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How to use EMA's as a beginnerIf you are getting started in trading, identifying a trend may not be the easiest thing to do. So here we can see a little example of how using EMA's such as the 20 and the 50 can help. By placing your EMA's on the chart, you can use them on any TF, however just like every other indicator, the higher the TF the more value it holds. EMA's can help us identify trends and we can spot what is known as dynamic support and resistance, where just like traditional support and resistance, the moving averages can now act as areas where the price can bounce or reject from as its trending. The further our EMAS move apart, the stronger the momentum is getting for that trend. When the EMAS are moving very closely together it can help us to identify a ranging or sideways market that is not trending. A crossover can help us to identify the beginning of a trend that is about to start. Always remember, these indicators should be used as confluences, and not to be relied on solely.
Education
by opes_trading_group
1
Criteria that need to be met before entering a tradeHey, wizards! Happy Wednesday and welcome on another Educational Post for the week. Today, we are gonna be talking about trade entry criteria and checklist. In other words, what we should look for before opening a position. First and foremost, we should analyse multiple timeframes and identify the direction of a specific market. As identified on the table, different types of traders examine different timeframes. The most common timeframes used by scalpers are M15, M5 and M1. H1 and H30 are popular among intraday type of investors, D1 and H4/H3 are commonly used by swing traders. After analysing different timeframes and getting the overall picture of a chart, we start identifying various key zones. This could be support and resistance areas, supply and demand zones, Fibonacci retracement levels, descending/ascending trendlines and so forth. After having identified crucial key levels, we start looking for more confirmations to backup our bias. Candlestick patterns (doji, hammer, engulfing), Top/Bottom/H&S figures, Indicators (EMA, RSI, MACD etc.) can be utilised as valid instruments to confirm our ideas. All in all, going through the steps identified above are important before opening a transaction. In addition, remaining patient, keeping it simple, and following risk-to-reward principles are as equally important.
BITSTAMP:BTCUSDEducation
by Investroy
38
Rules By Warren Buffett (Educational)Hello everybody, today, we are going to talk about Warren Buffett and his rules and advice. Who is Warren Buffett? In an abbreviation, he is an american businessman and investor with an property of over 100 billion dollars. He is an old-school, but in some way, his rules are really impressive and are working. He also wrote an preface for the best book ever written on investing, The Intelligent Investor by Benjamin Graham. 1. Reinvest Your Profits When you first make money, you may be tempted to spend it. Don’t. Instead, reinvest the profits. 2. Be Willing to Be Different Don’t base your decisions upon what everyone is saying or doing. Have your own reason to buy the stock. 3. Limit What You Borrow Buffett has never borrowed a significant amount — not to invest, not for a mortgage. In other words, if you can´t buy it twice, you can´t afford it. 4. Be Persistent A young boy who sold Coca-Cola for a nickel ended up being a majority shareholder of Coca-Cola. This transition does require persistence. Warren is an Realistic Optimist. He believed they will succeed but with planning, effort, and persistence even when times are tough. You don´t have to make deals every day, just watch markets and paper trade. 5. Know When to Quit Once, when Buffett was a teen, he went to the racetrack. He bet on a race and lost. To recoup his funds, he bet on another race. He lost again, leaving him with close to nothing. Buffett never repeated that mistake. 6. Know What Success Really Means Despite his wealth, Buffett does not measure success by dollars. In 2006, he pledged to give away almost his entire fortune to charities. 7. Stay In Your Circle Of Competence Imagine Circle with 3 layers. In the smallest layer, inside the circle, are things that you really know. In middle of circle are things that you think you know, but you don´t. And in an outer layer, the biggest one, are things that you don´t know. Warren recommends to stay in the smallest layer and just buy what you really understand. Otherwise it doesn´t mean that you have to be closed to every opportunities, but first of all, learn something about it. And this leads us into another topic: 8. Always Learn This is really important to understand, because you have to learn new things, that´s no rule, it´s an habit that you need to make. Learn about market every day, read articles, books, papertrade, watch youtube. In these days is super easy to learn something, all you need to have is good wifi connection and phone or notebook. Warren reads up to 500 pages every day. Try to beat him :) (good luck) 9. Two Legendary Rules These 2 rules are good to know, it seems really clear, but someone had to tell you: 1. Never Lose Money 2. Never Forget Rule Number One And that´s serious guys! Never lose money, that´s not your style. 10. Diversify When you are buying penny stocks, you have to buy one large-cap stock, because penny stocks are volatile and can drop to 0. It can make you big profits or big losses. With a large-cap stock, you will protect your portfolio from total crash, because large-cap stocks are not as volatile and as risky as penny stocks. You should diversify in sectors too. If in your portfolio are only oil companies and price of oil will go rapidly down, well, good luck. When you have money in oil companies, you should buy some stock from another sector, for example real estate or healthcare. Quotes By Warren Buffett „Cash was never a good investment." „I´d rather buy a wonderful business at a fair price, than a fair business with a wonderful price." „Big oppportunities in life have to be seen." „No matter how great the talent or efforts, some things just take time. You can´t produce baby in one month by getting nice women pregnant." End So, seems like we are at the end. Thanks for your effort to read it all, because my view is that it is really educational and you should know it. If you agree with me and Warren Buffett, please make sure you liked and i´ll see you again at another post. Have a nice day.
