Liberty Market Investment
Sponsor
''Risk comes from not knowing what you're doing'' Warren Buffett
Like darkness without light, good without evil, profit would not be such a sweet goal if there was no risk of making a loss.
Depending on the structure of the trade and all of its components, there are different approaches and strategies to amortize or minimize risk.
But it is impossible to exclude risk completely from the calculation formula, because the rules of speculation at the stock exchange are built around financial flows, where money flows from a loser to a winner.
Volume analysis can also be used as a tool to reduce risk.
By analyzing the level of trading volume during a trading session, it is possible to enter into a trade with low risk.
On the slide above, note the trade's opening detail - the opening price is 1.0248 \ stop order price 1.0247.
On the slide below, a tick chart showing the Big Trades for EUR/USD. In simple terms - green circles show when and at what price big trades of "bulls" are executed, and in red circles information about the activity of "bears".
On the last slide, you can see a Time&Sales table at the time of the buy trade. Almost 90% of the trades were on the buy side, which also reduces risk.
On the example of this deal - we wanted to show what opportunities the volume analysis and analytical tools in the VolFix platform provide.
Author / trader Mikhail Lemah
