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Risk Management

8 tips to keep you sharp over the weekend!Tomorrow is Christmas eve, the general markets will be closed, of course crypto will still be rocking and rolling, but the CFD markets will be shut. In day trading it is very easy to get rusty, a few days will do the trick, so with a 3 day weekend approaching we wanted to use this time to help you stay on track so you remain "hot" for the last trading week of 2021! For those of you who will be celebrating Christmas, you will be busy Friday and Saturday, but we're sure you can find a cheeky hour on Sunday to work on yourself, since the weekend is the perfect time to grind, and do things such as reviewing your trades, seeing which assets moved the most and why (so you can take advantage of these situations in the future). Today's blog topic will be guidance on what you could work on this weekend to keep yourself hot and not get rusty! "DO OR DO NOT, THERE IS NO TRY." - YODA 1. THINK HOW CAN YOU IMPROVE YOUR PATIENCE – Having patience as a day trader will help in many ways, one of them being better entries, since entries are directly connected to our PnL it is then a vital skill to acquire, think what you could do to become a more patient trader and create a plan for the new week and apply it on your first opportunity! 2. REVIEW THE MAIN MOVERS THIS WEEK/MONTH – Every successful person, whatever industry it may-be practices a lot, the best way we trades get to practice is to review the charts and see what you could have done to profit in the new week by learning what you missed the week before 3. REVIEW YOUR RULES (PROCESS / ENTRY / EXIT / WATCHLIST) – Always helpful to read over and reevaluate your trading rules, it is a very underrate process, and because the majority of traders do not review their rules and processes they generally do not know what they are nor do they apply them! 4. VISUALIZE SUCCESS AND CHALLENGES – Visualize yourself making good/great trades. see yourself going through different scenarios and achieving the profits you seek. From seeing the perfect setup to executing the trade to exiting the trade, every aspect of trading, see it and feel it. Then also review the challenges you face as a trader, I'm sure you can think of dozens of them! 5. THINK HOW CAN YOU MAKE ONE A+ TRADE AT A TIME - Work on your entry process and criteria, know what the BEST TRADES look like, write it up! So when they show up you can execute with a larger size and maybe bank a much bigger profit than normally. 6. TALK TO EXPERIENCED TRADERS – It is very helpful to get ideas and see what these traders are doing, there is always something for you to learn, even when you become a millionaire trader, you'll still have so much to learn! 7. HOW CAN YOU IMPROVE THE RETETION OF PROFITS – If you are up on the day, set a tighter stop loss to keep your profits, that could always be a solid idea right? There are many ways to retain profits, such as lowering your size after a strong winning streak in a day... but its also your job to think about how you could do this better! 8. WORK ON YOUR PREPARATION – Preparation is Key for success! If you fail to prepare, you prepare to fail! We prepare for a solid hour before we start to trade, there is value in this... so this weekend create your "preparation process" and put it to work! Ok we are done! Thanks for reading, but before we let you go we have a small request! If you come up with any good ideas that work for you, or have them already, please share them with us we'd love to learn from you too! Merry Christmas and all the best!
Education
by PrimedGroup
79
Breakout Trading | 7 Steps to Follow 📝 Hey traders, Breakout trading is one of the most popular trading strategies. Being quite simple in theory, it remains quite complex and complicated in practice. In this post, we will discuss 7 steps every breakout trader must follow. 💬And just in brief about a breakout trading itself: this method aims to spot a key level (it might be horizontal support/resistance or a trend line) and then to trade its occasional breakout assuming that it will trigger an impulsive move. 1️⃣No surprise, the first task of a breakout trader is the identification of key levels. Preferably these levels should be spotted on weekly/daily time frames. 2️⃣Once key levels are spotted, a breakout trader should patiently wait for the test of one of those. His goal is to wait for a breakout. In that step, many traders fail. The problem is that in order to confirm the breakout, one should have strict & reliable rules to follow. The rules that describe a confirmed breakout. *I apply the following rule: the breakout of a level will be considered to be confirmed once the candle closes above/below the structure on the highest time frame where the structure is recognizable. 3️⃣Once the breakout is confirmed, the next step is to wait for a retest of a broken level. Why retest? Simply because a retest gives a better risk to reward ratio for the trade. And even though there is no guarantee that the price will retest the broken level and because of that some trading opportunities will be missed, in the long run, retest trading produces higher gains. 4️⃣Opening a trade on a retest one should know the exact target levels. The levels where the profits will be taken. Again, newbies traders make a lot of mistakes on that step. Remember that your targets must be realistic, they must be based on closest strong structure levels, not on your desired returns. 5️⃣Also, a breakout trader should set a stop loss. And again, a stop-loss level must be safe, it must be set at least below/above a previous minor structure to protect you from stop-hunting. Stop-loss reflects the point where the trader becomes wrong in his predictions and where the trading setup becomes invalid. 6️⃣Once the trading position is opened and stop-loss & take-profit are set, one should patiently wait. There is no guarantee that the price will start falling/growing sharply after the breakout. The market may start coiling for a quite long period of time before it starts acting. Breakout trader must be patient not allowing his emotions to intervene. 7️⃣Lastly, one should remember that his exit points are stop-loss/take-profit levels. Stop-loss adjustment in case of a position drawdown, preliminary profit-taking, and target extension are your worst enemies. Be disciplined, don't be greedy, and keep your emotions in check. Of course, this 7-steps trading plan is not sufficient enough for profitable breakout trading. There are so many nuances on each step of the plan to consider. However, let this plan be your initial guideline: learn & follow that and with time, keep elaborating its rules until you become a consistently profitable trader. Are you a breakout trader? ❤️Please, support this idea with like and comment!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
19
Why Do Most Traders Lose Money?Hi Traders, welcome back to another workshop. In today's workshop, I'll be sharing some personal perspective on why do most short-term traders lose money. I've been trading for over 5 years, and yet I've seen these repeated traits happen in most losing traders. 1. Sense of Urgency - Most traders approach the market with an expectation of low risk high return. Just ask yourself, who doesn't want to achieve highest possible return in the shortest period of time? Everyone wants to make money, but the main thing is the process. - How do you extract money consistently from the markets? How do you differentiate yourself from the 95% of the losing traders? 2. Risk Management - Risk Management is one of the key element to make sure you stay in the business as long as you intend. - Without a proper Risk Management, there's no way you can come out the markets long-term being profitable. - It also directly reflect your patience level, patient traders always have a fixed risk per trade to pre-define their risk, simply because they understand that the outcome of any single trade is random. The eagerness to get-rich-quick will often blind yourself from protecting your capital. 3. Trading without an Edge - Often new traders neglect the importance of having an Edge. An Edge simply means you are being confidence in a sense that you'd always come out profitable in the long-term. The outcome of any single trade is completely random, so stop focusing on the short-term result, and never switch your trading system purposelessly. 4. Mindset - Above all comes down to this one final key element, which is the proper mindset. - Always think in terms of probability and possibility. Having a realistic mindset motivates you to put in the necessary hardwork to achieve your goals, not by day dreaming. Let me know your thoughts in the comments below. If you enjoy the content, make sure you click the like button and share it with someone who need to read this.
