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The current state of currencies, and what needs to be improved"The root problem with conventional currency is all the trust that's required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust." - Satoshi Nakamoto 1. Accepted Government Fiats (Majors): 10/10. Businesses are required by law to accept the country currency, and problems are extremely rare. When moving, currencies can easilly be traded between each other (Majors, with some countries it gets more complicated). Crypto (Bitcoin): 1/10. Some businesses are accepting it. Very few. Businesses are not very eager to accept it because of low score on other factors, in particular (4). Gold & Silver: 1/10. Currently not very accepted, but if end up in a foreing country or international waters you could negociate... You'll enbd up paying double thought. ==> Dependant on the law and also other qualities on this list. Crypto can score 10 here. 2. Elasticity - Perfect scenario: is usued/created in parallel of GDP growth, and contracts when people borrow too much (or gdp goes down) I think this is the main reason why we have fiats everywhere today. This feature is absolutely indispensable (and fiats make it easy). Governement Fiats: 3/10. It's not expanding and contracting as the economy needs, but as the incompetent central banks want it to. Short version, it's just really handled terribly. It could be done right, but it is not. At least the economy is not frozen because of the currencies limitations. Crypto (Bitcoin): 0/10. I can't speak for all cryptos, but clearly Bitcoin is absolute garbage here. The supply is limited and that's it. Hard limit. And it's not like we only mined 1% and could ignore this. Issuance is not dependant on the economy at all. If GDP triples, there won't be 3 times as much Bitcoin. Bonus negative consequences are that people have no incentive to spend any... Just "hodl" and make money for doing nothing. It's just objectively so bad. Gold & Silver: 5/10. In a scenario where mines are highly regulated/controlled, a central authority could mint or store based on the economy need. But we all know how it always ends up... They are going to use their reserves or mine more to finance a war, or just because they got bored like the FED... ===> Perfect solution here would be a free market... With traders buying and selling the currency based on gdp. It can be issued based on the free market data for a year or something. A cryptocurrency, sure, imagine. It could have in its code this incredible feature, and the blockchain code itself would mine the right amount of coins based on the market/GDP info. Someone tell Craig Wright to do this! 3. Transportable Government Fiats (Majors): 9/10. Pretty good for this purpose. Million in cash will be complicated. Electronically it's ok, banks will do it rapidly enough. Crypto (Bitcoin): 10/10. Pretty much as perfect as can be. You can transport any amount anywhere as long as they have an internet connection. Gold & Silver: 7/10. Large amounts can be transported. 50,000 usd hold in a small gold bar the size of an iphone. For millions you'll need a bank and move it electronically. 4. Stable price (including inflation) Government Fiats (Majors): 8/10. The price is not so volatile it's impossible to use but the central banks are prone to suffocate people. The US central bank was created to prevent government from hyperinflating their currency (for example printing money to pay for a war), and it is better, but there is room for improvement. Right now central banks are printing imaginary money, as well as buying stocks, the FED has a 4 trillion balance sheet, which had the result of rendering the 90% absolutely broke. And the 10% are wealthy as ever. Over the long run, in the case of the US (this is the chart I have on tv), we see that inflation has not outpaced real gdp much. Can be improved, but it is not too bad. The pound which is 400 or 500 years old has done well for all this time. Most majors are ok here, not sure about the recent euro. Crypto (Bitcoin): 0/10. Well... Obviously. The main selling point of Bitcoin "to fight inflating currencies" is its main weakness. US "real" inflation means the usd only lost 35% of its value over 61 years. Bitcoin is down 52% from its high less than 2 years ago (no need to inflation ajust here, impact is tiny), and regularly loses 35% of its value in a day. Gold & Silver: 9/10. Historically have kept a rather stable value while they were used. Value dropped hard a couple centuries ago when the spanish introduce a huge supply of new world gold to the old world. We are NOT suddenly going to start mining incredible amounts from asteroids and the ocean. That argument is beyond idiotic. People need to stop watching star trek so much. I only mentionned this to laugh at the expense of the clowns that use this argument. 5. Durable: Doesn't rot, rust or evaporate. Government Fiats (Majors): 9/10. Paper money can get used, but you can change it, old notes get destroyed and new ones get created. Plus electronic money doesn't perish. All good. Crypto (Bitcoin): 10/10. As long as there is no hack or bug of course :p Gold & Silver: 10/10. Last for eternity, never has any issue. 6. Economical (to create) OR inherently valuable. Government Fiats (Majors): 10/10. Infinite amounts of money can be created out of thin air at nearly no (direct) expense. Crypto (Bitcoin): -1/10. 0 fundamental value unarguably (I don't even know how anyone can argue this). While creating them is more expensive than what they sell for, in 90% of the world. And as the price fluctuates this gets better or worse, usually worse. When the price goes down miners lose (unless they shorted), when the price goes up more eager new miners get excited and push the price of mining up so miners lose again. Gold & Silver: 5/10. Actually gold is "overvalued". Its value as a commodity is not that high compared to the price. I don't really know about silver. So here it's meh. Salt probably outscore this. 7. Homogeneity All 10/10 here. 8. Divisible Government Fiats (Majors): 9/10. Can be divided down to tiny fractions. Electronically there is virtually no limit. Crypto (Bitcoin): 10/10. Absolutely no limit. Can be divided infinitly. This is absolute perfection here. We cannot innovate further. Can't divide more than infinitly to any number wanted. Gold & Silver: 7/10. Coins or blocks or electronic value at the bank? It's not that bad but far from perfection. Historically the maleability and ease to mess with made those pretty good for this, but far from perfect, and we can now do much better, we reached perfection. 