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Market Structure Tips Analyzing trends and price changes are two very important things traders focus on to gain profit. Trends allow traders to predict future prices and how they would change. Two types of trends that exist in the market today are uptrends and downtrends. Each type of trend tells a different story and has its own impact on a traders success in the market. While uptrends show a series of higher highs and higher lows, downtrends show lower highs and lower lows.
Education
by ChartDepth
RSI:MACD advanced indicatorgreetings, hope you're doing well and thanks for your likes and comments . Today i'm gonna teach you how to mix two indicators there's lots of indicators that you can mix together and use them, at this tutorial i'm gonna try adding MACD and RSI . 1_ Once you have added the RSI indicator, you have to open RSI settings. 2_then you have to process the way below : go to settings > go to inputs (its a tab like button above) > open source, select MACD:MACD . congrats you have mixed these two indicators, but it haven't finished. 3_ after these steps you have to go to style tab > set the upper band on number 66.66 4_ you have to turn of the check of middle band (there's no need to use it;) 5_ then, set the lower band on number 33.33; well done ! "Guys there is no any %100 true analysis" . you should buy if the RSI line goes upper than lower band, you can expect growing up the price you should sell id the RSI line goes lower than upper band, you can expect getting down the price, thanks for your likes, and comments <3 If there was any questions, i will be so glad to reply to your messages !
Education
by Trader_mehrab82
A fatal mistake to avoid making at this point with BitcoinA fatal mistake to avoid making at this point with Bitcoin Twice during its daily volatility (i.e. daily highs and lows), Bitcoin tried not to fall below the $57,000 price (testing to hold the 57k support). - But it failed and the price fell below 57K ((breaking the support and turning into resistance) and now the bitcoin price is heading to test maintaining the 50k support and maybe 48k. Although the current situation looks tempting for weekly (swing) trading, - However, there is no clear indication confirming the success of such trades. What is the signal that if it occurs you can enter into this type of weekly trade. Understanding the cryptocurrency market is the most important factor in making your decision to trade and enter deals. Some argue for their reliance on technical analysis of Bitcoin on smaller time frames that the current price structure is bearish and that the potential for downside is stronger than upside. - What confuses the weekly traders is that the price is now looking for a bottom or a support area; Since they use weekly oscillators that do not take into account the wider time frames. - Yes, the small time frames indicate a bearishness, but when we expand the view to the larger time frames, which they often overlook, we will find that the price is looking for a bottom from which to go up. Falling on short time frames is just a correction of price on big time frames. - This means, that as soon as the price drops to the support or bottom it is looking for (eg 50k price), the currency's bullish activity begins. But is this bullish activity safe for deals? - Before reverting to the bullish activity following the recent bearish structure, more indicators should be taken into consideration before taking any risk. - that is, for example, you can not enter a trade based on the hammer pattern only, the rise after the occurrence of this pattern is not strong in these times of market situation. - You should wait for the price structure to achieve stability, such as a double bottom or a bigger bottom than a bottom after it successfully tested the expected support. Many traders fall into the trap of being impatient, fearing that they will “miss the train”. - Many in the previous period entered the market very early, and bought currencies based on the recommendations of non-professionals, and then the price continued to fall. - Yes, the price will rise, but the entry area and when to enter the market is what we know from technical analysis, after confirming with several analyzes and indicators that the price finished the correction and succeeded in testing some support and established a strong footing on the support price. Another mistake that you should avoid making is not to make your actions an immediate reaction to what is happening or what you see in price changes or surprising actions based on expectations, especially if this expectation contradicts the market analysis on the broader time frames. Corrections in the financial markets are very confusing, especially if you do not follow a certain set of rules and have a clearly defined strategy. Technical analysis provides methods for measuring risk, evaluating expectations and probabilities, and formulating a set of rules about market behaviour. Earning money is not a strategy, it is an expected outcome that comes with associated risk. My rules help me determine which possibilities are more likely and less risky in an objective way that helps reduce my thoughts and views. - What I see now on the chart is that the price is looking for a bottom just below 5500K.
Education
by fady_ramsis_bashandi_bishay
⚡️ Crypto Insights ⚡️ #2 - Altcoin CyclesIn this visual we can see an orange graph overlaid onto the BTC price chart for the last peak back in April. This orange graph represents the collective market cap for all crypto excluding BTC. We can see that the price of altcoins lag behind the price of BTC and actually top around around 3 weeks after the peak. If you go back and look at the ATH at the end of 2017 you will see a very similar pattern. Altcoins tend to lag a few weeks behind BTC and, therefore, peak after BTC highs also. If you are an investor, this is a key sign to watch out for and if you have made significant gains will give you a strategic exit.
