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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
GOLD : Whales Impact In trading MarketOANDA:XAUUSD A whale is any individual or company who has enough money and power To directly influence the price of a cryptocurrency or stock, usually in a negative way. Think of a whale and their large mass. Whales use artistically created buy walls and sell walls to manipulate traders by changing current market sentiment. Traders should be aware of large buy walls and sell walls that appear quickly. They could be part of a whale's manipulation strategy. How do you spot a whale trade? There are four primary ways to track whale activities, which include monitoring known whale addresses, order books, sudden changes in market capitalization and trades on crypto exchanges. Whales are held responsible for sudden price fluctuations in the crypto and traditional markets every so often.
OANDA:XAUUSDEducation
by INVESTRONE
WHAT ARE THE FIBONACCI LEVELS? 🔵 We are not going to focus on the Golden Ratio and the Fibonacci sequence in nature or around us. You can read about it in various books or on the Internet if you are interested. We will find out how these numbers can help in forex trading. Now, let's talk about Fibonacci retracement levels. Now let's get straight to the point. Fibonacci retracement levels look like this: 0.236, 0.382, 0.500, 0.618, 0.764 The Fibonacci extension levels are as follows: 0, 0.382, 0.618, 1.000, 1.382, 1.618 And these are the extension levels used in forex to set orders like "take profit". In other words, according to them, the price often reaches these levels, which should be taken into account in the analysis. Let us agree that Fibonacci levels are an instrument for trend analysis and are not suitable for consolidation. The point is that when the trend is upward, Similarly, for a down trend and support. We find the lower swing levels, then the upper swing levels, and draw a grid between them. 🔵 Fibonacci in a downward trend Let's act in the same way and draw the grid between the two candlestick patterns-swings, but downwards. The chart of EUR/USD, 4-hour timeframe. The assumption is that as the price rebounds upwards, it will hit one of the Fibonacci resistance levels, since the general trend is very strong downwards. Let's see what happened next. The pullback really came and the market slowed down below 0.382, an early hint of exhaustion of the bulls' forces. Finally, at 0.500 the bulls ran out of steam and the level worked as a resistance. And these two levels, 0.382 and 0.500, interact with each other. Their main purpose is as temporary support and resistance. We all know about the resistance and support, so do not expect the price to bounce from these levels. No. These are, first of all, the zones of trader's interest. Therefore, the price at these levels likes to consolidate into micro-channels before it moves on. As you well know, price can break both support and resistance. That means it will similarly break through Fibonacci levels. So, these levels are a guideline, but not an absolute guarantee of pullbacks and reversals. Sometimes levels are broken through, sometimes instead of 0.500 a bounce occurs from 0.618 and lots of other examples. Sometimes the price doesn't care about these levels. The price, as such, moves between levels, and some levels are more significant for it at a certain moment in time, and some are less significant for it. So, in using Fibonacci levels, you will benefit from all the tools in your arsenal that we already know about. The tools we use to filter inputs from support and resistance levels, whether it's Fibonacci or conventional. Say, oscillators with their divergences, price action patterns and more. In fact, let's combine Fibonacci levels with support and resistance. 🔵 Fibonacci retracement with support and resistance levels We have already learned that Fibonacci retracement levels are quite subjective. Like everything in technical analysis, we shouldn't just use them. In this case, we need a level enhancer. This is when ordinary support or resistance is well combined with Fibonacci retracement levels. An uptrend, so many green candles. it's all very nice, but where to enter? Especially since the price clearly went with low volatility. We use the Fibo and let's add a mirror level, where resistance has become support. It can be seen very well. Notice how it combines with the 0.5 level. Now we have to wait for the price to interact with this level. As you can see, the price really respected that level, it worked as support and did not let the price go further up. As you understand, support and resistance are, first of all, the zones of interest. The area that triggers the maximum reaction of the price. Not the least of the reasons is that everyone uses these levels. And, consequently, the more institutional traders apply Fibonacci levels, the more these levels influence price behavior. There is a direct correlation. This is why simple support and resistance levels also work. Of course, there's no guarantee that these levels will bounce the price, but we don't need guarantees, because we don't know that they don't exist in trading, do we? We know very well. But here is the zone where the price should be watched closely Fibonacci levels are quite suitable for that. 🔵 Fibonacci levels and trendlines Another way to apply Fibonacci levels is with another basic technical analysis tool. And what tool comes after support and resistance? That's right trendlines. Many traders use Fibonacci retracement levels exactly in an uptrend or downtrend, so combining them with trendlines makes confluence. Let's take a look at the next chart. We should take a trade, if such a situation arises, let's say, when the price touches the trendline. However, let's add Fibonacci retracement levels and see what happens. And we will get a more accurate entry zone. Let's use two swing values and watch what happens. We are especially interested in the levels of 0.500 and 0.618. Here we have it, the level 0.618 (61.8%) worked out as support, and it is right on the trendline. It's time to enter to further increase the trend. Two simple tools sometimes give equally simple results. Similarly, you can use the Fibonacci levels with horizontal support and resistance. In this case, Fibonacci will act as another way to filter entries at support and resistance levels. ✅ Conclusion Keep in mind that Fibonacci levels should not be used alone, you will lose everything. They should be combined with other elements of technical analysis, such as indicators, trend lines, Price Action patterns, etc. They are auxiliary tools and you should always remember about it.
Education
by DeGRAM
1
10 Rules of Risk Management Risk management is the most important aspect of any trading plan. Apart from the mathematical and strategic methodologies to employ, there are several precautions you can adopt as a trader and consider in your decision-making process. Never risk more than you can afford to lose. Never forget Rule no.1. Stick to your trading plan. Consider the costs like spread, rollover/swap and commissions. Limit your margin use and track available margin to avoid margin calls. Always use Take Profit and Stop Loss orders. Never leave open positions unattended. Record your performance and adjust as you progress. Avoid high volatility periods like economic news releases. Avoid making emotional decisions when trading. We apply risk management to minimise losses if the market tide turns against us after an event. Although the temptation of realising every opportunity is there for all traders, we must know the risks of an investment in advance to ensure we can endure if things go sour. All successful traders know and accept that trading is a complex process and an extensive risk management strategy and trading plan allow us to have a sustainable income source. ❤️Please, support our work with like & comment!❤️ What do you want to learn in the next post?
