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Risk Management

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
Tips and Tricks to create an EMA Crossover SystemIn this video I show you how to set up an EMA Crossover system as proscribed by Market Wizard Ed Seykota: -How to find what EMA lengths to use -How to reduce whipsaws -How to read the strategy results -What type of risk to use and how to limit drawdown -How to deal with higher fees -How to set up the alerts when you find a good EMA length combination Summary: -I've programmed the above methodology: search for "EMA Crossover" in the indicator search and pick the author "gregoirejohnb". -The Slow EMA should be 3x the Fast EMA -To take more trades: DECREASE the Length -To take fewer trades: INCREASE the Length -To reduce whipsaws: INCREASE the multiplier -Test a Long Only strategy on historically strong markets Remember, there are no magic numbers so don't stress over the "perfect" EMA lengths. Get the settings that look good to you with enough profit and as low of drawdown as possible, and then go trade. The secret to trading is limiting your risk!
Education
by gregoirejohnb
21
🚨 Dangers Out There For NEW TRADERS 🚨 Risk management has to be top priority of every trader. better to know more about risk management as early as possible otherwise, After taking tons of losses trader understands importance of risk management. Next up - we have lack of a proven strategy. There are a number of decent strategies out right now, but none come close to the simplicity and effectiveness of our proven and test proprietary strategy. Following those, out next issue is brokers! Let me clarify: A certain broker WILL NOT make you a better trader than any other broker. Once you have the knowledge and skill set, you can use any broker that you like! But- Whether it be high commissions or the tools that are being offered, not all brokers are created equal!
BITSTAMP:BTCUSDEducation
by mbn_global
1
📜 Trading Rules for Beginners:Remember guys a trader doesn’t predict the future, a trader reacts to the market following a strategy. A winning strategy is to outline all the possibilities and have a plan for each of them!!! Always have a strategy and a plan before entering any position in the market! A profitable trade that doesn’t follow your plan can’t be considered a good trade, by contrast a lose trade that sticks to your plan, still a good trade! Stick to your plan and you will be a winner in the long term!!! .
BITSTAMP:BTCUSDEducation
by mbn_global
1
Weekly Trading Recaps: AUDJPY, XLMUSD, SUGAR, BTCUSD Jan 24 2021Hello everyone Welcome back to another quick weekly trade recap video on the positions. I am currently in the mountains (lol) so may not get to my usual weekly outlook stream due to internet. But hopefully still update analysis :) AUDJPY - Second position got out for BE. Currently in the third position in. XLMUSD - Took out for a 1% loss. BTCUSD - Still Holding, currently @ 3% profit. SUGAR - Still holding, currently @ 2.5% profit. Any questions, comments, or feedback welcome to let me know below. Thank you
BITSTAMP:BTCUSDEducation
by jojofang0901
18
[Risk Management trick] Tilting the "Math" in your favor!We all try to find the strategies which offer best possible win probabilities. Yet, we often overlook another crucial component of increasing your odds of winning => risk management. Today, I am going to show you how you can use a simple risk management trick to tilt the "Math" in your favor. Would you like to increase the output of your strategy by 25% without doing anything extra? Imagine a 3R win suddenly increasing to 3.75R with no change in the strategy at all. Consider this trade... We are trying to setup a sell trade with a very defined -1R risk and +3R profit. If we were to loose this trade, we will loose 1% of our capital - and if we win, we will make 3% in return (3RR). Here, we assumed that we'll exit the trade when price moves -1R completely against us. What if, we pivot our thinking and assume the trade is lost when price has moved -0.8R : because if the trade goes that much against you, there's a very high probability that it'll hit your stop loss too. There is no reason to pretend that it can still turn around at the last moment. Murphy's law truly applies here - "Anything that can go wrong will go wrong". If we do really pivot our thinking, lets see how it works in our favor! The Stop loss is now updated and set at -0.8R So a win will still give us the same 3%, but the loss will only wipe out -0.8% from our account. Now because our profit targets are still setup as per the original 1% trade, you can now see that we now get this extra reward if our trade hits its original 3R target The moment we draw 3R as per our new -0.8R stop loss, we get this - You can see how the 3R with -0.8R stop loss is achieved much before than the 3R with -1R stop loss (obviously)! That means, the extra reward you got when the trade reached your original 3R - is additional profit which you now have - without ever changing your trading strategy! 3/0.8 = 0.75 (which is 25% of your original 3R target) 0.75/3 = 25% You now have extra an 25% reward for free! New RR = 3.75 This is a very beautiful math equation for yet another reason! Imagine you lost your trade with a -0.8R => the additional 0.75R you will achieve (for free) from another trade will extremely quickly cover up anything you lost. As you can see, we can really use sound risk management techniques & Math to our benefit. This is called : Tilting the "Math" in your favor!
