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Psychology

What is Holding You Back Trader?So you want to trade, but just not taking action. You’re on the computer and so close to taking a trade or opening an account with a broker. The button is right there. And yet, it feels like there’s a wall between your finger and the button. I get it. It’s a big step to take when you know you’re entering into uncharted financial waters. You know risk is involved… You know time is needed. And you know education is crucial. And yet you’re still hesitant. In this article, we’ll pinpoint what is holding you back from creating your financial freedom as a trader. REASON #1: You’re talking more than doing This is a big one. Maybe you’ve been reading trading and investing articles for years now. And yet, you keep finding excuses to not take action. 1. “I’ll start next month” 2. “I’ll wait for the market to correct before I trade” 3. “I’m stressed with work and family” Listen… Life is going to continue with new problems, stresses and issues. And this will extend your delays and increase the number of excuses you’ll make with any new hobby. You just need to start doing, and the rest will take care of itself. And you’ll find you’ll feel more accomplished and proud of the fact, you took action. REASON #2: You’re concerned of the short term Every trader I know wants their first trade and month to be profitable. I was the same. In 2003, I bought a bunch of Anglo Gold shares. I felt so much panic because I wanted it to be a winner. I didn’t think of the long term effects. Let me tell you, I don’t even remember my first winner. I’ve taken thousands of trades and I’ll tell you, the first trade is over looked and felt. When you have a proven trading strategy, you lose interest in what a few trades will do for your portfolio. You keep your eye on the long term rewards. REASON #3: You are scared of losing This is one humble game, where the market takes a little and gives back to you and then some. It’s all down to one simple method – Risk and reward. You’re in a calculations game now, where you need to lose in order to win. Embrace the losses and own them as you would with any business costs or overheads. REASON 4#: You’re waiting for the right time What does that mean? Are you waiting for enough money? You never start with a lot of money as a trader. You test, you learn and you gain experience. I guarantee you blow more money on a holiday, on petrol and at restaurants than the amount you’ll lose as a start up and humble trader. Are you waiting for the right time? There are thousands of markets that are either in uptrend, downtrends or sideways trends everyday. There is never the right time to get into trading. Why? Because it’s always the right time. REASON 5#: You’re too busy to start I’m sure this article has helped open your eyes to a new spectrum of reasons why you’re holding back. Stop talking, start doing. You do have enough money to start trading. You have more than enough time You need to lose, to win. Nobody is ever too busy to not pursue their dreams and create their freedom. Got it? So stop holding back and listening to some imaginary voice inside your head
JSE:J200Education
by Timonrosso
Traders balance between intellect and emotionsHow can traders create a balance between intellect and emotion? In trading, rationality and passion are two sides of the same coin. Rationality helps us make educated and reasonable trading decisions, but unbridled emotions may be harmful. How do traders strike a balance between these two factors? - Understand your emotions and their influence on your trading is the first step. For instance, if you experience panic when you lose, you may terminate the deal early than necessary. If you are excited about winning, you may hang onto a position longer than required. Understanding your emotions and their influence on your trade can enable you to exert greater control over them. - Create a trading strategy based on facts and data, not on your emotions. This will assist you in making more educated trading selections and avoiding emotional mistakes. Create a risk management compliance system that will assist you in minimizing losses and maximizing profits. - Practice yoga and meditation to enhance your emotional control. This can help you become calmer and more concentrated, which will allow you to make better trading judgments. - In conclusion, the equilibrium between intellect and emotion in trading is crucial for success. By understanding your emotions, adopting a sensible trading plan, and practicing strategies for emotion regulation, you may reach incredible harmony and balance, as well as make better educated trading judgments. Throughout the trading process, you must practice and continually evaluate your psychological condition. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
🧠 The Mind Of A Smart TraderTrading psychology is influenced by emotions like greed and fear, which can drive irrational behavior in markets. Greed causes excessive risk-taking and speculation, while fear causes traders to exit positions prematurely or avoid risk. Regret can also cause traders to violate discipline and make trades at peak prices, leading to losses. These emotions can be particularly prominent in bull or bear markets and can have a significant impact on market outcomes. Trading psychology is a crucial factor in determining success in trading securities. It includes aspects of an individual's character and behavior that affect their trading decisions. Discipline and risk-taking are critical components of trading psychology, as is the impact of emotions like fear, greed, hope, and regret. It can be as important as knowledge, experience, and skill in determining trading success. 🧠10 Trading mindset tips: 🔹 Stay informed: Stay updated with the latest market news, trends, and developments, as well as your preferred assets. 🔹 Create a trading plan: This should include a clear set of rules for entry, exit, and risk management. Stick to your plan. 🔹 Manage your emotions: Avoid making impulsive decisions, especially during volatile market conditions. Keep a clear head and stick to your plan. 🔹 Continuously educate yourself: Enhance your knowledge and skills by reading books, attending seminars, and practicing with demo accounts. 🔹 Diversify your portfolio: Spread your risk across different assets and markets to reduce your exposure to any one particular market. 🔹 Stay disciplined: Follow your plan and stick to your rules, even if your emotions are telling you otherwise. 🔹 Set realistic expectations: Be mindful of your limitations and don’t overreach. Accept small losses and focus on long-term success. 🔹 Stay focused: Avoid distractions and keep your mind on your trading activities. 🔹 Keep a trading journal: Record your trades, track your progress, and reflect on what you could have done differently. 🔹 Take breaks: Avoid overtrading, which can lead to burnout. Take time to recharge and come back fresh. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
8
10 Common Lies and Misconceptions About Trading 🥺🤮1. People are born traders. While it is true that certain personal characteristics make it easier to trade, no one is born a trader. One of the main themes of the Market Wizards books written by Jack Schwager is that almost none of the market wizards was successful from the start. They all worked hard at it. 2. You have to have a high IQ to trade. Just not true. In some ways, an above average IQ may be a hindrance. Trading is a human performance activity where strong intellectual abilities are unnecessary. 3. Top traders are successful because they have the "right trading personality." There is no such thing as the "right trading personality." Researches have been unable to find a strong correlation between personality type and trading success. It is important, however, to understand your personal characteristics and how they may help and hinder your trading. 4. Trading is easy. It sure looks that way, doesn't it? Just draw a few lines on the chart, watch your indicators, and follow the price bars. The truth is that trading is a difficult business to master. It involves different skill sets and abilities from what are needed in most other professions and careers. The trader must understand his or her personal strengths and limitations and develop specific skills to deal with the mental and emotional demands of trading. The later skills are the most difficult to develop and the most overlooked. 