BTC-USD prediction for upcoming 3 daysBTC-USD prediction for upcoming 3 days:
(16900.0$, 17025.46$, 16805.9$)
P.S: I used TensorFlow for this forecast.
Learning
📊HOW TO CREATE A TRADING PLAN📊
📖What is a trading plan?
A trading plan is a comprehensive decision-making tool for your trading activity. It helps you decide what, when and how much to trade. A trading plan should be your own, personal plan – you could use someone else’s plan as an outline but remember that someone else’s attitude towards risk and available capital could be vastly different to yours.
📚Why do you need a trading plan?
You need a trading plan because it can help you make logical trading decisions and define the parameters of your ideal trade. A good trading plan will help you to avoid making emotional decisions in the heat of the moment.
✳️TRADING PLAN CREATION STEPS:
1️⃣Outline your motivation
Figuring out your motivation for trading and the time you’re willing to commit is an important step in creating your trading plan. Ask yourself why you want to become a trader and then write down what you want to achieve from trading.
2️⃣Decide how much time you can commit to trading
Work out how much time you can commit to your trading activities. Can you trade while you’re at work, or do you have to manage your trades early in the mornings or late at night?
If you want to make a lot of trades a day, you’ll need more time. If you’re going long on assets that will mature over a significant period of time – and plan to use stops, limits and alerts to manage your risk – you may not need many hours a day.
It's also important to spend enough time preparing yourself for trading, which includes education, practising your strategies and analysing the markets.
3️⃣Define your goals
Any trading goal shouldn’t just be a simple statement, it should be specific, measurable, attainable, relevant and time-bound (SMART). For example, ‘I want to increase the value of my entire portfolio by 15% in the next 12 months’. This goal is SMART because the figures are specific, you can measure your success, it’s attainable, it’s about trading, and there’s a time-frame attached to it.You should also decide what type of trader you are. Your trading style should be based on your personality, your attitude to risk, as well as the amount of time you’re willing to commit to trading.
4️⃣Choose a risk-reward ratio
Before you start trading, work out how much risk you're prepared to take on – both for individual trades and your trading strategy as a whole. Deciding your risk limit is very important. Market prices are always changing and even the safest financial instruments carry some degree of risk. Some new traders prefer to take on a lower risk to test the waters, while some take on more risk in the hopes of making larger profits – this is completely up to you.
It is possible to lose more times than you win and still be consistently profitable. It's all down to risk vs reward.
5️⃣Decide how much capital you have for trading
Look at how much money you can afford to dedicate to trading. You should never risk more than you can afford to lose. Trading involves plenty of risk, and you could end up losing all your trading capital (or more, if you are a professional trader).
Do the maths before you start and make sure you can afford the maximum potential loss on every trade. If you don't have enough trading capital to start right now, practise trading on a demo account until you do.
6️⃣Start a trading diary
For a trading plan to work it needs to be backed up by a trading diary. You should use your trading diary to document your trades as this can help you find out what’s working and what isn’t.You don’t only have to include the technical details, such as the entry and exit points of the trade, but also the rationale behind your trading decisions and emotions. If you deviate from your plan, write down why you did it and what the outcome was. The more detail in your diary, the better.
I Hope you guys learned something new today✅
Wish you all Best Of Luck👍
😇And may the odds be always in your favor😇
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STOP LOSS TRADING STRATEGY!Hi guys, This is @CRYPTOMOJO_TA One of the most active trading view authors and fastest-growing communities.
Consider following me for the latest updates and Long /Short calls on almost every exchange.
I post short mid and long-term trade setups too.
Hey traders,
In this post, we will discuss 3 classic trading strategies and stop placement rules.
1) The first trading strategy is a trend line strategy.
The technique implies buying/selling the touch of strong trend lines, expecting a strong bullish/bearish reaction from that.
If you are buying a trend line, you should identify the previous low.
Your stop loss should lie strictly below that.
If you are selling a trend line, you should identify the previous high.
Your stop loss should lie strictly above that.
2) The second trading strategy is a breakout trading strategy.
The technique implies buying/selling the breakout of a structure,
expecting a further bullish/bearish continuation.
If you are buying a breakout of resistance, you should identify the previous low. Your stop loss should lie strictly below that.
If you are selling a breakout of support, you should identify the previous high. Your stop loss should lie strictly above that.
3) The third trading strategy is a range trading strategy.
The technique implies buying/selling the boundaries of horizontal ranges, expecting a bullish/bearish reaction from them.
If you are buying the support of the range, your stop loss should strictly lie below the lowest point of support.
If you are selling the resistance of the range, your stop loss should strictly lie above the highest point of resistance.
As you can see, these stop-placement techniques are very simple. Following them, you will avoid a lot of stop hunts and manipulations.
