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BTC/USD price action - final stageAnalysis: Bitcoin latest buy opportunity just right here, since we started a positive feedback loop, and we are at the start of a positive correction. Risk reward low, this could be a potential long term trade since. I would like to mention that I am not always bullish, we can have a sudden flash crash as well, but using my risk management strategy, you can make money on your own without loosing your capital. NEWER TRADE WITHOUT EXIT PLAN!!!!! Trade: BUY 1st trade entry: 53200$ 2nd trade entry: 54100$ 1st target: 68k 2nd target: 95k S/L: 51900 Check out my yesterdays catch - chart is attached below. Consider to join our community to get more of this kind for Free. community.protradersnetwork.com #forextrader #forex #forextrading #forexsignals #forexlifestyle #trading #money #cryptocurrency #trader #bitcoin #forexmarket #forexlife #technicalanalysis #stockmarket #forexanalysis #forexmentor #daytrading #forexgroup
BITSTAMP:BTCUSDLong
by tmsarn
5
The Put/Call Ratio in a NutshellWhat is the put/call ratio? The put/call ratio (PCE) is a popular barometer of market sentiment, which shows the ratio of trading volumes of Put vs Call options. However, with distortions in the current price of nearly every instrument off the back of "free money," and persistent market intervention by policy makers, we're not quite seeing the price discovery we're used to, which has made it more difficult to make sense of the Put-Call, and other technical indicators as well. What is a derivative? To understand the value of the put/call ratio, we must first understand the derivatives market. A derivative is a (leveraged) instrument, which gives the holder a right to either buy (call) or sell (put) a specific amount of a stock (or other instrument), at a specified price, and timeframe. If your'e holding a put, you're likely expecting the price of the stock to fall, while holders of calls are expecting the price to rise. Puts are usually used as a solid hedging tool, while calls are more often related to speculative behaviour. How to use the put-call ratio? When the put/call rises above 1, it indicates that market sentient is shifting more bearish. At the moment, we're looking at a put/call of around 0.46, which indicates that market sentiment is very bullish, and actually, it's been bullish for quite some time as you can see in the chart. When we see a massive shift in the put/call back above 1, naturally it would be showing that investors and traders are becoming more defensive.
Editors' picks
PEducation
by Hedge_Of_The_World
32
selby_exchange - Selby Margin Trading Rules v1.1Selby Margin Trading Rules 1.1 1.Trading Working Hours: 01:00UTC Monday thru 21:00UTC Friday take off all weekends and holidays. Only begin margin trading after 30 minutes of reviewing all instruments and timeframes. 2. Margin Forecasting: Charts are built on the 11/15min. using data from Heikin Ashi candle wicks. Identify entry/exit on the 1,2,3min. chart using moving average crossover intersections based on the Fibline Glance indicator set to: 100,100,0.1,40,0.1 3. Risk management: Maximum leverage on any position long or short is 70X. The position size should be based on weekly "working capital" and not total life savings. Formula for position size is a 5X position can use up to 95% and a 70X position can use up to 30%. 4. Enter limit order long/short and then set limit exit to take profit (TP) at the next short term Fibonacci level. Moving average crossovers in higher timeframes 14,21,33,48min. the 1-6hr. and 1day will confirm market direction for successful trade. 5. "THINGS TO AVOID" Greed - Bragging - FOMO 6. -2%-20% RULE: Always close negative positions. Look for a retrace opportunity to exit but if trade falls below (-2% on a 5X) or (-20% on a 70X) for more then 30min. set a stop loss limit order to prevent loss of time and a potential liquidation. 7. 60/40 Split: To maximize margin profit, stay out while awaiting confirmation of market direction, the entry must be caught at the Fib. Think/Chart 3-steps ahead, do not rush yourself into a position. Wait a few minutes between entry/exit. "3-Strikes" If you have three bad trades during the workday stop for 24hrs. 8. (TP) TAKE PROFIT: Cash-out at the end of the week into btc/fiat and pull 10% of net gains out of cyberspace forever. Work as long as you like on any day during the week, but remember not every day of the work week is always a good trading day. Selby finding creative patterns in charts on Tradingview Not advice for investing, but I am one to watch Rebellion=Change=Future
COINBASE:BTCUSDEducation
by selby_exchange
3
XAUUSD TO 1777 CONFLUENCE COUNT 1. THREE WEEKLY CANDLE REJECTION AT PREVIOUS MONTHLY SUPPORT @1686 2. MARCH 15 WEEKLY CANDLE CLOSE ABOVE PREVIOUS MONTHLY RES @1733 3. MARCH 22 WEEKLY CANDLE FINDS NEW SUPPORT AT PREVIOUS MONTHLY RES OF @1733 NOW TURNED SUPPORT. 4. MARCH 29 CANDLE RETEST PREVIOUS MONTHLY SUPPORT OF @1686 ( MAJOR REJECTION ) 5. APRIL 5 CANDLE OPENS BULLISH LOOKING FOR CONTINUATION AND FURTHER BREAKING PREVIOUS RES OF @1733 ALSO BULLISH PENANT FORMATION ON 1H TIMEFRAME 6. POTENTIAL RETEST OF MONTHLY RES @1777 WHICH IS ALSO A 50% FIB RETRACE ON OUR MONTHLY TIMEFRAME 7. BUY ENTRY POSITION @1733 . TAKEPROFIT @1777 8. STOP LOSS SET @1725 DEPENDING ON RISK MANAGEMENT.
