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Trade with Confidence: 5 Day Trading Psychology Rules to Embrace Set clear goals and limits: Before you begin trading, it's important to have a clear idea of what you hope to accomplish and how much risk you are willing to take on. This will help you make informed decisions and avoid making impulsive trades based on emotions. Control your emotions: Day trading can be stressful, and it's easy to let emotions like fear or greed influence your decisions. It's important to stay level-headed and stick to your pre-determined trading plan, rather than getting caught up in the heat of the moment. Use stop-loss orders: A stop-loss order is a type of order that closes a trade automatically once it reaches a certain price. This can help you minimize losses if the market moves against you. Diversify your portfolio: Diversification is a risk management strategy that involves spreading your investments across a variety of asset classes. This can help you manage risk and potentially earn higher returns over the long term. Continuously educate yourself: The world of day trading is constantly evolving, so it's important to stay up-to-date on the latest trends and techniques. This can help you make informed decisions and improve your chances of success.
Education
by TradeConf
3
🖐 5 Rules For Successful Trading!Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. Trading is simple, but not easy. Traders have difficulty succeeding simply because they are unable to follow clear rules over extended periods of time. So what are the rules that every trader should follow? 💸 1- Only invest what you Can Afford to Lose. Only invest money you can afford to lose, never ever borrow money or take a loan from the bank to invest. Because if you do, you will get emotional and make irrational mistakes. ⚔️ 2- 1% Risk per Trade. We only risk a small portion of our account per trade. We enter with 1% risk per trade (2% max). We enter with a fixed risk per trade, not with a fixed stop loss in pips, nor with a fixed lot size. Remember: All Trades Have To Have The Same Weight / Effect On Our Account! 📉 3- Three Confluences Trades. (Technical Edge) Trading is nothing but a game probability. Moreover, we consider ourselves risk managers not only traders, as the only thing we have control over is "risk". The market can go anywhere. To be on the winning side, we need to have an edge over the market. One way to put the odds in our favor is by only entering trades when we have at least three confluences/clues, three things telling us to buy or sell lined-up together. One confluence may be random. For example: Only enter when you have a pattern, support, and divergence. And your rules have to be objective following a well-defined / back-tested trading plan. 📕 4- Positive RRR - Risk Reward Ratio. (Risk Management Edge) Our second edge is going to be through risk and money management by entering with a positive risk-reward ratio. That’s exactly why we enter with a ½ RRR (or higher), which means we always target at least double our stop loss. This way even with a 50% win rate, we are still profitable. Remember: It is not about how many trades you win, what matters is how much you win when you are right, and how much you lose when you are wrong. 🧘‍♂️ 5- Emotional stability. In the trading world, emotions are considered the enemy of traders. Knowing how to control emotions while trading can prove to be the difference between success and failure. When getting into a bad trade, the trader who can manage his psychology well will be able to minimize risk, while the trader who is emotional may make the situation worse. Remember: You Are Getting Paid; To Wait! Moreover, if you are not feeling well, don't trade. Remember: You don't have to catch every trade, and you don't have to trade every week. In fact, our 5 rules are all connected in a way or another. If you invest money you can’t afford to lose or enter with 10% risk per trade, chances are that you will get emotional and not follow your trading plan objectively by closing your trades before reaching 2R or even entering trades that are not according to your strategy. In parallel, even if you invest money you can afford to lose and risk 1% per trade, you won’t be consistently profitable if you don’t have a well-defined strategy that gives you an edge over the market technically or through risk management. In brief, stay away from trading if you don’t have these 5 rules. Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
Education
by TheSignalyst
29
HOW TO MANAGE YOUR EMOTIONSHello everyone! One of the most important , and in the same time, one of the hardest aspects of trading is the ability to manage correctly your emotions and leave them aside while trading. So how can we manage our emotions in stressful situations? Here are some tips that every trader should consider when starting trading: 1. DO NOT ACT ON ANGER: every time you feel strong emotions, hold back and revisit your trading plan, is your move aligned with your initial plan or are you acting on irrational emotions? One of the worst things is to take a position based on anger after a loss in order to recover the losses. Take a deep breath and rethink your decision! 2. DO NOT FALL IN LOVE WITH YOUR POSITIONS: we all want to always be right, but sometimes we have to accept a bad position and close it. It is common to fall in love with our positions and hold it out of hope that the market will switch, but involving emotions just blow the account, stick to your plan! 3. ESTABLISH SOME TRADING RULES AND KEEP A TRADING JOURNAL: setting your own rules of trading and risk management is crucial for a profitable account. No matter what you hear from others and how good a position may look, if it is not aligned with your rules, do not take it! Moreover, do not change a strategy after some losses, stick to what you have learnt and planned, keep the information in a trading journal and plan your next moves based on you learnt from it. 4. TAKE A BREAK AFTER 3 LOSSES IN A ROW: it is natural to have a bad day, but when this happen do not become over emotional and over trade, but rather take a break and wait for a new and fresh trading day. Strong emotions will ruin any important decision, no matter the context, so try to avoid them. 5. SET TP AND SL AND TRUST YOUR JUDGEMENT: after establishing your trading plan and risk management plan, in order to stick to your risk to reward strategy, you have to use Take Profit and Stop Loss orders, and trust your judgment and the market. No matter what happens, this helps you have a clear forecast of your account, without blowing it. Also, avoid getting greedy and secure your profits with take profit order. 6. LOWER THE TRADE SIZE: if you feel overwhelmed by the risk on each trade, and out of fear you make irrational decisions, try to lower the trade size to what feels comfortable with you. After doing this, always update your trading strategy! 7. DO NOT GIVE UP! : there is a point when every trader feels like giving up, losing all his faith, but you should understand that this is the normal journey, with ups and downs, and if you do not let yourself intimidated by the downs, the ups are limitless!