What Is a Stop-Loss Order?
A stop-loss order is an order placed with a broker to buy or sell a specific stock once the stock reaches a certain price. A stop-loss is designed to limit an investor's loss on a security position. For example, setting a stop-loss order for 10% below the price at which you bought the stock will limit your loss to 10%. Suppose you just purchased Microsoft (MSFT) at $20 per share. Right after buying the stock, you enter a stop-loss order for $18. If the stock falls below $18, your shares will then be sold at the prevailing market price.
Stop-limit orders are similar to stop-loss orders. However, as their name states, there is a limit on the price at which they will execute. There are then two prices specified in a stop-limit order: the stop price, which will convert the order to a sell order, and the limit price. Instead of the order becoming a market order to sell, the sell order becomes a limit order that will only execute at the limit price (or better).
Advantages of the Stop-Loss Order
The most important benefit of a stop-loss order is that it costs nothing to implement. Your regular commission is charged only once the stop-loss price has been reached and the stock must be sold.
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One way to think of a stop-loss order is as a free insurance policy.
Additionally, when it comes to stop-loss orders, you don't have to monitor how a stock is performing daily. This convenience is especially handy when you are on vacation or in a situation that prevents you from watching your stocks for an extended period.
4
Stop-loss orders also help insulate your decision-making from emotional influences. People tend to "fall in love" with stocks. For example, they may maintain the false belief that if they give a stock another chance, it will come around. In actuality, this delay may only cause losses to mount.
5
No matter what type of investor you are, you should be able to easily identify why you own a stock. A value investor's criteria will be different from the criteria of a growth investor, which will be different from the criteria of an active trader. No matter what the strategy is, the strategy will only work if you stick to it. So, if you are a hardcore buy-and-hold investor, your stop-loss orders are next to useless.
At the end of the day, if you are going to be a successful investor, you have to be confident in your strategy. This means carrying through with your plan. The advantage of stop-loss orders is that they can help you stay on track and prevent your judgment from getting clouded with emotion.
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Finally, it's important to realize that stop-loss orders do not guarantee you'll make money in the stock market; you still have to make intelligent investment decisions. If you don't, you'll lose just as much money as you would without a stop-loss (only at a much slower rate.)
Types of Stop-Loss orders
Fixed Stop Loss
The fixed stop is a stop loss order triggered when a particular pre-determined price is hit. Fixed stops can also be timed-based and are most commonly used as soon as the trade is placed.
Time-bound fixed stops are useful for investors who want to provide the position with a pre-set amount of time to profit prior to moving on to the next trade.
Only utilize time-based stops when positioned sized properly to permit major adverse swings in share price.
Trailing Stop-Loss Order
Trailing order caters to the capital gains protection of an investor, while simultaneously providing a hedge against any unexpected price downturns. It is set as a percentage of the total asset price, and the order to sell is triggered in case market prices fall below the stipulated level. However, in the case of a price rise, the trailing order adjusts automatically in tune with an overall increase in market valuation.
Suppose, in a trailing stop-loss market, an order for execution is set if the price of a security falls below 10% of the market value. Assuming the purchase price is 100 an order to sell the security is executed automatically by an authorised broker if the price falls below 90.
In case the share prices rise to 120, the trailing order stands at 10% of the current market price, which is 108. Hence, if prices consequently start falling after peaking at. 120, a stop-loss order will be executed at 108. It allows an individual to enjoy a capital gain of 8 (108 – 100) on his/her investment corpus.
Stop-Loss Order Vs Market Order
While a stop-loss order performs a sale of underlying securities provided the price falls below a prescribed limit, a market order is issued to a broker to conduct trade (both buying and selling) at the prevailing market price. Stop-loss orders are designed to reduce the risk factor, while market orders aim to increase liquidity in the stock market by eradicating the bid-ask spread difference. A market order is the most basic form of trade order placed in a stock market.
Stop-Loss Order and Limit Order
Limit orders execute a trade of stipulated securities if the price reaches a pre-set value. While a buy limit order facilitates the purchase of any securities if the price falls below the given limit, a sell limit order is executed if the price rises above the value. Limit orders are designed to maximise the profitability of an investment venture by maximising the bid-ask spread. It is in contrast to stop-loss orders, which are implemented only if the price is equal to the limit stated by investors, as a method of minimising losses in a bear market.
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What is US dollar index (DXY)? Dollar Index History
DXY began in March 1973, shortly after the Bretton Woods system collapsed. Initially, the value of the US Dollar Index was set at 100,000. Since then, the index has peaked at 164.7200 in February 1985 and hit a low of 70,698 on March 16, 2008, and is currently trading at 103.715.
