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Why 80 zone can be the beginning of the next BULL RUN? : SOLANA Before continue ,Please do follow like and comment :) (READ THIS POST) SOLUSD Solana is the fastest blockchain in the world and the fastest growing ecosystem in crypto, with thousands of projects spanning DeFi, NFTs, Web3 and more. In few years I see a massive adoption of NFT'S WEB3 , METAVERSE , Spanning DeFi and more if that happen solana right now is sitting in interesting price levels , as you can see we just reach an important level of demand in confluence with the 0.718 level. To be honest For me this can be an interesting buy zone. Why solana can increase in value in few years ? (fundamental approach) Pocket-friendly transaction charges Business-wise, Solana should have a high transaction fee because of its fast, huge transaction capacity per sec. Solana remains one of the cheapest when it comes to the transaction fee. Unlike bitcoin, which could cost $5 per transaction, Ethereum about $10 to $65, Solana’s transaction charges range from $0.00025 to $0.0001. It is worth noting that this ridiculous transaction fee on the Ethereum network would be reduced once the network fully transitions into ETH 2.0. Nonetheless, Solana remains the cheapest. POCKET FRIENDLY SOLANA FEE Unlike bitcoin or even etherum thas has high fees and not profitable fees , solana has the cheapest fees. Even if ETHERUM 2.0 is going to have cheaper fees once they increase the capacity of transactions solana fees are something like : 0.00025 to 0.0001 HUGE TRANSACTION CAPACITY!= INSTANT Solana has a strong transaction capacity. Bitcoin for example has a transaction capacity of seven transactions per second, Ethereum handles about 30, and Solana has a capacity of 65,000 transactions per sec. No network has been able to achieve this fit like solana. However, Ethereum is on the verge of transitioning into ETH 2.0 to improve its scalability and reduce its huge transaction fee. After this upgrade, Ethereum should have a carrying capacity of about 100,000 transactions per sec. Currently, Solana remains the fastest network among all other cryptocurrencies. Even when compared to visa card that has about 24,000 transactions per sec capacity, it should be noted that some of these transactions might take days for confirmation. COMPATIBILITY WITH SMART CONTRACTS Etherum quickly became the father of defi however, solana can run better application and fasters than etherum. Solana can overdoo cardano and become the defi father The setup will be invalidated if we broke below the 80.00 price however I'm bullish in longrun This is not a financial advise, it's just my point of view
FTX:SOLUSDLong
by AIRFOREXONE_
6
Supply and Demand Strategy Explanation (read)Hello Traders. Welcome to this Post about How to properly trade a supply level according to my strategy. In this post first post we will talk about how to draw it. if you can memorize the simple methodology, then you can start applying more advanced theories on top of them! and if you are able to draw and spot it you can find accurate scenarios. Make sure to follow for more content Frequent Questions : How to Draw a Supply level ? When to Know when we have a valid high probability Level? and a low probability level When a Supply level is invalidated? When to execute a trade in a valid area? Where should I take profits? ----- okay first thing first How to Draw it ? You just need to start with current price on the chart . Then look left and down until you find the origin of a very strong drop in price.That's what we call the origin. Understand that behind every drop and strong mouvement someone is behind leaving a footprint and is able to do whatever he need to protect his position from losing money Identify the base , order block , origin or whatever you call it and mark it from the messy top of the base and the wick to the extreme bottom or body. When to Know when we have a valid supply Level? Rules: Well it's all about probabilities , there is no certainties in this game. When you have a very strong bearish monthly structure or macro structure, supply levels tend to be accurate a stronger. In that case we are trading with the market flow and we are following the main direction. By other side , when you find supply level in a strong bullish structure that's what we call a low probability trade , it might work but remember that you are swimming against the flow of the river. When to execute a trade in a valid supply area? → It is possible that price retest the zone. If that happens , from my experience you need to combine multiple factors. One of the most important is the fundamental. when you have a strong fundamental trend confirmed , then a pullback into a supply level in a strong downtrend structure is valid. By other side when you have valid micro signals in a valid macro sell zone then, probably price will be using the supply level to the downside. Usually a high probability supply level is the one that broke a previous low , in that case we are sure that we are trading with the momentum. When a Supply level is invalidated? ❗The purpose of Supply levels are to push the price to the downside. in that way a supply level is invalidated when price cross beyond the base . By other side if price consolidate a lot in a strong supply level and slowly start to break the zone keep in mind that the price can slide up and totally invalidate the supply zone . make sure to only trade the first retest of the zone. Never trade MULTIPLE retests. remembers big players that entered in the zone that you sold don't want to see price crossing beyond the area. ❗Watch out for the big time frames trend I will leave few examples in the update section I hope this Educational Post was helpful . Make sure to follow and let me know in the comment section if you trade supply and demand ? have a nice day!
