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Risk Management

Crypto backtesting and chart work in price action analysis Hello everyone: Today let's do some backtesting and chart work on the crypto market. I have done similar videos on Forex and Indices’ market, and I want to do one as well for crypto to showcase price action that will happen in any market, any time frame. Make sure to check out the below videos on why I backtest and do chart work. This is to help us to get better at trading as a whole, and remove emotional decisions. I will dig back some crypto pairs and look at the bullish impulse on the HTF, and go down to the LTF for confirmation and entries. Any questions, comments, or feedback please let me know :) Thank you Jojo Backtesting & Chartwork on Forex Market Backtesting & Chartwork on Indices Market How & Why I backtest: Prevent Blowing an account by backtesting:
BINANCE:ADAUSDEducation
by jojofang0901
39
Equity Curve - A Reflection of Your Trading PerformanceHi Traders, today's topic is regarding 'Equity Curve' as the best reflection of your trading performance. Personally, when I was new into this business It was uneasy for myself to put aside the monetary aspect and truly trust the process. In trading, money comes and goes in a blink. To be consistently profitable, you MUST learn how to protect your existing capital, and your profits. Money will follow once you have consistent execution and action plan. "In trading/ investing, It is not about how much you make but rather how much you don't lose." - Bernard Baruch Equity Curve A - Reasonable Risk-to-Reward - Emotional detachment - Shallow drawdown - Consistent execution (Back-tested strategies) - Comply to trading plan Equity Curve B - Constantly search for the 'best' trade (Gambling behaviour) - Steep drawdown (Impulsive decision) - Over-trading & Revenge trading - No clear trading plan - Inconsistent action plan (Bad performance) Emotion acts like a two-edge sword, It is about when to trust your gut-feeling/ intuition. Understand your personality, make adjustments from there. Comment down below how's your current equity curve looks like? Trade safe as usual. Do follow my profile for daily fx forecast & educational content.
KRAKEN:BTCUSDEducation
by TraderNeoh
4
How To: Super simple moving your stop losses in TradingViewVery quick video as a follow up to yesterdays placing orders one. In this video I show you how crazy simple it is to move your stop losses up within TradingView to protect your profits. Such an easy to use system. So visual. So cool! You can trade like this for SHARES, CRYPTO, FOREX and more... Well done TradingView and TradeStation Check out how you can sign up to use TradeStation here: www.tradingview.com And see more award winning brokers here: www.tradingview.com
NASDAQ:PLUGEducation
by zAngus
11
Reversal Impulse Price Action - Trend Change Confirmation Hello everyone: Welcome back to another price action structures/patterns video. Today let's take a look into the reversal Impulse price action from the market. I have back tested and seen these types of price action happen very often in any market, any time frame. Its signaling a very strong trend change and reversal momentum from the price. Let's take a look into what it looks like usually, and how to effectively take advantage of these types of price action in the market. Seeing them on the HTF, giving us strong bias for a reversal trend change coming. Seeing them on the LTF, signs of reversal from the LTF first, and leading towards the beginning of the HTF reversal move. Remember, Multi-time frame analysis is key. If we spot a potential HTF reversal impulse, then likely LTF price action is also showing reversal price action structures/patterns. We want to pair as many positive confluences as we can together to give us an edge entering the trades. As always, any questions, comments or feedback please let me know. Thank you Jojo
OANDA:US30USDEducation
by jojofang0901
39
5 Tools For Dips, Crashes, and VolatilityVolatility is challenging. But it can also be exciting if you're ready for it. In this idea we're going to show you five tools to make better decisions for when markets are volatile, choppy or bearish. 1. Invert Chart Your Chart 📉 Invert your chart to see how it looks turned upside down. Open a chart and type ALT + I on your keyboard. On a Mac, type ⌥ + I. This keyboard shortcut flips your chart upside down. Now ask yourself: would you buy or sell? Selling an inverted chart = bullish. Buying an inverted chart = bearish. Challenge your bias. 2. Regression Trend, Pitchforks, and Fib Retracements 📐 Certain drawing tools work better than others in volatile markets. That's because they are designed to measure dips, bounces, and statistical anomalies. For example, the Regression Trend tool shows upper and lower bands representing a number of standard deviations away from a trend line. Pitchfork drawing tools help you see trends or channels while having standard deviations plotted at the same time. You have access to four different Pitchfork drawing tools. Finally, there's Fibonacci Retracements . Harness the golden ratio to plan for bounces and possible levels of support. 3. Pine Script Public Library 👨‍💻 Seek help from others, especially the coders. Head over to the Pine Script Public Library and start exploring the scripts coded by other traders and investors. There are custom tools, strategies, and indicators for all market conditions. Remember, Pine Script is also how you can automate your strategy and create your own indicator. Remove emotion from your decision-making. Write your trading or investing rules in code. 4. The Long and Short Position Tool 🗺 Plan your trades before you make your trades. The Long and Short Position Tools are how you map out your trade ideas directly on the chart. Set an entry, an exit, and a take profit target. See your trade on the chart and visualize it. Planning your trades with these tools will save you a headache or two. Learn how to use the Long and Short Position tools here. 5. Education on TradingView 🎓 The Education section on TradingView is free and open to all. Here you will find thousands of publicly available guides to trading and investing. Each guide was made by a TradingViewer just like you. Learn about their strategy, how they approach markets, and what their processes are. You can also follow the authors, ask questions in the comments, and reach out for additional help. Thanks for reading this guide! We hope you enjoyed it and please leave any questions or comments below. Also, please share your favorite tools for managing trades in a choppy market.
