Trading advice part 6: Special risks with crypto assetsSpecial risks, especially when dealing with crypto assets
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As the crypto market is comparatively “young” and only lightly regulated (compared to conventional markets), there are a number of potential risks to losing your own assets. In the following section, we highlight some of these risks and provide tips on how to avoid them.
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-- Risks with self-custody wallets --
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When using self-custody wallets, regardless of whether they are hot wallets (software) or cold wallets (usually hardware), the control over your assets lies with you and no one else. If fraudsters manage to convince you to disclose your private keys or the secret recovery phrase, they will subsequently have full access to your funds.
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A little metaphor for better understanding:
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The wallet can be imagined as a locked safe deposit box in a public place. The private key is the key to the locker. The secret recovery phrase is a construction manual for the key to the locker. If an attacker succeeds in obtaining the private key, they can directly unlock the locker and steal the contents. If the recovery phrase can be obtained, it can be used to create a copy of the key to the locker and open it within a very short time. In both cases, this is possible very quickly and without the locker owner being able to do anything about it.
Once an attacker has stolen crypto assets from your wallet, it is no longer possible for anyone to reverse the transaction in decentralized blockchains. Immutability, i.e. the inability to cancel or reverse transactions, is one of the most important features of blockchain technology.
So be aware that with control over your assets comes the added responsibility of protecting those assets. Below we outline some common tactics for detecting fraudulent intent or attacks. Being aware of these is already an essential preventative measure.
Caution
If you suspect that you have been defrauded, we recommend that you report this to your local law enforcement agency as a criminal offense.
Attention
If you suspect that you have been cheated, we recommend that you report this as a criminal offense to your local law enforcement agency.
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--> Phishing <--
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The attack variant of phishing is one of the most widespread and successful methods of gaining access to other people's assets. This is a method in which the attackers pretend to be someone else, usually famous people, or pretend to be from reputable, mostly well-known companies. The aim is to get people to disclose as much personal data as possible. The attackers “fish” (phishing) for information, so to speak.
To this end, fake emails are usually sent, fake websites are created or the attackers pretend to be someone else on social networks. The ultimate goal is often to obtain the secret recovery phrases, private keys or other specific personal information of potential victims and steal their assets or money.
Phishing scams are ubiquitous and not unique to crypto assets. However, attackers are very active in this area due to its unique characteristics. These attacks can target assets in self-custody wallets as well as assets on exchanges.
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--> Possible attack vectors for phishing <--
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-- Attack by means of spoofing: fakes of legitimate websites --
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Spoofing is when a malicious website is disguised as a well-known, trustworthy platform. Fake websites may look almost exactly like an official website, but on closer inspection, small differences can be detected. For example, attackers use a domain address that looks very similar to the real website. They may change one letter of the company name or use other domain extensions such as “.biz” or “.info”.
Fake websites are successful because many attackers buy advertising space in search engines. As a result, advertising links for the fake sites appear higher up in the search results, making people think it is a legitimate website. Therefore, avoid clicking on advertising links when searching for a website. Even if some ads lead to the correct websites, it is good security practice to only click on the search engine results themselves and not the advertising links, and also to check that the address begins with “https://” and that the URL is spelled correctly.
Note
The initial letters in web addresses “https” stand for “Hypertext Transfer Protocol Secure”. This protocol, the transfer protocol, is the language in which your web browser communicates with the server, so to speak. In contrast to “http”, this communication is encrypted with “https”. This prevents external parties from being able to read the content directly. But beware, the fact that an “https” connection is used is no guarantee that the website is secure.
Be very careful not only with search engines, but also with social media when it comes to advertising links. Fraudsters often set up accounts on popular social media platforms such as X/Twitter, Reddit, Facebook, TikTok, Telegram, Instagram, Discord and other social media platforms and wait for vulnerable users to exploit them.
The attackers often offer good advice or seem to actively want to help you to make you believe that they are reputable and that you can rely on them. Once they have gained your trust, they redirect you to a fake website where they ask for your personal details. They use official-sounding terms like “validate your wallet” or “verify your wallet” or “verify your info”.
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-- Attack using fake crypto tokens --
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Similar to fake versions of legitimate websites, fraudsters can also create and distribute fake versions of legitimate tokens, particularly in over-the-counter (OTC) trading. Fraudulent tokens look and behave like their legitimate counterparts, but have no value.
Counterfeit tokens can be recognized in particular by checking the underlying token contract address. This can be viewed on the major overview platforms such as xxxx or xxx.
Be wary of tokens with an unknown reputation, low holder numbers, low transfer numbers and missing code audits. Although none of these checks automatically rules out the legitimacy of a token, a token that does not meet all of these criteria should be treated with caution.