The arrangement of the "basket" took place only once, at the beginning of 1999, when the euro included several currencies. The arrangement of the "basket" does not yet include countries with high trade volumes, such as China, Mexico, South Korea and Brazil. On the other hand, although Sweden and Switzerland do not have large trade volumes, they continue to be included in the index.
What is the Dollar Index?
The US Dollar Index (USDX, DXY) is an indicator of the value of the US Dollar against foreign currencies. It is also referred to as a money basket by US trading partners. The index is designed, maintained, and published by ICE Futures and. It is also registered with the name "U.S Dollar Index".
How Is The Dollar Index Calculated?
The dollar index is calculated by the weighted geometric average of the Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc.
✅Euro (EUR)= 57.6% by weight
✅Japanese Yen (JPY) = 13.6 weight
✅British Pound (GBP) = 11.9% by weight
✅Canadian Dollar (CAD) = 9.1% by weight
✅Swedish Krona (SEK) = 4.2% by weight
✅Swiss Franc (CHF) = 3.6% by weight
Its formula is:
DXY = 50.14348112 × EURUSD -0.576 × USDJPY 0.136 × GBPUSD -0.119 × USDCAD 0.091 × USDSEK 0.042 × USDCHF 0.036
Why Dollar Index Increases?
👉🏻Every move that will strengthen the dollar in the United States, decrease in unemployment, positive employment data, high growth figures
👉🏻The depreciation of the local currencies of the six main countries included in the DXY
Why Is The Dollar Index Declining?
👉🏻Data that will cause the dollar to depreciate in the United States, growth figures below expectations, unemployment rates higher than expected
👉🏻Strengthening of the economies of the six main countries in DXY, appreciation of their local currencies
DXY is updated as long as the USD market is open. DXY can be traded as a futures contract on the ICE exchange. It is also available in exchange-traded funds (ETFs), options, and mutual funds.
Learn to Read Candlestick Strength | Trading Basics
Hey traders,
In this educational article, we will discuss how to objectively measure the market momentum with candlesticks.
Please, note that the concepts that will be covered in this article can be applied on any time frame, however, higher is the time frame, more trustworthy are the candles.
Also, remember, that each individual candle is assessed in relation to other candles on the chart.
There are three types of candles depending on its direction:
🟢Bullish candle
Such a candle has a closing price higher than the opening price.
🔴Bearish candle
Such a candle has a closing price lower than the opening price.
🟡Neutral candle
Such a candle has equal or close to equal opening and closing price.
There are three categories of the strength of the candle.
Please, note, the measurement of the strength of the candle is applicable only to bullish/bearish candles.
Neutral candle has no strength by definition. It signifies the absolute equilibrium between buyers and sellers.
1️⃣Strong candle
Strong bullish candle signifies strong buying volumes and dominance of buyers without sellers resistance.
Strong bearish candle means significant selling volumes and high bearish pressure without buyers resistance.
Usually, a strong bullish/bearish candle has a relatively big body and tiny wicks.
2️⃣Medium candle
Medium bullish candle signifies a dominance of buyers with a rising resistance of sellers.
Medium bearish candle means a prevailing strength of sellers with a growing pressure of bulls.
Usually, a medium bullish/bearish candle has its range (based on a wick) 2 times bigger than the body of the candle.
3️⃣Weak candle
Weak bullish candle signifies the exhaustion of buyers and a substantial resistance of sellers.
Weak bearish candle signifies the exhaustion of sellers and a considerable bullish pressure.
Usually, such a candle has a relatively small body and a big wick.
Knowing how to read the strength of the candlestick, one can quite accurately spot the initiate of new waves, market reversals and consolidations. Watch how the price acts, follow the candlesticks and try to spot the change of momentum by yourself.
❤️If you have any questions, please, ask me in the comment section.
Please, support my work with like, thank you!❤️
How to identify which order block will work?To identify which orderblock has much higher probability of working, identify the orderblock with unmitigated orderflow.
Happy Trading
Team Lamda
According to the scenario maybe this will be the last dip!Hi guys, This is CryptoMojo, One of the most active trading view authors and fastest-growing communities.
Consider following me for the latest updates and Long /Short calls on almost every exchange.
I post short mid and long-term trade setups too.
Let’s get to the chart!
I have tried my best to bring the best possible outcome to this chart, Do not consider financial advice.
In the daily time frame, BTC is forming this falling wedge pattern.
Falling Wedge
When a security's price has been falling over time, a wedge pattern can occur just as the trend makes its final downward move. The trend lines drawn above the highs and below the lows on the price chart pattern can converge as the price slide loses momentum and buyers step in to slow the rate of decline. Before the lines converge, the price may breakout above the upper trend line.
BTC drops after the FOMC meeting as expected, according to the pattern we are expecting some more drops up to 15k and then we can expect a bounce.
But as we all know to confirm this pattern, we need a breakout.
