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Risk Management

[Education] You Need An Easy Trading SystemIt took me close to 5 years of losses and breakeven to reach where I am today. I'm handling 6 figures worth of prop firm funding and has many payouts from various prop firms. This didn't come easy. Like many traders, I started trading with the goal of achieving financial freedom and to leave his 9 – 5 job. I learned from free contents on YouTube. I know many concepts like smart money concept and multi-timeframe analysis. Even with so much knowledge, I am unable to put together a coherent system. Why? Knowledge is power, but action is king. I do not have a fixed strategy that I consistently trade with. Does this sound all too familiar? It does. It’s happening to you now, right? Many traders experienced what I experienced. I've been there, done that and is now profitable. You Need A Systematic System Knowledge is power but without action is useless. There is no point being a genius if you don't use your intelligence and knowledge for something. - Abu Bakr I know you have a lot of knowledge. I know you understand how different indicators worked and wave theories. So how do you put these knowledge into action? There are so many criteria to look out for. How do you know what will work, what will not work? What if you spent 2 days testing your strategy, only to find out that it's not profitable? How do you proceed from there? Do you tweak your system a little and backtest again? Or do you build an entire different trading system? This is a serious problem that you have to address. You will waste a lot of time on the wrong approach. You will backtest wrong. You will not get enough data from your backtesting. You will apply the concepts wrong. The bulk of your problem lies with not having a well thought out trading plan. If you don't know what or how to, I have a framework which I will go through later in the post. This gives you a good starting point to play around with. Anything you do here, get to 100 backtested data. After that, decide if you want to add in more criteria into your trading plan. I have a free trading journal here. You're indecisive. You backtest and moved on without any result. You need to pick 1 and stick to it. Basic Framework This is the framework of how I trade. 1. Markup your chart. Find the area of liquidity, point of interests, liquidity grab, direction of the market and demand and supply zones. Do your multi-timeframe analysis here. Higher probability trade is to buy at discount levels, and sell at premium levels. 2. Set alert at your point of interests (Where to buy and sell) 3. Write down your analysis on the chart. If the price hits your point of interest, I would expect X to happen. When X happens, I will do Y.  4. When the alert goes off, go back to your chart and see if your analysis in step 3 still holds. 5a. If yes, mark out roughly where your stop loss and profit target will be. See if the RR is decent enough. If yes, then wait for the price to give you a confirmation. If no, either wait for a refined entry on the lower timeframe, or to wait for another confirmation. 5b. If not, repeat step 1. 6. Wait for price to give you a confirmation. Calculate the lot size you need to open based on your risk management and place your order. 7. Once you're in the trade, you can either forget about your trade and let it hit TP or SL, or actively manage your position. This will depend on how you backtested your strategy. 8. Once your trade hits the TP or SL, journal it. Record your entry, take profit and stop loss. Take screenshots. Record your emotions and feelings before, during and after the trade. This is how a trading plan should look like. A clear plan of action and train of thought. There should be actions taken before, during and after the trade. Do not follow strictly if your trading strategy is different from me. You need to change it to fit your strategy and lifestyle. Amend it to fit your (i) trading style (ii) personality (iii) lifestyle. My trading style is SMC with VSA, trading on 15m. I have plans to transition to trading on the 1h TF when the time comes. I started from multi-timeframe analysis. A few months later, I discarded it even though it gives a higher win rate. Why? Because I’m lazy, so I made my plan fit to my personality. I also like to spend less time on the chart so I can have a life outside of trading. This fits my lifestyle. I started trading because I want time freedom. It will be ironic if I were to spend more time on the chart compared to working in a 9 – 5. The Holy Grail You must understand that most of the trading strategies work. It doesn't matter if it's price action, wave theory, or indicator based. You need to have a solid backtested result to rely on. Of course, the more concepts you put together, you can find confluence between them. This can get higher probability trades. But that comes with a tradeoff too - decision paralysis. Some part of your strategy might tell you to go long, but some are telling you to go short. It's an art of balance here. Before you take on any funded challenges, solve the above issue first. There is no point wasting money because you will be failing challenges. You are not prepared yet. Having A Guide Having a mentor to cut short your learning curve is cost-effective. Imagine spending 1 year on your own. You learn and test strategies that are not applicable to you, only to find yourself back to square 1. Mentorship could cost upwards of $1k, $2k or even $5k. No doubt, it's an expensive commitment. But think about spending $10,000+ on a university degree to work a 9 - 5 job. To me, it's a no brainer to go for mentorship as I can scale my income way faster than a 9 - 5 job. The only problem with finding a good and legit mentor is it's hard to find. Given the nature of this industry, there are many scammers. Some “mentors” do not actually trade. They rely on posting high profits screenshots to lure customers. It’s quite simple to filter these people out. (i) Common sense. If someone is posting high RR trades often, start to question. Why would he sell you his course or strategy if he’s so profitable. (ii) 3rd party verification like myfxbook and fxblue. Remind yourself that the results can be faked with white-label brokers. Make sure they verify their tracked account and he is using a reputable broker. (iii) Check if he has many prop firm payouts. It’s higher chance for someone to know how to trade with different prop firm payouts. (iv) He has transparency with his wins and losses by sharing his journey publicly. (v) Check his online work – blogs, newsletter, YouTube etc. See the values that he provides for free. This is a good indicator of the value you will get from his mentorship. I do have many mentors, and I agree that finding the right one is definitely a challenge. But once you've found that right mentor, everything will start to change. Everything will click and you will be on your path to consistent profitability. Stay consistent. Stay safe. Success is just around the corner. If you enjoy such content, feel free to click the like button and subscribe for more. Let me know what are your thoughts and learning points in the comments below so others can learn from you too! Please let me know what kind of topic you would like to read next :) Happy weekend!
TVC:SPXEducation
by Keeleytwj
Learn the ONLY REASON Why You Should Try on RETEST!Hey traders, Being breakout traders we have two options for trade entries: when the breakout is confirmed, we can either open a trading position aggressively once the candle closes above/below the structure, or we can be conservative and wait for a retest of the broken structure first. What is peculiar about the second option is the fact that the majority of pro traders prefer the retest entries. In this article, we will discuss the pros and cons of retest trading. ✔️First, let's discuss whether the retest is guaranteed. NO. How often do we see that? Around 50-55% of the time. Does it mean that 45-50% of breakout trades will be missed? YES. The main disadvantage of retest trading is that a lot of trading opportunities will be missed. Occasionally the breakout triggers a strong market rally, not letting the price return back to the broken structure. Take a look at that triangle pattern on Bitcoin. The price broke its support BUT did not retest it, so trading only the retest, the opportunity would be missed. So what is the point to wait for a retest then? Why let the market go without us in case if there is no retest? ✔️Most of the time the breakout candle closes quite far from a broken level. Opening the trading position once the candle closes and setting a stop loss below/above the broken structure, one can get a very big stop loss. Such a big stop that its pip value exceeds or equals the potential return. 🖼In the picture, I drew a classic channel breakout trade. The aggressive trader opened a long position as the candle closed above the channel's resistance. His stop loss is lying below the lower low of the channel. Analyzing his risk to reward ratio, we can see that his reward equals his risk. On the right side is the position of the conservative trader. His stop loss in lying on the same level. However, instead of opening a trading position on a breakout candle, he decided to wait for a retest of the broken resistance of the channel. Just a slight adjustment of his entry-level gives him a completely different risk to reward ratio. ❗️Patience pays in trading. Missing some trades a retest trader will outperform the aggressive trader in the long run. Trading is about weighting your potential gains & losses. Paying commissions and swaps for every trade, it is much better for us to trade less but pick the setups that give us a decent potential reward. What type of trading do you prefer? Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
7
✅The DO’S And DON’TS Of Risk Management❌ ❤️Risk management is a crucial component of forex trading to help minimize potential losses. In this article, we’ll explore the do’s and don’ts of risk management in forex trading. 🧡DO’S 💁🏼‍♀️Set a stop-loss order: A stop-loss order is a pre-set level at which a trade will automatically close, thus limiting the loss on an open position. 💁🏼‍♀️Diversify your portfolio: Spread your investments across multiple currency pairs to avoid exposure to a single currency’s risks. 💁🏼‍♀️Use leverage wisely: Leverage allows traders to invest more than their account balance. However, it also increases the potential risk. Only trade with leverage if you fully understand how it works. 💁🏼‍♀️Keep an eye on economic events: Economic events can impact forex markets. Keeping a close eye on them can help you adjust your trading strategy accordingly and avoid unexpected losses. 💁🏼‍♀️Use risk-reward ratio: It is essential to have a clear risk-reward ratio in mind before entering a trade. This ratio should be based on your established trading strategy and the probability of success. 💙DON’TS 🙅🏼‍♀️Don’t invest more than you can afford to lose: This is a fundamental rule of investing in any financial market. Never invest more than you can afford to lose. 🙅🏼‍♀️Don’t let emotions drive your trading: Emotions such as fear, greed, and hope can lead to impulsive decisions and cause significant losses. 🙅🏼‍♀️Don’t ignore fundamental analysis: Fundamental analysis helps traders understand a country’s economic and political situation, which can significantly impact forex markets. 🙅🏼‍♀️Don’t follow the herd: It is essential to have your own trading strategy and stick to it. Following others' trades blindly can lead to significant losses. 🙅🏼‍♀️Don’t trade without a strategy: A trading strategy helps you make informed decisions and minimize the risks of trading. Not having a strategy can lead to impulsive decisions and significant losses. 🖤 In conclusion , risk management is a crucial component of forex trading. It is essential to follow the do’s and don’ts mentioned above to minimize potential losses and make informed decisions. Remember, successful trading comes with experience, discipline, and patience. Happy trading! Please cheer me up with a like and a nice comment😸❤️ Please, support my work with like and comment! Love you, my dear followers!👩‍💻🌸
Education
by AnabelSignals
5