OANDA:XAUUSDEducation
by m_maia14
2
TRADING - TRUTH VS LIE 📉📈 A financial background can be useful for understanding how forex and other markets work. However, more beneficial are skills in math, engineering and hard sciences, which better prepare traders for analyzing and acting on economic factors and chart patterns. It doesn’t matter how much awareness you have about financial markets – if you can’t process new data quickly, methodically and in a focused manner, those same markets you thought you knew so well can eat you alive. ANSWER: LIE EXPERT TIP: To prepare for trading, focus on developing analytical skills rather than boning up on financial knowledge. Trading is like running a business. In order to be successful, you need to learn from mistakes and have rules in place to help protect your capital. Like a business, it’s crucial to have appropriate strategies on hand for varying market conditions. Setting up a business is easy, and similarly, trading is easy too. Developing successful strategies and making money? That’s the hard part. ANSWER: TRUTH EXPERT TIP: It will seem easy if your early trades go well, but long-term profitability is a different matter altogether. Make your life easier by researching your trades, using the right position size, setting stops and keeping a handle on your emotions. Can you be successful with a small trading account? It depends on your definition of successful. An account needs to be large enough to accommodate proper risk parameters. But success is relative; a high rate of return is based on percentages and not on monetary amounts. For example, a 20% return is a 20% return regardless of the account size. However, if your 20% return isn’t worth enough in hard cash, it might be hard to incentivize yourself to improve as a trader. ANSWER: IT DEPENDS EXPERT TIP: Your account size will depend on your goals and your prior success. Naturally, experienced traders will have a larger account but to begin with, concentrate on that rate of return percentage. Bragging rights be damned: the number of trades you win is irrelevant. Profitable traders simply make more money than they lose. Say you win five trades and make $5,000, but lose one trade and lose $6,000 – you have won more trades than you have lost but are still down overall. Profitable traders will set rigid risk-reward parameters for a trade – for example they might risk $500 to make $1,000, a risk-reward ratio of 1:2. If a trader makes five trades using this method, loses three of them and wins two of them, the trader is still $500 in profit ($2,000 profit-$1,500 loss). Don’t be afraid of taking a few hits: if your process is sound, one big winning trade can reverse your fortunes. ANSWER: LIE EXPERT TIP: Many successful traders will be losing more trades than they win, but oftentimes it won’t bother them. Focus on getting the right setups rather than worrying about the ones that got away. How much time you spend trading, and monitoring trades, will depend on your trading style. Those employing a scalping strategy, for instance, will make a large number of transactions per day, entering and exiting many positions, and will need to pay close attention to their trades on the shortest timeframes. However, position traders won’t need to spend as much time monitoring, as their transactions may last weeks, months or even longer – meaning long-term analysis will account for short-term fluctuations. ANSWER: IT DEPENDS EXPERT TIP: Ask yourself what type of trader you are. Shorter timeframes will mean monitoring and analyzing constantly – being ‘always on’. If you favor a more relaxed approach you may be suited better for position trading. Some traders advocate a ‘mental stop loss’ when the market gets tough – that is, relying on oneself rather than a computer to set a level at which to exit a losing position. The problem is, a ‘mental stop loss’ is just a number that makes you worried about the money you’re losing. You may fret about the direction of the market - but you won’t necessarily be compelled to exit your trade. A fixed forex stop loss is completely different – if your stop loss price trades you are out of the position, no ifs or buts. Exercising proper money and risk management means setting solid stops. Period. Answer: TRUTH EXPERT TIP: It can be so easy to neglect your stop loss. When a trade is going your way, the dollar signs can blind you - but you should protect yourself against the market turning. Spreads may represent the primary cost of trading, but they aren’t the be-all-end-all when it comes to choosing your market. You may find an asset that has a wide spread but represents a strong opportunity due to its volatility. Similarly, you may find an asset with high liquidity and a tight spread, but that isn’t showing much trading potential. Above all, you should let your trading decisions be governed by setups presented by the market, not the size of the spread. Answer: LIE EXPERT TIP: The spread can represent a significant cost to traders – but don’t let it be the sole factor dictating your choice of asset. The economic analysis key to a fundamental approach helps give traders a broader view of the market. Sound knowledge of the underlying forces of the economy, industries and even individual companies can enable a trader to forecast future prices and developments. This is different to technical analysis, which helps to identify key price levels and historical patterns, and provides conviction for entering/exiting a trade. It’s true to say that expertise in economic analysis is important. However, so too is expertise in the technicals. Many successful traders will look to combine fundamental and technical analysis so as to be in a position to draw on as wide a range of data as possible. Answer: TRUTH EXPERT TIP: It may be worthwhile to devise a strategy accounting for the nuances of both technical and fundamental analysis. News can create big moves in the market, but that doesn’t mean trading the news leads to the biggest opportunities. For a start, the volatility of important news events often makes spreads wider, in turn increasing trading costs and hitting your bottom line. Slippage, or when you get filled at a different price than you intended, can also hit your profitability in volatile markets. On top of these drawbacks, traders could get locked out, making them helpless to correct a trade that moves against them. ANSWER: LIE EXPERT TIP: ‘Trading the news’ can seem like a fashionable thing to do, but market movements can be unpredictable at the time of major releases. It’s often best to steer clear during such high volatility. Excluding emotions from trading is an impossible endeavor. It can lead to more internal conflict than benefits, which is why managing emotions is a better way of looking at it. You have negative emotions like fear and greed that need to be managed without suppressing positive ones like conviction that help drive you towards the best opportunities. Answer: TRUTH EXPERT TIP: Even the most experienced traders feel emotion in the heat of the markets, but how they harness that emotion makes all the difference. Source: DailyFX
OANDA:XAUUSDEducation
by Hsan_BenAhmed
2
Trading Psychology: 4 Dangerous Emotions Traders Must AvoidWhen I was a naive, newbie trader, I didn’t pay much attention to my trading psychology. I was more focused on the technical chart patterns and trade setups. However, I soon found out the hard way that… Ignoring the psychology of trading was destroying my trading results. That’s when I began making a serious effort to master my personal trading psychology. I started reading trading psychology books, and even worked with a personal trading coach. I was definitely on the right path to mastering trading psychology, but wished I would have started learning sooner. That’s why NOW is the perfect time to start getting your trading psychology edge. But why is it important to understand stock market psychology? Understanding stock market psychology paves the way for your long-term trading success. That’s why this exclusive new mini-lesson of top trading psychology tips is just for you. How do you develop trading psychology? Some trading sites advise new stock and crypto traders to gain experience by paper trading with a simulated account. This can be helpful to learn the basics of trading, but it’s a much different ball game when real money is on the line. Your true emotions in trading will only be revealed when risking your own money with actual trades. Therefore, the best way to develop your trading psychology is simply by working your way through hundreds of live trades with real capital. Keep a basic journal and note when you feel the dangerous emotions below start creeping in. This is the only way to truly identify your personal strengths and weaknesses in trading psychology. 4 Most Dangerous Emotions to Avoid: Fear, Greed, Hope, and Regret Investing decisions in any market in the world are driven by 4 powerful emotions of Fear, Greed, Hope, and Regret. Left uncontrolled, these emotions can have a seriously negative impact on your trading account—but only if you let them. Your personal ability to master these key emotions directly determines your long-term trading success. So here’s a quick rundown of how fear, greed, hope, and regret can harm your trading results. Most importantly, I have also included actionable ways to avoid these emotions in your trading. FEAR – The most powerful human emotion that affects your trading Fear is a distressing emotion caused by a feeling of impending danger. This results in a survival response, regardless of whether the threat is real or imagined. Traders consistently report fear as the emotion they struggle with the most. Fear has even caused people to jump off buildings during market panics. FEAR is the reason markets typically fall much faster than they rise. It took the Dow Jones Industrial Average 24 years (1983 until 2007) to rally from 1,000 to 14,200…BUT it only took 2 years (2007-2009) to lose HALF of that multi-decade gain. Why? Uncontrolled fear rapidly leads to panic—which leads to poor decision making in the markets. When traders become driven by panic, they often sell their positions at any price. That’s why stocks frequently cliff dive when group fear starts kicking in. Fear can also rear its ugly head after you experience a string of losing trades. After suffering many losses, fear of “yet another loss” can make it mentally challenging to enter new swing trade setups. When paralyzed