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UPDATE #5 BTC/USD bull trap continuation - whale liquidity This is update # 5 of series to provide an outlook of the trap that took place. We are past the critical area 21,900 - Whales are continuing to grab people on lower time frames. ALERT WHALES ARE IN CONTROL Areas of huge interest are 20,900 and 19,200 Drop a boost if you like the content. I see potential in the start of the next month but short term within end of this week and start of the next it looks ugly. Nothing I say is financial advice and/or should be taken as such. I am just a nobody and you should not take anything I say/write into any consideration, as I am dumb as a tack.
BITSTAMP:BTCUSDShort
by MonkeySunGod
Getting Over the Agony of LossesHey Guys! When a trader takes a loss, it can be quite hard. It can strip you of your motivation to trade. Or perhaps even sway your quality of life. But that doesn't have to be the case. Do you ever wonder why experienced traders don't have a fit after a loss, whilst beginner traders can go into a chatic godzilla-like tantrum? No, it's not because they're enlightened in some way or simply not prone to anger. It's because they understand what trading is "truly" about. Trading is simply about refining your strategy and honing it until it is capable of extracting consistent profits from the markets. Moreover they understand that in order to refine a strategy they will have to take losses from time to time. How else will they know if their strategy needs refining or not? Thus the experienced trader views a loss as an opportunity to further refine their strategy and more importantly views these losses as a necessary component to propel their trading to the next level. Now, viewing losses from this perspective, who in their right minds will throw a fit every time they take a loss? So just some advice to the beginner trader. If you don't have a specific strategy that you're working on and are hopping from strategy to strategy; consider making your own strategy. Of course this can be a mixture of strategies you came across in your trading education, but ultimately the strategy must be constructed with your original signature. This means that you understand the nuts and bolts of the strategy and thus have the ability to refine it when necessary. Once you begin this refinement process, upon a loss and the anger starts to kick in, you'll find that refining your strategy with the lessons learned from the loss will diffuse that anger that erupts inside of you. It will become an antidote that if persisted, will get you on the peaceful road to trading success. I hope this helps! Have a great day guys! Ken
Education
by TradingForexPriceAction
5
7 Trading DISCIPLINE Rules to deal with Losses It’s impossible to trade or invest and not find yourself into a losing position. That’s just the way things are. And a large trading loss can be devastating. Not only financially, but emotionally. As defeating as losses feel, how you react to a big loss is more important than the loss itself. Inexperienced traders suffering a large loss can become hijacked by their emotions. Some may try to trade through the pain, often creating more turmoil for themselves. Some may withdraw from the market, to avoid thinking about it. Others may try to “trade in revenge,” determined to recover the losses. None of these reactions are constructive. In fact, they can be destructive if you don’t learn how to handle losing trades. Whether it was an obvious minus in your strategy, a lack in discipline, or any other reason, nearly every trader will face a big loss (or several) in their career. After a losing streak or big loss, you may begin to question yourself, which leads to the typical problems many new traders have, like getting out of trades too quickly, holding on to them too long, skipping trades with the fear of losing, or getting into more trades than you should in an attempt to get some winning trades. One major difference between successful traders and failed ones is how they handle trading losses. Successful traders treat losses as an opportunity to learn and improve their trading. Coming back from a large loss is challenging, but success is never accomplished by ignoring trading losses. Losses especially substantial ones can be opportunities to become a more skillful trader. Here are 7 rules successful traders take after a loss to become emotionally stronger and more disciplined 1. Never let a bad day cost you more than you make on an average win day Knowing how to lose properly is a must in a long and prosperous trading career. If you average, let’s say, $200 on your winning days, don't lose much more than that on a bad day. Control the downside. Knowing how to minimize risk is the most important aspect in trading. There are really only 4 possible outcomes to a trade or investment: A big win, a small win, a small loss, or a big loss. As long as we ELIMINATE the big loss from our trading days, we can live comfortable with the other three. Risk Management is the primary cause for a successful or unsuccessful trading experience. A sound risk management can yield a steady increase of profits, while a poor risk management can wipe out an account in a very short period. If you follow the 1% risk per trade rule, a precise stop loss level presets that 1% value and you’d know beforehand the amount you risk losing should your trade turn negatively. And this goes hand in hand with the second rule. 2. Know the stop-loss level before you ever get into the trade The stop-loss is a simple tool, yet so many traders and investors fail to use it. Whether to prevent excessive losses or to lock in profits, nearly all trading styles can benefit from this trade. Think of a stop-loss as an insurance policy: You hope you never have to use it, but it's good to know you have the protection should you need it. So, always use a stop loss and know its location before you ever get into the trade. Also, never widen your stop losses when the market moves in negative territory. Know that regardless of what happens, there is another trade around the corner. If your trading strategy relies on the success of one single trade, it’s a very bad trading strategy. Remember that trading success is the accumulation of many successfully, managed, both winning trades and losing trades. 