9. Supervised There has to be some sort of regulation, some way of printing the right amount. As well as a body being able to take decisions when there are conflicts or uncertainties. Also to lend money and fix interest rates. Control a country or countries debt. Controls financial institutions, in particular banks. Government Fiats (Majors): 5/10. Central banks overdo it and suffocate every one. They are so incompetent. Yikes. Pumping the stock market and creating alot of anger hate and a political divide in the world. They may single handidly create world war 3. Maybe I should score this -10/10. Crypto (Bitcoin): 0/10. Beurk. Alot of cryptos are using "smart contracts" and this may be a step in the right direction. But of course it is missing a lot. There could be a scenario here where the economy gets killed by its Bitcoin currency. Bitcoin could be regulated and everything but there are limits. It's built in as a feature to be totally lawless. No one can guarentee the money borrowed will be paid back. No one to act in case of an emergency. No central authority to lend money to money lenders & also set rates (so oligarchs will lend money at the rate they decide just like in the 19th century and the world will be their slaves with no light at the end of the tunnel, or during germany just before the NAZI). On this aspect, Bitcoin is one huge pile of excrement. Gold & Silver: 10/10. Price is dictated by the free market. I love this! Jk I don't know tbh. Depends who controls the supply and regulates it. 10. Scarce/Difficult to counterfeit. Government Fiats (Majors): 5/10. The numbers in banks database can't just magically appear right? Notes can be counterfeit if the person accepting them isn't paying much attention. Doesn't happen that often. To remedy to this rather poor attribute here comes the justice system, countries are threatening to punish those that do counterfeit their currencies. Crypto (Bitcoin): 10/10. Unless you are stupid enough to buy "physical bitcoins" from "some dude" on the street, Bitcoin scores 10 here. Gold & Silver: 6/10. I guess you can make fake precious metals, maybe some iron bar coated with gold. For big amounts people will check... It's not considered most important, and currencies are able to function even without scoring perfectly here. Still... really not that great to not be at 8-10/10. 11. Easily recognizable: No slow weighing etc. Government Fiats (Majors): 8/10. It's easy to recognize. The problem is it's not easy to be 100% sure you aren't getting scammed. Crypto (Bitcoin): 10/10. Instant. Not much to say, Bitcoin is perfect. Gold & Silver: 7 or 8/10. Same as fiat. With coins it would be easier maybe. Someone comes to a random person with a gold or silver nugget they might not immediatly recognize what metal that is, mistake silver for iron or palladium :D So maybe 7. 12. Secure Government Fiats (Majors): 5/10. Hard to score this. If you got cash in your pocket it's as secure as you make it. If it's in a bank it's secure enough, but far inferior as with cryptocurrencies. Crypto (Bitcoin): 9/10. I'm not going to give a 10, because the whole network can be crashed and everything lost. There is no central authority making backups of the blockchain :) Other than that it's as secure as can be. Gold & Silver: 5/10. Your gold nugget can be stolen easilly. If it's in a bank vault it can't. Depends on you to protect it. 13. Cheap, quick, and easy to use. Government Fiats (Majors): 9/10. Electronic or physical payments are cheap and rapid. Crypto (Bitcoin): 0 to 10 /10. Depends on the tech. Right now... If a few people start using Bitcoin fees go up to $50/tx and take forever... If half the planet started using it fees would probably be in the millions and tx times would be what? years? Absolutely ridiculous. Tech itself is limited. Bitcoin just cannot be used. Gold & Silver: 8/10. There might be some weighting required. With electronic gold or even coins, it's pretty fast & simple. Conclusion: Countries fiat is usuable, barely. It's just not good enough. We have to get rid of this degen money printing, there is a little too much inflation but that's not that bad. It could be used as is, as long as the central banks are limited. That's the main issue. Central bank is doing too much, and in particular too much bad things. They have to stop trying to FORCE the economy to go up. Free to operate Businesses, Innovators, Financeers, and Global Trade are what makes an economy go up / create wealth not some out of touch bureaucrat making idiotic decisions to try and FORCE innovations somehow sdknjfsdfksdhjfsdkhj - having a stroke - IDIOTS. It's unbelievable how stupid they are. I just am amazed. Did I land on planet of the apes? F sake. Satoshi got desperate. There is reason to be. If the central authorities were doing the job right, then current fiat currencies are actually not that bad. Of course, they can be improved on certain aspects. There is room for innovations to make it better. One of Bitcoin bears main argument is it is no fundamental value, it is made out of thin air. But it is a wrong argument. It has 0 relevance if a currency has value or not. It's purpose is not to hold value but to allow transactions (paul has rice and wants oranges peter has oranges but wants phones...). Bitcoin is near perfect or even perfect in terms of security divisibility durability transportability... Bitcoin scores very high on some aspects, and terribly on other ones. You do not make an average score and go "oh that's good enough". It absolutely HAS to keep a minimum score on all aspects. It's like it cures your broken finger by chopping your whole arm off. It's just ridiculous XD "The more people know about Bitcoin the less bullish they are on it". Yup. Precious metals are ok but we can do better. Going to be very complicated to have elasticity. Does an international government control the supply? Each country with gold mines? Doesn't seem viable to me. Best bet is a central bank fiat/electronic currency with rules that make sense.
