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How To: Combine Technicals & Fundamentals To Find Great StocksWith the markets taking a bit of a battering, I thought I'd show you some more of TradingViews advanced tools to perhaps help you find better quality stocks that might be more resilient to these corrections by combining both Technical Analysis indicators along with some really easy to understand at a glance Fundamental Analysis metrics. In this video I will cover: 1. How to use the TradingView Screener to find good stocks which didn't pull back much or even went up against the overall market pull back. 2. How to use Moving Averages to find stocks with lower volatility that might be better for buy and hold type investors. 3. How to use the TradingView Income Statement summary tool to quickly identify and help shortlist stocks with better overall fundamentals. 4. How to see using the TradingView Post Market data which stocks are already being bought back into AFTER the market has closed. 5. How to flag the ones you like and then save them into a TradingView Watchlist you can then review later. 6. How to save your TradingView Screener set up, and have any new stocks matching your criteria to be automatically emailed to you.
NYSE:ITEducation
by zAngus
86
The Reasons We Follow An Algorithmic-Systematic Approach To All We have been trading and investing in markets for decades since the early 1980s. Experienced and successful traders and market participants tend to remember their losses and mistakes instead of victories. Profits feed the ego; losses are teachers for those who realize that valuable lessons come from adversity instead of triumph. Everyone has an opinion- The only objective measure is the current price The trend is your only friend- News, experts, and all other information are subjective Trading and investing can be stressful A plan and discipline are the building blocks for success You have to be in to win- Drawdowns are a part of any trading or investing system A batting average of .300 is good enough to get a professional baseball player into the Hall of Fame in Cooperstown, New York. Each time a future hall of Famer steps up to the plate, a success rate of below 30% is good enough for infamy. Trading and investing are similar. No one is correct in their market calls all of the time. When approaching any market, there are always three potential outcomes, a profit, a loss, or a breakeven. The success rate of calling a market correctly takes a back seat to other factors. We have seen market participants who have had the foresight to call the market correctly 75% of the time and still wind up losing money. Conversely, a seasoned trader can be right 20% of the time and still make an overall profit. I usually write about specific markets on Trading View, but it is essential to look at the methodology, mindset, and path to growing capital over time this week. We follow an algorithmic-systematic approach to trading and investing. Our models come from decades of experience and the knowledge gained from mistakes that led to losses. We all have the same goal; to make money and grow our capital. The route to achieving the goal is what separates the winners from the losers. Everyone has an opinion- The only objective measure is the current price I am sure we have all heard an “expert” or pundit tell us that the current price of an asset is wrong. They may provide many compelling and convincing reasons, but they are 100% wrong when challenging a price level. An asset price at any moment in time is always the correct price for one objective reason. It is the level where buyers and sellers meet in a transparent environment, the market. The “experts” and pundits take a subjective leap of faith when using the terms expensive or cheap. Too many variables establish a price. The only accurate measure of value is the current price itself. The trend is your only friend- News, experts, and all other information are subjective Prices are snapshots. Trends are the living and breathing extension of price action. Many market participants become junkies, watching each news event, “expert” forecast, and other exogenous events that could push asset prices higher or lower. They make investment or trading decisions based on what they hear and see. The approach is flawed for three significant reasons: Trading off what one sees and hears is stale before it reaches our ears and eyes. Others have seen the news or forecast before us, and some had seen it before it appeared on a medium for all to see. The translation of an event, forecast, or news item is purely subjective as it assumes, we will make a correct analysis. The expression “buy the rumor and sell the news” or the converse runs counter to even the most complete analytical decision-making approach. Finally, reacting to any stimulus involves a primary human response, emotion. Emotions are a trader or investor’s worst enemy. They trigger responses and decisions based on fear and greed, a deadly duo that increases the chances of mistakes, miscalculations, and irrational behavior. A market’s trend is purely objective as it reflects the path of least resistance of a price based on market consensus and sentiment. Prices tend to move to levels on the upside and downside that can defy logic, run counter to reason and are not rational. Trend following blocks out logic, reason, and rational thought and favors one of the leading theories of physics. Newton’s first law states that a body at rest will remain at rest unless an outside force acts on it, and a body in motion at a constant velocity will remain in motion in a straight line unless acted upon by an external force. Trend following embodies Newton’s first law of physics. Asset prices reflect the market’s sentiment, which is the inertia that drives those prices. If Sir Isaac Newton were a modern-day trader or investor, his mantra would be the trend is your only friend as it is compatible with his first law. The physical sciences are objective. Trading and investing can be stressful We have found that decision-making creates stress. When we buy or sell an asset based on anything but the market’s trend, we make a subjective judgment. The attempt to buy at the bottom or sell at the top is a value judgment that runs counter to logic as it implies the sentiment and current prices are incorrect, a fatal flaw. Sometimes some market participants get lucky, but that only reinforces a strategy that leads to future mistakes. Picking tops or bottoms in a market is a strategy that rewards the ego as it gratifies that one called the market correctly. However, ego and vanity lead us down a dangerous path. In the 1997 film, The Devil’s Advocate, Al Pacino, the actor who played Satan, said, “Vanity-definitely my favorite sin.” Reducing stress comes from following the path of least resistance. We use an algorithmic, systematic approach to trading based on models that remain long during a bullish trend and short during a bearish one. We never miss a significant trend as we are constantly long or short the assets in our portfolio. We do not adjust our risk positions on an intra-day basis. We only reverse risk positions based on closing prices at the end of a session and execute the position at the start of the next session. Our proprietary models come from decades of trading and investing experience in a wide range of markets across all asset classes. We never look to sell tops or buy bottoms. We are long at the top and short at the bottom. However, we tend to capture significant trends, taking the filet mignon out of price trends. We have found that our mechanical approach, with a better than even-money win rate, reduces stress as it takes any decision-making out of the equation. The only job is to follow the rules, always remaining in the markets on the long or short side and reversing positions based on the model’s instructions. A plan and discipline are the building blocks for success Emotions lead to impulsive behavior. Acting on impulse leaves little or no time for planning and throws discipline out of the window. Albert Einstein said that the definition of insanity is doing the same thing repeatedly and expecting a different result. Impulsive decision-making is the root of Einstein’s insanity definition. Any risk position in any market must have a plan, which is simply balancing the financial risk versus the potential reward. Before pressing the buy or sell button, we must establish risk parameters for trades or investments when not following an algorithmic approach. The discipline is following the plan. Many market participants run into problems when a risk position goes against them, and they have no plan for risk and reward, or they modify it to allow them to stick with a wrong decision. Turning a short-term trade into a long-term investment is a common mistake. The mistake comes from a subjective call that the market price is incorrect. A way to prevent this is to remind yourself that the market price is always the correct price. We are often wrong; the market is never wrong. You have to be in to win- Drawdowns are a part of any trading or investing system We are constantly long or short the highly liquid assets in our investment portfolio because we never know when a significant trend will begin. Being in a risk position that follows trends is the only way to catch the bulk of a bullish or bearish trend. Drawdowns or losses are a part of life and any trading or investment approach. A choppy market near the high or low end of a trend will result in short-term losses. However, that is the price for capturing the long-term trend. There is no free lunch in life, and the same goes for trading and investing. The goal is always the same for every market participant, to make money over time and build wealth and our nest eggs. The strategy is what separates winners from losers. We take a long-term systematic approach and do not veer from the path. We know that drawdowns are a part of any investment or trading approach. We are in it to win it on a long-term basis. Join us for the Monday Night Call each week - all you have to do is use the link below. There's also a link to sign up for early access to these articles as well. Trading advice given in this communication, if any, is based on information taken from trades and statistical services and other sources that we believe are reliable. The author does not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects the author’s good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice the author provides will result in profitable trades. There is risk of loss in all futures and options trading. Any investment involves substantial risks, including, but not limited to, pricing volatility, inadequate liquidity, and the potential complete loss of principal. This article does not in any way constitute an offer or solicitation of an offer to buy or sell any investment, security, or commodity discussed herein, or any security in any jurisdiction in which such an offer would be unlawful under the securities laws of such jurisdiction.
