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Fundamental Analysis

TRADING RULES FROM REAL MARKET GURUSAll beginner traders, having received their first losses in the market, start to scramble in search of "golden rules" of trading or proven solutions from recognized gurus of financial markets. Basically, having received basic knowledge of trading and having traded for a few days on a demo account, they open a real account and deposit, sometimes, quite large sums of money into it. In most cases, the money is either partially or completely lost in a short period of time. It should be understood that trading is a serious work. It requires not only desire, but also free time and emotional expenditures. As in any job, young specialists turn to the experience of their professional colleagues, studying their experience and various effective techniques. Trading is no exception, where there are also plenty of professionals and real gurus whose experience should be studied. We will look at rules from world-famous traders. Rule #1 from Warren Buffett "The market is a device for transferring money from the impatient to the patient" Great words, aren't they? In the market with profit remains the one who knows how to wait patiently. Before you open a trade, you need to do a thorough analysis. Study all the factors that influence the trading instrument at the current moment of time, what will influence in the short and medium term. Calculate the support and resistance levels, etc. Only after that, start searching for the most promising point of entry into a trade. Do not rush to open a trade if there is no signal to open a trade. Patience is also necessary when fixing profits. "Let profits grow" thee say. Wait until the dynamics of movement does not begin to decrease, and the strategy does not begin to signal a change of trend. Only in this way you will be able to earn the maximum on each price movement. After making a profitable trade, take a break for rest. Those who rush in the market, sooner or later lose their capital. Rule #2 from Larry Connors "I get real, real concerned when I see trading strategies with too many rules" Everything brilliant is simple! Each of us is probably familiar with this expression. It is also applicable to trading on financial markets. If, again, we pay attention to trading gurus, we can see an interesting fact - all of them mostly use very simple trading systems (TS). Some of them use their own author's TS, some of them use existing ones that have been tested for years. Take Alexander Elder, who is the author of the "Three Screens" strategy. His system is as simple as possible and uses several standard technical indicators built into any trading platform. Anyone can master Alexander Elder's system, and due to its effectiveness, the TS is used by tens of thousands of traders around the world. Do not try to find or independently develop a mega-complex trading system. The more "elements", indicators, etc. in it, the more false signals it will produce. It will be quite difficult to find the only true signal among them. Your system should produce one or more signals, when they coincide, you open a trade. It is very important, as we pointed out in the first rule, to be patient and wait. Rule #3 from Peter Lynch “In this business if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.” Peter Lynch, a world-famous American investor, was also a follower of simple trading and market analysis techniques. What did the guru wanted to emphasize in his statement? First of all, a large number of beginner traders stay in a delusion for a long time. They think that it is possible to achieve such a level of analysis that will allow them to make 100% forecasts all the time. The market is volatile. Sometimes there are trading situations when the market goes against technical and fundamental analysis. It is impossible to predict such market behavior. Secondly, because of this misconception newbies try to achieve only profitable trades on the market. So that there was not a single losing one in their account history. As a result, they try different strategies, read tons of books on market analysis, but still lose money. As a result, someone "gets an idea" and starts to understand what Lynch was talking about, and someone just quits the market. Rule #4 from Henrique M. Simoes "In trading, the impossible happens about twice a year" In the fourth rule, we will focus on market volatility. These market "impossible" situations do occur periodically. For example, a trading instrument has been growing for a long time, and analyses signal us about the trend reversal. However, the instrument is still growing, breaking all levels. It happens that even some fundamental event, which 100% should lead to a trend reversal, on the contrary, accelerates the current trend even more. There are also more unpredictable situations, when the currency can rise in price twice within a few seconds. An example is the situation with the Swiss franc, which at the beginning of 2015 strengthened against the U.S. dollar by almost 3000 points. On that day, not only a large number of traders around the world went bankrupt, but also several large Western brokers. Yes, such situations are very rare, once in 5-10 years, but they happen. How to protect against them? If we consider the example with the Swiss franc, a stop-loss would not have saved you, because the price changed at once. The only thing that could really help is to open trades with a small volume that can withstand such a strong movement. Rule #5 from Jesse Livermore “There is time to go long, time to go short and time to go fishing” If you don't enjoy fishing, play a sport or make a field trip outdoors. You should definitely take a break from the market. Especially if you have a series of losing trades. Beginners are not ready for such psychological pressure, so regular breaks should be mandatory. The market will not go anywhere and will not run away, you can always return to it and continue trading. Large and experienced investors are well aware of this, so they do not forget to allocate enough time for rest. The situation is completely different for beginner traders. These two categories of traders mainly trade intraday or use scalping, so they have to constantly monitor the market sitting behind the monitor. As a result, psychological fatigue accumulates, the trader's eye gets tired and he starts to make mistakes that lead to losses. Be sure to rest, it is a guarantee not only of your health, but also of potential profit in the future. It is extremely important to study the experience of professional traders who have achieved outstanding success in the financial markets. As you can see, many quotes hide not only the entire trading experience collected in one phrase, but sometimes the entire life of the author.
Education
by DeGRAM
4
Shape your future with 7 Trading ChoicesAs you traverse the journey of trading. There are a couple of choices you’ll need to make. Not your spouse, not your kids, not your dog, not your neighbour. You… Every day you hold that bit of power that will shape your unique trading path. Remember, every action we take is a conscious choice. Where we say YES to one endeavour automatically entails saying NO to another. If you did economics, you would know it’s called an opportunity cost. Therefore, it is crucial that you need to say YES and make choice with whatever action is necessary to pave your successful future. Let’s go through some of the choices you need to make. Choice #1: Do you just take the trade? To Trade or Not to Trade, I call this the Hamlet Dilemma When the market lines up a juicy trade, you put your levels in and quantify your position. All that’s left is for you to press the button. If you’re hesitant, I want you to ask ONE thing. Is it a high probability trade or low? If it’s high. Count down 1, 2, 3. Just take the trade. Choice #2: The pick of the trading pops Go to a candy store, there are so many options of amazing candies. But you can’t take them all. You can’t taste them all either. You have to choose. Same with the markets. Thousands to choose from – which one do you pick? Here’s an idea. Choose a day in the week to trade a certain market. Monday stocks, Tuesday indices, Wednesday Forex, Thursday stocks. I don’t know. But condense the work and the watchlists and the markets so they’re BITE size to take and trade each week. Choice #3: Taming the Clock Time waits for no trader. Are you a day trader, where you want to open and close a trade within a day? Are you a swing trader swing trader where you catch and hold waves of market momentum over several days or weeks? Are you BOTH? Your lifestyle, trading experience, and market analysis skills can guide this decision. Tick-tock choose who you are on the clock! Choice #4: Techie or Traditionalist: Trading Platforms When you choose a trading and charting platform, it’s basically choosing a portion of your personality. It needs to suit your lifestyle and personality. You need to choose what colour backgrounds, indicators and chart layout you wish. You must want to enjoy what you see in the charts. You must find that they’re easy to work with and exactly what you need to trade with. Improve your trading skills, chart setups and become a savvy platform trader. Choice #5: Risk It All or Play It Safe: Money Management It’s the eternal trader’s tug-of-war. You get into a trade with the idea that you can lose money, or make money. And the sweet spot is what you need to decide what is best for your portfolio. Easy… Never risk more than 2% per trade. Never risk any money you can’t afford to lose. Play your trading safe in a way that you can preserve and protect your portfolio over the long haul. Choice #6: Trust gut or trust charts The big one is, what choice do you make when you decide to trade. Do you trust your gut or dive deep into data? While intuition can sometimes lead to lucky profitable outcomes. It’s not going to happen every time. It’s going to resemble gambling more than trading. And when you hit that losing streak and don’t have a solid trading system to trust and work on, it’s game over before you know it. The market doesn’t work on emotions. The market works on analytics, numbers, volume, demand and supply. So be like the market and you’ll stand a chance. Choice #7: Buy and Hold or Buy and Fold This one is the hardest choice of all. When you get into your trade. And it goes in your favour. Do you lock in profits by closing your trade, as you think it’s going to turn from here? Or do you adjust your stop loss, to protect your portfolio from taking any loss. Or do you just let your trade run according to your trading back-tested stats? Choice is yours. This also requires HIGH experience in trading. Because I still have to decide on these three choices every day when I’m in trades. Obviously, there are many other choices you need to make. But just remember. Everything you do is solely what you choose to drive you to the path of what you desire.
JSE:J200Education
by Timonrosso
📈Golden Cross and Death Cross: Decoding Forex Trading Signals📉 ✅When it comes to analyzing the Forex market, traders often rely on various indicators and patterns to make informed decisions. Two popular patterns that can provide valuable insights are the golden cross and death cross. In this article, we will explore what these terms mean, how they can be identified, and how traders can use them to their advantage. ✅Golden Cross: The golden cross is a bullish signal that indicates a potential uptrend in the market. It occurs when the shorter-term moving average, typically the 50-day moving average, crosses above the longer-term moving average, usually the 200-day moving average. This crossover suggests that the price is gaining momentum and that buyers are becoming more active. Traders often interpret the golden cross as a confirmation of a strong market sentiment, leading them to open long positions or increase their current holdings. It is seen as a positive sign as it suggests that a positive trend is likely to continue. ✅Death Cross: On the other hand, the death cross is a bearish signal indicating a possible downtrend. It occurs when the shorter-term moving average crosses below the longer-term moving average. Similar to the golden cross, the death cross is typically identified using the 50-day and 200-day moving averages. The death cross can be interpreted as a confirmation of a negative market sentiment with increased selling pressure. Traders may consider opening short positions or reducing their existing long positions in anticipation of a downward trend. ✅Using Golden Cross and Death Cross in Forex Trading: While the golden cross and death cross patterns can provide valuable insights, traders should not solely rely on them for making trading decisions. It is important to consider other indicators, fundamental analysis, and overall market conditions. 🟢Confirmation: Traders should look for additional confirmation, such as increased trading volume or other technical indicators aligning with the signal, before entering a trade. 🟢Timeframes: Different timeframes (hourly, daily, weekly, etc.) can produce different crossing signals. Traders should select the timeframe that suits their trading strategy and goals. 🟢False Signals: It is crucial to acknowledge that golden cross and death cross signals are not foolproof. In certain market conditions, they may generate false signals, leading to incorrect trading decisions. Thus, it is advisable to use them in conjunction with other technical analysis tools. ✅The golden cross and death cross are popular patterns used in Forex trading to identify potential bullish and bearish market conditions, respectively. These signals provide traders with valuable information about market sentiment, allowing them to make more informed trading decisions. However, it is important to use these patterns in conjunction with other indicators and analyses to increase the probability of success. Remember, understanding these patterns is just the beginning of the trading journey – continuous learning and adaptation are key to becoming a successful trader. I hope this post was helpful to some of our beginner traders😊 Dear followers, let me know, what topic interests you for new educational posts?
