filtering daily momentum stocks in trading view you can find here how to filter in Tradingview by using screener option. take this as learning point practice and backtest this method.
Beyond Technical Analysis
A further breakdown of how I read the market and all the "lines"Key words to understand:
- Tapering
- Liquidity
- Tapering
- Tapering
It's important to understand how liquidity plays a role in moving price and what it actually means. In order for price to make a solid move anywhere, there has to be liquidity built up for price to grab (use) to break out of strong resistance levels (i.e. levels with lots of sellers ready to short when price gets there).
Tapering is a way of seeing a lack of liquidity by a certain side - if we begin tapering from a strong buying channel to a less strong buying channel, it typically means we are lacking liquidity to break out of that strong selling level (i.e. the top of a more tapered channel acts as a level of resistance because the more tapered it is (or the more horizontal it is), the more it lines up for all sellers to get in at the same price win the battle.
This all makes so much sense to me and it is the key for you to unlock the market . To be able to tell a story in every chart and understand who is in charge, why there in charge, and what each side has to do in order to win their next battle.
Please reach out with any questions, comments, etc. I am here for you !
Happy Trading :)
What Makes a Trade – Unveil the pillars of profitable tradingTo trade well is nothing more than a calculated dance on the trading floor.
You need to navigate the volatile seas of markets and understand the essential elements of a trade.
And whether you’re a newbie or the MOST experienced trader out there, you need to adopt the same quintessential factors with your trading.
And that is, the elements that make a trade.
Let’s get into them…
Position Size
Imagine building a mansion without a blueprint.
That’s what trading without considering position size feels like—chaotic and prone to collapse.
The cornerstone of any robust trading strategy is for you to figure out the right amount of exposure to each position.
It’s not just about the quantity of trades but the quality of each.
You need to be precise in the position sizing with each trade.
That is to maintain your risk and money management.
That is to make sure you will only deposit a certain amount into your trade.
And it is to ensure you have enough money to take on new and even higher probabilities of trades.
Precision in position sizing is the silent architect behind the towering fortresses of successful traders.
Entry: The art of timing of execution
Whenever you enter into a market, 98% of the work is done.
You have everything lined up according to the criteria, strategy and plan.
You already have your idea on whether a market is likely to rally on up or fall off its horse.
It’s not just about being in the market; it’s about being in the market at the right moment.
Risk Level: Taming the market beast
In the wilderness of financial markets, risk is the untamed beast that can either devour or be tamed.
You need to be able to recognize the risk levels you’ll set to contain the beast.
Where to place your stop loss
The calculations of where you are NOT most likely to be hit
Your risk per level and what you can stand to lose.
Your risk level is your shield to protect from unexpected peril.
You have to have all your calculations to lose a battle but NOT the war.
Reward Level: Harvest your fruits
Yes a MAJOR element to trading is RISK.
But it’s also about reward, or else why would we be doing it?
You need to meticulously set realistic reward levels that mirror the potential gains of a successful trade.
Your reward must ALWAYS be more than your risk.
You need to see the potential and likely future for the price to hit the take profit.
Profit and Time Protection Levels: Safe-guard your winners and cut your losses
Trading unfortunately is NOT always 100% mechanical.
You need to safeguard your positions at times.
What if the position becomes a non performing investment?’
And you’re losing daily interest?
Well you need some type of time stop loss.
This will get you out of your trade at a certain period so you can look for better positions.
Worst case scenario you lose less than expected. Or you even bank a bit of profits as the trade remains in the money.
FINAL WORDS:
Trading is a game of calculated strategy and skill.
But there are pillars of trading, you can’t avoid including:
Position size, entry
Risk level
Reward level and
Profit and time protection levels.
These will help you form the bedrock upon which the palaces of prosperous trading are built.
As you embark on your own trading odyssey, remember: mastery of these elements is not just a choice; it’s the key that unlocks the doors to financial triumph.
So make sure you have these elements ready to execute to make a trade happen.
Options Blueprint Series: Iron Condors for Balanced MarketsIntroduction:
In the nuanced world of options trading, the Iron Condor strategy stands out as a sophisticated yet accessible approach, especially suited for markets that exhibit a balanced demeanor. This strategy, belonging to the "Options Blueprint Series," is designed for traders who seek to harness the potential of stable markets. Iron Condors offer a way to generate profit from an underlying asset's lack of significant price movement, making it an ideal choice for periods characterized by low volatility.
Understanding Iron Condors:
An Iron Condor is a non-directional options strategy that aims to profit from a market that moves sideways or remains within a specific range. This strategy involves four different options contracts, specifically two calls and two puts, all with the same expiration date but different strike prices. It combines a bull put spread and a bear call spread to create a profitable zone.
To construct an Iron Condor, a trader sells one out-of-the-money put and buys another put with a lower strike price (forming the bull put spread), while also selling one out-of-the-money call and buying another call with a higher strike price (forming the bear call spread). The essence of this strategy is to collect premium income from the options sold, with the trade being most profitable if the underlying asset's price remains between the middle strike prices of the calls and puts sold.
The Iron Condor is lauded for its ability to generate returns in a stagnant or mildly volatile market, making it a preferred strategy among traders who anticipate little to no significant price movement in the underlying asset. However, it requires precise execution and an understanding of the underlying market conditions to mitigate risk and optimize potential returns.
Market Analysis:
The current financial landscape often presents scenarios where markets exhibit balanced behavior, characterized by low volatility and minor price fluctuations. In such environments, traditional directional trading strategies might not always offer the desired outcomes due to the lack of significant market movements. This is where the Iron Condor strategy shines, serving as an ideal tool for traders aiming to capitalize on market stability.
