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Let’s Compare INVESTING, TRADING and GAMBLING Hey traders, In this post, we will compare investing, trading and gambling . 📈 Investing Investing is the act of putting money in a financial market with the expectations of a long-term positive return. The investing decisions are usually made using fundamental analysis. The main goal of an investor is to predict the long-term market trends and benefit on them. Professional investing also involves assets allocation and diversification aimed to hedge potential risks. 💱 Trading Trading is the process of selling and buying financial instruments expecting a short-term (occasionally, mid-term) profit. The trading decisions are usually based on technical and fundamentals analysis. The goal of a trader is to predict local price fluctuations and catch them. Professional trading implies strict, rule-based actions following a trading plan. 🎰 Gambling Gambling is the act of betting on a specific event with the expectations of winning some value. Being completely luck-based, gambling usually involves get rich quick schemes and pursuit of easy money. What differs professional trading and investing from gambling is the fact that professional trading / investing involves objective analysis and strict planning, while gambling remains purely intuition based. Unfortunately, most of the market participants pretend that they trade and invest professionally while acting as gamblers in fact. Remember that long-term, consistent profits can be achieved only with the plan. Your intuition may bring some short-term profits, but in a long-run it will most likely lead you to a bankruptcy.
OANDA:XAUUSDEducation
by VasilyTrader
4
Here is WHY You Must Learn TRADE MANAGEMENT Hey traders, In this post, I will share with you my tips for trade management in Forex trading . But first, let me elaborate on what is exactly a trade management . Trade management is the set of rules and techniques applied for managing of an already active position. Trade management is a very important element of any trading strategy that should never be neglected. 1. Never remove a stop loss Being in a huge loss, many traders refuse to admit that they are wrong. Instead, watching how the price moves closer and closer to a stop loss, they remove stop loss hoping on a coming reversal. The alternative situation may happen when the price is going sharply in the desired direction. Watching the increasing profits, traders remove a stop loss (and occasionally take profit), being afraid to miss bigger profits. Both situations may lead to substantial, higher than initially planned losses. Driven by many factors, the market can easily burn all gains and move against the desired direction much longer than traders stay solvent. Take a look at this long trade on Gold. When the price comes closer and closer to a stop loss, many traders can not take a psychological pressure and remove stop loss, being afraid to take the loss. However, most of the time, stop loss will help you to limit your losses. You can see that after Gold reached stop loss, the price dropped much lower. Removing the stop loss, you would inquire bigger losses. Never remove a stop loss. It must be always set. 2. Never modify your stop loss if a position is in loss Watching how the price moves closer and closer to a stop loss is painful. Instead of removing stop loss, some traders move it and give the market more space for reversal. Even though such a technique is safer than the complete stop loss removal, it is still a very bad habit. Each stop loss adjustment increases the potential loss, not giving any guarantees that the market will reverse. It is highly recommendable to keep your stop loss fixed and let the price hit it and admit the loss. Above is one more example, why the earlier you close the trade in a loss, the better. Modifications and adjustment of your stop loss will most of the time lead to even bigger losses. 3. Know in advance your profit protection strategy Where do you take your profit? Do you have a fixed tp level or do you apply trailing stop? You should always know the answers. Coiling around take profit level but not being able to reach it, the price makes many traders manually close the trade or move take profit closer to current price levels. Another common situation happens when the market so quickly reaches the desired TP level so the traders remove TP hoping to make bigger than initially planned profit. Such emotional interventions negatively affect a long-term trading performance. TP removal may even burn all profits. Do not let your greed intervene, and always follow your rules. Above is the example of trade management rules in Forex trading. After GBPUSD reached a key support, a long position was opened from that. Once the price moves up by a certain distance, stop loss will be moved to entry. Take profit will be the closest key resistance. 4. Never add to a losing position Watching how the price refuses to go in the intended direction and cutting a partial loss, many traders add to a losing trade in hopes that the market will reverse and all the losses will be recovered. Again, such a fallacy usually leads to substantial losses. Remember, you can add to a position only AFTER the market moved in the desired direction, not BEFORE. Just imagine what could happen with your trading account, if you kept adding to a losing short position in a recent crazy bullish market on Gold. 5. Close the trades manually only following rules Quite often, newbie traders manually close their trades because of some random factors: they saw someone's opposite view, or they simply changed their mind. Remember, that if you opened a trade following your trading plan, you should always have strict rules for a position manual close. Do not let random factors affect your trading. Above is the example how you could easily miss a lot of pips on Gold, simply because the market temporarily stuck on some resistance. Following these 5 simple tips, your trading will improve dramatically. Remember, that it is not enough to spot and accurate entry. Once you are in a trade, you should wisely manage that, following your plan.
