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Why do most traders end up losing moneyThis question is quite scary, but if you are a novice and see this question, congratulations, you are on the right path of trading. The most important lesson to learn before entering the financial markets is risk expectation. You can ask yourself, how much money do you want to make from trading? Is your goal asset appreciation, or a small fortune? If a trade loses money, will it affect your own life? Is your own character able to stop losses in time, or do you have no self-control? After asking these questions, we decide whether to enter the financial market. So why do the vast majority of traders lose money? 1. Because of the particularity of the financial market. I believe that many friends have heard of the 28 rule. For example, in the distribution of wealth in our society, 20% of people control 80% of social wealth; 20% of people will persist in encountering difficulties, and 80% of people will give up when encountering difficulties. The rule of 28 is ubiquitous in life, and it also determines what kind of people will succeed and what kind of people will fail. As for the financial market, it is crueler than real life, because there are no rules in this market, only human nature, so the financial market even surpasses the rule of 28, and less than 10% of people may make profits. In the face of money, most people want to make a big fortune with a small amount, and want to turn around by trading, so those who have stable personalities, strong self-control, low income expectations, and money in their hands are silently harvesting these people who are eager for quick success. Some people may say that the world is inherently unfair, and those who hold funds can only survive because of the capital. Actually no. We Xiaosan hold small funds, and we can achieve low return expectations, or we can do it slowly, but how many people are just anxious to make money? Just want to make a big difference with a small one? Just don’t regard money as money, and think it’s a big deal to take a gamble, and if it’s gone, it’s gone? So it has nothing to do with the amount of capital, but has something to do with people. In financial markets, human nature is the rule. 2. Too many people are dominated by human nature. As I said before, there are no rules in the financial market, and human nature is the rule. Trading is a very anti-human thing. Human nature is greedy for comfort, averse to risk, afraid of losing, feeling that one's level is higher than others, hating giving and learning, impatient, etc., which will be infinitely magnified in trading. There is a saying in the trading industry that trading can be profitable, mentality accounts for 70%, and technology accounts for 30%. In actual combat, it seems that it is not difficult for traders to see the market correctly, but it is very difficult to complete this wave of market and make profits. Why? I give two examples. For example, the problem of stop loss in trading. Seeking advantages and avoiding disadvantages is a characteristic of human nature, unwillingness to lose, unwilling to accept losses, this is human self-protection awareness. Stopping losses in the wrong direction means losing our real money, who can bear it? So in actual combat, many people rationally know that the direction is wrong, but they just don't stop losses, and even increase their positions against the trend, floating orders, allowing the stop loss to become bigger and bigger, and finally lead to serious losses. Another example is the profitable position in the transaction. The market trend always fluctuates upwards, or fluctuates downwards, and profit taking in positions is often encountered. Once profits are withdrawn, we will have a sense of insecurity in our hearts, worrying about the reversal of the market and losing profits. This insecurity is also due to human nature. Even if we rationally know that the profit target has not yet been reached, we should continue to hold positions, but the little emotion of longing for peace of mind has been tormenting us, and in the end we couldn't help but close the position, and made a lot of less money. We comfort ourselves that it is all right, at least there is no loss. But in fact, less earning = loss, because the amount you lose next time will be greater than the money you earn. In the long run, your overall loss will be. There are many such examples, such as betting on the market, heavy trading, unwillingness to admit defeat, stop loss leading to liquidation, etc., are all caused by the aversion to loss in human nature and the fear of failure. In fact, if we look at the trading market 100 years ago, it is basically the same as the current human nature problem. The weakness of human nature is very strong, and it is also the main reason why traders lose money. So at the beginning, I asked everyone to ask themselves those questions, just to let everyone understand their own personality, their current situation, and their human nature, so as to help you win certain opportunities in the trading market. Trading is like a free game. It seems that the threshold is low and no money is required, but in fact some hidden costs are contained in it, and the human nature is clearly played for you. Therefore, before making a transaction, you must have an existing risk expectation, and then think about making money.
FOREXCOM:XAUUSDEducation
by CheetahAttack
Understanding Anchoring Bias in Trading Anchoring is a heuristic in behavioral finance that describes the subconscious use of irrelevant information, such as the purchase price of a security, as a fixed reference point (or anchor) for making subsequent decisions about that security. Thus, people are more likely to estimate the value of the same item higher if the suggested sticker price is $100 than if it is $50. Anchoring is a cognitive bias in which the use of an arbitrary benchmark such as a purchase price or sticker price carries a disproportionately high weight in one's decision-making process. The concept is part of the field of behavioral finance, which studies how emotions and other extraneous factors influence economic choices. An anchoring bias can cause a financial market participant, such as a financial analyst or investor, to make an incorrect financial decision, such as buying an overvalued investment or selling an undervalued investment. Anchoring bias can be present anywhere in the financial decision-making process, from key forecast inputs, such as sales volumes and commodity prices, to final output like cash flow and security prices. Historical values, such as acquisition prices or high-water marks, are common anchors. This holds for values necessary to accomplish a certain objective, such as achieving a target return or generating a particular amount of net proceeds. These values are unrelated to market pricing and cause market participants to reject rational decisions. Beware of your mental fallacies. They are your main enemy in trading. Thanks for reading bro, you are the best☺️ Like, comment and subscribe to boost your trading! Dear followers, let me know, what topic interests you for new educational posts?
BITSTAMP:BTCUSDEducation
by SignalProvider
6
Price Action: How to Trade ReversalsTrading on key levels is one of the basic principles of Price Action trading in the financial markets. There are two main ways to trade on levels: on the breakout and on the reversal. How to distinguish a correct signal to enter the market from a false one, how to set stop-losses and take-profits and what other nuances should be considered when trading in this style? 🔷 Specifics of trading from levels Key price levels are present in any financial market, including Forex. Often, these horizontal lines act as either support or resistance to further price movement, which is why traders are so interested in them. These key lines are formed due to the large accumulation of buy and sell orders. When the price reaches such a congestion, the current strength of the trend, as a rule, is not enough to close all these orders and move the price further. Therefore, if the movement does not get support, the price will turn in the opposite direction. If there are new volumes that are able to break through a great accumulation of orders, it is likely to happen that the trend strength is enough for the further movement, i.e. a strong breakout level will occur. Of course, events do not always develop only according to these scenarios, but these are the two most likely variants. There are big players at the market whose orders influence the price due to big volumes. Because of this, experienced traders only need to correctly identify such levels and signals that the price is most likely to reverse. The classic level is an area based on the opening or closing candlestick prices (not the high/low), which the chart has already touched before. That is, if the chart, having risen to a certain level, rolled back and then approached that level again, the price value at the extreme point will be that level. 🔷 Entering the market The main condition for entering the trade at the reversal from the level, it is necessary to make sure that it is exactly the reversal. If the price is just approaching the key level, it is too early to open a trade. The trader must form a reversal pattern of Price Action in order to be sure that the position opening is correct. It may be the following patterns: 1. A Pinbar (a candlestick with a long shadow, level breakout and a small body); 2. Engulfing (the next candlestick is directed in the opposite direction, its body and shadows are bigger than those of the previous candlestick); 3. Tweezer top/bottom pattern (alternation of bullish and bearish candlesticks with the same lows and highs); Once the pattern is formed, a trade can be opened. For example, the screenshot above shows a pin bar with a large upper shadow breaking through the resistance level, then rolls back down and the candle closes in bearish status. At the opening of the next candle you can enter the sell trade. 