Get started

Master

Understanding Trading PsychologyMastering the Mindset: A Comprehensive Guide to Trading Psychology Trading in the financial markets is not just about analyses and strategies; it’s equally about mastering one’s mind. The importance of trading psychology is often underestimated, yet it plays a pivotal role in shaping trading decisions and outcomes. This comprehensive guide delves into how to master trading psychology, offering insights and solutions for traders at all levels. Understanding Trading Psychology At its core, trading psychology revolves around understanding the influence of emotional and mental states on trading. Emotions like fear, greed, and overconfidence can cloud judgment, leading to impulsive decisions and potentially detrimental outcomes. 1. Greed: The Double-Edged Sword 🔍What is it? Greed in trading is the excessive desire for more profit, often leading to risky decisions. Imagine a child in a candy store. Given the chance, they might try to grab as much candy as possible, even if it’s too much to eat. In trading, greed works similarly. It’s the trader’s urge to make more money, ignoring the risks. 📖In 2000, during the dot-com bubble, many investors kept buying overvalued tech stocks, driven by greed and the hope that prices would keep soaring. When the bubble burst, many faced substantial losses. 2. Fear: The Paralyzing Emotion 🔍What is it? Fear in trading is the apprehension of loss, which can prevent traders from taking necessary risks. 🤔Think of a person so afraid of water they never learn to swim. In trading, fear can stop traders from making decisions that could be beneficial, worried they might lose. 📖During the 2008 financial crisis, many traders and investors sold their stocks in a panic due to fear, resulting in significant losses. Those who overcame their fear and held onto or bought quality stocks at lower prices eventually saw substantial gains as markets recovered. 3. Overtrading: The Trap of Too Much 🔍What is it? Overtrading is trading too frequently or excessively, often driven by emotion rather than strategy. 🧐It’s like eating too much junk food just because it’s there. In trading, overtrading happens when traders make more trades than necessary, often due to excitement or the urge to recover losses quickly. 🤑A day trader, excited by initial successes, starts making numerous trades daily without proper analysis. This leads to a series of small losses that accumulate over time, eroding their capital. 🧑‍💻 How to Master Trading Psychology Mastering trading psychology is a crucial step in becoming a successful trader. It’s about understanding and managing your emotions, biases, and behaviours to make sound decisions and avoid costly mistakes. Here are some key steps to help you achieve that: ⭐ Emotional Awareness and Regulation: 1️⃣ Identify Emotional Triggers: Recognize what drives impulsive trading decisions, such as the fear of missing out (FOMO) or the urge to engage in revenge trading after a loss. 2️⃣ Understand Cognitive Biases: Be aware of mental shortcuts that can lead to judgment errors, like overconfidence or being influenced too heavily by recent trades. 3️⃣ Separate Emotions from Trading: Focus on the mechanics of your trading strategy rather than the emotional highs and lows associated with the outcomes of individual trades. 👨‍💻 Developing Disciplined Trading Habits: 1️⃣ Implement a Robust Trading Plan: Clearly define your strategies for entry, exit, and risk management. Adherence to this plan should be paramount, irrespective of current market trends or emotional states. 2️⃣ Cultivate Patience: Avoid the temptation of chasing immediate profits or overtrading. Wait for the right opportunities that align with your strategy. 3️⃣ Normalize Losses: Understand that losses are an integral part of trading. Analyze them, learn from them, and refine your approach accordingly. 👨‍🔬 Strengthening Mental Resilience: 1️⃣ Engage in Mindfulness Practices: Techniques like meditation can enhance focus and emotional regulation, aiding in stress management and decision-making under pressure. 2️⃣ Maintain a Trading Journal: Documenting your trading journey helps in reflecting on both successes and setbacks, fostering continuous learning and self-improvement. 3️⃣ Leverage Mentorship and Community Support: Connect with seasoned traders for insights and advice. A supportive trading community can be invaluable. 👨‍🏫 Additional Strategies for Optimal Performance: 1️⃣ Regulate Screen Time: Limit exposure to constant market updates and commentary that might encourage emotional trading. 2️⃣ Prioritize Physical and Mental Health: A healthy lifestyle directly contributes to improved focus and decision-making in trading. 3️⃣ Utilize Simulation Tools: Practice with demo accounts to test strategies without financial risk, building confidence and skill in a controlled environment. 4 Tips To Mastering Trading Psychology Improving trading psychology is a crucial component of becoming a proficient trader. The psychological aspect of trading often determines the difference between success and failure. 