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Three Reasons Why Most Traders FailThree Reasons Why Most Traders Fail Hello traders, I'm back with another educational post after receiving a lot of positive feedback. Today I'm going to break down three reasons why most traders fail! Traders Fail?! Yes most do, it is believed over 90% of new traders fail (this is an ongoing debate) but why is that? I personally believe it comes down to these three reasons. 1. Trading without a plan The very first step in achieving success is to create and follow a trading plan , one that is specific to your personality, lifestyle and goals. …BUT Many new traders try to rush the process and simply do not plan for success. “If you fail to plan, you are planning to fail”. - Benjamin Franklin A successful trader works within a well-structured plan, just like a business. Every plan should include trading related goals, a trading strategy and risk management rules. You need to be extremely disciplined when trading and follow your trading plan down to a T. 2. Emotionally Dictated Trading As you may know 90% of trading is purely psychological and I firmly believe this is the main reason why so many traders fail. Allowing adrenaline, fear, elation or greed to compromise their analytical ability. Traders who make emotional based decisions show indecisiveness, close positions too early and do not follow their trading plan ... *FACE PALM* Experiencing a consecutive series of losing positions will test your patience and confidence. Many traders will never overcome their inherent emotional biases, therefor you should seek to understand the range of emotions you may experience as an investor and how it affects your interactions within the market. You can learn what emotions you may face by checking out my idea "The 14 Stages of Investor Emotions". 3. Over Sizing Positions Traders should put as much focus on risk and money management as they do on developing strategy. Over sizing positions is nothing new, I see it all of the time with new and amateur traders. They cannot help themselves and want to trade big, they want the lottery win! ...BUT As you all know seeking out a lottery win in the forex market ends in disaster, accounts end up blown and dreams shattered. At this point many individuals give up and decide trading isn't for them or it doesn't work. The most effective way to deal with this problem is to lower the leverage and risk a maximum of 2% per trade. I am available via private message for any questions you may have. Here's to your success!!!
Education
by LewisGlasgow
1
A Simple Lesson in Risk ManagementUtilising a Risk to Reward Ratio How many of you obsess over an 80% profitability rate? You may feel the need to be right all the time and cannot accept a large amount of losing trades. OR You may think in order to become a profitable trader you need to win more than you lose. Well it's time to put that aside. You do not need to have a high profit/loss ratio or profitability rate to become a profitable trader, you can be right just 50% of the time (as shown on the chart) and still make an excellent profit by utilising a strict risk to reward ratio when trading. You can actually have a profitability rate of 40% with a 1:2 risk to reward ratio and still be in profit! The higher your risk to reward ratio the less you need to be right, many professionals use a minimum of 1:3 meaning they will risk 100 pips to make 300 pips. I personally use a minimum risk to reward ratio of 1:2... But in order for you to do the same, it has to align with your trading strategy. Do not set unrealistic profit targets in which you will not achieve! To round off this post I truly hope this explained the positive effects of applying a strict risk to reward ratio in your own trading. I am available via private message for any questions you may have. Here's to your success!!!
