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Fundamental Analysis

How I go about Dividends as a Trader!Q. “In your view how do you go about with dividends as a trader and as an investor? Do you buy to chase dividends when they are declared or not? A. As a position trader (short term holder), I'm not really interested in buying companies for the dividends released. That’s because I prefer to make money in the short term with the trades I take, according to my short term strategy and analysis. But if I did have an investor mentality and I wanted to take advantage of buying companies for dividends, I would do a number of things. These include: First I would do my own thorough research and due diligence on the company's overall financial health and performance. Second, I would look at the dividend history of each company to see more or less what I would have earned over the last couple of years. Also, if you look at the history of the dividend, it will help you determine whether it's a reliable company to buy. I personally don't believe it's a good idea to chase dividends with stocks. I have also never met anyone that makes money chasing dividends in the short term. The problem is when the dividend is released, the share price tends to drop quite significantly. And you could end up losing more money because of the share price drop, rather than the money you gain through the dividends. This means, you could be stuck holding onto the shares and positions for the next couple of weeks or even months, waiting for the price to recover. Reply: *Hey Timon, thanks for comprehensive respond. It cleared my confusion as a trader when it comes to dividends.
JSE:J200Education
by Timonrosso
Understanding the Crypto Market CapThe cryptocurrency market has experienced significant growth but more recently saw a huge decline as sentiment soured due to several scams, insolvencies and a lack of regulation. Bitcoin, the first and most well-known cryptocurrency, has played a significant role in this growth. In this analysis, we will explore the relationship between the crypto market cap and Bitcoin. Bitcoin's dominance in the cryptocurrency market has been significant, with the market capitalization of Bitcoin accounting for over 40% of the total crypto market cap. As a result, changes in Bitcoin's price often have a ripple effect on the entire crypto market. When Bitcoin's price rises, it can create a positive sentiment across the market, leading to increased demand for other cryptocurrencies and driving up the total crypto market cap. Conversely, when Bitcoin's price falls, it can lead to a decrease in demand for other cryptocurrencies, causing the total crypto market cap to decline. There are several factors that influence the relationship between the crypto market cap and Bitcoin. One of the most significant factors is the overall sentiment toward cryptocurrencies. When the sentiment is positive, investors are more likely to invest in Bitcoin and other cryptocurrencies, leading to an increase in the total crypto market cap. However, negative sentiment towards cryptocurrencies can have the opposite effect, leading to a decrease in demand and a decline in the total crypto market cap. Another factor that can influence the relationship between the crypto market cap and Bitcoin is regulation. Regulatory changes, such as bans on cryptocurrencies or increased oversight, can have a significant impact on the market. For example, when China announced a crackdown on cryptocurrency mining and trading in May 2021, it led to a sharp decline in Bitcoin's price and a subsequent drop in the total crypto market cap. Furthermore, technological advancements and developments in the crypto space can also influence the relationship between the crypto market cap and Bitcoin. For example, the rise of decentralized finance (DeFi) has led to the development of new blockchain-based financial products and services, driving demand for cryptocurrencies and increasing the total crypto market cap. So, what does this mean for investors and traders? Understanding the relationship between the crypto market cap and Bitcoin can be useful in making informed investment decisions. When considering investments in cryptocurrencies, investors should carefully monitor the price of Bitcoin and its impact on the total crypto market cap. Additionally, keeping an eye on sentiment, regulation, and technological advancements can help investors make more informed decisions. However, it is important to remember that the crypto market is highly volatile and can experience rapid price movements, making risk management strategies crucial for success in this market.
