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More Than Money 💸Hello, friends! 😊 What do you associate trading with? 🧐 For most of us it's exchanges and investments are primarily associated with big money. However, trading in the financial markets not only provides opportunities for earning but also for significant skill development and personal growth. Here are the top 4 qualities that trading helps to develop: 1. Strategic thinking 🧠 Systematic approach and having a well-thought-out strategy distinguish a professional trader from a gambler. Seeing that Bitcoin is rising and immediately buying it – that's not how it works: You need to follow rules to earn not situatively, but in the long term. First and foremost, adhere to risk management, which determines 90% of success. The main rules of risk management in trading that are useful in any endeavor: In trading: Invest no more than 1-2% of your deposit in one trade. In life: Don't put everything at stake for short-term gain: soberly assess what you can risk so you won't regret it later. In trading: It's not so important how much you earn. It's more important how much you lose or don't lose. In life: Weigh the pros and cons of every serious decision. In trading: Diversify risks, invest in different instruments so that potential losses from one asset are offset by profits from another. In life: Always have a plan B, and preferably plan C as well, to achieve your goal. Because if something can go wrong, it will. In trading: Cut losses to a minimum, let profits grow. In life: Don't waste energy, time, and resources on what doesn't bring benefits or doesn't work out. Strengthen what's strong: focus on what You do best. 2.Stress tolerance 🫨 Trading is not the easiest way to earn a living: you need to be mentally prepared for both profits and losses, not succumb to emotional impulses, and maintain self-control. Sometimes you have to " rise from the ashes " and start over from scratch. However, just like in life. Only 2-3% of traders have natural resilience: the rest need to develop it. Here are some tips from me, which I have formulated from my own experience: "To develop resilience, allow yourself to make mistakes, take on challenges, and solve complex problems. In doing so, you become stronger." "Learn to be flexible, not confined to your internal boundaries. " "Don't be afraid to be yourself, to develop internal freedom and individuality, so you can accept your mistakes without criticism. A successful trader is confident, free from societal judgment, and doesn't need to be perfect: they pursue their own goals, not dreams imposed by others." 3. Independence 🕊️ One of the main advantages of trading is freedom : there are no bosses above you, you manage your own time and resources, and you are solely responsible for your actions. You decide how, where, and how much to invest, what risks to take, and so on. The ability to take responsibility for oneself, not blame others for one's mistakes, and be independent in decision-making is a quality that is valued not only in trading. Independent, self-aware individuals progress faster in their careers, build harmonious relationships, and establish large-scale businesses. 4. Developing 🎓 You can't learn trading once and for all: the market is not static, it's constantly changing. Yesterday, for example, only a few knew about cryptocurrencies, and today fortunes are made on them. So don't miss the opportunity to learn more , interact with like-minded individuals. Thanks to the Trading View platform for providing such an opportunity. Here You can create your own charts, see what others think, and study educational content. In conclusion , folks, trading is a unique simulator that develops discipline, forecasting skills, responsibility, independence, psychological resilience, and a drive for self-improvement. All You need is diligence, discipline, and a community of like-minded people! Wishing You success!😘 🫶If You found this post interesting, hit the like button or as it's called now (boost) and subscribe so You won't miss out! Always sincerely yours, Kateryna💙💛
BITSTAMP:BTCUSDEducation
by RocketBomb
🟣 Channel Trading Strategy 🟣 Hello, friends! 👋🏻Today I'll wanna share with You my knowledge about channel trading strategy. ❗️ Channel Trading Strategy ❗️ is a classic form of trading in both crypto and other markets. This is a trend trading strategy , so accuracy and safety are very high. Today, I will present all of you about the Channel pattern and how to trade with it in the most complete and detailed way. ❓ What is a Channel Pattern? ❓ The Channel pattern is a development of price following the trend which consists of two parallel support and resistance levels. Prices will fluctuate and create trends along the corridor created by these two levels. ⚡️This pattern ends when the price breaks out of either the resistance or support and creates a new trend . The breakout direction is often in the opposite direction to the direction of the pattern.👇 Two Common Types of Channel Patterns With two parallel and horizontal resistance and support levels, this is a rectangular price pattern. Channel Up or Ascending Channel This Channel pattern type has two parallel and upward levels of Resistance and Support . The breakout of this pattern will usually be at the support. After the breakout, the price will reverse down. In some cases, the price may retest this support. Channel Down or Descending Channel In contrast to the Channel Up pattern, we have the Channel Down pattern with two parallel and downward levels of resistance and support. After creating this pattern, the price usually breaks out upwards (resistance breakout) and goes up. It is possible for a strong uptrend to appear after this breakout. Trade Effectively with the Channel Pattern There are two types of trading using the Channel pattern: trading within the price channel and trading as per the breakout of the pattern. 💡With this type of trading, You should remember clearly: In a Channel Up, only open UP orders. Conversely, in Channel Down, you can only open DOWN orders. How to Open an Order? 🔺 For a Channel Up: 🔺 Entry Point: When the price hits the support of the price channel. Stop-Loss: At the previous position where the price touched the support. Take-Profit: When the price hits the resistance. If the previous order wins, the stop-loss of the following order will be the entry point of the previous order. 🔻 For a Channel Down: 🔻 Entry Point: When the price hits the resistance. Stop-Loss: At the previous position where the price touched the resistance. Take-Profit: When the price hits the support. Trade After the Breakout The trading strategy is based on the breakout point of the price channel. This is a very good signal of a trend reversal. You open an order as follows. 🔺 For a Channel Up: 🔺 Entry Point: When the candlestick breaks out of the support. Stop-Loss: At the previous position where the price touched the resistance. Take-Profit: When price re-touches the support levels it creates within the pattern. 🔻 For a Channel Down: 🔻 Entry Point: When the candlestick breaks out of the resistance. Stop-Loss: At the previous position where the price touched the support. Take-Profit: When price re-touches the resistance level it creates within the pattern. The article is a bit long. However, I have covered everything I know when trading with price channels. Thank you for reading. Do you have any tips for trading with price channels? Please help me improve myself. Subscribe to stay updated!🫶 Thanks for Your attention💋 Sincerely yours, Kateryna💙💛
BINANCE:BTCUSDEducation
by RocketBomb
1
Explaining Dow Theory - Does it Deliver Results? Dow theory stands out as one of the most revered theories in the history of financial markets. Whether you're engaged in intraday trading, short-term trading, or long-term investment, understanding this theory is bound to help you formulate diverse strategies. Originally crafted by Charles Dow in the late 1800s, Dow Theory, also known as Dow Jones Theory, has stood the test of time. Charles Dow, the founder of the Dow-Jones financial news service WSJ (Wall Street Journal) and Dow Jones and Company, developed this trading strategy. Even after a century, Dow theory remains influential and is considered one of the most sophisticated studies in technical analysis. I trust this will be beneficial to anyone involved in trading or investing in financial markets. What is the essence of Dow Theory? In an article published in the Wall Street Journal on January 31, 1901, Charles H. Dow likened the stock market to the ebb and flow of ocean tides. He stated, "A person observing the rising tide and wishing to determine the precise moment of high tide places a stick in the sand at the points reached by the incoming waves until the stick reaches a position where the waves no longer reach it and eventually recede enough to indicate that the tide has turned." This approach proves effective in monitoring and predicting the rising tide of the stock market. Dow believed that analyzing the current state of the stock market could offer insights into the current state of the economy. Indeed, the stock market can serve as a valuable gauge for understanding the underlying reasons behind upward and downward trends in both the economy and individual stocks. How Does the Dow Theory Operate? The Dow Theory operates based on several principles, which include the following: 1. The Averages Account for Everything: Market prices incorporate all known or unknown factors that may impact supply and demand. It is believed that the market reflects all available information, including information not yet public. This encompasses various events such as natural disasters like droughts, cyclones, floods, or earthquakes. Major geopolitical occurrences, trade conflicts, domestic policies, elections, GDP growth, fluctuations in interest rates, and earnings forecasts or anticipations are all already factored into market prices. While unforeseen events may arise, they typically influence short-term trends while leaving the primary trend intact. 2.The Market Exhibits Three Trends: a)The primary trend: This trend can extend from one year to several years and represents the dominant movement of the market. It is commonly known as either a bull or bear market. The bullish primary uptrend sees higher highs followed by higher lows, while the bearish primary downtrend witnesses lower highs and lows. The challenge lies in predicting when and where these primary trends will conclude. The goal of Dow Theory is to leverage known information rather than making speculative guesses about the unknown. By adhering to Dow Theory guidelines, one can identify and align with the primary trend. b)The intermediate trend or secondary trend: This trend typically lasts from 3 weeks to several months and is characterized by reactionary movements. In a bull market, these movements are viewed as corrections, whereas in a bear market, they are seen as rally attempts. For instance, during a primary uptrend, a stock may retrace from its high to establish a low (known as an intermediate trend or correction). Conversely, in a primary downtrend, a stock might experience a temporary rebound after a prolonged decline (known as bear market rallies). c)The minor trend or daily fluctuations: This trend, lasting from several days to a few hours, is the least reliable and is often disregarded according to Dow Theory. Long-term investors should perceive daily fluctuations as part of the corrective process within intermediate trends or bear market rallies. These fluctuations represent the noise in the market and can be susceptible to manipulation. While daily price action is important, its significance lies in the context of the broader market structure. Analyzing daily price movements over several days or weeks can provide valuable insights when viewed alongside the larger market picture. While individual pieces of the structure may seem insignificant, they are integral to completing the overall picture. 