The Anchoring Bias: Navigating the Pitfalls of Trading Decisions Introduction: In the fast-paced world of trading, making accurate decisions is crucial. However, traders are not immune to cognitive biases that can lead to irrational behavior and potentially significant financial losses. One such bias is the anchoring bias, which refers to the tendency of individuals to rely too heavily on an initial piece of information when making subsequent decisions. This article delves into the concept of anchoring bias in trading, offering insightful examples to help traders identify and mitigate its negative impact. Example 2: Anchoring on market predictions - A trader reads a market analyst's prediction that a particular stock will experience rapid growth. - Armed with this anchored expectation, the trader ignores other relevant factors, such as the company's financials or market trends, and invests a significant amount of capital into the stock. - The anchoring bias leads to tunnel vision, disregarding critical information that may alter the stock's predicted trajectory, exposing the trader to avoidable risks. Conclusion: Understanding the anchoring bias is vital for traders seeking consistent success. Becoming aware of this cognitive bias, and actively working to question and diversify our decision-making processes, empowers traders to make more objective and rational choices in an ever-changing market landscape. Remember: anchoring should not become the heavy anchor that weighs down your trading potential. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
4
[Education] You Are Dumb For Not Using A Stop LossI always thought that stop losses are useless. Whenever I see price taps me out, and go in my direction. Whenever price comes close to my stop loss, the spread will somehow widen and take me out, and go in my direction. I was always angry about this. “The broker must be trading against me! I must hide my stop loss!” I stop using stop losses. For some trades, I won because price couldn’t tap me out and go in my direction. I thought I was a genius by not trading with a stop loss. I became confident. This worked until it didn’t work. It was NFP. It’s 10 seconds away from news release. I was trading a $1,000 account. My trade was in $8 drawdown. I looked at the chart, knowing that I will close the trade if it goes against me. The price became very volatile. 5…4…3…2…1… Nothing happened. The price feed seemed to have lagged. A few seconds later, I saw an enormous bullish candle, against the direction of my trade. The $8 drawdown became $200 drawdown. I got wrecked. I’m supposed to close the trade at a 1% loss, and it became a 20% loss. It’s fine. After a strong impulse, the price will retrace, right? I hoped for the price to make a bearish retracement. But every minute passed, and the chart prints more bullish candles. I closed the trade at a $435 loss. What’s supposed to be a $10 loss turned out to be a $435 loss, 43x more than what I risked. Types of Broker When I started trading, I didn’t even know the existence of A-Book Brokers or B-Book Brokers. They do make a lot of difference in trading. A-Book brokers route your trades directly to the forex liquidity providers, who in turn routes them to the interbank market. B-Book brokers will trade against you. our profits are their losses, and your losses are their profits. There is a clear conflict of interest here. The problem here is that you deposit your money into brokers without reputations. Finding a reputable broker will reduce the probability of them purposely taking out your stop losses. But if you think about it, why would they want to take your $10 stop loss to ruin their reputation? Your trade must be deep in drawdown often for your broker to manipulate your trades. You should relook into your strategy instead of blaming your brokers. Impact On Psychology Trading with a stop loss gives you a peace of mind. Imagine that I had use a stop loss on my NFP trade, I do not need to stalk my trade. I don’t need to worry that the server lagging, which made me unable to close my trade. Without using a stop loss, I can’t close my trade when price hits my stop loss level. This too can happen if your internet connection lagged or is down during that crucial period of time. Your psychology must be very strong to trade without a stop loss. Believe me. You will wait for a few seconds to close. Hoping that trade will turn in your favor within that few seconds. You will end up losing more. Trading with a stop loss is good for your trading psychology. You know that whatever happened, you will lose what you’ve risked. You do not need to stress that you might risk too much on a trade. Trading is a marathon, but many of you have the wrong impression that this is a get-rich-quick hustle. Consider trailing your stop loss when you’re in profit or set them to breakeven when the price moved. Remember, anything can happen in the market. You might be in profit now, but the price can shoot past your stop loss the next minute. If you’re not fast enough to react, you will close your trade at an unfavorable price. Taking Partial Profits Taking partials is better for you. You don’t need to worry if there are any situation where you cannot close your trade in time. Taking partials is important if you don’t want to shift your stop loss. Assume that your trade runs 1R in profit, you can close half. This yields 0.5R. You can choose to keep your original stop loss. When price comes back to take you out, your result will be breakeven. Always remember, a small win is better than a full loss. Consistent small wins will be beneficial in prop firm challenges. Time limit will stress you out. Consistent small wins make you feel like you’re progressing towards passing the challenge. Risk Management There are a lot of ways to profitability. You can either have a high win rate, but low risk-to-reward ratio, or a low win rate, but high risk-to-reward ratio. I’m sure you want a high risk-to-reward ratio trading strategy. Before that, you have to understand how your psychology works. Are you able to execute the same trade that fits your trading strategy again and again? You need to follow your plan despite losing 10 or 20 trades in a row. Will you start to doubt your trading strategy? Your account balance going lower and lower every time you take a trade. Once you’re trading live, you have to accept the risk for each trade you’re taking. You have to accept that you can be wrong more than you’re right. You cannot control the outcome of your trades. You can control the amount of risk you take per trade. I recommend risking 1% or lower for each trade. The goal here is to focus one capital preservation. By limiting your risk to 1% a trade, you are able to keep your account balance safe. Compare this to people who risk 20% or 50% a trade. In a few losing trades, their account balance will be very close to $0. These are the gamblers that do not have the right risk management skills. News Trading I always thought that trading news is the same as trading at any time of the day. Price will go to wherever it needs to go. Since my backtest don’t take into consideration of news, I can trade news in live market too. But after the incident where I lost 43x more than what I risked, I stopped trading news. If I have an open position and in profit, I will close half of my position and shift my stop loss to breakeven. If my position is in drawdown, I will close all the position. The risk of slippage does not justify the reward. If your normal RRR is 1:3 with a 33% win rate, the risk of slippage can turn your potential RRR to be 1:1 because you can potentially lose 3% instead of 1%. Rewarding Journey When I started to focus more on capital preservation, profits comes to me. It’s counterintuitive. It’s normal to think that to be profitable, we need to focus on profits. Having a strict trade management helps a lot with my psychology. I know how many losses I will need to lose my account. Knowing this, it helps with my psychology as I give myself the room to make errors and take losses. I know that my trading strategy is profitable in the long run. I know how much drawdown I can expect from my trading strategy. To be like me, you need a lot of backtest data. I have 1,000 trades logged, which is why I am comfortable trusting my trading strategy. Following to my trading plan allows me to not focus on the noises and my emotions. I trade mechanically. This has allow me to pass various prop firm challenges and gotten various payouts. I have another payout that’s coming in this Tuesday. I’ve always wondered what’s the feeling of constantly getting withdrawals. Now I know how it feels. I’m progressing ahead to leaving my 9 – 5 job. My 2023 goal was to get funded and get 1 payout. It’s not even the end of June 2023 yet, and I’ve achieved my goal. Right now I’m accumulating more accounts from all my payouts. It will take awhile, but I will reach my next milestone of managing $600,000 soon enough. Accountability Partner The hardest part of trading alone is sticking to your own rules. In a day job, you report to your manager and boss. When you’re trading, you’re reporting to yourself. It is hard to be accountable to yourself. Having an accountability partner or a mentor is the best solution to solve this problem. Do you know why legends like Oprah Winfrey has a coach? A coach gives guidance and a holistic review on your performance. They act as an accountability partner. They push you and hold you accountable for your actions. Having someone there for you when you feel down and unmotivated can be motivating. It’s hard to find a suitable mentor or accountability partner given the nature of the financial market. There are a lot of scammers out there selling course materials which you can find online. You need to know that the person selling the course or mentorship does not rely on sales for a living. But instead, he must be earning most of his income from trading. Look at his content, see if they resonates with you. Look at his track record, are they afraid of showing 3rd party verification? Do they only show you screenshots of trades that have already happened? Do they only show their results on excel sheet? If you’ve been following me on my journey, you would have seen my progression. I’ve manage to break free of my unprofitable self to a consistent profitable trader now. Remember, trading is not an easy hustle. It take years of hard work, losses and, breakeven to achieve consistent profitability. Stay consistent. Stay safe. Success is just around the corner. If you enjoy such content, feel free to click the like button and subscribe for more. Let me know what are your thoughts and learning points in the comments below so others can learn from you too! Please let me know what kind of topic you would like to read next :)
TVC:SPXEducation
by Keeleytwj
107
How To Trade Double Bottom Pattern? ✅In the world of forex trading, understanding patterns and trends can make all the difference between profit and loss. One popular pattern that traders often look out for is the double bottom, also known as the "W" pattern. ✅The double bottom pattern occurs when the price of a currency pair reaches a low point, bounces back up, dips again to the same level, and then bounces back up again, creating a "W" shape. Essentially, the market has twice failed to break through the support level, indicating a potential reversal to the upside. ✅This pattern is often seen as a bullish indicator, as it suggests that buyers are stepping in and pushing the price up. It is important to note, however, that the second bounce should not dip below the first one, as this could indicate a continuation of the bearish trend. ✅So, how can traders take advantage of the double bottom pattern? One strategy is to enter a long position once the price breaks out above the resistance level created by the two bounces. This breakout confirms the reversal and can signal a potential uptrend. ✅It is also important to combine the double bottom pattern with other technical indicators, such as the Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD), to confirm the potential reversal. ✅However, as with any trading pattern, it is important to approach the double bottom with caution and to always have a solid risk management strategy in place. Traders should also be aware of potential false signals and market noise that could obscure the true trend. ✅In summary, the double bottom pattern can be a useful tool for forex traders looking to identify potential reversals and enter profitable trades. By combining it with other technical indicators and practicing proper risk management, traders can improve their chances of success in the ever-changing and unpredictable world of forex trading. I hope this post was helpful to some of our beginner traders😊 Dear followers, let me know, what topic interests you for new educational posts?
