When you showed the risk percent and then switched it over to USD to show everyone how it would look/change. That helped me out a lot. Very helpful video.
I have seen this tool, but never messed with it. I didn’t realize this could be used to calculate your number of shares! My math always gets messed up when I’m trying to set up a trade. Maybe old news for some, but this will be a game changer for me! Thanks Tracy :)
Call me dumb but I am a noob, how is this used to place the trade? Or how is a trade placed knowing this using paper account? I love your delivery, thank you.
Hello Brett. This is just a tool used to help you visualize and calculate your position size. It’s not connected to your broker or to the order entry side of tradingView’s paper trading platform. You have to take this information and then enter your order either in your paper trading account or directly in your broker. This just helps speed up the process of making the calculations.
No it does not. Once you place the tool, you can right click and it will give you an option to place a trade based on the tool. From there it opens the position parameters inside the order window where you would then have to submit.
Quick Question. From your example of a long position, if I have a 1000 USD account and want to risk 10% (100 USD), then the tool states I need to buy 222 shares at 5.82 which equals 1292 USD but I only have a 1000 USD account. How could that be. Am I reading this incorrectly? Thanks :)
No you are reading it correctly, it calculates the 10% off your account size and based on your entry - stop takes the 10% and divides by the (entry-stop) to calculate the number of shares it does not consider whether you actually have enough money to buy the shares.
@@RealLifeTrading Thanks for the explanation but then why does Trading view have in their parameter the 'Account size' still at 1000 USD, doesnt that contradict Trading view asking for the account size. Same with the 1162 shares example you would need 1162 (Shares)*5.80(price) = 6,739 (cost) Is it a glitch of the setup seems like a redundant feature to ask for account size? Thanks in advance
@@hariknair3765 That's what margin helps with. BUT, if you are trading a super small account and you can't afford the shares.. INCREASE the size of the stop. ;-)
So the "Risk" on the long position tool is just to help you determine how much quantity you need to buy to make a big enough difference in the market to move it? Depending on your strategy, you might not even need that function then because the most important numbers is the risk/reward ratio, entry, profit and stop level? Correct?
Great question... It really depends on how you trade. Yes the risk reward is important, however, we teach a form of trading where the risk remains the same for every trade, making it very important to know what your position size is in order to keep that risk consistent. It could be argued that trading with an inconsistent risk is a contributing factor to blowing up accounts, lack of profitability and consistency. We've all heard of the trader winning big and then losing it all. A lot of times this is due to risking more then they should have. None of us have a crystal ball. Trading is a probabilities game... So you never know which trade is going to be the one that wins or loses... Keeping the risk the same for each trade, stacking the odds in your favor will be key to helping gain consistency. Again, there are many ways to approach the market. This is the way we teach and trade... so it's all a matter of perspective. Thanks for watching! Cheers.
I love this tool because you can right-click on it and execute the trade based on the visual layout. Its quick and easy. Even after you place the trade it creates the stop and limit order lines on the chart...you can continue to adjust your stop and limit orders on the fly. Do you know if webull or TOS have this tool?
PLS NOTICE : 03:53 at this day, if you click that settings, it now shows an option to put a LOT SIZE. It is at default 1. But im confused whats the use of it now??? Especially if im trading stocks which needs SHARES. I always get wrong results in computation i think because of that LOT SIZE option to fil out.. Thanks!
Leave the LOT size set to 1 if you plan on using shares. If you ever want to use OPTIONS though if you set the LOT size to 100 now the calculation will show you how many contracts you can get based on your risk. For shares though LEAVE it a 1.
So how do you then execute your trade from there? ive been using IG on demo but its frozen so learning quickly how to use trading view as I am studying ATM and need to start demo trading with my trade plan, very frustrated that IG has glitched for Demos this week.
I'm confused. I set up a sample chart with a 4k account size and a 10% risk. The entry price is 11.05, profit 11.40, and stop of 10.78. My stop amount says 3600 and my target says 4518. Now, my quantity says 1481 which doesn't make sense because if I bought that many at a 11.05 price it would cost 16,365 far exceeding my max account amount. What am I missing here? Something isn't right.
The risk calculator calculates 10% of your account as the risk so $400. If your entry is at 11.05 and stop at 10.78 that's a difference of 0.27 cents. $400/0.27 is 1481. It does not take into consideration what you can actually afford to buy. It just means if you want to risk $400 on the trade and your stop was there and your entry was there, this is how many shares you could get.
@@RealLifeTrading Hi, I had the same question, so the quantity of share is not correct ? even in your video above if your account size is USD 1000 and you risk $ 100 how can you buy 222 shares @ $5.82 .... confused.