by fear, you miss out on profitable trading opportunities. If it’s a quality trade setup, then don’t let fear prevent you from buying (be careful not to confuse this with revenge trading). Remember that each trade you enter is completely independent of the previous trade. Therefore, losing money on a prior trade does not necessarily mean you will lose on the next trade. Fear is not always bad, as it can help keep losses small. For example, fear of a bigger loss can get you out of a bad trade you should no longer be in. If you immediately sell your stock or crypto when it hits your preset stop price, then the fear of a bigger loss protects you from major losses. When there is fear, steer clear! If the market is in a state of panic, don’t fight the downtrend. If you’re in doubt, get out! Don’t try to rationalize or come up with excuses to stay in losing positions beyond their stop prices. HINT: Ignore the news and internet forums to prevent lame rationalizations for staying in losing trades. When there is too much fear in the markets, our flagship swing trade alerts service simply shifts to cash until a new buy signal is received. This prevents fighting strong downtrends in unfavorable conditions. GREED – Too much greed decreases your trading profits Greed is an excessive desire for money and wealth, but is a natural human emotion. A healthy amount of greed can help drive your trading profits, but too much greed will have the opposite effect. How to know when it’s too much greed Greed is when you have already made a large profit on a trade, BUT are still obsessed with how much more you could have made if you stayed in the trade longer. The mistake with this reasoning is that all gains are not real until the position is closed. Until then, a winning trade is only a profit on paper. Greed can also cause traders to make bad trades by ignoring solid risk management rules, which signals a lack of discipline in your trading or investing. To keep greed at bay on a winning trade, sell partial share size to lock in profits, then trail a stop higher on the rest. Proactive trade management like this is why our exclusive Wagner Daily stock picks have been consistently profitable over the past 20 years. HOPE – A fake friend who will take your money (but only if you let it) Hope, a feeling of anticipation and desire for a certain event to happen, may be the most dangerous emotion for traders. If you are an active trader or investor, the feeling of “hope” in your day to day trading activities must be avoided at all costs. Why is hope so dangerous for traders? Hope may prevent you from immediately selling a losing trade that hits its stop price—which is the top rule with most trading strategies. When you blow a stop, you will usually wind up with a much bigger loss than you planned to risk. You may get lucky with a second chance to exit (especially in a forgiving bull market). However, this is definitely not a situation you want to be in. A weak stock typically continues much lower before bouncing, which is why you must always honor your stops. Otherwise, that’s when hope can really sneak up on you! Hope will convince you to just “hang in there a little longer” because: “Big news is coming soon” “This stock will surely rally after their next earnings report” (Insert your favorite bullshit excuse here) Meanwhile, while you’re busy hoping, the price plummets and has a catastrophic effect on your entire trading account. Rest assured, the market will eventually punish you by taking your money when you slip into “hope mode.” But the good news is that YOU alone can easily prevent this scenario from happening. Simply always set protective stops to pre-define your maximum risk per trade. Be rigidly disciplined to follow your trading plan, and hope will never become an issue in your trading. Plan your trades, and trade your plan. REGRET – Remember the next opportunity is always just around the corner Regret is defined as a feeling of sadness or disappointment over something that has happened—especially when it involves a loss or a missed opportunity. It is only natural for a stock trader to regret entering a losing trade or missing out on a winning trade. But to master your trading psychology, do not hyper-focus on losing trades or missed opportunities. If you lose money on a trade, then simply evaluate what went wrong, learn from it, and move on. Don’t waste time regretting your original decision to enter the trade. What’s done is done. Conversely, you may feel regret when you miss an opportunity. This is human nature. However, you must train your mind to simply move on to the next trading opportunity—which is always just around the corner. When you allow this type of regret to control you, it becomes too easy to “chase trades” with risky entry prices. If you chase, your risk/reward ratio of the setup no longer meets the parameters of healthy trade management. Let’s say you plan to buy $DUDE stock at a $60 buy trigger price, with a swing trade target around $70. If you buy it, you plan your initial stop at $55. This gives you a 1:2 risk/reward ratio (risking $5 to gain $10). $DUDE stock rallies, but you miss your original $60 buy and instead chase the price to an entry at $65. If you don’t significantly raise your initial stop, you now have a negative risk-reward (risking $10 to gain $5). In this case, your regret of missing the $60 entry caused you to chase it to $65 (next time, just wait for a pullback). Avoid feelings of regret to ensure the math of trading is always in your favor. We always target a bare minimum risk/reward ratio of 1:2 for swing trades in our stock and crypto swing trade alerts services. Successful traders keep their minds disciplined to avoid remorseful thinking. original source
NASDAQ:QQQEducation
by rp-mtg
STEP 1 to MASTER TRADING: Hindsight trading. Train your eyes.A common mistake that traders make after learning any kind of trading setup is jumping into backtesting using a replay tool, or even live trading. However, if you think about it, trading is very much about pattern recognition. And when you force yourself into live trading without a proper understanding of what your patterns look like, most likely you’ll need much more time to succeed. A different approach and much more effective would be using hindsight, that’s when you see what actually happened. During this process, try to find at least 50 high-quality setups, that represent your trading system. So you actually see everything that happened and find situations, where your edge played out, document it in your journal. That’s great training for your eyes and brain. You don’t need to guess, you will not feel anything, because you already see what happened, you’ll notice that sometimes your edge, your system doesn’t give you entries and price goes without you, sometimes, you’ll see a loser or a breakeven after your entry, start to get used to this, as it’s all part of your system. After that, you'll have a much better understanding and vision for your setup - and that could be the time to try some backtesting and forwardtesting. I’ll talk more about a different kind of backtesting in future posts. Meanwhile, take care, send your questions, and comments, will be glad to chat with you. Dima
Education
by Yelli_trades
1
EMOTIONAL TRADING AND HOW TO STOP IT p2 EMOTIONAL TRADING AND HOW TO STOP IT This post goes as a continuation of the previous one, so if you haven't read it, I highly recommend it (link in pinned post)! The emotional trader sometimes has losses, that can costing him much more than just losing money. Having been upset, because of a particular losing trade, such a trader fall into emotions and tries to return everything, that he lost. He is ready to ignore the rules of his trading system and money management for this, eventually losing more and more. When such a trader has several profitable trades in a row, he is also unable to stop and tries to maximize the success achieved. Trying to extend the winning streak as long as possible, he begins to open trades, that he would otherwise avoid, and in the end everything ends by losing money again. This familiar trading problem is usually quite expensive and costs for a trader - time, money and self-esteem. If a trader wants to break out of this vicious circle, then he will need to deal with his feelings, thoughts or actions. Find and change the negative psychological attitude that leads to the appropriate behavior. A good starting point is to ask yourself: Why am I trading this way? Answering this question in writing (which is desirable), listing your thoughts, beliefs and assumptions, you can come across something like this list of answers: ❗️ “If I don’t end every day with a profit, then I'm a failed trader. I can’t afford losses and close the day in the red” ❗️ "If I don't fight the market to get my money back, that will mean I've given up" ❗️ “I just need to work on more deals and I will succeed” ❗️ “When I trade profitably, luck is on my side. But everything can change at any moment. So I need to make the most of the situation and open as many trades as possible while I’m lucky.” ❗️ "The market wants to ruin me" In some ways, we all remain "Pavlov's dogs" - the more and more often we repeat a certain behavior model, the better it's remembered, eventually reaching almost complete automatism. That's just a very rough list, but even looking at it, it's easy to understand how these or similar thoughts can shape certain trading behaviors. Since such a trader feels like a loser until he gets his money back, he will do everything to regain the feeling of a winner. At the same time, thanks of negative experience, such a trader doesn't believe that his trading will be consistently profitable in the long term, and therefore tries to “snatch” as much as possible from the market, which leads to even greater losses. By reflecting on and changing each of these negative beliefs, a trader will be able to understand how irrational they are. Then he can replace these psychological attitudes with more positive ones: 💙 “I don’t have to end every day on a positive note. It is more important for me to maintain a positive balance in the long term. 💛 “Admitting a loss on a particular trade is not the same as admitting defeat. Instead of trying to immediately recover losses, I will analyze my trading and find out why I took a loss. This way I can prevent this situation from happening again in the future.” 💙 “Increasing the number of deals is not the key to winning. It is much more productive to improve their quality.” “When I am trading well, it is because I am in better shape. Luck and luck play a certain role in my life, but do not determine it. As I succeed in trading, I am grateful to myself for this, and I will continue to try to make smart trading decisions in the future.” 💛 “The market does not want to kill me. He is neutral and completely indifferent to me personally and to my trading results. He has no consciousness and is not able to think independently. And he does not try to punish me at all or deliberately harm me.” If the trader in the example looks at this list every day, it will help him stabilize his emotions and make smarter trading decisions. On the one hand, these attitudes do not provoke intense and emotional trading, and on the other hand, they do not lead to the development of laziness and apathy. Have you tried to write Your thoughts?🧐 If not, try it,(it works good) If yes, please share your experience in the comments. Stay with me, subscribe, for not get lost. I will be glad to see your activity by clicking 👍 like button and writing comments!♥️ Always Sincerely Yours Rocket Bomb 🚀💣