Education
by AIRFOREXONE_
19
BITCOIN: The Worst Case Scenario ! (comment your toughts)Hello Fam, before continue please do follow and like this post. In today's post we are about to discuss about BITCOIN Predictions , below in the comment section you will find other one emphasizing the 39000 usd area and 30000 area. Let me know you point of view about it in the comment section As you know many know the 30.000 K mark and also the 39.000 K mark are strong areas of demand , no one really talks about the 20 000 USD yet so powerful . Everything is possible , anything can happen but we do not have to forget that law in that way , the worst scenario ever can be a come back into the 20 000 area . If that happen because we broke the 30 000 level because of the psychology mass , we might have a huge bloodbath in all the altcoins. Make sure to take risk with amounts that you can afford to lose. In my point of view there is 3 scenarions: 39000 hold the price = less likely 30000 : massive fresh demand area ( interesting to potentially buy) =can happen 20000 : massive fresh demand area ( absolutely interesting to buy ) = attractive price = hypothetical , technically can happen Let me know your point of view in the comment section Please like and follow for more
BITSTAMP:BTCUSDShort
by AIRFOREXONE_
60
XAUUSD DECISIVE AREA This pair is on a decisive area now. Such area is very volatile to trade but at the same time it could be an opportunity also for traders. As per DOW its making LL LH and in order to break this it has to give closing above the previous LH which is around 1790 at the same time it could retrace back to 1763 and then targeting towards 1750 for new LL. The Ichimoku red cloud is still above while lagging span below which is favoring the bears . However as per Renko strategy with traditional settings it indicates a bullish move along with breaking a parallel bearish channel towards upward, one brick already formed above the channel. On Daryl Guppy both investors and short term traders have merged in between which again means a decisive area as both the long and short MA's are colliding. For hardcore traders it could potentially be a nice hedging setup and they can scalp as well. New comers kindly avoid this area. On daily- kinda inverse double top is formed also On weekly bullish flag is formed On monthly Cup and handle is formed For those who missed last week trades they could follow both the trade plans i have shared . Trade with discipline and without emotions. Get yourself numb of the gossips :) For $1000 account use 0.02 - 0.5 lots and make sure to trail the SL always to recover losses and maximize the gains. Have a safe trade ;)
OANDA:XAUUSD
by MilestoneInvestments
2
Why Traders Suffer From Analysis Paralysis In TradingAnalysis-Paralysis In Trading This is an article I’ve been avoiding. Maybe it’s cos’ I’m guilty of it. You know, A bunch of knowledge makes—jack cross the rubicon. It’s December 1, 1990. ugh… what a glorious day! I mean—I’m grateful I survived. Are you? (rhetorically—cos’ I talk to myself a lot). Anyway, I finally get to attend “School of Candles” in Pretoria. South Africa is a great country but, only because they have one of the best—Trading schools in the world. Hashtag “respectfully” . I mean—Finally! Heh… I’m here. The Oakland… miserable red-collar guy is here. Can you believe it? Considering all the blown accounts and failed trades—I finally left the country to… South Africa. Pfft… Don’t mind my excitement—at least—I’m not sitting on my a*s reading this article because I have a problem. You are! i’m pretty sure you haven’t travelled out yet and it’s cos’ you keep losing. You’re a loser! At least… someone had to tell you. Don’t worry that makes two of us. Yeah—you and uh… you! Ugh… duh… I know you are not here for my—school of candles story. You’re here cos—you are stuck! Am I right? Anyway, I’ll help I promise. But, you have to promise me that I won’t be wasting my time. Do you promise? Okay—Great. So… Analysis Paralysis In Trading (What Does That Even Mean?) Look at them… so peaceful. Quick question—Have you ever really stopped to watch kids play? The laughter, glee, ambience, passion—so peaceful; so serene! These guys literally have nothing to worry about. Don’t you miss that? When last did you laugh? No… like actually laugh. These days—we have to watch a funny illiterate online to… crack up. How miserable can one’s life be? So sad; so depressing and why’s that? I don’t know about you—but, I miss those days. Nothing to worry about. You’re probably wondering, “What’s he on about?”