TVC:GOLDEducation
by UnitedSignals
5
banks are on fire again...The banking system is bursting at the seams again. It all started with the recent series of bankruptcies of several American banks at once and it happened in just a week, which was an echo of the problems of the 2007 crisis, which, as people hoped, we were able to solve. The main signal of the disaster was a sudden failure in the Silicon Valley bank. On March 9, people's deposits disappeared, losses totaled an incredible $42 billion, which brought out an underestimated risk in the system. The problem was hidden in long-term bonds, in which the bank invested during a period of low interest rates and high asset prices, and when the Federal Reserve System sharply raised rates, the bank began to have problems. As a result, the bank was left with huge losses that were not previously recognized due to the fact that American capital rules do not require most banks to report a drop in the price of bonds that they plan to hold to maturity. 620 billion dollars – that's how many unrecognized losses were in the entire banking system of America at the end of 2022. To understand how much it is: this amount is equal to about a third of the total capital stock of American banks. The pandemic has brought even more problems to the economy, and the banking system has become even more shaky. A large volume of new deposits poured into banks, and the Federal Reserve's stimulus measures pumped cash into the system. These deposits were directed by banks to purchase long-term bonds and government-guaranteed mortgage-backed securities, and all this increased the risk of ruin in the event of an increase in interest rates. Having bought bonds with depositors' funds, the bank essentially used other people's funds, but the problem was not that, but that holding bonds to maturity requires matching them with deposits, and as rates rise, competition for deposits increases. At large banks, such as JPMorgan Chase or Bank of America, rising rates tend to increase their earnings thanks to floating-rate loans. However, in about 4,700 small and medium-sized banks with total assets of $10.5 trillion, rising rates tend to reduce their margins, which helps explain why stock prices of some banks have fallen. Another problem for banks is the risk that depositors will start withdrawing their deposits during the crisis, which will force the bank to cover the outflow of deposits by selling assets. If this happens, the bank's losses loom, and its capital stock may look comforting today, but most of its filling will suddenly become an accounting fiction. That is why the Federal Reserve System acted this way last weekend, being ready to provide loans secured by bank bonds. By providing loans with good collateral to stop the flight, the Fed is right, but such easy conditions come with certain costs. By creating the expectation that the Fed will take on the risks of interest rate changes in a crisis, they encourage banks to behave recklessly. The coming year requires regulators to make the system safer and less risky for the people. It is necessary to abolish some strange rules that do not require reporting and answers for increased risks that relate to small and medium-sized banks, Now the government has announced its intention to rescue depositors of the Silicon Valley Bank, which indicates that such banks carry a systemic risk and they need to be rescued in order not to destroy the entire economy of the country. But saving depositors is only half the job, in order to eliminate the repetition of today's and past problems, it is necessary to introduce the same accounting and liquidity rules that big banks follow, as is the case in Europe, and will have to submit plans to the Fed for their orderly resolution if they fail. These decisions and actions concern not only the United States, these rules should require the entire banking sector to recognize the risks associated with an increase in interest rates. Unrealized losses carry the risk of bankruptcy and banks with such losses should be confirmed by more thorough control and verification than those who do not have such losses. Timely testing will help to avoid bankruptcy, which would simulate a situation in which the bank's bond portfolio is released to the market, while rates rise even more. After that, it would be possible to determine whether the system has sufficient capital to avoid bankruptcy or not. Banks, of course, will resist additional control, increasing capital reserves, but all this will help to improve the quality of system security. Depositors and taxpayers around the world face intense fear, and they should not live with the fear and fragility that they thought had gone down in history many years ago.
SEducation
by Lingrid
7
LOT SIZE, PIPS AND LEVERAGE WHAT IS LEVERAGE Leverage is a tool that increases the purchasing power of the trader’s deposit. The mechanism is funded by the broker, or rather the liquidity provider working with the broker. The leverage mechanism is very simple. The higher the leverage is, the more funds we can invest in trading. Simply put, leverage is kind of a bank loan. But it is much cheaper, and the borrowers usually risk only their own funds on the account. WHAT IS A PIP A pip (percentage in point) is the minimum unit of measurement to express the change in value between two currencies in the Forex market. In currency pairs, 1 pip is often one hundred-thousandth, that is, the fifth decimal place in a currency quote (0.00001). For the derivatives, one pip is usually one hundredth (0.01). Simply put, a pip is the last decimal place in a quote. The pip cost is directly affected by the lot size. LOT SIZE IS The lot size is the number of currency units expressed in the quote currency that compose one whole contract. The quote currency is the currency that used to value the asset price. In the EUR/USD currency pair, the base currency is the EUR. Common lot types are: Standard,Mini-lot (0,1 of a standard one), Micro-lot (0,01 of a standard one), Nano-lot (0,001 of a standard one). LOT AND LEVERAGE RELATION The relation between these two concepts is that both these figures affect the total trade cost. The difference is that this influence is made in opposite directions. The larger is the lot size, the larger is the transaction volume, and, consequently, its value (I mean the security deposit you must have to open the position). However, the higher is the leverage, the less money is required for the trade margin and therefore, the less is the trade cost. CONCLUSION Forex lot size and leverage are the basic concepts for every forex trader. It is of key importance to understand them. Experiment with the calculator and the table to understand how the lot size and leverage affect your position size in particular and your trading in general. This practice will help you develop your own strategy and determine the “best” leverage for your trading goals. 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
6
Let's Talk About Bad Luck and Downtimes In TradingAbout bad luck and downtimes in trading. Let's discuss the downtimes that traders may face. While everyone experiences them, some traders can maintain a calm mindset, while others may collapse under the pressure. What sets them apart? As I mentioned in my previous articles, trading involves risks, much like gambling. If you're seeking a risk-free investment, consider options like bonds or long-term investments. Even with a positive expected value, trading can encounter terrible consecutive losses. For instance, my index swing trading strategy has a win rate of around 40% and a profit-to-loss ratio of 5 or higher, which sounds promising. However, the reality is that consecutive wins and losses are inevitable. A 40% win rate implies the following chances: - Around an 8% chance of experiencing five consecutive losses. - Around a 5% chance of experiencing six consecutive losses. - Around a 3% chance of experiencing seven consecutive losses. - Around a 2% chance of experiencing eight consecutive losses. How many consecutive losses can you handle? Can you keep your emotions in check? Can you survive the phase of self-doubt and questioning the strategy's correctness? These are all crucial factors. The most critical aspect is always capital management, ensuring that you retain profits and avoid being eliminated by the market. When feeling down, it's essential to accept your emotions and not avoid them. Embrace yourself and the imperfections of your trading. Take a break and improve your mood. Only trade when you can maintain a rational mindset. Go for a walk, chat with your family and friends, enjoy good food, and appreciate the beauty of the world beyond trading. Although it's against human nature, keeping an open mind and discussing your loss situation with others can be helpful. This helps you face yourself honestly, rather than trading for self-esteem or self-display. Trading goals should focus on making money, self-realization, improving life, and helping those in need. Always remind yourself. Evaluate the feasibility of the strategy, the ability to withstand consecutive losses, and manage your money well. Be aware that downtimes may occur at any time, but long-term positive expected value trading will lead you in the right direction. I hope this article can be helpful to you. I'm trader Beta, and you can also find me if you need a psychological coach. Wish you all the best of Luck while trading.
