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Trade To Win"Those who lose - trade not to lose. Those who are successful - trade to Win." Losing Vs Winning Most traders are more focused on not losing than they are on winning. Do you understand what this means? This means you are acting not in your best interest, but against your self. By focusing on how much you can or might lose, or on not losing, you increase the likelihood of making mistakes which ultimately lead to a losing traders equation, and a negative equity curve. Profitable traders do not care about losing. They understand it is part of winning. They focus on winning. What is the best move in this moment? Should I get out or continue to hold based on what the market is telling me? Winning traders accept the risk totally and completely; before getting into the trade. In other words, they have already lost what is on the line. Therefore they act in their own best interest, not based on their thoughts about what they could lose, but based on what the market is telling them to do in this moment. Other than this psychological difference, here are a few other key components on How to Trade To Win. Defined Edge - Every trader who is making money in the market has some form of edge which he employs. Even if his edge is purely intuitive. This is extreme and rare however, and most traders have clearly defined their edge and will only trade that edge. This removes randomness. Many beginners think they are going to study the market and be able to trade the market no matter what it is doing (trade intuitively). This is simply not the case for most. The purpose of studying the market is to identify opportunities in form of an edge. An edge is a setup or context which repeats itself over time. It might occur once a day, once a week, or once a month. It does not matter. All that matters is that you only trade your clearly defined edge, and leave the randomness behind. For more information, you can read about the edge I use in every market I trade. We also describe how you can develop your own edge, and trade it in any market. Stop Doing, Relax Efforts - If you are losing in the market, chances are you are doing too much. Many beginners, and even experienced traders think they must be trading in order to be a successful trader. This leads to random trading, over trading, and mistakes which compound themselves. You end up digging a hole, and instead of looking for a way out, you look for a different shovel. The harder you try to make a profit, the more you do, the more actions you make, and the more you lose. The market rewards those who are observant, disciplined, and most importantly patient. The market takes from those who try too hard, and do too much. If you dont believe me, try as hard as you can to make money, and see how you do! By relaxing your efforts, you relax your mind. In turn relax your actions and decision making. You do not have to trade every day to be a profitable trader. It sounds paradoxical doesn't it? How can I make money trading if I dont trade? By only trading when it is appropriate like when your edge is present, you better your odds of success. Profitable trading does not come from trading constantly. Profitable trading comes from the act of non-doing, and out of a state of emptiness. Profitable trading is effortless, it comes out of waiting for just the right moment before taking action. And then waiting some more while the market proves you right or wrong. Profitable trading is not forced; it just happens. Active VS Passive Trading - This is very similar to the previous topic. Active trading is a trader who is constantly in the market, trading whatever he see's or feels right. This trader is often wrong, and when he is right he makes the mistake of exiting too early due to fear. This leads to a negative traders equation as he continues to struggle to do the right thing. An Active Trader mentality is one which does not believe in "non-doing." He believes he must, and can, do something. He is afraid of missing out and is often swayed by thoughts and emotions. So he continues trading never looking back, and at the end of the month cannot figure out why his account is in the red. A Passive Trader is the opposite. He passes on more trades than he takes. He does not care about what he misses out on. He only cares about what he takes and the actions he makes in the market. He does not force trades, he just watches the market until he knows what to do. Or he waits and waits until his edge finally sets up. He is passive in his efforts, rather than active. He does not care if he doesn't trade today, this week, or even this month. Trading is not what is important to him; winning is. He knows that profits come from sitting, waiting. Because he is willing to wait, he is peaceful. And profits continue to come into his account, effortlessly. For more information on developing this type of mentality, see below. We also detail how to understand markets through price action, how to create, define, and employ an edge, and how to develop your traders mentality to succeed in markets. If you found this helpful please like! Feel free to comment or ask questions.
