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The 20 Trading Lessons from Top Traders I have read a lot of trading books since the time I started trading my own account and the one book that really helps me out and “I wish I’ve read this one first” – is Market Wizards Interview with Top Traders by Jack D. Schwager. Here’s the list that struck me most that I’d like to share: “Early trading failure is a sign that you are doing something wrong; it is not necessarily a good predictor of ultimate potential failure or success.” – Michael Marcus “If you don’t stay with your winners, you are not going to be able to pay for the losers.” – Michael Marcus “Liquidating positions is the way to achieve mental clarity when one is losing money and confused regarding market decisions.” – Michael Marcus “Being a successful trader also takes courage: the courage to try, the courage to fail, the courage to succeed, and the courage to keep going when the going keeps tough.” – Michael Marcus “Place your stops at a point that, if reached, will reasonably indicate that the trade is wrong, not at a point determined primarily by the maximum dollar amount you are willing to lose per contract. If the meaningful stop point implies an uncomfortably large loss per contract, trade a smaller number of contracts.” – Bruce Kovner “The times when you least want to think about trading – the losing periods – are precisely the times when you need to focus most on trading.” – Richard Dennis “Everybody gets what they want out of the market.” – Ed Seykota “It is a happy circumstance that when nature gives us true burning desires, it also gives us the means to satisfy them.” – Ed Seykota “Frankly, I don’t see markets; I see risks, rewards and money.” – Larry HIte “ I have two basic rules about winning in trading as well as in life: 1. If you don’t bet, you can’t win. 2. If you lose all your chips, you can’t bet” – Larry Hite “In my judgment, all traders are seekers of truth.” – Michael Steinhardt “The more disciplined you can get, the better you are going to do in the market. The more you listen to tips and rumors, the more money you’re likely to lose.” – David Ryan “When the market gets good news and goes down, it means the market is very weak; when it gets bad news and goes up, it means the market is healthy.” – Marty Schwartz “Learn to take losses. The most important thing in making money is not letting your losses get out of hand. Also, don’t increase your position size until you have doubled or tripled your capital. Most people make the mistake of increasing their bets as soon as they start making money. That is a quick way to get wiped out.” – Marty Schwartz “The best traders are the most humble.” – Mark Weinstein “You have to learn how to lose; it is more important than learning how to win.” – Mark Weinstein “Most traders who fail have large egos and can’t admit that they are wrong. Even those who are willing to admit that they are wrong early in their career can’t admit it later on. Also, some traders fail because they are too worried about losing.” – Brian Gelber “You are never really confident in this business, because you can always be wiped out pretty quickly. The way I trade is: Live by the sword, die by the sword. There is always the potential that I could get caught with the big position in a fluke move with the market going the limit against me. On the other hand, there is no doubt in my mind that I could walk into any market in the world and make money.” – Tom Baldwin “Clear thinking, ability to stay focused, and extreme discipline. Discipline is number one: Take a theory and stick with it. But you have to be open-minded enough to switch tracks if you feel that your theory has been proven wrong. You have to be able to say, my method worked for this type of market, but we are not in that type of market anymore.” – Tony Saliba “ How do you judge success? I don’t know. All I know is that all the money in the world isn’t the answer.” Tony Saliba There’s still a lot of golden information that I want to write in here – for ourselves and for everyday reading so as to keep us aligned with our trading goal, but I prefer to encourage you to read the book.
NASDAQ:QQQEducation
by blue039
2
USDJPY: Slight Bullish Bias This Week? (19/09/2024)As of September 19, 2024, traders are closely monitoring the USDJPY pair for potential bullish momentum. Several fundamental factors and market conditions indicate that the pair might see a slight upward bias this week. Let’s dive into the key drivers affecting the USDJPY price action. 1. Diverging Central Bank Policies One of the primary influences on USDJPY is the monetary policy divergence between the Federal Reserve (Fed) and the Bank of Japan (BoJ). - Federal Reserve’s Stance: As we move into the week, the market expects the Fed to maintain a hawkish stance or at least keep interest rates elevated. Although there’s some speculation about a possible pause in future rate hikes, the Fed's priority remains controlling inflation. This higher interest rate environment in the US makes the US dollar more attractive, pushing USDJPY upwards. - Bank of Japan’s Ultra-Loose Policy: In contrast, the BoJ continues its ultra-loose monetary policy, aiming to stimulate Japan’s sluggish economy. Despite rising inflation in Japan, the BoJ has shown little inclination to raise rates aggressively. This Interest rate differential between the US and Japan tends to weaken the yen, giving a bullish outlook for USDJPY. 