AMP Futures - Lock chart position when switching intervals.In this idea, we will demonstrate how to lock your chart position when viewing history anytime you switch from one-time interval to another.
Beyond Technical Analysis
Disengage from the herd, Markets are not Rational places!“The prevailing wisdom is that markets are always right. I take the opposition position. I assume that markets are always wrong. Even if my assumption is occasionally wrong, I use it as a working hypothesis. It does not follow that one should always go against the prevailing trend. On the contrary, most of the time the trend prevails; only occasionally are the errors corrected. It is only on those occasions that one should go against the trend. This line of reasoning leads me to look for the flaw in every investment thesis. ... I am ahead of the curve. I watch out for telltale signs that a trend may be exhausted. Then I disengage from the herd and look for a different investment thesis. Or, if I think the trend has been carried to excess, I may probe going against it. Most of the time we are punished if we go against the trend. Only at an inflection point are we rewarded.”
― George Soros, Soros on Soros: Staying Ahead of the Curve
Most people ask themselves why NVDA should lose 15% of its market cap on the news about a Chinese company that claims to have outperformed ChatGPT by spending 5.5 million USD on training their models.
I do not care about if the claim is true or not, because I am confident ChatGPT was very hyped, and today the bubble burst.
No matter how much everyone in the AI industry and GPU makers trying we will not gain back the trust of people who see their capital melting in front of their eyes!
How to Prepare Your Mind for Managing Trades Effectively?Have you ever made a decision mid-trade that wasn’t part of your strategy, only to regret it later? Many traders find themselves acting impulsively, closing positions too early or holding on too long, and then wondering where they went wrong.
This common behavior often stems from a lack of psychological readiness and planning. When you step outside your written trading plan, you’re letting cognitive biases and emotions take control. I’m Skeptic , and I’ll explore how to prepare your mind for better trade management and avoid the psychological traps that derail so many traders.
🔍A. The Two Scenarios After Entering a Trade
Once you’ve opened a position, one of two things will happen:
The price moves against you.
The price moves in your favor.
Let’s break these down and discuss how to manage each scenario:
📉Scenario 1: The Price Moves Against You
If you’ve applied proper risk management and set a stop-loss before entering the trade, this scenario shouldn’t bother you at all.
Key Mindset Tip:
Treat the risk as if it’s already a loss the moment you open the trade. For example, if you’ve risked 1% of your account, mentally prepare yourself for that 1% loss in advance. This reduces emotional stress and allows you to focus on the bigger picture.
Let’s say your trade hits the stop-loss. Instead of reacting emotionally, remind yourself that you followed your plan, and the loss is just part of the process.
📈Scenario 2: The Price Moves in Your Favor
Here’s where things get tricky. Without a clear plan for taking profits, you might:
Close the trade too early with a low risk-to-reward (R/R) ratio.
Hold onto the position too long, only to watch it reverse and hit your stop-loss.
Why Having a Take-Profit Plan is Key:
Planning your profit-taking strategy in advance is just as important as setting a stop-loss. If you fail to do so, emotions like greed or fear can lead to poor decisions.
B. Psychological Tools for Better Trade Management 🧠
To execute your plan effectively, you need to address the psychological challenges that arise during trades. Here are some tips:
1. Accepting Losses as Part of the Game
What to Do:
Before entering a trade, ask yourself: “Am I okay with losing this amount?” If the answer is yes, proceed with the trade. If not, reduce your position size.
Why It Helps:
This mindset shifts your focus from fearing losses to executing your strategy.
2. Planning Profit-Taking in Advance
What to Do:
Decide on your take-profit levels before opening a position. For example, if your R/R is 1:2, set your profit target at 2R.
Why It Helps:
This eliminates emotional decision-making and ensures that you’re not tempted to exit too early or hold on too long.
3. Journaling Trades to Improve Performance
What to Do:
Use an Excel sheet or trading journal to track every position. Note the following:
Entry and exit points.
R/R and Win Rate.
Psychological observations (e.g., emotions during the trade).
Why It Helps:
Reviewing your trades helps identify patterns. For instance, you may discover that exiting at R/R 2 consistently yields better results than holding for R/R 3.
C. Personalizing Your Rules
Every trader is different, so it’s essential to customize your trading plan based on your personality and market experience.
Your rules should work for you, not against you.🎯
D. Understanding Cognitive Biases
Psychological errors often sneak into trading decisions. Here are a few to watch for:
1.Confirmation Bias:
Only seeking information that supports your trade idea, while ignoring contradictory signals.
Solution: Stay objective and review all the data, not just what aligns with your view.
2.Loss Aversion:
Closing winning trades too early because you’re afraid of losing profits.
Solution: Stick to your planned take-profit levels.
3.❌FOMO (Fear of Missing Out):
Jumping into trades impulsively or ignoring your plan because you’re afraid of missing a move.
Solution: Always wait for your setup and trust your process.
Managing a trade effectively requires a combination of strong planning and psychological readiness:
Set Your Stop-Loss and Take-Profit Levels: Before opening a position, plan for both loss and profit scenarios.
Prepare Your Mind for Losses: Accept the risk before entering the trade.
Journaling is Key: Track and review your trades to find patterns and improve over time.
Personalize Your Rules: Your trading style should match your personality and risk tolerance.
💬 What’s your approach to managing trades? Do you track your results in a journal? Share your thoughts in the comments below!
I’m Skeptic , here to simplify trading and help you achieve mastery step by step. Let’s keep growing together!🤍
Earnings Season Playbook: What Traders Should Know to Stay Ahead🏈 It’s Earnings Season — Game On
Earnings season is the market’s quarterly equivalent of the Super Bowl (with just as much action) or the Oscars (minus the red carpet but with just as much drama). Every three months or so (every quarter), companies parade their financial performances, guiding traders and investors through a rollercoaster of beats, misses, and that classic "in line with expectations" snooze-fest.
It’s exciting, nerve-wracking, and, if played right, potentially profitable. So, how do you navigate this high-stakes quarterly event? With a solid playbook and a lot less stress than you might think.
🌀 Know When Things Kick Off
Timing is everything. Earnings reports trickle in on a quarterly basis and are usually released after the regular trading session (for the most part) or before the opening bell (for the banks, mostly).
Having a scheduled earnings calendar means that traders have enough time to digest the numbers — or panic — before the next batch of updates. So make sure you keep an eye on the earnings calendar — you don’t want to be caught holding ill-fated shares if Tesla TSLA announces its profit margins have shrunk because of that quirky Cybertruck, right? Preparation here means knowing who’s reporting, when, and what the expectations are.
📝 Read Between the (Income Statement) Lines
Earnings reports are more than just numbers. Of course, revenue and EPS (earnings per share) are the headliners, but the juicy details often lurk in the fine print. Look out for annualized revenue growth (or shrinkage), profit margins, and forward-looking guidance.
If a company beats earnings but lowers its full-year forecast, it’s like winning the lottery but learning half your prize is in Monopoly money. Market-fluent traders dig deep and connect the dots rather than reacting to headlines.
💡 Forward-Looking Projections: The Market’s Guiding Light
Forward projections or guidance is among the most powerful tools companies use to set the tone. A quarterly performance is old news by the time it’s reported; traders want to know what’s next.
Positive guidance can send stocks soaring, while cautious language can sink even the strongest performers. For example, if a tech company beats earnings but announces reduced hiring or slower revenue growth projections, brace for turbulence. Think of guidance as the “what’s next” teaser for a Netflix NFLX series you can’t stop binging.
Btw, Netflix really outworked everyone in the last quarter.
☎️ Earnings Calls: Raw Market Reactions
Earnings calls are where the magic — or chaos — happens. CEOs and CFOs are tasked with selling their story to analysts and investors, balancing optimism with realism. Listeners keep an ear out for key phrases like … you know it … “AI,” “generative AI” and “AI data centers”.
It’s also where you’ll catch nuggets about new projects, market conditions, and management’s confidence—or lack thereof. Pro tip: Look for a transcript if the financial jargon on live calls makes you feel like you need subtitles.
🎡 The Volatility Playground: Trading Earnings Gaps
Earnings season is a volatility wonderland. Stocks can gap up or down significantly in reaction to results, creating opportunities for savvy traders. Trading these gaps requires a blend of technical analysis and fast decision-making.
Did the stock gap down despite a solid earnings beat? That might be a buy-the-dip moment. Conversely, a massive gap up can shout overbought. The trick is understanding the context of the move — is it justified, or is it speculative?
