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Fed Rate Increase, its relation to BTC price and rounded cyclesHello Traders, I just wanted to put some visuals together as I am seeing a lot of banks making statements regarding the FED rate increases affecting the price of Bitcoin and other crypto assets negatively. I am not saying that this will not end up being the case but, I wanted to show what happened the last time the FED decided to increase rates compared to what happened with Bitcoin price action. As you can see around Oct 31st (the first red vertical line) of 2015 the fed stated to gradually and from the chart dramatically increase rates per the FRED chart for FEDFUNDS which shows the Federal Funds Effective Rate* (Blue Line Graph). The price of bitcoin continues to raise just like it has in every other run that has commenced along the way after a halving event which are also depicted on the chart (yellow vertical lines). As you can see where the fed peaked rates and began the downdraw in April of 2019 which lead into the pandemic drop of 2020 the price of Bitcoin was dropping more so due to the typical bear markets that come after a bull run. Another point I wanted to make is that it seems that every run in the past has ran on a general curve or parabola which it seems as if the price has currently reached that point again in this run as of now. Is this the bottom? Are we going up from here? Let me know your thoughts in the comments below. Have a green week, Savvy * The federal funds rate is the interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight. When a depository institution has surplus balances in its reserve account, it lends to other banks in need of larger balances. In simpler terms, a bank with excess cash, which is often referred to as liquidity, will lend to another bank that needs to quickly raise liquidity. (1) The rate that the borrowing institution pays to the lending institution is determined between the two banks; the weighted average rate for all of these types of negotiations is called the effective federal funds rate.(2) The effective federal funds rate is essentially determined by the market but is influenced by the Federal Reserve through open market operations to reach the federal funds rate target.(2) The Federal Open Market Committee (FOMC) meets eight times a year to determine the federal funds target rate. As previously stated, this rate influences the effective federal funds rate through open market operations or by buying and selling of government bonds (government debt).(2) More specifically, the Federal Reserve decreases liquidity by selling government bonds, thereby raising the federal funds rate because banks have less liquidity to trade with other banks. Similarly, the Federal Reserve can increase liquidity by buying government bonds, decreasing the federal funds rate because banks have excess liquidity for trade. Whether the Federal Reserve wants to buy or sell bonds depends on the state of the economy. If the FOMC believes the economy is growing too fast and inflation pressures are inconsistent with the dual mandate of the Federal Reserve, the Committee may set a higher federal funds rate target to temper economic activity. In the opposing scenario, the FOMC may set a lower federal funds rate target to spur greater economic activity. Therefore, the FOMC must observe the current state of the economy to determine the best course of monetary policy that will maximize economic growth while adhering to the dual mandate set forth by Congress. In making its monetary policy decisions, the FOMC considers a wealth of economic data, such as: trends in prices and wages, employment, consumer spending and income, business investments, and foreign exchange markets. The federal funds rate is the central interest rate in the U.S. financial market. It influences other interest rates such as the prime rate, which is the rate banks charge their customers with higher credit ratings. Additionally, the federal funds rate indirectly influences longer- term interest rates such as mortgages, loans, and savings, all of which are very important to consumer wealth and confidence.(2) References (1) Federal Reserve Bank of New York. "Federal funds." Fedpoints, August 2007. (2) Board of Governors of the Federal Reserve System. "Monetary Policy". Suggested Citation: Board of Governors of the Federal Reserve System (US), Federal Funds Effective Rate , retrieved from FRED, Federal Reserve Bank of St. Louis; fred.stlouisfed.org January 30, 2022.
INDEX:BTCUSD
by Savvythe1
1
GOLD - Facts to have a true sense of gold trading 🔥What is gold forex trading? Gold forex trading is the term used to talk about the ways you can gain exposure to gold via FX markets. Instead of buying and selling the precious metal, or speculating on its price using futures, you can trade it as a dollar-denominated currency pair or via gold-linked pairs. As historically gold was used as a currency, it’s not surprising that it’s still an internationally recognised part of the forex market. It trades under the currency code XAU. Trading gold in the forex market can be a great way for currency traders to get exposure to the commodity and diversify their portfolio. Its stability when compared to other assets during global crises means it’s a popular hedge against inflation. Often, the commodity gets a lot of attention around large market-moving events when investors get spooked and rush into the metal as a safe haven. For example, amid the Covid-19 pandemic, governments and traders started moving money into gold to protect against losses due to inflation. Can you trade gold on forex markets? Yes, you can trade gold on forex markets using the XAU/USD currency pair. This is the spot price of gold, which tells you how much 1 troy ounce of gold costs in US dollars. Alternatively, you can get exposure to gold prices by trading other currency pairs that have a correlation with the precious metal – these include the US dollar, Australian dollar, South African Rand and Swiss Franc. Gold and the US Dollar Traditionally, the relationship between gold and the US dollar has been an inverse correlation. As investor optimism has increased, money has flowed out of gold and into currencies, while periods of economic concern have created inflows into gold away from higher-risk assets (like FX). However, it’s important to note that the USD isn’t the only factor involved in gold’s pricing. This means that sometimes the correlation between gold and USD isn’t so straightforward and doesn’t always move 1 for 1. Especially as there have been instances of the US Dollar being considered a safe haven, due to its use as a global reserve currency, which has seen the asset classes move in tandem. Gold and the Australian Dollar Gold and the Australian Dollar have an extremely tight relationship due to Australia’s position as the third biggest gold producer in the world. It contributed about $5 billion worth of gold each year. As such, gold has a positive correlation with AUD/USD. When gold goes up, AUD/USD tends to go up. When gold goes down, AUD/USD tends to go down. In fact, studies found that a 1% increase in the nominal gold price led to a 0.5% appreciation of the AUD/USD nominal exchange rate. Gold and the South African Rand The South African Rand is often correlated with Gold as South Africa is a large exporter of gold. So, when the gold price goes up, it’s thought that the price of ZAR will rise too. This