BITSTAMP:BTCUSDEducation
by RocketBomb
2
EMOTIONAL BURNOUT OF A TRADER Hello, dear friends! This post goes as a continuation of the previous two, so if you haven't read it, I highly recommend it (link in pinned post)! Today we are talking about <>. I think it's a pretty relevant topic. Let's look at more general problem. Burnout, which is characterized by apathy, laziness, loss of interest in trading, and generally reduced vitality, probably most accurately describes state, that most of us well know. Most traders are always emotionally extremely involved in the trading process, but sometimes even the most psychologically stable can give up. About a year ago, at the very beginning of active trading, the once active beginner was full of enthusiasm and hopes for a brighter future. The head was slightly spinning from the huge financial prospects, and this gave an additional incentive to work. Such a trader at times could even forget to eat or sleep for the required number of hours. However, by the end of the first year, the results didn't live up to expectations, and on the contrary, it turned out that were more difficulties than joys. He begins to feel, that all his efforts are in vain and lead nowhere. This causes him to lose interest in trading and become more and more apathetic towards this activity. Thoughts come, does he need it at all, all this trading ... What hidden negative beliefs drive this trader's growing lack of motivation? The list might look something like this: 🔴 “All my efforts are leading me nowhere. I'm not moving anywhere: one step forward and two steps back." 🔴 "Nothing I've tried to do, didn't works, so my dreams have failed" 🔴 “A trader needs to be born or have a talent for this occupation. I may never be destined to be a trader.” 🔴 “Trading systems and strategies, that work for others don't work for me. There's something wrong with me" 🔴 "Maybe I'm just unlucky" 🔴 “Doing the same thing over and over and expecting a different result is crazy. I'll go crazy if I keep doing this." It's easy to see how a list of such or similar setups can negatively affect a trader's self-esteem and make him feel negative about his own efforts. He actually spirals into apathy, at least as far as his trade is concerned. The problem is that the more multidirectional and chaotic efforts such a trader makes in his work, the worse the result becomes and the more he is convinced of his negative statements. Of course, it is impossible to change your own thoughts in an instant, but you can start working with it systematically. Thought is the foundation and catalyst of action. By changing the paradigm of thinking, we will inevitably change the quality of our actions. 🟢 “You can quit everything, but that's not the best way. Although I feel, that I'm marking time, but during this time I have learned a lot, learned a lot and continue receive new knowledge every day. Quantity will turn into quality, and I'll be able to move more intensively towards my goal." 🟢 “While things I have tried haven't bring me a results I want, but it doesn't mean my future efforts won't get me what I want. I have a huge knowledge base compared to a year ago. It will help me succeed.” 🟢 “No one is born to be successful at anything, and trading is no exception. If I really like trading, I can find a way to get good results.” 🟢 "I'm alright. Systems and trading algorithms, that don't work for me are systems that I either misapply or may not fit my personality. But there is a trading strategy, that is perfect for me, and I will create it myself.” 🟢 “The factor of luck is certainly present in my life, but it's not decisive. After all, my hard work will help me move forward. My intellectual baggage and everything I have learned during this time will help me gain control of my life." 🟢 “Maybe I should consider some changes in my life and work, but it's not crazy, I believe, that daily hard work eventually leads to success. Anyone who has ever become an expert at something or been successful has experienced failure. In any case, I always have the opportunity to seek qualified help if I need it to move forward faster.” These new mental attitudes are much healthier and can help the trader to reconfigure their behavior. Thought is the foundation and catalyst of action. By changing the paradigm of thinking, we will inevitably change the quality of our actions. This applies to absolutely any activity. The examples discussed above illustrate how reformulation of internal dialogues can lead us to a change in the quality of attitudes, to a deeper self-awareness. It gives us an opportunity to make more reasonable and accurate decisions during trading, and in general. I hope you enjoyed this post, write in the comments what else you would like to see in my next posts! Stay with me, subscribe, for not get lost. I will be glad to see your activity by clicking 👍 like button ♥️ Always Sincerely Yours Rocket Bomb 🚀💣
BITSTAMP:BTCUSDEducation
by RocketBomb
2
Don't let the dopamine get you 🥴Do you feel excited? 😅 This is why. It's all down to the chemical reaction in your brain. Dopamine. Dopamine is a chemical in the brain that makes us feel good. Should you be feeling excited when trading?🤔 No.🙈 As this isn't gambling and shouldn't give you the same dopamine rushes like a gambling win does. What's starts as initial excitement will move to fear, anxiety, stress and excitement again. 🤷🏻‍♂️ You become irrational and unable to stick to your plan.🤯 Entering trades through boredom for the 'rush' and closing profitable trades too early because of fear of the profit disappearing - all because you risked too much for that 'buzz'. 'So what can I do about it?' I hear you shout loudly....📢 Well this depends on if you really want to change or not, the downside is you'll think you will make less money .... Think about it - you have a £5000 account right? Option 1 - you trade 15 pairs at 0.5 lot size and your account is up and down like a yo yo - but it's exciting right? Option 2 - you trade 3 pairs at 0.01 - your account movement is marginal. Option 2 is less exciting for sure, but if you want excitement go and jump out of plane. Option 1 will eventually lead to a blown account. Option 2 will give you sustainable consistent trading - you'll let your winners run and you'll lose less on the losing trades. A win win. Only when you get this bit right will you start to see positive change. Emotional control is key Be present doing other things without checking your phone to see how trades are going. Exercise patience by sticking to your plan and letting your trades run instead of closing them early. The only thing you can control in trading is YOU Just don't end up letting the dopamine take control! Have a good weekend everyone and thanks for looking Darren👍
Education
by pow_removetheguesswork
5
Mental Flexibility - Reason WHY people lose their deposits 👀Hello dear community member 🙌 Do you agree that mental flexibility is one of the most important qualities for a trader? Let's discuss: • Why is it important • What happens when a trader does not train the flexibility of the mind • How to develop it and improve your results in trading You don't need to look far for examples of why this is important. Let's remember the fall of the 21st, when everyone was expecting the endless growth of the crypto and the imminent capture of the world by dogecoin adherents and Elon Musk. What happened to these people after November? They continued to long into the short market and most of them lost their deposits. Why do our eyes get blurry? After all, a month after the wrong decision, we hesitantly look back and think: "God, what an idiot I am, how could I not see this ?!" Man was created in such a way as to adhere to a given plan and not deviate from it even a step. Our hairy cave ancestors saw the mammoth and could follow it for days until it separated from the herd and became a convenient prey. If they hesitated and looked from one mammoth to another, their chances of returning home with prey would be greatly reduced. "If you chase two hares, you won't catch either" And it so happened historically that we like to focus on one thing and in many ways it is useful - ONE job, ONE family, ONE faith, ONE and the same bigmac at McDonalds. However, in trading you need to be open to alternative opinions and be able to quickly change your own, because this is a matter of life and death of your deposit. There are a couple of ways to develop flexibility. From the simplest to the most complex: 🏅 Community. By joining the elite club of experts, you will always get a lot of cool ideas and understand the mood of public. It will become easier to make decisions, as well as change your mind. 🏅 Alternative plans. By preparing the main scenario and the alternative one, you show your brain that both options are acceptable for you and subconsciously you will be more open to a change in the wind. 🏅 Meditation. Daily practice of meditation helps to better feel your inner "I", streamline thoughts, weed out the unimportant, and control your own ego. Choose what you like and let's build a strong community together! Have something to add? Share your opinion in the comments. If the post made you think, like it, so I will understand that it was useful for you and I will be motivated to write more. Be sure to write about what else you would like to hear.