… I just had to remind you of what your life (hopefully you’re still breathing)… is supposed to feel like. Before… I tell you how it actually feels like. That’s why you’re here right. Shucks. Analysis paralysis—wonder who comes up with these names. In a lame man’s term, it’s basically being paralyzed (not literally) from over-thinking. over-researching and over-analyzing… Why do we do these things; why do we even do anything. Imagine the thought of—mentally paralyzing yourself… Do you love yourself at all? Of course not—Humans (you reading this now) think of the possible worst for—every situation. Imagine… You go out and a complete stranger gives you money, from nowhere; out of the blue. What’s the first thing that comes to your mind? Be honest, Don’t lie. That’s what I thought. Anyway, Being completely mind-paralyzed is bad. I mean … have you seen—how they have to literally drive paralyzed people everywhere… They become furnitures (not trying to be insensitive); they really can’t do anything… on their own. You’ll end up—A furniture trader! Analysis Paralysis In Trading (How Can You Tell?) In school (school of candles), I attended every class. Wyckoff 101, Fibonacci 203 (borrowed course), Way of the candles, Price-action 105, Order blocks and Market structures 103, Supply and Demand, Indicators not manipulators… Weird ones! I took all. Trust me —I was a diligent student. But, I had no direction. I practically learned everything and anything. I mean—I wanted to be a great trader (don’t we all). The next class (Final year) required… Mastery. I realized that—sticking to one thing was a problem. Oh! No, I can’t choose. I literally attended all classes—just to find out what was best for me—even after taking these classes… in my first year. Hello Jane, I know this is kind of awkward… But, what’s your major? Uh… Order blocks. Imagine! I couldn’t even come up with something. What the H-E-L-L do you want Jamal? You’re just going round in circles. I couldn’t choose. Wanted to take action but, how could I? No one gave me the memo. I don’t even know what making decisions feels like. “Making Decisions” suddenly sounds like the strangest word in—the dictionary. So, tell me have you been in this position. All you keep doing is learning—anything; everything. But, no actions! Two ways you can tell: Can’t seem to make a decision. Always looking for a better solution—without actions! For analysis paralysis in trading It’s not something you can cheat. As a trader, You can’t go over or under it—Dealing with it is… the only solution. You keep delaying actions—whilst over-analyzing every situation. For this trader—you keep imaging downsides… Always the negatives; never positives. Imagine taking a trade—but, you’ve already imagined—300 scenarios of your plan going badly. Pfft… heh—who does that? Uh! you. You’re literally mentally paralyzed. What other options do you have than over-thinking everything. Are You Asking The Right Questions? Ta-ta… I envy them so much. Anyway, You learn to be in the comfort zone because… Why stress your brain till it’s paralyzed. Your brain is literally “yours truly”—It would always try to keep your safe. It will protect you, which is good. But, you become safe and unsuccessful. In trading, which do you prefer? Actually making a decision irrespective of the outcome or… staying out and avoiding everything. I mean if we’re being honest—the second option looks safe and comfortable. Will you choose that though? Remember you want to be rich; you want financial freedom. Even if you go through hell—do it without hesitations. Yup—That quote is a reference to the previous sentence. Eh… your lack of decision making will only make you—miss out on a million market opportunities. So, are you asking the right questions? When you literally ask yourself the right questions… It gives room for a clearer thought process and faster decision-making. Honestly though—Let’s blame google. An increase in options; an increase in choice. The fear of making the wrong choice arises. Then you become mentally paralyzed. Most traders today are stuck. I remember meeting a guy (Joe)—In one of my trading communities—in school. This guy found it hard to make a decision. Heh… So he buys and sells at the same time. Analysis paralysis in trading can make you a fan of gambling. But, there’s a solution… You can start by answering the right questions. What are the right questions? Is it worth the risk? Will it matter in 5 minutes? What was my first choice? Can you answer these questions? Make it a habit to answer these questions before—you take a trade. Not just trading—anything at all… Train that brain of yours. Is It Worth The Risk? You know some-times the best way to eliminate choices is to—know the risk attached to each choice. Imagine having a $50 account (your only money) and trying to take a trade. You’ll probably over-think every thing because—you just can’t lose that money. I mean… Heh—that’s all you have right? So, the first question should be… “If I take this trade, is it worth the risk”. Note that… you might lose—but, the keyword here is “risk”. How much are you willing to let go of?