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Risk Management

How to become a Day Trading GODMany aspiring traders give up within six months of starting because they enter the market with unrealistic expectations, fueled by movies like "The Wolf of Wall Street," thinking they'll get rich quick. However, success in trading requires persistence and consistency. It's important to understand that overnight success is rare. Stick to your trading plan and established rules, and over time, trading will become part of your identity as a professional trader. What sets professionals apart is their dedication to tasks that others overlook. They diligently backtest, maintain trading journals, and forward test their strategies. However, there's one additional thing that most professionals do: they find one setup that works for them, their holy grail. With traders already having a low edge in the markets, respecting and following your trading system is crucial for profitability. Every time your setup appears, take the trade without hesitation. Losses are inevitable in trading, but how you handle them defines you as a trader. Effective risk management is essential. Each trade should have a defined stop loss and profit target, with a risk/reward ratio of at least 1:2. This means that even if you lose two trades at $100 each and win one trade, you will break even. Profitability doesn't solely rely on a high win rate. The market is constantly changing. In 2020, everything seemed to go up, and inexperienced traders could make substantial gains by gambling on any coin or small-cap stock. However, that's not the case now. It's important to adapt your strategy and plan to the changing market conditions. Stay nimble and be willing to adjust your approach as needed.
Education
by FortuneAI
BAD trading habits and How to Overcome themAs a professional trader, I've observed that 99% of traders experience losses not because of their skills or knowledge, but due to their bad trading habits. Today, we'll address some of these habits and propose effective fixes to overcome them. 1) FOMO (Fear of Missing Out): Problem: The fear of missing out on potential gains prompts traders to enter trades impulsively. Fix: To combat FOMO, it's crucial to close social media platforms like Twitter during trading sessions. Avoid getting caught up in unnecessary information that triggers FOMO habits. 2) Fixing Consistency: Problem: The temptation to increase risk after a series of wins in pursuit of larger profits driven by greed. Fix: Establish a consistent approach by risking a predefined dollar amount on every single trade. This consistency is key to long-term success and helps avoid irrational decision-making. 3) Invalidations: Problem: Switching between hard and soft stop losses, hesitating to close trades quickly when using a soft stop loss. Fix: Keep track of 100 trades and note the type of stop loss used for each. Evaluate and analyze which type yields the best results, allowing you to refine your strategy accordingly. 4) Hoping: Problem: Placing limit orders at support/resistance levels, hoping for a reversal without a systematic method of execution. Fix: Develop a systematic approach to trade execution based on statistical analysis. Enter trades with confidence, relying on your well-defined strategy rather than relying on hope. 5) Trading without Stop Loss: Problem: Holding losing trades with the hope that the price will eventually recover. Fix: Cut losses early by implementing proper stop loss levels. Focus on trades with good risk-reward setups, aiming for higher profits. Remember, the trend is your friend, and it's best not to go against it.
Education
by FortuneAI
1
It’s Not That You’re Not ProfitableI've made this serious mistake when I started out trading. I skipped from strategy to strategy, methodology to methodology. I've tried almost everything. Signals, account management, mentorships, PAMM, expert advisors, bots and paid indicators. Everything seems to be profitable, until I put my hands onto it. Many times, I found some profitability. After depositing a bit more capital, I encountered large losses. Why? 95% of the traders will not be profitable. Will I be in this statistic? I don't think so. I'm pretty sure I'm better than others! Realization Of The Issue The big issue I was facing at the beginning was searching for the holy grail. I don't have a plan. I switched from A to B within a few months of losing money. I was so fixated on getting rich quick through trading. Everything on the marketing material targeted at my desires. Survival, enjoying life, comfort and the perceived status of being rich and successful. I was invested in the topic of personal development and personal finance at that time. While I was doing my goal settings, I realized that I have been losing close to 5 figures over a course of 2 years. This is bad for me because of 2 key problems. I wasn't growing my net worth. I was losing net worth. At the rate I'm going, I will be working till I'm 65 before I can retire. I gave myself another chance to do things properly. I read a lot of trading books, joined mentorships and watched a lot of YouTube videos. I decided to give myself one last chance and one more year. I started to see changes. Human Are Emotional We are all emotional. You are greedy. You fear drawdowns. Did you look at the posts people are posting on social media? Consistent high RR trades that yield them thousands of dollars a day. You aspire to be like them. You want that kind of strategy. You want to learn from them. But have you think about this. If they can produce such consistent high return results, why would they want to teach you how to trade? They can simply trade for big institutional players who will pay them large amount of money. They don't need to pitch to you to buy their courses and mentorship for a mere $99. This doesn't add up. Trading Plan If you fail to plan, you plan to fail. The more I think about this, the more I got attracted to this quote. This is true in life, and even more relatable to traders. If you have a trading plan that gives you 3 RR per trade, stick to it. I know that it feels good to hit a homerun trade. Your trading plan says 3 RR per trade, but you dragged your TP to 10 RR. When the trade ends up in a loss, you scold the market. You could have taken the full profit at 3 RR if you followed your rules. You deviate from your trading plan. You don't trade based on your backtesting results. You then say that your trading strategy doesn't work. Sounds logical? Without a plan, you're just going in circles like what I did at the beginning. Circling from strategy to strategy, and methodology to methodology. Without a plan, you're going to encounter losses after losses. You won't be getting your 6 figure income. You won't get to enjoy life. You won't get to live comfortably. You won't get to be seen as a successful person. What you will get to do is to work for a 9 - 5 until you're 65. Achieve Consistency You have to follow your trading plan. But before you even have your trading plan, you have to backtest. You have to have a least 100 trades to say that your trade can give you a certain result. The below tells you what's the win rate needed to be at least break even. If your strategy has a RRR of 1:3, aim for at least 30% win rate. Anything above 30% is a very profitable strategy. When you follow your plan step by step, you take all the same trades. You leave no room for emotions and irrational behaviors. You wait for the same confirmation and set up every single time. You don't need to care what other people say. You don't have to care about what people's analysis are. You do you own analysis. Different people view the market differently. You can be trading on the lower timeframe, but they are trading on the higher timeframe. We see different things. Remember that anything can happen in the market. It take just one big institutional player to take you out, or to swing your trade to your target. Profitability Increasing your profitability comes from 2 angles. 1. Increasing your win rate 2. Don't take bad trades It seems counter-intuitive to say that you can achieve more by doing less. With a trading plan and a trading journal, you are able to see the pattern over large number of trades. Analyze them and see why do some trades go wrong. Are there similar conditions that happened to your losing trades? You must be thinking. "But I don't want a strategy that gives me 2 RR. That's not enough. I need higher RR strategy.". Assuming you're risking 1% a trade, with an above breakeven win rate, you will profit 2% for a winning trade. If you're trading a $200,000 account, that is a $4,000 profit. Is that not enough? Not many people earns this much money in a month. This is what I'm aiming to achieve. If I can scale my accounts even more, I need even lesser profits a month to achieve a $4,000 target per month. Holy Grail I gave myself one last chance to trading. You can call it luck, I call it perseverance. It was a really good mentorship. I learnt a lot from someone who has been there done that and is trading for a living. I had my profitable trading strategy, but it requires me to trade on the 1 minute timeframe. It’s profitable but I haven't got my consistency in the live market. It was a low win rate and higher RR strategy. I traded live account straight away. Attempted prop firm, got a 200k funded account and blew it before I got my first payout. I discarded it. My mentor was scalping on the seconds chart. Thinking that sitting down in front of the chart for 1 to 2 hours, I can finish my trading day. I found consistency, but I was lazy and got distracted easily. I soon discarded it after trading live for awhile. (What was I thinking. Where did my motivation went to?) Another member shared a strategy with decent win rate and high RR. I spent a lot of time backtesting, live trading and saw some results. However, my psychology wasn't good enough to handle the drawdown. it’s not a good strategy for prop firm challenges too. So I gave up AGAIN. Went back and gave myself another try. I used my original trading strategy. I tweaked it such that I will be trading on the higher timeframe to accommodate my lifestyle. I backtest a lot of course. Finally traded live, and found consistency. This led to my first payout with decent looking equity curve. I took a long route to come back to where I’ve started. I've finally found my holy grail. Framework This is the framework of how I trade. 1. Markup your chart. Find the area of liquidity, point of interests, liquidity grab, direction of the market and demand and supply zones. Do your multi-timeframe analysis here. Higher probability trade is to buy at discount levels, and sell at premium levels. 2. Set alert at your point of interests (Where to buy and sell) 3. Write down your analysis on the chart. If the price hits your point of interest, I would expect X to happen. When X happens, I will do Y. 4. When the alert goes off, go back to your chart and see if your analysis in step 3 still holds. 5a. If yes, mark out roughly where your stop loss and profit target will be. See if the RR is decent enough. If yes, then wait for the price to give you a confirmation. If no, either wait for a refined entry on the lower timeframe, or to wait for another confirmation. 5b. If not, repeat step 1. 6. Wait for price to give you a confirmation. Calculate the lot size you need to open based on your risk management and place your order. 7. Once you're in the trade, you can either forget about your trade and let it hit TP or SL, or actively manage your position. This will depend on how you backtested your strategy. 8. Once your trade hits the TP or SL, journal it. Record your entry, take profit and stop loss. Take screenshots. Record your emotions and feelings before, during and after the trade. This is how a trading plan should look like. A clear plan of action and train of thought. There should be actions taken before, during and after the trade. Do not follow strictly if your trading strategy is different from me. You need to change it to fit your strategy and lifestyle. Mentorship Having someone who has been there done that before is important. A mentor can provide valuable advice that can define and reach your goals faster. A mentor will provide feedback and support you. A mentor will remove all the unnecessary information that you don't need. A mentor must be able to look at any strategy and tell you what's not working and what you should stop. A mentor should not force you to use his strategy. He must be able share his mistakes. He must be able to show you solid trading results via 3rd party verification. 3rd party verification should be Myfxbook or Fxblue, not screenshots or excel worksheet. He should walk you through development as a person outside of trading. Stay consistent. Stay safe. Success is just around the corner. If you enjoy such content, feel free to click the like button and subscribe for more. Let me know what are your thoughts and learning points in the comments below so others can learn from you too! Please let me know what kind of topic you would like to read next :) Happy weekend!