was particularly true when the Rand first entered circulation, but the correlation is still present as the precious metal represents about 15% of the country’s total exports. You could trade this correlation through the USD/ZAR pair, which would in theory have an inverse relationship to the gold price. Gold and the Swiss Franc The Swiss franc has traditionally moved in line with gold, given that more than 25% of Switzerland's money is backed by gold reserves. The Swiss Frac is a fairly common proxy for gold. We saw this relationship in full force in early 2020 following geopolitical tensions between the US and Middle East – gold rallied to around $1560 per troy ounce and the franc followed to trade at intraday highs of $1.03. So, in order to trade gold, you’d be looking at the negative correlation it has with the USD/CHF pair: when gold price goes up, USD/CHF goes down and vice versa. Gold forex risk factors There are a few factors you need to consider before you trade gold on forex markets: Liquidity – the ease to which you can enter positions can fluctuate throughout the day. However, the average daily trading volumes of gold pairs tend to exceed all currency pairs, excluding EUR/USD, GBP/USD, and USD/JPY Supply and demand – like any market, when demand is up and supply is down, price rises, and if supply increases and demand drops, prices will fall. Half of the global demand for gold is driven by jewellery production, while another 40% comes from investors Market volatility – as we’ve mentioned, the volatility behind gold’s price is driven by its use as a safe haven. When other higher-risk assets aren’t performing, people move to gold. In contrast, when risk-on assets are strong, gold trading levels fall How to trade gold in forex To trade gold in forex, you need to go through a few quick steps: Open a City Index account or log in to an existing account Search for a currency pair in our platform Decide whether to go long or short on the price Enter your positions, attaching stops and limits as necessary Monitor and close your trade Not ready to trade live forex markets? Practise trading gold-linked currencies in a risk-free environment with a demo account. Can you day trade gold in forex? It is possible to day trade gold in forex, but it’ll depend on the market conditions at the time because gold is a relatively stable asset most of the time – until there’s a period of economic uncertainty and more volatility. As XAU/USD tends to trade in a range , reaching previous highs or lows over time, strategies that take advantage of these moves tend to be more popular. By identifying these buy and sell points you can, for example, open a position on gold when it’s trending up and target a known level of resistance as your sell price. Compared to day trading, this is a relatively low-risk strategy and not designed for quick profit but benefits from the more reliable XAU/USD price movement. Gold forex trading times Gold forex is a 24 hour market, but peak trading volume is usually found in New York trading hours, which are between 1pm to 10pm (UTC). Trading gold markets during peak activity will offer higher liquidity and lower volatility, making them good targets for safe-haven positions. Alternatively, trading gold in lower volume hours can mean less liquidity but provides the extra volatility needed to execute shorter-term strategies. hope best of luck to you guys
TVC:GOLDEducation
by GoldenEngine
4
The 12 Tasks Of Trading12 tasks of trading which include: 1. Self-analysis to determine if you are in a state of mind to trade Prior to starting your trading day, it is very important to make sure you are in the correct state of mind to trade. You need to analyse yourself and make sure you are at the best state of mind to avoid mistakes in the markets. You cannot finish fighting with a friend, spouse, or colleague and expect to make great analytical decisions. Therefore, the first and most important step, is always making sure your mind is clear and at its best. 2. Mental rehearsal to avoid mistakes The second step includes you rehearsing your set of rules and making sure you are going to strictly stick by them. This will allow you to avoid many mistakes in the markets and in your day. 3. Daily focus to lead you towards your goal It is very important to have goals, but specifically daily goals. You need to determine what your goals are for the day including the pairs you are looking at, the times you will be trading, your risk management, and what you aim at gaining from the markets that day. Once goals are met, it is important to step back and wait until the next day to trade. 4. Developing your own style of a low risk idea. For students of Opes Trading Group, low risk ideas and strategies are all taught to them during the course. It is important for every trader to develop their own ideas and strategies that are low risk in order to always protect their capital. Capital preservation is the most important rule of forex trading. 5. Stalking the charts starting from high to low time frames Looking at the charts from the higher to the lower time frames allows you to be able to see the bigger picture before looking right in. if you started looking from the lower time frames, you could have a wrong picture painted for you as to where the price could be heading. You cannot see the bigger picture if you are standing too close to something, it is the same concept on the charts. 6. Action requiring commitment and not thought Once a trade and an idea has been analized, it is important not to second guess yourself and take the trade. Do not second guess yourself if you believe in yourself and your trades. 7. Monitoring the trade to keep the risk low Always keep your eyes on your trades. Now that doesn’t necessarily mean you need to be glued to your charts, but check them every once in a while, and at important candle closure to make sure they are still playing out the way you expect them to. 8. Aborting is the trade is not going well If a trade does not go as planned (and the reality is some won’t), it is important to cut your losses if the trade is clearly not going to recover. There is no reason to hold on to a losing trade if there is no reason for it to recover. 9. Taking profits when the reason for the trade has ended A take profit is placed for a reason, however sometimes the reasons end before the take profit has been reached, meaning it is very important to close the trade even if it means closing it early. Never become attached to a trade that you chase the take profit only to find yourself back at 0 or even in negative. 10. A daily review to monitor and prevent future mistakes At the end of every day, all the trades taken should be reviewed. This will allow you to see what you are doing right, and what you are doing wrong. This will give you a good indication for what is needed for future trades. 11. Being grateful for what went well Something so many people pay no attention to and ignore is gratefulness. Any positive day in the markets, is a great day! Be grateful for all that goes right, no matter how small the profits might be, because 90% of traders lost that day. 12. A periodic review to make sure everything is still working well Every quarter it is recommended that you review your whole trading system. As the markets change, we need to be able to change and adapt with them, therefore a periodic review will allow you to know if things that are working still are or aren’t.