5. You must be tough, hard charging, and fearless to be successful. That's more media hype than anything else. It glorifies a strong ego, which is a detriment in trading. The most successful traders I know quietly do their research, study the charts, and patiently wait for the right moment. They strive to keep their ego out of their trading. 6. You must trade without emotions. If you are human, that's impossible. More importantly, when you understand your emotions you will realize they are assets, not liabilities. The real keys are: To be aware of how your emotions interact with and influence your trading, and To develop the skills needed to trade with them. 7. Top traders are usually right about the market. Top traders have many, many scratch and losing trades. Top traders are at the top because they exercise good risk control, limit the amount of loss from any given trade, and have developed a psychological edge that allows them to be unfazed by small losing trades. Most of their trading consists of modest profits and very small losses. When conditions are right, they step up size and let the profitable trades run. 8. Paper trading is useless - it's not a real trade without money behind it. If you aren't paper trading,you are doing yourself a disservice. You should always be paper trading your trading ideas. Why limit your education and experience by the amount of capital you have? Paper trading keeps you sharp ; you learn the conditions under which your trading ideas work best. Where else can you get such vital education at so little cost? 9. Master the technical skills and you will be successful. This is where most traders spend the vast majority of their time, but it's only part of the picture. You also have to learn important performance skills. Traders should spend as much-if not more-time learning to develop their psychological edge as they do in developing their technical trading edge. 10. Trading is stressful. It certainly can be stressful, and it certainly is stressful for many. It doesn't have to be. Successful traders have a certain mindset. They put little importance on any given trade. Their focus is on the long haul. They know that if they attend to the aspects of trading that are within their control (i.e., trade selection, entry, risk control, and trade management) the profits will take care of themselves. source: DailyFX
OANDA:XAUUSDEducation
by Hsan_BenAhmed
46
7 main mistakes of new traders List of deadly crimes committed by new traders So far, you have created a new account, purchased your first Bitcoin. You are now prepared to become a trader in cryptocurrencies. You frequently trade on an exchange where the price of the first coin you purchase increases by 10% before you sell it. Self-satisfied that you did it. Using the ingenious "Buy Low, Sell High" method, you are advancing: a Twitter account. There is already a crowd of new employees awaiting your calls. It was going so well until you committed one of the following rookie errors. 1 - Waiting Pump and Dump Observing a green candle that rockets up into the sky is one of the most beautiful sights a trader can see - if they purchased at the bottom. However, without a horse to race, envy might be overwhelming. You will experience lapsed profit syndrome and attempt to wager your entire bankroll. Occasionally it will pay off, but more often than not it will place you in an awkward situation. A quick price swing in cryptocurrency is not always indicative of a pump-and-dump scam. Positive news or a major influencer's promotion might also result in exponential growth. Before purchasing a coin, it is essential to comprehend why its value is soaring. If not, you risk failure. Many inexperienced cryptocurrency traders try with pump-and-dump organizations that guarantee rapid gains with minimal effort. Failure once or twice will be sufficient to learn the lesson and pursue more intelligent trading tactics. 2 - Buying in illiquid markets For your coin to continue increasing, someone else must want to purchase it. The issue with numerous developing altcoins and numerous tiny exchanges is that they have a dearth of orders. You can be certain that Sprouts (SPRTS) is the future of crypto, but if a sufficient number of traders disagree, you risk focusing on a currency that no one wants to purchase, or at least not at a price that you are willing to pay. There is nothing wrong with long-term investment in a coin whose fundamentals you respect. However, these "undiscovered diamonds" are prone to a lack of liquidity in the short run. Traders who have grown weary of waiting for a coin's price to rise may be compelled to sell drastically below their desired price. 3 - Set the incorrect price Raise your hand If you've ever missed a zero on a trade setup and your coins surged, set your sell order 10 times lower. This is easy to accomplish when dealing with altcoins that are priced in fractions of Bitcoin: you think you're making an order to sell 0.0000457 BTC, but you've actually placed an order to sell 0.00000457 BTC. The majority of exchanges will rise to the maximum rate. However, services like Etherdelta are not as user-friendly as others. Always double-check the buy or sell price before pressing the execute button. 4 - Transferring the incorrect coin to an exchange's wallet or use wrong chain If you sent Bitcoin Cash to a Bitcoin wallet by accident, do not expect the exchange to bail you out. However, the larger exchanges are unlikely to be of assistance. You must exercise caution before sending funds to the wallet, as errors are nearly impossible to rectify. Sending Ethereum tokens to an Ethereum exchange wallet or requesting a mining pool payout directly to an exchange wallet are other rookie errors. Avoid doing that. The greater your trading motivation, the better you will become. 5 - Revenge of trader You are unhappy because you refused to purchase a coin at the last minute, and then it flew to the moon. Or you purchased a worthless certificate - a sure loser - and it failed. Infuriated, you wager your entire fortune on the next green coin and attempt to ride this train to Profitville. In doing so, you overestimate your abilities and enter a market you have not yet explored. Where do you enter and exit the market? Why is the coin's value increasing? You are ignorant because you act based on your feelings. Revenge trading is analogous to capturing your partner in the arms of another person and then grabbing the first item you discover. Nine times out of ten, it will end in tears. The greater your ability to detach your emotions from your trade, the more successful you will become. 6 - Overactivity Too many chefs will destroy the broth, and too many traders will diminish your earnings. This is a simple trap to fall into, and every new trader does it. The day after purchasing a coin, you check to see if its value has increased by 20%. Isn't it preferable to sell and earn a profit? Not required Cut off your losses and let your winners run, as the adage goes. A basic trading approach that can deprive you of some of your greatest rewards is selling assets for the sake of profit. There is nothing more disheartening than selling a coin for a tiny profit only to discover that someone else paid 10 times as much. Additionally, excessive activity for minimal income will result in an increase in assets conserved through exchange costs. In certain ways, hyperactivity that generates tiny earnings is advantageous, but these profits will be consumed by commissions on any exchange. You comprehend the outcomes yourself. 7 - Self-confidence Intuitively, you purchase a coin and observe its value double over the next week. You repeat the procedure with a second coin and the same result occurs. You are fantastic. You are a man. You convert everything you touch into gold. You are staking your next decision on boldness, which may feel like flying to the moon. Then... one loses everything. What occurred? You are impudent, that is what. A little self-assurance is wonderful; it's what enables traders to go against the grain and make their own conclusions. Conversely, over confidence is a formula for disaster. When you disregard warning flags while feeling invincible. Eliminating these seven fatal errors does not qualify you as a professional trader; years of expertise, late hours and early mornings spent watching two monitors and creating charts are still required. Nevertheless, if you eliminate your rookie errors, you may survive long enough to become a pro. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