Stay tuned I will keep updating BTC in every timeframe below the chat.
So read the full chart carefully
This chart is likely to help you make better trade decisions if it does consider upvoting it.
I would also love to know your charts and views in the comment section.
Thank you
4 Signs that Say You’re Ready for Full-Time Trading
For forex traders, nothing embodies freedom more than those who trade full-time. After all, full-time traders enjoy freedom from their box-type offices, freedom of time, and freedom to choose which trading opportunities to take.
Unfortunately, this brand of independence isn’t for everyone. Just like too much freedom can do more harm than good for some economies, not all traders are ready to trade full-time.
So how do you know when you’re ready for full-time trading? From what we’ve seen from online forex communities, we can narrow it down to four signs:
1. You have enough capital
Trading full time means that you’ll be quitting your job, your primary source of income. And, because you’re realistic, you know that you probably won’t be making any serious trading money in your first few months.
2. You have tried and tested other methods and strategies
Not only do you need to have a strategy that has proven to be profitable for you, but you also have to have other equally qualified methods that would work for other trading conditions. After all, you never know when and for how long the market trends will shift!
3. You have spent a considerable amount of time trading LIVE
Trading a live account brings forth trading psychology hurdles that you wouldn’t get from trading demo accounts.
In addition, you have to have a fairly good grasp of your trading strengths and weaknesses, and, more importantly, you should know how to stick to a trading plan before you make trading your full-time job.
4. Trading is your passion
Trading currencies is what motivates you to get up and get busy every morning.
Remember that while full-time trading would provide you more opportunities to catch market movements, you don’t need to be a full-time trader to be consistently profitable.
What do you want to learn in the next post?
5 IMPORTANT INDICATORS FOR BEGINNERSHi guys, This is @CRYPTOMOJO_TA One of the most active trading view authors and fastest-growing communities.
Consider following me for the latest updates and Long /Short calls on almost every exchange.
I post short mid and long-term trade setups too.
Moving Average
A moving average is a technical indicator that combines price points of an instrument over a specified time frame, and divides by the number of data points, to give you a single trend line. It is popular amongst traders because it can help to determine the direction of the current trend, while lessening the impact of random price spikes.
A moving average will enable you to examine the levels of support and resistance, by analysing the previous movement of an asset’s price. It is a measure of change that trails the previous price action of an asset, assessing the history of market movements to determine possible future patterns. A moving average is primarily a lagging indicator, which makes it one of the most popular tools for technical analysis.
Calculating an MA requires a certain amount of data, which can be a large quantity depending on the length of the moving average. For instance, a ten-day MA will require ten days of data, while a one-year MA will require 365 days’ worth. A 200-day period is a very commonly used timeframe for MA.
The indicator is described as ‘moving’ because the introduction of new figures will replace old data points and ‘move’ the line on the chart.
Bollinger Bands
Bollinger Bands are typically plotted as three lines:
An upper band
A middle line
A lower band
The middle line of the indicator is a simple moving average (SMA).
Most charting programs default to a 20-period, which is fine for most traders, but you can experiment with different moving average lengths after you get a little experience applying Bollinger Bands.
The upper and lower bands, by default, represent two standard deviations above and below the middle line (moving average).
If you’re freaking out because you’re not familiar with standard deviations.
Have no fear.
The concept of standard deviation (SD) is just a measure of how spread out numbers are.
If the upper and lower bands are 1 standard deviation, this means that about 68% of price moves that have occurred recently are CONTAINED within these bands.
If the upper and lower bands are 2 standard deviations, this means that about 95% of price moves that have occurred recently are CONTAINED within these bands.
Relative Strength Index ( RSI )
RSI is considered overbought when above 70 and oversold when below 30. These traditional levels can also be adjusted if necessary to better fit the security. For example, if a security is repeatedly reaching the overbought level of 70 you may want to adjust this level to 80.
Note: During strong trends, the RSI may remain in overbought or oversold for extended periods.
RSI also often forms chart patterns that may not show on the underlying price chart, such as double tops and bottoms and trend lines. Also, look for support or resistance on the RSI.
In an uptrend or bull market, the RSI tends to remain in the 40 to 90 range with the 40-50 zone acting as support. During a downtrend or bear market the RSI tends to stay between the 10 to 60 range with the 50-60 zone acting as resistance. These ranges will vary depending on the RSI settings and the strength of the security’s or market’s underlying trend.
If underlying prices make a new high or low that isn't confirmed by the RSI, this divergence can signal a price reversal. If the RSI makes a lower high and then follows with a downside move below a previous low, a Top Swing Failure has occurred. If the RSI makes a higher low and then follows with an upside move above a previous high, a Bottom Swing Failure has occurred.