COINBASE:ETHUSDEducation
by opes_trading_group
4
What To Focus On As A BeginnerFocusing on winning trades is your setback as a beginner Every individual begins their trading journey with the idea that trading is all about winning trades and making money. Soon after their dreams are shattered when they realise it was not as easy as they had thought it would be. Now as we all know, the road to success to many is long and difficult, and that’s exactly what makes them successful. So why should the road to success in trading be any different? Look at top performing athletes, they trained for years before reaching any kind of success that definitely did not occur overnight. This bring me to my main point where many traders could be failing due to focusing on winning trades rather than the process it takes to become a good trader. Every trader beginning their journey needs to understand that trading the financial markets is no different than a top performing athlete. In order to achieve success, one needs to develop their skills over years. Instead of focusing on winning every single trade, one should be focusing on the process and the experience they are gaining over this time. Studying your mistakes, your losses, your psychological weaknesses, your analysis, and your understanding of the charts, are far more important at this stage than focusing on winning trades. Look at your trading journey like a student attending university, a student will learn over years different topics, where some will seem worthless at the time, but will however develop their skills in the necessary fields to succeed in the future. Every beginner should deeply focus on the process. Winning trades are a by-product of a developed successful strategy which also requires a developed individual. The trader needs to be developed in their psychology above all in order to trust their strategy and apply it correctly without deviating from the plan. Take the time to focus on all aspects of your trading, and let the winning trades come as a result of that in the future. Trading is a marathon, not a sprint, always remember that.
COINBASE:BTCUSDEducation
by opes_trading_group
6
FOREX Trading Tips To Upgrade your level ( Check it out )The best traders hone their skills through practice and discipline. They also perform self-analysis to see what drives their trades and learn how to keep fear and greed out of the equation. These are the skills any forex trader should practice. KEY TAKEAWAYS Trading forex can be a great way to diversify a broader portfolio or to profit from specific FX strategies. Beginners and experienced forex traders alike must keep in mind that practice, knowledge, and discipline are key to getting and staying ahead. Here we bring up 9 tips to keep in mind when thinking about trading currencies. 8 Tricks Of The Successful Forex Trader Define Goals and Trading Style Before you set out on any journey, it is imperative to have some idea of your destination and how you will get there. Consequently, it is imperative to have clear goals in mind, then ensure your trading method is capable of achieving these goals. Each trading style has a different risk profile, which requires a certain attitude and approach to trade successfully. For example, if you cannot stomach going to sleep with an open position in the market, then you might consider day trading. On the other hand, if you have funds you think will benefit from the appreciation of a trade over a period of some months, you may be more of a position trader. Just be sure your personality fits the style of trading you undertake. A personality mismatch will lead to stress and certain losses. The Broker and Trading Platform Choosing a reputable broker is of paramount importance, and spending time researching the differences between brokers will be very helpful. You must know each broker's policies and how they go about making a market. For example, trading in the over-the-counter market or spot market is different from trading the exchange-driven markets. Also, make sure your broker's trading platform is suitable for the analysis you want to do. For example, if you like to trade off Fibonacci numbers, be sure the broker's platform can draw Fibonacci lines. A good broker with a poor platform, or a good platform with a poor broker, can be a problem. Make sure you get the best of both. A Consistent Methodology Before you enter any market as a trader, you need to know how you will make decisions to execute your trades. You must understand what information you will need to make the appropriate decision on entering or exiting a trade. Some traders choose to monitor the economy's underlying fundamentals and charts to determine the best time to execute the trade. Others use only technical analysis. Whichever methodology you choose, be consistent and be sure your methodology is adaptive. Your system should keep up with the changing dynamics of a market. Determine Entry and Exit Points Many traders get confused by conflicting information that occurs when looking at charts in different timeframes. What shows up as a buying opportunity on a weekly chart could show up as a sell signal on an intraday chart. Therefore, if you are taking your basic trading direction from a weekly chart and using a daily chart to time entry, be sure to synchronize the two. In other words, if the weekly chart is giving you a buy signal, wait until the daily chart also confirms a buy signal. Keep your timing in sync. Calculate Your Expectancy Expectancy is the formula you use to determine how reliable your system is. You should go back in time and measure all your trades that were winners versus losers, then determine how profitable your winning trades were versus how much your losing trades lost. Take a look at your last ten trades. If you haven't made actual trades yet, go back on your chart to where your system would have indicated that you should enter and exit a trade. Determine if you would have made a profit or a loss. Write these results down. Although there are a few ways to calculate the percentage profit earned to gauge a successful trading plan, there is no guarantee that you'll earn that amount each day you trade since market conditions can change. However, here's an example of how to calculate expectancy: Formula for Expectancy Expectancy = (% Won * Average Win) - (% Loss * Average Loss) Example of Expectancy If you made ten trades, six of which were winning trades and four of which were losing trades, your percentage win ratio would be 6/10 or 60%. If your six trades made $2,400, then your average win would be $400 ($2,400/6). If your losses were $1,200, then your average loss would be $300 ($1,200/4). Expectancy = (% Won * Average Win) - (% Loss * Average Loss) Expectancy: (.60 * $400) - (.40 * $300) = $120 In other words, on average, a trader could expect to earn $120 per trade. Risk:Reward Ratio Before trading, it's important to determine the level of risk that you're comfortable taking on each trade and how much can realistically be earned. A risk-reward ratio helps traders identify whether they have a chance to earn a profit over the long term. For example, if the potential loss per trade is $200 and the potential profit per trade equals $600, the risk-reward ratio would equal 1:2. If ten trades were placed and a profit was earned on just four of the ten trades, the total profit would equal $2,400 ($600*4). As a result, six of the ten trades would've lost money at $200 each, which equals $1,200 in total losses ($200*6). In other words, a trader would earn a profit on the ten trades, despite being correct only 40% of the time. Stop-Loss Orders