CME_MINI:NQ1!Education
by Eleta1228
Common Reasons Why Traders lose Money Even in an UptrendHi guys, This is CryptoMojo, One of the most active trading view authors and fastest-growing communities. Consider following me for the latest updates and Long /Short calls on almost every exchange. I post short mid and long-term trade setups too. Let’s get to the chart! I have tried my best to bring the best possible outcome to this chart, Do not consider financial advice. Common Reasons Why Traders Lose Money Even in an Uptrend #Not Setting Stop-Loss: #Not Conducting Technical Analysis: #Going against the Trends: #Following the Herd: #Being Impatient: #Not doing Homework or Research: #Averaging on Losing Position: Buy low sell high' is the motto. As simple as it sounds, why do most people lose money trading or investing? There are four major mistakes that most beginners make: 1. Excessive Confidence This stems from the idea that people think of themselves as special. They think they can 'crack the code' in the stock market that 99.9% of people fail to, and eventually make a living trading and investing. However, taking into consideration the fact that more people lose money in the market, this form of wishful thinking is the same mentality as going into a casino feeling lucky. You may actually get lucky and win big the first few times, but in the end, the house always wins. 2. Distorted Judgements While simplicity is key, the approach most beginners make in trading and investing are too simplistic, to the extend where it's hard to even call it a trading logic or reason to invest. They spot a few reoccurring patterns within the market, and this is almost as if they discovered fire. It doesn't take long to realize that the "pattern" they spotted was never based on any solid reasoning, or worse, wasn't even a pattern at all in the first place. 3. Herding Behavior The fundamentals of this is also deeply rooted in a gambling mindset. Beginners are attracted to the idea of a single trade or investment that will make them a millionaire. However, they fail to realize that there is no such thing. Trading and investing is nothing like winning the lottery. It's about making consistent profits that compound throughout time. While people should definitely look for assets that have high liquidity and some volatility , the get-rich-quick mentality drags irrational beginners into overextended/overbought stocks that eventually drop drastically. 4. Risk Aversion Risk aversion is a psychological trait embedded within all of mankind's DNA. Winning is fun, but we can't tolerate losing. We tend to avoid risk, even when the potential reward is worth pursuing. As such, many beginners take extremely small amounts of profits, in fear that they might close their position at a loss, trading with a terrible risk reward ratio. In the long run, their willingness to not take any risks leads to losses. Depending on the price action, they also go through seven phases of psychological stages: - Anxiety - Interest - Confidence - Greed - Doubt - Concern - Regret ------------------------------------------------------------------ Lack of Discipline An intraday trader must stick to a proper plan. A full-fledged intraday plan includes profit targets, factors to consider, methods to put a stop loss, and ways to select the right trading hours. The trading plan provides a comprehensive overview of how trading should be executed. Also, you can keep a record of trades executed during the day with the performance analysis of each stock at the end of the day. Such records help you identify the weak areas in your trading strategy and correct them. It is very important to be disciplined as a trader, the proper discipline will help you minimize the losses and maintain your capital. Not Setting Proper Trading Limits In intraday trading, the success lies in managing the risk. You should pre-define a stop loss and profit target when entering intraday trading. This strategy itself is an important part of trading discipline and this is where most people fail. For instance, if you incur a loss in the first hour itself, you should shut down the trading terminal for the rest of the day. You should also have an overall capital loss limit in place, it will safeguard you against trading losses. Compensating for a Rapid Loss This is one of the common mistakes in the trading community. When a trader incurs a loss, he/she either tries to average a position or overtrades excessively to recover the loss. This further leads to a greater loss and put them into more trouble. Losses are a part of intraday trading, instead of overtrading, it is wise to accept the loss, analyze the strategy and make improvements from the next day. Heavy Dependency on Tips Nowadays, there are ample of intraday tips flowing everywhere on the digital media. It is a common phenomenon for a trader to rely on these external tips, however, this needs to be avoided. The best way to learn intraday trading is by gradually learning how to read charts, understanding structures, and interpreting results on your own. Many traders refrain from taking these efforts and because of this, they end up on the losing side. The Beyond App by Nirmal Bang provides deeper insights into the market, the technical research offered by Nirmal Bang is spot on. You can use that research for reference, however, nothing can beat practical experience. Not Keeping Track of Current Affairs The external news, events, and tragedies do have an impact on the stock market. Hence, it is important for an intraday trader to keep a track of the Indian as well as global markets. Even the performance of global markets has an impact on the movement of Indian markets. Make your trade after the news or event has been announced, do not try to speculate the market based on the news. There are even instances when traders do not have any sound trading strategy, they just make decisions based on gut feelings or emotions. One needs to remember that intraday trading in itself is a skill, it is not a gamble, it takes time to develop proficiency, you cannot expect rapid results. The above are some of the major reasons why intraday traders lose money, ensure that you are disciplined enough, stick to a proper strategy, analyze your strategy at regular intervals, and things will fall in place. This chart is likely to help you make better trade decisions if it does consider upvoting it. I would also love to know your charts and views in the comment section. Thank you
Education
by CRYPTOMOJO_TA
2
Education: Why is backtesting necessary for trading indicators? Backtesting of trading indicators is necessary because the results displayed by indicators may not match real-life situations. Although Tradingview is one of the widely used trading platforms with a rich library of technical indicators, some of these indicators may have issues with "peeking into the future." Conducting backtesting is also essential to avoid "future function" problems. Two common problems related to "peeking into the future" include: 1. Using future data in the calculation of indicators, such as using the opening price. 2. Setting parameters incorrectly during backtesting and testing, may cause the buy signal to be moved by one candlestick. Therefore, through backtesting, we can ensure that our trading strategies and indicators are reliable. --- Below is a case that illustrates the importance of backtesting trading indicators. The chart shows a strategy I created based on the trendy indicator called "Machine Learning: Lorentzian Classification" on Tradingview. As seen in the chart, the backtesting results and the signals provided by the indicator have significant differences. The indicator may display a green or red signal to indicate buy or sell, respectively, but it is only valid for the next candlestick, which could be due to problem 2. Key takeaway - Backtesting of trading indicators is necessary to verify their reliability and avoid future function problems. #educational #trading #investing #presentTrading #dyor Ref: "Machine Learning: Lorentzian Classification — Indicator by jdehorty." TradingView, 13 Mar. 2023 Ref: "Machine Learning: Lorentzian Classification — Indicator by jdehorty." TradingView, 13 Mar. 2023
Education
by PresentTrading
