Educationalposts
The game of probabilities (%)In this article we will explain some fundamental truths about trading that any beginner should know in order to start being successful:
1. You don't need to know what is going to happen next in order to make money.
Because any given set of independent variables that define an edge has a random distribution of wins and losses. In other words, based on your performance, you should know that from 100 trades that you take you should have 65 wins and 35 losses for example. The unknown part is the sequence of that distribution. You can have 10 losses in a row or 20 wins in a row. This fundamental truth makes trading a game of probabilities . When you know and believe that, a win or a loss doesn’t have the same meaning as before.
2. An edge is nothing more than an indication of a higher probability of one thing happening over another.
To achieve consistency, you must agree that trading isn't about wishing, guessing, or collecting information to decide if the next trade will succeed. The only proof you need is that the variables you're using to describe an edge (your system) are present at any given time. You're adding random variables to your trading regime if you are using "other" facts beyond the parameters of your edge to determine whether or not to take the trade. If you are not sure about your edge you won’t feel confident about it and if you don’t feel confident you will experience fear.
3. There is a random distribution between wins and losses for any set of parameters that define your edge.
If you believe that trading is about being right, when you experience a loss, you will blame yourself for that loss when in reality if you respect your system’s parameters you should not take the blame for it. If you blame yourself then on the next opportunity you will be afraid of the outcome. As a result, you'll begin collecting information in support of or against the trade. If your fear of missing out (FOMO) outweighs your fear of losing, you will collect facts for the trade. If your fear of losing (FOL) outweighs your fear of missing out, you will collect knowledge against the trade. You won't be in the best frame of mind to achieve consistent outcomes in this event.
4. Every trade is special and unique.
Even if our minds are perceiving some trades as being the same as others that we have in our memory, every moment in the market is unique. If each moment is unique, there's no way to predict for sure what will happen next based on your logical experience.
Trade with care.
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The power of the Order Block & Bitcoins Inevitable run up The Power of the Order Block.
Please refer to chart for reference.
What is a order block?
A order block will show a big wick up and down, and close as square box.
What does this represent?
These little square boxes represent there was a battle happening in the price action for support and or resistance.
Why is the order block so powerful?
As you can see on the chart I have Highlighted where I have found each order block on the Daily Time frame While providing arrows for when the flip from resistance to support was complete.
As you can see on the chart after bit had a crazy run up it need time to cool off, and as it is in such a strong up trend you should simply be looking to buy the dips at the correct levels.
By understanding what these candle sticks mean you can get a great understanding of where the market is heading.
Once coming down to retest these new order block levels, you can see sometimes an overextension occurs through the support level whilst always maintaining a daily close above.
You can use these order blocks to find great entries in a bull market.
Weekly Break Down - Will Mention Top 10 Best Quality Trade'sGOLDEN ENGINE Weekly Break Down
i will Give Full Analysis / Opportunity's
With Huge Risk : Reward
TUMPS UP PLEASE AND WAIT FOR BEST ENTRY'S
Today Will mention Top 10 Trade's Available
CRYPTO - BTC - The Wyckoff Method #2Wyckoff Method Application:
Hello everyone, I spotted another great application for the Wyckoff Method, this time using Distribution Schematic #2. I caution bulls, as I believe that we are at the end of an exuberance phase and now Reward and Risk have inverted for Longs! I personally think that the price can go sub 10k very quickly, and 20k~ is a likely bottom. Trade with care...
But without further ado, Here we go!
5 Step Approach to the Market:
1. Determine the present position and probable future trend of the market.
- Currently swinging bearish, and I believe I have determined the whale operating on this market's trade setup:
2. Select stocks in harmony with the trend.
- Bitcoin is a leading indicator for the crypto market, but it is led by investors' risk appetite. I am bearish on the market, and I believe that US10Y yields will hit 2% again in the nearest future (which inverts the market, and consequently, the crypto market):
- My previous Wyckoff Idea (RIOT) being validated to TP1 gives me further confidence in my logic tree of assumption, and gives me the conviction to add to short positions on the previously powerful bull market:
3. Select stocks with a “cause” that equals or exceeds your minimum objective.
- I have high conviction that (a) BTC has ended its uptrend and is currently in a distribution phase, and (b) I speculate that the macro trend is about to reverse.
