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Fundamental Analysis

Optimism and EIP 4844Optimism is a leading Optimistic rollup within the Ethereum network built by OP Labs and governed by the Optimism Collective. This project aims to streamline the transition between Ethereum's Layer 1 (L1) and Layer 2 (L2) by offering a convenient code migration feature across these layers, facilitated by its "EVM-equivalent" design. Transactions are executed at the L2 level and later consolidated into batches for verification on the Ethereum main chain, effectively reducing gas fees and enhancing transactional throughput. This optimization is achieved while retaining Ethereum's security guarantees through its rollup architecture. OP Stack Optimism introduces the concept of OP Stack, a modular and adaptable foundation that enables developers to build highly scalable and interoperable blockchains of all kinds atop Ethereum. The OP Stack comprises a collection of standardized and open-source modules, which developers can seamlessly integrate to build custom chains for specific needs. The term "standardized" signifies a consensus on the specifications of each module, ensuring they are universally implementable. The open-source nature of these modules means they are freely accessible for iteration and adoption by developers. Additionally, the EVM equivalent nature of OP chains means developers looking to launch on Ethereum can seamlessly also launch their dApps on Optimism or as an OP chain. The stack is made up of specific layers, each with a well-defined API that can be tailored to the specific layer. As such, developers can modify existing modules or create entirely new modules to meet their application's unique requirements. Data Availability Layer Central to the OP Stack's architecture is the Data Availability (DA) layer, a foundational aspect of any rollup that helps reach consensus on transaction ordering and ensures transaction data is available for verification. The OP stack uses Ethereum as its DA layer, as adequate DA is required to ensure the rollup sequencer’s submissions can be crosschecked and challenged if needed. DA guarantees are paramount to a rollup’s design and utilizing Ethereum, the most economically secure and decentralized smart contract L1, ensures Optimism inherits the very best security guarantees the market can provide. The Sequencing Layer The role of sequencers is pivotal in driving the production of rollup blocks. A sequencer must operate both an Ethereum (ETH) full node and an L2 node to effectively communicate between the chains. Within this framework, sequencers are responsible for critical roles, including real-time transaction confirmations, state updates, L2 block creation and execution, as well as the submission of user transactions to Ethereum's layer 1. The operational efficacy of rollups hinges on the accessibility of data by the sequencers. Importantly, because there is currently only one sequencer in the Optimism ecosystem (run by Optimism), this introduces a single point of failure and centralization concerns. However, in scenarios where the sequencer might be censoring a user's transactions, users still retain the capacity to route around the sequencer and ultimately recover their funds on the Ethereum mainet. The Derivation Layer takes the basic data in the Data Availability Layer and turns it into useful information for the Execution Layer using the Ethereum Engine API. Sometimes, it even looks at the current state of the system, as defined by the Execution Layer, to help figure out the basic data. The Execution Layer At the heart of the OP Stack's design is the Execution Layer, a pivotal layer responsible for managing the chain’s state and state changes, e.g. executing transactions. Changes in state occur when inputs, transmitted from the Derivation Layer through the Engine API, prompt transitions. Settlement Layer: Peering Beyond the Horizon The Settlement Layer performs the final validation of a block and, if necessary, handles any disputes that may arise. It bears the responsibility of concluding transactions across all OP chains present within the Superstack framework. The OP structure enables the implementation of one or more settlement mechanisms for each OP Stack chain across various external chains. Optimism's forward-looking approach to the OP Stack can be seen in this layer. The OP strategy entails separating out the proof layer and enabling optionality. As long as the proof layer aligns with the criteria of the proof API, it can seamlessly integrate into the system without causing any disruptions to the user experience. This means the OP Stack can easily support/integrate validity proofs as opposed to fraud proofs. By harnessing the OP Stack’s inherent versatility, developers can fashion nearly any solution imaginable across the crypto space. Governance Layer: Orchestrating Dynamics The Governance Layer serves as a pivotal component in the OP Stack and is responsible for overseeing system configuration, upgrades, and decision-making processes. It encompasses protocol upgrades, adjustments, and design refinements, playing a critical role in upholding the integrity and efficiency of blockchain networks. A key facet of the Governance Layer involves MultiSig Contracts. These contracts commonly find application in managing upgrades of components within an OP Stack-based system. Currently, this mechanism governs the administration of bridge contract upgrades on the Optimism Mainnet. Superchain System In the current day blockchain landscape, diversity has flourished not only within Layer 1 networks but also across Layer 2 solutions, resulting in the emergence of a multi-chain world. While this diversification offers heightened options and flexibility for both users and developers, it simultaneously ushers in a fractured ecosystem with numerous incompatible chains. The segmentation of chains translates into discrete communities and user bases, inhibiting the synergistic network effects essential for the prosperity of any blockchain initiative. Smaller user groups, inevitably, culminate in reduced security, innovation, and overall adoption rates, undermining the ecosystem's vitality. Furthermore, the disintegrated ecosystem poses challenges for developers. In this multichain realm, developers are compelled to engineer applications that function seamlessly across various chains—an endeavor that is laborious and expensive. This bottleneck impedes innovation and hampers the participation of developers willing to contribute to projects in this space. In response to these challenges, Optimism introduces the concept of the Superchain—a horizontally scalable network of interconnected Ethereum-aligned chains characterized by shared security, a common communication layer, and an open-source development stack made possible by the modularity of the OP Stack. This novel approach aims to mitigate the prevailing issues, offering a permissionless framework for deploying new chains within a unified network. Chains within the Superstack system aim to have frictionless communication and transaction capabilities among one another. This, in turn, unlocks avenues for significant scalability, innovative applications, and a novel revenue model that rewards both application and protocol developers. The Superchain amalgamates Optimism Mainnet and various chains into a singular, harmonious network of OP Chains. Central to the Superchain's vision is the notion of OP Chains—L2 chains that can have unique design features while maintaining interoperability. Unlike conventional multi-chain designs, OP Chains are standardized, empowering developers to build applications targeting the Superchain as a unified entity, abstracting away the complexities of individual underlying chains. Base, Worldcoin, Zora, Debank, and others have either launched their own OP Chain or have plans to do so. The term 'OP chain' refers to individual chains within the domain of the Optimism Superchain. Unlike multi-chain systems, OP chains adhere to a standardized architecture. This architecture encompasses a shared base layer for Data Availability (DA), a bridge connecting the base layer and OP chains, a flexible framework for deploying OP chains, the OP chains themselves, and a cross-chain messaging protocol for efficient data and digital asset transfer. This standardized setup facilitates transaction ordering across OP Chains, empowering developers to craft applications targeting the Superchain in its entirety. For the full report click here .
COINBASE:OPUSDEducation
by ReflexivityResearch
Fantom H1 2023 OverviewThe blockchain landscape continues to evolve at a rapid pace, with innovative projects seeking to address the scalability and performance limitations of early-generation blockchains. Among these projects, Fantom has emerged as a promising contender in the very competitive landscape of Layer 1 blockchains, boasting a high-performance blockchain architecture that aims to revolutionize decentralized applications and financial systems. In this quarterly analysis, we will dive into the architecture of Fantom, exploring its key components, strengths, and potential areas of improvement. The purpose of this report is to highlight recent developments being made on Fantom’s roadmap, observe the broader Fantom ecosystem and how it's held up with the tumultuous post-FTX crypto landscape and observe potential futures for Fantom as a highly performant Layer 1 blockchain. Fantom places scalability and throughput at the forefront of its design philosophy. At the heart of its architecture is its Directed Acyclic Graph (DAG) structure, an alternative to the linear designs present in other blockchains’ architectures. This DAG structure helps enable the parallel processing of transactions, unlocking the potential for significantly higher transactions per second, one of the key benchmarks for highly scalable blockchains. By leveraging this innovative design, Fantom aims to overcome the scalability challenges faced by traditional blockchains, allowing for real-world applications that require rapid transaction finality and high throughput. Critical to the Fantom architecture is its consensus mechanism, the Lachesis Protocol. This mechanism, built upon an asynchronous Byzantine Fault Tolerance (aBFT) algorithm, ensures secure and efficient consensus across the network. With aBFT, Fantom achieves fast transaction finality, with confirmed transactions occurring within seconds. This rapid finality enhances user experience and opens doors to high-frequency trading, real-time payment systems, and other time-sensitive applications. Through the use of Fantom’s aBFT technology, it’s also possible for the blockchain to achieve true finality, a term that describes the fact Fantom doesn’t have to worry about waiting for transaction confirmations; when a transaction is sent, it is confirmed. The chart below shows the benefits of Lachesis aBFT compared to other consensus mechanisms, with Fantom achieving scalability, lower latency and a relatively high ratio of decentralization. For the full report click here .