Timeline for an ideal trading dayEvery day, traders around the world wake up and begin their day with the same goal: to make money. But how do they go about doing that? What is the ideal timeline for a trading day? In this blog post, we'll outline the perfect day for a trader, from start to finish. Wake up It's no secret that successful traders need to be up bright and early to get a jump on the day's market action. But what many people don't realize is that there's more to it than just setting an alarm clock and getting out of bed. To start the day off right, it's important to do some light exercises to get the body moving and the blood flowing. A quick jog or some simple calisthenics can make a big difference in terms of energy levels and mental acuity. Just as important as physical activity is eating a healthy breakfast and drinking plenty of coffee. Breakfast provides the body with much-needed nutrients after a long night's sleep, while coffee helps wake up the mind and get those creative juices flowing. So there you have it: the perfect way to start your day as a trader. By following these simple tips, you'll be well on your way to making money in the markets. Check the news As a trader, it's important to start your day by checking the news for any major announcements or news stories that could affect the market. You should find a reputable source for business news and look for any breaking news stories that could impact the stocks on your watchlist. This will help you be more informed and prepared when making trades throughout the day. Make a watchlist When making a watchlist of stocks to trade, there are a few key things to look for. First, you want to find stocks that are trading at new 52-week highs or lows. This can be a good indicator of a stock that is starting to move in a particular direction and could be worth watching. Another thing to look for is stocks that have unusual volume. This could be an indication that something is happening with the stock and it is worth keeping an eye on. Additionally, you want to look for stocks that are making large percentage moves. This could be an indication that there is some momentum behind the stock and it could be worth taking a closer look at. Finally, you want to identify stocks that are breaking out of chart patterns. This could be an indication that the stock is about to make a move and it would be wise to keep an eye on it. Plan your trades When planning your trades, the first thing you will need to do is take a look at your watchlist and identify which stocks look like they are ready to make a move. You can use a variety of indicators to help you with this, such as 52-week high/low, unusual volume, large percentage moves, or breakouts from chart patterns. Once you have identified which stocks look promising, you will then need to review your charts for those stocks and identify potential entry and exit points. Once you have found potential entry and exit points, you will then need to calculate the risk/reward ratio for each trade. This will help you determine whether the trade is worth taking. To calculate the risk/reward ratio, you will need to find out how much you are willing to lose on the trade and how much you think you can gain. For example, if you are willing to lose $100 on a trade but think you could gain $200, then the risk/reward ratio would be 1:2. After calculating the risk/reward ratio, you will then need to decide which trades you are going to make. You should always consider your risk tolerance when making trading decisions. Once you have decided which trades to make, you will then need to place your orders. Execute your trades When it comes time to execute your trades, there are a few things you need to keep in mind. First, you need to find a stock that you want to buy or sell. You can do this by researching the stock and watching for market trends. Once you have found a stock that you want to trade, you need to place an order with your broker. Your broker will then execute the trade on your behalf. Once the trade is executed, you will have a position in that stock. You can then exit your position by placing another order with your broker. It is important to remember that you should only trade with money that you can afford to lose. Trading is a risky investment and there is always the potential for loss. Before making any trades, be sure to do your research and understand the risks involved. Review your trades As a trader, it is important to review your trades at the end of the day. This will help you learn from your successes and failures, and make better trades in the future. When reviewing your trades, there are a few things you should keep in mind. First, consider whether you made the right decision in entering the trade. If not, what could you have done differently? Second, think about whether you exited the trade at the right time. Did you give the trade enough time to play out? Were there any warning signs that you missed? Finally, reflect on what you learned from the experience. What went well? What could have been done better? Taking the time to review your trades at the end of each day is an important part of becoming a successful trader. By learning from your mistakes and celebrating your successes, you will be able to make more informed and profitable trades in the future. End of day As the end of the day approaches, it is important for traders to take some time to review their trades and assess their performance. This process allows traders to determine what they did well and what they can improve on. It also helps traders organize their thoughts and trading strategies for the next day. Taking the time to review your trades at the end of each day is an important part of becoming a successful trader. When reviewing your trades, you should consider factors such as whether you made the right decision in entering the trade, whether you exited the trade at the right time, and what you learned from the experience. By taking the time to review your trades on a daily basis, you will be able to learn from your successes and failures and become a better trader. After you have reviewed your trades, it is also important to take some time to relax before going to bed. This will help you be fresh and ready to start trading when the markets open. Trading is a demanding activity that requires focus and concentration. If you are not well-rested, you will not be able to perform at your best. So make sure to take some time to wind down before bed so that you can be ready to start fresh tomorrow. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
11
WHAT YOU NEED TO KNOW ABOUT TRADING FOREX ON FRIDAY🔵 Friday is a relaxed day with the weekend ahead, followed by a working Monday. How does this affect the market? How do the big players behave on this day? Who holds positions over the weekend, taking risks? Today we will figure out what to keep in mind when trading Forex on Friday, why this day's candle is important, what tips can be extracted from the price direction on this day, and consider a few more important nuances that you are unlikely to think about. ▶️ The Friday news and the NonFarm. Also, newbies should remember that Friday in America on the dollar there are often significant news releases, such as non-farms, which can really shake the market. So, on Friday, don't forget to check the economic calendar. Notice if there are any significant news marked with three red dashes on the calendar. So, there is no point in trading or following the market today. You can calmly leave it and go have a rest. ▶️ The direction of the movement in the second half of the day is the key to the momentum on Monday. The next thing you need to pay attention to is the movement in the second half of Friday and up to the market close. If the price is steadily moving up in that period, we should expect it to continue on Monday. Correspondingly, if the price is steadily going down, we can expect this impulse to go on at least during the first half of Monday. And we are interested in a clear and directed movement. Why it happens, I think, is clear: the big players are buying without fear that something will happen over the weekend. In other words, they are confident in the absence of news, they confidently buy or confidently sell and this means that on Monday we can expect the momentum to continue. ▶️ Weekly candlestick formation In general, the market does not like to change the shape of the weekly candlestick on Friday. Therefore, looking at the chart on the W1 timeframe, and looking at the practically formed weekly candlestick, we can assume what the movement will be at the end of the day. For example, this Friday, at noon on the EURUSD chart, the weekly candlestick has a rather long tail, which indicates that the bulls have already been taken out. Plus, a pretty deliberate downward price move. Even if you take into account the non-farms, often they only take out the stops and then the price recovers in just a couple of hours. So, most likely, the downside