OANDA:XAUUSDEducation
by VasilyTrader
8
Top 4 Price Action Signals For Beginners. Best Trading Entries I will reveal 4 accurate price action signals that even a newbie trader will manage to easily recognize. Watch carefully because these signals alone will help you to make a lot of money trading Forex, Gold or any other financial market. Change of Character Change of character is a strong signal that indicates a trend violation and a highly probable market reversal. In a bearish trend, the change of character will be a bullish violation of the level of the last lower high. Check how the change of character accurately indicated a bullish reversal on EURJPY pair. In a bullish trend, a bearish violation of the level of the last higher low will signify a change of character and a highly probable bearish reversal. Bearish violation of the last higher low level and a change of character on USDJPY gave a perfect bearish signal. Breakout of Consolidation No matter what time frame you trader, you probably noticed that quite often the markets become weak and start consolidating . Most of the time, the prices tend to consolidate within horizontal ranges. Breakout of one of the boundaries of the range can give you a strong trading signal. Check how the price acted on GBPCHF. The breakout of the support/resistance of the range always gave an accurate signal, no matter what was the preceding direction of the market. Trend Line Breakout of a Pattern There are a lot of trend line based bullish and bearish price action patterns: the ranges, the wedges, the triangles, the channels. What unites these patterns is that the violation of the trend line of the pattern gives a strong trading signal. A bullish breakout of a resistance line of a falling wedge, a bullish flag and a symmetrical triangle will give us a strong bullish signal. Just look how EURUSD bounced after a bullish breakout of a resistance line of a falling wedge pattern. While a bearish breakout of a support line of a rising wedge, a bearish flag or a symmetrical triangle will indicate a highly probable bearish continuation Here is how a bearish breakout of the support of a symmetrical triangle formation helped me to predict a bearish movement on Gold. Neckline breakout of a horizontal pattern There are a lot of different price action patterns. One element that unites many of them is the so-called horizontal neckline. In bearish price action patterns like double top, head and shoulders, descending triangle, triple top, etc. a horizontal neckline represents a support from where buyers are placing their orders. Bearish violation of such a neckline will be considered to be an important sign of strength of the sellers and a strong bearish signal. In bullish price action patterns like double bottom, inverted head and shoulders pattern, ascending triangle, cup & handle, etc. a horizontal neckline represents a resistance where sellers a placing their orders. Its bullish violation will a strong bullish signal. Below is a perfect example how a bullish breakout of a neckline of an inverted head and shoulders pattern on Bitcoin triggered a strong bullish rally. Here is how a breakout of a neckline of a double top on USDCAD confirmed an initiation of a bearish correctional movement. The most important thing about these price action signals is that it is very simple to recognize them. You should learn the basic price action rules and a couple of classic price action patterns, it will be more than enough for you to identify confirmed bullish and bearish reversals on any time frame and any trading instrument. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
7
HOW TO SET STOP LOSS | 3 SIMPLE STRATEGIES 📚 Hey traders, In this post, we will discuss 3 classic trading strategies and stop placement rules . I will teach you how to set a safe stop loss, relying on price action. 1️⃣The 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. Buying a test of arising trend line on GBPCHF, stop loss is lying strictly below the previous low. If you are selling a trend line , you should identify the previous high . Your stop loss should lie strictly above that. 2️⃣The 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 a resistance , you should identify the previous low . Your stop loss should lie strictly below that. If you are selling a breakout of a support , you should identify the previous high. Your stop loss should lie strictly above that. Selling a retest of a broken structure on AUDJPY, Stop Loss is strictly set above the previous high. 3️⃣The third trading strategy is a range trading strategy . The technique implies buying/selling the boundaries of horizontal ranges , expecting 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. Opening a long position from the support of the range on Dollar Index, stop loss is placed below its 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. How do you set stop loss?
OANDA:XAUUSDEducation
by VasilyTrader
5
HARMONIC PATTERNS TRADING | ABCD PATTERN & HOW TO TRADE IT Harmonic ABCD pattern is a classic reversal pattern. In this article, I will teach you how to recognize that pattern and trade it properly. This pattern is composed of 3 main elements (based on wicks of the candles): 1️⃣ AB leg 2️⃣ BC leg 3️⃣ CD leg The pattern is considered to be bullish if AB leg is bearish. The pattern is considered to be bearish if AB leg is bullish. AB leg must be a strong movement without corrections within. A is its initial point and B is its completion point. BC leg is a correctional movement from B point after a completion of AB leg. The price may fluctuate within that. B is its initial point and C is its completion point. CD leg must be a strong movement without corrections within. C is its initial point and D is its completion point. ❗️ABCD movement is harmonic if the length and the time horizon of AB and CD legs are equal. By the length, I mean a price change from A to B point and from C to D point. By the time, I mean a time ranges of AB leg and CD leg. If the time and length of AB and CD legs are equal, the pattern is considered to be harmonic, and a reversal will be expected from D point at least to B point. 🛑If the pattern is bullish, stop loss must be placed below D point. 🛑If the pattern is bearish, stop loss is placed above D point. Initial target level is B point. Usually, after reaching a B point the market returns to a global trend. What pattern do you want to learn in the next post?