Could someone please explain when you enter your risk size in percentage or USD are you stating: I want to risk (use) 500 dollars out of my 10000 available account size in this trade? If this is correct, does the tool automatically calculate how many shares you need for your goal? How do I set this up for example: I have an available account balance of 10000 USD, I want to put 500 into this single trade, buying 1 share, 2 to one? Thanks all, I"m almost there.
In the Inputs of the tool, if you choose USD under Risk. and then enter 500 that means it will calculate the amount of shares you can buy/sell that if your stop got hit, it would be the max you would lose... If you choose % instead of USD, then risk is calculated like this. Let's say you have a $10,000.00 account size, you select % for risk and you set it at 1 meaning you are risking 1% of your account size per trade. The shares calculated will now be based on 1% of a 10,000.00 account which would be $100.00. The USD calculates risk based on the set risk value entered say $500 and the % calculates it based on account balance. I hope that makes sense. To see the math: This is how you manually calculate your risk. Select your max loss on a trade (let's say $500). Take the difference between your entry and your stop (let's say you buy at 100 and stop is at 99) that's a $1.00 difference between the entry and the stop. You then take your risk $500 and divide it by the difference in entry/stop ($1.00) 500/1 would equal 500 shares. Hope this helps.
Yes good job, but I do have a question. Is there anyway that you can set the risk reward tool, to where it will trade the same percent of your account every time, automatically?
what i don't get is why it turns red and green when moving is horizontally. It would make sense if it was to change color when the entry level was adjusted so if it was moved vertically up and down and not left and right? no ?
Not sure I quite understand your question. The green shows the zone of profitability while the red shows the zone of loss. Not sure what you’re referring to with the moving horizontally. You can extend the tool across time to extend the zones for the duration of the trade.
My long position tool never lines up with the proper numbers. I have watched multiple videos and followed instructions. But my just shows crazy numbers instead of anything close to what it actually is set at.
That’s not good. I would recommend you send TradingView a support ticket with a screen shot of the issue you are having and see if they are able to explain what issue you are having.
You bet... When you open the settings to this tool, at the top you can enter your account size... the default is 1000 USD. The 1264.18 would be the value of the account after that level is reached. So it would have provided $264.18 of profit based on the defined risk used. Great question!
@@RealLifeTrading But when I put account size is 1000 and risk of 1000 with the target, % is 10.29% the amount showing is 2388.88 which doesn't make sense
@@liar13cajun you can haven’t an account size of 1,000 and a risk of 1,000. LOL! Because if that’s the case, no need to have the risk tool!! ;) LOL. Just divide share price from 1000.
A tick is the smallest increment in price that can be used. For stocks this is typically 1 penny... For futures contracts is can be .10 or .25 cents. The S&P 500 ES Mini Futures as an examples moves in increments of 25 cents. Every 25 cent movement is equal to 1 tick.
It is a free tool included in the tradingview platform. You can create a free account or a paid account with tradingview to gain access to their platform.
Great question, I personally have never used it with forex but I can’t see why it wouldn’t work. If any of our members know for sure please post a comment! Thanks. In the meantime, I’ll try to find a definite answer for you.
If you are looking to paper trade then check out this video: ua-cam.com/video/i3kufJiU0ac/v-deo.html... This tool is for information only... you still need to use that information and submit an order into your broker.
Thanks for the feedback, I have never tried with anything other then USD so I’ll look into this and see if there is a work around. If anyone out there has a solution or a suggestion we welcome your input!!
Hey Evian.. the position tool is only a tool to give you information... you still need to enter that information into your broker in order to execute a trade. Happy Trading!
I don't understand the percentages on the top and the bottom. It always prints way more than I'd get if I actually bought 100 dollars of whatever crypto.
The percentage is based on the move from the entry. The dollar amounts you see there are based on your portfolio capital that you set in the settings. I just ignore that part. All I care about is the risk amount and I use the dollar value for that.
Take your risk amount say $1.00 and you have a $0.10 stop. The calculation is as follows: 1.00/0.10 = 10 shares. This means that if you enter (at let's say $5.82) AND your stop (this is where you will exit your trade)... THEN if price moves from $5.82 down to $5.72 and stops you out... you will only lose $1.00. Let's look at it another way. You buy 10 shares at $5.82. It costs you $58.20. Price then drops to where your stop is at $5.72... You sell your shares at $5.72 * 10 shares for a total of $57.20. That would mean you spent 58.20 but only got back 57.20. This is a difference of $1.00... That is your loss. :)
Head on over to www.reallifetrading.com and take our free stock trading education to learn more about what shares are and how they can impact your life. Thanks for watching.
