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5 QUESTIONS Before you Take your TradeWith each trade you take… There are these 5 standard questions you’ll need to ask an answer. Jot these down and have them ready… Do I Have a Trade Lined Up? When you go through your watchlist. You need to see any opportunities in the market that align with your trading strategy. These should stick out like a sore thumb. If it’s not, then it’s probably not a high probability trade. It’s important to analyze the market trends and indicators to identify potential trades. This will help you to make informed decisions and avoid taking unnecessary risks. Do I Have a Trading Strategy? Once you have identified a potential trade, it’s important to have a solid trading strategy in place. Your strategy should outline the rules for entering and exiting trades, as well as risk management guidelines. Follow your strategy and avoid making impulsive decisions based on emotions or market rumors. Where Should I Place My Trading Levels? You got the strategy so now you have to set up your trading levels. (Entry, Stop loss, Ghost level, Take profit levels) Are you using Order Blocks, key support and resistance levels, patterns, indicators or trend lines? Whatever you use, keep consistent to determine where to place your trading levels. This will help you to choose your trading levels based on the R:R for each trade. How Much Am I Trading? Trade size is crucial. You need your calculator to work out your risk per trade. This will help you to manage your risk effectively and avoid making emotional decisions. Your risk management plan should outline the maximum amount you are willing to lose on any given trade, as well as the maximum percentage of your trading account you are willing to risk. What Is My Exit Strategy? exit strategy should outline the conditions under which you will exit a trade. So you’ll know where to cut your small losses, ride your winners, lock in profits, or even adjust your take profit levels when the markets move well in your favour. Also, make sure you stick to your exit strategy and avoid making emotional decisions based on market fluctuations. THEN YOU’RE READY TO EXECUTE! Once you have gone through the five questions… It’s time to ask yourself whether you are truly ready to take the trade. Focus your mind, clear the distractions, confirm everything is ready to go… That takes emotional discipline. You got the questions, now go start asking and answering them with your trading…
JSE:J200Education
by Timonrosso
EUR/USD - WIll this Resistance break?Hey tradomaniacs, after Jerome Powells hawkish speech we`ve seen a turn today as US-DOLLAR got sold off. Headlines from Powell: 1️⃣ „We will react if inflation lasts longer than we expect..." 2️⃣ "Need price stability in order to achieve full employment and a decenteconomic growth." 3️⃣ "Increasing wages are generally good but could fuel inflation. Wages weren`t rising like that for decades." 4️⃣ "Economy needs no fiscal support anymore." 5️⃣ "We will probably increase the interest rates through the year." 6️⃣ "Inflation will probably last until the middle of the year." 7️⃣ "We will reduce the total assets faster than last time - Will need two or three meetings for a decision." Don`t know why the market reacts so friendly, probably because market participants were expecting even more hawkish tones. Do you think EUR/USD will break the resistance? Let me know what you think!
by Trading2ez
5
Technical analysis Question (BTC/USDT)G'day peoples, I have recently been learning about technical analysis and am wondering what some more experienced people think of my current analysis of the chart and my prediction. What I'm seeing on the charts is the likelihood for BTC to grow about 3 percent in the next day or two shadowing what it did on the 21st to 22nd of dec from 20.00 to 4.00 on the hourly timeframe. Would I be on point in this prediction? For more experienced traders: Where would the entry point be? Thanks everyone who is able to give me some advice on this. :)
Long
by lochiejy
Some important questions & answers (for beginner investors)Today we prepared for you several questions and answers that might be helpful to new investors. Please feel free to post your own questions and answers in the comment section. What is technical analysis and why does it work? Technical analysis is a scientific discipline that analyzes investments by evaluating statistical data (usually price and volume). This method works because of fractal nature which represents the ability of same price patterns to appear across multiple different time frames independently. This applies also to patterns observable in oscillators, indexes and other technical tools. What trading systems are the best performing ones? Best performing trading systems are trend based. Purpose of such trading systems is to identify the trend and then „ride it“ – which means investing in its early stage and taking profits in its latter stage. Which time frame is the most reliable? Generally, bigger time frames are more reliable as opposed to smaller time frames. Though, patterns and trading signals usually take longer to develop when using a bigger time frame. Most common time frames are: 1-hour, 4-hours, daily and weekly. What is leverage? Is it a really fast way to make money? Leverage simply represents borrowing money in order to fund an investment. For example, when a trader uses leverage with ratio 1:10 and underlying asset moves by 1% then leveraged asset moves by 10% in the same direction. Leverage is definitely one of the possible ways to generate money fast. However, it