2. Risk Sentiment in Global Markets Risk sentiment plays a crucial role in the movement of USDJPY. When global markets are in a risk-off mode, investors tend to flock to safe-haven assets like the Japanese yen, strengthening it. However, recent global economic data and financial news have maintained a somewhat stable risk appetite, leaning towards a risk-on environment. - US Economic Data: Recent reports from the US, such as better-than-expected retail sales and strong labor market data, continue to support the narrative of economic resilience. This fuels demand for the dollar and supports USDJPY’s bullish momentum. - Global Geopolitical Risks: While geopolitical tensions in regions like Europe and the Middle East may inject some volatility, there hasn’t been a major shift toward a risk-off sentiment that would heavily favor the yen. For now, dollar strength seems to dominate. 3. Japanese Economic Conditions Japan’s economy continues to struggle with low growth despite rising inflation. The BoJ’s consistent approach to stimulus, combined with the government's push for wage growth, has not yet translated into significant yen strength. Additionally, trade deficits in Japan, exacerbated by higher import costs, have weighed on the yen’s valuation. Without a major shift in BoJ policy or a significant improvement in Japan's economic performance, the yen will likely remain under pressure, keeping USDJPY on a slightly bullish path. 4. US Bond Yields US Treasury yields are another major factor driving the USDJPY. Higher US bond yields, often seen in response to tighter monetary policy and strong economic data, make the dollar more attractive to foreign investors. The upward trajectory of bond yields has been a persistent theme, reinforcing dollar strength. If this trend continues through the week, we can expect additional support for USDJPY. 5. Technical Indicators Looking at the technical analysis for USDJPY, the pair has been trading near key resistance levels in recent sessions. If the pair breaks above these resistance zones, we could see further bullish momentum. - Key Support and Resistance Levels: The 145.00 level has been a psychological support level for USDJPY, while 148.50 serves as resistance. Should the pair break beyond this resistance, it could trigger more buying pressure, pushing USDJPY higher. Conclusion: USDJPY’s Slight Bullish Bias In conclusion, the USDJPY pair is expected to exhibit a slight bullish bias this week, primarily driven by: - Monetary policy divergence between the Fed and BoJ. - Favorable US economic data and rising Treasury yields. - Limited economic growth in Japan, with persistent trade deficits. - Stable global risk sentiment supporting the dollar over the yen. Traders should keep an eye on US bond yields, Fed comments, and any sudden shifts in risk sentiment or geopolitical events, as these could influence USDJPY’s trajectory throughout the week. --- Keywords: - USDJPY forecast - USDJPY bullish bias - USDJPY analysis September 2024 - USDJPY technical analysis - USDJPY key drivers - USDJPY trading strategy - USDJPY and Federal Reserve policy - USDJPY support and resistance levels - USDJPY risk sentiment - USDJPY bond yields impact
Short
by PERFECT_MFG
SOL USD CRYPTO: RETEST OF NECKLINE...PERFECT SETUP About 8 hours ago I put out an alert on Bitcoin breaking out in a Head's 'N' Shoulders Pattern. Well now it's SOL's turn and like something out of a trading manual its setup is perfect. I believe it is on the 15m chart & its just about ready to breakout. easy_explosive_trading * Trading is risky. This is for illustration purposes only. But here at easy_explosive_trading, we took this trade & entered a buy-order about 3 hours ago.
EIGHTCAP:SOLUSDLong
by Easy_Explosive_Trading
Is the S&P 500's Bull Run a Mirage?The S&P 500's recent all-time high has ignited a frenzy of optimism among investors. However, as the market reaches unprecedented heights, questions arise about the sustainability of this bull run and the potential risks lurking beneath the surface. While the allure of soaring stock prices is undeniable, investing in a market at its peak carries inherent risks. The concentration of returns within a few dominant stocks (such as Nvidia, Alphabet, and Amazon), coupled with the potential for geopolitical shocks and economic downturns, introduces significant uncertainty. The dot-com bubble serves as a stark reminder of the market's cyclical nature and the perils of overvaluation. To navigate this complex landscape, investors must adopt a balanced approach. Diversification, coupled with a keen understanding of economic indicators, geopolitical events, and corporate news, is essential for making informed decisions. By recognizing the potential pitfalls and taking proactive measures to mitigate risk, investors can position themselves for long-term success in the ever-evolving market. The S&P 500's future remains uncertain, but by approaching the bull market with a critical eye and a strategic mindset, investors can navigate the challenges and capitalize on the opportunities that lie ahead.