CME_MINI:ES1!Education
by Andy_Hecht
47
Comparing a strategy with and without Safety OrdersOne important thing when day trading or scalping is risk management . To find the good balance between risk and reward . So I compared the same strategy with and without Safety Orders. Here's an idea explaining how safety orders work if you didn't know: The strategy used for this example is a daily pivot & consolidation breakout. Before I explain the results, a few definitions: Net profit = Gross Profit - Gross Loss. Basically the total profit earned by winning trades minus the losing trades. Percent Profitable = Percentage of winning trades divided by losing trades. I like to call it the winrate. Profit Factor = Profits divided by Losses. It tells how many times your profit is bigger than your loss. A strategy becomes profitable when the profit factor is greater than 1. Max Drawdown = Maximum consecutive losses. AKA, the biggest lose streak. A good indicator of how risky your strategy can be. A last few details: Both strategies have an intial capital of 10 000 €, 0.1% commission on each trade, and each order is a market one, to make sure everything gets filled. █ STRATEGY 1 - Take Profit & Trailing Stop Loss The strategy has a 7% Take profit and a Trailing Stop Loss that starts at 11%. Each order buys with the total capital without compounding (fixed 10k €) With 52 trades closed, the strategy has a profit % of 147 . It suffered a max % drop of 15.5% . The profit factor is of 2.19 . And finally, the winrate is 76.9% █ STRATEGY 2 - Take Profit & Safety Orders + Stop Loss The strategy has a 7% Take profit, 10 Safety Orders, each spaced by a 1% step, and a stop loss at 11%. Now the base order will only buy 100 €, while each safety order will buy 990 €. This is to ensure that the total capital is used and not more. Also note that the take profit is based on total trading volume. As the safety orders get filled, the target drops a bit lower. With 263 trades closed, which is due to the safety orders (5 per trade in average), the profit % drops to 79 . That is almost half of strategy 1. But, the max % drop is divided by more than 2 : only 6.9% ! The profit factor almost doubled , as it is now at 3.8 . Also, the Percent profitable increased to 83.6% . █ CONCLUSION This comparison is just an example. I did this little process over hundreds of strategies and the outcome is always the same: safety orders reduce the risk, even though they also reduce the net profit a bit, the overall profit factor is increased . So should you use them? It is up to you, but my answer is a big yes . Tips on automation: The simplest way to automate this is to place the safety orders using limit orders when the entry alert is received. Then close all deals upon take profit. If you want to use market orders, you'll have to place each safety order as the price drops through the steps. Indicators used in this example have restricted access. See my profile signature for more info. The backtest results for this pair are shown below.
Education
by cyatophilum
25
YOUR SUCCESS IN TRADING | Expectations VS Reality 💰🤔☠️ Hey traders, Being a full-time trader & running a coaching program for the last three years, I met hundreds of struggling traders from different parts of the globe. Guess why the majority of them could not make it? What was the main reason for their bad luck? It wasn't their trading strategy, nor their technical analysis. The source of their failure was the expectations. Trying different trading strategies, following the signals of different signal providers, these traders expected quick gains and exponential account growth. They were actually in a state of a constant search of a holy grail, of a magic wand that will open Pandora's box to them. Just a single losing trade made them skeptical while the first losing streak made them drop the strategy and return back to the search. They keep spending thousands of dollars on trading strategies promising them close to 100% win rate. There is this common mantra, the stereotype about a pro trader: a guy with 4 screens making a quick buck on each and every market rally, driving Lambo, and living in a mansion. Unfortunately, the reality is different. Ahead you will encounter loneliness, losses, pain, and disapproval. The road to success in this game is long and dangerous. Get ready to see the skepticism in the eyes of your relatives and friends. Many years and tons of money must be spent in order to make it. But even mastering the system, becoming a consistently profitable trader you will not constantly beat the market. Your wins will just slightly outperform your losses giving you the means for living. If you are ready for that if you are courageous enough to start and to proceed no matter what, you are already one step ahead of the majority. Be prepared to work hard and practice much, set a correct goal, and sacrifice your presence for the sake of an independent and prosperous future. Are you ready? ❤️Please, support this post with a like and comment!❤️
Education
by VasilyTrader
145
How To Use Financial Ratios To Make Better DecisionsFinancial Ratios help you evaluate a company. Most financial ratios will show you how much money you're paying for a specific piece of the business. Let us give a few examples: Price-to-Sales Ratio = Market Cap / Sales The Price-To-Sales ratio or PS ratio tells you how expensive a company is relative to its total sales. The formula is calculated in two different ways: divide the company's market capitalization by its revenue or divide the current stock price by revenue-per-share. Because this ratio is being calculated with live price information, you can also watch it in real-time on the chart as we've shown in this example above. If a company has a market cap of $10 billion and revenue of $1 billion, well that, that implies a PS ratio of 10. You're paying $10 for every $1 in sales. You can do ratios like this for all aspects of the company. For example, PE ratio or Price-To-Earnings ratio measures the Market Cap / Earnings. This tells you how much you're paying for every dollar of earnings. Keep in mind that Financial Ratios are not perfect. They are also not a buy or sell recommendation. Instead they are shortcuts, ways to quickly evaluate a company, compare its underlying fundamentals, and study that company relative to other companies. You also must remember that financial metrics can change quickly with a single earnings report. A company's future expectations are also just as important. A company like Apple might have a high PE ratio, but if they're building and growing revenue into the future, their PE ratio could come down over time. Remember, Financial Ratios and Financial metrics in general paint a picture of the underlying business and its earnings potential. Here are some other resources to get you started: 1. Read more about Financials on TradingView in our Help Center. 2. You can also code your own strategy or indicator using this financial information . 3. We've also created a library in our Help Center so you can learn more about every Financial metric. Here are some other financial ratios that you may find interesting and how they're calculated: PE Ratio = Market Cap / Earnings PB Ratio = Market Cap / Book PEG Ratio = PE / Earnings Growth Quick Ratio = (Cash + Cash Equivalents + Current Receivables + Short Term Investments) / Current Liabilities Dividend Yield = Dividends Per Share / Price EV Multiple = Enterprise Value / EBITDA To access all of the Financial Ratios available to you, click the Financials button at the top of your chart. From here, you can select many different Financial metrics and study markets at a deeper level. More importantly, you can combine the study of Technical and Fundamental analysis at the same time. Meaning you can evaluate the fundamental side of the business including its earnings and valuation while ALSO studying price action and planning a trade. Please feel free to share your feedback and comments below! Thank you for reading.