🔷 Setting Stop Losses and Take Profits Stop Loss should be set in such a way that a random movement against the direction of the trade, such as a level retest with a false breakout, does not knock the trader out of the market. It is impossible to set a specific value (e.g. 10 pips) for this trading style, the stop should be set based on the chart and "tails" of the candles in the visible proximity. As for take profit, there are no strict rules for its setting. You can use the standard technique, multiplying the value of the stop-loss by 3 or 4 and set a TP on the resulting distance. This is correct from the money management point of view. However, in each situation there may be conditions for greater profits than the standard stop-loss. For example, you can focus on the next key level in the direction of the trade. However, unlike a stop, a TP should be set so that the price is guaranteed to hit it when approaching the key level. 🔷 Important points 1. It is worth paying attention to the strength of the level and the likelihood that it will break or hold. There is a common misconception that the more price reversals from a level, the more likely it is that the level will remain intact. In fact, if the price keeps testing a certain level over and over again without going into the opposite trend, it means that it is likely to be broken. In practice this means that it is better to skip the third and the next attempts of a level bounce, trading on the second one only. 2. One should not draw a distinction between a classic reversal from a level and a retest of the level after it has been broken, when, for example, support becomes resistance. Such a retest is an even stronger signal than a simple reversal. The probability of a successful trade is even higher if we obtain a clear signal for reversal after an unsuccessful attempt to break through the level in the opposite direction. 3. The probability of a reversal or breakout of the level can be assessed based upon the movement towards the key level. If the previous candlesticks were small and differently directed, but the price has still reached the level, a breakout is quite probable. If the trend was strong and confident and the level was reached in just a few candles, but was not broken through, most likely, it won't be broken through. This phenomenon can be explained by the fact that market makers are trying to mislead small traders, playing on visual triggers. Seeing a strong movement, the trader unconsciously waits for a breakout and as a result suffers losses giving his money to the market maker. According to this logic, the conclusion can be made that if a big candle has reached a level, stopped in it, and closed without breaking through it, a breakout will probably never happen. But if a powerful candle has broken through the level, passed some more points (or tens of points), and closed on the other side, the breakout can be considered to have taken place. 4. When opening a trade, attention should be paid to the extrems of the nearest candlesticks. If the maximums (when testing the resistance) are approximately equal, or differ by 1-2 points, this supports the signal for the reversal and the pullback. The same is true for candlestick minimums when testing support. 🔵 Conclusion All other things being equal, a reversal of the level is more probable than its breakthrough. Such statistics gives a trader the reason to count on more signals and following the strategy rules will ensure profitable trading. However, one should keep in mind that trading from levels is a tactic that requires a trader's experience to be able to make decisions according to the situation. Despite the presence of rules, there is no clear algorithm that would regulate the actions in any situation. And due to this, a trader who uses the analysis of levels in his trading system, can count on the success of his trade. Most trading systems, allowing to open trades on an automatic basis, very quickly lose their validity, as well as trading robots based on these algorithms. The market is constantly changing, and only the ability to adjust to these changes and make decisions depending on the situation provides professional traders with a stable and high income.
Education
by DeGRAM
42
🍀Trading VS Investing🍀 🦥When it comes to making money in the finance world, there are two main paths to choose from: trading and investing. Both of these approaches involve buying and selling financial products in order to generate a profit, but there are some important differences that are worth considering if you're trying to decide which strategy is right for you. 🦧Let's start with trading. Traders are, by definition, people who make frequent short-term transactions in the financial markets. Their goal is to take advantage of fluctuations in market prices in order to make a quick profit. This means that traders are constantly monitoring charts, news sources, and other indicators in order to identify opportunities to buy and sell within a matter of days or even hours. 🐙On the other hand, investors are typically focused on the long-term potential of an asset. They're interested in buying assets that they believe will appreciate in value over a longer period of time, such as several years or even decades. While investors do need to keep an eye on the markets to ensure that they're not buying into overvalued assets, they're generally less concerned with short-term volatility than traders are. 🦋So which approach is right for you? Well, that depends on a variety of factors, including your risk tolerance, your time horizon, and your financial goals. If you're the type of person who loves the thrill of the chase and doesn't mind taking on a bit of risk, then trading might be a good fit for you. On the other hand, if you're more interested in building long-term wealth and aren't too worried about short-term fluctuations, then you might be better off with an investor mindset. 🐝Of course, it's also important to keep in mind that there's no one-size-fits-all solution when it comes to trading versus investing. Some people might find that a hybrid approach, where they mix elements of both strategies, works best for them. Others might prefer to focus on developing a mastery in one area or the other. 🐞Ultimately, the most important thing is to do your research, evaluate your own financial situation, and be honest with yourself about what you're hoping to achieve. With the right approach and a little bit of luck, either trading or investing can be a lucrative way to grow your wealth over time. 🌺Hope u like my article. Please let me know what you think💋 Love, Anabel❤️ Please, support my work with like and comment! Love you, my dear followers!👩‍💻🌸
Education
by AnabelSignals
10
Trade talk with A.IQ1. Your Advise to the experienced traders. As an AI language model, I cannot provide personalized advice to specific individuals. However, here are some general tips that experienced traders may find useful: 1.1 Stick to your trading plan: Experienced traders know the importance of having a solid trading plan and sticking to it. Your trading plan should include your risk management strategy, entry and exit points, and profit targets. Avoid deviating from your plan based on emotions or market noise. 1.2 Continue learning: The markets are constantly evolving, so it's important for experienced traders to continue learning and adapting to changes. Stay updated with market news and events, learn new trading strategies, and be open to new ideas and perspectives. 1.3 Practice good risk management: Experienced traders understand the importance of managing risk. Make sure you understand risk management principles and use tools like stop-loss orders and position sizing to limit your risk. 1.4 Stay disciplined: Trading can be a stressful and emotional experience, but experienced traders know the importance of staying disciplined and keeping their emotions in check. Stick to your trading plan, avoid impulsive decisions, and don't let fear or greed drive your trading decisions. 1.5 Review and analyze your trades: Successful traders are always looking for ways to improve their performance. Take the time to review and analyze your trades, identify areas for improvement, and make adjustments to your trading plan as necessary. Q2. How to trade Head and shoulder patterns? 2.1 The head and shoulders pattern is a technical analysis pattern that is commonly used by traders to identify potential trend reversals. Here are the basic steps for trading a head and shoulders pattern: 2.2 Identify the pattern: The head and shoulders pattern consists of three peaks, with the middle peak (the "head") being higher than the other two (the "shoulders"). The neckline is a line that connects the lows between the shoulders. 2.3 Wait for confirmation: Once you have identified the pattern, wait for a confirmed breakout below the neckline. This confirms that the pattern is valid and increases the probability of a trend reversal. 2.4 Set a stop-loss: Place a stop-loss order above the right shoulder of the pattern to limit your risk if the market moves against you. 2.5 Set a profit target: Calculate the distance between the head and the neckline, and use this to set a profit target for your trade. 