KRAKEN:BTCUSDEducation
by TraderNeoh
Why Traders Suffer From Analysis Paralysis In TradingAnalysis-Paralysis In Trading This is an article I’ve been avoiding. Maybe it’s cos’ I’m guilty of it. You know, A bunch of knowledge makes—jack cross the rubicon. It’s December 1, 1990. ugh… what a glorious day! I mean—I’m grateful I survived. Are you? (rhetorically—cos’ I talk to myself a lot). Anyway, I finally get to attend “School of Candles” in Pretoria. South Africa is a great country but, only because they have one of the best—Trading schools in the world. Hashtag “respectfully” . I mean—Finally! Heh… I’m here. The Oakland… miserable red-collar guy is here. Can you believe it? Considering all the blown accounts and failed trades—I finally left the country to… South Africa. Pfft… Don’t mind my excitement—at least—I’m not sitting on my a*s reading this article because I have a problem. You are! i’m pretty sure you haven’t travelled out yet and it’s cos’ you keep losing. You’re a loser! At least… someone had to tell you. Don’t worry that makes two of us. Yeah—you and uh… you! Ugh… duh… I know you are not here for my—school of candles story. You’re here cos—you are stuck! Am I right? Anyway, I’ll help I promise. But, you have to promise me that I won’t be wasting my time. Do you promise? Okay—Great. So… Analysis Paralysis In Trading (What Does That Even Mean?) Look at them… so peaceful. Quick question—Have you ever really stopped to watch kids play? The laughter, glee, ambience, passion—so peaceful; so serene! These guys literally have nothing to worry about. Don’t you miss that? When last did you laugh? No… like actually laugh. These days—we have to watch a funny illiterate online to… crack up. How miserable can one’s life be? So sad; so depressing and why’s that? I don’t know about you—but, I miss those days. Nothing to worry about. You’re probably wondering, “What’s he on about?”… I just had to remind you of what your life (hopefully you’re still breathing)… is supposed to feel like. Before… I tell you how it actually feels like. That’s why you’re here right. Shucks. Analysis paralysis—wonder who comes up with these names. In a lame man’s term, it’s basically being paralyzed (not literally) from over-thinking. over-researching and over-analyzing… Why do we do these things; why do we even do anything. Imagine the thought of—mentally paralyzing yourself… Do you love yourself at all? Of course not—Humans (you reading this now) think of the possible worst for—every situation. Imagine… You go out and a complete stranger gives you money, from nowhere; out of the blue. What’s the first thing that comes to your mind? Be honest, Don’t lie. That’s what I thought. Anyway, Being completely mind-paralyzed is bad. I mean … have you seen—how they have to literally drive paralyzed people everywhere… They become furnitures (not trying to be insensitive); they really can’t do anything… on their own. You’ll end up—A furniture trader! Analysis Paralysis In Trading (How Can You Tell?) In school (school of candles), I attended every class. Wyckoff 101, Fibonacci 203 (borrowed course), Way of the candles, Price-action 105, Order blocks and Market structures 103, Supply and Demand, Indicators not manipulators… Weird ones! I took all. Trust me —I was a diligent student. But, I had no direction. I practically learned everything and anything. I mean—I wanted to be a great trader (don’t we all). The next class (Final year) required… Mastery. I realized that—sticking to one thing was a problem. Oh! No, I can’t choose. I literally attended all classes—just to find out what was best for me—even after taking these classes… in my first year. Hello Jane, I know this is kind of awkward… But, what’s your major? Uh… Order blocks. Imagine! I couldn’t even come up with something. What the H-E-L-L do you want Jamal? You’re just going round in circles. I couldn’t choose. Wanted to take action but, how could I? No one gave me the memo. I don’t even know what making decisions feels like. “Making Decisions” suddenly sounds like the strangest word in—the dictionary. So, tell me have you been in this position. All you keep doing is learning—anything; everything. But, no actions! Two ways you can tell: Can’t seem to make a decision. Always looking for a better solution—without actions! For analysis paralysis in trading It’s not something you can cheat. As a trader, You can’t go over or under it—Dealing with it is… the only solution. You keep delaying actions—whilst over-analyzing every situation. For this trader—you keep imaging downsides… Always the negatives; never positives. Imagine taking a trade—but, you’ve already imagined—300 scenarios of your plan going badly. Pfft… heh—who does that? Uh! you. You’re literally mentally paralyzed. What other options do you have than over-thinking everything. Are You Asking The Right Questions? Ta-ta… I envy them so much. Anyway, You learn to be in the comfort zone because… Why stress your brain till it’s paralyzed. Your brain is literally “yours truly”—It would always try to keep your safe. It will protect you, which is good. But, you become safe and unsuccessful. In trading, which do you prefer? Actually making a decision irrespective of the outcome or… staying out and avoiding everything. I mean if we’re being honest—the second option looks safe and comfortable. Will you choose that though? Remember you want to be rich; you want financial freedom. Even if you go through hell—do it without hesitations. Yup—That quote is a reference to the previous sentence. Eh… your lack of decision making will only make you—miss out on a million market opportunities. So, are you asking the right questions? When you literally ask yourself the right questions… It gives room for a clearer thought process and faster decision-making. Honestly though—Let’s blame google. An increase in options; an increase in choice. The fear of making the wrong choice arises. Then you become mentally paralyzed. Most traders today are stuck. I remember meeting a guy (Joe)—In one of my trading communities—in school. This guy found it hard to make a decision. Heh… So he buys and sells at the same time. Analysis paralysis in trading can make you a fan of gambling. But, there’s a solution… You can start by answering the right questions. What are the right questions? Is it worth the risk? Will it matter in 5 minutes? What was my first choice? Can you answer these questions? Make it a habit to answer these questions before—you take a trade. Not just trading—anything at all… Train that brain of yours. Is It Worth The Risk? You know some-times the best way to eliminate choices is to—know the risk attached to each choice. Imagine having a $50 account (your only money) and trying to take a trade. You’ll probably over-think every thing because—you just can’t lose that money. I mean… Heh—that’s all you have right? So, the first question should be… “If I take this trade, is it worth the risk”. Note that… you might lose—but, the keyword here is “risk”. How much are you willing to let go of?… That should be the first thought. Try this exercise and you have to be truthful—always!… If I was given $50 and I was told to give someone $5 (out of your $50)… Would I be okay with that? If you will, then you can decide to risk 10% of that account—knowing that you won’t feel bad if you lose. Ergo, You’ve just made a decision—because you eliminated your options. I mean losing 10% of $50 is better than losing all. Now what next? you need to eliminate all trades that will make you lose more than 10%. See, No mulling— just progress. Note that… Not all trades are negatives. But, we should always consider the risk. Will It Matter In 5 Minutes? Now you know the risk you’re willing to take, the next question is—Will it matter in 5 minutes? Ever heard of the “5 by 5 rule”? Well, the 5 by 5 rule states that—if you come across an issue take a moment to think—whether or not it will matter in 5 years. If it won’t, don’t spend more than 5 minutes stressing out about it. Forget the “5 years”—My own 5 by 5 rules is… don’t waste 5 seconds pondering over it, if it won’t matter in 5 minutes. Mine works right? I mean… 5 years is a pretty long period you know. By the way, the market waits for no man. The fact of the matter is, there are some problems that do not need your full attention. Why stress over some money you’re okay losing. If after 5 seconds you’re cool with it then—go ahead! Do me a favor. Let’s practice… Um—can you remember what you just did 5 seconds ago? If you can, it matters; If you can’t, “It’s irrelevant and doesn’t matter. There, fixed right! What Was My First Choice? The human mind is like a sick computer virus. It’s basically, randomly, just processing relevant and irrelevant informations and thoughts. You tend to have all these choices, thoughts and feelings all mixed up—especially during pressure. I was listening to Roger Khoury the other day and he said, “When driving a car in a—calm