Education
by LewisGlasgow
17
(Step 1) How to trade my system A follower sent me a message to learn how to trade this system. Thank you for your interest in my trading system. I have consolidated my trading system based on three different individuals. i.e. Candlestick patterns from Thomas N. Bulkowski, supply and demand forex factory thread and Richard Dennis and William Eckhardt turtle trading. We will show you step by step slowly, how we created our own trading system and I believe everyone of you can create your own trading system in future. Every individual have their own risk appetite therefore you must find a trading system that suits your own personality. I still do not have a name to my system, but my system is based on supply/demand, support/resistance concepts. You guys are welcome to name my system. Comment below if you are interested to name it. We do trade base on other rules as well (ichimoku, ATR, Bollinger Bands, Price Actions, candlestick patterns, turtle trading) . Most of our entry and exit point are based solely on candlestick patterns; i.e. Engulfing candlestick patterns. I have learnt my candlestick pattern from my teacher which i found on google thepatternsite.com You guys can check on the link to learn more. I do not know him... but was inspired by him. Thomas N. Bulkowski is recognized by many as one of the world's leading authorities on chart patterns. He is a successful investor and trader with over thirty years of market experience. I learnt my supply and demand from www.youtube.com However I did some modifications to it on my own. I have learnt turtle trading from Richard Dennis and William Eckhardt In future I think it would be good if I tag them separately. So help me name this system and I will tag it separately. Remember that everything about trading is about discipline. Please exercise discipline or you will burst many of your trading accounts. I have been trading the past 5 years, busted 4 accounts with 4 different brokers. I am proud to say that I have not busted any accounts the past 2 years and I am slowly making profits. Since its Chinese New Year and I have some time on hand. I have decided to come up with STEP 1. Step by Step 1) Look at higher time frame. 1 week. 2) Identify the trend. (Within the last 2-5 years) 3) Follow the trend identified. 4) Identify Demand zone in this case (Sideways) - Uptrend then buy at demand zone - Downtrend then sell at supply zone - Sideways then can choose to buy/sell at demand/supply zone. We will always enter at H4. Which we will teach in future, how do we select the H4. It will be too much to digest if I teach everything at a go. A follower messaged me. Hello, Work_Harder!Your trading system has a complete tutorial? Hello, Work_Harder!Your trading system has a complete tutorial? Shoutout to Litrader who is interested in my system.
Education
by ForexTradingSchool
7
How to Trade the AB=CD PatternHow to Trade the AB=CD Pattern Hello traders, following up from my previous educational post I received several requests via private message for my take on the AB=CD pattern. This structure represents the basic foundation for all harmonic patterns, it is one of the classic chart patterns which is repeated over and over again. It was developed by Scott M. Carney and Larry Pesavento after being originally discovered by H.M Gartley. Firstly to spot this chart pattern like any other, you need to train the eye. It may be difficult at first but over-time it will become natural through repetition. How do I measure the move? Grab your fibonacci retracement tool and draw from point A to point B of the initial move or impulse leg to get point C. This must hit the minimum 0.618 (61.80%) retracement of the A to B move but not exceed 0.786 (78.60%). A valid C point is illustrated on the chart with two horizontal lines and a grey box. You're now looking to complete the pattern by locating the D point which is the potential reversal zone (PRZ), this represents a critical area where the flow of buying and selling is potentially changing. The D point is an extension of the A to B move that must hit the minimum 1.272 (127.20%) extension but not exceed 1.618 (161.80%). A valid D point is illustrated on the chart with two horizontal lines and a grey box. Or alternatively you can measure this move by using the ABCD pattern tool provided by TradingView. To summarise, the measurements for a valid AB=CD pattern are detailed below. C: 0.618 - 0.786 D: 1.272 - 1.618 The measurements for a perfect AB=CD pattern are detailed below. C: 0.618 D: 1.618 Trading Rules Wait until the pattern fully completes at the D point before buying or selling. Here are a few tips on finding a pattern with a higher probability rate (although not essential for a valid pattern): The length of line AB should be equal to the length of line CD. The time it takes for the price to move from A to B should be equal to the time it takes for the price to move from C to D. Stop Loss When looking to place your stops there are many ways this can be done depending on your trading plan, but it should always be placed below the D point. Your risk to reward ratio should be a minimum of 1:2 on every trade, if this cannot be achieved then I would not personally take the trade. Take Profit When using take profit targets I highly recommend having two and not just one, meaning you can close the trade after your first target has been reached or move your stop loss into profit (risk free trade). Just like your stop loss there are many ways this can be done depending on your trading plan, but I recommend setting your take profit levels at the highs or lows of C & A. Timeframes & Currency Pairs This pattern like any other and is more profitable with certain currency pairs and timeframes, you should do your own back testing before trading the pattern. Personally speaking this pattern holds and better structure and performs best on higher timeframes such as the 4h and daily rather than the 5m. To Round Off I truly hope this post explained how to trade the AB=CD pattern. I am available via private message for any questions you may have.