1️⃣ Back Test Your Trading Strategy: ▪️ Relevance of Historical Testing: Backtesting your strategy against historical data is essential. It helps in understanding how your strategy would have performed in different market conditions. ▪️ Confidence in Strategy: Consistently backtesting and refining your strategy builds confidence, allowing you to trust your system and reduce emotional decision-making. ▪️ Identification of Weaknesses: This process helps identify potential flaws or areas for improvement in your strategy, making it more robust and effective. 2️⃣ Limit to Trade One or Two Currency Pairs: ▪️ Focus and Expertise: Specializing in one or two currency pairs allows you to gain in-depth knowledge and understanding of those markets, including their unique volatilities and correlations. ▪️ Reduced Overwhelm: Trading fewer pairs reduces the cognitive load and decision fatigue, enabling more focused and rational decision-making. ▪️ Consistency in Approach: Specialization fosters a consistent approach, essential for developing and maintaining a stable psychological state. 3️⃣ Trade in a Specific Time: ▪️ Consistent Routine: Trading at specific times can create a routine, which is beneficial for mental preparation and consistency. ▪️ Market Behavior Understanding: Different market sessions have unique characteristics. Trading in a specific window allows you to become familiar with and adapt to these patterns. ▪️ Life Balance: Setting specific trading times helps maintain a healthy balance between trading and personal life, reducing stress and burnout. 4️⃣ Adopt Your Trading Style According to Your Personality: ▪️ Self-Assessment: Understand your personality traits, risk tolerance, and emotional responses. This self-awareness is critical in choosing a trading style that suits you. ▪️ Alignment with Lifestyle: Your trading style should align with your daily routine and commitments. For instance, day trading requires more time and attention compared to swing trading. ▪️ Comfort and Sustainability: Ensure your chosen style feels comfortable. Trading in a style that aligns with your personality and life circumstances is more sustainable and less psychologically taxing.
Education
by Golden_Star1994
2
Trading AutomationI am just going to put it out there, as you know I have said time and time again in my streams. Personally, the whole automated trading concept is not for me. However, that’s not to say there are not some good strategies, tools and instruments that could work for some people. Risk tolerance, time frames, bull vs bear markets all play a role in trading. This is emphasised when the trading is automated. A few weeks back, myself and @Paul_Varcoe starting streaming about shorter timeframes and automation. We said we were working on something in the background – mostly to do with trading via prop firms. Here’s on of my streams on that topic. So, the next part was automation. Here's one of these streams: www.tradingview.com I have been lurking around a couple of services, tools and platforms – one of these is a company/product called 3Commas. A few things I found interesting. One of which is that it supports multiple cryptocurrency exchanges, allowing users to trade on various platforms using a single interface. For the Tradingview community this is a very useful option. You can even go as far as connecting your bot to one or more TradingView indicators of your choice, and the bot will automatically receive alerts and open trades accordingly. My reluctance of automation has always been, if a bot can do it – we won’t need Doctors or Police officers as they will all want to be professional traders. I have also spent some time in the money management sector and know the investment and effort some very large operators have put into the automation game. What I liked about this 3commas platform, is that it opens the door for retail to play in this world. Having access to trading bots that can execute trades automatically based on predefined strategies is one factor, it still requires users to set up custom trading strategies or choose from a marketplace of existing strategies developed by other users. So, what this means is if you have a specific trading strategy you can link directly from Tradingview and just allow it to open trades. I have taken this image as an example from their site, it’s easier than trying to write it myself. There also seems to be a lot of open-source code, literature and information readily available online. All beneficial factors if you’re planning on going down the automation route. Myself and Paul have been more conventional traders, operating in well established markets. But of course we have had our dabbles in alt coins, Bitcoin and so on. It seems to be the way the world is shifting. I have been using webhooks on Tradingview recently to trade Aussie dollar and Euro on smaller timeframes just sending an alert to one of my channels – but the ability to take out the execution stage is a new one on me. If you’re a crypto fanatic I can say this is worth a look for sure! When