FEducation
by ReflexivityResearch
Chainlink CCIP OverviewChainlink recently launched its Cross-Chain Interoperability Protocol (CCIP) on mainnet, marking not only a significant advancement in its own roadmap but also for the DeFi economy at large. Designed to facilitate communication and value transfer across initially four incompatible networks (Ethereum, Polygon, Optimism, and Avalanche), CCIP aims to address the critical challenges involved in cross-chain bridging. By facilitating liquidity to be globally accessible and allowing the value of applications to flow across networks, CCIP builds on the battle-tested Chainlink infrastructure that has enabled trillions in transactional value in DeFi. How CCIP Works Chainlink's Cross-Chain Interoperability Protocol (CCIP) represents a significant advancement in the field of blockchain technology. Operating on Chainlink's consensus and transport layer, and powered by its Decentralized Oracle Network (DON), CCIP is a novel cross-chain communication standard that facilitates intricate multi-chain tasks. It does so by enabling arbitrary messaging and programmable token transfers between various blockchains, thus broadening the scope of what developers can achieve within the decentralized ecosystem. One of the core features of CCIP is its cross-chain message relaying service. This service allows a smart contract from a source chain to invoke Chainlink's Messaging Router, utilizing the Chainlink DON to send messages securely to the destination chain. Once the message reaches the destination chain, another Messaging Router validates it and forwards it to the destination smart contract. This mechanism ensures a seamless and secure communication pathway between different blockchain networks. In addition to the message relaying service, CCIP also introduces a cross-chain token bridge. This bridge aims to create a standard interface that fosters communication and asset transfers across various blockchain platforms. The Programmable Token Bridge within CCIP is a key component in achieving this goal. It automatically carries out predefined instructions, providing a secure and cost-efficient method for users to move assets from one chain to another. This functionality not only enhances the fluidity of transactions but also contributes to the overall interoperability of the blockchain space. Security is a paramount concern in the complex landscape of blockchain, and CCIP addresses this with robust features. One such feature is the Active Risk Management (ARM) Network, a unique set of nodes that operates separately from the primary CCIP system. The ARM Network's primary function is to monitor for any malicious activities within the system. If detected, it has the ability to pause these activities, adding a critical layer of security. This proactive approach to risk management is vital in maintaining the integrity and trustworthiness of cross-chain transactions. Furthermore, CCIP implements rate limits to enhance security. This mechanism prevents unauthorized token transfers that exceed a specified threshold, thereby fortifying the security of cross-chain transactions. By setting clear boundaries and controls, CCIP ensures that the system remains resilient against potential threats and fraudulent activities. For the full report click here .
Education
by ReflexivityResearch
TRON H1 2023 OverviewTRON is an open-source, public blockchain network designed for the creation and deployment of decentralized applications (dApps) founded in 2017. TRON officially became a decentralized autonomous organization (DAO) in Dec 2021, making it one of the largest community-governed DAOs. It employs a Delegated-Proof-of-Stake (DPoS) consensus mechanism, where 27 Super Representatives are elected every six hours to maintain the network. TRON's Virtual Machine (TVM), which uses "Energy & Bandwidth" instead of gas, allows affordable execution of smart contracts and is compatible with Ethereum's Virtual Machine (EVM). With a multi-layered architecture, TRON is recognized for its high transaction speed, low cost, and hosts the largest circulating supply of stablecoin Tether (USDT). Fundamentals and Performance At the end of H1 2023, TRON’s block height exceeded 52.5 million. There were 7,385 nodes across the network, representing a 33.5% increase over H1. In early April, the deployment of Stake 2.0 (TIP-467) on TRON’s mainnet was approved. Stake 2.0 aims to bring greater flexibility to the TRON staking model, enhancing resource utilization and system stability. It separates high-frequency resource delegation from low frequency staking operations, allowing resource re-delegation without unstaking and improving resource management. By adding stake, delegate, and vote commands to the TRON Virtual Machine (TVM), it expands use-cases and supports more applications. Moreover, Stake 2.0 introduces a delay in unstaked TRX arrival to bolster the staking model's stability and create a more predictable network for participants while removing the 3-day non-voting period. At the end of H1, TRX staked through Stake 2.0 accounted for 10.8% of the total stake, benefiting from added support for Stake 2.0 by the likes of Trust Wallet, Gaurda Wallet, NOW Wallet, and Via Wallet, among others. For the full report click here .
Education
by ReflexivityResearch
Avalanche Q2 OverviewThroughout Q2 Avalanche has been continuing to push out new upgrades, exciting collaborations, and a series of impressive metrics across the board. The purpose of this report is to examine everything that’s happened in the broader Avalanche ecosystem recently, along with some of the numerous advancements with its Evergreen Subnets and continued growth in daily active users and transaction count. While we have tried to be as comprehensive as possible, there’s always a chance we missed a topic - if you’re looking for more information, you can check out the Avalanche Twitter and active blog. From the much-awaited Avalanche Summit in Barcelona that made waves in the crypto community, to the Cortina Mainnet Upgrade that enhanced the consensus mechanism across the primary network to further enhance compatibility with Avalanche’s Warp Messaging, Avalanche has been pushing its ecosystem further ahead. As we discussed in our previous research, Ava Labs launched the Evergreen testnet, Spruce, attracting heavyweight partners like T. Rowe Price Associates and Wellington Management. In the coming phases, Spruce promises to open up third-party applications, assets, and processes, truly expanding the horizons of on-chain trade execution and settlement. In addition, SK Planet's Avalanche Subnet launch which will serve as a hub for digital collectibles and decentralized communities, to the introduction of Beam by Merit Circle DAO, a gaming subnet that will host new gaming-focused tooling and an NFT marketplace. This subnet will focus heavily on improving blockchain knowledge amongst the masses and improving Ava Labs’ brand recognition in the process. To start, there will be an NFTintegrated plan to familiarize younger generations with the OK CASHBAG program and a road-to-riches NFT membership. So far, over 122,000 addresses have registered on the subnet in less than two months. However, it's not just about launching new features and upgrades; Avalanche has also been witnessing impressive network performance. Monthly active addresses witnessed a surge, along with monthly transaction count and gas usage. On the DeFi front, Trader Joe and GMX continued to dominate as top DEXs, along with Stargate, Wonderland, and Aave pushing ahead with their multichain vision. Avalanche’s TVL sits at a little over 123 million AVAX, up from its April low of roughly 90 million AVAX - this puts Avalanche as the 5th largest chain by TVL as of writing. In USD terms, this is roughly $1.5 billion. One of the biggest successes in recent months has been Dexalot’s continued volume growth since early 2023, achieving over $81 million in cumulative volume and exploding in growth over the last month and a half. Arrow Markets has been GameFi and NFTs on Avalanche have seen substantial activity too. Avalanche saw DeFi Kingdoms continue to grow its lead, while in the NFT lane, there was a significant rise in new NFT mints. Additionally, Avalanche has been able to attract more artists to the digital world with its Avaissance program offering residency for artists. More on this in a later section. In terms of cross-chain activity, Avalanche emerged as a suitable Omnichain Hub for a variety of applications. For the full 15-page report click here .
Education
by ReflexivityResearch
2
Polygon Q2 OverviewAs the crypto market continues its upward trajectory, spurred on by the introduction of numerous institutional Bitcoin ETFs, Polygon has not been idle. It has been making considerable progress, rolling out new updates, forging exciting partnerships, and consistently delivering impressive metrics. This report aims to delve into the recent developments within the expansive Polygon ecosystem, focusing on the significant advancements with its zkEVM, and the consistent growth in daily active users and transaction count. We have endeavored to provide a comprehensive overview, but there may be areas we've overlooked - for more detailed information, we recommend visiting Polygon’s Twitter and their active blog. We appreciate your time and interest in reading this report. Let's hop in. June has been a momentous month for Polygon. The eagerly anticipated Polygon 2.0 announcements have created a buzz in the crypto community, and the launch of Polygon PoS -> ZK L2 has improved the consensus mechanism across the main network, propelling Polygon's ecosystem forward. In our previous report, we mentioned the launch of the zkEVM testnet by Polygon, which has drawn major partners such as Meta. This partnership will allow Instagram users to mint, display, and sell digital collections powered by non-fungible tokens (NFTs) on Polygon, providing creators with a novel way to interact with and monetize their fan communities. The zkEVM is set to broaden the scope of on-chain trade execution and settlement by incorporating third-party applications, assets, and processes in its future phases. Furthermore, the selection of an Institutional DeFi Ecosystem Project on Polygon by the Bank of Italy’s Innovation Center is noteworthy and a huge step up for Polygon and crypto more broadly. This project, along with the introduction of Polygon ID’s Release 4, will serve as a hub for digital collectibles, decentralized communities, and gaming-focused tooling, including an NFT marketplace. For the full 13-page report, click here .
MEducation
by ReflexivityResearch
2
UNDERSTANDING COMPLEX PULLBACKWhat is a two-legged pullback ? A two-legged pullback in the market is a pattern of price action in which the market retreats in two separate steps or movements before resuming its primary trend. This is a counter-trend move. After a strong trending move, price needs to sort of take a break and there is a double attempt to reverse the trend. When the price hits a strong zone, the price pulls back from it and if the trend does not continue, a second pullback occurs. Here the second pullback is approximately equal to the first one. We use this model for 2 purposes in the market: - Projection of the next move - End of pullback If you look at the market, it likes power of two, be it a double top/bottom, a double test of the uptrend, followed by a breakout. Let's look at the example of the recent movement on EURUSD. As we can see the asset has been in a strong bearish trend for a long time. The price bounced off the support and made the first pullback and then the second one. Note that the first pullback ended where there were no strong levels. But when we have the second pullback, we can see that it ends right at the strong resistance. This was an additional signal to enter a trend trade. A two-legged pullback in the context of the market Traders using the two-legged pullback strategy usually wait for both legs of the pullback to complete before entering a trade. It is very important to look at the context of the market here. If it happens that the second leg breaks through the lower high or higher low, it is a reason to be wary because it is usually a sign of a trend shift. The first leg can be projected and wait for the price at these levels. If it coincides with a strong level, it is a trade with a high probability of success. Let's look at some examples The recent example of gold shows well the interaction of a two-legged pullback with a strong level. The first time we got a pullback A. The price paused and then went up. The question remains where we should wait for price. We simply take the A pullback and project it and get the approximate end of the C pullback. This pullback ended on a strong resistance, which led to the price reversal . The EURUSD, too, after a strong bearish movement, rolled back to the resistance, making a two-legged pullback. Note that the EURUSD touched a strong level and fell. Although it did not lead to a complete reversal of the price, but we got a reaction and a short term trade. Here you can see a perfect example that there can be a third leg, which exactly led to the price reversal. The UKOIL example perfectly shows a trending trade. The price bounced off the resistance, and as you noticed there was a two-legged move before that. When A and B have formed, we use the projection method to wait for the price at the end of C. The last example is a great example of a perfectly formation of the two-legged pullback. The price has not yet triggered the level. But what do we have here? A downtrend, a two-legged pullback and a strong resistance at 1.66000. Will the trend continue, what do you think? Let's see. Traders, If you liked this educational post, give it a boost and drop a comment.