Education
by Artem_Dishel
The study of the prism of vision 🎓Here an open mind opinion which will be very usefull if you are a beginner, if you are at research of profitable and regular results, if you research something working for you in this game, and for many others. I will not develop any strategies or analysis here (it would be too long), just show exemple of some with, in the end, some advice that you MUST read to perform in this trading. First I will explain why it came to my mind to make this post and secondly I will provide a deep speech for everyone of you. If you follow me, you know I provide notably updates on Bitcoin for the moment, my analysis, some explanations about what happen inside the market and some expectations for the future (and signal / trades when there is). Yesterday when I wrote the LDTP #11 (you can find it related to this idea), I explained many technical things and during I was writing the post, market made exactly what I was explaning for and what I usually develop. It gave this masterpiece from market like I called it in the initial post 👇 Here showing most of the knowledge I use in my strategy, you will find on this chart Volume analysis, Volume Profile analysis, Wyckoff Pattern analysis, Resistance / Support analysis, Candlestick analysis, Supply / Demand analysis but it's not what I want to develop here. When I cleared my chart, I said to myself : " How beginner cannot be lost when we see this obvious triangle that probably others people develop, exploit, trade for and claimed as THE solution in trading ? Which one say true, is it the Wyckoff pattern with the spring or is it the triangle ? " And so I developped this triangle, and others technics, always taking a blank chart arguying around differents technics. Here the result (I don't present it as working strategies, just as other setup, reading and visions) : Using Support / Resistances, Chartism analysis, Volumes 👇 Using Supply / Demand, Candlestick analysis 👇 Using Harmonic pattern 👇 Using Fibonacci retracements & extensions 👇 Or just using the Tradingview Bollinger Bands strategy 👇 And so, looking to that, I was asking myself : "How peoples can determined which content could be usefull for them when everybody say differents things, claiming for differents technics / strategies, speaking of a same chart ? Who say the truth ? Is this game a big coin flip party ? ". I believe some beginners have already wondered about it. How don't think that when you start here and you see many traders, revendicating as professionnals, saying the exact opposite of the others for some reasons that all seams technically viable. 🔰 So here my answer that you need to read : 🔰 In trading, nobody say true but nobody say wrong also, because there will be always a moment where they will have reason. No strategy say true but no strategy say wrong too, because there will be always a moment where they will have reason. Same as indicators, same as technics, same as ... In the end only market have reason. Don't search to control the market, search to understand it. Don't search to be rich, search to be profitable. Don't search to always have reason / always win trades, but most of the time. ▶️ Don't believe others ! Find usefull content, learn from them, learn from you, but learn. You will never win money by following naively what someone say even more if you don't understand what he say and why he say that. Look at all technics, at all approch, at all strategies you can find in trading, search on these, learn on these, until you find one which will fit with you. You will never win money by applying painfully the strategy of another person. Your mind, your personnality have to show through your strategy. Like there is thousand of assets to trade on, there is thousand way to trade them. ▶️ Grind the market until you apply your strategy/knowledges unconsciously ! Here how your brain work or how you have to make it work : You are unconsciously incompetent, then you do research to experiment new approch of understanding. You find it so you become consciously incompetent, then you learn about it to become better. You force yourself to apply it so you become consciously competent, then you grind it everyday, everyweek, everymonth as long you need for integrate it. When you are finally able to do it naturally you become inconsciously competent, then you can restart with another unconsciously incompetent aspect of you. ▶️ Don't avoid failure, you will fail ! Every trader already failed, at different scales, but this is a fact. This is how work your brain, you learn, then you apply, then you fail, then you learn from it to apply better and to avoid future mistakes. And failure will became less important but you will continue to fail, and you will continue to learn from them. This is how you become profitable. You can block yourself in a state where you don't want to fail, but you will never progress. Failure help to question ourselves, it's an essential step to progress. If you are not able to take a step back from your results, from how you apply your strategy and your knowledges, you will run into a wall, you will loose time and failure will became harder than never. ▶️ Become mathematically reliable ! Today you have the opportunity to test strategies for free, abuse of it. Use virtual money accounts and train for days, weeks, months, years until your strategy became mathematically reliable. By using virtual money and not your own, it will able you to fail, as much you need it. But you will also work on your strategy out of any emotions. Because when you trade with real money you are impacted by emotions, and as you are, your strategy will, and is profitability with it. If you don't do that step of learning and applying far from real money you will lose your time to blame your emotions like the reason why you are loosing money but it's just that your strategy isn't' profitable on long term. ▶️ Work on yourself ! As you have to work on your knowledges to improve yourself, you will have to work on your personnality to win money in trading. You will experience emotions and you will have to learn to control them. If you cannot you will have to learn to don't trade when you feel emotions. Emotions will make you overtrade, deviate from your strategy and so from your profitability in trading. Emotions will blind yourself from your true value, making you better than you are or worse than you are. Emotions will cause moments of intense joy as well as moments of deep sorrow. Frustration, revenge, confidence, motivation, patience, mistakes, pain, sadness, happyness I could quote decades that you will have to deal with, you will fail because of them, you will tilt, and you will have to learn about it again. Speaking of pacience, this is the major mistake of beginner for me, if you are not able to put your ass in a chair and look at market without taking a single trade during a full day, you don't trade for the good reason : you trade to feel emotions and not to win money. You are not looking the market to find entry, you are waiting the market to give you an entry : weigh the meaning of these words. And if you had doubts about it, you won't be rich tomorrow from trading because you read this words, but it can give you answer to achieve your goals. ▶️ Open your mind ! Like I showed there is many technics in trading, explore them ! That don't mean that you have to use them but you have to understand what exist, why some can be usefull in some case and not in other ... Also open your mind to other's plans, admit that you could say wrong and that you could think wrong. Another mistake that some do : don't explore only one way, don't think because this indicator say "..." that market can go only here "...". Take a step back, create scenarios that the market could follow and search in these which one you could exploit. Market cannot surprise you if you do this job, become proactive and stop being reactive. You will see that the emotional charge will be less important. But don't confuse, that don't mean you anticipate the market, you just imagine what he can do. Never anticipate the market, or you will lose money. ⚠️ To finish, I made a statement in one of my past ideas that I want to reiterate : "Whatever your strategy, whatever your indicators, whatever your amount of knowledges, if it is mathematically reliable it doesn't lie but premiums scams lie. Doesn't matter who you want to follow, who you want to support, who you want to believe, always verify that he doesn't provide public payable services where your person serv his own interest. That probably the best advice I can give you. You will need to surround yourself to progress in trading, that a fact, but don't be the food of this guys." Saying all that, I hope you understand now that trading isn't a question of "this indicator is better than this one", or "this strategy is the best way to ...", no it's just how you use it, how much you trained for, how much you grind to handle it. If you had to remenber only a sentence, use this one : "Making money in trading is math and respect of strategy, so never let your emotions guide you in uncomfortable positions" If you arrived to these final words I think it's because you want to improve yourself and I promise you that you will succeed if you put the amount of work necessary. It will not be an easy path but nobody said that it will be simple, except those who earn money from you. There was so much things to say that I probably forgot sometimes what I wanted to say, and there is always at least as much to say. Maybe one day I will do another chapter but for the moment : Like, follow or comment* if you like, I need it to continue ! *Speaking of comments, come ask questions, come share your point of view, come debate, I need it to feel that my without counterpart work is usefull for some !