TVC:SPXEducation
by Keeleytwj
22
Qualities of a BAD Trader1) Does not Journal They do NOT journal and proceed to continuously do the SAME thing day in day out expecting different results each time 2) FOMO Proceeds to see someones open position on social media Form a bias from that and open a trade based upon the individuals setup without any research 3) NO reasoning Proceeds to stutter and talk nonsense if asked about reasoning for entering their trade 4) Does not know Risk management Basis their risk off hunch and does not have consistent risk management within their trading They always go "all in" with max leverage 5) Too attached They are extremely attached to the $ figure , now this is a little more subjective I tend to find that the less attached you are to the actual $ figure the better you generally will be as a trader 6) Worry about the wrong things One question you should ask yourself is simply. Is this going to help me make more money and become a better trader? If the answer is NO, then don't focus on it Ive seen too many times people worrying about DRAMA and being a journalist If you do any of one of these try to stop them It won't be easy but incremental changes are easier than changing everything at once Try knock off one of these bad habits per week or even month and the incremental changes overtime will add up to something larger Stay Tuned and See you next Time!
Education
by FortuneAI
1
4 tips to make trading less stressful RIGHT AWAY1. Reduce position size The biggest stressor for traders is losing money. If you're worried about how much you could potentially lose then using smaller position sizes can help you stay level headed Even the best traders don't have a 100% hit rate. Losses will happen 2. Find high quality set ups If nothing jumps out at you the first 10 seconds you look at a chart then there's likely nothing there Rather than force it, map out and/or set some alerts at key areas and come back to it later Search for another chart that's more clear 3. Stop phone trading when you're busy with other things When you're out with friends/family, at a wedding or in the middle of something is not a good time to be trading Trading is hard enough already. Don't handicap yourself by only being 30% focused Bad things will happen 4. Reduce your leverage High leverage causes losses to happen fast & liquidations even faster ESPECIALLY ON ALTCOINS 100x liqs on alts are only a 0.75% move which can happen rapidly Trading isn't gambling Reduce leverage + widen stops to reduce likelihood of stop outs
Education
by FortuneAI
6
Things I wish I knew my first year of tradingI breakdown some common trading misconceptions and how I conquered them 1) There is no "best strategy" Strategy is one relatively small part of trading success, most strategies can be profitable other variables such as discipline and emotional control will determine whether you see success. 2) Get comfortable losing If you are comfortable losing (within the set rules/parameters of your strategy) it will make the aim of becoming more consistent much easier. Your next trade is less likely to be destroyed by PTSD of losing and have less clouded judgment. 3) More trades = More money = False More time than not taking fewer trades (depending on your strategy and general frequency of trades) will mean you are likely to be more selective and thus make more money. Aim for quality over quantity. 4) Focus on controlling emotions How I solved this was by journalling, evaluating where I was wrong or making any errors generally made it easier for me to put actions and steps into place to stop them from happening again. 5) Learning proper risk management Simple enough, without this you will lose all of your money.
Education
by FortuneAI
5
Your Trading Plan Is Everything You NeedImagine yourself having the perfect trading plan. It suits your psychological needs and lifestyle. Yet, you're not confident in your strategy. Do you follow your trading plan? Or do you close winners early and take a full 1R loss on losers? This is what happened to me. Why Trading? I took up trading because it sounds like a very lucrative side hustle. Learning how to achieve a 1% profit can scale my earnings. A 1% gain on a $1,000 account is $10, but the same 1% gain on a $100,000 account is $1,000. This offers significant leverage of my time. This means that if I succeed in building trading as a career, I do not have to survive on a 9 - 5 job, paying me for 8 hours of my day. I can enjoy life wherever and whenever I want. I can take a day trip to Japan for some sushi and be back home at night in my bed to sleep. I want to be a very successful person, having everything I want, not worrying if I can afford to buy the latest iPhone. The Plan So my career plan is to build up my prop firm funded account into the 7 digits. Get consistent 4 digits payout per month. Build my personal trading account from the prop firms profits. I built my plan so that I will not deviate from what I want to achieve. I have to follow a step by step method to achieve what I want. There are also contingency plan. For example, if I do not succeed in trading, at least I have my day job as a safety net. Survival comes first. If you worry about putting food on the table or paying your bills, you should refocus your priorities. This is exactly the same as a trading plan. Your trading plan is same as your career plan. You have your entry criteria. When price gives you confirmation, you take a trade. When price does X, you close the trade. When price does Y, you move your stop loss. When price does Z, you take partial profits. You have a step by step method to guide your trades. Be honest with yourself. How many times have you broken your trading rules this month? How many times have you deviated from your trading plan this month? My number is 3 this month. Why? Greed. Overconfidence. Hopeful. I was greedy as my trades have tight stop losses and I was expecting price to do what I expected it to do. Everything lined up. Multi-timeframe directions, liquidity, and volume all pointed to a high probability trade. It's near a high-impact news event. My position was in a drawdown. 2 minutes before the news, my trading plan indicated that I should close the trade now. I closed 2 eyes. Went down to the 5 seconds chart. It's 08:29:50. The price is starting to turn volatile. My heart is pumping from all the adrenaline. 08:29:59.. 08:30:00. The price shot up taking me out. What happened next, is as you guessed it. Price went up too fast. Slippage occurred, resulting in a loss of -3% instead of the expected -0.5% if I had followed my trading plan. Yes I still do make mistakes. Compounding Effect This 3% loss might seem small to some of you. 1 or 2 winning trades can cover this loss. Imagine if I took 3 of such trades in a week. That's already close to a 10% loss. This will be a huge deal to your trading psychology. The risk of these high-risk trades might seem worthy to you. But they can't give you enough assurance that you will achieve positive results in the long term. There are a lot of uncertainty during red folder news release. Price moves very fast, and might take you out before moving in your direction. Spread increase and could take you out even before the price hits your stop loss. You are not following your trading plan by taking such trades again and again. You are building very bad habits. You are developing your attitude and habit in a wrong way. You're training yourself to take trades based on gut feeling and emotions. You should be using a solid trading plan which has proven (I hope) to be profitable. You can only achieved this through many hours of backtesting. Habits are hard to change. By developing your trading attitude in the wrong way, it will be hard for you to be profitable. You're relying on luck in trading, and luck is not a decent trading strategy nor trading plan. Bad trading habits can lead to serious consequences. You could over-risk, over-leverage and even over-trade. You will take on more losses than you wanted. All these compounds your trading account in the wrong direction. What you want is to compound positive actions and bring your account equity upwards. Without positive actions, you are reinforcing negative actions and attract losses. Deviation From Your Trading Plan Taking trades that deviate from your trading strategy is a no go, even if it ends up being a winner. This could be a lucky trade. Luck is not a sustainable trading strategy. What if you did this again and the trade turns out to be a winner again? It will inflate your ego and lead to more of such trades. When you luck runs out, you will find that you lose more than you win. To be successful, you have to identify bad trades and cut them from your trade executions. Many times your trading results will improve by eliminating all the bad trades. Finding ways to improve your risk-to-reward ratio or your win rate is not the only way. You build success through consistency and repetition. If you’re not putting in the work day in and day out, you will not succeed. To succeed, you have to do it even when no one is watching you. You have to follow strictly to your trading plans. You have to do it when you do not have an accountability partner. One day, you will get your “overnight success” because you’ve been putting in all the work consistently. No one says it’s going to be easy. Transformation The day that my trading changed was when I started to plan out what I want to do with my life. I'm 30 this year. How many more decades do I have left? I do not want to slog for another 30 years working in a 9 - 5. I do not want to squeeze in a crowded public transport every morning to go office to do work that I could have done at home. I have my personal finance all planned out. Next, I planned out my trading career path. Knowing my personal finance ins and outs are the most important criteria in setting my path. I know on average how much do I need a month to survive and for entertainment. Let's say I need $3,000 a month to have a decent standard of living. I know my trading strategy can yield me an average of 2% a month. If I work backwards, I would need a $150,000 account. This can be done through funded prop firm accounts. I gave myself 1 year to get a funded account, and to get my first payout. I started small. Started out with $10k challenges. The only rule I have, is to follow strictly to my trading plans that I've backtested for hundreds of hours. I gave myself permission to fail. I allocate enough budget for my challenges every month. I failed many challenges. I passed some, but did not manage to clear phase 2 challenges. I tried and tried again. 3 May 2023 is the day of my first prop firm payout. It's only $200 post-profit split. Yet, this shows me what I can achieve by following my trading plans. This shows me what I can achieve by taking the same trades over and over again. Again, I'm still doing the same things over and over again, following my trading plan. Happy to share that I have another profit split incoming in June next month. Trading Psychology “There are two kinds of people: Those who think they can, and those who think they can’t, and they’re both right.” - Henry Ford Things will never be easy. Think about it. If you want 6-pack abs, it’s going to take you hard work and consistency over a long period of time. People want it to be easy. They crave for instant gratification. The reason why 6-pack abs is so sought after is because it’s hard to get. If having 6-pack abs is easy to get, then everyone can get it. If everyone has it, then it will lose its prestige and value. Same goes for trading. If trading was so easy like following a trading plan, then everyone will be able to be profitable. Remember that 95% of the traders lose money. Constructing your trading plan might be easy, but executing is hard. What will you do if you're on a losing streak? Will you have the mental strength to execute the same trades that fit your trading plan? Do you doubt your trading strategy? How A Trading Plan Should Look Like 1. Markup your chart. Mark the areas such as liquidity zone, point of interests, liquidity grab, direction of the market and the demand and supply zones. Do your multi-timeframe analysis here. Remember that high probability trade is to buy at discount levels, and sell at premium levels. 2. Set alert at your point of interests (Where to buy and sell) 3. Write down your analysis on the chart. If the price hits your point of interest, I would expect X to happen. When X happens, I will do Y. 4. When the alert goes off, go back to your chart and see if your analysis in step 3 still holds. 5a. If yes, mark out roughly where your stop loss and profit target will be. See if the RR is decent enough. If yes, then wait for the price to give you a confirmation. If no, either wait for a refined entry on the lower timeframe, or to wait for another confirmation. 5b. If not, repeat step 1. 6. Once price gives you a confirmation, calculate the lot size based on your risk management. 7. Once you're in the trade, you can either forget about your trade and let it hit TP or SL, or actively manage your position. This will depend on how you backtested your strategy. 8. Once your trade hits the TP or SL, journal it. Record your entry, take profit and stop loss. Take screenshots. Record your emotions and feelings before, during and after the trade. Mentor Creating a trading plan is 1 part of the trading puzzle you need to piece together. Trading strategy and psychology are other important components. They will make or break you, and your trading account. I have various mentors at different stages of my trading career. They helped me in their own ways, and shaping who I am today. I can confidently say that without either one of my mentors, I will not have found any successes in trading yet. I'd still drift around, looking for the next holy grail. Stay consistent. Stay safe. Success is just around the corner. If you enjoy such content, feel free to click the like button and subscribe for more. Let me know what are your thoughts and learning points in the comments below so others can learn from you too! Please let me know what kind of topic you would like to read next :) Happy weekend!
