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Psychology

FOOLS RALLY! $doge down!DOGE has had its peak! it will have a fools rally and then drop! I AGREE WITH BUY THE DIP; but buy the right dip! NO one wants expired CHIP DIP! The market cycle psychology chart tells me that this is entering to a fools rally next then a downtrend that is harsh! AFTER IT PLUMMETS to below 0.133USDT I will not be buying the dip! THE DIP IS IN THE 0.12-0.133 range . I will be gradually accumulating my position and keep in mind the coins that are tied to the trends, such as $ELON and $DC. $DC might be able to separate from this trend. BUT $ELON I don't think will run independently on its on momentum. DOGECHAIN will be interesting to see what hype is generated from releases on the chain. Its going to be a great year! 2023! Happy trading and don't get greedy or panic! *This is my personal thought and not financial advice! I am not endorsing cryptocurrency and there are risks with investing. Always do you own research! #DYOR* -Cryptonightowl
Short
by Cryptonightowl
If you lost deposit...COINBASE:BTCUSD Who is at fault? Let's start by acknowledging that we shall identify who is to blame for the irreversible. Who exactly is at fault for the money you lost? A market that is unprofitable? A market maker seeking increased compensation? A deceiver who desires to put everyone out of business? A signalman looking to overcharge for his signaled closed channel? Children who find it difficult to focus? Always a troublesome partner? No, you alone are at fault. You initiated the deal with your own two hands, which resulted in the destruction of everything. Nobody else compelled you to risk everything. Realizing this should cause you to cease blaming others for the results of your own behavior. It gets worse when you realize that your actions caused the money to be lost; it consumes you internally and prevents you from thinking clearly. You shouldn't worry, though, because life continues on. regain your composure. Errors are acceptable Each of us has the right to make errors because we are all human. Making mistakes is a necessary part of learning because otherwise, how would we know what is worthwhile and what is not? Just understand that mistakes are a necessary part of our journey and give yourself permission to make them. We learn from our failures and gain priceless experience that helps us reach higher heights. There are numerous examples of people who went completely bankrupt making a comeback among the Forbes list participants, using the priceless expertise they received as a result of their past errors to increase their earnings, accelerate their business growth, and improve as entrepreneurs. We all know all this famous success stories so the same is true with traders. How did Jesse Livermore come to be the subject of the memoir "Memoirs of a Stock Operator"? He completely lost all of his money and occasionally had to start again from nothing. He persisted and saw the setbacks as vital lessons that he could use to his advantage to eventually succeed. Work on your flaws Work diligently to correct your errors, consider your past, and determine what caused you to fail. What were you going through right when it all started? What feelings did you experience? What were you contemplating? What did they desire? You work Will you be able to make regular long-term gains with your current trading approach and mindset? Study technical analysis, system trading, money management techniques, trader psychology, and all that comes after if the answer is no. You can only succeed with system trading, restraint, and patience. Find someone whose primary source of money is trading, who is knowledgeable about the aforementioned, and trade with him if you don't have the willingness or time to do all of this and trading is your secondary source of revenue. However, when looking for someone like this, exercise extreme caution and thoroughly research his prior experiences. Are you plagued by the thought of wondering why, after earning a sizable sum for themselves, they didn't remove money from the market? Did you have any objectives or was money your main concern? Unless, of course, you are a fan of waste paper, money cannot be an end in itself; it can only be a means for achieving goals. It is not unexpected that you did not withdraw money if your aim was an illogical abstraction, such as a "abstract house," "abstract automobile," "abstract journey," and so forth. Change of direction You must express the objective clearly in order to succeed: The statement "I want to buy a good apartment" will not be effective, but the statement "I will purchase an apartment with panoramic windows in Paris, will be effective. If you don't know why you need money, trading will become for you a toy that rapidly becomes boring and destroys your life. But keep in mind that the objectives should be realistic and truly vital for you. This strategy will enable you to consistently take winnings from your trading account, set aside money for your objectives, and enhance the quality of your life. Enjoy yourself Don't go overboard a while frequently withdrawing money from a trading account. Make sure to spend at least a little money on your family and friends. You will thus be able to envision the outcome, feel inspired, and replenish your mental resources, which you can then use to make money. Put your affairs in order. You should bring yourself into balance after addressing the errors. Take care of your personal affairs, devote time to loved ones, your health, your children, pursue self-education, and relax in order to do this. Money and fresh ideas will undoubtedly come to you, and you'll discover a way out of the predicament. Life continues; it has not ended. You have a roof over your head, pleasant living conditions, food, water, good health, close friends, and many other things that you take for granted. Trust me, your life is someone's dream. Remember that many people do not have access to all of this, so be grateful for what you do have and enjoy life; everything else is just a minor annoyance. For your own benefit Due to the harsh circumstances, you will begin to see opportunities that you previously missed because of your comfortable lifestyle. However, your perspective will change totally as a result of these extreme circumstances. You now have experience, something most people do not. Your own success formula must include experience. He is the one who will keep you from making snap decisions and assist you in working through a challenging circumstance. "People become weak in good times. Poor people create poor times. People become resilient under tough times. Good times are made by strong individuals." The more challenging and challenging it is for you, the more probable it is that you will succeed if you manage. "A person wins internal victories during a tough time, and external victories during a prosperous time." Success, wealth, and acclaim will come to those who are diligently working on developing their character without giving in to hopelessness and despair. If you look around, you'll observe that most individuals behave in the exact opposite way during difficult times: Such people start to look for someone to blame for their difficulties when they become depressed, start drinking, and moan to everyone around them. This is due of their moral weakness, and they blame the government, presidents, officials, bankers, family, and friends. The victim's position entirely negates a person's advancement and ends his accomplishment. A person who is upset by fate criticizes more successful and strong people rather than making changes in his life and improving himself. ✅Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! * Look at my ideas about interesting altcoins in the related section down below ↓ * For more ideas please hit "Like" and "Follow"!
