Educationalposts
The DXY is A Snipers RSIThe DXY is already setting up to give us a strong Green candle. at 10am.
Euro will Short on the 1hr at 10am.
Let's test it together and see if this strategy works.
At 10am Look for EU to go short and the DXY to go long.
You should get confirmation on your 15 min TF
Never over leverage.
Trust your trade set up.
Have fun!
Trading made Simple.
BTC Analysis This is my idea. I have tried my best to bring the best possible outcome to this chart, Do not consider it FINANCIAL ADVICE.
So let's see how the market reacts in the coming days.
This chart is likely to help you in making better trade decisions.
I am not a market maker I could be wrong.
Everything is on the chart.
Thank you
BTC CME Gap What is CME Gap? (Chicago Mercantile Exchange) (CME)
A CME gap is created when the price of Bitcoin opens above or below the previous day's close on the CME exchange.
One of the prime reasons for CME gap creation is the fact that CME markets remain closed over the weekend and during a part of the day. Bitcoin, on other spot exchanges, is traded 24×7.
Historically, the percentage of CME gaps that get filled is between 60-80%. Hence,
using it as an indicator provides you with a degree of accuracy. A review of previous events could shade more light on this claim.
ETH CRASH HOW I CAUGHT THE WHOLE MOVEIma let the chart speak for itself
Inflation at a all time high
Gas prices insane
Everything is going up in price
Big shark holders in the eth btc luna crypto family etc strategically plan this type of power move as inflation rises you would think cryptos are pumping , your not totally wrong but everything has its due diligence and market structure is the ultimate answer to why the pump has not occured. OTB HAVE BEEN SET INCREASINGLY MAKING DEMAND TO THE BOTTOM SIDE HIGHER , AS BUYERS PREPARE TO BUY THE END CYCLE
socialparasite69 Gave me some RAD IdeasSo I took some of the tools @socialparasite69 was using because my oddly wired ADHD brain loved his rainbow....
I use Elliot Waves on the regular because I find them hard for me to understand (but how the hell do I figure it out if not for reading and using them)....
But I am trying to build a correlation between them and the Higher Higher Lower Low Stratagy, My Linear Regression lines I love to watch for movement out of channel, and Market Cipher A which is an awesome mix of EMA's that paint this friendly Rainbow.
Thanks to @socialparasite69 for sharing his ideas and the fact Market Cipher A and B Exsist!
I painted Shib up on my chart to show how im marking decisions on market movement.
Any ideas on tweaks are appreciated!
XTZ AnalysisXTZ Analysis
This is my idea. I have tried my best to bring the best possible outcome to this chart, Do not consider it FINANCIAL ADVICE.
So let's see how the market reacts in the coming days.
This chart is likely to help you in making better trade decisions
I am not a market maker I could be wrong.
Everything is on the chart.
Everything Depends On BTC Movement
Thank you
FIL/USDT Analysis #TheCryptoCityFIL Analysis
This is my idea. I have tried my best to bring the best possible outcome to this chart, Do not consider it FINANCIAL ADVICE.
So let's see how the market reacts in the coming days.
This chart is likely to help you in making better trade decisions
I am not a market maker I could be wrong.
Everything is on the chart.
Everything Depends On BTC Movement
Thank you
5 Reasons for and against trading forex 🤷♂️They make it look easy, posting lifestyle posts all over your Instagram feed.⠀
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Truth is, that's not real. 😒 Sorry.⠀
With that being said lets break this down into reason you should and shouldn't trade forex.
The reason I'm covering this as a forex idea is I am predominantly a forex trader and made my way to where I am trading forex.
This however does apply to any trading you might be thinking of getting involved with.
So lets get into it👍⠀
FIVE REASONS NOT TO TRADE FOREX
1. Can you afford to lose money?
If you cannot afford to lose money or you are desperate to make money then this really isn't for you.
Only trade with money you can afford to lose. If you are trading with money you really need to survive then your problems are about to get a whole lot bigger!
2. You don't know what you're doing!
We have all been there at some point of not knowing what we are doing.