2.6 Monitor the trade: Monitor the trade closely and adjust your stop-loss and profit target as necessary. Q3. Do people get rich day trading? While it is true that some traders have become wealthy from trading, it is important to understand that trading is not a guaranteed path to riches. Trading involves risk, and losses are a natural part of the process. In fact, the majority of traders lose money, and only a small percentage are consistently profitable over the long term. Furthermore, becoming a successful trader requires a significant amount of time, effort, and dedication. It's not something that can be achieved overnight, and there are no shortcuts or easy solutions. In addition, it's important to have realistic expectations about trading. While it is possible to make money from trading, it is not a get-rich-quick scheme. Successful traders typically have a long-term perspective, and they focus on building consistent profits over time. In summary, while trading can potentially lead to wealth, it is not a guaranteed path to riches. Trading involves risk, requires a significant amount of time and effort, and success is not guaranteed. As with any other profession, success in trading requires hard work, dedication, and a commitment to ongoing learning and improvement. Q.4 Can you help someone to become a profitable trader? As an AI language model, I can provide educational information and guidance to help someone become a profitable trader. However, becoming a profitable trader requires more than just information and guidance - it requires a combination of knowledge, experience, discipline, and a commitment to ongoing learning and improvement. Some of the ways in which I can help someone become a profitable trader include: 4.1 Providing educational resources on trading fundamentals, technical analysis, risk management, and other key trading concepts. 4.2Assisting with the development of a personalized trading plan based on an individual's unique goals, risk tolerance, and trading style. 4.3 Offering insights into market conditions and potential trading opportunities across a range of asset classes. 4.4 Providing support and guidance on managing emotions and maintaining discipline in the face of market volatility and uncertainty. 4.5 Offering feedback and analysis on trading strategies and performance, with a focus on identifying areas for improvement and optimization. 4.6 It's important to note that becoming a profitable trader is a long-term process that requires patience, discipline, and a willingness to learn from both successes and failures. With the right guidance and approach, however, it is possible to achieve consistent profitability and success in the markets. Q5. Do prayers help in trading? As an AI language model, I do not have a religious belief, but I can provide a general response to your question. Prayer is a personal spiritual practice that may bring comfort and guidance to an individual. However, it is not a guaranteed method for achieving success in trading or any other activity. Trading success depends on a combination of factors, including knowledge, experience, discipline, and a sound trading strategy. It's important to approach trading with a rational and analytical mindset, rather than relying on external factors such as prayer or luck. While prayer may provide emotional support and help manage stress, it is not a substitute for a well-developed trading plan and disciplined approach to the markets. In summary, while prayer may have personal and emotional benefits, it is not a reliable or effective means for achieving success in trading. A disciplined and rational approach to trading, based on sound principles and a well-developed trading plan, is key to long-term success. Q6. How to trade triangle pattern? The triangle pattern is a common chart pattern that occurs when the price of an asset consolidates between two converging trendlines. Trading the triangle pattern involves identifying the breakout direction and taking a position in that direction. Here are some general steps to trade the triangle pattern: 6.1 Identify the triangle pattern: Look for a period of consolidation where the price moves between two converging trendlines, forming a triangle shape on the chart. 6.2 Determine the direction of the breakout: As the price nears the apex of the triangle, it will typically break out in one direction or the other. Look for a breakout that is accompanied by high volume and follow-through price action. 6.3 Enter a position: Once you have determined the direction of the breakout, enter a position in that direction. This can be done through buying or selling, depending on whether the breakout is to the upside or downside. 6.4 Set stop-loss and take-profit levels: It's important to manage your risk by setting stop-loss levels to limit potential losses and take-profit levels to lock in profits. These levels should be based on your risk tolerance and trading strategy. 6.5 Monitor the trade: Keep an eye on the price action after the breakout to ensure that it continues to move in your favor. If the price fails to continue in the breakout direction, it may be wise to exit the trade with a small loss. 6.6 Consider other factors: It's important to consider other factors, such as market conditions and economic events, that may affect the price of the asset. This can help you make more informed trading decisions. In summary, trading the triangle pattern involves identifying the breakout direction and taking a position in that direction while managing risk through stop-loss and take-profit levels. However, it's important to consider other factors that may affect the price of the asset and to monitor the trade closely to ensure that it continues to move in your favor.
Education
by Aadil1000x
6 ways to stop loss in gold Take profit and stop loss are one of the most important links in the entire trading system. After studying this article, you will be able to thoroughly understand the stop loss method. You can bookmark it before reading it. If you feel that you have gained something, you can like it, thank you. 1. 6 stop loss methods Stop loss means that when our order loss reaches a predetermined value, we need to close the position in time to avoid greater losses. In a complete trading system, stop loss Stop loss is divided into static stop loss and dynamic stop loss. Static stop loss means that after the order enters the market, the stop loss is set at a fixed stop loss space, or the stop loss amount remains unchanged. Once the market trend is unfavorable, the stop loss will be closed when the set position is reached. For example, after an order enters the market, set a stop loss of 100 points, and close the position when 100 points arrive. Dynamic stop loss means that the standard of stop loss in the trading system is dynamic. When we hold a position, the market is constantly fluctuating, and there is no fixed point for when to stop the loss. We must observe the dynamic market changes until there is a trend that meets the stop loss standard, and then stop the order. For example, when holding long orders, the stop loss standard is that the market forms a short reverse break position structure, and we will stop the loss manually at this time. Method 1: Fixed stop loss space, or fixed stop loss amount. This is a relatively simple static stop loss method. After the order enters the market, set a fixed stop loss space, for example, after an intraday trading order enters the market, set a fixed 30-point stop loss. Or set a fixed amount stop loss, for example, if the order loss reaches 1% of the principal, the stop loss will be stopped. There are also traders in the stock market who stop loss at a fixed percentage of market retracement, for example, stop loss if the stock falls by 5%. In this way of stop loss, the space for stop loss should be determined according to the specific volatility of different varieties.is absolutely necessary, and a trading strategy without stop loss will eventually end in loss. Method 2: Stop loss at high and low points. High and low point stop loss is the most common stop loss technical standard, and it is also a static stop loss method. The market always operates in the form of waves, so there will be continuous rising or falling callback highs and lows. These highs and lows are also called inflection points. In actual combat, the starting point of the wave or the inflection point of the callback is used as the stop loss point. After the bottom of the market breaks, open a position. There are two ways to use stop loss at high and low points. One is to place it at the inflection point, and the other is to place it at the starting point of the wave. The inflection point stop loss, the stop loss space is small, the profit and loss ratio is good, but the fault tolerance rate is low, and it is more aggressive. Stop loss at the starting point of the market, the space for stop loss is large, and the profit-loss ratio is worse, but the fault tolerance rate is high and more conservative. This stop loss method is also relatively flexible, as the volatility changes, the stop loss space will also be adjusted. Method 3: Combine technical stop loss. Stop loss combined with technical positions refers to the combination of key positions of technical indicators in actual combat, and stop loss when the market breaks through these technical positions. For example, important support and pressure levels, or technical moving average levels, etc. Method 4: Stop loss in trend reversal pattern. This is a dynamic stop loss method. After the order enters the market, the market goes out of a reverse structure or form. At this time, it can be understood that the trend has reversed and the order is stopped. In actual combat, you can combine your most commonly used criteria for confirming reversals. You can use the crossing of moving averages, or the breakout of trend lines and channel lines, etc., as long as the standards are consistent. Method 5: Stop losses in batches. In an order, set multiple stop loss standards, and stop losses in batches in proportion to different stop loss points. This is a compromise stop loss method. Set different stop loss points through different stop loss standards to disperse the risk of stop loss. In actual combat, it is