7 Reasons why Elite Traders Crush the CompetitionHello TradingView world, I have been trading for almost 15 years and have learned some serious lessons about trading and the markets. I have also been fortunate enough to interact with many great traders over that time that have helped me tremendously, however I still struggled for a long while and wondered why I wasn’t making the progress I desperately wanted to make. I thought just like everyone else, that if I found the perfect trading strategy, all of my problems would vanish and profits would rain down from the sky like salt bae letting salt drip down off his forearm. Well guess what happened? I ACTUALLY DID FIND IT. In fact, my analysis in the market was so damn good that in 2013 I was invited to speak on a worldwide webinar hosted by Daily-FX which was then owned by FXCM. I’d have a 50 pip stop with a 500+ pip price target and I was nailing the trades left and right, so this was the reason I was invited on. I was working at the Federal Reserve Bank of New York during this time and I ended up leaving that job to trade full time that same year. Things went smoothly for a while. I partied… A LOT. Did all kinds of reckless and stupid things with my time and money and I ultimately lost it all by 2015. I pondered for a long time about what happened and once I removed my ego and stubbornness, I figured out that what makes a trader great has nothing to do with the outside and has everything to do with the inside. This is the TRUE secret of trading success. It’s all about YOU and how YOU approach trading. There is so much more to the story but without further hesitation, based on what I have learned from other great traders and have personally learned through brutal hard lessons, this is why Elite traders crush everyone else in the market and if you begin employing these lessons in your own trading, I can guarantee that you will see a dramatic change in your results. #1 - ELITE TRADERS ARE LEAGUES ABOVE YOU IN PATIENCE Everyone gets into trading for one thing and one thing only; to make money and to make as much of it as possible. One thing that the majority of traders do is that they also want to do it in the FASTEST way possible. This is where they screw up but is it any surprise that this is the case? I mean look all around you in terms of social media (Facebook, Instagram, YouTube, etc.) it’s all over the place with people touting “Watch me turn $1,000 into $10,000 in just a few days!” … This gets views, it gets attention and it encourages other traders to continuously take on massive risks in order to achieve this. Is it possible to do? YES, because many traders (Including myself) have done it but what does it also do? It creates detrimental habits that keep you in this mindset of turning a small account into a large account quickly and then that one day comes when you take on massive risk on a trade that looks “good” but ends up going violently against you for a huge loss or COMPLETE destruction of your account. Another factor is that the majority of traders want to be in the market ALL of the time. They can’t resist staying out and staying flat during times of uncertainty or when the charts aren’t clear enough to validate putting their capital at risk. Elite traders can wait hours, days and even WEEKS before putting on another trade because they understand, their trading opportunity is not yet clear and they rather wait as long as possible in order to enter the market at the most optimal time and conditions. Think about it; do you want to be in the market on a consistent basis? Are you able to wait a few days or a few weeks before putting on a new trade? It’s a very difficult thing for many traders to do while Elite traders have mastered the game of patience to their advantage. It’s not a matter of how long is the next trade going to take to develop? Rather, I’ll take the next trade when the optimal conditions are met regardless of how long it takes. #2 - ELITE TRADERS KNOW THEIR OWN WEAKNESSES Everyone has weaknesses whether we like to admit it or not. Some traders are severely impatient, some have a problem with risk management, some have a problem with making impulsive trades and become reckless, some have a problem with over analyzing their charts or trying to look at multiple markets at the same time, etc. Most traders either try to suppress them or choose to ignore them completely and this causes many to struggle and stay frustrated. Have you ever thought to yourself, “Shit, why did I do that!?” or “Why did I get out when I should have stayed in” or “Why did I chase it! I knew I should have stayed out” … There is a weakness there that you have not learned to master or work on improving it. Even if you finally acknowledge it and try to write it down or post it on your wall by your trading desk… You STILL end up making that mistake and frustration takes over. Elite traders through trial and error have learned to master their INTERNAL trading character. They know what triggers them and have found a way to stop it in its tracks so that mistakes are kept under control. They also understand that when these weaknesses start to creep up on them, they can identify WHY it’s happening and talk themselves out of it. For example, if the market is rising and it looks like it’s going to get away from them, they understand that by chasing after it, the market could turn around and leave them with an unnecessary loss or trap them in a position that they should have not gotten into in the first place. Their attitude is “The market did not give me the optimal trading opportunity that I wanted therefore I will wait. Let the market do whatever it’s going to do, I don’t care. I only care about my optimal trading opportunities” This tie’s in with reason #1 (Patience). They will not let ANYTHING force them into trades they shouldn’t be in. #3 - ELITE TRADERS FOCUS ON ONE MARKET/PAIR/SECTOR This is not only true of trading but life in general, focusing on one thing and mastering that one thing to become great at it. There are a multitude of instruments and markets to trade and it gives us traders the freedom to choose where we’d like to put our capital to work but as many of us know, too much choice can actually be a bad thing. When it comes to the Forex market, we have many pairs we can work with and that can actually be a problem. Everyone has a watch-list of pairs that they want to trade but is that causing you more trading struggles for you or keeping you confused? Whether the answer is yes or no, why are you doing that? And the answer is most likely because you believe it presents more trading opportunities but that is not always the right way to go about things. Each pair moves and reacts differently during certain market conditions and what works well on the EUR/USD may not work on the GBP/JPY. While the EUR/USD moves at a more stable pace and a big day would be considered a 1% move, the GBP/JPY can become wildly explosive and relentless when it comes to market volatility. Elite traders know this and they stick to ONE thing and become a master at it. I personally stick to the EUR/USD and that is MORE than enough to make profitable trades on. Elite traders do not divert to other markets or other pairs to try and make more profits but they lock down and focus on that one pair and crush it. It’s not common for the majority of traders to do this because they feel that they will be missing out on other trading opportunities but are they really? Or are they just finding multiple ways to take losses? In order to trade this way, it would require the ability to stay incredibly patient but it would allow for you to stay away from multiple charts and remain disciplined while not putting your capital at risk and avoiding impulse/emotional trades. This is not common but then again… this is why Elite traders do it and the majority does not. #4 - ELITE TRADERS PREFER A LONGER TERM OUTLOOK Just look at the screenshots of charts scattered on trading forums, social media or any other discussion outlet, more times than not everyone’s looking at the 1 Minute all through the 4 Hour time frames. You’ll find a few daily charts here and there and even less Weekly+ charts. Most traders want to be in the market every day and this is why Day trading is so enticing, it gives them a reason to log in, open up their charts and look for trading opportunities to make money. That’s a Mistake. You’re probably noticing that the previous 3 reasons tie into this reason and that’s because this is just another manifestation of lack of patience or inability to focus on one thing. Short term charts give the