BITSTAMP:BTCUSDEducation
by SignalProvider
8
Real Example of a TRADING PLAN Revealed Hey traders, In this post, we will discuss 6 crucial things in your trade planning and the main elements of trade results assessment. 1️⃣ - Before you open a trading position, make sure that you analyzed the chart. You should identify a market trend and spot major key levels. Here on WTI Crude Oil I have analyzed key levels and came to the conclusion that the market is trading in sideways. 2️⃣ - Once the chart is analyzed, you should identify the safest trading areas for your strategy (preferably the zones of supply and demand). You should patiently wait until one of these zones is tested. Back to our example. The support that the market is approaching is a safe area to buy from. 3️⃣ - Once the zone is reached, you should look for a confirmation. You can either look for a reversal candlestick/price action pattern, some fundamental trigger, or some indicator. The point is that you should rely on a trigger that is backtested and that proved its accuracy. In our example, the confirmation pattern - the ascending triangle is spotted on lower time frames. 4️⃣ - Getting your confirmation, you should have a precise entry strategy. Some traders prefer aggressive entries on spot while others are waiting for a retest of some major/minor level. Trading Oil, the perfect entry point will be on a retest of a broken neckline of a triangle. 5️⃣ - You must set a stop loss. Remember that your stop-loss defines the point where you become wrong in your predictions. Be extremely careful on that step and give the market some space for fluctuations. Back to our example - our safe stop loss will be below the lows. 6️⃣ - Know your exact target level(s). Know the point where you start protection of your position, where you start profit-taking. Be very strict and don't let your greed and fear intervene. Returning to our trade, the Perfect target level is based on a closes strong resistance. Only then a trading position is opened. No matter what will be the end result of your trade, you should assess it: 1️⃣- You should journal the trade outlining its end result, trading instrument, and your entry reason. 2️⃣ - Note any peculiar thing about this trade that you noticed. 3️⃣ - Record your gain/loss percentage. 4️⃣ - Identify whether any mistake was made and if so, learn from that. Here is your minimum plan to follow. Of course, as you mature in trading your trade assessment plan will be more sophisticated. Do not underestimate its importance and treat it as the main element of your trading routine. Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
8
The Ups and Downs of Investment Risk: Navigating the Risk Level 👉🏻The world of investing can be a wild ride, full of twists and turns that can lead to either high gains or crushing losses. That’s why it’s important to understand the different risk levels that come with investing in various assets. Let’s explore the three main categories of investment risk levels: low, moderate, and high. 💹Low Risk If you’re risk-averse and prefer a steady, predictable return on your investment, low-risk options are the way to go. These are investments with low volatility and minimal chance of losing money. 💹Moderate Risk If you’re willing to take a bit more risk for potentially higher returns, moderate-risk investments might be a good fit for you. These typically have a higher volatility rate, but still have a good chance of earning a positive return in the long run. 💹High Risk For those willing to take on the highest level of investing risk in search of the highest returns, high-risk investments might be worth considering. These have the highest potential for extreme highs and extreme lows with significant volatility. 👉🏻It’s important to note that each investor’s risk tolerance is different, and what might be a high-risk investment for one person could be a low-risk investment for another. So, when considering investment options, make sure to weigh both the potential rewards and the accompanying risks. 👉🏻In conclusion, investing involves a certain amount of risk, but understanding and balancing those risks can help you make informed decisions that align with your financial goals. Whether you opt for low, moderate, or high-risk investments, do your research and seek advice from financial professionals to determine which level of investing risk is right for you. Happy investing! 😸Thank you for reading buddy, hope you learned something new today😸 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
9
Why Every Trader Needs a Mentor: Learn from the Experts Trading can be a lucrative career, but it's not easy to navigate the markets on your own. This is where a mentor comes in - an experienced trader who can guide you through the ups and downs of the stock market, teach you strategies and provide valuable insights that will help you succeed in trading. In this article, we will explore the benefits of having a mentor in trading and provide examples of how a mentor can help you achieve your financial goals. 1. Gain a wealth of knowledge: 2. Get personalized guidance and support: 3. Build confidence: 4. Network and gain exposure: In conclusion, having a mentor in trading is a valuable asset for any trader who wants to succeed in the markets. Whether you are a new trader or an experienced professional, working with a mentor can provide you with personalized guidance, expert knowledge, network building opportunities and help you build your confidence. So don't hesitate to seek out a mentor to take your trading career to the next level. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
9
Revealing the secret of pro tradingIt takes a period of 3-5 years to obtain a degree. Gaining experience in a reputable 9-5 job typically requires 5-10 years. To become a professional athlete, one needs to undergo 10 years of training. If you don't achieve millionaire status in trading within 6 months, it's common for people to give up. However, it's important to recognize that patience and consistency are essential. Trading is not excessively complicated, as it can be broken down into a few key components. - Having an edge. - Practicing effective risk management. - Controlling emotions and executing trades. It's crucial not to overcomplicate matters. Your trading edge serves as your offensive weapon. Risk management functions as your defensive weapon. Your ability to balance these weapons, along with controlling emotions, is crucial. Having a trading edge makes you a good trader, while skillful risk management makes you a great trader. The capacity to control fear and greed elevates you to the status of a legendary trader. A trading system allows you to generate profits, while effective risk management safeguards your capital.
