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The Breakthrough StrategyGreetings, traders! Welcome to this short, 7-step strategy lesson. Are you new to trading? Don't worry: we're dedicated toward providing the most high-quality, easy-to-understand, and straight-to-the-point investing education to the TradingView community. This strategy lesson is beginner-friendly (we have pictures!), as we've inserted helpful links into each and every term, just in case you don't know them yet. Anyways, let's get right into the steps of this effective trading method , which we've named " The Breakthrough Strategy ": • STEP 1, The Breakthrough: Identify a breakout (or "breakthrough") at the most recent Support/Resistance (S&R) zone. With the horizontal line tool, if you haven't already, mark the level at which price broke: this will be your potential Entry Point (EP). • STEP 2, The Turnaround: Immediately following the breakout, you'll wanna see two or more consecutive candlesticks, going in the same direction of the breakout. After the streak, when you spot the first completely-formed candle, going in the opposite direction, you've found your "turnaround" point! Mark it up with a S&R line: this will be your potential Take Profit (TP) level. • STEP 3, The Other Side: Now, identify the most recent S&R zone, on the opposite side of the breakout zone: this will be your potential Stop Loss (SL) level. • STEP 4, The Average: Make sure that you have your Exponential Moving Average (EMA, 50) installed on TradingView. Is the end of it between the EP and the SL? Perfect! You're ready for the next step. • STEP 5, The Order: Place a Limit Order (TP, SL, and EP levels are mentioned in the previous steps). If, before price hits the Entry Point, things start to get choppy, close the pending order: it is now invalid. • STEP 6, The Execution: Did price hit your Entry Point? The order has been triggered —we're in! Good job, good luck, and hope for some profits. • STEP 7, The Final Step: "Practice makes perfect," so make sure that you backtest this method, to test it out before using it on the live market. Be sure to follow us, for future lessons which will help you significantly increase the power of this strategy! We hoped that this helped you! We ask that you pay it forward, and share this lesson with a friend, a fellow trader, or... heck... share it with your grandmother. “My mission is to help you see forex for what it is: it’s not ‘rocket science,’ but a simple strategy game. Get on the ‘good side’ of probability, develop the proper mindset, and you will prosper.” — Nio Pomilia, Forex Free Press
Education
by ForexFP
1
Make profitable trading decisionsHi Fellow Traders The greatest tool in your arsenal is your Risk/ Reward rules when evaluating the potential expencency and outcome of each scenario. By using this to protect your account it may help you to survive long enough to be profitable. Risk/ reward is quite simple. If I risk $1 on a trade, I need to make on average $1.50 to be profitable. In other words, my risk is 1 and my reward 1.5, therefore it is a 1:1.5 risk/ reward ratio, which is acceptable to potentially enter a trade if it meets your criteria. You want to try an average between 1:1.3 and 1:1.7 when looking for trade opportunities. The Risk/ reward tool on Tradeview is excellent for evaluating and getting a proper picture of the potential upside and downside before making a decision. I hope you enjoy the video and that I have been able to contribute to your potential success as a trader. Please feel free to comment and reach out if you help. Regards Wayne_G
Education
by Wayne_G
1
What Type of Forex Trader Are You?Hello to all, We all are trading with use this nice platform and each of us use a different strategy for trading. I wonder that which one of the strategies is most used. Please write your preference as a comment. Scalpers hold onto for a few seconds to a few minutes at the most. Their main objective is to grab very small amounts of pips as many times as they can throughout the busiest times of the day. Day traders usually pick a side at the beginning of the day, acting on their bias, and then finishing the day with either a profit or a loss. These kinds of traders do not hold their trades overnight. Swing traders are for those people that like to hold on to trades for several days to several weeks at a time. These types of traders can’t monitor their charts throughout the day so they dedicate a couple of hours analyzing the market every night to make sound trading decisions. Position traders are those that have trades that last for several weeks, months, or even years. These traders know that fundamental themes will be the predominant factor when analyzing the markets and therefore make their trading decisions based on them.
