EDUCATION: Ichimoku - Part 1Hello, dear subscribers!
Today we starting the training series of the Ichimoku Indicator trading. This article is about the Ichimoku definition and the easiest trading strategy using it.
What is the Ichimoku Indicator?
This indicator consists of 4 components:
1) Conversion Line - the 9 period high - low average price, demonstrates the short term period trend. When the price above it - the market is in local uptrend.
2) Base Line - the 26 period high - low avearge. It means the same as the conversion line but in the medium term period.
3) Lagging Span - close price plotted 26 period in the past. It can be used for the trend confirmation. When the lagging span is above the price it means the strong uptrend.
4) Cumo Cloud Lines - this lines will be examined in the next education article.
Ichimoku Strategy (Conversion + Base + Lagging Span)
The first Ichimoku strategy is very easy to apply for your trading. First of all you should filter signals with the lagging span: when it is above the price - it is time for long, in opposite - for short.
When it is done you should find the point, where the conversion line crossed over the baseline from down to up and execute long position.
You can exit long the conversion line bacame lower that the base line. The additional confirmation for exiting the position is the lagging span and price crossover.
Next time we will examine the most interesting part - the Ichimoku Cloud and appropriate strategies.
G-money
EDUCATION: Bollinger Bands Hello, dear subscribers!
The next topic of our education is the Bollinger Band channel.
What is Bollinger Bands?
BB channel consists of three lines: the moving average of close price, the MA plus/minus 2 standard deviations. This channel defines the most likely price swings range.
How to trade with BB?
There are two different situations for the BB trading.
The first one is the trading during the consolidation phase.
You should open the long positions when the price broke the lower BB and close when it reached the centraline. The short position you can open when the price hits the higher BB and close on the centraline.
The second situation is the trend trading. According to theory the periods with low volatility are preceded by the high volatility periond. When the the volatility is low the BB channel is squeezed and it is a good time to searching for the potential trend beginning. You can use Money Flow Index or other volume-based indicators for the trend confirmation. For example, when the price hits the higher BB and the money flow index value rapidly increased it can be the evidence of potential uptrend beginning.
The most difficult and important problem of the BB trading is the trend direction definition. If the trend is defined correctly this strategy becomes very profitable.
How to trade XRP. 3 Best and simpliest trading strategies. My Friend. Here will be the best patterns that work on Crypto and XRP:
1. False break out of key level
- U should wait for a pullback to a strong key level.
- Better when a false breakout happens after 100% of ATR drop.
example
2. Wage patten
This BNB trade is the best example.
We made 3% within 1 day))
3. Squezeeng to a key level
The best example will be on EUR/USD but it also works on Crypto and XRP.
I just showed you 3 best examples of how can buy XRP. Wait for one of these scenarios.
My Friends, if u want to learn how to trade crypto and make money on it write to us about education. Below this video will be a link which u can use for it. Because we closed the last 2 weeks with 80% of the profit. You also can learn how to do it.
EDUCATION: Commodity Channel Index (CCI)Hello, dear subscribers!
Today's topic is the Commodity Channel Index (CCI). To be honest, in sole use it is almost useless indicator but a lot of profitable strategies and indicators contain it, this is the reason we need to understand how does it work.
Definition
The CCI formula demonstrated on the chart. To make it clear it is the some math manipulation with the typical price momentum, the same as in momentum oscillators calculation, but here we have unbounded value. The CCI value higher than 100 associated with asset overbought condition, lower than -100 - oversold. It measures the strength of the trend, but usually this information is not actual.
How to trade with CCI?
According to fact that CCI is lagged indicator we are not recommended you to trade with it in sole use, because it generates a lot of fake signals or does it when it's too late. We can give you some signals which help you to build the complex strategy. When the CCI in overbought zone it can be the evidence of future price drop, in opposite case - the price increase. You can see on the chart the potential short and long exit and entry points, but keep in mind that there are a lot of cases when this analysis is invalid.
Summary
1)Don't use CCI as sole indicator
2)The main feature of this indicator is overbought and oversold conditions. When the other indicator demonstrates the potential price movement direction you can use CCI as confirmation.
EDUCATION: Williams Alligator IndicatorHello, dear subscribers!
Today's topic is Williams Alligator (WA) Indicator, which is very important and efficient trading tool at any timeframe.
Definition
WA consists of three lines:
Jaw = Moving average with length 13 and offset 8
Teeth = Moving average with length 8 and offset 5
Lips = Moving average with length 5 and offset 3
But you can choose your own settings.
This indicator usually use for trend confirmation and works perfect with other indicators, which will be examined in next topics.
How to trade with Williams Alligator?