Education
by LewisGlasgow
4
How to Trade the Inverted Head and Shoulders PatternHow to Trade the Inverted Head and Shoulders Pattern Hello traders, following up from my educational post on the Head and Shoulders pattern I felt I should provide you with the bullish equivalent... The Inverted Head and Shoulders pattern. Featured on the chart is an illustration of a complete Inverted/Inverse Head and Shoulders pattern including the rules I personally use to trade it. This is an easily identifiable pattern which can be traded across various timeframes which means it can be used by day traders, swing traders or even position traders. Why the Head and Shoulders pattern? It has an excellent risk:reward Appears on all timeframes and markets Easy to remember and find It has a precise entry, stop loss and take profit This formation is mainly seen at market bottoms. It is rarely perfect in appearance and you may need a good eye to spot one (check my inverted head and shoulder trading ideas for an example). You can draw this pattern by using the TradingView tool found on the chart section named "Head & Shoulders" or by using trendlines. From personal experience the best performing Head and Shoulders pattern will have a right shoulder that is a 0.618 retracement of the head. The correct way to trade this pattern is to wait until the entire pattern has formed, then once price closes above the neckline... You can enter your position :) To round off this post I truly hope this explained how to trade the Inverted Head and Shoulders pattern so you can use this for your own trading. I am available via private message for any questions you may have.
Education
by LewisGlasgow
5
The Power Of "FRESH" Supply & Demand ZonesDetermining the strength of the fresh zones. Every time the trend changes direction, it is because of a change in the balance of supply and demand, but to use this to our advantage we need to know the likelihood of that imbalance being there the next time price returns to that zone. Supply and demand zones are similar to support and resistance lines in that supply zones provide resistance and demand zones provide support. When price breaks through a supply zone it becomes a demand zone, and when price breaks through a demand zone it becomes a supply zone—the same way a resistance line turns into support when broken and a support line turns into resistance. The similarities end there, though. A support or resistance line requires at least two points separated by time to be drawn, where a supply or demand zone can be plotted from one candle. Most traders will tell you that you should have three points for a support or resistance line to be drawn. Traders are also taught that the more times price bounces off of a support or resistance line, the stronger that line is. The opposite is actually true.
Education
by tradewonk
52
Trader QuestionnaireTrader Questionnaire The purpose of this post is boost your overall confidence as a trader, to show you how much you have achieved since the beginning of your journey. A personal assessment review is an excellent way to outline your personal beliefs and expectations of trading in general. Write down your own answer to each individual question and review these questions/answers from time to time as you progress throughout your trading career. 1. When did you start trading? 2. What is your favourite trading pair or asset? 3. What is your preferred timeframe for trading? 4. What was your best trade? 5. What was your worst trade? 6. What is your greatest trading strength? 7. What is your greatest trading weakness? 8. What areas of trading do you think you need to learn more about? 9. What is your greatest benefit of trading outside of the money? 10. What do you expect to get out of trading? I am available via private message for any questions you may have.