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-- Attack using fake wallets and apps --
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Both hot wallets and cold wallets can be counterfeited. When purchasing cold wallets (e.g. Ledger, Trezor, SecuX, D'Cent, Shift Crypto), make sure you buy from reputable platforms or from the manufacturer itself. Counterfeit or tampered products are increasingly coming into circulation, particularly on resale platforms or in marketplace trading.
Although Apple and Google control their app stores very well, counterfeit wallets and malicious apps can sometimes still get through. When attackers put fake versions in the official stores, they use screenshots and images of the real app as well as fake reviews to make their wallets look legitimate.
If you are technically savvy, you can use a checksum and look for the release hashes to verify that the download is signed. You can also enable auto-update in your phone's settings or desktop app to update your already legitimate installed apps.
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Note:
This is a small excerpt from learning content, so the list is incomplete at this point. There are a few more dangers & risks.
Greetings from Germany :)
Advice
What Experienced Traders SayHey! In this post, I would like to share seven unexpected tips that can transform your trading approach and mindset.
These insights, collected from various sources and trader experiences, challenge conventional wisdom. Implementing these principles can significantly enhance your trading performance and decision-making .
7 UNEXPECTED TIPS
1️⃣ Trading More or Longer is Not Better: Quality over quantity should be your mantra; focus on high-value trades rather than increasing volume. Trade proven setups.
2️⃣ Trading is Not About the Market; It's About You: Your mindset, discipline, and emotional control play a pivotal role in your success. Don't gamble!
3️⃣ The Focus is Not on Winning; It's on Not Losing: Risk only what you can afford to lose. Protecting your capital should be your primary goal — profits will naturally follow.
4️⃣ Demanding Certainty is Not Productive: Think probabilistically. Embrace the uncertainty of the markets; flexibility is key to adapting your strategies.
5️⃣ A Trader Does Not Need to Be a Genius: Successful trading is about consistency and learning, not innate talent. Get smart.
6️⃣ The Harder You Try To Make Money, The Harder It Becomes:
LET IT GO! Sometimes, letting go of the need for immediate profits can lead to better results.
7️⃣ How Often You Win is Less Important Than You Think: Focus on your overall strategy and risk management rather than just win rates. You can be PROFITABLE with 33% win rate!
What do you think about these unexpected tips? Have you experienced any of these insights in your trading? I’d love to hear your thoughts and experiences — drop a comment below!
If you found these tips valuable, please give this post a like and follow for more insights!
Probably the Biggest Trading Advice CollectionHey traders! We hope you find these trading advices helpful!
If you appreciate our ideas, give us a quick 💜💜
Top 50 Trading Advices
1. Risk Management is Key: Always define your risk before entering a trade. Use stop-loss orders to limit potential losses and protect your capital.
2. Stay Informed: Keep up with financial news and events that can impact your assets. Use economic calendars and news alerts to stay ahead of the curve.
3. Keep Emotions in Check: Emotions can cloud judgment. Stick to your trading plan and avoid impulsive decisions, especially during volatile markets.
4. Use Technical Analysis: Learn to read charts and use technical indicators. They can provide valuable insights into market trends and potential entry/exit points.
5. Diversify Your Portfolio: Don't put all your eggs in one basket. Diversification can help spread risk and improve long-term performance.
6. Paper Trading: Practice with a demo account before risking real capital. It's a great way to test strategies without financial consequences.
7. Continuous Learning: The markets evolve, and so should you. Stay updated with trading books, courses, and webinars to refine your skills.
8. Keep a Trading Journal: Record every trade, including your thoughts and emotions. It's a valuable tool for learning from your successes and mistakes.
9. Trade During Peak Hours: Liquidity tends to be higher during peak trading hours, which can lead to tighter spreads and better execution.
10. Stay Disciplined: Discipline is the cornerstone of successful trading. Stick to your trading plan, even when things get tough.
11. Monitor Market Sentiment: Pay attention to market sentiment indicators, like the COT (Commitments of Traders) report, to gauge how traders are positioned.
12. Use Limit Orders: Instead of market orders, consider using limit orders. They allow you to specify the price at which you want to enter or exit a trade.
13. Avoid Overtrading: Set a daily or weekly trading limit to prevent overtrading. It's easy to get caught up, so discipline is crucial.
14. Backtest Your Strategies: Before deploying a new trading strategy, backtest it using historical data to see how it would have performed in the past.
15. Stay Patient: Wait for the right opportunities. Not every price movement is a trading opportunity, and sometimes it's best to sit on the sidelines.
16. Understand Correlations: Be aware of how different assets are correlated. Understanding these relationships can help in risk management.
17. Keep an Eye on Fees: High trading fees can eat into your profits. Look for brokers with competitive fee structures to maximize your returns.
18. Network with Other Traders: Join trading communities or forums to share experiences and learn from fellow traders. Collaboration can be enlightening.