state—you’re basically just following the rules of the road right? But, what happens when you’re late for a meeting—You find yourself breaking all these rules.” Similarly… same applies to the market. You don’t have time; you’re supposed to make a decision—If not, the market leaves you. Then if you’re like me that attended all classes in—Pretoria, you probably don’t have a particular strategy. Different options; different opinions. What happens? You become paralyzed! All this can be avoided if you remember your first choice. Many traders fail to understand that our gut feelings, our instincts—matter. Where do instincts come from? In as much as the brain behaves sick sometimes—It also stores useful informations… knowingly or unknowingly. These useful informations are usually processed when needed. Do you ever know something and wonder—how you know that thing? It’s cos’ you probably already came across that stuff but, you ignored it. Cos’—It didn’t matter. But, look who wasn’t ignorant “your brain” yeah, remember… “Yours truly” loves you. Those first choices… are thought of for a reason. So, make them your last resort—always! Havoc Of Analysis Paralysis In Trading Hey guys, my name is Jamal and I’m a victim of Analysis Paralysis in trading … “Hey Jamal”… Sounds familiar. Yeah, group home. My encounter with Analysis Paralysis in trading wasn’t a great one. There were consequences. Each with its own baggage. After I narrowly graduated from the School of Candles, Pretoria. I mean I’ve learnt everything—I was ready for the market. On Tuesday, May 3, 1994, I deposited $50,000 to my trading account. As a graduate of School of Candles—what was the next thing? To get into the real world of trading . A nasty encounter in the market occurred. I found a GJ (gbp/jpy) trade, the daily had a bearish head and shoulder, the—4 hour, a double bottom. On my chart, I had Bollinger bands, Moving averages, Relative strength index… Name it. Yeah —I was that confused. Didn’t know if to—buy or sell. Oh! No, a clash of interest. My indicators… some gave me buy signals; others sell signals. Oh my God! What now? What’s the direction—Now I’m exhausted, tired, I can’t think straight! The market decides to buy… Yeah, I guess I’ll go long now. The sound your phone makes when you just placed a trade. Greedy old Jamal, used 2 standards for US30 on a $50,000 account. I was more than confident. The market does it thing. What! no… no… n0—Why is there a sell taking place now? No! The Havoc That’s it… That was so easy I lost it all. Everything! “What was the point of school then?” I thought. Useless! You’re so useless Jamal. You can’t get anything right. I couldn’t make a decision… My brain said, “Pause”. I was paralyzed and I failed. Three things happened to me: My trading performance reduced Creativity was gone. Couldn’t decide on a strategy and all patterns became useless. Lost my willpower. I couldn’t make a decision—too many options. Thank you for listening! “Thanks for sharing Jamal”. How To Overcome—Final Words Don’t ask me what I went to a group home to do. Analysis paralysis in trading affects you mentally—It builds into a habit and you become the hesitant trader. Do you remember him? That guy who couldn’t make decisions, that insecure coward. Yeah—that was who I became. June 23, 1994, I was in bed. Thinking, crying, staring—”What went wrong?”, I thought. How come… I mean i’ve gone to one of the best schools, learnt everything there is to learn, and graduated with a 2:1. So, what exactly is the problem. I discover that—I was. “Jamal you are the problem”—I discovered 6 things. These 6 things I’m going to tell you are very important. I’m telling you because—I love you. You shouldn’t follow my past; you shouldn’t make my mistakes. My mom’s teaching helped. Remember when she gave me the trading elements and principles… Steps To Overcoming This Nuisance. This is the truth; this is my truth. After a month I discovered that: You need to trust you. No one else opinion matters in the business of trading. It’s your business—You should mind it. Limit the amount of research (information you consume) you do. It’s called “learn and earn” for a reason—Not “Learn and continue learning”. Talk to someone. If you think you’re stagnant, you need to pour out all those information—on someone. Teach them! Perfection isn’t the key. Progress is! Know your end goal always. Notice every thoughts and emotions. If possible, write them down. If you follow this manual, you should never have reason to be stuck or mentally paralyzed. Remember sharing is caring! Tell someone about this article. Most traders have no idea what analysis paralysis in trading is.
OANDA:NAS100USDEducation
by lazyluchi
2
The Quarters Theory (15 minute) Part 4-4If you use the 15 minute time frame for entries, exits, stop losses and targets, I would strongly suggest you use the quarters theory- BUT- it is actually the eighth theory (place these lines every 12.5 pips away from each other). Example 15 minute chart of GbpJpy pair today: (Place lines every 12.5 pips away from each other)- if you are scalping and or day trading. These will define your trades and structure. 150.500 150.375 150.250 150.125 150.000 149.875 149.750 What do you see about price action at these different price action line levels? Does PA go right thru them without any issues? Does price action stop and reverse? Does price action reverse at these lines? What pair are you trading- What price is on chart now? What session(s) are open now? What Time is it? Look left on all charts and put these either quarter lines on them above 1 hour or eighth lines on time frames below one hour time frame.
Education
by Anbat
1
The Quarters Theory (1 hour) Part 3-4The quarters theory on one hour time frame is great for both day trading and/or scalping. Make sure you put the quarter lines every 25 pips away from each other, just find the closes whole round number and start there with adding lines on charts. On noted GbpJpy chart the quarter lines are as follows: 150.750- yellow line 150.500- red line 150.250- yellow line 150.000- black line 149.750- yellow line These lines help with structure of price action, what has happened before at these lines? go left These lines help with entries, exits, stop losses, targets and risk management.
Education
by Anbat
The Quarters Theory (4 hour) Part 2-4Quarters Theory example on a 4 hour chart of AudJpy: What does chart show you? 1) Whole round numbers (black lines)- 100 pips away from next round whole number 2) Quarter numbers (yellow and red)- 25 pips away from next quarter number These lines make it a lot easier to trade any time frame, why? 1) You can set you enter and exits at these lines on charts 2) These quarter lines give you structure and informs you where price action swings had happen before 3) These quarter lines give you a great place to set your stop losses, on 1:1 or higher risk reward setups. 4) These define your trade, so you can set your risk management via quarter lines on charts Per attached chart you might know where I think price action will continue to today and/or tomorrow. Yes, you could do a 50 pip stop and 50 pip target on these 1:1 trades but you need a 60% or higher win rate if you only do 1:1 RR trades. But this is not hard to do if you have the knowledge. If you either day trade and/or scalp, I would strongly advise you to you tube and/or google The quarters theory and start using them to define your trades, lot size, entries, exits and targets. This will help you greatly in your trading.
Education
by Anbat
1
The Quarters Theory (Daily) Part 1-4On example daily chart of EurAud (on this article)- what do you see related to the quarters theory? support and resistance? trading edge? I see 100 pip round whole numbers (black lines) divided into four equal parts of 25 pips apiece (red and yellow lines)- If you did trade with 100 pip stop losses- this would be a great way to trade either position, swing or daily charts- from whole round numbers to next whole round number. Those would be 100 pip stop losses vs 100 pip targets or 1:1 Risk Reward setups- you would need to have a win rate of 60% or more to make a profit with this type of trading, or you could set a 100 pip stop loss and let trade run for either a couple, few or many more days and have a higher Risk Reward setup. The quarters theory started with 1000 pip areas, like example from 1.6000 to 1.7000 would be 1000 pips, break this down into four equal parts or as follows: 1.6000- major round number- 1.6250- minor number-250 pip area 1.6500- minor half number- 250 pip area 1.6750- minor number- 250 pip area 1.7000- major round number This can be done on any charts from monthly down to 1 minute and should be done for knowing possible entries, exits and risk reward (lot sizes)- on every trade you make. I use the quarters theory for scalping, it will give you a trading edge and control your trades within a certain structure of the market.