Education
by MrRenev
5
What is an Hard Exit ? and a few notes on trading managementHi everyone Today I'm traveling so can't really share a script because A) it's not coded B) I'm tired C) no inspiration today so instead, I'll be spreading a bit of wisdom (if I may call it like that) I see a lot of traders out there solely depending on two main signals to exit a position : 1) A signal in the opposite direction 2) A stop loss to exit a position (fixed, or trailing) Those two points are a very good practice but what if you could exit a position before "sh*t will hit the fan" (pardon my french). For instance, you enter a trade, you see it's going against you, you're down 2% and your stop-loss is only a few % more away. Thanks to your experience, you know that when one of your trade goes down below a given threshold, it will wreck (= rekt in crypto terminology) you even deeper with a high probability. Obviously, sometimes it will, sometimes it won't and you'll never figure out the right stop loss level to handle all the edge cases... Let's now introduce the concept of a hard exit . What is it exactly? In short (no pun intended.... actually yes it was...), now thanks to your experience, you know that whenever a given indicator gives an opposite signal, you'll have to exit your trade if you don't have a positive trade balance. If positive, you know, that you should either set your stop loss to breakeven (entry-level of your trade) or exit it completely. When such a scenario happens, maybe sometimes, it's better to exit a trade completely when you have that signal before going to bed... Hands up anyone who took a trade before sleeping, thinking they'll wake up way richer and finally discovered they got margin called? or lost way too much money because their stop loss wasn't hit because that mean broker decided to use the "SUPER WRECKING SLIPPAGE" function to go beyond your stop loss... Your stop loss is looking at those candlesticks going above and doesn't understand what's going on... The example in the screenshot is very interesting. Let's assume a very simple strategy using the supertrend. When it's green, we go long, when it's red, you go..... (finish it) You noticed that the MACD Zero Lag will often allow you to exit the position before your stop loss will be hit and before the trade will go in the opposite direction. Sometimes, it won't save you any $$ doing so... but most of the time it will save you a few % of capital per trade and this will add up very quickly. (imagine saving a few percents or capital per trade multiplied by dozens of trades) I'm not advising to use the correlation between the Supertrend and the MACD Zero Lag here. This is just an educational example :) Warren Buffett said this: “Rule No. 1: Never lose money. Rule No. 2: Never forget rule No.1”. We all believe we're smarter than the average but 95% of us is losing on the market... this doesn't add up :) 95% is losing... let that sinks in. Does it mean that most of the things you read on Trading Twitter about guys taking leveraged trades and waking up with a brand new Lamborghini might be a fake story? (rhetoric question) Am I saying that you should close your trades before sleeping if not already winning? (rhetoric question again) "But sir I'm sure of those trades, I know the market, I'll be promised to go to the Valhalla by John McCaffee if I hold this XVG, XRP and TRX positions" (no one actually told me this that way but that's what I hear when someone finds reasons to keep losing trades overnight/over weekends) Those people generally have a plan in mind and they want to stick with it. Either because they're scared to exit and to see then their trade going in the desired direction... or because they're too stubborn. And even then, if you have a system giving you a few signals and you count on each of them to pay your rent.... you're doing that trading thing wrong my friend Either way, you have the choice between not losing or risking to lose big but maybe winning when you'll wake up. The best traders I know constantly doubt, optimize their strategies but never assume the market will favor them, not even once. However when they see a great potential profitable setup with an amazing Risk:Reward, they know that's with those trades, they'll have to go real BIG (betting the house, the wife, the kids, the car, ...) but certainly not with the already losing trades and hedging before sleeping ... (who...came up with those expert advisors using martingale during sleeping hours...very dangerous... ) If you wonder who I am to give all those lessons and scripts. I worked in a bank alongside traders for years, and I saw hundreds of traders/investors losing everything and I mean they lost more than their trading capital. This is truly sad because trading is a psychological game between you and the casino (market). We surely have more hedge than playing cards in a casino for sure thanks to technical analysis and that's why I got so deep into TA 6 years ago, made it a full-time job in a bank and learned everything I could to secure my trades/investments and become an emotionless machine when trading. That's why I made the Algorithm Builder, to remove most of the psychological aspect. This made my own and my clients' trading way more enjoyable. More to come about it tomorrow or the day after. Wishing you a great end of your day Dave ____________________________________________________________ Be sure to hit the thumbs up - I'm an officially approved PineEditor/LUA/MT4 approved mentor on codementor. You can request a coaching with me if you want and I'll teach you how to build kick-ass indicators and strategies Jump on a 1 to 1 coaching with me - You can also hire for a custom dev of your indicator/strategy/bot/chrome extension/python - if you like my work and wants to buy me some coffee : - BTC TipJar: 3MKDve7stWTe1io99oFxeQXvP8XB4zCQ8m - LTC TipJar: MC5oeBAhw9BLqyi65TR3J1Lid8io9uHADw