19. Adapt to Changing Volatility: Adjust your trading strategy based on market volatility. Some strategies work better in volatile markets, while others shine in calmer conditions.
20. Mental and Physical Well-Being: Take care of your mental and physical health. Trading is demanding, and a clear mind and body can make better decisions.
21. Stay Adaptable: Markets change, and so should your strategies. Be willing to adapt and evolve with changing conditions.
22. Understand Leverage: If you use leverage, make sure you understand how it amplifies both profits and losses. Use it cautiously.
23. Keep an Eye on Economic Indicators: Economic indicators like GDP, employment reports, and inflation can provide insights into broader market trends.
24. Avoid Revenge Trading: Don't try to make up for losses by immediately entering more trades. Stick to your strategy and avoid impulsive actions.
25. Set Realistic Goals: Have clear, achievable trading goals. Knowing what you want to accomplish can help you stay focused and motivated.
26. Trade What You Know: Stick to assets and markets you understand. Trying to trade unfamiliar assets can lead to unnecessary risks.
27. Stay Informed About Regulations: Be aware of the regulatory environment in your trading jurisdiction. Compliance is crucial to avoid legal issues.
28. Avoid Weekend Gaps: Markets can experience significant gaps over the weekend. Consider closing positions on Fridays if you're concerned about weekend gaps.
29. Avoid Trading on Tips: Don't base your trades solely on tips or rumors. Conduct your research and analysis before making decisions.
30. Practice Patience: Trading success takes time. Don't expect instant riches. Be patient, persistent, and committed to your craft.
31. Maintain a Trading Routine: Establish a daily routine that includes market analysis, review of open positions, and research. Consistency can lead to better decision-making.
32. Keep a Clear Workspace: Organize your trading environment. A clutter-free workspace can help you stay focused and reduce distractions.
33. Avoid Overconfidence: Overconfidence can lead to risky behavior. Always approach trading with humility and a healthy dose of skepticism.
34. Scale Positions: Consider scaling into and out of trades gradually. This approach can help manage risk and optimize profit potential.
35. Use Trading Journals: Maintain a detailed trading journal to record your trades, including entry and exit points, reasons for the trade, and emotions. It's a valuable learning tool.
36. Risk-Reward Ratio: Ensure your potential reward justifies the risk. Aim for a favorable risk-reward ratio in your trades.
37. Stay Calm During Drawdowns: Drawdowns are a part of trading. Stay calm and avoid making impulsive decisions during losing streaks.
38. Learn from Mistakes: Don't dwell on losses; instead, learn from them. Each mistake is an opportunity for growth and improvement.
39. Stay Grounded: Avoid letting wins inflate your ego. Stay grounded and maintain discipline, regardless of your trading success.
40. Consider Seasonal Trends: Certain assets exhibit seasonal patterns. Research and consider these trends when making trading decisions.
41. Utilize Fundamental Analysis: Combine technical analysis with fundamental analysis for a comprehensive view of the markets.
42. Stay Informed About Global Events: International events can have a significant impact on markets. Stay informed about global news and geopolitical developments.
43. Stay Informed About Global Events: International events can have a significant impact on markets. Stay informed about global news and geopolitical developments.
44. Avoid Chasing Trends: Be cautious of entering trades late in a trend. Wait for pullbacks or retracements for better entry points.
45. Trade with a Clear Mind: Avoid trading when you're stressed, tired, or distracted. A clear and focused mind leads to better decisions.
46. Learn about Position Sizing: Determine the appropriate size for each trade based on your account size and risk tolerance.
47. Utilize Mobile Trading: Mobile trading apps can provide flexibility, allowing you to manage your trades on the go.
48. Stay Humble in Victory: While celebrating wins is natural, stay humble and recognize that markets can be unpredictable.
49. Consider Tax Implications: Be aware of the tax implications of your trading activities and plan accordingly.
50. Avoid Overnight Risk: Consider closing positions before major news events or overnight gaps to minimize risk.
51. Continuous Education: Commit to lifelong learning in trading. The more you know, the better-equipped you'll be to navigate the markets successfully.
Remember that trading involves risk, and there are no guarantees of profit. These advices are meant to help you become a more informed and disciplined trader, but always approach the markets with caution and a well-thought-out plan.
Happy trading! 📊💼
What's the Best Trading Advice You've Ever Heard?In the comments below, share the best trading advice that you've ever heard. This could be an intelligent quote you heard or read. It could also be a piece of advice given to you by a family member or friend.
Let's create a collection together!
We'll also be gifting exclusive and limited edition TradingView shirts to 5 lucky comments! Please keep in mind that these shirts are only for members based in the US or Canada. If you're from another country, and you're randomly selected, we'll gift you some TradingView Coins.