Education
by Lingrid
7
How to succeed in trading ✅From the experience I have in trading I have identified 3 pillars on which my success is based. I can't say that one is less important than another, so I try to combine all of them: 1) Psychology - is one of the most difficult aspects to master, which requires a lot of theoretical and practical knowledge, so I recommend first of all to study yourself, after you have managed to identify what kind of person you are, you will gain knowledge from books, videos, trainings that will help you control your emotions when trading. At the same time, this aspect can help you in your daily life. 2) Risk management - due to proper risk management, I managed to become funded. I also understood that in trading it is more important to tend to have a small risk, than a high profit, because greed for money can bring you into a less pleasant situation. I managed to take the account with a risk of 1% per trade and with an RR of at least 1: 2, which therefore showed me that even if I take 6 sls for 10 trades, I still remain profitable. 3) Trading plan - this is the aspect that motivates me to progress, once I have made a trading plan with well-defined goals, I tend to fulfill them. In addition to the purposes, a trading plan should contain the strategy applied, as well as the rules for entering / managing / exiting the transaction.
OANDA:XAUUSDEducation
by Snick3rSD
CHOCH vs BOS ‼️WHAT IS BOS ? BOS - break of strucuture. I will use market structure bullish or bearish to understand if the institutions are buying or selling a financial asset. To spot a bullish / bearish market structure we should see a higher highs and higher lows and viceversa, to spot the continuation of the bullish market structure we should see bullish price action above the last old high in the structure this is the BOS. BOS for me is a confirmation that price will go higher after the retracement and we are still in a bullish move WHAT IS CHOCH? CHOCH - change of character. Also known as reversal, when the price fails to make a new higher high or lower low, then the price broke the structure and continue in other direction.
OANDA:XAUUSDEducation
by Snick3rSD
What is Confluence❓✅ Confluence refers to any circumstance where you see multiple trade signals lining up on your charts and telling you to take a trade. Usually these are technical indicators, though sometimes they may be price patterns. It all depends on what you use to plan your trades. A lot of traders fill their charts with dozens of indicators for this reason. They want to find confluence — but oftentimes the result is conflicting signals. This can cause a lapse of confidence and a great deal of confusion. Some traders add more and more signals the less confident they get, and continue to make the problem worse for themselves. ✅ Confluence is very important to increase the chances of winning trades, a trader needs to have at least two factors of confluence to open a trade. When the confluence exists, the trader becomes more confident on his negotiations. ✅ The Factors Of Confluence Are: Higher Time Frame Analysis; Trade during London Open; Trade during New York Open; Refine Higher Time Frame key levels in Lower Time Frame entries; Combine setups; Trade during High Impact News Events. ✅ Refine HTF key levels in LTF entries or setups for confirmation that the HTF analysis will hold the price. HTF Key Levels Are: HTF Order Blocks; HTF Liquidity Pools; HTF Market Structure.
OANDA:XAUUSDEducation
by Snick3rSD
Market Structure Identification ✅Hello traders! I want to share with you some educational content. ✅ MARKET STRUCTURE . Today we will talk about market structure in the financial markets, market structure is basically the understading where the institutional traders/investors are positioned are they short or long on certain financial asset, it is very important to be positioned your trading opportunities with the trend as the saying says trend is your friend follow the trend when you are taking trades that are alligned with the strucutre you have a better probability of them closing in profit. ✅ Types of Market Structure Bearish Market Structure - institutions are positioned LONG, look only to enter long/buy trades, we are spotingt the bullish market strucutre if price is making higher highs (hh) and higher lows (hl) Bullish Market Structure - institutions are positioned SHORT, look only to enter short/sell trades, we are spoting the bearish market strucutre when price is making lower highs (lh) and lower lows (ll) Range Market Structure - the volumes on short/long trades are equall instiutions dont have a clear direction we are spoting this strucutre if we see price making equal highs and equal lows and is accumulating . I hope I was clear enough so you can understand this very important trading concept, remember its not in the number its in the quality of the trades and to have a better quality try to allign every trading idea with the actual structure
OANDA:XAUUSDEducation
by Snick3rSD
Countries with the Highest Debt-to-GDP Ratio 🌍💰📈 The world's financial landscape is a tapestry of economic prowess and fiscal challenges. A critical indicator of a nation's economic health is its debt-to-GDP ratio, a measure that reveals the extent to which a country's debt burdens its economy. In this insightful exploration, we'll delve into the figures that highlight countries grappling with the highest debt-to-GDP ratios. With real-world examples, we'll shed light on the complexities of global debt dynamics and their potential impact on the world economy. Understanding Debt-to-GDP Ratio The debt-to-GDP ratio is a crucial metric that reflects a country's ability to manage its debt relative to the size of its economy. A higher ratio indicates a greater level of indebtedness. Let's examine why this metric is so significant and its implications: 1. Greece: A Tale of Economic Turmoil Greece serves as a prominent example of a country with a high debt-to-GDP ratio. In the early 2010s, Greece faced a sovereign debt crisis that shook the European Union. Its debt-to-GDP ratio exceeded 180%, signaling unsustainable levels of debt. The crisis forced Greece to implement severe austerity measures and seek international bailouts. 2. Japan: A Unique Fiscal Challenge Japan represents a distinctive case where a high debt-to-GDP ratio coexists with economic stability. Japan's debt-to-GDP ratio is among the highest globally, surpassing 200%. However, it has maintained economic stability due to unique factors such as a high domestic savings rate and central bank policies. 3. United States: Juggling Debt and Economic Growth The United States, with a debt-to-GDP ratio exceeding 100%, showcases the balance between debt and economic growth. While a high ratio can raise concerns, the U.S. has managed its debt effectively, leveraging its economic strength to service its obligations. The debt-to-GDP ratio is a critical barometer of a nation's fiscal health and economic stability. Understanding the complexities and nuances of this metric is essential for evaluating a country's financial resilience and potential risks. As we explore countries with the highest debt-to-GDP ratios, it becomes evident that each nation's economic circumstances are unique. While a high ratio can signal challenges, factors such as economic policies, domestic savings, and global financial dynamics play pivotal roles in shaping a country's fiscal destiny. Ultimately, the global economy is an intricate web of financial interdependencies, and monitoring these debt ratios is a vital component of navigating this complex landscape. 🌍💰📈 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
8
How to Time Manage your Trading – 6 WaysWhen it comes to the world of trading, time isn’t just money – it’s everything. A minute delay, can miss a profit opportunity. A minute delay, can make you question the trade. A minute delay, can affect your emotions. This is something I am constantly working on (even 20 years later). I truly want to wake up earlier, spot trades quicker (as they come) and have a better time management system. I might not be an expert in time management yet, but I will share some crucial tips I have learnt over the years. This will help you to not miss the trade. #1: Why you need to be punctual Being punctual isn’t just a good trait – it’s a survival skill. The markets move so quickly. They move with or without you. And they present opportunities on the daily. You need to be on time and when you see an opportunity that is about to present itself. Write it down. Stick note it. Set a reminder or something. But for Flying Spaghetti monster sake, don’t miss it! #2: Easy to miss a profit – when you don’t time analyses Every trader has stories about the “one that got away”. So what can we do to avoid this? You need to have your watchlists spread out according to what you trade. With TradingView, I have all my watchlists in different categories. Stocks, Forex, Commodities, Indices, International stocks. Etc… Then you’ll need to go over each watchlist every day. Write down the potential trades lining up. Then revisit the markets the next day. You need to be more punctual and disciplined to monitor, analyse and prepare for execution. Those golden opportunities missed due to hesitation or distractions. By maintaining punctuality in monitoring and execution, you can minimize these missed chances and keep your trading performance on the upbeat. #3: Set Reminders: The Power of Alerts Luckily, we have the technology to harness. You can set reminders for price levels to hit, on your own trading and charting platforms. Use these alerts to remind you when to act, or at least prepare for execution. #4: Sticky Note It Old school? Maybe. Effective? Absolutely! It doesn’t hurt to pick up a pen and a sticky note once in a while. Keep these visual reminders, to prioritise what you may be trading today. You’ll be surprised how useful this little pieces of paper are. #5: Develop a Routine Trading is a lifestyle. So you need to establish your routine with it. If you’re an early Hadeda you need to do a full pre-market review and write down the trades lining up for the day. If you prefer to look at the markets in the afternoon, choose a time where you will not be distracted by work, social media, kids or the Rugby! If you are an after the markets kind of trader, then do your research, analyses and even set your trading levels for the next day. I like to plot and draw all the levels and setups in the charts, and then write down which ones are almost ripe for the picking. #6: Prioritize Your Trades Not all trades are ready to action. Some might take a few days or months. What you can do is, flag them or colour them. GREEN – Act soon. ORANGE – Check over the next few days YELLOW – Trade could line up in the next few weeks RED – Potential setup but not likely in a few weeks. This approach will help you allocate your time better. So let’s sum up the time-management methods you can apply. #1: Why you need to be punctual #2: Easy to miss a profit – when you don’t time analyses #3: Set Reminders: The Power of Alerts #4: Sticky Note It #5: Develop a Routine #6: Prioritize Your Trades
JSE:J200Education
by Timonrosso