Balanced markets are typically observed during periods of economic uncertainty or when major market-moving events are anticipated but have yet to occur. Investors' wait-and-see attitude during these times results in a trading range where prices oscillate within a relatively tight band. Utilizing Iron Condors in these scenarios allows traders to define a price range within which they believe the market will remain over the life of the options contracts. Successfully identifying these ranges can lead to profitable trades, as the sold options will expire worthless, allowing the trader to retain the premiums received.
Implementing Iron Condors under such conditions requires a keen understanding of market indicators and trends. Traders must analyze historical volatility, forthcoming economic events, and overall market sentiment to gauge whether the market conditions are conducive to this strategy. This analysis is crucial in setting the strike prices for the options contracts, determining the width of the Condor's wings, and ultimately, the trade's risk-reward profile.
Introduction to Silver Futures:
Silver Futures represent a standard contract for the future delivery of silver, a precious metal with both investment appeal and industrial applications. Trading on the COMEX exchange, these futures provide a crucial tool for hedging against silver price volatility and speculating on future price movements.
Key Features of Silver Futures:
Contract Specifications: A standard Silver Futures contract on the COMEX division of the New York Mercantile Exchange (NYMEX) typically involves 5,000 troy ounces of silver. The price quotation is in U.S. dollars and cents per ounce.
Point Values: Each tick (0.005) movement in the silver price represents a $25 change in the value of the Silver Futures contract. This point value is critical for calculating potential profits and losses in silver trading.
Trading Hours: Silver Futures are traded almost around the clock (23 hours per day) in electronic trading sessions, providing opportunities to react to global economic events as they unfold.
Margin Requirements: Trading Silver Futures requires a margin deposit, a form of collateral to cover the credit risk. The initial margin is set by the exchange and varies with market volatility. The current recommendation set by COMEX is $8,000 per contract.
Options on Silver Futures:
Options on Silver Futures offer traders the right, but not the obligation, to buy (call options) or sell (put options) the futures contract at a specified price before the option expires. These instruments allow for strategies like Iron Condors, providing additional flexibility in managing silver price exposure.
Applying Iron Condors to Silver Futures Options:
Implementing Iron Condors within the realm of Silver Futures Options requires a strategic selection of strike prices that reflect a balanced market's expected trading range. By capitalizing on Silver's historical volatility patterns and current market analysis, traders can construct Iron Condors to optimize their chances of success.
Trade Setup:
Underlying Asset: Silver Futures (Symbol: SI1!)
Market Conditions: Anticipation of a stable to mildly volatile market environment.
Strategy Components:
Sell Put Option: Strike Price $22.50
Buy Put Option: Strike Price $21.95
Sell Call Option: Strike Price $23.85
Buy Call Option: Strike Price $24.30
Net Premium Received: 0.2680 points = $1,340
Maximum Profit: Net Premium Received $1,340 per contract
Maximum Loss: Difference between strike prices minus net premium received = 0.55 / 0.005 x 25 – 1,340 = $1,410 per contract
Trade Rationalization:
This trade setup is designed to profit from a range-bound market, where the price of silver is expected to remain between key support and resistance price levels until the options' expiration. The selected strike prices reflect a balanced view of the silver market, aiming to maximize premium income while limiting risk exposure. The trade's success hinges on silver prices staying within the defined range, allowing all options to expire worthless and the trader to retain the collected premiums.
Trade Management:
Managing risks associated with Iron Condors involves closely monitoring silver prices and being prepared to adjust the strategy in response to significant market movements. This may include rolling out positions to different strike prices or expiration dates, or closing out the position to mitigate losses. Understanding the nuances of Silver Futures and their options is crucial for effective risk management in this strategy.
Risk Management:
Effective risk management is paramount when employing Iron Condors, particularly in the volatile commodities market. The Iron Condor strategy, by design, limits the maximum potential loss to the difference between the strike prices of the inner options minus the net premium received. However, market conditions can change swiftly, leading to potential challenges that necessitate proactive risk management techniques.
Monitoring Market Conditions: Continuous observation of market dynamics is essential. Significant economic announcements, geopolitical events, or changes in supply and demand can impact silver prices drastically. Traders should stay informed and ready to act if the market moves against their position.
Adjusting Positions: In the event of unfavorable market movements, traders may need to adjust their positions. This could involve closing out the position early to cut losses or 'rolling' the strategy to different strike prices or expiration dates to better align with the new market outlook.
Use of Stop-Loss Orders: While not always applicable in options trading, setting conditional orders to exit positions can help limit losses. For Iron Condors, this might mean closing the trade if the potential maximum loss is approached.
Diversification: Employing Iron Condors as part of a broader, diversified trading strategy can help mitigate risks. No single trade should expose the trader to disproportionate risk.
Conclusion:
The Iron Condor strategy offers a prudent approach for traders looking to capitalize on balanced markets, such as those often encountered with Silver Futures and Options. By selling options with strike prices outside the expected range of movement and protecting the position with further out-of-the-money options bought, traders can receive premium income while having a clear understanding of their maximum risk exposure.
This strategy thrives in environments of low to moderate volatility, where the underlying asset—silver, in this case—is expected to fluctuate within a predictable range. The inclusion of Silver Futures and Options in this strategic framework not only illustrates the versatility of Iron Condors but also underscores the importance of comprehensive market analysis and robust risk management practices.