OANDA:XAUUSDEducation
by VasilyTrader
1
DON'T TRADE THESE SUPPORTS AND RESISTANCES When it comes to technical analysis, the understanding of which support and resistance levels to not trade can be as important as knowing which ones to trade. In this article, I will show you the structure levels that professional traders avoid to maximize their profits and minimize losses. Invalidated support and resistance Invalidated support/resistance is the structure that has a clear historical significance, but that lost its strength and was neglected by the market during the last 2 tests. Have a look at that key horizontal support. We can see that in the recent past, the price bounced from that multiple times, confirming its significance. Then, the price suddenly broke and closed below that support. According to the rules, that structure should turn into a resistance after a violation. However, after its test, the price bounced and violated that to the upside. The structure became invalid, and you should not trade that in future. Resistance in a Bullish Trend If the market is trading in a bullish trend, according to the rules its last higher high composes a key horizontal resistance. USDJPY is trading in a strong bullish trend. The price dropped once it set a new higher high higher close. It composes a key horizontal resistance. Always remember, that in a bullish trend, the price tends to set new higher highs and higher lows over time. Quite often, the test of the level of the last high leads to a further bullish continuation and a formation of a new higher high. For that reason, it is better not to trade such resistances. Support in a Bearish Trend In a bearish trend, the last lower low is always considered to be a key horizontal support. Above is a price action on USDCHF. The pair is bearish and recently set a new lower low. It is a key horizontal support now. However, in a bearish trend, the price tends to set a new low after a retracement. Most of the time, it does not respect the support based on the last lower low. I recommend you not to trade such supports. I always repeat to my students that key levels work, but they are not equal in their significance. While some of them are very strong, some are better to be avoided. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
3
Learn to Take Losses. Trading Psychology Basics Hey traders, In this post, we will discuss a typical psychological mistake that a lot of traders frequently make, facing a losing streak. 🤑 Analyzing different charts, we may spot a decent trading setup. Being 100% sure in our predictions, we open a trading position. After some time, we are stopped out. Instead of admitting that we were wrong, we are looking for a reason why it is not our fault: market manipulation, stop hunting, news. Instead of reevaluation of our analysis, we start forcing our previous predictions. 🧠 We open a position again, being sure that it is a perfect moment for us to recover the loss. And we are wrong one more time. What the hell is going on? Who to blame? Of course, that is not us. These ugly hedge fund managers again sunk our trade. 😢 But we stay strong, we have a big trading account, so we decide to show this schmo who is a real pro here. Consistency! That is the secret of success in trading. So we open the third position again. And... we screwed. 🤬 Eureka! The market reversed! It's time to open the position in the opposite direction. The trend has changed, and it's time to get on board and recover this losing streak. We open a trade, however, it's too late already: while we were forcing our previous predictions a new impulse has already gone exhausted. We s*ck... That is a typical situation every struggling trader faced. The psychological barrier to take the loss and admit the mistake makes many people leave this game. The only way to proceed is to learn to take losses. Take losses and reevaluate your analysis. "It's ok to be wrong. It's unforgivable to stay wrong!"
OANDA:XAUUSDEducation
by VasilyTrader
5
What to Do If You Are Losing in Trading? Have you ever been in the following situation? You pick a trading strategy, you make nice profits and then, for some unknown reasons, you start losing. You take one trade after another and the strategy stops working. That is a very common thing that happens will every trader. I am trading for more than 9 years, and you know what, this year I got a trading week when I got 4 losing trades in a row. In this article, I will explain to you what to do in such a situation and how to deal with losses. So here are the trades that I took. I shorted EURJPY, EURNZD, GBPJPY and USDCAD. I bought AUDJPY. All the trades a rule based, they were strictly taken in accordance with my trading strategy. AUDJPY, EURJPY, EURNZD, GBPJPY trades closed in a loss and USDCAD closed on breakeven. It is a l osing streak of 4 trades. Does it mean that a trading strategy doesn't work anymore? What 90% of traders do when they face the situations like that, they start trading with a new strategy. They win, they face a losing streak and the cycle repeats. The truth is that there is no trading strategy that does not lose occasionally. Losing streaks are the part of the game. For the last 5 years, my strategy shows 64% average win rate. It means that among 10 trades, the first 4 can be the losing ones and the 6 remaining can be the winners. It is the game of statistics. Now, imagine the potential distribution of winners and losers in 100 trades. If you know that your strategy is historically profitable , if you back tested that, and it proved its efficiency what you should do, you should keep trading that. The more losses you face, the higher is the probability that the winning streak is coming. Each losing trade will increase the chance that the next one will be finally profitable. With so many years of trading and faced various drawdowns and losing streaks, what I learned is that if you keep trading your strategy, if you keep trusting that, the market will always give you a chance to recover. But if you stop, if you drop the strategy once you face a losing streak and pick a new one, you will simply miss the winning streak. Repeating that cycle at the end of the day you will lose everything. That is the hard truth about rule-based trading. ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
3
