 But that brings me on to Marita's question, which was I'll go to I'll go to stop placement and risk sentiment before I go to Sorry, I go to stop placement and risk management idea, and then I'll go into Gold and then risk sentiment. So Marita was saying earlier about a the fact that she's Stop placement and what's happening is that she's being caught and in the market is going in her direction So the general the general rule of thumb and what I was told when I first started trading You know with my mentor is that he said put your stop in a place where you will be wrong But you'll be wrong about the trade 100% Yeah, so that means pretty much having a wider stop now obviously the The downside to that is you have a wider risk, but you that means that your risk reward, you know, puts after process to go further In order for you to achieve a decent risk reward, but you really have to maybe think of risk management if You can't if you don't like taking losses now I have I wouldn't say no problem taking losses. I don't like taking losses like it like the next person, but I understand That I have when I whenever I do get into a good trade I'm going for you know, 10 15 20 to one type trades. Yeah, so to me I've accepted that risk reward as far as losing a few trades Really doesn't matter to me if you know, I mean, but if you are one of those people that you know still are Still don't like taking the loss Then my thing would be to say put your stop loss in an area where you definitely be wrong Definitely be wrong. So not just maybe necessarily maybe 10 pips above a structure Depending on obviously the time frame that you're trading on the average person will put their stop loss It's very rare that you know from a lower time frame perspective that traders are having for example a 30-pip stop Even on an hourly time frame, you won't really get hourly time frame traders placing their stop loss You know 30 pips above the market, you know, they'd normally, you know, try to place that, you know Maybe 10 15 possibly max 20 pips It's very rare that you'll get someone place their stop was 30 pips above above the market. So I Would say Where makes sense to you if you know, I mean where makes sense in this whole structure Would the trade definitely be over now if I was answering that question based on here It would have to be above the supply zone It would have to be above this area here for me to think that this this whole trade this whole trade idea as far as getting short on the On the euro and buying the dollar is definitely over It would be above supply, but then again Depending on your entry, you know, are you really going to risk nearly 200 pips? If your account size is you know, it's quite small for example if you can't necessarily manage it This is just a function of your percentage anyway. So it doesn't really matter about You know, how many pips you're risking It more matters about what does this represent as a percentage of your accounts And I understand that but everybody can have you know has an account size that can or the amount of leverage that can Represent, you know 200 pips can only represent, you know point 1.2 point 3.4 percent of your of your trade So then you have to then make a decision Which leads me on to my next point as to The trade idea right so the trade idea how how much are you going to allocate on this trade idea? so what I Keep in mind is I will keep in mind that on any Single trade idea as far as getting short at a level Yeah, I'm you know willing to risk, you know upwards of maybe, you know, let's say for example 1% Yeah 1% on this whole Zone yeah, because I don't know where the turning point is going to be could it have been there could it have been there Could price could price have come back and gone higher into the zone and then reverse None of us know Nobody knows for certain. Yeah, so What I suggest and it's what is what may help humorita is Whenever you have a trade idea or you have a level or a zone that you're looking at Let's say for example, you want to allocate 2% Of that of your of your total capital on this one zone divide that up into You know, let's say for example five or six trades if you can so what you're saying is is that You're willing to get in five times at um, you know point what is that 0.5 or 0.4 or something like that Yeah, 0.4 percent per trade Or thereabouts Yeah, because you're going to take five trades around this area And just manage your risk that way so that if you're wrong about this whole area And prices continue to go into the upside At least from a risk management Standpoint you've only lost 2% of your total capital that makes sense Yes Yes, it does. Yeah, so um You're not wrong What what I commend you on is the trades that you were saying was was was that you know, you've literally got Picked out and then prices went in your direction So it's literally just a case of stop being in the obvious and maybe a bit too tight You know being obvious, but then also saying to yourself if you would maybe take one more trade You would have made that that money or more, right? Right and that that's happened a couple times where I maybe entered twice still didn't You know go my direction, but if I would have on a third one it would have I I know it's my stops are too tight. How what makes a stop too tight Do you explain that a little bit? Again, none of us know so so I would say a too tight stop loss may be an obvious and I guess maybe saying it's too tight is is more hindsight bias because if had those trades worked Then it we wouldn't we wouldn't be talking about your stop being too tight, right? He's I'm saying because you wouldn't you wouldn't want so it's so it's more of a hindsight bias thing When we talk about the stop loss being too tight, so Like for example me I will put I will have my stop loss anywhere depending on the pair between You know on on on my entry would be you know anywhere between five to 15 pips now I know that I'm going to get caught on some of those trades, but again because I'm prepared to go in You know several times Then I'm not worried about losing two or three or four times because if I'm going to be right on this trade And I get in somewhere around here and I have a really tight stop and I have some really good risk rewards To the downside That's another thing as well that you have to kind of be aware of is don't don't take You know don't take four losses Yeah, let's say for example 0.1 percent Yeah, or 0.2 percent or whatever it is and then the one trade that you get into Yeah, you're only going for a two to one. Don't do that. You know, it doesn't make no sense You have to try to let the the winning trade run for at least More than what you've lost Okay, yeah Because because that is that is going to be the key that is going to be the key to this It's the key to growing your account period is is letting those Those those those um those runners win if you know, there's winners runners to say runners win, but um, well either way, but It's it's it's that that's going to grow your account You know, it's because and then you don't necessarily have to worry about Win rates