🐏 Avoid the Herd Mentality (or at Least Try to)
Earnings season brings out the FOMO. Traders see a stock soaring post-earnings and rush in, only to get burned when the euphoria fizzles. It’s tempting to follow the herd, but disciplined traders stay cautious.
Always ask: is this stock moving on fundamentals, or is it riding a hype wave? If it’s the latter, step back and let the dust settle — the market loves to overcorrect.
🖼️ Sector Trends: The Bigger Picture Matters
Earnings season isn’t just about individual stocks; it’s a pulse check on entire sectors. If a major bank reports a sharp jump in profits, it’s a bullish sign for the financial sector (yes, we’re talking about JPMorgan’s JPM latest quarterly update ).
Similarly, a blockbuster quarter from a tech titan might lift the entire tech space. By keeping an eye on sector trends, traders can spot opportunities and avoid pitfalls. Think of it as reading the room before making your move.
🎮 Play the Long Game
Earnings season isn’t just for day traders. Long-term investors can use it to reassess their positions and look for entry points. If a company misses earnings due to short-term challenges but maintains strong fundamentals, it might be a buying opportunity.
On the flip side, a stock riding high on hype but lacking substance could be a signal to exit. Patience pays off, especially when everyone else is chasing the next shiny object.
✍️ Wrapping It Up: Stay Sharp, Stay Informed
Earnings season is as unpredictable as the plot twists in Succession. But with the right preparation and mindset, it’s also a goldmine of opportunities. Do your homework, keep your emotions in check, and don’t be afraid to sit out if the setup doesn’t feel right.
So grab your coffee (or tea, no judgment), fire up your TradingView account, and get ready for the financial fireworks.
Behind the Curtain: Economic Forces Fueling Crude Oil Futures1. Introduction
Crude Oil Futures (CL), traded on the CME, are a cornerstone of global energy markets. Representing a vital benchmark for the energy sector, these futures reflect shifts in supply, demand, and macroeconomic sentiment. As both a speculative and hedging instrument, CL Futures are closely tied to economic forces shaping the global economy.
In this article, we leverage machine learning insights from a Random Forest Regressor to uncover the top economic indicators influencing Crude Oil Futures across daily, weekly, and monthly timeframes. By identifying these drivers, traders can gain a data-driven perspective to navigate the dynamic crude oil market effectively.
2. Understanding Crude Oil Futures
o Contract Specifications:
Standard Contract: Represents 1,000 barrels of crude oil.
Tick Size: Each tick is 0.01 per barrel, equating to $10 per tick per contract.
Trading Hours: Nearly 24 hours, ensuring global access and liquidity.
o Micro Crude Oil Contracts (MCL):
Contract Size: Represents 100 barrels of crude oil, 1/10th the size of the standard CL contract.
Tick Size: Each tick is 0.01 per barrel, equating to $1 per tick per contract.
Purpose: Offers smaller-scale traders’ access to the crude oil market with lower capital requirements, making it ideal for those looking to hedge or test strategies.
o Margins:
Standard CL Contract Margin: Approximately $6,000 per contract (subject to market volatility).
Micro MCL Contract Margin: Approximately $600 per contract.
The combination of high liquidity, leverage, and the flexibility offered by Micro Crude Oil contracts makes CL Futures a versatile choice for a broad range of participants, from institutional investors to retail traders exploring smaller-scale strategies.
3. Daily Timeframe: Key Economic Indicators
Machine learning insights reveal that the following daily indicators play a crucial role in shaping Crude Oil Futures' movements:
U.S. Trade Balance: Measures the difference between exports and imports. A narrowing trade deficit signals improved economic health and potential upward pressure on oil demand, while a widening deficit may indicate weakened economic sentiment, weighing on crude prices.
Unemployment Rate: Reflects labor market conditions and overall economic health. A declining unemployment rate often correlates with increased energy consumption due to stronger economic activity, boosting crude oil prices.
Building Permits: Tracks new residential construction permits issued. Rising permits reflect economic confidence and can signal increased energy demand for construction activity, providing upward momentum for crude prices.
4. Weekly Timeframe: Key Economic Indicators
Weekly indicators provide medium-term insights into crude oil market dynamics. The top drivers include:
Corporate Bond Spread (BAA - 10Y): Reflects the difference between corporate bond yields and Treasury yields. Widening spreads signal economic uncertainty, potentially reducing crude oil demand. Narrowing spreads suggest stability, supporting higher crude prices.
U.S. Trade Balance (again): At the weekly level, trade balance trends highlight the interplay between global trade and crude oil demand, influencing market sentiment over several days.
Housing Price Index: Indicates trends in real estate values, reflecting consumer confidence and economic stability. Rising housing prices often signal strong economic conditions, indirectly bolstering crude oil demand.
5. Monthly Timeframe: Key Economic Indicators
Monthly indicators provide a long-term perspective on Crude Oil Futures trends, highlighting macroeconomic forces at play. The top monthly drivers are:
Natural Gas Prices: As a competing energy source, fluctuations in natural gas prices can impact crude oil demand. Rising natural gas prices often lead to increased crude consumption, while declining prices may pressure oil demand downward.
U.S. Trade Balance (again): Over a monthly timeframe, the trade balance reflects sustained shifts in international trade dynamics. Persistent trade deficits may signal weaker global economic activity, affecting crude oil prices negatively, whereas trade surpluses may support demand.
Net Exports: A critical measure of a country’s export-import balance, net exports reveal global demand for domestic products, including crude oil. Surpluses suggest robust international demand, often leading to upward pressure on oil prices, while deficits indicate weaker sentiment.
6. Applications for Different Trading Styles
Economic indicators provide actionable insights tailored to specific trading styles:
Day Traders: Focus on daily indicators such as U.S. Trade Balance, Unemployment Rate, and Building Permits to anticipate intraday volatility. For example, an unexpected improvement in building permits might signal stronger economic activity, potentially boosting crude oil prices intraday.
Swing Traders: Weekly indicators like Corporate Bond Spread (BAA - 10Y) and Housing Price Index offer insights into intermediate trends. For instance, narrowing bond spreads often reflect economic stability, aligning with medium-term bullish positions in Crude Oil Futures.
Position Traders: Monthly indicators such as Natural Gas Prices and Net Exports are essential for capturing long-term macroeconomic shifts. Sustained increases in natural gas prices, for example, might support prolonged bullish sentiment in crude oil markets.
7. Risk Management Strategies
Risk management is crucial when trading Crude Oil Futures due to the inherent volatility of energy markets. Key strategies include:
Hedging Volatility: Utilize correlated assets, such as natural gas or refined product futures, to hedge against price swings.
Monitoring Leverage: Adjust position sizes based on volatility and margin requirements to minimize risk exposure during periods of heightened uncertainty.
Timeframe Diversification: Incorporate insights from daily, weekly, and monthly indicators to create a balanced trading approach. For example, while daily indicators may signal short-term volatility, monthly metrics provide stability for longer-term trades.
8. Conclusion
Crude Oil Futures are deeply influenced by economic indicators across varying timeframes. From the U.S. Trade Balance and Building Permits driving daily fluctuations to Natural Gas Prices and Net Exports shaping long-term trends, understanding these relationships is critical for navigating the energy market.
By leveraging data-driven insights from machine learning models, traders can align their strategies with market dynamics and improve decision-making. Whether you're a day trader, swing trader, or position trader, these economic forces offer a framework for more informed and strategic trading.
Stay tuned for the next installment in the "Behind the Curtain" series, where we unveil the economic forces shaping another critical futures market.
When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com - This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies.
General Disclaimer:
The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
Episode 28 <<Bubble Economy>>"3-Minute Mini Class"
Sharing basic financial knowledge every day, guiding you from beginner to expert.
Follow me and improve a little bit every day!
Financial freedom is getting closer to you!
what is Volume?Volume Indicators are technical analysis tools that evaluate the strength of a trend or price movement based on trading volume, which represents the number of shares, contracts, or units of an asset traded over a given period. Volume indicators provide insights into the participation and conviction behind price moves, helping traders confirm trends, spot potential reversals, or detect breakouts.
Why Volume Matters
Volume reflects market activity and interest:
High Volume: Suggests strong participation, confirming the validity of price movements. - Low Volume: Indicates weak interest, often leading to uncertainty about the sustainability of price moves.