- My minimum objective is to use BTC as a leading indicator for crypto related instruments.
DXY:
4. Determine the stocks' readiness to move.
- TA shows that the stock is ready for a move to the downside (I won't be sharing all of my tells).
5. Time your commitment with a turn in the stock market index.
- I have high conviction that the stock market index will also see downside in the nearest future:
Three Wyckoff Laws:
1. The law of supply and demand determines the price direction.
2. The law of cause and effect.
3. The law of effort.
Analyses of Trading Ranges:
- Trading ranges ( TRs ) are places where the previous trend (up or down) has been halted and there is relative equilibrium between supply and demand . Institutions and other large professional interests prepare for their next bull (or bear) campaign as they accumulate (or distribute) shares within the TR .
Wyckoff Schematics:
- A successful Wyckoff analyst must be able to anticipate and correctly judge the direction and magnitude of the move out of a TR . Fortunately, Wyckoff offers time-tested guidelines for identifying and delineating the phases and events within a TR , which, in turn, provide the basis for estimating price targets in the subsequent trend.
Nine Buying/Selling Tests:
FYI - I won't be using a P&F chart.
1. Upside objective accomplished. ✔️
2. Activity bearish ( volume decreases on rallies and increases on reactions). ✔️
3. Preliminary supply, buying climax. ✔️
4. Stock weaker than the market (that is, more responsive than the market on reactions and sluggish on rallies). Stock did not make new high, when BTC made a new ATH! ✔️
5. Upward stride broken (that is, support line or uptrend line penetrated). Currently in the beginning of a descending scallop (scythe) pattern, clearly breaking uptrend line. ✔️
6. Lower highs. ✔️
7. Lower lows. ✔️
8. Crown forming (lateral movement). ✔️
9. Estimated downside profit potential is at least three times the risk for if the initial stop-order were hit. ✔️
“…all the fluctuations in the market and in all the various stocks should be studied as if they were the result of one man’s operations. Let us call him the Composite Man, who, in theory, sits behind the scenes and manipulates the stocks to your disadvantage if you do not understand the game as he plays it; and to your great profit if you do understand it.” (The Richard D. Wyckoff Course in Stock Market Science and Technique, section 9, p. 1-2)
I encourage you to join me in being a lifelong student of the market. If you like this idea, please Like, Follow, and Leave a Comment!
GLHF,
DPT
Disclaimer:
We absolutely do not provide financial advice in any shape or form. We do not recommend investing based on our opinions and strongly cautions that securities trading and investment involves high risk and that you can lose a lot of money. Loss of principal is possible. We do not recommend risking money you cannot afford to lose. We do not guarantee future performance nor accuracy in historical analyses. We are not registered investment advisors. Our ideas, opinions and statements are not a substitute for professional investment advice. We provide ideas containing impersonal market observations and our opinions. Our speculations may be used in preparation to form your own ideas.
Are Trading Courses Worth It?So let’s talk about trading courses. Are these trading courses really worth it?
As you know, there’s definitely no shortage of them out there.
With all these free videos out there, do you really need to buy a trading course, and if so, what is the best trading course?
What Is The “Best” Trading Course?
Let’s actually start with the elephant in the room. Which trading course is the best?
This is one of the questions that always hear, as well as, “Which trading course should I buy?” and “What is the best trading course?”
Here’s something that may surprise you. There is no “best” trading course. You see there’s only “best for you.”
So what does this mean? This is where many traders make a mistake in the beginning. You need to know what you want from a course before you buy it.
So what do you want from a course? You probably want to make a lot of money, and that’s cool, but how exactly do you want to do this?
Criteria To Consider
Let’s go over some criteria. What do you want to trade? I mean, do you want to trade stocks, or do you want to trade options?
Maybe you don’t care and you just want to trade whatever makes the most money, and that’s cool, we can talk about this.
Do you want to day trade or do you want to swing trade? What’s the difference? When day trading, you need to be able to spend time in front of the computer.
You might not be in the position right now to be able to do this, to be in front of the computer. So, therefore, swing trading might be better suited for you.
Another important factor to consider, your account size. Do you have a small or large account?