NASDAQ:AAPLEducation
by Daveatt
11
Free money - but not easy money!This educational post shows how exploiting trends can deliver profits in the long term, by living for the big trends. This is a no-targets system that uses the ATR. Trend switches define entry positions and the markets decide exit positions. Scaling-in of position sizes is an advanced higher risk technique. Those lacking experience and with small account sizes should stay far from it. Trading is not easy. If it was then everybody would be doing it and making millions. About 80 to 90% of all traders consistently lose money. Shocking but true. Even in showing a purely mathematical system, there are unseen limitations in the backdrop. What's that? The key defining limitation is 'YOU' and your individual psychology. Risk - or the sense of risk - how 'you' manage that, is mostly about psychology. Even when mathematical reality becomes unarguable, there is still the psychological issue about 'being convinced'. Not everybody is convinced by what is exquisitely mathematical. Please note that I've only used a 60 min time frame on one chart for illustrative purposes. This is not a tutorial. The skill involved in anticipating where trend switches are more likely to occur is not something I can teach or intend to teach (even for a fee). I do not accept fees and never make any offers of deals to anybody - that's my 'mathematical constant'.
Education
by Captain_Walker
The SMA cross strategy In this educational idea I’ll cover the SMA cross strategy. I’ll will cover how it works, what my peripheral values are and how it can work for you. The Simple moving averages cross strategy is a strategy where you buy something on a buy-signal of the indicator and sell it on a target, for example if you had 5% profit. What is a moving average? A moving average is an indicator which helps you smooth out “noise” in a graph. The indicator is based on a formula you can find the formula below. You can add values to the indicator, let’s say you want a MA of 9 candles you just add a value of 9. You usually use more than one MA, I prefer using a 7 candle MA and a 25 candle MA. The thing I like on moving averages is that you can use them in any time frame. What is a buy signal? A buy signal is created when the long moving averages (in my case the 25 candle MA) gets underneath the short one (in my case the 7 candle MA). When that happens a buy signal is created. When the opposite occurs it’s a sell order. How to determine a target. Your goal is to make money, but how can you make as much money as possible with this strategy. You have to determine a goal, so an exit-position. Your exit-position is the hardest thing of this strategy, but you can use an average of what happened before. If the average of positive “breakouts” is for example 5% profit you can use 5% profit as target. How to use a SMA strategy to make you money. Not all the SMA crosses will lead to profit, most of them are even false “breakouts”. So before you buy something on a buy-signal you have to wait a few seconds and watch what the price will do, when it goes up you buy, when it does nothing of goes down you do nothing. If you want to make money using this strategy you have to set a stop-loss, I recommend to always set a stop-loss not only for this strategy. You can keep your stop-loss really close to your buy order. www.investopedia.com():max_bytes(150000):strip_icc():format(webp)/latex_b8b977c06a4bf64591506c2bd9e918c6-5c474c25c9e77c0001d3b0e9.jpg
Education
by The_Prince
1
Creating your own Trading StrategySELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY Creating your own Trading Strategy "In finance, a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets".Whats your Trading Plan/Strategy? Some of the questions you need to ask yourself when creating your own strategy are as follows; How much time during the day/night do you have to devote to trading? How much money do you need to live on each year and how much of that must come out of trading profits? How many distractions can you expect during the day/night? Specify the markets and times of the day you will trade Do i want to trade multiple systems? Will you short sell? or go long? Where will you place your entry/stop loss and target line? How will i monitor my trading results/outcomes? Will i use software or just a simple excel document? Will i need a mentor or will I be self taught? How do I handle losing money? Can i handle being in a trade for more then an Minute/Hour, Day, Week etc? Will i use a phone, tablet or desktop computer to place, check or cancel my trade? How will i improve my trading performance? How did you go about creating your strategy? What steps did you take or follow?