Education
by makuchaku
155
Futures Vs Forex Platforms Same instrument different levels of risk permitted. That can make or break a trader by over leveraging an account, and not applying proper risk management. Able to risk 2% or less and the ability to scale in for more profit without having to compromise your risk percentage is the key advantage in a forex platform. I was able to enter the same trade on a forex platform and bailed that same trade on a futures platform all because the risk was too high.
CME_MINI:ES1!Education
by OpeyemiJonah
The Broker Awards - Bringing More Transparency to MarketsOur first-ever Broker Awards are here. Together, we can bring more transparency to financial markets. Connect a broker of your choice to your TradingView account, research markets, and manage orders seamlessly based on your research. Then rate, review, and follow your favorite broker. Your reviews will help others find a perfect broker for their needs whether it's equities, forex, futures or crypto. Visit our Top Brokers page to see all of the brokers available. We launched our Broker Awards to congratulate the best brokers based on your reviews. Real traders who write and rate brokers with verified reviews. We're creating a marketplace that brings more transparency to financial markets. By building this marketplace we can reduce bad experiences, give people a chance to share their opinions, and connect customers with the perfect broker for them. Remember - these awards are based on a combination of your reviews, ratings, comments, and overall usage. Now let's get to the awards! 🎉 Drum roll please... 🥁🥁🥁🥁 Broker of the Year : TradeStation Connect your TradingView account to TradeStation and access their ultimate trading services across equities, equity/index options, futures, and cryptocurrencies markets. Follow them here. Most Popular Broker : OANDA Founded in 1996, OANDA is a leading online trading broker, regulated in all key global markets. Specializing in Forex and CFD trading, OANDA offers tight pricing on a full portfolio of products. Follow them here. Social Champion : FXCM FXCM's purpose remains unchanged over its 20-year history. FXCM is a leading provider of online foreign exchange trading. Follow their social posts here. Most Innovative Tech : TradeStation For those who connect their TradingView account to TradeStation, you've noticed the upgrades and made that clear in your reviews. Best Multi-Asset Broker : TradeStation Crypto, equities, options, and futures are all available to you with a single connected account. Best Futures Broker : Tradovate Tradovate is a modern, cloud-based futures broker offering unlimited, commission-free trading for a flat price. No per-trade commissions, platform licensing fees or order routing fees. Follow them here. Best Forex Broker : OANDA With nearly 6,000 verified reviews, your votes made it clear about who you wanted to nominate as the best forex broker. Read every review here. Best Crypto Broker : Gemini Gemini offers an industry-leading suite of crypto-native products and advanced tools for individuals and institutions. Buy, sell, and store cryptocurrency with world-class security. Follow them here. Congratulations to the winners! Special thank you to all of the brokers who work with us and the community of traders who rate and review their broker. We believe this level of transparency will help more people find the perfect broker for their needs. Let's keep it going and please remember to rate and review your broker. Your reviews make a difference. ⭐️⭐️⭐️⭐️⭐️ If you would like to request a broker to add to TradingView, please write the name in the comments below and also send them a message. Your support will help us get in contact with them and let them know this is an important connection. Once again, thank you to our broker partners and the community for writing their reviews.