By meticulously crafting their positions, monitoring market conditions, and being prepared to make adjustments as necessary, traders can effectively navigate the complexities of the commodities market, harnessing the potential of Iron Condors to enhance their trading portfolio.
When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies.
General Disclaimer:
The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
The One Main Reason Why Investing is StressfulBack in 1967, a big study called the Whitehall studies was done by Professor Michael Marmot. He looked at 28,000 British office workers for 40 years.
en.wikipedia.org
For the first time, this study showed how stress from work really affects how long people live and their health.
It also found out if you’re higher up or lower down in your job affects how stressed you are.
You might think, well, that’s obvious, right?
People with big jobs, who look after lots of workers and have big decisions to make, must be the most stressed. They’ve got a lot on their plate. If things go wrong, it’s a big deal.
But, the Whitehall studies showed something surprising.
It was actually the workers lower down, not the big bosses, who were more stressed. These workers were not as healthy and had a way higher chance of dying earlier.
In fact, they were three times more likely to die earlier than the people at the top.
But why is that?
The second part of the Whitehall studies discovered something interesting about the workers lower down.
They didn’t have much support from friends or coworkers, their jobs were pretty repetitive, and the biggest issue was they couldn’t make any important decisions themselves. They have less control than people higher up. Thus they become more stressed
This idea of not having control is super relevant to in investing
When you invest, the market goes up and down for reasons you can’t predict, anticipate or control.
This can make investing feel like a wild ride where you’re not sure what’s going to happen next. It’s exciting when your investments do well, but really stressful when they don’t.
The stress comes from feeling out of control, just like the workers in the study.
But here’s a cool thing: realizing we can’t control the market can actually make us feel better.
It means we can focus on what we can control, like how we react and make decisions about our money. Here are some tips:
Spread Your Investments Out: Don’t put all your money in one place. Having different kinds of investments can help protect you when the market gets rough.
Know Your Comfort Zone: Some people are okay with big risks, and some aren’t. It’s important to invest in a way that doesn’t keep you up at night worrying.
Think Long-Term: The market will always have ups and downs. But if you’re investing for the long haul, you don’t need to worry about every little change.
Keep Learning: The more you know about how investing works, the more confident you’ll feel making decisions. Read books and read analysis and insights from someone who has been in the market longer than you. We have lots of expert analysis here on Tradingview that you can learn from. Use them to your advantage.
By doing these things, we can feel a bit more in control of our investing, which makes it less stressful.
Think of this like being the captain of your own ship in the big sea of the stock market. You can’t control the weather, but you can learn how to sail better and of course your respond to unfriendly weather.
So, the big takeaway from that old study isn’t just about work. It’s about life and investing too.
Feeling in control where we can makes a huge difference in how stressed we feel. And in investing, that means making smart choices with our money, so we don’t have to worry so much about the ups and downs. Find yourself a way to be okay with the ride.
Stop worrying about things you can’t control start focusing on things you can control.
Presentation of possible variants of the DCA strategyBuying areas and possible withdrawals of the QQQ ETF, for long-term investments. You can follow the evolution on a weekly timeframe and take profits or add to the investment at major support or resistance areas.
5 TIPS FOR SMALL ACCOUNTSHey! When we start trading we want to make a lot of money and became millionaires by the end of month. This awesome motivation could be cut off easily without following simple plan and strategy.
When I started trading I entered only with 100$ account and loose it all within a month. I didn’t payed attention to my personal financial plan and rules, which cost me a lot of losses during my first steps in trading.
Knowing this 5 tips will help you out if you just started trading and run small account.
So, 5 TIPS FOR SMALL ACCOUNTS
1. Follow financial plan, do not go all in. Yeah, to make financial plan you need to study it first, if you are without financial education. DO NOT GO ALL IN, this is not joke, stop it right now! Small is Big in trading, and watch your trades carefully.
2. Trade less instruments, trade less often. Focus. Once again, small is big. Learn one or two assets, learn their nature and regular chart behaviour. This will help you focus and start open profitable trades.
3. Avoid highly volatile assets, trade high volumes. Take one or two big volume assets and start trading on them only. Do not run into forgotten stocks or coins just because they low cost.
4. Use higher timeframes, do not scalp. Most of new traders lose money in first months just because they trying scalping, your emotions going crazy and risks increasing rapidly. Start taking one-two trades per week and see how it will go, this will release pressure and relax.
5. Accept losses, plan how much you can lose. The biggest problem of all traders is to think in percentages about losses, this way will only increase losses. Think about money and plan you affordable loss amount.
👍I appreciate your likes and comments below this post, lets discuss our problems in trading! 💬
CHOCH vs BOS ‼️WHAT IS BOS ?
BOS - break of strucuture. I will use market structure bullish or bearish to understand if the institutions are buying or selling a financial asset.
To spot a bullish / bearish market structure we should see a higher highs and higher lows and viceversa, to spot the continuation of the bullish market structure we should see bullish price action above the last old high in the structure this is the BOS.
BOS for me is a confirmation that price will go higher after the retracement and we are still in a bullish move
WHAT IS CHOCH?
CHOCH - change of character. Also known as reversal, when the price fails to make a new higher high or lower low, then the price broke the structure and continue in other direction.
What is Confluence❓✅ Confluence refers to any circumstance where you see multiple trade signals lining up on your charts and telling you to take a trade. Usually these are technical indicators, though sometimes they may be price patterns. It all depends on what you use to plan your trades. A lot of traders fill their charts with dozens of indicators for this reason. They want to find confluence — but oftentimes the result is conflicting signals. This can cause a lapse of confidence and a great deal of confusion. Some traders add more and more signals the less confident they get, and continue to make the problem worse for themselves.