CBOE:SPXShort
by signalmastermind
Hidden Costs of Trading You Must Know In this educational article, we will discuss the hidden costs of trading. 1 - Brokers' Commissions Trading commission is the brokers' fee for opening a trading position. Usually, it is calculated based on the size of the trade. Though most of the traders believe that trading commissions are too low to even count them, the fact is that trading on consistent basis and opening a couple of trading positions weekly, the composite value of commissions may cut a substantial part of our profits. 2 - Education Of course, most of the trading basics can be found on the Internet absolutely for free. However, the more experienced you become, the harder it is to find the materials . So you typically should pay for the advanced training. Moreover, there is no guarantee that the course/coaching that you purchase will improve your trading, quite often traders go through multiple courses/coaching programs before they become consistently profitable. 3 - Spreads Spread is the difference between the sellers' and buyers' prices. That difference must be compensated by a trader if one wished to open a trading position. In highly liquid markets, the spreads are usually low and most of the traders ignore them. However, being similar to commissions, spreads may cut the substantial part of the overall profits. 4 - Time When you begin your trading journey, it is not possible to predict how much it will take to become a consistently profitable trader. Moreover, there is no guarantee that you will become one. One fact is true, you should spend a couple of years before you find a way to trade profitably, and as we know, the time is money. More time you sacrifice on trading, less time you have on something else. 5 - Swaps Swap is the fee you pay for transferring a position overnight . Swap is based on a difference between the interests rates of the currencies that are in a pair that you trade. Occasionally, swaps can even be positive, and you can earn on holding such positions. However, most of the time the swaps are negative and the longer you hold your trades, the more costly your trading becomes. The brokers' commissions, spreads and swaps compose a substantial cost of our trading positions. Adding into the equation the expensive learning materials and time spent on practicing, trading becomes a very expensive game to play. However, knowing in advance these hidden costs, the one can better prepare himself for a trading journey.
OANDA:XAUUSDEducation
by VasilyTrader
5
What's unraveling the economic powerhouse of Europe?Once a stalwart of European stability, Germany's economic engine is facing unprecedented challenges. This deep dive explores the intricate factors driving its recession and the far-reaching implications for the continent. Geopolitical tensions and supply chain disruptions have wreaked havoc on Germany's economy. The ongoing conflict in Ukraine, coupled with the lingering effects of the COVID-19 pandemic, has disrupted energy supplies, increased production costs, and hindered global trade. Rising interest rates and weak global demand have further exacerbated the downturn. The European Central Bank's aggressive monetary tightening to combat inflation has made borrowing more expensive for businesses and consumers, dampening investment and spending. Meanwhile, a global economic slowdown, driven by factors such as rising interest rates, geopolitical tensions, and inflation, has reduced demand for German exports, a crucial driver of its economy. The consequences for Germany and Europe are profound, with potential for increased unemployment, slower growth, and political instability. As Germany is one of Europe's largest economies, its downturn has a ripple effect on other countries in the region. The recession could lead to job losses, as businesses cut costs to weather the storm, exacerbating social tensions and increasing the burden on government welfare systems. Slower growth in Germany will contribute to slower growth in the Eurozone as a whole, limiting the ECB's ability to raise interest rates further and potentially hindering its efforts to combat inflation. Economic downturns can often lead to political instability, as governments face increased pressure to implement policies that alleviate economic hardship. This could lead to political gridlock or even changes in government. Can Germany weather this storm? Join us as we delve into the complexities of this economic enigma and explore potential paths forward.
XETR:DAXShort
by signalmastermind
Domino Effect -Australia's Exposure to a Sino-Taiwanese ConflictA potential armed conflict in the Taiwan Strait poses significant geopolitical risks with profound economic implications for Australia. As a key member of the Five Eyes intelligence alliance, Australia’s strategic interests are deeply intertwined with regional stability. The potential impact of such a conflict on the Australian economy. Economic Impact Assessment A Sino-Taiwanese conflict would likely trigger severe economic disruptions for Australia. The nation's reliance on China as a primary trading partner, particularly in the mining and agricultural sectors, would exacerbate the negative impacts. Key sectors and their potential implications are outlined below: Mining: As a dominant contributor to Australia's GDP and a significant component of the S&P/ASX 200, the mining sector would face substantial challenges. Disruptions to iron ore and coal exports to China would negatively impact major mining companies such as BHP Group and Rio Tinto, collectively representing approximately 5% of the index. Agriculture: Given China's status as a key market for Australian agricultural products, the sector would experience significant revenue losses. This would affect companies involved in grain, meat, and dairy production, although their overall weight in the S&P/ASX 200 is relatively smaller. Tourism: The tourism industry, still recovering from the COVID-19 pandemic, would face renewed challenges due to decreased international travel. Qantas Airways, a prominent component of the S&P/ASX 200, would be directly affected by declining passenger numbers. Financial Services: The broader financial system would likely experience increased volatility, credit rating downgrades, and elevated insurance claims. Australia's major banks, including Commonwealth Bank, Westpac, and ANZ, which collectively hold substantial weight in the S&P/ASX 200, would be exposed to these risks. Implications for the S&P/ASX 200 The S&P/ASX 200, as a market-capitalization-weighted index, would undoubtedly reflect the economic challenges posed by a Sino-Taiwanese conflict. Given the significant weightings of mining and financial services in the index, a sharp decline is highly probable. The severity and duration of the market downturn would depend on the scale and duration of the conflict. Historical Precedent While direct comparisons are limited due to evolving economic structures and geopolitical contexts, historical data from World War II and the Korean War provide valuable insights. Both periods were characterized by significant market volatility, with sharp declines followed by varying recovery periods. Conclusion A Sino-Taiwanese conflict presents substantial economic risks for Australia, with the S&P/ASX 200 serving as a barometer of these challenges. The potential impact on the Australian economy and financial markets underscores the importance of robust risk management strategies and contingency planning.