For example:
In an uptrend, rising prices with increasing volume confirm the bullish trend. - Conversely, falling prices with increasing volume confirm a bearish trend.
Popular Volume Indicators
On-Balance Volume (OBV):
OBV measures cumulative buying and selling pressure by adding volume on up days and subtracting it on down days.
Signal: If OBV rises while the price is flat, it indicates hidden buying pressure, suggesting a potential price breakout.
Volume Weighted Average Price (VWAP):
VWAP calculates the average price of an asset weighted by volume, providing a benchmark for institutional traders.
Signal: If the price is above VWAP, it\u2019s considered bullish; below VWAP is bearish.
Volume Oscillator:
The Volume Oscillator compares short-term and long-term moving averages of volume.
Signal: Positive readings indicate increasing volume momentum, while negative readings suggest declining momentum.
Chaikin Money Flow (CMF):
CMF measures buying and selling pressure by analyzing volume and price movement.
Signal: A positive CMF indicates accumulation (buying), while a negative CMF indicates distribution (selling).
Accumulation/Distribution Line (A/D):
Tracks the flow of money into or out of an asset by analyzing volume and price close relative to its range.
Signal: Rising A/D suggests accumulation (buying), while falling A/D suggests distribution (selling).
How to Use Volume Indicators
Confirm Trends: - Use volume to validate price movements. For example, a breakout above resistance is more reliable with strong volume. 2. Spot Divergences: - If price moves up while volume decreases, it could indicate a weakening trend and a potential reversal. 3. Detect Breakouts: - Sudden spikes in volume often accompany significant price breakouts from consolidation patterns. 4. Evaluate Trend Strength: - Increasing volume during a trend suggests strength, while declining volume signals weakness.
Limitations of Volume Indicators
False Signals: High volume alone doesn\u2019t guarantee a sustainable price move. - Market Context Needed: Volume behavior differs across asset classes (e.g., stocks vs. cryptocurrencies). - Timeframe Sensitivity: Volume signals can vary based on the chosen timeframe.
By understanding and using volume indicators effectively, traders can gain a deeper perspective on market dynamics and improve decision-making.
Mastering the Art of Trading: A Guide to SuccessTrading isn’t just about buying and selling—it’s about mastering yourself, your strategy, and the markets. Here’s how to elevate your trading game:
🔍 Plan, Then Execute
Great traders don’t rely on luck. Prepare thoroughly, know your edge, and only enter the market when the odds are in your favor.
💡 Risk First, Profits Later
Protect your capital like it’s your most valuable asset—because it is. Limit your risk to 1-2% per trade and always use a stop-loss. Safety first, profits later.
⏳ Patience Pays
You don’t have to trade every day. The best trades are worth waiting for. Remember, sometimes doing nothing is the smartest move.
✨ Keep It Clean and Simple
Overcomplication is the enemy of clarity. A simple, consistent system will outperform fancy, overly complex strategies every time.
🎲 Play the Probability Game
Trading is about probabilities, not certainties. Stick to setups with a statistical edge, and let the odds work for you.
📉 Less Is More
Focus on a few markets and master them. Chasing every opportunity leads to chaos—specialization leads to consistency.
🧠 Master Your Mind
Discipline is the secret weapon of great traders. Stick to your plan, don’t let emotions take over, and never let losses lead to revenge trading. Stay calm, stay focused, and stay in control.
Successful trading starts and ends with you. Stay disciplined, stay prepared, and let your edge shine! 🌟
Episode 27 <<IFO Business Climate Index>>"3-Minute Mini Class"
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If Trump Coins Don’t Teach You About FOMO, Nothing WillThe fear of missing out, or FOMO, is a powerful emotion that can wreak havoc on your trading journey.
Whether you’re a seasoned trader or just starting out, the urge to jump into a trade because everyone else is doing it—or because you feel like you’re missing out on a golden opportunity—can lead to costly mistakes.
Take, for example, the recent frenzy around Trump Coins ( BINANCE:TRUMPUSDT and BINANCE:MELANIAUSDT.P ).
Many traders rushed in, driven by FOMO, only to watch the value plummet just hours after launch.
This is a stark reminder of how dangerous FOMO can be.
In this post, we’ll explore why FOMO is so dangerous, the hidden risks it poses, and how you can sidestep these pitfalls to become a more disciplined and successful trader. Let’s dive in and learn how to avoid becoming the next victim of impulsive, emotion-driven decisions.
The Dangers of FOMO in Trading
FOMO is more than just a fleeting feeling—it’s a mindset that can derail your trading strategy and lead to impulsive decisions. Here are the key dangers of trading with FOMO:
1. Impulsive Decisions: The Enemy of Rational Trading
Ever made a trade just because it “felt right”?
FOMO often pushes traders to act on impulse, much like grabbing a chocolate bar at the checkout—it’s tempting but not always wise. Impulsive trading can lead to poor decisions that don’t align with your trading plan. Instead of chasing trades, stick to your strategy and wait for high-probability opportunities.
2. The Emotional Rollercoaster: Stress & Anxiety
Missing a trade can trigger stress and anxiety, making you feel like you’ve missed the opportunity of a lifetime. But here’s the truth: trading success is built on thousands of trades, not just one. Keep your emotions in check and remind yourself that there will always be another opportunity.
3. Chasing the Market: A Fool’s Errand
Seeing a stock or cryptocurrency skyrocket can make you feel like you’re missing out on a party. But chasing the market is a dangerous game. Markets move in cycles, and patience is your greatest ally. Instead of trying to catch a rising star, focus on precision analysis and wait for the next high-probability trade.
4. Short-Term Focus: Losing Sight of Long-Term Goals
FOMO often pushes traders to focus on short-term gains, distracting them from their long-term goals. While it’s important to spot high-probability trades, missing one doesn’t mean the end of the world. Keep your eyes on the bigger picture and trust that more opportunities will come your way.
5. Following the Herd: The Danger of Sheep Behavior
Just because everyone else is jumping into a trade doesn’t mean you should too. Your job as a trader is to follow your own trading plan and strategy, not to mimic others. Trust your research, instincts, and analysis—don’t let the crowd dictate your decisions.
How to Overcome FOMO and Trade Like a Pro
Now that we’ve identified the dangers of FOMO, let’s talk about how you can overcome it and become a more disciplined trader:
1. Stick to Your Trading Plan
Your trading plan is your roadmap to success. It’s there to guide you, not to be ignored. Whether you’re feeling the pressure to act or tempted by a “hot tip,” always refer back to your plan. Discipline is key to avoiding impulsive decisions.
2. Research is Your Secret Weapon
Trading without research is like driving with your eyes closed—it’s a risky gamble. Take the time to analyze the markets, understand the “why” behind your trades, and make informed decisions. Research is your crystal ball in the trading world.
3. Protect Your Capital
Risk and money management are crucial to long-term success. Remember, your trading capital is your lifeline —don’t risk it all on a single trade.
4. Develop a Calm and Collected Mindset
Trading is as much a mental game as it is a financial one. High emotions can lead to rash decisions and costly mistakes. Practice staying calm and collected, even when the market feels chaotic. The market doesn’t care about your feelings, so don’t let them dictate your actions.
5. Break the Cycle of Bad Habits
Every time you give in to FOMO, you’re not just making a bad trade—you’re cultivating a bad habit. Break the cycle by maintaining a disciplined trading routine. Stick to your strategy, trust your analysis, and avoid taking trades just for the sake of it.
Final Words: There’s Always Another Trade
Trading with FOMO is like sailing in stormy seas—it’s risky, stressful, and often leads to nowhere good. But by understanding the dangers and implementing the strategies outlined above, you can navigate the markets with confidence and discipline.
Remember this mantra: There is always another and better trade on the way, and I don’t have to catch every single trade that presents itself.
Let’s recap the key takeaways:
Impulsive Decisions: Stick to your trading plan and avoid acting on impulse.
Research: Arm yourself with knowledge and make informed decisions.
Chasing the Market: Be patient and wait for high-probability opportunities.
Risk Management: Protect your capital and balance optimism with realism.
Emotional Control: Stay calm, collected, and focused on your long-term goals.
By overcoming FOMO, you’ll not only become a better trader but also enjoy a more stress-free and rewarding trading experience. So the next time you feel the fear of missing out, take a deep breath, trust your strategy, and remember—there’s always another trade.
Happy trading! 🚀📈
Mihai Iacob
Bitcoin correction inevitableTime to Chart the King!