3.Major Trends Comprise Three Phases: Dow focused extensively on major trends, identifying three distinct phases within them: Accumulation, Public participation, and Distribution. These phases occur cyclically and repeat over time. a) Accumulation Phase: This phase occurs when the market is in a bearish trend, characterized by negative sentiments and a lack of hope for an upcoming uptrend. For instance, we witnessed steep declines in mid-cap stocks in the Indian share market, with new lows being made frequently. While many investors anticipate this trend to persist indefinitely, this is actually when significant investors, such as large fund houses and institutional investors, begin gradually accumulating these stocks. This period is known as "smart money" investing for the long term. Despite ongoing selling pressure in the market, buyers are readily found. b) Public Participation Phase: During this phase, the market has already absorbed the negativity, with "smart money" investing. This marks the second stage of a primary bull market and typically sees the most significant rise in prices. At this point, the majority of the public (retail investors) also considers joining in as prices rapidly increase. However, many are left behind due to the speed of the rallies and the upward trend in averages. Traders and investors may experience regret for not participating in the rally. This phase follows improved business conditions and increased stock valuations. c) Distribution Phase: The third stage represents excess, eventually transitioning into the distribution phase. In this final stage, the public (retail investors) becomes fully engaged in the market, captivated by the bull market rally. Some investors who previously felt left out may still seek opportunities to join the rally based on valuations. However, this is when "smart money" begins to sell off shares at every high point. Meanwhile, the public attempts to buy at these levels, absorbing the selling volumes from large investors. In the distribution phase, whenever prices attempt to rise, "smart money" unloads their holdings. This marks the onset of a bear market, where sentiments turn negative, bankruptcy filings increase, and economic growth shifts. During a bear market, frustration levels rise among retail investors as hope dwindles. 4.Confirmation Between Averages is Essential: Dow used to say that unless both Industrial and Rail(transportation) Averages exceed a previous peak, there is no confirmation or continuation of a bull market. Both the averages did not have to move simultaneously, but the quicker one followed another – the stronger the confirmation. To put it differently, observe the image above, as you can see both the averages are in bull market, trending upward from Point A to C. 5.Confirmation of Trends Through Volume: Volume serves as a metric indicating the amount of shares traded within a specific timeframe, aiding in trend and pattern analysis. According to Dow theory, a stock's uptrend should be supported by high volume and exhibit low volume during corrections. While volume data alone may not be comprehensive, integrating it with resistance and support levels can provide a more comprehensive understanding. 6.Trend Persistence Until Clear Reversal Signals: Similar to Newton's first law of motion, which states that an object will remain at rest or in uniform motion unless acted upon by an external force, market trends are expected to persist until a significant external force, such as changes in business conditions, prompts a reversal. Signs of trend reversals become apparent when impending changes in trend direction are observed. 7.Signal Recognition and Trend Identification: A significant challenge in implementing the Dow theory is accurately identifying trend reversals. Adhering to the Dow theory requires not only assessing the overall market direction but also recognizing definitive signals of trend reversals. A key technique employed in identifying trend reversals within the Dow theory is analyzing peaks and troughs, or highs and lows. Peaks represent the highest points in a market movement, while troughs signify the lowest points. According to the Dow theory, markets do not move in a linear fashion but rather oscillate between highs (peaks) and lows (troughs), with overall market movements trending in a particular direction. An upward trend in Dow theory consists of a series of progressively higher peaks and troughs, while a downward trend is characterized by progressively lower peaks and troughs. 8.Market Manipulation: Charles Dow believed that manipulation of the primary trend was improbable, while short-term trading, including intraday movements and secondary movements, could be susceptible to manipulation. Short-term movements, ranging from hours to weeks, may be influenced by factors such as large institutions, speculators, breaking news, or rumors, potentially leading to manipulation. While individual securities may be manipulated, such as artificially driving up prices before reverting to the primary trend, manipulating the entire market is highly unlikely due to its vast size. Why Dow Theory Is Not Foolproof: Dow Theory is not a fail-safe method for outperforming the market, as it is not without its flaws. Critics argue that it lacks the depth and precision of a formal theory. Conclusion: Understanding the Dow Theory enables traders to identify hidden trends that may elude more seasoned investors, empowering them to make informed decisions about their positions. The Dow theory aims to pinpoint the primary trend and capitalize on significant movements. Given the market's susceptibility to emotion and tendency for overreaction, the goal is to focus on identifying and following the prevailing trend.
BITSTAMP:BTCUSDEducation
by RocketBomb
4
How To Trade Triangles Like A Pro?Welcome, traders and investors, to our educational post on ascending and descending triangles! In the fast-paced world of financial markets, understanding chart patterns like these is crucial for making informed trading decisions. Ascending and descending triangles are powerful tools that provide valuable insights into market dynamics and potential price movements. In this post, we will delve into the characteristics of these patterns, explore how to identify them on price charts, and discuss effective trading strategies to capitalize on their implications. Whether you're a novice trader or an experienced investor, mastering these patterns can greatly enhance your ability to navigate the markets with confidence and precision. What Is An Ascending Triangle? An ascending triangle chart pattern is formed during the upward price movement in an uptrend. The price tends to consolidate for a while and allows the trader to draw a horizontal trend line on the upside. Simultaneously, it allows the trader to draw a rising trend line downwards. The pattern implies that the price is consolidating and existing buyers are closing partial positions and the market is expecting new buyers to join and continue the Bullish trend. As a result, the price consolidates on the upper trend line and is unable to move higher and make new higher highs. However, the price does not make lower lows either, instead makes higher lows. So technical analysts look for trading opportunities and enter the market once the pattern is spotted on a price chart. How To Identify The Ascending Triangle? The ascending triangle pattern is similar to the other triangle patterns, but the location and shape of the triangle formation is very important. The shape of the ascending triangle should strictly contain the upper horizontal trend line and the lower rising trend line, failing this will invalidate the pattern. The pattern must be located within the uptrend, so it can be validated as a trend continuation pattern. The ascending triangle can be spotted easily by its shape. The horizontal upper trend line and the rising lower trend line make it easy to spot the triangle. An ascending triangle forms during a bullish uptrend as the pattern is a continuation pattern. However, the pattern may form in any part of the chart and trend. The ascending triangle pattern formed during a uptrend is significant and produces the best trading results. So traders should look for the pattern while prices are in an uptrend and identify it using the triangle shape. Features That Help To Identify The Ascending Triangle: ▪️ There should be an existing uptrend in the price. ▪️ The upper trend line should be horizontal. ▪️ The lower trend line must be a rising trend line. ▪️ The trend lines should be touched at least twice. The greater number of times the trend line is touched, the stronger it gets. How To Trade The Ascending Triangle? As mentioned earlier, the pattern not only provides the best entry point but provides the stop loss and takes profit too. Moreover, these points can be clearly defined and understood by the trader. Entry point: During the market consolidation phase, the upper trend line acts as a resistance and the lower trend line acts as a support. As the market consolidation ends and the price starts to get momentum, it breaks the upper trend line. The best entry point is the breakout of the upper trend line or the resistance. Price breakouts are normally associated with spikes in the trading volume. The increased trading volume implies the entry of fresh buying orders. Traders should look for trading volume levels during the breakout and confirm the breakout before entering the market with a BUY position. The next confirmation is the classic price action which shows that the resistance has changed into support. Normally, price once breaks the upper trend line tries to move lower but will have ample support from the upper trend line which now starts to act support. This price action confirms the buying interest and gives the trader with additional confirmation and confidence. Stop Loss: The best stop loss method is to exit the trade if the price breaks the support or the lower rising trend line. The breakout of the lower trend line implies the non-availability of the upside momentum