Education
by LewisGlasgow
6
Educational Series - Part 2---------- Continued from Educational Series - Part 1 (link below) ; ---------- 3. Expectancy : So, now we have got our risk reward ratio and winrate. We move on to calculate the expectancy of our trading strategy. The formula is, Expectancy = (Probability of Win * Average Win) – (Probability of Loss * Average Loss) So, in our scenario, where, Risk Reward Ratio = 2:1 Winrate = 60% we get, Probability of win = 60 % = 0.6 Average win = Reward = 3 Probability of loss = 40 % = 0.4 Average loss = Risk = 1 Putting these values in the formula, we get ; Expectancy = ( 0.6 * 3 ) - ( 0.4 * 1 ) = 1.8 - 0.4 = 1.4 Here, we get an expectancy of 1.4 , that is 1.4 is the average rupees you can expect to win per rupee at risk. {Example : you do 10 trades with 3:1 Risk Reward Ratio ; you win 60 % - earn 6 trades * 3 Rupees (18) you lose 40 % - lose 4 trades * 1 Rupee (4) you end up earning 14 Rupees even when you were right just 6 out of 10 times } This is a positive expectancy model, which we seek, to ensure that we will earn money in the long run. Professional traders aren't worried if their trade hits stop loss, because of this reason, that they know they will earn money ultimately. --------- NOTE : So, after learning all these concepts, what I want you to do is, from now on, pull out your charts and journal, see what works and what doesn't, set a specific strategy, determine the Risk Reward Ratio suitable to it, paper trade / real trade / past data - have a look and find out the winrate Calculate expectancy. What answers do you get ? Is it positive or negative ? How much can you expect to earn in the long run? -------------- Ok, so that was the first post, the essential basics of trading, and utmost requirement of a trading plan . I would like to hear from you all 3 things, 1. Whether you were able to understand and found it helpful ? 2. Whether you want more posts like these ? If yes, on what topics? 3. What does your expectancy come out to be ?
AMEX:SPYEducation
by dravya
Educational Series - Part 1NOTE : this post is intended for novice or intermediate traders, professional traders can skip it or read it to refresh what they already know. For the benefit of other traders, I am starting an educational series where i will be covering lots of topics related to trading which everyone should abide by. It will be in simple language and easy explanation so that everyone can understand. There will be further detailed explanation of nuances if required by the members. So, starting with the first post, BASICS OF TRADING | PART - 1 Technical analysis is a part of trading. It doesn't make money in itself, but how you actually use that analysis and then trade, is what makes money. Many traders believe the myth of timing, and hope that one day they will be perfect in analysis and start making money. But trading is not hope, it's math. We come here, to earn money, and how we do that consistently ? By using math. Let me explain you how. No matter what indicator you choose, what timeframe you trade in, you trade options, futures or commodities ; basically, anything you do in trading, you should remember these 3 things which will help you be profitable in the long run. ---------- 1. Risk Reward Ratio : How much are you risking to get estimated reward ? Are you risking 5 Rupees to gain 15 Rupees ? Then your ratio would be 3:1 . ( Remember this is a R multiple and not rupees So, a 3:1 ratio can be any of these, risking 10 to get 30 risking 100 to get 300 risking 500 to get 1500 ) Easy ? Just calculate how much you want to risk for every reward you hope to get. Be it, 2:1 3:1 5:1 doesn't matter, according to your trading style, determine this. ---------- 2. Winrate : So, once you have decided, how are you going to trade, and fixed your risk reward ratio, then you take only those trades which fit the Risk Reward Ratio criteria. Then, do, at least 25-30 trades, on paper or for real, as suitable. Analyze your results. What percentage of the trades were winners and hit target ? and what percentage of the trades were losers and hit stoploss ? Assuming you followed the risk reward ratio criteria properly, let's say, you find out that, 18 out of 30 trades , you achieved your target ; and , 12 out of 30 trades, you hit your stop loss. This, gives us a 60% of winrate. (18/30) * 100 , that is, ( no. of winners/ total no. of trades) * 100 Once you have got the results of this, we move on to the third step. ---------- Continued on Part 2 . There's a limit on description length. I''ll link it below. Thanks.
AMEX:SPYEducation
by dravya
10 Rules of Successful Trading10 Rules of Successful Trading I personally feel these are the 10 most important rules to follow, especially as a beginner in order to become a consistently profitable trader. You can refer back to these rules whenever you feel lost or confused about what’s going wrong with your trading. 1. Stick to one strategy, and master it. 2. Plan your trade, trade your plan. 3. Never trade without stops and limits. 4. Record, journal and review your trades. 5. Find a mentor. 6. Don't let your emotions dictate your trading. 7. Never risk more than 1-2% of your account. 8. Accept that losses will occur. 9. Don't focus on the money, focus on the trade. 10. Be patient, be consistent, be disciplined. Here's to your success!!!