What is Spread in Trading | Everything You Need to Know Hey traders, It turned out that many newbie traders completely neglect spreads in their trading. In this post, we will discuss what is the market spread and how it can occasionally spoil a seemingly good trade. 💱No matter what financial instrument we trade, in order to buy the asset we need to have a counterpart that is willing to sell it to us and vice versa, if we want to sell the asset, we need to have someone to sell it to. The market provides a convenient exchange between buyers and sellers. The asset price is determined by a current supply and demand. However, even the most liquid markets have two prices: bid and ask. 🙋‍♂️ Ask price represents the lowest price the market participants are willing to sell the asset to you, while 🙇‍♂️ bid price shows the highest price the market participants are willing to buy the asset from you. Here is how bid and ask prices look like. Bid and ask price are almost never equal. The difference between them is called the spread . 📈The spread size depends on liquidity of the market. 📍Higher liquidity implies bigger trading volumes and greater number of market participants, making it easier for them to make an exchange. On such markets we see lower spreads. 📍From the other side, less liquid markets are categorized with low trading volumes, making it harder for the market participants to find a counterpart for the exchange. On such market, spreads are usually high. For example, current EURUSD price is 1.0249 / 1.0269. Bid price is 1.0249 - you open short position on that price. Ask price is 1.0269 - you open long position on that price. The spread is 2 pips. ❗️Spreads must always be considered in a calculation of a risk to reward ratio for the trade. For scalpers and day traders, higher than usual spread may spoil a seemingly good trade. Always check spreads before you open the trade. Check how the spread is displayed in the trading terminal. In 2020, for example, we saw unusually high spreads on Gold during UK/NY trading sessions. Spreads were so high that I did not manage to open a trade for a couple of days. Not considering spreads in such a situation would cost you a lot of money. Do you consider spread when you trade?🤓
OANDA:XAUUSDEducation
by VasilyTrader
7
Head and Shoulders Tutorial on Crude Oil ChartI have decided to start a short series of tutorials covering common instruments used in technical analysis. In today's tutorial, we observe a successfully identified head and shoulders pattern on the 4-hour chart of Crude Oil, resulting in a substantial movement of around 17%. Here's how to find the instrument: navigate to the left sidebar and select 'Patterns,' where you will find 'Head and Shoulders.' Analyzing and trading correctly involve the following steps: 1) Both shoulders must form within a rising or falling trend. In the case of that Oil chart, we observe a rising trend, indicating a potential short position. 2) The size of the head becomes our target for take profit (TP), and upon reaching TP, we close 80% of the position. 3) Ideally, volumes at the right shoulder should decrease, and upon breaking, they should increase. Risk Management Strategy: 1) Limit each trade to no more than 2% of your deposit. 2) Always utilize stop-loss and take-profit orders. 3) Never trade money you are not prepared to lose. 4) Start with small budgets. It is crucial to emphasize that risk management must be adhered to whenever you engage in trading! Register and trade stocks and crypto using my link with a discount on commissions: bingx.com/invite/E6RCUFJT
TVC:USOILEducation
by CarpBuro
LEARN THE MOST IMPORTANT FOREX FUNDAMENTALS 📰 Even though I am a pure technician and I rely only on technical analysis when I trade, we can not deny the fact that fundamentals are the main driver of the financial markets. In this post, we will discuss the most important fundamentals that affect forex market. You can check coming fundamental news on TradingView in the economic calendar. The calendar button on the right side will display the coming news. Click "only high importance" button and the system will display only the most important news. Here are the most important fundamental releases that you should pay close attention to: 📍Unemployment rate. Unemployment rate reflects the percentage of people without a job in a selected country or region. Rising unemployment rate usually signifies an unhealthy state of the economy and negatively affects the currency strength. 📍Housing prices. Housing prices reflect people's demand for housing. Rising rate reflects a healthy state of the economy, strengthening purchasing power of the individuals and their confidence in the future. Growing demand for housing is considered to be one of the most important drivers in the economy. 📍Inflation. Inflation reflects the purchasing power of a currency. It is usually measured by evaluation of the price of the selected basket of goods or services over some period. High inflation is usually the primary indicator of the weakness of the currency and the unhealthy state of the economy. 📍Monetary policy. Monetary policy is the actions of central banks related to money supply in the economy. There are two main levers: interests rates and bank reserve requirements. Higher interest rates suppress the economy, making the currency stronger. Lower interests rates increase the money supply, making the economy grow but devaluing the national currency. 📍Political discourse. Political discourse is the social, economical and geopolitical policies of the national government. Political ideology determines the set of priorities for the ruling party that directly impacts the state of the economy. 📍Payrolls and earnings. Payroll reports reflect the dynamic of the creation of new jobs by the economy, while average earnings show the increase or decrease of the earnings of the individuals. Growing earnings and payrolls positively affect the value of a national currency and signify the expansion of the economy. Pay closes attention to these fundamentals and monitor how the market reacts to that data. What fundamentals do you consider to be the most important? ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
1
5 Elements of the Best Key Level in Trading What are the best key levels to trade? Last year I analysed more than 1500 key structures on Forex, Gold, Crypto and Indexes. In the today's article, I prepared for you a list of 5 elements of a perfect support and resistance for trading. As always, remember that the best key levels are always on a daily time frame. So all the structures that we will discuss will be strictly on a daily. Also, all the structures that I analyzed and traded are available on my TradingView page, so you can back test them by your own. 1. Clear historical significance The structure that you spotted should act as a significant historical support or resistance. Here are the important historical support and resistance that I spotted on USDCAD on a daily time frame. 2. Psychological significance The structure that you identified should match with round numbers. All the structures that we spotted on USDCAD match with psychological numbers. 3. Confluence with other technical tools The best structure should align with other trading tools such as trend lines of Fibonacci levels, strengthening its significance. After adding fibonacci levels and a significant falling trend line on the chart, the confluence was found in Resistance 6, Resistance 3, Resistance 2, Resistance 1, Support 2. Other structure does not match with technical tolls. 4. Volume The level experiences high trading volumes, indicating strong participation and interest from market participants, especially smart money. All the structures that we underlined show significant volume spikes. By volume spike, I mean a volume being higher than the average volume - a blue curve on volume. 5. Multiple touches The more, the better. There are numerous instances where price has respected and reacted to the structure, confirming its strength (at least 2). Only these 3 structures were confirmed by the multiple touches. These resistances will be considered the strongest ones. That checklist will help you to identify the most significant structures from where you will be able to catch impulsive movement and make nice profits. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