looking at this automation, I found another editors pick here on @TradingView So, although I know very little about the strategy or the individual trader @Bjorgum who wrote the article, it’s a great example of the type of power mixing things like 3Commas and Tradingview can yield. Throughout 2023 I have shown and shared several articles on Prop firm trading, shorter timeframes and even how to use Chat GPT to write Tradingview indicators. Link to one of them: www.tradingview.com My next step is to use chat GPT to program an indicator I can fully automate (market condition depending) to link to 3Commas using TV as the glue. Here’s an example of what I mean: I literally asked ChatGPT this question “can you write a pinescript version 4 code to enter trades based on pivot point breakouts taking profits at S2 and R2 with stop losses in the other direction at R1 and S1.” I got a reply; Before you ask - The code will probably get rejected to put out as an indicator as Pinescript will say “Pivot point indicators are readily available” but copy and paste my question above and you should get a similar result. Of course, this is only an example. Feel free to play around with your own strategies and concepts. The idea then is to take this through the papertesting and backtesting to refine a strategy that you feel comfortable with in terms of plugging into a bot and connecting to your broker. The whole concept for me is mind blowing, the fact that anyone can have a Tradingview account, use ChatGPT to build and indicator and execute a trade via your broker on a platform like 3Commas. Over the next couple of weeks I intend on digging a little deeper with these and either start with using ChatGPT to link a strategy via Tradingview into 3Commas or take a strategy or indicator off the shelf and test drive it in a stream or sequence of streams. Maybe give me some ideas, if you like? what timeframes? What instruments etc... This will be part of the educational, how to make trading automation a real thing series. Anyways! Enjoy the Holidays - Merry Christmas and a Happy New Year to you all! Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
COINBASE:BTCUSDEducation
by Mayfair_Ventures
2
Against the grain - BitcoinControversial. People don't like it when opinions don't align with their own beliefs. It's human nature, however - even when the obvious is smacking them in the face, they still want to reinforce and find support for what is inevitably wrong. I've talked before about the possibility of Government or WEF being behind Bitcoin. It would not surprise me one bit. It's an immutable ledger and all of the 3 letter agencies around the globe can't find the inventor... Secondly, people believe it to stand for freedom. Yet with the KYC and AML regulations, it takes nearly as much paperwork to own Bitcoin as it does to buy a house. (nearly) It's not like the FBI can seize it - oh wait, yes they can. Its not like China can limit the use, hmmm OK maybe. Binance will never stop people from withdrawing their own funds. Oh yeah that too. The issue is for me, is - CLEARLY there is an opportunity, even for me one of the lucky ones, been a Bitcoiner a long, long time. What does it need to thrive? well, almost the opposite of the wild west mentality seen today. Gone are the days where average Joe can own a few thousand coins. it's more likely that they will be spending around $5,000. Some of course more, a lot will have less to invest. Volatility means the wild price swings can make it profitable whilst using leverage. But to make it grow, it needs stability. Regulation will assist to attract larger operators. On that note - larger players does not always mean price goes up. A few days later, Valkyrie joins the stage. Now this is actually a good thing, these types of investors have a 15 year fund vision usually. So it doesn't mean - they join the party and the price sky rockets tomorrow. Clearly... The issue right now is we have Mooon Cloooowns attending these blockchain/crypto conferences, it just shows how immature the market is currently. These ETF's are not designed for retail to make a fortune, their there for the Elite to take more from retail. You have muppets calling for 100k on every post. Sheep following along, just as I said at the top of this article. They want to reinforce their own WRONG belief. Or maybe its sympathy, "someone else knows how I feel, we can relate"? I don't know what it is to be honest, but it's clearly not healthy or profitable. The one thing I have said time and time again, is the beauty of Bitcoin becoming institutionalised is that it makes it less volatile and easier to read and analyse. The more regulation and solid foundation it has, the more profitable for day trading it becomes. Of course, it is not what the average retailer wants to hear trading their micro account and hoping to become a millionaire in one trade. But for Bitcoin to move beyond current highs and into the 100k level or more, it needs to establish a good foothold of it's current accumulation. I saw a post yesterday saying 2025 forecast price $925,000 - Now to give that some real perspective. At it's current All Time High, it had a market cap of $1.3 Trillion What kind of market cap would you get with a price of $925,000 per coin? Do the math and help me understand where the additional several TRILLION comes from... OK so now for some logic. People like Saylor have made publicly their position. Post available here So of course, with that much weight other institutional players will know the fair value levels without the research. Price can gravitate towards these levels allowing the accumulation weighted average to stand out like a sore thumb! Back in the day, I got introduced to Bitcoin, not as a trader but as a tech investor. Needless to say, I had a nice little run. Unfortunately as a trader I wasn't able to post due to some money management non disclosures around tech investments made. So it wasn't until the obligations passed I could post on this topic publicly. The obvious signs were clear from the migration from a fun thing and toes in the water of many angels and VC's - into a more tradable asset class. Fast forward a little and the re-accumulation only highlighted the involvement of much, much larger operators. I talked about this on the @TradingView show with Stefan and how the composite man plays his part in the more established markets. During the move, the re-accumulation showed signs of the control and the future direction as well as give a clear indication as to where the cap would likely be. Of course, it played out as expected and against popular belief we were off to the moon. I shared the logic for the drop. This was the first set of signs that Bitcoin was here to stay and becoming more interesting with each passing swing. As we dropped to the target level. Yes that too. Marked up months in advance... The next move up was ugly, so - what did that mean? Well, it simply meant again, we were not likely to see 100k or 250k or some arbitrary figure plucked out of the sky by people who have no clue how to do proper analysis. CASE IN POINT. We could then anticipate another capped move up, seeking liquidity. I shared why this would be the case back in August before the November drop. The expectation was for the price to drop down 3-4 in Elliott Wave terms and rise 4-5 before dropping on that liquidity grab above the old highs. Then of course, we did just that. Some other obvious moves started to appear in the price action and again just reinforces the institutional control of the Bitcoin price. So what is the expectation, as I have said in most of my recent Tradingview streams. It's a larger scale accumulation. For the price to break above All Time Highs, it needs to garner it's position. The higher the price you expect, the longer sideways we are likely to go. (although it's not as simple as that). I get sick and tired of price predications like 100k next week or 250k EOY. Don't fall for the BS. Take your time and do your own due diligence. Anyways, over & out. Take it easy! Disclaimer This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
COINBASE:BTCUSD
by Mayfair_Ventures
15
eye see 4050 spx /^\i want to start this off by doing a quick update on my market aproach since its has been over 7 months since my last post. these ideas that i will share over time will be like a gift from god. over the coming months i will try to show proof that spx and all markets run off one cosmic time with the price being set into the equation a minimum of two swings before it happens. when this pattern is played in the market some people call it harmonics, some call it s&r, or just simple chart patterns due to various external reasons. what everybody is missing behind all the patterns is the why ? why does price make a harmonic at a certain level when did price know it wanted to make the pattern. when did price decide the time in which it will move? is price actually restrained to the time limits we put upon it? what controls price amongst all things? all these will be answered over the daily signals i will drop starting today until 7/7/23 i will share a minimum of 3 ideas a week with a 90 percent accuracy. now to explain this trade i will start from the point at which u see the 54 angle is given this level serves as the target for the upside within price this. this is to be continued until completion . as we are now two days within price pacakage at 75 we will see chaos erupt in the form of traps . look for ideas to form every every 3 days . every swing produces 2 key signs before price awakens. 1 point gives three point the last point being the tru shift in time and price. the last point is always hidden in a void of confusion. this is where the weaker hands are taken out by the flow of order. once price has gathered enough energy in the form of currency it will break from its rest in a hurry only to draw new players in. the impatient becomes food for price. the ones who observe and mark its tracks are the ones lucky enough to ride its waves. ps price swings in 5s no higher then 6
EIGHTCAP:SPX500Long
by BIGPOPPA999