movement will continue till the end of the day or the price will stay at the same level. But we should not expect any appreciable rise. Or the weekly candlestick by 12:00-14:00 GMT on Friday is full-body bullish, or full-body (large body, small shadows) bearish, you should not expect a significant price movement in the opposite direction till the end of the day. Accordingly, in this case, if you trade within the day, it makes no sense to look for sell trades, if the weekly candlestick is obviously bullish. Of course, if the weekly candlestick is indistinct, for example something like a doji, the price may go in any direction, and it is difficult to predict anything reliable by such a candlestick. But a solid weekly candlestick allows to rather accurately predict the market behavior on Friday afternoon: a bearish one is down, and a bullish one is up. Or almost no change, which happens more often than we'd like. ▶️ Why is Friday so significant? A huge amount of forex trading is intraday trading. High-frequency and intraday traders account for up to 80% of transactions in the market. And they all get out of the market before Monday. So, who are they those people who open positions on Friday and leave them for the weekend? After all, anything can happen over the weekend. They are the big traders, various serious institutions who have more information than us or the media. At the same time, they agree to the risk of transferring trades through the weekend, they pay swaps. That is, these are very significant traders and the direction of their positions is worth watching, at the very least. Therefore, what happens on Friday often has a significant impact on the further price movement, and can give an impulse for Monday and the whole next week. In addition, according to statistics, Friday is often the minimum or maximum point of the weekly candle. For this reason, we should expect the continuation of the directional movement of the price, if it is present in the weekly candlestick. If you take a single Friday candlestick of D1, in the case if it has any of the signals by your trading system, or by Price Action in general, it is worth paying close attention to it. ▶️ When to open a position with a signal on D1, on Friday or Monday? When it is better to open a position in the presence of a signal on D1 at market closing on Friday evening or at market opening on Monday? The answer is simple: we open positions at market opening on Monday. If there is a gap, we trade it, and if there is no gap, we trade our set-up. Because if you open a position on Friday night, a huge gap can simply take your stops out on Monday and you will make a loss (plus your order may slip). Therefore, if you see any signal on Friday night, you better open positions on Monday. ✅ Conclusion. In addition to the above, we should not forget that many traders close trades and fix profits on Fridays, not wanting to roll over positions through the weekend. This can be due to a possible gap, as well as with the desire to exit the position and quietly go to the weekend. So at the very end of the day if there was a clear bullish trend, price rolls back a bit (bulls fix profit), if there was clearly a bearish trend - price moves a bit higher (bears close positions).
Education
by DeGRAM
2
judgment of technical indicators and application skills1. Simple judgment of support and resistance: Support and resistance levels are the points in the chart that are subjected to continuous upward or downward pressure.The support level is usually the lowest point in all chart patterns (hourly, weekly, or annual), while the resistance level is the highest point (peak)in the chart.When these points show a downward trend, they are recognized as support and resistance.The best time to buy/sell is near the support/resistance level that is not easy to break.Once these levels are broken, they tend to become reverse obstacles.Therefore, in an uptrend market, the broken resistance level may become support for the upward trend; however, in a downtrend market, once the support level is broken, it will turn into resistance. 2. Understanding of lines and channels: Trend lines are a simple and practical tool in identifying the direction of market trends.The upward straight line is formed by at least two consecutive low points connected.Naturally, the second point must be higher than the first point.The extension of a straight line helps determine the path along which the market will move.Upward trend is a specific method used to identify support lines/levels.On the contrary, the downward line is drawn by connecting two or more points.The variability of trading lines is to some extent related to the number of connection points.However, it is worth mentioning that each point does not have to be too close.A channel is defined as an upward trend line parallel to the corresponding downward trend line.Two lines can represent price upward, downward, or horizontal corridors.The common attribute of a channel that supports the connection point of a trend line should be between the two connection points of its reverse line. 3. Understanding and understanding of the average line: If you believe in the creed of "trend is your friend" in technical analysis, then the moving average will benefit you a lot.The moving average shows the average price at a specific time in a specific period.They are called "moves" because they are measured at the same time and reflect the latest average. One of the shortcomings of moving averages is that they lag behind the market, so they are not necessarily a sign of a trend shift.To solve this problem, using a shorter period moving average of 5 or 10 days will better reflect recent price movements than a 40 or 200-day moving average.Alternatively, the moving average can also be used by combining two average lines of different time spans.Regardless of the use of 5 and 10-day moving averages, or 40- and 200-day moving averages, buy signals are usually detected when the shorter-term average crosses the longer-term average upward.In contrast, a sell signal will be prompted when the shorter-term average crosses the longer-term average downwards. In order to facilitate everyone to continue to follow up on my analysis and sharing, you can like and follow me; in addition, I will share the daily real-time strategy in the channel. If you can't follow up in real time, you may make operational errors.You can use the following methods to enter my channel for free to follow the latest news and follow up on market trends in real time.
FX:XAUUSDEducation
by Blessed_V
From Newbie to Experienced Trader | Full Path Explained 📖I was reflecting on how I became a trader, and suddenly I was reminded of a great book called «A hero with a thousand faces» which then led to the analogy between the journey of a trader and the hero's journey. And while just as any analogy this one is somwhat superficial, I really feel like there is a lot of truth to it. Just think of how many of us have trading histories that look something like this? ♣️A grand call to adventure. Who would not want to make a pile of money working from the comfort of your own computer screen? ♠️Finding a mentor. Good mentors matter! Few of us who have succeeded would have done so without some help. ♣️Crossing over into an “unreal” world. Markets are crazy. When we look deeply into markets, maybe we become a little crazy ourselves, and we certainly become disconnected from ordinary reality. ♠️Facing dire challenges. The emotional highs and lows of trading can be extreme. Is there a trader alive who hasn’t been awake at 4am wondering if they can ever do this, why they ever tried in the first place, how they could be so stupid to make the same mistakes over and over, and what they were going to do tomorrow? (This is probably not the time to mention that we only write stories about the heroes that complete the journey! A lot of dragons feasted very well, for a very long time.) ♣️Failure somehow, perhaps almost miraculously, is transformed to success. ♠️We figure out how to incorporate our trading activities into the everyday world, and discover that things probably weren’t quite as exotic or difficult as we had thought. 📌My point is that trading is not really about learning patterns. It is not about learning some math. It is not about skill development, and it is not even about risk management. All of these things are important, but the real work of trading is work on ourselves. ✅Remember: Before facing the dragon in a cave, one needs to awaken the dragon within. ❤️Please, support our work with like & comment!❤️ What do you want to learn in the next post?