BITSTAMP:BTCUSDEducation
by SignalProvider
7
How to Adapt to the Ever-Evolving Financial Markets – 4 WaysThe only constant with the financial markets is… Change The market is constantly changing in a way that it’s brining: New demand New supply New volume and fresh changes in the complex algorithms. If you want to thrive you need to learn to learn to adapt, evolve and grow with the markets. I want to cover four elements to today’s topic. The Inevitability of Market Change Change is not only constant but inevitable in financial markets. There will always be new elements streaming into the markets from: ~ Global and political events ~ Micro and macro aspects ~ Economic indicators ~ Regulatory shifts, and ~ Investor sentiment These elements are perpetually at work, shaping and reshaping the market. These catalysts can shift the trajectory of entire sectors, leading to volatile market movements. Influx of New Volume on Market Dynamics Every day, the market sees a deluge of new volume. There are new traders and investors constantly joining the financial markets world. And we are seeing an inflow of capital from retail traders, institutional investors, and high-frequency trading firms. The big institutions like Smart Money (banks, hedge funds, brokers etc…) are causing the big volatile moves in the market. The smaller guys – dumb money and retail traders – are also helping with liquidity in the markets. Every transaction is causing a shift in the market. No matter how small it’s the “Butterfly Effect of the financial market”. The Role of Algorithms in Market Evolution In the era of digital transformation, algorithms have become a pivotal part of the financial markets. Algorithmic trading or ‘algo-trading’ employs complex mathematical models to execute trades at lightning speed and frequency. I’m talking about Copy Trader, Robinhood, AI trading bots, EA Expert Advisors and pre-determined automatic mechanical trading methods. This practice is now an integral part of the trading landscape. And they will continue to have an influence in price action, and market patterns. Haven’t you noticed? In the 50s through to the early 2000’s. The markets trended on a more consistent basis. Any monkey could choose a list of good stocks and hold them until they were up 200% – 1000%. But nowadays with derivatives, algorithms, shorts and automatic execution – markets have never been more volatile and more difficult to ride the trends. Always Adapt to Thrive in Changing Markets It’s our job to learn to be more flexible and to adapt to these market conditions. As markets evolve, so must we evolve with them. We need to always: ~ Apply new markets to our watchlists ~ Look for better trading instruments ~ Change the trading strategy to make it more conducive with the environments ~ Always look for the next best broker, trading and charting platform ~ Look for ways to reduce costs and maximise profits. I’ll end off with this. The market is constantly changing, adapting and evolving. We need to embrace the change and not see it as a threat. Have this mentality and you’ll always have the opportunities to improve, anticipate and grow as a trader.
JSE:J200Education
by Timonrosso
5 Stupid Trading Advice PointsA staggering 98% of traders inevitably stumble and tumble into the abyss of financial loss. Why such a high failure rate, you ask? It’s because failed traders try to preach their failures (as they think that’s how it is). They develop these narcissistic methods, where they misguide others and are too blinded by their own failures. Few years later, they’re back in their parents basements playing games or working at Mc Donald’s. I want to share and explore five such stupid advice points that can send even the most promising trading careers down a spiral of regret and loss. Go big or go home – a fool’s motto for financial Russian roulette. In the world of high stakes and adrenaline rush, the mantra ‘Go big or go home’ might sound like a call to glory. It might sound like a quick way to riches. However, when you say this. You’re destined for a financial land mine eventually. Going ‘big’ in trading terms typically means putting a large chunk of your capital into one or a few trades. And yes, it might very well pay off in the short term. It may pay handsomely. But for how long until you blow your entire account? Smart trading advocates a balanced approach, including diversified portfolios and proper risk management techniques. It’s more about ‘Go steady and stay in the game’ than ‘Go big or go home’. The next trade will be better – as reliable as a fortune cookie’s prophecy. This is another common trap. They just took a loss and now they feel, the next trade will be a winner. Nope! This is a dangerous mindset which will lead you to ‘revenge trading.’ Trading is not a series of independent events. Your next trade is not guaranteed to be better simply because you lost the previous one. And we can NEVER predict with certainty which trade will win. You need to approach each trade objectively. Don’t let past performances cloud your judgment. Don’t let a false and fabricated future bring on trading destruction. Learn from past mistakes, certainly, but don’t bank on the next trade as a panacea for all previous losses. Follow your heart – Your heart pumps. Your brain thinks. Stop relying on emotions and gut feelings in a robotic, cold and ruthless market. Emotions can amplify the impact of market volatility. Emotions can make you overreact to market swings. Emotions can make you stick with losing trades for too long. Emotions can cut your profits far too soon. And you can blame evolution. Instinct often plays a role in decision-making. And you need to remember that… Successful trading absolutely needs a systematic, disciplined approach based on logic and solid analysis. Everything happens for a reason – the financial equivalent of seeing faces in clouds. OK this might comfort you in some esoteric aspects of your life. But you need to get rid of this notion with the markets. The financial market is complex and influenced by numerous variables (that have nothing to do with you). Get off your high horse and believe everything revolves around you! Not every price movement has a logical or predictable reason behind it. Instead, you should focus on understanding broader market trends, develop solid trading strategies, and manage your risk effectively. With logic, with discipline, with mathematics, with statistics – NOT WITH ESOTERIC REASONS! Work harder and you’ll win more – because nothing says ‘smart trading’ like turning a strategic marathon into a frenzied sprint. While hard work is essential with business and with most areas of your life. Trading is a game where quality trumps quantity. The ‘work harder and you’ll win more’ advice often leads traders to overtrade, mistakenly believing that a higher frequency of trades equates to higher returns. In trading, it’s more important to work smarter, not harder. In trading it’s more important to think quality, not quantity. In trading it’s more important to think high probability than any probability. It’s about making well-informed trades, not just more trades. So let’s sum up the stupid trading advice points you need to watch out for. Go big or go home – a fool’s motto for financial Russian roulette. The next trade will be better – as reliable as a fortune cookie’s prophecy. Follow your heart – Everything happens for a reason – the financial equivalent of seeing faces in clouds. Work harder and you’ll win more – because nothing says ‘smart trading’ like turning a strategic marathon into a frenzied sprint. If you can think of any more, let me know in the comments.
JSE:J200Education
by Timonrosso
Keep Trading simple:Keep Trading simple: Buy at support. Short resistance. Buy breakouts. Shorts breakdowns. Buy pullback in uptrend. Short in downtrend. Do these and you will imporove your trading, imensely. Trading terms: Buy at Support: Support refers to a price level at which a stock or any other financial instrument has historically had difficulty falling below. It is considered a level where buying interest typically outweighs selling pressure, leading to a potential rebound in price. Buying at support means entering a long position when the price reaches a support level, with the expectation that it will bounce higher. Short at Resistance: Resistance is the opposite of support. It is a price level at which a stock or any other financial instrument has historically struggled to rise above. It is considered a level where selling pressure tends to outweigh buying interest, potentially leading to a reversal or a downward move. Shorting at resistance means entering a short position when the price reaches a resistance level, anticipating a decline in price. Buy Breakouts: A breakout occurs when the price of a stock or any other financial instrument breaks through a significant resistance level or a well-defined trading range. Buying breakouts involves entering a long position once the price surpasses a resistance level, with the expectation that the breakout will lead to a sustained upward move. Short Breakdowns: A breakdown happens when the price of a stock or any other financial instrument falls below a significant support level or a well-defined trading range. Shorting breakdowns involves entering a short position once the price breaches a support level, anticipating a continued downward move. Buy Pullback in Uptrend: In an uptrend, prices tend to rise in a series of higher highs and higher lows. A pullback refers to a temporary decline in price within the overall uptrend. Buying pullbacks involves entering a long position when the price retraces to a support level or a previous level of consolidation, with the expectation that the uptrend will resume and the price will rise again. Short in Downtrend: In a downtrend, prices tend to fall in a series of lower highs and lower lows. Shorting in a downtrend involves entering a short position when the price rallies to a resistance level or a previous level of consolidation, with the expectation that the downtrend will continue and the price will decline further. It's important to note that these trading ideas are based on technical analysis, which focuses on historical price patterns and trends. However, successful trading involves a combination of technical analysis, fundamental analysis, risk management, and market knowledge. It's always advisable to thoroughly research and understand the market and seek professional advice before making any trading decisions.
NSE:NIFTYEducation
by khushaljain023
2
Guide to VVIX/VIX Ratio Regimes and Corresponding Investment StrMarket volatility and its expected future changes, as indicated by the VVIX/VIX ratio, can greatly impact investment decision-making. The following guide provides insights into different regimes of this ratio, their implications on market conditions, potential sector rotations, and additional investment strategies that investors might consider. High Ratio (High VVIX, Low VIX): In this regime, apparent calmness belies underlying uncertainty about future volatility. This suggests a potential underestimation of future risks. Sector Rotation: A strategic shift towards defensive sectors—Consumer Staples, Utilities, and Healthcare—can help. These sectors are often resilient during uncertain times due to consistent demand for their services and products. Options Strategies: Look at strategies like long straddles or long strangles. These profit when the underlying security experiences a significant price move, regardless of the direction. Risk Parity: Adjust your portfolio by distributing risk evenly across different asset classes rather than allocating based on expected returns. Bond Laddering: This involves buying bonds that mature at different times. It provides regular income and reduces the risk of being locked into a low-interest-rate environment. Low Ratio (Low VVIX, High VIX): In this regime, high current market volatility is expected to continue, signaling turbulent times ahead. Sector Rotation: Defensive sectors, including Utilities and Consumer Staples, provide stability during turbulent times. For those with high risk tolerance and a long-term perspective, cyclical sectors like Technology, Consumer Discretionary, or Industrials could present buying opportunities. Volatility Trading: Consider securities that are designed to track volatility, such as VIX futures, options, or volatility-focused ETFs and ETNs. Dollar-Cost Averaging: This strategy involves investing a fixed dollar amount in a particular investment on a regular schedule, regardless of the asset's price. Over time, this can result in a lower average cost per share. Distressed Assets: Market turbulence often results in some assets being undervalued or "distressed." Savvy investors may find bargains in this space. Stable or Mid-Range Ratio: A moderate level of expected market volatility signals a stable market environment. Sector Rotation: Investors might consider cyclical sectors—Technology, Industrials, and Consumer Discretionary—that are likely to benefit from economic growth. Buy and Hold: This strategy involves buying stocks or other assets and holding them for a long period. It is based on the belief that in the long term, financial markets provide a good rate of return despite periods of volatility. Growth Investing: This strategy involves investing in companies expected to grow at an above-average rate compared to other companies. Momentum Trading: This involves buying securities trending up and selling those trending down. Stability can enhance the predictability of these trends. Understanding the nuances of the VVIX/VIX ratio and its implications on market conditions can help investors align their strategies with market volatility regimes. Whether rotating sectors or applying different investment strategies, it's important to remember that all strategies carry risk and must align with individual investment goals, risk tolerance, and market outlooks. As always, it's important to consider a variety of market indicators and economic factors before making investment decisions. This guide serves as a stepping stone towards informed investment decision-making during different market volatility regimes.