Education
by TradingView
51
WHY TRADERS LOSE THEIR MONEY?Hi every one this article is about why people lose money on trading platforms such as forex and crypto and stock markets: 1- Not having clear strategy: +{You need to have one or more specific strategies and act on them! You should prepare a checklist for each strategy, and this checklist should include tools specific to that strategy And when trading, follow your strategy and the tools in your strategy} 2- Not taking lessons from their mistakes: +{If you lose in a deal, see what you did wrong and investigate and learn from it so it doesn't happen again} 3- Not sticking to risk management rule: +click it A simple explanation of money management! 4- Don t cut your profit: +{Limit your losses and let your profits run} 5- Don t over trade: +Excessive trading has two important problems: A-{causes a lot of stress and excitement} B-{You have to pay more commission} 6- Don t force yourself to make money 7- change your mindset from gambling and making a million over a night +{Forget the mentality of getting rich overnight ,Those who are patient win and those who are not patient lose} 8- make a responsible mindset and report to someone. 9- Don t trade when you are emotional. 10- Don t try to beat the market just follow the market +{We should not move ahead of the market, we should follow the market trends, whether ascending or descending} 11- this is a serious business don't play with your money for excitement. please take note of this article so that you would be successful in your trading life.
COINBASE:BTCUSDEducation
by CobraVanguard
36
How I trade Head and Shoulder Price Action Pattern/StructureHello everyone: In this quick educational video, I will go over how I utilize Head and Shoulder Pattern/structure in the market. Specifically, how I identify reversal price action from a Head and Shoulder Pattern. It's important to understand that Head and Shoulder Is a reversal structure in the market. When we identify these patterns, they are usually at the top or the bottom of the over price action, and its signaling a bullish or a bearish trend may be exhausted, and a reversal trend may begin. Typical H and S will have a bullish move up, followed by a continuation correction (Left Shoulder), and move up again. At the peak (Head) , instead of a continuation to push up further, we then see a reversal bearish push down. Then, we see price form that bearish continuation correction (Right Shoulder) now, looking to push the price back lower. Just like any other price action structures/patterns that I have been talking about, these structures/patterns will appear in any time frames, any market. So it's important to understand multi-time frame analysis and top down approach. A 5 min H and S pattern may not be that strong reversal to give you 100 plus pips because the HTF is showing us different bias. From my experiences, a H and S pattern works best when we spot on the LTF price action. When we have a clear bias on the HTF for a potential bearish reversal, we go down to the LTF to look for confirmation and entry. Remember a H and S pattern will not always be “textbook” perfect like you will learn from various courses/lessons. The market itself is not perfect, so remember that when you analyze the market. Last but not least, and inverse H and S is just a mirror of a typical H and S. It's just now you are spotting them at the bottom of the overall price action, and rather to reverse into a bullish trend. As always, any questions, comments or feedback please let me know. Thank you Jojo
OANDA:XAUUSDEducation
by jojofang0901
58
Five Tips for New Traders and InvestorsWhether you are new or have been trading for 20+ years, this post is a reminder about having realistic expectations when it comes to markets. Patience, the desire to learn, and a positive outlook toward the future, especially over the long run, will help you on your journey. Here are some tips to get you started! 1. Code the markets Financial markets attract smart people who run strategies, indicators, and analytics to make better decisions. The Pine Script community is a perfect example of this - head over to the Pine Script Editors' Picks page to see for yourself. With Pine Script, you can code and create your own indicator or strategy. More importantly, you can learn the intricacies of price action and the underlying mechanics of specific indicators. 2. Paper Trade to test your ideas All members have access to our free Paper Trading tools. This means you can trade, invest, and study your ideas in a simulated environment. Do you think you can outperform the market? Open a chart on your desktop, click Trading Panel at the bottom, and connect your account. Place trades and study your performance over the next several days, weeks or months. Let's see how good you really are before risking any real money. 