Education
by LewisGlasgow
10
Why do you trade? Trading Goals and motivations (trade plan)Why do you trade? Consider writing down your personal trading goals. The following are my personal Trading Goals & Motivations (taken from my trade plan). Goals - Consistency 1. Focus on the process and let the results happen 2. Think in probabilities and whether I followed my plan. (Not right or wrong) 3. Master the ability to sit on my hands 4. Demand constant improvement 5. Follow the rules of my trade plan, ALWAYS. 6. Master the mental game Goals - Financial 1. Fund and trade full account 2. Replicate my current income through trading (short term plan) 3. Once (1) is accomplished, maintain and build wealth (long term plan) 4. Have the freedom to quit my job if I so choose Motivations 1. BE SUCCESSFUL = Achieve repeatable, consistent trading, reach goals, 2. Live the life I want. Flexibility, lifestyle, comfort, schedule, travel 3. Enjoy the journey 4. Continue to learn and get education
FX:USDOLLAREducation
by brettschoenfelder
How to Trade the Head and Shoulders PatternHow to Trade the Head and Shoulders Pattern Hello traders, following up from my previous educational post I received several requests via private message for my take on the Head and Shoulders pattern. Featured on the chart is an illustration of a complete Head and Shoulders pattern including the rules I personally use to trade it. This is an easily identifiable pattern which can be traded across various timeframes which means it can be used by day traders, swing traders or even position traders. Why the Head and Shoulders pattern? It has an excellent risk:reward Appears on all timeframes and markets Easy to remember and find It has a precise entry, stop loss and take profit This formation is mainly seen at market tops. It is rarely perfect in appearance and you may need a good eye to spot one (check my head and shoulder trading ideas for an example). You can draw this pattern by using the TradingView tool found on the chart section named "Head & Shoulders" or by using trendlines. From personal experience the best performing Head and Shoulders pattern will have a right shoulder that is a 0.618 retracement of the head. The correct way to trade this pattern is to wait until the entire pattern has formed, then once price closes below the neckline... You can enter your position :) To round off this post I truly hope this explained how to trade the Head and Shoulders pattern so you can use this for your own trading. I am available via private message for any questions you may have.
Education
by LewisGlasgow
3
The 14 Stages of Investor Emotions"Master your emotions and you'll master the market" Hello traders, after receiving a lot of positive feedback from my TradingView educational posts I thought today I would break down a subject on trading psychology with the 14 stages of investor emotions. Learning how market cycles operate can be extremely beneficial to your trading, understanding the true influence of fear and greed. But... Controlling your emotions within the market is your main 'personal' objective, becoming an emotionless trader. It's what we're all told from day one right? 90% of trading is purely psychology. It is the main reason why so many traders fail as they let their trading become over-ruled by their emotions, thus making irrational decisions. Many traders will never overcome their inherent emotional biases, therefor you should seek to understand the range of emotions we may experience as investors and how it affects our interactions within the market. 1. Optimism: A positive outlook encourages us about the future, leading us to buy assets. 2. Excitement: Having seen some of our initial ideas work, we begin considering what our market success could allow us to accomplish. 3. Thrill: At this point we investors cannot believe our success and begin to comment on how smart we are. 4. Euphoria: This marks the point of maximum financial risk. Having seen every decision result in quick, easy profits, we begin to ignore risk and expect every trade to become profitable. 5. Anxiety: For the first time the market moves against us. Having never stared at unrealised losses, we tell ourselves we are long-term investors and that all our ideas will eventually work. 6. Denial: When markets have not rebounded, yet we do not know how to respond, we begin denying that we made poor choices. Our "long-term" view now shortens to a near-term hope of an improvement. 7. Fear: The market realities become confusing. We believe our positions in the market will never move in our favour. 8. Desperation: Not knowing how to act, we grasp at any idea that will allow us to get back to breakeven. 9. Panic: Having exhausted all ideas, we are at a loss for what to do next. 10. Capitulation: Deciding our assets will never increase again, we close all of our positions to avoid any future losses. 11. Despondency: After exiting the markets we do not want to trade ever again. This often marks the moment of greatest financial opportunity. 12. Depression: Not knowing how we could be so foolish, we are left trying to understand our actions. 13. Hope: Eventually we return to the realisation that markets move in cycles, and we begin looking for our next opportunity. 14. Relief: Having bought an asset that turned profitable, we renew our faith that there is a future in investing. To round off this post I truly hope this provided a more in-depth insight to the emotions which can occur during trading. I am available via private message for any questions you may have.