CRYPTO:BTCUSDEducation
by Keeleytwj
2
Secret of Success in Trading: Patience, Emotions, Psychology I vividly remember how I started to trade 8 years ago, how I was learning, and the things that I was doing. Contemplating my old self, I notice a dramatic shift in my mindset in regard to trading. Staring at the charts and desiring to make money on price action, I wanted to become a consistently profitable trader. Making the priorities, I decided to sacrifice my time on studying technical analysis, totally neglecting trading psychology and risk management. Learning different trading strategies, I always came to the same result: the account went blown and nothing seemed to work. Strategies of fancy traders on YouTube, strategies from best-selling books on Amazon, nothing could produce any penny. Not giving up and pursuing my ultimate goal, I came to the conclusion that I set my priorities absolutely incorrectly. To be honest, I always thought that trading psychology (like psychology in general) is s*cks. Moreover, I considered risk management to be kind of obvious, banal topic not deserving much attention. Learning risk management techniques, applying them in day trading, I finally saw a glimmer of hope. Reading a dozen of books on trading psychology, contemplating my mistakes, and observing my behavior I noticed so many wrong, incorrect things that I did on a daily basis. With time and practice, my mindset shifted. I realized that most of the strategies that I applied and that seemed losing to me, in fact, were decent. It turned out that mastery of technical analysis is not enough for profitable trading. Instead, that is just a tiny part of what must be learned. Now, when my students ask me about the most important things to learn & study in trading, I always say: trading psychology and risk management go first, technical analysis is the secondary. ❗️ Do not neglect these topics and give them due attention. They are an essential part of your success in trading. 🤔 Do you agree with the pyramid that I drew?
FOREXCOM:XAUUSDEducation
by VasilyTrader
7
3 Essentials to Start TradingA very warm welcome to this video which is all about the 3 Essentials to Start Trading . This is for all of you out there that may be new to trading, that haven’t got a feel for the market yet and haven’t got started and maybe you’re asking yourself ‘What is it I need to do now to get myself up and running?’ We found out of the 20,000 plus traders that we’ve mentored over the time that we’ve been running live trading seminars and running these start up basecamps, what generally tends to happen is you get traders who want to get up and running, want to start now and want to know what they need to do? So we broke it down into three essential things that you need. The first one is knowledge . You need some knowledge of what you’re going to be doing in the market. In a nutshell, what that means is you’re going to need to know exactly what to do, when to do it, what the pips pricing means, when to buy and sell, you need a profitable trading strategy – all of these things are knowledge. Knowledge can be acquired in many different ways. One of the things that we recommend strongly is reading the right kind of books. There is a fantastic list of books that you can get and these are available on our Facebook page. You’ll be able to see the types of books that we recommend you read. The other thing to be very careful of is the wealth of information out there on the Internet. What I would strongly recommend is to find a trading mentor that can guide you through on a step by step basis in a custom environment that is suited around you, ideally on a one to one basis. That would be the best way to learn and be mentored in the financial markets. You need to have the right knowledge but don’t get immersed in all of the knowledge available on the Internet because there is so much junk out there. Having seen 20 years in the markets between myself and Thiru we’ve seen all of these traders that have come to us and they’ve got all of these deeply ingrained habits in them which are so hard to shift and they think that they’ve accumulated so much knowledge but actually a lot of it is just completely useless. So you really need to work with someone who can give you the guidance that you need. That’s very important and I strongly recommend that. So that’s knowledge. Get around the right people, the right guidance and the right types of books. The second thing that you need is a broker account . With a broker account what you need there is a facility to be able to buy and sell the market. Let’s say, for example, you have invested already £15,000 into a trading account. That trading account needs to be with a broker, ideally regulated in the country in which you’re trading. If you’re not sure about how to select a broker account, check out my video on how to select a broker where we talk about three essential things that you should look for personally when a selecting a broker. That will give you the facility to be able to hit the trades, to be able to enter the market, and buy when your strategy and your set up gives you that signal to do so. Once you’ve accumulated the right knowledge you need the right type of broker account. The final thing that you need on your journey is a mentor . This is so critical and I can’t overemphasise how important it is to have the right trading mentor because the right trading mentor will make the difference between being hugely successful and just feeling demotivated. A mentor is someone who has been there, done that and got the T-shirt! That is, they have an established track record, they’re transparent in their dealings, and they’ve got logs that can verify everything and you’re comfortable working with them that they will push you to get you to the next level of goals. It is really important to work with a mentor. There are two things actually that have a deep impact on our lives. One is the books that we read, this falls under knowledge, and the second is the people that we associate ourselves with or the company we keep. In this case, that’s your mentor. You need to have someone around you who has been there, done that and who is actually living the knowledge and not just talking about it. Look for people who walk the walk. If you have these three things, you have all the tools you need to get up and running and to be successful in the markets and ingrain the right types of habits and that’s what we’d love to see for you. So give us your comments, give us your feedback and keep in touch. Until the next time, as we always say, stay disciplined, follow your plan and Trade Like a Master. Team at MastertheMarkets
Education
by masterthemarkets2010
5 Easy Steps for Beginners to Start Trading in Forex 📝 Being a beginner, it is natural for you to feel overwhelmed when you first start forex trading. But that doesn’t mean that you should shy away from the market. By following the 5 steps listed below, you can start your trading journey in currencies in a smooth and efficient manner. 1. Get to know what drives the market 📈 When it comes to trading in currencies, the first ever step that you would need to make as a beginner is educate yourself about the market. Although the forex market works in a very similar fashion to the stock market, the factors behind the movement of the currencies tend to be different. 2. Choose the right broker 🤝 Selecting the right forex broker is as important as getting to know how to trade in currencies. Not all brokers offer the same level of services or are always reliable. Therefore, it is essential for you to spend some time looking into the various brokers offering forex trading services. An ideal forex broker should have an easy account opening process, a simple trading platform, offer exceptional customer support and have low transaction costs. While evaluating brokers, make sure to look into their downtime frequency. 3. Establish your financial goals and targets💰 The next step is to work on your financial goals and targets. Introspect and ask yourself what you hope to achieve by trading in currencies. Also, before you actually buy and sell currencies, it is a good idea to first determine your financial targets. For instance, you can set a target for each forex trade you make or a target for each day or month of trading. Establishing these goals can make you plan your trades much better by helping you come up with a trading plan, which will ultimately make you a better trader. 4. Practice with demo (paper) trading 📃 Through extensive virtual trading practice sessions, you can quickly get the hang of currency trading and try out new trading techniques and strategies. Since you’re not really trading with real money, you don’t have to worry about losing money on trades. Instead, you can spend some quality time learning the ropes and trying to analyze the trades that you make. This can give you some much-needed perspective on how to tackle forex trading in real-time. 5. Start slow and go easy on your trades🐢 Once you’ve gotten the hang of trading in currencies on demo account, you can slowly move onto the real thing. Now, there are a few things that you should keep in mind. The forex market’s volatility tends to be quite high and can lead to wild swings in the price. Therefore, it is a good idea to start slow by using just a fraction of your total investment amount. Now that you’re aware of the 5 steps that you need to take to start trading in forex, go ahead and begin your journey. Good luck to you! Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
6
8 Trading Tips to Help You Increase Your Trading Profits Whether you are just getting started or you’ve been on your journey for a while now, you’ve probably discovered that day trading is not easy. You’re putting your hard-earned money on the line and facing new challenges daily. That said, every challenge you conquer takes you one step closer to your ultimate goal. Small behavioral changes can have profound impacts. Your goal is to minimize losses and maximize profits in order to increase your net profitability. Here are some tips: 1. Avoid Overtrading Traders are ambitious, sometimes too much so. Many traders feel the need to always be doing something. It’s important to remember that trading requires patience, and the quality of your trades is far more important than the quantity. 2. Avoid Under-trading Do you ever find a great trade setup that you don’t take action on, only to look back later and realize your idea was spot on? 3. Take Control of Your Losses As traders, we’re always focused on profits. After all, the main goal of trading is to turn money into more money. It’s easy to get carried away and forget about the very real potential for losses. In reality, limiting losses has the same net effect as increasing profits. 4. Simplify Your Approach There is an incredible amount of data available to traders in this digital millennium. This data is intended to improve our decision-making abilities, however it can also be overwhelming. 5. Trade Robotically As you begin to simplify your approach to trading, you can focus on making your strategy more robotic. The goal is to take all emotions out of trading so you can take a systematic approach to your trading. 6. Learn Your Strengths and Weaknesses Becoming a successful trader requires introspection, self-analysis, and evolution. Simply put, you need to analyze your own behavior and look for areas of improvement. 7. Double Down on What’s Working Learn to double down on areas of strength. Focus your efforts to trading activity that yields the highest rewards. 8. Don’t be Afraid to Go Back to Square One If you find yourself in a rut, don’t hesitate to go back to basics. In the trading world, a simple piece of advice can be a game changer. We’ve all heard quotes, lessons, or tips that have elevated our trading to new levels. What’s the best trading tip you’ve ever received? Please, support my work with like and comment! Love you, my dear followers!👩‍💻🌸