TVC:VIXEducation
by TradingView
62
The Ultimate Stop Loss GuideHi Traders. Today's topic is requested some of the followers, wondering why they're constantly getting stopped out OR misled by the "stop-hunt" concept. Have you ever questioned what's the purpose of a stop loss (SL) in the first place? Majority is taking SL as a tool to maximize their position sizing rather than an emergency break preventing yourself from a heavy collision. SL is nothing, but the final defense that determines the validity of the setup. Once it is being triggered, admit that you're wrong, close out the position and move on. Either way, if you're constantly moving your SL OR having it too tight, you've clearly misunderstood the purpose of SL all the while. Above illustration is solely for demonstration purposes, not a general indication of all. Questions before you determine a SL location: 1. Is my SL obvious? Is it sensible? 2. Where's the majority placing their SL? 3. If it is triggered, is the setup still valid? 4. Should I re-enter? 5. Is the Risk-to-Reward reasonable? 6. Re-assessment (Does my strategy fits well into the current market context?) Solutions: - Emotional control (Constantly remind yourself the purpose of a SL) - Use an ATR-based SL (Eg. 1 ATR below the swing low) - Determine the volume/ volatility of the market (Eg. If the volatility is high, give it more room and expect some spikes) - Back-test (How to improve your expectancy? Prove it through statistics) - Ensure the Risk-to-Reward is favorable before you even consider placing a trade - Forward-testing with smaller sizing to identify the performance in the live market condition - Wider SL does not mean it is better! No matter how good you are, there will be times where the markets prove you wrong. Keep learning and practicing! Stop the blame, the only person in charge of your decision and success is you. "Losses are necessary, as long as they are associated with a technique to help you learn from them" - David Sikhosana Trade safe as usual. Do follow my profile for daily fx forecast & educational content.
KRAKEN:BTCUSDEducation
by TraderNeoh
17
Is there stop loss hunting in trading ? How to deal with it ?Hello everyone: Today I want to discuss a common discussion about new and experienced traders. “Is there stop loss hunting in trading?” Many wonder, since they can all recall the moment where price just hits their SL on a trade, and then the market quickly turns around towards their desired profit direction. I want to dig deeper into this and explain it with different viewpoints, from a technical and psychological view. The vision I am trying to provide is that, thinking about is there stop loss from the brokers won't help you to get better in trading. It's a mindset thing we need to understand. For example, whether there is or isn't a stop loss hunting, it's nothing you or I can change or control. It is what it is. However, if you understand this, then it's about adjusting your plan, strategies and trading style to these types of volatility moves and come up with the correct mindset to work around it. Technical part: More often, people set their SL and see their trades get taken out just a few pips above before reversing the opposite way. Dig deeper into this. Is it a fake breakout, is it just being impatient and jumping the gun? Is there LTF continuation/reversal correction that gives you bias to enter a long/short ? Is your analysis aligned with the higher time frames ? Many factors on why a trade is at a loss, no need to jump right into a conclusion that it's the broker who is stop hunting you. This is why we always look for confirmation and confluence when we enter trades. Just because the price breaks the support and resistance line people often use, it's not an automatic buy or sell. Same goes with trend lines and other indicators people use. We need to confirm it with price action. After an impulse phrase, was there a continuation correction phrase? If not, then it doesn't justify a buy entry. This is also why we backtest so we see these types of price action often, and acknowledge what we need to do in order to work our ways around it. Psychological part: When traders take a loss in this way, hitting the SL and reverse, this creates a negative emotion in them. They often get frustrated and upset, hence in human nature, we tend to blame others. But take a step back and understand this: The market can do whatever it wants to do. Most beginner and newcomer traders think the market MUST follow their strategies and style. If it doesn't, then something is wrong with the market, the brokers, their mentor/coach, their strategies...etc. This negative mindset needs to change. First of all no strategies and style will promise you 100% strike rate and profit. Any strategies you take will incur a loss, it's how you deal and manage it that will show you as a consistent or inconsistent trader. Second, if you have experienced several losses due to the “Stop hunt” in your own mind, then instead of blaming the brokers or the markets, start looking into your trading plan and management. Are you experiencing FOMO ? Are you over leverage trading, and revenge trading ? Are you taking into consideration your risk management ? Entry, SL/TP, how much to risk ? Is it consistent with your plan ? These are the things you can control, rather than external factors which you can not. Adjust yourself. Third, remove your negative emotion from your losses. Take it as a learning curve and experiences earned. Then the next time you enter a trade, you will remember the lessons that were taught to you by the market. This is why we journal our trades so we can look back at them and understand what we did. I hope these few pointers will help some of you to get back on the positive direction of trading. No need to think and get upset if there is a stop hunting of your trades. Instead, use that towards your advantages. If you consistently see a false breakout and reverse, then come up with a strategy and plan to capture that reversal move. No need to blame the market or the broker, that is something you can not control. Jumping brokers to brothers simply won't help you to eliminate that psychological mindset of a stop hunting. I will put below several other educational videos on the topic we discussed today. As always, any questions, comments or feedback welcome to let me know :) Trading Plan: Risk Management: Trading Psychology: FOMO: Revenge Trading: Over Leverage:
BITSTAMP:BTCUSDEducation
by jojofang0901
68
How Much Should You Deposit / Invest?Hello TradingView Family, this is Richard, and today I am going to answer a question that I get asked a lot. Question: How Much Should I Deposit / Invest? The answer to that question is very subjective. Some say that "a minimum balance of 10 000$ is required", some others say "start small and then deposit more on the go". In my opinion, to know how much to invest, you have to start the other way around. How much risk per trade do you feel most comfortable with? Is it 20$? 50$ or 100$... Those who know me, know that I enter with a fixed risk per trade and always target double. For some of you, 20$ is nothing, and the 40$ reward isn’t worth it. While for others 20$ may be too much, and thus can’t handle the loss. Find that 1% risk per trade that suits you best. Your 1% risk should not be too much for you, so you won’t get emotional. In parallel, it shouldn't be too small, as then you won't take your trading seriously. Find that 1%, then make it x100, that’s how much should deposit. All Strategies Are Good; If Managed Properly! ~Rich
COINBASE:BTCUSDEducation
by TheSignalyst
86
Manipulation Scenario : 1. Support was tested several times and finally (looks) a breakdown. Maybe some traders will sell on break support. And put SL a little above the candle that breaks the support. But the price made a pinbar / hammer, went back up and touched SL. 2. After the SL is touched, the price finally breaks the trendline and closes above it. Traders will think this is a false break with the trendline breakout confirmation and become a best time to buy with SL just below the previous low. However, prices fell back and touched SL for the second time. 3. After the SL has been touched, the price create a pinbar which is an indication of buyer's pressure. Traders might think not to be fooled once again and think that the support is really broken and decide to sell in the SBR area with SL above the previous high. But again, the price was not friendly and touched SL once again. 4. The price finally made an upside impulse and formed a bullish pennant which became a continuation pattern. With this pattern the trader should take a long position. However, due to doubt and don't want to become a victim of SL for another time, trader decided not to open a position. And the result is price actually goes up without being able to get some profit. After being hit by SL several times it does disturb our emotions as traders, but if we have calculated each risk of SL before jump into trade and put SL which suitable with our risk tolerance, it shouldn't be a problem. JUST ENJOY THIS PROCESS
Education
by tom_mok
3
Risk Management: How to set a Take Profit (TP) for your trades Hello everyone: Today let's dig into an important topic of setting a Take Profit (TP). While many traders will often have different strategies and methods on a TP, let's take a look on my approach and style on this. ITs important to understand there is no right or wrong when it comes to setting a TP. ITs what you have in your plan and what makes sense to you as a trader. It should align with your strategies and trading style also. Some may take profit quicker and move on, while others hold for longer term. Understand that both methods can have drawbacks, it's what trading is, double edge. So, make sure we follow our plan and executive accordingly to our management. Otherwise we are just making emotional decisions again. Let's look at a few scenarios on how I would set a TP. Directly tie in TP is a SL. I usually will only enter a trade if I have 3:1 RR. Meaning risking 1% to gain 3% or more. Therefore my TP will almost always be 3 times of initial SL amount or room. Few TP scenarios: -Beginning of the the previous correctional structure -Double Bottoms/swings low area, watch for LTF reversal price action and correction When price breaks ATH, monitor the price action on the LTF for bearish reversal. I would want to see a trend change, rather than a pullback. Few things to consider: -Understand you will never enter at the lowest point, and exit at the highest point Make sure you have a plan before so you will not get into an emotional decision. Always know what you plan to do before it happens. No Right or wrong as long as you follow your original plan. You can of course in time modify your plan based on market conditions. Any questions, comments or feedback please let me know :) Thank you
OANDA:XAUUSDEducation
by jojofang0901
27
Fear of Missing Out (FOMO) - Solutions?Hi Traders. Today's I'm going to discuss about "Fear of Missing Out (FOMO)". It is a very common trait among new and experienced traders. Till present, I still have this 'evil' occasionally popping out leading to unnecessary loss. One thing to remind yourself is that, emotion isn't something you can eliminate completely. Human beings were made with emotions, what you can do is to organize your mind to control its performance. "Chains of habits are too light to be felt until they are too heavy to be broken" - Warren Buffett Constantly learning and practicing, put knowledge as the priority is what you can do to improve your performance and ensure your mind is at its peak. Do the right thing. The illustration above isn't a general representation of all, but for someone who's regularly over-trading and revenge trading, this post is worth a read. Below I've concluded several points if you're having FOMO. 1. Emotionally triggered/ attached - During my early phase of trading, I was always emotionally triggered or shock by the market movement. Eg. "Why is it going up? Why is it going down? Why is it doing this? Why is it not doing this?". First and foremost, the market movement is created by millions of traders (randomness). In the short-term it is mostly driven by technicals, long-term mostly driven by fundamentals. No one has any control over the market movement or its direction (Unless you're doing insiders' trading). Do not try to impose your personal will or expectations in the market, because it simply doesn't care. Trade what you see, conduct your due diligence, that's it. If you're always having that stubbornness thinking you must be right, it's just the matter of time where reality hits and you'll get hurt pretty badly. 