Protecting Your Investments: The Art of Setting Stop Losses 📉💰
Protecting Your Investments: The Art of Setting Stop Losses 📉💰
✅Setting stop losses is a crucial aspect of risk management in the world of investing. Whether you are a seasoned trader or just starting out, understanding how to set stop losses can help protect your capital and minimize losses. In this article, we will delve into the intricacies of setting stop losses and provide practical examples to illustrate the process.
✅Understanding Stop Loss
A stop loss is an order placed with a broker to buy or sell a security once the price reaches a certain level. It is used to limit potential losses on a trade. When setting a stop loss, it's important to consider factors such as volatility, market conditions, and individual risk tolerance.
Gold broke the rising support so a short trade was opened at the retest, with the SL being above the local key structure
✅ How to Set Stop Losses
1. Determine your risk tolerance: Before setting a stop loss, it's essential to assess how much you are willing to risk on a trade. This will help you determine the appropriate level for your stop loss.
2. Consider technical analysis: Utilize technical indicators and chart patterns to identify key support and resistance levels. These can serve as potential areas to place your stop loss.
3. Implement a trailing stop: As the price of a security moves in a favorable direction, consider adjusting your stop loss to lock in profits while still protecting against potential reversals.
Gold was retesting the horizontal resistance level so a short trade was activated, with the SL above the resistance level
✅Examples:
1. Scenario 1: An investor purchases 100 shares of Company XYZ at $50 per share. They set a stop loss at $45 to limit potential losses if the stock price declines.
2. Scenario 2: A swing trader enters a long position on a currency pair at 1.2000. They place a trailing stop loss at 1.2050 to protect against adverse price movements.
Gold was retesting the strong horizontal support level from where we took a long trade and placed the SL below the lower bound of the support level
When setting stop losses, it's important to strike a balance between protecting your capital and allowing for potential market fluctuations. By mastering the art of setting stop losses, investors can better navigate the unpredictable nature of financial markets and safeguard their hard-earned investments. 📊✅
Financialeducation
"Inflation: The Silent Wealth Eroder 🤐💸"
In the world of economics, there's a silent assassin at work, slowly but persistently eroding the value of your hard-earned money. Inflation, often overlooked but silently powerful, can be a wealth killer if left unattended. This in-depth exploration uncovers why inflation is a financial menace, examining its causes, consequences, and strategies to shield your wealth.
The Silent Thief
The Dollar Dilemma
Retirement Realities
Causes of Inflation
1. Demand-Pull Inflation 📈
When demand for goods and services surpasses their supply, prices go up. This can happen in booming economies when everyone wants a piece of the pie.
2. Cost-Push Inflation 📦🏭
Rising production costs, like increased wages or resource prices, can lead to higher prices for consumers. Businesses pass these costs on to buyers, contributing to inflation.
Consequences of Inaction
Stagnant Savings
Protecting Your Wealth
There are strategies to counter the silent thief:
1. Invest Wisely 📊💡
Consider investments that have the potential to outpace inflation, like stocks, real estate, or commodities.
2. Diversify Your Portfolio 🌐📈
Spreading your investments across various assets can reduce the impact of inflation on your overall portfolio.
Inflation may be silent, but its impact on your wealth is loud and clear. Understanding the causes, consequences, and protective measures can help you guard your financial future against this silent yet formidable adversary. Don't let your money silently slip away—act now to preserve your wealth. 💸🤐
Please, support my work with like and comment!
Love you, my dear followers!👩💻🌸
Live Trading Session 238: Open Trades on BTC,Gold & moreIn this live trading session video,we look at our open positions and the potential trades setting up for the week on GBPUSD,S&P 500,Brent Oil,Bitcoin and many more.
To understand our ideas and videos better,we highly recommend watching our following stream videos:
1.Trader Starter Pack 5 day video course
Look on our channel profile or at our signature section to access it
2.7 steps to achieve consistent trading performance
www.tradingview.com
3.7 steps for strategy construction
www.tradingview.com
IS ETH low at 1530 going to hold?(1)ETH last low from the distribution seller bar at 1540 has been taken out. We see some settling at 1530 level with a low test buyer bar coming up. Once this low has confirmed, we will look at the 4H timeframe to get an early top towards confirming on daily and weekly.