if you lose four you make one but on that one you made a 10 to one and you lost four you're up six And again, nobody knows there are going to be times where you might take. I remember you've accepted as well Again, the key to this is that you're you've accepted that I'm going to take one percent or two percent in this whole area. So if you lose your full two percent That's fine There was just two percent that you lost on this one trade idea Did you break even on this yet? No, whatever it is But you have to just let it just fall where they may and manage your risk You've got to stay in the game as you know as long as possible, you know and not try to You know potentially get rich quick, but I mean, I'm preaching to the choir, but It's all about risk management rather than You know trying to risk it all on one or two or three particular trades if you know, I mean so Being wrong is okay. We're all going to be wrong. But it's just when you're right just make sure and Again, just going back to fundamentally and sentiment wise if we know fundamentally This is potentially a bargain price and the market agrees of us Then why wouldn't it go there? And I won't say in that, you know, any kind of certainty or anything like that It's just we have a probabilistic nature You know, if we're right and we've done a fundamental analysis that it should want to go Down to the lows Can I ask another question on this very chart that you have up? Yep So the you see where price entered your supply zone the first time That would be considered a stop hunt right because price Ended up going down But then it reversed and went back up right where you have the top of your value. Yep. I know I'm talking about yeah Okay, so that would be that first one would be considered a stop hunt, correct Right now I was talking to uh, I think it was max for I made a video for max or the other day about stop hunt setups Now stop hunts happen everywhere. Yeah, stop hunts all happen Absolutely everywhere But what we're concerned with Is how the stop hunt looks to the point where we can get involved in that stop hunt Yeah, so so As the example here's an example of this is and I totally get your points so First of all the first kind of rule For stop hunting is that there must be an obvious level There must be an absolutely obvious level that everyone is looking at and in in recent history We have one two You know and then we get I guess if you kind of stretch this down a little bit there would have been three Not there probably just just a little bit not as not as accurate You really want it to kind of touch but generally in this area there would have been some sort of Um support and resistance zone so the level is is fairly accurate if we're looking at you know from pretty much This perspective let's just draw that accurate line there there Very very accurate there Pink pink now none of us know for sure. None of us know for sure Um, you know, which level is going to be manipulated, but when prices came to here Yeah, you could see that there were traders that were looking to get involved here You saw a nice that were engulfing candle Probably some sort of double top on the lower time frame of traders look to the left because they're told to look to the left and You've got nice Support support should turn to what resistance so then what you get is You get traders get any short on properly double tops on the one hour Maybe on a lower time frame it would have looked a bit better And then you get a stop hunt at the top here and then you get a move down Does that make sense? Just above this level. Yeah, you're right, but then then When you look at this from an hourly perspective Yeah, it's like a stop hunt, but if we were to go up to for example four hour Would you think these four hourly guys? Where they're placing their stop losses Above that stop hunt there Now the question is as far as what what what we don't know is Where is the liquidity? How much liquidity do do the financial institutions need in order to push prices to the downside? So On a four hour time frame chart or a higher time frame chart that would have looked Much more accurate, right? So it's already got the hourly traders now. We've got the four hour traders Two candles swing where are they placing their stop losses above the market? So everybody who trades pretty much into their time frame charts Now Is still looking at this level and even the hourly time frame traders are probably saying oh that was just a Maybe a false breakout and look at this now. They're more convinced They're more convinced so then they start to apply an even more short Whereas, you know, where are the orders? Above that market there because that looks like now It's going to go. So what it does is it does one more stop hunt? Yeah clears out the traders, but also as it clears out the traders it draws in more traders to the upsides Yeah, the breakout traders who now are thinking to themselves that level is definitely gone support support Resistance look at that close above brilliant. So it's drawn in the traders to the upside And then what it does as well is obviously Taking out all the stops on a lower time frame. What does that look like retracement traders getting in then you get What is known as the stop hunt candle and where are we because the market really wanted to go so well I say that now but um From from a probabilistic nature if you're looking at Europe and the u.s. Yes, they're both struggling fundamentally because well everyone's struggling with this coronavirus everyone is but again I always say who's best placed Yeah in the lead up to this Uh coronavirus the u.s. Were head and shoulders above Europe so it only you know, uh follows logic that If everyone's being dragged down by the coronavirus who is going to be the best of the worst So this was needed markets pulled back because there is you know liquidity that needs to be uh, you know buy The financial institutions don't want to buy down here. They do not want to buy there. They want to buy, you know at fair value Yeah, it's between this line. It's high at low Yeah fair value Or at least stop buying a fair value if they figured that um, you know, this was definitely a bargain The higher obviously it goes the more of a bargain it is none of us know but the point being is that From a stop hunt perspective that we can get involved in This would have been a difficult one and the reason why that is is because what we typically want to see Is something like this is is more of a ranging market So if what I'm saying resonates with you why not check out trading 180.com There is a selection process to trade my supply and demand zone for X strategy I'm only looking to work with Individuals with the right mindset, you know, who are hard working as well. So Check that out And access really for less than one pound a day this some of the strategies in here are not for beginners So if you don't know what supply and demand is, please check out all of my supply and demand videos I have hundreds of videos on youtube so you can check that out first Guys take care and until the next video. Have a good one