COINBASE:BTCUSDEducation
by Crypto4light
The Secret Of Emotional Control For TraderOf everything in existence, the human mind is definitely the most fascinating thing out there. It enables us to make plans, invent things, coordinate actions, analyze problems, learn from our experiences, share knowledge…. Not even mentioning how it’s able to do those things. The chair you’re probably sitting on, the roof over your head, the clothes on your body, your computer, phone—none of these things would exist but for the ingenuity of the human mind. The fact is, it gives us an enormous advantage as a species. It enables us to shape the environment around us and have them conform to our likings so that we can thrive even better. But not surprisingly, this unprecedented ability to control our environment gives us high expectations of control in other areas as well. THE ONE THING NOBODY TELLS YOU ABOUT EMOTIONAL CONTROL.. Now, in the material world, control strategies generally work well. If we don’t like something, we can usually figure out a way to avoid it, or even get rid of it altogether. -Inconvenient weather conditions? Well, you can’t get rid of that, but you can avoid them by hiding under a shelter. -A bear outside your door? You can chase it off by making loud noises, throwing spears or rocks at it; shooting it. As you see, pretty straightforward… BUT WHAT ABOUT OUR INTERNAL ENVIRONMENT? Some people don’t even suspect that there is an internal environment, to begin with. For them, the world is all about what’s on the outside. Thoughts, memories, emotions, urges, physical sensations, sometimes seem to have a life of their own. And we can’t we simply avoid or get rid of the ones we don’t like, just like we would in the outer world. A LITTLE EXPERIMENT I want you to try this: As you keep reading this paragraph, try not to think about a Yellow Elephant. Don’t think about the Color. Don’t think about how big or small the elephant is. And by all means, don’t even think about whether it’s the African type or the Asian one. Take a couple of seconds and do this… Now tell me… you couldn’t stop thinking about the elephant, could you? You certainly couldn’t stop it from appearing in your mind – that’s a thought right there. LET’S TRY SOMETHING ELSE … Recall something that happened to you. Any memory will do – let’s say a recent and particularly painful trading loss – and try to get rid of it for good. How’d you do? LAST ONE … Try not to think for at least 60 seconds. If you’ve done the experiment, you must get the point by now: thoughts and feelings are just not that easy to control. It’s not that you have absolutely no control over these things because the reality is that you do have a certain degree of control, but it’s just that you have much less control than you might think you do. Let’s face it, if those were that easy to control, wouldn’t we all just live in perpetual bliss? What’s more, wouldn’t we all be successful traders, banking money at every turn? Of course, there are a few self-help gurus who claim that it’s possible to live in such a state all the time. Such people often get really rich, their books sell by the million and they attract huge numbers of followers desperate for ‘ T H E answer’. I see that a lot in the trading world as well. Many are after T H E answer – which also has to be a quick and easy one. But that kind of answer doesn’t really work because it’s often not the right answer. My guess is that if you’re a reader of this blog, you have already gone down that path and been sadly disappointed. BUT THEN, WHY IS THIS MYTH OF EMOTIONAL CONTROL SO COMPELLING? Because the people around us seem happy. They seem to have their shit figured out. They seem to be in control of their thoughts and feelings, and of their destiny. But ‘seem’ is the keyword. The fact is that most people are not open and honest about the struggles they go through with their own thoughts and feelings. And especially not the “pro-traders” out there! They put on a brave face and keep a stiff upper lip. They’re akin to the proverbial clown with some bright face paints and chirpy antics, which we all we see, but deep down inside, they’re crying… OK, SO WHERE DOES THAT LEAVE US? So, at last, we come to the practical part of this post. Not being able to control your thoughts and emotions all the time isn’t a fatality. In fact, you can certainly reach your goals in trading and live a well balanced and perfectly happy life without exerting (or trying to exert) control over your thoughts and emotions. You’ll just need to get into the habit of practicing the Art of Non-Attachment . Let’s give it a try in a controlled setting: First, sit and comfortably and put aside a few minutes. Have some difficult and uncomfortable feelings to deal with. If you’re a Trader , I’m sure you must have that – a painful loss , something that’s currently a problem, something that worries, disturbs or stresses you. Once you’ve brought that to the forefront of your mind, focus on it and let the Uncomfortable feelings arise. At this point you must be saying ‘ What !’, ‘Is he crazy? I don’t want to feel that sh*t!’ Well, I don’t know anyone who likes to feel Discomfort . But the idea here is acceptance – being willing to feel “that sh*t” while making sure you’re just a witness and not a participator. Willingness simply means that you’re allowing it to arise as it is and not be entangled in judgments about how you don’t like it or how you’d like it to be. Why develop such Willingness ? Because throughout your life, Uncomfortable feelings will inevitably Arise. If you keep trying to avoid them, you’ll simply perpetuate the cycle of blind reactivity; you’ll create additional discomfort, and you won’t be maximizing your trading performance (and your life). By making room for your thoughts and feelings and willingly letting yourself feel them (even though you don’t want to), you’ll: -Change your relationship with them. -Discover their impersonal and impermanent nature. -Develop wise-discernment so that you can keep and entertain the ones that are helpful and let go of the ones that aren’t. In other words, The More We Turn Away From Our Demons (the harder we try not to look at them) the Bigger and Scarier they appear. Accepting Discomfort has only one purpose: to help you take your life forward in whichever direction you want . But now, enough of the talk… It’s time to practice, and I sincerely hope you will remember to put into application this simple exercise in non-attachment whenever needed... END Thank You Guys This Is Words From My Great Mentor 'Yvan'... I Hope You Enjoy This Post And Sorry For Not Uploading Like Weeks!! heck I'm Really Busy Irl And For Now I Wishyou Profitable Weeks!!! -Regard Valerus. SC: Bladerunner 2049 Drowning By GabrielGajdos Yvan
NASDAQ:AAPLEducation
by Zestiria
4