VEducation
by kesor6
3
BULL-BEAR-ACUMULATION IN THE MARKETS AND INTERNAL DYNAMICS /BTCBULL-BEAR-ACUMULATION PERIODS IN THE MARKETS and INTERNAL DYNAMICS OF CRYPTO MARKET These phases follow each other, although their duration is different. In this way, cycles are formed. Bitcoin has been following a 4-year halving cycle since 2008. 4 years constitute a cycle. Within 4 years, bull-bear-accumulation processes take place. As long as people and markets exist, these cycles will always continue. There will always be new winners and losers. This is the purpose of the stock market. For success: Firstly, you need to understand what the stock market is, its structure and periods. You should know that the falls and exits will end somewhere, you should know the trends. The crypto market is still the most risky market in the world. We all know that the losses are very big as well as the gains. People who cannot take this risk should not be in this market. I will also add parts of my old articles where relevant. ACCUMULATION (IN SHORT, TRANSITION PERIOD, MATURATION OR COMMODITY ACCUMULATION ZONE) A dull, no-earnings zone for new traders, following the sharp declines in the bear period and partly in the form of a more horizontal saw. For large investors, it is the pre-bullish period, when they gather goods at low prices without making much difference to the market. Depending on the internal dynamics of the market, this period may be longer or shorter than the bear Disbelief and suckers rally periods on Wall street cheet. It is the region where most small investors fall out of the game and get the last slap. There is an intense flow of bad news in this region. Those who do not know much about the market get fed up with them. In this period, which is already horizontal and unprofitable, a lot of shaking and reverse movements are made Those who can overcome this part are now on their way to earnings. Remember, the purpose of this part is to collect your goods cheaply in order to sell them more expensively in the future. So the market does not pity anyone here. Do not expect mercy !!! The best thing to do in the accumulation zone is this: to be patient and cost as much as possible. At this point, the thought of selling and buying a little lower can lead you to a mistake. You can see this from those who sell around 16-17-18k because it will fall to 10K When you reach 25k levels, thoughts of whether I missed it, whether it will go from here, whether I should enter will tire you out Do not try to look for a bottom point. Trend bottoms, turning points can be detected more or less. For example, bitcoin has been falling since $69K. You can say that it is appropriate to cost under 20k You have the chance to create costs under 20k for about 9 months, a very sufficient time. So far we have seen $ 15.5k as the lowest point. Purchases should have been made at those levels. Will 13 come? What if it comes, what difference will it make? You're trying to get rich with the $2,000 in between, you can't. The endeavour is pointless. Also, get to know a little bit about what you are investing in. Do not jump in with gas, with a moment of excitement, just because someone said so. Give importance to past experiences. Too much experience is important in the crypto market. Did the bull come? You always hear this question. This is a process and I will try to explain this process in my own way. The bull has started from the red candle at the bottom to the next green candle. The bull period is actually a sufficient process to make money. But the feeling it leaves in people is that it is very short. Firstly, we want it to last longer, we can't get enough :) secondly, it ends quickly because we join the majority towards the end. The rise periods of altcoins are relatively shorter than bitcoin. Reasons for this; their historical past is short, many of them are cyclical (trend) In the most glamorous last periods of the Taurus period, many phenomenal expert analysts emerge. Since their numbers are higher than quality people, the number of people they interact with is also high. New entrants have no chance to make this distinction In the end, they pay for it with their money. This is the same in Turkey, the USA and Japan. Within some limits (rules), the same situation is the same even in country stock exchanges. Look at the stock market right now, you can already understand directly It is the inevitable result of an environment where money is made from money. Manipulation, speculation is a must (I am not praising, I am stating the existing situation). Fast earnings high excitement easy money environment also breeds scammers and victims. For someone to make money, large groups must lose money. Usually the big losers are uninformed new investors. In order for the last losers to win, new last comers must enter the market (new cycle). The bull period is why novices are more courageous and earn more at that stage. Because they have no previous negative experiences and they have started their transactions in a positive environment, everything is rosy Whatever you put your hand on, it's going up. So the market allows it. The person who has experienced the bear market for a long time cannot show this courage because he has been burned once. He approaches every project cautiously, does not trust easily. He is overprotective. His first aim is to protect his money, whether he realises it or not. It is not easy to get out of the psychology created by prolonged declines. This psychology may continue until the increases are finalised and the bull trend is accepted. The biggest motivation of the bull period is to lock as many people as possible at peak prices. The bear season is to buy back the goods locked at the lowest prices. That's why great news comes at the top and the worst destructive news comes at the bottom. It's infallible. Stock market bankruptcies, sinking coins. Hacking incidents, country bans, delist fury, etc. You have to wait. If you entered at the end of the bull market and you are going to continue, you have to. But by taking advantage of this wait. You don't have to learn everything. Even if you learn 2 indicators in great detail is enough. It is difficult to become a master in a short time, experience requires experience, but if you learn to use 2-3 data in the best way, your success will increase. It is not important to win in a month in a week. It is important to be able to earn and protect it in a year or two years. Consider it as investment and savings, not gambling. What needs to be done to win is plain and simple, the difficult thing is to apply them BEAR People who enter the market at the tail end of the upturn usually lose, and then spend the prolonged downturn (bear period) in a bad psychological state and move away from the market. Crowded groups come to the market when the price is at its highest, everyone is talking about the market, advertisements and good news are abundant and enthusiasm is at its peak. This period is the last stages of the rise. There is no one left to enter the market anymore At first it is not recognised that this is the top. The decline deepens over time. As the price falls, the new investor starts buying at unsuitable points in order to reduce costs. As the decline period extends, the loss grows. The belief that it will never rise again increases. What has happened has happened and the investment has melted. Depression and anger vary according to the loss. Most people leave the market at this point with great loss. Coins that they have been holding without selling since the peak, usually sell angrily at the bottom levels. Some also lose hope and interest. Because the money has fallen so much that its increase will not mean anything. Maybe you are saying this right now: I wish I had bought bitcoin at $3000 in the past. When I first entered, I wish I had bought it at $ 100. It wasn't that easy. It was not that day either. In that $ 3000 you said you would have bought, people were sinking and crying blood. It was as bad that day as it is today. I would even say that 2018 was a worse year than that. No one can promise you that the market will turn from this or that point We can make mathematical predictions with all the data we have. Although the idea that it returns from this point and I will make the purchase from there seems appropriate at first, it is an incomplete approach. Our emotions can be manipulated, but so much technical data, graphics, indicators cannot be manipulated. Read, analyse and try to trade by leaving your emotions aside. It is difficult for someone who is constantly experiencing losses to think objectively. But somewhere it is necessary to reset the mind and look from the outside. This is what must be done to win. After all, the money was somehow lost We'll draw a line in the past and look to the future. From now on, you will think that you are starting from scratch with the money you have left, you will adjust your psychology in this way. Past mistakes will only remain as a lesson. Especially near the bottom, the number of people who say that there is much lower increases considerably. Because trust has been lost. The investor cannot think without being affected by the market. (As it will go further as it rises, it will go further as it falls). It is difficult to overcome once you lose and get out of this psychology. Emotions come into play. You can be a prisoner of ambition and anger Bottom points have to be like this. Old excitements and targets are forgotten. despair and apathy take over the small investor (us). The 10x 100x's said at the top are replaced one by one by targets lower than the level we are at. What you see around you right now. Have you ever heard of targets like 12k- 9k- 7.5k last year? At least I didn't hear from anyone when I was over 45k. The markets we need to examine are not just altcoins and even btc. past data will be light ahead of us. what I mean by the past, world stock markets. especially nasdaq, dow, dax, nikkei should be examined. Let's go back to emotions. I see this a lot in the market, there are those who talk about coins with enthusiasm and those who hate coins. These are inanimate beings, do not approach with hate or love. Losing from a coin is bad, winning does not make it good. #altcoin Or the fact that a coin has not increased for a long time does not mean that it will definitely not increase in the future. There is no certainty at this point. Yes, it may be a finished project or it may just be waiting for its time to come. We stay away from positive or negative certain judgements. Flexibility gives you an advantage. Now let's see how many days the rise and fall periods lasted between 2009-2023 in btc. As I mentioned before, there is never innocence in the stock market and making money from money. The market is never free. "But this time it's different" has been said by every person in every period. And it has always failed. People who have experience in the markets for a long time know this very well. Each period creates its own special conditions. But the result has never changed. At some point, the market ends its decline and starts its new cycle. With new rises, the bad news is immediately forgotten. The loser loses and the market continues on its way. The market is never innocent. There is no emotion. There are always winners and losers. It will be the same in the future. Well, I told so many negative things. Is it so hard to win, does everyone have to lose? No, my purpose in telling you these things is not for you to despair. You need to know what you are in for and you need to understand the rules of the game. Certain rules for winning. There are multiple ways of earning. But not for everyone -Swing -Margin (pro) -Lie down for a long time -News orientated trade I do not do margin trading (I do not recommend it to anyone who is not a professional). I can say that I am a trend follower. I come to the market at the bottom areas, create an average cost, and slowly sell and exit at the top where the hype is experienced. In most of the BTC and total marketcap charts, I show buying and selling points in the long term. I never try to buy from one place and sell from one point. I know this is futile. I aim to increase the amount of coins I have in the trend by cross trading with each other or with usd. I am never in a hurry. I know what my goals are. I also leave flexibility to positive and negative extremes. The rest is only a matter of time. I create more than one option for myself so that I do not remain empty-handed in case some possibilities do not materialise. Remember, making money from Bitcoin is becoming increasingly difficult, the profit rate is decreasing, it is becoming more stable. When we examine the old btc movements and structures; while exhibiting simple and relatively more predictable movements, As time passes, these structures become complex and difficult to predict in the short term. Also, do not buy coins because no one says so, do not enter the transaction Know why you do what you do and be aware of the consequences. These may sound like clichés, but these are the facts. Words like 50x-100x may sound very attractive to you, but no one is a magician. No one has a secret 100x information. These are things that are put forward to attract attention for interaction. Of course, there will be coins that will make 100x, but you can't hear them from somewhere by chance. Finding a coin with 100x potential is only possible with very good fundamental analysis. And it takes a lot of patience to get it. In the past, many beautiful projects have done such xs. And this business is becoming increasingly difficult. There are always tips in both the stock market and the crypto market. And most of them are born and spread as a result of speculation. You can't make sustainable profits on tips. Listen, but don't plan on tips (as in don't believe in fortune telling but don't do without fortune telling) Stock investment is not a match where every shot is a goal. You don't need to hit every ball. You can be patient and bide your time. -Warren Buffet Do not deify anyone in this market. You should get the information you need and move on. The story starts like this: Too many people are following this person, so if I'm in the market, I might as well listen to them. #btc #btc I almost don't know anyone in the stock market who doesn't follow someone on social media. Everyone's path is definitely falling. ''The general public has no idea what is going on, and is even unaware that it has no idea." Noam Chomsky. We can definitely use this word for the crypto market. PSYCHOLOGY Prices and indicators are not the same for everyone. I mean this; we look at the same chart at the same time and think different things. This is because of the positive and negative experiences of those people. Seeing the bitcoin chart below 20k, some see it as an opportunity and some see it as a great destruction. The same way that the price below the 200-week average in btc is a great opportunity for some and a fear indicator for others. If the person is not suitable to understand this, you cannot convince even if you present 10 evidence. Price movement should not be looked at as a belief, it is mathematics. sooner or later, whatever the target is, it will be realised. Since prices do not move according to people's feelings, those who are disbelief at the beginning of the bull and overconfident when the trend ends lose. Your emotions will only mislead you in this market. you have to be a robot. when buying a coin, remember this: you should do good technical and fundamental analysis. you should calculate not only cost but also time. Why did you buy that coin? I don't know, he said, he said buy it, so I bought it, it fell. I couldn't sell it. There can be no gain in this way. At least from your point of view =) In this market, luck laughs at you very little. Everything else is knowledge, experience + patience. NEWS Sometimes news is also used when the time comes to change the direction of movement. For sharp turns and sudden price increases, it is necessary to give people big news to talk about. Sudden drops and exits without a reason cause the system to be questioned and undermine confidence for no reason. But if people believe in a reason, the game continues. In other words, if people can make sense of the stake, there is no problem for the market maker. People want to hear something. The media is ready there immediately. Why it fell: this and that happened, that's why it fell. Most of the time it's not even relevant. The mainstream media never talks about the facts, what is going on behind the scenes, technical analysis, things that are useful for us. At the lows, bad news is pumped in to discourage you even more, and at the peaks, good news is pumped in to attract more new investors and to lock up goods from the top. This is how the market is managed by media power. Paris hilton's laser eye, then it turned into a trend. harry potter author tweeting about btc. Elon musk-tesla Elon-doge Celebrities suddenly becoming bitcoiners and sharing it on the internet Look at BTC trend analyses on Google, how similar the charts are! Remember, the stock market is not just an investment. It is a kind of struggle to make money. The crypto market is literally a stock market. In fact, according to me, it is the most difficult stock exchange in the world. There are no prohibitive rules for those who want to take your money from your hands. No one pities you. They take your money without seeing and recognising you. -Who can't win in the bullfight. Those who hurry too much in profit those who enter pump-dump organisations from the top Those who say that they can't go and constantly change coins and miss what they have Those who tie all their money to a coin Those buried in more altcoins than they can manage Those who are constantly chasing signals left and right, waiting for tips from fake masters they do not know in paid private groups. Those who consume all their money in scams while chasing gem. In addition, those who cannot take risks, very stressful and cowardly investment, those who drown in detail cannot win (or win little) in the bull. Those who do not take adequate precautions in security and are hacked. That's all for now. Thank you.