Education
by FXLoungeIN
The financial world different market participantsHolding periods are at record lows and people are whining about it. Time to talk a bit about who participates in the market. 1- Liquidity ********************************** Something like half of the trading volume is done by specialists & HFT firms as well as a couple of scalpers which is a name for retail traders that hold for a few minutes to gracefully provide liquidity to real traders. It is not something "shocking", investing requires market makers as intermediaries and an exchange or at least reputable liquidity providers (banks, I said reputable not honest) as well as some rules, and derivatives trading has had this - or most of it - since at least 1750 BC. Yes, HFT are pigs and have no shame front running big funds or sniping day traders which is a name for another group of retail traders, but back in the "floor" days they did just the same, today everything is electronic and smooth, costs have gone down, reactions are better etc. Algos have caused big crashes, so let's hope man does not lose control and we do not end up screwing the markets that we need with technology. 1 issue with HFT is they are undercapitalized, the head of global markets research at Goldman Sachs says they are less capitalized than just 1 major bank. This causes them to aggressively adjust their bids when the market price drops. Back in 1987 human specialists had to beg their banks to give them more money to buy during the crash or the entire world would collapse. You should be able to easilly find an interview of Tom Sosnoff about it. I wonder what would happen if this happened today... The FED in hindsight would print infinite money and give it to hft? The players in this categories are various market makers that we call HFT, as well as to a much lesser degree a few retail traders called scalpers and front running algos. 2- Intraday ********************************** This, if my sources are correct, represents another 30% or close to 30% of stock volume. This had a boom in the 80s and 90s, and again recently with crypto and now tech stocks. Most of the people behind this are brokers that spend alot of money to acquire new clients. "Educators" or "influencers" that refer new suckers to brokers get paid up to hundreds of dollars per client (I should have just done this rather than tryhard). The amount of quant funds infesting the market AND the success they have is directly correlated to how much retail traders (especially day traders) are around and also how much money these day traders are losing. You could say they are all day traders but this should be divided in 2 groups: the technical "day traders" which are all retail, and the professional "quants" that abuse day traders. The biggest quants that made big money are Jim Simons & George Soros quants from the 80s and 90s as I said technical analysis and day trading were very popular. Might have wanted to keep that for myself idk. Bah no one cares. 2 major groups: Day traders & quants. Also much more rare penny stock pump and dumps can be included. 3- Short term participants (days to weeks) ********************************** Once again, alot of the money being extracted here comes from retail investors using random strategies called technical analysis. > Pre rolls. One group of participants that exploit flaws on very small timeframes (days) are all the pre-roll strategy investors. They exploit commodity ETFS that all lose money over time and have to sell their 1! positions at fixed times to then buy on 2! These funds regularly blow up, and lately the Oil fund USO was in the news because it became so big the regulators made it diversify its oil position, what got it so big is a very big supply of dumb money getting all excited at very low Oil prices thinking it was free money (below $20 then below $10 then even negative). Professionals that use these strategies made hundreds of millions from both dumb ETF "investors" as well as retail swing and day traders that jumped at the opportunity to get ran over. Alot of these profits/losses are actually being covered by Interactive Brokers of which dumb clients turned a few hundred thousands into decamillion losses. And they are a prime broker with a barrier to entry (2 years verified experience and $10000 in capital). As usual regulators, after alot of dumb money got hit hard, started an "investigation". USO suckers lost tens of millions months ago, the profit has been taken that's it, but they do not know it yet. According to Robintrack, most retail investors 6 months later are still bagholding what was supposed to be a quick swing trade. Pre-roll traders will sell on 1! before the ETF sells and also buy on 2! before they buy, and sell after the big operation moved the price. In the case of the huge Oil crash, fund traders bought before the price collapse and ended up buying back from idiots that "bought cheap". They made money not by "crashing the price", they made money by holding their winners while dumb money was underwater. This dumb money is actually fortunate that there were short sellers to buy from them so close to expiry. I am not sure regulators with their "investigations" understand this simple concept. From the website etfdailynews: “I make a living off the dumb money,” says Emil van Essen, founder of an eponymous commodity trading company in Chicago. Van Essen developed software that predicts and profits from pre-rolling. “These index funds get eaten alive by people like me,” he says. Quick! Investigations! "The trading house is now the focus of investigations by regulators on both sides of the Atlantic, Bloomberg reported." markets.businessinsider.com Stupid morons. And there's never investigations when "stonk price go up" or when dumb money gets lucky (making them confident and about to lose big). Remember Wirecard... No investigation here. Gee it really blows my mind just imagining the incredibly mind-bogglingly moronic less-than-human mouth breathers that come up with these "investigations". Can't wait for Bitcoin & Tesla investigations. > Trend Followers. "The trend is your friend". "Just follow the trend this is what good boys & girls do". Did trend following get to people heads. It was very popular in the 80s & 90s. Some famous trend