often encountered that after the order stop loss, the market reverses and goes out of the original trend. At this time, because the order has stopped loss, it is very disadvantageous. The operation of batch stop loss can keep a part of the position when encountering this situation, and can continue to make profits after the market goes out of the direction again. Method 6: Moving stop loss. Trailing stop loss means that after the order enters the market, the market develops in a favorable direction. After leaving the entry point and gradually generating profits, the stop loss is adjusted from the original stop loss point to a more favorable direction. The market gradually develops and the stop loss Also adjust gradually. Moving stop loss is a bit like the left and right feet when climbing stairs. When your right foot goes up the steps, your left foot will follow. Every time the profit increases to a certain extent, the stop loss will follow. The first purpose of trailing stop loss is to preserve capital, so most of the time the first step of trailing stop loss is to move the stop loss to the cost price. In this way, even if the worst result is encountered, the order will be out of the market without loss. After setting the trailing stop loss, the order will no longer lose money, and even the profit has been locked. At this time, the psychological pressure of holding positions is very small, which is conducive to the execution of transactions. These 6 stop loss methods, you can choose the appropriate method according to your own trading strategy OANDA:XAUUSD OANDA:XAUUSD COMEX:GC1! TVC:USOIL BINANCE:BTCUSDT.P COINBASE:BTCUSD
TVC:GOLDEducation
by CheetahAttack
🌀Golden Cross And Death Cross Patterns Explained🌀 💱Today, we're talking about the exciting world of technical analysis, specifically the golden cross and death cross patterns. 💱So, what exactly are these patterns? Well, let me break it down for you. The golden cross pattern is a bullish signal in which a shorter-term moving average rises above a longer-term moving average. On the other hand, the death cross is a bearish signal in which a shorter-term moving average falls below a longer-term moving average. Simply put, the golden cross is a sign that the stock is on an upward trend, while the death cross indicates a downward trend. 💱Now, I can hear some of you thinking, "Why are we talking about crosses? Shouldn't we be discussing actual trends and data?" And I get it, the terminology can be a bit confusing. But the reason these patterns are so important is that they can give you an early indication of an approaching trend. 💱For example, let's say you're a savvy investor on the hunt for the next big thing. You spot a stock that's been on the decline for months, but suddenly, the shorter-term moving average crosses above the longer-term moving average, creating a golden cross. This could be a good sign that the stock is about to turn around and start heading upwards. 💱On the flip side, if you're already invested in a stock that's been doing well, but suddenly a death cross appears, it could be a sign to cut your losses and sell before the stock drops further. 💱Now, don't get me wrong, these patterns aren't foolproof. There are plenty of instances where a golden cross or death cross doesn't accurately predict a trend. But it's still a valuable tool to have in your toolbox when it comes to analyzing the markets. 💱So, whether you're a seasoned investor or just dipping your toes into the world of stocks, keep an eye out for those golden and death crosses. They may just give you the edge you need to make informed trading decisions. Happy investing! I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
9
😎MYTHS ABOUT TRADING BUSTED😎 ⚛️The world of trading is full of myths and misconceptions. We often hear stories of overnight successes and devastating losses. It can be difficult to separate truth from fiction when it comes to trading. In this article, we will debunk some of the most common trading myths and provide the facts to help you make better investment decisions. ❌Myth: Trading is Gambling ✅Fact: Trading involves analyzing market trends, researching companies and industries, and making informed decisions based on data. Successful traders do not simply rely on luck; they systematically evaluate risk and reward before making trades. ❌Myth: You Need to be a Financial Expert to Trade ✅Fact: While a basic understanding of the market is important, you do not need a degree in finance to be a successful trader. There are numerous resources available to help beginners learn the basics of trading, including online courses, tutorials, and mentorship programs. ❌Myth: Day Trading is the Best Way to Make Money Quickly ✅Fact: Day trading involves buying and selling assets within a single trading day in order to profit on short-term price movements. While it can be lucrative, it is also risky and requires significant time and effort. Many successful traders prefer to take a long-term approach, focusing on investments that will appreciate over time. ❌Myth: You Need a Lot of Money to Start Trading ✅Fact: While having a larger investment portfolio can certainly provide more opportunities for profit, you do not need a huge amount of money to start trading. Many online brokers offer low minimum account balances, making it easier for beginners to start investing. ❌Myth: Trading is Only for the Wealthy ✅Fact: Trading is accessible to anyone with an internet connection and a willingness to learn. While high net worth individuals may have more resources to invest, anyone can start trading with a little bit of research and a willingness to take calculated risks. ❌Myth: Technical Analysis is the Only Way to Predict Market Trends ✅Fact: Technical analysis involves analyzing charts and data to predict future market trends. While it can be a valuable tool, it is not the only way to make informed trading decisions. Fundamental analysis, which involves evaluating a company's financial health and growth potential, is equally important. ❌Myth: Trading is a Solo Endeavor ✅Fact: Trading can be a solitary activity, but it is important to take advantage of opportunities to learn from and collaborate with other traders. Online forums like Tradingview, mentorship programs, and networking events can all provide valuable insights and support. ✳️In conclusion, there are many myths surrounding trading that can prevent individuals from taking advantage of its potential benefits. By separating fact from fiction, traders can make informed decisions and increase their chances of success. Whether you are a seasoned investor or a beginner, knowledge and education are essential to achieving your financial goals. Thanks for reading bro, you are the best☺️ Like, comment and subscribe to boost your trading! Dear followers, let me know, what topic interests you for new educational posts?
BITSTAMP:BTCUSDEducation
by SignalProvider
8
Trade so easy with FAIR VALUE GAPS!Hello trader, you look great today! I have a useful trading tool to offer you. If you are experiencing positive feelings towards me, please consider following me and helping to increase my exposure. FAIR VOLUE GAP First, go to tradingview and search up Fair Volue Gap . Now, you can see your chart dashed lines, to see levels based on these pages. FVG and to make this set up a lot better though we want to clean this up and only show significant Fair Volue Gaps by going into the settings and selecting the auto threshold. What this does is allows the indicator to detect the average best size of each Fair Value Gap to filter out insignificant ones.
OANDA:XAUUSDEducation
by Sphyn-Trader
5
How Much Time Do You Need For Trading?Hello trader! How much time do you usually need to spend studying charts and watching the currency markets? I'm sure many of you at the beginning of your trading career literally stuck to your computer screens for days on end, obsessing over charts, drinking large amounts of coffee and constantly placing orders throughout the day, but is this the only, realistic approach we have? In this post, I will show you an alternative way to track your charts, using various methods and tools to develop a much more nimble, calm and productive approach to trading. I will show you that you shouldn't be stuck at your computer screens all day, while still using your time rationally. ✳️ Timeframes and Currency Pairs The timeframes that you use when trading determine the frequency with which you check the charts. So, it goes without saying that if you trade on a 5-minute chart, you have to check the charts much more often than if you trade on a daily timeframe. Your workload is also affected by the number of currency pairs you trade, i.e. the more currency pairs you will use to trade, the more charts you have to analyze. This does not mean that you cannot trade on 20 currency pairs or more, it simply means that you have to have a ready-made system in which you can monitor each currency pair effectively. Say, when trading on M15 it is difficult to keep track of 20 currency pairs, but when you work on D1 it is quite convenient. ✳️ Analysis Over time, you will develop your own expertise and confidence in being able to analyze markets consistently and quickly. Knowing where and when to "hunt" for a trade and when to properly use lower timeframes will help you save a tremendous amount of time for looking at charts. Having a clear idea of where you will look for price signals to open positions will allow you to plan ahead and choose your desired positions, and will prevent you from having to constantly monitor the markets. On the other hand, traders who monitor the markets carefully and for long uninterrupted periods of time can fall prey to opening positions that they probably tend to find unreasonable, this may be due to the fact that traders feel pressure: because they HAVE to open a position