Alligator has 2 states: slleping and feeding time. The yellow areas demonstrate the sleeping time, when the lines are intertwined. During this period is not recommended to trade. When the lips start rapidly move down it means the downtrend start. After this the jaw starts open and the feeding time confirmed. When the red candle closed lower than all three MA lines, this is the perfect moment to entry short position. The exit condition is the crossover the lips and teeth lined, but you can do it earlier - when the price broke up the lips or teeth lines.
For the long position the opposite is true, the lips line have to rapidly move up and be above other MA lines.
Summary
1)Define the alligator sleeping time
2)Find the moment when lips line starts to move down and below other lines for short and move up and above for long
3)Wait the candle close below/above all three lines for short/long and entry position
4)Exit the position when the lips line crossed the teeth line
This indicator is also has not perfect performance in sole use, but with other indicators it can bring a great profit. We will talk about it next time.
EDUCATION: Volume-Weighted Average Price Hello, dear subscribers!
The next topic is the Volume-Weighted Average Price (VWAP) indicator. The vo;ume based indicators are very significant for full price movement analysis.
Definition
The VWAP is a measurement of ratio of value traded to total volume traded for the particular time period. The calculation formula is represented on the chart. This indicator helps to know whether the market is bullish (price above the VWAP) or bearish (below the VWAP) now.
How to trade with VWAP?
The classic approach to VWAP is the execution long position when the price clearly broke up over the VWAP, the short position - if the opposite is true. The 15 min timeframe is usually used but you can use shorter timeframes, but not longer. The VWAP is not good for the sole use because it generates a lot of fake signals, which need to be filtered with the another indicators. The particular strategy we will examine later.
Summary
1)Set 15 min or shorter timeframe
2)Long when price broke up the VWAP
3)Short when the price broke down the VWAP
4)Use another indicator for entry point confirmation
EDUCATION: Lagging and Leading IndicatorsHello, dear subscribers!
Today we will consider a new education series topic - the lagging and leading indicators with example on EMA and Pivot levels
Definition: The Lagging indicators based on current and historical market data and are used for describing the events which have alredy occured with the price.
Examples: Moving averages, MASD, oscillators and many other popular indicators.
Advantages: The lagging indicators are very reliable and predict the price movement correctly
Disadvantages: Usually give a signal when it's too late and the most of the desirable price movement has already done.
Definition: The leading indicator try to predict the future price movement.
Examples: Fibonacci retracement, Pivot levels
Advantages: Generate the signals in proper time
Disadvantage: Low win rate in comparison with lagging
Lagging + Leading Example
Leading and lagging indicators eliminate the disadvantages of the each other. The example is 200 EMA + Pivot levels.
The long signals generates when the price is above the 200 EMA, which means the uptrend, and when the price faces with the resistance on one of the pivot levels. Thus, the profit is higher than we use only 200 EMA and win rate is higher than sole pivot level trading strategy.
EDUCATION: Moving Average Support LineHello, dear subscribers!
Today we examine another one support line type - moving average support.
Definition
Moving average support line is one of the advanced types support lines. It based on price moving average for any period which can be chosen for every particular case. MA helps to define the trend direction at current moment. If the price closed above the MA for at least ten candlesticks in a row we can identify this situation as uptrend.
How to trade with MA support?
Because the uptrend is identified we cam use the MA and price crossing points as entry points. In our case, when (1), (2) and (3) occurs, the next points from (4) to breakpoint can be used to enter the position. In case of success we will see the price touched and bounced off the MA. In opposite, the price break the MA line down, but the stoploss usage can help to eliminate huge losses.
Summary
1)To identify the uptrend when the price closed above the MA 10 times in row
2)To entry the position when the price touched the MA
3)Fix the profit with it's bounce off the MA
4)Set the stoploss to eliminate the losses in case of sharp price decline
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EDUCATION: Trend Support LineHello, dear subscribers!
Yesterday we considered the simple support line. Today we continue to examine support types.
Definition
Trend support line occurs where the price is in the uptrend and is formed by the lows on the candlestick chart. Next to this line the price is likely to bounce off it because the demand/supply imbalance.
How to trade with trend support?
When we can draw line which connects 3 lows (1,2 and 3 points), the next lows which are lying on this line can be the properly entry points. Also we need to take a stop loss to eliminate the significant price decline effects. According to the chart this strategy would bring profit at points (4), (5), (6), (7) and (8). The first loss would be at the breakpoint (B), but the stoploss level reduce it.