followers made gigantic returns exploiting dumb money (not sure all of them knew it). Trend following was the holy grail at the end of this period and even to today (people have slow brains or something), but it has not - or barely - worked for the last 20 years (all of this is about to change imo thought). Today the holy grail is index passive investing , who is making this possible are central banks, and the suckers are honest hard working americans that lose purchasing power while passive investors get fatter. One of the most famous trend followers is Richard Dennis, which in the 70s to 80s turned $1600 into $200 million, in about 10 years. I doubt he had a clue what he was doing and I think it was both lucky timing and lucky with randomly using the right strategy. After making big gains he was really excited and thought every one could make money with no brain (money grows on trees as we all know). "Wow making money is really easy". Typical Dunning-Kruger, except his peak of mount stupid lasted way longer than for other people. He got rekt in the late 80s, got back in his feet and made some profit in the 90s but much less (and never thought of trying to learn something new). Then after the 2000 bubble exploded he just lost money and disappeared. He is probably selling courses now. The sort of general way it all comes together over a period of a few months or years with medium term funds, trend followers & quants versus dumb money: Here is an example from investopedia with sugar: Those are big returns in just about 3 months. A quote from a quant website. "CTAs by being patient trend-followers took advantage of the random methods of chart traders and profited at their expense. Some that are new to trading are not aware of the frenzy in the 90s about intraday trading mainly financed by brokers. Systematic traders took advantage of it and made large returns. But after the random intraday and swing traders were driven out of the market, CTAs have had problems generating returns. There is scarcity of retail dumb money at this point." The 80s & 90s were the period where George Soros and Jim Rogers made monster gains in commodities too. George Soros kept making big profits after that period, Jim Rogers has not. Since 2000 trend followers have been suffering. I got into trend following a few months ago it is going all right. It is making a comeback imo, but I do not think it will last long. It might, we will see. I trust myself to be able to adapt. When this stops working I also have my strategy I have been exploiting for years. If both stop working (unlucky) gee well I'll adapt, SOMETHING ought to be working. I'll survive. I mostly do what I do with Forex thought and it is a different world. If trend following does not work just go for reversals 🤦‍♂️ It's so lame to get famous and get the glory but you were actually bad and you end up losing and have no clue why and just end up selling books and trading courses 😂 So on the short term we got retail swing traders that use random strategies, fomo gamblers, and the systematic trend followers & pre-roll people that abuse them. Also hedgers, and a couple of short term hedge funds that probably do not make money on average. 4- The medium term : Around 1 year ********************************** I heard hedge & mutual funds had median holding periods of 9 to 12 months, I also heard they had holding periods of 17 months. I will assume this is not counting the losers, especially if they have a low winrate, that would mean a TF much below the reality. Retail is completely absent here. There are various strategies. "Strategic" stock picking. Bull bias, bear bias (on the market in general, so they are looking for stocks to buy, or to sell). "Short sellers" (Enron, Tesla, ...). Hedge funds also exploit random day & swing traders and made big profits in the 80s and 90s then last 20 years as retail investing declined have made less, but hedge funds did not go from 100 to 0, it is more tame than trend followers. Recently some hedge funds have struck gold. Bill Ackman made 100R ($2.6 Billion) when the S&P crashed after coronavirus lockdowns. He made big money with price go down, so of course really dumb people cried and accused him of dricing down the price during a CNBC interview ("spreading FUD") probably soon investigation and bla bla bla. Where are all the investigations when some clown says that Tesla is a revolution and going up 1000 fold? Where are the investigation in Max Keiser saying silver and later bitcoin would rule the world? "Oh no no need for investigation when price go up 🤤" 5- The long term: 10, 20, 30 years ********************************** 2 categories: - Private high net worth. Value investors like Warren Buffet, Charlie Munger, even thought they run a company, an example of a private investor is Phil Town which has a youtube channel and writes book he is not very famous but ye that's a private investor why would they be famous? Should they take a megaphone and shout their net worth on the top of buildings? - Bagholders: Can either be retail investors that thought "Buy & Hold" meant "Buy garbage & Forget", I doubt they are aware 96% of US stocks go to zero, well 100% on a long enough horizon but we are looking at less than 3 decades here. Or can be day & swing traders that bought something stupid (USO, Bitcoin...) and refuse to cut their losses so they turn their gambles into long term bagholds. Bill Ackman is a famous bagholder, when he is wrong he is SO WRONG and he just keeps on holding his bags all the way to zero which is really crazy. Warren Buffett early in his carreer has been on rare occasion been a bagholder, what he calls his worse mistake cost him according to himself at least 100 billion, he just kept trying to get that textile company to be worth something. The company Warren Buffett bagheld is called Berkshire Hathaway. Buffett actually rarely holds for more than 2 years, and half of his purchases are sold under 1 year. He has a 100% turnover! From the paper linked below, "we observe a median holding period of a year, with approximately 20% of stocks held for more than two years. At the other end of the spectrum, approximately 30% of stocks are sold within six months." papers.ssrn.com So he loses (or breaks even sometimes perhaps) 80% of