But before even considering placing a life trade focus on learning and developing strategies.
Focus in on the process and the desired outcome will naturally happen.
We live in a world with so much resource and information at our finger tips.
Go do the research before getting in to deep to quickly.
3. You can't handle it when you're wrong or you're losing.
You will be wrong at times and that's okay.
So long as your winners cover the losses.
You also have to handle and learn that no matter how good of a strategy loser runs and periods of draw down happen to every trader.
No one can be 100% right all the time.
4. You are risk averse.
In any form of trading you are taking a risk.
If you are to risk averse then it's really not for you.
Risk management is key but if you are to averse trading wont fit your personality.
5. You don't have time.
A lot of people say they want this and then say time is a factor stopping them.
That's fine if you either make time and sacrifice or simply forget about trading.
If time is precious and you really don't have time due to important life commitments then focus in on them.
If you spend all your time on PlayStation and Netflix and say you haven't got time. Well then it comes down to lifestyle choice.
We all want trading success few realise how time consuming especially at the start when learning it can be.
There are also 5 good reasons why you should take up trading so lets cover them now.
FIVE REASON TO TRADE FOREX
1. You want freedom
Bored of working 50 hour weeks?
Be your own boss take control of your own destiny.
It's hard work but when achieved you'll wonder why you didn't do it sooner.
Very fulfilling seeing your kids grow up instead of getting in at 7pm as they are tucked up ready for bed. ⠀
No more missing school sports days or the certificates in assembly.⠀
Time for more golf maybe? ⠀
Remember to do it for these reasons and not a big shiny Lambo.
2. You have learned the basics and understand the upsides and downsides.
It's crucial to get educated and then still understand you will have up days and down days in trading.
Don't even trade until you are emotionally sound with all possible outcomes when placing trades.
You understand what is required along with being aware of the positives and the dangers.
3. You can deal with a high risk environment.
You understand the risk at stake but above all else you understand and practise good risk management.
Anxiety, worry, stress, not sleeping, losing money - I could go on.🤦♂️⠀
If you're feeling any of the above you haven't ticked the box on this one.
If you don't feel any of these you on the right path.
4. You are patient and will persevere.
We all want that quick money.
Social media makes us think it's easy
Fast money fast cars, trips to Dubai.
Commitment patience and dedication are the most important traits in trading.
This is not an overnight success game it takes time and will to learn the skills needed.
If you haven't got patience or commitment don't even bother.
So much more to this than just placing a few trades on your tea break.
5. You can stick to a plan and understand probabilities.
Once you have a plan that you have tested and take confidence in, understand probabilities and stick to it.
If you're hoping from one thing to the next with no real time spent on one plan you not got the traits needed.
If you understand probabilities and can let a proven plan with a known edge play out then your on the right track already.
FINAL THOUGHTS
Most fail - the common denominator in the ones that make it work are they don't quit.👍 Simple as that.😎⠀
Trading isn't for everyone. 🤯⠀
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Yes, there are upsides for sure - I touched on them.
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But it can be f**king horrible. 😢⠀
The negative emotions when trading can hit hard.
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That's not how trading 'should' be or feel, but its still a reality for a lot of traders.⠀
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If you're chasing money, if you're desperate to make a quid or three - don't do it.👌⠀
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This isn't the game for you.⠀
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There is simply no room for desperation - it will quickly find you out.⠀
If you can get emotions on point and a proven plan however the upsides are massive.
The key here is knowing to grow and get to where you want to be will take time.
⠀
If you had more time doing whatever you wanted each day, that's pretty cool right?🙌⠀
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Going on holiday whenever you want - like tomorrow? Just because you can.⠀
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Or just chilling in your garden on a nice day ☀️⠀
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Whatever floats your ⛵.⠀
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Time for you? Prioritising your health and fitness because you have never had time before?⠀
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Exactly - the benefits are endless.