NASDAQ:AAPLEducation
by TradingView
14
How To: Build Your Own Private Signals Service Using TradingViewMany traders - especially beginners - rely on others to tell them what stocks to trade and when to place their entries and their exits. What I want to show you is not so much how to trade or what strategy to use, but once you have found a strategy that YOU like, how to set up this strategy in TradingView and get automated alerts when a stock meets your criteria. This video covers: How to setup your TradingView Chart How to add built-in or custom TradingView Indicators to your chart How to customise those indicators How to find stocks that match your criteria using the TradingView Screener How to save your set up How to set up a TradingView Alert How to get alerts sent to your phone or email or screen How to check TradingView News to see what catalyst might have caused the alert How to use TradingView Text Notes Hope the video was useful.
NASDAQ:OCGNEducation
by zAngus
66
Difference between Centralized and Decentralized crypto-exchangeIf you find the analysis useful, please like and share our ideas with the community. Any feedback and suggestions would help in further improving the analysis! One of the USPs of Blockchain technology is ' Decentralization .' It means that no single entity or organization has the power to influence or control the network. Decentralization is rapidly picking pace, with several apps being built on this exact premise. These decentralized apps or ‘ DApps ’ are being built on existing blockchain networks, such as Ethereum, Solana, Polkadot, and so on. With the exponentially rising demand for cryptocurrencies, it was only a matter of time for the crypto exchanges to come sprawling up. Cryptocurrency exchanges can be broadly classified into centralized and decentralized exchanges. What is a centralized exchange? The way a centralized exchange operates can be considered similar to a bank. Depositing cryptos onto a centralized exchange such as Binance essentially means transferring it to a wallet held by the exchange. When we deposit fiat currency such as the US dollar or any other currency to buy crypto, that crypto is also held in the exchange’s centralized wallet. What is a decentralized exchange? With decentralization picking up, the cryptocurrency exchanges want to get into the decentralization space too. These decentralized exchanges are also known as DEX. Currently, there exist more than 35 DEXs globally. One of the most popular ones is Uniswap, which appears to have recently gotten into trouble with the SEC. Other players include Kyber, Bancor, etc. Traders simply swap tokens with each other, and there’s no middlemen involved here. Key points of contention between centralized and decentralized exchanges: Fees: In the case of centralized exchanges, there is a fixed fee which is usually a percentage of the transaction amount. In decentralized exchanges, it works out to be gas fees, which can sometimes vary. Ownership of your crypto holdings: Crypto wallets have two keys, public and private keys. Public keys are shared with anyone who wants to send you cryptocurrency, while a private key is what you use to access your own wallet. Centralized crypto exchanges don't give their users the private key. It essentially means that the holdings are not actually owned by the users, but by the exchanges. In some decentralized exchanges, the entire process of buying and selling is performed ‘on the chain.’ The holdings are with the user and not held by any central agency. However, keeping the holdings on the exchange can lead to a faster execution since the user does not need to provide access. But this can be the reason for the crypto theft as well! Case in point: In 2018, $713 million was stolen with most of them coming from the Coincheck exchange hack. In a Decentralised Exchange, users are generally free from these risks! Privacy: A decentralized exchange script usually does not have a central authority involved. Therefore, no requirement will be imposed on them. One can sign in and start trading without any identity verification. Additionally, Anonymity allows the user to access the tools which are not available otherwise. Centralized exchanges require the users to perform a KYC to trade cryptos. It is not the case with decentralized exchanges. It means that the user would not need to hand over the documents to any single entity. Liquidity: Barring the large centralized exchanges, several others suffer from a lack of liquidity. It is a major concern that ultimately leads to the downfall of the exchanges. The larger exchanges such as Binance, Coinbase, etc. have high liquidity. Decentralized exchanges usually follow a different method of price discovery and don't suffer from problems of illiquidity. Some decentralized exchanges also have Automated Market Makers (AMM). AMMs look to solve the liquidity problem without depending on large traders using smart contracts — self-executing computer programs that ensure liquidity on the exchange. The AMM algorithms have pre-defined requirements for an entity or individual to become a liquidity provider. Anyone who meets these criteria can become part of the liquidity pool, and hence maintain continuous trading. Do give a follow if you liked the content. Keep supporting:) -Mudrex
COINBASE:BTCUSDEducation
by Mudrex
42
A Comprehensive Guide to the Ichimoku CloudHello traders, in this post, we will be talking about how to trade using the Ichimoku Cloud. This is one of the most common, yet very effective and unique indicators to date and is prized by many traders as it foreshadows possible support and resistance levels. ------ What is the Ichimoku Cloud Indicator? The Ichimoku Cloud indicator is an extremely versatile indicator that can help define possible support and resistance levels. It helps identify not only the support and resistance, but also provides data to help identify the overall direction of price, give a good idea on the momentum of price action, and can be used strictly alone as a trading signal - if used properly. Even though the Ichimoku may seem complicated, it is actually rather a very straightforward indicator. The concepts are easy to understand and the signals are well defined. The Ichimoku indicator takes multiple averages and plots them on the chart that uses the figures to compute a 'cloud' which attempts to forecast where the price may find support or resistance in the FUTURE. The keyword here is future. This is one of the few indicators that can actually give you possible support in the future and present time. The Ichimoku has 5 simple components: 1) Conversion Line 2) Base Line 3) Lagging Span 4) Leading Span A (this is what creates the cloud) 5) Leading Span B (this is what creates the cloud) Conversion Line: - On it's own, the conversion line shows the short-term price momentum - The mid-point price over the last 9 periods (which is also the default value) - An area of minor support or resistance The market price above the conversion line shows the possible short-term upward momentum, allowing the trader to focus on buy signals. If the price is below the conversion line, it would signal short-term downward momentum, and just like when it trades above, you would want to find sell signals when it trades below the conversion line. The conversion line is not typically used on its own, but rather used in conjunction with the other components of the Ichimoku as listed above in the 5 components. Base Line: The Base Line shows the support and resistance levels on the medium timeframe. The midpoint of the high and low price is calculated over the last 26 periods within the chart. Just like the conversion line, on its own, can be used to find price momentum. If the price is above the base line, it means it is trading above the 26 period midpoint, and therefore has an upward bias. Vice versa when price is below the base line. Unless there is a very strong trend, the base line will often not be near the price. When the base line is often near or intersecting (crossing) with the price, it isn't helpful to determine the trend direction. Lagging Span: The Lagging Span is created by plotting closing prices 26 periods behind the latest closing price of an instrument. It is designed to allow traders to VISUALIZE the relationship between the current