😁 3. Follow others, use chats, and be open minded Traders and investors from around the globe share ideas here. They also participate in chats and the comment sections. This is not only an opportunity to learn and meet others, but it is also a reminder of who else is participating in markets. You can get instant feedback by asking questions, following their profile or contributing to various chats. It's never been easier to network and work with others to learn about the markets. It's also a reminder that markets are competitive. So get started by exploring the community, meeting others, and learning new concepts. 4. Backtest, backtest, backtest The Strategy Tester makes it easy to backtest your trades over a period of time. You can test different strategies in the Public Library by opening the indicators menu and selecting a strategy. Strategies are shown with a down red arrow and an up green arrow at the end of its title. It will look something like this: "Momentum Strategy 🔻▲." Add a strategy to your chart and use the Strategy Tester to follow its performance. For those looking for a simpler way to backtest, the Bar Replay tool can take you back in time to test your ideas on a specific ticker. Press the Rewind ⏪ button on the top of your chart. 5. Make a plan Many new traders and investors forget to make a plan. Instead, they start trading without testing their ideas or learning from others. Use the tools available to you and make a long-term plan! Draw your plan directly on the chart, use the Text Notes tool located at the bottom of the chart as a personal blog or diary, create indicator layouts, save specific chart layouts to never lose your plan, and create alerts for quick reminders. All of these tools can enhance your process and long-term plan. Visit our Help Center to learn more and everything available to you including any questions you may have about your account. We hope you enjoyed this post and please leave any questions or comments below! Our team is always reading for your feedback. Stay tuned, we have more posts like this coming.
BITSTAMP:BTCUSDEducation
by TradingView
94
HOW-TO The Pip offset to use with Forex trade entriesIn this help Tutorial we take a look at the Pip offset to use in the MTPredictor Trade (and Advanced) Setups Scripts. With Forex, and particularly with shorter term Forex, it is a good idea to give the Trade a bit more "wiggle room". For this we suggest increasing the trade entry Pip offset to 2 Pips, and the Stop Pip offset to 3 Pips. Please see the Video. This just gives a little more wiggle room on the entry and particularly on the Stop level to help avoid being stopped out inadvertently. Please note: this is not a trade recommendation, you should all perform your own Analysis. Losses can and will unfold when Trading, please always use Stops and keep your losses small.
Education
by MTPredictor
Do This Before You Think About Making Profit!Hi Traders. Today's topic is something you must experience in the path to consistent profitability. How many times have you allowed big winners rolled into a losers or break-even? If you're still having the mindset of "at least I get the direction correct", It is time for you to truly reflect on your performance and psychology, and I hope this post would give you an 'Aha moment'. Why is trade management so crucial? Believe or not, majority of traders do get their entries correct, but because of the way they manage their positions, it eventually creates frustration and lack of confidence (self-sabotaging). So, what is considered to be a proper trade management? 1. Trading plan - Majority of us jumped into the market before having a strategic plan to attack the market in a consistent approach. To be consistently profitable, you cannot allow yourself to have different perspective every time you look at the charts. A good trading plan should consists of the instruments you're trading, strategies (back-tested), entry criteria, exit plan, max daily loss, max drawdown, session & timeframe, the lists goes on. Always follow a process, if you do not have a fixed plan, you'd never have consistent action and result. You must give it enough time to develop and allow your edge to play out. 2. Emotional detachment - By managing your positions in a systematic approach, you're not getting involved too much psychologically. Execute a setup according to your checklist, if its right its right, if its wrong its wrong. The market is never against you! To be consistently profitable, you need to remain neutral bias and respect the market, and trade what you see, not what you think. The best traders out there do not have much opinion in the market, simply because they respect the market and they know the market can do whatever it wants. If your exit plan signals you that the market is not going according to your plan, cut it off without hesitation, there's no point letting it runs and drains your energy. "Markets can remain irrational longer than you can remain solvent" - John Maynard Keynes. 