impression that there will be more moves to get in and out and not staying in a position overnight. Yes, I get that some traders out there prefer to just get into the market and then be done with it at the end of the day but more times than not, you’ll end up making impulsive trades that creates a string of losses if you don’t have your emotions in check. Elite traders like to look at the “whole picture” and prefer looking at the daily charts and up. Since longer time frames take time to develop, this is perfectly fine for them as it gives them more time to prepare for the upcoming trade and analyze the levels, they want to take a position and take profit. Once they enter a position, they set their stop and let the market work for them. They don’t need to check their positions multiple times per day since they know the market will take its time doing what it’s going to do and therefore have time for other activities in their lives or businesses. #5 - ELITE TRADERS VIEW TRADING FROM A BUSINESS PERSPECTIVE “How much can I make per day”, “How much can I make per week” or “How much can I make per month” … This is what you’ll usually hear from the majority of traders but how many times have you heard “We’ll see how performance looks at the end of the Quarter”? I’m willing to bet, not many. There is a lot of hype about how much can be made in one day or week but trading is not about just one day, one week or one month, it’s about the long game and how results look over time. Some Elite traders even go as far as looking at profit-loss on a yearly basis but because market conditions change throughout the year, reviewing how performance looks like at the end of the quarter is preferable. There is no rush to try to make a gain at the end of the day, week or month. Spacing out P/L review allows opportunities to both develop and play out especially if the market is trending. Elite traders don’t mess around in the market either, this is not a game or hobby for them while many amateurs in the market don’t take it as seriously as you would think. They know that the market is a battlefield and the other side of the trade won’t hesitate for a Nano-second to take their money. They understand that trading should be treated with the same care as running a business and properly deploying their capital out into the market is essential in bringing back even more capital for future trading opportunities that yield larger profits. Although trading is now offered to the masses and anyone can pretty much open a brokerage account and begin to trade, there are millions of traders that are misinformed and approach the market incorrectly and unprofessionally. “But, I’m not looking to trade professionally, I just want to trade casually” sure, that is completely fine however guess who’s going to eat you alive in the markets? That’s right, the Elite traders who do take things seriously and professionally. #6 - ELITE TRADERS PROTECT THEIR CAPITAL AT ALL TIMES In the boxing world, what is one of the warnings referees issue to the fighter’s right before the fight begins? “Keep your hands up and Protect yourself at all times!” and for good reason, right? So that they do not put their hands down and get a crushing hard punch to the head that knocks them out cold. It doesn’t matter how well you trained or for how long you’ve trained because one lazy mistake can cost you the fight, in some cases brutally. If you’ve been in the trading scene for any length of time, you have read or heard it countless times “manage your risk, manage your risk, manage your risk!” but how many traders ACTUALLY do it? You’d be surprised at how many do not do it at all because it’s painful to do. Painful? How so?... Well, it requires one to make small gains over time instead of putting the pedal to the metal and use high leverage on one single trade. That’s very difficult for the majority of traders to do because that means no “Account Flips” or trying to hit a homerun trade every single time and let’s face it, everyone is trying to get “rich” quickly. Elite traders know that just one mistake of not practicing sound money management by either not using a stop loss or using too much leverage can be extremely dangerous to their account and they know that it’s just not worth it. On another note, they understand that following risk control is instilling good and strong habits for their subconscious mind and it will carry along for the rest of their careers if they just stick to that simple principle. If there’s one major reason the majority of traders fail while a small percentage of traders make money consistently, it’s a lack of risk management and account/capital protection. Before you step into the unforgiving arena (Forex) be sure to protect your account at ALL times! Keep your "Guard" up and play defense! #7 - ELITE TRADERS AVOID DISTRACTIONS AND NOISE This is a pretty interesting and controversial one. It can be difficult to ignore the distractions and noise because us traders want to be part of a group or community so that we can share ideas and forecasts along with everyone else but sometimes, you’ve got to be careful with this. You may have an idea or outlook that goes against what others think is going to happen and it could get you off track. You may have experienced this a few times where you believe the market is going to go in one direction and others share the complete opposite view which then causes you to doubt your analysis. You end up cutting the position too early for fear of being wrong and ultimately the market goes in the direction you thought it would and you’re left frustrated. Distractions can also come in the form of upcoming economic data such as the Federal Reserve coming out with Interest Rates or its chairman Jerome Powell talking about certain economic projections. Volatility spikes up and it sucks you into the hype but if you have a sound trading strategy and rules, you may have noticed that even during high volatility, the market still respects order on the charts. It just moves as a faster pace. I have personally experienced this through my years of trading, in fact a recent memory comes to mind in 2020. I was invited by an online friend to a private Meta trading group and I wanted to offer some help and insight into what I knew, so I shared a screenshot of my outlook of the EUR/USD going forward. It was a powerful chart pattern I had seen countless times on the weekly chart and the EUR/USD was trading around 1.0850. Once I shared my screenshot calling for the Euro to make a strong 1000+ pip move and trend towards 1.2000 to 1.2200, some other group member immediately called my analysis a joke and that chart patterns were garbage and useless. I was going to retaliate back but I thought to myself, this is childish, unprofessional and really unproductive, so I immediately left that group. My friend apologized and said the other guy had a chip on his shoulder because he was former banker for a massive global investment bank (I won’t say which one but I can guarantee you, everyone knows it). I appreciated the apology and left it at that. I the end, all that mattered to me was that as the months went by, the EUR/USD did in fact trend towards the exact projected price levels. That was a lesson for me to avoid detrimental opinions from others. Elite traders know about this type of noise and are sure to remove any of that from their trading. This is why many stay “undercover” and you don’t really hear about them. They stay under the radar and just do what they do and do it well. The overall lesson here is that a community should be about helping others and uplifting them, even when they’re wrong. No matter how great a trader is, he/she still deals with losses and nobody is ever correct 100% of the time. Trading is already difficult, so by encouraging and helping others become better at trading the markets, everyone improves as a whole. Conclusion There you have it, just some of the basics of what Elite traders do and what has transformed my own trading results tremendously. We all know that there are a variety of ways to approach the market but if there is one takeaway from all of this is that, Top Level traders have learned to master themselves and how they mentally approach trading. It’s actually quite simple and straight forward however it can be hard to implement in real time but that doesn’t mean that it cannot be done and transform your own trading. I wish you the best in your trading journey. I personally know it can be VERY tough but it's well worth it. Keep at it and never give up.