Risk can be mitigated through stop-loss orders, which exit the position at a specific exchange rate. Stop-loss orders are an essential forex risk management tool since they can help traders cap their risk per trade, preventing significant losses. Using the example above, imagine the trader had a very wide stop-loss order for each trade, meaning they were willing to risk losing $1,200 per trade but still made $600 per winning trade. One loss could wipe out two winning trades. If the trader experienced a series of losses due to being stopped out from adverse market moves, a far higher and unrealistic winning percentage would be needed to make up for the losses. Although it's important to have a winning trading strategy on a percentage basis, managing risk and the potential losses are also critical so that they don't wipe out your brokerage account. Focus and Small Losses Once you have funded your account, the most important thing to remember is your money is at risk. Therefore, your money should not be needed for regular living expenses. Think of your trading money like vacation money. Once the vacation is over, your money is spent. Have the same attitude toward trading. This will psychologically prepare you to accept small losses, which is key to managing your risk. By focusing on your trades and accepting small losses rather than constantly counting your equity, you will be much more successful. Positive Feedback Loops A positive feedback loop is created as a result of a well-executed trade in accordance with your plan. When you plan a trade and execute it well, you form a positive feedback pattern. Success breeds success, which in turn breeds confidence, especially if the trade is profitable. Even if you take a small loss but do so in accordance with a planned trade, then you will be building a positive feedback loop. Perform Weekend Analysis On the weekend, when the markets are closed, study weekly charts to look for patterns or news that could affect your trade. Perhaps a pattern is making a double top, and the pundits and the news are suggesting a market reversal. This is a kind of reflexivity where the pattern could be prompting the pundits, who then reinforce the pattern. In the cool light of objectivity, you will make your best plans. Wait for your setups and learn to be patient. Keep a Printed Record A printed record is a great learning tool. Print out a chart and list all the reasons for the trade, including the fundamentals that sway your decisions. Mark the chart with your entry and your exit points. Make any relevant comments on the chart, including emotional reasons for taking action. Did you panic? Were you too greedy? Were you full of anxiety? It is only when you can objectify your trades that you will develop the mental control and discipline to execute according to your system instead of your habits or emotions. The Bottom Line The steps above will lead you to a structured approach to trading and should help you become a more refined trader. Trading is an art, and the only way to become increasingly proficient is through consistent and disciplined practice. Compete Risk Free with $100,000 in Virtual Cash Put your trading skills to the test with our FREE Stock Simulator. Compete with thousands of Investopedia traders and trade your way to the top! Submit trades in a virtual environment before you start risking your own money. Practice trading strategies so that when you're ready to enter the real market, you've had the practice you need.
TVC:GOLD
by GoldenEngine
3
Unknown side about Bitcoin ( For Beginner's ) 1 Cryptocurrency is volatile If you are the one who is constantly following the cryptocurrencies then, you will be able to notice how volatile they are. As virtual trading occurs on various cryptocurrency exchanges rather than a central exchange that indeed leads to an increase in the volatility rate. This is one of the cryptocurrency secrets that you must know before entering the crypto market. 2 Digital currencies have no backing fundamentals Cryptocurrencies are digital currencies that are not backed up by any central banks or governments like normal currencies. This is one of the cryptocurrency secrets that you must know. They don’t even have any tangible fundamental factors with which they can help derive an appropriate valuation too. So, this makes it clear that valuing cryptocurrencies in a traditional sense is more difficult. 3 There are more than thousands of crypto’s The crypto market has more than 1,300 cryptocurrencies but of all, Bitcoin is the true king of the market. BTC is the first tradable cryptocurrency that has been brought to the market and currently tops the list in the market. This is one of the cryptocurrency secrets that you must know. 4 Blockchain has great value When we look at the trading of virtual currencies, it is important to know what lies under those cryptocurrencies that can be valuable. Blockchain technology is something that is the infrastructure on which the top cryptocurrencies are founded. Blockchain tech is a digital and decentralized ledger that can record payments and transfer transactions safely and effectively. It is also a top-secret of crypto. 5 Miners have a role to play As cryptocurrency transactions need to be verified, the blockchain is frequently enlarged to account for new transactions and payments. So, for this reason, the whole job of cryptocurrency miners comes into place. Crypto mining uses high-powered computers to solve complicated mathematical equations on a competitive basis to verify and log transactions. And this is why the graphic-card hardware needs of miners have increased the sales of NVIDIA and Advanced Micro Devices too. This is one of the cryptocurrency secrets that you must know before entering the crypto market. 6 The key is decentralization The main fact that blockchain is so enticing is that it’s because of decentralization. There is no central hub where the information is stored and there is also no major data center where cybercriminals can attack and gain control over it. Because of this safety, blockchain becomes a great secure technology to make huge transactions too. 7 Blockchain is advantageous Blockchain is not only decentralized, but also has several advantages such as being quicker than that of traditional banking, and doing transactions without any middleman saving costs too. Additionally, blockchain also offers user control and transparency. This is one of the cryptocurrency secrets that you must know before entering the crypto market. 8 Blockchain is not perfect too Blockchain technology has its drawbacks, such as it’s a nascent technology that’s still being developed, and it can sometimes lead to slow transaction speed or verification slowdowns that are critical too. There are also issues about integrating this new technology into the fold too. 9 Cryptocurrencies are banned in many parts Though cryptocurrencies are the hottest topic all over the world, they are also banned in many countries. Some have chosen to outrightly ban the use of, and others as trading of, digital currencies. It is illegal in Bolivia, Bangladesh, Nepal, Kyrgyzstan, Morocco, and Ecuador. And there is a possibility that the list of countries may increase too. This is one of the cryptocurrency secrets that you must know. 10 Not everyone believes in cryptocurrencies Not everyone around the world goes crazy about cryptocurrencies. So, buying and holding digital currencies may not be suitable for all. Some may also like to go with the traditional currencies themselves. This is one of the cryptocurrency secrets that you must know before entering the crypto market.