Education
by FortuneAI
1
Mastering Pro Forex and Gold Trading As a professional forex and gold trader, it's essential to understand the anatomy of successful trading. From market analysis to risk management, there are specific body parts, or components, that make up a successful trader. Here's a breakdown of each component and its role in pro trading. 👁 Eyes - Market Analysis Successful traders know that the markets are dynamic, and they must keep a keen eye on market trends and data. By scanning the markets, using technical analysis, and fundamentals-based analysis, traders can make informed trading decisions. 🧠 Brain - Discipline and Strategy Traders must have the discipline to stick to their trading strategy and be ready to pivot when necessary. Having a clear trading plan and risk management strategy is essential, and traders must keep a cool head in the face of market volatility. ❤️ Heart - Risk Management In trading, you need to know when to hold 'em and when to fold 'em. Successful traders must have a heart for risk management and know how to manage their trading capital effectively. 🙌 Hands - Execution To execute good trades, you must have nimble hands that can take swift action when the opportunity presents itself. Traders must know how to enter and exit trades quickly and efficiently to maximize profits and minimize losses. 👂 Ears - Listening to the Market Experienced traders know that the market can be unpredictable, so it's essential to actively listen and take in information from various sources to stay on top of trends and changes in market sentiment. 🦵 Feet - Adaptability Successful traders must be able to pivot and adapt to sudden changes in the markets. Whether it's political unrest, natural disasters, or unexpected market moves, traders must be able to react quickly and adjust their trading strategy accordingly. 👄 Mouth - Community and Networking Experienced traders know that trading is not a solitary endeavor and that community and networking are essential to successful trading. Sharing knowledge, joining trading communities, and networking with fellow traders can provide valuable insights and support when trading. By understanding the anatomy of pro forex and gold trading, traders can develop the mindset and skills necessary to succeed in trading. From market analysis to risk management, each component plays a critical role in successful trading. Physical attributes like hands and feet can be developed with practice, but the heart and the brain are equally important, and they require discipline, strategy, and adaptability to thrive in the ever-changing world of trading. Please, like this post and subscribe to our tradingview page!👍
BITSTAMP:BTCUSDEducation
by EliteTradingSignals
9
[Education] How To Be A Good Trader?This might surprise you. I was actually a content creator on Youtube and blogs before I focus on trading. Trading was something I do on the side as I was trying to achieve consistency. From young I already knew that I do not want to work in a 9 - 5 until I retire. I want to enjoy my life without worrying for money. I read a lot of books on personal finance, personal development and productivity. To be good at something, you need at least the knowledge of a given topic. Knowledge is potential power. Action is power. Stability Reduces Stress I was lucky to have an actual framework and knowledge on how to keep and grow my money. I didn’t have to worry about money as I was spending way below my means, without sacrificing my hobbies. It is important to have a stable income. I do not need to worry about being unable to pay bills, or to put food on the table. This brings me to the next point. Since I have met my survival needs, I can spend more time and energy focusing on trading. I have the savings and money to deploy in the financial market. Building The Luxurious Lifestyle Beginners are caught up with the idea that it is easy to get high win rate and high RR trades. You want to learn how to trade because it’s lucrative. I don’t deny that. This business is very scalable. A 5% gain on a $100 account is $5, but a 5% gain on a $100,000 is $5,000. You take the same trade on different accounts, the profit can vary. You want to enjoy life. You want to escape the 9 - 5 rat race. You want to provide for your family. You want to make your parents proud. You want to be a rich and successful person. Who doesn’t want that? You can see many screenshots of people earning millions of dollar. They took high 100 RR trades and profiting tens of thousands of dollars per trade. These give the impression to beginners that they can do it too. You enter the trading world with the wrong mindset. You want to earn thousands of dollars every week. But your capital is only $100. You think you can flip this account into tens of thousands of account. But you only get to see your accounts wiped out time and time again. You don’t believe that you are not able to profit from the market. You talk to people who post screenshots of their profits and high RR trades. You subscribe to their trade signals, account management, and expert advisors. You bought their trading course on demand and supply. Some mentorships tell you to put 3 technical indicators and follow the buy and sell signals. You put in more money since they are the ‘experts’. You might find small success here and there. But eventually, you are back to square one. Your account got wiped again. You will never improve if you’re stuck in this loop. Trust me, you will NOT succeed. Breaking The Loop Solving this will ensure you will survive. You will meet your basic needs. You don’t need to worry about food, water and shelter. You won’t need to stress about not having enough to get by. You won’t need to worry about getting your electricity and water cut off. You won’t need to worry about your landlord coming after for rent. You’re not afraid of getting sick and being not able to afford basic healthcare. You will get your life in order. You will get your personal finance in order. You know exactly how much your net worth is. You know how much your income a month is. You know how much your monthly expenditure is. Once you know all these numbers, you are able to extrapolate how much you need at retirement. Knowing your net worth at retirement is crucial. I will write about how do you calculate for retirement in the future. If you have all these figures worked out, you might not need to work so hard for the 100rr trading system. You can reach retirement earlier by investing your money into the S&P500. But the fact that you’re here, means you’re trying to aim higher isn’t it? The point is that you have to understand your basic survival needs. If you are able to meet the basic needs through trading, you are a good trader. You don’t need to get 5 or 6 digits payout with constant 10% returns every month. All you need is a 2% gain on a $200,000 account which gives you a nice $4,000, trading from a beach villa at Maldives 1 hour a day. Capital Issue But Keeley, I need to have high RR trades and high returns a month to be able to trade full time. You’re right if you’re trading a small capital. If you only have $10,000, you will need 40% gain a month to get $4,000 of monthly income. You can fix this with prop firms. With the rise if prop firms, it is easier to control large amount of capital. If you’re consistent and profitable, it is not hard for you to pass prop firm challenges. To put into context, you only need 4% gain on a $100,000 account to achieve the same $4,000 you need. What is a "good trader" to you? High RR? High profitability? High win rate? Able to quit your 9-5? There are many different definitions of good. How good do you want to be? To me, there's always room for improvement. I do journaling to collect data. Collect as many data points as you can. You can perform data analysis. Analyze them by session, day, time, duration, types of confirmation, month, pair. You know your max drawdown, unprofitable days, months, session, type of trade. You know how your emotion plays a part in your trading results. Know your win probability, win rate, average RR, average stop loss size. Being consistent and being able to profit from the market every week is good, at least to me. What Is Learning? I love the concept of trying new things. If you try, you will either succeed, or you learn. Think of what’s the worst that can happen to you. If you’re learning to be a trader, the worst that can happen to you is that you lose some money. It’s recommended that you start with paper money anyway. So the worst thing that can happen is that you lose a few days of your life. At least you can tell yourself that you’ve tried and it doesn’t work. You won’t have any regrets in the future. Once you fail, you gain experience and knowledge. You can apply these skills to other areas in your life. In trading, you learn about risk management. You learn about the importance of being patient. All these skills compound. It’s not 1+1+1=3. It’s 1+1+1=5. Now, what if you succeed? The upside is unlimited. You’re risking a few days of your life for a potential benefit that can change your whole life. You can be trading for a living, leaving the 9 - 5 life behind you. All you got to do, is to try. I failed a lot. I tried ecommerce, YouTube, private label drop shipping, affiliate marketing and more. All these taught me soft skills that are transferrable. All these lead me to where I am today. A profitable trader with consistency. Personal Finance Framework A lot of people start trading live or forward testing. This is a wrong conception. You have to start with your personal finance. Get your personal finance in order before looking for a side hustle. Yes trading for most people begins as a side hustle. If you have bad debt, clear them first. Many of you have student loans or even consumer loans. Remember that these interests compound real quick if you don’t pay them off. Do not pay the least amount. Eliminate them completely, and fast. Next, make sure you have consistent month cash flow coming in. This is to pay your bills and put food onto your table. This step will ensure your survivability. Make sure you have savings. A rule of thumb is to have at least 6 months worth of expenditure saved up. You will need this money on rainy days. You can lose your job one fine day and will be glad to have this savings to buffer for the your next job. Medical bills can be huge. If you don’t have enough money, you might not get the medical attention you need. You might also need to resort to loans to pay off your medical bills. This brings me to the next point. Insurance. If you’re young and healthy, get insurance. The premium tends to be cheaper when you’re young and healthy. The older you get, the more expensive the premium gets. It’s better to lock in the premium when you’re young as this will save you money in the long run. But you might be thinking, you’re young and healthy, you won’t fall sick. That’s what I thought so too, until I was diagnosed with pneumonia at the age of 25. I was working out 3 times a day and thought I was very healthy. Luckily for me, I had insurance which covered my medical bills. There are also another school of thought. You might be thinking of skipping the insurance and investing the premium yourself. Now the risk here is that investing this amount of money does not guarantee a payout if you fall sick. Let’s say you’re 25 years old. Your insurance premium cost $1,000 a year and the coverage is $25,000. If you’re so unlucky to fall sick at year 2, you would have invested $2,000 in total into the stock market. Let’s say you’re a investing and trading genius and you manage to flip that $2,000 into $4,000. You're covered less than what the insurance will cover. Insurance is as a hedge against big medical cost. It’s a balance between hedging and growing your net worth. It all depends on how you secure you want to be when the time you fall sick and you lose your employment income. Achieve Consistency Once you have your personal finance in order, you have already managed 70% of your survival needs. It took me 5 years to achieve consistency. It can take you faster than 5 years. It will be hard for 1 or 2 years, but it will not stay tough forever. Happy to say that I've made my second payout this month with a new Prop Firm. My long-term holding portfolio is holding up great. This is due to good entries that I've made using technical analysis. Good technical analysis skills don't apply to Forex only. I've always dreamed of and wondered how does it feel to receive big payments consistently. I'm not getting large payouts yet, but I'm already accumulating many prop firm accounts. I focus on risk management, trade management, and trade psychology which I can control. By controlling what I can control, I am making my way to being a 7 figured funded trader. Stay consistent. Stay safe. Success is just around the corner. If you enjoy such content, feel free to click the like button and subscribe for more. Let me know what are your thoughts and learning points in the comments below so others can learn from you too! Please let me know what kind of topic you would like to read next :) Happy weekend!