3. Confidence - I have received plenty of DMs regarding how to build up their trading confidence. Hesitation comes from fear, if you are hesitating before pressing that buy & sell button, simply do not trade it because you are unprepared. Practice more, appreciate your losses. Personally, I've learnt more on my losses than wins, someday when you look back at all those stupid mistakes you've made, you will realize how much you've grown as a trader and human being. Losses are nothing but a small tuition fees, stay positive. As long as the risk is well-defined, you will survive in this business. Build up the discipline to strictly comply to your trading plan, journal them, and allow the expectancy to work out. Always be confident! Trade safe. Do follow my profile for daily fx forecast & educational content
KRAKEN:BTCUSDEducation
by TraderNeoh
10
Which Trader Are you?Hello Traders, here is an educational Traders Profile Know your Profile! Before we start - Let me know if you have any comments or questions, Your Support is Appreciated!! Which Trader Are you?? TRADER PROFILES & TRADE TYPES Trader profiles are very different and will dictate what type of trader are you going to become her with Global Fx Education © THE SCALPER – the scalper, often keeps trades open for a brief period and trades the market in times of very high volatility. THE DAY TRADER – the day trader closes all positions at the end of every day, with each day as a different trading day. THE SWING TRADER – this swing trader will keep trades open for days at a time and makes a profit from wide swings in the market. THE POSITION TRADER – The position trader who holds positions open the longest of all traders. Once an investment is made, the position could be kept open for months or even years. Let me Explain In Detail here : EXPLAINED 👇🏻👇🏻 THE SCALPER : Scalping is high risk, high reward trading strategy used by expert traders. The trading day is full of volatile periods which requires scalpers to continually monitor the charts for a good time to exit the trade. It is very high pace trading, with many small trades opening and closing all the time. Scalpers usually trade the openings of major markets. THE DAY TRADER : Day trading is slightly less risky than scalping and ideal for those who like to see their profit at the end of every day. This strategy is not for newcomers, and not for traders who hope to leave their trades unattended while at work. This option is also good for traders who can not trade every day of the week but can still commit a full day to their trading. THE SWING TRADER : Swing trading is a better setup for the beginner trader. Progress will be visible in your account over a couple of days. Swing trading is an opportunity for a trader to set up fewer but better trades, which suits a trader who is still learning. If you are making longer trades, hoping to make a profit from swings in the market, make sure you have a well-funded account so you don’t get a margin call by your broker at a time when closing your trade could mean a loss on your account. THE POSITION TRADER : Position trading is for someone who has limited time, and more ideal for those who spend long hours commuting that can be used for research. The downside of position trading is that much of the time your capital is going to be locked up in trades, so it limited your ability to jump on explosive trends to make a quick profit. Much Love! #education #gfx #tradewise
TVC:DXYEducation
by Global_Fx
9
In depth look at continuation bull/bear flag structures/patterns Hello everyone: Welcome back to another quick educational video on price action structures/patterns. Today let's go deeper into the continuation correctional structure. Specifically, the continuation bull/bear flag structure. First it's important to understand that a bullish/bearish flag is a continuation correction. They are representing a correctional phrase of the price action, before resuming the previous impulse phrase. As price action traders, we must be able to identify what correction we are seeing. This will allow you to get ahead and make your forecasting so you are prepare to any potential entries Second, bullish/bearish flag correction will appear in any time frames, any markets, and in different sizes. Typically a flag correction will have at least 2 swing highs and 2 swing lows and relatively even and proportion in angle or length. They can be slightly slanted or very parallel to each other. Remember the market is not perfect, it wont always present us picture perfect, textbook structures. Thirds, So its important to understand multi-time frame analysis, top down approach. A LTF bullish/bearish flag may or may not have the potential to start taking off massively due to the higher time frame showing us a conflicting bias. So its important to add as much confluence to your trade as possible. As always, any questions, feedback or comments please let me know :) See you all in my next weekly outlook stream. Thank you
