Get started

Psychology

Higher Rewards For Less RiskI've changed my reward-to-risk ratio from 1:1 to 2:1. You heard me right! They have changed. I wasn't a stickler about my ratios, but I am now. I want to make more money and do less trading. How is this possible, you may be asking? It's simple when you look into the details. So let's take a look at the losses first. What do my losses look like? Each time I lose a trade, I recently exited a previous winner or wasn't in a trade on that currency pair before I lost. Let me explain because these are two different things. When I win a trade, I give back my profits on losing trades and may not enter the next trade due to my emotions being everywhere. I noticed that I was stopped out, and the price flowed my way. But, honestly, I can do nothing to prevent this from happening. You may say, "well, can't you change your stop loss?" I could, but to what? I never know when I'll be stopped out or how big the wicks will be to get me out of the trade. This means every trade is unique, and I'm making a mistake if I don't follow my rules. Being stopped out isn't the problem. Trading my system too much with almost the same reward to risk is the problem. Question to myself, what if you could hold the trade longer(I'm a swing trader, so this fits) and increase your reward significantly, so you don't have to keep entering multiple trades unless the reward was worth it? So now, if I am stopped, my winning trades will make up for my losses and more. What do my winning trades look like? My winning trades look more significant than my losses. My focus is and will always be higher timeframes. I like to trade when markets are trending. So per the daily, weekly, or monthly timeframe, I'm trading if my currency pairs are trending. My goal is to get the best entry that fits my rules and hold to my long-term targets, and any trade under a 2:1 reward-to-risk ratio will not be traded. I'm also ok with not being triggered into trades set by my pending orders. I'm also ok with losing trades. That's part of the business. In Summary I seek to hold trades longer to receive bigger rewards and let the small losses be small. I've not changed my trading strategy. It works, and I am working on it. We go well together. My belief is as long as the market is trending, I can hold my trade. I pray this blessed you, Shaquan Remember, you don't trade the markets. You trade what you believe about the markets. "Van Tharp"
Education
by ShaquanLopez
Psychological state in tradingThe important point is to describe your psychological state in two cases: When you are not in a trade. When you are in a trade. In the first case, the common problem is missed profit. Often, novices take this very painfully and think about the missed opportunity that could have brought them potential profit. However, the market, especially the cryptocurrency market which operates 24/7 without breaks, has many trading ideas and opportunities, so there is no need to fixate on it or torment yourself with it. Therefore, when you are not in a trade, try to describe your psychological state, what you feel at that moment, whether it's the fear of potential loss from missing a trade or something else. In the second case, when you are in a trade, you need to describe your state, what worries you. It could be greed to fixate profit or fear of losses. In both states, you need to fully describe yourself, the trading setups that cause such emotions. To avoid these emotional swings, you should have a clear plan for taking profit and an approximate loss in case of failure before entering a trade. When you do not have such a plan, you will swing back and forth, and the outcome may be negative. Therefore, when you are in a trade, describe your state in detail and document it in a journal related to your psychology, as psychology is 80% of successful trading. All these aspects will help you learn more about yourself and your psychology, which will enable you to build your trading strategy, as psychology accounts for 80% of successful trading. That's why soulless machines, neural networks, and AI are so good at trading compared to humans with their emotional instincts. Because many people want more profit here and now, they are not willing to bear losses, develop, or understand themselves. Due to this incorrect psychological mindset, people often lose money and then blame trading for being a casino. Of course, it's a casino for ludomaniacs who, without a strategy, listen to "experts on Instagram" and are already turning to the 30th leverage for a short. I hope you understand why this aspect is necessary. Nevertheless, in subsequent articles, we will try to describe more about psychology in trading. 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 Iceberg Illusion In TradingThe iceberg illusion in trading refers to the perception gap between what people think trading is and what it actually means. Many people see trading as a simple way to make quick profits and accumulate wealth, with the idea that all one has to do is buy low and sell high. However, the reality is far more complex. Under the surface of what appears to be a straightforward process lies a world of risk, stress, and uncertainty. Trading is not just about making money, it requires discipline, patience, and a deep understanding of the markets. Those who don't understand the true nature of trading may face financial loss, depression and failure, much like the hidden dangers beneath the surface of an iceberg. Success in trading often requires much more than just a basic understanding of market trends and patterns, and those who dive in without being fully prepared may face dire consequences. 