2. Not following your initial plan - To be consistently profitable, you need to tackle the market everyday in the same perspective. You cannot allow yourself to constantly switch from one strategy to another. Consistent action plan generates consistent result, put more attention into the process not the outcome. "The eagerness to control the outcome is illusional" - Rande Howell 3. Constant re-assessment (Overthinking) - If you're a FOMO person, you'd tend to overthink a lot. "What If I don't sell now It goes down? What If I don't buy now It goes up?" You simply do not need to get involved in the market all the time to make money, profit comes when you're doing the right thing over a long period of time. 4. Jump from one bias to another - From the illustration above, have you ever switch from long bias to short bias so quickly just because you "think" you're wrong? Because of some sudden market movement, you unconsciously throw your initial plan out of the window then make some impulsive decisions. If yes, then from now onwards you MUST remind yourself that there are only 3 general directions in the market (Up/ Down/ Sideway). Stick to your initial plan or bias, unless you're an experienced trader with great flexibility on spotting short-term momentum shift. Or else, simply allow the market reveal whether you're right or wrong. Avoid rotational market condition especially when you're new into trading, because it is usually where majority tend to give back their hard earned profits. 5. No strategy/ game plan - Trading is not a get-rich-quick game. Work hard, study, and practice to improve your knowledge. It is a marathon not a sprint, to succeed in this business you will experience failure. Never give up, and learn to make peace with your losses. As long as you stay in the business long enough, you will succeed. Put in the effort to back-test, it gives you the confidence to execute the same setup repeatedly as you have the data to back-up your mental capital when you're having some terrible drawdown. Yes, I've seen traders who succeed without back-testing, but trust me it is very unlikely. Knowledge is power. 6. Nervous/ panic - This is one of the common texts I receive regularly. "What should I do? I am currently down xxx $ amount". Discipline is the toughest yet the strongest tool in trading. If you're uncertain about your decision or the outcome, simply avoid them. Hesitation comes from fear, If you're uncertain about a position, don't take them. It makes no sense putting your money at risk on something that you don't even know. Quality over quantity, focus on high probability setups. How do you assess the quality of a setup? Simply back-test them, then find out the long-term expectancy of the strategy. "The market is a device for transferring money from the impatient to the patient." - Warren Buffett Comment down below what's your worst losing streaks and what's the underlying cause? Trade safe as usual. Do follow my profile for daily fx forecast & educational content.
KRAKEN:BTCUSDEducation
by TraderNeoh
448
US Indices Backtesting and Charting Session On Price Action Hello everyone: As promised I will periodically make these backtesting/chart work videos on different markets, pairs and timeframes. This is for me to present the importance of backtesting in trading consistency. Not only it will help traders to not have emotional decisions such as FOMO or fear of losing, it will give traders confidence at identifying trade opportunities and execute them when the time comes. The more we do backtesting, the easier we spot an entry, setting a SL/TP, and remove any emotional decisions. Today I want to go into the US Indices, specifically the SPY, NASDAQ, DOW. I will pick a few market crashed examples and dig deeper into them. Few educational videos below on the topic of backtesting, and why it will help you in your trading journey. How & Why I backtest: Prevent Blowing an account by backtesting: Backtesting & Chartwork on USDCAD: Any questions, comments, or feedback please let me know :) Thank you Jojo
OANDA:SPX500USDEducation
by jojofang0901
20
Education: Why you should NOT buy or trade signals!" Give a Man a Fish, and You Feed Him for a Day. Teach a Man To Fish, and You Feed Him for a Lifetime " - unknown origin * 🔴 What does this quote mean, and how does it related to trading (signals)? The quote means that you can indeed resolve an issue by providing a hungry man a fish, serving his immediate need, but if you really want to help him you should teach him to become self-sufficient. Similarly, while providing a signal, you can provide the signal to a winning trade to someone, but if you really want to help him, you teach him how to analyze the market and become self-sufficient in trading. 🔴 DISCLAIMER This post will probably get some backlash from users who provide signals, be it paid or not, because it goes against their "business model" and might reduce their revenues in one way or the other. But that is fine by me, this is my personal opinion, and I advise every single reader of this publication to draw his own conclusions. 🔴 What are trading signals? Trading signals at a minimum constitute of an entry price and a direction. Example : buy $Gold at 1825 USD. Some (but not all) signal providers also give you a Profit Target and/or a Stop Loss . They give you actionable information on where to open a trade, which direction you should trade and sometimes when you should close the trade. 🔴 That's easy! Nothing wrong with that, it can make me money, right! Right??? Yes, it can, you are absolutely right that you can make money off a trading signal. However, there are a couple of questions that you need to ask yourself : How many trades, what percentage, can you expect to win? If not provided, where should you take profit or cut your losses? What is the reason for entering the trade? What confidence do you have in the trade if you're just following someone elses instructions? What if you lose 10 trades in a row, was this expected? Who is responsible for your losses? You, or the signal provider? What do you learn from trading signals? What are the emotions you have to go through during the trade? What if your signal provider stops? 