3. Don’t involve in revenge trading A big loss causes all sorts of inner conflict—a need for revenge, fear, anger, frustration, self-hate, market-hate, and the list goes on. After a big loss, there's no way to trade with a clear head. There are more than 250 trading days in a year, so there is no rush to get back in there. If you do so, you basically revenge trading. Rather than looking to your strategy and make sensible decisions around the incident, you jump straight back in. This is dangerous for your account for two main reasons. First, it forces you to throw your trading discipline out the window. It shifts your focus from your trading process to trying to make enough money to recover your losses. Trading based on emotions and luck is not trading. It’s gambling. It’s also a lose-lose situation. If you lose a revenge trade, you increase your losses even more with a trade that you had barely planned for. If you win, then you’re believe that trading on guts and emotion works and you’re going do it again. So don’t do it. 4. Accept responsibilities for your decisions Accept responsibility If you suffered a large loss; be sure to own it. Don’t brush it aside, hide from it, or blame the “smart money” for your loss. There is always an excuse for a losing trade, but as traders and investors, we must accept the risks. Until we accept that we are responsible for whatever happens with our orders, the same thing will happen again. Accept responsibility and figure out what could have been done differently. This will help reduce the chance of it occurring again. It is also healthier than blaming other factors for your mistakes. Blaming others is admitting you don't control your own trading, and if that is the case, you shouldn’t be trading at all. If you control your trading and investing, then you can fix it. And is always something that can be done. It may involve changing markets, changing your strategy or your trading style. If you find that scalping the 1-min chart brings you a lot of losses, try swing trading. The solution is there; you just need to find it. 5. Stop trading for a while Sometimes, it’s better to take a break to figure out what went wrong. Do those things so that you can get back to a better mindset in which you can refocus. After that, assess what happened by reviewing events carefully. Think about where you fell short. For example, did you take too much risk? Was the trade well-planned? Were you mentally sharp, or did you hold a losing trade hoping to avoid a loss? Taking a break from trading is one of the hardest things to do, but it’s a smart move. Wait for the conditions to improve. Preserve your cash, save your sanity and focus on other things. When the conditions improve, so will your results. Remember: the market will not disappear tomorrow. Nothing terrible will happen, on the contrary – during this time away from charts you will likely to come up with new, better ideas on how to improve your trading. 6. Trade lower position sizes After a big loss, confidence can be low. Not having a clear mind can cause you to skip trades, panic out of trades, or be overly-aggressive. None of these are good. Take a step back and trade in a demo account for a few days. Because it's not real money, there is also less pressure in a demo account, so it is easier to focus on trading, and not worry about the financial aspect of it. A few winning days in the demo account will raise your confidence levels and put you in a better mental space to take on the markets again with real money. So after a losing streak, start small; don't jump right back to the same position size you were trading before. In the first days back, trade small position sizes. A winning day with a small position size will help build confidence, and you can slightly increase your position size as the account balance goes up. If you have a losing day, losing on small position sizes is easier to handle than another losing day on full position sizes. Even if you win a few days in a row, increase your position size incrementally, so it takes about a while to get back to your full position size. I know that after you have traded bigger position sizes, it's annoying to start back with a small position size, but it's for the best. Bouncing back from a losing streak is about getting back to basics and implementing a strategy well, not actually about making money. Money comes from implementing a strategy well. Demo trading and trading small position sizes gets you refocused on what's important, so you can start building your confidence again. 7. Let Go of the Outcome and Embrace the Process Realize that trading is a continuous process of learning. Most of the times, in trading (like in real life!), you learn more from your mistakes than from your victories. Losing money should motivate you to look closer at your actions, read more, better educate yourself, become more disciplined in your execution and so on. Next time, you will have a better idea of what happened and where you went wrong and can open up room for improvement and start stacking the odds in your favor. As cliché as is sounds, putting your focus out of making money and into enjoying the process will keep you on the right track and more likely end up in profit. If you learned something new and found value, leave us a comment to show your support, Thank You.