SHIB/USDT Main trend (part). Psychology in the market.The main trend (part). The timeframe is 3 days. I finished the missing part of the chart with a marker. Fractal structure. At the moment, the drain from the peak of the pampa is about -70%. From the exit of the downtrend, a sideways pattern (horizontal channel 55%) began to form. Which may become the second phase of the cup pattern (as before) in case this sideways zone is held. The base of the cup is 300%. Coin on the coin market: SHIBA INU (SHIB) Last time (2 pumps) the stick pulled in a price of about +300%, absorbed all sales and then pummeled a total of +1500%. Let me remind you, the very first pamp (1 pamp without liquidity, few people knew about the coin) was about +4000% Probably you understand that with the growth of price and liquidity of the instrument pamp significantly decreases in % ratio for obvious reasons. Orient yourself adequately, also remember the price is now even though it is holding in a channel, but it is still in significant profit. Take it into account in your trading strategy and risk management. [Trade according to the algorithms of your trading strategy, based on your experience and risk management, rather than emotional overreactions. Don't be a pixel of a controlled psycho-emotional market herd . Right now, the price from the average set price of the previous accumulation zone is about +250% (similar to how the accumulation you are running on the chart earlier was also after the plunge at a maximum of +250% after the first plunge). My past closed and public trade ideas on this coin (publications in the accumulation zone). Closed. Working in accumulation (position established due to trading in the channel). Mid-term work on SHIB/USDT Closed. First planned target on exit from accumulation. 0,00003501 SHIB/USDT Main Trend (part) Public. Fractal analysis with a DOGE clone Notice where the marker markup ends on the chart, to the right of the trading idea itself. SHIB/USDT 1 day - DOGE/USDT 1 week Fractal structures Trading is the ultimate psychology, understanding people's desires and, as a consequence, their future actions through numbers and charts without contact with the people themselves . Zone for local work now (channel formation). Timeframe 1 day. I would like to add that the accumulation zone itself, which forms a horizontal channel, can be as long as you want (as long as you need), also it is logical to assume that stops will “wave” from time to time. Also, remember that even though the coin is in a sideways trend, it is in significant profit, even now after the plunge in the secondary trend. You should not ask anyone where to buy/sell this or that crypto-asset. You should initially know for yourself under what conditions you will buy and under what conditions you will sell . And how do you look at this probability? Are you more comfortable with the first option, or something like that? Is the wedge better, or the bowl? You know, thoughts and wishes have a way of coming true, dream about it, maybe your option will come true too. But always know, the average market participant (over 90%) even knowing somehow what will happen with a high degree of probability, will want to earn a little more—will lose everything or the waiting time will “kill faith” (his dreams). After all, most market participants don't trade, they buy and “dream”. As a rule, they don't wait for their dreams to come true. It's worth noting that most buy crypto at a high price and by fiat, without their own understanding. This usually ends sadly. Such is the psychology of behavior. Bursts of human joy and depression are displayed on the chart by volatility, that is, your potential earnings. Attached beneath the idea are all my trading ideas on this miracle-yudo-monet almost from the beginning of its trading.
by SpartaBTC
19
Trading Psychology (Part 1)A philosophy I engage in when trading the markets - I am not self-employed as a trader. - The market is my boss and my trades are my employees. - I merely manage those employees. Traders often have to think fast and make quick decisions, darting in and out of positions on short notice. To accomplish this, you need a certain presence of mind. You need the discipline to stick with your own trading plans and know when to book profits and losses. Emotions simply can't get in the way. It’s NOT that winning traders formulate better trading strategies It’s NOT that winning traders are smarter It’s NOT that winning traders do better market analysis One personal characteristic that almost all winning traders share is that of self-confidence . Winning traders possess a firm, basic belief in their ability to BE winning traders.
OANDA:XAUUSDEducation
by JinDao_Tai
How you trade impacts how you feel 😀It's no secret that managing your trading psychology is the biggest challenge in your trading journey. Some say it counts for 80%+ of what's needed to be successful. I totally agree... However, there's a key factor in this for me. How you actually trade to start with! Correct trading psychology starts by realising you need a strategy. If you're guessing with no real plan or risk management surely you're going to be more stressed and overwhelmed than a trader who has a plan, has the data to support his strategy and manages his risk? So once you get your system/strategy nailed on, this in turn will help manage your fear. Greed is another factor, but this comes from your expectation. Expectations and reality need to be aligned with one another. Your expectations can come from your data and your testing. But if you've skipped this step you'll be chasing unrealistic expectations. Not just in terms of % gains, but in understanding your drawdown periods too. So in summary both are completely related. You give me a trader that's really struggling with his trading mindset and fear and within a month they won't be feeling the same way. Likewise, if give me a trader who is calm and in tune with his system and emotions, we'll quickly change this by getting him to trade randomly! No trading psychology means no trading strategy, No trading strategy means no trading psychology. These two elements are so intertwined. Thanks for looking at my idea. Darren 👍
Education
by pow_removetheguesswork
2
✍️WEEKLY QUOTE: EXECUTE DO NOT PREDICT✍️..Why would you break your money management rules by trading too large a position relative to your equity or emotional tolerance to sustain a loss, if you weren't positive that you had a sure thing? If you really believed in a random distribution between wins and losses, could you ever feel betrayed by the market? If you flipped a coin and guessed right, you wouldn't necessarily expect to be right on the next flip simply because you were right on the last. There is always a point at which the odds of success are greatly diminished in relation to the profit potential. At that point, it's not worth spending any more money to find out if the trade is going to work. If the market reaches that point, I know without any doubt, hesitation, or internal conflict that I will exit the trade. The loss doesn't create any emotional damage, because I don't interpret the experience negatively. To me, losses are simply the cost of doing business or the amount of money I need to spend to make myself available for the winning trades. If, on the other hand, the trade turns out to be a winner, in most cases I know for sure at what point I am going to take my profits. (If I don't know for sure, I certainly have a very good idea.) The best traders are in the "now moment" because there's no stress. There's no stress because there's nothing at risk other than the amount of money they are willing to spend on a trade. They are not trying to be right or trying to avoid being wrong; neither are they trying to prove anything. If and when the market tells them that their edges aren't working or that it's time to take profits, their minds do nothing to block this information. They completely accept what the market is offering them, and they wait for the next edge. As traders, we can't afford to indulge ourselves in any form of "I know what to expect from the market." We can "know" exactly what an edge looks, sounds, or feels like, and we can "know" exactly how much we need to risk to find out if that edge is going to work. We can "know" that we have a specific plan as to how we are going to take profits if a trade works. But that's it! If what we think we know starts expanding to what the market is going to do, we're in trouble. And all that's required to put us into a negatively charged, "I know what to expect from the market" state of mind is for any belief, memory, or attitude to cause us to interpret the up and down tics or any market information as anything but an opportunity to do something on our own behalf.