the time. But when he wins... you know... 150R. Important: if I got this (didn't read the whole thing) they only looked at what was in his quarterly fillings! Who knows what grandpa B bought and sold within weeks! It is very hard to find what stocks Warren Buffett quickly exited without going over quaterly reports, every one touches themselves at his returns, wants to know what he holds to copy, looks at winners which is almost useless but out of tens of millions of die hard fans it's like not a single one gives a damn about looking at his cut losses, due to low IQ. It is truly mind boggling that over 90% of retail investors just transformed LOOK FOR GREAT COMPANIES AT GOOD PRICES, BUY AND HOLD WINNERS, into "Never surrender never give up just buy absolute garbage down 90%, buy and forget, hold the bag to zero over the long term it will eventually go up". You could literally tell them exactly what to do they'd end up losing all of their money and dying of food poisonning somehow because they are handicapped. Buffett holds for 7.5 year on average (or he did in 2010), with 80% of stocks held for less than 2 years, and 20% held for more with a couple held for several decades. He ain't holding for 50 years or a century. 6- The very long term ********************************** Big pension funds, insurance funds, sovereign wealth funds, mega bagholders (owners of ponzi shares held those to their death dreaming they would magically regain value)... The big, big, BIG boys. They do very little volume in markets because they rarely participate, but when they do they move entire markets. They move alot of money at once, and while random retail traders & quants do big volume day after day, they mostly cancel each other out. The over 1 trillion dollar "NOK" fund owns 1.5% of world shares, and when they do something you can feel it. Socialism (they are not really socialist but whatever) works really well when you have immense wealth. Over 1 trillion for 5 million inhabitants. They hold 2.6% of EU stocks and "only" 1% of american stocks. There is talk that they may sell EU stocks to buy NA holdings, mostly USA obviously. "Norway wealth fund may move $50 billion into U.S. stocks from Europe" www.investing.com That would really help push the price up and help jump start a bubble. 50 billion is just a small adjustment for them. "The central bank has said its advice was not based on any particular view on future return in individual markets or regions." They don't really care. They are trying to preserve the country wealth and are just doing small adjustment ("small"). They hold forever. "The minority centre-right cabinet of Prime Minister Erna Solberg must seek approval from parliament for any major strategic shifts at the fund, a process that could take months to complete and which may involve making compromises." No day trading here... I am old why am I focussing on Norway... Those are the current biggest wealth funds (made of 1 or more funds for the country) in the world: China 2,250,000 million usd - Origin: their bags come from sending free goods to fat americans. They believe they will get something in return. UAE 1,350,000 million usd - Origin: Oil & Gas. Hehehe a few months ago I remember an idiot telling me arab countries were poor 3rd world countries. Norway 1,100,000 million usd - Origin: Oil from the sea. Crossed 10 trillion NOK recently I think. Their children have their future covered. Saudis 900,000 million usd - Origin: Oil from the sand. During an interview the wealth manager Yasir Al-Rumayyan said he wanted to grow it to 2 trillion. Future gambles to take advantage of? Those were the big famous ones. Then you got Singapore, more arab countries... The USA have a (LOL!) 200 billion wealth fund (and 30 trillion liabilities). Talk about a pyramid scheme. If you look at the biggest fund from any source by AUM who do you have at the top? 1- FED - 7,000,000 million usd (but really you can just put an infinite sign here) 2- BOJ - 5,200,000 million usd bigger than the US one relative to population what a scam 3- PBC - 5,150,000 million usd biggest baghodlers in the world (I'm just kidding don't cry China) Then you got plenty of multi trillion US state owned funds (sounds pretty communist to me, I wonder why they are pushing the price up at the people's expense), Japanese megacorps & banks, China communist groups/banks, European banks. Some middle east holders of course. And then a grand total of 0 african country is present in the top 100. Banks really dominate the world. They hold all the capital. It would be a real shame for passive investors & tiktok robinhood holders if the US communist funds that hold over $10 trillion were to liquidate their assets to cover the US foreign liabilities (China) and to pay for social programs wouldn't it? A reaaaal shame 🙃 What is this? I am feeling tingles. Team Biden! It's just a shame they have all these toxic ultra racist, anti business & anti family views. Quick! someone tell the clueless socialist woke crew the US are holding trillions that could more than cover their student debts and social programs! Special mention: Blackrock is the world largest asset manager overseeing more than 7 trillion. And they work hand in hand with the FED.
NYMEX:CL1!Education
by MrRenev
Index Gap Filling Target Strategy in Sudden Falls...(Rare Cases)Broke the trend line, fine retest and sudden fall. In such cases of sudden fall which happens very rarely, booking profits at right support is very important and you can find the right targets too. Targets should be the closing of the previous days. You can book profit at the previous day's closing and enter again with smaller stop loss targeting previous days closings, this is how index might fill the remaining gaps due to gap up openings. This same concept worked in Nifty also same day. Nifty took support exact at the previous days closings. So always mark the closing prices while market extreme volatile. I have checked this multiple times so please test this in live market while shorting Nifty or Bank Nifty. And please be free to comment on this, anything and everything is important. Let me know the con's of this strategy and more pro's are also welcome. Express yourself and like this if you actually understood this concept. Thank You!!!