and prior trend, as well as to spot potential trend reversals. One of the key ways to use the Lagging Span is to view its relationship to the current price. When the price is below the lagging span, this is usually an indication that there is a trend within the price and can indicate that it will move higher. When the price is trading below the lagging span line, this is often an indication that there is WEAKNESS within the price. If the lagging span line is about to cross above the prior price line, this can be a confirmation of a bullish signal. If the lagging span line is crossing below the price, this can indicate the opposite, a bearish signal. Any interaction with the past price line is an indication of a choppy or sideways market and if a lagging is descending quickly into a past price line, it could be a sign of exhaustion for price. Kumo Cloud (or Cloud for short): The Kumo Cloud is formed via two lines, the Leading Span A, and the Leading Span B. The Kumo Cloud gives traders support and resistance levels that can be projected into the FUTURE. Not many indicators can give a price projection based on the future. It is very different from many other indicators because it provides support and resistance levels for the current data and time taken into account. Moving averages, for example, only give the present and past data as possible support and resistance, and doesn't give any indication of possible future support or resistances. The uptrend is indicated via a green cloud as shown in the chart above. The uptrend is strengthened when the leading Span A (green cloud line) is rising and is above the Leading Span B (red cloud line). Conversely, a downtrend is produced when the Leading Span A is BELOW the Leading Span B line - which creates the red cloud. As stated above, the Kumo cloud is shifted forward 26 periods that provides future support and/or resistance. If the cloud is THICK = STRONG Support/Resistance If the cloud is THIN = WEAK Support/Resistance If the price is above the cloud, then there is enough of a trend to be in place that provides buying opportunities. If the price is below the cloud, then it's considered to be under selling pressure that can help provide sell signals. The longer the price action stays above or below the cloud, the stronger the trend and the more support/resistance the cloud offers. The Kumo Cloud is suitable for long term traders as well as for trend/momentum traders. When combined with the MACD, for example, which is another momentum indicator, can provide high probability results. The price relationship to the cloud can be defined as when the father the price action is from it, the stronger the trend and more volatile it can be. You want to avoid trading inside of the Kumo Cloud as it usually means that the market is indecisive. Settings for the Ichimoku: The Ichimoku relies on only three different time periods in the calculation: 9, 26, and 52. The reason is because the Japanese markets used to be open for six days of the week, meaning that the number 9 represented a week and a half of trading. 26 equals the number of trading days in a typical month (30 minus four Sundays), and 52 equals two months of trading days. Japanese markets now only trade 5 periods per week - so some practitioners of the Ichimoku suggest revising the settings to: 7, 22, and 44. In my personal experience, however, the traditional values of 9, 26, and 52, have performed far better. Limitations: The Ichimoku, of course, does have its limitations. The indicator can make the chart look incredibly busy with all of the lines. To help remedy this, depending on your trading needs, certain lines can be removed. It can actually be helpful to remove the lines, and keep only the cloud. In conclusion, just focus on which lines provide the most information for you as a trader, and then consider hiding the rest of the lines as they can be often distracting. The cloud limitations can also become irrelevant for long periods of time, as the price remains way above or below it, At times like these, the conversion line, base line and their crossovers, can then, also, become more of an importance as they generally stick closer to the price. Here is an example of when we remove all of the lines, only keeping the cloud and the leading spans:
BITSTAMP:BTCUSDEducation
by XForceGlobal
171
Education Excerpt: Simple Moving AverageSimple Moving Average The origin of inventing the Simple Moving Average (MA) is not clear. Although, some of the first documented cases of its use date as far back as the early 20th century. Implementation of moving averages in technical analysis is one of the most successful methods of identifying trends. Moving averages are simply constant period averages - usually of prices, that are calculated for each successive period interval. The result of calculation is then plotted on the chart as a smooth line that represents successive average prices. Thus, the calculation of the moving average dampens fluctuations of price of an asset, making it easier to spot an underlying trend. Though use of the moving average goes beyond identifying trends. Support, resistance and price extremes can be anticipated by correct interpretation of the moving average. Crossover Generally, when the moving average with a lower period interval crosses above the moving average with a higher period interval it is considered a bullish signal. On the other hand, when the moving average with a longer period interval crosses above the moving average with a lower period interval it is considered a bearish signal. These crossovers can serve as specific buy and sell signals in markets that are trending. However, moving average crossovers tend to produce many false signals in non-trending markets. Furthermore, these same crossovers can act as support or resistance levels. Illustration 1.01 Picture above depicts daily graph of PepsiCo (Ticker:PEP) with 20-day SMA (blue) and 35-day SMA (red). With implementation of these two moving averages it is easily observable that prevailing trend is bullish. Crossovers between these two simple moving averages reveal where trend began (10th February 2017) and where it ended (7th July 2017). In addition to that analyst can identify price extremes when price deviates too far from its 20-day SMA. Length of the period Different lengths of moving average directly translate to the amount of data used in the calculation. Including more data in the calculation of the moving average makes each data per time interval relatively less important. Therefore, a large change in one particular data would not have as large an impact on the overall result of the calculation in comparison to if the moving average with a shorter period was employed. Hence, the longer moving average produces less false signals at the cost of revealing underlying trend sooner rather than later. Usually, the use of two moving averages with different period intervals is encouraged as opposed to use of a single moving average. This comes from the premise that when two moving averages with different period intervals are plotted on a chart, they tend to show two separate lines converging and diverging. Illustration 1.02 Picture above depicts daily graph of XAUUSD with 3-day SMA (blue) and 6-day SMA (red). Viewer can see that 3-day SMA copies price move more agressively than 6-day SMA. Illustration 1.03 Picture above depicts exactly same graph as is showed in Illustration 1.02. However, length of SMAs differs. Blue line represents 10-day SMA while red line represents 20-day SMA. It is clear that when length of SMAs was extended then SMAs produced less mechanical signals (crossovers) as opposed to SMAs used in Illustration 1.02. Calculation The calculation of the moving average usually involves use of the close price. Normally, 10, 20, 50, 100 or 200 periods are used and the calculation is conducted by creating the arithmetic mean of a dataset. SMA = (A1 + A2 + An) : n A = average in period n n = number of time periods Illustration 1.04 Picture above shows daily graph of Coca Cola (Ticker:KO). In this particular example trend was neutral and it is visible that crossovers between two simple averages produced many false signals. Disclaimer: This content is just excerpt from full paper that will be published later. It serves educational purpose only.