and indicates the possibility of the return of the bears. (In the cryptocurrency market, there are often fake breakouts, and that's also worth considering!) Take Profit: The projected take profit target is the farthest distance between the upper and lower trend lines. At the beginning of the pattern, the upper and lower trend line will be wider from each other. This distance can be measured and can be projected from the entry point to the upside. As per the pattern, this is the best take profit target. What Is An Descending Triangle? A descending triangle appears during a downtrend. The price tends to move lower and then finds a consolidation area, this consolidation area is the potential price level at which the market allows the trader to draw a horizontal trend line, due to the failure to make lower lows. On the other hand, the price tries to move higher and fails to make any higher highs. Oppositely, the failure to make higher lows results in lower lows so the price action allows the technical trader to draw a descending trend line on the upside. The combination of the upper and the lower trend line forms the shape of the descending triangle. Traders look for trading opportunities once the price consolidation ends. Price breakout from the descending triangle pattern indicates the beginning of the trend resumption. So traders enter the market in the direction of the previous trend direction. How To Identify The Descending Triangle Pattern? The following are the features that help to identify the descending triangles chart pattern. ▪️ There should be an existing downtrend in the price. To validate the pattern, it should form during an existing downtrend. The pattern that forms during an uptrend should be invalidated and not taken into account. As the trend is a BEARISH continuation pattern the formation during the downtrend is essential. ▪️ A lower trend line should be horizontal. The price should fail to make lower lows and usually bounce from the low, as a result, the lower trend line should be as horizontal as possible. The upper trend line must be a descending trend line. The price action on the upper side is very crucial for this pattern. The failure of the price to make higher highs and instead of making lower highs shows the failure of the price to reverse the trend direction. ▪️ The trend lines should be at least touched twice, the greater number of times the trend line is touched it gets stronger. Trend lines must be validated independently, as a general rule of the trend line the price should touch the trend line at least twice. However, the more times a trend line is touched it gets stronger. The upper and lower trend lines converge each other and look to join at the end, thereby forming the shape of a descending triangle. Traders can spot the pattern easily due to the shape of the trend lines, as the chart will make it easier to spot a consolidation area during a downtrend. How To Trade The Descending Triangle Like A Pro? As discussed earlier the pattern is a completely trade-able pattern, meaning it provides the trader with the best entry point and stops loss, and takes profit points. It must be mentioned that all of the parameters can be measured and identified easily. Entry Point: During the market consolidation phase, the price action makes the price bounce from the lower trend line and prevents the price to move higher than the upper falling trend line. The resultant shape of the descending triangle will be broken the consolidation phase ends as traders enter a fresh buying phase. The price breaks the lower trend line and continues to move lower, which is the prevailing downtrend. Traders should confirm the entry point using additional confirmation using the trading volumes. Any breakout of trend lines or triangles is generally associated with increased trading volumes. The increased trading volumes provide the necessary momentum for the price movement. So traders should look for increased volumes, however, if the descending triangle breakout does not show any increase in volume traders should refrain from trading as it may be due to a false breakout. The next type of confirmation is by applying the support and resistance or trend line trading rules. The lower horizontal trend line effectively acted as a support during the market consolidation phase, while the upper trend line acted as a resistance. So once the price breaks the support, it becomes resistance. There may be few instances when the price broke the support line and fails to continue or displays a false breakout. Stop Loss: The stop loss is the upper falling trend line because, if the price makes higher highs it shows the market intent to move higher or reverse the trend. So the best method is to exit the position if the price breaks the falling upper trend line or resistance. Take Profit: The pattern allows identifying the take profit by measuring the longest distance between the trend lines. Normally during the beginning of the descending triangle pattern is the longest distance, this shall be measured. This measurement from the entry point will provide the potential take profit position. Understanding ascending and descending triangles is essential for any trader navigating the financial markets. These chart patterns offer valuable insights into potential price movements, providing traders with opportunities to enter and exit positions strategically. Ascending triangles typically indicate bullish continuation patterns, suggesting that an uptrend may persist after consolidation. On the other hand, descending triangles often signal bearish continuation patterns, indicating potential downtrends following consolidation. By recognizing these patterns and applying appropriate trading strategies, traders can enhance their decision-making process and improve their overall trading performance. Remember to combine pattern analysis with other technical indicators and risk management principles for optimal results in the dynamic world of trading. Happy trading!🩷 Thanks for Your attention 🫶 Always sincerely with You, Kateryna💙💛
Editors' picks
BINANCE:BTCUSDEducation
by RocketBomb
27
Conquer Trading Challenges: Pro Tips for Understanding Hello, friends! Today I'm sharing with You some trading tips, that will help You to understand some of the complex aspects of trading. Tip 1: Trading more or longer is not the best method. Sometimes doing nothing is the best thing You can do. "Many people get so tangled up in markets that they lose perspective. Working longer doesn't necessarily mean working smarter. Sometimes it's just the opposite." - Martin Schwartz Most jobs are created with a time attachment. Spend X hours, and we'll pay You Y amount. This link between time spent and reward is so commonplace that we take it for granted in everything we do. Unfortunately, this doesn't apply to traders who want to maximize profits from their trading edge. Why? As Martin Schwartz noted, we need to work smarter, not longer. The key argument is that the market is beyond our control. Sure, we can spend more time trading, but if the conditions aren't optimal, it will do more harm than good. "The urge to keep on doing something, regardless of the basic conditions, is responsible for many losses on Wall Street even among professionals who feel they must bring home a little money every day, as if they were working for a regular wage." - Jesse Livermore As Jesse Livermore said, we need to abandon the idea of a "regular paycheck" and respect the basic conditions of the market. Think about it. If the market doesn't offer You a trading edge, then the best thing You can do is stop trading. "If most traders would learn to sit on their hands 50% of the time, they would make a lot more money." - Bill Lipschutz Bill Lipschutz's opinion underscores the fact that most traders trade much more than they should. Tip 2: A trader doesn't need to be a genius. Smart people achieve success. That's what most of us think. But for successful trading, intelligence is of secondary importance. Peter Lynch has a more specific opinion on how academically competent traders should be. "All the math You need in the stock market You get in the fourth grade." - Peter Lynch So, if intelligence isn't the key factor in successful trading, then what is? "The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading." - Victor Sperandeo If You had enough trading experience, You'd be dealing with issues like overtrading, strings of losses, and revenge trading. So agree with Victor Sperandeo. Occasionally, we can benefit from such a reminder. If You're a beginner in trading, perhaps I haven't convinced You of the importance of the emotional side of trading. But keep this idea in mind, and hopefully, it will shorten Your search for the Holy Grail. Tip 3: The harder You try to make money, the harder it is to achieve. "The goal of a successful trader is to make the best trades. Money is secondary." - Alexander Elder Focusing on making the best trades means focusing on the process. When You focus on the process, You'll find ways to improve it. When You focus on the results, You'll be distracted and jump around without a consistent approach. Therefore, let money be a by-product of a reliable trading process. Bill Lipschutz put it aptly: "If you're motivated by money, you're making a mistake. The truly successful trader has to be involved and into the trading process; money is the by-product... The primary motivation has to be the playing itself." - Bill Lipschutz In other words, anyone facing financial difficulties shouldn't be trading. If You feel You must make money, it diminishes Your trading productivity. These advice explain why trading isn't the easiest way to make money for most people. But let's suppose Your primary goal isn't about making money; instead, it's about extracting lessons from this process. In that case, You'll find pleasure in the challenges trading throws at You because they'll force You to question your assumptions and confront Your emotional shortcomings. If You achieve success, beyond financial rewards, You'll gain valuable life lessons. However, since these ideas and advice aren't intuitively understandable, it's practically impossible to heed them from the outset. Fully internalizing them requires a certain trading experience, one that includes disappointments and regrets. Nevertheless, by analyzing and reflecting on them, we can shorten our path to becoming mature and consistent traders. Subscribe to stay updated! Thanks for Your attention:) Sincerely Yours, Kateryna💙💛
BITSTAMP:BTCUSDEducation
by RocketBomb
6