This is important to consider depending on your goal. Are you trading for growth, meaning that you want to grow your account, or are you trading for income?
So do you want to have a strategy that you can trade on a larger account, like a $200,000-$400,000 account, or are you in the stage in your trading life where you have a rather small account of maybe $5,000 or $10,000 and you want to grow it?
These are important criteria to consider when deciding what the best trading course is for you. There is no one-size-fits-all trading course.
I mean, I would love to tell you, “you know what? I have the perfect trading course for you.” This actually might be true depending on your criteria. It’s really super important that you understand what to look for when you look for a training course.
Let me give you just a few more criteria that I think are universal criteria for any training course.
For example, is the instructor of the training course a real trader? I mean, is he actually putting money on the line?
Is he trading a real account? Or is he just showing you woulda, coulda, shoulda trades and say,
“You know what? Here is how much money you could have made if you bought Tesla last year and now it is up, 500%” or something like this?”
So is the instructor actually placing real trades so that you see he is actually trading for income?
That’s actually a bonus, right? So I would say, are they trading for income? How is the instructor making money?
Because honestly, I think if you can’t make it as a trader, if you cannot trade for income, you have no business teaching others.
In my opinion, one criteria of great trading courses are those that provide coaching and support. Now let’s talk about are trading courses worth it?
Are Trading Courses Worth It?
So let’s talk about this and let’s be honest. There are many free resources available out there.
Especially on YouTube. This is where I think it is very important that you don’t feel pressured to buy anything just yet, especially if you’re a beginner or new to trading.
You want to have a basic understanding first.
You want to learn some basics like how to place an order. You should learn the difference between a call option and a put option?
What is theta in options? So for basic stuff like this, I don’t believe that you need to pay anybody anything.
I mean, on my Youtube channel there are probably more than 700 videos you can watch, all for free.
Here’s the important thing. Trading courses, or no trading courses. Trading courses are not the magic bullet that will solve all your problems, and here’s why.
You see, trading is a skill. Think about it, how do you acquire a skill? Do you acquire skills from just reading a book or watching a video? No, you actually have to do it.
If I wanted to learn how to paint, is it enough if I just read a book on how to paint to become a great painter?
No, I have to try it. If you want to learn how to play golf should you just get a book that tells you how to play golf, and you read the book and now you can magically play golf and participate in tournaments?
No. Same in trading, right?
Trading is a skill like everything else, and so I hate to break it to you, but there are no shortcuts to success.
You have to put in the work. It not what you want to hear, but if you were hoping that I give you the magic course that automatically makes your money hand over fist, honestly it doesn’t exist.
A trading course teaches you the basics and it teaches you some tips, but you have to learn how to trade for yourself.
How do you do this? The best way to do this is on a simulator. I want to give you a very specific example from my personal life right now.
My daughter is 15, her name is Vivian, and Vivian has a learner’s permit. She would like to get to her driver’s license once she’s 16.
Now, there is the possibility that parents, here in Texas at least, can teach their kids how to drive.
So I am Vivian’s instructor, and so I am sitting next to her in the car, but she has to drive. What we are doing right now, we are putting in 50 hours of driving.
Vivian has a little spreadsheet on the back of her door to her room where she’s marking off every time that we are driving for an hour.
I wish that this would exist for traders, that they have to put in at least 50 hours on a simulator with an experienced instructor before they trade live, but unfortunately, this is not how it works.
We do 50 hours of driving, and out of these, we have our goals.
For example, we will do 10 hours of night driving, because driving at night, as you can imagine, is different than driving throughout the day.
We will also do 10 hours of interstate driving. If you’re on the interstate you need different skills because now suddenly everything is much faster.
This is how we have broken it down into different skills that she needs to acquire.
So are trading courses worth it? To recap what I mentioned earlier, I believe that trading courses are worth it, and here’s why, with a few “IF’s.”
I believe a trading course is worth it IF the instructor is an experienced trader. Think about it, I mean, in order to be able to teach my daughter Vivian how to drive, I need to be an experienced driver.
I need to have a driver’s license. I need to have a spotless record otherwise, I wouldn’t be allowed to teach her, right?
If you want to learn golf, wouldn’t you hire an experienced golfer instead of just asking, your neighbor? I believe this is important because after all, we want to make money with trading.