CRYPTOCAP:TOTALEducation
by JinDao_Tai
5 Choices you Make as a Trader - THIS Or THATFrom the second you turn on your computer, to the time you press buttons commit your funds into your trades and close your computer. You are making your own choices. Do you choose this? Do you follow that? Do you go against this? Do you type that? So technically, your financial future success lies all in your fingers. In this TradingView piece, you need to ask and answer what choices are you prepared to make – to turn your life around as a trader. CHOICE #1: Sleep until noon – Wake up early If you’re a position trader (trade once per week or so) like me, then you’ll know profitable opportunities knock VERY slowly. You can wake up late, open your trading platform and see a missed trading opportunity just like that. Or you can set your alarm, wake up to check the markets to confirm if there is a trade lined up or not. DON’T MISS YOUR TRADING OPPORTUNITIES! CHOICE #2: Only trade your starting portfolio size – Deposit money each month Let me be frank. R5,000 isn’t going to turn you into a millionaire. R20,000 isn’t going to turn you into a millionaire. I’m sorry but it has to be said. You need to find a way to keep depositing a bit of money into your trading account each month. Whether it’s 5% or 10% of savings, the more you deposit each month – the faster your portfolio will grow as you have more to make money from money. CHOICE #3: Go against your strategy – Follow your strategy I know it’s tempting to want to go against your strategy. You want to move your take profit, stop loss, you want to buy more. You want to take some money off the table. The problem is – make this choice and you’ll set a dangerous precedent. It will be the start of going against your strategy the next time and eventually, you’ll only be trading with discretionary (self) which I need to remind you is… A COMPLETE LOSING STRATEGY! The stock market doesn’t work on emotions. It doesn’t think and it doesn’t feel. So why should you? Keep to your proven and profitable trading strategy, and the profits will yield as your system has shown you time and time again. CHOICE #4: Learn and then drop the E – Try to earn and drop the $ Trading is a forever learning business. You need to learn how the markets work. You need to learn how the trading environments operate and when they are favourable or unfavourable to your strategy. You need to learn WHICH are the best instruments to trade. Which are the most reliable and secured brokers. Which trading platforms are up to date with technology. What NEW markets there are to utilise and profit from. The list continues. Please follow your own learning time line as a trader and then you’ll find it will all be worth it. CHOICE #5: LATER – NOW! I still get people who send me messages like… “Timon I’ve been following you for 15 years and haven’t started trading yet, what do you suggest?” Simple! Get out of your comfort zone, stop being lazy and take the necessary steps to start your trading journey. 15 years! You could have had all the experience you needed by now. You could have gained important lessons to build your portfolio. It’s all on you. The best time to start is NOW! There is no past (as it already happened). There is no present (as it automatically becomes the past). There is no future (as it’s still to come). So all you have is an infinitesimal photo shot of time called NOW! Got it? Make your choices and materialize your trading into the reality you’ve desired.
JSE:J200Education
by Timonrosso
How to Access Stocks Earnings Report in TradingViewWelcome back Traders! TradingView has done an excellent job providing earnings information on individual stocks! If you are a new or existing stock market trader, you will find this information helpful and I hope you learn something new. Please support this education idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these ideas delivered straight to your email in the future. Thanks for your continued support!
NASDAQ:AMZNEducation
by BKTradingAcademy
20
How to grasp the impact of news on GOLD? Here we will use the United States as an example since it is a major world economy with significant influence and weight. Point 1: Release of important data For instance, the release of US non-farm payroll (NFP), employment data (ADP), initial jobless claims, CPI, GDP, PMI, etc. all have varying degrees of impact on the price of gold. Often, the release of this important data will trigger fluctuations in gold prices. Generally speaking, when the US dollar rises, gold falls, and when the US dollar falls, gold rises. However, there may be synchronous situations, which are very rare. If this occurs, investors need to analyze and consider it carefully. For instance, the weakness of the US dollar often pushes up the price of gold, as the decline in the US dollar can allow investors who use non-US currencies as their base currency to buy cheaper gold with other currencies. It can also stimulate demand for gold, especially in the consumption of gold jewelry. Point 2: Speeches by some important officials For example, speeches by well-known officials such as those from the Federal Reserve and the US Treasury. Undoubtedly, speeches by officials from different countries are a significant factor influencing the trend of gold prices, but the impact of officials' positions, identities, and the content of their speeches on the gold market varies in magnitude. The above two points are a few of the news contents that have a significant impact on the price of gold. In addition, other economic data in the United States should also be noted as they all mutually influence and relate to each other. COMEX:GC1! BIST:XAUUSD1! MCX:GOLD1!