COINBASE:BTCUSDEducation
by Flow_Capital
4 Market Stages Every Trader Should KnowIn this video, I explained in detail the market stages. Note: You have to watch it to correct your---trading mistakes. market stages: a2d2=hr 1st: accumulation. . .(market gather/looking for buyers). in this stage, stop-hunters are usually out to hunt. tips: watch the trend and avoid the first breakout. 2nd: advanced. . .(buyers won) this stage—the confirmation has been made. tip: to get in—know thy MS 3rd: distribution. . .(range starts, product exhausted—where are the damned sellers?) we are in need of more supply. tip: avoid the range! 4th: decline. . .(oops! supply needed, bad economy—inflation. . .might be anything) we just down big time. tip: “buy the dip!” nah. . .scratch that! invest in the dip. cos’ as traders we win either way for more on trading, follow me!
OANDA:NAS100USDEducation
0
by lazyluchi
4
Top Crypto Influencers To Follow In 2021(🔴PART 2)Hi guys As I promised in the previous post about influencers, I also posted the second part for you, there are 6 other people on my list, and if the number of likes reaches 270, I will post it for you as well. ✨1.Loomdart(@loomdart) Loomdart is a cryptocurrency analyst and veteran trader who has been actively dishing out well-researched, pertinent trading and investment tips and strategies on Twitter since mid-2014. ✨2.Starbust(@cryptostardust) Also known as Inversebrah in the crypto community, Starbust can only best perfectly described a crypto memes connoisseur. Much to the amusement of his thousands of followers, Starbust's online persona brings a satirical and comical twist to the often over-serious and overcomplicated debate on cryptocurrencies and his popularity is only rising, so you might want to follow him to a laugh or two ✨3.Lil Bubble(@TheCryptoBubble) Popularly known for producing parody versions of famous songs by the likes of Blink 182 and Avil Lavigne, Lil Bubble is undoubtedly the biggest satirist in the cryptocurrency space with hits like All Time Lows and Liquidated pushing him into an bigger online stardom. His productions can be found on Instagram and Twitter. ✨4.Altcoin Sara(www.youtube.com) Sara is a rare female face in the crypto space and one of the community’s biggest advocates through initiatives like the Altcoin Buzz Ladies YouTube channel, where she discusses cryptocurrency news, provides market analysis and offers a platform for alternative perspectives in the world of blockchain. ✨5.Credible Crypto Your main stop for understanding crypto trades, trends, and the marketplace at large is none other than Credible Crypto. Through his relentless quips on Twitter, Credible Crypto shares market analysis and investing advice with a healthy dose of humor thrown into the mix. He also does a superb job at breaking down key concepts and delivering a simple and approachable strategy to crypto investments and business ✨6.Changpeng Zhao(@cz_binance) More commonly known as "CZ", this business executive is none other than the founder and CEO of the world's largest cryptocurrency exchange - Binance. With an impressive track record in software development and trading for Bloomberg, CZ also found success while working at Blockchain.info before moving on to found his own startup. He frequently shares his wealth of knowledge on Twitter, earning him a solid spot on this list of crypto influencers. ✨7.Nicholas Merten(@Nicholas_Merten) Nicholas Merten is the founder of DataDash, the largest and arguably one of the most influential YouTube channels solely dedicated to covering crypto-related news. He's equally active on Twitter. ✨8.Roger Ver(@rogerkver) Another early investor, Ver has supported a number of cryptocurrency startups and projects over the years, cementing his status as 'Bitcoin Jesus' (as he likes to proclaim himself). He's also a leading digital philanthropist after major donations toward economic education. He currently serves as CEO of Bitcoin.com and you can find him Twitter. ✨9.Vitalik Buterin(@VitalikButerin) The co-founder of Ethereum (and the world’s youngest known crypto billionaire), boasts a massive online following, in large part due to his outspoken and opinionative views. The Canadian-Russian programmer isn’t exactly shy when it comes to stoking debate over some of the crypto industry’s most controversial aspects and has been praised for tackling sensitive issues head-on. He uses his platform to put pragmatism and principles before crypto politics. Buterin has also become a leading crypto philanthropist, making hefty donations to major causes. Follow him on Twitter, where he tends to drop some pretty big announcements. ✨10.Gavin Andresen(@gavinandresen) Primarily known for his crucial contribution toward developing Bitcoin during its initial phase, Gavin Andresen was considered Satoshi Nakamoto’s right-hand man, taking over from the Bitcoin founder after his abrupt departure from the project in 2010. Andersen then went on to become the face for Bitcoin as it exploded into mainstream consciousness. He’s since gone into semi-retirement but still plays a big and influential role as Chief Scientist at the Bitcoin Foundation. You can find him on Twitter.