We look forward to reading all the comments below 🔥
Why Failure Is Key Of Success
Like anyone else on Earth, I’ve had successes (and failures) in years past, at both the personal and professional level. If you’re scoring at home, that’s called being a human being. I can probably make a case that failure is more important than success in many respects because you can’t really succeed unless you’ve truly inhaled your failures (own it!) and then exhaled them to improve your future approach.
There is no finality about failure, said Jawaharlal Nehru. Perhaps, that is why learning from failure is easier than learning from success, as success often appears to be the last step of the ladder. Possibilities of life, however, are endless and there are worlds beyond the stars-which is literally true. What appears as success in one moment may turn out to be a failure or even worse in the next moment.We often do not know what is failure and what is success ultimately.
Failure gives us the opportunity to bounce back, to learn from our mistakes, and helps us appreciate success.
Failure is therefore not the end, but only a stage in our journey. If it crosses our path and we know how to draw the necessary lessons from it, it even allows us to question ourselves when it's necessary and by doing so, it moves us forward.
Dear followers, let me know, what topic interests you for new educational posts?
TRADING OR A JOB? DEEP DIVE❗️
Are you torn between choosing a job and getting into trading? Both have their advantages and pitfalls, but by combining the two, you can reap the rewards of both worlds.
🚷Firstly, let's consider a traditional job. A job offers security, stability, and a predictable income. You work for a set number of hours, and you receive a paycheck. You have employer benefits such as healthcare, 401k matching, and paid time off.
On the downside, you are limited to your salary, which may not always reflect your hard work and dedication. You may feel stuck in your role as there are usually limited opportunities for career advancement. And if you lose your job, you lose that source of income.
💹Now let's consider trading. Trading offers the potential for uncapped income, flexibility, and the autonomy to make your decisions. You can trade anywhere with an internet connection, and there are many different markets to choose from, such as forex, stocks, and commodities. You have complete control over your financial destiny.
However, trading is not for everyone. It requires a lot of time, effort, and discipline to become successful. There are risks involved, and you can lose money if you do not know what you are doing. It can also be a lonely profession as you may be working alone most of the time.
💡Now, what if we combine the two? This is where the concept of "side hustles" comes into play. You can keep your job for the stability and security, but you can also trade on the side to increase your income and diversify your portfolio.
By trading on the side, you can use the abundance of time outside of your job to learn, practice, and implement trading strategies. Gradually, you may earn enough money from trading to eventually quit your job and become a full-time trader.
However, the combination of the two must be approached with caution. Trading can be time-consuming, and you do not want to sacrifice the quality of your work at your job. It is also essential to practice risk management and not invest money that you cannot afford to lose.
⚖️In conclusion, both a job and trading have their advantages and disadvantages. Combining the two is an excellent way to increase your income, diversify your portfolio, and potentially become a full-time trader. But proceeding with caution, discipline, and good money management is key to success. Remember, the goal is to build a better future for yourself, and with the right balance between a job and trading, you can achieve it.
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♦️BAD MINDSET IS YOUR ENEMY♦️
♦️Forex trading is one of the most exciting and lucrative ventures that anyone can undertake. With the right mindset and tools, one can make a lot of money by trading currencies. However, the opposite is also true. A bad mindset can lead to disastrous consequences in forex trading. It is, therefore, important for traders to understand the effects of a bad mindset and avoid them at all costs.
♦️One of the most common effects of a bad mindset in forex trading is overthinking. When traders overthink, they become too analytical and too cautious. This can lead to missed opportunities and bad trading decisions. Overthinking can also lead to indecision and second-guessing, which can be harmful in a fast-paced and dynamic market like forex.
♦️Another effect of a bad mindset is emotional trading. Emotions like fear, greed, and impatience can lead to irrational trading decisions. For example, a trader may hold onto a losing position for too long in the hope that it will eventually turn profitable. This can lead to bigger losses and a further deterioration of the trader’s mindset. Similarly, greed can lead to taking on too much risk, which can also lead to disastrous consequences.
♦️A bad mindset can also cause traders to be too dependent on their trading strategies. While having a good trading strategy is important, it is equally important to be flexible and open-minded. A trader who is too reliant on their strategy may miss out on profitable opportunities that do not fit their style. This can lead to missed profits and frustration.
♦️Lastly, a bad mindset can lead to overconfidence. Traders who are overconfident may take on too much risk or ignore important market signals. This can lead to catastrophic losses and a severe blow to the trader’s ego. Overconfidence can also lead to ignoring basic risk management principles, which is a recipe for disaster.
♦️In conclusion, a bad mindset can have a significant impact on forex trading success. Traders who are too analytical, too emotional, too dependent, or too overconfident may make bad trading decisions that can result in losses. It is, therefore, important for traders to stay calm, flexible, and open-minded in their approach to forex trading. A winning mindset can help traders achieve success and make profitable trades in the dynamic and exciting forex market.