… That should be the first thought. Try this exercise and you have to be truthful—always!… If I was given $50 and I was told to give someone $5 (out of your $50)… Would I be okay with that? If you will, then you can decide to risk 10% of that account—knowing that you won’t feel bad if you lose. Ergo, You’ve just made a decision—because you eliminated your options. I mean losing 10% of $50 is better than losing all. Now what next? you need to eliminate all trades that will make you lose more than 10%. See, No mulling— just progress. Note that… Not all trades are negatives. But, we should always consider the risk. Will It Matter In 5 Minutes? Now you know the risk you’re willing to take, the next question is—Will it matter in 5 minutes? Ever heard of the “5 by 5 rule”? Well, the 5 by 5 rule states that—if you come across an issue take a moment to think—whether or not it will matter in 5 years. If it won’t, don’t spend more than 5 minutes stressing out about it. Forget the “5 years”—My own 5 by 5 rules is… don’t waste 5 seconds pondering over it, if it won’t matter in 5 minutes. Mine works right? I mean… 5 years is a pretty long period you know. By the way, the market waits for no man. The fact of the matter is, there are some problems that do not need your full attention. Why stress over some money you’re okay losing. If after 5 seconds you’re cool with it then—go ahead! Do me a favor. Let’s practice… Um—can you remember what you just did 5 seconds ago? If you can, it matters; If you can’t, “It’s irrelevant and doesn’t matter. There, fixed right! What Was My First Choice? The human mind is like a sick computer virus. It’s basically, randomly, just processing relevant and irrelevant informations and thoughts. You tend to have all these choices, thoughts and feelings all mixed up—especially during pressure. I was listening to Roger Khoury the other day and he said, “When driving a car in a—calm state—you’re basically just following the rules of the road right? But, what happens when you’re late for a meeting—You find yourself breaking all these rules.” Similarly… same applies to the market. You don’t have time; you’re supposed to make a decision—If not, the market leaves you. Then if you’re like me that attended all classes in—Pretoria, you probably don’t have a particular strategy. Different options; different opinions. What happens? You become paralyzed! All this can be avoided if you remember your first choice. Many traders fail to understand that our gut feelings, our instincts—matter. Where do instincts come from? In as much as the brain behaves sick sometimes—It also stores useful informations… knowingly or unknowingly. These useful informations are usually processed when needed. Do you ever know something and wonder—how you know that thing? It’s cos’ you probably already came across that stuff but, you ignored it. Cos’—It didn’t matter. But, look who wasn’t ignorant “your brain” yeah, remember… “Yours truly” loves you. Those first choices… are thought of for a reason. So, make them your last resort—always! Havoc Of Analysis Paralysis In Trading Hey guys, my name is Jamal and I’m a victim of Analysis Paralysis in trading … “Hey Jamal”… Sounds familiar. Yeah, group home. My encounter with Analysis Paralysis in trading wasn’t a great one. There were consequences. Each with its own baggage. After I narrowly graduated from the School of Candles, Pretoria. I mean I’ve learnt everything—I was ready for the market. On Tuesday, May 3, 1994, I deposited $50,000 to my trading account. As a graduate of School of Candles—what was the next thing? To get into the real world of trading . A nasty encounter in the market occurred. I found a GJ (gbp/jpy) trade, the daily had a bearish head and shoulder, the—4 hour, a double bottom. On my chart, I had Bollinger bands, Moving averages, Relative strength index… Name it. Yeah —I was that confused. Didn’t know if to—buy or sell. Oh! No, a clash of interest. My indicators… some gave me buy signals; others sell signals. Oh my God! What now? What’s the direction—Now I’m exhausted, tired, I can’t think straight! The market decides to buy… Yeah, I guess I’ll go long now. The sound your phone makes when you just placed a trade. Greedy