FX:XAUUSDEducation
by investmentMr-X
Why every trader need money management?Almost every trader, at some point in their career, wonders if they need money management. The answer is a resounding yes! Having the proper business mindset is essential to success in trading. This includes having the right attitude, being disciplined, and knowing how to manage your emotions. Without these things, it is very difficult to be successful in the markets. In this article, we will discuss why every trader needs money management. We will talk about the importance of having the proper business mindset, and we will also discuss some of the key components of an effective money management plan. By the end of this article, you will have a better understanding of why money management is so important for traders, and you will be able to start implementing some of these concepts into your own trading strategy. Business mindset Trading is a difficult business. It requires long hours, dedication, and a lot of hard work. But even with all of that, most traders still fail. Why is that? The answer is simple: they don't have the proper mindset. In order to be a successful trader, it is important to have the proper mindset. This means having the right attitude, being disciplined, and knowing how to manage your emotions. If you can master these things, you will be well on your way to success in the markets. Attitude is everything in trading. You have to be positive and believe in yourself, even when things are tough. Discipline is also key. You need to be able to stick to your trading plan, even when you are losing money. And finally, you must be able to control your emotions. Fear and greed are two of the biggest enemies of traders, so you must learn how to control them. If you can develop the proper mindset, you will be well on your way to success in trading. So what are you waiting for? Start working on developing the right attitude today! Manage losses When trading, it is essential to have a well-defined money management plan in place. This plan should include setting stop-loss orders and taking profits at predetermined levels. By having a plan in place, you can help keep your emotions in check and make more informed decisions about when to enter and exit trades. Stop-loss orders are placed with a broker in order to limit losses on a trade. When the price of the security reaches the stop-loss price, the trade is automatically sold. This type of order can be very helpful in managing risk, as it takes the emotion out of the decision of when to sell. Taking profits at predetermined levels is also important in money management. By doing this, you can take some emotion out of the decision of when to sell and lock in profits. It is important to remember that no one knows where the market will go in the future, so it is important to take profits when they are available. It is also essential to have a risk management strategy in place. This strategy should define how much capital you are willing to risk on each trade. It is important to remember that even the best traders lose money on some trades, so it is important not to risk more than you are comfortable with losing. By having a well-defined money management plan, you can help keep your emotions in check and make more informed decisions about when to enter and exit trades. This can ultimately help you improve your overall success as a trader. Confidence and self-control Confidence is key for any successful trader. A clear understanding of the market and your personal trading strategy is essential to maintaining a level head and making sound decisions. Being mindful of your successes as well as your failures allows you to learn from your mistakes and build upon your strengths. Practicing in a simulated environment gives you the opportunity to become more comfortable with the decision-making process before putting real money on the line. Self-control is another important aspect of trading. Emotions such as fear and greed can cloud your judgement and lead to poor decision making if left unchecked. Having a plan in place and sticking to it can help you stay focused on your goals even when things get tough. Diversifying your portfolio is also crucial in managing risk and ensuring that you don't put all of your eggs in one basket. By developing confidence and self-control, traders can set themselves up for success. These qualities can help them make sound decisions, manage risk, and stay calm in the face of market volatility. Keeping emotions out of trading When it comes to trading, one of the most important things that you can do is keep your emotions in check. This can be difficult to do, but it is essential for success. One of the best ways to keep your emotions in check is to have a system or strategy in place that you stick to no matter what. This will help take the emotion out of the decision-making process. Additionally, it is important to know when to walk away from a trade. If you are feeling emotional about a trade, it is often best to just step away and take a break. It is also important to have the discipline to stick to your system or strategy even when it might not seem like the best thing to do in the moment. By keeping your emotions out of trading, you will be more likely to make sound decisions and be successful in the long run. Decision making Traders need to be aware of their goals if they want to be successful. This means having a clear understanding of the risks and rewards involved in each decision. It is also important to have a plan for how to execute each decision, as well as being prepared to accept the consequences of those decisions. Making sound decisions is crucial for traders. What are your goals? Are you looking to make a quick profit or build your portfolio over the long term? Once you know, you can develop a plan that takes into account the potential risks and rewards involved in each decision. For example, if you are looking to make a quick profit, you might be more willing to take on more risk. On the other hand, if you want to build your portfolio over the long term, you might be more conservative with your trades. It is also important for traders to identify when they are making an emotionally-based decision. Emotions can cloud our judgment and lead us to make poor decisions. If you find yourself getting emotional about a trade, walk away and come back later with a clear head. Additionally, it is crucial to have the discipline stick to your system or strategy even when it might not seem like the best thing to do in the moment. Making sound decisions requires traders have a clear understanding of their goals, the risks and rewards involved in each decision, and how emotions can impact their ability make rational decisions. By having plan and sticking it, traders increase their chances success in the markets. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