Education
by SMPTrader
99% of day traders consistently lose money (educational)In this screencast I present results of a scientific study carried out on day trading, in the Taiwan Stock exchange. I explore some volatile instruments that some day traders may get stung by. The results of the Taiwan study are shocking. Disbelief leads people to argue that 'that's in Taiwan - so what?'. However the results are informative of cognitive and behavioural characteristics of day traders, more widely. Even if the results are 50% applicable outside of Taiwan, they are seriously worrying. For those interested in reading the study, Google: "Do Day Traders Rationally Learn about Their Ability". So, what does it all mean? For me it means: 1. That the knowledge, skill and experience required to be consistently profitable are extreme. 2. Day traders are most at risk of burning their accounts and departing never to return. 3. Even seasoned traders are at huge risks of losing money. 4. It isn't about methodology - it is about 'individual trader psychology' New traders need to be very cautious in following experts. A fair few of seasoned traders have set up training programmes, from which I suspect they make more money training, than in trading. Hard evidence on that is of course not easy to come by. But it's not me just saying so - a handful of true experts out there have said similar. [ For the avoidance of doubt, I have committed never to sell anything to new or seasoned traders. What you see is what you get. I do not need anybody's money. ]
BITSTAMP:BTCUSDEducation
by Captain_Walker
How to ladder buy BTC and other AltsHello everyone, As I'm writing this, the market is currently in a downtrend, and there are many people trying to predict where the price might go. This is a very difficult thing to do and most end up completely wrong. In this idea, I'm going to share with you guys my method to buying during a drop in the market. ================================== What I've highlighted and drawn: 1) The red box, double top, drop zone, which we will refer to as our initial high. 2)Predicted support zones with green boxes 3) Weak support area in orange. 4) Areas of interest circled in yellow. 5) Buys that are captioned. I will now explain each of these, and how I came up with them. ================================== First off, you will notice there are 0 indicators, no RSI, no MACD, and no moving averages, so how can we figure out areas where we might be able to buy anything? 1) The Red Box area is obvious to most, there is a double top with sell off.When it goes below the orange support, this confirms the double top. (Some use Elliot waves, Fib retracements and other methods to help with confirmation, I simply see red and a sale below to confirm this.) 2) The green boxes are predicted and placed based on previous strong green candles in the previous bull run were. (A word of caution, we don't automatically buy here, read everything first.) 3) Weaker support zone is tougher to identify and I personally call it this because in the event of a sale from the same top zone,(Red box area) this is the riskiest position to buy. 4) So with that out of the way, we can now move onto why these areas are circled in yellow: A) We see either an engulfing green candle, a green candle with a long wick or prices moving up multiple days in a row. B) These candle closings are what I use as confirmation of a support in this area. 5) Now for the juicy part, the buys. I'm going to give this one it's own sections because it's more involved then any other section. ================================== Buying: 1) I picked 3 buy prices based on the zone we were in. None of these are the best price. Just a disclaimer, you will RARELY EVER GET THE LOWEST PRICE EVER. So first off, get the idea of lowest price out of your head. 2) Got that lowest price idea out of your head? No? Go back to number 1...... Got that idea out now? Good. So how do I come up with this price? After the initial strong green candle closes, we wait for the close of the next days candle and then place a buy order in the body of the 2nd closing candle. We don't use wicks because there is a far lesser chance that we will see those prices. Example on buy#1: Strong candle close = about 8400 to 9400 Next day close = 8900 to 9900 Based on this = 9200 is within the body. Now that you know how to find the areas of interest (yellow circles), areas of predicted support, (Green boxes), and where to place the buy (Body of candles), you can buy right? Well not yet. You still need to know how much you should buy to ladder responsibly. ================================== Final Step: The buying! Okay after I established my areas, where I would buy after confirmations and such, how do I know how much to buy? There is no secret here, just rules you come up with. My method is a formula: First, I figure out how much capital I have to invest in this market. I'm going to use $10,000.00 as an example: Next, I divide the top price by my potential buy price (not the one I have yet, but what I will be placing my buy order for.) and subtract 1. Finally, I take that number and multiply the amount of money I'm willing to invest in this market. The whole formula looks like this: *Current Investment Capital = Your buy amount. For consecutive buys, use the remaining capital. ================================== Going to place the example of buys in a followup post, I hit the character limit!
