Get started

Riskmanagementstrategy

Avoid Forex Mayhem with Good Risk ManagemenTrading forex? Stop gambling with your capital! This video exposes the massive mistake new traders make - using inconsistent lot sizes. It's a recipe for disaster, blowing accounts and crushing dreams. But there's good news. Discover the secret weapon of successful traders: consistent lot sizing. In this actionable video, you'll learn: Why fluctuating lot sizes blindfold you to risk and leave you exposed The simple formula to calculate safe and sustainable lot sizes How consistent sizing fuels confidence and boosts profits Bonus tips to maximize your forex trading performance Say goodbye to trading nightmares and hello to controlled growth! Watch this video now and take control of your forex future. P.S. Don't be the trader left behind. Watch before it's too late!
Education
by tradingwithanthony
GoldViewFX - Gold Route Map UPDATEHey Everyone, PIPTASTIC finish to the week with our chart idea playing out perfectly in true level to level fashion with setups giving plenty of time to prepare and get ready for the entries and exits. We started the week with ema5 lock below 2044 opening the retracement range, which was HIT with plenty of retests. Ema5 failed to lock below the retracement level at 2024 and therefore no swing range confirming the support and bounce followed with the push up hitting both our Bullish targets 2044 and 2055. We are now seeing the weighted level at 2055 being tested and will need to see ema5 lock above this level to open the range above or failure to lock will see another dip down. A perfect week of buying dips!!! BULLISH TARGETS 2044 - DONE 2055 - DONE EMA5 CROSS AND LOCK ABOVE 2055 WILL OPEN THE FOLLOWING BULLISH TARGET 2065 2070 BEARISH TARGETS 2044 - DONE EMA5 CROSS AND LOCK BELOW 2044 WILL OPEN THE FOLLOWING BEARISH RETRACEMENT TARGET 2024 - DONE EMA5 CROSS AND LOCK BELOW 2024 WILL OPEN THE SWING RANGE SWING RANGE 1999 We will now come back Sunday with our multi timeframe analysis, Gold route map and trading plans for the coming week. Please don't forget to like, comment and follow to support us, we really appreciate it! Have a wonderful weekend, we all deserve it!! Mr Gold GoldViewFX
FXOPEN:XAUUSD
by Goldviewfx
Multi-time Frame Analysis of GBPUSD Jan 4th 2023 - Daily Chart Analysis 1. The Daily swing range is from 1 & 2 (See Blue 1 & 2 for reference) My prediction will move from 1 than to 2 but that is in a long term horizon 2. Current price action is between the D-Ibos high weak & the 4h-Swing High Weak. 3. Price has mitigated the equilibrium of the daily swing range 4. The trades off the supply and demand zones are lower probability tend to be lower probability 5. Price entered the daily phase B (see blue 3 for reference) and had a reaction causing a push down back to the EQ of the daily low strong (See 4 for reference) 6. Price is currently in the daily C.4 demand zone. A. Price is bearish on the daily and 4h in between the daily high weak and daily low strong. If price switches to bullish by breaking the daily internal break of structure than I will look for longs off demand zone generated from the break. B. If price breaks the daily low strong (blue 4 for reference) than I will switch to bearish set-ups (A.1)
by Trader_Miles
Happy New Year 2024| Learn Our Methods | Read Description|Happy New Year Everyone 2024: Let's first talk about CHFJPY then we will talk about how you can improve and learn some tips. CHFJPY in last six or seven months price overbought heavily due to JPY poor performance and government's zero intention to interfere in the market. However, many reports suggests that JPY will likely to be rebound in first quarter of 2024 in this case we can see a strong shift in price characteristics. Our first entry indicates, that we should expect price to continue the bearish momentum and drop from current area of the price. However, as we will having NFP in the first week of the month, it is likely to see some unexpected movement in the market. Second entry, is when price fill the gaps in the market and then drop smoothly, we will keep you updated. We want all of you to succeed in the forex or commodities trading. Here how you can improve: Firstly find one or two pairs that suits you: meaning if you focus on every single instruments available to trade in the market, you will never succeed instead focus on one or two pairs and master them, know how and when these pairs move, what factors influence them in the market and trade swing highs and lows. Secondly, use longer time frames to have a better vision, have a longer vision which will help you catch the big moves, yes, it is time consuming but if you are beginner then focus first in this and then along the way you will learn intraday trading. Lastly, learn more about consolidation, accumulation and distribution: before the big reversal, price first will consolidate then accumulate and distribute, you should be looking to enter in phase of accumulation and take every enter when price consolidate which leads to a breakout. If you learn above information in details and practice, your chances of becoming a successful trade increase. There is no overnight success, it is all hard work, if you believe in your self and focus on above things you will one day be proud of yourself. Happy New Year and Trade Safe 2024. We wish all of you all the best. Team Setupsfx_
Education
by Setupsfx_
11
New Traders Ask, Experienced Traders Answer: Q&AHello TradingView Community! 🔸We're excited to launch a unique Q&A session right here! If you're new to trading and have questions, this is your chance to get them answered by seasoned or just other traders. Whether it's about technical analysis, trading psychology, or managing risks, feel free to ask anything related to trading. 🔸Experienced traders, we invite you to share your wisdom and insights. Your knowledge is invaluable, and this is a great way to give back to the community. Guidelines:👇 - Please keep questions and answers respectful and constructive. How It Works:👇 - New traders: Post your questions in the comments. - Experienced traders: Reply to these comments with your answers. - Let's make this a rich learning experience for everyone involved. We're looking forward to your questions and the insightful discussions they spark! P.S.: All the information shared here will be based on personal knowledge and the personal experience of traders! This is just an opinion, not financial advice! Happy Trading!
