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Why 90% Of Traders FAIL⁉️ Trading is one of the most fascinating and exciting professions in the world. It promises huge profits, financial independence, and the ability to work from anywhere. But with great rewards come great risks, and 90% of traders fail. Why do so many traders fail? Let's explore the reasons. 📚Lack of education: Many traders jump into trading without the proper education or training. They don't understand the market dynamics, technical analysis, and risk management. Trading is a skill that needs to be learned and practiced over time. Without education, traders are like blind people trying to navigate through a maze. 💔Emotional trading: Emotions are the biggest enemy of traders. Fear, greed, and hope can cloud judgment and lead to poor decision-making. Successful trading requires discipline and emotional control. Traders must learn to keep their emotions in check and stick to their trading plans. 📉Overtrading: Many traders believe that more trades translate into more profits. However, overtrading can lead to burnout, stress, and losses. Traders must focus on quality trades, not quantity. 🆘Lack of risk management: Trading involves risk, and traders must learn to manage it. Risk management includes setting stop-loss orders, using proper position sizing, and diversification. Traders who don't manage risks can quickly wipe out their accounts. ❌Unrealistic expectations: Trading is not a get-rich-quick scheme. It requires patience, persistence, and hard work. Many traders have unrealistic expectations about their profits and timelines. They give up too soon or take too much risk in search of quick profits. So, what can traders do to avoid failure? ✅Firstly, educate themselves. Learn the fundamentals of trading, technical analysis, and risk management. Investors can take various online courses for trading like those from Udacity, the Trading Academy, etc. ✅Secondly, manage emotions and develop discipline. Learn how to control your emotions and stick to your trading plan. Traders must treat trading as a business and follow strict rules like any other business. ✅Thirdly, trade with proper risk management. Develop a risk management strategy before starting trading. Use stop-loss orders, never risk more than you can afford to lose, and diversify your portfolio. 🧠In conclusion, trading can be a rewarding profession that offers many benefits. However, traders must be aware of the risks and pitfalls. By educating themselves, managing emotions, and developing robust risk management strategies traders get a good chance of succeeding in trading. Good luck! 😸Thank you for reading buddy, hope you learned something new today😸 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
14
🎀Trading Education: EXPECTATIONS VS REALITY🎀 ❤️As an aspiring trader, you might have found yourself daydreaming of a life filled with endless profits, exotic vacations, and luxury cars. You might have even started to imagine yourself as the next Wolf of Wall Street, impressing your friends and family with your wealth and success. 💜But the reality of trading education is somewhat different from the fanciful expectations we often hold. Yes, it's true that trading can be a lucrative and exciting profession, but there are a few things you should know before diving in headfirst. 🧡First and foremost, trading education is not a get-rich-quick scheme. You can't simply enroll in a course or attend a seminar and expect to become a millionaire overnight. It takes dedication, hard work, and a willingness to learn and adapt. 💙Reality check number two: trading can be risky. No matter how much education or experience you have, there will always be factors beyond your control that can affect the markets. Successful traders understand this and know how to manage their risk accordingly. 💛Another thing to keep in mind is that there is no one-size-fits-all approach to trading. Different strategies work for different traders, and what works for one person may not work for another. This means that personalized education and training is key. It's important to find a mentor or course that aligns with your goals, personality, and trading style. 🤍Last but not least, trading is not a lonely profession, contrary to popular belief. While it's true that traders spend a lot of time analyzing charts and making trades on their own, there is a whole community of traders out there willing to share their knowledge and experiences. Whether it's through online forums or in-person meetups, connecting with other traders can offer invaluable insight and support. 💚In conclusion, if you're considering trading education, it's essential to adjust your expectations and face the realities of the industry. It takes hard work, dedication, a willingness to take risks, and personalized education to succeed. But with the right mindset, community, and drive, anyone can achieve success in the exciting world of trading. 🌺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
7
THE IMPACT OF INTEREST RATES ON FOREX MARKETHello again! Interest rates can have a significant impact on the forex market , as they can affect the demand for and supply of different currencies. In general, higher interest rates tend to attract foreign investment and increase the demand for a currency, as investors can earn a higher return on their investments. This can lead to an appreciation of the currency in the foreign exchange market. On the other hand, lower interest rates may discourage foreign investment and reduce the demand for a currency, leading to a depreciation of the currency in the forex market. Interest rates can also affect the attractiveness of a country's assets, such as stocks and bonds, which can in turn affect the demand for its currency. For example, if a country has high interest rates, its assets may be more attractive to foreign investors, leading to an increase in demand for the country's currency. In addition to the interest rate level, the direction and pace of change in interest rates can also affect the forex market. If a central bank is expected to increase interest rates in the near future, it may lead to an appreciation of the currency, as investors anticipate higher returns on their investments. On the other hand, if a central bank is expected to lower interest rates, it may lead to a depreciation of the currency. Overall, the relationship between interest rates and the forex market is complex and can be influenced by a variety of factors, including economic conditions, inflation expectations, and global market conditions.