Education
by Anbat
1
I Just Took a Big Proft - What Should I do?Hi Traders, welcome back to another workshop. This topic is often a big question mark within a lot of traders, wondering should they continue trading after getting a jackpot trade? When it comes to this, again, there's no right or wrong. It is all about your plan, mindset, and performance. Below I've summarized the 3 main highlights of this workshop 1. Identify whether it is a good win or bad win - If a winning trade is within your trading plan, something that you carefully planned and executed, then it is a good win. Because most likely it is something that is repeatable and duplicable, which can contribute a big part to your long-term consistency. - If a winning trade is not within your trading plan, then often it is categorized as a bad win. You took the trade based on impulsive behaviour, you jumped into the chart just start taking blind trades. Yes, it is still a winning trade, but as a professional trader we do not determine the quality of a trade based on the outcome. It all depends on the execution of the strategy and the quality of the setup itself. You can have the best setup where everything aligns but still lose money. Think about it. 2. Do a mindset checking - "Is my mindset still clear?" - Is your mindset still at at peak? If the answer is yes, then feel free to continue trading, because who knows it could be one of those good months? - But if the answer is no, then probably you should take a step back. You can either trade less size to track your performance or you could perhaps stop trading and focus on something else, then come back stronger. 3. Set a drawdown limit (Very important) - Always pay yourself first. Active trading is still considered a job. I understand the importance of compounding, but always take a small portion of the money and pay yourself first, then continue growing your account. - By setting a drawdown limit, it calms your mind as you secured portion of the profits. It always avoid you from performing poorly due to a different mindset approach then eventually give back all of them back to the markets. Let me know your thoughts in the comments below. If you enjoy the content, make sure you click the like button and share it with someone who need to read this.
KRAKEN:BTCUSDEducation
by TraderNeoh
4
What Type of Trader Are You? 🤔 Hey traders, In this post, I decided to make a comparative analysis of three main trading styles: scalping, day trading, and swing trading. We will go throw the main pros and cons of each approach and discuss common misconceptions. 🏃‍♀️🏃 Let's start with scalping. I guess many of us were impressed by videos on youtube showing how a guy makes thousands of dollars applying a simple scalping strategy. Some of these videos get millions of views and excitement from the audience. No surprise the majority of newbies start their trading journey with scalping strategies. Practicing some of them and trading on a real account, these traders suddenly realize that the youtube videos barely reflect the reality of scalping. Scalping requires being extremely reactive, making trading decisions quickly, and constantly staying focused. Moreover, it turns out that this trading style is extremely risky, and occasional losing streaks become an essential part of the process. A pro scalper usually opens dozens of trading positions per day and manages many of them simultaneously. Even though it is a fact that a solid scalping strategy is a true cash machine, the constant pressure and high level of stress make many traders leave that game blowing their trading account. A true scalper is a guy with iron nerves and a sharp mind. It takes many many years to become a person like that. 🚶‍♀️🚶Intraday trading is a bit simpler. While quite often scalping gives a trader just a couple of minutes to react and make a trading decision, intraday trading gives the hours. Such a trading style is slower, the intraday perspective is not that chaotic and irrational. It takes many hours for the trading setup to play out making the trade management process not that time-consuming. Moreover, intraday trader tends to open much fewer trading positions than a scalper. Analyzing primarily 4h/1h time frames less trading setups meet the entry conditions. That primarily affects the potential gains though. Lesser you trade, the less money you make. I consider myself to be an intraday trader. Trading full-time of course I was trying different scalping strategies, but I must admit that I can’t make the decisions that quickly, I can’t constantly hold so many active trading positions in my mind, I need some time to think, I need some time to do other things, I want more freedom. For that reason, intraday trading is my choice. And let me be frank right here: I am not trying to say that intraday trading is simple, it is SIMPLER than scalping still remaining extremely complicated to master. 🕴🕴 If you want trading to become your side income if you have a full-time job and just a couple of hours per day for charting, I believe that intraday trading/scalping are not appropriate for you. In your situation, I would consider swing trading. Swing trading is extremely slow. Being primarily focused on weekly/daily time frames a swing trader tends to hold trading positions for weeks, sometimes even months. Moreover, it takes many days for a swing trading setup to form and the market gives a trader much time for reflection. Of course, that primarily affects the potential gains: I believe that among the 3 trading styles that we discussed, swing trading generates the lowest returns. Swing trader is the best starter for newbie traders. Analyzing higher time frames they can constantly follow the market and don’t miss the major moves. Just 1-2 hours per day are enough to follow dozens of financial instruments. Only by becoming a consistently profitable swing trader, one can try himself in intraday trading. Working with hundreds of struggling traders from different parts of the world I realized that the majority has the inverted perception of scalping/intraday/swing trading. I hope that this article will shed a light on that topic. What trading style do you prefer? ❤️Please, support this idea with like and comment!❤️
OANDA:XAUUSDEducation
by VasilyTrader
38
Stopped Out - Is It Okay To Re-Enter?Hi Traders, welcome back to another workshop. I believe this is a very common struggle within our community as a Trader. Often when you take a loss on a particular setup, the urge of getting back into the market is intense, and that's human psychology. Do you realized how focused and how biased you are when you are hunting for a specific setup? - Get stopped out once, you'd still take it because it doesn't do any damage to your account - Get stopped out twice, you'd still arguably take it because you allow yourself for a re-entry - Get stopped out thrice, now your emotion is taking over your rational behaviour. Now all you're focusing is either "How can i make my money back?!" or "I MUST be correct" or "This cannot be ..." Familiar? Remember, trading is not so much about Yes or No. It's all about measuring the Risk-to-Reward VS Probability of Success. If a setup is so valuable that you cannot afford to miss it (assume it passed through your trade evaluation process), feel free to take it again and again. But if you're trading the P&L, then i'd suggest you to only allow yourself a maximum of 2 chance entries, meaning that if you're getting stopped out twice in a row in a similar setup, you should probably get some rest or trade the other markets. Most of the time, when a trader gets stop out multiple times in a row trading a similar setup, the emotion kicks in. Now their trading lens is no longer focusing on finding the best setups, but rather 'this must be it'. That's also how the over-trading and revenge trading behaviour pops out. Let me know your thoughts below. If you enjoy the content, make sure you follow my profile and give me a thumbs up for daily fx forecast & educational content.
KRAKEN:BTCUSDEducation
by TraderNeoh
1
Study the Logic Behind Price Patterns, Not by Memorizing!Hi Traders, I won't be doing any particular market breakdown today as I don't see any great opportunity around. But here's some gems to share. In the previous few analysis, I've been talking about the potential failures on UJ everytime price attempt to break above 115. If you've not watched the previous UJ analysis OR in case if you couldn't find it, I'll link it down below for your convenience, make sure you watch it. In my market breakdown videos, I often talk about continuation pattern. In yesterday's UJ breakdown, this was exactly what I was talking about, a continuation pattern. Price had a strong drive/ momentum into one direction (in this case bearish momentum), formed a tight consolidation giving us more information that sellers are attempting to squeeze price lower. This kind of flag-type pattern simply tells you how one side is bullying the opposition, eventually leads to further continuation into the initial direction. For whatever instruments you're trading, it'd still fall back to Price Action. Understanding the psychology behind candlestick movement is what's going to make you profits, not by blindly memorizing strategies or patterns. See you tomorrow for more breakdowns! Trade safe and manage your risk!