NSE:BANKNIFTYEducation
by dhole_aditya
Why I do not like breakouts (even if they are great)As you can see on this chart there were a couple of great breakouts, that went straight in the right direction. We also know that trying to catch tops & bottoms is a noob trap, with all the really ungifted new traders that are 95% certain to fail & quit obssessed with catching bottoms (go check the Bitcoin bull community they have a new bottom every 3 months). So why don't I like breakouts that much? Here is my list of reasons: 1- Even after a couple of years, I prefer to stick to 1 group of strategies and really perfect them, become a sniper, rather than chase opportunities all the time and risk going insane (meaning overtrading). That's definitely happening, a way or another. 2- The majority of us that do not work at citadel etc, are competing against traders with a big information and speed edge. Not only are there directly connected to the exchange and can execute faster than lightning while your order goes throught the internet, but they also have access to alot of the order flow (for forex banks legally simply just have it, and for stocks you got brokers selling their retail clients order flow in exchange for "free" commissions. Not sure about CME futures, might be the only ones "safe"). Your competition will KNOW FOR A FACT there is a breakout long before you. You might be able to set an order with your broker to buy a breakout but it's going to get executed like a turtle far after hft firms and other people using unfair advantages. When you enter on a bottom if it break below you are out and don't have to worry, but in this case, winners have this tendency to go your way very quickly and you have to react fast. And of course your orders have to be set in advance no other way no one can be fast enough. With a rounded bottom accumulation type, you have plenty of time... Feels like a race, with a big disadvantage. 3- Which brings us to step 3. You will get scammed all the time. Currency markets are curious, they love to go test levels before continuing in a trend. Unless you want to have very wide stops and a bad reward to risk, the market will stop you out over and over and over and over and over before going in your direction. I can just look at any chart and see it all over. Rather than whine about what a scam this is, why not simply take the opposite side? If the price breaks, then you place an order very far away in case it pumps like this... As close as free money we can make it without straight up profiting of a bug with a broker. 4- If you buy bottoms with the price pumping your way you are likely to experience POSITIVE slippage, with breakouts (in particular with cotadel front running you) you are likely to experience NEGATIVE slippage. 5- You will never get the whole meat of the move (but if you go for pullbacks and bottoms, you might) Not a very important point because in practice you're not drowning in profits from giant winners with buying bottoms, but nonetheless... 6- I think it puts you in the wrong mindset, you can easilly find yourself chasing the market over and over, the strategy is literally buying into FOMO as fast as possible. Whereas if you wait for a pullback, for weeks, unless you lose patience and do something dumb, you are not going to be chasing anything but accepting what the market is going to give you. So to sum up the main reasons for me are: - I don't like the concept of buying into FOMO as fast as possible - I don't want massive slippage - I don't want to get scammed over and over with the price going against me in a minute, and my way the next
Education
by MrRenev
An important lesson...David Schwartz has a quora profile, I am not 100% sure it is him but I think it is. This is where he made this quote. He has been with ripple for 7 years I think? He has a long experience with markets and understands how euphoria exists. Hard to believe he did not expect to profit from FOMO and sell his bags once ripple got big. The entire founder team, they're posting pictures of them partying, at expensive places, et cetera. Just like Charlie Lee and Vitalik, they tell people "there are risks watch out" to protect themselves but very well know people won't listen. And then just like Charlie Lee and Justin Sun they shill the ponzi and then dumb. This guy, David Schwartz, he is not even dishonest. That's the craziest thing. They openly and kindly share advice, in his case he is very active on twitter and quora and answers questions regarding crypto ripple (ofc) fx stocks, trading. They are just so bold about it, I love it! XD Had to share. People buying ripple bags are REALLY asking for it. Even the founders are telling you to calm down... It's really great to short xrp because you have the founders and the team on your side ;) I know baggies really love their bags, but "averaging down" rarely works, it's what absolute cretins do. You might luck out once in a thousand, but do you really want to risk everything and more? Now I am not telling bagholders that are very attached to their worthless bag of feces to sell. Hold on if you want. But if ripple goes way up as you dream of, you'll make alot of money right? What would buying more change? Just means much bigger risks because you can't handle being in the red and want to "scale down" and coumpond on your loss. So don't sell, hold your bags. But I have to recommend simply not buying more than you can afford to lose. Do not go all in ripple or crypto (being 150% in crypto but not more than 5% in any single crypto is NOT smart diversification...you're fully exposed), do not borrow. Ripple bagholder will really have no one to blame but themselves. And in some cases, certain people that are super cocky and call themselves "legends" and "master of charts" and put 25% of their money in this, it will be very hard not to laugh!
BITSTAMP:XRPUSDEducation
by MrRenev
18
First Loss In 2 Months - Important LessonWe just took our first trading loss in two months on the GBPJPY short that we initiated a couple of days ago. I always welcome losses when they are controlled and within the confines or our trading system , which this GBPJPY short was. Why is that? Because I know that every loss is one trade closer to the next big win. And having a 81% success rate since the last loss at the end of May 2019 tends to make any loss much more bearable ;) How do we remain unwaiveringly confident even in the face of losses? Easy. Trade with a system that has a proven edge. Not over one month. Not two month. Not even just one year, but a system that has a consistent track record over at least two years of backtesting. It should be rooted in sound technical analysis so that you know the odds are always in your favor when you place that next trade. Because we have so much data for this system we know all the stats related to it. Therefore we will start experimenting with even bigger position sizing in a separate "High Risk" account. It will ask to stomach much bigger drawdowns but for much bigger returns as well. More to follow, be safe and good luck!