12
Tips to be a Healthy Trader - Wisdom Yields HealthI came up with a corny slogan in 2013. “Wisdom Yields Wealth”. Well, today I came up with another corny slogan but relevant to today and this year. “Wisdom Yields Health”. As you know, health is the greatest wealth of all when it comes to your: Physical appearance Mental cognitive thoughts Important decision making Longevity In 2023, health is everything as the world continues to linger in a very stressed phase. (Especially, what’s going on in South Africa with Eishkom, water issues and tax month having kicked off). If you want to be a good trader, you need to focus on not only your money and mind but also your health. Health will help you optimise your trading performance. So, this is a short but important article to remind you to try be a little bit healthier. HEALTH TIP #1: Sleep Even Hours It’s an old wife’s tale that you need 7 hours of sleep. It’s proven that the sleep cycle works on EVEN hours, NOT odd. So if you sleep 7 hours, you’ll deprive yourself of the last 1 hour you need to complete your cycle. When you decide to go to sleep, set an alarm for 6 hours or 8 hours to get the right amount you need. Also, if you wake up before the alarm and you feel fresh – stay awake, don’t go back to bed. Listen to your body more and it will reward you better. You need to be clear headed when you wake up in order to take on the markets with a fresh mindset. HEALTH TIP #2: Drink COLD Water Listen… You’re made up of over 73% water. So you might as well fuel yourself up and stay hydrated. First glass in the morning and another glass every two hours. Or just have a 2 litre bottle next to you. When it’s finished, refill it. Ok you’ve heard that a million times. Here’s where it gets interesting. Did you know that if you drink ice cold water, it will help you to keep awake, will fire your neurons and will boost your thinking capabilities. That’s the big tip with drinking water as a trader. Ice, Ice baby! HEALTH TIP #3: Eat less ‘high energy to consume’ foods in the day You know what puts us off work, trading and life? Having a bloated and painful stomach, because of the stuff we ate. I’m talking breads, pastas, sweets, crisps and fried food. When you eat this stuff, you won’t feel in the mood to trade, think or work. It’s also probably affecting in the bedroom too! Eat these in moderation and NOT when you trade or a few hours before you trade. Anyway, I’m not giving advice, just some tips that’s helped me to trade better over the years. HEALTH TIP #4: Keep Walking Gyms might be inaccessible right now. And exercise is just too difficult to keep motivated to follow. So instead, take your trade for the day and go for a walk around your complex, park or anywhere just to burn those calories and keep you fit and healthy. I’m in Greece right now and nothing beats a good walk around the Ancient historical sites in Monastiraki such as the Agora, Acropolis and even the amphitheatres. Or a walk around the Marina – Flisvos harbour to take in the cool breeze and breathtaking view of the sea. Find your piece of heaven (where ever it is) to walk around and burn those calories at least twice or three times a week. I can go on about health tips, but four is more than enough to start with. Please look after yourself, your body and your mind.
JSE:J200Education
by Timonrosso
1
CURRENCY CORRELATION HEAT MAPCurrency correlation is important to understand in forex trading because it could impact your trading results often without you even knowing it. In this post, I will share some information about correlations in forex trading and how you are able to use it to your advantage to avoid unnecessary losses. Throughout my journey as a beginner trader, I have bought or sold 2 different currency pairs many times without knowing they are negatively correlated just to let the gains be offset by the other pair. My aim in this short post is to bring awareness about the positive and negative correlations between the currencies, specifically the most traded major pairs in the forex market. What is correlation in forex trading? A foreign exchange correlation is the connection between 2 different currency pairs. There is a positive correlation when 2 pairs move in the same direction, a negative correlation when they move in opposite direction, and no correlation if the pairs move with no relationship. In order to understand the relationship between 2 currencies, you must know the correlation coefficient and how it relates. What is correlation coefficient? A correlation coefficient represents how strong or weak a correlation is between 2 forex pairs. They are expressed in values and range from -100 to 100 or -1 to 1, with the decimal representing the coefficient. The higher the value of the correlation coefficient will largely reflect the movement of the other pair. See Figure 1. Correlation Heat Map For example, If the reading is -70 and above 70, it is considered to have strong correlation between the two. Readings anywhere between -70 to 70 means that the pairs are less correlated. With coefficients near the 0 mark, means little or no relationship with one or another. As traders, implementing risk management in our trading plan also reflects to correlations as you may think its a good ides to buy 2 highly correlated pairs thinking you will double your profits when in reality you may lose double the money as both trades could end up in a loss as you're doubling your risk. Figure 2 . Positive Correlation: EURUSD / AUDUSD As we can see on this line chart between EURUSD / AUDUSD, both pairs have a strong correlation coefficient as they are moving in almost the same direction. The correlation coefficient is valued at 75 as noted on the heat map. For example, if you place a buy order EURUSD and place a sell order on AUDUSD, expect a win and a loss in most cases. Figure 3. Negative Correlation: EURGBP / GBPUSD On this line chart, we can see that both of these parts are moving in opposite directions which are showing a negative correction between the two which in fact is also known as an inverted correction. The correlation coefficient is valued at -90 on the heat map which means if you place a buy order on EURGBP and a place a sell order on GBPUSD you may double your profits, but again