Summary
1)To define the support line by three points
2)To enter the position next to the line
3)To fix profit in case of success
4)To fix a small loss with the stoploss setup in case of support breakout
A simple explanation of money management!Hi every one
Kindly like the ideas if it is helping you and leave a comment
Money management is the most significant part of any trading system. Most of traders don't understand how important it is.
It's very important for you to understand the concept of money management and trading decisions. Money management represents the amount of money you are going to invest on one trade and the risk your going to accept for this trade.
There are many, many different money management strategies. Preserving your balance from high risk exposure is the main objective.
You must understand what the following term means. Core Equity
Core equity = Starting balance - Amount in open positions.
If you have a balance of $20,000 and you enter a trade with $2,000 then your core equity is $18,000. If you enter another $2,000 trade, your core equity will be $16,000.
When you trade without sound money management rules, you are in fact gambling with your investment. You are not looking at the long term possible on your investment. Rather you are only looking for that quick high return. Sound money management rules will not only protect your investment, but they will make you very profitable in your investing future.
Like attempting to lose weight and working out, money management is something that most traders say they practice Money Management but few truly practice. Money management is unpleasant because it forces traders to constantly monitor their positions and to take necessary losses. It is difficult for most people to do that constantly.
This method assumes that you are aware of:
1. The stop loss size of the trade
2. The percentage risk (of your unleveraged cash float), that you want to risk per trade.
The percentage risk method states that there will be a given percentage of your cash that is at risk per trade. Before you know what is at risk in a trade you need two bits of information: the stop loss size for that trade, and the percentage risk that you've chosen in your investment program.
Assume that you chose a percentage risk of 2% of your cash float. If your cash float is $10,000, this means that you want to risk 2% of $10,000 per trade, which is $200. So with every trade, the maximum you would be willing to lose would be $200
With this chosen percentage, it would take you 50 losses in a row before you lose your entire float (50 x 2% = 100%). If your system is a good one, then 50 losses in a row would be highly unlikely.
On the other hand, if the risk chosen was 1%, then it would take 100 rather than 50 losing trades in a row to lose the entire float. The number of losing trades required to lose the float decreases as you increase the percentage risk.
{Forex} {Crypto} money management is a way of life for the prudent investor. Practice money management and you just might be one of 5 out of 100 that will be in a position to make money from {Forex} {Crypto} Trading.
Traders, if you liked this idea or have your opinion on it, write in the comments,We will be glad.
Thank you for seeing idea .
Have a nice day and Good luck.
Collapse of civilization news N°18> Argentina: We WILL win the race to zero. Price goes from a straight line to zero to a sharper straight line to zero 🖨️
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Argentina, that basically has been in a depression for 20 years with governments trying their hardest to help, has now a government that figured "hey what we are doing is not working, let's do more of it". Hi I'm Jarvan I'm helping. 20 years. Government intervention at its finest. Austrian economics.
Closing the country to imports, trying to avoid foreign currencies, stealing the public purchasing power this magic wand is sure to... fail as usual.
As long as plebes are mathematically and economically illiterate, shoot themselves in the leg while voting, this will never end.
Let's go once again see that failed nation beg the IMF for money. "We are once again asking for your financial support".
Kind loving Cristina Kirchner really did a great job finishing that country off. Those social programs really paid off.
Ironically all of the progress made towards helping illegals is useless: They ain't coming anymore, not to that sh thole 😆.
Haha and anyway each time any government tries to fix the country labor unions put their foot down because they enjoy too much living in poverty.
The only thing that can fix the country now is a brutal black death that would cleanse the country from the bottom feeders.
Worked for Europe, ended 1000 years of middle ages and right after it took a hit Europe became the most advanced civilization in earth history, conquered the entire world, and went to space.
Heard Argentina was a great destination for sexual tourism, meet some poverty-stricken labor union worker's daughter (18) that would do anything for 5$ hahaha.
Lazy & dumb people can never win. A way or another people at the top always end up winning.
A comedian said "It took real talent and perseverance to bring down such a wealthy country.". Well done indeed.
> The guardian: "Region belongs to Azerbaijan" - By: Azerbaijan ambassador. Washingtonpost: But Trump thought 🤡
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A testament to the efficacy of the communist regime that did a great job 98 years ago.
The guardian had a letter from the Azerbaijan ambassador featured. Have not seen the other side speak.
The Washington Post had an article about the war "Yeye the conflict could draw Turkey and Russia in but more importantly orange man dumb" and then they link to 150 articles about Trump. They also have articles worrying about the fair place of women in the region, the issue at hand and the violent exchanges are secondary, the big question is "are the men making sure they are putting feminism first as they kill each other". Their words: "Gender action plans must be implemented in crisis zones to alleviate the suffering of women and girls". Yes perhaps while fighters fire their gun while holding their pinky up they can - in the middle of firefights - throw an eye around to make sure the women are comfortable. Make sure this war does not lead to anyone getting a bad bruise.