Education
by AnabelSignals
4
How To Trade For A Living?Have you ever thought what is it like to be living life without a day job? I'm sure many of you have the same experiences as me. Let's take a trip down the memory lane. A life without a day job. That's nice. You don't have to wake up at 7am to prepare your day, dragging your feet to the washroom to washup. 7.45am you're out of your house, getting ready to squeeze in the public transport. Looking around you are people similar to you, scrolling through their phone, watching Netflix, or closing their eyes trying to get some last minute rest before the 9 - 5 grind begin. I sure think about it every time I need to go office instead of working from home. I have a dream of enjoying a life without day job, and I don't want to leave it as a dream. When I found out about trading on YouTube, I thought how easy trading was. I just need to draw some demand and supply, some trendlines and wait for breakout. Take a long or short based on the confirmations given and I'll be rich. Next moment, I'm in the live market with my $500 account buying and selling 10 lots of forex pairs. I got lucky on my first few trades, turning that $500 into $1,000. I feel like a god. This is so easy. I'm gona quit my day job in a few months time. What happened next is as you guessed it. I blew up the account with a few losses. Over the next few months, I tried to take trading seriously. Absorbing all the content on YouTube every single day. Time and time again, I blew my accounts. Maybe trading isn't so easy after all. Think about how many times have you blown your accounts so far? I tried looking around, from Babypips to Reddit to Forexfactory. I was introduced to copy trading, signals, expert advisors and account management services. I tried them all, losing 5 figures of money in total in a span of 2 years. That's a story for another day. I took trading really seriously a few years back after signing up for a mentorship which took me to profitability eventually. Time To See Success? I worked hard and eventually came up with a strategy with a win rate of 34% and average return of 2.6R. I thought of borrowing money to fund my trading "career", or even just trade full-time without a safety net. My backtest results showed me an average return of 10% every single month. In my mind, I thought that I could be really rich by compounding all these profits. I can't remember why, but I realized it wasn't a good idea. It was a good decision I didn't go ahead with my plan. What I failed to considered was that a period of drawdown and losing streak can damage my trading psychology. I did not have any live experience back then. On paper it sounded nice, having an average return of 10% every month, I could literally double my account once every few months. The problem here is that like many of you, I was overly optimistic with my backtest results. You have to understand that a trading strategy accounts for only 30% of your trading career. There are actually many profitable trading strategy out there that are very simple. However, as simple as they might seem, we just like to think that the grass is greener on the other side, always wanting to find the next holy grail with high win rate and high returns strategy. Meat Of Your Trading Career If a trading strategy only accounts for 30% of your trading career, where do the other 70% go to? If you've been reading attentively, you will know that the answer is trading psychology. Trading psychology is an underrated skill that many traders and investors ignore. Even if I give you a profitable strategy, if you do not have a trained trading psychology, you will turn it into an unprofitable one and call me a scammer. Do you remember how do you feel when you lose a trade? Do you feel sad, angry, and demoralized? How do you feel when you lose 3 trades in a row? Let me ask you again, how do you feel when you lose 5 trades in a row? You start to deviate from your trading plan and start taking bigger positions, hoping that the next trade will help to cover the losses you've made. I don't have to remind you that this is a recipe for disaster. Without getting your trading psychology in tip-top condition, you are unlikely to survive trading for a living for long. Trading For A Living Trading as a full-time trader is very different compared to when you're trading with a full-time employment income. Without your day job, you do not have a steady stream of income. Let's say your monthly expenditure is $2,000 and your day job gives you a steady income of $5,000. You have nothing to worry about. You are not afraid of not able to pay your bills on time, you do not need to be afraid of not having enough money for groceries. You still have leftover money to have fun and invest. You don't stress over having a steady stream of $5,000 monthly. As long as you don't screw up, you are unlikely to get fired from your day job. Trading for a living is different. First, you have to ensure that your strategy is profitable. Second, you have to ensure that your trading psychology is strong enough for you to survive in the live market. Third, you have to ensure that your capital is large enough for you to make constant withdrawal, AND compound your trading account at the same time. Before you say "this is easy" and submit your resignation letter, please take a few moment to understand the importance of this. Are you already trading live at least for a few years? You must ensure that your trading strategy can survive all kinds of market condition - a year is a good gauge to begin with. Personal Finances Aside from your trading, it's good that you make sure you have your personal finances in order. Jumping to trading live means that you will forgo your monthly recurring income and solely relying on trading for income, which is not consistent. This is even worse if you are in a period of drawdown. Imagine you have bills to pay, mouths to feed and debt to pay off. Without any income for a few months, you will feel the stress and pressure start to kick in. This will inevitably affect your trading psychology, leading you to overtrade or even taking trades that don't fit your trading plan. The most important thing is to ensure you have at least 1 year's worth of your living expenses saved up. Of course if you can save more, it will be better. This is to cover your basic necessities and to pay off mortgage, bills and potentially any medical needs that might arise in the future. Having this stash of money in your savings account will take pressure off your back as you do not have to worry about not profiting from the market. During period of drawdowns, you will be less affected and pressured to make the "right" and "profitable" trades. Taking It "Slower" I know it's very exciting wanting to trade for a living by ditching the 9 - 5. You don't have to report to anyone. You don't have to wake up early and squeeze on the public transport. You don't have to adhere to a working culture that you don't like. I don't like to take too much risk. What I'm doing right now is on top of my 9 - 5 job, I trade. To fit my current lifestyle, I'm trading on the higher timeframe instead of scalping on the seconds or 1 minute timeframes. This allow me to still have a consistent monthly cash inflow while allowing me to trade and build my account size. At the same time, I'm also tackling funded account challenges and have been consistently getting payouts. I want to make sure that I have a decent safety net before transitioning into a full-time trader. It might take me a few more years, but I would rather not having stress and pressure which might screw up years of my progress. It is the time and freedom I will have while trading full-time that I value. If trading full-time means feeling stressed out everyday, I'd rather not do it. Taking Accountability While it's easy to say that you will be accountable for your own actions and trades, how many of you are actually taking accountability? Look at your trading journals (if you even have one), look at how many times have you deviate from your trading rules? It is not easy following your own rules when you're alone. No one is watching you. No one is there to look out for you. No one is there to encourage you. No one is there to punish you. You have to do it yourself. It is a lonely path. Having an accountability partner or a trading mentor changes everything. Not only do you have someone to talk to, but you have someone to be responsible for. Trading can be a lonely journey as you're the only one clicking on the buy and sell buttons. Talking to your mentor can help you discover flaws in your personality or habits that you never knew you had. Now, imagine you have a habit of taking trades without confirmation but you're oblivious to this. By explaining your thought process of taking a trade to a mentor, you will realize this is a problem that you didn't know you had. Just by eliminating this habit, you see your win rate increase. Profitability doesn't comes from winning more trades. Sometimes, all it takes is just to take fewer losing trades. I'm currently coaching a mentee - let's call him Andy. Andy has been trading for a few years in the indices and forex markets. Often times, he will make quite a sum of money, only to lose them all back into the market. Why? A doesn't make use of stop losses. He knows that this not a good way to trade. He knows. But no one is there to keep him accountable for not using a stop loss. He does not have a concrete trading plan to follow. Before the start of our mentorship, Andy admits that he has a gambling mindset which made him lost a lot. This is close to 7 figures of losses, which is really A LOT. Friends and families asked him to stop with his nonsense and stop dreaming about achieving financial freedom through trading. Right now, Andy has a solid grasp of technical analysis skills, as well as risk management. His trading psychology improved greatly from when I first get to know him. He is currently backtesting a profitable trading strategy with a guided trading plan. He will be trading live once he has all the necessary backtested data for him to be confident in trading the live market. Stay consistent. Stay safe. Success is just around the corner. If you enjoy such content, feel free to click the like button and subscribe for more. Let me know what are your thoughts and learning points in the comments below so others can learn from you too! Please let me know what kind of topic you would like to read next :) Happy weekend!