Education
by TraderNeoh
HOW PROFITABLE TRADING LOOKS LIKE ? (EDUCATION)Hello traders, I'm making this post in order to help the community, most of you focus to much in technical analysis but let's take back to basics a put things clear. Before continuing reading make sure to give a like this will help the community use proper risk management. Let's talk about simple math : This is simply a conceptual series of 10 trades, taken one after the other from abeginner perspective let's us act as a beginner: if at the beginning you risk more than expected then it will take you a lot of work to recover from that DD%. Make sure to have a proper risk modelling and follow the rules to survive. New traders execute trades with certainties " this loos good" "I will risk more" “ I can’t lose in this trade “ "I will risk more in this one because I need to recover my previous loss" . "I lost the previous one i will risk less" Here is where the problem occurs: When you modify parameters in your risk modeling it will have a strong impact in the outcome. This example was clear. Our dear Mr amateur risked more in the first trade end up losing more ( uncontrolled loss) , then took another normal loss , after that he has two winning trades but guess what? Mr emotional become greedy and risk more after having two profitables trades and guess what ? He just distributed all the money back. See how his biggest loses come after the biggest wins . After that big loss mr amateur is scarred to pull the trigger and of course he cut winners very quickly because he’s afraid to distribute back . Well for him trading becomes a nightmare . Markers are consuming his pocket and soul . Now Let us say for example that you took 10 trades with proper risk management ? With a probabilistic approach? the outcome is totally different. And guess what there is no magic trick . Profitable trading is a unemotional risk manager game , Chose wisely . Here is where the solution is : EVERY TRADE IS UNIQUE , ANYTHING CAN HAPPEN. MANAGE YOUR EXPOSURE OR YOU WILL HAVE NOTHING LEFT TO MANAGE. PRO traders understand that in order to have results they must adopt a series per trade approach Please do follow and comment your thoughts. let me know in the comment section what do you think about it .
Education
by AIRFOREXONE_
8
Forex Signals Providers - Scam? Points you should keep an eye onForex Signals Providers - Scam? Points you should keep an eye on before buying. Points: - Trading Strategy - Trade Management / Timing - Risk Management / Risk Rewards - Broker - Result Trading Strategy: Well we never know what these traders are really doing. We may see the analysis but we do not have their rules (Trading Plan). So you would need to understand their Price Action Confirmation and many more. How to act in certain scenarios and which is the best approach in these scenarios in order to get the maximum out of it. As we all know forex is a business of probabilities. With the right approach we can minimize our losses and maximize our wins. This part is completely missing. When price hits SL you do not know why and how to take the counter trade or when you can simply reenter. This is the procedure of evaluation. Trade Management/Timing: We need to catch every single trade in order to make the same profit like them. This may be very difficult. Especially if you are working at your 9-5 job. Signals may be better for full time traders. But full time traders do not need Signals obviously. You can not make time management as you are depending to your Signal Provider. At the end it will be necessary to take it as a 9-5job. Otherwise you will miss too many trades. This should not be your approach as a trader. You need to only attach in certain scenarios this is how you ensure high concentration and you can increase your win rate. Risk Management / Risk Rewards: Here I see the biggest problem. The majority provider use multiple TP Take Profit Levels like TP1 TP2 TP3 TP4. This does not work properly. It is simply an illusion that they make so much percentage. The only thing what they do is pips. But not the real ROI. This is what will gain you the percentages on your trading account and not pips. Of course there is a Risk Management system with pips but there you have big disadvantages as you can not scale your wins. With a percentage method you minimize your risk/losses and you maximize your wins to the fullest. Broker: Every broker has different spreads. Therefore you may not get involved in some positions or you will get stopped out. This point is only important for Signal Services where the SL are super tight. Result: Here the majority are just faking and they are claiming big results. So you need to check it. This is very difficult. You need here proven results. When they will show you their 6th Tp level hit then you know that this Channel is just giving you unreal results Recommendation: What I suggest is to learn Forex by yourself and from others that are already there where you want to be. Join a community with the same goal. The community should not be too big. Otherwise it will be difficult to interact and also the mentors can not really help you individually. You need to commit yourself for at least 3years nonstop in order to really understand how this business works. It is like in any other business or 9to5 job. You will not just start from the beginning and you will understand everything. No you go to the school, seminars, .... It will just take time my friends. But I promise you with CONSISTENCY you will reach it. "Give a man a fish and you feed him for a day teach a man to fish and you feed him for a lifetime" This is my approach for this industry.
COINBASE:BTCUSDEducation
by DariusFxTrading
2
WHY 95% OF TRADERS FAIL | Top 6 Mistakes to Avoid 🙅‍♂️🙅‍♀️ Hey traders, That is the absolute fact: 95% of traders will fail. Working with hundreds of struggling traders from different parts of the world, studying their trades & following their reasoning I found a lot of commonalities. In this post, we will discuss the top 6 mistakes to avoid to succeed in trading. 🤖 Rather than studying the market structure, rather than learning price action, many traders are looking for a "secret indicator". The one that will accurately indicate when to buy or sell the market. Failing to find the one, they start looking for a set of indicators giving them magic profit formula. At some stage, they stop analyzing the chart at all. They become obsessed with the indicators. Remember, naked chart analysis always goes first. The indicator is the tool in your toolbox that is applied as one of the confirmations. 💫 The expectations & mindset play a very important role here as well. Many people come in trading with a desire to become rich quick. To buy a subscription to some signal service promising them thousands of pips monthly and quite their 9:5 job. Or to watch a couple of educational videos about trading and after a couple of days of practicing become a whale of Wallstreet making thousands of dollars with a single trade. Such a mindset is completely wrong. Instead, you must realize that trading is extremely hard. It will take many years and a lot of blown trading accounts before you get how to trade properly. Moreover, even once you mature, you won't make millions of dollars. Professional trading is simply about winning slightly more than you lose and then living on a margin. 📉 Poor risk management is the primary reason for blown trading accounts. And here I am not talking about some "advanced" risk management techniques. Many traders simply trade with oversized lots. Having high leverage & 1000$ deposit at hand the one can simply open a trading position with 1 standard lot and be kicked in by a spread. Or they open a trading position without a stop loss. Being wrong in their predictions instead of closing a losing position they keep holding it. And while the market keeps going against them they pray the God for a market reversal. At some moment they get the margin call. You must learn to calculate a lot size for all your trades. Instead of risking a huge portion of your trading account, learn to set a stop loss and risk no more than 1% of your deposit. 📝 Lastly, discipline plays a crucial role in your success in trading. Once you developed a trading strategy & backtested that you must learn to follow its rules no matter what. Usually, once traders catch a losing streak they start changing their rules, they start adjusting their trading strategy. Remember that losses are inevitable. The only correct way to stay afloat is to be consistent and don't break the rules. Avoiding these common mistakes your chances to succeed in trading will increase dramatically. I wish you be among 5% of traders who made it. Did you make these mistakes? ❤️Please, support this idea with like and comment!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
30
Trade Entries VS Trade Exits - Do you still make these mistakes?Hi Traders, welcome back to another workshop. In today's workshop, I will be discussing the importance of taking of both Trade Entries and Trade Exits. Most traders put way too much attention into spotting the specific entry level. But the truth is, closing out a good position at the right time and at the right price make you money. You can have the best strategy and best entry, but if you don't know how to exit, you'd still end up losing money. Why majority focus so much on trade entries? Simply because the feeling of catching tops & bottoms give them a sense of gratification and achievement. Trading isn't about feeling good, it certainly isn't about ego. It's all about how can you organize your mind to control its performance, so you're consistently extracting profits from the markets, by doing the right thing. Stop aiming for profits, start focusing on the process. Do the right thing. Again, and again. That's how you make money from whatever you're doing in life. Comment down below what's your best and worst positions. Share with anyone you think he/she should be watching this.