🔷 Above the Iceberg Above the iceberg, people often see the glamorous and attractive side of trading, characterized by success, wealth, and financial independence. They imagine traders as confident and knowledgeable individuals, making smart decisions and reaping the rewards of their investments. The image of traders making large profits in a short amount of time is one that is often perpetuated by media and popular culture. People often see the stock market as a fast-paced, exciting place where opportunities for financial gain are abundant, and the idea of being able to control one's financial future through trading is alluring. This perception of trading often creates a rosy and idealized image of what it entails, leading many to believe that success in the markets is easy to achieve. 🔶 Bellow the Iceberg Below the iceberg, lies the reality of the challenges and difficulties that traders face on a daily basis. There are many hidden risks and uncertainties that are not immediately apparent to those who are new to the world of trading. Some of the things that people don't know that lie beneath the surface of the iceberg include: 🔸 Market volatility: The stock market is a highly volatile environment, and prices can fluctuate rapidly and unpredictably. This can make it difficult for traders to manage their positions and minimize their losses. 🔸 Emotional stress: Trading can be a highly emotional experience, and the pressure to make the right decisions can be immense. Many traders struggle with anxiety, fear, and depression, particularly when faced with losing trades. 🔸 Lack of understanding: The stock market is complex, and it can be difficult for traders to understand all of the factors that influence market trends and prices. This can lead to costly mistakes and an increased risk of financial loss. 🔸 Competition: The stock market is a highly competitive environment, and traders must be able to keep up with fast-moving markets and make quick decisions based on complex data and information. 🔸 Long-term success: Many traders are focused on short-term profits and may not consider the long-term impact of their trading decisions. Achieving lasting success in the markets requires a well-thought-out strategy and a strong understanding of the markets and the risks involved. 🔸 Timing: Successful trading often requires precise timing, as markets can change rapidly and prices can fluctuate. Traders must have a deep understanding of market trends and be able to make quick decisions to take advantage of opportunities. 🔸 Risk management: Trading involves risk, and traders must be able to manage their positions and minimize their losses. This requires a well-planned and executed risk management strategy, including setting stop-losses and taking profits at appropriate levels. 🔸 Knowledge and experience: Trading is not just about buying low and selling high. It requires a deep understanding of market trends, economics, and financial analysis, as well as years of experience to develop a successful trading strategy. 🔸 Discipline: Trading requires discipline and patience, as well as the ability to stick to a well-thought-out strategy. Many traders make impulsive decisions based on emotions or market rumors, which can lead to financial losses. Welcome to the hardest game in the world. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
11
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
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
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
2
WARNING! This will reflect on your tradingThe world thrives on drama, gossip and most people just want it to end by the way they think... I can't blame them because most people are struggling to live their lives where they are working from pay check to pay check. Where they are hoping their boss will give them a half day off. Where they are constantly feeding the fat cats of the world and paying taxes from their salaries. But then trading comes along, where you can have some degree of control of your finances and investments. Where you can risk what you wish and play the rules with growing a portfolio,... BUT if you bring in your emotional aggression and tendencies, it will reflect on your trading... Instead, you should work on yourself more. Don't be angry over unnecessary things Don't make a mountain out of a mole hill Don't risk anything you can't afford to lose Don't get angry over a small loss - you are in the trading den to make money NOT to be right Take 10 DEEP breaths in and out before you make any impulsive decisions or take any abrasive action. Focus on change and the whole world, your mind and your trading results will change with you... Let me know if this helps by commenting below or at least liking this post. Trade well, live free, Timon MATI Trader
JSE:J200Education
by Timonrosso
MOST DANGEROUS TRADING TRAIT!Most people talk about Fear and Greed being the barometers to failure... I think there is an underlying trait that is far superior which leads to ultimate account catastrophe. EGO. They just want to be right or they will have a hissy fit. They refuse to take a loss... They refuse to accept that the market is moving against you. They find ways to disagree with the market which gets them committing moe. They move their stop loss away further away - which means they risk more. Rinse and repeat - GONE. Cut out your ego or the markets will cut you out. Simple. Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