The media has become so bad. I wonder if they are not trying to accelerate their end, get on their path to learn to code faster.
Westerners don't seem to give a rats ass about the conflict. They'll care when it reaches them and interferes with their useless mundane daily cattle routines.
Contrast this to the enormous importance they gave to the virus and the fear (some young people I heard showered with a mask on 😂).
> France randomly just decided to fight islamic separatism. In particular no child shall avoid school brainwashing 🧟
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France's president is coming with a plan to fight muslims that are not getting indoctrinated by the post-liberal global world order.
Cattle! Get back in the livestock truck!
The pro diversity governement has not mentionned terrorism afaik, nah what worries them is that muslims are not progressive enough.
The president of the surrender country also said that there were too many muslim hoods and this was not diverse enough, the consumers shall not have their own culture and ethnicity, the consumers must be mixed with other consumers, preferably black, and turn into a homogenous group of individuals identified by numbers, then we will have reached real diversity, when every one is the same. This will age well.
> Healthy opposition & criticism: president Trump has coronavirus, the opposition celebrating and wishing he dies 😷
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I think establishment burgerlanders do not like Trump very much. They celebrated Trump getting rona and wished him death, on their beloved brain emptying social networks that have policies against wishing harm to others (these policies do not apply to Trump).
They all loved Trump from the bottom of their hearts a few years ago lmao. "But we're on your side". Ye no one is on their side.
The president that is 74 years old and obese is already out of the hospital to which he only went to to be overly cautious, after 2 days, making the empties that are terrified of the common cold look stupid once again.
> France: hard prison for man that name called jews, creep that raped a girl for 10 years gets a slap on the wrist 🏳️
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I think I am going to leave this sh t hole. Making a bit of money then buying a house somewhere else in Europe or North Africa.
It's dangerous to live here, you could end up in jail for a little joky joke. Surrenders (the population of surrender) are messed up in the head.
Wishing death on Trump gets you a medal, openly calling for the genocide of whites gets you smile, name calling jews gets you years in jail.
Raping a little girl for 10 years straight gets you a 1 year suspended sentence, watching it happen 4 months suspended sentence.
Stupid global world, there is nowhere to go everywhere is a mess. Maybe a small island in the pacific relax while everyone kills each other 🍹😎⛱️.
I have some time to learn arab but it's such a pain I hate learning.
There are .2 guns per person in France, most are old ones or shotguns. Another estimate says 32% of french own a firearm which is high it would be as much as americans (except americans own m16 and rocket launchers)
Funny how everything the national socialists did here was bad but the government OF COURSE THEY DID kept around their anti gun rules.
What? The french administration supports national-socialism?
> 2020: Kyrgyzstan population storm presidential & parliamentary swamp building and free the ex-president 🔥
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I predicted this lockdown to justify mail in votes would lead to a lot of unrest and conflict and bingo!
Here is one more: the population of Kyrgyzstan peacefully protested and peacefully stormed the castle, then they peacefully liberated the ex-president.
The electoral commission has cancelled the contested election result. They are draining the swamp lol.
Maybe WW3 soon. Turkey has rightly pointed out that the international community 🎪 has achieved nothing in 30 years of whining and participation trophies and being nice (regarding the armenian ethnic region located inside another country thx Stalin).
Stunning and diverse Los Angeles is populated by some Armenians - they are way more of them outside their country than inside - and they have taken to the street to protest the unfair media coverage. Maybe Kyrgygz are next?
Wonderful brave and stunning multi cultural extremely rich in diversity West Europe, Canada, and USA are going to have a great time when the 1000 tribes they welcomed on their soil start fighting each other HAHAHA this sh t fest is going to be AMAZING !
I recommend changing your desktop wallpaper if you have not already. Look for "Burning City Backgrounds".
Remember 1945 when the USA & European powers grouped and went for globalism liberalism and diversity "to make sure the dramatic events of the 20th century (caused by nationalism) never happen again".
Maybe after the world recovers from a global civil war mess the governments will agree that "never again" and all become ultra nationalists and make sure all of their borders are closed "to make sure the dramatic events of the 21st century never happen again" HAHAHAHA IDIOTS!!! And then we'll make sure the "dramatic events of the 22nd century never happen again" and then we'll make sure the "dramatic events of the 23rd century never happen again" what a circus 😂♟️
🍿🍿🍿🍿🍿🍿🍿🍿🍿🍿🍿🍿🍿🍿🍿🍿🍿🍿
The financial world different market participantsHolding periods are at record lows and people are whining about it. Time to talk a bit about who participates in the market.