you're doubling your risk. Figure 4. No Correlation: GBPJPY / USDJPY This line chart shows that both of these pairs move in the same direction with a correlation coefficient of -9 which has almost no correlation. If you place a buy order on GBPJPY and place a sell order on USDJPY, one of these trades will most likely end up in a loss. The pairs that have no correlation usually have different and separate economic conditions therefore coefficient values tend to be lower. In summary, understanding which pairs are correlated with one another will be able to help build your strategy and improve your trading results. Every trading strategy NEEDS to have Risk Management implemented in it as it is the key to sustainability for the long run. Trading is a marathon NOT a sprint. To learn more about forex correlations and their relationships, please see the following links. References: www.tradingview.com ca.investing.com If you felt this information was helpful, and hit the LIKE button and FOLLOW me for more educational posts and analysis. Feel free to leave a comment if you have any questions! I appreciate all the feedback. Thanks Trade Safe
Editors' picks
UEducation
by ktlfx
12
The Seven Major Factors Affecting Gold.Firstly, the demand for gold commodities affects the price. In addition to its use as a daily decorative item, gold plays an important role in industry, occupying an irreplaceable position in industries such as dentistry, electronics, and others. As a hedge tool, the price of gold is influenced by demand, and the supply and demand relationship directly affects the price of gold. Changes in production will also affect the gold price, such as the demand for teeth in Japan and the demand for jewelry in India, both of which directly affect the monthly price trend of gold each year. Secondly, the gold output determines the supply-demand balance of gold. The production of gold-producing countries directly affects the supply-demand balance of gold. Currently, China has the largest gold production, followed by South Africa. Any unexpected event, such as strikes and other special situations, will have an impact on the gold price. Thirdly, international interest rates and exchange rates directly affect the gold price. Interest rates and exchange rates have a direct impact on the gold price, especially the trend of the US dollar. The international status of the US gold price directly determines the status of the country's international finance, and the price of the US dollar also directly affects the price of gold. As the US dollar, which also has investment functions like gold, it directly affects the gold price. If the investment trend of the US dollar is strong, gold investment will be relatively less, while the opposite is true for the US dollar in a weak investment market, where the role of gold as a reserve asset and a hedge will be stronger. Fourthly, inflation stimulates the gold price. When the consumer price index rises and inflation affects investments, gold is no exception. When the price fluctuation of a country is severe, and the inflation rate is high, and the price fluctuation is severe, people's panic will intensify. When purchasing power declines, people will worry about future security and choose to buy gold to hedge, which will cause the gold price to continue to rise. Although the current role of gold in fighting inflation is not as significant as before, high inflation will still stimulate the gold price. Fifthly, political situations such as wars can stimulate the gold price. Political instability promotes the rise of the gold price, and war causes a rise in commodity prices, leading to a rise in gold prices. Similarly, as a critical strategic material, the price of gold has a remarkable correlation with the price of oil. When the price of oil rises, the gold price rises as well. Conversely, when the price of oil falls, the gold price also falls. Sixth, as a safe-haven demand, gold is the first choice Due to the small total reserves, the price of gold is relatively stable, and because it has served as a currency, it is an excellent tool for hedging and hedging. As an important hedging tool, gold has strong political sensitivity. Jewelry in prosperous times, gold in troubled times, when the economy is in recession, investment will favor gold more, and it will also directly affect the price of gold. 7. Investors’ psychological expectations The psychological expectations of investors are an important factor affecting the price of gold, but they usually do not act alone. Instead, they often change in conjunction with the variations in the aforementioned factors, amplifying or reducing the expected value of gold and causing significant differences in its price. Following the footsteps of the market, respecting the market, and aweing the market is to follow the market Pay attention to me and you will discover that trading is so simple and enjoyable!
FXOPEN:XAUUSDEducation
by Ice_and_Fire1
GOLD : Benefits of Investing in GoldOANDA:XAUUSD Gold has been an inconsistent inflation hedge, but there may still be benefits to holding a small amount of the yellow metal in your portfolio. Gold has historically had a low or even negative correlation to both stocks and bonds, suggesting it offers value as a tool of diversification. Gold prices held up pretty well during the Covid-19 pandemic market sell-off in early 2020, for example. From Feb. 1 to April 1 in 2020, the S&P 500 declined 23% while the price of gold dropped less than 0.1%. Demand for gold from investors, central banks, jewelers and tech companies is also growing. According to the World Gold Council, global gold demand increased 12% year over year to 2.189 tons in the first half of 2022. Depending on your individual goals, there are several easy ways to invest in gold. Investors can buy gold bullion, physical bars or coins that can be kept in a safe or bank. You can also buy physical gold exchange-traded funds (ETFs) that hold gold bullion on investors’ behalf. The most popular gold ETF is SPDR Gold Shares (GLD). Investors looking to speculate in the gold market can trade gold futures contracts. These contracts provide significant leverage, allowing investors to control large quantities of gold with a relatively small amount of money. Finally, investors can buy shares of individual gold stocks or a gold mining ETF. The VanEck Gold Miners ETF (GDX) holds a diversified basket of 54 gold-related stocks, including Newmont Corp. (NEM), Barrick Gold Corp. (GOLD) and Franco-Nevada Corp. (FNV). Conclusion : GOLD IS SAFE HEAVEN TO INVEST IN IT .