BITSTAMP:BTCUSDEducation
by seyed_mehdi
TradingView Hotkeys That I Use The MostHi, Just wanted to point out some TradingView hotkeys that I use the most: * ALT + H = Horizontal line - a great way to quickly mark the round numbers on your chart or tight support/resistance areas. * ALT + V = Vertical line * ALT + T = Trendline * ALT + I = Invert the chart - probably the most interesting hotkey. Do you have some trouble taking "SELL" ideas? You are more kinda "BUY-guy" or vice-versa. In TradingView you can turn your chart upside down and see does it look good if you would want to buy it. Sometimes, it is quite a big help. * ALT + S = Take a screenshot of your chart * ALT + F = Fibonacci * ALT + W = Put the chart to the watchlist - seeing something interesting you can add it quickly to your watchlist. * ALT + A = Set the alert * SHIFT + CLICK = Measure tool Regards, Vaido
COINBASE:BTCUSDEducation
by VaidoVeek
99
Don't Miss the Stock Market Boom By Fearing the Crash.It is absolutely normal to worry about the next stock market crash. You probably have a portion of your life savings wrapped up in your retirement fund, which is tied to the success of the stock market. Should You Fear The Next Crash? Except for the perma-bears out there, no one loves a stock market crash. But the fact is Governments, Central Banks and Economists are getting better at responding to existential financial disasters. The recovery from the Corona crash has been nothing short of impressive. This crash was the most violent and volatile of all crashes, yet has been handled very well. It had the potential to be as big as 2000 and 2008, yet the response curbed the brunt of the disaster. How Long Until Stock Markets Recover From A Crash? If we analyze the 6 major US stock market crashes of the last 100 years, we see that the average peak loss was 57%. Also, the average duration of the recovery is 9.8 years. This can be somewhat misleading, though. The 1929 crash was exceptional in its size and duration. Additionally, governments and central banks have realized that they can manage inflation and stimulate the economy to speed economic and stock market crash recovery. Over the last 20 years, we have had 3 major crashes, with an average loss of 62%, but with an average recovery time of 7 years. the last 2 crashes lasted only 5 years and under 1 year. The History Of Crashes Year Loss Years Recovery 1929 -89% 23 1973 -46% 10 1987 -35% 2 2000 -83% 16 2008 -54% 5 2020 -38% 1 Average -57% 9.8 Will There Be Another Crash? Yes, there will be another crash, probably due to a needed correction of the current boom we are in. What Will Cause the Next Crash? Historically speaking, my analysis shows that the most common causes of crashes are: - Equity Bubbles (1929,1987,2000) - Easy Access to Credit (1929,1987,2000) - Poor Institutional Risk Management (1929,1987,2000,2008) - Asset Bubbles (2008) Right now we are experiencing an Equity Bubble, Asset Bubble (Property), and Easy Access to Credit. The Crypto Bubble is also a major risk. When Will Be the Next Crash? My in-depth business cycle analysis indicates a high probability of a correction in 2022. This also coincides with potential increases in interest rates to begin cooling off the current boom. Don't Be Crippled By Fear. The markets are booming, now is not the time to be crippled by fear. If you miss out on these gains in the good times, what do you have to look forward to in the bad times? Crashes do not happen overnight, they usually take 2 to 3 years to fully hit bottom, so you will have time to react. Just enjoy the ride for now.
TVC:DJIEducation
by liberatedstocktrader
8
DeGRAM | Features of the MARKET STRUCTUREPrice action and market structure. Understand. Anticipate. Earn. As advocates of technical analysis of price, we recognize that price and its traces on a chart are everything. Nothing else is needed. Only one thing is important for us, we do not need to get away from everything and understand the price action and the structure of the market. Price is a trace. What buyers and sellers leave behind on the battlefield, we have the right to use this advantage. Thus, the price is the meeting point for decision-making by all market participants. It does not matter what traders, speculators use technical analysis, inside information or fundamental analysis. A careful analysis of price movements reveals areas of imbalance in market forces, which therefore offer interesting opportunities for profit - this is the main reason why we are fond of understanding price action and market structure. The essence and important points when building a chart of price action and market structure. The idea behind a chart is primarily to show where price has moved over time. Supply and demand determine the price of something, and a chart is a graphical representation of historical changes in supply and demand, i.e., historical changes in the overall attitude of buyers and sellers towards the viewed product. Clean charts: is a powerful tool that can facilitate this integration and promote the development of intuition. Focus on where it should be on price candles or bars and the evolving market structure. Opening price. How important is it? Annotate your charts with annual, monthly and weekly opening. Price changes anytime, anywhere, and our charts become volatile because human emotions are influenced by the news. You should always mark your schedules with annual, monthly, and weekly openings; and if you are an intraday trader, with a daily open. due to backorders and order flow. The price moves out of liquidity zones and returns to them. When the year, month and week come to an end, large speculators seek to cover, change or open new positions. Thus, there is a lot of "order changes", and at the same time, unfulfilled orders often remain: liquidity remains in the same place. Thus, "smart money" gradually enters the market and, thus, does not always fully fill its position. Hence, they have the choice to leave the order unfilled so