TVC:SPXEducation
by Keeleytwj
3
“Well, not everybody understands the patterns” Limitless 2011 In the movie Limitless (2011), Eddie Morra (Played by Bradley Cooper) takes a mysterious pill, NZT-48 , that turns him from a struggling writer to a financial wizard . The pill unleashes 100% of his cognitive power, transforming him into an intellectual powerhouse. About 40 minutes in, there is a scene. Hank: "Pattern recognition. That's your snake oil?" Eddie: "Well, not everybody understands the patterns." Why am I sharing this? Well, because not everybody understands the patterns, especially most traders. Did you know that chart patterns actually work? Not all patterns work, just some of them. Although there are numerous patterns in technical analysis books, many of them are actually snake oil. Take, for example, the Bull Flag; this is a Flag pattern occurring in an uptrend, usually during a bull market. The flag pattern is proven* to be snake oil; it is no more than a 50/50 chance of success. Only one flag pattern works; it is called a high tight flag* and works 85% of the time. The chart above (NVDA) is an example of one of the most accurate and successful patterns in technical analysis. The Inverse Head and Shoulders. The inverse head and shoulders is a well-known chart pattern. But how reliable is it? Based on thousands of tested trades from 1996 to 2020, it has an 89% success rate and an average price increase of 45%. Two decades of research* shows an inverse head and shoulders chart pattern has an 89% success rate for a reversal of an existing downtrend during a bull market. When this pattern works, it averages a price increase of 45%; this is one of the most reliable chart patterns. In fact, the NVIDIA chart above made 43% and has exceeded the target. Trading is a Game of Probabilities Trading is definitely a game of probability, but few traders understand the actual probability of each trade. Now that you know the inverse head and shoulders is 89% successful with an average upside of 45%; you can assess your risk/reward and make better trades. Sure, there is an 11% chance of failure and a lower-than-average price increase, but now you know the odds. Take TradingView's NZT-48 Pill In the movie Limitless, Eddie takes the NZT-48 pill and becomes a top trader. But did you know that TradingView is like the NZT-48 pill? How? Because the inverse head and shoulders pattern in NVIDIA (chart above) was discovered and annotated with TradingView's pattern recognition algorithms . TradingView does the hard work for you; it even sets the correct price target and lets you know when it is reached. If you are trading and not using TradingView's in-built pattern recognition, you are not utilizing the NZT-48 superpower. How to Turn On Pattern Recognition in TradingView Click Indicators > Technicals > Patterns Next, select the patterns you want.** I hope this was useful; if you like, hit like. If you want more, hit follow. Happy trading, traders! *Source: The Encyclopedia of Chart Patterns (2021 Wiley) by Tom Bulkowski **I would not recommend using the Pennant Patterns; they are proven not to work.
NASDAQ:NVDAEducation
by liberatedstocktrader
10
How To Make $100+ A Day! Winning Trader Strategy (A+ Setup)Greetings, my wonderful followers! 😇 Today, our focus will be on understanding the mindset of successful traders, exploring their thoughts and what sets them apart from those who struggle, based on their way of thinking. We will examine a non-exhaustive list of insightful quotes that are worth knowing and remembering. I recommend keeping a notepad handy to jot down all the trading knowledge you've acquired over the years. First and foremost, please remember to show your support by liking and following me for more engaging content. Let's get started! ✅ - Trade what you observe: It is crucial to approach trading without bias. Technical analysis provides insights into the potential direction of prices, enabling you to make informed decisions. Allowing biases to cloud your judgment will only lead to confusion and missed opportunities, possibly resulting in financial losses. When analyzing the market, leave your emotions behind. - Plan your trades and follow your plan: It's as simple as it sounds. Create a trading plan and stick to it. Without a plan, you lack rules, and without rules, it's difficult to generate profits. - Embrace the trend: Setups that align with the prevailing trend have a higher probability of success. Therefore, it's advisable to favor bullish setups in a bullish trend and bearish setups in a bearish trend. While trend reversal setups can be enticing, it's important to treat them as exceptions. During periods of quantitative easing or similar economic measures, it's best to follow the market movement rather than trying to time the top or bottom, as it requires a considerable amount of luck. - Trading is 80% psychology and 20% technical analysis: This popular saying emphasizes the significance of psychology in trading. Successful traders possess strong psychological rules and a resilient mindset. They respect these rules, which instill confidence and tranquility. By adhering to their rules, they feel secure in their work, knowing that the odds are in their favor. - Buy low and sell high: "Buy low, sell high" is a strategy where you purchase stocks or securities at a low price and sell them at a higher price. However, this strategy can be challenging, as prices are influenced by emotions and psychology, making them difficult to predict. Traders employ various tactics, such as moving averages, analyzing the business cycle, and assessing consumer sentiment, to determine optimal entry and exit points. - Cut your losses, let profits run: This saying encourages traders to exit losing positions promptly while allowing profitable trades to continue. Assuming the trader follows a sound trading strategy that consistently yields positive results, following this rule allows profits to accumulate over time while minimizing losses. Consequently, it enhances the overall trading experience. - Patience is crucial: One of the cardinal rules in day trading is to exercise patience. Throughout the day, numerous opportunities may arise. However, it's important to wait for the right opportunity that aligns with your specific rules and trading plan. Sometimes, refraining from making any trades at all requires immense patience. With patience and vigilance, most trades will be profitable. - Establishing good trading habits, having a well-defined trading plan, and following sound trading rules are self-explanatory. These three components form the foundation for successful trading. - Set and forget: This approach involves opening a position with predetermined stop-loss, take-profit, and entry levels. Once the trade is activated, you let it run without any further management. Whether the trade ends in a profit or loss, you allow the price to fluctuate according to the predefined parameters, minimizing the need for constant interaction. - Trading is a game of probabilities: Successful traders thoroughly understand the probabilities associated with each trade. They skillfully utilize this knowledge to increase their chances of achieving long-term success. Remember to show your support by liking and following me for more valuable content. That's all for now. Wishing you the best, and may you have a fantastic weekend!