✅ Confluence is very important to increase the chances of winning trades, a trader needs to have at least two factors of confluence to open a trade. When the confluence exists, the trader becomes more confident on his negotiations.
✅ The Factors Of Confluence Are:
Higher Time Frame Analysis;
Trade during London Open;
Trade during New York Open;
Refine Higher Time Frame key levels in Lower
Time Frame entries;
Combine setups;
Trade during High Impact News Events.
✅ Refine HTF key levels in LTF entries or setups for confirmation that the HTF analysis will hold the price.
HTF Key Levels Are:
HTF Order Blocks;
HTF Liquidity Pools;
HTF Market Structure.
Market Structure Identification ✅Hello traders!
I want to share with you some educational content.
✅ MARKET STRUCTURE .
Today we will talk about market structure in the financial markets, market structure is basically the understading where the institutional traders/investors are positioned are they short or long on certain financial asset, it is very important to be positioned your trading opportunities with the trend as the saying says trend is your friend follow the trend when you are taking trades that are alligned with the strucutre you have a better probability of them closing in profit.
✅ Types of Market Structure
Bearish Market Structure - institutions are positioned LONG, look only to enter long/buy trades, we are spotingt the bullish market strucutre if price is making higher highs (hh) and higher lows (hl)
Bullish Market Structure - institutions are positioned SHORT, look only to enter short/sell trades, we are spoting the bearish market strucutre when price is making lower highs (lh) and lower lows (ll)
Range Market Structure - the volumes on short/long trades are equall instiutions dont have a clear direction we are spoting this strucutre if we see price making equal highs and equal lows and is accumulating .
I hope I was clear enough so you can understand this very important trading concept, remember its not in the number its in the quality of the trades and to have a better quality try to allign every trading idea with the actual structure
RUMINATION IN TRADING👋 Hello, Forex traders!
Let's talk about rumination in trading. What is rumination? Rumination in trading is the process of going over previous trades and market situations in your head. Trying to understand what went wrong and to think of a better way of doing things. In "moderate doses" it is analysis. But when a person thinks about it all the time and in a negative way, analysis turns into mania and "self-beating" for mistakes made.
Differences Between Rumination and Analysis ❓
Analysis is an essential part of learning to trade. It involves fixing all actions in a table editor, on paper, or uploading history from the platform. Traders analyze their best and worst moments, identify mistakes, changes in risk level, and successful trades. They also look for ways to optimize their trading system. Rumination, on the other hand, is obsessive thinking with an emphasis on the negative. It involves constant "chewing" of negative moments without searching for a solution. A stock or crypto you bought went down sharply, and all your thoughts are occupied with why it happened and how to fix it.
Rumination in trading is the habit of endlessly worrying about and analyzing your trades, mistakes, losses or missed opportunities. It can lead to negative thinking, pessimism, depression, anxiety, impulsiveness and inactivity. Rumination prevents a trader from focusing on the present and the future and following his trading strategy and discipline. Rumination, instead of analyzing, improving and solving a problem, only makes the situation worse.
Causes of Rumination in Trading 📋
• Lack of confidence. A trader who is insecure is constantly trying to look for mistakes in his previous trades to justify his failures.
• Fear of failure. A trader who is afraid of losing money is constantly running through possible failure scenarios in his head to try to avoid them.
• Striving for perfection. A trader who strives for perfection is constantly trying to find ways to improve his or her results, even if they are already quite consistent with expectations.
Consequences of Rumination in Trading ⭕️
• Decreased trading efficiency. A trader who is constantly replaying past trades in his head cannot focus on the present and make the right decisions.
• Loss of money. Rumination can lead to impulsive trading decisions that can lead to losses.
• Mental Distress. Constantly running negative thoughts through your head can lead to stress, anxiety, and even depression.
How To Avoid Rumination In Trading ✅
1. Set limits on the time you spend analyzing past trades.
2. Focus on what you can control.
3. Develop positive thinking and self-esteem.
4. Determine your trading goals, rules, risks, and plans in advance and stick to them.
5. Keep a trading diary where you record your trades, results, mistakes, lessons learned, and emotions.
6. Limit the time spent analyzing charts, news, and forums.
7. Take time away from trading, pursue other interests, hobbies, friends, and family.
8. Find ways to relax and de-stress: meditation, sports, music, reading, etc.
9. Mentally prepare yourself for the worst-case scenario before entering a trade.
10. Every night before you go to bed, think of three good things that happened to you during the day.
Example ✍️
You buy EURUSD with the expectation of growth. But there is a downside risk. Prepare yourself mentally for the fact that there are all the prerequisites for the fall of the pair, and you are ready to accept losses. If the price has reached the stop loss, take it with the thought "It is good that it is so, otherwise you could have lost even more" and go to rest. Ask yourself: what is the worst that can happen and how can I deal with it?
In conclusion , rumination in trading can be detrimental to a trader's success. By understanding the differences between rumination and analysis, identifying causes, and implementing strategies to avoid rumination, we can improve our mental well-being and trading performance.
Traders, If you liked this educational post🎓, give it a boost 🚀 and drop a comment
What is Spread in Trading | Everything You Need to Know
Hey traders,
It turned out that many newbie traders completely neglect spreads in their trading.
In this post, we will discuss what is the market spread and how it can occasionally spoil a seemingly good trade.
💱No matter what financial instrument we trade, in order to buy the asset we need to have a counterpart that is willing to sell it to us and vice versa, if we want to sell the asset, we need to have someone to sell it to.