But be ready to put the long hard miles in to get there and make sure you're doing it for the right reasons. ⠀
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Also, the cost to start this is like no other 'business' you could go and start.⠀
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No stock, no big start up costs - just you and your initial deposit. ⠀
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However big or small that may be it doesn't matter.⠀
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Learn to trade properly and there are now a wealth of funded trader programmes that can give you the freedom you crave without you having to save up for a lifetime.
Focus on getting your process right and then enjoy the inevitable outcomes.
Thanks for looking and enjoy your weekend.
Darren 🙌
S&P500 Index - Multi timeframe analysis with the Ichimoku CloudMulti timeframe analysis of the S&P500 Index using the Ichimoku Kinko Hyo with original 9,26,52,26 settings, i have also added Volume Profiles (VPVR) and (VPFR) onto the charts.
1 DAY CHART:
The Ichimoku Cloud Conversion Line (Tenkan Sen) is indicating that the Mid-Point of the Short-term momentum is upwards at the moment. This will possibly change to sideways or even downwards on the open of the next daily candle.
The Ichimoku Cloud Base Line (Kijun Sen) is indicating that the Mid-Point of the Mid-term momentum is sideways at the moment. Note that support at the Base Line (Kijun Sen) has failed on this 1 day timeframe.
The Ichinoku Cloud Lagging Span (Chikou Span) is indicating that momentum at the moment…… is downwards. Note that the Lagging Span (Chikou Span) is still under the price from 26 periods ago and is i the Bearish Zone under the Kumo (Cloud).
The Kumo (Cloud) is still red. Note that the Leading Span A (Senkou Span A) has started to move upwards but will swing back down if the price continues to drop.
Note that the Leading Span A (Senkou Span A) is still under the Leading Span B (Senkou Span B). Be on the lookout for if/when the Leading Span B (Senkou Span B) starts to move downwards on this 1 day timeframe indicating further strength to the downside.
Note that the price is still in the Bearish Zone under the Kumo (Cloud) on this 1 day timeframe.
Note that on this 1 day timeframe, the Price is under all of the Ichimoku Cloud indicators so let’s have a look at the 1 week timeframe and see if we have any Ichimoku support levels.
Volume Profiles:
Note that the Price is still under its Volume Profile Visible Range Point of Control (VPVR POC) for this charts visible range.
Not that the Price is still under its Volume Profile Fixed Range Point of Control (VPFR POC) for the fixed range of 14x daily candles i have selected.
1 WEEK CHART:
The Ichimoku Cloud Conversion Line (Tenkan Sen) is indicating that the Mid-Point of the Short-term momentum is downwards at the moment. Note that the price has found some resistance from the Conversion Line (Tenkan Sen) on this 1 week timframe.
The Ichimoku Cloud Base Line (Kijun Sen) is indicating that the Mid-Point of the Mid-term momentum is sideways at the moment.
Note that the Conversion Line (Tenkan Sen) is still under the Base Line (Kijun Sen) indicating strength for short term downwards momentum.
The Ichinoku Cloud Lagging Span (Chikou Span) is indicating that momentum at the moment…… is downwards. Note that the Lagging Span (Chikou Span) is still under the price from 26 periods ago. Note that the Lagging Span (Chikou Span) has dropped below the Leading Span A (Senkou Span A) and is now back in the Equilibrium Zone on this 1 week timeframe.
The Kumo (Cloud) is still red on this 1 week timeframe. Note that the Leading Span A (Senkou Span A) has started to move downwards and is still under the Leading Span B (Senkou Span B).
Note that the price is still in the Bearish Zone under the Kumo (Cloud) on this 1 week timeframe.
Note that on this 1 week timeframe, the Price is under all of the Ichimoku Cloud indicators so let’s have a look at the 2 week timeframe and see if we have any Ichimoku support levels.
Volume Profiles:
Note that the Price is still under its Volume Profile Visible Range Point of Control (VPVR POC) for this charts visible range.
Not that the Price is still under its Volume Profile Fixed Range Point of Control (VPFR POC) for the fixed range of 11x weekly candles i have selected.