SP:SPXEducation
by TommyTK247
2
Trade like a casino! 🎰🎲💵Yep you heard me right you need trade like a casino 🎰 Key bit here is trade like the casino operates their business model. Don't trade like the clients that frequent the casinos. Why should you trade like a casino? Profitable traders understand how casinos are successful. Casinos are profitable and make money because they have an edge which they let play out. They know probability is in their favour. How many times have we all been at a roulette table thinking we have a 50% chance of winning betting on red or black. We all seem to forget about that green zero on the table and here in lies the casinos edge. With having an edge they let play out it's impossible for them not to make money. The casino is comfortable with every outcome on the bets placed knowing the edge will play out. Losses are seen as a cost of business, risk is controlled and emotions to are in check. This is why the house always wins! 🎰🤑 If you as a trader apply the same logic's to your trading strategies the end results will be the same as the casino. If you choose to trade like one of the clients in the casino with no fixed rules you essentially are gambling with you trading. Subjectivity and emotions will come in to play. Random winning and losing runs will occur which will impact trading psychology. This way of trading will only end in one way and that's by giving everything to the house or in this case your broker! Development of a strategies with proven mathematical edges ensures you will become the house 🏦💰 Once an edge is established trust your strategy and let that edge play out. ----------------------------------------- Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. Thank you. Darren
Education
by pow_removetheguesswork
Stop focusing on the uncontrollable 🙌We have all been guilty of this at some point as traders. The only thing that matters to us is the returns or the potential returns 🤑 Our only focus is those returns which we have no control over 🤦‍♂️ When returns become the only focus we fail to focus on other elements we do control that will get those much wanted gains. Once upon a time I focused on a target each day then each week and month as my only focus. Sometimes the targets were met but most the time wildly missed and I spent all my time chasing money back. Once I started focusing my efforts on the four elements posted in this idea I can control the returns started to come naturally. Every trade idea I post does have the trade history attached for transparency which includes returns. However these returns come via focusing my risk, costs, time and emotions all correctly. Risk is controlled to sensible levels capital. Time is managed correctly as automation and building proven strategies has freed me up from excessive chart time. Costs are controlled as I'm not re-depositing to my account all the time. Above all else my emotions are in check due to working to proven plans along with a systematic/rules based approach negating the need for stressful decision making. Getting those four control elements dialled in to my trading helped the all important returns to flourish. Focus on the elements you can control and not the ones you can't and trading will get a lot more simpler. Thanks for taking the time to read my post 👍 Darren.
BITTREX:DOGEUSDEducation
by pow_removetheguesswork
17
How A Crazy Chart Can Make You Lose Thousands Of Dollars!"Crazy Chart" is the definition for putting so many indicators on your chart. it is one of the big reasons to have bad trades that will hit your stop loss easily. Who promotes those indicators says it helps you indicates the next move for the price, while the real truth about indicators that it follows the price only. Also It completely distracts you from seeing the perfect price action for entering and exiting any trades. The best advice for setting up your chart : "keep it as simple as possible" the more simple the chart the clearer vision you will have while chasing the price. Here is some rules you need to follow to be profitable: 1- use indicators for analyzing the history of the price. 2- don't depend on indicators to show you an entry for a trade. 3- use price action and candlestick formations to enter and exit any trade. 4- work with indicators that shows you the support and resistance area of the price. Lastly Know That ( there is no indicator that can predict the price next move ) if that indicator exists it will worth THOUSANDS of dollars and will not be available for free.
Education
by FX_Elite_Club