BITFINEX:BTCUSDEducation
by gendark2
6
RIsk management with REAL trades not examples from past dataThis is a sequel to our first post on risk management with trades we have actually executed and not using examples from past market data. In this chart, we show how seven trades would be executed and with said trades increase our profits while minimizing our risk. Closing our trades early protect us from any possible "flash crash" situations. You can have a 30% trade success rate and still be profitable, or even have a 90% winrate and not be profitable. We use real trade examples in this chart, with all of the details below. Even the losing ones. Make sure to browse them if you like by clicking them below. POST 1 POST 2 POST 3 Take note that no matter what, we stick to our original trade plan and once our stops get hit we'll just take the loss then sit on the sides waiting for a new trading opportunity. POST 4 POST 5 Closing our position at a high price when we see an indication of price reversal allows us to re-enter at a lower price and buy more with our initial position. In these specific trades, we use resistance, support, candlestick patterns, and flag patterns as our confirmations. Closing our position at a high price when we see an indication of price reversal allows us to re-enter at a lower price and buy more with our initial position. With every trade that is made, stops and take profits are adjusted with each position. Hover your mouse cursor over each area to see why a trade was executed! There are trading opportunities every day. Don't be in such a rush to always have a position open. Trading emotionally is an easy way to get burnt. These calculations are based on the starting principle of $1,000 USD ** We actually lost less on the trades that didn't go through, because we can adjust our stops to our entry so we'd lose nothing but thats a post for another day! ** FAQ Now how can you use this strategy to your benefit? When you open a position and have your stops in place, and when you're in profit keep a close eye out for reversals; when the price begins to reverse close your position and continue to observe the price. When the price is done correcting and is lower, watch for a bullish reversal to continue its run. When this is done re-enter with new stops. I don't trade flags or some of the techniques used to predict a movement. What should I do? Regardless of how you predict price movements, you can refer to this as a way to trade a market consistently in order to make more profit while minimizing your risk. This is merely one example of how you as a trader can create a trading plan that you stick to consistently to make pips! What if you closed it and it kept going up? At times it's better safe than sorry. we do this Why not just hold? In some markets, a price can reach a certain point and not return to it for months or even years. I definitely don't have the time to be watching charts constantly to be able to do this! Anything worth doing is worth overdoing. Besides, Tradingview has very nice tools available for all of us to enjoy. Simply setting an alert on a trend line will help! We appreciate all feedback and suggestions if you have any feel free to comment below! Wish you all the best. Have a great weekend everyone!
ZEducation
by 162Trading
9
Part 3 - The Markets.. Know what market you are trading in!!What is trend? Trend is the direction in which the market moves. An upward trend consist out of higher highs and an downward trend with lower lows. * Upward trend * Downward trend This is called the sideway market, which also is called trading range: This is an neutral trinagle, where we see lower highs and higher lows. At this markets it is better to wait what the market will do. Every time the price drop, buyers are gettin earlier in, but the sellers are also selling earlier. Upward Triangle, There are more buyers joining the market. This one is the downward market. The lower lows are staying equal, the highs are gettin lower. At this time people are waiting for the right time to buy. We see here a false move. When u think the market will turn on, it makes a false move and getting lower. This one is called the broadening market. The highs will become higher and the lows lower. A broadening market says that there is a lot of uncertainity. This is an market with high risks. This will be seen a lot at the ending of upward markets.
COINBASE:BTCUSDEducation
by NLTR_crypto
1
Part 1: What is Technical Analysis? Starters guide for investingDear investor, Welcome to my blog, where i am trying to learn investing with technical analysis (TA). I will share my studies and investings ideas with you, so we can discuss with each other.. First off all i'll investigate a theoretical studie. After this i'll try the theoretical studie on cryptocurrencies. This blog is for everyone who wants to start investing, but does not know how to begin. Why cryptocurrency? The volatility makes it more attractive to invest in Cryptocurrencie. Because of the volatility we can invest in short and long term targets. My opinion: do not invest money what u can't loose and make youre own strategy on how much money you can invest. What is TA and prognosis? Technical analysis is an anlysis method whereby we will make an prognose by watching historical price. From this sentence we can conlcude that all our prognoses are related on just one piece of information: the historical price movement. For the technical analyst the price movement is the only objective information what he has. All other informations are subjective and can be interpreted in different ways. Another important word in the previous sentence is prognose . This word prognose is carefully chosen, because making of an prognose is not the same as predicting. Predicting suggest any certainty, but this is not possible. My analysis can be verry good, however it can be wrong because of all kinds of unexpected external/internal factors. The course is never unclear: it rises or goes down . This can not bi disputed. With prognosing we sketch the most likely scenario, with targets and stop loss. Targets are my selling points. I'll not sell all my coins in just 1 target, but spread it in 1/4 part on each target. The stopp-loss is the level where i will get off my coins with loss. When reaching this level, i say that my analyse is wrong and i have to step out with loss timely before i'll have bigger problem (If i do not step out at this level, a will have a bigger loss what means i have to wait to long time to get my money back). When finishin my investing scenario, i'll make an counter scenario with the possible movement if my scenario fails. (This is just an example on how to note targets and stopp-loss on youre charts, not an trade idea. Finding the target areas and stopp-loss are will be studied in another part..) Summary: For the technical analyst the price movement is the only objective information what he has; Making of an prognose is not