2 WEEK CHART:
The Ichimoku Cloud Conversion Line (Tenkan Sen) is indicating that the Mid-Point of the Short-term momentum is sideways at the moment.
The Ichimoku Cloud Base Line (Kijun Sen) is indicating that the Mid-Point of the Mid-term momentum is sideways at the moment.
Note that the Conversion Line (Tenkan Sen) is still under the Base Line (Kijun Sen) indicating strength for short term downwards momentum.
The Ichimoku Cloud Lagging Span (Chikou Span) is indicating that momentum at the moment…… is downwards. Note that the Lagging Span (Chikou Span) is still under the price from 26 periods ago but is still in the Bullish Zone above the Kumo (Cloud).
The Kumo (Cloud) is still green. Note that the Leading Span A (Senko Span A) is still above the Leading Span B (Senkou Span B). Note that the Leading Span A (Senkou Span A) is moving sideways at the moment but the Leading Span B (Senkou Span B) is moving upwards, be on the lookout for if the Leading Span A (Senkou Span A) starts to move closer towards the Leading Span B (Senkou Span B).
Be on the lookout if the price drops below and closes below the Leading Span A (Senkou Span A) into the Equilibrium Zone on this 2 week timeframe.
Note that the price is still in the Bullish Zone above the Kumo (Cloud) on this 2 week timeframe.
Note that on this 2 week timeframe, the Price is under the Conversion Line (Tenkan Sen) and Base Line (Kijun Sen) but still has the Leading Span A (Senkou Span A) and Leading Span B (Senkou Span B) as potential support levels. Let’s have a look at the 1 month timeframe and see if we have anymore Ichimoku support levels.
Volume Profiles:
Note that the Price is still under its Volume Profile Visible Range Point of Control (VPVR POC) for this charts visible range.
Not that the Price is still under its Volume Profile Fixed Range Point of Control (VPFR POC) for the fixed range of 6x 2 weekly candles i have selected.
1 MONTH CHART:
The Ichimoku Cloud Conversion Line (Tenkan Sen) is indicating that the Mid-Point of the Short-term momentum is sideways at the moment.
The Ichimoku Cloud Base Line (Kijun Sen) is indicating that the Mid-Point of the Mid-term momentum is upwards at the moment.
Note that the Conversion Line (Tenkan Sen) is still above the Base Line (Kijun Sen) indicating strength for short term sideways momentum as the indicator is moving sideways at the moment.
The Ichinoku Cloud Lagging Span (Chikou Span) is indicating that momentum at the moment…… is downwards. Note that the Lagging Span (Chikou Span) is still above the price from 26 periods ago and is still in the Bullish Zone.
The Kumo (Cloud) is still green. Note that the Leading Span A (Senkou Span A) has started to move upwards but may swing back down if the price continues to drop on this 1 month timeframe. Note that the Leading Span A (Senko Span A) is still above the Leading Span B (Senkou Span B). Be on the lookout for if the Leading Span A (Senkou Span A) starts to move closer towards the Leading Span B (Senkou Span B).
Note that the price is still in the Bullish Zone above the Kumo (Cloud) on this 1 month timeframe.
Note that on this 1 month timeframe, the Price is under the Conversion Line (Tenkan Sen) but still has the Base Line (Kijun Sen) Leading Span A (Senkou Span A) and Leading Span B (Senkou Span B) as potential support levels.
Volume Profiles:
Note that the Price is still above its Volume Profile Visible Range Point of Control (VPVR POC) for this charts visible range.
Not that the Price is still under its Volume Profile Fixed Range Point of Control (VPFR POC) for the fixed range of 6x monthly candles i have selected.
Notes:
Please remember that the Conversion Line (Tenkan Sen) & Base Line (Kijun Sen) are not SMAs or EMAs they are X amount high/low period midpoints in whatever timeframe you are in, so they should not be used as SMA or EMAs.
Note that there are other aspects to the Ichimoku Cloud which make it a very complete system such as Price Theory, Wave Theory and Time Theory but I won’t go into those on this post.