Education
by InternalTraderNYC
4
The 4 fears of every traderTrading in the financial markets, whether it be forex or cryptocurrency, can be a thrilling yet challenging experience. It requires a level of strategy, discipline, and risk tolerance to make informed decisions and reap profits. But, as traders, we are often faced with fears that can cloud our judgment and hinder our success in the market. To help you overcome these fears, we will delve into the four main categories that traders face: fear of being wrong, fear of losing money, fear of leaving money on the table, and fear of missing out. These fears can be crippling, but with the right understanding and approach, they can be conquered. Join us on a journey to understand these fears and how to overcome them, so you can become a confident, successful trader in the forex and cryptocurrency markets. Fear of being wrong The fear of being wrong is the most common obstacle for traders. It's only natural to want to be right all the time, but in the fast-paced and ever-changing world of trading, being wrong is an inevitable part of the process. But this fear can hold us back from making the bold and calculated decisions necessary for success. When we're too afraid of being wrong, we may avoid taking calculated risks, miss out on potential profits, or even make impulsive decisions based on emotions instead of data. But here's the thing: being wrong is a valuable opportunity to learn and grow as a trader. Every misstep is a chance to analyze what went wrong and improve our strategy for the next trade. So instead of letting the fear of being wrong hold you back, embrace it. Embrace the possibility of being wrong and use it as fuel to become a better trader. Remember, even the most successful traders make mistakes and face losses all the time. The key is to learn from those mistakes and come back stronger. Fear of losing money No one wants to watch their hard-earned capital disappear, but in the world of trading, losses are a fact of life. However, letting this fear control our decisions can be just as detrimental to our success as the fear of being wrong. If we're too afraid to lose money, we may be hesitant to take calculated risks, miss out on potential profits, or even exit positions prematurely. But here's the truth: losses are an integral part of the trading process and can be managed with a solid trading plan in place. By implementing risk management techniques, such as stop-loss orders, traders can minimize their losses and protect their capital. So instead of letting the fear of losing money paralyze you, turn it into a strength. Use it as motivation to develop a comprehensive trading plan that incorporates effective risk management strategies. Accept that losses are a natural part of trading, and use them as an opportunity to improve your strategies and refine your approach. Don't be afraid to lose money, be afraid of not taking advantage of opportunities to grow your wealth. Fear of leaving money on the table The fear of leaving money on the table is a tricky one, as it often arises when we're in a winning trade. It's tempting to hold on, hoping to squeeze out even more profits. But this can be a dangerous mindset that can lead to ignoring stop-losses and exposing ourselves to unnecessary risk. After all, you don't have a crystal ball ( and aren't an FOMC member ), so you should expect to buy the exact bottom and sell the exact top. Instead, you need to have a clear exit strategy in place and stick to it, no matter how much you feel like the trade can continue to go in your favor. By having a predetermined exit plan, we can lock in profits, manage risk, and avoid emotional decision-making. So, instead of succumbing to the fear of leaving money on the table, embrace discipline. Develop a solid exit strategy that balances the desire for profits with the need for risk management. Don't be afraid to lock in your profits, even if it feels like there's still money to be made. Trust in your strategy and stick to your plan, and you'll be in a better position to capitalize on future opportunities. Fear of missing out The fear of missing out (FOMO) is a feeling that all traders have faced at some point. It's especially prevalent in a volatile market, where prices are moving quickly, and it can be tempting to jump in without fully analyzing the situation. But succumbing to FOMO can lead to hasty decisions based on emotions, rather than logic, which can result in costly mistakes ( emotions causing mistakes...do you see a pattern? ). It's important to resist the temptation of FOMO and stick to your trading plan, even when the market is moving rapidly. By having a clear strategy in place and following it, we can avoid impulsive trades and make informed decisions that are grounded in logic and analysis. Take the time to thoroughly analyze each opportunity before making a decision. Trust in your strategy and stick to your plan, even when it feels like the market is passing you by. How to overcome our fears? For a brighter reader, it is easy to notice that these fears are omnipresent. No matter what you do or don't do during your trading day, you can't avoid these fears. Overcoming them is not easy, but it is essential for achieving success in the market. Here are a few pointers that can help you overcome these four fears and become more disciplined and consistent traders: Develop a reliable trading plan Having a well-defined trading plan can help us to manage our risks and make informed, rational decisions. A good trading plan should include our goals, risk management rules, and entry and exit strategies. By following our plan, we can stay disciplined and avoid making emotional decisions based on fear. Practice proper risk management Risk management is an essential part of trading, and it can help us to overcome our fear of losing money. By setting clear stop-loss levels and position sizes, we can minimize our losses and protect our capital. This can give us the confidence to take on appropriate levels of risk and pursue potential trading opportunities. Realize that your ego is the enemy How many times have you held a losing position past your stop loss and literally prayed for the break-even? Did anything fundamentally change about your position? No, you just didn't want to take the loss, am I right? See, even though we know that losses are part of the process it is still very hard for us to accept that any trade can go against us. And sometimes you do everything right, and still lose. Every trading system works with probabilities. Losses are normal. Let your ego go and stop trying to force a win out of every single position you take. ( Add this to your daily affirmation ritual if you must ) Stay focused on the long term It's easy to get caught up in the short-term movements of the market, but it's important to remember that trading is a long-term game. By focusing on our long-term goals it becomes easier to stay disciplined. Every losing day can get you closer to your long-term goal, as long as you sit down, analyze what happened, and learn from it. Take regular breaks Trading can be mentally and emotionally exhausting, and it's important to take regular breaks to recharge and refocus. By stepping away from the markets for a while, you can clear your mind and come back to our trading with a fresh perspective. This can help you avoid making rash decisions. Learn from your mistakes This is the big one. Realize that nobody is perfect, and everyone makes mistakes in their trading careers. It's important to learn from these mistakes and use them as opportunities for growth and improvement. By analyzing your past mistakes and adjusting your strategies accordingly, you can become better trader and overcome your fears. Consider automating your trading process Our trading platform does a fantastic job of keeping your emotions out of trading. You can set multiple take profits and stop losses, understand your risk-to-reward ratio, the trade's impact on your portfolio and much more before you even place the trade. You can backtest your strategies, trade them live automatically, and much much more. Leveraging technology in your favor can yield a tremendous difference in your trading results, as it did for our 15 thousand users. Conclusion The four main fears that traders face - fear of being wrong, fear of losing money, fear of leaving money on the table, and fear of missing out - can have a significant impact on our success in the markets. However, with the right approach and mindset, these fears can be overcome and transformed into positive drivers for our trading. By accepting that being wrong is a natural part of the trading process, managing our risks, having a clear exit strategy, and resisting the temptation of FOMO, we can overcome these fears and become more confident and successful traders. By doing so, we can capitalize on opportunities, make informed decisions, and achieve our trading goals. So embrace these fears, overcome them, and take control of your trading journey.
PEPPERSTONE:GER40Education
by CleoFinance
36
The low is probably not in for Bitcoin.This is probably not it folks... A supposed break of structure to the upside should only be considered as the beginning of an accumulation. Therefore I am anticipating a delivery lower before any real upside presents itself. I'm not considering any long positions before the low is swept..... reasoning; trader psychology Either way, BLX on the monthly chart looks good. Both retracement % and amount of bearish monthly candlesticks line up with what we've seen before. Not to mention that the bitcoin halving is creeping up ...... Can't go wrong with buying some bitcoin, even if you don't get the best fill price (for long term holdings).