FOREXCOM:XAUUSDLong
by Dailypaperfx888
Why Options Are DangerousIn today’s article, I want to answer a few questions about why options can be dangerous. What are the risks of trading options? Are puts or calls riskier? Why is option selling risky? We’ll also talk about the safest options trading strategy. So let’s get started and let’s jump right in. Buying Calls & Puts First of all, you need to understand that there are different types of options. There are call options and put options. So calls versus puts, which one is riskier? Some people think that trading puts are riskier, while some people might think that trading calls are riskier, but this is not the case at all. The key question is that you should ask yourself is, are you BUYING options or are you SELLING options? There’s a huge difference between buying and selling, as well as different levels of risk involved between the two. So when you’re buying options, the maximum amount you can lose is the premium you paid. So let talk about a very specific example. Let’s look at a trade I took with TSLA and let’s say that we want to trade a call. So let’s maybe say a 700 call and right now the price is $700. What is the maximum that you can lose? Let’s say that we are bullish on Tesla and we believe that Tesla might go above $750, and we want to buy a call with a strike price of 750. So a 750 strike call expiring next week costs around $1.70 (at the time of writing this article on March 19th, 2021). Now options come in 100 packs, so this means that you’re paying $170 for this option. So in this case, if TSLA does not go above 170 by next Friday, you would lose the $170. So this is very easy, the maximum amount that you can lose is the premium that you paid. On the other hand, you are bearish on Tesla. You believe that it might actually go down to $560 so you’re thinking about a put option with a strike price of 560 that expires next week. A put with a 560 strike price expiring next week is $4.50 so a little bit more, pricier here. Again, since options come in 100 packs, this means that your total risk here is $450 per option traded. It’s the same risk here because it doesn’t really matter whether you’re buying calls or you’re buying puts. The maximum amount that you can lose is the premium. Now, on the other hand, there are SELLING options, and when you’re selling options, this is when your risk is almost unlimited. When you’re buying options, and let’s just say you want to buy a call, this means that you want the stock to go up. So going back to our TSLA example, if we would buy a call 750, that it is expiring next week for $170, if Tesla goes above 750, we make money. If Tesla goes below 750 or stays at 750, we lose the premium or $170. So not really a big deal. Now, how much money could we make on this one? Well, if we buy a call for 750, we have the right to buy 100 shares of Tesla for $750. So let’s say that Tesla closes at $800. So in this case, our profit is $800, minus the $750 that we bought Tesla for, which is $50 per share. Since options come in 100 packs, this means that we would make $5,000 in profits. This is why people love trading options. Because if you think about it, we’re risking $170 and can potentially make $5,000 if Tesla would go up to $800. Now, let’s quickly do an example here for buying a put. So buying a put and in this case, you want the stock to go down. Using our example for TSLA again, we will buy a put with the strike price of 560 for $4.50. So our total risk here is $450. So now if Tesla goes below $560, the strike price here, we make money. Now, if Tesla stays above 560, we lose the premium. But that is the maximum that we can lose. So even if Tesla rallies right now to 800, we would only lose $450. So that is pretty cool, right? Let’s say Tesla goes to $500. So we were able to sell the shares for $560, now we can buy it back for 500. So this would be $60 per share. Since one option equals 100 shares, it means that we would make $6,000 in profits. So as you can see, with options, you can benefit from a stock going up, as well as a stock going down, and the really cool thing is that you can risk a little to make a whole lot. Now, here’s the challenge with this. If you buy a call, you only make money if TSLA is really going above $750. So if it stays below, that’s not enough for the buyer of an option to make money. If Tesla goes sideways well, same here, right? Then you not only won’t benefit from it, but you also lose the premium. If Tesla goes down, you also lose the premium. So if you think about it, there are actually three ways how you can lose money and only one way how you can make money, and this is if Tesla really shoots up. This is why many people, including myself, are interested in SELLING options. Selling Calls & Puts What are the pros of selling options? The first pro is that you don’t need to be right about the direction of a stock to make money. Here