I don't get it. You're putting your indicator on historical data...price movements that has already happened. Surely shorts and longs are about price data that has not yet happened.
The tool is able to be used in real time. The demonstration may have been done on prior data since the market was closed at the time... The position tool allows you to set your entry, set your stop and determine your risk and can all be done prior to setting the trade.
When you showed the risk percent and then switched it over to USD to show everyone how it would look/change. That helped me out a lot. Very helpful video.
Awesome!
I have seen this tool, but never messed with it. I didn’t realize this could be used to calculate your number of shares! My math always gets messed up when I’m trying to set up a trade. Maybe old news for some, but this will be a game changer for me! Thanks Tracy :)
🥰🥰😍😍
Glad we could help!!
Damn i been looking for a video that explain the tool the right way!!!
Sweeeet
Thank you! This is the best video on the subject and was easy enough to understand. 👍🏾👍🏾👍🏾
SWEEEEET
Question: After you use the tool dont you then need to go to the order Panel to input the numerics and then activate the order..ie tradingview ?
Yes, this is just a tool to visualize your risk.
Call me dumb but I am a noob, how is this used to place the trade? Or how is a trade placed knowing this using paper account? I love your delivery, thank you.
Hello Brett. This is just a tool used to help you visualize and calculate your position size. It’s not connected to your broker or to the order entry side of tradingView’s paper trading platform. You have to take this information and then enter your order either in your paper trading account or directly in your broker. This just helps speed up the process of making the calculations.
Does this tool automatically enters you in the trade or the broker connect you in the trade immediately if I use this tool?
No it does not. Once you place the tool, you can right click and it will give you an option to place a trade based on the tool. From there it opens the position parameters inside the order window where you would then have to submit.
Quick Question. From your example of a long position, if I have a 1000 USD account and want to risk 10% (100 USD), then the tool states I need to buy 222 shares at 5.82 which equals 1292 USD but I only have a 1000 USD account. How could that be. Am I reading this incorrectly? Thanks :)
No you are reading it correctly, it calculates the 10% off your account size and based on your entry - stop takes the 10% and divides by the (entry-stop) to calculate the number of shares it does not consider whether you actually have enough money to buy the shares.
@@RealLifeTrading Thanks for the explanation but then why does Trading view have in their parameter the 'Account size' still at 1000 USD, doesnt that contradict Trading view asking for the account size. Same with the 1162 shares example you would need 1162 (Shares)*5.80(price) = 6,739 (cost)
Is it a glitch of the setup seems like a redundant feature to ask for account size?
Thanks in advance
@@hariknair3765 That's what margin helps with. BUT, if you are trading a super small account and you can't afford the shares.. INCREASE the size of the stop. ;-)
this video slaps you with awesome info
HAHA!! AWESOME!! Glad you enjoy it
Thank You soo much. I've been looking for this.
SWEEEEET
So you multiply lot size value by the pips that this tool shows you?
::
So the "Risk" on the long position tool is just to help you determine how much quantity you need to buy to make a big enough difference in the market to move it? Depending on your strategy, you might not even need that function then because the most important numbers is the risk/reward ratio, entry, profit and stop level? Correct?
Great question... It really depends on how you trade. Yes the risk reward is important, however, we teach a form of trading where the risk remains the same for every trade, making it very important to know what your position size is in order to keep that risk consistent. It could be argued that trading with an inconsistent risk is a contributing factor to blowing up accounts, lack of profitability and consistency. We've all heard of the trader winning big and then losing it all. A lot of times this is due to risking more then they should have. None of us have a crystal ball. Trading is a probabilities game... So you never know which trade is going to be the one that wins or loses... Keeping the risk the same for each trade, stacking the odds in your favor will be key to helping gain consistency. Again, there are many ways to approach the market. This is the way we teach and trade... so it's all a matter of perspective. Thanks for watching! Cheers.
Can I adjust the order directly with the tool, or does it stand-alone?
You can, we'll have to do a video on it.
Thank you so much for this tutorial!!!
SURE THING
I love this tool because you can right-click on it and execute the trade based on the visual layout. Its quick and easy. Even after you place the trade it creates the stop and limit order lines on the chart...you can continue to adjust your stop and limit orders on the fly. Do you know if webull or TOS have this tool?
Sweet!
i didnt even know it could do this thank you
Anytime. :)
PLS NOTICE : 03:53 at this day, if you click that settings, it now shows an option to put a LOT SIZE. It is at default 1. But im confused whats the use of it now??? Especially if im trading stocks which needs SHARES. I always get wrong results in computation i think because of that LOT SIZE option to fil out.. Thanks!