ASX:XJOShort
by signalmastermind
India's Nifty 50: A Rising Star in a Geopolitical StormIn 2023, the Indian stock market, represented by the Nifty 50 index, has emerged as a standout performer. Outpacing its U.S. counterpart, the S&P 500, by a significant margin, the Nifty 50 has captured the attention of global investors. Several factors converge to explain this impressive performance, with geopolitical tensions playing a pivotal role. The Great Manufacturing Shift: India as a Prime Beneficiary One of the most compelling narratives driving India's economic ascent is the global shift in manufacturing. As the world grapples with heightened geopolitical risks, particularly the escalating tensions between the United States and China, businesses are seeking to diversify their supply chains. India, with its vast market, skilled workforce, and government's "Make in India" initiative, has emerged as a compelling alternative to China for many multinational corporations. Diversification of Supply Chains: Companies like Apple and Google are actively exploring manufacturing operations in India to reduce their reliance on China. This trend extends to various sectors, including pharmaceuticals, automobiles, and textiles. Government Support: India's government has proactively created a conducive business environment through infrastructure development, tax incentives, and ease of doing business reforms. These efforts have boosted investor confidence and accelerated the country's industrialization process. India's Economic Characteristics and Domestic Consumption India's strong domestic consumption and the rise in manufacturing are major factors in the country's economic expansion. The demand for goods and services is increasing due to the growing middle class and increased disposable incomes. The approach of consumption-led growth enhances the resilience of the Indian economy by acting as a buffer against external shocks. India's economy boasts several key characteristics: Rapid Growth: India has consistently been one of the fastest-growing major economies globally. Large Domestic Market: With a population of over 1.4 billion, India offers a vast consumer base, driving domestic consumption. Young Population: A large and young workforce provides a demographic dividend, fueling economic potential. IT and Services Dominance: The IT and services sector is a major contributor to India's GDP, with companies excelling in software development, outsourcing, and business process management. Agricultural Importance: Agriculture remains a crucial sector, employing a significant portion of the population, although its contribution to GDP is declining. Challenges and Opportunities While India's economic trajectory is promising, it faces challenges such as: Infrastructure Gaps: Improving infrastructure, including transportation, energy, and digital connectivity, is essential for sustained growth. Poverty and Inequality: Addressing poverty and reducing income inequality remains a priority. Education and Skill Development: Investing in education and skill development is crucial to enhancing human capital. Environmental Concerns: One of the main challenges is balancing environmental sustainability with economic growth. Despite these challenges, India offers immense opportunities for businesses and investors: Large Consumer Market: The growing middle class presents a lucrative market for consumer goods and services. Favorable Government Policies: The government's focus on economic reforms and ease of doing business creates a conducive environment for investment. Digital Transformation: India's rapid adoption of digital technologies presents opportunities in e-commerce, fintech, and digital payments. The Road Ahead While the Nifty 50's performance has been impressive, challenges remain. Inflationary pressures, global economic uncertainties, and the potential impact of a prolonged geopolitical standoff could pose risks. However, India's demographic dividend, its digital transformation, and its focus on renewable energy offer promising avenues for long-term growth. Continued focus on infrastructure, education, and skill development will be crucial for realizing its full potential. In today's complex geopolitical environment, India seems well-placed to take advantage of the opportunities arising from global supply chain disruptions. The performance of the Nifty 50 index reflects India's increasing economic influence and its potential to emerge as a global manufacturing and consumption hub.
NSE:NIFTYLong
by signalmastermind
England's Economic Crossroads and Banking ResilienceEngland’s economy is facing a complex array of challenges, driven by domestic social unrest, geopolitical tensions, and evolving labor dynamics. Recent riots, sparked by both marginalized Muslim communities and extreme right-wing groups, highlight deep-seated socio-economic issues. These tensions have been exacerbated by international events, such as the October 7, 2023, incident in Israel, which reverberated through England's Muslim community. In addition to these social and geopolitical pressures, the economic indicators present a mixed picture. Inflation, unemployment, and a housing crisis have strained the economy, while regional conflicts, such as the Middle East and Russia-Ukraine wars, pose further risks to energy prices, trade, and security. Amidst this backdrop, the Bank of England’s recent declaration that top UK lenders can be dismantled without taxpayer bailouts is a significant milestone. This statement reflects the progress made since the 2008 financial crisis in enhancing the resilience of the UK banking system through stricter capital requirements and resolvability assessments. However, emerging risks such as climate change, cyberattacks, and global financial interconnectedness require continuous vigilance and robust regulation. Inspiration and Challenge: As traders and investors, understanding the interplay between social dynamics, geopolitical tensions, and financial stability is crucial. England’s current economic state challenges us to think beyond traditional metrics and consider the broader implications of regional conflicts and social unrest on financial markets. The resilience of the UK banking system offers a glimmer of stability, but it also calls for ongoing scrutiny of emerging risks. Engage with this analysis to deepen your strategic insights and navigate the complexities of the global economic landscape.