Thanks for reading bro, you are the best☺️
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✅TOP 5 BASIC RULES FOR FOREX MARKET BEGINNERS✅
⚜️Forex trading can be an intimidating venture for beginners, but don't let that scare you off! With the right mindset and a few basic rules, you can start trading confidently and profitably in no time. In this article, we'll go over five essential rules for forex market beginners that will help you navigate the trading world with ease.
⚜️Rule 1: Understand the Market
The first step to becoming a successful forex trader is to understand the market and how it works. Forex trading involves buying and selling currencies in the hopes of making a profit from the changes in their values. To get started, you'll want to learn about the different currencies, their values, and the factors that influence their prices. Some traders specialize in only a few currencies, while others prefer to take a broader approach.
⚜️Rule 2: Practice, Practice, Practice
Nobody becomes a great forex trader overnight, so it's important to practice your skills as much as possible. Some brokers offer demo accounts that allow you to trade with virtual currency in a simulated market. This is a great way to practice without risking real money. Use this time to develop your trading strategy, try out different indicators and techniques, and get comfortable with the platform you're using.
⚜️Rule 3: Manage Your Risk
When trading forex, it's important to manage your risk to avoid losing more money than you can afford. This includes setting stop-loss orders to limit your losses, trading with a smaller portion of your available capital, and avoiding risky trades that could lead to significant losses.
⚜️Rule 4: Keep Up with the News
Economic and political events can significantly impact currency values. For example, an increase in interest rates by a central bank can lead to an increase in the value of that country's currency. It's important to stay up-to-date with news and events that could influence the market. This will help you make well-informed trades and react quickly to changes in the market.
⚜️Rule 5: Be Patient
It's easy to get caught up in the excitement of forex trading, but remember that patience is key. Don't rush into trades without doing your research first, and don't let the fear of missing out (FOMO) push you to take unnecessary risks. Be patient and trust your strategy, and you'll see better results in the long run.
⚜️In conclusion, following these five basic rules can help any beginner forex trader get started on the right foot. Remember to take your time, practice often, and manage your risk to avoid significant losses. And most importantly, enjoy the thrill of trading, and have fun with it!
I Hope you guys learned something new today✅
Wish you all Best Of Luck👍
😇And may the odds be always in your favor😇
Do you like this post? Do you want more articles like that
❗️CONFIRMATION BIAS IS YOUR ENEMY❗️
🏛As traders, we are constantly bombarded with information on the global economic landscape, market trends, and potential investments. With so much information at our fingertips, it is easy to fall victim to a cognitive bias known as confirmation bias.
🏛Confirmation bias, also known as selective perception, is the tendency for individuals to seek out and interpret information in a way that confirms their existing beliefs or hypotheses. In the world of trading, confirmation bias can be particularly dangerous, as it can lead traders to make decisions based on incomplete or biased information.
🏛For example, imagine you hold a strong belief that apple stocks are going to rise in the coming months. You begin to search for information to support this belief - perhaps you read articles, listen to news broadcasts, and consult financial websites that all confirm your hypothesis. Meanwhile, you are dismissing any information that contradicts your belief, such as negative earnings reports, changes in the market, or negative press.
🏛The problem with this type of thinking is that it can lead traders to ignore crucial signs that could indicate a shift in the market. Confirmation bias can cloud our judgment and hinder our ability to make objective, data-driven decisions.
🏛To avoid confirmation bias, traders need to actively seek out and consider evidence that contradicts their established beliefs. By doing so, traders can obtain a more comprehensive view of the market and make informed decisions based on all available information.
🏛Furthermore, it is essential to rely on multiple sources of information, including information from trusted analysts, financial experts, and data-driven research. Traders must be able to evaluate information objectively and dispose of preconceived notions that may color their decision-making process.
🏛In conclusion, confirmation bias is a cognitive bias that can significantly impair traders' abilities to make sound decisions in the market. Traders must be cognizant of this bias and actively work to identify and address it by seeking out multiple sources of information, analyzing data objectively, and challenging their preconceived beliefs. Only by doing so can traders ensure that their decisions are based on informed and rational conclusions, rather than biased opinions or incomplete information.
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Understanding Anchoring Bias in Trading
Anchoring is a heuristic in behavioral finance that describes the subconscious use of irrelevant information, such as the purchase price of a security, as a fixed reference point (or anchor) for making subsequent decisions about that security. Thus, people are more likely to estimate the value of the same item higher if the suggested sticker price is $100 than if it is $50.
Anchoring is a cognitive bias in which the use of an arbitrary benchmark such as a purchase price or sticker price carries a disproportionately high weight in one's decision-making process. The concept is part of the field of behavioral finance, which studies how emotions and other extraneous factors influence economic choices.
An anchoring bias can cause a financial market participant, such as a financial analyst or investor, to make an incorrect financial decision, such as buying an overvalued investment or selling an undervalued investment. Anchoring bias can be present anywhere in the financial decision-making process, from key forecast inputs, such as sales volumes and commodity prices, to final output like cash flow and security prices.