Education
by Keeleytwj
6
Unlocking the 6 Levels to Financial Freedom If you’re living paycheck-to-paycheck or stuck in a job you don’t love just to pay the bills, it can be easy to feel as though you’re financially trapped. But financial freedom doesn’t need to be elusive—with some focused and consistent effort, you may be able to achieve financial freedom sooner than you expected. Below, we’ll discuss the different stages of the financial freedom journey Stage 1: Dependence ✔️ The “dependence” stage of financial freedom can last from your childhood and teen years even into your adult life. If you rely on a parent, a significant other, or someone else to pay your living expenses, you’re in this stage. Fortunately, as soon as you become solvent—that is, when your income exceeds your expenses—you’ve moved on to stage 2. Stage 2: Solvency ✔️ Solvency comes when you’re able to meet your financial obligations on your own. (If you’re partnered, you can still be considered solvent even if your partner’s income is necessary to meet your total household expenses—since you’re supporting two or more people instead of just yourself.) Stage 3: Stability ✔️ You’ll transition from solvency to stability once you’ve created an emergency fund of a few months’ expenses, repaid high-interest debt, and are continuing to live within your means. While stability doesn’t require you to be debt-free—as you may still have a mortgage, student loans, or even credit card debt—you’ll have a savings buffer to ensure that you won’t go into debt if you encounter an emergency or unexpected expense. Stage 4: Security ✔️ You’ll feel financially secure once you’ve eliminated your debt (or have enough assets to pay off all your debt) and could weather a period of unemployment without worry. At this point, money is not just a safety net, but also a tool you can use to build the future you’ve been planning. At this point, you may consider investing in other assets besides retirement accounts — a taxable account, rental real estate, or even your own small business. Stage 5: Independence ✔️ Once your investment income or passive income is enough to cover your basic needs, you’ve achieved financial independence. A financially independent person can retire at any time without worrying about how to cover their costs of living, even if they may have to downsize their lifestyle a bit. Stage 6: Freedom ✔️ The line between financial independence and financial freedom can be a fine one; for many, it’s simply the difference between having enough to cover your needs or having more than enough. Once you have financial freedom, you don’t need to pinch pennies (unless you want to), and you can take more risks with money you’re willing to lose. Now that you know the stages of financial freedom, think about where you are. How much do you need to get to the next level? What do you want to learn in the next post?
TVC:GOLDEducation
by UnitedSignals
5
Common trading mistakes to avoid as a trader ❌ For new market traders, review these common trading mistakes so you can avoid emotional blunders with your investments and take advantage of psychological edges. The mechanics of trading are relatively simple. A click or two gets you into a trade, and a click or two gets you out. But the decision-making process behind those clicks is much more complex. And with complexity comes more opportunities to make mistakes that can affect your bottom line. Here are seven common mistakes that traders—both new and experienced—sometimes make. 1️⃣Mistake 1: Emotional trading/psychological trading Trading can bring out the best and the worst in us. For a trader, nothing is more frustrating than opening a long position and seeing the market drop, bringing the value of your long position to levels well below the price you bought it. The same can be said about missing out on a move in a stock that's been on your radar for a while. Anger, fear, and anxiety can lead traders to make quick and even irrational emotion-based decisions. The reality is that markets are cyclical, moving through ups and downs. Trading decisions based on emotions may not always give the results you want. Instead, take a step back and think through the situation logically. Every situation is different, and instead of buying or selling in a panic, think about how you can best manage risk. 2️⃣Mistake 2: Pulling stop orders When a position hits a stop order, it can often mean you're going to take a loss on it. Pulling—or canceling—a stop is often a subliminal attempt to avoid admitting you were wrong. After all, as long as the position is open, there's still a chance it could come back and be profitable. The problem is every 50% loss starts with a 5% loss. It's not magic; it's just math. And it only takes one small loss that turns into a big one to make a big dent in a portfolio. Losing is no fun, but it's part of trading. Being disciplined about managing stop orders may help you come back and trade another day. 3️⃣Mistake 3: Trading without a plan Trading plans should act as a blueprint during your time on the markets. They should contain a strategy, time commitments and the amount of capital that you are willing to invest. After a bad day on the markets, traders could be tempted to scrap their plan. This is a mistake, because a trading plan should be the foundation for any new position. A bad trading day doesn’t mean that a plan is flawed, it simply means that the markets weren’t moving in the anticipated direction during that particular time period. Every trader makes mistakes, and the examples covered in this article don’t need to be the end of your trading. However, they should be taken as opportunities to learn what works and what doesn’t work for you. The main points to remember are that you should make a trading plan based on your own analysis, and stick to it to prevent emotions from clouding your decision-making. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
6
Top 5 Tips to Increase Your Profits in Trading 📈 In this educational article, I will share with you very useful tips how to improve your profitability in trading the financial markets. 1. Decrease the number of financial instruments in your watch list. ⬇️ Remember that each individual instrument in your watch list requires attention. The more of them you monitor on a daily basics, the harder it is to keep focus on them. In order to not miss early confirmation signals and triggers, it is highly recommendable to reduce the size of your watch list and pay closer attention to the remaining instruments. 2. Avoid taking too many positions. ❌ For some reason, newbie traders are convinced that they should constantly trade and keep many trading positions. Firstly, I want to remind you that the management of an active position is a quite tedious process that requires time and attention. Therefore, more positions are opened, more time and effort is required. Secondly, if the newbies can not spot a good setup, they assume that they are obliged to open some positions and they start forcing the setups. Remember, that in trading, the quality of the trading setup beats the quantity. I advise taking less trades, but the better ones. 3. Let winners run if the market is going in the desired direction. 📈 Once you caught a good trade and the market is moving where you predicted, do not let your emotions close the trade preliminary. Try to get maximum from your trade, closing that only after the desired level is reached. 4. Open a trade after multiple confirmations.✅ Analyzing a certain setup remember, that more confirmations you spot, higher is the accuracy of the trade that you take. In order to increase your win rate, it is recommendable to wait for at least 2 confirmations. 5. Don't trade on your cellphone. 📱 A good trade always requires a sophisticated analysis that is impossible to execute on the small screen of the cellphone. A lot of elements and nuances simply will not be noticed. For that reason, trade only from a computer with a wide screen. Relying on these tips, you will substantially increase your profits. Take them into the consideration and good luck to you in your trading journey. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
7
MASTERING AND UNDERSTANDING CANDLESTICKS PATTERNS To understand the price and candlestick analysis, it helps if you imagine the price movements in financial markets as a battle between the buyers and the sellers. Buyers speculate that prices will increase and drive the price up through their trades and/or their buying interest. Sellers bet on falling prices and push the price down with their selling interest. ☑️ If one side is stronger than the other, the financial markets will see the following trends emerging: 1 - If there are more buyers than sellers, or more buying interest than selling interest, the buyers do not have anyone they can buy from. The prices then increase until the price becomes so high that the sellers once again find it attractive to get involved. At the same time, the price is eventually too high for the buyers to keep buying. 2 - However, if there are more sellers than buyers, prices will fall until a balance is restored and more buyers enter the market. 3 - The greater the imbalance between these two market players, the faster the movement of the market in one direction. However, if there is only a slight overhang, prices tend to change more slowly. 4 - When the buying and selling interests are in equilibrium, there is no reason for the price to change. Both parties are satisfied with the current price and there is a market balance. It is always important to keep this in mind because any price analysis aims at comparing the strength ratio of the two sides to evaluate which market players are stronger and in which direction the price is, therefore, more likely to move. ☑️ The size of the candlestick body shows the difference between the opening and closing price and it tells us a lot about the strength of buyers or sellers. 1 - A long candlestick body, that leads to quickly rising prices, indicates more buying interest and a strong price move. 2 - If the size of the candlestick bodies increases over a period, then the price trend accelerates and a trend is intensified. 3 - When the size of the bodies shrinks, this can mean that a prevailing trend comes to an end, owing to an increasingly balanced strength ratio between the buyers and the sellers. 4 - Candlestick bodies that remain constant confirm a stable trend 5 - If the market suddenly shifts from long rising candlesticks to long falling candlesticks, it indicates a sudden change in trend and highlights strong market forces. ☑️ The length of shadows helps in determining the volatility, i.e. the entire range of price fluctuations. 1 - Long shadows can be a sign of uncertainty because it means that the buyers and sellers are strongly competing, but neither side has been able to gain the upper hand so far. 2 - Short shadows indicate a stable market with little instability. 3 - We can often see that the length of the candlestick shadows increases after long trend phases. Increasing fluctuation indicates that the battle between buyers and sellers is intensifying and the strength ratio is no longer as one-sided as it was during the trend. 4 - Healthy trends, which move quickly in one direction, usually show candlesticks with only small shadows since one side of the market players dominate the proceedings. ☑️ For a better understanding of price movements and market behaviour, the first two elements must be correlated in the third element. 1 - During a strong trend, the candlestick bodies are often significantly longer than the shadows. The stronger the trend, the faster the price pushes in the trend direction. During a strong upward trend, the candlesticks usually close near the high of the candlestick body and, thus, do not leave a candlestick shadow or have only a small shadow. 2 - When the trend slows down, the ratio changes and the shadows become longer in comparison to the candlestick bodies. 3 - Sideways phases and turning points are usually characterised by candlesticks that have a long shadow and only short bodies. This means that there is a relative balance between the buyers and the sellers and there is uncertainty about the direction of the next price movement. ✅With this article we want to show you that you do not have to remember any candlestick formation to understand price. Quite the opposite. It’s very important on your path to becoming a professional and profitable trader that you start thinking outside the box and avoid the common beginner mistakes. Learn how to understand how buyers and sellers push price, who is in control and who is losing control. Please, like this post and subscribe to our tradingview page!👍
OANDA:BTCUSDEducation
by EliteTradingSignals
11