Education
by GoldenEngine
68
Basic Steps Of Growing As A Trader / Investor“ You don't set out to build a wall. You don't say 'I'm going to build the biggest, baddest, greatest wall that's ever been built. You don't start there. You say 'I'm gonna lay this brick as perfectly as a brick can be laid, and you do that every single day, and soon you have a wall.” - Will Smith - NEVER INVEST IN SOMETHING YOU DO NOT HAVE KNOWLEGE OF. Choose What Kind Of Markrt You Wanna Be Involved In, I Peronally Trade In The Forex Market. Introducing Forex - What Is the Forex Market? - An Overview of Forex Markets - Uses of the Forex Markets - Forex for Speculation - How to Start Trading Forex - Forex Terminology - Basic Forex Trading Strategies - Charts Used in Forex Trading - Pros and Cons of Trading Forex - What is Forex? - Where is Forex Traded?
COINBASE:BTCUSD
by Prof_Invests_ZA
How To Succeed In Your TradingFocus on one single trading strategy One thing that many people try and do is switch between strategies constantly. This is setting you up for failure, and if the concept of probabilities is truly understood, you will comprehend the reasons why a single strategy will work. Any strategy is not going to have a 100% win rate, so first you should attempt at getting 50% of your trades right. After that mastering a 2:1 Reward to risk ratio is what will make you profitable. Trying to juggle many strategies will have you working tirelessly, but not moving forward in any particular one. Less trading, more education Many people have the conception that spending countless hours in front of the screen looking for potential set ups is how it should be, however that is completely wrong in my eyes. I spend minimal time now looking at charts and set ups, I highlight key levels I want to look at, along with alerts, and simply wait for the market to head there. Time spent looking at charts should be simply for education and mastering your strategy through back testing or simply understanding previous data. Approach the market from a neutral position Anyone that knows me knows how big I am on trading psychology and how I believe it is the most important aspect of trading. Emotions in trading can be one of your greatest enemies as it can lead you to failure even after your success. There are scenarios where you can take trades and be in positive which will lead you to feel over confident, happy, and those will ultimately will lead to irrational decisions if you let them. Those emotions will make you believe you are better than the markets, or that you can outsmart them, ultimately leading your successful trade to turn into a failure. The same can happen when you feel the opposite and lack confidence to enter another trade due to a loss, or think have feelings of doubt. This is why the market needs to be approached by a completely neutral position. Once you understand that for every person on one side of a trade, there is someone on the opposite side, you will begin to understand that the market itself is just a whole bunch of neutral information moving in nobody’s favour. Write your goals Affirmations are great and something that has helped me in every aspect of my life and not just trading. It is very important to write down your goals in order to manifest them into reality. All ideas first begin in the mind, and then come into the physical. Your goals need to be solidified, definite, and written down in order for your mind and yourself to know exactly what you are going after. Every single day, you need to read your goals aloud, envision them in your mind with every bit of detail possible in order to bring them into the physical. In order to achieve a goal you need to arrive at the destination first in your mind. Relax There is no need to rush a single thing in your trading journey, and believe me take it from my experience, every time I tried to, I failed. People attend university for years before going out into a career which then takes many years before mastering it, yet people want to master trading in a year. Patience is required in all aspects of trading, whether it’s on the charts themselves, or with your strategy, or with your learning curve. It all requires patience. If you are going after trading as a serious life career which you aim to remain in, then relaxing and taking your time is the first step. Nothing great comes from rushing it, especially the markets. Know how to handle your trades Based on your strategy and the concept of probability there are a number of things needed in order to appropriately handle your trades. Firstly, don’t touch your stop loss. I cant say this enough, but stop losses are determined as the final barrier before the trade is invalid, and they are determine before entering the trade. If you find yourself moving your stop, ask yourself why. You will find out mostly its out of fear of losing your money, which is one of the 4 fears of trading. Accept your loss and let the trade stop out, you had it there for a reason. Also, don’t leave trades behind out of fear. If you have a strategy that you have confidently developed, you should understand that the overall should be a greater number of winners than losers, and you should not leave trades behind out of fear, because they can be the ones that perform the best and make up for the losers. Another thing to have in place is an appropriate strategy for exiting your trades. Many people have trades that are in profit, however due to the lack of knowledge on how to exit their trades, they still end up not profitable. You need to have a system on how to exit your trades appropriately and at what levels. Always remember, the profit running on a trade is not yours until its closed. Risk management Yes, I know you have heard it and read it a thousand times already, but you have no idea how important risk management is until the day you master it and recognise it was the single greatest thing holding you back from success. People can have amazing strategies, the best reward to risk ratios, but with the inappropriate risk management trust me it means absolutely nothing. I have seen people overleverage on a trade simply because it “looked too good” compared to other trades, only for it to be the worst of the bunch. I have seen people lose tremendous amounts of money and one thing I can promise you is not a single one of these people lost 100 trades in a row at 1% a trade. Every single one of them lost their entire accounts due to ONE trade that they married. Risk management should be one of your main areas of focus, because believe me if you have mastered it, even with an average strategy you are doing much better than someone with an exceptional strategy with no adequate risk management. Keep track of your performance The only way to improve in any aspect of life is to first recognise what needs change and then work on it. It is very important to actually understand your positives and negatives and have them all tracked. A journal is one of the first steps in order to look in the mirror. Being completely honest is the only way a journal will work, and lying is only lying to yourself. If you are after serious improvement you need to appropriately identify all your flaws in order to better them. You should never feel down or behind, remember trading the markets is one of the biggest psychological challenges one can face, and that is exactly why not everyone is suited for them. Instead see it as a challenge to better yourself and achieve the perfection and discipline you have always desired on and off the charts. Trading the markets will teach you lessons that you will carry with you throughout your entire life and not just on the trading floor.
