I have repeatedly mentioned that planning in trading remains one of the most elusive topics. Typically, planning is understood as the ratio of profit to potential losses. Ideally, this ratio should be 4 to 1.

I will list all the points I can recall about planning:

• Profit-risk ratio 4/1;

• Losses should not exceed 2-3% of the deposit;

• Profit can far exceed the allocated amount, say, beyond 10%, and even multiple times, but the key is that this amount represents only a designated part of the deposit. We see a return of 10, 20, and even 200%, from the part of the deposit allocated for trading. It looks very tempting. However, for the entire trading deposit, the picture becomes less vivid;

• What leverage to trade with, a question that is again related to planning. Here, calculations once again confuse the division of the deposit into funds specifically for trading now and funds for trading in general.

Which of the listed options will you choose?

The paradox is that the most crucial part of trading, in my opinion, fits into four points. Meanwhile, volumes of many pages are dedicated to searching for patterns, with each volume claiming to be the law that will make you happy if you add any of the above points.

What to do and how to proceed, we will discuss in the stream – the first stream of the Sunday Traders’ School. It will take place on January 28, 2024 at 12-00 GMT , on TradingView.