to justify their time sitting behind the monitor. So, you need to know where and when to look for trading signals. For example, if you trade the cross of the 200th Average, of course, if the price is very far from this average, you understand that the next ten candles do not make sense to look into the terminal. And you do not waste your time and attention. ✳️ Price Alerts and Pending Orders Price alerts play a great role in saving the time needed for analyzing charts. The way they work is very simple: as soon as you have analysed every currency pair you wish to trade, you can set up an alert signal at a price level you think is good for opening a position in that particular pair. When the price reaches the desired level, a price alert is triggered and you are notified by email or text, after which you can check the pair for any price movement signals. Trading signals also play a role in position management: you can set alerts for stop loss level, entry level, profit taking, which means that you can leave your position and make changes to it only when the price reaches your targets. ✳️ Trading on the go Before the rise of smartphones and tablets, trading on the go was not an option, however, modern technology and communication tools make trading on the go very easy. The ability to open and close positions or reduce a stop loss wherever you are generally meaning that you don't have to stick to your computer screens to trade. As a result, this has led to traders being able to trade almost anywhere they like from now on. Getting all the latest information and staying up to date with current market movements, thanks to advances in technology and global access to the Internet, has freed traders from their screens and given them a degree of freedom that we all long for. Due to the fact that each broker offers its own application for trading, which you can download to your phone or tablet, trading has now become a fairly universal and accessible business, which can be engaged anywhere. ✳️ Have a trading routine If you treat trading like a real business, you'll find that an important and necessary issue is having a set routine and appropriate working hours, as well as understanding when to work and when to rest. It is very easy to get caught up in the markets and feel as if you have to monitor the charts 24/7 so that you don't miss a single trade. This is a dangerous habit to develop because getting too involved in the markets will burn you out and exhaust you very easily. If you find that the markets are starting to dictate your lifestyle (a classic example is when you stay up all night just to catch a good time to enter the market), then you've gotten too deep into trading. You should know when to turn off the trade, be able to turn off the charts, and get a good night's sleep. Be reasonable, set your own working hours and stick to them, even if trading is your main occupation, set aside a certain amount of time every day during which you would have worked in the markets and try to stick to it consistently. ✳️ Take a day off Once a week you should take a day off from trading. No reading on forums, no studying strategies, no browsing charts, no testing Expert Advisors. Nothing related to trading at all. The best thing would be to go to the nature, go for a walk in a strange place, read a fiction book, visit the theater, spend time with family or friends. Such "days of unloading" help our brain to rest, process the accumulated information and experience to work more productively in the future. ✳️ Do you spend too much time analyzing charts? The purpose of this post is to show you how flexible trading can be and that you don't have to be glued to your computer monitor working 24/7 to get results. Even if trading is your main occupation, it can be scheduled in parallel with your other activities. It shouldn't look like an all-or-nothing proposition, because the forex market allows us to choose when to trade, so you can appropriately structure your trading hours to suit your own needs. You can't get around the fact that you need to spend a tremendous amount of time constantly learning the aspects of forex trading in order to execute effective trading, but once you have accumulated the necessary skills and confidence in your own skills, you will actually need a much smaller amount of time needed to directly trade. Trading may even seem like something boring to you, but that's only because you just understand and accept what the markets really are, realizing that it's not a game, but just a business. The main goal that attract people to trading is the promise of financial freedom and an attractive lifestyle, but trading can have the opposite effect and can sometimes become an obsession that completely drains the trader. You must know when to work and when to play. Setting in place a set order/trading clock brings into your daily life the routines every trader needs to maintain a healthy and productive workload. Time is a very valuable commodity, in our modern lives the day is already filled to the brim with so many other commitments and activities, and managing it wisely is key to success. So, if you find yourself spending too much time on charts, there are things you can do to reduce your trading load, it will give you the freedom to step away from your screens. These include the following: 1. Using price alerts and pending orders, which are probably the biggest time-saving factor. 2. Focusing on higher timeframes while carefully using lower timeframes as well. 3. Having a fixed schedule of trading hours which you should stick to. 4. Using trading applications that allow you to stay connected when you are away from your computer. Applying these recommendations to trading will allow you to stay in contact with the markets without physically sitting in front of charts for days on end. What is the point of looking at charts if currency pair prices are not in a zone where you are not waiting for a signal? Why waste your time watching the price movements, if you are not going to trade any time soon anyway? Instead, let price do its thing, and on occasion enter the market in the area where you are waiting for a signal, that would be exactly the time when you should switch to the charts and hunt for pips. Remember, you are the main figure (not the markets!) and you are the one who keeps the trading procedure consistent and tight, be patient.
Education
by DeGRAM
6
Learn the Long History of Forex! 💶The history of the foreign exchange market (forex) dates back centuries, with evidence of currency exchange dating back to ancient civilizations. Here is a brief overview of the ancient history of forex: • Ancient Mesopotamia: The Mesopotamians, who lived in present-day Iraq, are believed to have been the first civilization to use a form of currency. They used clay tablets to record transactions of goods and services, and it is believed that they also engaged in foreign exchange transactions. • Ancient Egypt: The ancient Egyptians used a bartering system to trade goods and services, but they also used a form of currency in the form of metal rings. Foreign exchange transactions likely occurred between ancient Egyptian traders and merchants from other civilizations. • Ancient China: The Chinese began using metal coins as a form of currency as early as the 7th century BC. They also engaged in foreign exchange transactions with merchants from other civilizations, such as the Greeks and Romans. • Ancient Greece: The ancient Greeks used a bartering system to trade goods and services, but they also minted coins made of precious metals. Foreign exchange transactions likely occurred between ancient Greek traders and merchants from other civilizations. • Ancient Rome: The ancient Romans minted coins made of precious metals, which were used as a form of currency. They also engaged in foreign exchange transactions with merchants from other civilizations. 💴It's worth noting that these ancient foreign exchange transactions were likely not as frequent and organized as they are today, and were conducted primarily through bartering or physical money exchange. The invention of paper money and the rise of banks in the Middle Ages led to the development of more organized foreign exchange markets. 💵And Here is the overview of modern history of forex: • The modern foreign exchange market began to take shape in the 1970s, after the collapse of the Bretton Woods system, which had pegged the value of currencies to the price of gold. • Prior to the 1970s, currency trading was primarily conducted by governments and large institutions, but with the emergence of floating exchange rates, the market became more accessible to smaller investors and traders. • In the 1980s, electronic trading began to take hold, with the introduction of new technologies such as the Reuters Dealing 2000-2 system, which allowed traders to conduct transactions electronically. This led to a significant increase in the size and liquidity of the forex market. • The 1990s saw the continued growth of the forex market, with the introduction of new technologies such as the internet, which made it possible for individuals to trade forex online. • In the 2000s, the forex market saw a surge in popularity as a growing number of retail traders and investors entered the market. The introduction of online trading platforms and the ability to trade on margin further increased the market's accessibility. 💰Today, the forex market is the largest and most liquid financial market in the world, with a daily turnover of over $6 trillion. It's accessible to a wide range of participants, from large banks and institutional investors to small retail traders. The forex market operates 24 hours a day, five days a week, allowing traders to participate at any time. ❤️Please, support our work with like & comment!❤️ What do you want to learn in the next post?