the same as predicting. Predicting suggest any certainty, but this is not possible; The course is never unclear: it rises or goes down; With prognosing we sketch the most likely scenario, with targets and stop loss In the following parts i'll write about charttechincal and statistically analyse. I'll studie Elliot wave and combine this with indicators to prognose an scenario. If you like to know more about investing with TA please follow me and feel free to place youre comment. One generation passeth away, another generation cometh, but the earth abideth forever. The sun also ariseth, and the sun goeth down, and hasteth to his place where he arose. The wind goeth toward the south, and turneth about unto the north; it whirleth about contunually, and the wind returneth again according to his circuits. All the rivers run into the sea; yet the sea is not full; unto the flow from whence the rivers come, thither they return again... The thing that hat been, it is that which shall be; and that which is done is that which shall done; and there is no new thing under the sun.. Source: Elliot Wave Principle, Key to Market Behavior. The books i mostly use and reccomend are: - Elliot Wave Principle, Charles J. Collins - Investing with technical analysis, H.J. Geels (Dutch)
COINBASE:BTCUSDEducation
by NLTR_crypto
When the money is on the floor - take it!In this viog I spotted a set up and did not plan to trail. So, the money is on the floor and I take it. Greed and FOMO are not the ways to go. I share how I use some indicators and price movement to assess the situation before entry. I trade what I see, not what I hear. :)) The most important things in trading: 1. See 2. Assess 3. Calculate if risk is acceptable. 4. Define entry. 5. Decide on exit. Exit strategies do not have to include a target. I know some people who have missed loads of profits because price missed a targets by about 2 - 10 pips. I call that silly. The important issue is to have exit criteria, which could be any set of situations on the chart that you define. A 'target' therefore does not have to be a fixed point. In trend-following trading for example there are no targets at all. But there are exit criteria. But nothing is perfect. If the situation changes and there is doubt about exit, just take the money!
Education
by Captain_Walker
IOTA/BTC Binance TA for beginners. EnjoyHello Traders, A follower has asked for a simple TA on this pair so I have kept this as simple as I can. The two major features of the chart are the descending triangle on price. You can see with the Blue circles, we keep putting in the same or lower highs. The Yellow circles show us that we are putting in the same lows. When we have lower highs, and the same Lows it suggests eventually we will run out of buyers at the level of the lows and price will break down. We are looking for a break down on this pair unless we see a Higher High (Price puts in a new high price, that is higher than a previous cycles High). So price means our bias is short, or to sell. MY other concern is Volume, a number of these pairs are seeing volume drop and eventually volume creates the demand to move price. When volume is down price can spike on small transactions making trading messy. To Trade this I would want to see price Advance down through the support (Black Line), and then pull back up to the black line, I can then enter short or wait for bar to move down and sell the bottom of that. I am trying to keep this simple to follow, if you have any questions please ask them and I will try and clarify them for you. Always remember if you want to make dollars your decisions need to make sense. You need to take your time with this one, wait for a clear entry or keep your money. Feel free to follow if this was helpful to assist your trading.
Education
by DollarsAndSense
6
How much can you make in 5 years? Money makes money . It's an age-old saying, probably because it's generally true. But starting out as a retail trader can be daunting and at times, frustrating. It takes time to build up a sizable account big enough to allow us to take the leap from trading part time, to full time trading. Something that has kept me motivated over the years is an excel spreadsheet a friend of mine made. It demonstrates how consistent monthly returns can lead from a small and humble account balance, to a huge one. Thanks to the compounding effect. Assuming you don't make any withdrawals, let's see where consistent, conservative trading over 5 years could get you. SCENARIO 1: SHRIMP Starting balance: $1,000 You've traded demo for a while, you've developed a winning formula, and you're ready to put your money where your mouth is. Monthly contributions: $100 A hundred bucks is all you can afford at the moment, after bills and overheads Monthly returns: 8% By being selective in your trades and risking between 1-2% per trade, your conservative approach has allowed you to be consistent so far Year 1: Month 3: $1,484.35 Month 6: $2,220.47 Month 9: $3,147.76 Month 12: $4,315.88 Year 2: Month 15: $5,787.38 Month 18: $7,641.04 Month 21: $9,976.13 Month 24: $12,917.66 Year 3: Month 27: $16,623.14 Month 30: $21,290.98 Month 33: $27,171.11 Month 36: $34,578.39 Year 4: Month 39: $43,909.42 Month 42: $55,663.83 Month 45: $70,471.01 Month 48: $89,123.79 Year 5: Month 51: $112,620.92 Month 54: $142,220.53 Month 57: $179,507.52 Month 60: $226,478.39 Behold! The humble $1000 has been transformed into more than 200k. That's just 4 winning trades a month at 2% per trade. SCENARIO 2: FISH Starting balance: $10,000 So you've got a good chunk of savings lying around and you're ready to get serious with your trading. Monthly contributions: $0 You've stumped up all of your available spare resources into your trading account and you want to enjoy spending any surplus money from your other income streams. Fair enough. Monthly returns: 8% By being selective in your trades and risking between 1-2% per trade, your conservative approach has allowed you to be consistent so far Year 1: Month 3: $12,597.12 Month 6: $15,868.74 Month 9: $19,990.05 Month 12: $25,181.70 Year 2: Month 15: $31,721.69 Month 18: $39,960.19 Month 21: $50,338.34 Month 24: $63,411.81 Year 3: Month 27: $79,880.61 Month 30: $100,626.57 Month 33: $126,760.50 Month 36: $159,681.72 Year 4: Month 39: $201,152.98 Month 42: $253,394.82 Month 45: $319,204.49 Month 48: $402,105.73 Year 5: Month 51: $506,537.42 Month 54: $638,091.26 Month 57: $803,811.22 Month 60: $1,012,570.64 Now it's unlikely that in this situation, you'll be trading pip sizes more than what would bank you 100k in 3 months, but the point is that you can trade conservatively and get to a point where you're earning enough to live like a king in just a few years. Happy trading everyone! Hope this has helped to motivate you and think about trading more conservatively to preserve your capital and think about your long term future. AvidTrader P.S. If anyone would like the real spreadsheet, PM me.