BITSTAMP:BTCUSD
by Yelli_trades
28
The Most Important Rule In Trading Psychology Trading psychology is a huge concept and it can be tricky. Many of us feel the basic fears but most of the time we just push them away and find some excuse to avoid the pain. So after i started to analyse my thinking trought trading i found out the biggest reason to my losing trades. Everytime before a losing trade I think I know how the trade is going to play. For example here I EXPECT that the bullish trend is going to continue thats why i took long on this base breakout. I have some entry rules to avoid fakeouts and to patient but when i EXPECTED it was going long i took my position too early without waiting my confirmation. Theres this one quote that might be familiar with you. "Dont predict the markets just react to it"
CME_MINI:ES1!
by Patrickthe_trader
4
FOMO, What is FOMO? Bitcoin exampleFOMO, What is FOMO? Fear of missing out (FOMO) is the feeling of apprehension that one is either not in the know or missing out on information, events, experiences, or life decisions that could make one's life better. FOMO is also associated with a fear of regret, which may lead to concerns that one might miss an opportunity for social interaction, a novel experience, a memorable event, or a profitable investment. It is characterized by a desire to stay continually connected with what others are doing, and can be described as the fear that deciding not to participate is the wrong choice. FOMO could result from not knowing about a conversation, missing a TV show, not attending a wedding or party, or hearing that others have discovered a new restaurant. FOMO in recent years has been attributed to a number of negative psychological and behavioral symptoms. - WIKIPEDIA source: en.wikipedia.org FOMO is something every trader must guard against. It is necessary to control emotions and not be taken advantage of by them.
INDEX:BTCUSDEducation
by InvestMate
2
Taming The Bear 🐻 : Managing Market Declines 📛Markets have been a bit volatile over the past few weeks, and the future is uncertain. For many investors, these moves can be troubling because it’s been many years since we’ve had a substantial decline–whether we do or do not from the current point (and, for the record, I think it’s much more like the market surprises us with new highs sooner than anyone would think possible), we need to spend some time thinking about how to manage our portfolios and manage ourselves in a market decline. First, watch YOUR LANGUAGE •Labels are meaningless: Correction, pullback, —just words •Listen to the terms people use: fake, rigged, propped up, short covering rally. The words we use matter because they carry emotional meaning. UNDERSTAND MARKET PSYCHOLOGY •Market moves are mostly emotional. If you don’t understand that, you’re doomed to be at the mercy of the market. •The news doesn’t matter (for prediction.) You need a plan for how you read the news! •Market movements arise from competitive action of traders driven by both reason and emotion. This is why the market creates such emotional reactions in traders and investors. •The “permabears” are interesting (and dangerous). •Learn to monitor and understand your own emotions and reactions. UNDERSTAND THE REALITY OF THE MARKET •Markets are mostly unpredictable. No one knows what is going to happen in the future with any degree of reliability. •Best guide is statistics, but need to understand what this means: ~On average, stocks go up over long time periods. ~Hard to short stocks. ~Strange things happen on shorter time spans. ~What is predictable in the future is fuzzy and uncertain, and deviations can be large. •Most of the things people talk about follow the market, so they can’t be used to predict the market! ~The market is the leading indicator. (Dow) WHAT TO DO? •The biggest mistake investors make is selling into declines. ~How to avoid? Don’t do it. ~ Best plans are fading (going against) moves in stocks. If you implement this one rule, you’ll be ahead of the game. •Always use limit orders. Always. Always. •Buy at steep discounts, planning to hold for multiple years. ~Be a predator ~Buy “stupid” prices for things you are reasonably sure aren’t going out of business/away •Be your own manager. ~Break destructive patterns ~Stop mistakes before you make them CONSIDER SHORTING Shorting is not evil or (that) complicated, but this is a topic for another day . Listen To 'After Dark - MrKitty' Such A Nice Music in Time like this.....(this music is overrated lol) and Wishyou Profita- Strong In This Weeks.!! Sc: AdamHGrimes Podcast
SP:SPXEducation
by Zestiria
7
The Truth About LeverageIntro Trading with leverage simply means borrowing money to put on a trade. Leverage is one of the many tools available for traders who seek to generate higher gains on their capital. Brokers have strict rules that govern the use of leverage, but this article is not aimed at teaching you the complexities of borrowing from your broker. Instead, the aim herein is to teach aspiring traders when using leverage is appropriate. The Dangers of Leverage For traders who do not have excellent risk management, leverage is a highly dangerous tool that can lead to outsized losses. While brokers will only allow you to draw down a certain amount before you receive a margin call—a demand from the broker to add more capital or liquidate positions to increase free capital—such losses can still devastate most traders. Furthermore, many online influencers present unrealistic results by using extremely high amounts of leverage and then showcasing these results as easily obtainable for the average person, often without presenting the potential dangers of trying to mirror their exploits. The Complexities of Leverage The benefits of using leverage seem obvious. If you can borrow money for a trade you can potentially earn much higher percentages on your capital. If you have a $25,000 account and can borrow an additional $25,000 