Common Mistakes Traders Make When Placing Stop Loss OrdersLet’s discuss the four major mistakes traders often make when implementing stop losses. 😔 We consistently emphasize the importance of proper risk management, as using stop losses incorrectly can result in more losses than gains. And surely, that's not what you desire, right? 💰 Setting Stops Too Narrowly The initial and frequent error is setting stops too tightly. 🤦‍♂️ By placing extremely close stops on trades, there's insufficient "breathing space" for price fluctuations before it moves in your desired direction. Always consider the pair’s volatility and the likelihood of it lingering around your entry point before continuing its trend. 😌 Allow your trades ample room to fluctuate and factor in volatility! 📈 Reliance on Position Size Rather Than Technical Analysis Using position size as the primary determinant for stops, such as "X" or " NYSE:X amount," instead of relying on technical analysis, is ill-advised. 🚫 Position sizing shouldn't dictate stop placement; it's unrelated to market behavior. Since we're trading the market based on technical analysis, it's logical to set stops based on market dynamics. 📊 After all, you've chosen your entry and targets through technical analysis; similarly, determine your stop. This isn't to dismiss position size entirely. 🤔 Rather, decide on stop placement before calculating position size. Setting Stops Too Distantly Some traders err by placing stops excessively far, hoping that market movements will eventually align with their expectations. 😞 But what's the purpose of setting stops then? Why persist with a losing trade when reallocating those funds could lead to a more profitable opportunity? 💡 Setting stops too far increases the distance your trade needs to move favorably to justify the risk. As a rule of thumb, stops should be closer to entry points than profit targets. 🎯 Naturally, aiming for less risk and greater reward is preferable. With a favorable risk-to-reward ratio, like 2:1, profitability is more attainable, provided you're accurate in your trades at least half the time. 📈💰 Placing Stops Directly on Support or Resistance Levels Setting stops either too tight or too distant is counterproductive. So, where should stops be placed? Certainly not directly on support or resistance levels. Why not? 🤔 Despite advocating for technical analysis in determining stops, placing stops precisely on support or resistance levels isn't advisable. It's prudent to consider nearby support and resistance levels when setting stops. 📉 For long positions, identify a nearby support level beneath your entry and place your stop accordingly. Conversely, for short positions, identify the subsequent resistance level above your entry and position your stop nearby. Why avoid placing stops directly on support or resistance levels? Because there's still a possibility of price reversals upon reaching these levels. By positioning your stop slightly beyond these levels, you can confirm whether the support or resistance has been breached, allowing you to acknowledge any misjudgments in your trade idea. 🔄 In conclusion, mastering the art of setting stop losses is crucial for successful trading. By avoiding these common mistakes and adhering to sound risk management principles, traders can enhance their profitability and minimize losses. Remember to give your trades adequate breathing room, base stop placements on technical analysis rather than position size alone, avoid setting stops too far or too close, and refrain from placing stops directly on support or resistance levels. With diligence and discipline, traders can navigate the markets more effectively and increase their chances of achieving consistent success. 🚀 In the fast-paced world of trading, making informed decisions is paramount. By understanding the nuances of stop loss placement and steering clear of these pitfalls, traders can position themselves for long-term success in the financial markets. So, take heed of these insights, refine your trading strategies, and approach the markets with confidence and precision. Happy trading! 😊📈🎉 Your Kateryna💙💛
BINANCE:BTCUSDEducation
by RocketBomb
2
Psychological Levels 🧠A psychological level is a price level that traders feel to be significant, generally due to its round number or because it has previously acted as a support or resistance level. These levels are not based on any intrinsic fundamental worth, but rather on market participants' collective view and conduct. These levels, sometimes known as "invisible lines," frequently affect the activities of both individual and institutional traders, resulting in predictable patterns in price movements. Psychological levels are financial market price points that have substantial meaning for traders and investors, owing to their simplicity and ease of recall. These levels are typically round integers ending in "00" or halfway points such as "50". The exchange rate of "1.00" or "parity" is also important when dealing with currency pairs. Traders tend to base their decisions on these levels, which results in greater buying and selling pressure when prices approach or exceed them. A nice way to think about psychological levels is that as prices approach them, traders become psychotic. Why do psychological levels matter? Psychological levels are significant in technical analysis because they can impact trader behavior. The human brain is wired to seek simplicity and order. This propensity results in a predilection for round numbers and other easily identifiable patterns in trading. As more market participants pay attention to these levels, they can become self-fulfilling, with prices reacting predictably as they approach, hit, or break through psychological barriers. As the price approaches this level, some traders may place buy orders anticipating a bounce, while others may place sell orders anticipating a reversal. This increased activity may cause price volatility near the psychological level, providing you with trading chances. Here are some examples of psychological levels: These are the pricing ranges that have a round number at the conclusion, like 100 or 1.5. Because they reflect round numbers and are simple to recall, these levels are frequently considered to have psychological significance. Previous highs or lows: Traders may view a previous high or low price for an asset as a crucial support or resistance level and may anticipate that the price will retrace off that level in the future. These could be all-time highs (or lows), daily, weekly, yearly, or weekly highs. Moving averages: In technical analysis, moving averages are frequently employed to spot trends and probable points of support or resistance. If a moving average has historically served as support or resistance level, traders may view it as a psychological. How to Trade Psychological Levels 📌 Determine Key Levels: The first stage in incorporating psychological levels into your trading is to determine the key levels that are pertinent to the financial instrument (for example, the currency pair) you are trading. This can be achieved by looking at past price movement and identifying round numbers where the price has previously displayed notable reactions. Track price movement: As it gets closer to a psychological level, pay particular attention to how the price responds. A rise in price volatility may be a sign of greater market activity, so keep an eye out for it. 📌 Set Entry and Exit Points: After identifying a psychological level and observing price behavior around it, use this information to set entry and exit points for your trades. For example, if the price has bounced off a psychological support level, you might enter a long trade just above it with a stop loss set just below it. In essence, a psychological level in technical analysis is a price level that traders and investors believe to be significant, generally due to its round number or because it has previously performed as a support or resistance level. These levels gain significance merely because traders pay attention to them. Traders will frequently respond to and make trading decisions based on these levels, even if the figure has no logical significance. Traders frequently place orders around these levels. When a price approaches certain levels, it might set off a chain reaction of buy or sell orders, causing the price to stall or reverse. Breaking through a psychological level can indicate a further move in that direction since it indicates that traders' opinions or psychology about that stock or market are changing. Thanks for Your attention! Always yours Kateryna💙💛
BITSTAMP:BTCUSDEducation
by RocketBomb
1
Decoding Bitcoin Halvings by RB🚀"Decoding Bitcoin Halvings: Analyzing Price Shifts and Patterns" Let's embark on a data-driven exploration of Bitcoin's halving phenomena, delving into the intricate interplay between scarcity, market dynamics, and price evolution. 🚀 Bitcoin's halvings, programmed to occur approximately every four years, are pivotal events designed to control its issuance rate. By halving the block rewards miners receive, Bitcoin enforces a deflationary supply model, mirroring precious metals' scarcity-driven value proposition. Halving I (2012): In November 2012, Bitcoin's inaugural halving took place, reducing the block reward from 50 BTC to 25 BTC. The immediate aftermath witnessed a modest price increase, revealing the early market's appreciation for reduced new supply. Halving II (2016): The second halving occurred in July 2016, lowering the block reward to 12.5 BTC. This time, the price response was more dramatic. A prolonged bullish trend began several months before the halving, peaking about a year after. The post-halving correction was followed by an extended bullish phase, underlining the cyclical nature of market sentiment. Halving III (2020): The most recent halving took place in May 2020, reducing block rewards to 6.25 BTC. This event was particularly notable due to its alignment with growing institutional interest. Bitcoin's price exhibited a similar pattern—pre-halving speculation, post-halving correction, followed by an aggressive bull market rally. Several intriguing patterns have emerged across halving events: 📌 The Pre-Halving Rally: Anticipation-driven rallies occur ahead of halvings, reflecting investor optimism about reduced supply and potential price appreciation. 📌 The Post-Halving Correction: Historically, a price correction follows halvings, often attributed to the "sell the news" phenomenon. This correction serves as a market reality check before the next growth phase. 📌 The Subsequent Bullish Phase: Post-correction, Bitcoin tends to enter a sustained bullish phase, as observed in the aftermath of each halving. This phase is often fueled by growing retail and institutional interest, media coverage, and macroeconomic factors. 2024 and Beyond: With the next halving expected in 2024, speculation is rife regarding its potential impact. While historical trends offer insights, it's important to consider new variables, including regulatory developments, technological advancements, and macroeconomic shifts. 💡 The story of Bitcoin halvings unveils a captivating blend of economic theory, market psychology, and technological innovation. These events not only reinforce Bitcoin's scarcity-driven narrative but also underscore its resilience amidst evolving market conditions. ❗️Disclaimer: This analysis is for informational purposes only and should not be construed as financial advice. Cryptocurrency investments carry inherent risks.