is also a quick way to lose money. Should I use a leverage when I am new (unexperienced) investor? Use of leverage by new investors is pretty common as it represents an enticing opportunity to make money fast. However, in our opinion, an unexperienced investor should not use leverage at all. That is because leverage is very difficult to manage and its use by an unexperienced trader usually results in loss of capital. Is it possible to time exact market tops and bottoms? Timing exact market tops and bottoms is incredibly difficult even for an experienced trader. There are several technical tools at disposal of a technical analyst which he or she can use to indicate market reversal points. However, picking these exact spots is not necessary in order to turn profitable in trading. As mentioned previously, best performing trading systems are trend based. Such trading systems work by identifying trends and by exploiting them (without requirement to identify exact market top or bottom). What is diversification? Why should I implement it? Diversification is one of the possible ways to manage risk in the portfolio. It simply stands for diversifying capital into multiple different investments rather than focusing capital in a single investment. Proper diversification protects investor's capital from price fluctuations within particular market sectors. Additionally, it is crucial in order to build a long-term lasting portfolio. Should I invest in the stock market when it just reached all time high? Probably not. Usually, the market tends to pull back when it reaches a new all time high. Therefore, in our opinion it is not best to add to the long position just when a new all time high was reached by an asset. One of the best strategies in a strong bull market is to add to the long position when price drops and then sell the position once an asset reaches new all time high. Should I invest in an asset just because it fell 90% in value recently? Not necessarily. Fall of such high magnitude does not necessarily mean that the price trend will reverse. There may be various reasons why an asset fell by so much; and therefore, doing your own due diligence is highly advised before entering any trade. Is past performance of an asset indicative of its future performance? No. Past performance of an asset should not serve as a basis for predicting future performance of that same asset. Should I use options/other derivatives as a new trader? There is no restriction to use options as a new trader but derivatives in general are more complex instruments than stocks or bonds; additionally, their price is determined by numerous factors that an investor should be aware of. If a trader does not fully understand how some asset class behaves, then he or she should avoid such a particular asset class. Should I keep holding a losing position? It depends on the investor's own assumption but in general it is better to close positions that keep losing to prevent further losses and to be able to use capital somewhere else. I feel I haven’t made many trades in the recent past. What should I do? Trading is not about making enough trades but about generating profit. Sometimes there are not enough opportunities in the market; making too many trades could lead to entering positions that a trader is not fully comfortable with. Also too many trades reduce profit due to trading fees being stacked up. So if a trader can not find another opportunity to make a trade, the best solution is to take a “break” and to keep looking for the next opportunity rather than force himself or herself into trading. DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade. This content serves solely educational purposes.
Editors' picks
SP:SPXEducation
by Tradersweekly
116
Basic Conclusion and ConfusionI have questions about perdicting an asset/commodity deflation event or crash below If you have time. Prices are through the roof right now making the entire investing world to seem speculative. I think the market is showing weakness and there may be a crash around the corner, I'm looking at patterns to see if there's any similarities between the build up to a crash and seeing where volition is creeping towards a big leap before a significant increase in volition such as the red bar pattern over today's current situation (from a jump in 2018) where I found similarities with other minor jumps in volition and a pull back in a bullish pattern, given that a majority of the market can see inside before retailers is it possible that these build up events where fear becomes the headline for few weeks to months ends up being a sudden crash in value. Professionals and "Professionals" have said time and time again that the build up is here, it's been happening for months to years given assets are up at record highs and inflation is going now where anytime soon, our supply chain will only get worse till February I hope, even then it'll take years before we see commodities stabilize and by then the value of the dollar will not be what was, oh also the richest minority own the largest majority of everything still.. is there much of a pattern and what are some of your ideas? I hope we both learned something? Is there a way of timing a economic crash? Is the 36 month trading period a thing? Is it best not to worry about the crash? it'll happen eventually as time has proven again and again. Best case scenario I reposition some previous sales and some savings. If a company doesn't rally back to it previous average after crash, is it still worth it to invest into said company since it is sustainable and growing a dedicated user base?