Education
by Cryptollica
2
💰 Exploring the Potential of Investing in Precious Metals.Throughout the ages, the allure of rare and captivating metals like gold, silver, platinum, and palladium has remained unwavering. Their scarcity, exquisite aesthetics, and enduring nature have made them objects of desire. While these metals are commonly associated with ornamental jewelry, their utility extends far beyond adornment, finding applications in various industrial and technological realms. Moreover, precious metals have long been regarded as a safeguard against inflation and a sanctuary for investors amidst economic upheaval. Consequently, the trading of these invaluable commodities has evolved into a pivotal component of the global financial landscape, witnessing the exchange of billions of dollars each passing day. In this exposition, we embark upon an exploration of the fundamentals of precious metals trading: the mechanisms at play, the influential factors shaping prices, and the diverse avenues through which investors can partake in this exhilarating and ever-evolving marketplace. The vast realm of metals is neatly divided into two distinct groups: ferrous and nonferrous. The former encompasses iron, manganese, and chromium, although experts occasionally question the inclusion of the latter metal. This classification extends to alloys containing elements from these primary ferrous metals. Understanding Precious Metals From an official statistical perspective, ferrous metals command an overwhelming share, reaching up to 90%. One would naturally assume that such metals enjoy significant demand on stock exchanges. However, in reality, a majority of transactions occur outside the realm of these exchanges, transpiring directly between buyers and sellers. Consequently, the ferrous metals market and its liquidity do not boast the most favorable conditions. Within this category, certain metals hold a prominent position in exchange trading, namely: gold, silver, platinum, palladium, copper, aluminum, zinc, and nickel. Amongst these, gold and silver reign as the favored choices among traders and investors. To comprehend the market of precious metals in its entirety, it is imperative to examine it through two essential lenses: the functional aspect and the institutional perspective. Ultimately, the market represents a harmonious amalgamation of diverse spheres, encompassing not only extraction, production, and processing but also the final sale to consumers. The price of precious metals is subject to the influence of various factors, encompassing: Supply and demand dynamics: The fundamental principles of supply and demand exert a significant impact on precious metal prices. Limited supply coupled with high demand typically drives prices upward. Economic indicators: Economic data, including inflation rates, interest rates, and GDP growth, can shape the price trajectory of precious metals. For instance, during periods of elevated inflation, investors often seek refuge in precious metals as a store of value, leading to increased demand and subsequent price appreciation. Geopolitical events: Geopolitical occurrences like wars, trade conflicts, and political instability have the potential to sway precious metal prices. When geopolitical tensions escalate, investors frequently turn to precious metals as a safe haven, fueling demand and subsequently driving prices higher. Currency fluctuations: Since the price of precious metals is commonly denominated in US dollars, fluctuations in currency value can impact metal prices. For instance, if the US dollar strengthens, precious metal prices may experience a decline as they become relatively more expensive for buyers using other currencies. Investor sentiment: The sentiment and outlook of investors can play a vital role in shaping precious metal prices. Bullish sentiment may lead to increased buying activity, resulting in price surges. Conversely, bearish sentiment may prompt investors to sell their holdings, leading to price declines. To summarize, the price of precious metals is influenced by a multifaceted interplay of factors, ranging from the core dynamics of supply and demand to geopolitical events and currency fluctuations. Investing in precious metals offers several avenues for investors to participate in the market. Here are three of the most popular approaches: Stocks: Investors can purchase shares in mining companies engaged in the extraction of precious metals like gold, silver, platinum, and palladium. The stock prices of these companies often correlate closely with the underlying metal's price, as their profitability is tied to production costs and market demand. Exchange-Traded Funds (ETFs): Precious metal ETFs enable investors to buy shares in a fund that holds physical precious metals, such as gold or silver. These funds aim to track the price movements of the respective metal, providing a convenient means of exposure to the market without the need for physical storage and transportation of the metals. Contracts for Difference (CFDs): CFDs are financial instruments that allow investors to speculate on the price fluctuations of precious metals without owning the physical metal itself. By entering into a contract with a broker, investors can buy or sell the metal at a predetermined price on a future date. CFDs are a more speculative approach, involving leverage and potentially significant losses if the metal's price moves unfavorably. The potential earnings from trading precious metals can vary greatly and are highly dependent on individual factors and market conditions. It's important to note that trading in precious metals can be subject to volatility and fluctuations, and there are no guarantees of specific earnings. While gold and silver have demonstrated a long-term upward trend, it is crucial to approach trading with realistic expectations. Over the long term, precious metals have historically shown the potential for favorable returns. However, short-term gains can be less predictable. It's important to have a long-term perspective and not expect significant profits within a short period. Patience and a strategic approach are key when investing in precious metals. It's worth mentioning that the scarcity of precious metals, especially gold, has a significant impact on their value. As the available supply diminishes over time while demand remains steady or increases, the price per unit tends to rise. This trend is driven by the basic principles of supply and demand. In summary, while precious metals can offer good returns over the long term, it's important to manage expectations and understand that substantial earnings may take years or even decades to materialize. Investing in precious metals offers both advantages and disadvantages. Here are the key pros and cons to consider: Advantages: Safe haven investment: Precious metals, particularly gold and silver, are often viewed as safe haven assets during economic uncertainty or market instability. They can act as a hedge against inflation, currency devaluation, and geopolitical risks. Diversification: Precious metals provide diversification benefits to an investment portfolio. They have a low correlation with traditional assets like stocks and bonds, which can help reduce overall portfolio risk and enhance stability. Tangible assets: Precious metals are physical assets that can be held directly, offering a sense of ownership and security for some investors. Having tangible assets can also provide a potential alternative during times of financial crisis or disruptions in the banking system. Disadvantages: Volatility: Precious metal prices can be highly volatile, experiencing significant price swings within short periods. This volatility can pose risks, especially for short-term traders or those seeking quick profits. Limited income potential: Unlike stocks or bonds, precious metals do not generate income through interest payments or dividends. Their value primarily relies on price appreciation, which may limit their long-term growth potential compared to income-generating investments. Storage and insurance costs: If investing in physical precious metals, storage and insurance expenses can add to the overall costs of ownership. Proper storage facilities and insurance coverage are necessary to protect the value of the assets, which can eat into potential returns. Market manipulation concerns: Critics argue that the precious metals market may be susceptible to manipulation by large players or governments, potentially leading to artificial price movements that may not reflect true supply and demand dynamics. It's important for investors to carefully weigh these advantages and disadvantages, taking into account their financial goals, risk tolerance, and the broader investment landscape. Consulting with a financial advisor or conducting thorough research is recommended before making any investment decisions in precious metals. Are Precious Metals A Good Investment For You? Determining whether precious metals are a good investment for you requires considering various factors such as your financial goals, risk tolerance, and investment timeframe. Here are some key points to consider: Diversification: Precious metals can serve as a valuable component of a diversified investment portfolio, as they often have a low correlation with other asset classes. This diversification can help mitigate risk and stabilize portfolio performance. Inflation protection: Precious metals are historically considered a hedge against inflation since their value tends to rise when the purchasing power of fiat currencies declines. If protecting against inflation is a priority for you, investing in precious metals could be advantageous. Volatility: It's important to recognize that precious metals can experience significant price volatility, which may not align with the risk tolerance of every investor. If you are uncomfortable with substantial price fluctuations, other investment options may be more suitable. Liquidity: Precious metals generally offer high liquidity, meaning they can be easily bought or sold on major exchanges. This accessibility allows for flexibility and quick access to funds when needed. Long-term perspective: Investing in precious metals, particularly gold, often yields gradual and steady returns over the long term. Patience is crucial when investing in these assets, as their growth tends to occur gradually rather than in short-term bursts. Considering these factors, it is recommended to conduct thorough research, assess your individual circumstances, and consult with a financial advisor before deciding if precious metals are a suitable investment for you.