MACD(Moving Average Convergence Divergence)
Moving average convergence divergence, or MACD, is one of the most popular tools or momentum indicators used in technical analysis. This was developed by Gerald Appel towards the end of 1970s. This indicator is used to understand the momentum and its directional strength by calculating the difference between two time period intervals, which are a collection of historical time series. In MACD, ‘moving averages’ of two separate time intervals are used (most often done on historical closing prices of a security), and a momentum oscillator line is arrived at by taking the difference of the two moving averages, which is also denoted as ‘divergence’. The simple rule for taking the two moving average is that one should be of shorter time period and the other longer time period. Generally, exponential moving averages (EMA) are considered for this purpose.
Description: The main points for an MACD indicator are:
a) Time period or interval – which the user can define. Commonly used time periods are:
Short-term intervals – 3, 5, 7, 9, 11, 12, 14, 15-day intervals, but 9-day and 12-day durations are more popular
Long-term intervals – 21, 26, 30, 45, 50, 90, 200-day intervals; 26-day & 50-day intervals are more popular
b) Momentum oscillator line or divergence or MACD line – which can be simple plotting of ‘divergence’ or difference between two interval moving averages
c) Signal Line – which is exponential moving average of divergence data e.g. 9-day EMA
d) Normally a combination of 12-day and 26-day EMA of prices and 9-day EMA of divergence data is used, but these values can be changed depending on the trading goal and factors
e) The above data is then plotted on a chart, where the X- axis is for time and Y-axis is price, to get MACD line, signal line and histogram for the difference between the MACD and signal line, which is shown below the X-axis
Volume
Volume, or trading volume, is the number of units traded in a market during a given time. It is a measurement of the number of individual units of an asset that changed hands during that period.
Each transaction involves a buyer and a seller. When they reach an agreement at a specific price, the transaction is recorded by the facilitating exchange. This data is then used to calculate the trading volume.
Trading volume can be denominated in any trading asset, such as stocks, bonds, fiat currencies or cryptocurrencies. For example, if Alice sells Bob 5 BNB for 20 USD each, the volume of that transaction can be either 100 USD, or 5 BNB, depending on what the trading volume is denominated in.
This also means that for a stock, for example, the trading volume refers to the number of individual stocks that were traded during the measured period. So if 100 shares are traded in one trading day, the daily volume of the stock is 100 shares.
Traders tend to use the volume indicator as an attempt to gain a better understanding of the strength of a given trend. If volatility in price is accompanied by high trading volume, it may be said that the price move has more validity. Conversely, if a price move is accompanied by low trading volume, it may indicate weakness of the underlying trend.
Price levels with historically high volume can also give traders an indication regarding where the best entry and exit points could be located for a specific trade setup.
Typically, a rising market should see increasing volume, indicating continuous buyer interest to keep pushing prices higher. Increasing volume in a downtrend may indicate increasing sell pressure.
Reversals, exhaustion moves, and sharp changes in price direction are often accompanied by a high volume spike, as these tend to be the times when the highest amount of buyers and sellers are active in the market.
Volume indicators often also incorporate a moving average, measuring the volume of the candles in a given period and producing an average. This gives traders an additional tool to gauge the strength of the current market trend.
If you like our content, please feel free to support our page with a like, comment & follow for future educational ideas and trading setups.
✅UNDERSTAND THE RISING WEDGE PATTERN✅
☑️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
I Hope you guys learned something new today✅
Wish you all Best Of Luck👍
😇And may the odds be always in your favor😇
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Learn How Candlesticks Are Formed
A candlestick chart reflects a given time period and provides information on the price's open, high, low, and close during that time. Each candlestick symbolizes a different period.
Here are the main 4 elements of a candlestick:
Body
The body is the major component of a candlestick, and it's easy to spot because it's usually large and colored.
Within the interval, the body informs you of the opening and closing prices of the market. The open will be below on a green candle. The reverse is true for a red candle. The market declined during the time, thus the open is the top of the body and the close refers to the bottom of a candle.
Wick
The wick is the line that extends from the top to the bottom of the body of a candlestick.
The upper wick emerges from the body's top and indicates the greatest price achieved throughout the time. The lower wick commonly referred to as the tail, is at the body's bottom, marking the lowest price.
Open Price
The initial price exchanged during the development of a new candle is represented as the open price. If the price begins to rise, the candle will become green and the candle will turn red if the price falls.
Close Price
The closing price is the most recent price exchanged during the trading phase. In most charting systems, if the closing price is lower than the open price, the candle will turn red by default. The candle will be green if the close price is higher than the open price.
High Price
The highest price exchanged throughout the time is shown by the upper wick or top shadow. Its absence indicates that the price at which the asset opened or closed is the highest traded price.