TVC:GOLDEducation
by UnitedSignals
6
About Swing Trading - Experience Sharing Sharing my experience and thoughts on swing trading :> First of all, many people have misunderstandings about swing trading. It is not an investment but rather a speculative activity that seeks to capture opportunities and time the market. Generally, swing trades last from a few days to a few months, and trend-following strategies are the most common. . . . Here are some principles to consider for swing trading: 1. Leveraged trading is only suitable for those who can beat the market without leverage. Otherwise, it's just amplifying your losses. Beginners should start by trying without leverage. 2. Using leverage in swing trading "definitely increases the risk of bankruptcy," so you should be aware of your expected value, volatility, and the difficulties you may face in extreme situations. 3. Generally, you don't need to watch the market every day when swing trading. When you first enter the market, you may need to pay attention to stop losses, unexpected market movements, or reversals. After setting up your stop loss, you can start taking a break. I believe there are many benefits to keeping a suitable distance from the market because my initial intention for swing trading was not to let it affect my daily life. . . . Without strict control over trading strategies, clear entry and exit conditions, and capital management, people may enter and execute so-called swing trades based on subjective perceptions, guesswork, arbitrary trading volume, and contrarian orders. "I call it gambling." Before starting swing trading, you should ask yourself whether you are speculating or gambling, and recognize that short-term speculative fluctuations can result in huge gains or losses. . . . In my opinion, long-term positive expected value speculation, with a sufficient number of samples, will eventually become an investment that generates excess returns. I hope my article is helpful to you, and if you have different opinions, please leave a comment and let me know.🙂
NASDAQ:NDXEducation
by Eleta1228
2
Multiple Time Frames Can Multiply Returns In order to consistently make money in the markets, traders need to learn how to identify an underlying trend and trade around it accordingly. Multiple time frame analysis follows a top-down approach when trading and allows traders to gauge the longer-term trend while spotting ideal entries on a smaller time frame chart. After deciding on the appropriate time frames to analyze, traders can then conduct technical analysis using multiple time frames to confirm or reject their trading bias. Multiple time frame analysis, or multi-time frame analysis, is the process of viewing the same currency pair under different time frames. Usually the larger time frame is used to establish a longer-term trend, while a shorter time frame is used to spot ideal entries into the market. HOW TO IDENTIFY THE BEST FOREX TIME FRAME? Many traders, new and experienced, want to know how to identify the best time frame to trade forex. In general, traders should select a time frame in accordance with: the amount of time available to trade per day the most commonly used time frame utilized to identify trade set ups. For example, day traders typically have the whole day to monitor charts and therefore, can trade with really small time frames. These range anywhere from a one-minute, to the 15-minute, to the one-hour time frame. Day traders that identify their trade set ups on the one-hour time frame can then zoom into the 15-minute time frame to spot ideal market entries. Multiple time frame analysis usually produces high win rate, guaranteeing very limited risk. Dear followers, let me know, what topic interests you for new educational posts?
OANDA:BTCUSDEducation
by SignalProvider
10
PULLBACK TRADINGTrading on a pullback is one of the options for trading in Price Action patterns. Like trading on a breakout, this style implies the use of pending orders. Trading on a pullback is more popular than on a chart breakout. If Price Action signals are used correctly, it can bring more profit with less risks. 🔵 Characteristics of the strategy of trading on a pullback This strategy, as well as all other trading strategies based on Price Action, is considered universal and multicurrency, suitable for any asset and timeframe. However, it is recommended to trade on liquid currency pairs, such as EURUSD or GBPUSD on hourly or four-hour charts. The daily D1 is also suitable for trading. When trading on a pullback, traders place limit orders (as opposed to a breakout, where stop orders are used). 🔵 The principle of trading on a pullback and the algorithm of placing orders The basic idea of the strategy is that the price, before it goes in the necessary direction after the formation of the pattern, usually pulls back, and if you catch the moment trend continuation, you can enter the same trade on more favorable conditions, with a smaller stop-loss and larger take-profit. Trading on a pullback is performed as follows: 1. A Price Action pattern appears on the chart. This can be a pattern of engulfing, a doji candle on a trend reversal, etc.; 2. At the opening of the next candle, a Limit pending order is placed (to buy, if an uptrend is expected, and to sell, if a downtrend is in progress). The order is placed approximately in the middle of the signal candle; 3. Stop Loss is set a few points beyond the extremum of the signal candlestick (below the minimum if trading to buy, above the maximum if trading to sell); Take Profit is set at trader's discretion. As an alternative, you can multiply the value of a stop-loss by 3 or 4, or set the take profit at the next key level, so that the price is guaranteed to catch it when it reaches this level. 🔵 Example of pullback trading As an example, we will consider trading on a pullback on the hourly chart of the EURUSD in detail. As an alternative, we will also consider the variant of opening a breakout order in this situation and compare the results. Events have developed as follows: 1. After a bullish move, a bearish doji candle was formed, signaling at least a correction; 2. At the opening of the next candle a Sell Limit order was placed (in this case the order was opened at the market, since the price at that moment was at the level of the supposed pending order); 3. Stop Loss is set above the maximum of the signal candle, Take Profit - in the area of the nearest support level; 4. The stop loss ratio is approximately 1:2.5, which provides a positive mathematical expectation of the trade; 5. After 6 hours the deal closed in profit. In this case both trades would be profitable, but profit on breakout of the support level would be almost twice less, and the stop/stop profit ratio would be 1,5:1 not in favor of take profit, which is considered inappropriate from the money management viewpoint. 🔵 Additional details of pullback trading Despite the fact that, in the example above, trading on a pullback was more profitable than trading on a breakout, it cannot be argued that this style is absolutely better. There are drawbacks to trading on a pullback as well. Unlike trading on a breakout which can be applied to all possible Price Action patterns, limit trading is not possible in every situation. Due to this the number of signals and possible transactions is reduced, and therefore the potential profit will also be less. In spite of the fact that as a rule the take profit at breakthrough trading is less than at limit trading. As we have more trades during the same test period, trading on the breakout can bring more profit. For example, the screenshot above shows the trend continuation pattern of an inside bar. When trading on the breakout, a pending order is placed above the maximum of the parent bullish candle which opens after several hours and the trend goes upwards, bringing profit to the trader. There are no reasons for the limit trade in this situation. It is impossible to place a pending order in the middle of the inside bar, and there is no logical reason to place it in the middle of the mother candle. It happens that the signal not to open a trade on a pullback on the limit order does not work, even when there are all the conditions for it. For example, during the formation of an engulfing pattern on the screen above placing a limit order in the middle of this pattern was quite logical. However, the signal candle turned out to be too strong, the pullback movement has not reached the pending order placed and the trade was not opened. In the same situation when trading on the breakout the trade would have been opened on the next candle, and in a few hours the trader would have fixed the profit. 🔵 Conclusion Trading by Price Action on a pullback has both advantages and disadvantages. On the one hand, this style allows you to make more profits with less risk in the same situation, when trading on the pullback shows less attractive dynamics. On the other hand, not all price action patterns are suitable for this style, in addition even suitable signals sometimes do not work, leaving the trader without profit. The choice of trading style largely depends on the trader's temperament. The pullback method suits the patient and conservative traders who are willing to wait for the signal for days and even weeks. As a result, such waiting will be rewarded with high profits on each of trades. More aggressive traders would be better suited to trading on the breakout which allows them to enter the market more often compensating the small profit and probable losses with the number of profitable trades.