Education
by FortuneAI
1
Trading SECRET: How to Enter & Exit like a ProOver the past five years of trading, I have recognized the importance of continuously critiquing myself and my trading strategy. I diligently monitor my performance on a daily, weekly, monthly, quarterly, and yearly basis. Here's a concise list of the rules I have followed prior to entering and exiting a trade: ✅ Entry Rules Ensuring that the stop loss is positioned beyond the strongest support or resistance line. Staying disciplined and adhering to my trading rules. Assessing the risk/reward ratio and confirming its acceptability. Double-check my entry, stop loss, and target position for accuracy. Considering any potential news announcements that could impact the trade. Evaluating the bid/ask spread to ensure it falls within the normal range for the specific currency pair, trading session, and time. Verifying that I am not risking more than my agreed-upon 1%. Taking into account correlation and avoiding trades that contradict my existing open positions. Confirming that the market exhibits sufficient volume and liquidity. ✅ Exit Rules Evaluating if the market has behaved as predicted and staying on track accordingly. Assessing if the trade has reached a support or resistance line. Reviewing whether the stop loss has been placed too far away or too close. Considering if I am exiting the trade prematurely. If unsure about the trade, exiting immediately. Exiting immediately if I acted impatiently and entered the trade prematurely. Identifying any upcoming news events that could impact the trade. Observing if the trade is changing directions. Reminding myself not to take profits too early, avoiding exiting before reaching the target line. 👉 I often receive inquiries about trading entries. Therefore, I'm sharing a few entry strategies that you can incorporate into your own trading: Range Fade: This strategy involves buying at the range bottoms and selling at the range tops. The risk-reward ratio may not be ideal for many traders, given that the range is usually small. However, by placing the stop loss a few percentage points beyond the range, you can maximize the ratio. Reversal: This entry approach involves entering at the most recent extreme or key level. While this method is quite popular, it often goes against my first rule: "never fight the trend, he's your friend." However, I do consider multi-day/week key levels in my ideas. Breakout: This strategy involves entering a trade as the price breaks out of a range or pattern. It is a reliable option, especially for beginners who are keen on identifying repetitive patterns in the market. For example, you can sell at the neckline of a head and shoulders pattern and profit from it. However, it's important to note that the more complex patterns you observe, the fewer people are likely to use them, which may reduce their significance. Pullback: This entry approach involves entering a trade after a minor reversal or retest. Statistically speaking, this is one of the most frequently used entries in my trading. It is a simple method that allows you to follow the trend. Identify key points, consider Fibonacci levels, and ensure it's not a complete trend reversal. Although you may miss out on a few percentage points of profit using this approach, it can positively impact your long-term profitability. THANK YOU, MY LOVELY FOLLOWERS, FOR TAKING THE TIME TO READ. ❤️
Education
by FortuneAI
5 Potential Outcomes of Trading Gold or Forex Trading gold or forex can potentially lead to various outcomes, both positive and negative. Here are five potential outcomes to consider: 1. Profitable Outcome: Trading in gold or forex can result in profits, which is the ultimate goal of any trader. A trader can make gains if the asset’s value increases, and they sell the asset at a higher price than their entry price. 2. Loss: Trading involves risk, and traders can lose money due to a decline in asset value. Traders should use stop-loss orders to minimize their losses if prices move against their positions. 3. Break-Even: In some cases, the market price may not move in favor of traders or against them. In this case, the trader could exit the trade without making any profits or losses. 4. Margin Call: Trading on margin means borrowing money from the broker to execute trades. If traders use too much leverage and losses exceed their account balance, they get a margin call. This means that the broker will close their position automatically, resulting in a loss. 5. Hold Position: Traders can hold an open position for a long time to wait for the market to move favorably, also known as long-term trading. In conclusion, trading in gold or forex can result in profits, losses, break-even, margin calls, and long-term trading. Traders should consider all of these potential outcomes before opening a trade and implement risk management strategies to minimize losses. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
9
This Breakout Trading Strategy will create MILLIONAIRES...Attention, traders, Breakout trading stands as one of the most widely used trading strategies, offering a seemingly simple concept that becomes intricate and convoluted in practice. In this article, we will explore seven essential steps that every breakout trader should adhere to. 📚To provide a brief overview of breakout trading, this approach revolves around identifying significant levels such as horizontal support/resistance or trend lines, anticipating their potential breakthrough, and capitalizing on the resulting substantial market movement. 1️⃣Without surprise, the first responsibility of a breakout trader involves identifying key levels, preferably on weekly or daily timeframes. 2️⃣Once these key levels have been recognized, a breakout trader must exercise patience and await the confirmation of a breakout. This is where many traders stumble. The challenge lies in having clear and dependable rules to validate a confirmed breakout. I personally employ the following rule: a breakout will be deemed confirmed when the candle closes above/below the structure on the highest timeframe where the structure is identifiable. 3️⃣After confirming the breakout, the subsequent step entails waiting for a retest of the broken level. Retesting is crucial as it provides a more favorable risk-to-reward ratio for the trade. While there is no guarantee that the price will retest the broken level, resulting in missed trading opportunities, retest trading generally yields higher gains in the long run. 4️⃣When initiating a trade on a retest, it is imperative to establish precise target levels—levels at which profits will be taken. Novice traders often make numerous errors at this stage. Remember that your targets should be realistic and based on the nearest strong structure levels rather than your desired returns. 5️⃣Additionally, a breakout trader must set a stop loss—a level of protection set below/above a previous minor structure to safeguard against stop-hunting. The stop loss represents the point at which the trader's predictions are proven incorrect and renders the trading setup invalid. 6️⃣Once a trading position has been opened and stop loss and take profit levels are set, patience becomes paramount. There is no guarantee that the price will experience a sharp rise or fall immediately after the breakout. The market may coil and consolidate for an extended period before exhibiting significant movement. A breakout trader must exercise patience and refrain from allowing emotions to interfere. 7️⃣Finally, it is crucial to remember that exit points are determined by stop loss and take profit levels. Adjusting the stop loss in the event of a drawdown, prematurely taking profits, or extending targets can be detrimental to your trading. Remain disciplined, avoid greed, and keep emotions in check. Naturally, this seven-step trading plan alone is not sufficient for profitable breakout trading. Each step of the plan requires careful consideration of various nuances. Nevertheless, let this plan serve as your initial guideline: learn and adhere to it, while continuously refining its rules over time until you become a consistently profitable trader. Are you engaged in breakout trading? ❤️Please show your support for this idea with likes and comments!❤️
Education
by FortuneAI
Why 90% Of Traders FAIL⁉️ Trading is one of the most fascinating and exciting professions in the world. It promises huge profits, financial independence, and the ability to work from anywhere. But with great rewards come great risks, and 90% of traders fail. Why do so many traders fail? Let's explore the reasons. 📚Lack of education: Many traders jump into trading without the proper education or training. They don't understand the market dynamics, technical analysis, and risk management. Trading is a skill that needs to be learned and practiced over time. Without education, traders are like blind people trying to navigate through a maze. 💔Emotional trading: Emotions are the biggest enemy of traders. Fear, greed, and hope can cloud judgment and lead to poor decision-making. Successful trading requires discipline and emotional control. Traders must learn to keep their emotions in check and stick to their trading plans. 📉Overtrading: Many traders believe that more trades translate into more profits. However, overtrading can lead to burnout, stress, and losses. Traders must focus on quality trades, not quantity. 🆘Lack of risk management: Trading involves risk, and traders must learn to manage it. Risk management includes setting stop-loss orders, using proper position sizing, and diversification. Traders who don't manage risks can quickly wipe out their accounts. ❌Unrealistic expectations: Trading is not a get-rich-quick scheme. It requires patience, persistence, and hard work. Many traders have unrealistic expectations about their profits and timelines. They give up too soon or take too much risk in search of quick profits. So, what can traders do to avoid failure? ✅Firstly, educate themselves. Learn the fundamentals of trading, technical analysis, and risk management. Investors can take various online courses for trading like those from Udacity, the Trading Academy, etc. ✅Secondly, manage emotions and develop discipline. Learn how to control your emotions and stick to your trading plan. Traders must treat trading as a business and follow strict rules like any other business. ✅Thirdly, trade with proper risk management. Develop a risk management strategy before starting trading. Use stop-loss orders, never risk more than you can afford to lose, and diversify your portfolio. 🧠In conclusion, trading can be a rewarding profession that offers many benefits. However, traders must be aware of the risks and pitfalls. By educating themselves, managing emotions, and developing robust risk management strategies traders get a good chance of succeeding in trading. Good luck! 😸Thank you for reading buddy, hope you learned something new today😸 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
14
The AEM Framework: 3-Step Guide to Successful TradingToday, I'd like to introduce you to the 'AEM' framework – a three-step process to successful trading. This framework is designed for everyone, from beginners starting their journey to seasoned professionals looking to refine their strategies. It involves three fundamental steps: Analyze, Execute, and Manage. Let's break down each element: 🔍 'A' for Analyze The first step to becoming a successful trader is to understand yourself and find a trading style that suits your personality, risk tolerance, and financial goals. This includes your emotional comfort with taking risks, your patience levels, and your time commitment to trading. Once you've figured out your trading style, the next step is to analyze potential strategies. Whether you're inclined towards fundamental analysis, technical analysis, or a combination of both, you must thoroughly understand the strategies you want to apply. Finally, analyze your chosen strategies and yourself to create a robust trading plan. Your trading plan should include what you'll trade, when you'll enter and exit trades, and your criteria for decision-making. Remember, the goal isn't to make perfect predictions but to follow a consistent plan that can potentially yield positive results over the long term. 🎯 'E' for Execute The second phase is execution. You've made your plan, and now it's time to put it into action. Execute your trades according to your strategy, without letting emotions cloud your judgement. Remember, it's about sticking to your plan – not chasing profits or running from losses. But executing your plan isn't just about trading. It's about discipline and consistency, regularly reviewing your trading activity, making adjustments as necessary, and continuously learning from your experiences. 📊 'M' for Manage The final step in the AEM framework involves managing several aspects of your trading: Manage Yourself: Trading can be emotionally taxing. Maintain your physical and mental health to ensure you're always in the best shape to make rational decisions. Manage Your Risk: No strategy is bulletproof. Always use stop losses, position sizing, and diversification to manage your risk effectively. Manage Your Trades: Monitor your trades, keep records, and review them periodically to identify patterns, learn from your mistakes, and improve your strategy. Manage Your Money: Keep your capital safe. Never risk more than a small percentage of your trading capital on any single trade, and be sure to keep some funds in reserve for unexpected opportunities or setbacks. The AEM approach is a comprehensive method that can assist you at all levels in creating, executing, and managing a successful trading plan. It encourages introspection, disciplined execution, and careful management. Remember, the journey to trading success isn't always smooth, but the right approach and mindset can make it considerably more navigable.