TVC:GOLDEducation
by UnitedSignals
6
How to trade trending markets?A trending market is defined as a market where prices are moving in a consistent direction over a period of time. There are many different ways to trade in trending markets, but some common methods include using moving averages, identifying areas of value, and recognizing chart patterns. This article will discuss different aspects of trading in trending markets and provide tips on how to trade in these conditions. Whether you're looking to take profits or cut losses, this article will give you the information you need to make informed trading decisions. Moving averages Moving averages are one of the most commonly used technical indicators by traders. A moving average is simply a line that is plotted on a chart that shows the average price of a security over a certain period of time. The most common time periods used are 10, 20, 50, and 200 days. There are different types of moving averages, but the two most popular are the simple moving average (SMA) and the exponential moving average (EMA). The SMA is calculated by taking the sum of all prices over the specified time period and dividing it by the number of prices in that period. The EMA, on the other hand, gives more weight to recent prices. Traders use moving averages to help identify trends in the market. When price is above a moving average, it is generally considered to be in an uptrend. Conversely, when price is below a moving average, it is typically considered to be in a downtrend. One way to use moving averages is to look for crossovers. A crossover occurs when two different moving averages cross each other on a chart. For example, if the 50-day SMA crosses above the 200-day SMA, it could be indicative of a new uptrend forming. Alternatively, if the 50-day SMA crosses below the 200-day SMA, it might be indicative of a new downtrend beginning. Crossovers can also be used to generate buy and sell signals. For instance, if price is trading above both the 50-day SMA and 200-day SMA, then traders might look for buy signals when price pulls back towards either of those Moving Averages. Similarly, if price is trading below both Moving Averages, then traders might look for sell signals when price rallies back up towards either MA. Moving averages can also be used to help traders identify areas of support and resistance. If price has been trending higher and keeps bouncing off of the 50-day MA, then that MA could be acting as support in an uptrending market. Likewise, if price has been trending lower and keeps bouncing off of the 200-day MA, then that MA could be acting as resistance in a downtrending market. Area of value An area of value is simply a point in the market where traders believe the price is either undervalued or overvalued. Traders use this concept to find potential entry and exit points in a market, as well as to manage risk when trading in a trending market. When looking for an area of value, traders should consider both the price action and the underlying fundamentals of the market. For example, in a bullish trend, an area of value may be found at a support level where the price has bounced off multiple times. Alternatively, in a bearish trend, an area of value may be found at a resistance level where the price has failed to break through multiple times. It is important to note that areas of value are not static; they can move up or down over time as market conditions change. As such, traders should regularly monitor both the price action and the fundamentals to ensure that their areas of value are still valid. Once an area of value is found, traders can then look to enter into a position. When doing so, they should consider both their risk appetite and their desired profit-to-loss ratio. For example, a trader with a higher risk appetite may choose to enter at a point closer to the current market price, while a trader with a lower risk appetite may wait for the price to reach their area of value before entering into a position. Once in a trade, it is important to monitor the market closely and have exit strategies in place should the market move against you. If the market does move against your position, you can either cut your losses or ride out the storm and hope that prices eventually rebound back in your favor. Remember, however, that past performance is not necessarily indicative of future results so always do your own research before making any trades. Chart pattern Chart patterns are a useful tool that traders can use to signal future price movements. There are three main types of chart patterns - reversal, continuation, and bilateral. Reversal chart patterns occur when the price trend reverses direction. The most common reversal chart pattern is the head and shoulders pattern, which is characterized by a peak followed by two lower highs with a trough in between. This pattern signals that the current uptrend is coming to an end and that prices are likely to head lower in the future. Continuation chart patterns occur when the price trend continues in the same direction. The most common continuation chart pattern is the flag pattern, which is characterized by a period of consolidation following a sharp price move. This pattern signals that the current trend is likely to continue and that prices are likely to move higher or lower in the future. Bilateral chart patterns are characterized by a period of consolidation with support and resistance levels that converge towards each other. The most common bilateral chart pattern is the Pennant Pattern, which is formed when there is a sharp price move followed by a period of consolidation. This pattern signals that there is indecision in the market and that prices could move either higher or lower in the future. Tips for identifying chart patterns: - Look for well-defined patterns with clear support and resistance levels - Pay attention to volume; there should be an increase in volume when the pattern forms - Use Fibonacci retracement levels to help you identify potential support and resistance levels. Support and resistance When trading in trending markets, it is important to be aware of support and resistance levels. Support and resistance levels are price points where the market has difficulty breaking through. In a bullish trend, the support level is the lowest point that the market has reached before bouncing back up. In a bearish trend, the resistance level is the highest point that the market has reached before falling back down. Support and resistance levels can be used to signal future price movements. For example, if the market is approaching a support level, this may be seen as a buying opportunity as the market is likely to bounce back up from this level. Similarly, if the market is approaching a resistance level, this may be seen as a selling opportunity as the market is likely to fall back down from this level. It is important to note that support and resistance levels are not static; they can move up or down over time as market conditions change. As such, traders should regularly monitor both the price action and the fundamentals to ensure that their levels are still valid. When trading in trending markets, it is also important to have exit strategies in place should the market move against you. If the market does move against your position, you can either cut your losses or ride out the storm and hope that prices eventually rebound back in your favor. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
9
❌NO RISK OF LOSS=NO CHANCE OF GAIN✅ *️⃣There are several reasons why losses are part of the game: 1️⃣Emotion: Traders, just like all human being, are prone to emotional bias, which can lead to impulsive decision making and ultimately to losses. 2️⃣Probability: Even with the best trading strategy, there will be losing trades. It's important to remember that not all trades will be successful, and losses are a normal part of the process. A successful trader should aim to have more winning trades than losing ones. 3️⃣Markets are unpredictable: Even the most experienced traders can't predict market movements with 100% accuracy. Unforeseen events, such as natural disasters or major political announcements can cause sudden changes in market conditions, leading to losses. 4️⃣Risk is inherent in trading: All forms of investing involve some level of risk. In trading, the risk is even greater due to the fast-paced nature of the markets and the fact that positions are often held for shorter periods of time. 5️⃣There is no Holy grail strategy: There is no one strategy that will work in every market condition and for every trader. Different strategies work better in different market conditions, and a trader should be flexible and adaptable to changing market conditions. ▶️It's important to remember that losses are a normal part of trading, and traders should not be discouraged by them. Instead, traders should focus on managing risk, learning from losses, and continuing to develop and refine their trading strategies over time. 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