🤔 Additionally the question arises why the signals are provided. Is it altruism? Or is it conceivable that the provider does not make enough by trading and wants to top-up his gains(?) by selling signals. Income from trading is not guaranteed, when you sell signal you make your profit the moment the transaction takes place, independent of the outcome of the trade. That's guaranteed 💰. And yes, people will be unhappy and no longer order the providers' services, but there are always new "potential buyers" coming to the financial markets. 💡 " Trading signals does not guarantee your income, it guarantees the signal providers' income. " 🔴 OK, fair enough, but what should I do if I don't know how to trade? Allow me to be blunt here, if you don't know how to trade, you should either learn how to trade, either keep your money in your pockets. Ask yourself why you want to trade? What is the end goal? ► If you say that you just want to make some extra money, then taking up a 2nd job is a much more reliable source of income than throwing your money at the markets based on something someone else said, don't you agree? Other than that, as said earlier, if you depend on a signal provider, that income (if any) will disappear the moment the signals do. ► If you want to become a trader, become financially independent, get rid of your daytime job, get out of that hamster wheel, I strongly suggest you invest the time and effort to learn how to trade for yourself. 🔴 MY ADVICE Don't be lazy Don't trade signals and Learn how to trade Hustle Grind Fail Learn from your mistakes Fail again Don't give up Don't expect to become rich overnight Keep learning Do your own research and analysis Rinse and repeat until you succeed .... That, imho is the only way you will achieve the financial goals you have set for yourself and feel good about it... So, let's take our initial proverb and give it a trader twist: 👉🏻👉🏻👉🏻 " Give a Man a Signal, and You Could Feed Him for a Day. Teach a Man To Trade, and You Feed Him for a Lifetime " - Nico Muselle 💥The decision is all yours, if you want it bad enough, you can do it!💥 🔴 Useful information This TradingView article gives you some additional information on the things you shouldn't do ... Give it a read before you hand out your hard earned money. www.tradingview.com Do you agree? What is your view on signals? Let's open the discussion in the comments below ... ✌🏻 PEACE OUT Liked this post ? "Smash that like button!" 👍 - follow for more educational posts and alerts 🔔 when a new one is published. Oh, and maybe you'll like the related ideas linked below as well? Thank you for your visit! 🙏
Education
by Nico.Muselle
292
Make profitable trading decisionsHi Fellow Traders The greatest tool in your arsenal is your Risk/ Reward rules when evaluating the potential expencency and outcome of each scenario. By using this to protect your account it may help you to survive long enough to be profitable. Risk/ reward is quite simple. If I risk $1 on a trade, I need to make on average $1.50 to be profitable. In other words, my risk is 1 and my reward 1.5, therefore it is a 1:1.5 risk/ reward ratio, which is acceptable to potentially enter a trade if it meets your criteria. You want to try an average between 1:1.3 and 1:1.7 when looking for trade opportunities. The Risk/ reward tool on Tradeview is excellent for evaluating and getting a proper picture of the potential upside and downside before making a decision. I hope you enjoy the video and that I have been able to contribute to your potential success as a trader. Please feel free to comment and reach out if you help. Regards Wayne_G
Education
by Wayne_G
1
Trading Psychology - State of MindHi Traders. Today's topic is something I've been highlighting all the time which is trading psychology. Bare in mind, you can have or given the best strategies but still not being consistently profitable due to an unhealthy psychological state. The other day, there was one relatively new trader, 1 month into the business asking for my help, as he was involved in a EU short without any Stop Loss with over 100pips negative. Pray & hope is a common mistake of new traders, if you are watching this post It is likely that you're trying to improve yourself. In this educational post I will be uncovering some of the emotions that we all go through as a trader. Winning Ask yourself, how many times when you have an amazing plan, but it got thrown out of the window just because your account was in a huge unrealized profit? Greediness (Euphoria) kicks in, you begin doing things that's not included in your initial plan, you scale-in and over-leverage thinking that this MUST be "that" winning trade. Ego and arrogant starts kicking in, result in irrational behaviour. Always remind yourself that, no matter how good you are at predicting the market, the probability of outcome of each trade remains 50/50. The only way that you can have an edge in the market is by back-testing, and utilize the past data into your advantage to develop strategies that give you positive expectancy overtime. Constantly imprint your initial plan into your brain regardless of how well the position is moving into your favour, have an exit plan beforehand, and stick to it. Things can always go wrong, stay focused. Losing Fear comes from hesitation. For majority of novice traders, they're always hesitating clicking that buy & sell button. simply because they're not willing to put in the work to back-test, practice, and learn. Believe or not, I've seen plenty of confident traders telling me that they are going to be "the one". Imagining that they can master the craft within months, but that's simply not the ugly reality. Market decides wherever direction it wants to go, if you're thinking that you can beat the market, you're putting yourself into some self-sabotaging mentality. Usually what happen when traders' in drawdown, is that they'll begin overthinking. Being denial that they 'cant' be wrong, which is a huge warning sign of indiscipline. Result in moving their stops, not cutting their losers quickly, or at worst not having any SL. As mentioned earlier, the probability of outcome of each trade is always 50/50, regardless of how "market genius" you are. If you're wrong on particular position, cut it and move on. Believe in your intuition, when things go wrong, it really does. There's always another trading day, there's always more opportunities, get a break and come