If you've checked my recent ideas, you'll find onefrom 11 December 2022 titled "Run it Back Turbo." Check it out!
Press the play button to see how I've pinpointed the perfect bottom!
Now, let's dive into why I've decided to close my trade:
Wave Count: I've marked the 5 waves we've seen so far.
Wave Comparison: Using the Date & Price Range tool, I've compared the size of wave 3 to wave 5. Wave 5 typically matches or exceeds wave 3, and you can see the King has done just that. How much more do you need to satisfy your greed?
ABC Correction: We're expecting an ABC correction where:
A Wave: Should hit the 0.382 Fibonacci level drawn from the bottom of the count to the current wave 5 peak.
B Wave: Logically, this would reach the 0.236 Fibonacci level.
C Wave: Expected to extend to the 0.618 Fibonacci level.
Fibonacci Retracement for Wave 5: If you draw a Fibonacci retracement just for the 5th wave, you'll see:
The A wave should touch the 0.618 level of this measurement.
The B wave goes to the 0.382
The C wave, as usual, should retrace fully to the 1.000 Fib level, where it began.
CME Gap: Check out the 1-day chart below to see there's still a CME gap to fill on the way down.
Monthly Close: We're nearing the first monthly close of Q1. Take a look at the RSI; there's a clear bearish divergence forming.
Liquidity Clusters: The liquidity clusters below look enticing and are prime for grabs, essential for further upward movements. Remember, this market thrives on the ping-pong effect with short stop hunts and liquidation hunts, followed by the same to the longs, rinse and repeat.
Here you see a freshly pulled LiqMap from The Kingfisher platform currently the only one I know of which can show you these clusters. As you can see we have a ton of liquidity to tap into before we can resume this bullrun!
Conclusion:
The King Needs to Reset!
No reason to be upset. Everyone needs a rest after such a run. We will resume our journey soon enough, reaching those higher targets sooner or later. See the bright side: we can sell now, load up at cheaper prices, and potentially make even bigger profits.
Follow me for updates to this idea and follow me on X for even more insights!
The Psychology Of Markets: A Deep Dive Into Sentiment IndicatorsMarket dynamics are mainly driven by the interaction between available assets and market demand. These forces are shaped by both retail participants and professional market makers. Public sentiment reacts strongly to media coverage and market news. When negative speculation (FUD) spreads, it tends to cause selling pressure, while positive news stimulates buying activity. This can be seen now for example in the world of crypto markets when prices react sharply to world events. And while mathematical indicators track price patterns, there are specific metrics that measure collective market psychology. Let's take a look at the key indicators that measure crowd behavior.
📍 Key Market Psychology Metrics
1. Volatility Assessment (VIX)
The Volatility Index, commonly referred to as TVC:VIX or the market's "pulse of fear," quantifies market turbulence expectations. Developed at CBOE, this tool projects anticipated market fluctuations for a 30-day window by analyzing S&P 500 options data.
📍 VIX Calculation Method:
◾️ Evaluates SP:SPX derivative contracts expiring within 30 days
◾️ Implements sophisticated mathematical modeling, including weighted calculations and interpolative methods
◾️ Synthesizes individual volatility projections into a comprehensive market volatility forecast
📍 Practical Applications
VIX serves as a psychological barometer where:
Readings below 15 indicate market stability
15-25 suggests mild uncertainty
25-30 reflects growing market anxiety
Readings above 30 signal significant turbulence potential
The index also functions as a risk management instrument, enabling portfolio protection strategies through VIX-based derivatives.
2. Market Sentiment Gauge
CNN's proprietary sentiment measurement combines seven distinct market variables to assess whether fear or optimism dominates trading activity. This metric operates on the principle that extreme fear can trigger unnecessary sell-offs, while excessive optimism might inflate valuations unsustainably.
📍 Core Components:
◾️ Price Momentum . Compares current market prices to recent average prices. Helps understand if stocks are trending up or down
◾️ New High/Low Stock Ratios. Measures how many stocks are hitting their highest/lowest points. Indicates overall market health and investor confidence
◾️ Market-Wide Directional Trends. Tracks which stocks are rising or falling. Shows general market movement and investor sentiment
◾️ Options Trading Patterns. Analyzes buying and selling of market protection options. Reveals how investors are preparing for potential market changes
◾️ Market Volatility Metrics. Measures market price fluctuations. Higher volatility suggests more investor uncertainty
◾️ High-Yield Bond Spread Analysis . Compares returns on risky versus safe bonds. Indicates investors' willingness to take financial risks
◾️ Comparative Yield Assessment . Compares returns from stocks versus government bonds. Helps understand where investors prefer to put their money
The measurement spans 0-100:
0-24: Pervasive fear
25-49: Cautious sentiment
50-74: Optimistic outlook
75-100: Excessive optimism
3. Individual Investor Sentiment Analysis (AAII Survey)
The American Association of Individual Investors conducts systematic polling to capture retail market participants' outlook. This weekly assessment provides insights into non-institutional investors' expectations for market direction over a six-month horizon. The methodology offers valuable perspective on collective retail sentiment trends.
Survey Structure : Participants respond to a focused query about market trajectory, selecting from three possible scenarios:
Optimistic outlook (Bullish) - anticipating market appreciation
Pessimistic view (Bearish) - expecting market decline
Neutral stance - projecting sideways movement
📍 Practical Applications
◾️ Contrarian Signal. Extreme readings often suggest potential market reversals. For instance, widespread pessimism might indicate oversold conditions, while excessive optimism could signal overbought markets.
◾️ Sentiment Tracking. The data helps contextualize retail investor psychology within current market conditions.
◾️ Historical Pattern Analysis. Current sentiment readings gain additional meaning when compared against historical trends.
Note: While informative, this metric specifically reflects retail sentiment and should be considered alongside institutional positioning and broader market indicators.
4. Market Participation Breadth
Market breadth analysis examines the distribution of price movements across securities to evaluate market health beyond headline index levels. This methodology assesses whether market moves reflect broad participation or concentrated activity in specific securities.
📍 Key Breadth Metrics
◾️ Advancing vs. Declining Issues . Tracks the numerical comparison between appreciating and depreciating securities
◾️ Net Advance-Decline . Calculates the cumulative difference between rising and falling stocks to identify underlying momentum
◾️ Participation Ratio . Establishes the proportion of advancing to declining securities
◾️ Moving Average Analysis . Monitors the percentage of stocks trading above key technical levels (20-day, 50-day, and 200-day moving averages)
📍 Practical Applications
◾️ Trend Validation. Strong market breadth confirms price trends, while deteriorating breadth may signal potential reversals
◾️ Early Warning System . Divergences between price action and breadth often precede significant market shifts
◾️ Trend Strength Assessment. Broad participation in market moves typically indicates more sustainable trends
This analytical framework provides deeper insight into market dynamics beyond surface-level price movements, helping investors and traders better understand the underlying strength or weakness of current market conditions.
Traders, If you liked this educational post🎓, give it a boost 🚀 and drop a comment 📣
Traders MindsetLet’s talk about mindset! You hear everyone saying; mindset is the most important in trading. But what is having “the right mindset” ?
Now here is a little secret. Mindset is not just being focused on the money. “I must be profitable”. No. Having the right mindset is having a set of attitudes. Quite literally the definition..
Mindset /ˈmʌɪn(d)sɛt/
noun (usually in singular) the established set of attitudes held by someone.
How you approach the market is very important.
Have a set of rules for yourself.
- Do I have a trading plan? Having a trading plan is important. It helps you follow something day in and day out.
- Do I have good market conditions? Having good market conditions is important as it helps you make more clear decisions. Trading in sideways markets usually ends badly. It forces the trader to become impatient and entering too soon, expecting a breakout to either side usually leads to loses.
- Do I know the risk? Understanding the risk before you enter the trade is important. Majority of traders over-leverage, meaning they use high leverage thus being able to open higher lot size positions. That usually leads to blown accounts. Knowing what you are risking, eliminates a lot of the emotions.
- Do I have any confirmations? Whether that’s a break, a pullback, fundamentals supporting your view that’s great! Having confirmations on your analysis or trade is important.
- Is this trade forced? Am I being nervous before entering? Am I not sure? Am I gambling on this trade? Understanding your emotions is important. Ever felt like this when you opened a trade, knowing you shouldn’t and it instantly went against you? Avoid these trades.