OANDA:XAUUSDEducation
by m_maia14
MONEY MANAGEMENT: The MOST Important Aspect of TradingIf you are a professional trader or plan to become one, Money Management is your #1 job. You could be the best chart reader or statement analyzer in the world but if you have poor money management you will still fail. In order to succeed you first have to last, and to last in the trading business you must be able to handle risk and manage it accordingly. How you handle Money Management comes down to a few simple things: Risk limits - This consist of knowing your risk per trade, your max drawdown, and buying power limitations. ○ Risk per trade: This is the amount you are willing to lose if the trade goes against you and stops out (remember to always have a stop loss). Many traders refer to this as Risk Units or simply 'R'. This should be a defined amount that does not vary based on emotion. If you do use different risk for different trades you should have that clearly defined in your trading plan otherwise each trade should be the same. Risk per trade should be around 1% for experienced traders and $10 for new traders as they work towards slowly raising risk with consistency. ○ Max drawdown: This is the max amount you are able to lose per timeframe. For example, a day trader may have a max drawdown of 3R per day, 7R per week, and 13R per month. Max drawdown demands that if you lose that amount in that timeframe you are to be done trading until the next one. This helps traders from spiraling out of control and blowing up a trading account. ○ Buying Power Limitations: Knowing how many trades you are able to take at one time will help define your strategy. Expectations - This consist of knowing your expectancy and timeline ○ Expectancy: Your trade expectancy is the most important stat in all of trading. It tells you what you expect to make per trade. In order to properly manage risk you have to be sure that the strategy is worth it. The expectancy stat is how you do just that. For more info about expectancy check out my post on it here ○ Timeline: Everything takes time. Trading is no different. Having a realistic expectation about your timeline and how much you are going to make is a critical element in helping traders stay focused on their goals and not fall into a get rich quick scheme. If you expect your trading career will take 3-5 years to become profitable you will manage your money much better than someone who expects full time profits in under 1 year. Yourself - This consist of knowing your personality and trading plan ○ Personality: What is your personality like? Are you a jittery person or are you robotic. Knowing this will help build a management that you can trust and are able to follow. ○ Trading Plan: Make sure your trading plan fits your trading style. You have to take many things into consideration here such as time constraints, goals, and personality. It takes time to figure out what works for you. If you can determine how to handle these three factors then you will be well positioned to not struggle with money management. After you have the fundamentals written in your trading plan all it comes down to is staying disciplined and following the rules set for yourself. Clearly define your limits, have an expectation, know thyself. Thanks for reading, follow @Jlaing for more educational post about Money Management, Trading Stats, and more. I also stream a stock day trading chat room every morning at 9:15 EST right here on TradingView, come check it out and say what's up.
BITSTAMP:BTCUSDEducation
by JLaing
EXPECTANCY: The Golden Key StatisticWhat is Expectancy? Expectancy is the one of the most important statistics in trading. Expectancy is how much you expect to make per trade. If you have an expectancy of 0.3 that means you make 30% of your average risk per trade. If you risk $1000 per trade, then you would receive $300 on average for EVERY time you took a trade. The baseline for a worthwhile & profitable strategy for most traders is an expectancy of 0.25 or higher. Anything more than 0.5 is outstanding. How do you calculate expectancy? A few different ways: (gross profit/# of trades)/Avg. Risk or ((Win%*Avg. Win)-(1-Win%*Avg. Loss))/Avg. Risk The table on the chart breaks down the required Win% and Profit/Loss ratio needed for an expectancy greater than 0.25. As you can see there are multiple ways to build a profitable strategy. What does Expectancy tell you? Expectancy is a crucial stat for traders because it lets them know if their strategy is valuable. The only way to know your expectancy is to track your trades! Tracking your trades is an essential part of the job as a trader yet many fail to do so. It can be done for free with some simple spreadsheet formulas and a bit of time. Track your trades, review your stats, improves your trades. Rinse & repeat. Thanks for reading, follow @Jlaing for more educational post about Money Management, Trading Stats, and more. I also stream a stock day trading chat room every morning at 9:15 EST right here on TradingView, come check it out and say what's up.