Understanding Euro Zone Economic NewsEuro Zone Economic News Explained: Purchasing Managers Index Manufacturing: The Purchasing Managers Manufacturing report is a survey of manufacturing providers in the Eurozone (EZ) and focuses in on issues such as costs and demand. Essentially, a strong PMI, in which costs are low and demand is improving is bullish for the Euro, whereas a survey that results in increasing costs and decreasing demand implicates speculation against the Euro. Manufacturing is a significant component of the EZ economy, and thus a survey that indicates optimism or pessimism about the sector can really get the markets moving, the Euro in particular. A reading of 50 is a critical measure in the PMI index with a number below 50 indicating contraction and a number above 50 indicating expansionary conditions. Taking a strong position based solely on the PMI Manufacturing Survey though could prove to be regretful. Purchasing Managers Index Services: The Purchasing Managers Services report is a survey of service providers in the EZ and focuses in on issues such as costs and demand. Essentially, a strong PMI, in which costs are low and demand is improving is bullish for the Euro, whereas a survey that results in increasing costs and decreasing demand implicates speculation against the Euro. A reading of 50 is critical measure in the PMI index with a number below 50 indicating contraction and a number above 50 indicating expansionary conditions. The services sector is very important to the EZ and any significant gains or shortcomings could set the Euro climbing or falling. Retail Trade: Retail Trade is the measure of retail sales, and thus the willingness of the consumer to spend. An upswing in this figure could result in Euro buying whereas a shortfall could cause Euro selling. This number is very important to the trader because it correlates to consumer conditions and outlook within the EZ region. If the Retail Trade figure comes in strong it means that consumers are spending money and thus are probably well off, hinting that EZ consumer confidence and the CPI may also be strong. However, if Retail Trade figures are low, it could suggest that interest rates are too high, consumer confidence is sinking, or businesses are suffering. Clearly, a worse than expected Retail Trade figure offers more information (though ambiguity hand-in-hand) than does a strong figure because a strong figure seeks reinforcement from other indicators (such as the CPI and Consumer Confidence survey) and thus lags, whereas a less-than-expected figure immediately suggests that the EZ economy is most likely turning sour in one respect. Traders will often react immediately to this release, but much caution is exercised due to the wide array of implications this number carries with it. It is inadvisable to trade solely on this figure. German Retail Sales: German Retail Sales are very similar to the Retail Trade figure but differ in that they report an aggregate number of sales at retail outlets to provide for a better estimate of German private consumption. Like in Retail Trade, traders will often look to long the Euro should the figure be impressive, and short the European currency should it fall below expectations. Much like Retail Trade, traders will use the Retail Sales figure to better understand the direction of the economy in terms of other key economic releases. One of the few advantages the German Retail Sales has over Retail Trade is the time of release. Because the German figure is reported before the EZ number, traders can “jump the gun” should they wish, though acting in such a manner is not usually advisable in the Forex market. Eurozone Gross Domestic Product: The general rule of thumb when using GDP as a fundamental signal to trade is that an improved number means Euro positive whereas a lesser or unchanged figure translates into Euro stagnancy or bearishness. The Eurozone Gross Domestic Product is a measure of the progress of the Eurozone economy as a whole. The figure is very important to traders because it gauges the level of performance with which the Europeans are proceeding as well as harbingers and undermines the set of economic data that is expected to be reported from the region during a certain time period. Generally, the disclosure of a number that’s either expected or ahead of forecasts sets off bullish signals for the Euro; a number that falls below predictions invokes the Euro bears. GDP data for Germany, France, Italy, and the collective Eurozone region tend to be most closely followed. Current Account: The Current Account Deficit is probably the most comprehensive measure of international transactions for Europe as it is the measure of net exports, (total exports minus total imports). If the figure falls below expectations, slight movements against the Euro should be expected. But it is also important to keep in mind that a number that outperforms or either falls short of expectations is not necessarily going to get the traders to act hastily. The release of this number is monthly and tends to be in accord with the Trade Balance numbers that are generally reported a day or two in advance of the Current Account figure. The Current Account Deficit is usually interpreted in one way; a large negative number is damaging to the European currency. This is because the Current Account is a reflection of the net exports, and if it is negative, it shows that the Eurozone is importing more than it is exporting; a bad sign for industries at home and means that more Euros are going out of than coming into the region. However, the negativity of the number is not what traders pay attention to, but rather the change in it; the marginal change in the Current Account. The logic is very similar to that behind the GDP in that if a number comes in below expectations, it could hurt the Euro, whereas if it out performs forecasts, it could prove bullish for the European currency (despite its negativity). However, this number cannot be solely “judged by its cover” because the number says a lot more than meets the eye. For instance, a more negative figure does indeed signal a decrease in net exports, but at the same time could also serve to patron other economic releases, such as consumer spending. If the Europeans are spending a lot of money, and that money is leading them to buy things from abroad as their fiscal conditions are allowing them to do so, then a decrease in net exports doesn’t seem so “damaging” to the Eurozone economy; it could simply mean people are buying things exotic to them because they are better off. Generally though, the trend in industrialized western nations (Eurozone included) has been that a more negative Current Account is damaging to industries at home. So if the figure falls below expectations, at least slight movements against the Euro should be expected. Unemployment Data: Unemployment is a very significant indicator for Eurozone performance. It is reported in the beginning of every month and measures the percentage of the workforce that is currently out of a job but is actively seeking to be employed. Generally, traders understand slight improvements in the unemployment figure (as monthly figures generally vacillate by tenths of percentages) to be positive for the Eurozone economy and will buy Euros, whereas a no-change or increase in the unemployment numbers could lead to Euro stagnancy or dumping across the board. The figure is important because it signals how hard the Eurozone is actually working and helps to foreshadow consumer spending. High unemployment generally leads to lower consumer spending which can be bearish for the Eurozone economy as well as the Euro. The flip scenario is also true, weak Eurozone employment is bearish for the economy as well as the Euro. Generally speaking, unemployment raises concerns about the performance of firms, questioning whether businesses are either not hiring because they do not need more help, or are not hiring because they cannot afford to do so. If the latter is the case, then it could prove even more bearish for the Euro as it could be forecasting sour economic data regarding the productivity of businesses. German Unemployment: The German Unemployment figure is expressed in thousands and measures the change in unemployment in Germany; a positive figure says that more people are unemployed, thus leading to Euro selling, whereas a negative figure is indicative of decreasing unemployment and thus leads to Euro buying. Germany is important because it is the Eurozone’s largest economy. Any big or unexpected movements in this country have significant consequences for the Euro. This figure usually coincides with the Unemployment rate, but offers “greater detail” as it reports actual numbers, so that traders may have substance to trade off of if the rate itself remains unchanged. Consumer Price Index: The Consumer Price Index measures the change in price for a fixed basket of goods and services purchased by consumers. The higher the CPI, the more positive it is for the Euro, whereas the opposite is also true. The ECB has a 2% inflation target, so whenever consumer prices grow by more than 2%, the ECB becomes concerned and contemplates the need for rate hikes. If consumer prices grow by much less than 2%, the central bank has more flexibility to adjust monetary policy and interest rates. If the CPI has substantial gains, then the ECB would have the incentive to raise interest rates to keep inflation in check, thereby benefiting the Euro. However, if the CPI remains idle, or prices decrease, then even a rate cut is possible. CPI itself though consists of a few major components: one that includes energy prices, and one that includes food prices. These two constituents are very volatile and thus tend to sometimes “exaggerate” the CPI. Though they are undoubtedly considered when considering inflationary concerns, many times traders will also focus in on the “core CPI” to see how the change in prices in other sectors measured up to the changes in these two key areas. Either way, a sharp increase would generally prompt Euro buying, and a decrease would call for Euro dumping. German ZEW Survey: The German ZEW economic survey reflects the difference between the number of economic analysts that are optimistic and the number of economic analysts who are pessimistic about the German economy for the subsequent six months. Obviously, a positive figure bodes well for the Euro, while a negative number foreshadows Euro selling. The ZEW survey is important because firstly, it gauges the economic productivity of Germany, the Euro-Zone’s largest economy. Secondly, it forecasts the string of economic releases concerned with the different sectors of the economy. For instance, something like Factory Orders, Industrial Production, or even Retail Sales could be implicated (or at least their negative or positive changes) in the ZEW survey. Therefore, the survey is one of the key economic indicators that move the Euro during its time of release; the sentiment that results usually fuels the Euro strongly in one direction (at least in the short-term intra-day period). German IFO Survey: The Germany IFO economic survey is much like the ZEW economic survey in that it measures the sentiment, the confidence, in the German economy, but differs in that it includes the market-moving words of business executives. Usually, an improvement in the figure leads to Euro bullishness whereas a decrease or an unchanged number leads to either Euro stalemating or dumping. The IFO survey usually follows the ZEW and reflects sentiment along the same lines. However, should there exist a discrepancy between the ZEW and the IFO, traders tend to give the ZEW a bit more favoritism because it lacks the bias of business executives. Trading on either the ZEW or IFO survey isn’t usually very lucrative, unless both of these numbers are in line with each other and reinforce other key fundamental indicators as well. Industrial Production: The Industrial Production figure is a measure of the total industrial output of them Euro-Zone either on a monthly or yearly basis. The number is very significant as an improvement in the figure could lead the Euro to make significant gains whereas a decline or stagnant number could lead to weakness in the European currency. The reason Industrial Production is important is because it is a confirmation of its type of preceding economic releases (PPI, CPI, Retail Sales, etc.); the only key data following the IP figure being the Eurozone CPI