is an example I’m in right now (at the time of this writing on March 19th, 2021) with LL Lumber Liquidators. So right here, Lumber Liquidators, I actually sold a put with a strike price of 22. When does the buyer of a put make money? Well, the buyer of a put makes money if it goes below $22. For me, the seller of a put, I make money if Lumber Liquidators goes up, it goes sideways, or it goes down. It can go down all the way to 22. This is a drop of a little over 10%. So if you think about it, if LL can go down by 10% and I am still making money and this is why again, this is why selling options is so fascinating. So you don’t need to be right about the direction and you can keep the premium. So here’s the deal, the premium that you receive is exactly what the buyer is giving you. So the premium is rather small, right? So the cons are the premium is rather small, and this is where your risk is almost unlimited. So back to our example here with Lumber Liquidators. I sold a 45 of the 22 puts, and I received $0.20 per share, so $20 per put option. $20 multiplied by the 45 options means that I’m making $900. So this is the premium that I receive. However, here’s the deal. The buyer of a put has the right to sell 100 shares at the strike price. So what does it mean for me? So the seller, which is me, has to buy LL at $22, and again, this is where one option means 100 shares. So for me here, since I’m having 45 options, this means that I would have to buy 4,500 shares. Because this is where we get to the risks of this strategy here. Now, again, Lumber Liquidators can drop more than 10% and I will be just fine. But what happens if it drops below, let’s say to $20 from $22. OK? So I would have to buy Lumber Liquidators at $22, and therefore I would lose $2 per share. Here, in this case, I have 4,500 shares times $2, this means that I would lose $9,000. Now you get the idea of why selling options is fairly risky, because I’m receiving $900, but if it only goes down by $2, I’m already losing $9,000. But what if it gets worse? What if LL drops to, let’s say, $15, right? Again, I have to buy LL at 22, so I would lose $22 minus $15, $7 per share. Since I have 4,500 shares, time $7, this is where I would lose $31,500. OK. So as you can see, it is super risky if you don’t know what you’re doing. Now, I have been doing this for a long time here, selling premium, and I’ve been doing really, really well. Analyzing Risk With RIDE Let talk about a particular trade that I made with RIDE . I sold the 21.50 put and RIDE dropped. I sold 47 contracts, 47 contracts, which means that I own 4,700 shares at a price of 21.50. RIDE right now (March 19th, 2021) is trading at $13.50. So right now, RIDE is at 13.50. So this means that I lose (21.50, minus 13.50) $8. So I’m losing $8 per share and I’m having 4,700 shares, bringing me down to a total of $37,600. Now, let’s talk about it. How much money did I make selling premium on RIDE? Just on RIDE here. I sold the puts initially, then I sold calls, I sold calls, and I just sold a few more puts. In total on RIDE, thus far, I collected $4,935 in premium, but I also have an unrealized loss of $37,600. So it’s super important that you understand that there is risk involved. Now I know my way out of this. I know how I can trade my way out of this if needed. So I collected $4,900, but right now I’m down that amount. However, this means that my net loss is if I would close it right now, which I’m not intending to do, would be $37,000 minus the $4,935, let’s just say $5,000 to make the math easy, is $32,600. That would be a real loss. This is why it’s super important that you understand the risks when you’re trading options. Safest Options Trading Strategy Now, one of the questions that I receive all the time is, “what is the safest options trading strategy?” The safest options trading strategy is covered calls, and here’s why. When you are trading covered calls, it means you own the stock, and now you are selling calls against it. So what does it mean when you are selling calls? When you are selling calls, it means you have to sell the stock at a certain price. Back to my example with RIDE I own 4,700 shares, and I own those at $21.50. So this is where if I sell calls at 22.50, so this means that I have to sell RIDE shares at $22.50. So how much money do I make? So I bought at $21.50, and I sell at $22.50, so this means that I’m making a dollar profit, $1 profit per share. And since I have 4,700 shares I would make $4,700 plus the premium I receive for selling the call. OK. So this is in addition, and therefore, covered calls are by far the safest options trading strategy. The only way how you can lose with this strategy is when the stock goes down. This is where you already own the stock, and therefore, if you want to sell calls against it, it is the safest option trading strategy, at least based on my experience and my opinion.