SP:SPXEducation
by tradersmentality
Master the Simple Inside Bar Pattern hey guys, on WTI we have a perfect example of Inside Bar candlestick pattern on a daily chart. An inside bar is a series of bars or sometimes just one bar that is contained within the range of the preceding bar (mother bar). The first rule that we should take into account is that inside bars must have a higher low and lower high than the mother bar. The second rule is that we trade this pattern only after bearish or bullish breakout of a mother bar trading range. The logic behind inside bar is simple. It indicates a time of indecision and market consolidation. Inside bars typically occur as a market consolidates after making a large directional move (bearish on WTI), you also can see this pattern at key decision points like major support or resistance levels. For WTI our plan is to wait until a violation of a trading range. Remember that the candle MUST close below or above the range before we take any action!
FX:USOILEducation
by VasilyTrader
7
Correlation EURUSD VS. USDCHFHere is my two yestarday´s levels from my Members area. ( Both ended up in profit ) Let me explain my how correlation between EURUSD and USDCHF works and how you can look at the charts. EURUSD and USDCHF are negatively correlated (correlation almost -100%). If USDCHF falls, then EURUSD should rise. If EURUSD rises, USDCHF should fall. This means that in similar areas there will be similar levels for trade. HOW THIS CAN HELP ME IN TRADING? If you consider some price level for trade make sure that is visible on other pair too... If will be significant area for long on EURUSD, make sure that there is a significant area for short trade on USDCHF too! If there is, then you will be more likely to have a successful trade. Happy trading Dale
Education
by Trader_Dale
The best Van Tharp's Quote!! Read all his books!SELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY Van Tharp “When you understand what’s involved in winning, as do professional gamblers, you’ll tend to bet more during a winning streak and less during a losing streak. However, the average person does exactly the opposite: he or she bets more after a series of losses and less after a series of wins.” Over the 18 years of trading the Futures/ Stocks and Currencies market, Van Tharp's books have help me immensely. I suggest you read his books. Some of them are listed below; Trade your way to financial freedom Super Trader Trading Beyond the Matrix Safe Strategies for financial markets Financial freedom through electronic day trading I have a large collection of trading books. If anyone needs suggestions on great trading books i would be happy to send you a list :)
Education
by SMPTrader
9
Best intruments to short term trade: Looking at the spreads.Howdi fearless gamblers. Today/Tonight/Yesterday I want to post about spreads. I have spend some time calculating them, so I thought, why not share? It does not cost me anything and it has value to you. In what is best to short term trade, this is what you must look at (correct me if I am wrong): - The volatility: if it does not move you are not going to get anything out of it. - When are we open? Does it fit your time schedule? - Your personal preference. - The spreads: if you aim for 1% moves and 0.3% is going to the broker, you won't get very far... Of course, this is not very important for anyone holding trades over periods of several days or weeks. So this is what I have: Currencies All calculated with FXCM, it is around the same everywhere (decent). *** USD pairs *** --- Tier 1 --- EURUSD => 0,010% USDJPY => 0,010% GBPUSD => 0,011% --- Tier 2 --- USDCAD => 0,017% USDCHF => 0,017% USDMXN => 0,017% --- Tier 3 --- AUDUSD => 0,023% --- Tier no thank you --- NZDUSD => 0,027% USDSEK => 0,031% --- God Tier --- USDCNH => < 0,0075% *** Cross pairs *** --- Tier 