Education
by FollowMyForex
How to: "Auto-Trendline Strategy"RULES: -----------------Auto-Trendline Strategy ------------------------ For LONGS: 1- 3 Green squares on the Trend meter (Oscillators) 2- Green Trend line price Break 3 - Price above 10 EMA 4- Watch for support/resistance Gap in between. 5- Open 1:1 Risk reward ratio Long based on the largest wick of last 8 candles. For SHORTS: 1- 3 Red squares on the Trend meter (Oscillators) 2- Red Trend line price Break 3 - Price below 10 EMA 4- Watch for support/resistance Gap in between. 5- Open 1:1 Risk reward ratio short based on the largest wick of last 8 candles. In our case rule 1,2 and 3 are coded in the triangles so you only need 2 indicators (Auto-trendline strategy) (Support/Resistance zones) You only need to follow rule 4 and 5. DO NOT WAIT FOR FULL TP, THIS IS A SCALPING STRATEGY DONT GET GREEDY when alt season begins this strategy is gonna be golden =) enjoy
COINBASE:BTCUSDEducation
by AndresVasconez
56
The best Van Tharp's Quote!! Read all his books!SELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY Van Tharp “When you understand what’s involved in winning, as do professional gamblers, you’ll tend to bet more during a winning streak and less during a losing streak. However, the average person does exactly the opposite: he or she bets more after a series of losses and less after a series of wins.” Over the 18 years of trading the Futures/ Stocks and Currencies market, Van Tharp's books have help me immensely. I suggest you read his books. Some of them are listed below; Trade your way to financial freedom Super Trader Trading Beyond the Matrix Safe Strategies for financial markets Financial freedom through electronic day trading I have a large collection of trading books. If anyone needs suggestions on great trading books i would be happy to send you a list :)
Education
by SMPTrader
9
13 tips for tradersI had this on my hard drive, I thought I would wipe the dust of it and write in in a clean manner in a post, helps me think more clearly. I need, and everyone can benefit from (new intermediate advanced legend even), having all of this in their mind: 1) Advice that trading is 95% psychology ===> Throw it in trash container Worse advice I have ever seen, or I totally missed something. Anyway, simple proof that this is all a load of feces: 5% of the population are psycopaths (not the murdering kind) so if this was that important they would all driving roll royce's. Also I am not a psycho (I think) and I do not have much issues with this... I guess not beeing dumb enough to go ALL IN *100 helps. Also... then, let's just let a bot do the trading. Making lists like this learning more everyday and always evaluating our own performance and track record, filter what does not work in certain market conditions... This matters 10000000 times more than "muh feeling :'(" 2) Look for ideas opposite to yours, especially beginners (less than 1000 hours trading/learning) Watching what others are doing helps, and when you have an idea looking for views opposite to yours really helps. Famous billionaires do this alot. Especially they surround themselves with people that view the world differently. Of course, do not waste time arguing with bagholders, and sadly alot of ideas opposite to yours you might find are trolls drawing arrows pointing up to unrealistic targets, it could even convince you that the "opposition" are clowns and there is no way you could be wrong, so do not fall for that trap. Just because someone is stupid does not mean they are always wrong. Consider bad TA as 50/50. 3) Noobs want a sure thing. Good luck with that one. 4) "It is impossible or super hard to make money you are competing against the best" ==> Trashcan advice... First, for lighting fast scalping they are using microwaves now... You are not going to win, sure. But not only is the competition really not that good (maybe I am a little biased here idk), but you do not even have to compete with them. Big money buys, just follow the momentum, ride on their backs. Forex is full of huge money (central banks, international companies buying a currency) they are not trying to rip traders off by hunting their stops, they actually need to exchange currencies, nothing more. Beeing arrogant and thinking every one is a dumb ape but you is probably a big plus :) All that matters are facts, "Is this pattern profitable?" "What is the winrate?" "What is the risk reward I get on average" "How long does the trade last?" "What are the fees?" "What are the odds of a massive selloff?". 5) "We dropped 90%, this HAS to be the bottom. How much further can we drop?" We can drop another 90%. And another 90%. And another 90%. And so on. I did not find any statistics but I am pretty sure that looking at ANYTHING that lost 90%, you would find that the vast majority of the time it was not "a huge opportunity" well it was, but not for buyers. Afaik some great traders made and make big money by shorting dead trash before it goes to zero. If a company is dead, how do shortsellers find buyers? Because to sell you need a buyer. Well, all the idiots that skipped math class and think "this is a great opportunity". Quit trying to fool me, I am insanely bad at maths, how can you drop 90% if you alreayd dropped 90%? How many more times can we drop 90%? * points and laughs with his redneck friends that only have 5 great-grandparents * x is a real positive number (R, +, .). y is an integer. x^1 > 0 since we have said that x is >0 and x^1 = x Now, consider x^y > 0. If that is the case, x^(y+1) >= 0 since x^(y+1) = x^y * x and the product of 2 positive number is positive. And if the result was 0 then it would mean than 1 of the 2 numbers was 0 (I think I don't need to prove this) so it will be > 0. There are plenty of stories of money managers that fell for "it CANNOT fall lower" and got destroyed. The internet is full of bagholders that get destroyed all the time with that insane logic. I do not even profit from this... Maybe I should rethink my whole strategy, when I see the sheer amount of bagholders with "buy the dip" mentality I could profit from...Might have been wasting my time this whole time when I could just short bagholder crypto's/stocks. Well maybe not crypto's as they are long sideways (complacency) lmao complacency @ -95% :D 6) "Soooo this means... y can be as high as we want it to, or in other words the number of times we can go down 90% before touching 0 is INFINITE." I do not know what the "record" is. I know that some companies have started at 10000$ and more and did not disappear even when their price was at 10 cents, that is a drop of 90% 5 times in a row. There are several examples, but 1 I see alot on social networks (lots of experts were recommanding to buy the dip "opportunity of a lifetime" when it dropped 90%) Of course it made 5 90% drops in a row looking at bottoms, but if we look at bounces from the tops after it bounced, it is obviously going to be more than 5. You just... cannot make this up.. And there are people defending it and claming they did the right thing when they "bought cheap" and are thinking of their yacht color etc. I cannot make this up. 7) Use excel. Have a process. This kind of stuff. Here is what I have for 1 of my strategies, I just wrote it down yesterday, helps me think more clearly and stop thinking about it: Pre-entry: Check previous occurrences on the chart, do some TA. Note where structures are. Entry: Entry is on the level or if we're past it a little after previous low. Target and stop loss: Initial target T1 is next structure, usually 1% for FX. Set stop loss to get a reward:risk of 2. Trade management: Close half at my target 1, stay until final target as long as the price stays above 0,382 to 0.5 fib. Here is an example of a winner I would have shorted following that strategy: Another one: 8) Money is made missing out. You make money when you miss out. Let me type this a second time: YOU MAKE MONEY WHEN YOU MISS OUT "You missed out" that sentence... wow. I do not know about others, but when I miss out a move, I like it, I am happy now, I really am. Because I know I am filtering all the bad trades. If even some good ones get caught, then I must be doing a good strict job right? Let's check the Bitcoin chart real quick. Here are a few moves I missed out: a- False break b- Buy the dip c- Big money is stepping in - Yes, people really thought a major bull market was starting. Easy to say how foolish that was in hindsight, but back then I was pretty lonely saying that was a bull trap. Even got banned from TV for calling it a bull trap. 9) Do you want to have a life? Or be exceptional at one thing? Having a life translates too: beeing basic sheeple that tries to mirror the people around him to avoid feeling different, does not have it in him to do whatever he wants but a slave to what others think of him/her, and has a boring depressing life he hates and should hate. Be a sheep or be a winner, your choice. 10) Day trading is bad, you can only make money bla bla bla. The only reason why daytrading is less profitable than say swing trading is spreads. I do not have the exact numbers here, but a broker analysed the millions of trades his clients took, and the majority of losers... Their losses equaled the fees... You aiming for an intraday 0.3% move and the spread is 0.02%? That is 6.6% of your profit. It can add up really fast. You need a large edge and alot of "margin" as in much more profit than losses to not get hit by fees. I was daytrading a couple of months ago, I filtered so much I had 3 trades a week. And all winners. 3. In a week. "More is better". There is NO WAY that someone making 10+ trades a day is only taking really awesome trades and not giving up alot of his profit to his broker, unless he is trading crypto on Gdax/Bitmex but crypto trading is dead now. I did it all, and it all works, from scalping for a few seconds to holding for 2-3 months. But you have to spend a little while writing down what you want to do, make sure the fees are small compared to the profit you realistically aim for. 11) Become a specialist. Find 1 strategy and spend all your time on that. Or find 1 market... but that one... Nah find 2 markets... What will you do when your market is sideways/dead? I have 1 single strategy, I am learning about other ones at the moment but I only really have one. 12) If you are new... go for a SIMPLE strategy, do not try to reinvent trading and be greedy. These are the strategies I am looking at: - My strategy is picking tops and bottoms where reversals happen (advanced, I would not recommend to most :p) - I am learning about hidden divergence (trend continuation) (intermediary difficulty) - I am interesting also in continuation inside bars when there is strong momentum (beginner friendly) Actually my strategy has to be one of the hardest there is. I use divergence as a filter + additional reason to go against the trend. I have become an amateur-expert at reversals. I know, this is terrible, every one says not to go for this, but it worked for me till now. I still can use ALOT more experience. Maybe one day I will call myself an