XLM/BTC Position Trading. Zones. Money management. PsychologyLogarithm. Time interval—1 month. The main trend since the beginning of trading. Coin in coinmarketcap: Stellar. Top trading pairs to bitcoin have significant liquidity. In position trading, you need to work in portions from support/resistance level zones with a predetermined size distribution. Unlike pairs to the dollar, pumps/dumps are smaller in % ratio due to the % rise/fall of bitcoin itself. If bitcoin is cashed in the market, profits remain the same. Hence, the smaller % is illusory in nature. BTC instead of stabelcoins . In such pairs, the “money” is bitcoin. Consequently, even premature selling (there shouldn't be any, since the position is allocated in advance) forgives mistakes, since you get bitcoins instead of USD or stabelcoins. Currently, many stabelcoins are losing their $1 peg, meaning they are devalued. Trading in a bitcoin pair reduces that risk. Work on such pairs is suitable foremost for medium and large participants of the market. It is not rational to work with a small amount in such a time/profit perspective. Money (crypto assets) security Money management. This is key. You don't need to hold a large position on the exchange for this kind of trading! Why keep coins or stabelcoins on exchange if you make transactions quite rarely, only large movements. You understand beforehand when it will happen and in what price zone you are going to buy/sell. That's what all the big market participants who don't take part in price formation do. When you need to buy or sell, you transfer the assets to the exchange and sell or buy on the market. You withdraw right away. If the amount is large enough, you should do this procedure in installments, preferably on several exchanges. At one time I worked for a long time (several years) on DOGE/BTC pair, when this coin was (scam, joke coin) nobody was interested in it, unlike the current time of hype. There is a trading idea of the principle of this work in Russian 2019. In this work, you work only in the secondary trend, from the main support/resistance zones, considering the development of the trend. You absolutely do not need to be interested in crypto news, the opinion of the majority and so on. You can look at the chart even once every few months. What's more, you also don't need to know the future highs and lows of the next cycle (though for traders, they are easily identifiable). You work piecemeal from the zones. You know in advance where and by how much you buy or sell. Locally you can trade 20-30% of your coins, so you will have extra profit. But you don't have to. The price goes down — good for you. The price goes up — good for you. Trading is guessing market probabilities of price movements. Algorithmic thinking according to a trading strategy, devoid of any emotion, makes money. Anything else loses it in any market. In other words, you must initially be prepared for more likely (in your opinion) and less likely outcomes. Know under what conditions you buy and under what conditions you sell. Buying/selling in portions of coins according to predetermined zones. You work from the average recruitment price and from the average selling price in portions, similar to how large market participants work on the BTC/USD pair. You never go completely into cache or similarly into coins. Only the % ratio of coins to money changes depending on the market cycle. Work from the average buy/sell price (of money and coins) on a global scale (large time frame), without any "what if this time will be different". If it does, it's none of your business. Know in advance where you will buy more in case of drawdown, and where you will sell in case of pumping. Again, without the "It could be different this time" and emotional component. Sell and buy assets a little bit before everyone else in the market in installments, "not knowing the exact future," even if you think you know it. This will keep you from making mistakes. Coin trading in the local trend. By trading part of a position locally, you will always have money from profits to buy (averaging the main position) in case of so-called local "black swans". This work is not mandatory, but desirable. It helps some people a lot psychologically, especially if the initial entry into the asset was erroneous and the price dropped significantly. By increasing the number of coins of local work, you thereby reduce your previous losses or even come out in profit over time. Again, you don't have to work this way, but it is advisable. The smaller goals you set, the more you end up earning on the distance . An untouchable supply of coins and cache in case of market force of circumstances . Always keep in mind the possibility of a “black swan,” even if it seems impossible. You always have 20-30% of your position depending on the cycle (money/coins) in case of force of circumstances. Bearish—a “black swan” sell-off under the channel support zone (happens very rarely). Bullish—the final hammer madness over the channel resistance (happens very rarely just in pairs with bitcoin because in a bull cycle bitcoin grows 5-8 times on average). Remember that in the accumulation phase in most cases there is a residual price zone of capitulation, super fear. It is usually accompanied by a “black swan. When everyone gets rid of their assets out of fear. You, on the contrary, buy with a grid of orders with a large range, without emotion. Consequently, always have a pre-allocated cache (or from the profits of a local trade) if such a trading situation is realized in the market. Turn someone else's negative emotions into your own profits. You should always act according to your trading plan and be ready for any market situation, even an extremely unlikely one. bull market highs zone (channel resistance). At the peak of the market, you should already have more than 60-70% in bitcoin (cache) for the next market cycle. 