estimate. This is why many times, by the time the Industrial Production data is due for release, traders will argue that the market has already “priced in” industrial productivity in the previous economic releases. Therefore, though large gains or losses in this figure could spark some immediate movement in the market, the market has more or less, factored in the expected Industrial Production data. German Industrial Production: German Industrial Production is a composite index of German Industrial Output that accounts for about 40% of GDP. This figure is very important because it measures the level of German Industrial Production; an improvement usually signals a “buy” in the Euro, whereas a decline in the figure constitutes a “sell” to many traders. The reason this particular IP report is more important is because not only does it measure the industrial output of Germany, the EZ’s largest economy, but also because of the fact that though it comes out late in the month, it is one of the first IP reports, and thus serves as a harbinger to the EZ IP report; if Germany saw decline, then the EZ IP report probably won’t be too bright, at least from the perspective of the trader. In a sense, the EZ IP continues to get priced in before its release. The German release has four significant components: manufacturing, which constitutes 82% of the figure, construction, which accounts for 9.5%, energy that has a 5.9% share, and mining which has the smallest share at 2.7%. Though all four components are important for Germany, movement in its largest constituent, manufacturing, usually carries the weight of the figure and has the attention of traders. German Factory Orders: German Factory Orders is an index of the volume of orders for manufactured products in Germany. This is a key figure for many traders, as an improvement in the number signals buying of the Euro, while a shortcoming signals a sell-off. The reason this reading is important is because Factory Orders not only reflect the strength of businesses but also help forecast other key economic releases such as retail sales. If orders are high, then businesses need more inventory, meaning that consumers are probably purchasing more. Traders key in on this figure, especially its components, before reacting towards the Euro. The four major constituents of German Factory Orders include intermediate goods (45.6%), capital goods (35.1%), consumer durables (11.8%), and consumer non-durables (7.4%). All four are very significant, but for different reasons. Traders will take the first two figures, the intermediate goods and capital goods, as an understanding of the strength of businesses within Germany. If there is an increase in these categories, then subsequent economic releases such as the PMI could also look very bright. The second two say much about consumer confidence and retail sales; if these two sectors are outperforming expectations, then the Euro could see significant gains. However, traders are usually wary when interpreting the German factory orders, because given some economic scenarios, gains in some sectors may very well offset losses in others whereas during certain time periods a different emphasis may be given to the different components. Therefore prudent traders will usually first consider the weight of each component before the release comes out and then act accordingly. Eurozone Labor Costs: The Eurozone Labor Costs (inclusive of both direct and indirect) figure reports the expenditures endured by employers in the EZ region in order to employ workers. Traders will generally understand higher costs to be negative for the EZ and consequently short the Euro, whereas decreasing costs may result in buying the Euro. However, it is advisable to understand the complexities involved in labor costs. On one hand, labor costs could be interpreted as a negative for businesses, but on the other hand they could be viewed as a positive stimulus for the economy. This is because firms may simply be hiring more qualified and thus more “expensive” individuals to increase specialization. If this is the case, then individuals within the economy may be better off, signaling that optimism is rising in the EZ; the Euro may see more gains. Also, there exists the possibility that while costs are rising, revenue is also rising, thus keeping total profit for businesses constant, and at the same time increasing payouts to workers, a signal that the EZ is expanding. In this case, the Euro may also be bought. However, understanding this complexity is again subject to the current economic scenario surrounding the EZ; if it is in a situation where expansionism is fertile or businesses have excess capital, then only can the increasing costs in labor justify a long position in the Euro. If that is not the case then increasing labor costs will result in Euro shorting.
Education
by Mihai_Iacob
9
Fundamental Analysis in Forex In forex trading, fundamental analysis looks at the outlook of a whole economy to determine the actual value of a currency. The value is then compared with the value of other currencies to assess whether it will strengthen or weaken relative to those currencies. This post will further discuss how fundamental analysis is used in forex, what to look out for, and how you can incorporate it into your trading. What is Fundamental Analysis? Fundamental analysis is a way of looking at the forex market by analysing economic, social, and political forces that may affect currency prices. The idea behind this type of analysis is that if a country’s current or future economic outlook is good, its currency should strengthen due to an increase in demand for that specific currency. The better shape a country’s economy is in, the more attractive it is, which will lead to foreign businesses and investors investing in that country. This results in the need to purchase that country’s currency to obtain those assets. There are a multitude of factors that determine the intrinsic value of a country’s currency. Factors covering a whole range of economic data, social trends, and political developments come together to generate a broad view of the outlook for the country. This will subsequently drive the outlook for the currency. Due to this, forex fundamental analysis allows traders and speculators to take a longer-term view of whether the current value of a currency will likely increase or decrease towards its actual worth. Fundamental Analysis Information So, what information is used in the fundamental analysis of forex markets? There are several fundamental factors and components that analysts use to value a currency. From an economic perspective, the most important data are interest rates, inflation, economic growth, homes, and employment. Central banks and governments will use all of this information to formulate their monetary policy and fiscal policy, respectively. Changes to interest rates will impact the outlook that fundamental analysts have on a currency. As such, central bank policy decisions and governments' fiscal policy decisions are critical factors in the valuation of a currency. (More on this later.) Key Fundamental Data Let’s go into further detail on some of the most important fundamental data and how they impact the valuation of a currency: Interest rates Interest rates are a tool that central banks use to control an economy. Depending on how a country's economy is performing, central banks will adjust the general interest rate level to bring the economy back towards its respective targeted levels. When the level of one country’s interest rates is compared to another, this is a driver of the relative attractions of the currencies. A higher interest rate level will generate a better return for the holder of assets in that currency since higher interest rates draw capital from around the world as money seeks a higher rate of return, thereby increasing the demand for the currency as foreigners convert their domestic currency into the investment. Thus, the currency will strengthen relative to the other currency. Additionally, government bond yields are an indicator of the market’s outlook for central bank interest rates. Bonds pay a fixed income, so fluctuations in a bond’s price will determine its yield. If a central bank raises the interest rate, traders can get a better return on their money at the bank; therefore, the fixed-income government bond will likely be sold. So, if yields reflect the expectation of interest rate moves, fundamental analysts can compare the government bond yields of various countries to assess the relative valuation of the currencies. That is why fundamental analysts will look at interest rate differentials in their valuation to determine whether a currency is mispriced. Inflation Inflation is caused by an excess supply of money in a country's economy. This then leads to more spending, which then leads to an increase in prices. If the inflation rate is higher in one country than in another, then the relative value of its currency will decline. It is possible for inflation to get completely out of control, and in fact, there are some countries that print so much money that their currency becomes almost worthless as money. Because money has such an important function in all societies, people will often find substitutes when the domestic currency becomes worthless—even using the currency of another country, in what is also known as 'dollarization.' Inflation is a crucial driver of central bank interest rates. High levels of inflation eat away at the underlying value of an individual's assets or even savings. Furthermore, if inflation is too low or negative (deflation), it will lead people not to currently spend, and this can cause a downward economic spiral. Why would people buy something today if they think it will be cheaper tomorrow? Every month, inflation measures such as the Consumer Price Index (CPI) and Purchasing Price Index (PPI) are assessed by traders and speculators to judge a country's inflation outlook. Central banks use inflation targeting as they set interest rates. Higher inflation levels require higher interest rates to prevent continued price rises. Therefore, if one country has a higher level of inflation, it is likely that the interest rate will also need to be higher, which will also impact the currency’s value. Gross Domestic Product Economic growth is measured almost universally by changes in Gross Domestic Product (GDP). Gross domestic product is a measure of the size and health of a country’s economy over a period of time (usually measured quarterly or yearly). It is also used to compare the size of different economies at different points in time. GDP is the most commonly used measure for the size of an economy. The GDP is the total of all value added created in an economy. Value added means the value of goods and services that have been produced minus the value of the goods and services needed to produce them. The biggest drivers for GDP calculation are: Consumer spending: Also known as personal consumption expenditures, this is the measure of spending on goods and services by consumers. Government spending: It’s everything that is spent from a government’s budget within a public sector on items such as education, healthcare, defence, and more, depending on the country. Business investment: Any spending by private businesses and nonprofit companies on assets to produce goods and services is considered business investment. Balance of trade: The difference in value between a country’s imports and exports is what constitutes the balance of trade. If exports exceed imports, the country is in a trade surplus. On the contrary, if imports exceed exports, it’s a trade deficit. Homes The data on homes is very important due to the sole reason that one of the main aims for most people in life is to own a home. Additionally, a home is most likely the most