there again tomorrow to make money.

Lastly, based on your subscription (Cryptocurrency report, FX report or Crypto & FX report), reports are provided, and a conclusion is given at the end of each report as to whether to buy, sell or stay out of the market.

Coin Analyst Investments does apply a simple 3 step rule to management of trades published in reports. These are:

(1) Reduce risk

(2) Break even

(3) Protect open profits

Reduce risk

Reports are published with a point to enter the trade (buy or sell). Once trade is entered and price continues in the path of forecast, an attempt should be made to reduce the risk on the trade which is mainly done by moving your stop loss.

Break even

In the event that price continues in the path provided by the report, risk on the trade should be further reduced to break even, which means the total loss on the trade = $0.00

Protect open profits

As price continues to move into the path of forecast in the report, the final step is to protect some of the open profits. This ensures that a loss will not be sustained on the trade. Once this is done, two other things are suggested:

(i) Let the trade continue to the point suggested in the report to take profit OR

(ii) Keep moving stop loss further to protect more chunks of profit as price progresses towards the price point mentioned in the report to take profit

P.S. The suggested 3 steps of risk management should work IDEALLY. The biggest risk in the market over which no one has control is market risk. An example includes market reacting to news that has a monstrous effect on volatility forcing trades back to stop loss points or even worse. These types of events do occur once in a blue moon, but acknowledging that they do happen is why the word IDEALLY is used above.