FTSE:UKXShort
by signalmastermind
Title: Geopolitical Tempest Navigating the EUR/ILS Currency PairThe EUR/ILS exchange rate is a crucial indicator of Israel's economic and geopolitical stability in relation to the Eurozone. Recently, it has been under substantial pressure due to escalating tensions between Israel and Iran. This dynamic interplay of geopolitical risks and economic factors creates a complex environment for the Israeli shekel (ILS) against the Euro (EUR). Key Points 1. Geopolitical Background: The conflict between Israel and Iran, fueled by nuclear ambitions, proxy wars, and direct military engagements, has deep historical, religious, and political roots. 2. Economic Implications: Investor confidence, economic sanctions, and increased military expenditures are critical factors influencing the ILS. Geopolitical instability can reduce investor confidence, cause capital flight, and strain Israel's fiscal budget. 3. Impact on EUR/ILS Exchange Rate: Geopolitical risks lead to a flight to safety, with investors seeking stable currencies like the Euro. Inflationary pressures from supply chain disruptions and military spending can erode the ILS, while the Bank of Israel's interventions may be limited by persistent tensions. Conclusion The Israel-Iran conflict casts a long shadow over the Israeli economy and the strength of the ILS. As geopolitical tensions persist, the EUR/ILS exchange rate is likely to experience significant volatility. Investors and policymakers must remain vigilant, monitoring developments closely to mitigate risks and capitalize on opportunities in this uncertain environment.
Long
by signalmastermind
The Fear Index and Geopolitical TensionsIn an era marked by geopolitical tensions and economic volatility, the fear index emerges as a crucial tool for traders seeking to navigate turbulent markets. This article delves into the historical significance of the fear index, exploring pivotal moments like the Cuban Missile Crisis, the 1973 Oil Crisis, and the 2008 Financial Crisis. By understanding how investor psychology and market sentiment intertwine with the fear index, traders can gain a competitive edge. In today's world, marked by unprecedented geopolitical tensions, understanding the fear index has never been more crucial. As global conflicts escalate, the fear index provides essential insights into market sentiment and helps risk managers navigate through these turbulent times. A Geopolitical Powder Keg We are witnessing a convergence of significant geopolitical events: Russo-Ukrainian Conflict: Ongoing hostilities have far-reaching implications for global stability. Middle Eastern Volatility: Potential for a full-scale war involving major powers like Israel, the U.S., and Iran. Sino-Taiwanese Tensions: Threats of a Chinese invasion of Taiwan with severe repercussions for the semiconductor industry and global economy. Pro-Palestinian Protests: These could escalate into widespread violence, further destabilizing the political and economic landscape. The Role of the Fear Index The fear index, often measured by market volatility, acts as a barometer of investor sentiment in the face of these geopolitical risks. By closely monitoring the fear index, risk managers can gain early warnings of market disruptions and develop strategies to mitigate potential crises. Historical Context Historical precedents show how the fear index responds to geopolitical tensions: Cuban Missile Crisis (1962): Stock markets plummeted due to heightened anxiety, underscoring the impact of geopolitical events on market sentiment. 1973 Oil Crisis: The Arab-Israeli War and subsequent oil embargo led to global economic downturns, reflecting the fear index's potential spike during such crises. 9/11 Attacks: The fear index surged as markets reacted to the unprecedented nature of the terrorist attacks. 2008 Financial Crisis: Global financial instability caused a dramatic increase in the fear index, providing early warnings of the impending market collapse. COVID-19 Pandemic: The pandemic's economic halt saw the fear index spike, signaling early disruptions. Methodologies for Calculation Understanding how the fear index is calculated enhances its utility: Volatility Indexes (e.g., VIX): Measure implied market volatility. Sentiment Analysis: Assess sentiment through news and social media. Investor Behavior Metrics: Analyze options trading and margin debt levels. Combining these approaches offers a comprehensive view of market fear in response to geopolitical tensions. The Psychological Impact Investor behavior during geopolitical crises is influenced by: Loss Aversion: Heightened sensitivity to potential losses. Herd Mentality: Following the crowd amplifies reactions. Availability Heuristic: Overestimating the probability of easily recalled events. Strategic Applications Risk managers must adopt a holistic approach, integrating the fear index with geopolitical and economic data to develop robust contingency plans. While the fear index can't predict crises' exact timing or magnitude, it provides valuable early warnings to prepare for potential disruptions. Conclusion The fear index is indispensable for navigating today's geopolitically charged environment. By monitoring market sentiment and identifying emerging trends, you can protect your investments from unforeseen events and build resilience. Embrace the insights offered by the fear index to stay ahead in these volatile times.