COINBASE:BTCUSDEducation
by SwallowPremium
16
Managing Gold Long & SL - A Multi-Indicator Consensus IndicatorDear Valued Investors, O n the financial markets, we find ourselves immersed in the story of Gold (XAUUSD), a tale of resilience and growth. Since November 13, 2023, Gold has gracefully embraced a bullish trajectory, dancing its way from $1928 to a harmonious $2002. This surge reflects the prevailing positive sentiment within the market. O ur cherished Multi-Indicator Consensus indicator , a guiding light in the complex world of trading, has been whispering about this bullish dance for the past two weeks. However, as we embark on this journey together, let us tread with both excitement and caution. W hile the absence of a bearish signal is reassuring, prudence suggests that initiating a new long position at this juncture might be akin to stepping into the dance mid-performance. The prolonged bullish stride, unaccompanied by a recent confirmation signal, hints at the potential for a gentle retracement or a graceful consolidation period. T o navigate the delicate balance of risk in our existing gold long position, we extend our hand to the wisdom of the trail profit stop-loss order. This order, a silent guardian in the realm of trading, elegantly adjusts the stop-loss level as the market rhythm unfolds. It allows us to savor the sweet taste of profits while gracefully curtailing potential losses. F or our gold long position, consider setting the trail profit stop-loss order at a Fibonacci retracement level – perhaps the enchanting 0.382 or the harmonious 0.5 retracement level. These levels, like gentle notes in a melodic composition, often serve as supportive zones during the ebb and flow of market pullbacks. A s we waltz with Gold's positive momentum, let us also be attuned to the nuances of increased risk that accompany holding a long position without a recent bullish signal. The overarching melody is one of positivity, but the absence of a fresh confirmation note calls for a measured and deliberate approach. I n closing, while the Multi-Indicator Consensus indicator paints a portrait of optimism for Gold, the prolonged bullish journey without a recent signal and the elevated risk call for a symphony of risk management strategies. Consider the trail profit stop-loss order as a gentle partner, guiding you through the dance, protecting profits, and gracefully managing the inherent risks of the gold long position. Disclaimer: This heartfelt guidance is not to be construed as investment advice. As you waltz through the markets, remember that the rhythm of each trade is unique. We encourage you to perform your own due diligence or seek the counsel of a financial advisor before making any financial decisions. With Warm Regards, Ely
TVC:GOLDLong
by Elysian_Mind
An AI Analytics - 💶 EURUSD Trajectory: Bullish Market Dynamics💶 Fellow TradingView Community, I n the ever-changing landscape of forex trading, the EURUSD pair has been displaying notable advancements, aligning with our earlier forecasts. In recent weeks, the Euro has demonstrated formidable resilience against the US Dollar, achieving its most elevated weekly closing position since August. This upward momentum can be attributed to various elements, encompassing increased bond yields and a diverse market sentiment, bolstering the US dollar throughout the trading sessions. I n the short term, our analysis suggests a continued potential for the EURUSD cross rate to ascend further. Contributing to this outlook are weaker-than-expected US economic data and an overall positive risk appetite in the market. However, it's crucial to acknowledge the presence of escalating political tensions, introducing an element of risk to our short-term projection for a weaker USD. A s we delve into the technical aspects, the current price positions itself above the support/resistance structure, and efforts are underway to breach the short-term trendline. A successful break above this trendline could pave the way for a higher trajectory, with a bullish target of 1.102, marked by the upper purple box on the chart. H owever, it's important to temper expectations; a parabolic trajectory to the target is not a given. Beneath the 1.102 target lies the 1.096 resistance, serving as a potential subsequent target in a bullish scenario. Anticipating potential market retracements, we identify possible correction levels, such as retracing towards the support at 1.065 or a pullback towards the current price before reaching the 1.096 target. I n the midst of these potential scenarios, the overarching bullish trend remains a key consideration. Retracements, while natural in market dynamics, present favorable Risk-Reward Ratios for initiating new positions. On the chart, a long position initiated on October 23rd has been projected into the future, indicating scaling potential. In the event of a retracement and the persistence of a bullish trend, additional positions may be added around the 1.066 level. C aution is warranted, and risk management is integral. The red zone around 1.064 signifies a potential stop loss level, aiming to break even on the mentioned positions. Despite these considerations, no position closures are currently under consideration, given the potential longevity of the bullish trend. As we navigate these market dynamics, the key lies in adaptability and a keen understanding of the nuanced factors shaping the EURUSD trajectory. The path ahead may hold retracements, yet within them lies the opportunity for strategic positioning and scaling in line with the prevailing bullish sentiment. This is not intended as investment advice. The presented idea solely represents a personal opinion, and I do not provide any assurance that the chart forecasts future outcomes. It is crucial to conduct your research, uphold your responsibility, and feel at liberty to glean insights from the information I have shared. Kind regards, Ely
Long
by Elysian_Mind
10
How To Use RISK vs. REWARD RatiosHi Traders, Investors and Speculators 📈📉 Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Daytime job - Math Teacher. 👩🏫 For today's post, we're diving into the concept " risk reward ratio " by taking a look at practical examples and including other relevant scenarios of managing your risk. What is considered a good risk to reward ratio and where can you see it ? This applies to all markets, and during these volatile times it is an excellent idea to take a good look at your strategy and refine your risk management. Let's jump right in ! You've all noticed the really helpful " long setup " or " short setup " on TradingView chart ideas. This clearly identifies the area of profit (in green), the area for a stop-loss (in red) and your entry (the borderline). It also shows the percentage of your increases or decreases at the top and bottom. This is achieved by using the tool you can find in your toolbar on the left, 7th from the top. The first two options are Long Position and Short Position. It looks like this : 💭Something to remember; It is entirely up to you where you decided to take profit and where you decide to put your stop loss. The IDEAL anticipated targets are given, but the price may not necessarily reach these points. You have that entire zone to choose from and you can even have two or three take profits points in a position. Now, what is the Risk Reward Ratio expressed in the center as a number.number ? The risk to reward ration is exactly as the word says : The amount you risk for the amount you could potentially gain. NOTE that your risk is indefinite, but your gains are not guaranteed . The risk/reward ratio measures the difference between the entry point to a stop-loss and a sell or take-profit point. Comparing these two provides the ratio of profit to loss, or reward to risk. For example, if you're a gambler and you've played roulette, you know that the only way to win 10 chips is to risk 5 chips. Your risk here is expressed as 5:10 or 5.10 .You can spread these 5 chips out any way you like, but the goal of the risk is for a reward that is bigger than your initial investment. However, you could also lose your 5 and this will mean that you need to risk double as much in your next play to make up for your loss. Trading is no different, (except there is method to the madness other than sheer luck...) Most market strategists and speculators agree that the ideal risk/reward