For the weekly to continue going down, there is a less than 30% probability. So,highly probably, it may confirm its weekly bottom before carrying further south. Let's see if how the trade plans out according to our smart money framework and the VSA methodology.
We will be tracking this potential trade and updating the post as we go along on the charts and on video. Keep a look out for it traders.
To understand our ideas and videos better,we highly recommend watching our following stream videos:
1.Trader Starter Pack 5 day video course
Look on our channel profile or at our signature section to access it
2.7 steps to achieve consistent trading performance
www.tradingview.com
3.7 steps for strategy construction
www.tradingview.com
Refn image from our ealier post:
Is US30 low at 34024 going to hold and confirm weekly bottom?(4)We have entered this trade on 4h confirmation bar and it has now gone onto confirm the 2nd bottom on the daily timframe. The weekly potential bottom is still holding. For it to have a higher probability to confirm the weekly bottom, it has now got to take out the last swing high as shown in the image. Let's see how the trade plans out according to our smart money framework indicator.
US30(Long)
E - 34607
SL - 34023
T - To be confirmed(TBC)
We will be tracking this move and updating the post as we go along on the charts and on video. Keep a look out for it traders.
To understand our ideas and videos better,we highly recommend watching our following stream videos:
1.Trader Starter Pack 5 day video course
Look on our channel profile or at our signature section to access it
2.7 steps to achieve consistent trading performance
www.tradingview.com
3.7 steps for strategy construction
www.tradingview.com
Is USDJPY going to reach its 50% OE target this time?(1)We have entered USDJPY on the daily confirmation bar on a long trade. This is based on a daily P1 trend continuation move, and along with a weekly continuation trade move according to our smart money framework indicator. You can see on the image below on which part of the cycle we are in on the weekly timeframe and how that matches up with the daily timeframe. According to our OE tables, we can see that there is a more than 40% chance since it is a phase 1 move that the weekly potential high will be taken and for the long move to continue further north.
USDJPY(Short)
E - 147.45
ISL - 146.10
T - TBC
We will be tracking this move and updating the post as we go along on the charts and on video. Keep a look out for it traders.
To understand our ideas and videos better,we highly recommend watching our following stream videos:
1.Trader Starter Pack 5 day video course
Look on our channel profile or at our signature section to access it
2.7 steps to achieve consistent trading performance
www.tradingview.com
3.7 steps for strategy construction
www.tradingview.com
EURJPY - Bulls are waiting.Here we're sharing the trade setup of EURJPY for upcoming trading days. This decision has been made according to the technical and fundamental analysis.
We're waiting for confirmation to enter this as usual!,
Note:- This is for educational purposes only. This is not financial advise!
TTCF | WOW, What an Entry! | BounceTattooed Chef, Inc., a plant-based food company, produces and sells a portfolio of frozen foods. It supplies plant-based products to retailers in the United States. The company offers ready-to-cook bowls, zucchini spirals, riced cauliflower, acai and smoothie bowls, cauliflower crust pizza, and plant-based burgers. Its products are available in private label and Tattooed Chef brand name in the frozen food section of retail food stores. As of December 31, 2021, it operated approximately 14,000 retail outlets. Tattooed Chef, Inc. is headquartered in Paramount, California.
AXS UPDATE After a bullish a movement of AXS price we are in a correction phase but as noticed it's a negative correction the market will slow down in the few next days.
- we can see the price resisted by the 200MA also it was below it in the last days ,that means it will stay like that for a while
-resisted also by the 50MA after the price cross it down with a huge red candle and a great red volume we will see a consolidation and a price drop till the golden area (GA), this drop explained by the down channel as we can see in 4h chart and 1h chart,
POV:
* The great time to invest in it and enter the market is when it reaches the golden area
* Gain some profit while waiting going short is a great option but after the price breakdown the consolidation level the have a good confirmation
* not a financial advice
The Cashflow Game: by Robert KiyosakiDId you hear the Cashflow Game?