Unleashing the Power of Sentiment Indicators in TradingChapter 1: Introduction to Sentiment Indicators In the world of trading and investment, understanding market sentiment is essential for making informed decisions. Market sentiment refers to the overall attitude, emotions, and opinions of market participants towards a particular financial instrument, sector, or the market as a whole. It is a key factor that influences price movements and can provide valuable insights for traders. The role of emotions in trading is also crucial. Emotions such as fear, greed, optimism, and pessimism can significantly impact trading decisions and market behavior. Understanding and analyzing these emotions can help traders gauge market sentiment and identify potential trading opportunities. Sentiment analysis is the approach used to measure and quantify market sentiment. It involves extracting subjective information from various sources such as social media, news articles, and options markets to determine the prevailing sentiment. The goal is to understand and interpret the collective emotions of market participants. Sentiment indicators play a vital role in sentiment analysis. These indicators are tools and metrics that provide quantifiable measures of market sentiment. By incorporating sentiment indicators into their analysis, traders can gain a deeper understanding of market psychology and make more informed trading decisions. In the following chapters, we will explore different types of sentiment indicators and their applications in trading. We will delve into social media sentiment analysis, news sentiment analysis, options market sentiment, and more. Through real-life case studies and examples, we will demonstrate how traders can effectively leverage sentiment indicators to enhance their trading strategies and navigate the markets with greater confidence. So let's dive into the exciting world of sentiment indicators and discover how they can empower traders to make smarter trading decisions in various market conditions. Chapter 2: Social Media Sentiment Analysis Social media has become a powerful platform for expressing opinions and sharing information, making it an invaluable source for understanding market sentiment. Platforms such as Twitter, Facebook, and Reddit provide real-time insights into the thoughts and emotions of a wide range of market participants. Traders can harness the power of social media by analyzing sentiment expressed in posts, comments, and discussions related to financial instruments or markets. This can be done through the use of sentiment analysis tools and platforms. These tools employ natural language processing and machine learning algorithms to analyze and quantify sentiment. When analyzing social media sentiment, it is crucial to identify the influential platforms for each specific market. Different financial instruments and markets have unique social media platforms where participants share their views and opinions. For example, Twitter might be the primary platform for discussions related to cryptocurrencies, while LinkedIn could be more relevant for the stock market. By focusing on the platforms that hold more influence, traders can gain more accurate insights into market sentiment. Real-time sentiment analysis of social media involves monitoring conversations, identifying relevant keywords, and applying sentiment analysis algorithms. This process enables traders to gauge the sentiment as positive, negative, or neutral. By tracking sentiment shifts in real-time, traders can make timely trading decisions and take advantage of emerging trends or sentiment-driven price movements. To illustrate the effectiveness of social media sentiment analysis, let's explore some case studies. In one example, a trader monitors sentiment on Twitter for a particular cryptocurrency. By analyzing the sentiment expressed in tweets, the trader identifies a surge in positive sentiment accompanied by an increase in trading volume. This information serves as a signal to enter a long position, anticipating a price increase driven by bullish sentiment. The trader successfully profits from the sentiment-driven rally. In another case, a trader uses sentiment analysis of social media discussions to identify a sudden increase in negative sentiment towards a stock. Recognizing this shift in sentiment, the trader decides to exit their position or tighten their stop-loss level to protect their profits, anticipating a potential price decline. This proactive risk management based on sentiment analysis helps the trader avoid potential losses. By incorporating social media sentiment analysis into their trading strategies, traders can gain a deeper understanding of market sentiment and improve their decision-making process. However, it is important to remember that social media sentiment analysis should be used as one piece of the puzzle alongside other forms of analysis to build a comprehensive trading strategy. Chapter 3: News Sentiment Analysis News plays a significant role in shaping market sentiment. Positive news such as strong earnings reports, positive economic indicators, or favorable regulatory developments can create a bullish sentiment, leading to increased buying interest. Conversely, negative news such as poor economic data, geopolitical tensions, or negative corporate announcements can generate a bearish sentiment, resulting in selling pressure. News sentiment analysis involves analyzing the sentiment expressed in news articles, press releases, and other sources of financial news. The goal is to extract the overall sentiment conveyed by the news and understand its potential impact on market sentiment and price movements. There are various tools and techniques available for news sentiment analysis. These tools employ natural language processing and machine learning algorithms to analyze the sentiment of individual news pieces. They assign sentiment scores, such as positive, negative, or neutral, to quantify the sentiment expressed in the news. Financial news headlines are particularly important as they often convey the key sentiment of an article. Traders can focus on analyzing sentiment in news headlines to quickly gauge the overall sentiment without delving into the complete article. This allows for efficient scanning of multiple news sources and provides traders with timely insights into market sentiment. Incorporating news sentiment analysis into trading strategies can be done in several ways. Traders can use sentiment-triggered trade entries, where they initiate trades based on significant shifts in news sentiment. For example, a trader might enter a long position in response to overwhelmingly positive news sentiment regarding a particular stock, anticipating a price increase. Alternatively, news sentiment can serve as a confirming factor for technical analysis. If technical indicators suggest a bullish trend, positive news sentiment can provide additional confidence in the trade. Let's examine a case study to further illustrate the application of news sentiment analysis. Suppose a trader is analyzing the sentiment surrounding a company's earnings announcement. Through news sentiment analysis, the trader identifies a strong positive sentiment across various financial news sources. This positive sentiment indicates high market expectations for the company's earnings results. Based on this analysis, the trader decides to enter a long position before the earnings release, anticipating a favorable outcome. When the company exceeds expectations and reports stellar earnings, the positive sentiment is reinforced, resulting in a significant price increase. The trader profits from the sentiment-driven rally by making a well-timed trade based on news sentiment analysis. Chapter 4: Options Market Sentiment Options trading provides valuable insights into market sentiment as it reflects investors' expectations and sentiment towards the underlying asset. By analyzing options market sentiment, traders can gain a deeper understanding of market sentiment and potential price movements. One commonly used sentiment indicator in options trading is the put/call ratio. The put/call ratio compares the volume of put options, which give traders the right to sell an asset, to the volume of call options, which give traders the right to buy an asset. A high put/call ratio suggests bearish sentiment, indicating that more traders are betting on a price decline. Conversely, a low put/call ratio indicates bullish sentiment, with more traders anticipating a price increase. Another important indicator is implied volatility. Implied volatility is derived from options prices and reflects the market's expectation of future price volatility. Higher implied volatility suggests increased market uncertainty and potentially heightened bearish sentiment, while lower implied volatility indicates lower expected volatility and potential bullish sentiment. Traders can also analyze options-related metrics such as open interest, the skew index, and the volatility skew to gauge market sentiment. Open interest represents the total number of outstanding options contracts, providing insights into trader positioning and sentiment. The skew index measures the perceived risk of extreme price moves, while the volatility skew indicates the difference in implied volatility between options with different strike prices. To illustrate the application of options market sentiment, let's consider a case study. Suppose a trader observes a high put/call ratio in a particular stock, indicating bearish sentiment. This signals a potential price decline. The trader combines this information with other technical indicators pointing towards a bearish trend and decides to enter a short position. As the market sentiment unfolds, the stock experiences a significant price drop, validating the initial bearish sentiment and resulting in a profitable trade for the trader. Chapter 5: Fear and Greed Index The Fear and Greed Index is a sentiment indicator that measures market sentiment on a scale of extreme fear to extreme greed. It combines various factors, such as stock price momentum, market volatility, junk bond demand, and safe-haven flows, to gauge overall market sentiment. The components and calculation of the Fear and Greed Index can vary, but the index generally assigns a numerical value or category to represent the prevailing sentiment. Extreme fear levels suggest a highly pessimistic sentiment, often associated with market downturns or significant price declines. On the other hand, extreme greed levels indicate excessive optimism and potentially overbought conditions, signaling a potential market correction. Traders can incorporate the Fear and Greed Index into their trading strategies in several ways. It can serve as a confirming factor for technical analysis, where extreme fear or greed levels align with other indicators pointing towards a potential trend reversal. Additionally, contrarian traders may use extreme sentiment levels as a signal to consider taking opposite positions, capitalizing on potential market reversals. Let's explore a case study to demonstrate the practical application of the Fear and Greed Index. Suppose the Fear and Greed Index reaches an extreme greed level, indicating excessive optimism and potentially overbought conditions in the market. A trader who closely monitors the index recognizes this as a warning sign and starts analyzing other technical indicators. They observe overextended price levels, declining trading volume, and bearish divergence on oscillators. Taking all these factors into consideration, the trader decides to exit their long positions or initiate short positions, anticipating a potential market correction. As the market sentiment shifts from extreme greed to fear, the market experiences a significant decline, validating the trader's decision and resulting in profitable trades. Chapter 6: Conclusion and Future Outlook In conclusion, sentiment indicators provide valuable insights into market psychology and can significantly enhance trading decisions. By understanding market sentiment through sentiment analysis tools, traders can gain an edge in their strategies. Social media sentiment analysis allows traders to tap into the real-time opinions and emotions of market participants, while news sentiment analysis helps traders assess the impact of news events on market sentiment. Options market sentiment and sentiment indicators such as the Fear and Greed Index provide additional perspectives on investor expectations and sentiment towards the market. As technology and data analysis techniques continue to advance, sentiment analysis is expected to evolve further. Integration of artificial intelligence and machine learning algorithms can enhance sentiment predictions and improve the accuracy of sentiment analysis tools. This will empower traders with even more robust insights into market sentiment. To harness the power of sentiment indicators effectively, it is essential to integrate them with other forms of analysis, such as technical analysis and fundamental analysis. By combining multiple perspectives, traders can make well-informed trading decisions and increase their chances of success. In the ever-changing landscape of financial markets, sentiment indicators will continue to play a crucial role in understanding market dynamics. By staying abreast of emerging trends and advancements in sentiment analysis, traders can adapt their strategies and stay ahead of the curve. Ultimately, by leveraging sentiment indicators, traders can enhance their trading success and capitalize on market opportunities.