Short
by sleepBTC
2
Money you can get back as a trader - Time you can't!When you're YOUNG you have time and energy but no money. when you're an ADULT you have energy and money but no time. When you're RETIRED and old you have money but less time and little energy. So, yes you can make mistakes, yes you can learn to trade, and practice for a bit. But DON'T do the following: Make BIG financial mistakes - Because that time to recoup it may be too late. Procrastinate with when to trade and why to trade - every day is an opportunity lost and an opportunity cost. Bite the bullet and do it well and risk aversely. Jump from winning strategy to winning strategy because of drawdowns. All trading strategies come with drawdowns and trading in the financial markets can be a highly profitable endeavor, but it can also be a time-consuming and stressful one. If you approach your trading with ONE strategy that suits you with a clear mind, a solid strategy, and a disciplined approach, you can maximize your chances of success. As I like to say. It is better to have 9 years of experience trading 1 strategy than 1 year of trading experience for 9 systems. It makes sense in my head. Let's focus on the power of 1 and your time will be worth the wait for when you achieve your trading success. Trade well, live free. Timon (Financial trader since 2003)
JSE:J200Education
by Timonrosso
Don't lose a part of yourself when taking a lossLosing a part of yourself with a loss is a common experience for many traders. When you're in a trade it's easy to get caught up with emotions. When it's going your way, you almost feel like you've banked a winner. When it's going against you it feels like you're a failure and have lost already. You got to work on it and stop both feelings from taking over your trading. There is financial loss but more important emotional loss. Take the financial loss as a simple cost of running a business. But NEVER get caught up with the emotional cost of failure. Rather drop your risk per trade even more, until the point of losing or gaining has no significance to your emotions. Achieve that and you'll know your risk profile and where you are right now as a trader. Work on it and it gets easier over time. Trade well, live free. Timon (Financial trader since 2003)
JSE:J200Education
by Timonrosso
1
Bitcoin and MajorityWhat is happening with the market and BTC? Most analysts claimed 12–10–9–5 thousand marks for BTC Is it possible? — Perhaps. But why is the probability of falling further complicated? The story tied with FTX, Binance (CZ) and other personalities is like an artificial “Black Swan” in order to intimidate weak hands, instill fear and horror in market participants, and buy the right people cheaper in order to subsequently sell more expensive. “When you are almost a monopolist, you are in charge of the market, not you.” Everything was about the same in 18–19 years — scam projects, small exchanges, mass liquidations and bankruptcies of projects. Selling on the loys then changed to a short-term bullish rally in half-empty order books (Fall Correction). History shows that the memory of kryptans is short, and many simply do not see that history repeats itself, just on a large scale. Got fear? Of course, well-known publications, personalities, television are already burying the crypt… Almost everywhere now there are negative headlines about problems with exchanges and the need for strict regulation. Crypto is no longer associated with profits, but with losses. As a rule, the market does not reverse at the moment when people see a comfortable and profitable entry point. A reversal occurs at a moment when no one wants to buy anymore and most in fear and horror think only about selling. Back to our global notation for the next bull market -To date, the bearish phase lasts over 375 days. In the 1st cycle, it lasted 413 days In the 2nd cycle, it lasted 357 days. Judging by the timings, the bottom is somewhere close, or already … After each phase followed, the phase of accumulation, in which just we received a correction of the fall. This is really the cycle of any market: Accumulation / Growth / Fall. This is our opinion and may not be yours. Will BTC cost 12–10–9–5 thousand, yes please, buy it at these prices too … But unfortunately, many market participants who dreamed of buying it for 40–50 thousand dollars for 10 thousand dollars will not do this, because these are weak hands, it will be even worse for them.
BITSTAMP:BTCUSD
by Crypto4light
The "So-Called" Psychology of a Market Cycle!Greetings Dear Investors and Traders, today CryptoQueens, an educational post regarding the so-called Psychology of a Market Cycle. When making investment decisions, investors have a wide variety of tools at their disposal. While these tools can form the basis of a sound investment thesis, their effectiveness is limited by one’s emotions. Allowing emotions to dictate decisions is a common mistake made by many investors, yet they may not even realize it. People experience different emotions during these market cycles ranging from fear to greed. Below we will analyze, as well as you will find attached in the chart image the different emotions experienced by investors during market cycles which overwhelms the majority of the traders: Disbelief: This phase happens after the bottom has been hit. There is a sense of disbelief among investors about the rally. They believe just like it happened in the past few months, the markets will fall again. Their fear of making another mistake causes them to miss the optimal window to re-enter the market. Optimism: During this phase, the realization dawns on most of the investors that the rally is real. Investing during this phase if stocks are chosen well can give good returns. Enthusiasm: This is the time when the majority of investors are convinced about the market rally, therefore market demand rise. They believe that now is the time to be fully invested. Some naysayers still don’t believe in the market rally and advise caution. Euphoria: This is the phase where there is irrational exuberance in the markets. Investors share a collective dopamine as they think that they are genius because they made a fortune. It is advisable to stay cautious during this phase. Overconfidence/Greed: Investors continue to increase their positions despite high volatility. If you buy during this phase, you are sure to lose money, whatever you buy. Anxiety: Fear sets in, as losses begin to mount. Investors believe that the dip is taking more time than expected. This is the the moment when people are notified with margin calls due to the recent market fall. Anxiety kicks in. Denial: The herd ignores the market signs as market demand weakens. They believe that since their investments are in great companies, they will bounce back. Panic: Herd mentality takes over and market participants rushes to sell leading to widespread selling even at losses. This is a good time to buy extremely selectively for the long term as it may be very difficult to know even for well-informed investors whether we are in the denial phase, panic phase or capitulation phase. Capitulation: Market Participants accepts their losses and completely exit the market. They are selling close to the bottom of the cycle. Agony/Anger: Steep losses take a psychological factor in many investors and they start to blame the government, or anything correlated, perceiving it as market manipulation. Depression: This is the period when investors believe that their retirement savings are gone and their financial security is affected. They even start blaming themselves for investing. However, markets inevitably starts to recover. Conclusion: As an investor, you need to recognize these signals and never lose sight of the bigger picture. It is like Warren Buffett once mentioned. Be scared when others are greedy and greedy when others are afraid. Therefore, keep an eye on the fundamentals and behavioral factors that influence the market and always remain ahead of the game. Make sure you include this in your trading plan before to take action on it. If you liked it, make sure to support with a like, follow and a comment! Best Regards, CryptoQueens.
Education
by Crypto_Queens_Official
38
😱 Fear Of Missing Out (FOMO)📉Fear Of Missing Out (FOMO) / SHORT scenario. Fear of missing out, or FOMO, is the feeling of anxiety or regret that can occur when someone believes that they have missed an opportunity to invest in a stock or crypto currency that is increasing or decreasing in value. This feeling can be triggered by seeing others making money from a particular investment, or by observing the stock or crypto's value increasing or decreasing over time and thinking that one should have invested earlier. FOMO can be dangerous to investors because it can lead to impulsive buying or selling decisions that are not based on sound investment strategies. In the above scenario we can see the effect of FOMO in play. The price action breakdown of the trendline, indicating weak support and a flip of the trend. This psychological effect can be observed without the use of indicators and by just looking at the price action. A deeper look into order flow and Open Interest could further explain the trader's behavior on this particular effect that occurs. 🔴 ENTRY is based on the first major red candle after the breakdown, trying to knife-catch the price, based on no strategy and purely emotion of missing out a potential short position with a stop loss nowhere close to a potential supply zone where the price action could re-visit for confirmation of a downtrend. 🟢 ENTRY is based AFTER the retest of the trendline, on a potential supply zone where the price action is looking for a retest at this level before confirmation of further decline of price action. Stop loss is given above the last high, above the trendline. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work , Please like, comment and follow ❤️
Education
by QuantVue
2
MACD 1D: X, XD, XDD, and P=M(XD)Andrew M. Kempi 7 January 2023 MACD 1D Methodology: X, XD (X•), XDD (X••), and P=M(XD) Determine Volume psychology and volume mass. P=Mass(Velocity), p=volume(XD), including pascal averaging. The Volume, and price value, is dependent on Velocity (XD). Velocity is dependent on Acceleration. Confirm undeviated direction and trend. Establish location: above or below directional price average. Trend symmetrically around price average. Confirm XDD (X••) acceleration. Identify the Vector utilizing XD (X•).