ratio for their investments should not be less than 1:3, or three units of expected return for every one unit of additional risk. Take a look at this example: Here, you're risking the same amount that you could potentially gain. The Risk Reward ratio is 1, assuming you follow the exact prices for entry, TP and SL. Can you see why this is not an ideal setup? If your risk/reward ratio is 1, it means you might as well not participate in the trade since your reward is the same as your risk. This is not an ideal trade setup. An ideal trade setup is a scenario where you can AT LEAST win 3x as much as what you are risking. For example: Note that here, my ratio is now the ideal 2.59 (rounded off to 2.6 and then simplified it becomes 1:3). If you're wondering how I got to 1:3, I just divided 2.6 by 2, giving me 1 and 3. Another way to express this visually: If you are setting up your own trade, you can decide at what point you feel comfortable to set your stop loss. For example, you may feel that if the price drops by more than 10%, that's where you'll exit and try another trade. Or, you could decide that you'll take the odds and set your stop loss so that it only triggers if the price drops by 15%. The latter will naturally mean you are trading at higher risk because your risk of losing is much more. Seasoned analysts agree that you shouldn't have a value smaller than 5% for your stop loss, because this type of price action occurs often during a day. For crypto, I would say 10% because we all know that crypto markets are much more volatile than stock markets and even more so than commodity markets like Gold and Silver, which are the most stable. Remember that your Risk/Reward ratio forms an important part of your trading strategy, which is only one of the steps in your risk management program. There are many more things to consider when thinking about risk management, but we'll dive into those in another post. _______________________ 📢Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 💎Hit like & Follow 👍 We thank you for your support ! CryptoCheck
Education
by CryptoCheck-
35
High Returns, Low Risk: Unveiling a Winning Investment StrategyI am pleased to introduce a robust long-term strategy that seamlessly combines performance with an enticing risk profile. This strategy involves strategically investing in ETFs indexed on the S&P 500 and ETFs backed by physical gold. Let's delve into the rationale behind selecting these two assets: S&P 500: 1. Automatic Diversification: Instant exposure to a diverse array of companies, mitigating the risk associated with the individual performance of a single stock. 2. Low Costs: ETF management fees are typically low, facilitating cost-effective diversification. 3. Liquidity: Traded on the stock exchange, S&P 500 ETFs offer high liquidity, enabling seamless buying or selling of shares. 4. Historical Performance: The S&P 500 has demonstrated consistent long-term growth, making it an appealing indicator for investors seeking sustained growth. 5. Ease of Access: Accessible to all investors, even those with modest investment amounts, requiring only a brokerage account. 6. Simple Tracking: The S&P 500 index simplifies market tracking, eliminating the need to monitor numerous stocks individually. 7. Dividends: Companies included often pay dividends, providing an additional income stream. 8. Long-Term Strategy: Ideal for investors pursuing a long-term approach, S&P 500 ETFs are pivotal for gradual wealth building. 9. Geographical Diversification: Investing in an S&P 500 ETF offers not just sectoral but also geographical diversification. Despite the U.S. base, many included companies have a global presence, contributing to international portfolio diversification. Moreover, Warren Buffett's 2008 bet, where he wagered $1 million on the passive S&P 500 index fund outperforming active fund managers over a decade, underscores the difficulty even seasoned financial experts face in surpassing the market's long-term return. This further strengthens the notion that choosing an S&P 500-linked ETF can be a prudent and effective investment strategy. Investment in Physical Gold ETFs: 1. Exposure to Physical Gold: Designed to reflect the price of physically held gold, providing direct exposure without the need for physical acquisition, storage, or insurance. 2. Liquidity: Traded on the stock exchange, physical gold ETFs offer high liquidity, allowing investors to buy or sell shares at prevailing market prices. 3. Diversification: Gold's unique reaction to market dynamics makes it a valuable diversification asset, potentially reducing overall portfolio risk. 4. Lower Costs: Compared to physically buying gold, investing in physical gold ETFs proves more cost-effective in terms of transaction costs, storage, and insurance. ETF management fees are also relatively low. 5. Transparency: Managers regularly publish reports detailing the gold quantity held, ensuring transparency about underlying assets. 6. Accessibility: Physical gold ETFs offer easy market access without the need for physical possession, appealing to investors avoiding gold storage and security management. 7. Gold-backed ETFs: These ETFs physically hold gold as the underlying asset, with investors often having the option to convert their shares into physical gold. After extensive research and backtesting across diverse ETFs covering various asset classes, including bonds, real estate, commodities, and stocks of financially stable companies, my findings notably highlight a standout option during times of crisis: physical gold ETFs. The strategy hinges on leading indicators, powerful economic tools. Leading Indicators: Leading indicators, or forward indicators, are crucial tools in economics and finance for anticipating future trends. In contrast to lagging indicators, which confirm existing trends, leading indicators provide early signals, aiding informed decision-making based on anticipated economic developments. Key characteristics include: Trend Anticipation: Early insight into upcoming changes in economic activity, facilitating preparedness for market developments. Responsiveness: Quick reactions to economic changes, sometimes preceding other indicators. Correlation with the Economy: Association with specific aspects of the economy, such as industrial production, consumer spending, or investments. Examples include: • Housing Starts: Providing early indications of the real estate market and construction investments. • Net New Orders for Durable Goods: Indicating business investment intentions and insights into the manufacturing sector's health. • US Stock Prices: Considered a leading indicator reflecting investor expectations. • Consumer Confidence: Measuring consumer perceptions and influencing consumer spending. • Purchasing Managers' Confidence and Factory Directors: Offering insights into production plans and future economic trends. • Interest Rate Spread: Indicating economic expectations and influencing borrowing and investment decisions. Returning to the strategy, I leverage entry points calculated by a meticulously developed strategy incorporating leading indicators applied to the SPY chart. The achieved performance of 3496% since 1993, with 15 closed trades, significantly surpasses a buy-and-hold position yielding 1654% in performance. Notably, the maximum drawdown is 5.44%, a stark contrast to the over 50% drawdown seen in an investment in the S&P 500. Upon the indicators signaling the end of the long position, I close my SPY positions and transition to positions in physical gold ETFs. In our example, choosing the GLD ETF yields a performance of 173%, adding to our total performance. While the maximum drawdown, considering the addition of the investment in physical gold ETFs, is 17.65%, slightly higher than the drawdown on the strategy applied to the SPY, it remains impressive for such a prolonged period. Now, if we conduct the backtest since 2007: SPY : performance of 751 %, max drawdown of 4.02 % GLD : Performance of 153 % Since 2015: SPY : performance of 131 % GLD : Performance of 37 % Disclaimer: The information shared is for educational purposes only and is not financial advice. Investing involves risks, and past performance is not indicative of future results. Consult with a qualified financial advisor before making investment decisions. The author is not liable for any financial losses incurred.