for a trade, you can conceivably earn twice as much profit on each trade. But let’s pump the brakes for a second. If a broker allows you to double (or more) your capital for a trade, does that mean it’s a good idea? After all, if you can double your gains, you can certainly double your losses. If a trader is using twice as much capital without thinking about how much they are risking the situation can get out of hand quickly. If a trader seeks to risk $500 on a particular trade, but they don’t properly calculate their position size based on the total leveraged capital, the trader can lose $1,000 instead of $500 with the same stop loss location. To make matters worse, the $1,000 loss is a much bigger blow to their $25,000 trading account than to a $50,000 account. The trader’s account is now $24,000, meaning they will only have access to $48,000 for their next trade. If this same process occurs a few times in a row it becomes much harder to gain back the lost capital. When To Use Leverage Trading with huge amounts of leverage, say 50x or more, and attempting to hit home run trades will almost always result in a devastating loss for new and struggling traders. For the average technical retail trader, leverage should only be used in a particular circumstance, and when done correctly, it can certainly help the trader rapidly increase their capital. When you have proper risk management and use a predefined risk on each trade, such as risking 2% of your account, leverage can play an important role. For instance, if your trading methodology places a stop loss in close proximity to your entry it’s very possible that your account capital cannot purchase enough shares to risk the desired amount. To illustrate this concept, let’s look at a basic example: Say you have a $25,000 trading account You risk 2% of your account on each trade for a dollar risk of $500 You take a trade where the stop loss is $2 below your entry (Risk per share) and the stock is $195 per share To risk the desired $500 you need to purchase 250 shares (Dollar risk / Risk per share) BUT... 250 shares would cost you $48,750, an amount that clearly exceeds your account size! This means you cannot afford to risk $500 on the trade. Without leverage you could only purchase a grand total of 128 shares. This is the only time it is appropriate to go all in on a trade—when you are able to go all in and still maintain a controlled risk parameter. Unfortunately, when you can’t afford to risk your desired amount, your entire profit taking routine is thrown out of whack. Let’s assume your profit taking regime states that you sell when you’ve gained twice your risk. Normally, you would sell the position when you are up $4 per share (twice the risk per share). Yet, because you could only afford to purchase 128 shares (not the required 250), a $4 gain per share will only produce a profit of $512—an amount that only gives you a 1:1 risk to reward ratio on this trade. In order to achieve your 2:1 risk to reward ratio you would have to gain $7.80 per share—nearly double the profit target. It’s by no means a guarantee that the trade will hit your increased profit target, and if you sell before this point you are altering your usual risk to reward scheme. Changing your profit taking regime or your risk to reward plan has a negative effect on your bottom line when looked at over a large sample size of trades. Leverage solves this problem. If you were able to use 2x leverage, you could suddenly afford the required 250 shares, and you could keep your usual profit taking routine intact. In short, leverage is a tool that allows you to maintain a consistent risk per trade even when your stop loss is so close to your entry that you cannot afford the required amount of shares. Special Considerations Keep in mind, leverage can still cause you to lose more than you are comfortable with when trading stocks. If you’re using twice the value of your account and you get caught in a gap down where price skips your stop loss location you can take an extra large loss. This is an important thing to consider, and is one reason some people only use leverage when they trade large ETFs such as QQQ, or when they trade a market that trades 23 hours per day, such as futures. These ETFs do not experience extra large gap downs because they are less volatile, and futures hardly have any gaps. Gaps on big diversified ETFs are almost always easier to recover from than a huge gap down on some other stock. For example, say you’re in a 2x leveraged position attempting to risk 2% of your account, but you get caught in a gap down on QQQ when price opens 1% below your stop loss level. In this case, you would lose 4% of your account. While this is certainly not ideal, it is completely possible to recover from this larger than expected loss. If you get caught in a 20% gap down on NFLX or a 10% gap down on TSLA while using 2x leverage your account will be devastated. For this reason, we only consider using leverage on large diversified ETFs or futures, even when we are using the methods covered in this article. In the data section below this post you can observe what a small amount of leverage (2x) can achieve. Without this small boost in capital, the gains are 69%, and while nothing to scoff at, the 2x leverage makes all the difference. These additional gains use the exact same risk parameter and we did not expose ourselves to any additional or undue risk.
NASDAQ:QQQEducation
by Level8Trading
EUR/JPY FINAL TP HIT!Trade Plan 1. Price was trending down so i wait for a break of my key level 2. Price broke below my Key level (1.425) 3. I placed a Fib tool from the last high to the low as we are trending down. 4. I wanted a second layer of confluence which was a fib level, the level had to line up with my Key level (1.425) before my trade idea is valid 5. Price retraced to 61.8 fib level and rejected so i entered the trade. 6. It took a couple of hours for my trade to hit tp.