REducation
by rockwelltrading
1
Finally in the zone of interestFrom overbought ATH around 61780 price fell down to oversold and showing us bullish divergence on 4H RSI. When we consider strong support FIBO zone around 52.4K we get great probability for trade with minimal risk. Longs positions are starting stabilize too. (green line above charts). After all of that I will still opening only a small position of my account to leave room for further maneuvering :D Because the price CAN have many obstacles upwards (56500,59300,60000 and ATH.) 15% of account i long at market price. Comment below where you will buy or maybe where you will short: D And if you agree like. I will update this idea in close future so if you want, follow me.
BITSTAMP:BTCUSDLong
by Exly11
1
DXY is looking for a direction.As shown in the charts, the price trend records a downward movement, using the entire range of the trend channel, but is unable to break the resistance level at 92.50. Applying the Fibonacci Retracement tool, it seems that the specific resistance level at which the upward trend of the last period was stopped coincides with the critical price level of 61.8FR. This makes it particularly important in determining the course of the DXY. Moreover, there are two more critical resistance levels at 94.60 and 96.00. The averages as well as the MACD, on the other hand, seem to give a positive outlook on DXY's effort to move upwards. At present, of course, these observations are too early and are not sufficient to definitively substantiate the beginning of an uptrend. Clearly much more momentum is needed from the MACD as well as the averages that record the uptrend to get the right position. Looking at the data from the Bollinger Bands, it seems that the index reacts more than ever to the upward movement of the DXY, as the outer bands are in a relative deviation. Without this of course creating perfectly for its course because it may have been caused by the movement of prices outside the upper band. Finally, the data analyzed by the Bulls / Bears seem to lead to the accumulation of a dynamic on the part of buyers which is still subdued. Summarizing all the above, it seems that DXY is trying to find an uptrend which now cannot be confirmed 100%. The criticality of the price level 92.50 is obvious. A possible upward break in this resistance level may lead DXY to what it has been trying lately, a rise in prices. On the other hand, if prices move lower in the coming days, it means that buyers are not yet ready to take the risk and drive the dollar higher.
INDEX:DXY
by UnknownUnicorn214400
How to deal with taking a lossThe five stages of grief are an ever present reality in life. A loved one passes away, or you suffer through a heart break, you will most likely go through all five stages: Denial Anger. Bargaining. Depression. Acceptance. Going through these stages is a healthy way to cope with loss or a painful event. Financial pain is one of the hardest pains to cope with and if you trade stocks options or are anyway involved in the securities’ industry, you have most likely felt this pain. The deep gut-wrenching pain of seeing all of your profits disappear and your screen have so much red on it, you forget what the color green even looks like. I want to share with you how I have dealt with each of these stages after I have taken a loss and how so many other professional traders have reacted. Firstly, taking a loss shouldn’t be a financially crippling event. You should be using smart risk and reward ratios when trading and ALWAYS USING A STOP LOSS. This is not a negotiable aspect of trading or investing. You can either lose a defined amount with a stop loss or hold that loss and watch your investment go to zero. Denial The first stage after taking a loss is denial. Thinking and saying to yourself “It’s just a small loss. It’s certain to come right back up.” Let me be the first and hopefully the only person to tell you this: it doesn’t have to come back up. That stock doesn’t have to do anything you think it should. It can go to the moon or straight to zero and there is not a thing you can do to stop it. If you are using a stop loss, you are going to know if you are right or wrong about the trade very quickly. If you’re not using a stop loss…then RIP to your account. Don’t be a bag holder and not take a small loss compared to a large one. Denial is hard to conquer and the hardest to adapt to. Just remember that a loss can happen, it will happen and most stock don’t recover. Take your small loss and move on. Anger After that loss comes anger and frustration. You’re mad at yourself for taking the trade. You’re mad at the company whose stock it is. Furthermore, you’re mad at your broker. You are just plain mad at everything. The best thing to do at this stage is to accept accountability for what happened. 