5
Why Traders Often Fail and How to Turn the Tide in Your FavorAs a day trader, I understand the allure of making your mark trading financial instruments. The idea of making quick profits and essentially being your boss can be incredibly enticing. However, the reality is that day trading is more challenging than it may seem. The statistics are alarming - the majority of day traders lose money. But why is that? Today, I will delve into the truths behind why day traders often fail and provide you with methods to begin turning the tide in your favor. So, let's get started and uncover the not-so-secret secrets to successful day trading. The Alarming Statistics of Day Traders Losing Money It's essential to begin by acknowledging the harsh reality that day trading is NOT a guaranteed path to riches. Studies have shown that a significant percentage of day traders end up losing money. Depending on which study or report you look at, the deck is stacked against the average day trader, with 70-90% of traders losing money within the first year of trading. That's a tough pill to swallow for anyone who wants to pursue day trading as either a full-time gig or a supplemental means of generating income. So, how does one stack the odds in their favor to become a successful trader? Understanding the Psychology of Day Traders There are three factors contributing to the high failure rate among day traders. Those factors include but are not limited to mindset, psychology, and discipline. I want to break these down for you so we can take a look at where most traders go wrong. Mindset: One may believe that mindset and psychology are the same, and though they are connected, they are not the same. In trading, mindset plays a crucial role in shaping a trader's attitude toward the market. A trader's mindset encompasses their beliefs, perspectives, and overall mental framework towards trading, risk, and uncertainty. Traders often have short-term sights set on finding unicorn gains or high win rates with little thought on a fundamental foundation to build upon for long-term growth. Having a strong and disciplined mindset is essential for navigating the complexities of the market, as it fosters critical traits such as patience, adaptability, and a long-term growth-oriented outlook. A resilient mindset can help traders weather the inevitable ups and downs of the market, maintain discipline in executing their trading strategies, and stay focused on their long-term goals. Ultimately, a positive and disciplined mindset can contribute significantly to a trader's ability to navigate challenges they will inevitably face. Psychology: Day trading can be an emotionally intense endeavor, and many traders fall victim to their emotional state. Emotions such as fear, greed, and hope, as well as cognitive biases, play a crucial role in shaping day-to-day trading decisions. For instance, the fear of missing out (FOMO) can prompt impulsive trading, while the aversion to realizing a loss can lead to holding onto losing positions for too long. Day traders must recognize and control these emotions to improve their chances of success. If you let your emotions best you, you will end up giving your money to someone who keeps those emotions in check. Overcoming psychological hurdles such as these is essential for making rational trading decisions. Additionally, being aware of cognitive biases like confirmation bias and recency bias can help traders avoid making decisions based on flawed reasoning. Understanding and managing these psychological factors is vital for maintaining discipline, especially in the face of market volatility and uncertainty. Discipline: I feel like discipline is wildly overlooked in the world of trading. There is so much toxicity bred in the field by so-called gurus who tell you trading is so simple and that massive gains are just around the corner. That is not the case in the realm of trading or any skill you hope to master. Olympic athletes do not wake up one day being the masters of their respective sport. They spend years practicing their skills with the highest level of discipline imaginable. Is trading the Olympics? No, but the principle is the same. If trading is a lifelong skill that you want to acquire, then you must commit to self-discipline in your approach to trading. So, from here, where do we start? How do we turn these three pillars in our favor and become successful in the long term? Lack of Proper Risk Management One of the primary reasons why day traders lose money is their failure to implement proper risk management strategies. Our brains are not wired to embrace loss; our minds will make every mental backflip to avoid it. This is why traders often let losers run rampant and cut their gains short. Think back to any of your previous trades. Did you justify staying in a losing trade based on some afterthought? An example justification could be, "This price can't go any higher; look how overbought XYZ stock is!" Additionally, day traders often need to pay more attention to potential profits and pay attention to potential losses. This can lead to reckless trading decisions and a failure to cut losses when necessary. With so much focus in the industry on winning, many overlook the discipline of being a great loser. Could you let that last sentence sink in for a second and give it some deep thought? Day trading inherently involves the risk of loss, and without a solid risk management plan in place, traders are essentially gambling with their money. It's essential to set clear risk limits, determine the maximum amount of capital you are willing to risk on each trade and stick to your plan. Implementing Effective Risk Management Strategies Now that we understand the importance of risk management, let's explore some practical strategies that day traders can implement to protect their capital and improve their chances of success. Use stop-loss orders: A stop-loss order is a predetermined price at which you will automatically exit a trade to limit your losses. By setting stop-loss orders at strategic levels, you can protect yourself from significant losses and maintain your risk management plan. A critical aspect of stop-losses is that they need to be a one-way street. It's okay to move a stop-loss up as a trade moves in your favor. However, never push your stop-loss back or make it wider after your trade has been initiated. This is only setting you up for long-term failure. Think of it this way: allowing a stop loss to do its job is like subjecting yourself to paper cuts compared to letting losers run, which would be akin to taking a slash from a sword. Which do you think you would better withstand in the long term? In a previous article, I highlighted different methods for setting stoplosses. I will link that article below this