One more thing I would like to add. Ever been stuck to your screen 24/7? Lost sleep over a trade. Here is a fact. You watching the chart, won’t change its path. Sad truth. There is nothing wrong with following your trade, but if you are watching your losing trade, then I already know where it leads. You do too. Avoid this. Going back to the #1 rule. Know your risk before entering. Eliminate emotions.
Having the right mindset is following your own rules and having a set of habits. Habits that help you to grow as a trader. Eliminate bad habits. Review your past trades. You all know why you lost a trade. But will you look for an excuse? “Ah the market did a liquidity sweep” or “market is manipulated”. The market is never wrong. You as a trader are.
Don’t celebrate wins or mourn loses on your account. Treat it as your full time job. You have some good days, you have some bad days. You win, you move on. You lose, you move on. As long as you are following the trading plan, you will succeed.
Understanding this, combined with experience will grow you as a trader. And guess what the by product of this is? Money.
So don’t focus on money. Focus on self-growth, mindset, experience and upgrading your skillset of trading. Money will be the byproduct of your journey.
Create your mindset plan. A set of rules for yourself. Try doing it for 30 days. Come back to this post and tell us if you have improved.
Nothing or no one is stopping you from being a successful trader but yourself. It’s not the market and no it’s not the broker.
Majority of traders quit after blowing a few accounts. The rest stick around for years but make no progress. Only a few % of them actually find the meaning behind it and succeed.
What’s the secret? Signals? Prop Firms? Account managers? EA’s? No. Sure all these things can benefit you slightly. But what truly is the secret to being successful in trading?
You! You are the secret. Understanding yourself, your emotions, your reactions to certain events. Trading is a mirror of you. An amplified picture of you. Are you impatient? Scared? Nervous? Greedy? Forex will amplify those emotions.
The biggest battle you have to win is the battle with yourself. Not the market.
Trading is easy, you have a trading plan, you stick to it. Sometimes you may have a loosing week, happens right? But as long as you are sticking to your strategy, understanding the market, using a positive R:R and understanding the importance of consistency you should be fine. But here is the hard part. Your reactions. Your emotions.
Let’s take for example NFP Data release. Weeks or even months of progress can be wiped out due to irrational decisions during news. Don’t be that trader. Suppress your emotions, don’t get greedy. Take a jab at the market, but only after the data is out.
Remember, no one is stopping you from being a successful trader, but yourself.
A key element added to a traders mindset is PATIENCE .
patience /ˈpeɪʃns/
(noun) - the capacity to accept or tolerate delay, problems, or suffering without becoming annoyed or anxious.
That’s the definition of patience. Trading is a stressful field. Not only does your analysis have to be on point, you have to be focused, have a trading plan, use proper risk to reward ratio… so many factors and then comes the patience. We already know that the market always provides unexpected problems. It plays with our emotions, ranges, does not move, goes against us etc.
How many times have you entered in a position and the price started to range, while you float in loss? You start doubting, you get scared and you close the position. Or even worse, you get stopped out. Later in the day you check the chart and you see your Take Profit (TP) would have been hit, but only if you were more patient?
Or how many times have you had an A+ setup, everything was going to plan but you closed it early because you wanted to secure the profit?
Being a good trader is hard, but it’s not impossible. Discipline is everything as well as patience. Without patience you are bound to lose.
From talking to many people, you would be surprised at how many of them want to “flip” their account. “Do you think I can make 2000$ this week” with 1000$ in their account.
We will always advocate for patience. Playing the long game. Consistency + patience will get you far.
Check some of the last trades you did. Were you patient? Ask yourself. Majority can find themselves in these stories.
Work on your patience, and you will get far.
For example, check out this long-term analysis on XAUUSD (Gold) posted on January 9th. Now we did close it earlier, but we still managed to secure +500 pips (50$ price action) in 3 days of holding. Patience.
This post was made due to a high request of people liking our minds, so it has all been posted in a single educational post.
FxPocket
Stockholm Syndrome in Crypto Trading: Why We Stay LoyalLet’s be honest: altcoins haven’t been performing as well as many would like.
As I’ve started pointing this out through posts and videos, I’ve received a fair share of criticism. Whenever I mention the possibility of a market decline, I’m met with hate, while others who claim the market is heading to the moon are celebrated.
What’s baffling is that no one seems to ask, “Hey, you’ve been saying ‘altcoin season’ is coming for a year, yet we’re still stuck around the same prices. What’s going on?”
This got me thinking: Could this be a form of Stockholm Syndrome in trading?
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What is Stockholm Syndrome in Trading?
Stockholm Syndrome is a psychological phenomenon where hostages develop positive feelings towards their captors. In trading, it’s a bit like this: traders grow emotionally attached to a losing market, even when all signs point to the fact that things aren’t going well.
Instead of cutting losses and accepting reality, they keep holding on, hoping things will change – just like a hostage hoping for their captor's kindness.
In trading, this manifests as traders continuing to support a market (like coins or certain stocks) that isn’t performing, even when the evidence suggests it’s time to move on.
They become attached to the idea that a specific asset will turn around and deliver massive profits – even when the price action doesn’t back that up.
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The Comfort of Familiarity
Many traders are caught in the cycle of constant hope and “what ifs.” It’s much easier to stay attached to the narrative that specific coins will eventually “take off” than to admit that their portfolios might be stuck sideways or even bear market.
It's also easy to get drawn into the excitement of “moonshots” and grand promises of big returns. The altcoin season, the bull run, the new innovations – these ideas are comforting, even when the market isn’t cooperating.
But here’s the catch: sticking with a market that’s not performing well out of loyalty is dangerous. It stops you from adapting, from making the necessary moves to protect your capital, and from taking advantage of more promising opportunities elsewhere.
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The Reality of the Market
Altcoins have been on a rollercoaster. The hope for altcoin season has been building up for over a year now, yet many traders are still facing stagnant or even declining prices. When faced with this reality, we often see two types of responses:
1. The Blind Optimist:
Some traders will continue to hold and buy into altcoins, even when it’s clear the market isn’t moving in their favor. They believe that the next big move is just around the corner, and they refuse to let go of the dream.
2. The Critic:
Others, like me, will point out the slow or negative price action, urging caution and suggesting that a pullback or continued consolidation is more likely. But when we do, we’re met with anger, disbelief, or even accusations of “fear-mongering.”
It’s frustrating to see those who remain hopeful get so emotionally attached to a failing asset, while others who try to see things more clearly get met with hostility.
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The Dangers of Stockholm Syndrome in Trading
When traders fall into this “Stockholm Syndrome,” they stop questioning their strategies and beliefs. They become too emotionally involved with a market that isn’t giving them the results they want.
This prevents them from making the tough decisions they need to make to protect their portfolios – whether that’s cutting losses or re-allocating capital to more promising assets.
It’s also a trap that keeps you stuck in an echo chamber of hope and denial, rather than facing the market with logic and clear-headed analysis.
The longer you stay loyal to an asset that’s underperforming, the more you risk watching your portfolio sink further.
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Breaking Free: A Rational Approach to Trading
The key to successful trading is learning to let go of emotional attachment. Don’t hold onto an asset simply because you’ve been told it will perform or because you’ve invested a lot of time and money into it.
Here are a few ways to break free from the Stockholm Syndrome in trading:
1. Focus on the facts:
Look at the actual price action and market conditions, not the narrative you’ve built around it. If the market isn’t moving, don’t force a belief that it will soon.
2. Admit when it’s time to move on:
It’s not about being right or wrong – it’s about protecting your capital. If an asset isn’t performing, consider cutting your losses and finding new opportunities that align with your trading strategy.
3. Stay flexible:
The market is dynamic, and you need to be able to adjust your strategy based on current conditions. Don’t get stuck in a “one-size-fits-all” approach.
4. Let go of the need to be loyal:
Trading isn’t about loyalty; it’s about profits and risk management. Sometimes, moving on is the best decision for your financial health.
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Conclusion
If you’ve been stuck in the cycle of hoping that altcoins will suddenly surge, or waiting for the long-awaited altcoin season, it might be time to reconsider your approach. It’s important to recognize when you’re emotionally attached to a market that isn’t performing, and break free from that attachment.
By focusing on logical analysis, cutting losses when necessary, and staying flexible in your approach, you can avoid the dangers of Stockholm Syndrome in trading and move towards more profitable opportunities.
Remember: Trading isn’t about loyalty to a coin or a narrative – it’s about making smart, objective decisions that will help you grow your capital.