Education
by TheFxAce
13
How to become an ALPHA TraderMastering the Path to Becoming an Alpha Trader: Essential Principles for Success Exercise Discipline: Avoid Overtrading Maintaining discipline is crucial in the fast-paced world of trading. Resist the temptation to trade excessively, as quality always trumps quantity. Remember, patience is a virtue, and waiting for high-quality setups will yield better results. Seize Opportunities: Avoid Under-trading Recognize valuable trade setups and have the confidence to take action. Don't let hesitation or fear hold you back from executing on well-analyzed opportunities. Trust your instincts and capitalize on favorable market conditions. Manage Risk: Take Control of Your Losses While profit is enticing, effective risk management is the cornerstone of successful trading. Acknowledge the potential for losses and implement risk control measures to safeguard your capital. Limiting losses is just as important as maximizing profits. Streamline Your Approach: Simplify Your Strategy Amidst the sea of information available, it's easy to drown in complexity. Streamline your trading approach by focusing on a few proven strategies and indicators that resonate with you. Simplifying your strategy will enhance clarity and decision-making. Trade with Precision: Embrace Robotic Execution Emotions have no place in trading. Develop a systematic approach that removes emotional biases from your decision-making process. Execute trades based on predefined rules, allowing you to act with discipline and consistency. Reflect and Evolve: Learn Your Strengths and Weaknesses Successful traders are self-aware and continuously strive for self-improvement. Analyze your trading behaviors, strengths, and weaknesses. Leverage your strengths and work on overcoming your weaknesses to evolve as a trader. Amplify Success: Double Down on High-Yield Trades Identify trading activities that consistently yield favorable results. Once you recognize your areas of strength, allocate more resources and focus on maximizing returns in those specific areas. Amplify your success by capitalizing on what works best for you. Embrace the Basics: Don't Fear Going Back to Square One If you find yourself in a rut or facing challenges, don't hesitate to revisit the fundamental aspects of trading. Revisit the basics, reinforce your knowledge, and reaffirm your understanding of core trading principles. Building a strong foundation is key to long-term success. Remember, adopting these essential principles and incorporating them into your trading routine can significantly enhance your journey to becoming an alpha trader. Engage with the content, share your own best trading tips, and show your support through likes and comments. Stay committed, keep learning, and look forward to more valuable insights. Thank you for your continued readership, and we'll see you in the next installment! ❤️
Education
by FortuneAI
[Education]Don't Make Love With The MarketTrade what you see, not what you feel. Human are emotional creatures. Believe it or not, I had attitude problems in the past. I get angry easily and this is a bad trait to be a trader. In the beginning when I was still a noob, I would fund a live account without learning how to trade properly. I buy and sell base off moving average, RSI, MACD, and signals. You guessed it, I burst plenty of accounts. Even if I win some trades, I would lose many more next. Whenever I lose a trade, I will feel angry. When I feel angry, can you guess what I do next? I revenge trade. I don't believe that gold will not go higher. Let me take another long position. Wait what the.. my trade got taken out again? I think this is a stop hunt. Last try. This time the price will sure go higher. "Opens another long position with larger lot size". And you guessed it. I wiped out my account trying to catch a falling knife. Ditch Your Emotions Keep your feelings and emotions and aside when trading. The market doesn't care if you're happy or sad today. It will do what it wants to do. You can't control how the price move. Neither do I. Unless you have in control billions of dollars. If you do, why are you even reading this? The problem is not with the market nor your trading strategy. The problem lies in YOU. You are the common factor here. All strategies can be profitable with the right execution, trade and risk management. But why can someone else be profitable but not you? It seems like everything is profitable until you put your own money in isn't it? When you allow your emotions to take over, you won't be rationale. You will take actions based off your emotions. If you feel doubt, you will look for confirmation not to take a trade. If you feel angry, you will take revenge trades. If you feel happy, you will feel like you won't lose your next trade and get complacent. If you feel overconfident, you will risk more on your next trade. If you feel fear, you will close your trade early for small profits. If you feel tired, why the heck are you still on the chart? Feelings are subjective and the market has no interest in it. The Downward Spiral Trading based off feeling is like gambling. Gambling belongs in a casino, not the financial market. Let's say, you feel like the market is heading towards a recession. Would you blindly short the market if the price did not give you any confirmation? This is the problem with you. You let emotions take over your decision making skills. This is why you cannot achieve profitability. You might be in a trade, price goes against you and you’re in drawdown. You fear that the price will take you out. You cut your trade. Price reverse and hit your profit target. You could have won the trade by following your plan, but you let your emotions take control of your decision. When this happens too many times, your profitability decrease significantly. This makes a profitable strategy becomes unprofitable because your trade management sucks. Not only will you lose money trading like this, but also precious time. How long did it take you to backtest that trading system? 1 day? 1 week? How many times are you going to repeat this and waste even more time? Even if I give you the holy grail trading strategy, you will still not achieve profitability. It's not the system. It's you. You will NOT achieve success in trading if you cannot master your emotions. Say goodbye to your financial freedom and a life of enjoyment. The only thing you can enjoy is the occasional small wins that you cut before the trade becomes a runner. You will still be unprofitable. Follow Your Plan If I have to summarize how I became profitable, it will be to follow your plan. Trade what you see because only you know your own analysis. You've backtest enough to see how your edge will play out over a large number of trades. Do not let other people’s analysis interfere with your trades. They could be looking at the 1 minute timeframe, but you're trading on the 15 minute timeframe. Price is fractal. If price is bullish on the 1 minute, it can be bearish on the 15 minute. Why do you want a second opinion on your trade? When price shows you what it’s doing, react to it. Do not anticipate what the price will do and assume that price will do exactly that. But Keeley, it’s so boring to wait for price to come back to my entry. I might miss the trade. I will take a short here because I’m expecting price to go lower and tap into my long order. People want to be in the action. How many times do you expect price to make a bearish retracement and tap you into your long position? How many times did you actually open a short position and expect your long to get tapped in? If price did not give you any confirmation, don't take the trade. The market will do what it wants to do. You can't expect the market to do exactly what you anticipate it to do. Experience When I was scalping on the seconds chart, I was loving every moment of it. I was constantly in a trade, catching all the movements. If I lose, it’s fine. I would always think that I have more opportunities coming soon. I would expect price to do what’s playing out in my mind. This was not sustainable as I was taking too many trades within a short period of time. Even on a tight spread account, spread on lower timeframe accounts for a chunk of my risk management. Your trading psychology should be strong when scalping on the lower timeframe. Scalping a few pips per trade is doable but it's stressful. I thought my trading psychology was good, until I experienced a losing streak. The more losses I experienced during the day, my psychology got affected more. This goes the same for losses in the same trading session. I’d do stupid things like risking more than normal, taking trades that I don’t usually take. I also take trades without confirmation. I used my feelings to trade as I expected price to play out what I wanted. Eventually, the win’s going to come right? This happened for a few weeks and I burst quite a few challenges. I lose quite a lot of motivation and called quits. I’m quite a lazy person. I do not like to sit in front of my laptop stalking TSXV:SPDR S&P 500 ETF Trust(SPY)$ , $Tesla Motors(TSLA)$ or $Apple(AAPL)$ and trade for a few hours straight. I took a few weeks off from charts and reflected. I look deep into myself for answers. I got the answers. I will try to be sufficient just by trading the higher timeframe. This way, I do not need to sit in front of my laptop for a few hours. I have the freedom to do what I like without sticking to my charts. This sits well with me too as this trading style fits my lifestyle. This way, I can avoid overtrading. I can easily see what I trade because each candle took 15 minutes to be completed. This kept my trading psychology at tip top condition. Framework PBJ Framework No this is not peanut butter and jelly. Let's breakdown the following: Plan : Know what to look out for. Know what to do before, during and after trading. Before entering a trade, know how much you’re risking. Know your entry signal, confirmation, and stop loss placement. Do you take partial profits? If yes, where will you take the profits? How much position will you take at each partial profit targets? If the price did not meet any of the condition, DO NOT take a trade. Be in the moment : During the trade, know how you’re going to manage your trade. Do you shift your stop loss to breakeven? Do you take partial profits? Do you scale into your trade? Check your emotions. Are you feeling anxious? Angry? Confident? Tired? Excited? Your emotions have no say when you're trading. Journal : After closing the trade, journal your trade. Write down how you feel before, during and after the trade. Write down how did you manage the trade. Give it a score from 1 - 5. This will help you in the future when you’re reviewing your trades. When you have 100 trades recorded, you can finally do your analysis. Look at the times when you trade based on feeling. How do they play out? Are those trades profitable? Look for the common factor on all your winners and losers. The more information you record on your journal, the more analysis you can perform. Achieving Profitability Using the PBJ Framework, I see great improvement in my trading skills. I started to be more present and conscious of what I'm feeling. I recorded almost everything. From my pre-trading ritual to post-trading ritual, I have all the data I need. I