back stronger. Imagine your account balance as your bullets, you can't fire a gun without it, do not make unrecoverable mistakes just because of that moment of irrationality. Emotional Control (Balanced) This is what every successful trader striving for, which is understanding their own emotions and pull the hand brake when necessary. Every successful trader I've met have one common trait, which is having little opinion in the market. Novice traders always think that to make huge profit, you 'must' know which direction its going. By having little opinion in the market, it allows you to have a peaceful state of mind, allowing the markets to do whatever it wants and stay reactive. "Trade what you see not what you think", stay humble, and be an observant. You do not need to be involved in positions all the time to make profit, successful traders know when to step back and remains rational all the time. Do get it right, being a successful trader does not mean you need to get it right 100% of the time, it is about how fast you are able to recover yourself during a drawdown period, and avoid being sucked into the emotional vortex. Personally, long long time ago when I first started trading, I got involved in an AUDUSD short position, I was down over 120 pips ended up receive a margin call, blew up 75% of my account. But hey, It was a great experience! Comment down below what's your worst trading nightmare, and share your experience! Knowledge is power. Know how to make peace with your losses and profits will come. "The outcome of a trade cannot be controlled, but the mind can be organized to control its performance" - Rande Howell Trade safe as usual. Do follow my profile for daily fx forecast & educational content.
KRAKEN:BTCUSDEducation
by TraderNeoh
220
Detail look into “M” & “W” Structures/Patterns in Price Action Hello everyone: Welcome back to another price action structures/patterns video. Today let's take a look into the “M” and “W” style structures/patterns. Many traders may use these types of structures/patterns in their trading plan/strategies. Let me show you guys my interpretation of them, and how I utilize them in my trading as well. It's important to understand many of my previous price action analysis, structures/patterns videos all tie into this one as well, I will put those links below. Essentially, a “M” or “W” style pattern is a double tops/bottoms pattern that appears mostly towards an end of a run of the current price. They are “reversal” price action structures/patterns. They are most effective when we tie in other price action structures/patterns with it. Let me give multiple examples of these structures/patterns in different markets and time frames. “M” Style Pattern -Double tops structure after price failed to continue the first initial push down. -Top of the Right M, needs to have a reversal structure on the LTF or smaller time frames (ascending channel, H and S pattern..etc) -Can either enter at the breakout of the reversal structure or the first correction after the impulse down “W” Style Pattern -Double Bottoms after price failed to continue the first initial push up. -bottom of the Right W, needs to have a reversal structure on the LTF or smaller time frames (descending channel, Inverse H and S pattern..etc) -Can either enter at the breakout of the reversal structure or the first correction after the impulse up Double Top/Bottoms: Ascending/Descending channel: Head and Shoulder Pattern: Continuation/Reversal Correction: Multi-Time Frame Analysis: As always, any questions, comments or feedback please let me know. Thank you Jojo
BITSTAMP:ETHUSDEducation
by jojofang0901
35
How to trade successfully - Crypto1. Knowledge Is Power 2. Set Aside Funds 3. Set Aside Time, Too 4. Start Small 5. Avoid Penny Stocks 6. Time Those Trades 7. Cut Losses With Limit Orders 8. Be Realistic About Profits 9. Stay Cool 10. Stick to the Plan Successful traders have to move fast, but they don't have to think fast. Why? Because they've developed a trading strategy in advance, along with the discipline to stick to that strategy. It is important to follow your formula closely rather than try to chase profits. Don't let your emotions get the best of you and abandon your strategy. There's a mantra among day traders: "Plan your trade and trade your plan."
Education
by nevada999
Two New Tools to Improve Your ProcessProcess is important. It's how you stay disciplined. It's also how you focus on the ideas and strategies that you are best at. In this post, we'll show you two tools that may help your investing or trading process. Our New Alerts Create an alert and then sit back and wait. Get a notification delivered to your phone, email, and browser. Right-click on your chart to add an Alert or click the Alert icon ⏰ if you're on our free mobile app. Make the markets work for you by creating alerts at important price levels. Our team is excited to show you our new alert feature that supports dynamic messages. This is a game changer for those who understand Pine Script and the importance of alerts. You can now code alerts to display messages that dynamically adjust based on price action or other factors. Our new script alerts use an `alert()` function, which works in both strategies and studies. To get started with this, open the Pine Editor at the bottom of your chart while on a desktop computer. To learn more about this, read our launch blog post here. New Watchlist Features We know how important your Watchlist is. That's why we recently launched Sections and made it easy to add symbols to your list. To get started, open TradingView on your desktop computer and then right-click on your Watchlist. Then select either of these two options: Add Sections or Add Symbol. Sections will create a divider on your Watchlist with a custom name. This tool will help you better organize your Watchlist. If you click Add Symbol you will be directed to add a symbol of your choice to that exact point on your list. By the way, if you're reading this from our mobile app, you can press and hold on any symbol to remove, flag or open a chart. Pro tip: your watchlist syncs perfectly between your mobile phone and computer. Take your watchlist anywhere. We hope you enjoyed this post! If you have any questions or comments, please write them below. Our team wants to help and we listen to your feedback.