Education
by avidtrader89
3
10 Great Trading Quotes It's always refreshing to hear from some of the trading greats that have made a killing on the markets. Here are ten quotes that'll make you think twice: "Volatility is greatest at turning points, diminishing as a new trend becomes established." - George Soros Soros cemented his position as a trading legend when he banked billions by shorting the British pound ahead of Black Wednesday - the day that traders broke the pound. They didn't really break the pound, but they forced the British Government to pull it from the European Exchange Rate Mechanism (ERM), which it had joined in an attempt to unify European economies. Soros made a pretty penny from trading volatile markets, opting to use it as an indication of a the beginning of a new trend. "Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do, you are dead." - Paul Tudor Jones Jones is a Tennessee-born hedge fund manager, investor and philanthropist who as of February 2017, was the 120th richest person on the Forbes 400. The market is a living, breathing thing. It is constantly changing and it is always right. Jones understood this, which is why he stressed the importance of being adaptable and capable of changing your trading style to suit market conditions. As Darwin famously said, it is not the strongest of the species that survives, nor the most intelligent, but the one most adaptable to change. “You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beats the guy with 130 IQ.” - Warren Buffet A household name in the trading and investing sphere, Buffet has made more money than most of us put together. You don't need to understand electricity to flick the light switch, and you don't need to understand the physics of a wave to be able to surf it. “Superlative performance is really a confluence of dozens of small skills or activities, each one learned or stumbled upon, which have been carefully drilled into habit and then are fitted together in a synthesized whole. There is nothing extraordinary or superhuman in any one of those actions; only the fact that they are done consistently and correctly, and all together, produce excellence.” - Daniel F. Chambliss, Professor of Sociology Here, Chambliss emphasizes the mundanity of excellence. Each factor that helps us make our trading decisions may seem underwhelming on its own, but bundle them all together and it produces some incredible results. "I was seldom able to see an opportunity until it had ceased to be one." - Mark Twain Trust your analysis before you miss the move.
Education
by avidtrader89
3
"Money is made by SITTING, not TRADING" - Jesse LivermoreOne of the major reasons why traders lose money is because they ride out their losses and close profitable trades too early. While being patient can help us to achieve our maximum profit potential, being patient on the wrong side of a trade can be costly. This is a great insight into why we are naturally predisposed to riding out losses and not quitting while we are ahead. It's an exert from a book that I recommend you all read called "Trading For A Living" by Elder Alexander. "Roy Shapiro, a New York psychologist from whose article this subtitle is borrowed, writes: 'With great hope, in the private place where we make our trading decisions, our current idea is made ready....one difficulty in selling is the attachment experienced toward the position. After all, once something is ours, we naturally tend to become attached to it....This attachment to the things we buy has been called the "endowment effect" by psychologists and economists and we all recognize it in our financial transactions as well as in our inability to part with that old sports jacket hanging in the closet. The speculator is the parent of the idea....the position takes on meaning as a personal extension of self, almost as one's child might....Another reason that Johnny does not sell, even when the position may be losing ground, is because he wants to dream....For many, at the moment of purchase critical judgement weakens and hope ascends to govern the decision process.' Dreaming in the markets is a luxury that nobody can afford. If your trades are based on dreams, you are better off putting your money into psychotherapy." If your trades, before you enter them, do not have predetermined take levels and stop loss levels, then you are setting yourself up to fail. Sitting really does make money, but before we sit, we must first SET and FORGET. Happy trading, AvidTrader
Education
by avidtrader89
9