10-20% of the rest of the position should be in a stop loss to protect profits. This is more rational if the last spurt occurs. Coins sold for bitcoin can be held in bitcoin in a cold wallet (not rational if the overall market trend has reversed). You can also similarly sell on the market for cash (be sure to withdraw from the exchange), or put a stop-loss to protect profits, in case the market makes another spurt (additional profit on the BTC/USD pair). Always sell when the price rises significantly (pumping). Protect your profits with a stop. Always sell a substantial portion of your coins with a grid of pending orders during an active pumping phase. Another option is not to sell, but to protect your profits with a stop loss. Bear market minima. (lower channel zone). In a bear market, the lower the price falls, the more market participants wait even lower. Everything is similar to the distribution, only mirrored in the opposite direction. This illogical inadequacy of people is especially noticeable at the "peak of fear." Before that super minimum (there may not be one), you need to gain most of the coin position in advance, but be prepared for anything... Again, you must know in advance where and for what % of the allocated amount you buy coins and under what conditions. There must be discipline in everything and determine in advance what your further actions will be in accordance with your trading algorithm, rather than an emotional component. Always have a certain percentage of money that is comfortable for you in any dominant trend and phase of the market. Bull Market . In a bull phase, you should accumulate a large percentage of cache (stabelcoins) at the expense of profits. Bear market . In the bear phase (altcoins from -90% and below) you should accumulate in portions of cryptocurrencies you are interested in. I'm sure most people have it the other way around. In a bullish phase, most collect promising cryptocurrencies bought near price highs (hype, everything goes up in value). In the bear phase, on the contrary, most market participants load most of their trading depots into staplecoins (fear, everything is falling in price, expectation of inadequate floor prices). They are driven by the desire to buy back the lowest price of the trend, right before the reversal. The lower the market falls, the more most go from fear to stablcoins. Trade market cycles, not individual cryptocurrencies. Because their price strictly follows market cycles, but not the other way around. Options for the development of price movement on the pair XLM/BTC. . I will show the percentages of the following 3 zones of this channel, depending on where and under what conditions the reversal of this secondary trend will occur (a downward wedge is formed). 1 variant of reversal. Candlestick chart. Butterfly formation, the wedge is not embodied. 1 reversal variant. Line chart. 2 reversal variant. Candlestick chart. Version 2 of reversal. Line chart. 3 reversal variant. Candlestick chart. Full formation of the descending wedge on the classic TA. 3 reversal variant. Line chart. Be aware of trends and accumulation/distribution zones . Remember that a bear market, like a bull market, will not last forever. Where there is supposedly an end, there is always a new beginning. Everything is subject to cycles. This is especially true of financial markets. Every cycle is the same to the point of triviality. Be guided by trends, that is, by accumulation/distribution zones, when they start and end. Bitcoin⁣ — as more than a decade of cycle history shows, this is from -70-82% of the secondary trend high. This does not mean that the subsequent cycle will have the same percentage trend value, but there is a possibility. Alts average -90-96% and lower depending on the liquidity of the crypto coin. The lower the liquidity (people involvement), the higher the risk. You should also understand that the lower the liquidity, the higher the slippage at “peak fear” can be. Many altcoins, especially those with low liquidity, do not survive to the next cycle. Also be aware of market capitulation shocks as a consequence of so-called “black swans.” It won't necessarily happen, but the possibility always exists. The price of something that is worthless can be turned into absolutely anything on the market, to the point of inadequacy. It's not a real commodity whose value people understand. Psychology. Indicators of distribution/accumulation zones in cycles. Allocation zones ⁣—resetting to “hamsters” (fools or inexperienced market participants) is expensive. In a bull market, the higher the price rises, the higher the expectations. Up to inadequacy in the last reset zone in the distribution. “Hamsters” buy very expensive “promising coins” near trending price highs (marketing, information noise) and wait even higher. Accumulation Zones⁣ — Large market participants buy on the cheap from “hamsters”, constantly scaring them with various bikes and imitations. There is a massive build-up of negative news. Hamsters sell cheap and wait for an even lower price. No matter how low the price is, it cannot satisfy people like them. In other words, their thinking is sharpened to the opposite. Projecting onto trade what they are in life. Anything to do with money reinforces this effect. Buy expensive, sell cheap. Don't inherit this tendency of those who lose money in the market. As a rule, most people don't buy at flea markets; they are afraid. They wait for those who should be selling to them to say, "Fools, it's time to buy in the very expensive.") What matters is how much you earn when you're right, and how much you lose when you're wrong. You should know these potential values initially before you make a deal. If you can't determine them, or the risk is too high — refrain from trading. Immunity to guessing lows and highs . Most fools do this in all cycles. Forget the hamster concept of