that the price can raise it when / if the market returns. This: triggers a reaction at these levels in terms of order flow, partially responsible for price memory. Price. What is it? Every player. From retail to institutional money. But at the same time, who wins in the market: retail or institutions? If you want to make money in the marketplace, you must stop thinking like a retail trader and start trading like institutions do. Therefore, a good way to use these levels is to understand them in terms of accumulation / distribution. The accumulation stage is followed by the expansion stage and the distribution stage. You need to make sure that you are not a retail money, in other words, the “opposite side of smart money trading”. Candles. Structure. Each candlestick tells you a story about the structure of the market. At this point, the main thing to understand is that candles are a graphical representation of price movement and therefore show the mindset and sentiment of the market, as well as any changes in that thinking and sentiment that may unfold. This is why price tells you a story: because a candlestick can be broken down into its component parts to determine the direction of movement that it represents for price. Basic Principles of Psychology Through Price Action A green real body candlestick is created on the day the market closed higher than where it opened: In other words, the price moved up during the day. This means, if we use the basic principles of supply and demand, there were more buyers than sellers. In the market language I will use from now on, the bulls won. The red real body candle is the result of the day when the market closed below the level at which it opened. This means that sellers outweighed buyers or there was more supply than demand, causing the price to move lower. In market conditions, it was a bearish day. Output Many people believe that price changes are random and unpredictable. If this were true, the only logical course of action would be ... not to trade! A correct reading of price action will enable you to understand and extract market structure from your chart. Once you get this advantage, you can stay on the right side of the market. Then you can sit quietly. ------------------- Share your opinion in the comments and support the idea with likes. Thank you for your support!
Education
by DeGRAM
3
MARKEY CYCLES PSYCHOLOGY | EMOTIONS & COGNITIVE BIASES All markets go through cycles of expansion and contraction. 📈When a market is in an expansion phase (an uptrend), there is a sentiment of optimism, belief, and greed. Typically, these are the main emotions that lead to a strong buying activity. Sometimes, a strong sense of greed and belief overtakes the market in such a way that a financial bubble can form. In such a scenario, many investors become irrational, losing sight of the actual value and buying an asset only because they believe the market will continue to rise. They get greedy and irrational by the impressive bullish movement, expecting to make huge profits. As the market gets heavily overbought, the local top is created. In general, this is considered to be the point of the highest risk. In some cases, the market will start a sideways movement while smart money steadily sells the asset. This is also called the distribution stage . However, some markets don't present a clear distribution stage, and the downtrend starts sharply after the top is reached. ➖➖➖➖➖➖➖➖➖ 📉 When the market starts reversing, the euphoric mood can quickly turn into complacency , as many traders refuse to admit that the uptrend came to an end. As prices continue to fall, the market sentiment quickly moves to the bearish side . It often includes feelings of anxiety, denial, and panic . In this context, by the anxiety we mean the moment when bullish biased market participants start to question why the price is falling, which soon leads to the denial stage . The denial period is marked by a sense of unacceptance. Many investors keep holding their losing positions, either because "it's too late to sell" or because they want still believe that "the market will come back soon." But as the prices drop even lower, the selling wave gets stronger. At this point, fear and panic often lead to what is called a market capitulation (when holders give up and sell their assets close to the local bottom). Eventually, the downtrend stops as the volatility decreases and the market stabilizes. Typically, the market experiences sideways movements before feelings of hope and optimism start arising again. Such a sideways period is called the accumulation stage . ❤️ Please, support this idea with a like and comment! ❤️ ⬇️ Subscribe to my social networks! ⬇️
OANDA:XAUUSDEducation
by VasilyTrader
16
STOCK MARKET CRASH, MARKET CORRECTIONS, BEAR MARKETSSo alot of terms being throw around about a Market Crash. Some people saying the market needs a correction, and others saying we have entered a bear market. They are not the same so what do each one of these look like? A Stock Market Crash This is usually caused by some economic damning event. Anything that would scare an investor into thinking our country and market are in real danger. This will usually cause a sharp drop in price, indicating fear is driving the market. Market Correction Usually multiple sharp drops and bounces in the nominal price of the company, and can be cause by inflation fears as they are now. This allows the market to regain its footing at a less overvalued level. Generally when playing the corrections the price will be trading within a channel and continue to bounce and drop until investors sentiment changes Bear Market A bear market is when investor sentiment is pessimistic across the market and we can see up to a 20 percent pull back from recent highs. Described as more of a slow declined or controlled pullback. Just thought I would post a quick elaboration on each. There are so many factors that can cause both but all generally center around these rules.
