Panic can manifest in trading when unexpected events occur, such as sudden news announcements or price reversals. During these moments, traders are often prone to making impulsive decisions, such as adjusting stop-loss orders, prematurely closing trades at a loss, or holding onto losing positions for too long. This kind of panic can severely impact one’s emotional...
Gambling addiction is a pathological and uncontrollable urge to gamble, characterized by an inability to manage emotions and a failure to stop in time, often leading to intense emotional outbursts in response to negative outcomes. Initially, this term was used within the context of gambling to describe a situation where an individual experiences rage and loses...
Marketing serves as a powerful catalyst, attracting millions of newcomers to trading each year, many of whom quickly incur losses, much to the delight of brokers. In most instances, these losses can be attributed to the traders themselves. Regulators make efforts to warn those seeking quick profits, often highlighting disclaimers on the home pages of nearly every...
A few years ago, few people were familiar with prop trading, but it has gained popularity in recent years as an alternative to traditional PAMM accounts. With PAMM accounts, traders manage investors' funds but must first attract and convince these investors. In contrast, prop trading offers a more straightforward approach to fund management that initially appears...
The theory of pattern trading suggests that candlestick formations are rooted in psychological behavior. For instance, when a triangle or box pattern breaks out, it often signals a sudden surge of buying or selling following a period of consolidation. However, it's important to note that not all patterns yield reliable results. In this post, we will explore the...
Stress in trading is a response of the nervous system triggered by high levels of uncertainty, risk, and the fear of losing money. It often begins with a sense of excitement but can gradually escalate into panic, leading to panic attacks and intense fear.
Some individuals thrive under stress, viewing it as a stimulating emotion. They consciously understand that...
Novice traders are often swayed by their emotions. Even when equipped with knowledge of technical and fundamental analysis, as well as risk management, individuals are invariably guided by psychological factors. This influence isn't limited to emotional extremes such as greed, excitement, or despair. It also encompasses feelings like curiosity, self-assertion, and...
Yield farming can be likened to traditional bank deposits, where an investor puts in money and earns returns over time. However, in the world of cryptocurrencies, the concept takes on a more complex form. Yield farming is a broad term that encompasses various activities, including liquidity mining and staking. While these methods share similarities, they differ in...
Frustration in trading is an emotional state that traders experience as a result of unsuccessful trades, losing money, or being unable to follow their trading plan. It can be caused by a number of factors including unexpected changes in the market, errors in analysis or lack of discipline. Frustration occurs when expected results do not match reality or when a...
💹 APY (Annual Percentage Yield) is the amount of money an investor will earn in a year if the money is reinvested after each accrual period. The calculation formula is compound interest. In cryptocurrencies and decentralised finance (DeFi), APY is used to express the returns users can get from staking, liquidity mining and other types of income farming.
📍 ...
As everyone knows emotions are one of the main components of success in trading. And not only in trading, but also in life. And the problem is that everyone knows about the negative sides of excessive emotionality, but they still keep making the same mistakes. The mistake is that in the moment of calmness a person underestimates the harm that emotions can cause....
Decentralized exchanges, or DEXs, revolutionize the way we conduct transactions by empowering counterparties to directly interact with each other without the need for a central authority. In contrast to traditional centralized exchanges (CEXs), where all transactions are controlled by a single entity, DEXs operate on the principles of smart contracts, ensuring the...
💡 The cryptocurrency market is a realm of endless opportunities, where prices can fluctuate wildly, shooting up 5-10% in a single day in either direction. This volatility can be both exhilarating and intimidating, as it can either wipe out investors or leave them with a quick windfall. However, not everyone is suited to navigate this fast-paced landscape. For...
🌐 The trading conditions of any account specify the type of spread: floating or fixed. As a rule, the value of a fixed spread is larger, but a floating spread has an insidious wording “from...” in the terms and conditions. This means that the floating spread may well be greater than the fixed one. Nevertheless, it is considered better. What are its advantages and...
Liquidity plays a vital role in shaping market prices, particularly among large market players such as banks, hedge funds, and other influential entities. These entities, often referred to as market makers, manipulators, and others, are driven by their pursuit of liquidity. In fact, liquidity is the foundation upon which successful trading is built, and it's where...
Just 3-5 years ago, the concept of "real assets" was clear-cut - physical items that could be owned such as stocks, gold, and currency. On the other hand, "derivatives" referred to intangible assets like swaps, options, and CFDs that allowed for profit-making. However, the emergence of cryptocurrencies and blockchain technology has completely transformed this...
As we dive into studying price action, we can't help but be intrigued by the interesting names given to various patterns. Names like "Two Rivers" and "Shooting Star" not only sound captivating but also accurately describe the patterns they represent. In this post, we'll introduce you to another powerful pattern known as the Dragon. This pattern, belonging to the...
👋 Hello everyone, today we will be discussing stablecoins, which currently have a market capitalization of around $160 billion. Those who are not very familiar with cryptocurrencies often use stablecoins for various purposes such as making payments, storing money in a stable currency as an alternative to the US dollar, and for international transactions as well....