Editors' picks
COINBASE:BTCUSDEducation
by opes_trading_group
332
Common Chart Indicators: Part IIGood time of the day, family! A lot of you were asking for Part II for our popular chart indicators summary and here it is. Hope you y’all find it useful! Last week, we’ve covered Bollinger Bands, Keltner Channels and MACD (link under the post) and what they’re commonly used for. This week we have: We've been looking at technical indicators that mostly focus on detecting the start of new trends up until now. It is critical to be able to recognize new trends, but it is also critical to be able to recognize when a trend has reached its conclusion. After all, what good is a well-timed entry if you don't depart on time? The parabolic SAR is one signal that can assist us detect when a trend is about to terminate (Stop And Reversal). A parabolic SAR plots dots or points on a chart to predict possible price movement reversals. The Parabolic SAR has the advantage of being quite simple to operate. Basically, it's a BUY indication when the dots are below the candles. It's a SELL indicator when the dots are above the candles. Simple as that. Great for exits. Another technical indicator that traders use to determine where a trend is likely to terminate is the Stochastic oscillator. The oscillator is based on the following principle: Prices will remain equal to or above the prior closing price during an upswing. Prices will most likely remain equal to or below the prior closing price during a downturn. George Lane invented this basic momentum oscillator in the late 1950s. When the market is overbought or oversold, the Stochastic technical indicator notifies us. The Stochastic is a number that ranges from 0 to 100. The market is overbought when the Stochastic lines are over 80 (the red dotted line in the chart above). When the Stochastic lines fall below 20 (the blue dotted line), the market is likely to be oversold. We purchase when the market is oversold and sell when the market is likely overbought, as a general rule. The Relative Strength Index, or RSI, is a famous indicator created by J. Welles Wilder, a technical analyst, that helps traders assess the strength of the current market. The RSI is similar to the Stochastic in that it detects overbought and oversold market circumstances. It also has a 0 to 100 scale. Readings of 30 or lower usually imply oversold market conditions and a greater likelihood of price strengthening (going up). An oversold currency pair is interpreted by some traders as a sign that the declining trend is likely to reverse, indicating a buying opportunity. Overbought circumstances and an increased risk of market weakness are indicated by readings of 70 or above (going down). Since a lot of people have RSI as a default indicator on their charts, it’s a very reliable instrument (even though the margin is considerably large). See you next week for Part III?
BITSTAMP:BTCUSDEducation
by Investroy
9
Bitcoin is frustrated, so are the traders... 😑 ⚠️ 😑Hi everyone 👋🏽 🕊 Wish y'all have a profitable lifestyle 🍀 📌 BTCUSDT- Daily Time Frame - Heiken Ashi 📌 Supply Demand - Wave Analysis - Support Resistance 📍BTCUSDT chart is looking so complicated nowadays... with having so many NEWS and such different ideas about the price's future 📍Let's go straight to the point, from Elliott wave point of view we may see a retest and pullback to 2 zones to complete the bullish correction of the previous bearish momentum: 1- 53600 2- 56800 📍After the pullback we may see the 41900$ which is the 0.5% Fibonacci and even 39600$ which is the 0.681% Fibonacci (I do not think we will see the second level) to complete the 5th elliott wave. ✍🏼 I personally think BTC and Crypto did not reverse in a bearish cycle yet so we still have some time left especially before the end of 2021. ✍🏼 I guess we might see another ATH before December but if this time price fails to break the 65k-69k zones we might need a very long time to see another ATH ever again! ⚠️ HOWEVER I want to mention that price growth is REALLY slowing down and becomes so frustrating at the moment; I can remember 30k zones back early this year; if we compare these 2 zone together we can clearly feel the frustration and how much lack of hype can influence the charts ⚠️ The latest correction / dump happened vastly due to the new OMICORN so called ''virus'' or ''pandemic'' but why did not we see a very huge dump as we have seen like the 13th March ? But WHY? ✍🏼 I have 3 answers for that: 1- People know how to deal with a new pandemic or so called "VIRUS"! 2- The fear about the new variant of so called "VIRUS" did not last long 3- WHALES did not feel like to dump the charts more than that :)) 🤔 One thing that does annoys me is how unrealistic some predictions / TAs look in TradingView ideas? 🤔 How can someone have a 300k price target before end of the year, but suddenly after the 30% correction their target changes to 10k? ⚠️ It is very dangerous for other traders to follow others ideas especially with lack of evidence and or knowledge ⚠️ For having a 300k Bitcoin we need more than 5 trillion dollar TOTAL market cap and if you look wisely at the TOTAL chart you may find it a little bit unrealistic ! This is TOTAL chart along with RSI and its Hidden Divergence ! ⚠️ Your money is valuable and so is your time. Do not rely on other opinions when trading and or investing!!! <3 THIS IS NOT A FINANCIAL ADVICE PLEASE DO YOUR OWN RESEARCH BEFORE TAKING ANY SELL OR BUY POSITION GOOD LUCK NP TRADER
Short
by C_EWAVE13
4
Follow Price Action with Fibonacci Extensions - Pinball StyleHere I discuss how to play Fibonacci pinball with Apple. Fibonacci pinball is a sequence of fibonacci levels that are often seen in many instruments. Apple is currently showing a great example of this. Below I explain what I see; and how it can help provide targets as the instrument trends downward. After wave 5 completes I will show you how I will approach the next wave, so bookmark and stay tuned. It's crazy how accurate this method can be. It also has rules to know when a trade is invalidated and what to look for next. current sequence: 5 wave impulse down, waves (1) and (2) are complete. based on EW pinball, since wave i of (3) achieved a 32.2 -> 23.6 pullback, we can expect wave iii of 3 to extend to 100% extension of wave (1) based on reaction of wave iii at 100% ext, look for resistance between 61.8% and 78.6% ext for wave iv of (3) based on wave iii of 3 reaching 100%, we can expect wave v of 3 to reach 138.2 where it might turn up with an abc 3 wave correction. be aware: wave iii of (3) can have alternate pattern which means all of the targets thereafter would have to be shifted an equal amount if 3 wave correction is observed, look for wave (4) to complete between 78.6% and 100% extensions. Wave (5) can begin and based on wave v of 3 reaching 138.2%, expect wave 5 to reach 176.4% at minimum. to view wave (5) as complete, we would need to see a clear 3 or 5 wave move in the same degree; then reassess the sequence after the 3 or 5 up has completed.