Now, the other important thing is, trading courses are worth it if the instructor can give you shortcuts.
So what do I mean by this? I mean, you can acquire any skill on your own.
I believe this. I believe that probably you could learn how to play golf if you read a book, watch a few videos, and then just put a lot of time and effort in there, but what do I mean by shortcuts?
Shortcuts are there to save you time and money, especially when trading, right? I mean, if the trading course, and if the instructor can help you to avoid a few losing trades.
Losing trades are easily a few hundred dollars, sometimes a few thousand dollars. However, if you could trade losing $1,000 versus investing a few hundred dollars in of course would you do this?
Or if you could avoid losing $20,000, would you invest $2,000 in a course? Probably, right?
I also think that this is super important, especially for trading, but I believe trading courses are worth it if there are coaching and support involved, and here is what I mean by this. Most of you already know I am offering a trading tool, it’s the PowerX Optimizer.
Some of you have seen me using it on my “Coffee With Markus” Live streams on my Youtube channel, and I use it every day in my trading.
But here’s the deal. A tool is just helping you a little bit, right? I believe that this is a bonus. So a trading course is super helpful if there are tools involved.
Back to the golfing example, if you want to learn how to play golf and you get lessons from a pro let’s say, he says,
“Oh, yeah, and by the way, before you diddle around and get the wrong clubs, I actually have the perfect clubs for you.”
I mean, wouldn’t that be much easier?
So this is where the tool that I personally use and that is available to you is the PowerX Optimizer, and I love it.
We are coming out with a version 2.0 soon.
So I think training is very important. So this is where, for example, a training course is helpful if it gives you the important things about getting started, but then also of how exactly do you trade stocks, and how exactly do you trade options.
If we are looking at trading stocks, you need to know what are the different order types, how do you place a stock to the long? How to short?
How to set profit targets and stop losses, right? So this is one of the things where it’s really important that a trading course shows you how to do this, but that’s what I mentioned earlier.
I think the coaching and support here are super important, right? Because this is where you need ongoing handholding. For me, this makes a lot of sense.
Summary
So are trading courses worth it? Which trading course is the best? It really depends on what do you need.
I know that some of you have wasted a lot of time and money on various training courses just to find out that it is not for you.
This is why I say before you buy a course, okay, know what your goals are. Know what you want from a course.
I think that is super important. Know exactly what do you need help with. Then you choose the right one because again, there’s no one size fits all.
Trading is a skill, you have to put in the work. I wish I could tell you,
“Oh, you know what? All you need to do is invest in the PowerX Optimizer and tomorrow you will be the best trader in the world.”
No, you know that I’m giving you a 90-day money-back guarantee because I believe that it takes maybe a week, two, three, four weeks to really learn how to use this tool, to practice on a simulator, and I don’t want you to feel rushed at all to say,
“Oh, I’m under the clock and I only have 30 days to evaluate this tool and this course,” right?
I mean, take your time. Take 90 days, because most traders fail in the first 90 days and I want to make sure that you are succeeding
PMs - PLATINUM - Fractal ApplicationIntroduction to Fractals:
Although prices may appear to be random, they actually create repeating patterns and trends. One of the most basic repeating patterns is a fractal. Fractals refer to a recurring pattern that occurs amid larger more chaotic price movements.
- Taken from Investopedia
Fundamentals Notes:
- Initially, inverse correlation with stock market, but Platinum reaps the benefits of industrial use in clean energy strategies, we foresee a decline in the stock markets until EOY, and recovering early 2021. PMs' technicals seem to support this sentiment.
- Interestingly, there was a consolidation and accumulation period from 2015-2019, and the automatic rally from the last sell-off in March 2020 was used as a spring to achieve new local highs, but this type of pattern typically results in a decline, once distribution has ended.
- However, we are in a greater trend, and while it seems that we have entered a higher channel, volatile sell-offs can be seen as bearish , and we believe the decline will continue once the short squeezing wash-out is over and retail excess diminishes, and support will be tested before further decision.