Conversion Line (Tenkan Sen) = Highest High + Highest Low calculation over 9 Periods = Blue Line.
Base Line (Kijun Sen) = Highest High + Highest Low calculation over 26 Periods = Red Line.
Lagging Span (Chikou Span) = Today’s price displaced back 26 Periods = Green Line.
Leading Span A (Senkou Span A) = Tenkan Sen and Kijun Sen calculation value displaced ahead 26 Periods = Cloud Green Line.
Leading Span B (Senkou Span B) = Highest High + Highest Low over 52 Periods Value displaced ahead 26 Periods = Cloud Red Line.
Bullish Zone = Above the Cloud.
Equilibrium Zone = Inside the (Kumo) Cloud can be Green or Red.
Bearish Zone = Below the Cloud.
This was just a post to show how you can use the Ichimoku Kinko Hyo in multiple timeframes for support, resistance & momentum, so I hope this post has been helpful with your trading and understanding of the Ichimoku Cloud. So in which direction is the S&P500 Index going to go...... i leave up to you to make your own minds up ;-).
CELO Analysis #TheCryptoCityCELO Analysis
This is my idea. I have tried my best to bring the best possible outcome to this chart, Do not consider it FINANCIAL ADVICE.
So let's see how the market reacts in the coming days.
This chart is likely to help you in making better trade decisions
I am not a market maker I could be wrong.
Everything is on the chart.
Everything Depends On BTC Movement
Thank you
BTC Analysis #TheCryptoCity BTC Analysis
This is my idea. I have tried my best to bring the best possible outcome to this chart, Do not consider it FINANCIAL ADVICE.
So let's see how the market reacts in the coming days.
This chart is likely to help you in making better trade decisions
I am not a market maker I could be wrong.
Everything is on the chart.
Thank you
Most Popular Types Of Candles How to Read Candlestick charts?
Candlestick charts were originated in Japan over 100 years before the West had developed the bar charts and point-and-figure charts. In the 1700s, a Japanese man known as Homma discovered that as there was a link between price and the supply and demand of rice, the markets also were strongly influenced by the emotions of traders.
A daily candlestick charts shows the security’s open, high, low, and close price for the day. The candlestick’s wide or rectangle part is called the “real body” which shows the link between opening and closing prices.
This real body shows the price range between the open and close of that day’s trading.
When the real body is filled, black or red then it means that the close is lower than the open and is known as the bearish candle. It shows that the prices opened, the bears pushed the prices down and closed lower than the opening price.
If the real body is empty, white or green then it means that the close was higher than the open known as the bullish candle. It shows that the prices opened, the bulls pushed the prices up and closed higher than the opening price.
The thin vertical lines above and below the real body is knowns as the wicks or shadows which represents the high and low prices of the trading session.
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1- Hammer Candle
Hammer is a single candlestick pattern that is formed at the end of a downtrend and signals a bullish reversal.
The real body of this candle is small and is located at the top with a lower shadow which should be more than twice the real body. This candlestick chart pattern has no or little upper shadow.
The psychology behind this candle formation is that the prices opened, and sellers pushed down the prices.
Suddenly the buyers came into the market and pushed the prices up and closed the trading session more than the opening price.
This resulted in the formation of bullish pattern and signifies that buyers are back in the market and downtrend may end.
Traders can enter a long position if next day a bullish candle is formed and can place a stop-loss at the low of Hammer.
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2- Hanging Man
Hanging Man is a single candlestick pattern which is formed at the end of an uptrend and signals bearish reversal.
The real body of this candle is small and is located at the top with a lower shadow which should be more than the twice of the real body. This candlestick pattern has no or little upper shadow.
The psychology behind this candle formation is that the prices opened and seller pushed down the prices.
Suddenly the buyers came into the market and pushed the prices up but were unsuccessful in doing so as the prices closed below the opening price.
This resulted in the formation of bearish pattern and signifies that seller are back in the market and uptrend may end.
Traders can enter a short position if next day a bearish candle is formed and can place a stop-loss at the high of Hanging Man.