Education
by Kentg
3
5 KEY points to control FOMOHi Traders, FOMO is a VERY real thing and in this post, I wanted to share with you 5 key points that has helped me control my psychology around this throughout my trading journey. 1. Accept the market can go in any direction; Neutralize your mindset: The market changes very quick on any given basis and just when you think you have a perfect set up, it could take a turn and make profits turn into losses in matter of seconds. As you analyze the market, you need to have a neutral mind set understanding that price can go either way and as structures develope, you may need to change your bias and take a step back to look at the price action in a different view. If you approach the market in a neutral mind set, you are not "marrying" your set up and this helps reduce your emotions and builds your psychology. 2. Risk Management: Risk Management is the holy grail in trading. If you cannot control how much you risk, you are simply gambling. Losses are inevidable in trading and you need to understand you will always endure them, but keeping the risk at minimal (1%) will sustain your capital to be able to continue trading. Keeping the same risk on each and every trade and maximizing your reward ratio will help you compound your profits and eventually your losses will be outweighed by your rewards. 3. If you missed the first entry, there will ALWAYS be another one: Often traders will try and chase a massive drop HOPING that price will push down further when in fact could catch you with your pants down. Understand that there will ALWAYS be another entry that may fit your trading plan. If you missed the first one and start chasing volatility rather then sitting on your hands waiting for another confrmation, your judgement gets clouded which will the create revenge trading, greed, FOMO and capital loss. 4. Take what the market gives you; leave your EGO at the door: Any experienced trader will tell you to check your EGO. Just because you THINK the price will go to your target, it doesn't mean that it will. Price does not need to reach your target for you to be profitable, taking your profits as the market gives you will make you profitable. As the market moves and creates structures, at times it may not be ready to continue to rise or drop and that is why you need to manage your trades accordingly and adjust your mindset to acheive this in order to avoid uncessary losses. 5. Have a Trading Plan & Follow your Trading Plan: Having a Trading Plan is key in order to know when to get in or out of the market. If you are unable to identify your profit targets/stop levels, entries, exits etc. you are doomed to fail. Following a plan will help with consistency along with many other areas towards the road of success. Implementing a plan is just one area which will help gain confidence in this business, its what that plan entales which will help you succeed in this business. Every trader that has they're own trading style, plan, management and mind set and there is NO right or wrong in trading as long as you are following your plan and your decision meets your criteria. I encourage every trader to review your plan and make necessary changes as your journey continues to achieve greater results. Leave a comment and and share your thoughts around this topic :) Click the like button if this has helped you! Support more of these to help our community! Enjoy your weekend!
Education
by ktlfx
1
CONQUER YOUR EMOTIONSHello everyone Today I want to talk about a very important topic in trading – emotions. Emotions accompany us in trading from beginning to end: when we open a position, while we hold and when we close. Our psychological state is constantly being tested. All this leads to constant mistakes and loss of money. But how to avoid all this? The main reason Think about what is the main reason for your emotional swings? It may seem strange, but the main reason for emotional mistakes is the continuous observation of the price chart. You constantly look at the chart, watch every tick, the price changes its direction every second, you overwork and begin to doubt the correctness of your forecast. At the same time, it is worth recalling that people like to watch: movies, magazines, books. We are constantly looking at something and looking for something new. Forex is interesting because there is money there. When a position is open, traders are happy to follow every price movement. And when the position is not open, what do you do? That's right, you don't look, because looking at the market is just so boring. If the position is open, it is difficult to resist and not look at the chart. What is the reason for the shaky psychological state of the trader? Your drug Constant monitoring of the price leads to addiction. You get tired, the exhausting observation of how profit comes and goes, leads to big mistakes. Continuous emotional roller coasters kill the desire to trade in us and at some point, on a subconscious level, you want to lose everything just to get away from the monitor. Familiar? How to overcome emotions? There are many different ways, today we will look at three that will help you avoid emotional overload. 1. Use a higher timeframe If you trade on minute charts and experience problems with emotions and fatigue, you should switch to an older timeframe. If you start trading, for example, on a daily chart, there will be no need to look at the chart every minute, because the price does not move so fast. The daily or 4-hour schedule does not change so often and it will be enough for you to look at the chart once or twice a day. Thus, you will remove from the equation the constant monitoring of the schedule, which leads to fatigue. You will have fewer mistakes, which means more profit. 2. Daily goals A great way to reduce emotional pressure is to set goals. The point is that you set yourself a certain profit and loss goal every day, and when you reach one of the indicators, trading for you stops today. You can set yourself a profit and loss goal, for example, of 50 points. As soon as you earn or lose 50 points, you go to rest until the next day. This is a great way, and it will definitely help to avoid over-trading. But not everyone can force themselves to leave, especially after losing money. Follow the strategy, otherwise you will be pursued by losses. 3. Lot reduction For many, this method may seem strange. After all, everyone thinks only about profit and how to get it quickly. The market is a dangerous place and there is no need to hurry here. Reduce the position by 5 times and you will see the difference in your trading. You will stop making mistakes, you will follow the strategy. But why? The problem is that when trading large lots, the trader thinks only about money, forgets about risks and rules. This is how the trader drains the account. When trading small volumes, your brain will be free from thoughts of quick profit. YOU will become more reasonable and attentive. Results Emotions will not go away and the market will always test you. Strong emotional swings make you make mistakes and lose money. Use the methods listed above and control over emotions will come, the results will improve. May peace come with you! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩
Education
by Lingrid
22
Are you revenge trading 😖🤔Revenge trading! It all catches us all out at some point in our trading journey's. The markets don't care about your loss and neither should you! Losses are a part of trading and have to be accepted. No one can be right 100% of the time regardless of method used. Revenge trading will add to those losses and compound that account draw down even more. Irrational emotions have no place in trading and they are what lead to revenge trading. The way to eradicate this issue is by going about your trading a logical manner. First off is build or use a strategy with a known proven edge. Second is follow that strategy to the letter and only enter trades when all your parameters/confluences are met. The markets take from the impatient and give to the patient ones. The example I am using on chart is using a trend following strategy of our own. This strategy is a good win percentage and I know that as the built in strategy tester shows me all the stats. As always the report box is at the bottom of the idea showing those very stats. A 61% win rate means losers still happen and as you will see on the chart the buy trade hit stop loss before price went on an upward trend. The old trader in me would of been pouring over this chart trying to guess which way will it go? What should I do enter a long again? That would of paid of in this instance but not the logical thing to have done it would of been luck and luck only. Who knows with emotions at play would I of had a thought the price was going to head down? Then place a sell order? Luckily I didn't have to make any of those choices with emotions at play. I accepted the loss on the fact I know I'm trading a proven strategy and I simply waited for the next trade alert and let probability play out. The next trade was a short that found it's intended take profit target. This process is more simpler for those who are using a mechanical trading system like the one on chart. But regardless of system or approach in use if you are following the trading plan to the letter revenge trading shouldn't occur. Find an edge, apply that edge, stick to the proven plan and revenge trading won't be your issue. Instead you'll be one of the patient ones that the market is giving to 👌👍 ------------------------------------------ I try and share as many ideas as I can as and when I have time. My trades are automated so I am not sat in front of a screen daily. Jumping on random trade ideas 'willy-nilly' on Trading View trying to find that one trade that you can retire from is not a sustainable way to trade. You might get lucky, but it will always end one way. ------------------------------------------ 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. The stats for this pair are shown below too. Thank you. Darren