Understanding R/R and Win Rate: The Key to Profitable TradingWhy R/R and Win Rate Matter❓
What’s the one thing that separates consistent traders from those stuck in a cycle of losses? It’s the combination of Risk-to-Reward (R/R) and Win Rate. These two metrics aren’t just numbers—they’re the foundation of every profitable trading strategy.
Today, we’ll break down the facts and numbers behind R/R and Win Rate. You’ll learn how to evaluate whether your strategy is sustainable and why high win rates alone might not be enough. Let’s dive in!
🔍 The Relationship Between R/R and Win Rate
This chart tells the story: your R/R ratio determines the percentage of trades you need to win to break even. But let’s be clear—breaking even isn’t our goal. We aim for profitability, and that’s only possible when your R/R and Win Rate are optimized.
Here are some key examples:
R/R = 5:1 (High Risk, Low Reward):
Out of 100 trades, you need to win 98% just to break even.
One or two losses can wipe out all your profits.
Conclusion: This is unsustainable.
R/R = 1:1 (Balanced):
To break even, you need to win 50% of your trades.
While this ratio is popular, achieving consistent profits requires a Win Rate over 80%, which is challenging.
R/R = 1:2 (Ideal Minimum):
You only need to win 33% of your trades to break even.
With a 50-60% Win Rate, your profits can grow exponentially over time.
Conclusion: This is the most realistic and effective ratio for both beginner and professional traders.
Common Misconceptions About High Win Rates
Many traders mistakenly equate high win rates with profitability. While a Win Rate of 80% might sound impressive, it can still lead to losses if paired with poor R/R.
Example:
Imagine a trader whose win rate is 80%, but their R/R is 5:1. Those 20% losing trades will erase all profits. This is why it’s crucial to analyze both metrics together and not get distracted by flashy results.
The Psychology Behind R/R and Losing Streaks 🧠
Losing streaks are inevitable, even with a solid strategy. What matters is how your R/R and mindset help you navigate them:
The Role of R/R in Losing Streaks:
With an R/R of 1:2, even after a streak of 5 losses, a single win can recover your account.
On the other hand, with an R/R of 5:1, a losing streak can wipe you out entirely.
Mindset Tip:
Don’t fear losses. Instead, focus on executing your strategy consistently. Understand that a few losses won’t hurt your account if your R/R is optimized.
Crafting a Sustainable Strategy 🔧
Here’s how to create a strategy that balances R/R and Win Rate:
Step 1: Define Your R/R
Set a minimum R/R of 1:2 for your trades. This ensures that even with a 40% Win Rate, you remain profitable.
Step 2: Backtest Your Strategy
Test your strategy on historical data to calculate its true Win Rate. Adjust your R/R based on the results.
Step 3: Manage Risk Effectively
Never risk more than 1-2% of your account per trade. This minimizes the impact of losing streaks and allows for long-term growth.
💬 What’s your R/R ratio and how do you manage losing streaks? Share your insights in the comments below!
I’m Skeptic , dedicated to simplifying trading and helping you achieve mastery step by step. Let’s keep growing together! 🤍
Trump Threatens Europe with Tariffs: What About the Markets?
Hi, I’m Andrea Russo, a professional trader, and today I want to discuss this week's hot topic.
Donald Trump has recently revived his old economic slogan, promising heavy tariffs for companies that do not produce within the United States. In a public statement, the former president reiterated that foreign producers would face tariffs if they do not establish manufacturing plants in the USA. A direct attack on the European Union and its Green Deal policies, which he called a "scam". But what impact will this threat have on global markets? In this article, we’ll explore the potential consequences for stock markets, currencies, and vulnerable economic sectors, as well as the ripple effects on global monetary policies.
1. The Context of Trump's Threat
Trump’s threat of imposing significant tariffs on foreign companies is nothing new. During his presidency, he initiated a series of trade wars, particularly against China, threatening tariffs on imported goods to stimulate domestic production and reduce the trade deficit. Now, Trump is reprising this approach, focusing this time on the European Union and targeting environmental policies and the Green Deal, which he has long promoted as a "scam" and harmful to American businesses.
His proposal to cut taxes to 15% for companies investing in the USA, combined with the threat of tariffs on imported goods, could strengthen his electoral base but has the potential to stir tensions between the world’s largest economies.
2. Impact on Financial Markets
Trump's announcement has already triggered reactions in financial markets. While the risk of a global trade war may seem reduced compared to the peaks of 2018-2019, the threat of new tariffs has the potential to create turbulence, especially in sectors that are particularly exposed to changes in tariff policies.
Export and import sectors: Companies heavily reliant on imports/exports may be the most vulnerable to these threats. European and Asian producers exporting to the USA could face reduced profit margins if they are hit with new tariffs.
In particular, the automotive, technology, and electronics sectors could see demand contraction from American consumers who may have to pay higher prices for imported products.
German, Japanese, and Chinese automotive companies could be particularly affected, as they represent a major share of imports into the USA.
Currencies: An immediate reaction to these developments could reflect in the currency markets. The USD could strengthen, as protectionist policies are often seen as an incentive for domestic production, making it more attractive to invest in the United States. However, an escalation in the trade war could lead to higher volatility and weaken sentiment toward emerging market currencies, which are more vulnerable to U.S. protectionist measures.
3. Companies and Sectors Sensitive to Tariff Threats
Technology sector: Tech companies with strong presences in Asia, such as Apple, Samsung, and Huawei, may face pressure on their profit margins if they are subject to tariffs on exports to the USA. Trump’s policies could push companies to reconsider their global supply chains and set up local production in the USA to avoid additional tariffs.
Automotive sector: Another sector highly vulnerable to tariffs is the automotive industry. Foreign automakers may find themselves paying tariffs on imported vehicles, reducing the competitiveness of their products compared to U.S. manufacturers like Ford and General Motors. This scenario could lead investors to reassess their positions on automotive stocks and trade based on expectations of declining demand.
Energy sector & Green Deal: Trump’s strong criticism of the European Green Deal could boost the position of American energy companies, particularly those operating in natural gas and oil. The United States may further loosen environmental regulations to stimulate domestic production, benefiting American energy companies over European ones. However, a tariff threat on imported green technologies could hinder investments in renewable energy innovation.
4. Political and Geopolitical Reactions
A likely response to this tariff threat could be immediate retaliation from the European Union and other nations. Countermeasures could include imposing reciprocal tariffs on U.S. goods, as occurred during Trump’s previous term. The escalation of such measures could trigger a new cycle of protectionism, amplifying global economic uncertainty.
The European Union, in particular, could adopt policies aimed at reducing its dependence on the United States, strengthening trade alliances with Asia and other emerging economies, which could significantly impact international trade and currency valuations.
5. Implications for Investors: Strategies and Risks
With growing uncertainty over global trade policies, investors should closely monitor the evolution of this situation. Some potential strategies include:
Currency hedging: Investors may choose to hedge their positions in currency markets using instruments like forex futures or currency options to mitigate the risk of unexpected dollar fluctuations.
Defensive sectors: Investing in more defensive sectors, such as consumer goods and utilities, which tend to be less sensitive to geopolitical developments, could be a safer strategy in times of uncertainty.
Low correlation stocks: Looking at alternative assets or investing in low-correlation stocks (e.g., small-cap stocks or emerging market stocks) could be an interesting strategy to diversify and reduce risk during periods of volatility.
Conclusion
Trump's threat to impose new tariffs on imported goods signals a return to more protectionist trade policies. While the market’s initial reaction may be volatile, the long-term effect will depend on how the geopolitical situation evolves and the countermeasures taken by U.S. trading partners. Investors should prepare for a new phase of uncertainty, closely monitoring central bank actions, fiscal policies, and corporate strategies to navigate this new economic reality effectively.
Mastering 2025 in Trading: Dive into Psychological PreparationThe year 2025 has well begun, and while many traders may have set goals and plans, the true challenge lies in executing them with consistency and mental clarity.
The markets are already moving, and it’s crucial to recalibrate and solidify your psychological foundation to thrive this year.
Let’s explore seven advanced strategies to mentally prime yourself for trading success, with actionable insights to implement immediately.
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1. Conduct a Comprehensive Annual Review
Although the calendar has turned, reviewing your 2024 performance is still invaluable for shaping your 2025 approach.