CBOE:VIXLong
by hooligan99
Question for the wise, Downward Flag for MATIC?Hey guys, As you know I have a lot of curiosity as to what Polygon is going to do in the near future, and I am a beginner (less than a year in), so I wanted to know if this would constitute as a downward Flag on the MATIC Chart this morning? If so, is the right strategy to see where the price breaks out of the flag as an indicator as whether the price will rise or fall coming out of the Flag? Also, if so, what is a good way to tell where the flag ends? It seems to me that you would need to pin that down before being able to identify which way the price breaks out of the flag.....if I am remembering the insane amount of info I have jammed into my head basically home schooling my ay through stock trading. I think this will be one of the most rewarding things I have ever done in my life....just as long as I do it the way it should be done, hence all these questions that aren't fielding many answers, I thought the purpose of this community was to try and educate more of the population on how our financial system really works, and that most "regular" people are being taken advantage of with just about every industry...so, in the hopes of finding some friends with a common interests, and good people who I can trade with, I will reach out again, with more keywords this time....thanks in advance for your time and any consideration you may have given to helping me, whether you end up commenting or not....just want to soak up everything I can, we all started somewhere guys...thanks
FTX:MATICUSD
by DutchBoyzDynasty
5
"One more Pump, Before She Slumps" ???I am using ETH here because that is what I happened to be trading today, and I initially I drew some trend lines on November 16th, 2020 trying to get a feel for where we are at relative to the 2017 bull market cycle. At the time, it was pretty obvious what was about to happen. But I am not so sure what happens next... If historical patterns rule the world, then we get one or two more pumps and then it's over. But the world has changed, and there are more variables to consider this time which were not present after the last BTC halvings: - Institutional adoptions - Elon Musk - Covid and our ]Brave New World .... - Blockchain is now a well accepted technolofy - Global fiat economies are becoming obsolete - Everything is remote and IT is the sector to be in - Bitcoin hit $61,000 and this could totally just be a dip. Is the euphoria fizzling out, or some of us simply have PTSD? PS Never published an idea before, have mercy. What do you thinkj? One more pump before she slumps, or are we sailing smooth to at least 100k, or higher? This cannot possibly just go on forever, can it? I am very much split on that. I tend to think that while the world has changed -- this cannot sustain forever. "What goes up... "
BITSTAMP:ETHUSD
by BongTheLop
2
ETH rising wedge / Ascending triangleHey, I'm pretty fresh to trading and I have seen a fair amount of people publish or talk about an Ascending triangle(B) and ETH breaking out. I had thought it looked like a rising wedge(A) with a consistent middle sup/res, so the market was moving "normally" with a possible breakdown at the end. Is there something I'm missing or a reason why the Ascending triangle was considered so significant? Appreciate any clarification or teachings I get and maybe it helps someone else too. Hopefully, ok with me posting like this. wanted to ask in public chat but there's that rep entry.
by FroZenThai
1
MREY - A Question for Penny Stock ProsCurrent time - 10:09 NST - I've been working on getting serious about day trading. Spoken with a few about strategies and indicators. I've learned a lot throughout this short period, however one of the best ways I learn is through asking. Following my first penny stock $MREY. Initial Observations: -Level II indicating strong demand from the bid size -Spread between ask and bid recently hit 0.0 -Neutral trader sentiment among group chats - Price just exceeded EMA - MACD blue close to cross orange Initial Hypothesis: -The price will rise from its current 0.045. Questions: -Should I use shorter time frames given the stock price? -Do penny stocks have similar trading behaviour as regular stocks? Meaning, when there's bullish sentiment on groupchats prices tend to drop, so are penny stocks as closely followed by industrial algorithms? -What's an average order volume that could cause price movements given that the daily trading volume is less than 250k? Either sale or purchase? -General Question: Are there any traders that focus on the Canadian Securities Exchange specifically?
M
by normaescobarca
3
Question.. (educational)Hello all, I'm relatively new to TA and I was wondering if the area I outlined with the red lines was showing any sign of 'iceberg' play? I thought of it because of two things, the length of time spent at the new price range and the slight jumps, indicated by small triangles, seen earlier on during the possible play? My current understanding of the iceberg methodology is to have the time-frame rather large and to 'create' these small spikes to further stoke the plateau. If I am wrong please don't hesitate to say so and also please include why and what kind of indicators I should look to for confirmation/rejection of the idea. Also I understand that TA includes going back to the financial records from the quarters involved, especially when looking at such a larger range of time. Are there financing indicators I should look for in those reports such as those found in the 10-Q? Let me be clear, I do not actually suspect this is in play, nor am I anywhere near upset/conspiring. I am only asking this to learn more about such a maneuver and what kind of things trigger more serious consideration of it than those that my novice eyes can spot. Any contributions appreciated. Thanks!!
NASDAQ:FSLR
by curtycurry
1