NASDAQ:AAPL
by chartsareforships
ETH/USDT MarketAnalysis #ETHUSDT #MarketAnalysis As you guys can see in the 1D chart, ETH is filling in the order blocks, and it's moving towards another order block. BTC dominance is making bullish candles and ALTS are bleeding. So there is a high chance that ETH will reach the 1600 to 1700 range because there lies big liquidity. You can see our recent BTC Dominance post as well. The market will soon give you the opportunity to buy again. Just wait for the right time. Do your own research.
by TheCryptoCity
1
Educational: Two ways to take from the marketsOf course there are many ways to take chunks out of the markets. Hundreds of methodologies are out there. And the markets are experts at taking chunks out of you and your account. In the 4.5 min video I briefly show two types of 'attacks' on the market: 1 - Strategic 2 - Tactical . Strategic In the strategic approach (which could be any methodology), you plan very carefully over days. You're a 'sniper', hunkering down in the bush - you make very few movements - you're watching the enemy and waiting for best conditions and opportunity. You suffer sleepless nights. You suffer cold wind, rain, snow, muddy rivers, insects biting you. (These are the scenes from the movies and in realty that are well known - I'm NOT promoting violence or war). And despite all that, you endure. When it's right, you fire one shot! Your 'kill rate' is so good, that one shot is all you need. So the above analogy in market terms, is similar - waiting planning, suffering, and watching those charts, for that one high precision trade. Tactical Right - in this scenario you're at the frontlines doing hand to hand battle with the enemy. You are loaded with armaments, and you use whatever you need. Look - frontline battle is battle - nothing nice about it. In market terms, this is where you get down and dirty - that's why it's called scalping! In scalping you're making short term moves. You're not planning an attack - you're attacking. The enemy - the market - is there to take your heart out (aka your account)! It's either you want to be in that sort of battle or not. But if you're there, you have to have the right knowledge, skills and experience - else you'll be taken out. Making the money The money-making is not in the methodology - it is all about you! If your 'knife' doesn't work well, you're to blame. Don't blame the charts or the tools you use. Can you be both a strategist and a scalper? Of course you can. There is no law saying that a trader can't be both. Conclusion As a knife when used carefully can create good things, using it the wrong way can be dangerous to your safety or that of others. How you use the tool, is a matter of skill and experience. Are you fit enough? Do you have the right knowledge, skill and experience? Avoid the Dunnnng-Kruger effect as applied to traders (for reading about on the net). Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which have a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
WHSELFINVEST:GERMANY40CFD
by Captain_Walker
scalpers paradise (IWM)this is purely educational, and not investment advice. get professional advice before investing. there is nothing more predictable than reversals of the broad trend. take iwm for example. small caps are extremely sensitive to large volume market moves. small caps obey a general ruleset that ties their values and fundamentals to that of larger names and other indices as well as the dollar index. this doesnt mean small stocks move with the large names that are a much safer passive buy. the david and goliath relationship between businesses of varying internal and market values is nuanced, and unique in the world. the different ways companies keep cash on hand and their comparative debt ratios are like a slip fault. tremors begin in a given epicenter, usually a specific sector or subset of an index or sector, and they radiate out through closely to more distantly related groupings while the broader equities market as well as other asset classes absorb the impact. depending on how the smaller names are related to those prices, whether its a commodity or corporate bond, currency pair, what have you, the impact can be more or less volatile. impact, be it positive, negative or having a calming/sideways movement, can determine direction and magnitude of a trend (sometimes directly or inversely proportional to the affected grouping) in confirmational bias to the existing trend, or indicate reversal. it is these reversals that make a scalpers job so easy. avoiding the large part of a move, and only funding a trade during periods of reversal seems like giving up the fort. in reality, this castle keep so to speak adds a consistency and implied judgement to the soundness of a prospect. speculation is essentially eliminated, as the stock is so overextended in its involvement with whatever makes the move as to be an impossibility for the trend to continue. paying close to the direction of each arrow during a reversal in small caps, youll notice that nothing is pointing down. this is not because you shouldnt short IWM. this is just indicating how your stop loss always trends up, as profit can only realistically be kept in one direction. as the trend changes, and candles either begin to break lows or highs, the pattern of a higher low or lower low every candle on the next timeframe up will begin to break. one can make only long or short trades in either bull or bear case this way and still profit reliably. every small arrow can be a short or long, and this means the movement is far easier to forecast. entry and exit is determined purely by strict adherence to determined directionality and support or resistance levels. use a computer aided tool for this. dont rely on your own judgements or calculations. stay rigidly latched to your levels so as to trade like a robot would. you can add some padding to precise levels, but it shouldnt exceed a proportional amount to the movement that is changing. always trade on closure below or above certain reversal levels on a larger timeframe indicating a break in the trend and quickly average in as each new candle on a smaller timeframe confirms the break of trend. both directions are valid, so keep tight stop losses to lock in profit. this will mean orders need to happen rapidly. take your time, and pay close attention to things like bid/ask and levels in the order book, but rapidly return to being able to make your next move as opposed to something distracting like news or another chart. order most cost basis at the beginning and average smaller amounts as trends reverse. the fastest part of the trade in oversold bounces/overbought retracements is also the point where the most profit can be lost, so you dont want to take a bigger bite as velocity increases. dont follow the trend after it changes. the point of scalping is that moves are more predictable in smaller sizes. you are capitalizing on the volatility of an asset, not the trend of the movement itself. you will need to use much of your available cash to do this; upwards of 78%. the next move after a reversal can always be a fakeout to second reversal. i have pointed out some fakeouts with larger arrows. as your junior most assets reach a value that of your sr most assets cost basis, exit the trade. wait patiently for another trend reversal, and take smaller general direction trades in between with a looser stop loss that you can be more relaxed with. rsi is going to be in the low 20s monday. where do you think this could go?