Short
by Damianagbodza
1
Trading Is A Game of NumbersIntro Most retail traders fall into the category of technical traders—we use technical analysis to identify market patterns and hope to profit from the outcome. As a technical trader, most individuals over emphasize the importance of patterns, and this often results in an endless search for a strategy that has the highest possible win rate. While this seems like a common sense approach, there is no such thing as a trading methodology that always wins. Attempts to seek the “perfect” strategy causes most traders to overlook the true source of success. The Game The Cambridge English Dictionary defines a “numbers game” as: “A situation in which the most important factor is how many of a particular thing there are” In trading, the game is: How many trades you win and lose How much you gain when you win, and how much you sacrifice when you lose Despite the elegant simplicity, new and struggling traders are not able to think this way. Why do so many traders struggle with the concept of a numbers game? I believe it’s because traders view the market as a predictable and stable environment that should respond to various forms of analysis in a consistent way. Therefore, anytime the market does not behave the way a trader anticipates it should, the trader is forced to conclude they are doing something wrong. If the trader happens to put on three or four losers in a row, they will likely abandon their entire approach and start from scratch. Such behavior seems logical. After all, if a trader loses four times in a row there must be something wrong with their approach, right? For those who are trading randomly with no real game plan, consecutive losses can certainly indicate a poor methodology. However, if the trader is using a full fledged out strategy that has produced historical gains on the ticker in question, it’s just as likely that they’ve been caught in the randomness and volatility of the market. If the trader is using a controlled risk parameter, like risking 1% of their account on each trade, 4 consecutive losses is only a drawdown of 4%. With proper risk and profit management, it should only take 2 consecutive winners to pull back those losses. In fact, I have personally experienced 4 losses in a row, followed by 4 winners in a row using identical trading variables. Had I changed a single variable to hypothetically avoid 3 of the 4 losses, I would have also missed 3 of the winners. Let’s illustrate this example with real numbers. My risk was a maximum of 2% of my trading account, but my strategy defines moments when to exit early to minimize losses. My first target was 1.5 times my risk, and my second target was a trailer so I could ride out potential winners to the maximum extent. 4 consecutive losses produced a drawdown of about 7% 4 consecutive winners produced a gain of 26% Total gain of about 19% If you go to the data window below this post, and click on the List of Trades tab, you can see for yourself how this looks. In addition, the performance summary tab shows you that my average losing trade was about $400, and my average winning trade was $957. Furthermore, the largest winning trade was over $2400 because I used a trailing stop loss. Had I stopped trading this strategy, or began altering my variables, I would not have experienced the winning trades. While most people focus on avoiding losses, they fail to realize that hindcasting (using hindsight to adjust your strategy) can result in missing many winning trades as well. It’s a delicate balance between winners and losers. Remember, trading is a numbers game, and to win a game of numbers, you must think over a large sample size.
OANDA:NAS100USDEducation
by Level8Trading
Successful traders think like chess playersEvery day I get many questions from traders and more than half of them are: "What will X asset do today, will it rise or fall" or "Do you think X asset will reach Y price?" With very few exceptions, I say "I don't know". Surely my interlocutor will think that I don't want to tell him/her or that I'm an idiot. In fact, the correct answer is another: "I don't care" And now, dear reader, you will think not that I am an idiot, but a complete one. But bear with me a little more and let me explain using a real trading example on EurUsd Let's say we consider taking a trade on this pair so, we ask ourselves what do we know about it? 1. Fundamentally the USD is favored 2. The trend is down for more than a year. So, we want to trade in the direction of the trend and sell this pair Looking closely at the chart we see that EurUsd is contained in a downwards channel and recently found support in the 0.99 zone. Last week, the pair corrected and reached a high at 1.0150 and reversed exactly from the channel's resistance, leaving a nice and strong bearish engulfing on our daily chart. Going further with our judgment, where do we want to sell this pair? Now, considering my approach, I see a good place to sell in the 1.0030-1.0050 zone. So we set a sell limit order in that zone (Remember, professional traders use pending orders) We also consider at this moment the point where our bearish outlook is negated. We get 1.0150 for our stop loss. Now, using again my personal trade, let's say we set the selling order at 1.0030, with a stop loss at 1.0150 we have a potential loss of 120 pips. We know that every pip move on EurUsd represents 1usd for 0.01 volume, so 12usd potential loss on 0.01 trade for our trade. Now, let's consider volumes. What potential loss are we "comfortable" with? For the sake of example let's say 120 USD, so a 0.1 volume. Now let’s see where we can take profit. 0.97 zone is the falling channel's support, so there. Looking at such a trade we have 120 pips or 120 USD potential loss with 330 pips or 330 potential profit. This gives us a close to 1:3 risk-reward ratio, a very good one. And now, maintaining the analogy from the title is the market’s “move” turn And the market can do only 2 things at this point: fill our pending order or not. Considering that I don't hold pending orders after NY's close, if the market doesn't reach my level by then, I will remove the order, and tomorrow I will start over again by analyzing the market. The second is to trigger our limit order as is also the case for my trade, and we are in a running trade now. Now, with a trade running is again the market's move. So, what are the possible scenarios? 1. The market rises and hits our SL. Although an undesirable scenario, we knew from the start that it’s a possibility and like every trade, this also carries a risk. We considered it and assumed it from the start and didn't trade more than we could afford to lose in a trade. So, we take it like a stoic and move on to the next trade and market analysis 2. The lovely scenario in which EurUsd breaks 0.99 support and falls to our target. So, our reasoning was correct and we now have a trade that brought 330usd in our pocket, but more importantly we traded disciplined with a good R: R 3. The market falls below 0.99 but reverses. Now we can also consider some action - Move SL in BE and let the trade run - Close half to get some money off the table and move SL into BE - Close all trade In conclusion: As you can see, you don't need to be Gary Kasparov to be a good trader, the market's "moves” being in fact just a few. All you need to do is to be aware of these moves and have a plan for each of them. This way you will not end up wondering every minute "where will EurUsd go, it will rise, it will fall", you will not trade emotionally or recklessly. As Benjamin Franklin once said: "Those who failed to plan, plan to fail", but it is not your case, because, as a good trader you always trade with a plan and know from the beginning all that the market can do. Best regards! Mihai Iacob