AMEX:SPYEducation
by Julien_Eche
6
How to know when you are wrong and what to do nextThe feeling of ever admitting that one’s action is wrong is something many people never acknowledges, outside the works of trading, you get to see that even in a bilateral misconduct between two sovereign nations, it’s always difficult or maybe impossible for one of those countries to accept that there were at fault( being wrong), it goes on in every aspect of human endeavors, No one wants to take the blame. Now let’s take a case study into the current invasion of Russia into Ukraine, you will get to see that none of the presidents according to their speech has accepted to be wrong in their actions. Russian president Vladimor Putin while delivering his annual state state of the nation’s speech at the Gosting Duor conference center on February 21, 2023 did in his statement puts the blames on West and Ukraine for provoking conflicts while the president of Ukraine while replying to his speech did debunked the allegations of the Russian President. So the big question now is who is to be blamed? Who is Wrong? It’s the same thing that applies to trading, so many beginners and advanced traders can’t really beat their chest to tell when their analysis becomes invalid so that’s the reason am here to fix things up. What is wrong in forex? I won’t quote any dictionary or trader but I will simply put it this way that wrong in forex is a level or stage where you find PERSONALLY that the trade setup you had plan to trade or that you had traded is no more valid, useful or won’t be profitable if traded. The main keywords there are personally, profitability and traded. As far as wrong is concerned, it has to do with one accepting to the fact that a signal won’t yield profit because it had passed a particular level or structure. How to know that you are wrong I will like to drop some factors that will help you know that a setup is soar or is wrong. You have to set up parameters before entering a trade: wheather you use pending orders or market execution, you shouldn’t rush into a trade because of how attractive or how sweet looking the candles are being printed on the chart without knowing firstly where you will consider being wrong in the market. For me, since we are in a very sensitive environment while trading, then I feel identifying where your wrong zone would be is more important travel where your profit target would be. Use a well backtested strategy that you trust: Using a strategy that you trust would always enable a trader to quickly identify certain trade management levels. Let’s take a case st udy of a driver who uses one route everyday while going to and fro work at night, then unluckily for him, while returning from work at night on a faithful day, his head light malfunctions and then refuses to work, you will notice that with the aid of streetlight, you will be amazed that even under such mysterious circumstance, the driver would still manage to scale through the road successfully back home. Now you will ask how? This is because he has been using this route repeatedly and knows where there could be portholes and bombs so he would avoid those areas. Same thing applies with trading, when you trade a particular strategy day in day out, you will always at the slight of a fingertip be acquainted with where to identify your wrong level(stoploss) and you right level (take profit). Be psychologically ready to accept that you are wrong: This is one of the major problems encountered by traders because most traders even when their levels or an intending structure they acknowledged as their wrong level are taken out (those who believes in closing trades manually), they rather believe that things could get better (trades will surely reverse) so they keep holding their losses till it gets out of control. As a trader, you must be ready to boldly acknowledge that a setup you saw due to some factors is wrong and then immediately close it without second thoughts. Some technical tools and indicators to help you be aware of being wrong Thank God for the recent innovations that has been seen in the world of trading. With this, trading has been made more smart and rewarding because of there sophisticated tools and indicators that have been made available. Here are some of the tools that can help you identify when you are wrong Support and Resistance indicator by Luxalgo As we all know, trading is all about identifying key levels and structures which turns to become support and resistance levels. This indicator by Luxalgo makes it more easy to quickly identify market structures and trends on each timeframe so one could use the indicator to set a particular structure which will be used as his or her wrong level. ATR indicator You(Mindset) indicator This indicator surpasses all other technical indicators and tools because it has to do with the trader itself. Having to make use of those mentioned indicators is all dependent on you. This indicator determines the progress that you make in the industry. After Losing, What Next? There are some traders that would love to acknowledge being wrong in its dealings( setups or analysis) but their biggest question would be “After I agree that am wrong, what next should I do”? According to a book titled “Mastering trading psychology “ written collaboratively by Andrew Aziz( founder and CEO, Peak Capital Trading Founder,Bear Bull Traders) and Mike Baehr( Chief training officer , Peak Capital Trading Couch, Bear Bull Traders), one of their est technical analysis trainee who they had in mind to reserve as their full time trader after encountering a loss( wrong) had this to say and I quote “This is embarrassing. I was doing so well alternating between real and simulator this whole week. These were my results: ƒ Monday: 4 green trades out