Leave the LOT size set to 1 if you plan on using shares. If you ever want to use OPTIONS though if you set the LOT size to 100 now the calculation will show you how many contracts you can get based on your risk. For shares though LEAVE it a 1.
Thanks Tracy!
You are so welcome!
Thank you so much!
Our pleasure
So how do you then execute your trade from there? ive been using IG on demo but its frozen so learning quickly how to use trading view as I am studying ATM and need to start demo trading with my trade plan, very frustrated that IG has glitched for Demos this week.
What is IG??
Gr8 ! Thank you for make it simple
Happy to help
Where do I download this tool and can you use it on eToro, thanks 👍🏻
It's part of the TradingView platform. Not sure about eToro.
Thanks but how do you use the ( price range ) tool...?
:
I'm confused. I set up a sample chart with a 4k account size and a 10% risk. The entry price is 11.05, profit 11.40, and stop of 10.78.
My stop amount says 3600 and my target says 4518. Now, my quantity says 1481 which doesn't make sense because if I bought that many at a 11.05 price it would cost 16,365 far exceeding my max account amount. What am I missing here? Something isn't right.
The risk calculator calculates 10% of your account as the risk so $400. If your entry is at 11.05 and stop at 10.78 that's a difference of 0.27 cents. $400/0.27 is 1481. It does not take into consideration what you can actually afford to buy. It just means if you want to risk $400 on the trade and your stop was there and your entry was there, this is how many shares you could get.
@@RealLifeTrading Hi, I had the same question, so the quantity of share is not correct ? even in your video above if your account size is USD 1000 and you risk $ 100 how can you buy 222 shares @ $5.82 .... confused.
Super helpful!
So glad! Thanks for watching Sylvain!
Could someone please explain when you enter your risk size in percentage or USD are you stating: I want to risk (use) 500 dollars out of my 10000 available account size in this trade? If this is correct, does the tool automatically calculate how many shares you need for your goal? How do I set this up for example: I have an available account balance of 10000 USD, I want to put 500 into this single trade, buying 1 share, 2 to one? Thanks all, I"m almost there.
In the Inputs of the tool, if you choose USD under Risk. and then enter 500 that means it will calculate the amount of shares you can buy/sell that if your stop got hit, it would be the max you would lose... If you choose % instead of USD, then risk is calculated like this. Let's say you have a $10,000.00 account size, you select % for risk and you set it at 1 meaning you are risking 1% of your account size per trade. The shares calculated will now be based on 1% of a 10,000.00 account which would be $100.00. The USD calculates risk based on the set risk value entered say $500 and the % calculates it based on account balance. I hope that makes sense. To see the math: This is how you manually calculate your risk. Select your max loss on a trade (let's say $500). Take the difference between your entry and your stop (let's say you buy at 100 and stop is at 99) that's a $1.00 difference between the entry and the stop. You then take your risk $500 and divide it by the difference in entry/stop ($1.00) 500/1 would equal 500 shares.
Hope this helps.
Yes good job, but I do have a question. Is there anyway that you can set the risk reward tool, to where it will trade the same percent of your account every time, automatically?
Great question. No this is just a tool for information and is not tied to any trading components. Maybe in the future.
what i don't get is why it turns red and green when moving is horizontally. It would make sense if it was to change color when the entry level was adjusted so if it was moved vertically up and down and not left and right? no ?
Not sure I quite understand your question. The green shows the zone of profitability while the red shows the zone of loss. Not sure what you’re referring to with the moving horizontally. You can extend the tool across time to extend the zones for the duration of the trade.
By moving it horizontally you are basically simulating price action, so t makes sense for it to change color....
I wish er could use it to create the trade entry directly
:) You can, with the right broker
Great vid
Thanks for watchin!
My long position tool never lines up with the proper numbers. I have watched multiple videos and followed instructions. But my just shows crazy numbers instead of anything close to what it actually is set at.
That’s not good. I would recommend you send TradingView a support ticket with a screen shot of the issue you are having and see if they are able to explain what issue you are having.
Great job, concise and on point
Much appreciated! Thank you for watching.
yea, one of the best explanations. Thanks.
SWEEEET
Hi there, just wondering what is that 1264.18 next to profit% means?
You bet... When you open the settings to this tool, at the top you can enter your account size... the default is 1000 USD. The 1264.18 would be the value of the account after that level is reached. So it would have provided $264.18 of profit based on the defined risk used. Great question!
@@RealLifeTrading But when I put account size is 1000
and risk of 1000
with the target, % is 10.29% the amount showing is 2388.88
which doesn't make sense
@@liar13cajun you can haven’t an account size of 1,000 and a risk of 1,000. LOL! Because if that’s the case, no need to have the risk tool!! ;) LOL. Just divide share price from 1000.