Education
by Mihai_Iacob
17
EDUCATION WHAT IS DRAWDOWN | 3 Types Of Drawdown ExplainedHey traders , is it drawdown . The account drawdown is the highest observed loss from the highest value of the deposit to the lowest value of the deposit at a certain period of time . Imagine you started to trade with 10,000 $ account . At the end of the year , your account size reached 15,000 $ . 1 However , at some point through the year the deposit value dropped to 6,000 $ . It was the absolute minimum for the one - year period . At some point , your net loss was -4,000 $ or 40 % of your account balance . The account drawdown is 40 % . ! Knowing the account drawdown is very important for the risk assessment of the trading strategy . Usually , 50 % and bigger drawdown signifies an extremely high risk . There are 3 types of drawdown to know Current drawdown - a temporary drawdown associated with the negative total value of opened trading position ( s ) at present . Once you start trading with 10,000 $ deposit , you open several trading positions . Being opened , with the constant price movements , your potential gains fluctuates from positive to negative . For examples , with 3 active trades : EURUSD ( -500 $ at present ) ; GBPUSD ( + 200 $ at present ) ; GOLD ( -100 $ at present ) your current account drawdown is -400 $ or 4 % of your deposit . Fixed drawdown - the negative value of the closed trading position ( s ) at present for a certain period of time . While some of your trades remain active , some are already closed . Imagine the same deposit - 10,000 $ . On Monday you opened 6 trades , 2 still remain active and 4 are already closed . Your total loss from your closed trades is -500 $ . Your fixed Monday's drawdown is 5 % . Maximum Drawdown - the maximum observed loss from
CRYPTOCAP:TOTALEducation
by dr_heidary
Understanding Yourself In Trading 🌼A Short Post about Psychology. Some people dismiss this area but in my opinion it is a huge determining factor as to whether someone will make it or crash and burn as a trader. In meeting many new traders I find that most questions that they pose revolve around trading systems and how to make the most money from the market. Rarely am I asked questions related to the mentality and mind of a trader which we all soon discover in our trading journey is a major facet that will determine if we will be successful or not. In this post I wanted to illustrate the importance of trading psychology and understanding your own mental parameters by using the experiences of 3 different traders that I met. THE FIRST TRADER The First Trader I ever met was veteran bank trader who had little formal education, was divorced, drank too much and enjoyed drugs. I was shocked as to how someone with excessive habits like this could have had such a long trading career. It was not too long into my trading journey that I discovered that this type of individual was common place on the trading floor. I spent much time with this trader to try to pick up any useful tips or what trading system he used. I noticed that he placed very little weight on technical analysis (walk onto the FX trading floor of any bank and ask them what they think of the RSI indicator and the stochastics - most won't have a clue what you are talking about and the rest will probably say something obscene!). He traded more based upon ' gut instinct ' of the market that was developed over considerable time. His key to success was learning over time price behaviour (price action). In addition he told me that he never trades when he has a hangover, is high or had a recent arguement with his ex-wife !! How true it is that events taking place in our lives outside of our trading can have a major impact upon our trading. How many traders have traded whilst angry at the market and then make a trade to try to get one back only to further their losses. How many people have traded whilst convinced that their broker is out to get them only to make more bad trading decisions. How many have traded at times when their life is undergoing major changes only to lose the necessary concentration and confidence that it takes to be successful. THE SECOND TRADER Another trader that I know told me that he went to a seminar about swing trading and came back from the seminar fired up that he was going to change his method to swing trading. Convinced that this was the path to greater profits he began to research various swing trading systems until he finally found one that he was going to adopt. After failing miserably and having to go back to day trading that had been working for him he told me why he had failed. He said that he would spend time researching a possible trade and then would execute with the various stop loss/ take profit parameters in place. He said that he found himself lying awake at night wondering what the market was doing and would get out of bed and check on his trade. He said that he also would execute a trade and then panic when the trade went against him because he could not wait for the big swing that he was expecting. Finally he concluded that this style of trading just was not good for his personality and went back and resumed his day trading style and was able to sleep at night again without worrying what was happening in the Asian session! This reminds me of the old adage ' if it aint broke then don't fix it '. How often are traders enticed away from models that have been working for them in favor of the latest or most fashionable indicator. If your trading model is working and making you money then keep doing it. Secondly it is important that your trading method works within the parameters of your own mentality. Whilst you can work on changing your mentality it may be better to understand yourself and adapt a style or method around yourself as opposed to trying to adopt someone elses mentality. THE THIRD TRADER The Last Trader that I met is one that I met recently. This trader told me that whilst he has had some success this was somewhat diluted and in some cases replaced by his losses. His money management strategy was reasonable but it became apparent to me the more we chatted was that he was lacking in a key area that is essential if one is to become a successful trader - CONFIDENCE . Every time his trade was up 10 pips he would exit the trade being afraid that the trade would turn against him and every time the trade was down 5 pips he would exit afraid that it would get worse. This is a common obstacle in trading because no one can say with 100% accuracy where the market is going. If they could they would have all the money in the world (if you have Accuracy 100% Congratulations). Lack of confidence will destroy you as a trader. Confidence needs to be developed over time and in trading it does not come over night but it can be developed as we understand the market better. One way to boost your confidence level is to thoroughly research your trading model - know it inside and out and especially know how it responds around the vulnerable areas because all trading models have an achilles heel and it is how you handle those points which is vital. FINAL WORDS Well there it is folks just a few things that I have picked up along the way in the wonderful world of trading. If this business was easy everyone would be doing it but over time and with the right approach and mentality success (whatever you define it to be) can be achieved. Wish you all the best in becoming the best trader YOU can be. Enjoy Your Weekend 😸😸 -Monaco SOURCE : Monaco 2006 FF PngAAA
AMEX:SPYEducation
by Zestiria
16