OANDA:XAUUSDEducation
by FOREXN1
9
Cryptocurrencies and Market Psychology (long Review)How do we determine whether the Cryptomarket will rise or fall, at what point of the trend? I will share my past experiences, thoughts and information I have compiled and evaluate the subject in terms of market psychology. While explaining these as much as I can, I will make use of a lot of data and resources. Roughly speaking, market psychology is the whole of the phenomena that we feel emotionally in the face of the movements experienced and enable us to make decisions in line with them. In other words, it is what we feel in response to price movements. Hence the enthusiasm we feel in response to rising prices in the market and the anger we feel in response to falling prices and losses. Crowds, masses, groups, whatever you call them, act on emotions and impulses. They have a common collective behaviour, separate and distinct from what they feel individually. This is whatever the direction of the market is. Except for exceptions and a certain minority, it is not possible for investors to get rid of this and think differently. You can sense this both from yourself and from your surroundings. When the markets are at their peak, investors are very happy, they invite everyone to join them in this happiness, their faces are smiling, and they believe that they will earn even more in time. ''After an event is repeated two or three times in a row, the "arterior cingulate" and "nucleus accumbens" parts of the human brain automatically expect it to be repeated. if it is repeated, a natural chemical "dopamine" is released and your brain is covered with a soft happiness. So when a stock goes up several times in a row, you expect it to continue, and your brain chemistry changes as the stock goes up, making you feel very happy, so you become addicted to your predictions. But when stocks fall, the resulting monetary losses activate the "amygdala" part of your brain - the part of the brain that drives fear and anxiety and activates the famous "fight or flight" response that occurs in all cornered animals. Just as you can't stop your heart rate from rising when a fire alarm goes off, and you can't stop running backwards when a snake crosses your walkway, you can't stop being scared when stock prices fall.'' behavioural economics after an event is repeated two or three times in a row, the "arterior cingulate" and "nucleus accumbens" parts of the human brain automatically expect it to repeat. if it repeats, it is a natural person. This period of making easy and fast money makes people feel very good. People think that they are very successful and that this will continue. But this is an illusion. The reason why the masses make big and fast money during this period is not their own success, but because the market allows it. The end of these events is usually full of bitter experiences. The 2001 nasdaq crisis, the 2008 crisis, the cryptocurrencies in the last months of 2017, the 2021 bitcoin rally, and the current Turkey's stock are examples of this. Of course, before evaluating these, it is necessary to know what the stock market is, who wins, what is its real face. One of the biggest misconceptions about the stock market is that the new entrant or the less experienced person makes the evaluation only within the period he entered. This is a mistake, what should be done is to analyse the relevant market with its entire history. You've heard the saying, "It's increased 30 times in 2 years, if it goes another 10 times from here. Probably not. This 10 times more thought has been formed in line with the above-mentioned and is not rational. ''If we had bought that coin or stock in time, we were rich now.'' This phrase is also very familiar. Those who invest uninformedly with the discourses of others, people who think that they are distributed free of charge on the stock exchange, crypto, those who think it is a place of easy fast money folding are always in the last link of the chain and are doomed to lose. What has invited these people to the stock market recently is the enthusiasm experienced in the markets. Think about the motivation of people jumping from the top of the shares. It's going up, so let me get in and win. From Daniel Kahneman's book Thinking fast and slow: ''People have the illusion that they are 'making accurate predictions'.'' One of the relevant chapters is below: "So the success of a buy-sell is not due to skill, but to luck. And even when they are presented with evidence of this fact, they ignore it and continue to live the same way. The rest of the story is even more interesting. Algorithms that use only 2 parameters in predictions that largely depend on luck are more successful against people who are fed with more parameters/information. Because human thoughts vary too much according to their body chemistry, and as they are fed with more information, their self-confidence and therefore the risks they take increase and they lose more easily. That means this, For example, when betting between teams x-y, a simple algorithm that calculates the probability of team x winning based on x's score in the last 5 matches and the score in the last 5 seasons against team y, In the long run, it is more successful than a person who knows these two pieces of information and the number of injuries, the weather, the number of fans and who the referee is in that match. Therefore, algorithms using Markov chains make money, while amateurs who are influenced by the sunny weather and make more optimistic choices lose money all the time. Another conclusion to be drawn: Machines are more successful with less information. This makes them superior to humans. Humans are still incapable of comprehending - accepting - even the statistical facts that are shown to them. we are still prisoners of the illusions that our minds play on us.'' People are psychologically influenced by their environment. Explanation: when the stock market was at 1000 points, no one was interested, but now everyone has the desire to become an investor. The same goes for bitcoin. People who I could not convince to buy in the $ 3000-5000 USD range started to ask if it would go between 50-69k USD. The same people now think that bitcoin should never be bought at 16 thousand. All these are not calculated thoughts, they are purely impulsive behaviours. The result of these behaviours is to lose. As long as people and markets exist, these cycles will always continue. There will always be new winners and losers. This is the purpose of the stock market. Now, what are the above-mentioned things useful for us? With all this information, we are trying to find out where we are in the market relative to the peak and when we should exit. In other words, when to buy and when to sell, to find the time to sell. When does the bear market (bear period) start? It starts 1 candle after the peak candle. It is the best selling place. That is, the peak. We use technical analysis, the internal dynamics of the market and the psychology of this market to identify the peak areas (i.e. the best selling points). Remember, we are not trying to analyse point by point. We are just trying to more or less predict the zones and maximise our own profits. Trying to find peaks and troughs is unnecessary and foolish. Buying at average cost and selling at average cost will give you the most effortless profit. Some wrong moves and behaviour patterns that prevent winning: -Rushing to win. -Not having information about the market, not learning. -Being hopeless and negative due to constant losing (not looking objectively). -Looking for back doors, trying to pull the gain forward (emotional or sentimental trade, or margin) -Constantly listening to others without doing enough research, losing and blaming them for mistakes, -Excessive enthusiasm at the top, excessive fear and anger at the bottom. Those who follow the whole market only news-oriented. These can multiply even more. People with these behaviour patterns cannot make money from the market. You have heard it everywhere: "The stock market is a means of transferring money from impatient people to patient people". You will realise the truth of this saying as your experience increases. Of course, this alone is not enough, there are many factors such as the right timing, the right stock coin selection, the moves you will make in the uptrend. But one of the basic disciplines you need to have is patience. Let's go back to psychology and emotion. The masses in the stock market (small investors); are guided and manipulated through emotions. In other words, it is to get your consent on an action that you will not do and to make you take that action. Manipulation is to persuade you for a transaction that is to your detriment. Through various methods, the money in the hands of small investors is collected in the hands of large investors, capital groups, new rich people. In other words, wealth transfer takes place. Thanks to many stock exchanges, commodities, cryptos, parity in the world, these wealth transfers are taking place at any moment. Examine all world markets from past to present, it will be more understandable. Why am I telling so many negative things? Because in order to win the game, we need to know what the game is, what the rules are. You can get away from the news, fuds, psychological attrition movements, manipulations, knowing the rules of the game. It's a kind of self-protection. Once you lose, it's hard to overcome the psychology of it. Emotions come into play. You can be a prisoner of ambition and anger. So you can know these and try not to lose from the beginning or try to get out with less damage. The stock market is an environment where the right information is very valuable, because we come across the most information pollution, ignorant comments, and directive content on the stock market. Even twitter alone is enough for this hollow content. I mentioned the part about the peaks. Enough of this negative information. I apologise that the topics may be a bit intertwined. If we come to the bottom points, the opposite of these are experienced. I have talked about them at length before, they can be read. Let me make a few recommendations. Choose the people you care about carefully. No one has a magic wand or secret information that will make you 100x. Stay away from dishonest people, ignore duplicate scam accounts. There are plenty of paid and unpaid trainings (stock market, crypto) on the internet, spend time on them. Browse books written about the stock market. Try to fill yourself with knowledge. On fundamental and technical analysis, investor psychology, Try to learn about behavioural economics (economics), about the basics of the stock market. Don't depend on anyone, but try to get information from everyone. Also, get to know a little bit about what you are investing in. Do not jump in with gas, with a moment of excitement, just because someone said so. Give importance to past experiences. A lot of experience is important in the stock market. Think medium and long term, not short term. It is not important to earn in a month in a week. It is important to be able to earn and protect it in a year or two years. Consider it as investment and accumulation, not gambling. What needs to be done to win is plain and simple, what is difficult is to apply them.
CRYPTO:BTCUSDEducation
by Cryptollica
4
Benefits of studying Price Action in groups of currenciesEach week, we traders analyze a few currency pairs for possible trading opportunities. I want to draw your attention to also look at the entire group of corelating pairs i.e., all USD, all Euro, all JPY pairs and so on. To illustrate this, let us take a look at some JPY pairs. The following are some advantages of doing this type of analysis: 1) If you are bullish on a pair and can see that all or most of the JPY pairs are also bullish, it provides validation and higher level of confidence in your trade idea. 2) You can then study price action on all the pairs and do your technical analysis to find the pair(s) that point to the higher probability of success. 3) As you see from the charts I have posted, price action is similar but not identical in all cases. You can see pairs in early stage of a bullish move while in others it seems that the bullish mode has set in already. However, all pairs are currently consolidating and trading opportunities after a breakout/retest will be available in many of these. 4) This comparison of a few pairs also provides an opportunity to look at some fundamentals and recent news releases to find the best currency to pair with JPY based on the counter currency’s strength/weakness. 5) You also get the possibility to spread your risk in a few pairs instead of just one. While you must stay within the risk/money management parameters you have set for yourself in your trading plan, having multiple but smaller positions in 2 or more pairs, creates a kind of hedging that can be beneficial. Nothing is 100% in trading, so as always, use sound money and risk management and stay patient in all your trades. If you like my content, please give it a “thumbs up” and follow me to get even more.
Education
by Trading_Vista
Understanding US Economic newsUS Economic Indicators: We know about trends and trend changes, but why a trend changes? The tops and bottoms of the market are determined by the fundamentals, like news releases, while the technicals show us how we get between those two points. So a news release can be the cause or trigger of a trend change. So it is to our advantage to at least be aware of upcoming news releases. Here are some releases to watch for: Non-Farm Payrolls Non-Farm Payrolls have proven itself to be one of the most significant fundamental indicators in recent U.S. history. As a report of the number of new jobs created outside the farming industry each month, a positive or negative NFP can get traders to act very hastily. A better than expected figure is very bullish for the dollar, whereas a more sluggish number usually results in the dollar being sold off. There is another component of unemployment released on the same day: The Unemployment Rate. Unemployment measures the amount of people that are out of a job, but are actively seeking one. If this number is smaller, then it means that the people that are seeking jobs are finding them, possibly meaning that businesses are well off and that the economy is expanding. The NFP is a number, usually between 5-6 figures, whereas the Unemployment rate is a percentage. A higher NFP number and lower unemployment number are generally bullish for the dollar and vice versa. It is difficult to trade the NFP and Unemployment Rate only because many times traders will not pay attention to what seems to be the most significant components, but will instead focus in on what reinforces their bias. Also, the release causes a significant amount of volatility in the markets. FOMC Rate Decision Interest Rate decisions for the Fed Funds Rate are very important when trading the U.S. Dollar. When the Fed raises interest rates, the yield offered by dollar denominated assets are higher, which generally attracts more traders and investors. If interest rates are lowered, that means that the yield offered by dollar denominated assets is less, which will give investors less of an incentive to invest in dollars. When the decision is made about the rate it is always accompanied by a statement where the Fed gives a brief summary of what they think of the economy as a whole. When reading the statement it is important to check the exact language. Many times by the time that the decision is published, it is usually factored into the market. This means that only slight fluctuations are seen if the decision is as expected. The statement on the other hand is analyzed word for word for any signs of what the Fed may do at the next meeting. Remember the actual interest rate movement tends to be less important than the expectations for future interest rate moves. Retail Sales The Retail Sales figure is an important number in a series of key economic data that comes out during the month. Because it measures how much businesses are selling and consumers are purchasing, a strong retail sales figure could signal dollar bullishness because it means strength in the US economy, whereas a less-than-expected number could lead to dollar bearishness. Again, the logic behind this is that if consumers are spending more, and businesses are making more money, then the economy is picking up pace, and to keep inflation from creeping in during this time period, the Fed may have to raise rates, all of which would be positive for the US dollar. Traders tend to use the Retail Sales figure more as a leading indicator for other releases such as Consumer Confidence and CPI, and thereby don’t usually “jump the gun,” unless the numbers are terribly out of proportion. Foreign Purchases of US Treasuries (TIC Data) The Treasury International Capital flow (TIC) reports on net foreign securities purchases measures the amount of US treasuries and dollar denominated assets that foreigners are holding. A key feature of the TIC data is its measurement of the types of investors the dollar has; governments and private investors. Usually, a strong government holding of dollar denominated assets signals growing dollar optimism as it shows that governments are confident in the stability of the U.S. dollar. Looking at the different central banks, most important seems to be the purchases of Asian central banks such as that of Japan and China. Waning demand by these two giant US Treasury holders could be bearish for the US dollar. As for absolute amount of foreign purchases, the market generally likes to see purchases be much stronger than the funding needs of that same month’s trade deficit. If it is not, it signals that there is not enough dollars coming in to match dollar going out of the country. As a side note, purchases by Caribbean central banks are generally seen to be less consistent since most hedge funds are incorporated in the Caribbean. Hedge funds generally have a much shorter holding period than other investors. US Trade Balance The Trade Balance figure is a measure of net exports minus net imports and tends to be negative for the U.S. as it is primarily a “consuming” nation. However, a growing imbalance in the Trade Balance suggests much about the current account and whether or not if the U.S. is “overspending” on foreign goods and services. Traders will understand a decreasing Trade Balance number to implicate dollar bullishness, whereas a growing disparity between exports and imports will lead to dollar bearishness. Because the figure precedes the Current Account release, it pretty much helps project the direction of change in the Current Account and also begins to factor in those expectations. Current Account Balance The U.S. Current Account is a figure representing the total accrued deficit of the U.S per quarter against foreign nations. Traders will interpret a greater deficit as bad news for the U.S. and will consequently sell the dollar, whereas a shrinking deficit will spark dollar bullishness. Usually, the Current Account Deficit is expected to be funded by the net foreign securities, but when ends don’t meet in these data, the Current Account could signal a big dollar sell-off. Additionally, because the Current Account data comes out after the Trade Balance Numbers, a lot of its expectations begin to get priced into the market, so a surprise to either side of expectations could result in big market movements for the dollar. Consumer Price Index (CPI)/Producer Price Index (PPI) The Consumer Price Index is one of the leading economic gauges to measure the pace of inflation. Many investors and the Fed constantly monitor this figure to get an understanding about the future of interest rates. Interest rates are significant because not only do they have a direct impact on the amount of capital inflow into the country, but also say much about dollar-based carry trades. If the inflation number comes in higher than expected, traders will interpret that to mean that an interest rate hike is more likely in the near future and will thus buy dollars, whereas a figure that falls short of expectations may cause traders to wait on the sideline until the Fed actually makes a decision. Essentially, trading a negative change in CPI is much more difficult than trading a positive change due to the nature of different interpretations. A significant increase in the CPI will result in much dollar bullishness, but a decrease will not necessarily result in dollar bearishness. The CPI measures inflation at the retail level (consumers), while the PPI measures the inflation at the wholesale level (producers). Gross Domestic Product (GDP) The U.S. Gross Domestic Product is a gauge of the overall output (goods & services) of the U.S. economy. If the figure increases, the economy is improving, and often the dollar will strengthen. If the number falls short of expectations or meets the consensus, dollar bearishness may be triggered. This sort of reaction is again tied to interest rates, as traders expect an accelerating economy to be mired by inflation and consequently interest rates will go up. However, much like the CPI, a negative change in GDP is more difficult to trade; just because the pace of growth has slowed does not mean it has deteriorated. On the other hand, a better than expected number will usually result in the dollar rising as it implicates that a quickly expanding economy will sooner or later require higher interest rates to keep inflation in check. Overall though, the GDP has fallen in significance and its ability to move markets since most of the components of the report are known in advance Durable Goods The Durable Good figure measures the amount of capital spending the U.S. is doing, such as on equipment, transportation, etc., both on a business and personal level. Essentially, the more the U.S. spends the more the dollar stands to benefit; the opposite is also true. This is because increased spending could very well be a harbinger for inflation, and thus consequently, interest rate hikes. Traders will usually focus in on the durable goods figure, but not too deeply, as it usually precedes data regarding housing starts and the annualized GDP figure release. Therefore trading based on the Durable Goods number is only voluminous when stagnancy in other key economic releases has been confirmed by a market consensus.