KRAKEN:BTCUSDEducation
by TraderNeoh
1
Melody.Finance is a smart contract-based investment Dapp writtenSince its launch in September 2020 as a parallel platform by Binance, Binance Smart Chain (BSC) has been making its presence felt in multiple financial technology markets. With its low transaction fees, fast processing speeds, and compatibility with Ethereum Virtual Machine, it is offering an unbeatable user experience to NFT, Dapp, and DeFi developers. Taking all these attributes into account, BSC has revolutionized trading through its exchange with new and exciting Dapps getting launched every day. Melody.Finance is a yield farming Dapp on BSC. The goal is to make the most of the Binance Smart Chain without having to spend too much time and/or resources. What is Melody.Finance? Melody.Finance is a smart contract-based investment Dapp written on the Binance Smart Chain. It became live in early November 2021 and since then, it has seen drastic growth. Benefitting from Melody.Finance Melody.Finance lets the investors generate stable daily returns from 7.8% to 17% on their investment. To get started, the smart contract offers the opportunity to invest as little as 0.001 BNB. The investors can withdraw the generated BNB at any time from their Dapp. Highlights Following are the key features of Melody.Finance: Strong security: The safety of the smart contract comes first and foremost, and Melody.Finance has been audited by HazeCrypto. No vulnerabilities, backdoors, or scam scripts were found in the Melody.Finance Smart Contract. High ROI: With radical growth since its inception, Melody.Finance is on its journey to becoming one of the highest ROI programs amongst the yield farms on BSC. Between the deposit period of 7 and 30 days, the investors can get a 119% to 239% return on their investment. The longer the deposit period, the bigger the reward. Referral Program Melody.Finance pays an 11.5% commission over 5 levels of referral programs. The investors can share their referral links and allow their friends to join in while making additional profits. Closing Thoughts Melody.Finance is grabbing a lot of attention in the crypto industry given its clean and simple interface, and easy functionality. The smart contract has been experiencing constant growth in terms of user base with its attractive returns and referral levels that offer a wide scope of earnings to its investors. To get more information about melody.finance, head to their website.
BINANCE:BNBUSDEducation
by purga1977
1
Emotional Control in InvestmentWarren Buffett famously said, “Be greedy when the market is fearful, be fearful when the market is greedy.” Knowing fear and greed in investing is therefore a good thing. Our ancestors in the past, thanks to fear, knew how to run away from predators so as not to be killed. And also because of greedier than other animals, people know how to cultivate, store food, and then build a prosperous society like today. However, it is no coincidence that the EQ index argues that the more able a person is to control his emotions, the more likely he is to succeed in life. The same is true in stock investing. Even the skill of mastering emotions is also put on the top by experts, which is a decisive factor in winning - losing, gaining - losing. So what should we do to control emotions in investing, so that the actions of "fear" and "greed" appear at the right time and in the right place? How do emotions affect investment decisions? Let's analyze the characteristics of an investor's work. Every day, when the stock market opens, we begin to sit in front of a price list, with the numbers flashing green and red and changing every second, every minute. Looking at the boring price list, we turn our eyes to other investors, groups - group chats on social networks, to see what people are buying, selling, what is the target price, holding this code or that code for a while. How long,... Then when the price list was off, even the night had fallen, we were still thinking, lost in the discussion and analysis. And emotional trading also emerges from here. For example, if we are happy, we are blind to the risks. If we are afraid, we miss good opportunities. If we're angry, we're willing to take great risks to try to undo the consequences (revenge trading). Living in that variable environment, if we do not have enough bravery and knowledge, it is easy to buy and sell irrationally and lack discipline. And so the account also "exploded" itself. If we do not have enough bravery and knowledge, it is easy to trade irrationally and lack discipline. How to control emotions in investing? Shaping an investment method for yourself When investing in stocks, in many cases, you have to make decisions continuously, and you have to decide quickly. But to make quick and accurate decisions, it is necessary to analyze and process information, set investment goals, plan allocations, etc. There is a lot of work to do, to make a decision. good. To make things simpler, you need to have an investment system, or investment method. This helps you to perform actions according to a pre-programmed logic sequence. It will be the directional compass, so that every time you need to make a decision, you just need to check the conditions of the system and follow it. For example, you can stick to a periodic investment plan (SIP - Systematic investment plan). By continuously investing small amounts, you take advantage of long-term cost averaging (DCA). Thanks to the habit of investing periodically over a long period of time in familiar assets, you will be more prudent in risky speculative decisions. Have yourself an investment system that helps you perform actions according to a pre-programmed logic sequence Building investment knowledge After reading the above idea, many of you will probably think: "I don't know anything about investing, how can I build my own investment method?" That leads to the second element that you need to focus on developing, which is building investment knowledge. Referring to investment knowledge, you will probably think of PE, EPS, valuation methods, ... (if according to fundamental analysis), or MA, RSI, technical indicators, wave counting ,... (if according to technical analysis). This is not wrong, but if you don't look at the investment method, the above knowledge can become a fragment of knowledge. Such knowledge must be systematized from the perspective of a specific investment method and way of thinking. You can find these knowledge in the section To make things easier, you can look to investment advisors, brokers, even fund managers who you know for sure have their own investment systems. However, when receiving investment advice, no matter what method it is, be sure to learn from an expert the important components of an investment method: Clear, objective (non-emotional) logic to make buying/selling decisions. Investment history follows the above logic, applied in Vietnam market. Principles of portfolio allocation, appropriate investment size. Risk management principles should clearly state what we will do when a risk occurs. In addition, investment knowledge is not only professional knowledge but also general understanding. For example, you should know in advance that no method is all-encompassing; a potentially high-return opportunity also carries a high degree of risk; It's not like businesses and the whole economy can grow by tens of percent per year, but you just invested in stocks and want to earn 5 times 10 times,... Don't stand on this mountain looking at that mountain 16 years of experience in the stock market gives me the opportunity to meet a lot of people. Many of my clients confided to me: “I just need to make a steady profit of a few dozen percent per year.” However, they weren't happy when they only held a 35% increase, while a certain X doubled. But there are also lucky people, who bought the correct X code and doubled it, but still regretted: "If I know that, I will buy more". In this case, instead of comparing the actual profit with the original target, they compare it with someone else's profit, or the profit it could have been. No matter how much they say, they will have a reason to regret anyway. The solution to not falling into this situation is to return to your own investment goals and methods. If this still isn't strong enough, try linking that goal to the important things in your life. In software development, there is a concept called user story, written in the format: “Is…, I want… to……”. I love this style of writing because it focuses on the subject and the goal. Applying investment, for example, we can write the following: “As a father, I want to invest to have money for my daughter to study abroad at the age of 18.” I believe if you always remember this , you will be less emotional, less reckless and stick to your investment plan more, because you know this determines your daughter's future.As a father, you cannot bring your child's future to life. can bet. As another example, we could write: “As the breadwinner of the family, I want to invest to have a sustainable passive income source, so that my family doesn't have to worry about finances when I get old.” If you develop If you can express this, you must have remembered your responsibilities, your goal of financial peace of mind.Emotional decisions make you insecure, so there is no chance to dominate. Enjoy the emotions of investing in a controlled manner. Conclude Having emotions is a natural mechanism of all living things, including humans. Therefore, if emotions become too dominant, we should not reject them to the extreme, but should only moderate and control them to an appropriate intensity to facilitate work. Experiencing the emotions of investing is like climbing to the top of Fansipan. Climbing to the top may not be fun, if we don't experience the cold, the slippery pain when climbing the slope, the times we have to struggle with the mud, we have to swing into each bamboo grove to go. Investment is similar. Accept and enjoy emotions, but don't let them hinder us from reaching our destination, let them overwhelm our goals, and erase our motivation.