1- Liquidity
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Something like half of the trading volume is done by specialists & HFT firms as well as a couple of scalpers which is a name for retail traders that hold for a few minutes to gracefully provide liquidity to real traders.
It is not something "shocking", investing requires market makers as intermediaries and an exchange or at least reputable liquidity providers (banks, I said reputable not honest) as well as some rules, and derivatives trading has had this - or most of it - since at least 1750 BC.
Yes, HFT are pigs and have no shame front running big funds or sniping day traders which is a name for another group of retail traders, but back in the "floor" days they did just the same, today everything is electronic and smooth, costs have gone down, reactions are better etc.
Algos have caused big crashes, so let's hope man does not lose control and we do not end up screwing the markets that we need with technology.
1 issue with HFT is they are undercapitalized, the head of global markets research at Goldman Sachs says they are less capitalized than just 1 major bank. This causes them to aggressively adjust their bids when the market price drops. Back in 1987 human specialists had to beg their banks to give them more money to buy during the crash or the entire world would collapse. You should be able to easilly find an interview of Tom Sosnoff about it.
I wonder what would happen if this happened today... The FED in hindsight would print infinite money and give it to hft?
The players in this categories are various market makers that we call HFT, as well as to a much lesser degree a few retail traders called scalpers and front running algos.
2- Intraday
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This, if my sources are correct, represents another 30% or close to 30% of stock volume.
This had a boom in the 80s and 90s, and again recently with crypto and now tech stocks.
Most of the people behind this are brokers that spend alot of money to acquire new clients.
"Educators" or "influencers" that refer new suckers to brokers get paid up to hundreds of dollars per client (I should have just done this rather than tryhard).
The amount of quant funds infesting the market AND the success they have is directly correlated to how much retail traders (especially day traders) are around and also how much money these day traders are losing.
You could say they are all day traders but this should be divided in 2 groups: the technical "day traders" which are all retail, and the professional "quants" that abuse day traders. The biggest quants that made big money are Jim Simons & George Soros quants from the 80s and 90s as I said technical analysis and day trading were very popular.
Might have wanted to keep that for myself idk. Bah no one cares.
2 major groups: Day traders & quants. Also much more rare penny stock pump and dumps can be included.
3- Short term participants (days to weeks)
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Once again, alot of the money being extracted here comes from retail investors using random strategies called technical analysis.
> Pre rolls.
One group of participants that exploit flaws on very small timeframes (days) are all the pre-roll strategy investors.
They exploit commodity ETFS that all lose money over time and have to sell their 1! positions at fixed times to then buy on 2!
These funds regularly blow up, and lately the Oil fund USO was in the news because it became so big the regulators made it diversify its oil position, what got it so big is a very big supply of dumb money getting all excited at very low Oil prices thinking it was free money (below $20 then below $10 then even negative).
Professionals that use these strategies made hundreds of millions from both dumb ETF "investors" as well as retail swing and day traders that jumped at the opportunity to get ran over. Alot of these profits/losses are actually being covered by Interactive Brokers of which dumb clients turned a few hundred thousands into decamillion losses. And they are a prime broker with a barrier to entry (2 years verified experience and $10000 in capital).
As usual regulators, after alot of dumb money got hit hard, started an "investigation". USO suckers lost tens of millions months ago, the profit has been taken that's it, but they do not know it yet. According to Robintrack, most retail investors 6 months later are still bagholding what was supposed to be a quick swing trade.
Pre-roll traders will sell on 1! before the ETF sells and also buy on 2! before they buy, and sell after the big operation moved the price.
In the case of the huge Oil crash, fund traders bought before the price collapse and ended up buying back from idiots that "bought cheap".
They made money not by "crashing the price", they made money by holding their winners while dumb money was underwater.
This dumb money is actually fortunate that there were short sellers to buy from them so close to expiry.
I am not sure regulators with their "investigations" understand this simple concept.
From the website etfdailynews:
“I make a living off the dumb money,” says Emil van Essen, founder of an eponymous commodity trading company in Chicago. Van Essen developed software that predicts and profits from pre-rolling. “These index funds get eaten alive by people like me,” he says.
Quick! Investigations! "The trading house is now the focus of investigations by regulators on both sides of the Atlantic, Bloomberg reported."
markets.businessinsider.com
Stupid morons. And there's never investigations when "stonk price go up" or when dumb money gets lucky (making them confident and about to lose big). Remember Wirecard... No investigation here. Gee it really blows my mind just imagining the incredibly mind-bogglingly moronic less-than-human mouth breathers that come up with these "investigations". Can't wait for Bitcoin & Tesla investigations.