AMEX:SPYEducation
by Julien_Eche
Learn What Will Really Make You Profitable in Trading What brings the consistent profits in trading? Talking to hundreds of struggling traders from different parts of the globe, I realized that there are the common misconceptions concerning that subject. In this educational article, we will discuss what really will make you profitable in trading. 🔔The first thing that 99% of struggling traders are looking for is signals. Why damn learn if you can simply follow the trades of a pro trader and make money?! The truth is, however, is that in order to repeat the performance of a signal provider you have to open all your trading positions in the same exact moment he does. (And I would not even mention the fact that there will be a delay between the moment the provider opens the trade and the moment he sends you the signal) Because the signal can be sent at a random moment, quite often it will take time for you to reach your trading terminal and open the position. Just a 1-minute delay may dramatically change the risk to reward ration of the trade and, hence, the final result. 🤖The second thing that really attracts the struggling traders is trading robots (EA). The systems that trade automatically and aimed to generate consistent profits. You simply start the program and wait for the money. The main problem with EA is the fact that it requires constant monitoring. It can stop or freeze in a random moment and may require a reboot. Moreover, due to changing market conditions, the EA should be regularly updated. Without the updates, at some moment it may blow your account. Trading robot is the work: trading with the robots means their constant development, monitoring and improvement. And that work requires a high level of experience: both in coding and in trading. 📈The third thing that struggling traders are seeking is the "magic" indicator. The one that will accurately identify the safe points to buy and sell. You add the indicator on the chart, and you simply wait for the signal to open the trade. The fact is that magic indicators do not exist. Indicator is the tool that can be applied as the extra confirmation. It should be applied strictly in a combination with something else, and its proper application requires a high level of expertise in trading. 🍀The fourth thing that newbie traders seek is luck. They open the trade, and then they pray the God, Powell, Fed or someone else to move the market in their favor. And yes, occasionally, luck will be on your side. But relying on luck on a long-term basis, you are doomed to fail. But what will make you profitable then? What is the secret ingredient. Remember, that secret ingredient does not exist. In order to become a consistently profitable traders, you should rely on 4 crucial elements: trading plan, risk management, discipline and correct mindset. 🧠What is correct mindset in trading? It simply means setting REALISTIC goals and having REALISTIC expectations from the market and from your trading. 📝A trading plan is the set of rules and conditions that you apply for the search of a trading setup and the management of the opened position. Trading plan will be considered to be good if it is back tested on historical data and then tested on demo account for at least 3 consequent months. ✔️In order to follow the plan consistently, you need to be disciplined. You should be prepared for losing streaks, and you should be strong enough to not break once your trading account will be in a drawdown. 💰Risk management is one of the most important elements of your trading plan. It defines your risk per trade and your set of actions in case of losses. Even the best trading strategies may fail because of poor risk management. Combining these 4 elements, you will become a consistently profitable trader. Remember, that there is no easy way, no shortcut. Trading is a hard work to be done. ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
11
Day Trading Tips in 2023 📈 Day trading refers to a style of trading where the trader buys and sells a financial instrument within the same day, or even multiple times a day. With the right strategy and knowledge, you can take advantage of small price movements in the currency exchange market to earn a potential profit. However, it takes a lot of practice and dedication to become successful at day trading forex, so it's important for beginners to understand what they're getting into before starting out. In this article, we'll discuss five insider tips to help beginners start their journey in day trading forex. 1. Set Aside Funds You Can Afford to Lose 💵 Before you start trading, it is important to understand how much capital you can realistically afford to risk. Almost all successful traders say that you should never trade more than you can afford to lose. So, it is advisable for beginners to start small and gradually increase their trading capital as they gain experience. Typically, successful day traders commit no more than 1-2% of their account's balance per trade. Additionally, it is wise to earmark a surplus amount of funds that can be used solely for trading purposes, and ensure that you are prepared for any potential losses. This way, even if your trades go in the wrong direction or don't turn out as well as you expected, you won't be risking your personal savings or other investments. 2. Be Realistic With Your Strategies 💫 Day traders should be realistic when formulating their strategies, as having too high expectations can only lead to disappointment. Namely, strategies do not need to succeed every time in order to be potentially profitable, and day traders often make potential profits on approximately 50-60% of their trades. Furthermore, it is important to ensure the financial risk on each trade is limited to a specific percentage of the account and that entry and exit methods are clearly defined. By being realistic with their strategies, day traders can better manage risk while improving their chances of achieving long-term success. 3.Follow the Strategy 🎯 Once you have established a concise strategy that works for you, it is important to stick to it. Successful traders do not need to think on their feet or make decisions quickly, as they already have a specific trading strategy in place. It is essential to follow the strategy closely rather than try to chase potential profits or abandon the strategy when things don't go as expected. Doing so can significantly increase the chances of you being successful in the long run. 4.Stop-Loss Orders 🛑 Risk can be mitigated through stop-loss orders, which exit the position at a specific exchange rate. Stop-loss orders are an essential forex risk management tool since they can help traders cap their risk per trade, preventing significant losses. 5.Journal Your Trades 📝 A printed record is a great learning tool. Print out a chart and list all the reasons for the trade, including the fundamentals that sway your decisions. Mark the chart with your entry and your exit points. Make any relevant comments on the chart, including emotional reasons for taking action. The steps above will lead you to a structured approach to trading and should help you become a more refined trader. Trading is an art, and the only way to become increasingly proficient is through consistent and disciplined practice. What do you want to learn in the next post?