BITSTAMP:BTCUSDEducation
by RocketBomb
6
Explanations for Not Following Your TPHi! Have you ever abandoned your trading plan?🧐 If not, you should still read this, because you might be deceiving yourself!😉 If you have, why do you think you've been "unfaithful" to it? It's about you. Do you attribute it to your personality? Temporary loss of reason? Or perhaps, you see it as an inherent part of trading? Several factors could contribute to your lack of discipline. Depending on your personality, background, training, and experience with markets, you may struggle to control impulsive actions. For some, impulsiveness is ingrained. They find it challenging to concentrate, easily get bored, and seek quick thrills for relief. For others, impulsive behavior is linked to emotional vulnerability. Some individuals have difficulty managing their emotions, leading them to act impulsively out of frustration. Temporary setbacks are inevitable in trading. When highly emotional traders face these setbacks, they become overly distressed, leading them to close positions prematurely or make major trading errors in a frantic state, which can only be rectified by closing the position. No trader is perfect; any trader can be impulsive at times. Research has indicated that tiredness can impair concentration. As much as your conscious mind cares about adhering to your trading plan, your unconscious mind might think, "Who cares? I just want to get this over with and relax." Your psychological resources get depleted. Pushing yourself to the limit makes it difficult to concentrate on and adhere to your trading plan. Other traders may be impulsive due to lack of experience. It's unrealistic to expect adherence to a trading plan when you're uncertain about what you're doing. If you're new to trading, you may lack confidence and feel uneasy. You might hesitate to act, unwilling to risk your money because you don't have the strong belief in your plan's profitability that seasoned traders exhibit and it’s ok. "Who does nothing makes no mistakes." It's not you, it's your trading plan. You can't stick to a trading plan that you can't follow. If your trading plan is incomplete and crucial aspects remain unclear, you'll have difficulty following it. A trading plan should have well-defined entry and exit strategies. Monitoring signals that indicate trade progress are also crucial. Underestimating the importance of a clearly mapped-out trading plan is a mistake. The successful trader is a disciplined trader. Disciplined traders adhere to their trading plans and don't act impulsively. It's crucial to identify the reasons behind impulsive trading. It might be related to your personality or your trading plan, but whatever it is, gaining awareness of these factors and resolving them is essential. Once you control the impulse to act, you'll trade more profitably and consistently. In conclusion, a successful trader is not only someone who achieves consistent profitability but also someone who continuously learns and grows in this dynamic market. Remember to stay disciplined, manage risks effectively, and embrace both wins and losses as opportunities for improvement. As you continue your trading journey, may the charts align in your favor, and may your strategies be filled with wisdom and insight. Wishing you the best of luck and success in all your trading endeavors! Feel free to share your thoughts and experiences in the comments below. Let's support and inspire each other on this exciting trading path. Best regards and happy trading! Your Kateryna💙💛
BITSTAMP:BTCUSDEducation
by RocketBomb
2
5 Steps to Success: Serial Winner!💪Hey! Who wanna get a portion of motivation?🧐 I recently read a book "5 Steps to Success: Serial Winner" - by Larry Weidel. 💪 This book served me as a great kick'n ass! You know... sometimes a huge pile of difficulties falls on your head, when usual daily routine becomes unbearable - there are two options - give in and continue suffering or STRUGGLE! The choice is yours, but I prefer to fight!🤜🏼 I'll briefly share the conclusions, that I made after reading this book, I'll be glad if it will become a drop of motivation for someone! 📌 Don't doubt - decide Any victories are preceded by decisions. On the way, we always encounter with the main enemies of our aspirations - hesitation, detailing and excuses. Therefore, in order to decide on your fateful decision, you need: a) do not rely on myths about the advantages of real winners and understand that " advantage is not a guarantee of victory. ”; b) create a plan sufficient to start working on achieving the goal and stop striving for the PERFECT plan, because this simply doesn't exist; c) determine the starting point of your movement, following your natural interest - to finally understand your true motives and desires and give yourself a chance to try. 📌Don't just do - overfulfill Just doing a thing is not enough. In the beginning, we always set too low expectations regarding the energy and resources that need to be invested in achieving a new goal. Of course, we cannot look into the future. However, it's underestimation often leads to defeat The best way to prevent that is to overdo it or overfulfill. Put in extra effort - beyond what was planned - and work more than you think you need to. Not looking for easy ways, but giving everything that you have to a new undertaking. That's the only way to avoid the trap of underestimation and not fail at the beginning of the journey. 📌Don't quit - adjust Difficulties on the way to victory are inevitable. There are two options: quit business and forget your dreams, or meet defeat with dignity this time and do everything possible to win in the future. Any effort has a cumulative effect. Only with time can you see the results of your work - it will be a shame to give up everything before the first signs of success. (That's not a desperate struggle for the impossible.) Victory is a matter carried through to the end. Don't quit your deal, just adjust your unproductive goals. It's even possible to change direction. The main thing is never give up hard work and progressive work. 📌 Don't just start - follow through When you come close to the finish line, various obstacles may arise. But winning is not about preparing, making adjustments, or talking about previous successes. !!!!! Victory is a completely completed business. No matter how insurmountable these obstacles may seem, it's necessary to reach the victorious end. Leaving the goal, almost reaching the top, means losing all the resources that have already been invested along the way, and ruining your reputation due to the loss of trust of others. And don't be surprised, that the last steps on the path require a little more resilience, they are really hard. “98% of what has been done is not done yet. Only the winners overcome the last 2%, ”! 📌Don't calm down - constantly improve After receiving the first victories, it seems to someone, that they can already rest. They reduce the rate of their acceleration and development. However, winning is not a one-time action, but a constant movement. Serial winners recognize how much more can be achieved and are committed to it. They are constantly improving. The best time for it - the moment of "exit" from another victory. That's the perfect time to reflect on mistakes and start working on your weaknesses, try to master a new field and succeed in it, or to learn from even more successful ones. Serial winners get a taste of life in the question "what's next?" That's what distinguishes them from everyone else. WHO ARE YOU???? ARE YOU A SIREAL WINNER?or JUST WANNA BECOME? Share with me in the comments♥️ Thanks for Your attention🙏🏻 Stay in touch🧡 Sincerely yours Rocket Bomb🚀💣 Some of my last similar posts👇
BITSTAMP:BTCUSDEducation
by RocketBomb
3
Accumulation and distribution zones!🥸Hello, traders! Today I wanna tell you about accumulation and distribution zones! ⚡Prices always go from balance to balance and no other way!⚡ Wyckoff said that the price always following one of the 4️⃣ phases: 💥the consolidation zone (flat), where the big player is gaining volume , is called accumulation; 💥if after exiting the flat, demand is higher than supply, then the price rises and an up-trend development is observed in the market; 💥the area of ​​consolidation (flat), where large players exit the position, is called distribution; 💥if after the release the supply prevails over demand, then a down-trend is formed. If you look at these 4 phases of the market, the key problem of forecasting further price behavior will lie in the first of them, in accumulation, when it may not be entirely clear where the price will go after. Below, based on the Wyckoff and VSA method, I'll show how to correctly assess the situation and take a position in the right direction. 🔋🔋🔋Accumulation🔋🔋🔋 🏹Phase A - Market Stop. 🏹Phase B - Supply and demand balance. 🏹Phase C - False Breakdown. 🏹Phase D - Search for entry points. 🏹Phase E - Beginning of a new trend. In the ❗distribution❗ phases, everything is similar to the accumulation phase, only upside down. Important💣💣: don't go into shorts in the accumulation zone; in the distribution area don't go into long!!!! Guys, if you liked my post, put me 👍🏻 and write a comment✍🏻 Don't forget to subscribe, if you aren't already😆 And of course, stay with me, dear💓💓💓 Your Rocket Bomb🚀💣
BITSTAMP:BTCUSDEducation
by RocketBomb
4