> Trend Followers.
"The trend is your friend". "Just follow the trend this is what good boys & girls do". Did trend following get to people heads. It was very popular in the 80s & 90s. Some famous trend followers made gigantic returns exploiting dumb money (not sure all of them knew it).
Trend following was the holy grail at the end of this period and even to today (people have slow brains or something), but it has not - or barely - worked for the last 20 years (all of this is about to change imo thought).
Today the holy grail is index passive investing , who is making this possible are central banks, and the suckers are honest hard working americans that lose purchasing power while passive investors get fatter.
One of the most famous trend followers is Richard Dennis, which in the 70s to 80s turned $1600 into $200 million, in about 10 years.
I doubt he had a clue what he was doing and I think it was both lucky timing and lucky with randomly using the right strategy.
After making big gains he was really excited and thought every one could make money with no brain (money grows on trees as we all know).
"Wow making money is really easy". Typical Dunning-Kruger, except his peak of mount stupid lasted way longer than for other people.
He got rekt in the late 80s, got back in his feet and made some profit in the 90s but much less (and never thought of trying to learn something new).
Then after the 2000 bubble exploded he just lost money and disappeared. He is probably selling courses now.
The sort of general way it all comes together over a period of a few months or years with medium term funds, trend followers & quants versus dumb money:
Here is an example from investopedia with sugar:
Those are big returns in just about 3 months.
A quote from a quant website.
"CTAs by being patient trend-followers took advantage of the random methods of chart traders and profited at their expense. Some that are new to trading are not aware of the frenzy in the 90s about intraday trading mainly financed by brokers. Systematic traders took advantage of it and made large returns. But after the random intraday and swing traders were driven out of the market, CTAs have had problems generating returns. There is scarcity of retail dumb money at this point."
The 80s & 90s were the period where George Soros and Jim Rogers made monster gains in commodities too.
George Soros kept making big profits after that period, Jim Rogers has not.
Since 2000 trend followers have been suffering.
I got into trend following a few months ago it is going all right. It is making a comeback imo, but I do not think it will last long. It might, we will see.
I trust myself to be able to adapt. When this stops working I also have my strategy I have been exploiting for years. If both stop working (unlucky) gee well I'll adapt, SOMETHING ought to be working. I'll survive. I mostly do what I do with Forex thought and it is a different world.
If trend following does not work just go for reversals 🤦♂️
It's so lame to get famous and get the glory but you were actually bad and you end up losing and have no clue why and just end up selling books and trading courses 😂
So on the short term we got retail swing traders that use random strategies, fomo gamblers, and the systematic trend followers & pre-roll people that abuse them. Also hedgers, and a couple of short term hedge funds that probably do not make money on average.
4- The medium term : Around 1 year
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I heard hedge & mutual funds had median holding periods of 9 to 12 months, I also heard they had holding periods of 17 months.
I will assume this is not counting the losers, especially if they have a low winrate, that would mean a TF much below the reality.
Retail is completely absent here.
There are various strategies. "Strategic" stock picking. Bull bias, bear bias (on the market in general, so they are looking for stocks to buy, or to sell). "Short sellers" (Enron, Tesla, ...).
Hedge funds also exploit random day & swing traders and made big profits in the 80s and 90s then last 20 years as retail investing declined have made less, but hedge funds did not go from 100 to 0, it is more tame than trend followers.
Recently some hedge funds have struck gold. Bill Ackman made 100R ($2.6 Billion) when the S&P crashed after coronavirus lockdowns.
He made big money with price go down, so of course really dumb people cried and accused him of dricing down the price during a CNBC interview ("spreading FUD") probably soon investigation and bla bla bla.
Where are all the investigations when some clown says that Tesla is a revolution and going up 1000 fold? Where are the investigation in Max Keiser saying silver and later bitcoin would rule the world? "Oh no no need for investigation when price go up 🤤"
5- The long term: 10, 20, 30 years
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2 categories:
- Private high net worth. Value investors like Warren Buffet, Charlie Munger, even thought they run a company, an example of a private investor is Phil Town which has a youtube channel and writes book he is not very famous but ye that's a private investor why would they be famous? Should they take a megaphone and shout their net worth on the top of buildings?