The market provides a convenient exchange between buyers and sellers. The asset price is determined by a current supply and demand.
However, even the most liquid markets have two prices: bid and ask.
🙋♂️ Ask price represents the lowest price the market participants are willing to sell the asset to you, while 🙇♂️ bid price shows the highest price the market participants are willing to buy the asset from you.
Here is how bid and ask prices look like.
Bid and ask price are almost never equal. The difference between them is called the spread .
📈The spread size depends on liquidity of the market.
📍Higher liquidity implies bigger trading volumes and greater number of market participants, making it easier for them to make an exchange.
On such markets we see lower spreads.
📍From the other side, less liquid markets are categorized with low trading volumes, making it harder for the market participants to find a counterpart for the exchange.
On such market, spreads are usually high.
For example, current EURUSD price is 1.0249 / 1.0269.
Bid price is 1.0249 - you open short position on that price.
Ask price is 1.0269 - you open long position on that price.
The spread is 2 pips.
❗️Spreads must always be considered in a calculation of a risk to reward ratio for the trade. For scalpers and day traders, higher than usual spread may spoil a seemingly good trade.
Always check spreads before you open the trade.
Check how the spread is displayed in the trading terminal.
In 2020, for example, we saw unusually high spreads on Gold during UK/NY trading sessions. Spreads were so high that I did not manage to open a trade for a couple of days.
Not considering spreads in such a situation would cost you a lot of money.
Do you consider spread when you trade?🤓
Making and using Stacked Channels on log scale for targets 🧠 💱Alright, so here I will explain the idea of stacked channels on a logarithmic scale. First thing you need to do is go to logarithmic on your chart. You might want to reset the scale just for convenience so it looks nice and neat. Then you go to the channel and look, obviously we're going to start at the bottom. Okay. Now what you want to do is you find your channel here, right? Let's say this was the first one. You can go here as well. You can go here. It's whatever. I'll just go here to the beginning See how it lines up at the top. Okay, then I'll extend it And you were asking when does the price break out of the channel so here I'll mark it so you see This was a fake out. But here we have a legit legitimate breakout, right? So If I highlight this area right here, you know, you have the breakout of the channel, out of the channel. So what I do now is, I'm going to copy this channel, clone it. Ok, CTRL-C, CTRL-V, just slide it up, match the top of the old channel to the bottom of the new one. And you have a nice target here. See how it touched and stayed roughly around here? So that's all there is to it. And look, perfect here. You see? Confirmation. Confirmation again. Confirmation again. That's how you do it.
Defining Target for Risk Reward: Maybe you shouldn't?The trade plan is broken up into parts. We have an objective and consistent entry, stop, and exit plan. Here I will be talking about the exit plan and setting targets that will give you a particular risk/reward ratio. There are no absolutes when it comes to what risk/reward you should be aiming for, a lot has to do with how you handle risk and loss and your overall understanding of markets.
Defining the stop (risk) is relatively easy compared to defining the target (reward). Mostly you need a clean set of statistics on an objective method. This will give you an average distance that the swing will run in relation to your method. The reward part of the equation is a function of how far your stop is to your entry.
There is no one-size-fits-all when it comes to trading. For many, it may be best not to set a target, but instead use something simple and objective like a moving average to exit the trade. This way, you get what the market gives you while incorporating consistency and objectivity into your exit plan. Keep it simple, objective, and consistent, and learn as you go. In the video, I make something up on the spot that may give you some ideas. I use a 20ema as a profit stop only after price has made a new high. It's simple, principle-based, and it's objective.
No matter what your method, knowing where you are in the swing cycle will help in defining entry, stop, and target, and this will directly influence the risk/reward ratio.
Shane
Why Central Banks Buying Gold & Institutions Hedging the Yields?While many of us celebrate the stock markets reaching new highs, central banks worldwide are actively purchasing gold, and institutions are hedging into treasuries and yields.
Interest rates are determined by the central banks whereas Yields are determined by the investors.
If you choose to lend or borrow money over a longer period, such as 10 or 30 years, you would typically expect to earn or pay more interest for this extended duration loan contract. However, currently, we are witnessing an inversion of this relationship, known as the inverted yield curve, where borrowers are required to pay higher interest on their short-term loans, such as the 2-year yield we're observing, compared to their longer-term borrowing.
2 Year Yield Futures
Ticker: 2YY
Minimum fluctuation:
0.001 Index points (1/10th basis point per annum) = $1.00
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
• Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises.
Exploring ICT Concepts: GBPUSD Educational AnalysisIn this educational video, I will delve into key ICT concepts such as Market Structure, IPDA delivery, Order Pairing, High Resistance Liquidity Zones, and Draw On Liquidity, Entry Confirmations. Additionally, I will provide a detailed long-term daily perspective on GBPUSD.
The purpose of this video is to elucidate why I identified a potential sell opportunity on GBPUSD during the London session. For further context, please refer to the post below.
Refer:
Kind Regards,
The_Architect
Crypto Regulations: How MiCA Will Affect EU TradersIn the rapidly evolving world of cryptocurrency, the European Union has taken a significant and important step forward with the introduction of the Markets in Crypto-Assets Regulation (MiCA). This groundbreaking regulatory framework marks a pivotal moment for the crypto market within the EU, promising to bring much-needed clarity and stability to an industry that has long been likened to the Wild West due to its volatility and lack of standardization.