I posted a forecast previously, but I liked the Fractal Application, so I decided to make it its own idea. Link:
My Wyckoff Method Application post, which this strategy builds on:
GLHF,
DPT
Disclaimer:
We absolutely do not provide financial advice in any shape or form. We do not recommend investing based on our opinions and strongly cautions that securities trading and investment involves high risk and that you can lose a lot of money. Loss of principal is possible. We do not recommend risking money you cannot afford to lose. We do not guarantee future performance nor accuracy in historical analyses. We are not registered investment advisors. Our ideas, opinions and statements are not a substitute for professional investment advice. We provide ideas containing impersonal market observations and our opinions. Our speculations may be used in preparation to form your own ideas.
$FAMI Gann Wave Farmmi, Inc., together with its subsidiaries, processes and sells agricultural products in China, the United States, Japan, Canada, Europe, Korea, and the Middle East. The company offers shiitake and Mu Er mushrooms; and other edible fungi products, including bamboo fungi, agrocybe aegerila, pleurotus eryngii, grifola frondosa, coprinus comatus, and hericium erinaceus. It also operates Farmmi Jicai, an online store that sells edible fungi products under Forasen and Farmmi Liangpin brands. The company offers its products to restaurants, cafeterias, and local specialty stores, as well as through distributors. Farmmi, Inc. was founded in 2015 and is headquartered in Lishui, China.
$EEENF Supernova!$EEENF 88 Energy- Project Peregrine; consisting of Merlin-1, Harrier-1 & UMIAT Wells
- UMIAT is estimated to have 124 Million Barrels of Oil
- 4 Billion Shares are owned by Nominee Brokers
- Sitting on 30 Billion potential gallons of High Grade Oil
- Near Conoco Phillips Willow Discovery
- An independent geologist said the find could be significant because it would show that an oil bearing regional geologic formation, where discoveries have been made, is larger than thought
The trend is your friend!In this article, we will present some basic information about the bedrock of technical analysis – the trend.
Technical research is founded on one main assumption: market prices move in trends as they are freely traded. Traders and investors hope to buy a security at a low price at the outset of an upward trend, ride the trend, and then sell the security at a better price when the trend stops. While this technique is straightforward, putting it into effect is incredibly difficult.
Trends come in all shapes and sizes, from long-term patterns that last decades to short-term patterns that emerge minute by minute. All trends tend to have the same characteristics. Investors must choose which trend is most important for them based on their investment objectives, personal preference, and the time they are ready to spend watching market prices.
Trends are obvious in hindsight, but ideally, we would like to spot a new trend right at its beginning, buy, spot its end and sell. However this ideal almost never happens, except by luck.
What exactly is a trend?
1. An uptrend or upward trend occurs when prices reach higher highs and higher lows.
2. A downtrend or downward trend is the opposite: when prices reach lower lows and lower highs.
3. A sideways or flat trend occurs when prices trade in a range without significant upward or downward movement.
From the investor/trader’s perspective, a trend is a directional movement of prices that remains in effect long enough to be identified and still be profitable.
The most popular method amongst traders to identify a trend is looking at a graph of prices for extreme points, tops & bottoms and to draw lines between these extreme points. These lines are called trend lines . By drawing lines between tops and bottoms we get a „feeling” of the direction of price movement, rate of change of movement, and also its limits. When those limits are broken, they can warn us that the trend might be changing.
Another method for the study of trends are the moving averages which smooth out and reduce the effect of smaller trends within longer trends.
The number of trend lengths is unlimited. The ability for trends to act similarly over different periods is called fractal nature . When we say that the trends are fractal in nature we mean that in any period we look at we see trends with similar characteristics and patterns as each other. The trend length of interest is determined solely by the trader’s period of interest . This doesn’t mean that different trend lengths should be ignored. Because shorter trends make up longer trends, any analysis of a period must include analysis of longer and shorter trends around it.
Trends are determined by supply and demand.
As in all markets, whether apples, oil or used car components the economic principle of interaction between supply and demand determines prices in trading markets. Each buyer bids for a certain quantity at a certain price and each seller asks for a certain quantity at a certain price. When the buyer and seller agree and transact, they establish a price for that instant in time, whatever the reasons might be for the buyer wanting to buy and the seller wanting to sell.