BINANCE:XLMUSDEducation
by jojofang0901
18
Why Should You Avoid News Scalping?Hi traders. I've been receiving messages recently requesting for more educational content especially for people who are fairly new to trading. If there's only one emphasis to remind myself back then as a beginner trader, it'd definitely be risk management. So why is it so important to avoid scalping the news especially when you just got into the trading world? 1. Unusual spread & undefined risk - Regardless of how many winning streaks you had previously using certain news scalping strategy, there will be one time where the market catches you onto the wrong direction if you are unprepared. The typical news scalping strategy where majority of the new traders were introduced are the buy limit & sell stop (pending orders) strategy, it's basically setting both pending orders above and below the current market price, approximate 3-5 minutes before major events announcement betting the market to run aggressively into either side. Do not get me wrong, there are professionals who are successful using this system, but bare in mind that your capital is not protected due to the wide spread (up to 20 - 50 pips) and slippage, trust me there will be time where the market swings both ways aggressively triggering both orders sabotaging your account. Avoid the sense of urgency to notice a steep growth in your equity curve, begin focusing on long-term profitability instead. Protecting your capital should be your number one goal. 2. Lack of emotional control (greed & fear) - I've seen traders who had 10R of profits refusing to close out their scalp position due to greed, only to watch their profits run into red zone. In contrast, there are traders who refuse to cut their losses due to fear, only to watch half of their account being wiped out, or at worst, receive a margin call. Scalping is intense, it requires a high level of emotional detachment and patience, these traits are not often found in new traders due to the lack of experience. Successful traders are very patient with their winners and extremely impatient with their losers, always cut your losses without hesitation when things are not going according to your plan. Trading is a game of getting an edge out of uncertainty, to succeed in this game you MUST be very strict on yourself and extremely discipline. 3. Lack of knowledge - I've noticed majority of the traders choose to scalp because of the belief of 'fast money'. The more eager you want to make money quick, the higher tendency you will enforce your will into the market, the more risk you are involved, which is self-sabotaging. You do not need to put your hard earned capital at high risk in order to achieve high returns, treat trading like a marathon not a sprint. Spend more time on developing strategies/ systems that generate consistent returns, you only need a slight edge in the market to be consistently profitable. Be consistent with your action, profits will come. Success is not far away from you if you're constantly putting in consistent actions. Trade safe. Do follow my profile for daily fx forecast & educational content.
Education
by TraderNeoh
2
HOW-TO If you get two MTP Setups on the same BarIn this help Tutorial, I would like to cover what to do if you get two different MTPredictor Trade Setups on the same Bar. As explained in the video, this can arise sometime because we have two Scripts, one containing our Standard MTP Trade setups, the other containing our Advanced MTP Trade Setups. We have had to code two Scripts to overcome Pine Coding limits. In the video, I cover 3 possible trade management strategies, based on how experienced or aggressive a Trader you are. Every Trader is different, and will have a different Trading Plan that is individual to them. The first strategy is for the more conservative, or risk adverse, Trader who may look to consider the neatest Profit Target to look to come out of the market earlier. The second, more aggressive, Trader may wish to look to use a further out Target of the Wave 3 swing as calculated in the MTP Advanced Trade setup Script. The last option is to use the Higher Time Frame Chart, which in this case would be the Daily DP support zone. As you can see, there is no "one size fits all" in Trading, we are all different and have different levels of experience as well as different risk profiles. As such, it is important that we develop our own, and unique, Trading Plan that fits us, only then can we apply it time and time again in the markets. I hope this video has helped and given some guidance as to how to handle the situation if you get two different MTPredictor Trade Setups on the same Bar. Please note: this is not a trade recommendation, you should all perform your own Analysis. Losses can and will unfold when Trading, please always uses Stops and keep your losses small.