BITSTAMP:BTCUSDEducation
by Sahran_Mohammed
1
2/19/20 The Week so FarI'm learning to accept these harder weeks as the better opportunities for me to become a great trader. Of course I love it when every position I take jumps out at me and earns me a profit, but I remember a point when I would avoid the charts entirely after a string of either losses or missed opportunities. It's so important to continue to trade with an unbiased approach as you look to identify good trades rather than "profitable" trades. As I always mention, this trading game is all about probabilities and consistency, money is just a byproduct.
by Newsense
Why are you failing? Part 2Accepting that you were wrong has to be one of the hardest things in trading.The worst has to be when you’re on a winning steak ,and then BOOM you have that one trade that goes the opposite way of your entry.Even if you have a stop loss you start to move it further away allowing it to gift the market more money. You can’t take the loss because of your ego ,or maybe it just bothers you to see your account go down.Maybe you start telling yourself that you have been in other trades where you took a loss and then it went right back where you bought it and much further. These are the times when decision making in trading becomes difficult and emotional.At the end of day trading is very difficult which requires a lot of moving parts for you to be successful. Quote of the day:“Every trader has strengths and weakness. Some are good holders of winners, but may hold their losers a little too long. Others may cut their winners a little short, but are quick to take their losses. As long as you stick to your own style, you get the good and bad in your own approach.” -Michael Marcus Trader Essentials from Amazon 1. amzn.to -Tylenol Extra Strength Rapid Release (LOL) 2. amzn.to -Encyclopedia of Chart Patterns 3. amzn.to -Apple MacBook Pro 4. amzn.to -OLLY Goodbye Stress Gummy,
by Red_Rock5
Trend is your friend -[A lesson](NEVER GO AGAINST THE MARKET)EURAUD I learnt a lesson for lifetime here: I closed my short early around the 4th LL(MY TP had reached) : Now i wanted more so kept my longs but extinguished my Shorts. I had long positions buildup on every lower low considering the EUR to overpower AUD fundamentally. But it never occurred as you can see I did exit my longs during the Asian session as I saw the LL break but it was a fakeout for the session. In the End the fake move turned out to be the original move. How biased I became doing TA to justify My Longs and over 400$ in draw down(Wiping off all my gains for today and yesterday.) I made an A symmetric triangle for tend reversal then searched the web and realized it was a continuation pattern my mind played tricks on me. As soon as the Triangle broke I got out of the trade as I couldnt see my gains go to -ve.(So now im neutral for the week. All hardwork gone just cause i kept adding to my loosing position ) I even made a Inv H&S as you can see to justify that my long position was valid and shouldnt have closed em in loss. But thankgod I did Finally, friends be careful out there never go against the trend. So my holiday starts much sooner gonna take a breather here and start back again from monday. I Had my analysis of downtrend did take the trade. in-spite of that my mind kept playing tricks on me to add counter trend positions and IDK what I need to do to not make the same mistake again(Read more psychology books?) Any help would be wonderful.
Education
by blankz369
Mentality and Sticking to Your PlanDISCLAIMER: Hi everyone, I'm new to trading and this is just a log book for me on applying everything that I have learned and continue to learn as I go along. That being said, I do not advise you to base your trading on these "ideas". Last week I published a small "idea" for a quick scalp on the CADJPY. I noticed an uptrend that I didnt expect to go past a certain Resistance level from a few months back. I set my Take-Profits and Stop-Losses at fare prices, and hit my Take-Profit. I was happy with my trade but, being the amateur that I still am, I not only left money on the table but I didn't stick to my plan. I looked for what would have been another opening, which turned out to be a correction that hit my stop loss as soon as the market opened (thanks to a huge gap). Not only did I loose the profit from my previous trade, but the price rose up and came back to where I wanted it to be all along. I have yet to lean how to keep emotions out, and set myself into the right mentality. But I do know that it is something that we all must learn to be succesful traders.
Education
by EdwardFabianRamirez