Education
by pow_removetheguesswork
The Reality Of Emotional TradingHello Traders, today I would like to talk about the reality of trading with your emotions, this can be whether you are a swing trader or a day trader we are all human and get emotional but we must learn how to control them and not trade when you are unstable. Emotional instability The most common reason why people plummet to the end of their forex trading is due to emotional instability. Forex trading in reality is all about how well you can control your emotions. Reality Mastering your fear, hesitation, anxiety, impatience, curbing down your greed and over confidence, this is all what any trading decision is based upon. It might be surprising, but a large percentage of people, struggle with the most basic step in trading forex, why? Because they downplay its importance. Being emotionally stable and in control of your emotions, is often overlooked because everything else seems much more important: profits, losses, risks, strategies, trading plan. Here are some of the ways which help you trade better: Be consistent. Do not lose faith in your strategy. Have a risk management strategy. Don’t switch strategies. Have a strong trading plan. Take a break. Learn to control your emotions. Don not revenge-trade. These are the 5 emotions you often feel while trading and how you may react to your trading Happiness – underestimate the risks Fear – we fail to act (inertia) Anger – Overreact (Revenge) Sadness - risk averse Greed – Take bigger risks If you cannot control your emotions during your trading you may react in a way which breaches your trading plan. This is extremely important as this is one of the biggest factors a lot of traders face while trading. Thanks for taking the time to read my post 😆😂😆😂😆😂😆😂
COINBASE:BTCUSDEducation
by Pips-Collector
1
Risk management lessonI mentioned it on another day already, but this topic is very important so I decided to share it again to reach as much as possible. Hope it will help some! The last weeks it happend again, I saw some traders with less knowledge (young and old) who crashed their accounts very hard. They lost a lot of money and for some it was very dreadful! It is hard to watch this people how they burn money and bring even his own family in financial danger. That´s why I decided to share one important chapter from my book here to you. May be some will find very helpful, or some will remember this rules again. I will keep it a bit shorter here as in my book, but the main points are still mentioned! I can´t say it often enough, keep the important rules in trading. Trading is not the way to get rich quick, it is a serious and hard business! It take a lot of time to learn, it requires a lot of patience and it will happen a lot of failures. This failures are even more important than your success! Success will not open up how it will not work, failures will. Let´s talk about risk management! For each investment you have to consider you take for each trade the risk to lose money, that´s why it is mandatory to handle each investment with a good risk/reward distribution. You have to keep in mind, the determined risk/reward is only theoretically and can result complete different. But with knowledge you can dedicate a good entry for your trades to keep your risk as low as possible. Determine important support and resistance levels and think about all situations what could happen and what will you do if you are going into the red or into the green? Which levels are the best entry and exit? This all will help you to determine your riks/reward ratio. What is the Risk/Reward Ratio? Successful day traders are generally aware of both, the potential risk and potential reward before entering a trade. The goal of a day trader is to place trades where the potential reward outweighs the potential risk. These trades would be considered to have a good risk/reward ratio. A risk/reward ratio is simply the amount of money you plan to risk, compared to the amount of money you believe you can gain. For example, if you think a potential trade may result in either a $400 profit or $100 loss, the trade would have a risk/reward ratio of 1:4, making it a favorable setup. Contrarily, if you risk $100 to make $100, the trade has a risk/reward ratio of 1:1, giving you the same type of unfavorable odds that you can find in a casino. Which ratio should you desire? Like described above, finding trades with high risk/reward ratios (1:2 or higher), will help you maintain higher average profits and lower average losses, making your trading strategy more sustainable. The common suggestion between traders is a distribution of minimum 1:2 ratio. In reality there are often even better ratios available, if you do your technical chart analysis. But what should you do if you have to cut losses? We have to place our stop loss right below our support or other important levels we determined before. The purpose is to cut losses before they grow too large. Stopping out of a losing trade can be one of the hardest things for traders to do consistently. However, failing to take stops can result in margin calls, unnecessarily large losses, and ultimately account blowouts. How big should I enter a position? To lower your risk I recommend to think about your size to enter a position. Overall you shouldn´t risk money you need, only deposit money in your broker you can afford. Entering small can be the smartest way to safe your account. I suggest that because of four reasons, the first reason is, you don´t risk to much of your funds and your stop loss should be tight anyway. The second reason is, you can average down if the price is going in the other direction, but consider this option only if you are sure what you are doing. The third reason is, you can buy the dips/pullbacks if the trend is strong and still heading in your desired direction. In addition, the fourth reason is, your emotional control is stronger if the price movement is heading in the wrong direction. That brings me to another topic. Should you use leverage? Yes I know, big leverage will give you big gains...but as a beginner you will not have the experience to know which trade has a very big potential or not. Even experienced traders use only a small amount to enter a position and not the whole fund. If you use leverage the losses can be much higher and the problem with that is, if you lose money, your leverage will also decrease significantly and the losses are harder to recover after each loss. So the answer of the question, if you should use leverage: For beginners we can easily answer: Take your hands of a big leverage! You can so hardly blow up yourself with that tool, it is ridiculous. Your way back into the profit zone will probably take years. But you have to save yourself and after a period of time, a period of taking profits and cutting losses you will gain knowledge until you feel much more comfortable on the market and you understand how trading really works, then you can consider to use leverage. Conclusion: As I said, I want to share only some big points about this topic, because I think many new investors don´t understand how important that topic is! Safe yourself and have fun in trading and learning! Sincerely, TradeandGrow Trade safe!
NYSE:AMCEducation
by TradeandGrow
2
The Hard Truth About Trading 😅 Well, that is just a joke. Or not a joke? In every good joke, there's a sliver of truth... So many people blew their trading accounts in a blink of an idea chasing the profits, so many people went bankrupt practicing leverage trading... Do not be that guy in a picture. Be a true trader! Never forget about risk management and don't be greedy. Never let your emotions control you. Stay calm and humble while you trade. Have a great weekend! ❤️Please, support these drawings with like! It really helps!