of 4 ƒ Tuesday: 3 green trades out of 5 trades ƒ Wednesday: 1 green trade out of 1 trade ƒ Thursday: 2 green trades out of 2 trades Total: 10 green trades out of a total of 12 trades: nice profits, and feeling on top of the world! And today it all fell apart in spectacular fashion. I traded like a maniac and finished with a huge loss. It was all a blur, but this is my recollection of the events in question: After two small losses 10 minutes after the open, I was a bit shook. Then on my 3rd trade, I made a hotkey mistake and doubled up my position rather than exiting. That ended in a huge loss. Shortly after that, I made another hotkey mistake and took another big hit. I was a psycho- logical mess. Rather than walking away, I went on a rampage. I started trading stocks not in play (JD, BABA, MU), and was reckless and vengeful. I said to myself, ‘Fuck it, let’s go!’ (literally out loud) and fired away at my hotkeys like there was no tomorrow. By 10:30 AM ET, I was 0 for 7. By noon, I had made 13 trades. When it was all said and done, I had made 20 trades total (not tickets, but trades). Only 2 of them turned out to be winners. Talk about lack of self-control... I violated every single rule that I had been following reli- giously all week. I stopped caring about those A+ setups and traded anything that looked marginally good. And since SPY was a roller coaster today, I got destroyed by questionable entries and ‘make-believe’ strategies. I kept trading the same stocks over and over, even after admit- ting they were not in play. I was trading like it was going out of style. I thought I could outsmart the market and get back at it. It wasn’t even about the money anymore. The losses were a foregone conclusion and had evaporated to currency heaven. The sad part about this whole tirade was that I knew I was breaking the rules while violating them—and I didn’t give a damn about it. In the moment, I turned into the Incredible Hulk and everything switched to autopi- lot mode. I smashed at my keyboard like a savage. Everything I had learned up to this point in my (short- lived) trading career was thrown out the window. I had literally unleashed an animal that I had no control of. I’ve never experienced such poor self-discipline in my normal life—ever. Today was a reminder of how fragile the trading mindset can be. All it takes is one moment—a FILG one —to send you spiraling out of control. All of these rules and checklists I had been adhering to were useless in the face of such madness. They were nothing but delicate paper walls I had erected to trick myself into believing that my emotions were in check. They came crumbling down under the slightest pressure. It was all an illusion; I was delusional. I have a lot of reflecting and contemplating to do this weekend. I might take a break from trading to rebuild my psyche. Maybe I’ll visit a monastery to cleanse myself of all these trading sins. But first I need to forgive myself. Now I’m just rambling like a fool. Thanks for reading, and remember—don’t trade like a crackhead”. I know being wrong hurts but here are the remedies to do in such circumstances. Shut down your computer sets for that day: The is a saying that “He who doesn’t bet the farm on one trade lives to trade another day. Setups as far as trading is concerned is a repeatable outcome, as far as your strategy has an edge, then your setups will always come. Move away for that day and return the next day. Have a source of happiness: It’s not just shutting down the system but what do you do after putting the system off, you must as a trader have something that brings happiness to you naturally, it could be hanging out with friends, playing soccer or having some cool time with your kids or maybe taking some yummy ice cream or whatever. Personally when bad days or wrong days usually comes around, I do play virtual games and this just has its own way of making me happy. After shutting down, make sure you locate your source of happiness immediately. Return like a baby the next day: The mind of a baby according to research is like a flowing river, it always keeps moving without thoughts of what happened previously, your mind as a trader should be like a baby. You should learn from your mistakes but don’t let it weigh you down. Resume office the next day with joy forgetting what occurred the previous day. Take trading decisions according to your strategy and let the trades play out. Conclusion The key take away from this write up is learn to adjust, learn to accept your wrongs and act accordingly to it. Digest this my write up efficiently and still check out for other other resources I will be dropping soon. Always try as much as possible to see how you can improve both yourself and your trading carrier everyday of your life. SEE YOU AT THE TOP!!
Education
by Officialpipsome
1
Gbpnzd,pretty dead...still bias to downsideStill on the downside for shorts...watching on the h1. **Find out more from my Tradingview Stream this week** *************************************************************************************** Hello there! If you like my analysis and it helped you ,do give me a thumbs ups on tradingview! 🙏 And if you would like to show further support for me, you can gift me some coins on tradingview! 😁 Thank you! Disclaimers: The analysis shared through this channel are purely for educational and entertainment purposes only. They are by no means professional advice for individual/s to enter trades for investment or trading purposes. The author/producer of these content shall not and will not be responsible for any form of financial/physical/assets losses incurred from trades executed from the derived conclusion of the individual from these content shared. Thank you, and please do your due diligence before any putting on any trades!