• Steps to Take:
o Evaluate Performance: Analyze trades from 2024 to identify patterns, strengths, and areas needing improvement. Reflect on both technical execution and emotional responses.
o Analyze Metrics: Beyond win rates, consider risk-reward ratios, maximum drawdowns, and adherence to your trading plan. Did you manage risk effectively? Were you disciplined in execution?
o Adjust Accordingly: Use these insights to adapt your strategy. For instance, if you performed better in trending markets, focus on those setups this year.
• Advanced Tip: Take note of how you handled different market conditions—such as high volatility versus range-bound markets—and create specific strategies for handling similar scenarios in 2025.
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2. Develop Mental Toughness
The start of a new year often brings heightened emotions—excitement, pressure, or even lingering frustration from the previous year. Mental toughness is essential for maintaining discipline and objectivity.
• Strategies for Resilience:
o Daily Visualization: Spend five minutes each morning visualizing how you’ll respond to various scenarios (e.g., unexpected losses or sudden market spikes).
o Emotion Tracking: Alongside your trading journal, log your emotions before, during, and after trades. This will reveal emotional triggers that may affect decision-making.
• Advanced Tip: Practice reframing setbacks. Instead of viewing a loss as failure, see it as feedback. Develop a personal mantra, such as "Every trade is a lesson," to maintain a growth mindset.
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3. Establish a Pre-Trading Routine
Consistency is key, and a structured pre-trading routine can help you start each session with focus and clarity.
• Key Elements of an Advanced Routine:
o Market Context Review: Assess broader market narratives, such as macroeconomic events, sector performance, or sentiment shifts, to understand the trading landscape.
o Refinement of Strategy: Define specific setups you’re looking for and remind yourself of your risk parameters.
o Mindfulness Practice: Spend five minutes meditating or practicing controlled breathing to center yourself before the trading session.
• Advanced Tip: Include a quick "mental rehearsal" of your trading plan. Imagine executing trades calmly and sticking to your rules, even in volatile conditions.
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4. Set Specific, Measurable Goals
With the year already started, it’s important to focus on actionable goals that emphasize process over outcomes.
• Process-Oriented Goals:
o Instead of vague profit targets (e.g., "earn 20% this year"), focus on measurable habits, such as "review every trade for compliance with my plan."
o Break annual goals into quarterly, monthly, or weekly objectives to maintain momentum.
• Advanced Tip: Use a habit tracker or performance dashboard to monitor your adherence to rules, emotional discipline, and progress toward milestones. Adjust goals based on your evolving performance.
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5. Create a Structured Trading Plan
Your trading plan isn’t static—it should evolve as you gain insights and adapt to market conditions. Starting the year with a clear, structured plan is vital.
• Enhancements for 2025:
o Adapt to Volatility: Assess the first 20 days of trading this year to gauge volatility and adjust your risk parameters if needed.
o Scenario Planning: Incorporate contingency plans for unexpected events, such as black swan market moves.
• Advanced Tip: Review and tweak your trading plan bi-weekly during the first quarter to ensure it aligns with both market realities and your performance.
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6. Balance Information Intake
In today’s information-rich world, traders must strike a balance between staying informed and avoiding information overload.
• Steps to Filter Information:
o Set Boundaries: Allocate specific times to consume news and stick to them. Avoid constant updates, which can lead to emotional decision-making.
o Focus on Sources: Select a handful of reliable news outlets that align with your trading focus, and ignore sensationalist or irrelevant content.
• Advanced Tip: Use AI tools or curated platforms to filter market-relevant data. For example, set alerts for key economic releases instead of scrolling through endless feeds.
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7. Embrace Continuous Learning
The beginning of the year is the perfect time to commit to self-improvement, not just in strategy but also in trading psychology.
• Actionable Learning Framework:
o Daily Microlearning: Dedicate 10–15 minutes daily to reading, watching videos, or studying advanced topics such as behavioral finance or quantitative analysis.
o Weekly Reflection: Use weekends to review your trading journal, analyze mistakes, and refine your approach.
o Community Engagement: Participate in forums, webinars, or mentorship programs for shared insights and accountability.
• Advanced Tip: Focus on specific weaknesses identified in your annual review. For example, if exiting trades too early was an issue in 2024, study advanced exit strategies and backtest them.
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Conclusion
The markets have already started testing traders in 2025, but it’s never too late to fortify your psychological and strategic foundation. By implementing these seven advanced techniques, you can navigate the challenges and seize the opportunities that the year presents.
Remember, trading success is a marathon, not a sprint. Begin the year with a disciplined and resilient approach, and you’ll be well-positioned for sustainable growth. Here’s to a prosperous and fulfilling trading journey in 2025!
Episode 26 <<International Monetary Fund>>"3-Minute Mini Class"
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Mastering the Indecision Candle Strategy: Trade with MomentumHave you ever wondered how to spot high-probability trade setups that align with momentum and can quickly deliver solid risk-to-reward ratios? 📊
Candlesticks are one of the most critical tools for traders, second only to volume. Today, I’m sharing one of my go-to setups— the Indecision Candle Strategy —a momentum-based approach that I personally use in my trades. This strategy is built around recognizing indecision candles formed during the second wave of price movement. Let’s dive into how this strategy works, the rules for executing it, and some real market examples.
🔍 What is the Indecision Candle Setup?
The indecision candle forms during the second wave of a price movement and reflects a tug-of-war between buyers and sellers. Here's how to identify it:
- In an uptrend:
The lower shadow of the candle is ≥ 1.5x the body size, indicating strong buyer presence.
The upper shadow is smaller than the body, showing limited seller pressure.
- In a downtrend:
The upper shadow is ≥ 1.5x the body size, showing strong seller dominance.
The lower shadow is smaller than the body, reflecting weak buyer activity.
This setup gains its edge by combining candlestick analysis with momentum indicators, such as the SMA (7), to confirm the strength of the trend.\
Rules for Trading the Indecision Candle Setup
This strategy is momentum-based and requires discipline to follow these specific rules:
📈 Uptrend Setup
1.Candle Characteristics:
Green candle: Lower shadow is at least 1.5x the body size.
Upper shadow is smaller than the body.
2.Momentum Confirmation:
The SMA (7) is below the candle, sloping upward, and either touching or slightly below the shadow.
3.Entry:
Use a stop-buy order above the upper shadow of the candle.
4.Stop-Loss:
Place your stop-loss below the lower shadow or at the SMA if it's slightly below.
5.Ideal Conditions (Optional):
Low volume or momentum before the setup, but this isn’t mandatory.
📉 Downtrend Setup
1.Candle Characteristics:
Red candle: Upper shadow is at least 1.5x the body size.
Lower shadow is smaller than the body.
2.Momentum Confirmation:
The SMA (7) is above the candle, sloping downward, and either touching or slightly above the shadow.
3.Entry:
Use a stop-sell order below the lower shadow of the candle.
4.Stop-Loss:
Place your stop-loss above the upper shadow or at the SMA if it's slightly above.
5.Ideal Conditions (Optional):
Low volume or momentum before the setup, but this isn’t mandatory.
Optimize Entries:
For both uptrend and downtrend setups, consider using the order book to refine your entry and stop-loss levels. This can improve your precision and reduce risk.
🎯 Real-World Example from the Market
Let’s look at a real example:
1.Scenario: Second wave of a downtrend.
2.Candle Setup:
- Red candle with a large upper shadow (≥ 1.5x body size).
- Strong bearish momentum confirmed by the SMA (7) sloping downward and positioned above the body.
3.Trade Setup:
4.Entry: A stop-sell order placed below the lower shadow.
5.Stop-Loss: Above the upper shadow.
Why it Works:
The bearish momentum combined with the indecision candle's characteristics creates a high-probability setup for continuation in the downtrend.
Key Tips for Success
Backtesting is Essential:
Before applying this strategy in a live account, ensure you backtest it thoroughly across multiple markets and timeframes. This will help you gain confidence and understand its performance in different conditions.
Risk Management:
Stick to your capital management plan. Avoid risking more than 1-2% of your account per trade.
Never chase the market out of FOMO (Fear of Missing Out).
Ignore Noise During News Events:
If the market creates large wicks or volatile candles due to news, focus on candles before and after the event for clarity.
The Indecision Candle Strategy is a powerful tool for capturing momentum-driven moves with high risk-to-reward ratios. However, like any strategy, it requires patience, discipline, and proper backtesting before use.
💬 Have you used similar candlestick strategies in your trading? Share your experiences and let’s discuss in the comments!