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3- Three White Soldiers
The Three White Soldiers is a multiple candlestick pattern that is formed after a downtrend indicating a bullish reversal.
These candlestick charts are made of three long bullish bodies which do not have long shadows and are open within the real body of the previous candle in the pattern.
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4- Inverted Hammer
An Inverted Hammer is formed at the end of the downtrend and gives a bullish reversal signal.
In this candlestick, the real body is located at the end and there is a long upper shadow. It is the inverse of the Hammer Candlestick pattern.
This pattern is formed when the opening and closing prices are near to each other and the upper shadow should be more than twice the real body.
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5- Piercing Pattern
Piercing pattern is a multiple candlestick chart pattern formed after a downtrend indicating a bullish reversal.
Two candles form it, the first candle being a bearish candle which indicates the continuation of the downtrend.
The second candle is a bullish candle which opens the gap down but closes more than 50% of the real body of the previous candle, which shows that the bulls are back in the market and a bullish reversal is going to take place.
Traders can enter a long position if the next day a bullish candle is formed and can place a stop-loss at the low of the second candle.
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6- White Marubozu
The White Marubozu is a single candlestick pattern that is formed after a downtrend indicating a bullish reversal.
This candlestick has a long bullish body with no upper or lower shadows which shows that the bulls are exerting buying pressure and the markets may turn bullish.
At the formation of this candle, the sellers should be caution and close their shorting position.
Don't Forget To Like And Follow To Next Part
The Characteristics of Corrective StructuresHi fellow traders, I would like to share with you all the characteristics of the most important structures when it comes to trading waves. When reading all the rules and guidelines of the Elliott Wave Principle it might be a little overwhelming and complicated for most traders. At least to me it was when I just started learning. For that reason I've tried to put it more in perspective by drawing all the patterns and making it more visual for everyone to understand. The notes are all included on the chart and I hope it helps you during your trading sessions.
If there are any questions please feel free to comment,
~ OGwavetrader
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New To Trading? Avoid These Mistakes!Starting out in trading is definitely an exciting experience but you must be very careful not to make these dangerous mistakes that most beginners make.
While there are many dangerous mistakes for forex newbies to make, I’ve highlighted the two that are subtle enough not to be noticed but can have a big influence on your trading career.
1. Undercapitalization
Insufficient initial capital is the first mistake by beginners, and it usually ends up killing them.
I’ve seen traders, including myself, blow their whole trading account during the first month or week.
Your trading capital is lost even before you have the time to properly learn to trade.
This is what usually happens to new traders:
They don’t have sufficient trading knowledge and experience.
They are not familiar with risk management principles.
They underestimate the risks involved in their setups, which leads to impulsive and often expensive execution.
Another habit I’ve seen among trading newbies is using tight stops on small lots and even smaller trading accounts.
Using small trading lots is not a death knell for newbies’ accounts but using small and tight stops might be.
By using short and tight stops, you increase your chances that the stops will be triggered more frequently and your total loss will consist of many small losses.
Your trading account should be as large as possible in order to correspond with market conditions and provide the necessary flexibility in making trade decisions. Position size matters, too!
Like any business, you have to make sure you are adequately funded. Don’t try to lower risk by only depositing a portion of your available trading capital.
Fund yourself right but use proper money and risk management!
2. Overtrading
Overtrading is a process of buying and selling Forex pairs, stocks, or other securities excessively. It involves trading all-day without stopping and eventually, making ineffective decisions that lead to financial ruin.
Considering the typical market activity, it’s easy to lose half or even all your trading capital with this. This problem is sometimes directly connected to boredom, the thrill of making money, or lack of education and guidance.
Your trading capital is used to earn money. You should treat each dollar like a newborn baby.
Your first and foremost responsibility is to protect it. If you lose it, you have less to help you earn money.
Have you ever made any of these mistakes? Please share your experience in the comments below. I’m sure we’d all be interested in possibly learning from each other.
What additional advice would you give to a newbie trader?