Short
by Shadowing_The_Big_Boys
HOW TO EARN IN TRADING WITHOUT WATCHING THE CHART.Explore the fascinating investment strategy known as Shannon's Demon Theory. Unlike technical analysis, this method focuses on steadily growing your assets without the hassle of market timing, price fluctuations, or complex charts. I'll simplify it step by step, making it accessible for anyone to embark on a stable investment journey. Meet Claude Shannon , the genius mathematician and computer scientist born on April 30, 1916, in the United States. Known as the father of information theory and digital technology, Shannon revolutionized the way we comprehend and transmit information. Thanks to him, we can effortlessly send messages and share digital memories with friends. One of Shannon's remarkable contributions is the Balanced Portfolio Investment Theory, which we'll explore today. Imagine a simple coin-tossing game with a 50% chance of getting heads or tails. Shannon discovered how to profit from these random outcomes, showing that you can double your investment by winning with heads and only lose half if tails appear. In simple terms, if you invest $1,000 and win, you'll get $1,000, but if you lose, you'll only lose $500. Shannon emphasized the importance of not investing all your assets to mitigate risks. In reality, when tossing a coin multiple times, you'll often encounter situations where you get multiple heads or tails in a row, deviating from the expected 50-50 probability. However, Shannon argued that if there's an investment product that ultimately converges to a 0% return, you should invest in it immediately. He claimed that by investing only half of your money each time in this game, regardless of short-term results, you can achieve tremendous long-term returns. As you can see, by balancing your cash and investment in a 50-50 ratio, your returns gradually trend upward over time, even in a game that ultimately converges to 0%. This strategy can lead to incredible returns compared to investing all your assets. Imagine following Shannon's Demon method, alternating wins and losses for ten games starting with $1,000. With a natural 50% win rate, our initial $1,000 becomes an impressive $1,800, resulting in an 80% return on investment. To optimize outcomes, it's crucial to exercise caution and avoid excessive trading, which incurs transaction fees. Frequent trading can result in returns similar to long-term value investing or worse. Instead, adopting an appropriate trading frequency like rebalancing once a week or once a month helps maintain consistent growth in assets. Following Shannon's Balanced Portfolio Investment Theory may result in profits in a bull market or losses during unfavorable market conditions. However, over an extended period, the returns will ultimately follow an upward trajectory, regardless of the starting point. What sets Shannon's theory apart is its advantage in providing easy and stable investing without the need for market predictions. As you gather more trading statistics, you'll witness the significant difference in returns between simple value investing and Shannon's theory. Since the abandonment of the gold standard, the financial market has experienced significant changes. Money has become an infinite asset, while financial products have turned finite. Consequently, financial markets have exhibited an upward bias over the long term. With an ample trading dataset, Shannon's approach proves more advantageous in financial markets than relying solely on chance. Between 1950 and 1986, Shannon achieved an average annual compound return of 28%, surpassing Warren Buffett's returns based on statistics. By rebalancing between one week and one month, he reported no negative returns during those 36 years. Consistency and compounding lead to substantial profits and accomplishments over time. We can learn two essential truths from Shannon's Demon investment method: 1. You don't need to force yourself to invest in all seed money with every trade. 2. Long-term statistics are more important than short-term statistics. These two principles are like timeless rules in the world of investment. If you lack a deep understanding of technical analysis and market timing or struggle with risk management despite having some market timing knowledge, consider applying this theory. Follow and Boost for your financial success ! Write your thoughts in the comment section.
by Wealthy_Stats
🥶 FACT: Most traders quit year one. Hmm, but why? 🤔You all heard the statistic, "gambling is more profitable than trading - 13 out of 100 gamblers leave the casino with gains compared to 1 out of 100 traders". Yeah yeah. Nice story. Now tell us the real story. The market is not a casino. Don't compare. What about the thousands of traders making consistent gains? It's a FACT that most traders quit their trading "hobby" or "career" within their first year of trading. But what's ALSO a FACT is most traders: Don't take profits when they see them (keep holding for more). Go too heavy on a single trade. Go all in on a single trade. HODL for glory, even when they're super green on a trade. Are too bullish/ bearish and turn a blind eye to the other bias. Are over-speculating all the time (i.e. " NASDAQ:AMD 120 tomorrow. All in calls" Trade without a chart. Have no risk management. Don't follow their own rules. Have no trading strategy. One cannot state the first "fact" without stating the other; the real reason. Otherwise, that's a shallow statistic. That's like looking at a 15 min chart and not realizing that each candle is constructed of 1,000+ mini candles. Here's a 15 min NASDAQ:AMZN chart: Here's the same chart in 15 second candles: Zooming in to the chart gives you a clearer picture. Digging deep into the "quitting" traders' psychology, you'll get the answer. Also, I wouldn't say they quit. It's possible that the energy they were putting in wasn't paying off, and they didn't want to waste their time any further. Treat your trading like a job. Be strict. You see quick +20% profit? Take it. But you believe it's going higher? Still take it. Find another trade. Baby gains add up! Most traders who got burned on NYSE:AMC NYSE:GME , kept HODLing. This is coming from someone who bought NYSE:AMC at $2.13 pre-split in 2021 and sold around $25 and $70: ACHIEVING SUPER GAINS WILL RUIN YOUR MENTALITY! You will start treating the market like a casino. You will stop appreciating the smaller 20 to 40% gainers that you can do once per day or week. You will see yourself starting to go heavy because you "believe" that "this is the next banger". To avoid all this headache, build a strategy slowly over time, use the right tools to plan your trade, find a community to trade with, use proven strategies (i.e. support/ res, supply/ demand, patterns), go light in your first 1,000 trades, and so on. Happy to help if you have any questions below. Follow for more insight and for live trade swing & day-trade ideas! Good luck trading! Trade safe and don't go all in. Baby gains add up.
CME_MINI:ES1!Education
by kingdips
1
Battle-tested through the ups and downs of Etherium historyA trading strategy that's been battle-tested through the ups and downs of Eth's history. This strategy doesn't blink in the face of market chaos or get swayed by emotions. It's a calculated game plan that knows when to step in and when to step back. Compare that to emotional investing, where fear and greed call the shots. Imagine making decisions when you're on an emotional rollercoaster—buying high in excitement and selling low in panic. That's a recipe for disaster. A backtested risk-managed strategy, though, is like a cool-headed coach that sticks to the game plan no matter what. It's about discipline, rules, and consistency. So, do you want to ride the emotional wave or play the long game with a strategy that has been consistently profitable year on year since 2016 (start of Eth - substantiated by backtest data). Average annual net profit (substantiated by the backtest) 196% (No Leverage) & 661% (3x leverage) This year (Jan 2023 to Sep/15th/2023) has already generated 45.21% (no leverage) 144.93% (3x leverage) in net profit. This strategy does Not re-paint, No-look ahead bias. and 100% forward tested. Tradingview has a default caution for strategies that use the multitimeframes data. This does not apply to this strategy as all calculations are based on closed bars. So how does it work? Postions are entered based on RSI Divergence on Higher Timeframes and confirmed by the ATR. Stop Loss and Trailing ATR-based Take Profit:The strategy incorporates a risk management mechanism with a built-in stop loss set at 8%. Additionally, it employs a trailing take profit mechanism based on ATR. This means that as the trade moves in the desired direction, the take profit level adjusts itself based on the current volatility, allowing for gains to be secured as the trend progresses. SMI-based Re-entry after Stop-out: Stochastic Momentum Index (SMI) is used as a re-entry signal if the trade is stopped out (i.e., the stop loss is triggered). This re-entry is contingent on higher timeframes and ATR still supporting the original trend, indicating that the initial stop-out may have been a false signal. Portfolio Reinvestment for Compound Growth: The strategy allocates 95% of the portfolio's capital to each trade. This approach maximizes the potential for compound growth, as a significant portion of the available capital is reinvested in each trade, provided that risk management rules are satisfied. This approach is appropriate for this strategy as strict risk management is applied and the winrate is almost 50% Accounting for Exchange Fees: Exchange fees, set at 0.1%, are factored into the strategy's calculations. This ensures that trading decisions take into account the cost of executing trades on the exchange. Avoiding Lookahead Bias and Repainting: The strategy is designed to prevent lookahead bias by making calculations based only on closed bars of price data. Lookahead bias occurs when future data is used to make past trading decisions, potentially leading to unrealistic expectations.