CBOE:VIXLong
by signalmastermind
Gold: A Strategic Asset in an Uncertain WorldGold's appeal as a safe-haven asset has been reinforced by recent geopolitical tensions. This analysis explores the factors driving gold prices, including geopolitical risks, economic conditions, and the role of gold ETFs. Gold has proven its resilience as a safe-haven asset during times of uncertainty. Geopolitical tensions, particularly in the Middle East, have fueled demand for gold. While economic factors also influence gold prices, the metal's role as a portfolio diversifier remains compelling. Consider gold ETFs for convenient exposure. Gold serves as a valuable safe-haven asset, particularly during times of geopolitical instability. Key Points: Geopolitical Risks: The article highlights the increasing geopolitical tensions globally and their impact on financial markets. The Middle East, in particular, is identified as a region of significant concern. Gold as a Hedge: Gold's unique characteristics, such as liquidity, store of value, and diversification benefits, make it an effective hedge against geopolitical risks. Economic Factors: While geopolitical factors are emphasized, the analysis acknowledges the influence of economic conditions, including interest rates and inflation, on gold prices. Investment Vehicles: Gold ETFs, like the SPDR Gold Shares ETF (GLD), are presented as convenient options for investors seeking gold exposure.
AMEX:GLDLong
by signalmastermind
Platinum A Complex Equilibrium - Unraveling Market DynamicsThe platinum market is currently navigating a complex equilibrium shaped by a confluence of factors. A persistent supply deficit, driven largely by robust industrial demand, particularly from the automotive sector, has exerted upward pressure on prices. However, the specter of electric vehicle adoption, a long-term threat to platinum demand in the automotive catalyst market, introduces a countervailing force. This dynamic interplay between supply-demand fundamentals and technological disruption creates a challenging environment for market participants. Moreover, the geopolitical landscape, particularly in South Africa, the dominant platinum producer, adds an additional layer of complexity. Labor unrest, infrastructure challenges, and broader political instability in the region can significantly impact supply and, consequently, prices. The broader global geopolitical environment also plays a role, as tensions between major world powers can create uncertainty and market volatility. Despite these headwinds, the potential for inventory depletion and ongoing industrial demand suggest that the market may continue to exhibit bullish tendencies. Yet, the magnitude and timing of these bullish impulses will be contingent upon the evolving dynamics of supply, demand, and geopolitical risks. As such, market participants must adopt a nuanced perspective, carefully considering both the short-term and long-term implications of these interconnected factors. Essentially, the platinum market is a complex system characterized by non-linear relationships and feedback loops. Understanding these intricacies is crucial for developing effective investment and trading strategies.
FX_IDC:XPTUSDLong
by signalmastermind
How to Apply a Position Size Calculator in Forex Trading In this educational article, I will teach you how to apply a position size calculator in Forex and calculate a lot size for your trades depending on a desired risk . Why do you need a position size calculator? Even though, most of the newbie traders trade with the fixed lot , the truth is that fixed lot trading is considered to be very risky . Depending on the trading instrument, time frame and a desired stop loss, the risks from one trade to another are constantly floating . With the constant fluctuations of losses per trade, it is very complicated to control your risks and drawdowns. A lot size calculation , however, allows you to risk the desired percentage of your capital per trade , limiting the maximum you can potentially lose. A lot size is calculated with a position size calculator . How to Measure Lot Size for Trades? Let's measure a lot size for the following trade on EURUSD. Step 1: Measure a pip value of your stop loss. It is the distance from your entry level to your stop loss level. In the example on the picture, the stop loss is 35 pips. Step 2: Open a position size calculator Step 3: Fill the form. Inputs: Account currency, account balance, desired risk %, stop loss in pips, currency pair. Let's say that we are trading with USD account. Its balance is $10000. The risk for this trade is 1%. Step 4: Calculate a lot size. The system will calculate a lot size for your trade. 0.28 standard lot in our example. Taking a trade on EURUSD with $10000 deposit and 35 pips stop loss , you will need 0.28 lot size to risk 1% of your trading account. Learn to apply a position size calculator. That is the must-use tool for a proper risk management.