Education
by Mihai_Iacob
21
4 BUYING OPPORTUNITIES1. Impulse Move Buying Opportunity Impulse move buying is a trading strategy that involves buying when the price makes an impulse move from the key level. Price makes a higher high, breaking through the previous high—a break of structure. The market pulls back to 1/3 of the impulse move, and then traders can look for signals. Usually, price action doesn't make a deep pullback after an impulsive movement. A stop-loss may be placed at the 61.8% Fibonacci level. 2. Golden Zone Buying Opportunity Golden zone buying is a trading strategy that involves buying at a 61.8% Fibonacci level. The price pulls back to the key level and bounces off. Price action breaks the structure by making higher highs and higher closes above the previous high. The market can potentially cause a complex pullback towards the golden zone. The 61.8% golden zone must line up with a significant level, forming a confluence zone. The stop-loss may be placed at the 88.6% Fibonacci level, which is near the key level. 3. Institutional-Level Buying Opportunity Institutional-level buying occurs when large market participants collect liquidity at the key structure level. The price movement of the institutions may be recognized when prices make large moves like engulfing candles or pinbars. This zone creates supply and demand levels. As a general rule, the market breaks through the structure and pullbacks to the 78.6% discount zone, and at this point we can look for buying opportunities. A stop loss can be placed at the 113% Fibonacci inversion level of the leg that breaks the structure, which is HH-HL. 4. Stop Hunt Level Buying Opportunity Stop hunting level Buying is a trading strategy that involves buying a security at a price level that is attractive to large traders. This type of buying opportunity is typically used when a price reaches a level that is seen as attractive by large traders. The strategy is often used to capitalize on market inefficiencies and take advantage of the momentum created by large traders. The price action after the breaking structure usually returns to the key level by making a deep pullback. Many traders at this point have closed their positions, thinking the price might continue to move down. However, large institutions that pushed prices out of this zone protected the level, and prices continue to trend in the primary direction. The entry point is usually 88.6% Fibonacci, which gives the best R/R. A Stop loss below the level at the Fibonacci inversion level.
Education
by UnknownUnicorn15614419
11
Become a Trading Machine - 11 ways!If you want to trade well and consistently. You have to be more mechanically orientated. The weekend is about to begin so I'll be literally quick and brief. Saying "literally" was unnecessary and made it longer. Sorry. Here are the pointers: 1. Stay committed 2. Cultivate patience 3. Avoid herd mentality 4. Be long-term oriented 5. Stop crying over losers 6. Review your performance 7. Stop celebrating winners 8. Adapt to market conditions 9. Keep your emotions in check 10. Don't think of quick success 11. Adapt and advance with technology
JSE:J200Education
by Timonrosso
7 points to check before investing in any companyStock picking is the core of value investing. Legends like Warren Buffet, Rakesh Jhunjhunwala, and Vijay Kedia are Masters of It. In this post ,l will teach you how to analyze stocks like a professional. Stock picking plays a pivotal role in identifying undervalued companies with significant growth potential. Here are 7 points to check before investing in any company. Let’s start... (Last one is the most important) Business profile: How does the company make money? If the business profile doesn’t look attractive or money-making system is complex for you to understand, you can stop looking into the company right away. Always invest in companies whose business is easy to understand and within your circle of competence. Management and Promoters structure: You want to invest in companies with good management who are focused on long-term growth. Look at the track record of current management. Look whether insiders are heavily buying into their own stock, it’s a great sign. I have seen many promoters who are just dumping their shares to retailers and exiting. Avoid such companies. Moat: Just like strategy provides an edge in trading to a trader. A moat is a unique competitive advantage that a company has over its competitors. Invest in clear market leaders with strong pricing power. For eg: e Titan in Jewelry e BSE in stock exchange Growth capital: Good companies don’t require much capital to grow. Check their annual report and seeing which companies are growing in revenue and profits, but the increase in expenses are very less. CAPEX/Sales and CAPEX/Operating Cash Flow are 2 great metrics to look at the capital efficiency of a company. Capital usage: The most important task for company management is to use the capital wisely. We want a company that is re-investing in its business and buying their own shares. You want to invest in companies with a ROIC > 15% Balance sheet & profitability: Only invest in companies which are in good financial health. Don’t trust what their management is speaking , see their results in balance sheet. We want companies with low debt, high cash flow & high gross margins. Outlook: This is most important. Good past records don't gurantee future growth. So it iss very important to invest in a company with a good outlook. Seek companies which are active in a secular trend. Invest in the Future. Renewable Energy, EV, Ecommerce, Digital Payment, Luxury Etc.
NSE:NIFTYEducation
by khushaljain023
5
Understanding the Elliott Waves The market always moves in waves. It is not surprising that for decades traders have been trying to find special market patterns that would help to predict the development of the wave structure of the market. Various systems were created, where the waves were based on theoretical and practical basis. Perhaps the most popular theory on this subject is called Elliott Waves. Ralph Nelson Elliott was actually a professional accountant. He obviously had a lot of time to analyze charts for several decades, so he put all his observations in a tiny book "The Wave Principle", which was published in 1938. According to Elliot, everything in human civilization is in some rhythmic order, so this rhythm, these wave amplitudes can be " drawn" into the future, which allows you to predict the financial markets. Elliot's theory seemed interesting to few people during his lifetime. Elliott passed away in 1948 and was immediately forgotten. His theory was used by just a few stock experts. Only thanks to Chalz Collins these waves were remembered on Wall Street. Then they were popularized by Hamilton Bolton in 1950-1960, publishing a book with a detailed description and practice of use. Certainly, Robert Prechter also has done the most job here. It was thanks to him, that Elliott waves became universally popular, almost 50 years after the accountant Elliott wrote a book on them. Many technical systems have a similar fate. They are forgotten, the authors are not appreciated during their lifetime, and then suddenly they become popular when they are promoted by a fanatical follower. Preckter is still considered the main expert on Elliott waves, and his site elliottwave.com is the world's main resource on the subject. There are a lot of cool forecasts there, for example, Prekter's experts predicted the 2008 crisis several years before it occurred. In fact, the modern Elliott is Prechter and his school. Elliott Waves, in their essence, have a fractal basis, and the goal of practice is to break down the waves into understandable elements. It is them that we will try to explore now. Fractals or Impulse Waves ✳️ The basic principle of Elliott Waves is that any wave consists of 2 parts; impulse and correction. Each of them, in turn, is made up of several elements, which also resemble waves, only smaller in size. Such a property, when a part resembles the whole object as a whole, is called fractality. For example, the ocean is made up of countless drops, and yet each drop is a "mini-ocean" because it repeats its properties and composition. Similarly, all living organisms are made up of cells. The concept is based on the Elliott Wave Law, according to which market movement can be described by a simple and visual model as shown above. It reflects the main principle of market behavior: the price does not move in a straight line, but in a wave-like manner. An asset starts moving (for example, price growth), after which a correction (downward pullback) is observed. Any wave consists of 2 parts: Correction is a pullback in the opposite direction. Each wave has an amplitude (difference between the 2 most distant points - upper and lower). At the same time, the impulse amplitude is always larger than the correction amplitude. To put it simply, the impulse is the main movement, while the correction is only a pullback in the opposite direction, which is always smaller in amplitude. That is why it is easy to distinguish them visually. Both parts make up a cycle, after completion of which the market can go sideways (flat) or go in the opposite direction. The ability to see an organized wave in the "disorderly" movement of the chart allows us to correctly determine the current location and make a correct forecast for the near future. After the correction is over, we can re-enter the market (BUY trade) and profit again on the price increase. Since each moving wave is accompanied by a pullback in the opposite direction, the concept is sometimes also called the Elliott Wave Correction Theory. Correction ✳️ The Elliott Wave Correction Theory predicts the end of the impulse after the formation of the last (fifth) wave. And after that there are 3 possible alternatives. The trend is reversed (a new fifth wave will follow). There comes a moment of uncertainty in the market, when the price will move in a narrow corridor for a long time (flat). The trend is maintained, but a short-term pullback occurs. This is a smaller in amplitude wave, consisting of 3 sections (so it is also called a triple). Elliott labeled each of them with the letters A, B and C: The A and B-C sections show a counter-trend correction as shown above. Now, if we combine all the elements into one picture, we can make a simplified wave analysis on the example of an uptrend. So we can see 2 large sections the impulse 1-5 and the correction A-C. The five consists of 5 sections with 3 trend movements and 2 small pullbacks. A 3 consists of 3 plots with 1 trend movement and 2 pullbacks. Example of Impulse and Correction ✳️
Education
by Lingrid
6
The Powell meme bomb & pivotThe fed and Powell have tried everything to dismiss inflation . First ignoring it then saying transitory then changing the perimeters as to how it's calculated. Even Sleepy Joe then chimed in at one point by saying hotdogs are actually cheaper for your red white and blue lies. How about awards... Let's give Ben Bernanke the noble economics prize during this all of this insanity! How about an Oscar to a president? (Sean Penn to Zelensky) yeah why not?? Giving Bernanke an award like "Noble Economics" is like calling Dahmer chef of the year! What the heck is going on? People are so broke they can't even pay attention! Has reality become the twilight zone? or was it always? Who are these people that rule us? Can they really be this incompetent? If so why is there no accountability? Now to Powell and gang. Last year they were caught for insider trading, what was their punishment? They were forced to sell their stock, at record gains mind you. Really... that's a punishment now? No one even batted an eye. The west has become a bunch of zombie filled degenerate nations with it's citizens consuming filth at record pace even Usain Bolt would be envious of. For this charade to keep going, you need to print more zombie snacks (dollars) there is no other way. I do believe the market is pricing in an inevitable Fed pivot at the moment which could turn out to be a sell the news moment next year at some point (not Financial advice). Psychological warfare. The Psy-op being played has been ramped up to new levels the past couple years and it is being reflected in the market due to technology with access to investing now easier than ever with a device sitting in your pocket, just add a little emotion with degenerative news and voila. The Pivot will eventually come, but will be the long term effects of it? Anyone can assume but simple 101 Noble Bernanke economics will tell you it ain't good. Anyway, this is my rant for the day. Actually, I have a question. What effect do SEC (crypto) rulings have past American borders? Here is my opinion, (crypto specifically) They have no jurisdiction past American borders so the effect is limited if any. In my opinion these negative rulings will only stifle any American innovation and growth of the sector. It actually just opens doors for other countries to take advantage of it as crypto is global. Please give me your thoughts on this down bellow. Special Guest Appearance George Carlin Thanks WeAreSat0shi Stay Blessed!