AMEX:SPYEducation
by SimpleStacks
1
Options vs Stocks: Which Is Better?If you are wondering whether to trade options vs stocks, then this article is for you. There’s no simple answer to that question because it depends on how much money you have and your risk tolerance level. This blog post will cover the 7 topics that you need to know to answer the question “Is Options Trading Better Than Stocks?” 1. What Is The Difference Between Buying Stocks and Buying Options? Let’s keep it simple: When you buy a stock, then you own a share of the company and get paid dividends. Buying options, on the other hand, means that you only have the right to buy or sell a stock at a specific price before the option expires. But you don’t own the stock (yet). As you will see in a few moments, options trading requires much less capital than buying a stock, and therefore it’s very attractive. But it can also very confusing. My goal is to make it simple for you. Let’s start with an example: 2. Which Is Better: To Buy A Call Option On A Stock Or To Buy A Stock? Let’s use Apple (AAPL) as an example. Right now, the market price (at the time of this writing on May 6th, 2021) of AAPL is 128.70. Let’s assume, you are bullish on Apple and expect AAPL to go higher. So you could buy 100 shares of AAPL, but this would come with a high price: 100 shares * 128.70 per share = $12,870 If you have a small account, this might be too high of an investment. The good news: You can trade options instead. When you buy a CALL option, you have the right to buy 100 shares of AAPL at a set price (the strike price) on or before the expiration date of the option. You could buy a call option that expires on June 18th. Today is May 6th, so you have 43 days before this option expires worthless The price of the option is $3.75. Options come in “100 packs”, so your investment to buy this call option is only $3.75 * 100 = $375 Why Buy Options Instead Of Stocks? First of all, it’s much cheaper: Compared to the investment of 12,807 to buy 100 shares, that’s only 3% of the money that’s required. And because of that, options more profitable than stocks. Let me explain: 3. Are Options More Profitable Than Stocks? Since you are bullish on AAPL, you expect the stock to go up. Let’s say that over the next few weeks, the stock goes to 140: Let’s take a look at the profits from your stocks first: You bought 100 shares of AAPL at a price of $128.70 per share. Now each share is worth $140. So your profit is 140–128.70 = 11.30 per share * 100 shares = 1,130. Based on your investment of $12,870, that’s 8.8% Return on Investment (ROI). That’s not bad, but let’s take a look at the call option: How Are Options More Profitable Than Stocks? The call option that you bought gives you the right to BUY 100 shares of AAPL for $130 before June 18th. So if AAPL shares move up to $140, you can buy 100 shares of AAPL at $130 and sell them immediately at $140. This means that your profit per share is 140–130 = 10. And since you are trading 100 shares, your profit would be $1,000. But keep in mind: You paid $375 for the right to do this, so you need to subtract this from your profits: 1000–375 = 625. Your total profit is $625. Doesn’t sound much, but based on your $375 investment, that’s 167% return on investment (ROI). In summary: You made more money in terms of absolute dollars on the stock ($1,130 vs. $625), but the money you needed to make this profit was much less: $375 vs. $12,870. And that’s why your ROI is 167% when trading the option vs 8.8% when trading the stock — even though the stock price is exactly the same. Pretty cool, huh? 4. How Much Money Do You Need For Options Trading? As you can see from the previous example, you need MUCH less money when trading options vs trading stocks. When trading options, you can get started with as little as $2,000. Check with your broker about the minimum requirements to open an options trading account. So if you have a smaller account, trading options might be much better for you than stock trading. 5. Can You Lose Money Trading Options? Let’s talk about the risks of options trading, specifically the question “Can you lose money trading options?” The answer: YES, of course! In the example above, you could lose the premium you paid for the option, i.e. $375, if the stock price does not move above the strike price of $130. If AAPL remains below $130 until the expiration date of June 18th, your option expires worthless. And here’s why: With a call option, you have the right to BUY 100 shares of AAPL for $130. If AAPL is trading below $130, let’s say at $128, you don’t want to exercise your right to buy AAPL at $130. Because then you would pay MORE for the stock than you would if you bought it right away. Making sense? So if AAPL stays below $130 until expiration, your option expires worthless and you lose the premium you paid for the right to buy the stock. Can You Lose More Than You Invest In Options? When you are BUYING options, you can not lose more than the premium that you pay when buying options. So that’s good. However, when you are SELLING options, that’s a different story, and we will cover that later. So in summary: When BUYING options, the maximum amount that you could lose is the premium you pay when buying the option. 6. What Are The Risks Of Options Trading? YES, there are risks when trading options: a) Selling Options Can Be Dangerous. As you have seen, when BUYING options your risk is limited to the premium you pay when buying the option. However, as a seller, there’s a lot more risk. In some cases, you can have UNLIMITED risk. We will cover this in detail in a later article. b) Buying Out Of The Money Options. Risky before the probabilities are low. c) Know What You’re Doing When trading options, there are a few more things to consider: Call options vs put options Strike Prices Expiration Dates … and then there are also these pesky “Greeks” like delta, gamma, theta, rho, etc. And when you have more things to consider, there are more possibilities to make mistakes. So make sure that you understand all these factors before you start trading options. We will talk about “The Greeks” later. Are Options Riskier Than Stocks? YES. Because it’s easier to lose ALL of your investment. Let’s continue our example from above: Trading Stocks You bought AAPL at $128.70 per share. If AAPL drops to $125, then you would lose $3.70 per share, or $370 for 100 shares. Based on your initial investment, that’s only 2.9% Trading Options You bought the 130 Call Option for $3.75. If AAPL doesn’t move above 130, you lose ALL of your investment, i.e. 100%. Yes, the investment is much lower, but instead of losing 2.9% as you would when trading stocks, you would lose 100%. Selling Options And when selling options, you can lose A LOT of money. Selling options can be very profitable. In fact, I made more than $75,000 in less than 5 months selling options… … BUT it’s also very risky. Compare options vs stocks like riding a bicycle and riding a motorcycle: Riding a motorcycle gets you to your destination quicker. And it can be more fun. But it’s also much riskier than riding a bicycle. 