master candle strategy explained🔸The concept of the Master Candle is well known in trading. There are different ways of looking at this trading strategy, but in its simplest form, a Master Candle is a candle which contains the highs and lows of at least the next four candles after it. 🔸Can be applied to forex, gold , oil , crypto, stocks and indices. 🔸simple rules to enter the trade based on the breakout of high/low. 🔸Master candle setup is confirmed once 4 or 5 candles are traded inside the range defined by master candle high and low. 🔸The Master Candle trading strategy provides clear pattern and also helps in the identification of breakout points. 🔸You should not try to trade near a Support / Resistance (SR) zone. 🔸There should be no trade against a Support / Resistance zone that is closer than the Master Candle’s height. 🔸Only take a trade when a candle breaks the Master Candle’s High or Low. 🔸It is recommended to always target the Master Candle size when exiting the trade. So, for example, if the Master Candle size is 80 pips, consider setting your profit target at 80 pips. 🔸Place your Stop-Loss order in the opposite direction of the entry at the other end of the Master Candle. So, in a long trade, the stop should be at the Master Candle’s low, while in a short trade the stop should be at the Master Candle’s high.
OANDA:XAUUSDEducation
by ProjectSyndicate
41
SNIPER TRADING SYSTEM OVERVIEWThe Sniper Trading System is set up for the Sniper to make minimum 30pips Daily in Forex. The system is built on the algorithmic movements (aka TIMES of day) that the market has the highest probability to trend✅ The systems foundation is Market Structure that we frame with two formulas: Wick Formula that gives you the structure areas and 17:1 ADR Strategy which traps price vertically within a specific time period that the algorithm moves price. Today I will break down the system in a straight forward way. Box 5PM-1AM EST (From wick to wick) Measure how many pips this zone is. This is your MORNING ZONE. Your 12AM candle is the key to finding your set up. If the 12 AM 1 Hr is RED you are looking for BULLISH plays for the day. If your 12 AM Candle is Green you are looking for the BEARISH play. Once price breaks the high or low of your MORNING ZONE you look for the set ups in confluence with your 12 AM 1 Hr Candle. After we find our set up bias we drop down to the 15min to snipe the play. We have a very tight 5 pip Threshold aka Stop Loss on the trades so this allows you quickly to know when price isn’t going in your favor to pull the trade and wait for another entry. This system trades the Macro Pivot Points so we are always in the trade at the beginning vs waiting for a pullback which often times doesn’t happen cleanly. Take profits at Extremes of the ADR aka liquidity areas (top of the wicks to the body of the candles) This play happens every single day in the market like clockwork. News will set the moves back later so it’s best to trade AFTER news hits unless you are already deep in the trade. I still suggest pulling your profits before news. This system is consistent and will put your trading in AUTOMATIC. Check out today’s set up and how it followed the system perfectly. Never over leverage. Trust your set up. Have fun! Everybody eat$ I AM Master JEDI and Sensi of #SniperGang
by Master-Jedi-Trader
1
HOW-TO: Adjust Default Parameters in MLC for Intraday TradingThe default parameters in Master/Last Candle (MLC) indicator are used for the standard timeframe 1D. Due to the difference in nature between bars of intraday timeframes and bars of day-and-above timeframes, some settings could be changed as below to make the indicator tailored to your case. • Increase default Max Volume Drop % from 25 to 30. We have seen a case in timeframe 30m that requires deeper volume drop than 25% to catch the big move. If you also find a big move that is not captured by MLC, try to adjust this measure as we do. If it is not your case, ignore this item and keeping the old default value as 25. Before After • Other parameters: Percentile % , Min Price Breakout % . Before After increasing Percentile % of Cx candles from 50 to 60 After increasing Min Price Breakout % from 20 to 25
Education
by SupersafeTrader
Trading The Forex Master Pattern - GBPUSD EOD (Part 4)Beautiful development of the Forex Master Pattern today, in a macro and micro view. 1, 2, 3, 4 - Classic master pattern funneling out action from macro origin point A, B, C , D - Classic master pattern funneling out action from micro origin point Note that D is the Phase 3 (Trend) of the latest origin point, which is also leg 5 of the macro origin point which is expanding lower at the moment giving us a multi-leg expansion E, 6 - Note here the buy side liquidity is the next high probability spot for price to go and, if it takes out the low at 3, we have a high probability of price keep going lower (if it settles below this low). If price reverses for an expansion leg higher and we get HTF rotating to green on heikin ashi, there is a high probability we will end up taking out the high at 4/C targeting that sell side liquidity.