Low Price
The lowest price exchanged throughout the time is shown by the lower wick or low shadow. When there is no such lower wick or shadow, this indicates that the price at which the asset opened or closed is the lowest traded price.
Hey traders, let me know what subject do you want to dive in in the next post?
Always be a Learner in MarkerAlways learn new things from Market. Overall your account balance is your success reward. Rest all are waist
The 5 Outcomes Of a Trade | How not to blow your account
Successful traders know there are 5 outcomes that can come out of a trading position. When managed well these outcomes can lead to great success. However, when manage badly can cause disaster to a trader’s account.
Below I’ll highlight and discuss the possible 5 outcomes of a trade and how you can manage them.
1. Small Profit
This is when a position ends in a very small profit, for trend traders, this is usually the case. However, in this situation, there is no loss.
2. Small Loss
This is when you lose a small amount at the close of your position. This is part of normal and good trading. In fact, you should cut your losses early. Taking small losses or cutting your losses early will help you stay in this business long term.
3. Breakeven
This is a position where you really didn’t make or lose any money. They’ll come too, they are not necessarily bad trades. These types of trades may just mean you should find re-entry to the position or may just be a quick exit without a loss or profit.
4. Big Profit
This is when a position ends in a very big profit. This type of trade does not come too often but when they do come they are the trades that move your general account return for the period to the next level. As a trader, these are the type of trades you should look forward to.
5. Big Loss
This is when a position ends up closing at a very big loss. This type of trade should never happen on your trading account as a pro-trader. This is the type of trade that can blow your trading account. It’s why you should know how to cut your losses quickly and take a small loss.
I’m glad I’ve been able to share with you the possible outcomes of a trade and how you can manage them properly. A simple knowledge like this can suddenly turn your trading account to become profitable.
Please, like this post and subscribe to our tradingview page!👍
XauUsd SELL off to start of the week?!I see this setup as a great trade opportunity to finish the year strong.
I believe Gold is going to take out this previous week low, I have my reasons for that and if it's so I'll update them to this idea
after take profit or stop loss gets hit.
As always I use this as journaling/learning purposes.
Forex Market: Who Trades Currencies & Why
The foreign exchange or forex market is the largest financial market in the world – larger even than the stock market, with a daily volume of $6.6 trillion.
The forex market not only has many players but many types of players. Here we go through some of the major types of institutions and traders in forex markets:
Commercial & Investment Banks
The greatest volume of currency is traded in the interbank market. This is where banks of all sizes trade currency with each other and through electronic networks. Big banks account for a large percentage of total currency volume trades.
Central Banks
Central banks, which represent their nation's government, are extremely important players in the forex market. Open market operations and interest rate policies of central banks influence currency rates to a very large extent.
A central bank is responsible for fixing the price of its native currency on forex. This is the exchange rate regime by which its currency will trade in the open market. Exchange rate regimes are divided into floating, fixed and pegged types.
Investment Managers and Hedge Funds
Portfolio managers, pooled funds and hedge funds make up the second-biggest collection of players in the forex market next to banks and central banks. Investment managers trade currencies for large accounts such as pension funds and foundations.
Multinational Corporations
Firms engaged in importing and exporting conduct forex transactions to pay for goods and services.
Individual Investors
The volume of forex trades made by retail investors is extremely low compared to financial institutions and companies. However, it is growing rapidly in popularity.
There is a reason why forex is the largest market in the world: It empowers everyone from central banks to retail investors to potentially see profits from currency fluctuations related to the global economy.
What do you want to learn in the next post?
🕵️♂️BASICS: WHAT IS A PIP❓
👉What is a Pip?
The unit of measurement to express the change in value between two currencies is called a “pip.”
If EUR/USD moves from 1.1050 to 1.1051, that .0001 USD rise in value is ONE PIP.
A pip is usually the last decimal place of a price quote.
Most pairs go out to 4 decimal places, but there are some exceptions like Japanese yen pairs (they go out to two decimal places).
For example, for EUR/USD, it is 0.0001, and for USD/JPY, it is 0.01.
👉What is a Pipette?
There are forex brokers that quote currency pairs beyond the standard “4 and 2” decimal places to “5 and 3” decimal places.
They are quoting FRACTIONAL PIPS, also called “points” or “pipettes” which equal a 10th of a pip.
👉How to Calculate Pip Value:
👉The value of pip depends on the following three factors:
✔️The quoted currency
✔️The volume of the trade
✔️And the exchange rate
Based on these factors the fluctuation of even a single pip can have a significant impact on the value of the open position.