one, as I highly recommend you read it if you have further questions on how to set a stop-loss. Though that is only half the battle, the real challenge comes with maintaining discipline and respect for that stop-loss on every trade you take. Size your positions appropriately: It's crucial to determine the appropriate position size for each trade based on your risk tolerance and the specific trade setup. Avoid risking a significant portion of your capital on a single trade, as it can have devastating consequences if the trade goes against you, especially if you do not heed the previous advice of a disciplined stop loss. Never risk more than you are willing to lose! Diversify your portfolio: Only a few people want to day trade forever; it is a stepping stone for building wealth that you can diversify and let grow. However, if you have the capital early on to spread your investments across multiple stocks or assets, you can reduce the impact of a single trade going wrong. Diversification helps to mitigate risk and increase the likelihood of positive returns over the long term. The Importance of Having a Solid Trading Plan How do we implement discipline and solid risk management in our daily trading? We turn to the often underutilized trading plan. Day trading without a well-defined trading plan is akin to sailing without a compass. A trading plan serves as your roadmap, guiding you through the ups and downs of the market. It outlines your entry and exit strategies, risk management rules, and overall trading approach. Without a solid plan, day traders are more likely to make impulsive decisions based on emotions or market noise. This is where your discipline can help keep your emotions in check. When creating your trading plan, consider the following elements: Define your goals: Please be sure to determine your financial goals and the timeframe in which you aim to achieve them. This will help you stay focused and avoid chasing unrealistic profits. This is where you formulate your mindset and build your long-term foundation. Choose a trading strategy: Select a trading strategy that aligns with your risk tolerance and trading style. Whether it's trend following, breakout trading, or any other approach, make sure to thoroughly back-test and validate your strategy before implementing it. Set realistic expectations: Understand that day trading is not a get-rich-quick scheme. It requires dedication, continuous learning, and patience. Set realistic expectations and avoid succumbing to the allure of overnight riches. By having a well-defined trading plan and sticking to it, you can significantly increase your chances of success in the challenging world of day trading. Learning from Past Mistakes and Analyzing Trading Data One of the most effective ways to improve as a day trader is to learn from your past mistakes and analyze your trading data. It's essential for you to keep a detailed record of your trades, including entry and exit points, profit or loss, and any relevant notes or observations. By reviewing your trading data, you can identify patterns, strengths, and weaknesses in your trading strategy. This process allows you to make data-driven adjustments and refine your approach over time. Additionally, learning from your mistakes helps you avoid repeating them in the future. Practicing Patience and Emotional Control Patience and emotional control are two crucial qualities that successful day traders possess. The ability to wait for the right opportunities and avoid impulsive trading decisions can make a significant difference in your overall profitability. Day trading often involves rapid market movements and fluctuations, which can trigger emotional responses. It's essential to remain calm and composed, sticking to your trading plan and strategy. Emotions such as fear and greed can cloud judgment and lead to irrational decisions. By practicing emotional control, you can make rational and objective trading choices, increasing your chances of success. The Path to Success in Day Trading Day trading is undoubtedly challenging, but it's not an impossible endeavor. By understanding the truths behind why day traders often fail and implementing effective strategies, you can turn the tide in your favor. However, you should know that this is not an overnight ordeal. There are no shortcuts worth taking and endless hours of practice to achieve the feat of becoming an elite trader. Remember, day trading requires discipline, risk management, and continuous learning. Develop a solid trading plan, analyze your trading data, and practice patience and emotional control. By doing so, you can navigate the unpredictable waters of the financial markets with confidence and increase your chances of achieving long-term success as a day trader. Good luck and happy trading!
Education
by LeafAlgo
3
Trading Sessions in Forex | Free Market Sessions Indicator Hey traders, In this post, we will discuss trading sessions in Forex . Let's start with the definition: Trading session is daytime trading hours in a certain location. The opening and closing hours match with business hours. For that reason, trading hours are varying in different countries because of contrasting timezones. ❗️Please, note that different markets may have different trading hours. Also, some markets have pre-market and after-hours trading sessions. In this post, we are discussing only forex trading hours. The forex market opens on Sunday at 21:00 GMT and closes on Friday at 21:00 pm GMT. There are 4 main trading sessions in Forex: 🇦🇺 Australian (Sydney) Session Opens at 21:00 GMT and closes at 06:00 GMT 🇯🇵 Asian (Tokyo) Session Opens at 12:00 GMT and closes at 9:00 GMT. 🇬🇧 UK (London) Session Opens at 7:00 GMT and closes at 16:00 GMT. 🇺🇸 US (New York) Session Opens at 12:00 GMT and closes at 21:00 GMT. Asian trading session is usually categorized by low trading volumes while UK and US sessions are categorized by high trading volumes. Personally, I trade the entire UK session and US opening and usually skip Australian and Asian sessions. There is a free technical indicator on TradingView that allows to underline trading sessions on a price chart. It is called "Market Sessions". Being added, it displays the market trading sessions. What trading sessions do you trade?
OANDA:XAUUSDEducation
by VasilyTrader
2