7. Can You Really Make Money Trading Options? Absolutely! There are many advantages to trading options, and it is possible to make money with options. Is there a safe way to trade options? You need to know what you are doing, and you need to have a solid trading strategy. Find a strategy that you understand and then practice it on a simulator. And when you are ready, start making money with it. Can Option Trading make you rich? When trading options, you will often see returns of 167%, 200% or even 300%. Therefore, it’s easy to believe that options trading can make you rich. But keep in mind: With these high returns, comes high risk. Yes, you can make 200% or 300% when trading options. And you can lose ALL your investment, as you have seen above. Don’t think of options trading as a “get-rich-quick-scheme”. But when used correctly, options trading is perfect to grow a small account into a bigger one. Summary: Should I Trade Options YES! Should I trade stocks or options? Why not do both? Best of both worlds! Is options trading worth it? YES! It can be very rewarding! As we just covered with trading options, there are many, many advantages. If you are not trading options yet, I highly recommend that you start looking into them.
NASDAQ:AAPLEducation
by rockwelltrading
1
Technical Formula for Understanding MARKET PSYCHOLOGYI lost a lot of money in Tehran Stock Exchange. Because simply I arrived too late. I read a lot in past year and now I can say why I lost a lot of money and how can prevent it in future. It's simply the psychology of the market. Retailers like me get in when everybody says that something is good and profitable; Seriously Everybody! Tonight I was thinking about a technical formula of analyzing market psychology to find better entries in markets and I came up with this. There is 4 waves in every market/stock/digital coin/etc. Wave Zero: Smart money come here. It happen in things that are very cheap and nobody talks about them. Wealthy investors never buy expensive thing, remember! On the chart you can se a slight rise in overall volume but price do not show a big rise. It respect the resistance. Price don't break it's prior resistance but the bottom price rises. You can see higher lows in the chart but no higher high. Smart money controls the price and didn't buy a lot in one week. Because they don't want people get noticed yet. So they keep buying a long period but their positions sizes are low. After buying 75% of their desired volume, they but the other 25% faster. So you can see a rise in price, higher highs and higher low and finally the breakout happens and first wave starts. Wave One: Obvious rise in price and volume but still not everybody knows. News agencies don't talk about it yet. The only group who find out are seasoned traders. They are going to buy in the pullback of this wave. So this wave has the shortest retracement. Because there is not a lot of rise in price and experienced traders have bigger money than retailers. Wave Two: This wave has the longest candles and biggest gain. Everybody is happy now and enjoy the profits. At the end of this wave news agencies start to talk about it. Gurus publish some analysis and say that it can go even higher. Slowly retailers getting noticed. But they are not confident about it yet. Smart money starts to sell about 50% of it's positions. Because retailers don't have a lot of money it takes time for them to buy the pullback so we have a longer retracement than Wave One. Notice, smarter retailers come here and others just come when the Wave Three starts. Wave Three: This is Euphoria. People are exaggerating about the stock. They think it worth a lot higher and they think it can go to the moon. Here we see lower volumes than prior waves because in this stage retailers move price higher and they don't have a lot of money. Slowly sells rise. Volume keep rising but the price lose it's momentum and the candles getting short until red candles and dojis show up. BOOM! Smart money and the experienced traders start selling all of their stocks. From here you can see price getting down and people get nervous. This is the real sign of down trend. So summary: How to find out where is smart money? Go search cheap things in weekly timeframes. Find something that is consolidated and you can see a slight rise in overall volume. Price shows higher lows but no higher high; inside consolidation. It's not a good entry for retailers because price can stays here for months. There is no sound about this stock in market. How to recognize first wave? Obvious rise in price and volume. Price broke from a consolidation lately. Nobody noticed it yet; it's very important! Don't look in news and guru groups for good stocks/digital coins/etc because if they know we are not in first wave. A few knows about it and they are hopeful. It's Optimism phase. The last sign is that retracement doesn't last longer than 4-5 weeks. After breakout from top of wave one, buy the pullback to the broken resistance. It's the best entry for retailers. When to sell? When news start talking about your stock sell 50%. Highest candles, highest volume, longer pullback, people who have it are joyful and excited and non experts look for opportunities to buy the stock. These are signs of second wave. It's the excitement phase. After another breakout from top the last wave starts. You can see retailers are super optimist about the stock. No bad News about the stock but you can see decreased volume. You can sell other 50% here. It's the Euphoria. People who invest in long term can benefit from above explanation. One last tip: traders who work with Elliott waves, the first wave is the first Elliott wave, the second one is the third Elliott wave and the last wave in my explanation is the fifth wave in Elliott theory. Tell me if it helped you or you have other ways to recognize market psychology by technical analysis.