Awesome ..Thank you.
You’re very welcome!
what does ticks mean??
A tick is the smallest increment in price that can be used. For stocks this is typically 1 penny... For futures contracts is can be .10 or .25 cents. The S&P 500 ES Mini Futures as an examples moves in increments of 25 cents. Every 25 cent movement is equal to 1 tick.
@@RealLifeTrading thanks 👍🏾
:)
Hi, great tool! How can the tool be obtained? cheers
It is a free tool included in the tradingview platform. You can create a free account or a paid account with tradingview to gain access to their platform.
Are those pips?
If you’re looking at FX then yes
Does this also work for forex..?
Great question, I personally have never used it with forex but I can’t see why it wouldn’t work. If any of our members know for sure please post a comment! Thanks. In the meantime, I’ll try to find a definite answer for you.
Yes it works with forex
By saying shares you mean positions??
Sure
But how do I actually ENTER the trade??? After adjusting this tool the stock price keeps on moving and I am still not invested :-(
If you are looking to paper trade then check out this video: ua-cam.com/video/i3kufJiU0ac/v-deo.html... This tool is for information only... you still need to use that information and submit an order into your broker.
@@RealLifeTrading Oh I see. Thank you!!
my only issue with this is that i trade forex and when you use it the currency that you risk says whats in the pairs name, and not my currency
Thanks for the feedback, I have never tried with anything other then USD so I’ll look into this and see if there is a work around. If anyone out there has a solution or a suggestion we welcome your input!!
thank you
You're welcome
on mine it does not tell me the qty, you know why?
ok, my lot size was on 100
Glad you figured it out!!! Happy trading
Why won't my trade execute?
Hey Evian.. the position tool is only a tool to give you information... you still need to enter that information into your broker in order to execute a trade. Happy Trading!
Nice vdo
Thank you!
I don't understand the percentages on the top and the bottom. It always prints way more than I'd get if I actually bought 100 dollars of whatever crypto.
The percentage is based on the move from the entry. The dollar amounts you see there are based on your portfolio capital that you set in the settings. I just ignore that part. All I care about is the risk amount and I use the dollar value for that.
When I short, it doesn't show how many shares to short
::
good video. But I am still confused on the P/L and the amount of shares to buy. My math is always wrong. lol
thanks for the comment
I do not understand how the number of shares are calculated!! @2:10 If i risk 1$, how on earth I'd need 22 shares if the share price is 5.82
Take your risk amount say $1.00 and you have a $0.10 stop. The calculation is as follows: 1.00/0.10 = 10 shares. This means that if you enter (at let's say $5.82) AND your stop (this is where you will exit your trade)... THEN if price moves from $5.82 down to $5.72 and stops you out... you will only lose $1.00.
Let's look at it another way. You buy 10 shares at $5.82. It costs you $58.20. Price then drops to where your stop is at $5.72... You sell your shares at $5.72 * 10 shares for a total of $57.20. That would mean you spent 58.20 but only got back 57.20. This is a difference of $1.00... That is your loss. :)
so this doesnt work for options hmm
Not quite. www.reallifetrading.com/intro-to-options-new I DO COVER TONS of option goodies (including option pricing and risk charts) in this course
Jeremy do some analysis of stocks a long video
Thanks for the request...
evidently not available on mt4?????
✅
This does not seem to calculate the profits correctly.
The profits are calculated based on the amount you put in the account size area. I personally only use this tool to calculate the share size.
@@RealLifeTrading This is what I thought but doing the same math it wasn't coming out correct.
What are shares? You get 225 shares okay cool but what are they
Head on over to www.reallifetrading.com and take our free stock trading education to learn more about what shares are and how they can impact your life. Thanks for watching.
Do you really risk 100 on 1000 account? Kind of risky ;)
Nope max I risk on any trade is half to 1% of my capital.
I don’t use the account size in the tool. Just the risk calculator.
101th like
Sweet. So glad you found value!
some people do NOT have any business teaching!!!
:
I don't get it. You're putting your indicator on historical data...price movements that has already happened. Surely shorts and longs are about price data that has not yet happened.
The tool is able to be used in real time. The demonstration may have been done on prior data since the market was closed at the time... The position tool allows you to set your entry, set your stop and determine your risk and can all be done prior to setting the trade.
Too fast nd not enough detail. Sorry, I'm probably just slow.
Thanks for the feedback... Have a great day!
Yea, it was too fast. Not sure why though
ua-cam.com/video/GmZNV14qbRk/v-deo.html this guy does a better job explaining