Short
by Never_Enough_FX
2
Trading The Forex Master Pattern (Part 3)Continuing our analysis from friday: A, B, C, - Classic Forex Master Pattern funnelling out action as detailed previously D - Price failed to expand low, grab buy side liquidity and take out the C low, an indication price might reverse to take out C high E - 4H heikin ashi rotated to red and price entered a supply zone above value, this was a nice spot for a sell according to our basic strategy F - Now we wanna see price holding below the value line and respecting the downward pitchfork frequency, this will increase the odds of price moving lower to finally grab that buy side liquidity at G and perhaps resume the downtrend. The only problem is that the 4H heikin ashi rotated to green, we wanna see it rotate back to red. G - It is where we wanna see price go to complete the expand low and perhaps resume the downtrend
Short
by Never_Enough_FX
BASIC STRATEGY USING THIS METHODIn a nutshell, this is the basic strategy. First you get the directional bias from your HTF and check which cycle of the master pattern it currently is, this will enhance the success probabilities. In this example, the HTF was trending down. When the HTF got below value, then we would have checked our LTF looking for an entry opportunity when it got above value. For a long position, just invert the logic. After you become a master of the basic strategy, you can think about doing more advanced trades like trying to enter the trade while the HTF is above value. To do this more safely you use the same principle. Using this same example, let´s say that the weekly timeframe had just entered below value trending down. You would be thinking about selling the 4H if that was your trading timeframe. So if you would sell the 4H, then trying to enter a sell above value on the 5min or 15min would have higher chances of working out while the 4H was above value. TIP: Using a heikin ashi type of candle in your higher timeframe will provide a very solid directional bias.
Education
by Never_Enough_FX
1
How To Draw The Value Lines (Real Chart Example)Here you can see on a real chart how to draw the lines objectively and mechanically the correct way. I developed an indicator for metatrader which does all that for me automatically, but you don´ t need the indicator if you are trading above 5min timeframe (more free time to draw lines). This example here is a nice one as you can see that when price went above value it gave the perfect opportunity to sell as the 4H heikin ashi was red. To take this to the next level it would be advised to check in which cycle of the master pattern your HTF is. The ideal spot for entering a high probability trade is when the HTF have just went below value.
Education
by Never_Enough_FX
2
How To Draw The Value Lines (or Expansion Lines) To draw the lines is very simple. For the LTF you use a zigzag configured with: Depth:3 Backstep:1 Deviation:1 For the HTF: Depth:2 Backstep:1 Deviation:1 You use the zigzag swings to determine highs and lows. The trigger for the line is a simultaneous higher low and lower high, then you start drawing a line from the center of this range. Initially it is called a minor line and it is only confirmed as a major line if price crosses to the other high or low of the range (depends of what happened first). Also, a minor line can´t be confirmed as a major if you get a trigger for a new line after the minor line still was not confirmed. It does not mean you can´ t consider it as a major line if you see it turned out to be a good origin point (price oscillation above and below it). The minor lines are still relevant price points.
Education
by Never_Enough_FX