BITFINEX:ETHUSDEducation
by TradingAlgorithms
16 Golden Risk Management Rules for TradersTo build your portfolio. You need to learn to manage your risk. And over the last 16+ years, I’ve given you maybe five ideas on how to do it. Well, today I have 16 of the most essential Risk Management rules I could come up with in just one seating. They might not all apply to you. But most of them I believe will definitely resonate with you, your portfolio and with your risk profile. So, I have taken the time, energy and effort to jot down the 16 most powerful Risk management rules, you can apply to your trading. Starting today… Here they are… RULE #1: The 2% Rule Never risk more than 2% of your total trading capital on a single trade. This rule will help you to limit the impact of any single trade on your portfolio. RULE #2: The Probability Rule – Classify trades as high, medium, or low probability This depends on your trading strategy. If you know how to spot a: High probability trade (HPT) (good chance of winning). Medium probability trade (MPT) (lower chance of winning). Low probability trade (LPT) (very low chance of winning). I have a very simple rule. With a HPT, risk 2% of your portfolio. With a MPT, risk 1.5% of your portfolio. With a LPT, risk 1% of your portfolio Only risk according to the state of the probabilities of the trade – right? RULE #3: 20% Drawdown Rule – Halt trading at a 20% loss to avoid deeper slumps If that inevitable Drawdown kicks in. And your portfolio drops 5%, 10% and then down to 20%. Halt trading. Don’t stop! Instead, move over to paper trade your account until the conditions turn up and the system works again. And when you do start, only start risking 1% at a time until you are confident again with your strategy and with your frame of mind. This rule alone, you’ll save you from blowing your account. RULE #4: NEVER risk money you can’t afford to lose If you feel emotionally tied to your money. Or you need the money for daily living expenses or retirement savings. Don’t trade with it. You will feel like a wreck. Instead of enjoying the trading journey and process. Trading will be an emotional rollercoaster during both winning and losing streaks. RULE #5: The Time Stop-Loss Rule – Apply a time-based stop-loss rule to limit losses If a trade doesn’t reach its profit target within a specific timeframe – Close the trade. I have a 7 week time stop loss before I consider closing trades. Either you’ll bank a lower loss than you planned. Or you will bank a lower profit than planned. This prevents capital from being tied up in stagnant trades. NOTE: There are times where I might NOT implement a time stop loss. For example, when I short (sell) a trade which earns interest income each day. RULE #6: The Trailing 1:1 Rule – Use a 1:1 trailing stop-loss to protect profits Once a trade hits a 1:1 risk-reward ratio. I might trail my stop loss up to just above break even. This way I will bank a minimum gain, should the trade turn against me. My win rate will go up, for the portfolio. And emotionally it’s easier to hold a trade where you’ve secured a minimum profit. RULE #7: Half off Rule – Take half your profits early to secure gains If the trade is moving nicely in my favour. And it reaches a R:R of 1 to 1. Sometimes I’ll close half my position. I’ll then trail my stop loss to above breakeven. This way I’ll bank a decent profit. And I would have left room for the market to continue rallying to my initial take profit. This rule alone is God-sent. RULE #8: The 1% Margin Rule – Limit margin use to 1% of your account to control risk For those who are worried about HIGH leveraged instruments. This one is for you. The rule is, if you’re trading on margin (leverage). Never risk more than 1% of your trading account on a single trade. This way: You’ll have majority of your portfolio to trade with. You’ll have less money exposed to risk in any one trade. You’ll be able to track your risk better, for if the market gaps. RULE #9: The Intraday Stop Rule – Set an intraday rule to know when to stop trading for the day If you take on an intraday trade i.e. Smart Money Concepts trading a Forex Pair or index. Set a daily loss limit or a maximum number of losses. If you reach this amount, stop trading for the day to prevent your portfolio from spiralling into more losses. Come back the next day, to slay. RULE #10: Forex NEWS Rule – Stay off the market during high-impact news events This happens during high-volatile events. And this applies with mainly Forex! If there are any high impact news events such as major economic announcements. It can significantly increase trading risks. When these days come, I don’t take any Forex trades. Here’s are the main High-Impact-News events: CPI (Consumer Price Index) news report days CPI measures the changes in prices of a basket of goods and services over time as a measure of inflation. NFP (Non Farm Payrolls) A monthly report released (on the 1st Friday of the month) by the US Department of Labor. It shows the number of jobs added or lost in the non farm sector. This is a measure of the health of the US economy. PPI (Producer Price Index) A measure of the average change over time in the prices that domestic producers receive for their goods and services. This is another measure of inflation and economic growth. First with CPI and then with PPI. FOMC (Federal Open Market Committee) When the FOMC the US Federal Reserve meets to set monetary policy, (decision on interest rates and the money supply). RULE #11: The Risk-Reward Rule – Aim for a risk-reward ratio of at least 1:1.5 If you do NOT see a trade with a Risk to Reward of at least 1:1.5. It is NOT a good idea to trade. Anything less than 1:1.5, and your risk will be similar to what you are looking to gain. And remember, you still need to cover costs, brokerages and daily interest charges. It’s not worth buying and selling trades with a R:R of 1:1.5. I prefer to trade with risk to rewards of 1:2 instead. That way, even with a 40% win rate, I’ll be profitable. RULE #12: The 