AMEX:IWM
by cerealtrades
Here are few bad traits that burn tradersHello traders, Everyone of us have went through one or many of these traits listed here. Some of us are still struggling with this. Honestly, trading psychology is less taught in the trading world and this has become one of the contributing factors that causes traders to lose money and give up trading. These traits, if they are not controlled they can burn accounts and even leave a trader in a lot of debts which will lead to depression. It is always best to know oneself, list down all the traits that are manifested when in front of the screen and evaluate oneself what might be causing these traits and look for ways to control this. One can start sweating immediately he starts watching price swings and another can begin increasing the lot sizes after a loss hoping to recover the money lost. One can begin to be very confident in his new-found strategy that gave him profit 5 times in a row and only go harder the sixth time and loose it all. Another one sees a 24 year old boy on Instagram driving a Lamborghini that he apparently bought cash from the money he made from Forex in just 6 months and throw 100k in his trading account and risk it all. One loss after another, until the losses accumulates to thousands of dollars and eventually a trader begins to feel worthless and give up. It is not only about a strategy, your strategy can be good, if you do not have the right mindset-the mind of a trader, your strategy is useless. Safeguard your mind by feeding it with health stuffs, learn the proper way of investing, plan for a long term, write down your plans and work according to your plans-never ever deviate from them. Today, there are so many trading gurus-just how they are flexing about how they are making money from Forex, this tempts you to pull the MT4 trigger, aimlessly, hoping you can be like them. If you envy them and are making you feel greedy- unfollow them. Hahahaha. Trading isn't simple, if it were, I bet 90% of retail traders could be millionaires. Be patient with yourself, set long term goals and be determined to reach those goals slowly. Above all, continue acquiring knowledge and be humble to admit that no one knows it all. Me and you are a grain of sand on the seashore compared to the giant market.
FX:NAS100Education
by Forexintelligence_NA
2
RSI Indicator & How To Use ItHello everyone, today, we´re gonna talk about an RSI and how to use it. What is an RSI? Basically, it´s an indicator that shows if the asset is overpriced or underpriced. Basic information RSI is 0-100 if the price is at 0-30, the asset is underpriced and theoretically it should go up. if the price is at 70-100, the asset is overpriced and theoretically it should go down. Professional information You can set an MA based or RSI moves. And this is getting really interesting right now :) Every time, the MA is touching bottoms or tops of RSI, it will go up or down (touch bottom = go up, touch top = go down.) It works like an ball and floor. You just drop the ball on the floor and everytime the ball touches the floor, ball will just bounce and go up. I drew it to the chart (green circles). Okay guys, seems like we are in the end. Hope this helped you to make greater decisions and take good view at RSI. Personally, I use RSI a lot and it´s really saving my a$$. Thank you so much for reading my post, I´ll be really glad if you will hit that like button and follow me, so you can see other tutorials. Have a nice rest of your day and stay safe. Tommy.
CAPITALCOM:OIL_CRUDEEducation
by TommyTK247
Bullish Engulfing PatternsThe bullish engulfing pattern is a two-candle reversal pattern. The second candle completely ‘engulfs’ the real body of the first one, without regard to the length of the tail shadows. This pattern appears in a downtrend and is a combination of one red candle followed by a larger green candle. On the second day of the pattern, the price opens lower than the previous low, yet buying pressure pushes the price up to a higher level than the previous high, culminating in an obvious win for the buyers.
FOREXCOM:XAUUSDEducation
by Tradewithmoe
1
You want to trade crypto? You need to read this! Hello dear traders i hope you were not affected by recent drop. About a week ago i advised everyone not to trade this market neither short nor long becuse it's too risky for both sides. So what have should we do? I told you stay aside and wait for global trendline breakout.( i tagg that post below). What to do now? Now we should stay aside as we did. It's so simple and it's easy to do you do nothing UNTIL this trendline is broken. Maybe this is the bottom but we do not buy UNTIL this trendline is broken. In every drop and every midterm correction we only will be looking for clear GLOBAL PATTERNS like a big falling wedge, a global trendline, a big descending channel which price hits its top many times etc. So if you have a clear long term pattern trade it if you don't have it stay aside and watch. DO NOT trade local petterns and short term ones because in most of cases they will give you fake results. When people are trading and loosing money and market makers beat them hard you just watch and wait for a clear longterm pattern breakout. This is how you can survive in this choppy market. If you liked this post push the like button and tell me do you like to know how to exit the market right before a big correction?
Education
by CryptoTitans1
4