Education
by VasilyTrader
8
Democrats Return to the Election Battle with Harris!Democrats Return to the Election Battle with Harris! Financial Markets Confused! Kamala Harris, with the support of 68% of Democrats, is closer to competing against Trump. The Vice President of the United States, Kamala Harris, has surpassed the necessary support threshold to secure the Democratic Party's presidential nomination. This positions her as the likely candidate from the Democratic Party to compete against the Republican nominee, Donald Trump. While it seemed the Democrats were nearing the end of their journey and with Biden's withdrawal it was expected that the road would be clear for the Republicans, Harris's candidacy has created new challenges for the crypto market. It is now difficult to predict whether Trump will win the upcoming US election, as Harris could secure the votes of African Americans and women. Additionally, it seems some people who did not want to choose between Trump and Biden now have a new candidate to vote for. With all these issues, it seems the crypto market has lost the excitement of Trump's potential presidency and is pricing current events with a sense of confusion! Technical Analysis of Bitcoin Bitcoin, after reaching $68,500 and creating a double top at this level, has returned to $66,500. The presence of negative divergence and the uncertainty of Trump's victory due to Harris's nomination by the Democrats are market risks, while the launch of Ethereum ETFs is a positive market event today. Losing $66,500 could lead to further decline to $63,800 and $62,500.
Short
by Cryptowormshot
Bitcoin Is Trading At The Support As Stocks PullsbackHey traders I this video I will take look at NVIDIA which I think it can be moving into a correction and can possibly be headed down for deeper prices. So if today major stocks indicies will have second red day in a row, then possibly next week there can be more risk-off. In such case I think its better to wait on any long ideas on cryptos (short-term), and wait on much better timing for potential long entires, which can be maybe after summer, or during elections when normal markets tend to be in bull run. Additionally, any rate cut later this year can be alos supportive for stocks and other assets. When I look at bitcoin, I think that 50k is very good potential support; if it gets there. Have a nice weekend. Grega
BITSTAMP:BTCUSD
by ew-forecast
Growing Small Accounts Without High Risk### Growing Small Accounts Without High Risk #### What to Avoid: Do not rush to make massive gains in either pips or % returns. Do not open yourself to large risk in hopes of equally large returns or profits. Do not assume taking small risk-defined trades will not grow your account. Do not sacrifice trading equity due to poor planning or lack of planning. #### What to Aim For: Determine how to realistically anticipate a favorable reward-to-risk model. Learn to respect the risk side of trade setups more than the reward. Identify trade setups that permit three reward multiples to one risk or higher. Frame good reward-to-risk setups that have little impact if unprofitable. ### The Reality of Reward to Risk Ratios | Winrate | Minimum Ratio | |---------|---------------| | 75% | 0.3 : 1 | | 60% | 0.7 : 1 | | 50% | 1 : 1 | | 40% | 1.5 : 1 | | 33% | 2 : 1 | | 25% | 3 : 1 | If your winrate is 50%, you only need 1:1 Risk to be profitable.
Education
by SerenityEquity
WHAT IS TRADING ACCOUNT DRAWDOWN | 3 Types Of Drawdown Explained In my videos, I frequently use the term "trading account drawdown ". Many of you asked me to explain the meaning of that term and share some examples. What is Trading Account Drawdown? The account drawdown is the highest observed loss from the highest value of the deposit to the lowest value of the deposit at a certain period of time. Imagine you started to trade with 10,000$ account. At the end of the year, your account size reached 15,000$ . However, at some point through the year the deposit value dropped to 6,000$ . It was the absolute minimum for the one-year period. At some point, your net loss was -4,000$ or 40% of your account balance. The account drawdown is 40% . ❗️Knowing the account drawdown is very important for the risk assessment of the trading strategy. Usually, 50% and bigger drawdown signifies an extremely high risk. 3 Types of Drawdown 1. Current drawdown - a temporary drawdown associated with the negative total value of opened trading position(s) at present. Once you start trading with 10,000$ deposit, you open several trading positions. Being opened, with the constant price movements, your potential gains fluctuates from positive to negative. For example, with 3 active trades : EURUSD ( -500$ at present); GBPUSD ( +200$ at present); GOLD ( -100$ at present) Your current account drawdown is -400$ or 4% of your deposit. 2. Fixed drawdown - the negative value of the closed trading position(s) at present for a certain period of time. While some of your trades remain active, some are already closed . Imagine the same deposit - 10,000$ . On Monday you opened 6 trades, 2 still remain active ; 4 are already closed . Your total loss from your closed trades is -500$. Your fixed Monday's drawdown is 5%. 3. Maximum Drawdown - the maximum observed loss from the highest value of the deposit before a new maximum is reached. Starting to trade with 10,000$ you are already trading for 5 years . Your account were growing rapidly and at some moment it reached 25,000$ . Then the recession started. You faced a dramatic loss of 12,500$ before you started to recover. That was the maximum observed loss for the period. Your maximum account drawdown was 50% . ❗️Different types of drawdown give a lot of insights about a trading strategy. Its proper assessment will help to spot a high risk strategy and to find a conservative one. Constantly monitor your account drawdown and always check the numbers. What is your highest account drawdown?