selling at the peak or buying at the low. Leave it to those who are destitute and will be even poorer because of it. Again, it's all in the head. What a person is like in reality is what a person is like in trading. Kill your greed. For example, in all bitcoin cycles (I have my third), the so-called hamsters (fuel) and pseudo traders (fuel) always want to guess the highs and lows of the price. The question is, why do we need to do this? The answer lies in the thinking of the poor and lack of understanding of simple logical things. The ability to wait for your goals. Be patient. Cycles, both local and global, tend to recur with their own time interval, which cannot be identical to the previous one. Consequently, only the patient earns. Learn to be out of the market, In areas of uncertainty, if the market doesn't let you make money, why burn time in vain? This time can be used with benefit both for yourself and for others. Take a rest, read an interesting book, go somewhere, do something useful. The main thing is not to immerse yourself on the Internet. It is important how much you earn when you are right and how much you lose when you are wrong. Initially, before entering a trade, you should know these potential values. If you can't determine them, or the risk is too high, then refrain from trading. Treat the numbers on the screen as numbers, not as money. No equation with the value of "what you can buy with that amount of money on the screen." That is, you have to identify with the percentage of profit/loss, not the money — the amount of profit/loss. When -5% to $100 is $5, and you are not afraid of such a loss. But, for example, when your balance is over $10 million, then -5% would be $0.5 million. For a fat hamster, that's a tragedy. For a big trader, it is a calculated risk. The drawdown can be much more significant, but the risk is always considered and accepted in advance. In the end, the profit more than compensates for such a drawdown. I think you understand the logic. It allows you to understand whether you are ready to work with large sums or not. I purposely wrote a large amount as an example to provide a clear contrast because everyone is ready to lose temporarily, namely temporarily $5? But $500,000 is an unimaginable amount for most people. But to be ready to work with big sums, you need that discipline and attitude towards money at the very beginning of your hobby of trading. Everyone wants to work with large sums in the future when they trade, or am I wrong? As a rule, most market participants cannot overcome this barrier because of their "lust for money" and identification: the numbers on the screen are real money, not just profit/loss % figures. A trader's behavior in the market is a result of his thinking. Your way of thinking affects your habits, and your habits are what makes or loses money in the market. Margin is bad . The exception (not necessarily) is an adequate short position with minimum leverage and risk limitation. If you want to steadily earn in the market and never get nervous - don't use margin at all. Absolutely never. As a rule, the poor use margin, and the poorer they are, the higher the leverage. Perhaps that is the secret of their poverty. I'm not talking about margin in the first place, I'm talking about the mindset that generates higher margin leverage, driving the risk/profit ratio to idiocy, but that's the way it is. Exchanges don't like those who make money and adore those who might lose money trying to get rich. Margin trading with leverage is only for experienced traders. It should be taboo for novice traders. Diversification of storage and trading places . This is very relevant to position trading. I wrote about it above. Don't trade or store your coins in one place. "Russian or South Korean hackers attacked a top exchange, all cryptocurrency stolen." This is sarcasm, but this is exactly the kind of FUD for fools you will see when they just steal cryptocurrency from exchanges under the guise of such a tale. The made-up story doesn't matter, what matters is that the people behind the cryptocurrency exchanges will steal cryptocurrency from you, wearing the skin of an injured sheep). The safety of your money (including cryptocurrencies) depends only on you, not on chance. Anything that seems random is not. If you always rely on chance instead of your mind, you are doomed. The will of chance will shadow you and haunt and empty your pocket time after time. You will always be at the forefront of the victims of your carelessness and self-confidence. Always keep some of your positions in cold storage . Keep some of your positions, even if you are very actively trading, on a cold or hardware wallet (preferably several). It should be at least 30% of your total deposit. This percentage should vary during certain phases of the market. In accumulation zones, most of the position should be out of the exchanges. Diversification of stubblecoins (profits) and their blockchain storage. Very relevant because in the future, one liquid stabelcoin like UST (Luna) will be zeroed out (disposal of money on a large scale). Probably, many people have understood this for a long time, but do not believe it will be implemented. Not only that, but most altcoins will evaporate at the moment. Yes, the probability, as always, is no greater. But if that probability is there, it is rational to take steps to make sure it doesn't hurt you. Diversification as well as swift action during an event is the best defense against something like this. Stable coins are always a risk. Keep this diversification in mind, both by their own varieties and by blockchain if you are storing them on a hardware wallet. Unfortunately, this is a risk you will have to accept and live