Education
by LewisGlasgow
33
Sell GBPJPY (educational)Sell GBPJPY (educational) "kalbotical retracement confluence 1" 1. Up Trend line broken 2. down Trend line formed 3. second leg has a strongest momentum so possible third leg for some kind of 1-2-3-4-5 structure ) You can catch momentu e.g with Squeeze Momentum Indicator 4. Look left for S/R zone 5 perfect Fib level - .618 6. Kalbot RSI shows the fastRSI line in the overbought area, so there is a possible end of retracement 7. Top predictor (or your mentor) loves this structure too 8. Plan your trade trade with one of possible strategies . e.g countertrendline break ( 9 ) strategy StopLoss 30 pips above U-turn Take profit :- 100 pips (3:1 trade) :- or -0.25 Fibs extension (10) :- or Look left for S/R level (11) 12 trade your plan
Education
by quql
1
How To: Trade Support & Resistance Like the ProfessionalsHello traders. It is a statistical fact that upwards of 90% of retail traders lose money in the Forex market. There are many reasons for this, but perhaps the most important reason is entry. Retail traders often get terrible entries. Even if they are right, their entry may be so poor that their opportunity for profit is not enough to make them consistently profitable. If 90% of retail traders are losing, then that must mean 90% of institutions are profiting. Why is this? What makes institutional traders better than retail traders? Well the main reason why institutional traders are better is because they have access to research that retail traders simply don't have access to. The institutions that employ these traders also employ teams of analysts whose sole responsibility is to analyze the market to ensure the profitability of the institution's traders. However, another very important aspect of their success is that they do NOT wait for confirmation, trend line breaks, patterns, and signals from indicators when trying to enter the market. Institutional traders look for specific prices to buy and sell at and they place their orders at those levels. In a trending market for example, such as this USDJPY over the last month, institutional traders will be looking to buy dips. They won't be waiting for price to form a low and then enter the market because that would be chasing price... that would be retail. Institutions let the market come to them, they find specific prices that reflect good value for buying given the market condition. You can see on the chart all the points at which major higher lows formed throughout this uptrend. As you can also see those lows in just about every instance match up perfectly with the previously broken high. That is no coincidence. For a market to form a major swing high in an uptrend, there must be a lot of money selling the market at that price to push it lower. Only institutions have enough buying/selling power to move price and form such a top so if a high is formed it is because it was at a price level where institutions were previously selling. If price then breaks out to the upside and forms new highs, institutional buyers will then look to buy that same price that they previously sold at. It seems very basic... and that is because it is. Institutional traders only look at price action. Retail traders are the only traders who complicate things by using patterns and indicators and that is precisely why so many of them fail. Keep your charts simple... don't wait for confirmation or signals... let price come to you. Think like an institutional trader now like a retail trader!