The technical analyst, therefore, watches the price movement and the rate of change of prices and doesn’t concern himself/herself with the reasons of the transactions because most times they are indeterminable. The number of players and the number of different reasons for their participation in supply and demand is close to infinite. Thus, for the technical analyst, it is futile to analyze the components of supply and demand except through the prices it creates.
Furthermore, when someone invests or trades the price is what determines profit or loss, not corporate earnings or Federal Reserve policy. The bottom line is that the price is what determines success and fortunately, for whatever reason, prices tend to trend. .
Trade with care.
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$SPY will crash soon...PLEASE PLEASE BE MOSTLY CASH!Wells Fargo Executes Four Block Trades Worth $2 Billion
Stocks valued at $2.64 billion changed hands in a flurry of block trades Monday as tumult from the wind-down of Bill Hwang’s Archegos Capital Management extended into a new week.
Five block trades valued at a combined $2.14 billion were executed by Wells Fargo & Co., according to a person familiar with the matter.
US STOCKS-S&P 500 near flat; hedge fund default concerns hit banks
The S&P 500 was nearly flat in Monday afternoon trading, with bank shares falling amid warnings of potential losses from a hedge fund's default on margin calls, while optimism over the economy limited the day's declines.
Nomura and Credit Suisse are facing billions of dollars in losses after a U.S. hedge fund, named by sources as Archegos Capital, defaulted on margin calls, putting investors on edge about who else might have been caught out.
Shares of Morgan Stanley were down 2.5% after the Financial Times reported it had also sold billions of shares, while the banks index shed about 1.9%. "There's still chatter as to whether or not, and which, American banks may be affected.
Wall Street's fear gauge rose.
Declining issues outnumbered advancing ones on the NYSE by a 1.94-to-1 ratio; on Nasdaq, a 3.11-to-1 ratio favored decliners.
The S&P 500 posted 69 new 52-week highs and no new lows; the Nasdaq Composite recorded 81 new highs and 50 new lows.
Everything has peaked...
$SPY will knife drop so fast, no one will have any time to sell...
Ascending Channel, Where would you Enter?Hello traders , don't forget to follow . Here's an educational post about Ascending channel. Remember chartisme only works if it is combined with supply demand and market structure GIVE a like for more content!
Proper Position Sizing (Educational Post)Improper position sizing:
That is the number one killer for most traders; they open a position size much larger than they can handle or much larger than what is appropriate for their account size.
Before continuing make sure to follow this tradingview profile .
A trader’s position size is a very sensitive topic because it should be not too small and not too large; there is a perfect balance between the two that a trader must achieve in order to be able to trade fearlessly. The proper position sizes will allow you as a trader to not only “set”, but to also “forget” and move on with life without being tied to a screen. The most elite traders on the planet allow time, money, and the market to do most of the heavy lifting and they give very little time to sitting on a screen compared to the average retail trader. Any professional trader knows that “less” is “more” in this game, and trading for longer hours does not necessarily equal to “more profits”.
Few traders calculate their exposure, and those who do calculate it typically calculate it wrongly. But from those who do calculate their exposure properly, even fewer traders accept their exposure. the acceptance of your exposure, is an entirely different and separate step, and it is a psychological step. You Must find the balance between
(Review) Definition trend and change of trend ( Trend reversal)(Review) Definition trend and change of trend ( Trend reversal)
EX:
Discussion:
Downtrend - Definition
A downtrend comprises a repeating sequence of:
1) A downward extension
2) A swing low
3) An upward pullback
4) A swing high
A downtrend ends when price breaks the swing high which leads to the lowest swing low of the trend
Uptrend - Definition
An uptrend comprises a repeating sequence of:
1) An upward extension
2) A swing high
3) A downward pullback
4) A swing low
An uptrend ends when price breaks the swing low which leads to the highest swing high of the trend
EX: Prior analysis ( Downtrend)
- Countertrend
- Reversal trend:
- Downtrend forming=> Sell
- Continuous downtrend
Please support the setup with your likes, comments and by following on TradingView.