What it's the Cashflow Game?
In my definition, the Cashflow Game it's a way to measure your financial education and how do you use the money?, how do you apply the knowledge and learningedge in your personal life?, What kind of education I should to get?, My own answer it's nothing of this answer. My best anwer it's that if you wan't to know the way to use your money, you will need to be auto-didactic and get your auto-learningedge in based your experience to have knowledge. You don't need any education what school or university show you to learn this cashflow game. Schools doesn't teached us about money, financial education, Forex, Bitcoin, cryptocurrency, personal and motivational development, and much more others theme that I know very well. School teached us about History, Arts, Math (Algebra, Trigonometry, basic math, etc...), Science (Natural Science, Biology, Physics, Chemistry, Environmental Science, etc..), Spanish, English, languages, sport, vocational courses, etc... But school never will teach you about financial education, money and how do you get a personal and motivational development, never and always the education system will be design to be corrupt and creating poor people without knowledge about financial education. the only subject not teached in the school.
That it's my perspective point to know very well this theme, and people don't ask about it.
Now, I wan't to make a step by step to discuss by part how it's work
I.Education:
If you want to learn about cashflow, the first step it's to get education, Don't go to the school to attent to show you this theme. As I said, school doesn't teach us about financial education. And you will need to be auto-didactic and get an alternative education what school teach. For example: reading books about best authors or best=-seller like Secrets of the Millonaire Mind, Rich Dad Poor Dad,etc... You can to find up books based in the personal or motivational development, you can to learn about finance, financial market, economy, psycology, any story or topic that you interesting, etc... You can to learn any languages. You will need to get medidate and exercise. One of my best point that I write in the rectangle it's the following: Your mind it's your main asset to invest in your knowledge . So, let's me see to say you one thing: People are inconscient about that your mind it's your main asset and this it's a way that nobody will teach you, and also school don't teach it. If you want to get an alternative education, you will need to invest in your own knowledge, and this will be alone, you will need to learn to be auto-didactic.
II. Investments:
This it's my favorite section. if you want to make any investment, there's a lot way that you can to get passive income, but to learn about investment, you will need an alternative education in the first section that you will need to be auto-didactic. I like the business, real estate. Also, the real estate it's one of the profitable business that Robert Kiyosaki do, and I want to apply it in the future. And assets are a good way to get profit when you invest in cryptocurrencies, Gold, Silver, Oil, Bitcoin, Shares by long term. Now, trading or investing in the financial market it's the popular in this era. They're trading in Forex, commodities, stock market and cryptocurrencies. Now, I have this way how I trade in each market. For example: I like to trade Forex with commodities (Gold, Silver and Oil) togethers. As I know that I do not trade Forex a lot and I trade cryptocurrency. But in the future, I hope to open up an account in USD to trade Forex and commodities togethers. I choose the commodities to trade with Forex togethers because Gold, Silver and Oil it's make movement with the globe economy and this it's a way how will affect by Forex market. Remember, Forex it's the largest financial market in the world, and more biggest than any financial market. For that, Forex it's a financial market that you can to negotiate with dollar, euro, pounds, Canadian Dollar, aussie, Yen, and anothers currencies. This it's one of my favorite market to know the situation of the economy in based the CPI, Inflation rates, jobs, economy activity and sectors, economical data and analytical. and much more to take in note. For that, Forex it's the main financial market in the world. Now, before I started with Forex market, and now I'm in cryptocurrencies. But more later, I will go back to trade Forex with Gold, Silver and Oil. One of my strategy that I made before it's to find up 15% weekly, and included until 20% weekly to management my money. But now, I thinking to change my goal when I going to start with Forex again and find up 30% monthly to change my expectative. 30% monthly it's very great to start and keep this plan to long term. Now, in the anotherhand, the cryptocurrencies it's one of my market that I love. Now, I decide to add the stock market (indices and some shares) to trade togethers with cryptocurrencies. One of my goal at the moment that I invest in cryptocurrency it's to find up 300% by year and keep this plan toward long term. And recently, I open up a third account just to make position trading to keep trades until weeks, months and included years in focus in cryptocurrencies and stock market. I dont have any % like goal, it's a way to use it to keep this position so toward long term, but yes putting a target price that I believe that this asset will reach this price. For example: It's like to buy 4,000 ADA contract to $2 dollar and I believe in the future that Cardano will reach $100 USD, without matter how long time I keep this position trading toward long term?. But all based in the USD account to get dollars profits. But yes, I calculate my potential loss in SL, that I note very well, but I put the price that I believe that this asset will reach in the future without so late.