I’m Skeptic , here to simplify trading and share actionable strategies to help you grow as a trader. Let’s master the markets together !
Trading EURUSD and NZDUSD | Judas Swing Strategy 17/01/2024Last Friday was an exciting day trading the Judas Swing strategy! We were fortunate to spot two solid opportunities, one on EURUSD and the other on NZDUSD. Both trades presented similar setups, and once they ticked all the boxes on our trading checklist, we didn’t hesitate to execute. In this post, we’ll walk you through the entire process, from setup to outcome and share key insights from these trades.
By 8:25 EST, we were at our trading desk, prepping for the session to kick off at 8:30 EST. During that brief wait, we marked our trading zones and patiently watched for liquidity resting at the highs or lows of the zones to be breached. It didn’t take long, NZDUSD breached its low within 20 minutes, while EURUSD followed suit just 40 minutes into the session. With the liquidity sweep at the lows complete, we quickly shifted our focus to spotting potential buying opportunities for the session ahead.
Even though we had a bullish bias for the session, we never jump into trades blindly. Instead, we wait for confirmation—a break of structure to the upside, accompanied by the formation of a Fair Value Gap (FVG). A retrace into the FVG serves as our signal to enter the trade. On this occasion, both currency pairs we were monitoring met these criteria perfectly. All that remained was for price to retrace into the FVG, setting us up to execute the trade with confidence.
Price retraced into the FVG on both EURUSD and NZDUSD, meeting all our entry requirements. We executed the trades risking 1% on each setup, putting a total of 2% on the line. Our target? A solid 4% return. The setup was clear, the risk was calculated, and we were ready to let the trades play out
After executing the NZDUSD trade, it was pure momentum—zero drawdown as the trade went straight into profit without hesitation. The same was true for EURUSD, which also faced minimal to no drawdown and quickly hit our take-profit target. Both trades wrapped up in just 25 minutes, netting us a solid 4% return. These are the kinds of sniper entries traders dream of!
But let’s be real, trading isn’t always this smooth. There will be times when you face deep drawdowns and even losses. The key is ensuring your strategy wins more often than it loses. And if your losses outweigh your wins, make sure your winners are big enough to cover those losses. Consistency and proper risk management are what keep traders in the game for the long haul
Episode 25 <<Quantitative Easing>>"3-Minute Mini Class"
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An Educational Journey into Technical Analysis with Dogecoin/USDIn this tutorial, we'll dive deep into the art of technical analysis using the Dogecoin USD chart as our canvas. You'll discover how to blend Fibonacci tools, Elliott Wave Theory, and the Wyckoff Method to forecast potential market movements. Whether you're new to trading or looking to refine your analytical skills, this guide will provide you with practical insights into identifying entry and exit points, understanding market phases, and preparing for future trends. Let's embark on this educational journey together to enhance your trading strategy toolkit.
When in doubt, Zoom Out!
Below I was looking at Arguments for a Significant Short Position Before the Continuation of the Bullish Trend and the Pursuit of New All-Time Highs
Elliott Waves: From the bear market bottom at 4.5 cents, we started wave 1 and concluded with wave 5 at the current top. Following five waves, we expect an ABC correction. Waves A and B have been completed, and we are now in wave C.
Fibonacci 1: Trend-Based Fibonacci Extension - From the all-time high (ATH) to the recent bear market bottom, then to the current 48-cent top. The 0.382 Fibonacci level suggests a target of 0.2130 for the upcoming drop, which I believe is necessary for liquidity ahead of the next upward movement.
Fibonacci 2: Regular Fibonacci Retracement - From the bottom of wave 4 to the top of wave 5, the 0.618 level is at 0.235 cents. I've marked a green box between these two targets.
See in the image below how Backtesting this strategy on the two previous cycles shows that before breaking ATHs, Dogecoin always hit this 0.382 Fib level!
I use these 2 Fibonacci targets to place the green box between them and where I expect price to go in the newxt couple of weeks.
Additional Observation: The green line below the 0.618 Fib retracement and above the 0.382 trend-based Fibonacci extension also marks a retest of the wave 3 high at 0.23 cents.
Now that we've examined the macro perspective, let's Zoom In to the current action:
Wyckoff Schematic: Check my previously published idea on Bitcoin, linked here, where Bitcoin is in a Wyckoff Distribution Schematic #1. Dogecoin seems to follow with Wyckoff Distribution Schematic #2. I've added vertical lines for phase separation, a red resistance box, and a green support box.
Link to Richard D. Wyckoff, his Method and Story www.wyckoffanalytics.com .
ABC Pattern: Wave A from top to bottom is exactly 0.222 cents or -45.81%, suggesting wave C should be of similar magnitude. Wave B measures 0.1724 cents and 65.65% to the upside. Using an arrow tool, the 0.222 cent drop points exactly to the 0.382 Fibonacci target from the trend-based extension we did in the macro analysis, now highlighted in yellow. Link to chart.
Zooming in on the 4-hour Chart: I've drawn another Fibonacci retracement just for wave B, colored in turquoise blue. Notably, the 1.272 Fibonacci extension aligns with our macro 0.382 Fibonacci target, now colored yellow for clarity.
Speculations for Future Moves:
Fibonacci Circle and bottom timing prediction: Drawn from A to B, this circle in orange might help us predict when we hit the green box target at the bottom. Considering that the A drop measures exactly 12 days and 4Hours I have added another vertical line now marking a timeframe of 5 days from Thursday 30 January to Monday 3 February 2025 This is speculative but worth watching. It includes also a weekend so a CME gap before weekend plus filling the week after could also be in play.
Wyckoff Phases: According to earlier discussions, we're moving through phases A to E. I've added a vertical line where the Fib circle crosses our 1.272 and 0.382 Fib levels, suggesting we'll enter phase E on January 23, 2025, potentially concluding by February 2, 2025.
Predictive Arrows: Blue arrows indicate possible future price movements based on current patterns.
After hitting our target, I'll analyze again and publish a new idea with plans for breaking the ATH and targets for the anticipated bull market.
Enough for now, as it's getting late. Give me a follow, share if you liked this analysis, and stay tuned for updates.
One set up, less chart time, more RRLet me take you down a rabbit whole and show you a strategy with a high win rate conviction. High risk to reward. Consistency and less chart time.
Pros: high win rate, 2rr plus consistency, less chart time, systematic approach. Less entry's better reward.
Cons: if you use funding accounts & they don't allow weekend, over night, or news trading this is not for you. Trades can be between 2 to 5 days if using higher time frames. Eg daily.
This strategy is based on a set of checks on a check list that needs to be confirmed in order to take entry. Building confluence and a stronger trade set up. If caught on 4 hr or daily it allows a swing trade, with multiple scaling in trades with shorter duration on smaller time frames like 15 min and 1 hr. Let's break down the check list and show some break downs.
The checklist
1. Is the higher time frames moving in the direct of your entry?
First you analyze higher time frames. Determin if over all trend and market structure is bullish or bearish. We will be trading the Continiuation of structure. Eg if bullish we looking for buys.
2. Has there been a break of structure leaving an imbalance?
We want to look for a break of structure to comfirm the bullish or bearish bias, leaving an imbalance (fvg). This gives us a retracement point to retest along with more confluence as the imbalance is likely to be filled.
As part of this strat we will be using fib retracement tool with the settings 0.5 and 0.618 only. This is the golden zone our entry's will be based on the 0.618, or golden zone. Stoploss the base of fib, take profit the high of fib.
Example one: bullish
Weekly time frame showing higher highs and higher lows bullish market structure.
Daily time frame showing a break of structure to the upside. Showing bullish continuation making a new high. Leaving a imbalance to fill. Seeing a retracement we take the low to the high. Giving us our trade set up.
Trade complete minimum draw down, creating a new high. Now with the same bullish bias looking for buys. Let's take a look inside the trade on a smaller time frame and apply the same principles.
1 hr time frame Example
Example 2 5 min time frame
Example 2 bearish
Weekly showing bearish market structure
Daily created a break of structure to the down side, leaing an imbalance.
1 hr time frame Example
1 hr time frame Example 2
Combining multiple confluences like support and resistance levels, order blocks, pivotd and trend lines ect. It can provide a strong trade setup string. Each confluence acts as a confirmation of the others, increasing the likelihood of a successful trade. By stacking these confluences together, traders can build a comprehensive analysis and increase the effectiveness of their trading decisions.