Education
by aasgarib
13
100 ways to read a chart Especially for beginners it can be very confusing to interpret a chart ... patterns, indicators, oscilators. SDMA, EMAs, Fibonacci. If you are interested, I would be happy to go into more detail about individual tools and setups, but today I will just give an overview of which tools and types of trade are available. Timeframe Trend trading months to years Swing trading days to weeks Intraday 1 day Scalping seconds-minutes Different markets Forex Stocks raw materials Indices Cryptocurrencies The main technical indicators Simple moving average (SMA) Exponential Moving Average (EMA) Stochastics Relative Strength Index (RSI) Commodity Channel Index (CCI) Moving Average Convergence / Divergence (MACD) Bollinger Bands (BB) Chart types Line chart Bar chart Candlestick Chart Point & Figure Chart Renko chart Three line break chart. Kagi Chart. Heikin Ashi Chart. Trade setups basic types Continuation Reversal Sideways Break out My personal preferences EW Algo's Pattern Price action EMA's MA's RSI MACD KDJ TAR Stoch BB Pitchfork Gan The world of finance is diverse. It is very important to choose a style that suits your psyche, preferences and the amount of time you want to spend. I would be grateful if you support my post whit likes and comments Have a nice trading day
Education
by TR7z
32
Market Cycle of an Emotional Roller CoasterWhen things are great, we feel that nothing can stop us. And when things go bad, we look to take drastic action. Because emotions can be such a threat to an investor's financial health, it is important to be aware of them. This awareness can then protect you from the negative consequences of impulsive and irrational reactions to these emotions. 1: Optimism, thrill and euphoria Investors all start with optimism. We commonly expect things to go our way, or we tend to expect a return for the risk of investing. As expectations are met, it is common to get excited about the possibility of even greater returns and the excitement becomes thrilling as the returns exceed expectations. At the top of the cycle is when investors experience euphoria. But it is here where investors are at the point of maximum financial risk. When we believe everything we touch turns to gold , we fool ourselves into believing we can beat the market, we cannot make mistakes, that excessive returns are commonplace and that we can tolerate higher levels of risk. 2: Complacency, denial, hope The second phase of the cycle occurs when the market stops meeting our new lofty expectations and begins to turn. At first, we anxiously watch the market for any signs of direction. Anxiety turns to denial and then quickly to fear, as the value of the investments decline. Many people will then start to act defensively and may think about switching out of riskier assets to more defensive shares or other asset classes such as bonds. 3: Panic, capitulation, despondency In the third phase of the cycle, the realities of a bear market come to the fore and an investor may become desperate. Many panic and withdraw from the market altogether – afraid of further losses. Those who persevere become despondent and wonder whether the markets are ever going to recover and whether they should be there at all. Ironically, at these times, an investor will commonly fail to recognize they are actually at the point of maximum financial opportunity. 4: Skepticism, caution, worry In the fourth stage of the cycle, investors may experience some skepticism when markets start to rise. They often have a sense of caution or worry, wondering if market growth will last.—and may be reluctant to invest money in the market at a point when prices are still relatively low and opportunities are attractive. What are the consequences of this emotional roller-coaster?