Education
by UnknownUnicorn261897
22
SOME WORDS FOR NEW TRADERS:SOME WORDS FOR NEW TRADERS: 1. Learn from the Ideas in tradingview, pay attention to trading logic (why did this author want to long/short? ) 2. if you can not understand the idea, or u disagree the idea, then dun trade it. 3. if you want to trade based the author's idea, make sure u make a very detail trading plan for yourself. the entry, the stop loss, the profit taking level. 4. per trade pls dun risk more than 2% of ur account balance. i.e. u have 10k account, each trade's max loss should be 200. then u use this formular. lot size = 200 / (( Entry - stoploss)*pip value) , for example, entry - stoploss is 10 pips, per pips value is 10 usd. so 200/ (10*10)= 2 lot. 5. dun trade without a plan. 6. dun trade too many pairs at same time. 3 will be enough. 7. check economy calander 8. dun be greedy so that u always buying high. 9. dun be panic so that u sell low. 10. learn some trading skills and dun treat trading like a mouse-clicking game, one click u buy ,one click u sell, u really think trading is that simple? 11. prepare a trading log for yourself, record down ur thouhts and ur progress every day. 12. focus on doing right thing, not focus on making money. 13. reward/risk ratio should be at least more than 2:1 14. stay calm, dun be emotional. 15. plan your trade and trade your plan. GOOD LUCK, HAPPY TRADING. JACK ZHANG
FX:SPX500Education
by tntsunrise
75
Support & Resistance for Beginners Support and resistance acts as a barrier from preventing the price of an asset from getting pushed in a certain direction. It is one of the more difficult concepts within Technical Analysis, there are various ways to identify these price levels, and even after identified, there are plenty of ways of integrating and trading with them. Today I'm going to simplify it for all of the beginners on the platform (please remember to read the note provided). What is support? Support is the price level at which buying is thought to be strong enough to prevent the price from declining further. What is resistance? Resistance is the price level at which selling is thought to be strong enough to prevent the price from rising further. The most common way to trade it is breakouts, this is when you buy or sell whenever price passes through a support or resistance level. As you may know support and resistance levels won't hold forever even though they can hold for a long time but the reality is... Eventually they will break and as a result of a breakout the moves can be really powerful. However there are some implications with this, many traders get in too quick. You may be thinking what should I be waiting for? Validation. As a key pointer wait until the candlestick has closed above resistance or below support until entering the trade, this way it will validate the price move up or down.
TVC:USOILEducation
by LewisGlasgow
9
Learn how to do a trend continuation trade, with Benny Manieri!Hello again friends, Deciding what kind of trader you want to be is important, so you're not bouncing all over the place. Having said that, learning different ways to trade can add an important weapon in your arsenal against the markets. I'm a counter trend trader at my core, but my trading plan has a provision when the maximum profit vs risk presents itself in the form of a trend continuation trade, a specific filter allows me to attack the market in this fashion. What this may look like in your trading plan may be different. Every trading plan is personal. Personal as the Preparation H on my fingertips now sticking the keyboard as I type. Here, we see that NZDUSD has been in a well-established downtrend on the hourly, my trading time frame. I bounced out to a four hour, my higher time frame, and drew in some thin red horizontal support lines. These are places that price has touched at least 3 times on that higher time frame. We see that we are sitting on a spongy area of support at this time, and it will be important to see how the market behaves heading into the Sunday open. Unfortunately around that time, I will be too intoxicated after Sunday afternoon football to pay attention to this, but have at it guys. We will look for a retracement from current price action, up into the .382 at least for us to begin to be interested. We see a fib confluence area consisting of fibs from the current and last swings lining up with structure. (Pink zone) Nice nice. One price action does something interesting up there, such as RSI overbought with a lower low lower close candle, kangaroo tail, something to indicate it will reverse, a market buy with two contracts is probable. Stops go at least 1 ATR above the most recent swing high. Target one is back down at previous structure. Once it's hit, stops on the second contract are rolled to break even. The second target is at the 1.27 extension, if you've got the balls to hang onto it. Benny Manieri
Education
by BennyManieri
Learn the true rules of cypher.Cypher advanced formation is the most accurate formation among all advanced formations. It is about 70% accurate if identified correctly. The ONLY correct way of identification is as follows: 1. B-point must touch 0.382XA but should never close beyond 0.618XA 2. C-point must touch 1.272XA but should never close beyond 1.414XA 3. D-point is 0.786XC and it must be beyond B-point. As you see frome the rules above the are no max limitations for B and C candle wicks. Whatever ratio will be correct if rule #3 isn't broken. Do not trust these types of explanations: www.sr-analyst.com Or this: forextraininggroup.com Don't know why do people believe this kind of stuff and don't even make an effort to contact the creators of cypher - Tradeempowered guys. //|+--------------------------------------------------------------------------------------------------------------+ //|This pattern was found with PatternSearch software //| you can watch the sample video here: www.youtube.com //|+--------------------------------------------------------------------------------------------------------------+ Best regards, Alexander Nikitin. A professional trader, programmer and a trading coach.