- Bagholders: Can either be retail investors that thought "Buy & Hold" meant "Buy garbage & Forget", I doubt they are aware 96% of US stocks go to zero, well 100% on a long enough horizon but we are looking at less than 3 decades here. Or can be day & swing traders that bought something stupid (USO, Bitcoin...) and refuse to cut their losses so they turn their gambles into long term bagholds. Bill Ackman is a famous bagholder, when he is wrong he is SO WRONG and he just keeps on holding his bags all the way to zero which is really crazy. Warren Buffett early in his carreer has been on rare occasion been a bagholder, what he calls his worse mistake cost him according to himself at least 100 billion, he just kept trying to get that textile company to be worth something. The company Warren Buffett bagheld is called Berkshire Hathaway.
Buffett actually rarely holds for more than 2 years, and half of his purchases are sold under 1 year. He has a 100% turnover!
From the paper linked below, "we observe a median holding period of a year, with approximately 20% of stocks held for more than two years. At the other end of the spectrum, approximately 30% of stocks are sold within six months."
papers.ssrn.com
So he loses (or breaks even sometimes perhaps) 80% of the time. But when he wins... you know... 150R.
Important: if I got this (didn't read the whole thing) they only looked at what was in his quarterly fillings!
Who knows what grandpa B bought and sold within weeks!
It is very hard to find what stocks Warren Buffett quickly exited without going over quaterly reports, every one touches themselves at his returns, wants to know what he holds to copy, looks at winners which is almost useless but out of tens of millions of die hard fans it's like not a single one gives a damn about looking at his cut losses, due to low IQ.
It is truly mind boggling that over 90% of retail investors just transformed LOOK FOR GREAT COMPANIES AT GOOD PRICES, BUY AND HOLD WINNERS, into "Never surrender never give up just buy absolute garbage down 90%, buy and forget, hold the bag to zero over the long term it will eventually go up".
You could literally tell them exactly what to do they'd end up losing all of their money and dying of food poisonning somehow because they are handicapped.
Buffett holds for 7.5 year on average (or he did in 2010), with 80% of stocks held for less than 2 years, and 20% held for more with a couple held for several decades. He ain't holding for 50 years or a century.
6- The very long term
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Big pension funds, insurance funds, sovereign wealth funds, mega bagholders (owners of ponzi shares held those to their death dreaming they would magically regain value)...
The big, big, BIG boys. They do very little volume in markets because they rarely participate, but when they do they move entire markets.
They move alot of money at once, and while random retail traders & quants do big volume day after day, they mostly cancel each other out.
The over 1 trillion dollar "NOK" fund owns 1.5% of world shares, and when they do something you can feel it. Socialism (they are not really socialist but whatever) works really well when you have immense wealth. Over 1 trillion for 5 million inhabitants.
They hold 2.6% of EU stocks and "only" 1% of american stocks. There is talk that they may sell EU stocks to buy NA holdings, mostly USA obviously.
"Norway wealth fund may move $50 billion into U.S. stocks from Europe"
www.investing.com
That would really help push the price up and help jump start a bubble.
50 billion is just a small adjustment for them.
"The central bank has said its advice was not based on any particular view on future return in individual markets or regions."
They don't really care. They are trying to preserve the country wealth and are just doing small adjustment ("small"). They hold forever.
"The minority centre-right cabinet of Prime Minister Erna Solberg must seek approval from parliament for any major strategic shifts at the fund, a process that could take months to complete and which may involve making compromises."
No day trading here...
I am old why am I focussing on Norway...
Those are the current biggest wealth funds (made of 1 or more funds for the country) in the world:
China 2,250,000 million usd - Origin: their bags come from sending free goods to fat americans. They believe they will get something in return.
UAE 1,350,000 million usd - Origin: Oil & Gas. Hehehe a few months ago I remember an idiot telling me arab countries were poor 3rd world countries.
Norway 1,100,000 million usd - Origin: Oil from the sea. Crossed 10 trillion NOK recently I think. Their children have their future covered.
Saudis 900,000 million usd - Origin: Oil from the sand. During an interview the wealth manager Yasir Al-Rumayyan said he wanted to grow it to 2 trillion. Future gambles to take advantage of?
Those were the big famous ones. Then you got Singapore, more arab countries... The USA have a (LOL!) 200 billion wealth fund (and 30 trillion liabilities). Talk about a pyramid scheme.
If you look at the biggest fund from any source by AUM who do you have at the top?
1- FED - 7,000,000 million usd (but really you can just put an infinite sign here)
2- BOJ - 5,200,000 million usd bigger than the US one relative to population what a scam
3- PBC - 5,150,000 million usd biggest baghodlers in the world (I'm just kidding don't cry China)
Then you got plenty of multi trillion US state owned funds (sounds pretty communist to me, I wonder why they are pushing the price up at the people's expense), Japanese megacorps & banks, China communist groups/banks, European banks. Some middle east holders of course. And then a grand total of 0 african country is present in the top 100.