old Jamal, used 2 standards for US30 on a $50,000 account. I was more than confident. The market does it thing. What! no… no… n0—Why is there a sell taking place now? No! The Havoc That’s it… That was so easy I lost it all. Everything! “What was the point of school then?” I thought. Useless! You’re so useless Jamal. You can’t get anything right. I couldn’t make a decision… My brain said, “Pause”. I was paralyzed and I failed. Three things happened to me: My trading performance reduced Creativity was gone. Couldn’t decide on a strategy and all patterns became useless. Lost my willpower. I couldn’t make a decision—too many options. Thank you for listening! “Thanks for sharing Jamal”. How To Overcome—Final Words Don’t ask me what I went to a group home to do. Analysis paralysis in trading affects you mentally—It builds into a habit and you become the hesitant trader. Do you remember him? That guy who couldn’t make decisions, that insecure coward. Yeah—that was who I became. June 23, 1994, I was in bed. Thinking, crying, staring—”What went wrong?”, I thought. How come… I mean i’ve gone to one of the best schools, learnt everything there is to learn, and graduated with a 2:1. So, what exactly is the problem. I discover that—I was. “Jamal you are the problem”—I discovered 6 things. These 6 things I’m going to tell you are very important. I’m telling you because—I love you. You shouldn’t follow my past; you shouldn’t make my mistakes. My mom’s teaching helped. Remember when she gave me the trading elements and principles… Steps To Overcoming This Nuisance. This is the truth; this is my truth. After a month I discovered that: You need to trust you. No one else opinion matters in the business of trading. It’s your business—You should mind it. Limit the amount of research (information you consume) you do. It’s called “learn and earn” for a reason—Not “Learn and continue learning”. Talk to someone. If you think you’re stagnant, you need to pour out all those information—on someone. Teach them! Perfection isn’t the key. Progress is! Know your end goal always. Notice every thoughts and emotions. If possible, write them down. If you follow this manual, you should never have reason to be stuck or mentally paralyzed. Remember sharing is caring! Tell someone about this article. Most traders have no idea what analysis paralysis in trading is.
OANDA:NAS100USDEducation
by lazyluchi
2
HOW PROFITABLE TRADING LOOKS LIKE ? (EDUCATION)Hello traders, I'm making this post in order to help the community, most of you focus to much in technical analysis but let's take back to basics a put things clear. Before continuing reading make sure to give a like this will help the community use proper risk management. Let's talk about simple math : This is simply a conceptual series of 10 trades, taken one after the other from abeginner perspective let's us act as a beginner: if at the beginning you risk more than expected then it will take you a lot of work to recover from that DD%. Make sure to have a proper risk modelling and follow the rules to survive. New traders execute trades with certainties " this loos good" "I will risk more" “ I can’t lose in this trade “ "I will risk more in this one because I need to recover my previous loss" . "I lost the previous one i will risk less" Here is where the problem occurs: When you modify parameters in your risk modeling it will have a strong impact in the outcome. This example was clear. Our dear Mr amateur risked more in the first trade end up losing more ( uncontrolled loss) , then took another normal loss , after that he has two winning trades but guess what? Mr emotional become greedy and risk more after having two profitables trades and guess what ? He just distributed all the money back. See how his biggest loses come after the biggest wins . After that big loss mr amateur is scarred to pull the trigger and of course he cut winners very quickly because he’s afraid to distribute back . Well for him trading becomes a nightmare . Markers are consuming his pocket and soul . Now Let us say for example that you took 10 trades with proper risk management ? With a probabilistic approach? the outcome is totally different. And guess what there is no magic trick . Profitable trading is a unemotional risk manager game , Chose wisely . Here is where the solution is : EVERY TRADE IS UNIQUE , ANYTHING CAN HAPPEN. MANAGE YOUR EXPOSURE OR YOU WILL HAVE NOTHING LEFT TO MANAGE. PRO traders understand that in order to have results they must adopt a series per trade approach Please do follow and comment your thoughts. let me know in the comment section what do you think about it .