III. Use of Money:
The use of money it's a way to management your money creating your lifestyle using your money that you get in the market, business, asset or passive income. This it's very easily creating a plan to management your money by sections like saves, investments, jubilation, spends, emergency, health, etc.... You just need to determine the % that you want to put in each section. And also, the use of money require that you always follow the trend of money reading economical news, politics, commodities, cryptocurrencies, stock market if you have money into Gold, Silver, Bitcoin, Shares, etc... And also, reading Forex news it's important to leading the situation of the economy actual.
Guys, this is it. This it's a way to get a cashflow plan in your life. If you like this educational content, I invite you to share this analysis with traders, enthusiastic, experts, or friends that should to know this educational content of the high quality.
Crypto Market Update For the past 2 days, BTC has been trying hard to break the upper trendline coming down from 64K. With the initial hype and buzz around EIP-1559 gradually receding, crypto markets are looking increasingly weak. A correction appears imminent.
ETH rose 12% in the first 2 hours of the introduction of the EIP-1559 protocol. To put this into perspective, even with this new protocol in place, the total value of tokens to be burnt in a year is approximated around 5 Billion dollars which appear to be a number of extreme proportions, but compared to ETH's current market cap, means only around 2% of the total value. Per year. And yet, what we saw yesterday was around 30 Billion dollars being put into the cryptocurrency in less than 2 hours. People also seem to be completely ignorant of the abrupt reduction in mining revenues that the Ethereum ecosystem currently faces. This is precisely why I think the current markets are bound for a correction.
On the other hand, we have no idea how bad Tether's actual financial woes are. I was made aware that just yesterday, 1 Billion dollars worth of tether was transferred to Binance before this substantial bubble we are currently in, came into being. You can only imagine what is going on.
In the long run, however, I'm massively bullish when it comes to ETH. The new protocol, combined hopefully with measures to retain miners and developers in the Ethereum ecosystem, will surely usher a golden age in the world of cryptocurrencies and the way we treat, organize and store our financial wealth.
BINANCE:ETHUSDT COINBASE:BTCUSD
Thoughts on BTC movementThe past few days have been great for the crypto market overall. BTC is up more than 10% since the visit to 29k and that too without any short-term dip or revisits, which is the exact kind of event that makes me wonder whether this pump is justified or not. The bulk of the buying was due to the buzz around the recent "The ₿ Word", which did not yield any successful results, which is why I think the shown path is likely to be followed. Hopes remain high (I've shorted anyway). Let's see how it turns out. BINANCE:BTCUSDT BINANCE:BTCUSD
SUSHI Rising wedgeSUSHI is currently forming a rising wedge that is, fundamentally, bearish in nature. Coupled with the fact that BTC's recent rapid recovery was more or less fuelled by "The ₿ Word" conference with high expectations (which were not met), SUSHI is looking bearish, at least in the short term. One might consider shorting it at the current level (I already have) and have SL in profits once the mark price is sufficiently lower than the entry price.
RSR/USDT X10 From Now !*DEFI
Reserve Rights (RSR)
Rank 100
Max Supply 100 Bn
Circulating 13.6 Bn (13,6% of 100%) - Big potential
Goal 1 : X2 From Now - Near mid-end of Summer 2021
Goal 2 : X10 From Now - Near May-June of 2022
Don't Forget subscribe, i Will be adding more coins - soon.
Profits to everyone!