2 --- EURJPY => 0,016% GBPJPY => 0,018% EURCAD => 0,018% EURNZD => 0,020% EURAUD => 0,015% EURCHF => 0,019% --- Tier 3 --- GBPAUD => 0,022% GBPCAD => 0,022% --- Tier no thank you --- AUDCAD => 0,027% GBPNZD => 0,025% EURGBP => 0,024% AUDJPY => 0,026% AUDNZD => 0,032% CHFJPY => 0,022% GBPCHF => 0,027% --- Tier lol dis a joke man? --- NZDCAD => > 0,045% The Forex moves I look at that happen in a few hours to maybe 2 days are 0.30% 0.50% 0.75% 1%. A spread of 0.03% is 10% of that 0.30% move. Futures --- Tier 1 --- Gold => 0,03% Moves twice as much as FX --- Tier 2 --- Copper => 0,11% Moves 3 times as much as gold, 6 times FX. Oil => 0,07% Moves a little more than gold I think? Maybe 1,5-twice as much. --- Tier lol dis a joke man? --- Silver => 0,30% TOO DAMN HIGH NatGas => 0,33% Moves alot, but still too high. Cryptocurrencies The volatility at the time is non existant for crypto but it will change so I am looking at it anyway, for the day this changes (I get spammed with alerts every day for FX and see moves over and over and over, crypto? Something I might see 30 times a month with FX I might see once a time with crypto. Just look at the charts.) So usually the commissions are the same for all, on Binance without BNB it is 0.1%. Crypto moves are 3% 5% 7.5% 10% etc (with bigger risk thought). On Kraken it is going to be more or less the same as Binance, it depends on your volume. On Bittrex Polo etc it is higher (unless it changed). If you are taker you got higher fees + a little spread. So if it moves 10 times as much as FX (when it moves I mean), you dive 1% by 10, BUT remember you will pay it twice (go long and take profit). So 0.2% / 10 = 0.02% Which places Crypto between Tier 2 and Tier 3. Same as a GBP pair or Copper. Copper moves as much as Bitcoin too or almost as. Pretty much you can trade either and have the same experience minus the sideways and armies of bagholders telling you what a fool you are for not accumulating with Copper. Indices I do not have the values with me but alot are super low, with DAX the lowest and NASDAQ second, maybe the euro thing too. The big indices are tier 1. UK and French ones I think are tier 1 too. The surprise for alot of people would be that Dollar vs Yuan is the one with the lowest spread. Every one is talking about how many pounds per pip and how many pips they take because they are obssessed with how much money they will make and really bad at math. That is not what matters. What matters is USDCNH has the lowest spread and is the most profitable thing to trade in the whole universe if everything else is equal. * It depends WHEN you look at USDCNH thought... At the time, I am fully focussed on trading FX perfectly before I move back to anything else. I only trade the tier 1 to 3 as well of course, as the mighty USDYUAN. So this is my watchlist and what I am trading at the moment, 16 of them: FX:EURUSD,FX:USDJPY,FX:AUDUSD,FX:USDCAD,FX:GBPUSD,FX:USDCHF,FX:USDMXN,FX:USDCNH,FX:EURJPY,FX:GBPJPY,FX:EURCAD,FX:GBPAUD,FX:GBPCAD,FX:EURNZD,FX:EURAUD,FX:EURCHF I really want to trade gold and copper again, but for now I am focussed on perfecting a new strategy (I already had one before but I wanted to master a new one... I cannot help it I am too competitive...). Then I will add Futures again, and then go look at crypto, which might have stopped being unbearably pointless by then. I think we get a mighty dump in the next weeks, but that will not mean the volatility is back, just a mighty dump a sharp bounce, and then back to boredom for months or even years. I am not interested in looking at stocks. Open a few hours a day with only the first and last hours being worth spending time on? Haha no than you! I would rather do macro economics and trade indices. I cannot be bothered with the latest FOMO news and this mighty stock that will make idiots millionaires GUARENTEED.