Education
by AIRFOREXONE_
8
QuantumScape Stock AnalysisQuantumScape researches solid-state lithium metal batteries for electric cars. It formed a joint venture with VW to produce solid-state battery cells for, initially the VW manufacturers and ultimately, other car manufacturers. From early 2021 to recently, QS experienced a massive correction in its stock price due to a lawsuit led by investors who purchased the stock between November 2020 and December 2020, alleging the executives of the corporation delivered false statements that overstated QS's purported success related to its solid-state battery power, battery life, and energy density, along with the corporation's ability to scale its technology to the multi-layer cell necessary to power electric vehicles. From July 2021 to early November 2021, the stock price has been consolidating as the corporation battles a lawsuit while continuing its operations. As the EV industry gains more traction, QS is expected to benefit from the emerging industry, especially since it is backed by several corporations and investors. Recently, QS's single-layer lithium-metal battery cells underwent several tests which it passed successfully. The battery is approximately equivalent to 24,000 miles driven for a 300-mile range vehicle, demonstrates the ability to perform over a vehicle's expected lifetime, and can operate at continuously high charge and discharge rates with minimal degradation (exactly what EV manufacturers would prefer). Additionally, QS announced that it has secured a 10-year lease for three new production facilities to expand its San Jose (location where it is headquartered) campus. The new space will be dedicated to manufacturing the solid-state lithium-ion batteries to scale up production after the development is complete. The new production may start as early as January/February 2022. The recent surge in QS's stock price is also partly a result of President Biden's new $1Trillion infrastructure spending bill that has been officially approved because more infrastructure spending, especially in the EV industry, will provide a bullish momentum for almost all EV-related corporations (including QS). From a technical perspective (using only price action), the stock's price is now breaking out of a multi-month consolidation with a break and retest, providing multiple opportunities for entry. As we approach key levels, it is important to wait for more corrections and bullish momentum. Fundamental catalysts will be necessary to break past monthly and weekly levels.
NYSE:QS
by UnknownUnicorn4632978
2
Why Risk Management is so important ? (read)Hello traders, I'm making this post in order to help the community, most of you focus to much in technical analysis but let's take back to basics a put things clear. Before continuing reading make sure to give a like this will help the community use proper risk management. Okay let's begin. For every trade that you take, there is a certain scenario playing out. The moment that you clicked, for that moment of time, there were a certain number of market participants buying a certain amount and there were a certain number of market participants selling . Do you believe that the same participants transacting when you clicked for one trade, are the same market participants transacting when you clicked for another trade? Absolutely not; it is an impossibility. Every moment there exists market participants entering and exiting , anything can happen. Now let's talk about simple math : This is simply a conceptual series of 10 trades, taken one after the other from a beginner perspective let's us act as a beginner: if at the beginning you risk more than expected then it will take you a lot of work to recover from that DD%. Make sure to have a proper risk modelling and follow the rules to survive. New traders execute trades with certainties '' this loos good , I will risk more'' . ''I will risk more in this one because I need to recover my previous loss'' . ''I lost the previous one i will risk less'' Here is where the problem occurs: When you modify parameters in your risk modeling it will have a strong impact in the outcome. what happen in you risk 3 % in the 5 first trades and you end up losing ? you will end up in serious problems. What if you risk 2 in the first trades and you end up losing and then you say ok I will risk less because I'm losing to much and that trade end up making a 1 to 6 risk reward ratio.Hope this example was clear. Now Let us say for example that you took 10 trades with proper risk management ? the outcome is totally different. As you can see , we risk the same amount every time and we only need few trades to make decent profits. Proper risk modelling will allow you to have losing trades and still making profit. you can have a poor win rate like in this example and still end up positive. The only difference between the first trader and the second one is that in fact one has a trade by trade approach and the second has a series per trade approach. This might be hard to understand but if you really want to continue in the long you must use a proper risk modelling system. Here is where the solution is : EVERY TRADE IS UNIQUE , ANYTHING CAN HAPPEN. MANAGE YOUR EXPOSURE OR YOU WILL HAVE NOTHING LEFT TO MANAGE. PRO traders understand that in order to have results they must adopt a series per trade approach Please do follow and comment your thoughts. let me know in the comment section what do you think about it .