Peter Lynch Quotes on Stocks . Wisdom.Peter Lynch Quotes on Stocks
1. In stocks – as in romance – ease of divorce is not a sound basis for commitment.
2. The key to making money in stocks is not to get scared out of them.
3. There's no shame in losing money on a stock. Everybody does it. What is shameful is to hold on to a stock, or worse, to
buy more of it when the fundamentals are deteriorating.
4. Behind every stock is a company. Find out what it's doing.
5. Owning stocks is like having children -- don't get involved with more than you can handle.
6. If you don't study any companies, you have the same success buying stocks as you do
in a poker game if you bet without looking at your cards.
7. Average investors can become experts in their own field and can pick winning stocks as effectively as Wall Street
professionals by doing just a little research.
8. You have to keep your priorities straight if you plan to do well in stocks.
9. The basic story remains simple and never-ending. Stocks aren't lottery tickets. There's a company attached to every share.
10. People who want to know how stocks fared on any given day ask, "Where did the Dow close?" I'm more interested
in how many stocks went up versus how many went down. These so-called advance/decline numbers paint a more realistic picture.
11. When people discover they are no good at baseball or hockey, they put away their bats and their skates and they take up amateur golf
or stamp collecting or gardening. But when people discover they are no good at picking stocks, they are likely to continue to do it anyway.
12. If you hope to have more money tomorrow than you have today, you've got to put a chunk of your assets into stocks.
Sooner or later, a portfolio of stocks or stock mutual funds will turn out to be a lot more valuable than a portfolio of bonds or CDs or money-market funds.
13. Investing in stocks is an art, not a science, and people who’ve been trained to rigidly quantify everything have a big disadvantage.
14. All the math you need in the stock market you get in the fourth grade
GOLD (XAU/USD) – Week 4 - November lows Incoming pt. 3After seeing an unexpected jump on Wednesday, when Joe Biden was being sworn in as president of the United States, the $1,870 oz level turned out to be a strong resistance point for Gold as it retraced back to the $1,850s area.
Last week, we pointed out in our Gold analysis that we expect a consolidation to start in order to gather up enough price momentum so it can retest the November lows. So far, so good, the price went as we forecasted in our previous analysis, as our expectations for this week stand towards a continuation of the 4H bearish trend.
Trade with care.
Best regards,
Financial Flagship
Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move.
USD/CAD – Week 4 – Break-out needed.The “Loonie” traded mixed against the US Dollar this past week, but its wider track of appreciation that started in March 2020 remains intact. The Canadian Dollar received a boost after the hawkish comments from Canada’s Central Bank Governor, who expressed that the country shall not need as much Quantitative Easing over time under their base case.
Our technical analysis points towards a daily timeframe bullish corrective move that should start soon for this pair, having the potential to touch the 1.30 levels.
Keep an eye on the Canadian GDP data for November that is set to be released on Friday, as it will provide both an update on how domestic growth is behaving while also giving a hint in how the global economic recovery from Covid-19 is progressing.
Trade with care.
Best regards,
Financial Flagship
Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move.
AUD/USD – Week 4 – Bigger degree correction startedThe Australian economy has continued to strongly recover, as the unemployment rate slid to 6.6% in December while the country’s composite PMI data for January rose to 56. This was mostly influenced by the successful suppression of Covid-19 that has allowed Australia to return to a level of normality. Looking ahead to this week, Q4 inflation data will be eyed by investors on Wednesday to determine the potential path for Australia’s monetary policy.
Our technical perspective points out for a weaker Australian Dollar, with a bigger bearish sideways move on the cards. At the moment, we are hanging around the upper trendline, with a slim chance to break the top again. However, we will wait for a solid breakout underneath the trendline in order to confirm the start of the downtrend.
Trade with care.
Best regards,
Financial Flagship
Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move.
CHFJPY IdeaHi Traders!!
Here's my ChfJpy Idea!
After a strong bearish impulse, the market slowed down, creating an accumulation, did a spring of the accumulation and is now going up.
It created a Wolfe pattern, which is a strong confirmation, and I would like to see a come back to the area where I have my entry to test the number 3 of the wolfe pattern, to go long.