XETR:DAXEducation
by TradingView
73
Risk Management: prevent blowing a trading account Hello everyone: Today I want to go in depth into this particular topic as many beginner traders will make this similar mistake in trading sometimes in their trading journey. It's important to understand that it's all part of a learning curve you must endure when it comes to consistency in trading. I myself had done this in the beginning of my trading time, and it ultimately comes down to how you manage your emotion that is going to help you to learn from this mistake and move forward. Some may go ahead and start making the mistakes that I will mention below, and accelerate into blowing their account. Some may acknowledge what's happening, and learn from their mistakes to prevent such things from happening in the future. There are several key factors on what a trader should do and understand in order to not blow a trading account. I have made several key videos on these different topics which I will include below. I will touch on all these topics to provide a well-rounded suggestion and feedback on this matter. It's very important that you must have a good understanding of each area so it will help you to not only be consistent but to also continue to grow and compound your trading account in the future. Few key points: Trading Plan A trading plan outlines your plan, rules and management for your trades. You must have a good written plan to guide you in situations. We don't make emotional decisions that may lead to many trading errors. Focus on creating one is the start. Have a few go to setups that you always look for in the market. Identify them and screenshot them so you know to take those over and over again. Backtesting We backtest so we are familiar with price action and the market’s movement. By backtesting, we train our brain to recognize the same/similar price action that has happened in the past. This allows us to execute without fear, or fear of missing out. Backtest & Chartwork Forecasting/Scanning the market: Forecast the market is how we get a bias with the current live price action of the market. We see setups we like, and have confirmations to enter. If they don't happen or develop, no trade and move on. No need to have “ego” to prove everyone you are right. How to scan the market Risk management Stick to proper risk management. 1% or a set amount is usually the best. Having a 3:1 RR is ideal when trading so even if you are less than 50% strike rate trader, you will see at least BE or small profits. Make sure you understand the exposure you are putting yourself into. Stop Loss When it comes to calculating your entries, you must set a Stop less on every trade. Don't just remove it in hope the price will turn around. Many new traders often don't set SL or move them as price gets close. This is how you will lose more money in the long run. Trading Psychology: (FOMO) Fear of missing out and fear of losing are the biggest trading psychology trader encounter. However, if you do enough backtesting, and have a plan in place, you can potentially remove these emotions. Understand that you will never capture all the moves that happen in the market, be graceful and positive on the opportunities you get. Over Leveraged Most new traders over leveraged their account. Having a small account with huge leverage is why traders blow their account in a short time. Leverage can work for you as well as against you. You must understand properly on leverage, margin and more. This ties you with your risk management and your SL. Revenge trading When new traders start losing money, they tend to want to “revenge” their losses by entering random trades, multiple trades and more. This combining with over leverage is how a new trader can blow their account in 1 day. Journal: Last but not least, journal down every single trade that you have taken. Whether it resulted in profit or loss. This is how you can learn from your past experiences. Do not deviate from this. Most new traders feel this is unnecessary and choose not to do it. Unfortunately, if you don't do them, your trading journey will not move forward. You will still make the same mistakes over and over again. Blowing an account is something no one wants to go through, but if a trader does not acknowledge his/her mistakes, then it is very likely to happen again and again. So these are the few key areas where a trader should pay close attention to in order to not blow their trading account. The different strategies you trade aren't the issues why some blow their accounts, rather it's about their plan, management, mindset, emotion, psychology and expectations that ultimately decide the faith of the trading account. Thank you Jojo
BITSTAMP:BTCUSDEducation
by jojofang0901
33
HOW-TO A look at loses with the MTP History TrianglesIn this help Tutorial, I would like to take a look at losing trades, with a review of our "History Triangles", that are part of the MTPredictor trade (and advanced) trade Setups. Our History Tringles are the small green triangles that are placed on the chart when a valid MTP trade setup is filled on the next bar, then stopped out as the market moves in the same direction without making a new swing Pivot. As shown in the video, you can go back in time by using the Bar Replay feature to then take a look at what happened at the point of the History Triangle. We understand that using a 3min Chart is a shorter time frame that is usually used on TradingView, but this was a good example to show how, once the Chart has been rolled back (using Bar Replay), the MTP Analysis could then have been placed on the MTP trade setup to then show what happened as the market moved forward. As you can see, this would have resulted in a new short trade that was stopped out for a loss. Please note that not all History Triangles are losses, as the market could make a double top/bottom, which would print a History Triangle on the chart without the trade having been stopped out. I hope this video has helped to understand what our History Triangles are and how to use them to view what could have been a losing trade at the time. It is so important to understand, and accept, that no matter what trading approach you take in your own trading, that losses can and will occur. That is why it is vital to keep those inevitable losses small, and Position Sizing is one method to achieve that. I will have to do another Tutorial on Position Sizing soon for you all :)