Education
by MTPredictor
How Much BTC Do You Need to Create Generational Wealth?Hi Tradingviewers, in this article I am going to break down this question into smaller items and try to give a concrete answer to the question: “How Much BTC Do You Need to Create Generational Wealth?” First, we’ll have to define what ‘wealth’ means. Then we need to define how we look at the ‘generational’ part. Lastly, we also need to take into consideration long term outlooks on Bitcoin. Let’s try and put some actual numbers on this and see how much BTC you would actually need. I’ve been on Twitter a lot lately (putting some more effort into my account!) and got inspired to answer this question as this was a very common topic on Twitter. The interesting thing is that I saw a lot of people talking about this, but nobody actually made an effort to go through the math. Without further ado, let’s dig into the numbers. First let’s look into some options to define wealth. Using data from the World Inequality Database and Statistics Canada), it takes about $488,000 to be considered part of the top 1% in the U.S in 2019. Let’s assume that this applies to the number needed in a family/household. Let’s make ~$500,000 our first option, I’d say belonging to the top 1% in the US would be a pretty fair definition of wealth. If we look further than the US, we can also use this same 1% methodology to define wealth on a global scale. In that case you would need at least $744,400 in combined income, investments, and personal assets according to the global wealth report from the Credit Suisse Research Institute. A slightly more ambitious goal compared to our first option but we could define this as ~$750,000. Another option to look at wealth is to look at financial independence . My preferred way to define financial independence is to have enough wealth such that you can completely live off the dividends. A common rule used by the FIRE community (Financial Independence, Retire Early) is the 4% rule. The 4% can be summarised as a safe withdrawal rate that will not lower your total wealth over the long run. Even when there are temporary downturns in the global economy. This assumes you invest all your money in the stock market. The median household income in the US is $61,937 per year. We could consider a passive income of the median household income as wealthy. If we divide $61,937 by 4% from the safe withdrawal rate above we get to a total of $1,548,425. So using this logic you would need roughly ~$1.5M in total assets in order to be considered wealthy. Now, let’s discuss the generational part. Honestly, I was surprised when I found the exact definition: “ generational wealth represents assets passed down from one generation to the next. If you can leave behind a notable inheritance to your descendants, that constitutes generational wealth. These assets can include real estate, stock market investments, a business, or anything else which contains monetary value. I had somehow expected it would be something more ambitious such as that for x generations they would all have to be considered “wealthy too”. Achieving generational wealth would then be relatively easy given method one and two. You would just need to make sure something is left of your $500,000 or $750,000 respectively. Option three even has it implied. The whole idea behind option three is to never actually spend any of your wealth, you’re simply living off the dividends. This leaves us with the most difficult one: how much Bitcoin would you need? The first and most obvious approach is to directly calculate the amount of bitcoin that represents our different definitions of wealth given the current price. If we take a Bitcoin price of $30,000 that would give 16 bitcoin for option 1, 25 bitcoin for option 2 and 50 bitcoin for option 3. Now let’s bring in some of the nuance. First of all if you’re expecting to live off your dividends you cannot have all of your wealth be in bitcoin itself as it doesn’t pay any dividends directly. Normally the wealth would be in the stock market or in real estate. Also, if you assume that the value of bitcoin will keep rising you would obviously need far less bitcoin today to achieve generational wealth later. For example, Bloomberg analysts have predicted a price target of $50,000 for Bitcoin in 2021, implying a $1 trillion market cap for just this cryptocurrency. JP Morgan analysts estimate the price of Bitcoin to grow more aggressively, as they estimate a value of $650,000 by the end of 2022. Let’s be more conservative on the date, but keep an aggressive price target for the sake of the argument here. If we take a $300,000 price target by the end of 2031 how much bitcoin would you need today to achieve generational wealth? This would give us 1.6 bitcoin for option 1 2.5 bitcoin for option 2 and 5 bitcoin for option 3. Specifically for option three it would still mean though that you would have to cash out all your crypto assets and convert them into dividend generating assets instead. Also, with a possibility to see hyperinflation later given that 35% of all dollars in existence have been printed during the last 10 months it is questionable whether thinking of generational sustainable health should even be expressed based on dollar figures to begin with. I wouldn’t know how to express it in any other way, but am really curious to hear if anyone has good alternatives on this point. I am really curious to hear your views on this. I used many assumptions here, how would you have approached this? Are there any flaws you see in my logic? Feel free to comment on anything, and please feel free to absolutely destroy it! I’d love to have the discussion. Just to summarize, based on this you would need today: 16 bitcoin to be considered among the top 1% wealthiest in the US 25 bitcoin to be considered among the top 1% wealthiest in the world 50 bitcoin to achieve generational financial freedom Trading-Guru p.s. You might have seen a few reposts of this article as Tradingview was struggling with a faulty spam detector. The moderators kindly helped blocking and unblocking some posts. Thanks @scheplick!
BITSTAMP:BTCUSDEducation
by Trading-Guru
11