expensive item a person will ever buy. So most people will work hard for a large part of their lives to own one. Because of this, housing forms an important part of the worldwide GDP calculation, so if a country's housing data is strong, this tends to also show in the country's economic performance. The biggest drivers in housing data are: Pending home sales: This number shows the number of home sales where a contract between the seller and the buyer has been signed. Existing home sales: This number measures the number and value of transactions of existing homes that were sold in a given month. New home sales: This number measures the new homes that were sold in a given month. In a strong economy, the number of new home sales tends to keep rising. Employment A country's employment rate is very important in gauging a country's economic strength. The reason is that employment is very important to a country's economic output. If people have jobs, they will spend money and contribute to economic growth. If employment is low, companies will have a shortage of workers. This will lead to lower productivity and then lower company revenues, which will then lead to companies not being able to pay back loans and even fewer jobs being available because companies can no longer sustain themselves. Also, consumer spending will decrease, and the never-ending cycle continues. The US Nonfarm Payroll employment figure is one of the most important figures that comes out on the first Friday of every month. The figure is an estimate of the number of payroll jobs at all nonfarm businesses and government agencies, the average number of hours worked per week, and the average hourly and weekly earnings. Because labour is an important economic factor of production, the unemployment rate is a good indicator of how closely economic output is to potential output, which measures economic efficiency. A falling unemployment rate is a good indicator of economic growth, while an increasing unemployment rate indicates economic decline. Fiscal and Monetary Policy Monetary policy is very important in fundamental analysis. Central banks vary in philosophy and economic stance; some central banks are 'hawkish, meaning that they prefer higher interest rates to encourage saving and investing, whereas others are 'dovish, meaning that they prefer lower interest rates to encourage consumer spending and borrowing. Economic data can help a central bank formulate its monetary policy, but there is another aspect to consider. Fiscal policy (government spending and taxation) is also relevant to the fundamental economic outlook of a country. While governments and central banks tend to be independent, they are not mutually exclusive. The fiscal actions of a government can have implications for the central bank (for example, the response of the Bank of England to the unfunded spending cuts of the UK Government in September 2022). Therefore, politics are also important. The type of government ruling a country can affect its economic outlook and, more importantly, its perception of future prospects for the country’s economy. A government that favours high spending might be seen as fiscally irresponsible. However, if the view is that this will generate more growth and a larger economy, it might be viewed positively. How fundamental analysis is used in forex trading Fundamental analysis is widely used to generate potential bull and bear markets in forex trading. Technical analysts will discuss trends; however, the medium- and longer-term fundamental outlook mostly, if not all of the time, generates the source of those trends. Fundamental traders will generally position themselves according to where they see a big trend. There might be some near-term fluctuations within the trend that can be taken advantage of using technical analysis. However, broadly speaking, a currency will move in a particular direction due to an economy’s longer-term prospects and interest rates. How traders perceive fundamental economic data is very important. On a longer-term basis, it is all about what the data means for the future outlook of the country's economy. Is a central bank on a path of raising or tightening interest rates? Does a country's government have to raise or cut taxes? Is consumer borrowing and spending too high? For short-term trading, it is all about expectations. Day traders usually look at the economic data for their signals. How did the data perform relative to market expectations? Did it beat the consensus forecast? Fundamental traders will examine how data announcements compare to the market’s estimates. Better-than-expected data should drive a stronger currency; if the data is less than expected, it tends to lower its value. Dangers when trading using fundamental analysis Though fundamental analysis can be useful in predicting the direction of currency prices, there are dangers that you need to be aware of. First, important figures like the nonfarm payroll and interest rate announcements are extremely volatile and can wipe your account instantly if you end up on the wrong side of the market. Additionally, there are times when markets are 'priced in', meaning that the move has already happened in anticipation before the fundamental data or announcement; therefore, the market is already priced in, and the market tends to go the opposite way. For example, if traders have been strongly anticipating that a country's central bank will cut interest rates, they will short the markets all the way prior to the central bank actually confirming the interest rate cut, so now the market is priced in and the market will tend to go the other way due to those traders exiting their early short positions. Forex fundamental analysis can sometimes be very complex and time-consuming. However, a general understanding of its principles will not only help you in your journey to finding consistency in the markets but will also improve your economic knowledge and awareness. BluetonaFX   
Education
by BluetonaFX
2
WHAT IS A PRICE DECELERATION?✴️ What Is A Price Deceleration? A price deceleration is when the market slows down after a trend movement. It occurs when the price of an asset begins to slow down its ascending or descending impulse. It usually occurs at key levels, such as support and resistance. The price finds it difficult to make highs at resistance and lows at support. It all looks like an upward or downward wedge at levels or just channels. Price deceleration can occur at the end of a trend movement or at the end of a pullback. When the price approaches key levels, the bulls are reluctant to buy and the bears are reluctant to sell, which is characterized by price deceleration and poor highs and lows trading. As a result, this leads to a pullback or a complete reversal of the trend. Therefore, this one works well for price reversals. ✴️ Price Deceleration Identification One of the key features of a deceleration and then a price reversal is divergence. The pattern is formed when the price touches the channel border for the fourth time. Thus, we determine the first clues of the future price reversal or price continuation. Another important sign of deceleration is a decrease in the slope angle or steepness of the trend line, as well as a decrease in the size of price swings. It means that the price is squeezed before the impulse movement. Price usually shoots up and accelerates after the squeeze. ✴️ Confirmation Of Price Deceleration Oscillators are used to confirm the deceleration. For example, the relative strength index (RSI) shows divergence very well. Price, after a strong movement like a big ship, still makes some motion moving forward. So, it does not stop immediately. At this time, RSI shows that there is no strength in this movement and goes in another direction, confirming divergence and a soon reversal. Once we have four touches forming the channel, we can look for entry opportunities. Usually the 3rd or 4th touches of the border lead to reversal IF it is confirmed by RSI divergence. ✴️ Plan Your Entry and Exit Points Once we have identified the price deceleration, we need to plan entry and exit points. If the price touches the upper channel and the oscillator shows a bearish divergence, it can be called a confirmation. Usually, if there is a divergence, the price immediately goes in the opposite direction. The engulfing candlestick or pinbar can be used as a trigger to enter the market, as it perfectly shows the current market sentiment and the dominance of one of the sides, be it bulls or bears. The optimal risk/profit ratio in trades is 1:2, because if the trade is counter-trend, there is a probability that the price will go further along the trend. More Examples BTC/USD USD/CAD XAU/USD
Education
by DeGRAM
25
Warren Buffett's Margin of SafetyIn the world of investing, few names carry as much weight as Warren Buffett. Often hailed as the Oracle of Omaha, Buffett's wisdom has guided countless investors to financial success. At the core of his investment philosophy lies a concept he considers paramount: the Margin of Safety. Buffett once famously said that the three most important words in investing are "Margin of Safety." To delve deeper into this principle, he pointed to Chapter 20 of "The Intelligent Investor," a seminal work by Benjamin Graham, which he deemed the best chapter ever written on the subject. Chapter 20: The Concept of a Margin of Safety At its essence, the Margin of Safety revolves around the idea that every stock has a fair (intrinsic) value based on the underlying company. However, this fair value often deviates significantly from the stock's current market price. No Margin of Safety: When the stock price exceeds its fair value, there is no margin of safety. Margin of Safety: When the stock price falls below its fair value, a margin of safety exists. Benefits of the Margin of Safety Investing in any asset for less than its intrinsic value is a sound financial decision. However, in the world of investing, where determining precise fair values can be elusive, this principle holds even greater significance. One can never pinpoint an exact fair value; they can only estimate a range. The Margin of Safety serves as a shield against potential errors in estimating fair value. The Mathematical Advantage A Margin of Safety provides two critical mathematical advantages: Downside Protection: Avoiding losses is paramount in investing. It takes a 100% gain to recover from a 50% loss. Therefore, preventing losses should be a top priority. Exponential Returns: Imagine a stock with a fair value of $10 but currently trading at $8, offering a 25% upside. Now, if that same stock were available for $5, the upside potential would skyrocket to 100%. A Margin of Safety can turn a good investment into an exceptional one. Why Do Margins of Safety Exist? The concept of Mr. Market, introduced by Benjamin Graham, plays a pivotal role in understanding the existence of Margins of Safety. Mr. Market is depicted as an impulsive individual, prone to bouts of depression (selling stocks at a discount) and exuberance (selling at a premium). Stock markets exhibit such fluctuations due to the psychological biases and errors of market participants. Understanding this human element is crucial in grasping the significance of Margins of Safety. In the words of Warren Buffett himself, "If you understand chapters 8 and 20 of 'The Intelligent Investor' and chapter 12 of 'The General Theory,' you don't need to read anything else." These chapters provide a foundation for investors to navigate the complexities of the market with the wisdom of a Margin of Safety. In conclusion, the Margin of Safety isn't just a concept; it's a guiding principle that can safeguard your investments and unlock their full potential. Buffett's reverence for this idea underscores its importance in achieving success in the world of finance.