OANDA:XAUUSDEducation
by INVESTRONE
1
GOLD : What Drives the Price of Gold ?OANDA:XAUUSD Gold is highly sought after, not just for investment purposes and to make jewelry but also for use in the manufacturing of certain electronic and medical devices. As of February 2023, the price of gold was more than $1,870 an ounce. While down around $100 from a high posted in April 2022, it is still up considerably from levels under $100 seen 50 years ago. But what factors drive the price of this precious metal higher over time ? KEY TAKEAWAYS 1 Investors have long been enamored by gold, and the price of the metal has increased substantially over the past 50 years. 2 Not only does gold retain additional value, but supply and demand have a huge impact on the price of gold—especially demand from large ETFs. 3 Government vaults and central banks comprise one important source of demand for gold. 4 Gold sometimes moves opposite to the U.S. dollar because the metal is dollar-denominated, making it a hedge against inflation. 5 Supplies of gold are primarily driven by mining production. Conclusion : Gold Is a high Value Asset , Which Can be Hedge Against Growing Inflation.
OANDA:XAUUSDEducation
by INVESTRONE
Classic Reversal Pattern You Must Know ☑️WHAT IS THE RISING WEDGE PATTERN? The rising (ascending) wedge pattern is a bearish chart pattern that signals a highly probable breakout to the downside. It’s the opposite of the falling (descending) wedge pattern (bullish). A rising wedge can be both a continuation and reversal pattern, although the former is more common and more efficient as it follows the direction of an overall trend. The rising wedge consists of two converging trend lines that connect the most recent higher lows and higher highs. In a rising wedge, the lows are catching up with the highs at a higher pace, which means that the lower (supporting) trend line is steeper. ☑️KEY FEATURES • The price action temporarily trades in an uptrend (the higher highs and higher lows) • Two trend lines (support and resistance) that are converging • The decrease in volume as the wedge progresses towards the breakout The third point is seen more as a boost to the validity and effectiveness of the pattern, rather than a mandatory element. And it is applicable either for stocks trading mostly. ☑️SPOTTING THE RISING WEDGE Identifying a rising wedge is not so difficult. As a first step, you should eliminate all types of wedges that are present in the sideways-trading environment. The ascending wedge occurs either in a downtrend as the price action temporarily corrects higher, or in an uptrend. ☑️TRADING THE RISING WEDGE Trading the rising wedge pattern is pretty easy. After we correctly identified the pattern all we need to do is wait patiently for the breakout of the wedge to the downside. After the breakout is confirmed(usually at least a 4H candle needs to close below the broken level) we can place a limit order to short the pair on a pullback giving us a better risk to reward ratio. The correct Stop Loss should be placed above the last higher high established by the wedge before the breakout. What concerns the Take Profit level, it must be based on the technical levels below( If there are any). If not, then we might use Trailing Stop or just choose a minimal acceptable RR of 1:1,5 ❤️Please, support our work with like & comment!❤️ What do you want to learn in the next post?