Trading vs USD or vs BTC? Read Rocket Bomb 🚀💣thoughts 🔥Hello, my dear friends!♥️ THIS POST IS INFORMATIVE AND EDUCATIONAL ONLY! That's not a trading idea!🙅‍♀️ I created this post especially for beginners, who are interested in understanding altcoins trading! It's suitable on bullish market 🔥 Let's take a look at chart, I have prepared for You.👇 Many people ask why I often trade with Bitcoin? I decided to prepare an answer on the chart for you by analyzing one of my last trades! ATTENTION !! THAT'S ONLY MY EXPERIENCE AND IT CONCERNS MY STRATEGY , which I'm happy to share with you by my work here♥️ In October I bought Hive vs Bitcoin (and advised everyone), then Bitcoin was $ 19,500. Unfortunately Hive continued falling and knocked out a conditional Stop Loss, which I decided not to use and continue holding it. Frankly, it was long time and many times I wanted to sell at a loss!🤪 Only the growth of bitcoin helped me not to see a strong minus for this position! In February, I saw a breakeven position for first time, but in dollars the position more than doubled due to the bitcoin rate. And now, in March, my chart has been fully worked out! And the position is closed at + 70% and the Bitcoin rate has grown x 2.3 times! And in dollars this position rise up to 423%.Take a look 👇 I'm very pleased to share my experience with you, I sincerely wanna be useful to you, because my work here not only charting, that's my soul, my experience, my contribution to each of You! I really wanna be important and useful to YOU!♥️ YOU NEED ALWAYS START FROM LEARNING! So, let's develop together ♥️ Stay tuned by Rocket Bomb 🚀💣
Education
by RocketBomb
11
Have You ever dreamed to become a popular trader?😊Hello, Have You ever wanted to become a popular trader? Have you ever wanted to become famous like Jesse Livermore or, say, Larry Williams? Or do you think that success loves silence? Scientists have calculated that, to one degree or another, 70% of people dream of fame (at least sometimes). That's, by the way, is a natural part of socialization. Here is what the famous American sociopsychologist Orville Gilbert Brim, who studied the nature of fame and ambition, received: 📌 2% of people dream of becoming a celebrity is their main life ambition; 📌In another 30%, the desire for fame is among the main desires; 📌 for more than 40%, the idea of becoming famous appears from time to time; 📌And only the rest (which is less than 30%) do not care about fame. So if we take three traders, then two of them will dream of becoming the "powerful trader" about whom will make legends. Is it good or bad? 🧐 Evolutionarily, the desire for broad personal fame is a socio-psychological mechanism aimed at improving the human race. Great people drive progress, and society rewards them with emotional benefits - reverence, worship, etc. In theory, everything should be cool. In reality, the pursuit of fame can take various forms: 🔎constructive ambition; 🔎non-constructive vanity; 🔎various pathologies. For example, if you wanna be one of the famous millionaire traders, ambition can be a good motivating fuel and will help you grow professionally. But the lust for fame can also ruin a trading career. The problem is, that you can't become a famous trader right off the bat. Let's be frank: worldwide fame is for few. Even in order to gain professional recognition in a narrow circle, you have to work hard. And then the subconscious begins to throw in options, insidiously whispering: "It's okay, that you lost three deposits, took five credits for trading and lose 11 times out of 10. Start a YouTube channel and tell everyone how cool you are!"😉 There is no benefit from such activities. Success is doubtful, and in the worst case, you can even earn the fame of a bla-bla man and be known as an unwise person. But even this is not the most harmful thing. The main problem is that the pursuit of fame is a waste of time and effort. 🔥 A trader chasing emotional illusions ultimately reduces his chances of becoming a professional and gaining real recognition. 🔥 The desire for fame corresponds to the fourth stage of Maslow's pyramid - this is one of the forms of the need for respect / reverence. I already made a post on this topic, I'll leave a link for those who have not seen👇 But it happens that the thirst for fame grows out of completely different needs. Such pathologies include: 🔎Lack of love, which a person tries to compensate with popularity. 🔎The conviction that fame will solve all existing financial, household, social problems. 🔎 Feelings of inferiority. 🔎 Revenge arising from feelings of inferiority. 🔎Envy. In all these cases, there is a substitution of pathological adequate ambitions in life. And the pursuit of fame in an attempt to satiate jealousy, raise self-esteem, etc., takes away resources that could be used to achieve really important goals. 🙏 "I was just doing my job" 🙏 Real recognition comes when a person is on the seventh step of Maslow's pyramid, symbolizing the need for self-actualization. Simply put, is engaged in life's work. One beats, beats to achieve fame, while the other just works quietly, creates, does something there - and recive glory on a silver platter. Although he may not have expected it at all. In general, everything is simple: do the job, and the rest will follow. By the way, psychologists warn that if the desire for fame becomes the leading motive of activity, then it's - "blocks creativity and destroys personality." This doesn't mean, that you are forbidden to dream about how you will become a famous trader. But this dream should not be the main one, or only one. By the way, how can a trader become famous? From whom take an example? After all, the paths of glory are so different. For example, you can gain fame: 🔥demonstrating inspiring examples of the play of the mind and the ability to rise after defeat, like Jesse Livermore 🔥revolutionizing stock trading like Charles Doe and Edward Jones; 🔥breaking stereotypes, like Linda Raschke, who became one of the first tough women traders; 🔥becoming a champion in trading and writing a bunch of books like Larry Williams; 🔥deceiving Hitler and becoming one of the main figures in CME history like Leo Melamed ... 🔥And some are overtaken by the glory of Herostratus - like, for example, Nick Leeson, who in one fell swoop swung over a billion and ruined Barings Bank, which entrusted him with money management. I wish each of You - happiness to do something, that really brings You joy, because: SUCCESS IS NOT THE KEY TO HAPPINESS, HAPPINESS IS THE KEY TO SUCCESS! If you love what you do, you will be successful! Always keep it in Your mind and don't forget about Rocket Bomb 🚀💣 💙💛
BITSTAMP:BTCUSDEducation
by RocketBomb
16
9 Golden Rules of Effective Money Management 1. Choose the correct position size. The basic rule is one: don't forget to minimize your risk and correctly calculate position size in every deal. For example, you can invest all initial capital in one trade. But why? After all, you can never be sure, that particular deal is guaranteed to bring profit. Many professionals use the "Rule of 2% " - when in one position a trader risks no more than 2 percent of him deposit. In this case, if the trade is closed at a loss, you'll only lose a small amount of money. There is also an alternative approach, where the trader risks a fixed amount of money (for example, $ 5), that he would be comfortable with losing. 2. Don't trade too aggressively One of the biggest mistakes is too aggressively trading . Even a small series of several losses in a row, with an incorrectly selected position size, can lead to a significant decrease in the size of your deposit. 3. Always set Stop Loss Placing a Stop Loss order for each trade has practically no drawbacks, only advantages. Very often, traders become emotionally attached to their trades, which can be fatal. For example, if a trade becomes unprofitable, an emotionally involved trader will not want to close it and will believe, that the price can still turn around and go in the right direction. Setting a stop loss helps overcome this problem. Thanks to the stop order, you can strictly control the ratio of profit and risk. You should always follow this rule, so that money management in trading gives you tangible advantages, and the deposit doesn't melt before our eyes. This is one of the basic principles of risk control. Certainly not the only one. 4. Be careful with leverage In the cryptocurrency market, many traders use leverage. It can be useful, but using it can also lead to huge losses. As long as you rationally sizing your position and not using too high leverage, then you are fine, you are safe. 5. Keep your emotions under control Capital management in the market full of emotions: from excitement and euphoria to fear and frustration. Try to free your mind of emotions - this will help you make rational decisions. The easiest recipe not to lose money is to take control of your emotions. All wrong trading decisions are usually made under the influence of emotions. 6. Take responsibility for your results (both losses and profits) How to manage capital? First of all, with full awareness and responsibility. Traders must recognize, that their trades can be both profitable and loss-making. Assuming every transaction will be successful you can be wrong. A realistic trader knows that any result is possible and is ready for it, while accepting at the same time what the market will bring to him. 7. Manage your risk and avoid overtrading A trader should get into the habit of analyzing all types of risks. You should zvoid overtrading, which is often the case for newbies traders , who don't have a plan. With such an approach, the attempt to stick to effective money management in trading often ends in failure. 8. Set the position size and take profit level It is a key element of money management in trading. Before trading, a trader must determine: 🪄Position size 🪄Stop loss size 🪄Take profit level 9. Cut losses quickly and let profits grow According to this money management advice, you should close those trades that lead to losses according to your trading system on time and get the most out of winning trades. Enjoy your trading journey! I try to be useful to You🧡 Always sincerely with You😊 Your Rocket Bomb🚀💣
BITSTAMP:BTCUSDEducation
by RocketBomb
8