with, as using stablcoins is a component of trading. Diversify such assets not only when you are out of the market waiting to trade, but even when you are actively trading. That is, by using different stabelcoins when trading the same cryptocurrency (e.g., BTC) you reduce risk. For example, BTC/USDC, BTC /USDT or BTC/BUSD. Any stabelcoin is an altcoin whose value (stability) is based only on people's belief in its stability . Totally uninterested in the opinion of the crowd . The crowd is always wrong. The majority always loses in the market. Otherwise, it would be impossible to make money in the market. Therefore, by being interested in and listening to the trend of the opinions of most market participants, you can unnoticeably lean towards the opinion and understanding of those who initially have to lose. Are you prepared for losses? No? Then why should you be? Another option is to use the opinion of most market participants to track market trends. If you are well-versed in psychology, this will be helpful. If not, you yourself may fall prey to opinions unnoticed. Everything unpredictable is the fate of only absolutely predictable people, it always was, is and will be . Don't be interested in cryptocurrency news. The chart takes everything into account, including the release of "tales for fools." All crypto news is created for price direction and nothing more. Small-scale news for influencing fools (their logical scare/satisfaction actions) to locally influence the price. Large scale news and events to globally influence the trend and the market as a whole. If you can understand and read between the lines, understanding what the manipulator is trying to achieve, then you can use the news background in your trading strategy. If not, and you are not a good psychologist - completely ignore the flow of information. The positive and negative emotions of others in the market generate volatility, which is your earning wave. Ride it. Don't mess with anonymous fools. Appreciate your time. Don't pay attention if someone criticizes you without being constructive, or wants to impose their perspective without arguments of rightness. Such commenters are usually people with a very low social status in reality, they are trying to assert themselves through the internet in an anonymous world. Be immune to such losers, they are the ones who want you to doubt yourself and accept their perspective. The more bile, the more anonymous cries from. Understand that only such people have time to correspond and “spout bile” on the anonymous internet. As a rule, these are immature individuals or conventionally "mature," but with the mindset and interests of a teenager. Don't waste your time on the vacuous or psychological aberrations of flawed Internet characters. Make good use of your time. The behavior of people in financial markets is a projection of who they are in real life. That is, their positive and negative psychological qualities. Don't be a trading junkie. Don't waste time. Don't waste time. Both for meaningless Internet price guessing, and for round-the-clock trading. Mindless guesses. The idiocy of the crowd. Trying to guess highs or lows that are logically understandable. When all scenarios are clear and understandable. Do not turn into idiots from the "where the price of bitcoin will go" sect. Everything is always the same in every cycle. You must decide for yourself initially (after spending several hours) on what conditions and prices you will buy this or that cryptocurrency and at what prices to sell. Have a more likely and less likely scenario. Be ready for any incarnation. Do not complicate simple logical things with the stupidity of fortune-tellers mixed with your greed. The basis of trading is your trading strategy , that is, your knowledge that you put into practice in symbiosis with risk management , that is, your manner of taking on take risks in transactions and manage money. To paraphrase, initially you need to understand how much you will earn when you are right, and how much you will lose (hit stop or averaging if a less likely scenario is realized) when you are wrong. In such cases, it is absolutely not necessary to know the exact price of the low or high of the trend, leave that to the idiots. Trading 24/7. I will write short and clear. Money without life is not needed. In everything there must be adequacy. Knowing the instinctively more likely behavior of people (the psychology of mass behavior) in a given situation, as well as programming people's behavior (what is right / wrong, how to act in a given situation according to the rules) and creating the same situations, allows easy to manage "potentially uncontrollable behavioral chaos". Psychology. Be yourself - don't go against yourself. For traders Work with your trading algorithms based on your knowledge and experience, not on emotions. For those who are faced with the fact that trading constantly "hit the head" . Become an investor. Carefully study the cryptocurrencies you are interested in and decide whether to invest in them or not. Divide the money needed to invest in each cryptocurrency into several parts. Buy in areas of potential price reversal. After purchase, send your coins to a hardware wallet. Stay away from your cryptocurrencies until the new bull cycle (peak will be in 2025). Also, before the big bull cycle, there will be an intermediate one by a relatively small percentage, as in 2019-2020. Don't forget to sell some of the coins to buy them back much cheaper. It is also worth paying attention to those cryptocurrencies that are included (blockchains and protocols) in the development of CBDC and comply with the future ISO 20022 standard (already in March). XLM is one of them.
Education
by SpartaBTC
13