Mastering Fibonacci Retracement :Navigating Bitcoin's VolatilityMastering Fibonacci Retracement :Navigating Bitcoin's Volatility Navigating the volatile landscape of Bitcoin trading can be a daunting task for both novice and experienced traders alike. However, equipped with the right tools, traders can identify potential support and resistance levels, make informed decisions, and capitalize on market movements. One such tool that has stood the test of time is the Fibonacci retracement tool, a staple in the arsenal of many traders due to its uncanny ability to forecast potential price reversals with remarkable accuracy. Understanding Fibonacci Retracement Fibonacci retracement is based on the idea that markets will retrace a predictable portion of a move, after which they will continue to move in the original direction. The concept draws from the Fibonacci sequence, a series of numbers where each number is the sum of the two preceding ones (0, 1, 1, 2, 3, 5, 8, 13, 21, and so on). In trading, these numbers are translated into percentage levels that traders use to identify potential reversal points on price charts. Key Levels to Watch The most commonly used Fibonacci retracement levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%. These percentages represent potential support and resistance levels where the price of an asset like Bitcoin could experience a reversal or consolidation. The 61.8% level, often referred to as the "golden ratio," is particularly noteworthy for its reliability in predicting price movements. Applying Fibonacci to Bitcoin Trading When applying Fibonacci retracement levels to Bitcoin's price action, traders often look for significant highs and lows to place their retracement lines. From there, the tool provides a visual representation of potential areas where the price may stall or reverse. For instance, during a downtrend, a retracement to a higher Fibonacci level like 61.8% could indicate a potential area of resistance where traders might consider taking profits or entering short positions. The Significance of the 78.6% Level Recent discussions among traders have highlighted the 78.6% retracement level as a crucial point for Bitcoin, suggesting that reaching this level often precedes significant corrections. This phenomenon underscores the importance of Fibonacci levels in anticipating market movements, allowing traders to adjust their strategies accordingly. Real-world Application Consider Bitcoin's historic rally and subsequent corrections. Traders have observed that significant pullbacks often align with key Fibonacci levels. For example, during a bullish phase, if Bitcoin's price retraces to the 61.8% or 78.6% levels before bouncing back, this could be seen as a strong signal for trend continuation. Conclusion The Fibonacci retracement tool is more than just a mathematical curiosity; it's a reflection of human psychology and market sentiment. By identifying levels where price action may change direction, traders can make more informed decisions, manage risk more effectively, and potentially increase their chances of success in the market. As with any trading tool, it's important to use Fibonacci retracements in conjunction with other indicators and analysis methods to validate potential trading signals. Remember, no tool can predict market movements with absolute certainty, but by understanding the tendencies and patterns, traders can navigate the Bitcoin market with greater confidence. BINANCE:BTCUSDT BITSTAMP:BTCUSD BINANCE:BTCUSDT.P Don't forget to check our latest publications
BITSTAMP:BTCUSDEducation
by FikratTrades
6
Understanding the ICT BREAKAWAY GAPIn this video I go through the ICT Breakaway Gap and how YOU can use it to your advantage. I include some tips and tricks with a real trade setup demonstration. The Breakaway Gap may have been an elusive concept to understand, but I present a simple way you can spot them on the chart and frame your trades around them. It is a powerful weapon that can be used to snag some awesome trades. Simple put, the Breakaway Gap is a gap that does not get traded into with the NEXT FEW CANDLES. Emphasis on the last part because price is fractal, and the best way to frame a trade with ICT's Concepts is by taking a few candles on the higher timeframe for your bias, and going to a lower timeframe to form your narrative, and either entering on that timeframe or even going to a lower timeframe for your entry. Hopefully this gives you some insight into one of the many concepts that ICT has bestowed upon the public. If you need clarification about the content, or you are still struggling with finding your groove as a trader and need personal guidance or mentorship, feel free to reach out to me via TradingView’s private message or on X. Happy trading and happy studying! - R2F
Education
by Road_2_Funded
4
Types of Orders in Forex Trading. Everything You Need to Know Hey traders, In this post, we will discuss types of orders that we use in Forex trading. ➖ Market order. Trading position is opened at a current price level. Buying the asset, you will open a trading position at a current ask price. Selling the asset, you will open a trading position at a current bid price. Even though market order is the most preferable type of orders among newbie traders, I highly recommend not to use that, especially if you are a day trader. ❗️The main problem is that prices constantly fluctuate and there is a certain delay between order execution and position opening. For these reasons, the position will be opened from a random price level within the range where the market is currently staying, affecting a risk to reward ratio. ➖ Limit order. Trading position will be opened only from a desired price level. With buy limit , you will buy the asset from a certain level. (current price remains above the order) With buy stop order, you will buy the asset from a certain level. (current price remains below the order) With sell limit, you will sell the asset from a certain level. (current price remains below the order) With sell stop , you will sell the asset from a certain level. (current price remains above the order) I prefer to trade with limit orders. Limit order helps you to trade from a desirable level, automatically executing the order once it is reached, letting you preliminary set it. ❗️However, remember that there is one big disadvantage of that order type: there is no guarantee that the price will reach the desired price level to activate a trading position. For that reason, occasionally you will miss the trades. Setting a sell limit order on Gold on 2049 level, the trade would be missed because the price respected 2048 level and dropped immediately then. Try these order types on a demo account to learn how they work in practice. Which order type do you prefer?
OANDA:XAUUSDEducation
by VasilyTrader
3
Learn What is FOREX Market. Trading Volumes & Market Participant Forex - foreign exchange market, is a location where international currencies are bought and sold by economic participants at various exchange rates. Forex market is the biggest market in the world, reaching on average 6 trillion dollars trading volumes daily. Forex market is a vital element for a global economy because it provides capital exchanges between the countries. The main market participants of forex market are central banks, commercial banks, commercial companies, hedge funds and investors. 🕰In order to grasp how big is that market, take a look what is happening on that just in 60 seconds: 📎Total transactions value reaches 3.52 billion US dollars. 📎 1.15 billion dollars of spot transactions. 📎 1.65 billion dollar of exchange swaps. 📎 Total transactions value involving USD reaches 3 billion US dollars. 📎 Total transactions value involving EURO reaches 1.1 billion US dollars. 📎 Just one single EUR/USD pair accumulates 812 million US dollars transactions value. It is hard to imagine how such big amounts are rolling with such a frequency and how insignificant are the orders of individual traders.