10
A focus on the importance of support and resistance levelsSupport and resistance levels are the lost art of trading any market. In using support and resistance zones, I also use various MA's (Moving Averages) to assist me in finding the perfect entry. Now no trading strategy is completely waterproof. The market will act and react however it wants to, and a multitude of factors can drastically alter price action so take this advice at your own risk. I'm looking to provide a series of videos to assist me in providing this information in a more clear and more concise manner. Support is a zone at the bottom of a trend or series of trends that acts as a trampoline, or (support) to the upside. Resistance acts as a ceiling, or (resistance) that favors movements to the downside. Draw these zones using either a rectangle on higher timeframes or two horizontal lines. There's not a single price that can act as either support or resistance. To create a larger margin of error, we use these zones. These zones usually make up anywhere from 20-30 pips, depending on the symbol in question. Use the MA's to show you where the trend is heading. Bring in other factors such as market sentiment, geopolitics, economic statistics, news breaks, and anything else that can act as confluence in determining where the market may go next. I use anywhere from 3 to 5 levels of confluence before I even think about entering the market. NEVER impulse trade. I also suggest never trading pre-news. When a red folder news event occurs, the market can shake, or "whipsaw" causing price action to rubberband in either direction. These moves are aimed to close retail traders' accounts, and the market wants nothing more than to take your money. More to come in a future idea - stay tuned. Happy trading, and as always, use responsible risk management when trading any financial market. Swindle
Education
by Swindle
1
How Leverage Really Works | Margin Trading Explained Leveraged trading allows even small retail traders to make money trading different financial markets. With a borrowed capital from your broker, you can empower your trading positions. The broker gives you a multiplier x10, x50, x100 (or other) referring to the number of times your trading positions are enhanced. Brokers offer leverage at a cost based on the amount of borrowed funds you’re using and they charge you per each day that you maintain a leveraged position open. For example, let's take EURUSD pair. Let's buy Euro against the Dollar with the hope that the exchange rate will rise. Buying that on spot with 1.195 ask price and selling that on 1.23 price we can make a profit by selling the same amount of EURUSD back to the broker. With x50 leverage, our return will be 50 times scaled. With the leverage, we can benefit even on small price fluctuations not having a huge margin. ❗️Remember that leverage will also multiply the potential downside risk in case if the trade does not play out. In case of a bearish continuation on EURUSD , the leveraged loss will be paid from our margin to the broker. For that reason, it is so important to set a stop loss and calculate the risks before the trading position is opened. Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
10
Why every trader need money management?Almost every trader, at some point in their career, wonders if they need money management. The answer is a resounding yes! Having the proper business mindset is essential to success in trading. This includes having the right attitude, being disciplined, and knowing how to manage your emotions. Without these things, it is very difficult to be successful in the markets. In this article, we will discuss why every trader needs money management. We will talk about the importance of having the proper business mindset, and we will also discuss some of the key components of an effective money management plan. By the end of this article, you will have a better understanding of why money management is so important for traders, and you will be able to start implementing some of these concepts into your own trading strategy. Business mindset Trading is a difficult business. It requires long hours, dedication, and a lot of hard work. But even with all of that, most traders still fail. Why is that? The answer is simple: they don't have the proper mindset. In order to be a successful trader, it is important to have the proper mindset. This means having the right attitude, being disciplined, and knowing how to manage your emotions. If you can master these things, you will be well on your way to success in the markets. Attitude is everything in trading. You have to be positive and believe in yourself, even when things are tough. Discipline is also key. You need to be able to stick to your trading plan, even when you are losing money. And finally, you must be able to control your emotions. Fear and greed are two of the biggest enemies of traders, so you must learn how to control them. If you can develop the proper mindset, you will be well on your way to success in trading. So what are you waiting for? Start working on developing the right attitude today! Manage losses When trading, it is essential to have a well-defined money management plan in place. This plan should include setting stop-loss orders and taking profits at predetermined levels. By having a plan in place, you can help keep your emotions in check and make more informed decisions about when to enter and exit trades. Stop-loss orders are placed with a broker in order to limit losses on a trade. When the price of the security reaches the stop-loss price, the trade is automatically sold. This type of order can be very helpful in managing risk, as it takes the emotion out of the decision of when to sell. Taking profits at predetermined levels is also important in money management. By doing this, you can take some emotion out of the decision of when to sell and lock in profits. It is important to remember that no one knows where the market will go in the future, so it is important to take profits when they are available. It is also essential to have a risk management strategy in place. This strategy should define how much capital you are willing to risk on each trade. It is important to remember that even the best traders lose money on some trades, so it is important not to risk more than you are comfortable with losing. By having a well-defined money management plan, you can help keep your emotions in check and make more informed decisions about when to enter and exit trades. This can ultimately help you improve your overall success as a trader. Confidence and self-control Confidence is key for any successful trader. A clear understanding of the market and your personal trading strategy is essential to maintaining a level head and making sound decisions. Being mindful of your successes as well as your failures allows you to learn from your mistakes and build upon your strengths. Practicing in a simulated environment gives you the opportunity to become more comfortable with the decision-making process before putting real money on the line. Self-control is another important aspect of trading. Emotions such as fear and greed can cloud your judgement and lead to poor decision making if left unchecked. Having a plan in place and sticking to it can help you stay focused on your goals even when things get tough. Diversifying your portfolio is also crucial in managing risk and ensuring that you don't put all of your eggs in one basket. By developing confidence and self-control, traders can set themselves up for success. These qualities can help them make sound decisions, manage risk, and stay calm in the face of market volatility. Keeping emotions out of trading When it comes to trading, one of the most important things that you can do is keep your emotions in check. This can be difficult to do, but it is essential for success. One of the best ways to keep your emotions in check is to have a system or strategy in place that you stick to no matter what. This will help take the emotion out of the decision-making process. Additionally, it is important to know when to walk away from a trade. If you are feeling emotional about a trade, it is often best to just step away and take a break. It is also important to have the discipline to stick to your system or strategy even when it might not seem like the best thing to do in the moment. By keeping your emotions out of trading, you will be more