TVC:DXYEducation
by WeAreSat0shi
2
Why Penny Cryptos are LETHAL for TradersCryptocurrencies are often likened to the Wild West. They are untamed, unregulated, and packed with potential riches. However, they are also fraught with hidden dangers and potential pitfalls. One such peril lies in the world of penny cryptos. They’re cheap, super volatile, and they attract the minds of those who want a quick fortune. This is similar to a gambling mentality. And You don’t want to go down this rabbit hole. Once you get in, you find every reason to hold. You build so much trust, prospects and hope with them. You might as well marry them and expect the inevitable divorce which will rob you of your money. Anyways, penny cryptos are lethal, and here’s why. #1: Huge Volatility with Major Fluctuations Imagine being on a roller coaster that has extreme highs and drastic lows. One moment, you’re at the peak, enjoying a scenic view. The next you’re plunging into a scary abyss. That’s the world of penny cryptos. Penny Cryptos are definitely like the wild wild west. They swing drastically in value. This is because of the low value of the currency. #2: Issued by Small Companies with Little Experience and Knowledge If the financial world was an ocean, penny cryptos would be the tiny, uncharted islands you might stumble upon. The kind of islands that do not inhabit life and have erratic waves completely wash over it on a sporadic basis. Well, in the deep ocean of crypto currencies, Penny Cryptos are these tiny pebbles. Most times they’re issued by small, relatively unknown companies. Sometimes they are issued by children in their parents basements. Sometimes they are issued by gamers who don’t want to work for a living. Sometimes they are issued by Only Fans sexy girls who flaunt their bits and believe their currency will go up in value (amongst other things). Anyways, Penny Cryptos (unlike Penny Stocks) lack the experience, credibility, intangible asset value and knowledge to navigate the tumultuous shitty penny cryptos. In fact, they call many of these Penny Cryptos Shit Coins – No joke! Such companies often struggle with regulatory hurdles, lack of funding, and poor management, making their cryptocurrencies extremely risky ventures. #3: High Target of Scams and Fraud and Even Ponzi Schemes Penny cryptos can sometimes be the financial equivalent of snake oil salesmen. Their low cost and relative anonymity make them the perfect target for scams, fraud, and even Ponzi schemes. And you know how messed up the world is and what kind of trash people there are. And so, they are Penny Crypto con artists who try to sell their shitty coins only to lead to either a pump-and-dump scheme. Or to fake an ICOs Initial Coin Offering) gather a whole bunch of money from investors, then make a run for it. Please don’t fall for these scams! #4: Illiquid and Low Volume Which Will be Difficult to Get in and Out One of the most lethal attributes of penny cryptos is their lack of liquidity. Liquidity, in the financial sense, is like the exit doors in a movie theater. The more doors there are, the easier it is for people to leave when the movie is over. In the world of penny cryptos, these exit doors are often few and far between. Due to their low volume, buying and selling penny cryptos can be incredibly difficult. If you’ve invested in a penny crypto and its value begins to plummet, you may find yourself trapped, unable to sell and cut your losses. And you’ll just be stuck in your trade for years on end, while it gathers digital dust. #5: More Likely to Hit 0 as They are Less Trusted by the Public Trust is like the foundation of a house. If it’s strong and solid, the house stands tall. If it’s weak or non-existent, the house collapses. Given the factors I mentioned above, should be enough to make you realise. Any one of these weaknesses with a coin, can lead to a crash down to 0. And believe you me, most of the millions of Penny Cryptos that are around today – will be nothing more than a remnant of a memory in the future.
Education
by Timonrosso
CPI tomorrowU.S. Consumer Price Index (CPI) tomorrow at 8:30am. If CPI comes in below 3% the stock market will rally strong. If the CPI print is an upside surprise the stock market will go red. If CPI comes in at 3.1% forecast the stock market will whipsaw and then go up. The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It's a key way to measure changes in purchasing trends and inflation. The 2s10s yield curve is a measure of the difference in interest rates between the two-year and ten-year Treasury bonds, which generally tend to trend together with 10s yielding a premium to 2s. However, on rare occasions, the front end of the curve can become inverted as a result of the Federal Reserve (FOMC) policy intervention via raising short-term rates. Historically, an inverted yield curve has been a reliable predictor of an impending economic recession. Release Date Time Actual Forecast Previous Jul 12, 2023 (Jun) 08:30 TBA% 3.1% 4.0% Jun 13, 2023 (May) 08:30 4.0% 4.1% 4.9% May 10, 2023 (Apr) 08:30 4.9% 5.0% 5.0% Apr 12, 2023 (Mar) 08:30 5.0% 5.2% 6.0% Mar 14, 2023 (Feb) 08:30 6.0% 6.0% 6.4% Feb 14, 2023 (Jan) 09:30 6.4% 6.2% 6.5% Jan 12, 2023 (Dec) 09:30 6.5% 6.5% 7.1% Dec 13, 2022 (Nov) 09:30 7.1% 7.3% 7.8% Nov 10, 2022 (Oct) 09:30 7.7% 8.0% 8.2% Oct 13, 2022 (Sep) 08:30 8.2% 8.1% 8.2% Sep 13, 2022 (Aug) 08:30 8.3% 8.1% 8.5% Aug 10, 2022 (Jul) 08:30 8.5% 8.7% 9.1% Jul 13, 2022 (Jun) 08:30 9.1% 8.8% 8.6% Jun 10, 2022 (May) 08:30 8.6% 8.3% 8.3% May 11, 2022 (Apr) 08:30 8.3% 8.1% 8.5% Apr 12, 2022 (Mar) 08:30 8.5% 8.4% 7.9% Mar 10, 2022 (Feb) 09:30 7.9% 7.9% 7.5% Feb 10, 2022 (Jan) 09:30 7.5% 7.3% 7.0% Jan 12, 2022 (Dec) 09:30 7.0% 7.0% 6.8% Dec 10, 2021 (Nov) 09:30 6.8% 6.8% 6.2% Nov 10, 2021 (Oct) 09:30 6.2% 5.8% 5.4% Oct 13, 2021 (Sep) 08:30 5.4% 5.3% 5.3% Sep 14, 2021 (Aug) 08:30 5.3% 5.3% 5.4% Aug 11, 2021 (Jul) 08:30 5.4% 5.3% 5.4% Jul 13, 2021 (Jun) 08:30 5.4% 4.9% 5.0% Jun 10, 2021 (May) 08:30 5.0% 4.7% 4.2% May 12, 2021 (Apr) 08:30 4.2% 3.6% 2.6% Apr 13, 2021 (Mar) 08:30 2.6% 2.5% 1.7% Mar 10, 2021 (Feb) 09:30 1.7% 1.7% 1.4% Feb 10, 2021 (Jan) 09:30 1.4% 1.5% 1.3%
ECONOMICS:USCCPIEducation
by Options360
10
Why Penny Stocks is a Trader's NightmareLet me start off and say. Penny Stocks have a lucrative and solid place for investors who buy and sell shares. But not just any investors. Well informed, researched, savvy and highly understand fundamentals. Penny stocks for a trader though – Ah no! Those shiny little nuggets of the stock market that promise vast riches for a small investment, can often turn into a trader’s worst nightmare. Here’s why… Reason #1: The Roller Coaster Ride: High Volatility Penny stocks are notorious for their high volatility. One day they can skyrocket and plummet the next. These stocks are like riding a financial roller coaster without a safety harness. No matter where you put your stop loss, it can trigger within a second. And this extreme price fluctuation, can be dangerous for traders. The unpredictable nature, can lead to rapid and substantial losses. Reason #2: Stuck in Quicksand: Low Liquidity Volume is another caveat. Liquidity refers to the ability to quickly buy or sell (flow in and out) of a stock without significantly impacting its price. Penny stocks often lack this characteristic. Some penny stocks volume is SO low, that it can take months or even years to move in price. This means, once you’re in, you might find yourself unable to exit your position. Instead of flowing in and out of a trade (like a blue chip), you’re stuck in quicksand. Quite the oxymoron! Without a healthy volume of trades, penny stocks can become a trap, a nightmare for any trader. Reason #3: Walking a Tightrope: High Chance of Bankruptcy and Liquidations Investing in penny stocks is akin to walking a financial tightrope. These companies are often at a higher risk of bankruptcy and liquidation. This is because of their lower levels of regulation, credibility and inherent instability. And the issue with a less regulated penny stock company, is that it allows for less transparency. This makes it difficult for investors to drill into the true company’s health. The high risk of bankruptcy further amplifies the nightmare. Reason #4: Battling with Giants: Lacking the Strength of Blue-Chip Companies Penny stock companies are typically not well-established businesses. They lack the strength, stability, and track record of blue-chip companies. And without you doing the right research, it can leave them susceptible to market fluctuations and economic downturns. Investing in these companies can feel like bringing a pebble to a boulder fight. You’ll struggle to hold your ground amidst giants. Reason #5: The Race to Zero: The High Failure Rate of Penny Stocks It’s an unfortunate reality. Most penny stocks are more likely to crash and burn than to soar. Because of their weaker fundamentals and instability, they are more likely to head to zero – than a blue-chip company. So let’s sum up the reasons why penny stocks is a traders nightmare: Reason #1: The Roller Coaster Ride: High Volatility Reason #2: Stuck in Quicksand: Low Liquidity Reason #3: Walking a Tightrope: High Chance of Bankruptcy and Liquidations Reason #4: Battling with Giants: Lacking the Strength of Blue Chip Companies Reason #5: The Race to Zero: The High Failure Rate of Penny Stocks If you’re a savvy investor or you have someone great to follow, go for it. But I’ve warned you about the dangers for a trader.