Education
by Alexander_Nikitin
8
Don't Be the Kid at Candy Shop [Educational Post]Hi Friends, I have left the above Nifty chart without proper description on purpose. Just take a look at the chart, if you can understand why those lines are drawn, its fine. If you don't then also its perfectly fine. But whats not fine was,taking trade decisions without knowing what those lines where.Do you think complex systems are better than simple trading systems ? That is a myth that only complex trading systems make Money, No Not at all. Simpler the system, the easier it becomes to follow the plan with discipline. Regarding above chart its just couple of Bull's (B) & Bears (B) Elliot Waves combined with Trendlines, there is nothing much and we use it for taking a trade decision, the area within curve mentions the Island reversal pattern. So its totally upto us to decide which B will win and determines the direction of Nifty. But I believe, both B will be taking rest till the Fed meet gets over (Sep 20&21), for us it will be by Thursday (Sep22), till then Nifty may range within support / resistance without proper direction and having some wild swings signalling false breakouts. Enough of explaining the above scenario I believe, bcos I planned this post to be more than normal analysis... There are many authors in tradingview, using many strategies, so if you get confused or don't get the reason why the trade was taken in particular direction feel free to ask the authors of the post, Why & How ? Unless, you ask questions n learn, you can't learn completely, thats why comment sections are for, to discuss your views/opinions even if you are completely newbie trader. No one will make fun of you, if you feel that your question is simple or silly, Never mind just ask Me, I will clarify your doubts, I assure. See, I don't gain anything from this, its all for your benefit n to protect your hard earned Money. Kid at the Candy Shop & Trader without Plan : Consider, you are telling a kid that you will buy whatever candy he/she wants , they may tell some candy name. Now, take the same kid to biggest candy shop which is filled with tempting and mouth watering cakes, candies and ice-creams and ask what the kid wants ? We assured we will buy whatever the kid wants, Now the Kid will get confused and will be spoilt for choice about what to choose and ends up buying most of the candies, cakes n icecream's which affects the kid's health directly {cold or fever}. In the same way, when we begin to trade, we either have one aim I need to live little better or make some small amount of Money. But after entering the market we will be spoilt for choices available at our discretion to trade from Stocks, Futures, Options,commodity,currency, Intra, Scalp,Positional and like the kid mentioned above, we trade everything comes our way from pennystocks to Forex, Suzlon to LT, SBI to Banknifty,without any second thoughts imagining that you can make money, but end up losing your capital. If you do like that Kid @ candy shop, You will go Broke. That kid spoiled his health and you will spoil your Wealth. Yes, its harsh, but truth to be told friend, Never Be that Kid at Candy Shop !
NSE:NIFTYEducation
by InsiderB
22
Bullish and Bearish Gartley PatternFew Advice that how can you be Good Forex Trader. 1 > Making pips no big issue things is that how you manage it. 2 > Every day is not TP days so be Ready for SL too. 3> Trade for Leave not Leave for Trade/ 4> No one can be Billionaire in a night 5> Never Greed 6> Never be over confident on your Trade. 7> Always use SL 8> If in any trade if get 50+ PIPS book it otherwise must move sl at cost 9> Try to learn as Forex Trading must b like Business not like Gambling 10> During big Event try to stay away from market for few moments and if trade must use Tight Sl
TVC:DXYEducation
by Salmanmemon786