Historical values, such as acquisition prices or high-water marks, are common anchors. This holds for values necessary to accomplish a certain objective, such as achieving a target return or generating a particular amount of net proceeds. These values are unrelated to market pricing and cause market participants to reject rational decisions.
Beware of your mental fallacies. They are your main enemy in trading.
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😎MYTHS ABOUT TRADING BUSTED😎
⚛️The world of trading is full of myths and misconceptions. We often hear stories of overnight successes and devastating losses. It can be difficult to separate truth from fiction when it comes to trading. In this article, we will debunk some of the most common trading myths and provide the facts to help you make better investment decisions.
❌Myth: Trading is Gambling
✅Fact: Trading involves analyzing market trends, researching companies and industries, and making informed decisions based on data. Successful traders do not simply rely on luck; they systematically evaluate risk and reward before making trades.
❌Myth: You Need to be a Financial Expert to Trade
✅Fact: While a basic understanding of the market is important, you do not need a degree in finance to be a successful trader. There are numerous resources available to help beginners learn the basics of trading, including online courses, tutorials, and mentorship programs.
❌Myth: Day Trading is the Best Way to Make Money Quickly
✅Fact: Day trading involves buying and selling assets within a single trading day in order to profit on short-term price movements. While it can be lucrative, it is also risky and requires significant time and effort. Many successful traders prefer to take a long-term approach, focusing on investments that will appreciate over time.
❌Myth: You Need a Lot of Money to Start Trading
✅Fact: While having a larger investment portfolio can certainly provide more opportunities for profit, you do not need a huge amount of money to start trading. Many online brokers offer low minimum account balances, making it easier for beginners to start investing.
❌Myth: Trading is Only for the Wealthy
✅Fact: Trading is accessible to anyone with an internet connection and a willingness to learn. While high net worth individuals may have more resources to invest, anyone can start trading with a little bit of research and a willingness to take calculated risks.
❌Myth: Technical Analysis is the Only Way to Predict Market Trends
✅Fact: Technical analysis involves analyzing charts and data to predict future market trends. While it can be a valuable tool, it is not the only way to make informed trading decisions. Fundamental analysis, which involves evaluating a company's financial health and growth potential, is equally important.
❌Myth: Trading is a Solo Endeavor
✅Fact: Trading can be a solitary activity, but it is important to take advantage of opportunities to learn from and collaborate with other traders. Online forums like Tradingview, mentorship programs, and networking events can all provide valuable insights and support.
✳️In conclusion, there are many myths surrounding trading that can prevent individuals from taking advantage of its potential benefits. By separating fact from fiction, traders can make informed decisions and increase their chances of success. Whether you are a seasoned investor or a beginner, knowledge and education are essential to achieving your financial goals.
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NASDAQ Update, Todays levels and a encouraging messagenext level 13270
Well its official the market is bullish, isnt it funny how that works? I dont really care to say "I told you so" because thats not really my style. I prefer to be quiet and move on with my life, However I am trying to build my community haha so I have to say things.
Anyways, I said many times that when everyone freaks out over the banks and its the end etc.... a.k.a every youtuber.... you know its time to buy.
Check out my latest bitcoin post where i poured my heart out about trading and some history of what got me into it
Nasdaq is doing great, I released the new levels on the psychosis indicator that plot more of the whale trades. you can see on the chart the purple horizontal line, If you are a trader and know anything about trading you would see that these lines are killer! Imagine if you had in front of you every location the market will probably turn around at? would you feel more confident in trading?
This strategy is what landed me what I have. Its what built my real accounts. I make videos almost everyday on youtube and yet people scroll by not paying attention to watch the next kardashian short, Most people cry about wanting to make it in life and yet never do anything about it but they know the name and score of every football or basketball team ever existing. I dont even know how to watch sports. I dont care... My sport is building my life. Get with it. if you want it so bad, get with it!
look at the latest trade, which i showed on my latest youtube short video.
This trade had a psychosis whale line along with the 100 sma. what a beautiful trade? we entered at the psychosis line when the 21 sma moved above it! I just released yesterday the sma indicator for free. open source its not much but it helps and it works.
if you really wanted you could see where i plotted the psychosis lines and plot them on your chart. there are things you can do to make it. it just takes effort. stop watching sports. stop caring about the news. just focus on you. GYM and STOCKS cycle it. learn something. convince people you can trade and they throw hundreds of thousands at you just to try it.
gbpusd h4 weekly forecast are you ready for next level trading -The ability to trade with confidence, knowing that you have a professional forex trader looking out for your best interests.
-Access to a private community of other like-minded traders, where you can share ideas and learn from each other.
-The peace of mind that comes with knowing that you're getting expert advice, and that your trades are backed by a professional forex trader.