Thanks
(Review) Definition trend and change of trend ( Trend reversal) (Review) Definition trend and change of trend ( Trend reversal)
EX:
Discussion:
Downtrend - Definition
A downtrend comprises a repeating sequence of:
1) A downward extension
2) A swing low
3) An upward pullback
4) A swing high
A downtrend ends when price breaks the swing high which leads to the lowest swing low of the trend
Uptrend - Definition
An uptrend comprises a repeating sequence of:
1) An upward extension
2) A swing high
3) A downward pullback
4) A swing low
An uptrend ends when price breaks the swing low which leads to the highest swing high of the trend
EX: Prior analysis ( Downtrend)
- Countertrend
- Reversal trend:
- Downtrend forming=> Sell
- Continuous downtrend
Please support the setup with your likes, comments and by following on TradingView.
Thanks
Your trading entry is not everything! Don’t forget:Risk management
Trade management
Position sizing
Mental capital
Context
Exits
The Basic properties of BONDSA bond is a contractual agreement between an issuer and the bondholder. Owning a bond is like enjoying a stream of future cash flows.
There are several important features that every bondholder must know before acquiring them:
• The bond properties – issuer, maturity, principal, coupon rate and frequency, and the currency in which they are denominated. These properties are determinants of the investor’s expected and actual returns.
• The tax and legal framework that applies to the contract between issuer and bondholder
• The contingency provisions that affect the bond’s scheduled cash flows.
In this article, we will focus on the bond properties and go through them one by one.
Issuer
Many entities can issue bonds. Usually, bond issuers are classified into categories based on their characteristics:
1. International organizations: World Bank etc.
2. Sovereign governments: The Unites States of America, The United Kingdom, Japan, Germany, etc.
3. Local governments: states, regions, counties
4. Companies: corporate issuers
5. Specialized legal entities
Bondholders are exposed to credit risk , that is the risk of loss resulting from the issuer failing to pay the interest and/or repayment of principal. The issuer’s creditworthiness is rated by credit rating agencies .
Maturity
The maturity date of a bond refers to the date on which the issuer is obligated to pay the outstanding principal amount . A bond’s term of maturity is the length of time in which the bondholder will receive the interest payments on the principal.
One notable exception is the perpetual bond , which is a fixed income security with no maturity date.
Principal amount
The principal amount of a bond is the amount the issuer agrees to pay the bondholder once the bond reaches maturity. The amount is also referred to as par value or nominal value . Bond prices are traded and quoted as a percentage of the principal amount. For example, if a bond’s par value is $100, a quote of 98 means that the price of the bond is worth $98. If the bond is trading below the par value it is said that it is trading at a discount . If the bond is traded above the par value it is said that it's trading at a premium .
Coupon rate and frequency
The coupon rate of a bond is the interest rate that the issuer agrees to pay each year to the bondholder until it reaches the maturity date. The annual sum paid is called the coupon . For example, a bond with a coupon rate of 3% and a par value of $10000 will pay an annual interest of $300.
A conventional bond pays a fixed income rate. However, there are bonds that pay a floating rate of interest; these bonds are called floating-rate notes . All bonds make periodic coupon payments except for zero-coupon bonds , which trade at a discount of their par value and pay zero annual interest.
Currency denomination
Bonds can be issued in any currency although the largest number of bond issues are made in US dollars or euros. The currency of issue may affect the attractiveness of the bond, that’s why issuers from many countries in the world choose these 2 currencies to attract international investors and offset the disadvantages of their local currencies.
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CHF/JPY ANALYSIS DAILYWelcome to GODAL TRADING analysis .
Todays pair being analysed is CHF/JPY with a potential long set up forming.
ONLY !! if a break-out of the identified bearish/falling wedge and highlighted zone takes place.
The highlighted zone represents most recent resistant level/zone of the falling wedge, once the two is broken. It will then become a support zone. This is where I would wait for price action to test this level as support for potential long entries on lower time frames such as 4Hour.
USD/CAD Oil Correlation *analysis + education Thanks for stopping by to check out this educational post and TA .
I decided to look at the USD CAD on the monthly for a deeper look at where it has been and where it is heading with respect to all the changes globally and the rally in crude oil playing its part in this pair.
The USD has been under some pressure for the past 20 months and here we can see why its relationship with the CAD is rather special and symbolic of a love hate relationship.
Enjoy the chart for the explanation that it offers and although the analysis is very long term it is designed more so to see how things have transpired and where they can lead based on identical fib pulls , curve projection, volume profile .