Education
by UnitedSignals
3
The three O's that have to go ❌The O’s in your trading game that have to go are shown drawn on the chart. The three O’s in the idea can all overlap one another and allowing one to creep in can lead to any of the other also creeping in to your trading. We have all suffered at some point in our trading journeys of these three phenomena. All of these O’s can lead to capital being impacted and potentially a blown account. We’ll start with over trading. On the face of it, over trading is taking too many trades. Over trading can occur when chasing losses or being on a particularly good winning steak. Either of those situations mentioned is essentially a loss of control. The loss of control leads to a loss of focus. The loss of focus leads to too many trades. Too many of those trades will be stupid trades. Those stupid trades will be losing trades at some point. All these trades mean increased commissions. The cycle continues and instead of compounding profits the only thing being compounded is risk. Compounded risk leads to losses and if the cycle isn’t broken a blown trading account awaits. Next is over risking. Risk management is key to any trading plan being successful. Stating the obvious in that first sentence. But I’m also stating the obvious when I say we’ve all been there and risked more than we should on some trades. Over risking more than our capital allows will only lead to tears and one outcome which is the blown account outcome. We end with overconfidence Probably the worse O of the three to allow in your trading behaviours! Allowing this one to sneak in can quickly allow the other two already covered to sneak in. Usually seen as a positive emotion in the world we live in, this emotion can quickly become a negative emotion in the trading world. Allowing this emotion to creep in blurs our perceptions to so many concepts we need for trading and can lead to a gambling mentality. Greed will take hold with overconfidence and when the winning streak comes to a cashing end the trader runs the risk of allowing the other two O’s to creep in leading to only one outcome. The blown account yet again. The O’s can crossover All of the traits mentioned can be experienced individually or some can crossover one another. Below are a few examples. We covered in the overconfidence how it can lead to the O’s creeping in. Overconfidence from a winning streak leads to overtrading which in turn leads to an inevitable losing streak and capital impacted with losses. Worse case scenario is overconfidence from a good run of trades leads to over risking on the next set of trades which loose. You then end up over trading in revenge to gain back the losses which could lead to yet more losses. You could be a new trader starting out with no confidence. You start to over risk from the off and lead to your trading account being blown. You could over trade combined with over risking which accelerates the loss of trading capital. In those scenarios mentioned confidence hasn’t been an issue at all. But risk management and trade volume have. How to avoid the O’s I'm pretty sure we all suffer one of O traits at some point in our trading journey. The key is to recognise the incident and the issues it caused and learn from that. It lies with us as individuals to own up to our trading mistakes. Some of us will suffer all three O’s in our trading paths. In owning up to our shortcomings all the O’s can be avoided going forward in your trading life's. Hope you all enjoy your trading week. Darren ------------------------------------------ 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.
BITSTAMP:BTCUSDEducation
by pow_removetheguesswork
Manage your emotionsTrading requires focus. It is crucial for traders to know exactly what to do to control their emotions while trading. It is also important to know when to accept a loss and move on. Here are 10 tips from the pros to manage your emotions while trading: 1) Manage your stops carefully. A cautious approach to stops and limits will keep you from making rash decisions. It hurts to get a trade stopped out, but over time you will save money on losses. Your trading journal can give you useful comparisons on levels for stops. 2) Don’t marry your positions. It’s easy for a trader to get stubborn, and to hold on to a trade just because he ‘hopes’ it will turn around. Close down a bad trade as soon as possible, take your loss and move on. Your trading journal will suggest the next move. 3) Follow each trade with a break. Trading goes on at a rapid pace, so don’t get caught up in the action. Take a moment to think about something else, and then come back and deliberate. Now look at your trading journal to get the next idea. 4) Set a fixed point at which you stop. After three, four, five or whatever number you choose, stop for a good long break. It’s when one trade follows another that most mistakes happen. Consult your trading journal and review your strategy. 5) Don’t keep track of profit and loss. Doing the math on your earnings will only get your emotions working. Concentrate on your trading strategy, and review your trading journal to develop it. Then, at the end of the trading day, you can check out how well or poorly you did. 6) Keep your mind on the plan. Don’t let the results of a few trades change your overall strategy and approach. Stick to what you have learned and what you have planned – use your trading journal to develop your next moves. 7) Don’t confuse prudence with fear. You want to trade prudently, using logic and reason. This may make you hold off on a trade. But make sure that prudence, and not fear, is behind your decision. Fear can wreck your trading by keeping you from making a trade. Use your trading journal to see if the trade makes sense, follows previous wins, or if the trade just doesn’t make sense. 8) Watch out for greed. Greed can make you stay in a trade when you had planned to exit, hoping to milk it for a little more profit. Such trades risk turning out badly, just when you thought you were winning. Use your trading journal to judge the best exit points based on past behavior. 9) Don’t act on anger. When you’re angry, hold out, wait until reason takes hold. There is no worse trade than a “revenge” trade, in which a trader follows up a loss by jumping right back in to recoup. Consult your trading journal to get back on track. 10) Don’t give up. There comes a point in every trader’s life when it just doesn’t seem worth it anymore. Don’t let yourself be intimidated. Trading is tough, but you can win.
Education
by MoonBets
5
TOXIC TRADERS ☠️📌 Both optimism and pessimism is the worst thing to happen to a trader. ⚠️ Please do not believe in a chart or have a faith for that... 📍 Being realistic and trade based on reasonable facts is the best way of trading. Always make decision based on facts and DO NOT TRUST YOUR HEART NOT EVEN ONCE. ⚠️ Set your risk by considering your character; are you willing enough to take risks as dangerous as completely losing all your money? ⚠️ As I wanna mention it again: NEVER BELIEVE IN CHART. Just see it as a potential oppurtunity. 📍 Trading is a game of numbers, mathemtics, algorithms, cycles, supply and demand, economics, etc. One of the most strict majors in the human history. ⚠️ Do not include your emotions and or you belief or faith in this game. This is not a financial advice, I just am willing to share my own experiece with you guys With y'all a very happy and profitable lifestyle
NASDAQ:AAPLEducation
by C_EWAVE13
5
Are you a champion hopper? 😬🙈Morning traders. I started yesterday morning by posting an idea with the phrase below. 'Lets start the morning with everyone's favourite! Gold' Well I'm kinda doing the same again this morning but this time it so we can all have some more food for thought at the breakfast table instead! Now here me out, I have drawn the two graphs in this mornings idea on the same gold H1 strategy chart I shared yesterdays idea from. The comment section was a good mix of feedback, some miffed at the stop out possibly and others very realistic in the reality that stop losses occur in trading. For this strategy yesterdays stop loss means we now have 5 losses in a row. But I wont be hopping off to another method or style either. 90% of traders get spooked at the first sign of a losing run and jump to the next strategy. Why will I stick with this strategy for gold on H1? Because of probability being factored in from the back tested data available. Hand on heart how many people out there actually back test a strategy? You can't plan for probability in your risk management if you have no data for your strategy. Transparency when sharing ideas has always been key for me and strategy test data is always included in my ideas just as the H1 gold data is at the bottom of this idea. This leads me back on to the graph drawings in this idea. The one on the left is the last two weeks of data for this strategy the one on the right is the last two years! Growing capital takes time. Losing runs are part of trading the growing capital part comes from trading a strategy with a proven edge. If you have a proven system why hop on to another one? I'll end this idea with a great quote from Steve Burns. '10% of successful trading is creating a system with an edge. The other 90% is following it' Enjoy your day traders. ------------------------------------------ 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
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OANDA:XAUUSDEducation
by pow_removetheguesswork
7