Multiple Time Frames Can Multiply Returns
In order to consistently make money in the markets, traders need to learn how to identify an underlying trend and trade around it accordingly.
Multiple time frame analysis follows a top-down approach when trading and allows traders to gauge the longer-term trend while spotting ideal entries on a smaller time frame chart. After deciding on the appropriate time frames to analyze, traders can then conduct technical analysis using multiple time frames to confirm or reject their trading bias.
Multiple time frame analysis, or multi-time frame analysis, is the process of viewing the same currency pair under different time frames. Usually the larger time frame is used to establish a longer-term trend, while a shorter time frame is used to spot ideal entries into the market.
HOW TO IDENTIFY THE BEST FOREX TIME FRAME?
Many traders, new and experienced, want to know how to identify the best time frame to trade forex. In general, traders should select a time frame in accordance with:
the amount of time available to trade per day
the most commonly used time frame utilized to identify trade set ups.
For example, day traders typically have the whole day to monitor charts and therefore, can trade with really small time frames. These range anywhere from a one-minute, to the 15-minute, to the one-hour time frame. Day traders that identify their trade set ups on the one-hour time frame can then zoom into the 15-minute time frame to spot ideal market entries.
Multiple time frame analysis usually produces high win rate, guaranteeing very limited risk.
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Quick Heads-Up Hello traders, I have just placed a trade this morning on the GU, but I'm stopped out, my stop was hit. Maybe you copy the trade, and you have been stopped out too,. Don't worry, you will make your money back soon. This is inevitable in the forex business. Not only in the forex but also in any business. There will be a time for loss, and there will be a time for gain.
Stay Tuned For The Next Signal. Happy Trading
From Newbie to Experienced Trader | Full Path Explained
📖I was reflecting on how I became a trader, and suddenly I was reminded of a great book called «A hero with a thousand faces» which then led to the analogy between the journey of a trader and the hero's journey. And while just as any analogy this one is somwhat superficial, I really feel like there is a lot of truth to it. Just think of how many of us have trading histories that look something like this?
♣️A grand call to adventure. Who would not want to make a pile of money working from the comfort of your own computer screen?
♠️Finding a mentor. Good mentors matter! Few of us who have succeeded would have done so without some help.
♣️Crossing over into an “unreal” world. Markets are crazy. When we look deeply into markets, maybe we become a little crazy ourselves, and we certainly become disconnected from ordinary reality.
♠️Facing dire challenges. The emotional highs and lows of trading can be extreme. Is there a trader alive who hasn’t been awake at 4am wondering if they can ever do this, why they ever tried in the first place, how they could be so stupid to make the same mistakes over and over, and what they were going to do tomorrow? (This is probably not the time to mention that we only write stories about the heroes that complete the journey! A lot of dragons feasted very well, for a very long time.)
♣️Failure somehow, perhaps almost miraculously, is transformed to success.
♠️We figure out how to incorporate our trading activities into the everyday world, and discover that things probably weren’t quite as exotic or difficult as we had thought.
📌My point is that trading is not really about learning patterns. It is not about learning some math. It is not about skill development, and it is not even about risk management. All of these things are important, but the real work of trading is work on ourselves.
✅Remember: Before facing the dragon in a cave, one needs to awaken the dragon within.
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Trading Basics | Learn What is a PIP
👉What is a Pip?
The unit of measurement to express the change in value between two currencies is called a “pip.”
If EUR/USD moves from 1.1050 to 1.1051, that .0001 USD rise in value is ONE PIP.
A pip is usually the last decimal place of a price quote.
Most pairs go out to 4 decimal places, but there are some exceptions like Japanese yen pairs (they go out to two decimal places).
For example, for EUR/USD, it is 0.0001, and for USD/JPY, it is 0.01.
👉What is a Pipette?
There are forex brokers that quote currency pairs beyond the standard “4 and 2” decimal places to “5 and 3” decimal places.
They are quoting FRACTIONAL PIPS, also called “points” or “pipettes” which equal a 10th of a pip.
👉How to Calculate Pip Value:
👉The value of pip depends on the following three factors:
✔️The quoted currency
✔️The volume of the trade
✔️And the exchange rate
Based on these factors the fluctuation of even a single pip can have a significant impact on the value of the open position.
The value of 1 pip is calculated by the following formula:
The value of 1 pip = (Pip in decimal places * Trade Volume)
👉Example:
1 pip volume in EUR/USD is equal to 0.0001
Then 1 PIP VALUE equals:
100,000 EUR—> 100,000*0.0001= 10 USD
10,000 EUR—> 10,000*0.0001= 1 USD
1,000 EUR—> 1,000*0.0001= 0.1 USD
100 EUR—> 100*0.0001= 0.01 USD
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Learn Engulfing Candlestick Pattern
☑️WHAT IS A BULLISH ENGULFING CANDLE?