TVC:GOLDEducation
by UnitedSignals
4
⚙️Creating a Trading Plan⚙️📍Creating a trading plan and trading journal are two important steps in developing a successful trading strategy. Backtesting is also a crucial component of any trading plan. Here are the steps you can follow to create a trading plan, trading journal, and backtest your strategy. 🔷Define Your Goals and Risk Tolerance The first step in creating a trading plan is to define your trading goals. You should have a clear idea of what you want to achieve with your trading, such as making a certain amount of profit per month or year, and how much you are willing to risk on each trade. Your risk tolerance will also play a role in determining your trading strategy. 🔷Choose Your Trading Methodology The next step is to choose your trading methodology. There are many different trading strategies, such as trend following, momentum trading, and mean reversion. You should choose a strategy that fits with your goals, risk tolerance, and trading style. 🔷Define Your Trading Rules Once you have chosen your trading methodology, you need to define your trading rules. Your trading rules should cover when to enter a trade, when to exit a trade, and how much to risk on each trade. Your rules should be clear, objective, and based on your trading methodology. 🔷Create a Trading Journal A trading journal is a record of all your trades. It is important to keep a trading journal so you can analyze your trading performance over time. Your trading journal should include the date and time of each trade, the entry and exit price, the size of the position, and the reason for entering the trade. You can use a spreadsheet or a specialized trading journal software to keep track of your trades. 🔷Backtest Your Strategy Backtesting is the process of testing your trading strategy on historical data to see how it would have performed in the past. You can use specialized backtesting software or create your own backtesting tool using spreadsheet software. Backtesting allows you to refine your trading strategy and identify its strengths and weaknesses. 🔷Analyze Your Trading Journal After you have started trading, you should analyze your trading journal regularly. Look for patterns in your trading performance and identify areas for improvement. You should also review your trading plan and adjust it as necessary. 📍Key Takeaways: 🔸 Defining your trading goals and risk tolerance is important before creating a trading plan. 🔸 Choose a trading methodology that fits your goals, risk tolerance, and trading style. 🔸 Define clear, objective trading rules based on your trading methodology. 🔸 Keep a trading journal to record all your trades. 🔸 Backtest your trading strategy to refine it and identify its strengths and weaknesses. 🔸 Analyze your trading journal regularly to identify areas for improvement and adjust your trading plan as necessary. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
4
Choosing The Right Strategy To Trade And InvestYou have been studying the charts, watching YouTube and courses videos, and reading the content from BabyPips for a few weeks or even months now. You're getting lost with so much information out there in the Internet. You come across many different terms like smart money concept, ICT, Wyckoff, Elliott Wave and supply and demand. You have no idea on what you should be focusing on. You're deciding which method you should be using to trade. Some people tell you to avoid using any indicators, while others tell you to use indicators so that your trades will be mechanical and you will not let emotions get in the way of your trade. Unable to identify which method to use is detrimental to your trading and investing career. Technical analysis is the backbone of trading in every asset classes, be it stocks, forex, cryptocurrency and even options. What's worse is that you're using the wrong or inefficient methods to analyze the market. By trying to be involved in the financial market, you aim to grow your wealth and hopefully to retire earlier. Can you imagine how much money you can potentially earn from the financial market? You are able to travel anywhere sitting on the first class seats, and able to buy anything you want without any worries for your fundamental needs like food and shelter. Right Strategy, Wrong Implementation Without the right tools, not only will you lose your wealth, but you might also need to push back your retirement age by a few years. Do you want to work for a few more years of 9 - 5, or do you prefer to retire and have the option to not work anymore? I'd definitely prefer the latter. However, the most important thing you will lose is time. Precious time will be lost by using trading with the wrong strategies. Even worse if you are using the correct strategies wrongly. You might discard it away, thinking that it's not going to be a profitable strategy even when you've already discovered one. If you know of the right strategy, you could be earning and profiting from the financial market so much earlier. Don't forget the compounding power of your profits. The later you start to profit from the market, the longer you will see your capital start to compound. Finding The Holy Grail There is actually no "right strategy" in the financial market. Some strategies work better than others in certain market conditions. Take for example Wyckoff methodology is good for identifying change in character and signs of consolidation, accumulation, distribution and reversal on 1 time frame. When using the Wyckoff methodology on a trending market, you are essentially trying to catch a reversal which is relatively riskier compared to just trading with the trend. Of course we are not deep diving into the details on how do we use Wyckoff in trading, but this is an analogy that there are different tools to be used in different market conditions. You have to find out what works for you. Price Fractality Price will do what it needs to do. Read it again. Then read it again. You and me are probably not able to control where the price will move. You need millions of dollars in order to do that, and that is usually the order size of big institutional players like funds and banks. You might be able to influence the price of some meme coins if you are a whale with a few tens of thousands of dollars, but let's not go into that. Have you ever seen price moved differently on the 1-minute timeframe compared to the 15-minute and 1-hour timeframes? You can be looking at an uptrend on the 1-minute timeframe, but it's consolidating on the 15-minute timeframe and on a downtrend on the 1-hour timeframe. Why? Price moves in different fractal. There are many big institutional players trading at different timeframes. They can be positioning themselves for a huge move on the higher timeframes, or they can be scalping their way to profits on the lower timeframes. I have 2 charts below. Are you able to tell what timeframes are they in? Of course not! Let's say you have the following data from a strategy that you've backtested using Elliott Waves: Statistics Total Trades: 100 Average RR: 2.34R Win Rate: 37% Do you know that with this result, you're already on the way to profitability if you trade exactly like how you backtested? For reference, you need a risk to reward ratio of 1:2 and win rate of 33% to have a breakeven strategy. Finding a 37% win rate and 2.34R strategy is already better than majority of the traders out there. But Keeley, with an average of 2.34R strategy, when can I get a lambo? I want a strategy with an average of 20R so that I can show off my trades on social media. First, you need to wake up. Second, you need to stay awake. There are a lot of posts in the social media where you see people hitting 100RR trades and screenshots of their profits and even MetaTrader 4 and 5. There are people who constantly post all these screenshots to garner your attention. I’m pretty sure they have something to sell you. Be it signals, mentorship, copy trading or account management. What you don’t know is the truth behind many of these screenshots. They can be taken on a demo account using big lots and no risk management. With a demo account, anything is possible. If it’s a real account, you have no idea how many losses they encountered before hitting this homerun trade. Some even go as far as getting a white label and show you that the account is “live”, but in fact it’s a demo account since they own the “broker”.  Yes, you can have an average of 20R strategy, but the higher R you're aiming, your win rate will logically be lower. If this is what you want, then you need to ensure your psychology and risk management is very very strong as you will face plenty of losses before the big win. I know many people can't wait for that 1 winning trade that covers the losses due to fear and doubt during a period of drawdown. Lifestyle Compatibility Another important concept of trading is lifestyle compatibility. Let's say you own a bicycle. A bicycle serves many purposes. It can be a mode of transport, it can be used for exercising, and it can also be used in cycling competitions. If you're travelling to work which will take you 45 minutes by train, will you choose to cycle to your workplace? I'm sure it's a no right? There is a time and place for everything. Similarly, if you resides in Asia and works at a 9 - 5 day job, does it make sense for you to be backtesting a strategy that involves scalping on the seconds or 1 minute timeframe in the Asian session when you're in office working? Coming back to the example, if you have a 37% win rate and 2.34R strategy, trade it in the live market. If this is a scalping strategy for the Asian session, you are not able to take all the opportunities that present themselves to you. You take trades half-heartedly. You lose trades. You start to cherry pick your trades. You then conclude that this is actually a losing strategy. You discard this strategy and proceed to find the next "holy grail". What if you actually stick to your strategy, but instead of trading on the 1-minute timeframe, you apply the strategy onto the 30-minute or even the 1-hour timeframe? Remember that price is fractal and most strategies work in multiple timeframes. Since you're unable to concentrate on trading on the 1-minute timeframe, you might get the same or better results on the higher timeframe. Make sure you backtest your system first! I was always on the lookout for the "holy grail" because I was making the mistake of not finding the strategy that fits my personality and lifestyle. I had a profitable system with a win rate of 12% with an average risk to reward ratio of 10R. However, it did not fit my personality at all as I need to experience a lot of drawdown before I see profits. This also did not sit well with my psychology, especially when I'm taking prop firm challenges. I would also need to be in front of the chart constantly which was not the freedom that I seek once I achieve financial freedom. So this was not sustainable at all. Before I had this system, I already have a profitable system with a win rate of 40%, averaging 2.5r per winning trade. Like many of you, I feel that even though this is profitable, it just wasn't enough. It was when I had a mindset shift and speaking to my mentor, I began to stick with my original strategy. From then, I started to see real results and my equity curve has been on a general uptrend since, with some periods of drawdown of course. This has also led me to getting my first payout with FTMO on a $10,000 account, with another payout of close to $1,000 coming in June 2023 from The Funded Trader. This $200 (post-profit split) is just a 2% profit. Imagine what my profit will be if that was a $100,000 account? Yes, it's all talk until it actually happen. It's just a matter of time when I accumulate more of these accounts to fund my personal account. Mentorship A mentor can really help to see the blind spots in your life. In driving lessons, you have a driving instructors guiding and providing you feedbacks on your driving. Sometimes, you discover things that you never knew before. You won't know how to park your vehicle properly, you won't know the technique when you need to hit the emergency break. You might know in theory, but you need someone to guide you with the practical. It cuts so much time and effort on your end with the trial-and-errors which you might not even find success in. There are a lot of scam artists out there claiming to be a trading mentor without delivering any results. Many aren't able to earn a decent profit from the market. A mentor must be able to objectively look at any strategy and tell you what's not working and what you should stop, not just forcing you to use his own strategy. He must be able to talk to you about his own mistakes and show you solid trading results via 3rd party verification such as Myfxbook or Fxblue, and not through screenshots or excel worksheet. He should walk you through development as a person outside of trading. Stay consistent. Stay safe. Success is just around the corner. If you enjoy such content, feel free to click the like button and subscribe for more. Let me know what are your thoughts and learning points in the comments below so others can learn from you too! Please let me know what kind of topic you would like to read next :) Happy weekend!
Education
by Keeleytwj
Why Failure Is Key Of Success Like anyone else on Earth, I’ve had successes (and failures) in years past, at both the personal and professional level. If you’re scoring at home, that’s called being a human being. I can probably make a case that failure is more important than success in many respects because you can’t really succeed unless you’ve truly inhaled your failures (own it!) and then exhaled them to improve your future approach. There is no finality about failure, said Jawaharlal Nehru. Perhaps, that is why learning from failure is easier than learning from success, as success often appears to be the last step of the ladder. Possibilities of life, however, are endless and there are worlds beyond the stars-which is literally true. What appears as success in one moment may turn out to be a failure or even worse in the next moment.We often do not know what is failure and what is success ultimately. Failure gives us the opportunity to bounce back, to learn from our mistakes, and helps us appreciate success. Failure is therefore not the end, but only a stage in our journey. If it crosses our path and we know how to draw the necessary lessons from it, it even allows us to question ourselves when it's necessary and by doing so, it moves us forward. Dear followers, let me know, what topic interests you for new educational posts?
BITSTAMP:BTCUSDEducation
by SignalProvider
8