EthDespite guessing the trajectory for Ethereum over the last few weeks quite successfully , my trading profits have been " okay , " but not up to par with what I would accept as " worthwhile . " I even opened a short two days ago at support but got stopped out , instead of following my plan and opening a long . Why is that ? . After all , much of my analysis up until this point has been a psychosocial exploration of collective human behavior and psychology . But it is hard to produce such material without experiencing the emotions and the second - guessing , and to some extent building more self - awareness . This post will hopefully help readers discover for themselves what works . In the end , it doesn't seem to be about predicting , but managing one's own behavior . Here is the ETH / USD chart zoomed in on the 4H timeframe Looking at the above , it seems like it could either fail at the $ 1700 resistance again , or head back up towards $ 2k in time for the " merge . " So again , it appears to be a guessing game . If I were still following this plan , I would actually attempt to scale into a short here , since the market seems to be overwhelmingly biased to the long side . Then , I would probably close that short quickly as soon as I see profit , since I do think price can still continue higher . you'll see I was able to get good entries consistently at resistance and support . But where could my performance have been better ? CLOSING . I noticed that when I would see my trades well in profit , I had a tendency to think , " Well , what if this time the range fails and it breaks support ? " In the 1400's , I felt that price could just sink lower to sub - $ 1000 , so why would I close there when I got such a good entry ? In simple The solution , if I were to continue day trading is quite clear : Always close in profit , and especially if price reaches a pre - determined target level . There is a reason traders use TA , and that is to create goalposts and manage behavior ( not to predict ) . It doesn't matter how much the profit is . There is always another trade to be made , and it's better to build a habit of building your account up slowly , rather than trying to triple or quadruple it in a week . Granted , I ended up doubling the account overall , which still far outstrips the actual market performance since I began this day trading spree when ETH was $ 1800 + . However , there was a moment when my account was nearly 4x yet I did not close my positions . Ultimately , this proves that self - control and discipline are absolutely necessary . Bad day trading is way more common than " good " day trading . I'm an okay day trader , but it ultimately doesn't appear to be worth the time or stress . Instead , I like to look at broader economic cycles , as that tends to be where the greatest wealth is made . It was much easier for me to sell my crypto for life - changing money after waiting a few years than to sell short - term ETH positions for comparatively small profit . Maybe this means I should simply day trade with a larger amount . Dr. Amir hossein heidary Academy grs
by dr_heidary
1
📖 STEP 5 to MASTER TRADING: Create a Checklist 📖 🟩 Checklist is the necessary and essential part of your trading plan 🟩 If you already have a trading plan - that’s really great. Now it’s time to take one step further and create a checklist. You will refer to it before each and every trade, and you’ll enter only if 100% of the checklist is present. You can have different kinds of trading plan, it can have 5 or 50 pages - and it will describe your overall approach. Unfortunately, when it comes to executing your edge in the market, it’s very easy to bend your rules “just a little bit”, and all of a sudden you find yourself taking trade that is only a distant reminder of your actual trading setup. Most traders will damage their account not because their strategy is bad but because they start to take random set up outside of their trading edge. Blowing the account usually doesn’t take more than several hours of emotional trading. So that’s why it’s essential to have a short and clear checklist, usually up to 10 sentences usually that describes, point by point, what your trade entry looks like. You can even check every point before entering a trade (I do it). Of course, with time you’ll perfectly remember that checklist, but it’s also important to honestly follow it without checking every time, and the rule-following skill itself is a separate topic. 🟩 You're trading randomly if you don't have a checklist 🟩 Think about it. How many traders are constantly looking for “something else”, one more strategy. Instead of grinding deep into some specific concept, pattern or trading system, they will run to the next one with the first normal losses. They are running on the surfice for years instead of going deep to the core of trading - which, in my opinion, is the perfection of one strategy. Sometimes they even find what they like and what starts to show some kind of results. But then some time passes, and after any kind of emotional stress (would it be euphoria after a winner or fear and anger after a loser), he can start to deviate from his rules. A beginner can be so emotional that he can enter random trades, one after another, in the course of a few hours, destroying a big part of his account. There are a lot of other issues behind such inefficient behavior, however, a checklist is one of the first steps to handling it. Because if you don’t truly know what you’re looking for at the market, you’ll take the first trade you’ll find. 🟩 "Right or wrong" mentality is a fundamental flaw 🟩 You’re only right when you’re following your rules, and you’re only wrong when you take random setups. Again: even if you have a loser but you followed your setup - you're right, and even if you have crazy profit but it was a random trade - you're wrong, because this approach is not stable long-term. Yes, traders do predict the price movements in a way, but only as a side effect of following their rules and executing their system. A trader will not be fixed on his predictions, and because he drew a box or a line, he will not expect the market to obey his colored drawings. A trader’s job is to take a setup based on his experience and testing, and he should let go of the expectations and his trade, managing on the way of course. This is a very deep question, in my opinion, and deserves a separate post later. That’s why next time when you’ll see someone asking: “Should I buy or sell sir?”, you can surely tell the person is in the very beginning of his journey. 🟩 How to create a checklist? 🟩 Take a moment and describe in the short form how does your entry look like. What are your rules for Structure, Zones of interest, what is your entry confirmation, and what is your risk and management? I like to actually checkmark every point before each of my trades, so I’m sure I’m following my plan. Here’s an example of what my checklist looks like: 🎁Bonus for everyone still reading :) If you’re struggling with any discipline issues, ask yourself a question: “If I would receive a fully funded 100k account, for free, would I start to follow my rules and would I be more disciplined than I am now, and would I start “trading the right way” at last?” Try to be honest with yourself. It may seem strange, but many novice traders think that something should happen before they will “really stick to their plan”. It could be “just one more good winner”, or “if only I had bigger capital”, or “when I finish this yet one more educational course’’ - and AFTER that I’ll do what I know I should be doing. So, if your answer to that question is yes, then this is a clear indication you’re still in a very beginner mindset. Try to realize that ANY external change will not change the way you are. You need to change yourself FIRST, the way you behave in the markets and your mindset, and then everything external will follow.
BITSTAMP:BTCUSDEducation
by Yelli_trades
19