The value of 1 pip is calculated by the following formula:
The value of 1 pip = (Pip in decimal places * Trade Volume)
👉Example:
1 pip volume in EUR/USD is equal to 0.0001
Then 1 PIP VALUE equals:
100,000 EUR—> 100,000*0.0001= 10 USD
10,000 EUR—> 10,000*0.0001= 1 USD
1,000 EUR—> 1,000*0.0001= 0.1 USD
100 EUR—> 100*0.0001= 0.01 USD
✅Tell us about issues you had with pips value calculation/understanding in the beginning of your trader’s journey in the comments✅
😊And See you next time😊
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7 Stages to Financial Freedom and How You Can Get There
Today we will discuss the stages you go through to reach freedom and how you can achieve it with awesome thinking models.
The journey to financial freedom includes seven stages.
1. Clarity
This is the stage where you are clear about your current financial position and where you want to be.
2. Self-sufficiency
This is the stage where you can bear all your expenses by yourself. You are not dependent on anyone for your survival. This also means you earn enough to sustain your expenses.
3. Breathing room
This is the stage where you have saved enough to sustain yourself for a couple of months, even if you lose your source of income right now.
4. Stability
This is the stage where you have paid off all your debts and you also have a saving to sustain you for at least 6 months in advance.
5. Flexibility
This is the stage where you have saved enough money to sustain yourself for two years in advance.
6. Financial independence
This is the stage where your money earns more for you. It’s when you have enough investments and savings that the return you get is enough to sustain your expenses without working. At this point, you work on something because it’s your hobby, and not to earn money.
7. Abundant wealth
This is the stage where you have accumulated so much money that you would not be able to spend all in your lifetime.
But how do you progress through these stages and achieve financial freedom?
Here are some awesome thinking models you can use to head towards financial freedom.
1. Time is more valuable than money.
2. Compounding can help you achieve it earlier
3. Make money with a side business
4. Learn to sell stuff
As it should be your ultimate financial goal, it is never enough to talk about achieving financial freedom. I wish you luck, dear traders.
Hey traders, let me know what subject do you want to dive in in the next post?
DEMONS OF TRADING | Don't Think Like This
Have you ever wondered what helped all those professionals of Wall Street become successful? You will be surprised, but the key to their reached heights is hidden in their mistakes. Yes, that is right. Most professional and successful traders made many mistakes before they got to the top.
Making mistakes is ordinary and sometimes even necessary because you learn when you make them. The crucial point of this idea is never to repeat those mistakes because some errors may cost us a fortune. That is why we gathered 10 most common trading mistakes to prevent you from faults and losses.
Little preparation
Entry to the Forex market is relatively easy, so people have a light-minded attitude towards trading knowledge. Beginner traders, especially, think that theory is not a big deal, and they will be able to build it up without a peep. However, it does not work this way.
Miscalculating the risk/reward ratio
For some reason, many traders believe that higher win trades are more profitable than lower ones. Sometimes, this idea even gets paid off, and due to blind luck, trades, where the potential risk exceeds the reward, benefit. However, in most cases, such trades are a sure way to lose money in the longer term.
Avoiding risk management
Risk management should be the core of your trading because it helps cut down losses. Trading without risk management is like skydiving without a parachute.
Neglecting market events
Relevant market news is essential as economic events influence the direction of trading during the day. So, if you are not aware of the financial reports or earnings, you might skip the volatility.
To win the game, you need to develop your thinking and how you participate in the game. You are in a market trading against professional traders. Your goal is to think like a professional. That is the only way to survive in this game.
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Learn How to Trade Descending Triangle Pattern
Descending triangle formation is a classic reversal pattern. It signifies the weakness of buyers in a bullish trend and bearish accumulation.
⭐️The pattern has a very peculiar price action structure:
Trading in a bullish trend the price sets a higher high and retraces setting a higher low.
Then the market starts growing again but does not manage to set a new high, setting a lower high instead.
Then the price drops again perfectly respecting the level of the last higher low setting an equal low.
After that one more bullish movement and one more consequent lower high, bearish move, and equal low.
Based on the last three highs a trend line can be drawn.
Based on the equal lows a horizontal neckline is spotted.
❗What is peculiar about such price action is the fact that a set of lower highs signifies a weakening bullish momentum: fewer and fewer buyers are willing to buy from horizontal support based on equal lows.
🔔 Such price action is called a bearish accumulation.
Once the pattern is formed it is still not a trend reversal predictor though. Remember that the price may set many lower highs and equal lows within the pattern.
The trigger that is applied to confirm a trend reversal is a bearish breakout of the neckline of the pattern.
📉Then a short position can be opened.
For conservative trading, a retest entry is suggested.
Safest stop is lying at least above the level of the last lower high.
However, in case the levels of the lower highs are almost equal it is highly recommendable to set a stop loss above them all.
🎯For targets look for the closest strong structure support.
❤️If you have any questions, please, ask me in the comment section.
