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WHY TRADERS LOSE IN FINANCIAL MARKETSWhy Traders Lose In The Financial Market. Three Important Things To Know Before Trading You may be one of the traders out there, Who has lost plenty of dollars in the financial markets. So in today’s lesson we are going to check the most common trading mistakes a trader does when he starts trading. Knowledge: So the first important accept in losing in the financial markets is because of the lack of “knowledge”. What happens in the trading world is people start trading without even knowing what the market actually does. How does it move or where does it move. Most of them who lost in the financial markets are those have heard a friend or a colleague who would have said that making money is easy in the financial markets. That’s because they would have come across some kind of advertisements where it propagates that you can make hundreds and thousands of dollars in the financial markets just by clicking a simple button of Buy/Sell. Risk Management: Second important thing in losing the market is because of lack of Risk managements. Now most of the traders doesn’t follow a risk to reward ration while they are trading. I’ll tell you why people don’t keep stop loss. The important reason behind it is when they started trading the markets, they would have taken a trade and it would have hit a target, while they are very happy about the profits they made. Now comes the dark side of the markets. Next time when they start to trade the trades goes against them and now they don’t know what to do because they never had an idea about it. So once they start losing they keep on holding it, At some point when the market pulls back and they have a break even trade and comes out. But this pressure they went through will be there deep down so now they think to themselves keeping a proper stop loss would help me reduce the risk of losing the whole account. Next trade they use a stop loss. Now what happens is the market comes down and hits their stop loss and boom it pulls back to the target zone. Now they start to curse the market and would say i shouldn’t have kept the stop loss or else it would been in profits. Finally the next trade they take without a stop loss the market moves against them and finally waiting it will reverse at some point the market goes further negative and wipes their account. This is what happens to most of the traders out there who doesn’t follow a proper stop loss. They start losing their whole investment in few days or weeks. Lack of Strategy: Now there is a very common phrase which I ask to all my students at the beginning of a class ” Have you even thought why did you take this trade”. The most common answer which I hear back is to make money. Just took a trade because the market was very high or very low. So one of the misconception among the traders is when they see the market rally high in the charts, they start to get an idea that now it’s going to go for a sell. Alternate scenario when the market goes very low they start to think the market will now start to rally up. Even you who is reading this article can be one of them. I’l explain you why after you thought the market is very low still it’s going down, that’s because you never had a proper strategy or knowledge to know whether this price which you assume is high is even the highest point or not. So in order to know what first of all build up a strong strategy where you could be so sure that this is the markets highest point or the lowest points. Do some testing of the market and back test your strategy before you take a trade. Conclusion: Try checking out all this mistakes which you have done so far and try to change your mind set. Yes! mind set is one of the most important thing that you need while trading the financial markets. Without a proper discipline and mindset you can’t be consistent in your profits. To learn more about the trading psychology and other trading materials.
Education
by Kishore
16
Bitcoin and crypto trading tips #1 - Trendlines and logarithmicHi Below you can see the trendline in logarithmic view. Notice how the trend is now completely straight and lines up with the straight yellow trendline. It's worth keeping in mind that not all trends will stick to the trendline in logarithmic view. You do still have trends that are moving so fast that they never return to a previous trendline until they begin a downtrend. However using the logarithmic for trendlines view can often give a better idea of where the price is likely to return to. The price will often never return to a trendline drawn using the non-logarithmic scale if the trend is a very healthy crypto trend. If anyone has any further thoughts or disagreements about this I'd interested in hearing them. Cheers, Mark
KRAKEN:BTCUSD
by MarkLudgate
2
USDJPY Pennant Pattern BreakoutSyndicate members there will be a video coming out on this shortly, but I wanted to share with you guys a potential breakout trade that I have on my radar this Tuesday Morning. If you're unsure on the different ways to trade these types of simple consolidation pattern you can check out the video I posted 2 weeks ago titled "How To Trade Breakouts" But there is a lot of potential upside on this trade especially when you consider the levels of structure that we have just broken & the next levels of potential resistance that lie on the daily around the 111 even handle.
Long
by Akil_Stokes
29
USDJPY: Bearish Bat + ExplanationHi Traders, Here is a bearish bat pattern setup on USDJPY with D pattern completion at 103.950. Read below if you are unsure how to identify a bat pattern. 1) Look for an impulse leg, which will mark the beginning of the pattern. I like the analogy of seeing the impulse leg as a "Sore Thumb" high or low point, something that immediately sticks out on the chart. This is the X point. 2) Grab your fibonacci retracement tool and draw from the X (sore thumb high or low) to the lowest/highest point of the move. This is the A point. 3) Price must touch the 50% retracement of the XA leg, BUT NOT TOUCH the 61.8%. This is the B point. 4) Draw a fibonacci retracement from the A to B point, we are looking for AT LEAST a 61.8% retracement. If price exceeds the A point the pattern is invalid. This is the C point. 5) To find the completion at D, draw a fibonacci retracement from XA and if price reaches the 88.6% retracement the pattern has completed. This is the D point. 6) I place stops 10-15 pips above or below the X leg. 7) Targets go at the 38.2% and 61.8% retracement of the A to D leg. Hope that helps! Remember to leave me a like or comment below if this helped you. Good luck and good trading, Luke
Education
by Beebags
SEX Set-up *Sorry I meant SPX500 ;)It is about time us Bears got together and smashed this cheeky bugger off the worlds top spot. As you can see here we have combined waves of tightening wedge formation on the chart. We also have some strong fundamental key events to help drive emotions and stretch budgets. The cloud of short interest is growing and if we slam hard come NFP we will be able to see a phenomenal short-medium term drop off and correction in price. Tell the FED to pack some Vaseline
FX:SPX500Short
by RSCexclusive
8
Down under getting further down under AUDUSD THE analysisLong term outlook very bleak for the once relatively strong AUD. It's been a tough two years on the Australian currency. With a very wobbly gold price dictating the nerves and a phenomenally crucial period of USD relative strength the AUD is suffering without a doubt. Using a simple fib based regression trend analysis along with a modified pitchfork that ties into the fib I predict a lowering of price here over the course of the next few days and weeks. Entry can be taken now but ideally I would suggest let it pop up just a bit further before taking it on for SHORT positions. As for leverage, margin, size and duration I leave that all to you my trading buddy :) Best of luck and stay safe. It's a dangerous place to be falling without a parachute ;) #winningtrades #thatswhatwedo #changeyourlife
Short
by RSCexclusive
USDJPY Get down you dirty dog! #bitchbetterhavemymoneySo USDJPY has been grinding down the price levels for some time now, here is a simple profitable set up for a further short scenario. Take a Short from here and hold. 101 is my personal target profit take and I suggest if you follow that you do the same. My stop is set at 106.600 Time duration of the trade I would expect to be no longer than two weeks at most. Good luck if you take it on. Let me know with some feedback and banter.
Short
by RSCexclusive
GBPUSD: A Trend Continuation & Countertrend Idea (Video)Just a quick follow up from the trade I shared with you guys in last night's video looking at a trend continuation opportunity on GBPUSD. As the market established a double top overnight, counter trend traders will also have an opportunity to involve themselves in a 2618 trade as well. Make sure you check out yesterday's video for an explanation of the TCT trade "Statistics on Why Most Traders Fail" www.youtube.com Akil Stokes Chief Currency Analyst & Head Trading Coach www.TradeEmpowered.com YouTube goo.gl Facebook: goo.gl Twitter: goo.gl You Can Also Follow Me On Instagram, Periscope & StockTwits @AkilStokesRTM
by Akil_Stokes
14