OANDA:XAUUSDEducation
by Tradersweekly
60
DAY TRADING RULES THAT WORKDAY TRADING RULES & TIPS THAT WORK DAY TRADING RULES BEFORE YOU EVEN START 1. DAY TRADING IS NOT A FORM OF INVESTMENT. Day trading is not a form of investment. It is not part of the stock/bond portfolio that you have for retirement. Day trading is a risky business, and you stand to lose everything if you fail. You must accept this fact before you start day trading. 2. DAY TRADING IS NOT GAMBLING. On the other hand, day trading is not a form of gambling. If you are not going to take it seriously and put in hard work, do not even start. The first two rules seek to adjust your attitude towards day trading. Once you start with the right mentality, these “rules” are already with you. 3. HAVE A DAY TRADING PLAN FOR EVERYTHING And I mean everything. Imagine all the contingencies and plan for them. Plan even for what you are leaving unplanned, which means planning when to use your discretion. Some essential aspects include: Where to trade When to trade What instruments to trade What is your trading strategy and how to execute it How much to risk per trade Broker, internet, computer, and what happens when they fail to work The trading plan is a work-in-progress. Keep refining it and add to it. 4. SIT ON YOUR HANDS FOR THE FIRST 15 MINUTES OF THE TRADING SESSION The first 15 minutes are usually very volatile, without much price action available for analysis. So sit on your hands for the first quarter of the hour and observe the market tone. If you want to consider a trade right after the 15 minutes, take a look at the opening range scalp trading strategy. 5. REVIEW YOUR TRADES AFTER EACH SESSION. After each session, there is a learning opportunity. Each trade contributes to a feedback cycle that can improve our trading performance. THE ACTUAL DAY TRADING RULES 6. USE STOP-LOSS ORDERS Every trade must have a stop-loss order. We must always know how much we stand to lose. If you disagree, I want you to reconsider. 7. USE LIMIT ORDERS OR TRAILING STOP LOSS FOR TAKING PROFITS We close our trades before the session ends, so the profit potential is smaller. Hence, we should have our limit orders/ trailing stop losses in place to grab our profits and run. Waiting for the bull run of the century is not for day traders. 8. TAKE ONLY THE BEST TRADES Be very selective about the trades you take. 9. ALWAYS BE IN CONTROL OF YOURSELF. DO NOT CHASE THE MARKET. If the market has taken off without you, do not chase it. The market behaves in ways nobody can control. You cannot control the market. But you can control your response to the market. Always be in the zone. 10. WHEN IN DOUBT, LOWER YOUR TRADE SIZE Lower your trade size when you are in doubt of your trading edge. This tactic is for damage control. Ideally, cut your trade size to nothingness until you figure out your trading edge. 11. ACCEPT LOSING DAYS WHEN DAY TRADING Somehow, day traders expect to end each day with profits. But trading is a game of probabilities, so you’ll have losing days. Accept them and move on. If you refuse to accept losing days, you will do irrational decisions like overtrading and ruin your trading account pretty soon.
BITSTAMP:BTCUSDEducation
by MoonBets
77
Automating strategies keeps me sane 😊Running a strategy with a proven edge has me comfortable mentally on how a trade plays out, Be it a stop out or a take profit target met. Also automating those proven strategies and just letting them be helped with my mental state as a trader. Trade alerted 17:45 this afternoon and has been close once to TP. I didn't know this I was in the garden enjoying the late summer sun that has bestowed the UK this week 🌞 Once upon a time watching the charts would of had me thinking of closing to soon and then filling with regret as the retrace occurs that I didn't close. Only reason to look at chart tonight was a quick mid week review of trades and this trade is one of my open ones. Trade details are shown on the chart. We are working the 15M time frame on this strategy. We're looking for the green line which is take profit target. Little red arrow is entry point and purple line is stop loss. The current open trade still might not hip TP but I'm not allowing emotions to play a part I let the objective based plan play out. Previous trades shown on chart from the last two days. Trade history can be seen at the foot of this trade idea too for full transparency. These are year to date stats. How do you as traders journal your trades I'm intrigued to know? Having back test capability and a trade log which is possible through TradingView pine script saves me hours in manually logging trades as well as manually back testing. Having that level of data allows me to know I'm running a proven strategy and that I have an edge. The next key bit to staying sane/stress free and one of the best pieces of advice I could give as a trader is use technology available to your advantage. Trading shouldn't consume every spare minute. Most of us do this to escape the 9-5 so don't spend hours at charts unnecessarily. Not spending hours at charts is why I haven't shared all these trades on this pair and when this current one alerted. If your reading this tonight let this sink in I've only looked at this chart once this week when I shared my last idea yesterday on the pair in question. There has been three trades since then and I'm only just looking now! Take it from me find a strategy that works and then automate that strategy. Your mental health and well being will be the winner in the long run along with healthy account gains. ------------------------------------------ I try and share as many ideas as I can as and when I have time. My trades are automated so I am not sat in front of a screen daily. Jumping on random trade ideas 'willy-nilly' on Trading View trying to find that one trade that you can retire from is not a sustainable way to trade. You might get lucky, but it will always end one way. ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. The stats for this pair are shown below too. Thank you. Darren
Education
by pow_removetheguesswork
73
Your Strength Meter For Candlestick | Best Momentum Indicator 🕯 Hey traders, There are multiple different ways to measure the strength of the market reversal from a key level: ✔️some traders apply volumes and look for its sudden spike as a confirmation, ✔️some traders rely on some indicators and look for a particular trigger there as the signal, ✔️some traders, like me, follow the candlesticks and make their judgments based on the candle's strength. In this article, I prepared for you a candlestick strength meter that will help you to accurately spot the reversal clues. ❗️Remember about the important precondition: that candlestick meter is reliable being applied ONLY on key levels. Trading that outside key levels is not recommendable. 📈The initial touch of a key level is very telling: after a sharp bullish/bearish rally to key resistance/support the reaction of the price on that can indicate you the strength of the identified level. There are three main classifications of the reversal candle momentum: *by reversal candle we mean the first bullish candle on key support or the first bearish candle on key resistance. 1️⃣The momentum will be considered to be low in case if the reversal candle will close within the range of the previous candle. It indicates the weakness of bulls buying from support / bears selling from resistance. You should patiently WAIT for some other signal before you open the trade. 2️⃣The momentum will be considered to be medium in case if the reversal candle will engulf the range of the previous candle. It shows quite a strong initial reaction being sufficient to open the trade ONLY in a strict combination with some other signal. 3️⃣The momentum will be considered to be high in case if the reversal candle engulfs the range of the last two candles (two bearish or two bullish). By itself, it is considered to be a strong reversal signal. The trading position can be opened just based on such a candle. Among the dozens of different candlestick pattern formations, I believe that momentum candles are one of the most reliable in spotting the market reversal. Learn to spot these candles and you will be surprised how accurate they are. What candlestick pattern formations do you want to learn in the next post?🤓 ❤️Please, support my work with like and comment!❤️
Education
by VasilyTrader
117