The European Union is a leader in creating legislation for emerging technologies. This became clear with the introduction of GDPR, which protects internet users’ personal data, the AI Act that aims to protect citizens of the EU from malpractice, such as cognitive manipulation of people and social scoring, and now - MiCA. Paving the way forward for others, the EU is evolving its digital legislation frameworks faster than other unions or countries.
This article delves into how MiCA will reshape the landscape for EU traders, impacting everything - from the way they interact with crypto assets to the broader market dynamics they navigate daily.
Why do we need regulations like MiCA?
If there are no regulations, markets can run wild and experience giant increases, however when the fun is over and people lose money to fraud and even large-scale bankruptcy of exchanges - investors, especially institutional ones, will not dare place their money in crypto projects and companies. And since for investors, money is trust - the cryptocurrency market is doomed without proper regulation.
On the flip side, extremely stringent and disorganized legislation can lead to the same outcome. Countries struggle with the abstract nature of cryptocurrencies, and many have expressed an outright desire to ban them, seeing as it is the easier option. That is why MiCA is a well-devised framework for others to follow - It is focused and comprehensive.
Some may argue that cryptocurrencies are meant to be decentralized, unregulated and follow a laissez-faire approach. While this is possible, more so for some cryptocurrencies than others, there can be no growth in these markets as new projects need to have banking and investors behind them to realize their blockchain-based ideas. It is also unrealistic to think that such a clandestine financial system will never cross paths with the regular banking system.
What exactly is MiCA?
The inception of the Markets in Crypto-Assets Regulation (MiCA) is rooted in the European Union's recognition of the growing significance of cryptocurrencies and the associated risks in an unregulated environment. The primary catalyst for MiCA's development was the need for regulatory clarity in the burgeoning crypto market, which had been expanding rapidly without a standardized regulatory framework since the birth of Bitcoin in 2009. This lack of regulation posed risks such as fraud, market manipulation and financial instability.
These concerns were heightened by incidents like the surge in initial coin offerings (ICOs), the capitulation of multiple large exchanges and the ironic instability of stable-coins.
MiCA was proposed to provide a harmonized regulatory framework for crypto-assets that are not covered under existing EU financial legislation. The objective was to safeguard investors, maintain financial stability, and promote innovation within a secure and transparent environment. By introducing clear rules, MiCA aims to legitimize the crypto market, making it safer and more attractive for investors and consumers while mitigating the potential for financial crime and market manipulation.
This move towards regulation reflects a global trend of governments and financial authorities worldwide striving to balance the benefits of innovation in the digital asset space with the need for consumer protection and market integrity. As such, MiCA represents a significant step by the EU in establishing a comprehensive regulatory regime for crypto-assets, setting a precedent that could influence global standards in cryptocurrency regulation.
Key Points of MiCA
MiCA introduces several key provisions that are set to transform the crypto-asset landscape in the European Union. The areas that are discussed and regulated the most are the areas where incidents have happened and people have lost their funds. It is important not to make the same mistakes as before.
Exchanges & Brokerages
One of the primary aspects of MiCA is the establishment of stringent authorization requirements for crypto-asset service providers. Under MiCA, any entity aiming to offer services related to crypto-assets, including trading, custody, or advisory services, must obtain authorization from one of the EU's national financial regulators. This process is designed to ensure that providers adhere to high standards of operational conduct, governance, and consumer protection outlined in the legislation. Crypto exchanges have gone bankrupt, been hacked or shut down abruptly in crypto’s short history. The aim of legislatures is to prevent these collapses or stop them in their tracks.
Initial Public / Coin Offerings
Another fundamental component of MiCA is the regulation of public offerings of crypto-assets. Companies intending to offer crypto-assets to the public are required to publish a detailed white paper. This document must provide clear, fair, and comprehensive information about the risks involved, ensuring that potential buyers are well-informed. The regulations aim to prevent misleading practices and enhance transparency in the market. Until now, many ICOs do publish white papers, however they can be purely fictional, written to trick the untrained eye into thinking the project is professionally done. Furthermore, this official process of submitting a white paper will ensure that the people behind the project are known. This will prevent people from faking their identities in order to anonymously scam their clients.
Stablecoins
MiCA also specifically addresses the regulation of stablecoins, which are categorized as either e-money tokens (EMTs) or asset-referenced tokens (ARTs). EMTs are stablecoins pegged to the value of a fiat currency, such as USDT, USDC and BUSD. ARTs are linked to other assets, such as WETH, WBTC. MiCA mandates that stablecoins must maintain adequate reserves and adhere to governance standards. Furthermore, there are stringent rules for stablecoins not pegged to EU currencies, including a cap on the number of transactions per day, aimed at preventing these assets from undermining the Euro. This approach to stablecoins is a response to concerns about their potential impact on financial stability and monetary policy. These concerns are justified, following the collapse of a few large market cap stable-coins during 2022.
Through these provisions, MiCA aims to establish a secure and transparent environment for the trading and use of crypto-assets, ensuring that the rights of investors are protected while fostering innovation in the sector.
Conclusion
The introduction of MiCA by the European Union represents a watershed moment for the crypto-asset market. By establishing a harmonized regulatory framework, MiCA seeks to provide clarity, enhance market integrity, and protect investors, all while fostering an environment conducive to innovation. For EU traders, these regulations offer a more secure and transparent trading landscape, albeit with increased compliance obligations.
The provisions on stablecoins, in particular, demonstrate a nuanced approach to different types of crypto-assets. As MiCA comes into full effect, its influence is expected to extend beyond the EU, potentially setting a precedent for global crypto-asset regulation. For traders and investors, staying informed and adapting to these regulatory changes will be key to navigating the evolving crypto market landscape.