Education
by Vestinda
Peter Lynch's Timeless Investing Principles Introduction Peter Lynch, one of the most celebrated investors of all time, is renowned for his remarkable track record managing the Fidelity Magellan Fund from 1977 to 1990. Under his stewardship, the fund generated average annual returns of approximately 29%, outperforming the S&P 500 by a substantial margin. Lynch's success was not just a stroke of luck; it was the result of a well-thought-out investment philosophy and principles that remain relevant to this day. In this five-page article, we will delve into the core principles that underpin Peter Lynch's approach to investing and explore how these principles can be applied by individual investors seeking to achieve their financial goals. I. Invest in What You Know One of the foundational principles of Peter Lynch's investment philosophy is to "invest in what you know." This principle emphasizes the importance of understanding the companies and industries you invest in. Lynch believed that individual investors have a natural advantage over professional fund managers because they can leverage their everyday experiences and knowledge to identify promising investment opportunities. Lynch often cited examples from his personal life to illustrate this principle. For instance, he famously discovered the potential of the Hanes Corporation when he noticed his wife buying their products. He reasoned that if his family liked the company's products, there was a good chance that others did too. This simple observation led to a highly profitable investment. II. Long-Term Perspective Lynch advocates taking a long-term perspective when it comes to investing. He discouraged frequent trading and market-timing, believing that such strategies often led to poor performance and excessive transaction costs. Lynch's approach focused on identifying fundamentally strong companies and holding them for the long haul. He often remarked, "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." This means that in the short term, stock prices can be influenced by emotions and market sentiment, but over the long term, the fundamentals of a company will ultimately determine its stock price. III. The P/E Ratio The Price-to-Earnings (P/E) ratio is a fundamental metric Lynch frequently employed in his investment analysis. He believed that the P/E ratio could provide valuable insights into a company's valuation. A low P/E ratio might indicate an undervalued stock, while a high P/E ratio could suggest an overvalued one. However, Lynch cautioned against relying solely on the P/E ratio. He emphasized the importance of considering a company's growth prospects, industry dynamics, and competitive position when evaluating its stock. A low P/E ratio might be justified if a company has strong growth potential. IV. Diversification and Concentration Peter Lynch had a nuanced approach to diversification. While he recognized the benefits of spreading risk across different investments, he also believed in concentration when you have high conviction in a particular investment opportunity. This approach is sometimes referred to as "diworsification" – spreading investments too thin, which can dilute returns. Lynch advocated holding a concentrated portfolio of your best ideas while still maintaining a level of diversification to mitigate risk. He noted that over-diversification could limit potential gains and lead to mediocre performance. V. Be Patient and Contrarian Lynch's investment philosophy often aligned with being patient and contrarian. He suggested that investors should not be swayed by short-term market fluctuations or popular trends. Instead, they should have the patience to wait for the market to recognize the value of their investments. Moreover, Lynch saw value in going against the crowd when necessary. He believed that some of the best investment opportunities could be found in out-of-favor industries or companies that others were avoiding. Contrarian thinking often led him to uncover hidden gems. VI. Stay Informed and Do Your Homework Despite his emphasis on simplicity and "investing in what you know," Lynch was a firm advocate of doing thorough research and staying informed. He advised investors to study financial statements, read annual reports, and understand the ins and outs of the companies they invested in. Furthermore, Lynch recommended paying attention to economic indicators and industry trends. Being well-informed allowed him to make informed investment decisions and identify potential risks and opportunities. Conclusion Peter Lynch's principles of investing continue to resonate with both novice and experienced investors. His common-sense approach, emphasis on knowledge and patience, and focus on long-term value have stood the test of time. By adhering to these principles, individual investors can navigate the complex world of finance with confidence and increase their chances of achieving their financial goals. Whether you are a seasoned investor or just starting on your investment journey, Peter Lynch's timeless wisdom provides a solid foundation for success in the world of investing.
CAPITALCOM:US100Education
by financialflagship
10
Qredo OverviewQredo Overview Despite a challenging 2022, signs of institutional digital asset adoption – here, here, and here – are still aplenty. However, a major barrier that continues to prevent these large capital pools from coming onchain is still the risk and complexity associated with most forms of digital asset custody. Whether it’s the single point of failure risk of self-custodying private keys or the reintroduced counterparty risk and illiquidity that comes with entrusting third parties, most existing solutions have glaring flaws. Qredo is a digital asset custody protocol that sidesteps these issues by leveraging a cryptographic technique called distributed multi-party computation (dMPC). This approach distributes private key shards across a blockchain network and allows only the private key owner(s) to authorize their reassembly for the signing of transactions, thereby greatly mitigating the chance of private key loss or theft and all but eliminating counterparty risk. On top of this core security offering, Qredo has developed a suite of complementary products and services including “vaults” to store, manage and trade digital assets directly from self-custody, as well as integrations with premiere Web3 wallets like MetaMask Institutional and WalletConnect. Qredo’s complex, multifaceted middleware is worth understanding because it plays an increasingly important role behind the scenes. It has been embedded into core workflows and operations by over 350 of the industry’s leading funds, custodians, and market makers. And now, thanks to a sweeping product upgrade, Qredo is well-positioned to become essential to the entire crypto community – from institutional investors to developers and builders, to crypto-native market participants. Background Qredo Ltd. was co-founded in late-2018 by Anthony Foy, a seasoned business executive and entrepreneur with more than 20 years of experience in cybersecurity and scaling up digital businesses. Qredo shipped out the Qredo v1.0 Testnet at the end of 2019 and the Qredo v1.0 Mainnet about a year later, in September 2020. Since Mainnet, Qredo has continued shipping throughout market cycles, building an impressive suite of products and features to facilitate the securing and deployment of, as well as building with, digital assets in the realm of DeFi. For the full 20+ page report, click here .
QEducation
by ReflexivityResearch
VeChain OverviewIntroduction to VechainThor Initially launched as a private consortium chain in 2015 to enable enterprise blockchain ecosystems, the team quickly realized the value-add of trustless, immutable, and decentralized information. With this realization, Vechain began the process of going public, launching a foundation, and conducting an Initial Coin Offering (ICO) in 2017. VechainThor is the public blockchain launched in 2017 and built by the Vechain Foundation. It was conceived with a focus on enterprise use cases and designed to foster the proliferation of business-oriented decentralized applications (dApps). The network was specifically designed to overcome technical hurdles posed by other public blockchains such as scalability, unpredictable gas fees, and an unwillingness by businesses to handle crypto assets directly. Initially conceived to solve problems in supply chain management - a vision born from CEO Sunny Lu’s experiences as Chief Information Officer at Louis Vuitton China - Vechain launched its mainnet in 2018, embracing Ethereum’s technology framework but with additions aimed at tackling issues like high transaction costs and scalability. Vechain’s blockchain delivers instant visibility, traceability, and transparency within business operations, enabling blockchain adoption with adherence to local regulatory regimes. In turn, Vechain has allowed companies to save on costs and time while increasing operational efficiency. In March 2023, Vechain announced its partnership with Boston Consulting Group, considered a Top Two Global Management Consultant with specialisms in the fields of ESG and sustainability. Between them, the pair outlined their approach to helping enterprises and individuals act more sustainably through ecosystems that reward and incentivize specific user engagement. An early prototype of this approach to sustainability can be found here, developed alongside BYD and DNV, rewarding drivers of electric vehicles with credits that could be spent with participating retailers... For our full 20-page+ report, click here
Education
by ReflexivityResearch
6
Investing vs Trading: A Comparative AnalysisHello, money enthusiasts! Whether you're a Wall Street wolf or a Main Street newbie, today we're diving into the exhilarating world of finance to dissect two popular money-growing strategies - investing and trading. So, sit back, relax, and prepare to soak up some knowledge! The Basics Let's kick things off with some simple definitions. Think of investing as adopting a kittens. It requires time, patience, and care, but over the years, the bond strengthens and becomes incredibly rewarding. On the flip side, trading is like pet-sitting. You look after someone else's pet for a short while, enjoy the perks, and then move on to the next one. It's all about quick interactions and constant change. Risk & Reward: The Financial Tango In the world of finance, risk and reward are partners, always moving together. Investing often involves lower risk and lower returns over a long haul. It's a slow waltz where you glide along with the rhythm of the market. Trading, however, is a fast-paced salsa. It's high risk, high reward, and you need to keep up with the tempo. The possibility of quick gains is exciting, but remember - one misstep can lead to a financial tumble. Time Commitment: Marathon vs Sprint Investing is like running a marathon. Once you've done your research, picked your stocks (your training plan), and invested, you can pace yourself and wait for the finish line. Trading, in contrast, is a series of sprints. It demands constant attention, quick decisions, and the stamina to keep going. You need to be on your toes, ready to sprint when the starting gun fires. Skills & Knowledge: Driving vs Racing Investing generally requires a basic understanding of a company’s fundamentals, kind of like driving a car. You know the basics, you follow the rules, and you get to your destination safely. Trading, however, is like racing. It requires an in-depth understanding of market trends, technical analysis, and financial charts. You need to know your vehicle inside out, anticipate the moves of other drivers, and make split-second decisions. Emotion & Stress: Meditation vs Thrill Ride Investing is akin to a meditation session. It's slow, steady, and although it might seem boring at times, it's beneficial in the long run. Trading, on the other hand, is like a thrill ride. It's exhilarating, nerve-wracking, and requires a strong stomach. But for some, the thrill is part of the appeal! In conclusion, whether you choose to invest or trade depends on your risk appetite, time commitment, knowledge level, and how much excitement you want from your money. Neither approach is inherently better—they're just different strategies to reach financial growth. So, are you the patient pet owner, nurturing your investment over time? Or are you the dynamic pet-sitter, always looking for the next opportunity? Whichever path you choose, remember to stay informed, stay calm, and may your financial journey be prosperous. Happy money managing!