🧅NAS100 6/4/22I have decribed how the market move from my perspective .
before and after the newyork session begin.
unfortunately i can't publish 1m TF ,you guys can click the link on the chart to see it's in my private post for a better view.
Let's learn together
Good Luck Trader💯💯
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🧅Disclaimer :There are risks associated with investing in securities. Investing in stocks, bonds, exchange traded funds, mutual funds, and money market funds involve risk of loss. Loss of principal is possible. Some high risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including a greater volatility and political, economic and currency risks and differences in accounting methods. This is Not Financial Advice
🧅JUST AN OPINION OF THE ONION.🧅
🧅The power of 3 by ICT on NAS100The power of 3 by ICT on NAS100
1, Accumulating
2, Manipulating
3, Distributing
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Disclaimer :There are risks associated with investing in securities. Investing in stocks, bonds, exchange traded funds, mutual funds, and money market funds involve risk of loss. Loss of principal is possible. Some high risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including a greater volatility and political, economic and currency risks and differences in accounting methods. This is Not Financial Advice
🧅JUST AN OPINION OF THE ONION.🧅
Three pillars of trading success 📈💲It's time for my mid week educational post.
Today I want to talk about the three pillars needed by all traders for success in the markets.
This isn't just the forex market either this applies to trading all financial markets.
Be it forex, crypto or stocks, so lets get into the the three pillars of success.
PILLAR NUMER ONE- STRATEGY
You MUST have an edge before entering the markets.
When will you enter the market?
When will you close?
What % per trade will you risk?
What pairs will you trade?
What timeframes will you trade?
If you don't have any answers to the above you are entering the markets blind and it will end in tears.
In trading, edge is your ability to select trades that perform better than random.
You can think of edge as the process used to generate and execute entry and exit signals.
Do not enter the markets until you are working a strategy with a proven edge.
The stronger your edge, the more profitable you’ll be.
PILLAR NUMBER TWO- RISK MANAGEMENT
We can't avoid the white elephant in the room on average 80% of trader lose money or fail in the markets.
Some say its even more and you will become one of the stats if risk management isn't applied to your trading.
Some of the reasons losses like these exist in trading is down to the fact that aspiring traders don’t put any thought into their risk management tolerance.
We only ever see the upside when we start out and many never do anything to protect themselves from potential losses.
If you never made any money as a trader before or entered the markets before ask yourself the question below before starting out.
How much money am I comfortable losing?
Your first priority with trading is to stay in the game
So manage your risk per trade and total risk at anyone time.
Understand probability and ensure you are comfortable with your maximum exposure at any one time.
Understand the maximal draw down in your testing when finding your edge.
That way it will help you see what a potential losing run you could experience.
PILLAR NUMBER THREE- TRADING PSYCHOLOGY
We need good trading psychology to keep a balanced mind whilst trading, this stops your emotions leading the trade.
The trade outcome cannot be controlled and you MUST detah yourself from each trade outcome.
You will know when your trading emotions are nailed on when you do not 'FEEL ' anything when trading.
If you have 'emtions' with your trades or when trading simply reduce your risk further.
Two emotions that need particular attention are GREED and FEAR.
You need discipline in controlling these two emotions or you are going to end up making losses as a trader.
We all been there we make a few profits confidence kicks in and then greed before you know it your in whole world of pain.
We all be there at some point with fear to and not executing trades due to a fear being in our trading game say from a poor run of form.
Emotions will always be there we are emotional beings, but they will need controlling in order for you to be a successful trader.
Practice developing the emotional control needed to trade successfully.
FINAL THOUHGHTS
Trading requires 100% commitment most see it as a hobby to start with but this can be costly hobby if commitment to trading is lacking.
The sole reason most get into trading is to make money. One purpose of a business is to make money.
Treat trading as a business at the end of the day it's your personal money that's on the line.
Every trader needs to have a disciplined approach to the markets. Following these three steps will help you.
In order to be a successful trader and run a profitable account, it is essential that you have these three pillars in your trading.
Thanks for taking the time to read my idea.
Darren 👍