TVC:RUTEducation
by Timonrosso
GLOSSARY Smart Money Concepts – Complete Terms!It’s taking the world by a storm. Smart Money Concepts is what has become famous lately. Now I’ve been trading for 20 years and even I have learnt to adapt and adjust SMC to my trading strategy. I guess we have to evolve and adapt with what there is. Anyways, today I’ve written a complete Glossary on Smart Money Concepts terms for you. Enjoy! SMART MONEY CONCEPTS GLOSSARY Break Of Structure (BOS) (CONTINUATION) A BOS is when the price breaks above or below, and continues in the direction of the trend. (CONTINUATION). Break Of Structure Down When the price breaks and closes BELOW the wick of the previous LOW in a DOWNTREND. Break Of Structure Up When the price breaks and closes ABOVE the wick of the previous HIGH in an UPTREND. Buy Side Liquidity (Smart Money SELLS) Where an Order Block forms where Smart Money SELLS into retailers (dumb money) BUYING orders – Pushing the price DOWN. Change of Character (CHoCH) (REVERSAL) Refers to a much larger shift in the underlying market trend, dynamic or sentiment. This is where the price moves to the point where there is a change in the overall trend. (REVERSAL) Change of Character Down When the price breaks and closes below the previous uptrend. Change of Character Up When the price breaks and closes above the previous downtrend. Daily bias Tells us which direction, trend and environment the market is in and what we are looking to trade. Daily bias Bearish When the market environment is DOWN and the trend is DOWN – we look for shorts (sells) in the market. Daily bias Bullish When the market environment is UP and the trend is UP – we look for long positions (buys) in the market. Discount market <50% The market is at a discount when the price trades BELOW the equilibrium level. We say the price is at a discount (low price). Equilibrium Equilibrium is a state of the market where the demand and supply are in balance with the price. We say the price of the market is at fair value. Fair Value Gap (FVG) A 3 candle structure with an up or down impulse candle that indicates and creates an imbalance or an inefficiency in the market. Fair Value Gap Bearish A 3 candle structure with a DOWN impulse candle that indicates and creates an imbalance or an inefficiency in the market. Between candle 1 and 3, do NOT show common prices. The price needs to move back up to rebalance and fill the gap. Fair Value Gap Bullish A 3 candle structure with an UP impulse candle that indicates and creates an imbalance or an inefficiency in the market. Between candle 1 and 3, do NOT show common prices. The price needs to come back down to rebalance and fill the gap. Levels of liquidity The area of prices where smart money players, identify and choose to BUY or SELL large quantities. E.g. Supports, resistances, highs, lows, key levels, trend lines, volume, indicators, psychological levels. Liquidity The degree, rate and ability for an asset or security to be easily bought (flow in) or sold (flow out) in the market at a specific price. Liquidity sweep (Liquidity grab) Smart money buys or sells (and sweeps or grabs liquidity) from traders who enter, exit or get stopped. Market down structure When the price makes lower lows and lower highs. Market structure Indicates what a market is doing, which direction it’s in and where it is more likely to go. Market Structure Shift (MSS) MSS shows you when the price is breaking a structure or changing the direction in the market. Market up structure When the price makes higher lows and higher highs. Order block Large market orders (big block of orders) where smart money buys or sells from different levels of liquidity. Order Block Bearish A strong selling or a supply zone for smart money. Order Block Bullish A strong buying or a demand zone for smart money. Order block events Large market orders where smart money buys or sells from certain events i.e. High volume, supports, resistances, highs, lows, key levels, Break Of Structure, Change of Character, News or economic event. Point Of Interest (POI) POI is an area or level in the market where there is expected to be a large amount of buying or selling activity i.e. Order blocks. Premium market >50% The market is at a premium when the price trades ABOVE the equilibrium level. We say the price is at a premium (high price). Sell Side Liquidity (Smart Money BUYS) Where an Order Block forms where the Smart Money BUYS into the retail (dumb money traders orders – Pushing the price UP. Smart Money These are the smart, informed, and savvy financial institutions that invest (buy and sell) their large capital into different financial markets. Smart Money Concepts SMC is a more sophisticated method of price action to spot, identify and locate where smart money is buying and selling their positions Sweep Buy Side Liquidity (Smart Money SELLS) Smart Money SELLS into positions (and sweeps liquidity) from retail traders who are short (get stopped) and for long traders who buy and enter their trades. Sweep Sell Side Liquidity (Smart Money BUYS) Smart Money BUYS into positions (and sweeps liquidity) from traders who are long (get stopped) and for short traders who enter their trades. Feel free to print this out and have it as a guide to your Smart Money Concepts trading journey. All the best!
Editors' picks
TVC:SA40Education
by Timonrosso
101
WHAT IS IMBALANCE AND HOW TO USE IT?Imbalance is a market phenomenon that can lead a trader to significant profits or losses. Imbalance (IMB) is a gap in fair value during moments of inefficient pricing. The trading volume is tilted towards the bid or ask side, but too quickly, so there are still unexecuted orders in the market. Simply put, imbalance occurs when there are many orders of the same type (buy, sell, limit) and a lack of liquidity (counter orders) in the market. For example, if there are many more buyers of a currency or stock than sellers, the balance tilts in favor of buyers. On the chart, imbalance looks like a price gap, within which only a part of the volume has been traded. The flow of new orders can be seen by the directional movement of long candles of the same color. Imbalance is indicated on a long candlestick as a gap between the wicks of neighboring candlesticks. Very often the gap occurs on the candlestick pattern "Marubozu" candlestick with a long body, without shadows or with short wicks. The IMB gap between the wicks of neighboring candles acts as a price magnet. It means that as liquidity fills, the price will close the imbalance. The speed of gap filling depends on the market makers, large traders and market factors. Market makers are organizations that maintain market liquidity by buying and selling currencies, securities. There is partial and full IMB fill in the market. A partial fill of up to 50% means that interested bidders were unable to push the price to fill. Full IMB fill is a rebalancing to 100%. Full filling indicates that buyers and sellers are ready to trade actively at an effective price. ✴️ Why do market imbalances occur? The emergence of persistent imbalances after long periods of stable pricing in one direction indicates that institutions are accumulating a position. These institutions can be funds, banks and other financial institutions (so-called "smart money"). The market is influenced not only by institutions, but also by market makers, investors, and traders with large capitals. For example, market makers place many orders and then modify or cancel them to bring the market back to equilibrium. Market makers, smart money and investors can both oppose each other and act in the same direction. Imbalance in Forex can occur after the release of economic and geopolitical news. Imbalances are seen when some countries run surpluses in their trade accounts while others run large external deficits. Imbalance in a security's exchange rate usually follows a dramatic event or publication. The news changes the market perception of the stock and causes a shift in the equilibrium price. This can be news affecting a single company or the economy as a whole. • Publication of financial statements. For example, a positive quarterly report can lead to an imbalance toward buyers. • Corporate announcements of bankruptcy, management changes, takeovers, business purchases, etc. • Government and regulatory actions. U.S. Federal Reserve rate hike contributes to the fall of indices and securities. • Geopolitical problems, natural disasters, etc. As the price moves from the old equilibrium level to the new equilibrium level, order imbalances can occur. ✴️ How to use imbalance to make trading decisions? Imbalance is a type of trading opportunity for intraday and swing traders. In trading, Imbalance is used to identify zones of interest. The zone from which the imbalance originated is characterized by a higher level of probability. The zone is suitable for analyzing and identifying entry points. Entry points are selected with the help of technical analysis within the selected trading methodology. In this case IMB acts as an additional factor. Most imbalances represent price inefficiencies. Therefore, there is a high probability that the market will come back to fill the IMB. For example, if a large bidder manipulated the market, a correction occurs afterward. Typically, price tends to mitigate the imbalance or the area from which it originated. Therefore, traders trade in the direction of the imbalance to profit from the price movement. However, sometimes price continues to push back against IMBs that are forming in the market. Here recent example of using imbalance on EURUSD ✴️ Conclusion Imbalances create "fuel" for trend price movement. However, you should not mindlessly enter a trade in any imbalance zone. It is necessary to monitor the context (economic news, indicators, patterns) and make decisions based on it.
Education
by DeGRAM
9
TOP 10 Money MYTHSAre you tired of hearing the monotonous refrains of personal finance advice that seems to pervade every medium? “Create a budget,” “spend less than you earn,” – it's an endless loop. It is time to dissect and debunk 10 persistent myths that shroud the domain of personal finance. 1. Debt is Always Detrimental. Debt is often depicted as inherently negative, but this is not always the case. It is crucial to differentiate between unwise debt, such as credit card debt, over-extended payments, and high-interest loans, and strategic debt which can be beneficial in creating value over time. 2. Credit Cards Are to be Avoided. Credit cards themselves are not inherently bad. When used judiciously, they can provide cash back, purchase insurance, discounts, and travel benefits. The key is disciplined usage and ensuring that payments are managed properly. 3. Retirement Planning Can Wait. Procrastination in retirement planning can be costly. The longer you wait to start saving, the more you will need to set aside later to achieve the same financial goals. Early investment taking advantage of compound interest is much more effective. 4. Wealth Requires a High Income. A high income does not guarantee financial security. It is not just about how much money you earn, but how effectively you manage and invest it. There are cases of individuals with modest incomes amassing significant wealth through frugal living and intelligent investing. 5. Saving Alone Leads to Wealth. Relying solely on savings is an inefficient path to wealth. The power of investing, especially in appreciating assets, is critical for wealth accumulation. Investments tend to offer higher returns over the long term compared to traditional saving methods. 6. Money Alters Your Personality. It is a common belief that money changes people, often for the worse. However, money typically amplifies pre-existing traits rather than altering a person’s character. Financial success or failure does not inherently change who you are at your core. 7. Investing is Synonymous with High-Risk. Investing involves risks, but so does not investing. With inflation, the value of money decreases over time. By not investing, you may risk having insufficient funds in the future. A balanced investment portfolio can mitigate risks and facilitate financial growth. 8. Homeownership is Essential. Owning a home is often considered an essential financial achievement, but it’s not always the best option for everyone. Homeownership comes with costs such as down payments, property taxes, maintenance, and insurance. Sometimes renting can be a more economical and flexible option. 9. Investing is Only for the Wealthy. This is a common misconception. Investing is a means by which individuals can build wealth, regardless of income level. Even modest investments, if managed wisely, can grow over time and contribute to financial stability. 10. Money is Meant to Be Spent. While it’s true that money is a medium of exchange, how you allocate your spending is important. Excessive spending on non-essential items can hinder financial growth. It’s important to focus on acquiring assets that can generate income and contribute to long-term financial security. In summary, it is essential for anyone engaged in personal finance to critically examine common assumptions and develop strategies based on informed decision-making.
TVC:DXYEducation
by financialflagship