The bullish engulfing candle appears at the bottom of a downtrend and indicates a surge in buying pressure. The bullish engulfing pattern often triggers a reversal in trend as more buyers enter the market to drive prices up further. The pattern involves two candles with the second candle completely engulfing the body of the previous red candle.
☑️HOW TO SPOT A BULLISH ENGULFING PATTERN AND WHAT DOES IT MEAN?
▪️Characteristics of a bullish engulfing pattern:
• Strong green candle that ‘engulfs’ the prior red candle body (disregard the wicks)
• Occurs at the bottom of a downward trend
• Stronger signals are provided when the red candle is a doji, or when subsequent candles close above the high of the bullish candle.
▪️What does it tell traders?
• Trend reversal to the upside (bullish reversal)
• Selling pressure losing momentum at this key level.
▪️Advantages of trading with the bullish engulfing candle:
• Easy to identify
• Attractive entry levels can be obtained after receiving confirmation of the bullish reversal.
☑️KNOW THE DIFFERENCE BETWEEN A BULLISH AND A BEARISH ENGULFING PATTERN
Engulfing patterns can be bullish and bearish. The bearish engulfing pattern is essentially the opposite of the bullish engulfing pattern discussed above. Instead of appearing in a downtrend, it appears at the top of an uptrend and presents traders with a signal to go short. It is characterized by a green candle being engulfed by a larger red candle.
☑️CONCLUSION
A Bullish Engulfing Candle becomes an excellent tool for the trader, once he masters how to use it properly!
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ORDER TYPES IN TRADING | LIMIT VS STOP
✴️Types of orders in trading
There are two main types of order: entry orders and closing orders. An entry order is an instruction to open a trade when the underlying market hits a specific level, while a closing order is an instruction to close a trade when the market hits a specific level.
✴️Stops vs limits
A stop order is an instruction to trade when the price of a market hits a specific level that is less favourable than the current price.
On the other hand, a limit order is an instruction to trade if the market price reaches a specified level more favourable than the current price.
✴️Stop orders explained
You can use stop orders to close positions and to open them, by using either a stop-loss order or a stop-entry order.
✴️Stop-loss orders
A stop-loss order is the common term for a stop closing order – an instruction to close your position when the market value becomes less favourable than the current price.
✴️Stop-entry orders
A stop-entry order enables you to open a position when the market reaches a value that is less favourable than the current price.
If you were opening a long position, you’d place your stop-entry order above the current market price. And if you were opening a short position, you’d place your stop-entry order below the current price.
Although it may seem strange to open a trade at a worse price, stop-entry orders can enable you to enter a trade once a trend has been confirmed. This helps you take advantage of market momentum.
✴️Limit orders explained
Like stop orders, limit orders can be used to open and close trades.
✴️Limit-entry orders
A limit-entry order enables you to enter a trade when the market hits a more favourable price than the current price. For long positions, this would be below the current price level and for short positions this would be above.
✴️Limit-close orders
A limit-close order enables you to close a trade at a more favourable price – which would be at a higher level for a long position and a lower level for a short position.
The major drawback of a limit order is that there is the possibility it will not be filled if the market never reaches your order level – in this case the order would expire. If you had placed a limit-entry order, it is possible that your trade would never be executed. And if you had placed a limit-close order, your trade would not be closed automatically.
😊Thank you for reading, guys😊
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Best advice for achieving success in trading!✅Here's the deal, guys. If you want to make this year a successful year in trading, you got to have an edge. It doesn't have to be rocket science, just a solid strategy. There are plenty of resources out there, so don't be shy to do your research. Once you got a strategy, test it out with a small account or paper money before committing fully.
And when you commit, commit fully. Don't be that person that changes their mind after one loss. Ignore the noise on social media and focus on your own system and 'PnL. It's none of your concern how other people are trading.
Don't buy the hype. You're not going to turn chump change into a fortune overnight. Trading has its ups and downs. So, don't be caught off guard and expect the unexpected. And always be ready for the ride.
And here's the truth, not every trade will be a winner. But there will be a select few that'll make up for the majority of your 'PnL increase. Just make sure you have enough capital to cover 'bills, taxes, and other boring stuff.
And don't be dumb and emotional. Risk management and trading psychology are crucial. If you're having panic attacks before executing a trade, it's a sign you're either not suitable for trading or you're taking excessive risks. Take a step back and assess your current financial situation and the amount of money you're putting in.
Embrace failure as fuel. It's not a setback, but a lesson in disguise. Realize that success is not a straight path, but a journey full of ups and downs.
And lastly, come prepared. Write down a plan for each day, whether it's a simple excel sheet or a written plan. It'll help you stay focused and aware of what's happening in the markets. And remember, trading is hard. Don't fall for the social media hype that makes it seem easy.
Happy trading!