HOSE:APHEducation
by fxtactix
Betting mindset in investmentInvesting is an activity that always comes with risks. Every time we have to think about a fixed investment, sooner or later we have to ask ourselves what are the risks associated with this investment? Investing is an environment where the certainty of the future is purely a product of the imagination, but unfortunately this is the product that is being sold most to the inexperienced class of investors who are just starting out. learn about the market. It is not difficult for us to come across many stock investment courses online that promise to give investors the formula to beat the market, technical tools that always guarantee profitability, or simply the best words. the bullshit of the brokers' heads. In investing, as in life, there is nothing an investor can do that can give a sense of certainty that the end result will be what you want, uncertainty in the future will always be a constant. Numbers never change, especially in the investment environment, and investors have no choice but to learn to accept this fact. Therefore, once imbued with this principle, smart investors will also know that the most reliable fraud warning signal in investment is the opposite of the above truth - the promise to guarantee profits. profits in the future. In multi-level language, it is a commitment of X% profit in a fixed period of time Y. Every time you hear the four words "profit commitment" from someone who is talking nonsense about an investment project, you better hold your wallet tightly Because the future is always associated with uncertainty, learning how to deal with uncertainty in investing is learning how to think probabilistically in the most objective way. In other words, the most famous investors in the world are basically people who think like professional Poker players! How to properly receive new information? Thomas Bayes was an English pastor who lived in the early 18th century. For those who have specialized in statistical probability or machine learning, Bayes is not an unfamiliar name - he is the father to of today's famous Bayes theorem. In Nate Silver's famous book Signal and noises, the author gives a perfect example of how to think in the Bayesian style: Let's assume that there is a man who has just been given life in a world of which he has no knowledge at all. Seeing the sun rise for the first time in his life, he screamed in panic and sought refuge from its sunlight. He didn't know if this "sunrise" phenomenon was normal or just a madness in the world. However, day by day when he saw the sunrise, he became more and more certain that this was a constant phenomenon, not a coincidence. The first day when he saw the sunrise, he was not sure if the sun would be seen again tomorrow. However, this probability number will gradually increase (but will never reach 100%) with the number of days in the future he continues to see the sun rise. Bayes' theorem is very simple: when we make a prediction about the probability of something happening in the future, it is a never-ending process where the number of probabilities is continuously updated with each Every time a new piece of data comes in, we have to change our prediction. We never start this number with 0% or 100% because Bayesian thinking doesn't allow you to say something will or will never happen. Bayesian thinking is a constantly evolving system, with each new data update bringing our probabilistic predictions closer and closer to the Truth. Bayes' theorem is an assertion that all we know about the future is a guess based on probability, and this number will never be fixed but will always change over time as new information becomes available. appears to force us to update our conjecture. In the ironic way we often hear, one thing for sure about the future is that nothing is certain. Bayesian thinking forces us to admit that our understanding of the world is very shallow, and that we are constantly updating information in the hope that our numbers come closer and closer to Accuracy (but it will never 100%). To do this, we must first admit to ourselves that we are not really sure about anything in the future. To get closer and closer to the Truth, open-minded thinking is essential, and confirmation bias is a dangerous enemy that needs to be eliminated. Consciously or unconsciously, professional poker players and investors alike employ the best of Bayesian thinking in their work. They always think about possible future events as probabilistic numbers, constantly update this number with new data in real time, and are ready to bet big when the probability is extremely beneficial to itself. Like playing Poker, smart investors are always ready to bet big when the odds of winning are very high, although this number has never reached 100%. Similarities Between Investing and Poker Legendary Poker player Doyle Brunson, who is known as the Godfather of Poker, once said a sentence that changed the entire opinion of the writer in the early days of participating in this game: Poker is not just a game of winning or losing. Basically, Poker is the art of making the most accurate decisions in any uncertain situation. You have to know when to bet more, when to discard, and when to All-in. Like all novice players when learning about Poker, the writer only thinks about Poker purely through the lens of winning money or losing money without looking into other aspects of the game. Most new poker players think that Poker is just gambling and that the ultimate aim of this game is to try to win as much money as possible. In fact, the above goal is not necessarily wrong, but if you focus on pure winning and losing, the player's skills can never develop to new heights. Poker is a sport where skill and luck both play a role in determining the final outcome of the player, and the player's skill is always proportional to the efficiency of the final decision-making process. in the entire game. Most realistically, the highest level of poker players are always the ones who are able to make the most accurate decisions in extremely uncertain situations. What is the best decision in uncertain situations? The simple answer is that decisions are based purely on probabilities of what might happen in the future. In Poker, a hand can play out in many different ways with different proportions of probability, and so a player's skill is shown when they are most likely to sniff correctly. whether the probability is in your favor or not. To put it simply, every time a player places chips on the table, the true essence of that bet is a decision about a possible future scenario in the hand. The higher a player's confidence in the prospect of the future in their favor, the higher the stakes will be. In other words, the number of bets represents the player's level of confidence in the possible outcome of the hand (the writer does not include the case of bluffing, that is a completely different category of Poker). ). The more confident players are in their ability to win in the future, the more willing they are to bet big. And so the player who is able to estimate his probability of winning most accurately, the more optimal the final decision-making process. However, professional Poker players are also wise enough to understand that 80% win rate also means 20% lose rate, on average they will have 4 wins for every 5 hands of the same hand. and lost 1 time. And if the other 20% happens to lead to the loss of their bets, they don't really care about it, they basically understand that they made the correct decision but luck smiled. smile at your opponent. Professional Poker players fully accept the uncertainty of the game, they understand that even if they can make all the correct decisions in a hand, there is still a chance that they could lose money due to the uncertainty of the game. influence of the element of luck, but they also know that in the long run the people who are most likely to make the most correct decisions based on probability will always be the final winners in the game called Poker. The investment process is similar to the decision-making process in Poker. Uncertainty is always part of the game, a smart investment has the potential to lose money, and a stupid investment decision has the potential to pay off, at least in the short term. But smart investors are never short-term players, what they really aim for is the long-term end result. It is only when the market goes through a period of excitement and begins to enter a period of depression that we really know who is the real fox in the market. Small bets, big bets, and discards If you have a 90% win in a hand of Poker, the most obvious thing is that you want as much stake on the table as possible. But if you are the opponent, who only has 10% of winnings and understands the rules of Poker like you, why should they accept to place more money with only 10% winning rate? Or let the writer take another example that is easier to understand, if you are an English football fan, you know that Liverpool are one of the strongest teams this season, and their opponent tomorrow is Norwich City , one of the weakest team. Everyone knows that Liverpool have a high win rate and everyone wants to bet on the possibility that Liverpool will win tomorrow, but if so, who will be on the other end of the bet, who will be the fool? bet on the possibility that Norwich City will win? The obvious answer is that it completely depends on the level of the odds, if the bet on Liverpool bets 3 to 2 while the bet on Norwich City places 1 to 100 then the player doesn't really have a choice at this point. Choose obvious attraction. Liverpool has a higher chance of winning, but placing 3 only eats 2, while Norwich City of course has a very high loss rate, but placing 1 will eat up to 100, at this time, the player really understands that there is no meal. which is free on the betting market. Football betting, the odds are very clear in each ball game but this information is completely hidden in Poker and investing. Poker players and investors must estimate this ratio for themselves and make the final reasonable decision. In Poker, if you only have a 10% win, the only reason you would be willing to put more money into the hand is when the amount you win when that 10% happens has to be greater than the odds of placing 1 to 10. This means that if you had to put an extra $100 on the hand with a 10% win rate, you would only do this when the winnings were greater than $1000. On an average of 10 similar hands, you will win 1 and lose 9 times, so you want to make sure that the 10% chance of winning is greater than the total loss in the remaining 9 games. This is a basic concept in Poker, but to put it into practice in investment, there are specific difficulties as follows: 1. You cannot know the exact win rate in each investment. 2. You also don't know exactly how much profit you can make if the deal goes through. In Poker there are some basic math tricks for Poker players to calculate roughly what their probability of winning is in each hand, but this is a luxury in the investment world. It is difficult for investors to give a specific number for the probability of success as well as the rate of return for each potential investment, the most likely thing they can do is give a range. estimates, and the more experienced the investor, the more likely he is to give an estimate that is closest to reality. And like professional poker players, experienced investors are always ready to bet big when the probability of winning as well as the potential profit rate is extremely favorable for them. Basically, the action to invest money in the market is similar to the action of placing chips on the Poker table, which is an expression of confidence in the player's ability to win in the future. The greater the confidence, the bigger the stake, and vice versa. As the Godfather of Poker Doyle Brunson once said, "Basically, Poker is the art of making the best decisions in any uncertain situation. You have to know when to put more money, when to discard, and when to discard. Which should be All-in". In Poker, the hand you are playing is similar to the investment you are considering to lose money in the market, the question that the wise player must always answer is: Is this an attractive deal with the odds of winning as well as the odds being extremely favorable for you? 1. If the answer is an absolute affirmation, you bet big. 2. If the answer is probably maybe, you bet small. 3. If the answer is no, you simply discard. In life nothing is certain, but this also does not mean that everything is 50/50 as many people mistakenly believe, in reality there will always be things with a higher probability of happening. with other things, but always remember that a low probability does not mean it will never happen, things no matter how small the probability, as long as the sample set is large enough, nothing is a problem. cannot happen. For successful investing, the betting mindset is one of the most important skills in investing simply because the Bayesian model is one of the best tools an investor can use to deal with volatility. future determination. Learn to accept the uncertainty of the future as well as the irrefutable probabilistic nature of the investment game, and investors will begin to have a more rational mental model when thinking about prospects. of potential future investments.