OANDA:XAUUSDEducation
by VasilyTrader
1
Range Bar Chart, Line Chart & Candlestick Chart - Everything You Hey traders, In this post, we will discuss 3 most popular types of charts. We will discuss the advantages and disadvantages of each one, and you will decide what type is the most appropriate for you. 📈Line Chart. Line chart is the most common chart applied by analysts. Reading financial articles in different news outlets, I noticed that most of the time the authors apply line chart for the data representation. On a price chart, the only parameter that the one can set is a time period. Time period will define a time of a security closing price. The security closing prices overtime will serve as data points. These points will be connected with a continuous line. Line charts are applied for displaying an asset's price history, reducing the noise from less volatile times. Being simplistic, they can provide a general picture and market sentiment. However, they are considered to be insufficient for pattern recognition and in depth analysis. Above, a line chart is applied for analysis of a long-term trend on Gold. 📏Range Bar Chart. In contrast to a line chart, a range bar chart does not consider time horizon. The only parameter that the one can set is a price range. By the range, I mean a price interval where the price moves. A new bar will be formed only once the prices passes the desired range. Such a chart allows to completely ignore time variable, focusing only on price movement and hence reducing the market noise. The chart will plot new bars only when the market is volatile, and it will stagnate while the market is weak and consolidating. Accurately setting a desired price range, one can get multiple insights analyzing a range bar chart. In the example above, one range bar represents 10 pips price range on EURUSD. 🕯Candlestick Chart. The most popular chart among technicians and my personal favorite. ith just one single parameter - time period, the chart plots candlesticks. Each candlestick is formed as a desired time period passes. It contains an information about the opening price level, closing price, high and low of a selected time period. Candlestick chart is applied for pattern recognition and in-depth analysis. Its study unveils the behavior of the market participants and their actions at a desired time period. Each candle stick represents a price action within 4 hours on AUDUSD chart above. (time frame is 4H) Of course, each chart has its own pluses and minuses. Choosing its type, you should know exactly what information do you want to derive from the chart. What chart type do you prefer?
OANDA:XAUUSDEducation
by VasilyTrader
4
Best Trading Confirmation. Learn 95% Accurate Entry Signal I have analyzed 1300 forecasts and signals that I shared on TradingView last year and found 95% accurate trading confirmation. In this article, we will discuss multiple types of confirmations and their winning rate on Forex, Gold, Indexes, Crypto & Commodities. First, let me introduce you to the types of analysis that I provided. 1 - Structure based forecast I have shared more than 55 trading setup with key levels analysis: Where the price is approaching a key daily horizontal support and resistance. Here is the example of such a post. Test of a key horizontal or vertical support/resistance turned out to be a poor trading signal. Total accuracy of structure based forecasts is 38% . Please, note that if we consider the market trend in our calculations, the trend-following structure based setup will be 42% accurate, while a performance of a counter trend setup drops to 35% 2 - Structure breakout based forecast I analyzed and posted 73 posts with a key structure breakout as a confirmation on a daily. Above is the example of a such a forecast. Key levels breakout turned out to be a strong bullish or bearish confirmation with 59% accuracy. Trend direction did not affect the efficiency of a key structure breakout that much, with a 60% accuracy of a trend following setup versus 57% of counter trend. 3 - Structure based forecast with a single intraday confirmation I shared more than 500 setups with a test of a key structure on a daily and a single price action based bullish or bearish confirmation on a 4h/1h time frame. My intraday confirmation is a formation of a price action pattern with a consequent breakout of its neckline/trend line in the projected direction. Please, check the example of such a signal. Just a single intraday confirmation dramatically increases the accuracy of a structure based setup. Average winning rate is 66%. 4 - Structure based forecast with multiple intraday confirmations I spotted and posted 200+ forecasts with a test of a key structure on a daily and multiple price action based bullish or bearish confirmations on a 4h/1h time frame. Multiple confirmations imply the formation of multiple price action patterns on 4/1h t.f. Here is the example of such a setup on EURGBP. Two or more confirmations on a key structure increase the average winning rate to 72%. Among multiple confirmations, I found a 95% accurate bearish signal: The market should be in a bearish trend. The price should test a key daily structure resistance. The market should form a rising wedge pattern on a 4h/1h time frames and the highs of the wedge should strictly test the key structure and should not violate them. After a test of structure, the price should form a bearish price action pattern on the highs of the wedge. Above is a setup with the best trading confirmation. A bearish breakout of the neckline of the pattern and a support of the wedge was a 95% accurate trading signal this year. Of course, there are various confirmations, depending on a trading style. The ones that I shared with you are structure/price action based. And I am truly impressed by their accuracy. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
1
The Trader's Toolkit: Building a Dynamic Trading JournalJoin us in this comprehensive tutorial as we walk through the essential process of building a personalized trading journal. Whether you're new to trading or aiming to elevate your strategies, this educational video empowers you with the knowledge of why building a trading journal is a critical step in your trading journey. Learn with us, and discover why a trading journal is a crucial addition to your trading toolkit.
NASDAQ:QQQEducation
by LeafAlgo
2
Predict the clarity of the price, not it's direction☝️The main purpose of my resources is free, actionable education for anyone who wants to learn trading and improve mental and technical trading skills. Learn from hundreds of videos and the real story of a particular trader, with all the mistakes and pain on the way to consistency. I'm always glad to discuss and answer questions. 🙌 ☝️ALL videos here are for sharing my experience purposes only, not financial advice, NOT A SIGNAL. YOUR TRADES ARE YOUR COMPLETE RESPONSIBILITY. Everything here should be treated as a simulated, educational environment.
CAPITALCOM:US100Education
by Yelli_trades
1
Navigating Markets with Gann Fans: A Step-by-Step GuideWelcome to our comprehensive tutorial on placing and utilizing Gann Fans. In this step-by-step guide, we'll dive into the practical aspects of Gann Fans, a powerful tool for assessing non-horizontal support in resistance for technical analysis. We will thoroughly explain how Gann Fans are placed and what pitfalls to avoid when placing them. Whether you're new to Gann Fans or looking to enhance your trading strategy, this video provides actionable insights and a real-world example to help you harness the potential of Gann Fans with confidence. Join us as we demystify Gann Fans and empower you to navigate market swings with precision and skill.
Education
by LeafAlgo
4