OANDA:XAUUSDEducation
by UnitedSignals
8
Cash flow statement or Three great riversToday we're going to start taking apart the third and final report that the company publishes each quarter and year - it's Cash flow statement. Remember, when we studied the balance sheet , we learned that one of the company's assets is cash in accounts. This is a very important asset because if the company doesn't have money in the account, it can't buy raw materials, pay employees' salaries, etc. What, in general, is a "company" in the eyes of an accountant? These are assets that have been purchased on credit or with equity, for the purpose of earning a net income for its shareholders or investing that income in further growth. That is, the source of cash in a company's account may be profits . But why do I say "may be"? The point is that it's possible to have a situation where profits are positive on the income statement, but there is no money physically in the account. To make sense of this, let's remember the workshop I use in all the examples. Suppose our master sold all of his boots on credit. That is, he was promised payment, but later. He ended up with a receivable in assets and, most interestingly, generated revenue. The accountant will calculate the revenue for these sales, despite the fact that the shop hasn't actually received the money yet. Then the accountant will deduct the expenses from the revenue, and the result will be a profit. But there is zero money in the account. So what should our master do? The orders are coming in, but there is nothing to pay for the raw materials. In such circumstances, while the master is waiting for the repayment of debts from customers, he himself borrows from the bank to top up his current account with money. Now let us make his situation more complicated. Let us assume that the money borrowed he still does not have enough, and the bank does not give more. The only thing left is to sell some of his property, that is, some of his assets. Remember, when we took apart the assets of the workshop , the master had shares in an oil company. This is something he could sell without hurting the production process. Then there is enough money in the checking account to produce boots uninterrupted. Of course, this is a wildly exaggerated example, since more often than not, profits are money, after all, and not the virtual records of an accountant. Nevertheless, I gave this example to make it clear that cash in the account and profit are related, but still different concepts. So what does the cash flow statement show? Let's engage our imagination again. Imagine a lake with three rivers flowing into it on the left and three rivers flowing out on the right. That is, on one side the lake feeds on water, and on the other side it gives it away. So the asset called "cash" on the balance sheet is the lake. And the amount of cash is the amount of water in that lake. Let's now name the three rivers that feed our lake. Let's call the first river the operating cash flow . When we receive the money from product sales, the lake is filled with water from the first river. The second river on the left is called the financial cash flow . This is when we receive financing from outside, or, to put it simply, we borrow. Since this is money received into the company's account, it also fills our lake. The third river let's call investment cash flow . This is the flow of money we get from the sale of the company's non-current assets. In the example with the master, these were assets in the form of oil company stock. Their sale led to the replenishment of our notional money lake. So we have a lake of money, which is filled thanks to three flows: operational, financial, and investment. That sounds great, but our lake is not only getting bigger, but it's also getting smaller through the three outgoing flows. I'll tell you about that in my next post. See you soon!
NASDAQ:AMZNEducation
by Be_Capy
Simple ways to improve trading disciplineIn order to be successful in any market, it is essential to have trading discipline. This blog post will discuss what trading discipline is, why it is important, and how to improve it. Having self esteem and a positive outlook are crucial for any trader, as well as being able to stick to your trading plan. There are no shortcuts to success, so traders need to be patient and handle losses in order to achieve their goals. The importance of trading discipline Trading discipline is key to success in any market. This blog will explore what trading discipline is, why it is important, and some tips on how to improve it. What is trading discipline? Trading discipline is the ability to stick to a plan and not let emotions get in the way- one of the most important factors for success in any market. A lack of discipline is often one of the main reasons why traders fail. Why is trading discipline important? Having a trading plan that you can stick to is crucial, and this plan should be based on sound analysis. Once you have a plan, you need to be disciplined enough to follow it; however, this can be difficult as there are often temptations to enter trades that are not in line with your plan. Additionally, it is easy to let emotions get in the way of your decisions- which can lead to bad trades. How do I improve my trading discipline? To be successful, traders need to be patient and handle losses well in order to achieve their goals. Some tips on how to improve your trading discipline include being selective with your trades- only taking trades that meet your criteria, and waiting for the right opportunities rather than taking every trade that comes along. In conclusion, trading discipline is essential for success in any market and there are no shortcuts to success. By following these tips, you can improve your trading discipline and increase your chances of success. Why having self esteem is key to being a successful trader? Self esteem is incredibly important for traders, as it is key to success. Traders with high self esteem are more likely to take responsibility for their own success or failure, believe in their own ability to succeed, take risks, handle losses, and stick to their trading plan. Conversely, traders with low self esteem are more likely to second guess themselves, give up after a loss, take too much risk in an attempt to recoup losses, or abandon their trading plan. Self esteem is not something that can be faked – it’s either there or it isn’t. And it’s not something that can be built overnight. It takes time, effort and patience to develop self esteem. However, it is worth the investment, as traders with high self esteem are more likely to be successful in the long run. There are a few things that traders can do to build their self esteem. Firstly, they need to have realistic expectations. They need to understand that there will be ups and downs in the market and that they will make losses as well as profits. Secondly, they need to develop a positive mindset. This means looking at the positives even in tough times and believing in themselves even when things are tough. Lastly, they need to take small steps and celebrate