99.99/100 errors are caused by the user when it comes to trading. I have only had a broker mess up one of my trades and I gave them all my info, and they corrected the error. Still lost money on the trade because of how trading inherently is. Here is the thing, there is no reason to get upset over a trade, the next one is around the corner, and it could be a great winner. Take the loss as an opportunity to pump the brakes and cool off. Clear your head, come back laser focused. Bargaining No matter what God you pray to or who you beg there is nothing that is going to change the outcome of that trade. A loss is a loss. The best thing to do at this stage is formulating a plan for the next time you take a loss. This way you have a guide on how to react and how to feel about your trading. Bargain with yourself, reward yourself for making smart trades by sizing up your trades. Make sure that the plan is reasonable and actionable and be honest with yourself when you fail. Depression People make mistakes, especially in finance. Just look at the hedge funds that shorted GME stock. Those are “professionals” managing billions of dollars, and they lost a ton of money being dumb and shorting a sub $10 stock. Here is the thing, I’ll repeat it until I turn blue in the face: losses happen. Don’t beat yourself up. Move on. Live to trade another day. The most important thing to remember is to learn from what happened and let it burn a lesson in your mind. Success is made from failure. Fail small and fast. Acceptance This is the stage everyone should start with hen they take a loss. The best traders in the world have no emotion when it comes to taking a loss or making a profit. They recognize what it is and repeat what they know will work. Trading is meant to be boring. The moment it gets exciting you need to take a look at your risk. Be boring and repeat what works is the main point. Double down on what makes you money and cut off what makes you lose money. If you are losing every trade, stop trading and reevaluate your strategy. IF you are winning a bunch of trades, size up and bring home some cash.
Editors' picks
CEducation
by The_Level_Two
96
Looking at my portfolio and correlationsThis is not really my thing but I want to look into these correlations First half of my risk is in crypto and they are all correlated. Is it also correlated to the S&P? Not really. On the way down the S&P did not drag Bitcoin along. There is no correlation at all with gold, all good. The FX pairs are a bit correlated but half size each (for now). So apart from the cryptos my porftolio is diversified. I mixed up the "long" term and short term but hey anyway each half (short & long) of it is checked. The short term is all diversified the long term crypto heavy. Soybean has no correlation whatsoever also. With cryptos I should stop adding and just ride it for now. To be real honest I don't have double clip on Bitcoin but maybe closer to 4 😀 My risk manager doesn't care he knows I am the chosen one. On the way up I should secure some profit before I re-enter with bigger risk. I really want to hit it. But ye going through this I may be a bit overexposed. Let's make sure it goes up before going mental. Just like with the S&P it's almost touching ath, it can smell it. I really got 1.5 "big" bet long term, well if it goes to the sky it will be big. And then a small short term portfolio, not really using advantage of Ray Dalio magic growth via many uncorrelated positions here. Except I take what the market gives I'm sure some people think they can coinflip trades and the "power of diversification" will magically earn the profit. Basically 3 positions short term it is fine, hopefully 1 of them wins. TO THE MOON!
CME_MINI:ES1!
by MrRenev
1
Anything Can Happen - a visual reminder to protect your capital30 minutes is all it took. It looks even better (worse) on the 5min chart. If you want to succeed as a trader, or as an active investor, you must trade and invest in ways that protect your capital. The unexpected will occur, and when you lose money it should be easy to accept the loss. This is a horrifyingly perfect image to remind us to think through our trading decisions with the "what if" scenario covered.
NYSE:GMEEducation
by OptionsRising
27
FTSE and all Stocks - The second leg lower is about to startHello all I've been watching this since March 2020 where the first leg started to retrace - after having moved back up through the past 9 months and then consolidated the past 2 around the 61.8% to 78.6% fib retrace area I expect early next week for the Head and Shoulders to be fully printed and based on Fibonacci extension, I expect price for the FTSE to drop below 4000, potentially near 3600. Lets see what happens, however I wont be buying stocks for a long time. Trade safe Duncan
OANDA:UK100GBPShort
by DividendDuncan