SP:SPXEducation
by privatepizza111
The Psychology Of A Market CycleThe psychology of a market cycle refers to the emotional and psychological states that investors and traders go through as they react to market conditions. Here is a short summary of each stage of the market cycle: 🔵 Disbelief: At this stage, market participants are skeptical about the potential for a market rally or recovery. They may be hesitant to invest or trade, as they do not believe that the market has the potential to improve. 🔵 Hope: As market conditions begin to improve, investors and traders may start to feel more hopeful about the future. They may start to see opportunities for profit and become more willing to take risks. 🔵 Belief: At this stage, market participants start to believe that the market will continue to improve. They may become more confident in their investment decisions and become more willing to hold onto their positions for longer periods of time. 🔵 Euphoria: As the market continues to rise, investors and traders may become overly optimistic and start to believe that the market will continue to rise indefinitely. This can lead to excessive risk-taking and overconfidence. 🔵 Anxiety: As market conditions start to deteriorate, investors and traders may become anxious about the potential for losses. They may start to question their investment decisions and become more hesitant to take risks. 🔵 Denial: As market conditions continue to worsen, some investors and traders may start to deny that the market is in a downturn. They may continue to hold onto their positions in the hope that the market will recover. 🔵 Panic: At this stage, market participants may become panicked about the potential for further losses. They may start to sell their positions in a rush to get out of the market. 🔵 Capitulation: As market conditions reach their lowest point, investors and traders may give up hope and sell their positions, even at a loss. This is known as capitulation. 🔵 Anger: After the market has bottomed out, some investors and traders may feel angry about their losses and the perceived market manipulation or wrongdoing that they believe caused the market crash. 🔵 Depression: After experiencing significant losses, some investors and traders may feel depressed and lose motivation to engage in further investment or trading activities. 🔵 Disbelief: As market conditions begin to improve again, some investors and traders may return to a state of disbelief and skepticism about the potential for a sustained market rally. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work , Please like, comment and follow ❤️
Education
by QuantVue
2
Every trader life cycleThe Trader's Cycle The trader's cycle is the time span between the first replenishment of the deposit and its total loss. The cycle is divided into four parts, each of which corresponds to a different condition of the trader. Every trader is in one of the stages of the trader's cycle; it is impossible to avoid the cycle by trading continuously. However, by splitting into a "cycle," you may lengthen the stages and reduce your losses. The "trader's cycle" phases: "Stability" is the initial step. The trader is in a condition of equilibrium, regulates his emotions, initiates trades only on his system entry points, does not engage in high-frequency trading, employs stop losses, monitors risk management, treats losses properly, and lives his life throughout the first phase. The second stage is known as "sudden impact." In the second phase, an incident occurs in the life of a trader that throws him off balance psychologically. A stunning incident for a trader is a large loss that wipes out the results of his efforts for an extended period of time. In general, the major causes of "shock" include neglecting risk management and not employing stop losses, as well as a series of transactions closed by stop losses in system trading in accordance with all of the trader's trading system regulations. A unexpected blow can also be caused by technical errors: a forgotten or failed order, technical issues with a broker or equipment at the worst possible time. The core of the second phase is that the trader experiences psychological trauma, which causes him to lose his psychological equilibrium and engage in illogical behavior. The third stage is referred to as "risk rise." In the third phase, the trader awakens with a desire to recover his losses, which causes him to raise the volume of positions, increase leverage, refuse to apply stop losses, depart from risk management, and average positions, which leads to irreversible repercussions. The trader deviates from another critical approach - consistent profit taking. He stops taking profits from the market, constantly desiring more, as a result of which he misses profits and awakens within himself the infamous feeling of missed profit - FOMO (The fear of missing out), which in turn feeds the trader's psychological trauma and causes him to behave aggressively in the market. The trader has a "perception filter": he begins to automatically reject any market information and signals that contradict his established abnormally high confidence in the market's future direction. The fourth stage is "collapse." The trader's position is liquidated when the market moves against him, and he is left with no money. On the one hand, the trader has lost everything; on the other hand, he feels some relief and begins to behave objectively, abandoning wishful thinking. After putting himself in order and returning to normal life, the trader begins to evaluate blunders. After dealing with the mistakes, the trader pledges himself not to repeat them and not to break from his trading strategy, but vows are broken over time, and the cycle continues. Repetition of the cycle After the "first round," most rookie traders abandon trading permanently, blaming the market and condemned "manipulators" for everything. Another, smaller group of traders has the courage to accept their mistakes and return to trading at a higher level. After a period, the cycle repeats for most merchants, and they are once again separated into two groups, with the majority of them leaving the market for good. How can you break the cycle? Every trader should embrace and realize the fact that the trader's cycle is inevitable, therefore, he should take efforts in advance to assist "soften the fall". Here are some practical suggestions. Rest and recuperation Every year, the work of a trader becomes more difficult: new patterns emerge, more and more variables must be considered, which increases the emotional load many times over, so rest and recovery are critical: the right approach to leisure time will help to avoid emotional burnout and will "reboot" you, completely clearing from thoughts, allowing you to return to your favorite work with renewed vigor. Take regular breaks from trading, vacations, and living life, because the aim of your trade is to increase the quality of your life. Does your life improve if you make a lot of money but are miserable? Look for new interests and experiment with new things. Recommendations for healing include bathing, swimming in a pool, massage, meditation, winter swimming, spending time in nature, and traveling. Lifestyle Your lifestyle, whether you like it or not, will be reflected in your trading, so don't get too caught up in trading - satisfy yourself and your loved ones by spending gains and developing yourself. Eat, travel, and live life to the fullest. This will undoubtedly boost your attitude and, as a result, the outcome. Sport influences your physical health, which in turn affects your mental health, and mental health allows you to be more productive and balanced for longer periods of time. Also, keep your mental surroundings in mind and limit your time spent on devices and news sources. Pay attention to your health, thoughts, nutrition, lifestyle, sleep, and connections with loved ones. Trading strategy The attitude to trading is the foundation that may both save you from the "trader's cycle" and push you into it. Here are a few highlights: 1. Risk assessment. Maintain strict risk management and never, ever overstate dangers. Diversify your cash in several areas to ensure that you cannot gamble too much on one trade. Divide your trading deposit, for example, into four pieces and transfer cash to separate exchanges and wallets. This strategy will have a significant psychological influence on you, so that if you lose, you will only lose a portion of the cash. Even if you let go a little when transferring cash from one account to another, your brain will remember why you split and withdrawn the funds, and your emotions will have time to settle. 2. Profit obsession. Fix locations in sections, always leaving a little bit out of the transaction. Using this profit-taking approach, you will skim the juiciest milk from winning transactions and eliminate FOMO, which will benefit your trading. 