Education
by DeGRAM
13
5 TYPES OF ELLIOTT WAVE PATTERNS Hello traders, today we will talk about 5 TYPES OF ELLIOTT WAVE PATTERNS ( FIRST SOME BASIC INFO ) What is Elliott Wave Theory? The Elliott Wave Theory suggests that stock prices move continuously up and down in the same pattern known as waves that are formed by the traders’ psychology. The theory holds as these are recurring patterns, the movements of the stock prices can be easily predicted. Investors can get an insight into ongoing trend dynamics when observing these waves and also helps in deeply analyzing the price movements. But traders should take note that the interpretation of the Elliot wave is subjective as investors interpret it in different ways. (KEY TAKEAWAYS) The Elliott Wave theory is a form of technical analysis that looks for recurrent long-term price patterns related to persistent changes in investor sentiment and psychology. The theory identifies impulse waves that set up a pattern and corrective waves that oppose the larger trend. Each set of waves is nested within a larger set of waves that adhere to the same impulse or corrective pattern, which is described as a fractal approach to investing. Before discussing the patterns, let us discuss Motives and Corrective Waves: What are Motives and Corrective Waves? The Elliott Wave can be categorized into Motives and Corrective Waves: 1. Motive Waves: Motive waves move in the direction of the main trend and consist of 5 waves that are labelled as Wave 1, Wave 2, Wave 3, Wave 4 and Wave 5. Wave 1, 2 and 3 move in the direction of the main direction whereas Wave 2 and 4 move in the opposite direction. There are usually two types of Motive Waves- Impulse and Diagonal Waves. 2. Corrective Waves: Waves that counter the main trend are known as the corrective waves. Corrective waves are more complex and time-consuming than motive waves. Correction patterns are made up of three waves and are labelled as A, B and C. The three main types of corrective waves are Zig-Zag, Diagonal and Triangle Waves. Now let us come to Elliott Wave Patterns: In the chart I have mentioned 5 main types of Elliott Wave Patterns: 1. Impulse: 2. Diagonal: 3. Zig-Zag: 4. Flat: 5. Triangle: 1. Impulse: Impulse is the most common motive wave and also easiest to spot in a market. Like all motive waves, the impulse wave has five sub-waves: three motive waves and two corrective waves which are labelled as a 5-3-5-3-5 structure. However, the formation of the wave is based on a set of rules. If any of these rules are violated, then the impulse wave is not formed and we have to re-label the suspected impulse wave. The three rules for impulse wave formation are: Wave 2 cannot retrace more than 100% of Wave 1. Wave 3 can never be the shortest of waves 1, 3, and 5. Wave 4 can never overlap Wave 1. The main goal of a motive wave is to move the market and impulse waves are the best at accomplishing this. 2. Diagonal: Another type of motive wave is the diagonal wave which, like all motive waves, consists of five sub-waves and moves in the direction of the trend. The diagonal looks like a wedge that may be either expanding or contracting. Also, the sub-waves of the diagonal may not have a count of five, depending on what type of diagonal is being observed. Like other motive waves, each sub-wave of the diagonal wave does not fully retrace the previous sub-wave. Also, sub-wave 3 of the diagonal is not the shortest wave. Diagonals can be further divided into the ending and leading diagonals. The ending diagonal usually occurs in Wave 5 of an impulse wave or the last wave of corrective waves whereas the leading diagonal is found in either the Wave 1 of an impulse wave or the Wave A position of a zigzag correction. 3. Zig-Zag: The Zig-Zag is a corrective wave that is made up of 3 waves labelled as A, B and C that move strongly up or down. The A and C waves are motive waves whereas the B wave is corrective (often with 3 sub-waves). Zigzag patterns are sharp declines in a bull rally or advances in a bear rally that substantially correct the price level of the previous Impulse patterns. Zigzags may also be formed in a combination which is known as the double or triple zigzag, where two or three zigzags are connected by another corrective wave between them.‘ 4. Flat: The flat is another three-wave correction in which the sub-waves are formed in a 3-3-5 structure which is labelled as an A-B-C structure. In the flat structure, both Waves A and B are corrective and Wave C is motive having 5 sub-waves. This pattern is known as the flat as it moves sideways. Generally, within an impulse wave, the fourth wave has a flat whereas the second wave rarely does. On the technical charts, most flats usually don’t look clear as there are variations on this structure. A flat may have wave B terminate beyond the beginning of the A wave and the C wave may terminate beyond the start of the B wave. This type of flat is known as the expanded flat. The expanded flat is more common in markets as compared to the normal flats as discussed above. 5. Triangle: The triangle is a pattern consisting of five sub-waves in the form of a 3-3-3-3-3 structure, that is labelled as A-B-C-D-E. This corrective pattern shows a balance of forces and it travels sideways. The triangle can either be expanding, in which each of the following sub-waves gets bigger or contracting, that is in the form of a wedge. The triangles can also be categorized as symmetrical, descending or ascending, based on whether they are pointing sideways, up with a flat top or down with a flat bottom. The sub-waves can be formed in complex combinations. It may theoretically look easy for spotting a triangle, it may take a little practice for identifying them in the market. Bottomline: As we have discussed above Elliott wave theory is open to interpretations in different ways by different traders, so are their patterns. Thus, traders should ensure that when they identify the patterns. This chart is just for information Never stop learning I would also love to know your charts and views in the comment section. Thank you
Education
by CRYPTOMOJO_TA
8
Building Your First Trading Plan | Step By Step Guide 📖What is a trading plan? A trading plan is a comprehensive decision-making tool for your trading activity. It helps you decide what, when and how much to trade. A trading plan should be your own, personal plan – you could use someone else’s plan as an outline but remember that someone else’s attitude towards risk and available capital could be vastly different to yours. 📚Why do you need a trading plan? You need a trading plan because it can help you make logical trading decisions and define the parameters of your ideal trade. A good trading plan will help you to avoid making emotional decisions in the heat of the moment. ✳️TRADING PLAN CREATION STEPS: 1️⃣Outline your motivation Figuring out your motivation for trading and the time you’re willing to commit is an important step in creating your trading plan. Ask yourself why you want to become a trader and then write down what you want to achieve from trading. 2️⃣Decide how much time you can commit to trading Work out how much time you can commit to your trading activities. Can you trade while you’re at work, or do you have to manage your trades early in the mornings or late at night? If you want to make a lot of trades a day, you’ll need more time. If you’re going long on assets that will mature over a significant period of time – and plan to use stops, limits and alerts to manage your risk – you may not need many hours a day. It's also important to spend enough time preparing yourself for trading, which includes education, practising your strategies and analysing the markets. 3️⃣Define your goals Any trading goal shouldn’t just be a simple statement, it should be specific, measurable, attainable, relevant and time-bound (SMART). For example, ‘I want to increase the value of my entire portfolio by 15% in the next 12 months’. This goal is SMART because the figures are specific, you can measure your success, it’s attainable, it’s about trading, and there’s a time-frame attached to it.You should also decide what type of trader you are. Your trading style should be based on your personality, your attitude to risk, as well as the amount of time you’re willing to commit to trading. 4️⃣Choose a risk-reward ratio Before you start trading, work out how much risk you're prepared to take on – both for individual trades and your trading strategy as a whole. Deciding your risk limit is very important. Market prices are always changing and even the safest financial instruments carry some degree of risk. Some new traders prefer to take on a lower risk to test the waters, while some take on more risk in the hopes of making larger profits – this is completely up to you. It is possible to lose more times than you win and still be consistently profitable. It's all down to risk vs reward. 5️⃣Decide how much capital you have for trading Look at how much money you can afford to dedicate to trading. You should never risk more than you can afford to lose. Trading involves plenty of risk, and you could end up losing all your trading capital (or more, if you are a professional trader). Do the maths before you start and make sure you can afford the maximum potential loss on every trade. If you don't have enough trading capital to start right now, practise trading on a demo account until you do. 6️⃣Start a trading diary For a trading plan to work it needs to be backed up by a trading diary. You should use your trading diary to document your trades as this can help you find out what’s working and what isn’t.You don’t only have to include the technical details, such as the entry and exit points of the trade, but also the rationale behind your trading decisions and emotions. If you deviate from your plan, write down why you did it and what the outcome was. The more detail in your diary, the better. ❤️Please, support our work with like & comment!❤️ What do you want to learn in the next post?