Like and comment with your opinion about it. 📊📊🤝🏼🤑🤑📈📉
UNDERSTAND THE EURODOLLAR!THE EURODOLLAR FUTURES CONTRACT REFLECTS THE L.I.B.O.R. INTEREST RATE (A BENCHMARK FOR THE INTEREST RATE AT WHICH MAJOR BANKS LEND TO EACH OTHER)!
WHEN THE PRICE OF THE CONTRACT INCREASES, THE L.I.B.O.R. INTEREST RATE IS DECREASING, WHEN THE PRICE FALLS, IT IS INCREASING!
THE PERIOD I HAVE HIGHLIGHTED IN THIS POST IS THE PERIOD OF DOLLAR ILLIQUIDITY THAT OCCURRED IN THE LATE 00s-EARLY 10s!
AS THE FEDERAL RESERVE INTERVENED AND PROVIDED LIQUIDITY, L.I.B.O.R. WAS SUPPRESSED, AND THE SIZE OF THE INTERVENTION ALMOST PUSHED THE RATE TO 0!
THE SIZE OF THE INTERVENTION IS IMPORTANT IN THAT IT REFLECTS THE SIZE OF THE PROBLEM, INDICATING THAT THE GLOBAL LACK OF DOLLARS WAS SEVERE!
WHILE THE INTERVENTION SUCCEEDED IN SUPPRESSING L.I.B.O.R. OVERALL, THERE WERE SEVERAL PERIODS DURING WHICH THE LACK OF AVAILABLE U$Ds CAUSED LENDING BETWEEN FINANCIAL INSTITUTIONS TO CONTRACT, INCREASING L.I.B.O.R., CAUSING A NUMBER OF PROBLEMS AND FORCING FURTHER ACTION BY THE FEDERAL RESERVE!
THE 2008 GLOBAL FINANCIAL CRISIS WAS NOT NECESSARILY CAUSED BY A REDUCTION IN U.S. HOME PRICES, BUT BY A SYSTEMIC BANKING DOLLAR SHORTAGE!
THE LACK OF U$Ds REMAINS, AND HAS EVEN INCREASED, HOWEVER ENTIRE NATIONS ARE AT RISK OF SUFFERING THE CONSEQUENCES, NOT ONLY THEIR BANKS!
NOW THE IMPORTANT QUESTIONS ARE:
1. IS THE GLOBAL ECONOMY NOW DEPENDENT ON THE FEDERAL RESERVE PROVIDING NEW U$Ds TO AVOID A COMPLETE DEFLATIONARY COLLAPSE? (MOST LIKELY YES)
2. IS THE FEDERAL RESERVE ABLE TO SATISFY THE INTERNATIONAL DEMAND FOR U$Ds, NOT IN TERMS OF AMOUNT, BUT IN TERMS OF DEPTH, REACHING FINANCIAL INSTITUTIONS AND CORPORATIONS NOT DIRECTLY TIED TO THE MAJOR U.S. BANKS? (QUITE POSSIBLY NO, BUT THEY WILL TRY THEIR HARDEST)
3. IF WE ASSUME THIS IS THE DEATH RATTLE OF THE DOLLAR'S WORLD RESERVE CURRENCY STATUS, WHICH IS THE MOST LIKELY OUTCOME, THAT IT IS INFLATED AWAY OR THAT IT IMPLODES ON ITSELF? (I WOULD ARGUE GIVEN THE FED'S ACTIONS, THAT IT WILL BE INFLATED AWAY)
4. REGARDLESS OF HOW THE LOSS OF RESERVE CURRENCY STATUS OCCURS, A CONSEQUENCE OF THIS PROCESS WILL BRING ABOUT A COMPLETE SELL-OFF IN THE U.S. TREASURY MARKET, FORCING THE FEDERAL RESERVE TO COMPLETELY MONETIZE THESE BONDS TO PREVENT INTEREST RATES FROM RISING: IF THIS UNFOLDS, CAN ANY OTHER POSSIBILITY BUT HYPERINFLATION BE CONSIDERED? (NO)