The logic of "sell half keep half" (Forex)Both holding & not holding don't make sense. Definitions: - Holding = try to hit "homeruns" every time - Not holding = snatching profits at target (not before, that's just being a huge noob) Assume winners 5 times bigger than losers on average: 5R. And the winrate is of 20%. So that's a PF of 1.25, all good. To keep it simple there is no trailing until target. Risking 0.5% per trade you'll never be down more than 10%. Once at target if you move the stop to 1R (-4), 12% of the time the price will go to 45R. So risk 4 to make 40, or 1 to make 10. With a winrate of 12%. PF = 1.36. But if you do hold and trail well... 12% of 20% is 2.4% of total. 80% will be losers (-1R), 17.6% will be +1R, and only 2.4% will be (huge) winners. In other words: Risking 0.5% per trade, by the time you get that big winner (+22.5%) you will be down 15, 25, maybe 50% on a bad luck streak, or more. 22.5% is just enough to get to breakeven after an 18% drawdown. Compared to just lose 4 times (down to 98%) then win once 2.5% (up to 100.45%) Even after a 10% drawdown (an unlucky >20 losses in a row) get a few 5R's and you quickly get back to zero. Holding just makes little sense, and there is no margin for error. But at the same time it's stupid to ignore these big wins. So here is the solution: Sell half, keep half. (Or any other fraction). Selling half at target allows to smooth the returns. If they are too volatile it just won't work out. And keeping half first with a wide stop then maybe not as much, allows to catch the "big ones". This makes most sense even if "on paper" some will say "oh well you should go for the big ones if the odds are in your favor" lol sorry but it's a bit more complicated than this. More generally with Forex I think that any risk to reward under 1 to 2 is bad as is anything above 1 to 10. Can aim for the moon, but not all the time. The "sell half keep half" concept is the best compromise. Adding to winner at some point is too dangerous, it doesn't work, it's just greed. Adding to winners is another subject entirely and anyway there is nothing as a "just do this". It all must be researched and well thought. With this sell half concept you're securing 2.5 + 1.25 = 3.75 / 5R so that's 75% of the profit. Then risking 25% of profit to catch some of these massive winners is I think the smart move here. Profit is secured, to push this a bit further you might have thought of this already: secure enough profit to breakeven (on 20% winrate secure 4/5 R) and "go double or nothing" on the extra (1R). So it's as if in a way these big winners are "free". Risking 1R with 50% retracement means you're leaving 2R in or 2/5 = 40%. Pretty good. And then the account I showed turns to this: Isn't this the best? Sure you'll "only" be in the huge wins with maybe 1/3 of the normal size but it's how it is. This is not gambling. Really, there is no other choice in my opinion. Sort of go nowhere for a while, then boom get a big winner, account jumps up, then go nowhere for a while, etc. The risk all "double or nothing" is actually stupid even if "on paper" you are risking less than you stand to make. And constantly closing at target is just bad and leaving some profit on the table. This does not apply to stocks (sometimes it does, probably). To be honest with stocks you're better off holding everything and getting these zigzags and all so you always have (balanced out) losses ready to be declared, and the huge winners never ever getting closed.
Education
by MrRenev
17
Without this, you will not become a profitable trader Yes, this is risk management. Without proper risk management, your trading strategy based on levels, indicators, patterns, etc.will not make any sense. Any trading strategy should be supported by strict risk management, where the maximum allowable losses per transaction and the risk ratio are observed:the profit is always more than 1/2. You don't have to be right in every trade. It's just that your profit in successful transactions should be greater than the losses in unprofitable transactions. This correct use of risk management will lead you to success. ____________ The example shows one of the real scenarios of any trading system where the rules of risk management are observed: Deposit of 10,000$ The risk per transaction is -1% (or -100$) Total trades: 4 profitable trades = +14% 10 losing trades = -10% Total: +4% (or + 400$) Even though only 30% of the total number of profitable transactions, we still have a profitable result. Learn risk management and become a consistently profitable trader. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by UnitedSignals
128
Education excerpt: Relative Strength IndexGeneral information The Relative Strength Index (RSI) is a momentum oscillator that was introduced by J. Welles Wilder in an article published in Commodities magazine in June 1978. The Relative Strength Index measures the velocity of directional price movement and is commonly used in conjunction with a daily bar chart. However, it can be utilized on a bar chart with any particular time frame. The concept of this oscillator is based upon an idea of an asset being oversold or overbought. Generally, tops and bottoms are indicated when the RSI goes above 70 or drops below 30. Although, failure swings above 70 or below 30 can imply possible market reversal. Similarly, divergence between the RSI and price action on the chart can signal a market turning point. Chart formations and support and resistance often show up graphically on the RSI despite the fact that they may not be apparent on the bar chart. The slope of the momentum oscillator is directly proportional to the velocity of the move. Thus, the distance traveled up or down by the RSI is proportional to the magnitude of the move. The horizontal axis represents time and the vertical axis represents distance traveled by the indicator. The RSI moves slowly when the market continues its directional movement. However, once price is at the market turning point, RSI tends to move faster. Here is depiction of the weekly chart of USOIL: It is clearly observable that peak in RSI often coincides with peak in the price. Similarly, trough in RSI is often accompanied by trough in the price. Calculation The Relative Strength Index is commonly calculated using the close price of a 14 day period. The equation for its calculation involves several components. These are: • Average up closes • Average down closes • Relative strength Relative Strength (RS) = (average of 14 day's closes up/average of 14 day's closes down) Relative Strength Index (RSI) = 100 – Calculation begins with obtaining the sum of the up closes for the previous 14 days. This sum is then divided by the number of days used in calculating the generating figure for average up closes. Similarly, the sum of the down closes for the previous 14 days is divided by the number of days used in calculating the generating figure for average down closes. After these two operations are conducted, the average up days are divided by the average down days resulting in the value of the Relative Strength (RS). The number 1 is then added to the value of RS. Next, 100 is divided by the new amount of RS. The resulting figure is subsequently subtracted by 100 generating the value of the Relative Strength Index (RSI). From this step on, the previous value of average up closes and average down closes can be used to generate the next value of the RSI. In order to calculate the next average up close, the previous value of average up closes is multiplied by 13 and the present day average up close is added to this figure. This value is then divided by 14 generating the value for the new average up closes. In similar fashion, the new average down close is calculated by multiplying the previous average down closes by 13. Today's down close is then added to the figure. The resulting figure is again divided by 14 to generate the new average down close. After that, the same steps indicated to calculate the initial RSI need to be followed. Here is depiction of the monthly chart of copper futures market: Similarly like in the previous example positive correlation between peaks and troughs in RSI and price is observable. Divergence When trend is prevalent and two indexes (or index and price) are going simultaneously either up or down they exhibit positive correlation. However, when this correlation breaks and one index (or price) keeps going up while another index reverses down divergence is said to occur. Technical analyst should pay attention to this instance as it sometimes has abillity to foreshadow upcoming reversal in trend. Though, there are many instances when divergence occurs and reversal in price trend fails to materialize. For this reason some analysts like to implement concept of double divergence. Here is example of the divergence that we mentioned in our idea on 30th June 2021: Double divergence There are many instances when price continues its rise and analyst can observe oscillator or idex to fall only to see it later climb back up in tandem with price. (same applies to the opposite situation when price falls and index or oscillator starts to rise) The divergence occured but price trend remained intact. Because the divergence can be misleading, some analysts preffer to wait for the second divergence before placing their entries or exits. Disclaimer: This content serves only educational purpose.