know how my emotions change throughout the trading session. I know how often my edge will play out. I know which days are profitable. I know which trading sessions are profitable. I know which months are profitable. I know which are my most profitable pairs. I find peace with losing. Why? I have all the data. I have evidence that my edge will be profitable if I take all the trades that appears in front of me. I avoided trading on days and session where I have the least profitability. Not only did this increased my win ratio, but profitability too. I was once unprofitable. Since then, I found consistency and manage to get funded with FTMO and The Funded Trader. My first payout was small. It's only USD$200 on a $10,000 account. Even so, this is one big step ahead in my milestone. I was targeting one payout for 2023 and I've achieved this target in May. I got my second payout in June. My goal was to get $50,000 funding by end of this year, but I've already achieved it in May. I've now stretched my goal to $200,000 funded by end of this year. The Ordinary Life Life always begins with one step outside of your comfort zone. - Shannon L. Alder To create an extraordinary life, take full responsibility for your actions and decisions. Stop blaming external factors, and focus on the things you can control. Take full responsibility of your trades, your mindset, and your emotions. If you can’t control what others think about you, then don’t. What are the things that you can control? How you treat yourself, your body and your mind. How you react to people and situations. How you think. What you do with your time. The people you choose to surround yourself with. How you treat others. Where you give your time, energy and attention. The contents that you consume. When you’re trying to do the extraordinary, the ordinary will try to stop you from doing. People don’t like to see you succeed. They heard that entrepreneurship is hard and risky. You could lose a lot of money. They think that they have the best interest in you. They like to stay in the comfort zone and you should stay there with them. They tell you to be realistic. You are not someone incredible of great success. Anything can happen, especially in the market. You can win with a wrong setup, and lose with the right setup. It’s up to you to take the first step. There will be a lot of what-ifs and negative scenarios in your head when you’re venturing into the unknown. The unknown is scary. But what if it turns out better than expected? What if everything should go well, actually went well? That’s something you can only find out if you take the first step. Guidance Trading is the easy part for many people. All trading strategies are profitable if you backtest them enough. The hard part of trading is actually coming up with an exact trading plan and risk management system. Many of you drown when it comes to a trading plan. Not know where to start when creating one is also a very big issue. You need to train and strengthen your psychology and discipline yourself. But you need a coach to guide you to the correct path. This is why even world class athletes like Usain Bolt has a coach. A coach gives guidance and a holistic review on your You can choose to grow alone. But having a coach an an accountability partner will help you achieve your goals faster. Imagine spending a year learning psychology and risk management, only to find out you were on the wrong track. If you had a coach and mentor, you would have saved yourself one year of trial and error. You could be profiting from the market so much earlier. Remember, trading is not an easy hustle. It take years of hard work, losses and, breakeven before you can achieve consistent profitability. Stay consistent. Stay safe. Success is just around the corner. If you enjoy such content, feel free to click the like button and subscribe for more. Let me know what are your thoughts and learning points in the comments below so others can learn from you too! Please let me know what kind of topic you would like to read next :) Happy weekend!
TVC:SPXEducation
by Keeleytwj
2
How to make 100$ a Day in Tradingf you are relatively new to trading crypto currencies, then this tutorial is what you need. In this tutorial, I will try to explain how you can use crypto to grow your capital consistently everyday. Don’t just Hodl Hodling (a.k.a. holding currencies) is the strategy of buying some crypto asset (e.g. Litecoin) and holding it for many days, weeks, months or even years. This may be a good strategy for newly launched ICOs that may double, triple or quadruple in value soon. But I personally advise you against holding, in other words, don’t follow the herd and don’t be a headless chicken. The reason why holding isn’t a very practical move for well established coins is because of their volatility. Risk of holding Holding is more like gambling than trading, simply because the risk is too high and there’s too much uncertainty. My strategy is to trade them continuously. I am a huge believer that assets unused diminish — meaning: whatever you don’t use, you lose. Saving piles of coins under your bed, hoping their value will increase isn’t always the best way — unless you are willing to take that risk or you know with high certainty that the price of some crypto coin will go up in the next few days, weeks or months. Always research properly about the coin and project before buying for long term. There are some ALTs which are down more than 99% and people are still holding them in hopes (who bought them at ATH) Day Trading Trading assets on a regular basis could be a safer bet and might be more profitable for you. So you can actually take the risk of buying today and selling tomorrow or within the next couple of days. There is no guarantee that tomorrow’s price will be higher than your current buy price — but it’s still better than crossing your fingers and holding indefinitely. You can trade according to your strategy and with a proper plan, Use calculated risks. Try to Day Trade only high liquidity assets like BTC or ETH to overcome manipulation and high volatility. Remember that profits come from buying as low as possible and consequently selling as high as possible. So everything starts with finding a good low entry position. But don’t be scared because you will encounter a few red candlesticks along the way. And remember, not every trade you make will be profitable, but if you remain consistent with your strategy then you’ll have more wins than losses. Even though trading can be a risky business, it is only so if you don’t have a clue of what you’re doing. But once you have a basic plan that works, you are set. I hope this post served useful to many aspiring crypto traders. Once you master trading with proper consistency, practice, patience and hardwork then it will be highly profitable!
Education
by FortuneAI
1
This Day Trading Legend turned $13,600 into $1 BillionJapan’s famed ‘bedroom’ trader Takashi Kotegawa is one of its most famous intra day traders,who made a fortune from trading stocks on the Tokyo Stock Exchange in the early 2000s. Apparently he grew a small account of roughly $13,600 to $153 million in just about 8 years! In fact sometimes he even made millions per trade. Now, driven by ambition, he sets his sights on achieving billionaire status. Also known in the Japanese trading community by his chatroom username “BNF” and often nicknamed as“J-Com man”, Takashi Kotegawa was born on March 5, 1978, in Ichikawa, Chiba, Japan. He reportedly started trading stocks on the Tokyo Stock Exchange in the bear market of 2001.Despite being a multi-millionaire and one of the most popular intra day trader in Japan, he is believed to be a humble guy and doesn’t buy fancy cars or eat lavish meals. However, one thing that he reportedly did splurge on, was a top-floor apartment that he bought for a whopping 400 million yen. BNF's path was far from easy. As a college student, he faced financial constraints like many others, striving to make ends meet. However, he possessed an unwavering determination to outperform the financial system. The moniker "BNF" originated from his admiration for Victor Niederhoffer, an American hedge fund manager who incurred significant losses in the stock market. Takashi Kotegawa adopted the abbreviation as a tribute to his mentor. BNF, a broke 20-year-old college student, developed an interest in the stock market after watching a television news segment. He resolved to learn technical analysis (TA) and conquer the market to secure a more comfortable life. For two years, BNF worked various jobs to raise capital while concurrently immersing himself in the intricacies of the stock market. His perseverance paid off, and he began investing in Japanese stocks during a bear market, where he remained calm and logical amidst widespread fear and panic. In 2005, Takashi made millions through a single trade in J-Com Holdings after its IPO on the Tokyo Stock Exchange. That opportunity was thanks to an error committed by a trader at Mizuho Securities, who accidentally sold 610,000 shares at one yen each instead of selling one share at 610,000 yen! That huge sell order sent the stock price crashing, and ofcourse, Takashi saw an opportunity over there. He bought 7,100 shares while the price was down. While he chose to sell a part of his position in the bounce and held some shares overnight, he had reportedly made more than $17 million at the end of that trade. It's natural to wonder about the ‘magic’ strategy that Takashi used to make millions in the stock market. But all that's been clear till day due to the absence of adequate details about it. Neither does he share every trade publicly nor much information at all about how he made his millions. But apparently, it's believed that he thinks that it’s easier to make money in bear markets than in bull markets, and looks for short-term rebound plays in stocks that are down. Through discipline, consistency, rationality, determination, and focus, BNF achieved remarkable success. Within two years, he transformed his initial investment of $13,600 into an impressive $15 million, which marked only the beginning of his extraordinary trading journey. Regrettably, BNF once deviated from his trading rules and principles by investing in U.S. stocks instead of Japanese stocks. Based on a misguided assumption that U.S. bank shares were collapsing, he made a substantial investment in bank shares during the housing market crash. This move resulted in a loss of over $10 million, teaching him a valuable lesson about the importance of adhering to his trading principles. Some people describe Takashi Kotegawa’s trading strategy as divergence day trading, wherein he uses indicators like Bollinger Bands, Relative Strength Index (RSI), volume ratio, and the 25-day moving average for decision making. He also supposedly likes to buy stocks that are at least 20% below the 25-day moving average and then profit from the bounce. And, since the markets constantly change, he tends to adapt the percentage he looks for based on the overall market and individual sectors. He also gets a feel for how stocks in different sectors move and how fast they rebound, and then accordingly takes his decisions. More importantly, like all day traders, he too likes to capitalize on momentum, especially when the market is down.
Education
by FortuneAI
4