I hope that the TA speaks for itself and is clear for the reader and you learn something about the Oil relationship with the CAD pair
dont hesitate to ask any questions ..
Thanks for
How to reduce your fear in #crypto trading?1-Don’t go all in
2-Manage your risk
3-Reduce your position size
4-Trade with a strategy that offers an edge
5-Not more than 50% of your wealth in the cryoto market
This is how MARKET MOVESHello Traders and welcome to our channel. If you like this educational content please support it with a like so we can keep posting more content like this. Market Analize Team wish you a successful trading week
Bullish & Bearish Candlestick Strength What exactly is it that causes each uptick or downtick? These are the only two pieces of information that a price chart can express; a down-tick or an up-tick. What causes these tick movements?
If you have been led to believe that the prices move depending on the number of buyers and the number of sellers; if the number of buyers is greater than the number of sellers, prices go up, & if the number of sellers is greater than the number of buyers, prices go down. Then you would be wrong. The number of sellers or buyers is not what moves the price. What if one seller is doing all the selling to thousands of buyers? The price will go down. The answer to our question is that it is the degree of aggression of the buyers or the sellers and the volume of order-flow they submit is what moves the price. If a seller is aggressively executing large amounts of sell-orders at the current market price, the price will tick down. If a buyer is aggressively executing large amounts of buy-orders at the current market price, the price will tick up. The volume of the order-flow being transacted is the key. For every buy-order, there must be a sell-order. When the buyer demand exceeds the available supply of sell-orders, the prices increase. When the seller demand exceeds the available supply of buy orders, the price will drop. This entire process is occurring constantly and the market is always trying to reach an equilibrium where buy-orders and sell-orders are continuously matched up to give us the current market price, for that specific moment.
The number of individual buyers and sellers is not as important as the amount of order-flow volume that each buyer or seller is transacting. The amount of order-flow volume being transacted at any one time and the aggressiveness of the submitted order-flow is essentially what moves the price. The degree of aggressiveness is the degree to which price will move. That is the story behind the up-ticks and down-ticks.
when you see a strong participation you won't see wicks , market makers tend to print engulfing candles. By other side once you start perceiving wicks= rejection. KEEP THIS POST
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BTC Sell Off Here is What Happened and what you can learnHello and Thanks for stopping by, this is my first tutorial post so go easy on me haaaaa
Ok well all is self explanatory really as you can read by the chart .
Lessons that can be learned from this can be repeated over and over again but the truth is we will always see the same scenario playing out over and over again because that is what feeds those who are succesfull at trading .
Simply put what you see on the chart is a example of greed and stupidity, Ok we have seen it all 1000s of times before but someone out there does not want to make the same mistakes again and this post is designed to help you better prepare yourself for this eventuality and give you some positive guidelines to improve as a trader .
1, Do not Long Tops and dont short bottoms . FOMO might work some of the time but most of the time you will regret it
2, Plan the Trade and trade the plan or you will only plan to Fail
3, Patience always pays * wait for the Retrace or the breakout depending on the trade you want to take with a solid plan in mind
4, Always use a SL and know when and where you are wrong. Risk management is so important learning to protect your capital keeps you in Business
5, There is a time and a place for Leverage learn this without going BUST
6, Understand the importance of Position size and use a Position size Calculator if that makes it easier
7, Learn the power of Footprint Charts and how to use that candle Data to your advantage. Seeing Millions at the top or bottom really is a great advantage
8, Take profits on the way up or down at strategic points , Locking in profits guarantees you get paid and you wont get caught out being Greedy
9, The market has no emotions only traders do ! If you are emotional you are probably taking too much risk of your capital...
10, Accept that being wrong in Trading is Normal, provided you calculate every trade you will only lose the minimum and live to trade another day
11, Most of the time There will always be that grab Liquidity move, up or down, remember that ! Rather than placing a SL where its crowded. Don t think Like the Herd
12, Learn why Open Interest is important and how funding impacts you ! This is probably overlooked by many whom trade BTC Perpetuals
I will leave you with this Quote " The Market does not know you exist. You can do nothing to influence it. You can only control your behaviour"
Thankyou for reading my post and I hope it helps somebody .