HOSE:APHEducation
by fxtactix
COMPOUND INTEREST. Time is on your side📚 ❗️As it turned out, not all traders are familiar with such an important concept as compound interest. Meanwhile, the use of compound interest in trading can be a very effective tool for making a profit. In short, compound interest is the accrual of interest on interest, and if in detail, then read on. ✅The formula for calculating compound interest has the form: Compound percentage = (P (1 + g)^ n) – P, where P – the amount originally invested; r – interest rate; n is the investment period. Let's say you invested an amount of $ 10,000, every year the interest received is added to the principal amount, and new interest is accrued for a larger amount. If the investment period is 5 years, and the interest rate is 10% per annum, then after the specified period, taking into account the compound interest, you will receive a profit in the amount of: (10000(1+0.10)^5)-10000=6105.1$ And without taking into account the compound interest, the profit for the same period will be: 10000*5*0,10-10000=5000$ As you can see, using compound interest (or in other words reinvesting profits) brought additional income in the amount of: 6105.1-5000 = 1105.1 $. ✅It seems that the figures presented above are not impressive, but the use of compound interest in trading can truly work wonders. In what way? Let's take another look at the compound interest formula described above. It is obvious from the formula that you can increase profit by increasing any of its components. Let's not touch the amount originally invested, but play with the value of the investment period and the interest rate. To begin with, let's imagine that we will reinvest the profit not every year, but every month. Then the investment period will be 12 *5 = 60 months. The interest rate corresponding to this investment period will be equal to: 10%/12=0.833%. Let's substitute these values into the formula for calculating the compound percentage: (10000(1+0.00833)^60)-10000=6449,8$ As you can see, under the same conditions, but with monthly reinvestment of profits, the income will already be $ 6449.8- $6105.1 =$344.7 more. Well, if the trader's income is not 0.833% per month, but, for example, 5% monthly, then under the same conditions and for the same period, the profit will already be: (10000(1+0.05)^60)-10000=176791,86$ Felt the difference, impressive, isn't it? And what if you reinvest profits not monthly, but daily? Let's figure it out. With an average yield of 5% per month, the average daily yield will be 5%/21= 0.238% (here 21 is the number of working days in a month). The investment period will be 5*360=1800 days. Let's substitute the data into the compound interest formula: (10000(1+0.00238)^1800)-10000=711617,5$ This is already 711617.5-176791.86 = 534826 $ more than with monthly reinvestment of profits. More than half a million dollars (and this with an initial investment of only ten thousand)! That's impressive. That's what compound interest is in action. ⚠️This is about theory. In practice, it is impossible to achieve a constant percentage of profit every day. Some days a trader inevitably ends up with a loss, some with a profit, and the size of these losses and profits is always different. So it is unlikely to substitute the value of the percentage of profit per day in the above formula. However, the very essence of compound interest, clearly shown above in figures, gives the trader a fairly powerful tool for earning. A trader can and should use compound interest when creating his own money management system. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by UnitedSignals
6
Be Prepared - In control of the Survival ModeHI Traders, here come another workshop on being prepared for any possible outcomes in trading. Whether you're a new or experienced traders, at one point, you'd definitely face some obstacles completely out of your comfort zone, where you're just stumbling without any clue on how to solve it. Here sums up 4 key elements on how to be in-control of any possible outcome 1. Flexible - Successful traders have extremely good flexibility. Regardless of what's put infront of their face, they adapt. - Market conditions vary from day by day, so when the ordinary things/ setups aren't working well, what's wrong? Most likely either the market condition has changed, or your mindset is changing. - This is why having multiple strategies to trade across different market conditions are so important. If you're only focusing on a specific market condition (eg. Trend Trader), then knowing how to identify when the market is in a non-trending condition is crucial to prevent yourself from making unusual decisions or taking unnecessary risks. 2. In control of the Survival Mode - The Fight-or-Flight response refers to how humans have high tendency of making impulsive decision based on unknown fear. - By managing the Survival Mode , you're truly able to avoid yourself from making irrational decision due to any unusual market condition, such as a sudden volatility spike. - When you're in a deep drawdowns, ONLY think in-terms of probability and possibility . Question yourself: "If I continue trading, would it lead to a snowfall effect?" OR "If I stop trading, would it affect my long-term expectancy?" 3. Emotional-detachment - Great traders always have a Poker face, not because they're inhuman, but because they've been humbled by the markets way too many time. - Sharpen the ability to spot where you have a high tendency to deviate from your plan, then prevent yourself from making impulsive decisions. - Losing traders are in the blue moon when they've got a good position running, and being extremely negative when they're having drawdowns. - If you're overly attached to the results or outcome on any particular trades, it basically hints you that you should probably stop trading and focus on your reflective process. 4. Problem-solver - Avoid being too harsh on yourself. - Trading is a marathon, not a sprint. So stop excessively blaming yourself based on any particular decision, give yourself a pat in the shoulder, and ask yourself "how can i do it better next time?" - Being positive is one huge element in becoming a successful trader. You don't want to get so beaten up until a point where you're nervous clicking the bid & ask buttons. Build up the necessary confidence to understand that you may not win this trade, but in the long-term I will always come out as a winner. Let me know in the comment below what's your worst trading experience! Hope all of you have a good trading week, take care and trade safe. If you enjoy the content, make sure you follow my profile and give me a thumbs up for daily fx forecast & educational content.
KRAKEN:BTCUSDEducation
by TraderNeoh
Smart Rebalance StrategyThe smart rebalance strategy is a holding kind of strategy that works like the following: The user chooses a certain number of pairs, an initial capital and a rebalance timeframe. The capital is split equally between each pair. (ex. for 2 pairs: 50% on each). On each rebalance timeframe (on the bar it happens), pairs balance who grew bigger than 50% will be redistributed to other pairs, making sure that after the transaction, the total capital is once again split equally through all pairs. This means selling pairs whose price went higher than the others, and buying those who dropped. In other words, selling high and buying low. The inital capital corresponds to the quote currency of all pairs, so each pair must have the same quote currency. (ex: USDT or BTC markets) On each interval, the strategy will send orders for each pair saying whether to buy or to sell, and the quantity. Goal of the strategy is to grow your initial capital while splitting it through several pairs and keeping the pairs repartition unchanged.
Education
by cyatophilum
2