Golden Rules for Traders by Rocket BombHi, my dear friends!💋 Let's talk about Perfect trade. Are they exist?🧐 The “perfect trade” is what every trader strives for. But in order to be able to make "perfect deals", you need to remember some rules before entering each of them. First rule: 🔥Realistic expectations🔥 - Sorry, but not every trade will be profitable. REMEMBER That !!! The first step to a perfect trade is to accept and deal with losses, this will help you get a clear mind for the next trade, which may bring you a profit. Second rule 🔥Managing Your risk🔥 We can't control the market, but we can control ourselves The second step to a perfect trade is to control risk. You must clearly calculate how much you can lose on each trade. The third rule of "perfect trading" 🔥Assess Market Condition🔥 Step Three - We need to understand the state of the market and the structure of the market. - Is the market slow and volatile or is it trending? And accordingly, have tactics for each of them. The fourth rule -🔥 STRATEGY 🔥 Step four: NEVER LEAVE YOUR STRATEGY !!! There are different strategies in my trading plan, that are used in different market conditions. 💡Even if the trade is unprofitable, if I follow these four steps, it will still be the perfect trade.💪🏻🚀💣 Thanks for Your attention🙏🏻 Stay in touch🧡 Sincerely yours Rocket Bomb🚀💣
BITSTAMP:BTCUSDEducation
by RocketBomb
10
How to trade <<Divergence>> in the market?Hello, friends! I have prepared a very important and informative post for You. I hope you'll like it♥️ Let's talk about Divergence🧐 The word divergence comes from the Latin "divergere" - divergence, deviation. Divergence is a situation when the movement of the indicator doesn't match the movement of the price. Usually, divergence happen when, for example, the market has reached some new levels, but the indicator cannot reach its previous values. Or, the opposite situation is possible, when the market dropped below a certain level at which it stopped earlier, while the indicator can't reach its previous value. This situation indicates, that the latest market movement is not reliable and is not supported by a large number of participants. So, almost always, after such a breakout in the market, either a reversal or a flat, or it can be a short-term stop followed by a continuation of the trend. There are two main types of divergence: Bearish. When there is a higher price high with a lower high of the indicator. In this case, a down trend reversal is likely. Bullish. When the level is a lower price low with a higher low on the indicator. In this case, we forecast a trend reversal upward. What is the practical significance of divergence? What is the practical significance of divergence? In practice, it allows you to exit the market in a situation when, with long-term growth, we see the threat of a reversal. Divergence tells you exactly where this movement should start. This allows you to enter the market on time and exit on time. This signal is so significant, that even if a trader uses only fundamental analysis and doesn't use indicators, needs to start at least one oscillator to watch the divergence. Thus, the appearance of a divergence may indicate the end of the current movement. Usually, the appearance of a divergence may indicate the end of the price movement and a possible strong price reversal or correction. Divergence is an important and strong signal. As with other patterns and signals, the higher timeframe, the more likely it is! Now let's talk about classes of Divergence Class A Divergence The weakest type of divergence. Talking about a slow, gradual reversal. In the case of a bearish divergence, the indicator shows a lower high at a new high on the chart. For a bullish, on the contrary - we see a new price low with a higher low on the indicator. ❌It's not recommended to open trades on such a signal; it's better to wait for additional confirmation. Class B Divergence The price forms a double top, while the indicator shows a lower high - that's true for a bearish divergence. For bullish - we see a double bottom on the chart and the indicator shows a higher low. Class C Divergence The weakest species. Usually formed in a volatile market. ❌It's better to avoid such signals. If the price creates a higher high, and the indicator shows a double top, it's a bearish divergence C. If the chart shows a lower low, when the indicator shows a double bottom, it's a bullish divergence C. Hidden Divergence In addition to the types of divergence discussed above👆🏼, there is also a hidden one. It's even more effective than those listed above, although it appears quite rarely. Enter on such a signal only in the direction of the current trend.📌 If you see a lower price high with a higher high of the indicator, it is a bearish hidden divergence. It is true for a bullish to find a higher low on the chart with a lower low on the indicator. What conclusions can we draw? 🔸The presence of a Divergence often, but not always, means a trend reversal💡 🔸Divergence is a relative signal that depends on the chart time frame, and the the type and indicators. 🔸It will not be possible to determine the ideal entry moment, therefore it is necessary to use also other indicators and patterns. 🔸This strategy works in theory on all instruments, but in practice it is suitable for those that tend to long-term trends without corrections. If You have any questions - I'm waiting for You in the comments) Stay in touch with me💋 Always sincere with You🧡 Your Rocket Bomb🚀💣
BITSTAMP:BTCUSDEducation
by RocketBomb
25
How to use Fibo levels in trading?Hi guys, as I promised, this post is about Fibonacci Levels for YOU!🧡 Many newbies on the market, and I'm sure this post can be helpful, so must be repeated 💪 Leonardo Fibonacci is a great mathematician who lived in the XI century. The scientist deduced a number of natural numbers, which later began to bear his name. Each number in the series was the sum of the two previous numbers: 1 + 1 = 2; 1 + 2 = 3; 2 + 3 = 5 etc. The result is a series of numbers: 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. Fibonacci numbers have some properties: 📌Division of any number of the series into the subsequent tends to 0.618 (the golden ratio in ancient Greek and ancient Egyptian cultures); 📌dividing any number of the series by the next + 1 tends to 0.382; 📌dividing the subsequent number of the series by the previous one tends to 1.618; 📌division of the number of the series by the second number preceding it tends to 2.618. Fibonacci numbers are often used not only in technical analysis , but also in physics, astronomy and other disciplines.💪🏻 Fibonacci levels are a tool that sets horizontal support and resistance levels on the price chart based on price movement. It's important to understand, that Fibo levels work well when there is a trend in the market. How to determine Fibonacci levels? To determine Fibonacci levels, you need to find the recent significant high and low of the last price movement. When plotting levels for a downtrend, the first point should be at the maximum and the second at the minimum. For an uptrend, you need to do the opposite. Click on the low of the price swing and drag the cursor to the high. In this case, the construction of levels always occurs from left to right. How to trade by Fibonacci levels? The basic variant with an upward movement: we determined the minimum and maximum, set the levels, waited for a rollback, entered the market. The price continues to move - we drag the levels to a new maximum, wait for our rollback level, and enter the market. In a downward movement, we do the same, entering a movement on a pullback. The technical analysis usually uses the number 0.618 or 61.8%, 0.382 or 38.2%, as well as the psychological half (middle) of 50%. ✔ Very often, based on these coefficients in the technical analysis of the market, Fibonacci lines, Fibonacci levels and Fibonacci periods are built. Fibonacci lines are built relative to significant highs / lows and represent support or resistance lines, from which they make a purchase or sale. Fibonacci numbers - the magic of numbers that works in trading and in everyday life . 💥You can simply draw arbitrary horizontal lines on the chart, and ... oh that's mystic... they will also be worked out both in the past and in the future.💥 We can make some conclusions: 🔵Fibonacci tool draws support and resistance lines on the chart based on price movement; 🔵the Fibonacci tool is always applied on the price chart from left to right, both in the case of long positions in an uptrend, and in the case of short positions in a downtrend; 🔵the levels marked between the beginning and the end of the price movement are correction levels, they show which levels the price is likely to return to; 🔵the most common Fibonacci retracement levels are 38.2%, 50% and 61.8%, they are often used to enter the market; 🔵there are two ways to use correction levels to enter the market: aggressive (entry at each of the levels) and passive (waiting for the price to correct in the originally observed direction); 🔵It's important to note that Fibonacci levels are not a trading system, they are an additional tool that only suggests possible correction levels; it should be used only in combination with a trading system or as part of a trading system. I hope everything was clear for You, and You found this post as helpful🙏🏻 I really wanna be useful to you, guys! I make every post with love and it brings me extraordinary pleasure!🙏🏻 Thank you for staying with me💋 Always sincere with You🧡 Your Rocket Bomb🚀💣
BITSTAMP:BTCUSDEducation
by RocketBomb
16