each victory, no matter how small. Building self esteem takes time and effort but it is worth it for traders who want to be successful in the long term. How your personal life can affect your trading discipline? Your personal life can have a big impact on your trading discipline. For example, if you’re going through a divorce or have a sick family member, you may be more likely to take risks in your trading. That’s why it’s important to be aware of how your personal life can influence your trading. If you have any major life changes, it’s important to reassess your risk tolerance. And make sure that you stick to your rules and discipline. Don’t let emotions get in the way of making rational decisions. It can be helpful to keep a journal of your trades. This can help you track your progress and reflect on your successes and failures. By doing this, you can identify any patterns in your trading that may be influenced by your personal life. Making small tweaks to your trading strategy can also help you stay disciplined. For example, if you find that you tend to take more risks when you’re stressed, try setting stricter limits on how much risk you’re willing to take. Or if you find that you tend to impulsively buy or sell when the market is volatile, consider using stop-loss orders. The bottom line is that being aware of how your personal life can affect your trading is crucial to success. There are no shortcuts to success—traders need to be patient and handle losses as well as wins. But by sticking to your rules and being disciplined, you increase your chances of success in the long run. There are no shortcuts to success There are no shortcuts to success. You need to put in the work, be willing to sacrifice, and be persistent and consistent. Luck is also a factor in success. You need to be willing to put in the work if you want to be successful. This means being disciplined and sticking to your trading plan. It also means being patient and not giving up when things get tough. You need to be willing to sacrifice your time and energy if you want to be successful. This means making trading a priority and not letting other commitments get in the way. Luck is also a factor in success. While there are things that you can do to increase your chances of success, there is no guarantee that you will be successful. The markets are unpredictable and anything can happen. The bottom line is that there are no shortcuts to success. If you want to be successful, you need to put in the work and be willing to sacrifice. You also needto be persistent and consistent. Luck is also a factor, but there are things that you can do to increase your chances of success. Writing down your rules and being strict with yourself Many traders are not successful because they do not have well-defined rules, which are important because they help to keep you disciplined and focused. Without rules, it is easy to get sidetracked or to make impulsive decisions. Having a set of rules that you strictly adhere to can help you to avoid these pitfalls. It is also important to be flexible and adaptable in your application of the rules. The market is constantly changing and evolving, so your rules need to be able to change with it. Reviewing your rules on a regular basis will ensure that they are still relevant and effective. There are no shortcuts to success in trading; you need to be disciplined, put in the work, and be willing to sacrifice. Luck is also a factor but there are things you can do to increase your chances of success--writing down your rules and being strict with yourself is one of them. Being patient and handling losses Successful trading requires patience and the ability to handle losses. It is important to be patient when looking for the right opportunity to enter a trade. You also need to accept that losses are part of the process and not let them get to you emotionally. Finally, you must have realistic expectations about the market and understand that there are no guarantees you will make money.
OANDA:XAUUSDEducation
by Lingrid
8
How to Earn Self-Respect as a TraderIntegrity… It’s what gives you certainty, confidence and trust for yourself. It’s what tells you, you can do it. It’s what makes you leap forward in life. And it’s what earns you self respect. With trading, you need to achieve self respect, to help feel more assertive with the trading decisions you make. In this short letter, I’ll give you some actions to help you earn the self respect as a trader. Action #1: Do the hard things Anything that requires risking your hard earned money is tough. I get it. You didn’t make money just to lose it right? Well, you need to understand that in life there are no HIGH rewards without taking some element of risk. So, force yourself to sit down, deposit money into your account, wait for the proven trading setup to line up and TAKE THE TRADE. Next hard thing to do is, wait for the trade to hit your stop loss or take profit and don’t interfere with the process. And the last hard thing, is having tunnel vision and not listening to anyone about your trading decisions. Don’t listen to the news, your friends, strangers or even your family. You have your plan and system, follow it and you’ll feel in control and you’ll gain more self respect. Action #2: Don’t think it – DO IT Coming up with ideas are easy. Writing down goals and gluing your vision board with mansions and cars – are easy. What’s hard is actually taking the action. There is never the right time because it’s always the right time. So buckle up and take action with what you need to do to achieve trading success. Action #3: Take control and learn from your losses Losses are parts of the ying and yang of trading. You need a bit of good and a bit of bad to balance and build. Remember, the markets move in a zig – zag shape and so will your trading account. So when you realise this you’ll be able to acknowledge, own, take control and learn from your trading losses. But most importantly. The losses must only come from your proven plan. Don’t move a stop loss to make you risk more. Don’t remove a stop loss because you believe the market will turn. Take small losses so that the big winners make up and drive your portfolio up. Action #4: Don’t quit when it gets hard You only fail when you quit something. Read that again. When you quit, you lose. When you quit, you give up. When you quit due to premature excuses you lose self respect. Too many traders quit because they think the market is out to get them. This is either because they are taking a few losses or because they are trying to OUTBEAT the market through emotions. Listen if you have a few rules to manage your money like: ~ Risk 2% per trade. ~ Never allow your portfolio to be in -20% drawdown. ~ Never hold more than 7 to 8 trades at a time. You’ll be able to control your risk and boost your portfolio. Let’s sum these 4 actions up to trading self respect. Action #1: Do the hard things Action #2: Don’t think it – DO IT Action #3: Take control and learn from your losses Action #4: Don’t quit when it gets hard
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by Timonrosso
12