Banks really dominate the world. They hold all the capital.
It would be a real shame for passive investors & tiktok robinhood holders if the US communist funds that hold over $10 trillion were to liquidate their assets to cover the US foreign liabilities (China) and to pay for social programs wouldn't it? A reaaaal shame 🙃
What is this? I am feeling tingles. Team Biden! It's just a shame they have all these toxic ultra racist, anti business & anti family views.
Quick! someone tell the clueless socialist woke crew the US are holding trillions that could more than cover their student debts and social programs!
Special mention: Blackrock is the world largest asset manager overseeing more than 7 trillion. And they work hand in hand with the FED.
Trader/Investors must understand this process.......!Kindly comment with " Yes " for agree and "No" for disagree with this post:
Before the break-out, I've informed that " Breakout will give truck of Money. ..!". Exactly, we seen this statement was TRUE, didn't it? (End of idea link is added about this idea)
Let's talk step by step was happened here.
The Width of congestion area was equal to height of the price surged.
From my personal experience and the survey/observation I'm talking about this is almost the same area as price congestion in size of width and height after the price break. Let's try to explain in another words:
Horizontal width of congestion size = Vertical price move after break-out. (Generally, i noted that price moved away so far after breakout whenever congestion area is much longer.)
--> Let's talk little more deeper about CONGESTION area:
In the congestion area, accumulation or distribution process process. We will talk about accumulation only because, this was happened here.
Accumulation : smart money, money makers, huge fund-management, landlord of global investors whatever you called them they grab/connecting instrument(stocks, currency,etc) from retail investors in very slow motion because, they can smell insider upcoming news. After the completing this accumulation, news clear and price start to go away from the breakout area.
later i will try to explain you more deeper about it practically. Yes, obviously we can smell the process accumulation/distribution.
🏆 GOOD ALWAYS TRIUMPHS OVER EVIL 🏆IT'S NOT AN EDUCATIONAL POST,☝🏻 although, the message is teaching from it!🤲🏻
⚡ Guys, I'm not here to make money, I'm here to gather interesting people near me, to publish ideas for successful deals. ⚡
There are a lot of wonderful people here. REAL PEOPLE who have good knowledge and experience that can help many traders, especially beginners!
👀I’m here a little less than a month, but this month:👀
😡 I received a lot of messages in the PM asking for mutual likes (I’m not an angel, I can also just have people who follow me if they like ideas, give me likes. But that's not always case)
😡 some accounts from the top (not all, but I can analyze well) has a tendency to attract attention: put likes, and then pick them out
😡 you can see how the great ideas of the guys are ignored, and many ideas that gain 300-700 likes have no meaning at all.
✍🏻✍🏻✍🏻✍🏻Guys, why am I writing that's all ??? Those who doing this, they can be understood, they are trying to make money.💰💰💰💰
🙅🏻♀️They don’t want to offer quality, they want to deceive the audience ... let it go!
🏆 GOOD ALWAYS TRIUMPHS OVER EVIL 🏆
My message is for you, my dears. You need to thinking, learning, developing, analyzing, don't let manipulate you!!!
♥♥♥♥♥I love you very much!!♥♥♥♥♥
Your Rocket Bomb!🚀💣
A GREAT EXAMPLE WHERE PRO TRADERS DOWe do the analysis and we have reasons for entry. But what priority is your money management system. I being honest with my trade and analysis. Pro traders have a ratio where we put our stop loss and take profit. This trade is actually a good trade because we follow the system even it hits sl. At the first place, before we predict the market, we agree how much we want to risk. But for new traders, they don't understand because when the time goes by they start to lose their confidence in the trade when at the first place they already agree how much they wanna risk their capital. Hope this teaches you something.
Watch my previous post about this analysis of this pair.
If you Agree, hit the like button and follow me to see my opportunity to buy or sell in the market.
Keeping the trade simple, even it's super simple, as long as you understand what you are doing then take the risk to gain.
Priority:
1. Stop loss must smaller than your take profit.
2. Must at least 2 reasons why you enter the trade.
3. Trade and Forget.
Psychology:
1. Not all setup is valid, its fact.
2. Trading is predicting the market.
3. The only way to win in Forex is by controlling your lot size and your risk to reward ratio.
4. Sometimes when the price hit your stop loss but you still follow your SYSTEM, its still a good trade. READ IT AGAIN!
Apr 15
Trade active
xauusd new updatewhat I am looking for is for a sell move, I believe that the price should go down before it goes above the 1600 level. entry point 618 level of the mini-trend. I'll take entry with good rejection confirmations. Tomorrow is NFP we can expect it to fall but let's see what will happen.
Goodluck