How to tame Crypto Market?🤑Hello, dear bottom catchers😉 It's difficult looking at the market correction. Waiting for a strong and prolonged correction is doubly difficult. Fears and concerns are very easy to understand, when we see today's prices 😱 Each of Us wants to catch the very bottom. With a high probability I can say, that's almost impossible! You can ask me <> I can answer You😉 1. Undervalued buy orders. Trader expects to see price too low and misses the opportunity to buy during the correction 2. The price hits the bottom too quickly and simply "flies" up. That's very typical of Bitcoin 3. Greed. That's a terrible vice. A trader, seeing, that the price goes down for a long time, constantly looks at the movement and tries to predict and grab the bottom, but that's impossible without experience. I can give You advice for protect Yourself!💥 Split Your buy orders🔥🔥 (that's part of my strategy). What does it mean? Using Fibo levels, find the "golden mean" of the retracement and set several buy orders in this zone. (How to use Fibo levels, You can find in my next EDU post, stay tuned ) What will we get from it?💥 1. We don't have to worry about missing the opportunity to buy at a discounted price. By splitting orders, we can average the average purchase price. 2. You don't have to sit at the computer all day and not spoil your nerves. Take a rest. And You'll forget about greed What do you say, friends? I really wanna be useful to you, guys! I make every post with love and it brings me extraordinary pleasure!🙏🏻 Thank you for staying with me💋 Always sincere with You🧡 Your Rocket Bomb🚀💣
BITSTAMP:BTCUSDEducation
by RocketBomb
25
Trading vs Holding 🤯The profitability of cryptocurrencies over a long period is very attractive. So why just not invest in cryptocurrencies according to the <> strategy and keep them a couple of years? 🤔 💥It's hardly possible to give an unequivocal answer to that question, since everyone has their own strategy, psychology, and risk appetite.💥 👍🏻 Some arguments in favor of trading: 👍🏻 👉🏻 not all cryptocurrencies live for a long time, and those assets that are now leaders can become outsiders after only a year or two; 👉🏻 investing in a Buy & Hold strategy is justifiable if there is significant free capital, that can be diverted from circulation for a long period of time. ❗❗You can increase your profitability if you combine the holding strategy with active trading (or at least re-balance the portfolio from time to time). 👉🏻Giving preference only to long-term investment, it's impossible to acquire trading skills, which, by the way, can become an additional source of income. 👉🏻As for the arguments in favor of the Buy & Hold strategy, the image illustrates them most clearly🤣 Thus, trading allows you to profit in the short term, and long-term investment doesn't require frequent activities, as well as the study of various indicators and trading strategies. However, in both cases, a rational choice of assets, discipline and balanced decision-making are required. In any case, if you choose one of the strategies or their combination, you can't do it without knowledge and skills. What do you choose for trading?🧐 Therefore, I always urge you to develop, learn something new, and people who have long been on the market - don't stop self-development.💪🏻💪🏻 Guys, if you liked my post, put me 👍🏻 and write your thoughts in a comments✍🏻 Don't forget to subscribe, if you aren't already😆 And of course, stay with me, dear💓💓💓 Your Rocket Bomb🚀💣
BITSTAMP:BTCUSDEducation
by RocketBomb
12
Wedges Pattern by Rocket Bomb 🚀💣Hello, my dear friends! As I promised, today we are talking about Wedges Patterns! Link on a good view👇🏻 Wedges are some of the main classical figures in technical analysis . There are two types of wedges: - Rising Wedge pattern - both sides of the figure are directed up; - Falling Wedge pattern - both sides of the figure are directed down. ✔A rising wedge pattern is formed when price increases slow and a tapering pattern forms. Price can't go longer rise further, but at the same time, as if they continue to gradually update local highs. That's suggests, that the pressure of sellers (bears) is gradually increasing in the market. ✔A downward wedge pattern is formed when price decline slows down and a tapering pattern is formed, and volume indicators gradually decrease. Prices are no longer able to decline further, but at the same time, as if they continue to gradually update local lows. That's suggests, that the pressure of buyers (bulls) is gradually increasing in the market. 💡My picture shows, that the “Wedge” directed 👇🏻 down is a bullish 🐃 model, since the trend is up and the price has broken the resistance line (went up). And the “Wedge” directed up ☝🏻is a bearish 🐻 model, as the trend is directed down and the price has broken through the support line (went down). These signals are strong and YOU can trade on them. 💣But if the price in both cases would go in the opposite direction (the opposite direction to the trend), then this would be a weak signal. Trading in this case is not recommended, as it's too risky. 🙅🏻‍♀️ Guys, thanks for reading me!🙏🏻 Subscribe and stay with me forever🧡 I'm appreciate Your support🥰 Your Rocket Bomb🚀💣 PS : 👇🏻👇🏻👇🏻Below I put links on my previous ideas 👇🏻👇🏻👇🏻
BITSTAMP:BTCUSDEducation
by RocketBomb
8
Holy Grail Trading System Hello, my lovely friends!!!💓 🔥Today I have something spesial for you today! 🔥 That's Holy Grail Trading System !!! By “Grail” in trading we mean a unique trading system, that can continuously generate profits. According to the legend of the Holy Grail, those who drink from this cup receive immortality. The idea of ​​this scheme is simple. Only by applying of those three conditions You'll become possible to significantly increase capital💰 🧐Let's go briefly through all elements. The first element, trend trading, I think, doesn't need unnecessary comments. Trending strategies for a trader are the best way to make money. But why is this element alone not enough? Even if a trader has an ideal trend trading system, in the absence of a trend, he will lose money. The trader should be where there is volatility, because volatility = profit. The ship in full calm stands still, no matter what sails he had. There is an element of luck. Yes, there is place for external circumstances on the market - there is nothing to be done with it. Not everything is controlled by the trader. It's especially important for risk-averse traders to learn not to get into the market during periods of low volatility . At the last stage, trader need to find balance between the desire to squeeze as much as possible out of the market and the ability to calmly, without nerves, sit out corrections. When the market turns against the position, the trader still doesn't know whether that's a correction or a trend reversal. While sits in position and makes a decision, this movement eats up part of the floating profit or creates a loss. If the trend doesn't resume, a late trader has to close a losing position. The risk should be approximately, that trader can make such a mistake a sufficient number of times and still be afloat💪🏻 Guys, I try very hard for you💓, I carefully select the material, I want to express my thoughts as clearly as possible! 💋I like to teach, I get special pleasure of it !!! Support my enthusiasm with like! Write in the comments : It was clear for you of not? Maybe you have any questions! I'm glad of your feedback !!! Always Yours Rocket Bomb🚀💣
BITSTAMP:BTCUSDEducation
by RocketBomb
22
MA on BTC 🚀💣How to use moving averages!!! A moving average is used to help us forecast future prices and help us identify a trend. By looking at the slope of the moving average, we can better determine the potential direction of market prices 📈⁣ There are two types of moving averages✌🏼⁣ 🔵Simple MA⁣ 🔴Exponential MA⁣ With the use of SMAs we can identify if a pair is trending up, trending down or ranging. The one problem with SMAs is that they are susceptible to spikes. Signals can be false.⁣ EMA’s let’s traders know what is happening in more recent price action.⁣ Disadvanrege of using EMAs is that consolidation periods can present fakeouts The best use MAs in conjunction to eachother. Wait for crosses and use the MAs as a confirmation before enter into deal GOOD LUCK🧡⁣
BITSTAMP:BTCUSDEducation
by RocketBomb
12
<<Reversal Patterns of Technical Analysis>> Hello, my lovely and so clever friends! Today we are talking about <> 🧡 💥 Head & Shoulders Pattern 💥 After the pattern has become clearly visible, namely, the right shoulder is clearly visible, the trader needs to wait for the neckline breakout. Breakouts occur on strong impulses with a sharp increase in volume. Therefore, in order not to miss the entry and enter at the best price, it's better to use a sell stop order. To calculate where the price will go after the breakout of the pattern, it is enough to measure the height of the pattern (vertical from the maximum of the head to the neckline) and postpone it to the breakout point. 💥Inverted Head & Shoulders Pattern 💥 An inverted head and shoulders pattern occurs in a downtrend and heralds an uptrend. The rules for working on a figure are similar to the previous ones. It is worth noting that the head and shoulders pattern is rarely encountered in its pure form. Be careful! 💥 Double Bottom Pattern 💥 After you have identified the pattern on the price chart, you need to wait for the breakout of its resistance line. If the price has broken through the resistance, then the target will be the width of the pattern's range - the distance from the lowest point to the resistance. 💥 Double Top Pattern 💥 A double top is similar to a double bottom. The only difference is that this pattern is reversed and occurs on uptrends. The number of extrema in a pattern can be not only double, but also triple, and even more. But the rules of work will be identical for everyone - enter on a breakout, postpone the target to the height of the figure and wait for its execution. 💥 Diamond 💥 We measure the height and wait for the breakdown of the diamond. If a breakout has occurred, then the price movement target will be the height of the pattern from the breakout point. 💥Cup & Handle💥 Trades are opened on the breakdown of the "handle" upwards. Target is the height of the figure. Thanks for Your attention🙏🏻 Stay in touch🧡 Sincerely yours Rocket Bomb🚀💣 My previous work for You 💋
BITSTAMP:BTCUSDEducation
by RocketBomb
17