OANDA:XAUUSDEducation
by Tradersweekly
43
How To: Find Good Traders To Follow & Who Picked the BTC Crash !Just thought I would show you an interesting way to see who is making the right calls before a stock or (crypto)currency makes a significant bullish or bearish move. With so many people posting on TradingView it can sometimes be hard to know who to follow. This is a way to see very simply who is making more accurate calls and best of all it IS NOT influenced by their number of posts or followers or reputation points etc. It is a great way to discover new users brand new to the site - or more established ones who have been on here for years. You can have one post or 100 and still stand out. If you find the same person consistently making the "right" calls and you like their analysis and how they trade then you can very easily follow them. (PS not really a crash, more of some profit taking and a pullback to support. Be interesting to see what happens over the next few days though.)
COINBASE:BTCUSDEducation
by zAngus
221
How To Use Sparks To Kickstart Your ResearchThis video was created by our team to introduce you to the new Sparks tool. Sparks are curated lists to help kickstart your research process. You can find lists of symbols related to specific topics like outer space, alt coins, and a lot more. Markets are sometimes driven by themes, trends, and narratives. Within those themes and trends are lists of symbols that are working to change something or build a better future. With the right research tools, investors and traders can find opportunities and capture enormous growth. But it all starts with a diligent research process and Sparks were created to help all investors and traders get started. That's key, getting started. All it takes is a spark to light a fire, to find the next best investment or trade. For example, here are some Sparks that may interest you: 1. Self-Driving Car Companies www.tradingview.com 2. Environmentally Friendly Stocks 3. Proof of Work Cryptocurrencies 4. Proof of Stake Cryptocurrencies 5. WallStreetBets Stocks And these are only a few examples. Our team is looking build even more Sparks in the future. Our goal is to help all investors and traders learn more about markets. If you have any questions or comments, please write them below. You can also request specific Sparks in the comments below. Thanks for watching the video and following along! - Team TradingView
NASDAQ:ATVIEducation
by TradingView
24
​​YOUR PROFIT FORMULA | Three Essential Ingredients 🤔💭💫 Hey traders, We must admit that it is phenomenally difficult to become a consistently profitable trader. This journey requires years of practicing and training, constant losses, and nervous breakdowns. If you are a struggling trader, if you are still looking for your way to succeed in this game, here is the formula that will help you to chase consistent profits. 💰Consistent profits = 📝Trading Strategy + 🤬Emotions + 📈Market Sentiment Let's discuss each element separately. 📝Trading Strategy: To be in profit in a long run requires an understanding of what do you actually trade. You must have strict and objective entry conditions. You must rely on the objective & verifiable rules for the execution of market analysis. You must have a plan to follow. A plan that is backtested and proved its efficiency. 🤬Emotions: Even the best trading plan, the most accurate trading strategy can be easily beaten by emotions. Emotional decisions such as revenge trading and early position close can easily blow the account of any size in a blink of an eye. The most disappointing thing to note right here is the fact that you can be taught how to execute technical analysis but you can not be taught to control your emotions. Your main enemy here is yourself and being in a constant battle with your greed and fear it is very easy to go broke. Only by being humble, disciplined and patient, you can successfully apply a trading strategy. 📈Market Sentiment: Mastering your emotions and having studied a trading strategy, it looks like it is finally the time to make money. However, occasionally the market tends to be irrational. Being chaotic and unpredictable, sometimes the market neglects every technical and fundamental rule. Crisis, euphoria: the reasons can be different. The fact is that such things happen. And it is your duty to learn to deal with unfavorable market conditions. 💰To become a consistently profitable trader, you must become the master of these three elements. Only then the doors to freedom and independence will be opened to you. ❤️Please, support this idea with a like and comment!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
51
Formation of consolidation according to Wyckoff (addition)Hello amateurs and professionals😎. I would like to add a few clarifications to my previous post about the Wyckoff accumulative model PS - preliminary support. The moment a large buyer appeared, who stopped the market and decided to gain a position. Volume increases and the price spread widens, signaling that the downtrend is nearing its end. SC is the maximum point of sale. Large mass sales by the public are consumed by larger professional interests at or near the bottom. Often the price forms buyout bars - it closes far from the low in SC, reflecting buying from these large interests. AR is an automatic rally that occurs when sellers begin to weaken and change sides or exit the market. A wave of purchases easily pushes prices up; this is further fueled by a short cover. The high of this rally will help determine the upper limit of the cumulative TR. ST - a retest attempt, in which the price revisits the SC area to set the position by a large player. If a bottom is to be confirmed, volume and price spread should be significantly reduced as the market approaches support in the SC area. Usually several STs are placed after SC. Nuance. False breakouts or shakes occur late in the TR and allow large players to check on stock before the mark-up campaign unfolds. The “spring” pushes the price below the low of the TR, and then reverses and closes within the TR; this action allows large players to confuse with the direction of the trend, increase liquidity and enter the market at a favorable price. However, the springs and knockout of the leads are not required elements: the accumulation diagram 1 shows a spring, and the accumulation diagram 2 shows a TR without a spring. Test. Large players check the market for supply throughout the TK (eg ST and springs) and at key points during price increases. If there is a significant supply during testing, it can be seen by volume, the market is often not ready for the markup. The spring is often followed by one or more tests; a successful test updates tops with insignificant volume. SOS - Volume appears and a major player is identified with direction. Often, an emergency signal occurs after a shake. LPS is the last point of support. Some charts may have more than one LPS despite the supposedly extreme accuracy of the term. BU - "back-up" - backups are a common building block prior to larger price increases and can take many forms, including a simple rollback or a new TR at a higher level. ------------------- Share your opinion in the comments and support the idea with Like. Thanks for your support! info taken from WyckoffAnalysis
Education
by DeGRAM
22