Please, support my work with like, thank you!❤️
Apt usdt short sell idea Greetings from Team : Trading The Tides.
lets discuss a short sell oportunity on (APt usdt )
Target area for initiating short :5.4
DCA Limits : 5.5
TP :5,4.8,4.3
SL : 5.63
Hold Time : short- medium term
Technical Chart Pattern: Almost at distribution zone , divergence on 30 min tf
Posible liquidity area : 5.55-5.6
Exchange:Binance
Rules :
We use big capital with less leverage .
Max leverage : 3x
Better take trades with 1x.
We only post the exact setup we are following for the trades .
But DYOR .
Not a Financial Advice !
From Team :
Trading The Tides
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Thanks a lot and see you soon on the next trade .
The Iceberg Illusion: The hidden logic of success
We often get mesmerized by someone’s above the surface success and don’t factor in all the below the surface opportunity-costs they paid to achieve that success.
This is the ‘iceberg illusion’. It’s been a fav analogy of mine for years. And yet, this just might be a better visual for sport than the ‘iceberg illusion’.
You see… the hyper focus on outcomes is one of the biggest failings (or façades) that comes from social media. It creates a false impression of what leads to success.
We see the success, but not the work that went into it… The unseen hours, necessary failures, setbacks, crises of confidence, the not-now’s (to the countless asks), the loneliness, the late nights and early mornings; and, all the wobbling that comes before the walking—much less running.
There are no shortcuts. There are no overnight successes.
The iceberg doesn’t move quickly. It’s not sped up. It just moves consistently; at often a barely discernible speed.
What do you want to learn in the next post?
🟢STOP AND LIMIT ORDERS EXPLAINED🟢
✴️Types of orders in trading
There are two main types of order: entry orders and closing orders. An entry order is an instruction to open a trade when the underlying market hits a specific level, while a closing order is an instruction to close a trade when the market hits a specific level.
✴️Stops vs limits
A stop order is an instruction to trade when the price of a market hits a specific level that is less favourable than the current price.
On the other hand, a limit order is an instruction to trade if the market price reaches a specified level more favourable than the current price.
✴️Stop orders explained
You can use stop orders to close positions and to open them, by using either a stop-loss order or a stop-entry order.
✴️Stop-loss orders
A stop-loss order is the common term for a stop closing order – an instruction to close your position when the market value becomes less favourable than the current price.
✴️Stop-entry orders
A stop-entry order enables you to open a position when the market reaches a value that is less favourable than the current price.
If you were opening a long position, you’d place your stop-entry order above the current market price. And if you were opening a short position, you’d place your stop-entry order below the current price.
Although it may seem strange to open a trade at a worse price, stop-entry orders can enable you to enter a trade once a trend has been confirmed. This helps you take advantage of market momentum.
✴️Limit orders explained
Like stop orders, limit orders can be used to open and close trades.
✴️Limit-entry orders
A limit-entry order enables you to enter a trade when the market hits a more favourable price than the current price. For long positions, this would be below the current price level and for short positions this would be above.
✴️Limit-close orders
A limit-close order enables you to close a trade at a more favourable price – which would be at a higher level for a long position and a lower level for a short position.
The major drawback of a limit order is that there is the possibility it will not be filled if the market never reaches your order level – in this case the order would expire. If you had placed a limit-entry order, it is possible that your trade would never be executed. And if you had placed a limit-close order, your trade would not be closed automatically.
😊Thank you for reading, guys😊
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EXPECTANCY: The Golden Key StatisticWhat is Expectancy?
Expectancy is the one of the most important statistics in trading. Expectancy is how much you expect to make per trade. If you have an expectancy of 0.3 that means you make 30% of your average risk per trade. If you risk $1000 per trade, then you would receive $300 on average for EVERY time you took a trade.
The baseline for a worthwhile & profitable strategy for most traders is an expectancy of 0.25 or higher. Anything more than 0.5 is outstanding.
How do you calculate expectancy?
A few different ways:
(gross profit/# of trades)/Avg. Risk
or
((Win%*Avg. Win)-(1-Win%*Avg. Loss))/Avg. Risk
The table on the chart breaks down the required Win% and Profit/Loss ratio needed for an expectancy greater than 0.25. As you can see there are multiple ways to build a profitable strategy.
What does Expectancy tell you?
Expectancy is a crucial stat for traders because it lets them know if their strategy is valuable. The only way to know your expectancy is to track your trades! Tracking your trades is an essential part of the job as a trader yet many fail to do so. It can be done for free with some simple spreadsheet formulas and a bit of time. Track your trades, review your stats, improves your trades. Rinse & repeat.
Thanks for reading, follow @Jlaing for more educational post about Money Management, Trading Stats, and more. I also stream a stock day trading chat room every morning at 9:15 EST right here on TradingView, come check it out and say what's up.