CBOT_MINI:YMH2021Education
by MTPredictor
USDCAD Backtesting & Chart Work session on Price Action AnalysisHello everyone: Welcome to a backtesting/charting session on price action analysis. Many have inquired about how to properly identify market phrases (Impulse phrase vs corrective phrase). In addition, how to use trendline properly to identify a structure/pattern as a continuation or reversal correction. This session will be the start to all these. So let's take a look into this. To start, make sure you have a new chart layout just for backtesting/charting work. his won't get overlapped on your current chart for your normal analysis. Utilizing tradingview’s feature on “replay”, this is how we can backtest and do chart work on previous price action that has already happened. As we already see the price moved in that period of time, we then look for potential buy/sell bias entries to get familiar with the move within the market. 1. Start from the Higher time frames, top down approach. Utilize multi-time frame analysis to your advantage. 2. Identify what market phrase you are in, is the current price in a HTF impulse phrase ? or in a corrective phrase. 3. Now that you have a more clear bias on the HTF, then go down to the lower time frame to confirm your bias. Do we see the same bearish/bullish price action on the LTF as well ? If so then that's a good indication that both HTF and LTF have the same buy/sell opportunity. Look for possible entries on the LTF. 4. Repeat this process with different pairs, different markets to “program” our minds into looking for the similar buy/sell setups in the current, live market. This is how we don't get FOMO, or fear of losing. If you have done enough backtesting and charting, then you simply remove the emotion out of the equation. You have seen the move play out over and over again, then it comes down to probabilities. Feel free to ask me questions, comments or feedback :) Thank you
Education
by jojofang0901
11
Three Ways To Make Better Decisions in MarketsBefore we dive in, it’s important to share a few more words about who we are. We empower traders and investors with professional-grade tools, charts, news, and global data that was once only available to select groups. Our tools are available to everyone on desktop or mobile. Our goal is to empower traders and investors to grow over the long run. 💪 The key driver behind this post is that you don’t want to rush anything before understanding what's at risk, your goals and long-term plan. We realize that in spite of our efforts and intentions, sometimes people get swayed by irresponsible posts across social media, inevitably leading to unmet expectations. We want to help people avoid this. So let's talk about three ways to make better decisions in markets. Remember, this post is strictly for education in a very fascinating time in market history! Keep reading... 👇 1) Do not blindly follow someone else’s opinion without doing your own research. Use the tools available to you to learn, study, and analyze markets. Our social network is big and growing. We encourage everyone to publish their first idea, try chats, and follow others. It's never been a better time to meet fellow traders, learn with them, and grow. But as social media converges with markets, there are several important risks to discuss. Avoid picking up bad habits, being swayed by popular opinion, and succumbing to peer pressure. Avoid doing something you have not given critical thought to, objectively analyzed or evaluated yourself. These risks can include trading before you are ready, overtrading due to the abundance of ideas, putting up bigger positions than your account can handle, and changing your mind mid-trade. Keep calm and think first. Take advantage of the tools available to you whether that's backtesting, paper trading, or looking for other opinions that challenge your thesis. 2) Do not expect easy profits just because everyone is talking about it. Instead look for peer review, meaningful connections, and ways to test your own ideas. No matter how many likes an idea receives, no matter how confident its author may appear or how many chat messages are being shared, there is no guarantee markets will play out as planned. It makes more sense to first review, study, and research an idea yourself to see if it fits your long-term plan. The bottom line is this: someone else’s view should never be relied upon as a substitute for you doing your own analysis before making actual trading decisions. Our social network is best used for peer-review, new connections, and critical feedback to help develop your strategies and understanding of markets. We have a education section dedicated to this. We also have a community of Pine Coders coding the markets. The community here is meant to help you with feedback, ideas, and new concepts. 3) Do not ask for blind real-time signals in chats or comments aiming for easy gains. Instead focus on building your long-term strategy and maintaining a realistic approach. As social media and financial markets converge, more and more people are expecting easy answers on when to buy or sell. In our public chats (you can find them on the right-hand side of the platform) we encourage people to keep this mind and dig deeper. You won’t learn anything from asking buy or sell questions. You have to study, research, and examine price action beforehand. Our social networking tools offer great opportunities to talk in real-time and exchange opinions, views, and research. Using them the right way will help you grow as a trader and learn from others over the long haul. But making hurried trading decisions based on flimsy trade calls is rarely a good idea. Just don’t do it! There’s no better way to learn than by immersing yourself in an environment that exposes you to many different ideas, conversations, and strategies. We hope that our platform boosts your knowledge of markets while allowing you to perfect your craft. Insights from others can also help you make better decisions, but only if used in a thoughtful manner that focuses on patience, process, and education. In addition, always remember that you have the tools right in front of you to perform your best research. Thank you for reading! We look forward to hearing your thoughts below. 🙏
NYSE:AMCEducation
by TradingView
81