expert. This strategy, if I am correct, is where greedy noobs get slaughtered. It is not easy, it is so dangerous. Sure you look at the chart and think "oh these divergences pop out, I could easilly buy here and sell here". Or "This was a clear bottom/reversal I could easily buy here". Nope. Sorry. You could not. What I started with was basic trendlines. I would look for anything bullish and buy when the trendline is touched, then sell when it goes ballistic, if it drops below the line I AM OUT. I was not very excited about making money when I started, but I really really did not want to lose any. I think this is the approach people should have (right?). Here is an example of a trade I took a year ago before I got bored and switched to another non recommended highly dangerous strategy :D 13) Trading is easy, but it takes time, and all these other qualities you have heard about. Take something simple: Support and resistance. Pretty basic. Just horizontal lines. Well, I think I am someone smart, I am a very fast learner, and I do not exagerate when I say I spent THOUSANDS of hours analysing support and resistance. Plus at least several hundred looking at RSI divergence alone. Plus hundreds looking at market life/cycles. Plus hundreds looking at different market conditions. Plus hundreds looking at moving averages. In total I am at 5k in a year. To become an engineer, you will need 5 years (is this the same in all countries? Can't be much different). You get 200 class days a year, 8 hours a day + 1 for homework (well maybe some people need more idk OR skip all lessons skip homework and rush rush before exams works too I guess) so that's 1800 hours a year or 9000 total. Of course you learn alot of useless stuff, but when you start working you have to learn your new craft anyway. Would you let an 18 yo surgeon on his year 1 operate on you? Would you expect him to reinvent surgery? Yes actually, but not in the good way :D Now trading does not require 10 years of studies (hey especially if you full specialize on 1 thing and 1 thing only), but I think you will need a couple thousand years under your belt to really know what you are doing. If you are lucky and have the qualities of a good trader in you as you start, and go for that 1 simple strategy and nothing else and respect all the rules (easy as you already have all the qualities) you could start making money pretty quick but not too quick (you have all of the qualities = you don't risk too much when you don't know what you are doing), you might get hit when a bull market turns to bear, but you will not get hit hard as you have all the qualities a trader needs. Otherwise, it will take time (or beginner luck), and in both cases before being really good you will need a couple thousands hours under your belt. So, the best advice you could get: if you do not like this, forget about it. Do not force yourself. The power of greed is not going to turn you into a millionaire even if you really really want to. It will turn you into a hobo thought, for sure.
Education
by MrRenev
Trend Reversal Alerts Strategy in DepthThis idea based on one of the simplest trading strategies in the world Trend-Reversal-Alerts-Strategy that I shared recently. Now I want to spread few words about how you should make it perform better with help of buy and sell resistance and I will show you the exact methods. But first, if you still not sure how this strategy tester is actually work you should definitely read this: TradingView Blog: EN/new-features-improvements-strategy-backtesting RU/new-features-improvements-strategy-backtesting Also I want to recommend an article that I googled. It examine in depth and gives a perfomance summary on every single subject: tradingview-strategy-tester-performance-summary According to Buy/Sell Resistance. When new candle created with assigned Open value, Resistance = 0. In the second Close start moving it changes so called Resistance of that candle. It could be negative or positive. So by setting resistance you can tell this script to enter/close your trades only when Buy/Sell Resistance values are greater or equal than your settings values. * You should tweak it only after all strategy tester options are ready. Very important! I do it in a simple way : open settings -> Buy Resistance = 1 -> Sell Resistance = -1 -> then if nothing change -> Buy Resistance = 1.5 -> Sell Resistance = -1.5; otherwise -> Buy Resistance = 0.5 -> Sell Resistance = -0.5 and so on... * This is very important to do to eliminate in the future "resitance issues" - when you can't enter/close trades because of your resistance settings. That is all for now. Take care and bye bye!
SP:SPXEducation
by sequentialvzion
3 TRADING STRATEGY'S IN ONE CHART - EXPLAINEDHi Traders, Please find below three basic trading strategy's that can be implemented to any market on a daily basis. I have only given out basic information on the ratio's and Fibonacci's of the three strategy's, should you need anymore in depth information don't hesitate to contact me. 2618 Rules Of Engagement: 1. Double top 2. Break & close below neckline / support 3. Sell at 0.618% Fibonacci Retracement Gartley Pattern Rules Of Engagement: 1. 0.618 Retracement of the X to A leg 2. Atleast a 0.618 Retracement of A to B leg ( can't exceed A ) 3. 1.272 Retracement of the B to A leg 4. Buy at the D leg ( 1.272 ) The ABCD Rules Of Engagement: 1. 0.618 Retracement of the A to B leg 2. 1.272 Retracement of the B to C leg 3. Buy at the D leg ( 1.272 )
Education
by UnknownUnicorn180388
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