TVC:GOLDEducation
by UnitedSignals
7
📈HOW TO RECOVER FROM A TRADING LOSS📉 🔰Analyze the reasons behind the trading loss: Understanding what caused the loss is essential to avoid repeating the same mistake. Analyze the market conditions, trading strategy, and emotions behind the loss. 🔰Stick to a trading plan: A trading plan acts as a blueprint for a successful trading journey. Follow your trading plan and avoid any impulsive decisions. 🔰Cut losses short: Don't hold onto losing trades in the hope of recouping your losses. Cut the losses immediately and move on to the next opportunity. 🔰Diversify: Diversification can reduce your overall risk. Spread your investments across multiple channels and avoid investing all your money in a single asset. 🔰Learn from successful traders: Successful traders can provide valuable advice and insights into trading. Follow their strategies and learn from their experiences. 🔰Reduce the trading size: To avoid significant losses, reduce your trading size. Start with small trades and gradually increase the position size. 🔰Control emotions: Emotions play a significant role in trading. Avoid trading based on emotions and stick to the trading plan. 🔰Stay informed: Keep abreast of the latest market news and events. Follow economic indicators, news releases, and expert opinions. 🔰Take a break: Taking a break after a trading loss can help you clear your mind and recharge. Take time to assess your trading journey, re-evaluate your strategy and come back refreshed. ❗️Remember that trading losses are part of the journey, and everyone experiences them. Recovering from a loss requires discipline, patience, and a willingness to learn from mistakes. Stick to your plan, manage risk, control emotions and with time, recover from the loss. I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Do you like this post? Do you want more articles like that
Education
by ProSignalsFx
12
Interest Rate Hikes & Bank Collapse: How to Protect Your TradingThe Federal Reserve has been increasing interest rates for the past 9 months, causing a ripple effect throughout the financial world. In recent week, we have seen 3 major banks collapse as a direct result of the interest rate hikes, which has caused trouble in the financial world as well. As a trader, it's essential to understand how these events can affect your trading decisions and how to navigate the current situation. The Impact of Interest Rate Hikes on the Financial World Interest rate hikes have a direct impact on the financial world, including the stock market, bond market, and the housing market. As the Federal Reserve increases interest rates, borrowing becomes more expensive, which can lead to a slowdown in economic growth. It can also lead to increased volatility in the stock market, as investors react to the news and make changes to their portfolios. The Collapse of Banks and the IT Sector The recent collapse of two banks has caused trouble in the stock market specially IT sector, as many IT companies & startups have provided services to these banks. The collapse of these banks has caused a ripple effect throughout the financial world, leading to concerns about the stability of the financial system. Navigating Trading During the Current Situation As a trader, it's important to stay informed about the current situation and how it can affect your trading decisions. Here are some tips for navigating trading during the current situation: Stay informed: Keep up-to-date with the latest news and developments related to the interest rate hikes and the banking collapse. This can help you make informed decisions about your trades. Diversify your portfolio: Diversification is always important in trading, but it's especially crucial during times of economic uncertainty. Consider spreading your investments across different sectors to minimize your risk. Monitor volatility: As interest rates continue to rise, volatility in the markets may increase. Keep an eye on market volatility and adjust your trading strategies accordingly. Be patient: It's important to be patient and avoid making impulsive trading decisions based on emotions. Take the time to analyze the market and make informed decisions based on your trading plan. Use stop-loss orders: Consider using stop-loss orders to minimize your risk and protect your investments. Stop-loss orders automatically trigger a sale when a stock falls to a certain price, which can prevent you from incurring significant losses. Stay disciplined: It's important to stay disciplined and stick to your trading plan, even during times of economic uncertainty. Avoid making impulsive decisions based on emotions, and focus on your long-term trading goals. Take advantage of opportunities: While economic turbulence can be challenging for traders, it can also create opportunities for profit. Keep an eye out for undervalued stocks or assets that may be poised for growth in the future, and consider taking advantage of these opportunities if they align with your trading goals and strategy. Avoid overtrading: During times of economic uncertainty, it's important to avoid overtrading and taking on too much risk. Stick to your trading plan and avoid making impulsive decisions based on emotions or short-term market movements. In conclusion, the current situation of interest rate hikes and banking collapse can have a significant impact on the financial world and your trading decisions. By staying informed, diversifying your portfolio, monitoring volatility, and being patient, you can navigate this challenging environment and make informed trading decisions. Remember to always prioritize risk management and stay focused on your long-term trading goals.
SP:SPXEducation
by AfnanTAjuddin
Trend Channels, One of the best trading strategy 🤓The channel is a powerful chart pattern for trading. Channels combines several forms of technical analysis to provide traders with entry and exiting points as well as risk control. In this training, I will explain one of the simplest trading strategies called " Trend channel trading strategy ". Please note, this post is a summary of this strategy and I only mention its main points. 😏 Types of channels and best for this strategy A channel consists of at least four contact points because we need at least two low points to connect to each other and two high points to connect to each other. In general, there are three types: Channels that are angled up are called ascending channels. Channels that are angled down are descending channels. Channels in which the trendlines are horizontal are called horizontal channels, range channels, trading ranges, rectangle channels. The channels are also divided into three categories according to the time periods who make the price range : Macro channels , which are made with 12-Hour time frame, daily time frame and above. Mini channels , which are made with a time frame from 1-Hour to a maximum of 12-Hour. Micro channels , which are made with time frames of less than 1-Hour. **Tips: 1- Macro channels are made of Mini channels, and Mini channels are made of Micro channels, However, it is only an estimate and may not always be accurate, and they are Not the main rules and condition for Identifying channels or drawing them. 2- There is no special formula or law for naming the channels according to their time frames with these names (Macro, Mini and Micro) and you can use any time period for any type of channel. Trade Reliability Conformations represent the number of times the price has hits the channels trend lines and rebounded from the top or bottom of the channel. These are the important confirmation levels to remember: 1-2: Weak channel (not tradeable) 3-4: Adequate channel (tradeable) 5-6: Strong channel (reliable) 6+: Very strong channel (more reliable) **these numbers are just for each one of trend line (up line or down line of channel). I will write the continuation of this tutorial in the comments of this post. 😎
Education
by Arash-RK
The fastest area of wealth accumulation in the world-the forexAn investment field where one opportunity is enough to change one's destiny! A market that works miracles every day! Entering the new century, foreign exchange, an investment tool with infinite charm, is attracting the attention of more and more people. This market full of opportunities and challenges is changing our destiny all the time, so much so that it is loved by more and more people. Advantages of the foreign exchange market: 1.Low threshold for investment amount; 2.The investment period can be long or short, buy and sell as you go, and the liquidity is extremely high. 3.The highest return on investment, you can get more than several times the amount of investment funds. 4.The transaction procedures are quick and easy. You only need to enter the transaction procedures, which can be completed in a very short time. 5.Trading flexibility is high, and there are many profit opportunities in the dual-track of buying long and selling short. 6.The impact environment is relatively fair, the information channels are smooth, and it will not be operated by large companies. The principles of fairness, impartiality, and openness are guaranteed. There are many factors that affect it, and the relationship between supply and demand has a great impact. 7.The degree of risk is relatively high, but foreign exchange trading operations are flexible, mobile, rapid, and risks can be controlled and prevented. How to quickly accumulate wealth with small funds: 1. Survival first, development second. 2. Only do short-term intraday trading. 3. Operate no more than 5 times a day, and try not to place orders after the daily profit exceeds US 1,000. 4. Only 2-3 varieties are made every day. In the trading process, at the same time, establish that opportunities are available every day, and you need to maintain the concept of waiting patiently for opportunities, and overcome the impatience of eager to win; at the same time, make rational use of stop losses, establish the concept of safety in the bag, and turn floating profits into real profits in a timely manner.After trading, find the time period when you make the most profit every day, try to give full play to your advantages in this time period, and summarize your experience every day to continuously improve your tactics.
OANDA:XAUUSDEducation
by Short-term-king