BITSTAMP:BTCUSDEducation
by AIRFOREXONE_
10
WHY RISK REWARD IS SO IMPORTANT? (READ)Hi Traders. Today's topic is regarding one of the most important fundamental risk management principles. Make sure to follow. One thing about Risk Reward, is that they are very decisive in order to make your account grow Imagine you're taking a trade risking 100 dollars to make only 50 dollars does it makes sense in the long Run? The answer is no, most likely you'll stuck in a chugging condition draining your mental capital and having periods of drawdowns. Risk Reward is something requires good understanding of the execution itself, knowing when to not use it, is as equally important as when to use it. In this post, we'll assume the scenarios and answer the most important questions about it. Scenarios: Risk 100 dollars to make 50 dollars or 1 to 0.5 risk reward ratio - This is the typical unprofitable financial decision. Most of the times new traders try to execute trades without even a decent risk reward, they trade just to be presents in the market, despite of the market conditions. In the long run by executing that kind of trades you will end up having heavy periods of drawdown and you will need huge amounts of trades to be back at BE and even more to make money. Risk 100 dollars to make 100 dollars or 1 to 1 risk reward ratio - This is a rather aggressive way to trade. I don't really advise new traders to try to catch that kind of trades. the reason it's because you will need the same amount of trades in profit to be back at BE. this tend to create flat trading equities. I advise to potentially lock one part of the trade if you want. let's imagine this risk reward as a coin. you have two faces and just a 50 % 50% chance. sounds a good deal to make money, looks more like casino. Well it looks like the odds are neutral and they are random distributed. We don't have odds in our favor. Risk 100 dollars to make 200 dollars or 1 to 2 risk reward ratio - Well now things start to become more interesting. Why ? because we have more flexibility to make mistakes and keep the same amount and in certain cases end up in profit. Imagine a random distribution of 3 trades like this ? what will happen if you loose those 3 trades ? you will end up with -3%. what if you are right in those 3 trades ? you will end up with +6%! Risk 100 to make 300 dollars or 1 to 3 risk reward ratio - This is the kind of trade that I advise new traders to focus on. why because it makes profitable equity curves and allows you to make money. Imagine a random distribution of 3 trades . what if you lose the first 2 and you win the last 1 ? you will end up in profit of 1% in this kind of situation you lost the majority of the trades but even like that you end up in profit? sounds crazy right ? well if you focus on trade high probability trades with 1:3 by having right 3 times you can be up 9 % !!! YOU CAN HAVE A BAD WIN RATE AND STILL MAKING MONEY Risk 100 to make 500 dollars or 1 to 5 risk reward ratio This kind of trades are very rare to find but possible. - From my experience by taking a random distribution of 3 trades if you fail the two you will end up with a -2% loss but if you win the last one you will be up 3% what if you win 2 trades with 1:5 ? it will be more like 10% of profit Quick disclaimer : 1. This is just a simple risk modeling example. it is not the real trading situation. In real life your risk distribution can me more like one trade -1 second trade +1.5 third trade 2.5 . In that way you just need to focus on the principles and general ideas to slowly build your risk modelling system. 2. manage your exposure or you will have nothing left to manage 3. Stay away from marketers that tend to say they have a 90% win ratio because they will probably have a 10 % ratio lol... Let us know in the comment section what kind of risk reward do you use or comment a high value idea with us . make sure to follow Trade safe as usual. Do follow my profile for daily fx forecast & educational content.
FOREXCOM:SPX500Education
by AIRFOREXONE_
8
DLF Cup and handle breakout and retest Dlf is looking for a swing , a swing trade can be initiated once the price gives closing above the resistance trendline . On a daily time frame the stock has formed a cup and handle pattern and given a breakout from 0.5 Fib levels , now it has corrected and retested after the breakout . so once it gives a breakout from this trendline it may give a good move upto the given levels . Also on 1 hour time frame it has formed a double bottom . I'm a beginner , I'm just sharing my views.