3. Taking an asset from the watchlist. Remove the asset from your watchlist and cease watching it for a time if you still did not follow the strategy of frequent profit taking and closed the position fully. Why would you do it? Assume that once you've established your successful position, the price rises by another 10-20-30%. How will you react? Most likely, you will have FOMO (fear of missing out), return to the transaction, and the price will then reverse. To avoid this, either fix positions in parts depending on the balance of the position rather than the beginning volume, or do not open the chart after closing the trade. 4. A sequence of stop losses Leave trading for a day if you close two transactions in a row on stop losses, since failing trades produce unpleasant emotions, which lead to bad judgments, and bad decisions lead to a desire to recover. It is critical to learn to track your mental condition and step away from the terminal as soon as possible. Workspace The workplace should be a quiet and pleasant setting where you can concentrate and nothing will distract you from your task. The trading system Your trading system is critical to your success. You must design it based on your trading strategy and risk tolerance. The trading system should comprise the following components: Risk administration. A collection of entrance points. A collection of indicators. Self-control techniques. Profit safeguard approach. Transferring positions to breakeven is a strategy. Various trading methods and tools are available. Make plans for profit distribution and withdrawal. A set of guidelines "What should I do if...". Trader's journal, where you will keep track of your transactions. Savings and income sources To avoid an urgent need to recoup while incurring a major loss, it is vital to save - develop an airbag for 6-12 months of a pleasant living and do not squander it. Savings will be ineffective even in the best-case scenario, but the advantages of the "airbag" are difficult to overestimate. Such accumulations will improve your psychological state since you will be more confident in the future and will not tear your hair out by launching a "transaction for the sake of a deal" and anticipating a quick payoff. It is also vital to generate "cash flows" (other sources of income) for yourself outside of trading in order to increase your passive profit. Profits and interruptions are reduced to zero. "Crashes to zero" and samsara in the shape of a "trader's cycle" are unavoidable, therefore you must plan for "rainy days" by taking action ahead of time. The finest traders can maintain equilibrium for far longer, but they also have breakdowns. Don't think of yourself as an exception. End collapses, extract winnings, and build passive income streams since the ultimate purpose of your trade is to improve the quality of your life. Keep in mind that the funds in your brokerage account do not belong to you, and anything might happen to the broker. Regular withdrawal of cash ensures a constant and comfortable quality of living, since if you lose control of yourself, you will lose just a portion of the assets, not all of them. Create bulletproof stages that will allow your capital curve to increase indefinitely. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. * Look at my ideas about interesting altcoins in the related section down below ↓ * For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
4
What is FOMO and how to avoid it? What is FOMO? FOMO - Fear of missing out or Lost Profit Syndrome - an obsessive fear of missing out on an investment opportunity. This syndrome can overtake in any everyday situation and make you remember missed chances to get rich all day: ignore the growing popularity of cryptocurrencies, not invest in bitcoin and many other short-sighted actions. To determine the presence of the syndrome of lost profits can be on several grounds: frequent check of the exchange rate of the asset in the portfolio; obsessive fear of missing some important event or news; dependence on a smartphone, discomfort in the absence of a gadget; resentment if someone is luckier or more successful. In trading and investing, the FOMO phenomenon is especially noticeable. Many investors under the influence of the syndrome make spontaneous purchases, make many mistakes and subsequently lose faith in the prospects of the market. But the good news is that even this obsessive-compulsive disorder can be cured with a few tricks ✅ Forget about the past. What once happened in the market is absolutely irrelevant. No successful investor looks at quotes in the past. He only thinks about the future. Chances never end, they always reappear. ✅ Increase your competence. Master new skills, study the experience of professionals, All this will give not only the necessary knowledge, but also confidence in the correctness of your actions. ✅ Set clear goals. You should always keep your strategy in mind and set target values when buying an asset. If the quotes reach your target, you should sell. ✅ If there are no ideas for investing - wait. If there are no assets that fit into your strategy, then the most correct decision would be to save, increasing the cash position. And wait for the right moment. It will definitely come, and you will know about it when the crowd will scream about the next funeral of the stock market. ✅ Your strategy is everything. Develop your own strategy and stick to it, improving on the way! Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. * Look at my ideas about interesting altcoins in the related section down below ↓ * For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
3
What problems can a trader face and what are the reasons behind?What problems can a trader face and what are the reasons behind this? Trading is an exciting activity, but for a beginner, there are many difficulties along the way. Today we will talk about a few of them, revealing the reasons for their occurrence! Fear of closing a position by stop loss or fear of loss. Often the reason for this lies in the trader's fear of failing and losing faith in himself. Too early exit from profitable trades. This may indicate excessive emotional involvement and dependence on the result. In this case, there is a strong anxiety, which is removed when the position is closed. Adding to a losing position (averaging). This sign may indicate the unwillingness of the trader to admit his own wrong and fear to take responsibility for the results of trading. Excessive joy from a profitable trade. This signals that a trader's self-esteem is directly related to trading results. Restriction of profits and a feeling of undeserved success. Internal belief that the trader does not deserve the money he has earned: the "impostor syndrome" that annoys many specialists. Oversize position. This is an alarm sign that warns that the trader does not fully understand the risk and does not understand the importance of good money management. ost-Trading Irritability: Emotional swings caused by anger, fear and greed. A trader attaches great importance to the results of trading, and not to the trading system. At the same time, he forgets about learning new tools and personal development. You can't afford to lose. This problem is typical for trading on borrowed funds or on family savings. From this, the trader's fear of losing becomes stronger, and the clarity of thinking becomes weaker.
BITSTAMP:BTCUSDEducation
by Crypto4light
Cognitive bias in TradingAnchor Effect This cognitive bias causes a tendency to over-trust other people's judgments. And in a situation of uncertainty, the desire to find a foothold increases, which issomeone's authoritative opinion. The anchor effect makes traders look for hints of trend changes from analysts, and in advanced cases, from astrologers (however, they are not much different from each other). And even consult with "colleagues" on the forums, breaking through all levels of thebottom. What to do? Think with your head Monte Carlo effect If two independent events occur sequentially (one after the other), a person tends toconsider them interconnected. And calculate the probability of the second eventoccurring in relation to the first What to do? Remember that the question: "Will mynext deal successful? there is only one answer: "Maybe it will, or maybe not." Atrader generally does not have the right to think in terms of individual transactions Irwin effect (valency effect) Sometimes, when we really want something, we tend tooverestimate the likelihood of a positive outcome. And vice versa - underestimate the probability of anegative. It can be said in a simpler way, without any valencies:unreasonable optimism is turned on. Traders often have this cognitive bias when making decisions. Because I really want money... What to do? Turn on defensive pessimism Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. * Look at my ideas about interesting altcoins in the related section down below ↓ * For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
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