NASDAQ:IXICEducation
by AfnanTAjuddin
Joe Ross Trading StrategyHello everyone This post will be devoted to the trading methods of the famous trader Joe Ross. There is very little information about Ross on the internet, mostly copied from his books, so let's try to study this situation more deeply. The information is not for beginners. Support and resistance, trend lines, the concept of flat market, all this should be already worked out. You should already know and be able to apply them. You should also take into account that this Ross strategy used only in a trending market. It is not applicable in a sideways movement or choppy. 1-2-3 Setup 1-2-3 setup according to Ross is a reversal formation, that is, its development is information for thinking about the change of the current trend. This setup works absolutely on any timeframe and asset, which once again confirms its quality and flexibility. Bullish Setup This setup is formed at the end of the downtrend and consists of 3 key points. EURUSD chart, 1 hourly timeframe will be used as an example. What is the point of the setup; after the bearish movement, when the price consistently made new lower highs and lows, a breakout of the last local high was formed. This means that there may have been a change of movement and market sentiment. The setup is considered complete after the breakout of point 2. It is not the closing of the candle above point 2 that is considered a breakout, but the creation of a new high above this mark. After that it is taken as a condition that there is a new bullish trend. So, what we have in the case of a set-up occurring: • A clear 1-2-3 pattern • The pattern is finally formed and considered formalized after breaking the high/low at point 2 We identify the peaks, then we look for some sort of 1-2-3 formation to begin to emerge. If the last high is broken in a bullish setup, we look to see if this formation is clearly visible. If yes, we can enter the trade. Bearish Setup How this formation is built and what to pay attention to when marking charts. As we can see on the 1st chart, point 1 has formed a new low with its shadow. And here, when moving to the potential point 2 and then to point 3, the most important thing to pay attention to when marking this setup (for the example, we take a bullish setup) is hidden, namely: • The highs of the candles from point 1 to point 2 must be higher than the previous ones. In other words, each new candle makes a new high. As soon as the next candle is formed without making a high - we have point 2 • When moving from point 2 to point 3, each candle should make deeper lows, while the upper highs of the candles should not be higher than point 2. If shorter, we have a decline going down like a ladder • As soon as the next candle closed without forming a new low - ready, we have point 3 Ross Hooks (RH) The next step, and it is the main one in trading this method, is Ross's Hooks. This is the fundamental part of his strategy, which, by the way, uses it more than half a century. So, we have a 1-2-3 setup. There is a breakout of point 2 and the price goes up further. Each new candle makes a new low, while the highs does not go above the point 3. As soon as the next candle fails to make a new low, we have a Ross Hook (RH). Let's look at an example for clarity: We broke through point 2, created a new low and rolled back. The first RH and confirmation of the trend change to a downtrend appeared. Further price movement will be based on attempts to break through RH and pullback after the breakthrough and further attempts to establish new lows. It would be interesting to note that at the current stage we do not care what candles formed this trend, there is no need to pay attention to Price Action setups. Even this simplified view shows the development of the trend, its growth and direction. Later we will see how to apply hooks and trade with them in combination with Price Action setups. Ross Reversal Hooks Ross Reversal Hook (RRH) is formed by a pullback from RH and the formation of a new low in the current trend. Let's take a look at the same example above: Ross Trend Detection Methods So, let's summarize the main methods of determining the Ross trend and its pros and cons. Cons: • Firmly identifying a trend change happens quite late. In other words, a part of the trend movement is lost. • It is extremely rare that a 1-2-3 formation is formed, then RH, and the trend changes sharply to the opposite. Pros: • Despite the late entry, we have fairly reliable entries with low risks to our capital. • We have a strict orderly system and we can clearly see if there is a trend on the current timeframe or not. • The 1-2-3 and Rh formation works perfectly on any timeframe. • The period of trend change can be detected at an early stage if we apply filtering and Price Action methods. Now let's discuss trend detection methods in conjunction with basic Price Action methods. Forex trading is highly dependent on a few major factors. These are leverage size, spread size, lot size to trade, asset to trade. Now, as for the definition of trends. Ross' principles are applicable to any timeframe, so, having defined your trading timeframe (let's say 1 hour), you should proceed to 4 hourly, 1 daily, 1 weekly timeframes. On each of them, in accordance with the rules of technical analysis, mark the trend lines, starting from the higher timeframe. As a result, we get a picture on the trading timeframe, within which we can see the price movement at the current moment of time. And, having a complete picture, we mark 1-2-3 setups, hooks (if any) and the potential for further price movement. Finding the Best Trend Depending on the Timeframe How to determine if a trend is good? How to quickly and easily determine the timeframe, which is most interesting when trading using the Ross technique. Simply put, there should be a good growth, then a pullback of no more than 3 bars, possibly with the formation of RHR and a break of RH. If we see choppy market, a bunch of dojis, inside bars, incomprehensible moves; this timeframe is not quite well chosen. In particular, on GBPAUD a good timeframe can be seen on the 4 hourly timeframe, but on the hourly one the same trend does not look so good. Let's see: 4H 1H And it happens that on the hourly timeframe there is a perfect trend, but when you switch to the 4-hour or daily timeframe, there are confusions. The same is true for 15 minutes, and so on. The main thing is to learn to determine whether a trend is ""nice"" or not by just looking at it. It is also very useful to look at the previous trends on the selected timeframe. History repeats itself and trends can behave similarly precisely because there will be support and resistance lines in approximately the same places. RHs Filtering Methods Here we come to one of the most difficult parts of the Ross trade. RH filtering is something you need to pay the most attention to. Even if you don't trade Ross, but know his filtering methods - it helps a lot in terms of identifying such moments, what we call "false breakout", "collecting stops" and so on. Support and resistance line Trend line A price break or gap Accumulation The first and easiest way of filtering is, of course, in support and resistance lines. If we see that the hook hit the monthly resistance when trading on a 4 hourly timeframe, it is a good reason to think about whether a trend change will follow. But on the other hand, a breakout of the maximum of such a hook combined with strong resistance can be a good buy signal. Also, if the trend is long enough and the hook is formed at the resistance level, there is a good chance that the trend will turn sideways. The next way of filtering is the trend line or channel lines. They are good for determining the end of a pullback in a trend and the formation of reversal setups. This post is a simplified representation of Joe Ross's strategy, there are so many nuances, subtleties, and filters. Ross in his books shows combinations of his hooks with such indicators as Stochastic, ATR, Bollinger Bands, moving averages and much more. In practice, as soon as there is some "confusion" of the price, which is out of the framework of the normally current trend, you should put this tactic aside and use other ones. Hooks work exclusively in a trending markets. Traders, If you liked this educational post, give it a boost and drop a comment.
Education
by Lingrid
11
How to be a Trading WARRIOR!To trade well you need to think like a warrior. You need to harness your inner strength and go through the battles of trading. There are spectators, there are participants, and then there are warriors. These warriors stand apart. And you need to blend your skills and traits to equip you with everything you need to WIN. In this article, we’ll delve into the core qualities that can transform you into a genuine trading warrior. Mastering the Sword of Time Trading, like a warrior’s battle, is not won in haste. You need the three Ps as I often write – patience, persistence, and passion. Markets are fluid entities that are always shifting and changing. So, you need to take the time to learn how to adapt or die trying. The Shield of Dedication Your shield is dedication. You need to commit to the journey, embrace the learning curve, take the losses and drawdowns in your stride. You need to continuously seek to improve with every trade, every trend analysis, and every market lineup that comes your way. Embrace it with dedication. Discipline: The Unyielding Armour Discipline is what will make you win. You need to follow your trading plan and stick to your risk management strategy. You need to make decisions based on logic, not emotions. Discipline keeps you grounded, even in the face of market chaos. The Quest for Self-Understanding This is a self-journey too. It’s a lonely but essential quest you need to undergo. I always say you need to understand your trading personality and risk profile. Know and identify your strengths, weaknesses, and biases. This will help you to develop a stronger understanding of who you are as a trading warrior. Resilience: The Warrior’s Tenacity Resilience is about bouncing back from losses and setbacks. They are going to come. Some are going to be short. Some are going to be extending. Rome was not built in a day. Strategic Thinking: The Battle Plan Trading warriors are not impulsive. They develop a strategic plan and evaluate all possible outcomes. We make sure we calculate risks before we think of getting into a trade. So have your strategic game-plan with you all times. Adaptability: The Shape-Shifter’s Gift The financial market is volatile and unpredictable. It’s forever changing. New markets, new volume, new algorithms, new economic cycles, and new breakthroughs. A trading warrior is adaptable and can adjust their strategies to align with the changing markets. Continuous Learning: Sharpen the Sword A warrior never stops to hone their skills. You need to continue to learn, stay ahead of the market trends. And always refine your strategy when need be. Keep that sword sharp and ready for anything. Emotional Intelligence: Harness the Stallion Successful trading requires emotional control. Learn to adapt to your emotions and feelings. Become the market and think like them, so you don’t get clouded by your irrational and illogical judgement. Confidence: The Warrior’s Roar Confidence is NOT about being right. That’s ego. Confidence is embracing your losses to come. Confidence is when you trust your abilities, strategies and decisions. Confidence is being comfortable with your trading, no matter what. Independence: The Lone Wolf’s Path Trading warriors are self-reliant. They make their own decisions. They might follow a leader, but they take responsibility with their own trading and risk profile. You need to learn to take responsibility for them, and don’t blame others for their losses. Focus: The Eagle’s Gaze Trading warriors have tunnel vision. They are looking straight at their goals and responsibilities. The only thing you can do is to concentrate on your tasks, block out distractions, and don’t allow fear, greed or ego to shift your focus. Perseverance: The Mountain’s Steadfastness A trading warrior keeps going. No matter what obstacles or setbacks approach. They understand that perseverance is the key to long-term success in trading. Balance: The Zen Master’s Touch You don’t want to be glued to your trading screen. This alone will defeat you. You need to learn to balance trading, business, work and life. Don’t put so much energy in things you cannot control. Balance your life and your lifestyle. Integrity: The Knight’s Virtue In every trade, a warrior upholds honesty and fairness. They stay true to their principles, even when nobody’s watching. Integrity is what gives you the confidence, respect and laser focus you need to achieve. Courage: The Lion’s Heart This is not a faint-hearted game. You need a lot of courage and calculated risks to trade. Face losses and stand up against market pressure. Developing these qualities will not guarantee instant success. But with time, patience, and perseverance, you’ll find yourself becoming a true trading warrior! Let’s sum up the trading warrior traits… Mastering the Sword of Time The Shield of Dedication Discipline: The Unyielding Armour The Quest for Self-Understanding Resilience: The Warrior’s Tenacity Strategic Thinking: The Battle Plan Adaptability: The Shape-Shifter’s Gift Continuous Learning: Sharpen the Sword Emotional Intelligence: Harness the Stallion Confidence: The Warrior’s Roar Independence: The Lone Wolf’s Path Focus: The Eagle’s Gaze Perseverance: The Mountain’s Steadfastness Balance: The Zen Master’s Touch Integrity: The Knight’s Virtue Courage: The Lion’s Heart
TVC:SA40Education
by Timonrosso