NSE:DLFLong
by vinayns21
Part 1: A simple analysis of Wyckoff of Wall StreetWyckoff was a pioneer in the technical analysis of the stock market in the early 20th century. He established the Stock Market Academy in 1930. The main course is to introduce how to identify the dealer’s process of collecting chips and the process of distributing chips/judge. Second and third, in the basic law of "causality", the horizontal P&F count within the trading range represents the cause, and the subsequent price changes represent the result. Fourth, fifth, the relationship between price and volume on the candlestick chart to analyze the relationship between supply and demand. This law sounds simple, but it takes a long time to practice in order to accurately grasp the volume and price. I heard that Wall Street financial institutions are using Wyckoff's trading method to judge the trend of the stock market and look for opportunities. So what exactly is Wyckoff's theory? Today, I will introduce to you the famous Wyckoff transaction method. The background of the birth of Wyckoff theory Wyckoff's theory was proposed by Richard Wyckoff. He was a pioneer in the technical analysis of the stock market in the early 20th century. He and Dow Jones, Gunn, Elliott, and Merrill Lynch are considered the five giants of technical analysis. Wyckoff is good at summarizing his years of failures in stock investment and is committed to introducing individual investors to the rules of the game in the market and the impact of large funds behind them. In 1930, he established the Stock Market Academy. The main course is to introduce how to identify the dealer's process of collecting chips and the process of distributing chips. Till there are still many professional traders and institutional investors applying Wyckoff's method. Two Five Steps of Wyckoff Analysis (1) Determine the current state of the market and possible future trends. Judging the current market trends and future trends can help us decide whether to enter the market and go long or short. (2) Choose stocks that are consistent with market trends. In an uptrend, choose stocks that are trending stronger than the market. In a downtrend, choose stocks that are weaker than the market. (3) Choose stocks whose "reason" equals or exceeds your minimum target. An important part of Wyckoff's trading selection and management is his unique method of using long-term and short-term trading point forecasts to determine price targets. In Wyckoff's basic law of "causality", the horizontal P&F count within the trading range represents the cause, and subsequent price changes represent the result. (4) Make sure that the stock is ready to move. (5) When the stock market index reverses, there must be contingency measures Three-quarters of the stocks are moving in line with the market. Grasping the market trends can increase the success rate of transactions. Wyckoff's price cycle Wyckoff believes that through detailed supply and demand analysis, including research on price behavior, volume, and time. The market can be understood and predicted. Wyckoff's 3-Laws Wyckoff’s icon analysis method is based on three laws, which affect all aspects of stock analysis. For example, the forecast of the market and individual stocks, how to select stocks, and the appropriate points to enter the market. 1. The principle of supply and demand determines the direction of the price. When supply is less than demand, prices will rise; when supply exceeds demand, prices will fall. Traders can analyze the relationship between supply and demand through the relationship between price and volume on the K-line chart. This law sounds simple, but it takes a long time to practice to accurately grasp the relationship between volume and price. 2. The principle of causality can explain the magnitude of future price rises and falls. Causality can help investors predict target prices. Calculate the size of the future market by calculating the chips in the sideways interval. You can use a point and figure chart to analyze the cause and predict the result. The "cause" is the number of points in the horizontal interval in the point and figure chart, and the "effect" is the ups and downs of the stock price caused by these points. 3. The principle of inconsistent volume and price can provide an early warning of trend changes. Inconsistency between volume and stock prices is often a signal of a change in trend. For example, in the case of continuous heavy volume, the increase in stock prices is getting smaller and smaller. This phenomenon shows that the dealer is shipping. Application of Wyckoff Transaction Law Let's use the dollar index to explain some of Wyckoff's concepts. The long-term bear market after its peak in 2001 ended in 2009. The fall method without resistance from 2001 to 2005 has proved to be an oversold market, and then the rebound in 2005 was relatively large, which we call the market-to-sales ratio (PS), and the subsequent fall speed tells us that the trigeminal indicator (SC) occurred NS. Looking at the increase in AR, the loss of SC is almost flattened, and the resistance of the supply line is completely negated, which shows that demand has absorbed the selling in the supply area. Wyckoff believes that the popularity indicator (AR) is the beginning of the true volatility (TR). Whether this TR is distributed or demanded depends on subsequent development. During the development of TR, CM's methods began to show. From their behavioral characteristics, it can be seen that this TR is a collection and distribution. Of course, after knowing the accumulation or distribution, you also know whether the market outlook is entering a bull market or continuing a bear market. In 2009 and 2011, the position of the ST tells us that the demand is greater than the supply. Otherwise, the demand generated on the SC will be absorbed by the large supply, causing the bear market to continue. Based on these characteristics, we judged that the accumulation may be greater than the distribution. Because if it is a distribution, the supply is still surplus, then any demand accumulated by the rebound will not help, and the price can only continue to look for greater demand. In conclusion: For the Wyckoff transaction law, many professional traders are using it, but the retail public is still not widely used. The completeness, systematicness, and logic of Wyckoff's method, as well as the ability to find high-probability and high-yield transactions, make his stock selection method and investment strategy stand the test of time. Wyckoff’s training methods enable investors to make sensible, fact-based trading decisions without being disturbed by emotions. Using the Wyckoff method, traders can put funds on the side of the smart money that is the main force in the market. As the content of Wyckoff transaction law is more, more knowledge about Wyckoff transaction law, I will write another article to introduce to you.
NSE:SBINEducation
by forextidings
5