Trader makes money, not the system (p.3)Continuation of previous text... .
Traits of the best traders .
The best ones are very independent. I haven't met anyone who relies on the opinions of others in making decisions, especially opinions published on forums on the Internet or in the press.
There's a saying that Wall Street is the kind of place where people come in Rolls-Royce cars to listen to the opinions of analysts who come by subway. I probably don't need to add what happens to their money in such a situation. Many of the best even trade against "the rest," often treating, for example, news and analysts' opinions as signals to trade against them.
Let me give you an example - there are a lot of articles in the media that gold continues to rise and you can make money on it beats record highs... In a while "gold machines" appear, where you can buy gold bars. Banks start selling physical gold to their customers.... People are in a buying frenzy. But let's look at the situation from the side...
Watching the volume, we see that there is a lot of turnover. Literally "everyone" is buying, even those who have never invested in anything. Someone is selling this gold to them, because the turnover is high and the price does not move up - a sign that the demand is balanced by the supply of gold.
Hence the conclusion that someone is selling, and selling a lot. The question is who, since "everyone" is buying?
If this market of "retailers" saturates then... there will be no more buyers. Because, as you might expect, the biggest ones are selling, the professionals who bought "cheap" and are now selling "expensive" - to all the small investors. And to drive demand among them - they use the media. I know that when you hear about it for the first time it is hard to believe - but if you see it for the fiftieth and hundredth time you will change your mind.
Buy cheap and sell high - the eternal mantra of good investors .
Experienced investors buy when no one else is buying and sell when "everyone" is buying, because they know that demand will be exhausted in a while.
Most small investors buy when it's expensive because someone has told them they'll make money and sell cheap because someone scares them that it will drop further.
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Why does investor behaviours never change?The consistency of investor behaviors stems from the fundamental aspects of human psychology, which remain largely unchanged over time.
Achieving proficiency in investing requires not just a surface-level understanding of psychology, but a deep and nuanced comprehension that can only be acquired through years of observation and study. And you need work with your own mindset.
Market dynamics are driven by the actions of its participants, who are essentially human beings. Whether in the short term or the long term, market movements are a reflection of human behavior.
This doesn't diminish the importance of analytical skills in investing; rather, it underscores the crucial role that understanding human behavior plays. Even someone with exceptional analytical abilities may struggle to succeed in investing without a keen insight into human psychology.
Because human behavior tends to remain consistent over time, investor behavior also remains consistent. As a result, markets will continue to exhibit familiar patterns and tendencies as long as they are driven by human participation.
Throughout 2022 - 2023, a common narrative has permeated discussions:
* We will see 2008 financial crisis.
* Interest rates are poised to increase
* The belief is that the Federal Reserve will no longer intervene to rescue the markets.
* Btc its just a cat bounce, sp500 should go down to 2800
* There is no new alt season
* AI trend its a Dot com bubble
And many other.
people love to find some LOGIC or patterns, because its will be much easier play the games in "experts"
Yet, there's a fundamental flaw in this narrative: human behavior.
We have a tendency to forget lessons learned and revert to our previous habits. As global crises begin to recede, history shows that we often resume our previous patterns.
In other words, we revert to our old ways: buying, buying, and buying once again.
Human nature and the market are constants that remain unchanged over time. Understanding our typical behaviors, whether good or bad, is essential.
To excel as an investor, one must delve beyond just grasping the fundamentals or technicalities of investing; it's crucial to delve into human behavior. This entails studying not only market behavior but also human behavior in general.
By releasing expectations of instant wealth in the market, we can appreciate its intricacies. The market serves as a remarkable platform where one can glean insights into money, business, psychology, history, and, most significantly, oneself.
It's a rigorous system that penalizes errors but also bestows rewards for wise decisions.
At the end just reduce your expectations, and just simply trade assets not your wishes.
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✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes.
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100% TRADERS START WITH DREAM TO GET RICH QUICKHey guys! Do you agree with me?!
It's easy to become charmed by the prospect of making rapid money in the financial markets, yet trading makes almost no one rich – in fact, many individuals lose money*
If you like my graphics, please use Like button 💙💛
* 90% of traders losing money, only 10% get profits. Why?
Here is 3 reasons:
1) Most traders Enter A Trade Too Early
2) Most traders Exit Too Late
3) Most traders Don’t Follow a Risk Management
Here is list my tips to help you to get in profit:
A better Relationship w\ TimeTime is relative, you aren't late, you aren't early. When it comes to trading, you will only know after the fact. So by taking the guess work out of whether or not you are on time and just letting the market do what it has to do, all of sudden you can't be late or early
I hope this helps
Trader makes money, not the system (p.2)10 practical tips on how to have a profitable system to be a profitable trader
Let's start with what is our ideal, when we see the signals from the system on the historical chart - SL and TP then our "ideal" would be to make an entry and get to the TP a little "in a mechanical way". That is, the way an automatic would do it.
I will now give some tips that should not be new to readers anymore.
1. Rethink your goals, think about placing them in time. Think about what monthly goal (monthly profit in pips or money) would be appropriate to achieve them. This step will form the framework of the requirements you will set for yourself and the system.
2. Define the system: entry, position management, exit. According to these principles, prepare to execute the trade, when the signal comes.
3.Post-trade analysis should show what you didn't do, what you could have done differently, better, and where you possibly have weaknesses.
4. We should work on any issue that weakens and hinders us, whether it is a lack of mental strength, or debilitating beliefs, or, for example, their conflicts.