Warren Buffett performance from 14 to 83Boomers love to say "Warren Buffett made most of his money when he was old". Sorry but no, not really. They are mostly coping. They had 60+ years to do something with their lives, bit late to wake up all of a sudden if you ask me. Was Warren Buffet lucky? Considering the era he lived in he was UNLUCKY. His best years were during the worst market period. The market was strongest when he was a kid and an old man. Teens and twenties raging bull, thirties market slowing down, forties flat market, fifties to nineties mostly up up up. Think performance matter? Think the market is efficient? So the oracle of Omaha has always outperformed the market until his late 60s, and "on paper" his best was in his 30s, but in his 40s the market was flat and he still managed to produce very large returns. According to academic research on employees and scientists they peak in their late 30s, and chess sites also say the best players reached their peak ratings between 34 and 43. Coincidences? If you look at it relative of market returns, dividends reinvested, those are his performances: So even by looking at it this way, that seems more fair, his peak was still he 30s. This period where he "only" made 23% a year was the period that marked all these mindless boomers that have been saying for decades "put your money in the bank". Please do not give me advice you noobs. How are these boomers for real? In that skull of theirs, is it empty? Bank deposits used to return something stupid like 15% and now it's 1% or less, so why are they advising this? It blows my mind, they're actual parrots repeating something without knowing why or what it means. Today meta is: - There are zero no risk investments and on the flip side borrowing is free - Stonks only go up (until they won't anymore), for years, with central banks that have unlimited "money" supporting the equity markets - Forex is much harder (too difficult) for amateurs, and does not trend for long - Day trading is incredibly stupid, it was a terrible way to get very poor returns 3 decades ago and negative returns today - Bank deposits, day trading, mindless price action trend following: All haven't "worked" for over 30 years, amateurs still haven't figured it out Another great tip boomers and noobs give: "go sit in class and wait for time to pass that's rly important for ur future", "you don't have to have kids early you have time". Absolutely idiotic. Cool so by 35 you might know what you want to do, and it's already too late. I've told people over the years "sorry but young people don't do great and even if they do they always end up blowing up", this should not be translated as "Get started when you start having grey hair". You start earlier you'll gain more experience. If people "natural" peak is at say 37 and they start at 35, you really think they will reach their peak in 2 years? Of course not. Especially with investing. Investors might learn fast by being complete one tricks but even that would take a few years to really get decent. You can't really be a complete OTP with everything correlated, and you'd still have to learn more than just 1 stock to make money unless you're really lucky or something. The modern western zombie can't help but be wrong, they're imagining the "dynamic" 20 year olds and the "experienced" 60 year olds. No? Why are zombies like this? Are they actually trying to be wrong? They enjoy saying false things to look open minded? Or just dumb? "Dynamic" = excited. If you are excited in your investing you are doing it wrong. I am excited when my investment has been going up in a straight line for a year but not each time I enter a limit order. Even if you started investing at 5, at 20 your brain isn't even fully formed anyway. Garry Kasparov and Magnus Carlsen did become chess world champions at 22 - MC learned to play at literally 5 and GK at 7 (or before) and he started going to a chess school at 10. And still they were far from their peaks. Now who starts investing at 5 years old? Plus honestly, it's much more complex and you take your decisions over days, weeks, months, not a few minutes (I think the average chess game is 40 moves for a total of 1-3 hours). Also in chess you do not get drowned in a sea BS info and peer pressure, and sorting through all this crap takes a lot of rational thinking, something that appears later on. Now concerning this "experienced" 60 yos. These guys really think Warren Buffett was a mindless fool at 40? He'd been investing for 30 years boys way longer than you at your 60. How much more do you think you learn? There are obviously diminishing returns. I don't have any numbers but it got to be something like in the first 10 years you learn 100x, the next 10 you learn 15x, the next 10 you learn 5x, and so on. Also you need to keep up, a lot of things are changing, a lot of the "new things learned" will just replace the old ones that have changed. The majority of people can't even keep up with things as simple as "keeping your money at the bank does not pay anymore" or "day trading has always been bad but now it does not pay at all" after over 20 years... A last word, and it is soul crushing: I heard from a broker that they analysed the perf of the hundreds of thousands of clients they ever had and of the consistent losers (losing for 6 months) not a single one had turned into a winner (they're all short term, obviously you can't tell if someone is a winner or loser after just 6 months if they're long term and the market is in a downturn for 12). Not a single guy "learned" to be profitable. Out of hundreds of thousands. Not one. So hey, at least there is something positive here: you do not have to waste your time. You can actually know quite fast if you stand a chance or if it's best to quit. This is consistent with the french market authority (AMF) report as well as some academic papers showing that people do not "improve" over time and even lose more and more. Day traders (at least 85% of this guy clients) in 6 months had more than enough time for luck to even out, so that makes sense. By 6 months they'd have taken 250-500 trades minimum so their skill is quite certain by then, large enough sample size. These academics and regulators are a bit dense so forgive them, not their fault, investors DO IMPROVE. The regulators and "scientists" simply struggle with words, what they are trying to say is that investors that lose do not start winning, ever. But they all improve! Winners improve at winning and win more, losers improve at losing and lose more. Scientifically proven. In my personal opinion I think you don't even need 6 months to know if you'll make it. You know what brokers do? They mark some accounts as risk. It has nothing to do with years experience or account size. They look at 1 thing and 1 thing only. "Are this account winners bigger than its losers", if the answer is yes it gets marked as "risk" and the broker will hedge all of their positions in the market, if the answer is no the broker will just let it go to zero with a big smile on their face no need to hedge according to this broker there is literally 0 chance they will ever make money (makes sense, they close their winners before they can ever get dangerous). It's crazy how simple it is. Proves how useless it is to repeat these things. No one doesn't hear the basic tips. On day 1 investors will hear the words "follow the trend, cut your losses, don't day trade" and on day 1 will be decided if they are losers or not. They either go in the right direction or the wrong one. If they didn't listen on day 1 they won't listen on day 600, no matter how much proof is shown, no matter how often it has been repeated to them. This is crazy, do humans (99.99%) even possess self-awareness? Or are they just mindless NPCS that repeat something over and over no matter what? Someone has sweaty hands, is all shaky, and incapable of cutting their losses: there is no hope for them. There is a french expression (works with everything) "Pleutre un jour, pleutre toujours" (coward one day, coward every day/forever). People improve at all sorts of things but the hollywood wonderboy 180 story does not exist. There is an example of "Hollywood 180" story: Ryan Lochte is an American competitive swimmer and 12-time Olympic medalist. At 14 years old, his loss at the Junior Olympics changed his attitude. He later commented: "I suddenly said, 'I'm sick of losing'. After that I trained hard and I never lost there again.". Wow what a turnaround. He 👏 was 👏 already 👏 competing 👏 in 👏 the 👏 Olympics. Top 1% of the top 1%. He was competing in the Olympics without even training seriously. Duh. He didn't go from struggling kid bottom of the class that can't even beat some random average Joe to 12 olympic medals. "Boy is it hard I've been losing for 5 years I'm going to make it with the right indicators and the right course ok new years resolution" ye man sure good luck. Great traders are born, not made, but it takes decades of practice and learning for them to reach their best.
TVC:DJIEducation
by MrRenev
62