BITSTAMP:BTCUSDEducation
by Kolin-Lukas
Trading worckstationBeginners often ask me what the optimal trading PC looks like, what to look out for and whether there are special requirements. In pictures you can often see these trading workstations with countless monitors, etc. But the truth and the conclusion right away: You don't need special equipment or a special computer to trade successfully. If you are able to read this article online, you probably already meet the minimum requirements for a trading PC. Successful trading depends on factors such as trading psychology or the right strategy! Not from the equipment. I can also buy marathon shoes now and still wouldn't be able to endure 2 kilometers running. I even advise you, as a beginner, in most cases not to buy a special trading computer. For the following reasons: You don't need these countless monitors, which you usually see on any pictures, because you concentrate on one or a maximum of two markets. Everything else just distracts you, stresses you out and makes for one of the most expensive mistakes in trading: trading too much! Quite pragmatic: money is better off on the stock exchange. The monitor and your trading PC will only be worth half in a year. If you are clever with the money, it will be worth at least twice as much. So the following tips are all optional and come from my personal experience. For beginners, it is better to invest the money in knowledge. I value the following factors: reliability Fast start / operation thanks to an SSD hard drive and a good processor as low a volume as possible Operation of several monitors possible Solutions with multiple monitors are particularly interesting for traders. I currently use 3 monitors (but 2 are usually absolutely sufficient) When choosing a trading PC, I don't pay so much attention to the price, but rather to purchasing reliable devices from large, well-known brand manufacturers. They offer long-term support, good expandability and high quality and reliability. Since trading is about money, that's more important to me than saving a few euros on a one-off basis. Since I usually sit in front of the computer for 12-16 hours, an ergonomic workplace is also very important to me. What is important to you, what kind of equipment do you trade with, you are cordially invited to leave a comment
Education
by TR7z
1
The Link Between Inflation, Rising Bond Yield, & Market Sell-offAggravated by Jerome Powell's speech at the Wall Street Journal Jobs Summit, the tech-led sell-off continues, causing the Dow Jones Industrial Average to fall by 1.11%, S&P 500 by 1.34%, and Nasdaq Composite by 2.11%. On that note, the 10-year Treasury yield also popped to 1.541% during Jerome Powell's speech, later closing at that level for the day. But how, specifically, did Jerome Powell cause the market to sell-off yesterday? Let's find out. Prior to Jerome Powell's speech, there were already a substantial amount of tension surrounding the bond market and concerns regarding inflation. A key event occurring recently that brought a great deal of attention to the acceleration of rising bond yields were the sudden spike in 10-year Treasury yield back in 2/25/21 from 1.38% to 1.54% - temporarily jumping as high as 1.6%, when an auction of US$62 billion 7-year notes was met with weak demand. This rattled the stock market because investors were not ready for the velocity of the 10-year Treasury yield surge. Instead, they were expecting for yields to gradually inch higher throughout the year. In an effort to pinpoint the exact reason for the surge, many conclusions were drawn. One of which relates to inflation concerns. Over the course of the pandemic, trillions in fiscal relief has been delivered, of which an addition $1.9 trillion in fiscal package is expected to come from the Biden Administration. With so much money printed and nowhere to flow yet due to economic lockdown as a result of the pandemic, investors fear that once the economy reopens again, pent-up demand will drive people to go on vacation and spend in masses, injecting all the printed money over the course of the pandemic into the economy all at once, driving inflation up at a rate that has not been seen since the 2008 Financial Crisis. Due to this belief of a looming inflation, it makes bond that are purchased currently potentially worthless because of possible subpar yield. As a result, people flock away from bonds at the moment because they are expecting that yields will rise going forward in order to compensate for inflation risk. Thus, yields are continuously being driven up. However, with the sudden spike in yield, it creates uncertainty around whether we will be seeing an acceleration of rising bond yields and possibly indicate that inflation could be around the corner. The possibility of this scenario is further amplified by vaccination efforts contributing to a recovering U.S. economy, and the incoming $1.9 trillion fiscal package that could further inflate the economy going forward while pushing the economy further into the recovery. Taking all of this into account, let's go back to Jerome Powell's speech. Having understood all of these, investors were looking at Jerome Powell to see whether he would give any indication on how he plan to control the acceleration of the rising bond yield, perhaps through an adjustment of the Fed's asset purchase program, where they will step up on the purchasing of long-term bonds to drive down long-term interest rates, or even extending the Supplementary Leverage Ratio that will be expiring on 3/31/21, so that banks can further help with the purchase of long-term bonds. However, in his speech, Jerome Powell said nothing of the sort, in which the market took as a signal that yields could rise further, triggering the sell-off even further, and driving the 10-year Treasury yield further up to a level that matches the initial 10-year Treasury yield spike back in 2/25/21. In fact, Jerome Powell made supposedly positive remarks stating that he expects the rise in inflation as the economy recovers to only be temporary, that he does not expect the move up in price to be long-lasting nor does he expect it to be enough to change the Fed's accommodative monetary policy, among others. With the market sell-off and surge in yield during his speech, it is clear that the market neither believes his words nor views it positively. To conclude, we are now in a very volatile situation where stocks no longer just goes up. We cannot control the direction of the market, but what we can control is how we deal with this situation emotionally and monetarily. Don't get too hung up on the short-term bearishness of the current market condition because if you zoom out your chart, in the grand scheme of things, this is just a tiny bleep. As such, if you believe that we will eventually recover from this market sell-off, use this as an opportunity to buy into your favorite companies at a huge discount. Invest safe. This is not investment advice so please do your own due diligence! Support this idea with likes and share your thoughts below.
TVC:US10YEducation
by AntrePoint