5. Our goal will be to first correct, then HQ the execution of the trade from the start (from the market analysis) to exit and initial analysis.
6. A good way to make "daily improvements" is to apply the Kaizen philosophy to trading, as described in a previous lesson.
7. Many traders have good systems, but make losses until they start working on themselves and eliminating their mistakes and weaknesses. This is why the trader makes money and not the system.
8. Having a plan, learn to execute it like a bricklayer who comes to work to lay a certain number of bricks in an expert manner. Your tools are constant study of mastering the system, meditation, relaxation exercises, tension control, breath control, control of internal dialogue. They will allow you to lay bricks in the right way - the way you have it written down in your plan and the way you have prepared for yourself before entering the market.
9. Start each day with a quick reminder of your long-term goals, this will keep you on the right course and path. This will "tune" your psyche in the right way.
10. A plan is the starting point for applying discipline, without a plan talking about market discipline makes no sense. Discipline in executing a single trade is not enough, you need the discipline of executing about a hundred trades in the time you specify.
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📖 Market Wizards: ResumePublished by Jack D. Schwager in 1989, "Market Wizards" marks the beginning of an indispensable series for traders and investors alike. Through engaging interviews, Schwager brings to light the experiences of titans such as Bruce Kovner, Richard Dennis, Paul Tudor Jones, Michael Steinhardt, Ed Seykota, Marty Schwartz, and Tom Baldwin, making learning from the best an enjoyable journey.
To keep things short, we highlighted the most important parts of the interviews and came back with these key takeaways:
There is no holy grail to trading success. The methodologies employed by the "market wizards " cover the entire spectrum from purely technical to purely fundamental and everything in between. The time they typically hold a trade ranges from minutes to years.
Although the styles of the traders are very different, many common denominators
were evident:
1. All those interviewed had a driving desire to become successful traders - in many cases, overcoming significant obstacles to reach their goal.
2. All reflected confidence that they could continue to win over the long run. Almost invariably, they considered their trading as the best and safest investment for their money.
3. Each trader had found a methodology that worked for him and remained true to that approach. Significantly, discipline was the word most frequently mentioned.
4. The top traders take their trading very seriously; most devote a substantial amount of their waking hours to market analysis and trading strategy.
5. Rigid risk control is one of the key elements in the trading strategy of virtually all those interviewed.
6. In a variety of ways, many of the traders stressed the importance of having the patience to wait for the right trading opportunity to present itself.
7. The importance of acting independently of the crowd was a frequently emphasized point.
8. All the top traders understand that losing is part of the game.
9. They all love what they are doing.
Below we've gathered a list of opinions from the traders interviewed in the book:
1. Implementation is as IMPORTANT as direction:
Getting the direction of the trade right is only part of a successful trade; putting the trade in the right way is critical.
2. You don’t get paid for being right.
Many traders fail not so much because of the trades they make when they are wrong, but rather because of the trades they don’t make when they are right.
3. Sometimes it is what you don’t do that counts.
“Music is the space between the notes.” – Claude Debussy. Analogously, the space between investments – the times one is out of the market – can be critical to successful investing.
4. Risk Control
Many market wizards interviewed in this book consider risk control even more important than the methodology.
5. Trade size can be more important than the entry point.
Traders focus almost entirely on where to enter a trade. In reality, the entry size is often more important than the entry price because if the size is too large, a trader will be more likely to exit a good trade on a meaningless adverse price move. Don’t let your greed influence position sizing beyond your comfort level.
6. Don’t try to be 100 percent right.
The market is moving against you and you are well aware of the dangers of an unconstrained loss, but you also still believe in your position and you are worried about throwing in the towel before the market turns. You are frozen in indecision.
7. Flexibility is a critical trait.
Flexibility is an essential quality to successful trading. It is important not to get attached to an idea and to always be willing to get out of a trade if the price action is inconsistent with your trade hypothesis.
8. The best remedy for a losing streak.
When you are in a losing streak, you can’t turn the situation around by trying harder. When trading is going badly, often the best solution is to stop trading for a while.
9. When everything is going great, watch out!
The worst drawdowns often come suddenly right on the heels of periods when just about everything seems to be working as well as if it had been optimistically scripted. In this case, a trader will be most susceptible to being lulled into complacency.
10. The market doesn’t care where you entered a trade.
Don’t make trading decisions based on where you bought (or sold) a stock or futures contract. The market doesn’t care where you entered your position. A common error traders make when they realize they are in a bad trade is to commit to getting out, but only after the market returns to their entry level – the proverbial “I will get out when I am even”. The linkage of liquidation to entry level is one of the major causes of turning small losses into large ones.
In conclusion , "The Market Wizards" by Jack D. Schwager serves as an illuminating guide into the minds and strategies of some of the most successful traders of our time.
Through insightful interviews and analysis, Schwager provides invaluable lessons on trading psychology, risk management, and market tactics. However, this is just the beginning of the journey into the world of market mastery.
To delve even deeper and expand your understanding, we highly encourage traders to explore the following volumes penned by Schwager: "The New Market Wizards" (1992), "Stock Market Wizards" (2001), "Hedge Fund Market Wizards" (2012), and "The Little Book of Market Wizards" (2014) . These sequels offer a rich tapestry of new interviews, anecdotes, and wisdom from a diverse array of trading luminaries, further enriching your knowledge and empowering your trading endeavors.
Whether you're a novice or a seasoned trader, these volumes are indispensable companions on your quest for trading success. Dive in, absorb the wisdom, and let it guide you on your path to becoming a true market wizard.