OANDA:XAUUSDEducation
by VasilyTrader
1
US30 (Technical and Geopolitical Weekly Analysis)Technical and Geopolitical Analysis: The previous weekly chart indicated a strong upward movement, but the market is now poised to react to geopolitical pressures, particularly the tensions between China and Taiwan, expected to intensify this week and continue into next month. Technical Analysis: Bullish Scenario: If the price stabilizes above 38,700, it is likely to move between 38,700 and 40,050. Any sustained stability above 40,005 will signal a continuation of the bullish trend, potentially reaching 40,970. A retest at 40,005 could occur before the bullish trend resumes. Bearish Scenario: The bearish trend will be confirmed if the price closes below 38,700 on at least the daily chart, targeting 37,990. The next significant support level is 36,460, which is strong support for this year. Key Levels: Pivot Line: 38,700 Resistance Prices: 39,500, 40,005, 40,970 Support Prices: 38,300, 37,990, 36,460 The expected trading range will be between the support at 37,990 and the resistance at 40,050.
OANDA:US30USDShort
by SroshMayi
Trading Psychology: How to trade economic data.As traders, one of the biggest challenges we face is deciding what factors to consider when opening a trade: should we base ourselves on charts, news, macroeconomic data? Many opt for a combination of all these elements, and although all traders go through the same stages, there are different routes to success. The problem with following the crowd is that you end up doing exactly what everyone else is doing. The solution: forge your own path, with all the challenges this entails. Most traders follow the news, analyze the data and then compare them with the charts to try to determine the best entry point. And as if that were not enough, they often seek the opinion of other online traders to confirm their decision. However, consulting the opinions of others can be counterproductive, as they can alter, for better or worse, any personal opinion about the analysis we are conducting. We always tend to think that others know more than us and that if they think differently, it must be for some reason and that we will not be the ones who are right. This is just another example of market psychology and the human tendency to always follow the crowd, regardless of whether it is right or not. I believe that in order to make a living from trading, research must start with yourself, it is essential. And this is necessary to confirm or refute the information with which the market bombards us every minute. You need very intense training and experience to make a living from trading. How many traders trade intraday based on economic calendar data? How many really make money? It’s not worth it. Aware of the multitude of traders who congregate around the platform at key times, market makers have all kinds of tricks. Their favorite; the sweep. Up, down and both sides at the same time. Is a mental stop better? In my case, no. I don’t know how mentally strong you are, but the word says it all: mental-stop. When you expose yourself to letting the mind think, you are entering dangerous psychological terrain and it is very difficult, if you are losing, to close with discipline in each and every operation. Notice that I say in each and every one, because with not respecting a single one and that the price does not return in that operation to the entry point, it will be your elimination as a trader. Therefore, anything that can cause a loss is worth discarding. Greed doesn’t let you, we know that with a data in favor of our position you can make a lot of money but if the data is contrary and also forms a gap, no one will save us. And let’s not talk about if you are leveraged. Being leveraged and having the position run against you is one of the hardest experiences a trader can have. Seeing how your capital is destroyed at forced marches, how losses increase, how you are not able to close because you expect a recovery to do so is dramatic. Realizing that first loss, which at first seemed big to you and now doesn’t seem so much. You would “kill” to lose only that. Then, once you are losing a lot you will no longer be able to close. There comes a time when you assume it and let the losses run as far as they go. You have accepted it. You risk the account in the hope of recovering. This means hours of waiting for the desired recovery. In addition, the market is very rogue. After the fall comes the rebound, usually up to half. You get the idea that it is going to recover completely and instead of closing you hold on to see if the moment comes when you no longer lose anything. The market will make you believe that this is going to happen. You may even average (add more positions) so that the recovery is faster and by the way, if the price goes beyond where you have opened the first operation, you even come out with profits. But, as I say, the market is very cruel and when you start to dream and have hope again, it turns around and falls with even more force if possible, crushing your account and destroying your morale. The result we all know. If the account does not have enough capital to withstand the bleeding, margin call will “come to see us”. And if it does, it will take you days, weeks, months or even years to recover your capital, if you do. Days, weeks, months and even years without liquidity to do what you like the most, trading. In view of this, stoploss, as well as avoiding any situation that makes you lose is more than justified.
CRYPTO:BTCUSD
by CryptoCoBit
Risk Management Guide for Beginner TradersHello traders. In this video, I delve into the fundamental principles of risk management tailored specifically for beginner traders entering the world of financial markets. I start by emphasizing the importance of understanding risk and its implications on trading outcomes. By setting clear goals and objectives, traders can align their risk management strategies with their investment aspirations. We explore practical risk management tools such as stop loss orders, which act as a safety net to limit potential losses on trades. Calculating position sizes based on risk tolerance and stop loss levels ensures traders are not overexposed to any single trade. Continuous monitoring and review of trading performance enable adjustments to risk parameters in response to changing market conditions. I also shared some tools that can be used to help make the process of calculating risk efficient and accurate. By mastering these risk management techniques, beginner traders can safeguard their capital and embark on their trading journey with confidence and resilience.
Education
by Pips4Breakfastx