BITSTAMP:BTCUSDEducation
by JLaing
The three O's that have to go ❌The O’s in your trading game that have to go are shown drawn on the chart. The three O’s in the idea can all overlap one another and allowing one to creep in can lead to any of the other also creeping in to your trading. We have all suffered at some point in our trading journeys of these three phenomena. All of these O’s can lead to capital being impacted and potentially a blown account. We’ll start with over trading. On the face of it, over trading is taking too many trades. Over trading can occur when chasing losses or being on a particularly good winning steak. Either of those situations mentioned is essentially a loss of control. The loss of control leads to a loss of focus. The loss of focus leads to too many trades. Too many of those trades will be stupid trades. Those stupid trades will be losing trades at some point. All these trades mean increased commissions. The cycle continues and instead of compounding profits the only thing being compounded is risk. Compounded risk leads to losses and if the cycle isn’t broken a blown trading account awaits. Next is over risking. Risk management is key to any trading plan being successful. Stating the obvious in that first sentence. But I’m also stating the obvious when I say we’ve all been there and risked more than we should on some trades. Over risking more than our capital allows will only lead to tears and one outcome which is the blown account outcome. We end with overconfidence Probably the worse O of the three to allow in your trading behaviours! Allowing this one to sneak in can quickly allow the other two already covered to sneak in. Usually seen as a positive emotion in the world we live in, this emotion can quickly become a negative emotion in the trading world. Allowing this emotion to creep in blurs our perceptions to so many concepts we need for trading and can lead to a gambling mentality. Greed will take hold with overconfidence and when the winning streak comes to a cashing end the trader runs the risk of allowing the other two O’s to creep in leading to only one outcome. The blown account yet again. The O’s can crossover All of the traits mentioned can be experienced individually or some can crossover one another. Below are a few examples. We covered in the overconfidence how it can lead to the O’s creeping in. Overconfidence from a winning streak leads to overtrading which in turn leads to an inevitable losing streak and capital impacted with losses. Worse case scenario is overconfidence from a good run of trades leads to over risking on the next set of trades which loose. You then end up over trading in revenge to gain back the losses which could lead to yet more losses. You could be a new trader starting out with no confidence. You start to over risk from the off and lead to your trading account being blown. You could over trade combined with over risking which accelerates the loss of trading capital. In those scenarios mentioned confidence hasn’t been an issue at all. But risk management and trade volume have. How to avoid the O’s I'm pretty sure we all suffer one of O traits at some point in our trading journey. The key is to recognise the incident and the issues it caused and learn from that. It lies with us as individuals to own up to our trading mistakes. Some of us will suffer all three O’s in our trading paths. In owning up to our shortcomings all the O’s can be avoided going forward in your trading life's. Hope you all enjoy your trading week. Darren ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. Thank you.
BITSTAMP:BTCUSDEducation
by pow_removetheguesswork
Trading with WRONG expectations... #1Almost all traders understand the concept of a drawdown - a period of loss making. A trader is not going to have a 100% trade win rate - there will be losing trades - and there will be times of consecutive losing trades. For some reason, despite understanding this concept, many traders don't ACCEPT this concept. Let me explain... As soon as a trader hits a drawdown, the reaction is panic or discouragement. The following statements could flood the mind of the trader... 'The strategy is not profitable anymore' 'I need a more profitable trading strategy' 'I am going to lose too much, so I will reduce my position sizes' 'I need to increase my position sizes to win back these losses' 'I am so angry, I am going to risk all that I have left in my account' In other words, the trader becomes emotional and let's his emotions determine his trading decisions. This will always result in long-term failure. Conclusion... Accept that drawdowns will happen and expect drawdowns to happen, because they will happen!
Education
by Samuel_Morton_Trader
13