likely to make sound decisions and be successful in the long run. Decision making Traders need to be aware of their goals if they want to be successful. This means having a clear understanding of the risks and rewards involved in each decision. It is also important to have a plan for how to execute each decision, as well as being prepared to accept the consequences of those decisions. Making sound decisions is crucial for traders. What are your goals? Are you looking to make a quick profit or build your portfolio over the long term? Once you know, you can develop a plan that takes into account the potential risks and rewards involved in each decision. For example, if you are looking to make a quick profit, you might be more willing to take on more risk. On the other hand, if you want to build your portfolio over the long term, you might be more conservative with your trades. It is also important for traders to identify when they are making an emotionally-based decision. Emotions can cloud our judgment and lead us to make poor decisions. If you find yourself getting emotional about a trade, walk away and come back later with a clear head. Additionally, it is crucial to have the discipline stick to your system or strategy even when it might not seem like the best thing to do in the moment. Making sound decisions requires traders have a clear understanding of their goals, the risks and rewards involved in each decision, and how emotions can impact their ability make rational decisions. By having plan and sticking it, traders increase their chances success in the markets. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
12
Traders and Gamblers: Know the main differences!Hi guys, This is CryptoMojo, One of the most active trading view authors and fastest-growing communities. Consider following me for the latest updates and Long /Short calls on almost every exchange. I post short mid and long-term trade setups too. Let’s get to the chart! I have tried my best to bring the best possible outcome to this chart, Do not consider financial advice. We are gonna go through 6 crucial points and elaborate how traders are different from gamblers. 1) As a trader, one’s aim is to focus on the next 100 trades instead of the next 10. Long-term success, profitability, and consistency are two of the main things traders should target. However, a gambler’s wish and desire is to make quick money. 2) A successful trader/investor has a backtested trading plan that he sticks to and optimizes along the way, adapting to changing market conditions. On the other hand, gamblers like to trade based off what other people think and tweet, or by simply opening a random Buy/Sell position and hoping it plays out successfully. 3) Profitable traders always diversify their portfolio and risk no more than 1-2% per trade. On the contrary, gamblers go “full margin mode” on a single trade without setting a Stop Loss and end up blowing their accounts and blaming the markets. 4) Chasing markets and rushing the process is not what real traders do. Instead, they follow their plan and wait for the price to play out and match their entry criteria before executing. Nonetheless, gamblers like to overtrade, open positions based on nothing, make biased decisions. 5) When enduring a loss or two (or three), traders neither get emotional nor try to revenge the markets. They know that if they obey risk management principles and open high risk-to-reward positions, they will cover all their previous losses and get back to making profits. Gamblers, on the other hand, get angry and start attempting to revenge the market by making foolish decisions and entering many illogical trades. 6) Last but not least, if you want to be successful and profitable in this field, you have to treat trading as a business and take things seriously. Those that think markets are a playground or a casino machine will never succeed in this space. Gambling vs Trading Gambling involves staking on the occurrence of an event that has an uncertain outcome for winning. For an action to be considered as gambling, three prerequisites must be present; the stake, the risk involved and the prize to be obtained upon the occurrence of the event. Gambling has existed since records began. Early gambling involved six-sided die in Mesopotamia in 3000 BC. Around the 9th century, playing cards made their entrance, giving birth to the modern card games we know today. Over the years, gambling has taken several shapes and forms such as sports betting, parimutuel betting, and the gamut of casino bets. Trading on the other hand, involves the buying and selling of financial instruments like cryptocurrencies, stocks, bonds, derivatives amongst others. There are several types of trading such as high-frequency trading, day trading, etc. each of which has its pros and cons. Historically, the trading of financial instruments began in the 17th century after merchants banded together to form joint-stock companies. In 1602, the Dutch East India Co. issued the first recorded paper shares, allowing for the trading of stocks. This revolutionary concept spread through the world, leading to the creation of exchanges such as the London Stock Exchange which was founded in 1773. This chart is likely to help you make better trade decisions if it does consider upvoting it. I would also love to know your charts and views in the comment section. Thank you
Education
by CRYPTOMOJO_TA
4
Human weaknesses that need to be overcome in the trading process Fear of missing out Before entering the market, you may have a bullish or bearish view and enter accordingly. Once you have a position, you are constantly concerned with the fluctuations of your account funds, tormented by various temptations, fears, greed, persistence, hope, and emotions influenced by these changes, and ignoring the market itself. This greatly interferes with normal thinking and judgment. Whether it's a long or short position, whether it's a profit or loss, as long as small gains and losses are within an acceptable range, one should beware of large losses. Traders should focus on the correctness of the process and be content with the results as they come. If you think about the results in advance, it will disturb the entire trading process and result in losses every time. The human mind always jumps ahead to imagine unrealistic outcomes and ignores what is actually happening in the present. This is a big mistake in our lives. These are the causes of fear or greed, which can lead to traders regretting after placing an order or closing a position, causing hesitation and indecision. The reason for this is that there is no effective trading system, causing traders to lack confidence in any aspect of the trading process. Confronting the market Traders must first understand that the market does not shift according to human will. The education we have received since childhood is based on competition, such as overcoming various obstacles and fighting difficulties. This consciousness has deeply rooted itself in the hearts of traders. In fact, when traders enter the market, they still carry this mentality. Often, some elites from various industries come to the market and suffer failures, and even more thoroughly than ordinary people. This is because successful people in other industries have a strong sense of self and do not believe they will fail. They are also unwilling to accept their own failures. Their success makes their personalities become very tough, so when the market turns against them, they do not know how to yield and compromise, but adopt a confrontational attitude until they are destroyed. People in life tend to defend their views to some extent, unwilling to admit their judgment errors. Therefore, regardless of whether a person is right or wrong, they will stick to their attitude to the end. What they defend is not the truth, but their self. This inherent nature of struggle and the attitude of not wanting to yield or give up self is the biggest obstacle in trading. Holding positions, not setting stop losses, and not admitting mistakes can eventually result in large losses or even liquidation. The pursuit of perfection The pursuit of perfection is a very greedy and extreme mentality. Because of this pursuit, it does not allow any flaws, cannot bear even very small losses, and it is difficult to execute a stop loss when necessary, and wants more profit when it is time to close a profitable position. Because of this pursuit, a person tries to capture every movement and does not want to miss any market situation. Everyone has their own limitations and areas in which they are not good at. The pursuit of perfection can easily lead to frequent and impulsive trading. To be continued...
INDEX:BTCUSDEducation
by triumphing
3