Education
by MrRenev
1
Emotional retail traders and the precarious nature of shortsGood morning, traders. It is Wednesday and CBOE Bitcoin futures expire today. Will this result in a jump of price? There is a strong narrative suggesting exactly that possibility as shorts continue to rise parabolically, quickly closing in their all time high and bringing with them a shorts-to-long ratio of 1.4251 currently. This ratio hasn't been seen since November 2017 and yet shorts continue to pile on providing us with a clear view of retail trader emotional entries into the market. Watching tucsky.github.io play us the same story over and again: price jumps up, retail traders attempt to "short the top," price moves $40 higher and those positions are liquidated. Over-leveraged, under-capitalized emotional trading will get you rekt, so make sure you aren't doing the same. If you missed last night's live stream, I also took a quick look at ETH, XRP, and ETC. Overnight we saw a move up to $6483 (the lower TF pivot) before a bit of retracement. A push up through this pivot would be a bullish indicator, at least on the lower TFs and we should then expect price to target the R1 pivot. Looking at TensorCharts.com, we can see strong resistance building up at $6480, $6650, and $6700 at this time. We should see short squeezes occurring as price pushes through these levels. We have some support building around $6220 but not much else at this time. The perfect storm mentioned above has been building and the expiration of the CBOE futures today could be the catalyst that sends things into motion. We will have to wait and see. Until then, price appears to be printing a bullish pennant on the 1H chart. If it completes successfully, then we can expect an initial target of the $7000 level which is the R1 pivot, and if we are seeing that kind of price level, the bias should be continued upward momentum. Remember, a breach of $8500 prints another higher high thereby increasing the bullishness. However, we could see price contained by the $6800 block prior to reaching that target. As always, we want to watch volume and price action. Volume increasing as price rises is a strong bullish indicator which appears to be ignored lately by the emotional retail crowd expecting a drop below $5000 and subsequent repeat of 2014. While there are no guarantees in trading, I choose to give much more weight to such an agreement between volume and price action than anything else, especially right now. Daily Stoch RSI is finally making a push out of the oversold area as RSI is testing its own resistance at 42. Daily MACD has noted resistance around 430 on its last two highs, but is also printing a higher low suggesting momentum is building toward a breach of that resistance. It's my belief that if we see MACD printing a higher high, then it will suggest that we are in a bull market. The 3D MACD has printed consistent higher highs and lows since its low point around April 7th, but remains below centerline at this time. Weekly Stoch RSI is printing higher highs and lows and its MACD found its bottom, so far, during the week of July 9th. A strong weekly candle here, and potentially next week, should see a bullish cross on that TF's MACD. The 3D and weekly candles look amazing at the moment, however there is still much time left for the latter and anything can happen before it closes. But if they both close at or near their current states then it creates significant bullishness on much larger TFs and the expectation should then be a likely test of the recent high at $8500. As such, they should be watched closely. CME Bitcoin futures expire at the end of the month, so traders should be paying attention to that as well. We continue to monitor the lower levels noted on the 1H chart in case of a price drop. Realistically, I expect price to target the $6800 box and then drop down toward ~$6200 before pushing back up once more and breaching that box. However, the precarious nature of the shorts right now could catapult price through that
BITFINEX:BTCUSDEducation
by Chris_Inks
10
Nasdaq_Indexes_Look into todays action_Shorts considered only. Occasionally I will be slapping together a commentary about the days action on my favorite index and making a point to pickout the best entry of the day. This does not mean I take these entries. I simply point them out. These posts will be short simple and insightful. Notice the daily is bearish. We know better than to hold onto long positions. Over the weekend SPX and DOWJ setup very nice looking sell signals. Market makers know all of us retail traders sat around and thought about how bad we wanted to get short all weekend. So first thing this morning they gave us our fills. NQ pushed lower and stopped out tight long trades and entered silly short orders. Then the market made a substantial move higher only to stop out the retail short traders. Only to stall around lunchtime. Markets ticked around until 2pm when we finally started showing bearish signals and my plan allowed my to trade with the direction of the daily. Price broke the lunchtime level and then formed a perfect verification process to confirm we were about to move lower. The market took back all the days gains between 2 and 3:50. Notice the 5 minute chart in the comments below.Cant post the 5 min which truly shows the details of today's move. What a day. Stay tuned! If you found this analysis useful or thoughtful Likes/Comments/Follows are much appreciated! Disclaimer: Your data may be different. Material is educational only. Trade at your own risk!
FOREXCOM:NAS100Education
by UnknownUnicorn981629
Spread trade with Russel2000 and Nasdaq100Recently, the Russel2000 and the Nasdaq100 are developing more and more in different directions. Since we expect a weaker stock market in the coming weeks and months and the Nasdaq100 can drop significantly lower, the possibility exists for a spread trade in both assets. The approach is relatively simple: Long in the Russel2000 and short the Nasdaq100. IMPORTANT here is to look at the nominal value of the individual futures in order to find the right relationship/position size. Taking into account the nominal value and the current implied volatility, you would buy two Russel Future (RTY) and sell one Nasdaq Future (NQ). It is interesting that the margin requirements are very low, if you put it directly as a combo, at the same time the financial risk is easy manageable.
CME_MINI:RTY1!Education
by Tradimo_Official