20% Golden Rule – Never expose your portfolio to more than 20% Trading is a risky biscuit. So, even though you have money in your account. Doesn’t mean you should have all of your money in different markets. I like to limit my capital to a maximum of 20% of my total investment portfolio. Remember, you are gearing up when you trade. While leverage can magnify gains, it can also magnify losses. It’s crucial to know how to use leverage effectively. Also, it’s our job to and avoid taking on more debt than we can handle. Because when you trade on margin (leverage), you’re exposing yourself to MORE than what you deposit. So protect most of the capital at a time in your portfolio. RULE #13: The Hedgehog Rule – Don’t be too long or too short – Hedge your positions I like to say hedge your positions. Don’t HOG on too many longs. Or too many shorts. When a main index is showing strong signs of moving in a certain direction (up or down). You may feel the absolute need to buy as many stocks as possible, to ride the trend. However, you need to remember the market can change the trend direction just as fast. And your winning positions can instantly turn to losers. So, when you are holding a high number of longs, make sure you trade a couple of shorts. When you are holding a large number of shorts, make sure you trade a few longs. This way you can hedge your positions in case the market does make a turnaround. Effective hedging strategies can protect your portfolio from market volatility. RULE #14: Multi-Account Rule – Use different accounts for different markets Every market acts differently. Forex works differently to stocks. So, I like to have two different accounts for each. I like to track and trade Forex for one account and stocks for another. Having too many eggs in one basket, will skew the portfolio and your track record – due to the sporadic and different movements with each set of markets. So, diversify your portfolios across different asset classes and markets to manage risk. RULE #15: Check Up Rule – Regularly monitor your portfolio’s performance The markets are always changing including: Algorithm New volume being injected in the markets Dynamics of demand and supply This causes a shift in different market environments and echoes into the financial world. Therefore, you need to regularly review your portfolio. This will help you to realign it with your goals, statistics, drawdown & reward management as well as your risk tolerance and goals. RULE #16: Correlation Rule – Understand and monitor the correlation between assets Markets are generally positively correlated. This means, they tend to move in the same direction. If you see a large bank company going up in price and you go long, the chances are good that other banking companies are also going up in price (within the main stock market). When you understand correlation between stocks, forex, indices, commodities etc… You can find more high probability trades which will better diversify your portfolio, reduce your risk and you’ll be exposed to other market opportunities in similar markets. Told you it will be worth it! Save this, print it out and keep it by you. These are the most important money management rules I believe are necessary to know as a trader. Below is the summary of them again, with the subheading. If you found this helpful, please send let me know in the comments. 16 Most NB* Money Management Rules RULE #1: The 2% Rule – Never risk more than 2% of your trading capital RULE #2: The Probability Rule – Classify trades as high, medium, or low probability RULE #3: 20% Drawdown Rule – Halt trading at a 20% loss to avoid deeper slumps RULE #4: NEVER risk money you can’t afford RULE #5: The Time Stop-Loss Rule – Apply a time-based stop-loss rule to limit losses RULE #6: The Trailing 1:1 Rule – Use a 1:1 trailing stop-loss to protect profits RULE #7: Half off Rule – Take half your profits early to secure gains RULE #8: The 1% Margin Rule – Limit margin use to 1% of your account to control risk RULE #9: The Intraday Stop Rule – Set an intraday rule to know when to stop trading for the day RULE #10: Forex NEWS Rule – Stay off the market during high-impact news events RULE #11: The Risk-Reward Rule – Aim for a risk-reward ratio of at least 1:1.5 RULE #12: The 20% Golden Rule – Never expose your portfolio to more than 20% RULE #13: The Hedgehog Rule – Don’t be too long or too short -Hedge your positions RULE #14: Multi-account Rule – Use different accounts for different markets RULE #15: Check Up Rule – Regularly monitor your portfolio’s performance RULE #16: Correlation Rule – Understand and monitor the correlation between assets
JSE:J200Education
by Timonrosso
MASTERING RISK MANAGEMENT IN FOREX📈🛑 Mastering Risk Management in Forex Trading 🛑📈 (1/6) Hey fellow traders! Let's talk about a critical aspect of successful #ForexTrading - Risk Management. It's the compass that guides us through the unpredictable market waters. Here are some key principles to keep in mind: (2/6) Rule #1: Set Your Risk Tolerance 📊💰. Determine the maximum % of your trading capital you're willing to risk on any single trade. This shields you from overexposure and keeps emotions in check, crucial for long-term success. #RiskManagement #ForexTips (3/6) Rule #2: Use Stop Loss Orders 🛑📉. Always, always, ALWAYS set stop-loss orders for your trades. This helps limit potential losses and prevents your account from taking a big hit if the market goes against you. #StopLoss #ForexTrading (4/6) Rule #3: Diversify Your Trades 🌐📊. Don't put all your eggs in one basket. Distribute your trades across different currency pairs and strategies. This reduces the impact of a single bad trade on your overall portfolio. #Diversification #ForexRisk (5/6) Rule #4: Understand Position Sizing ⚖️📈. Calculate the appropriate position size for each trade based on your risk tolerance and the distance to your stop loss. This keeps your risk consistent and prevents you from risking too much on one trade. #PositionSizing (6/6) Rule #5: Stay Informed & Adapt 📚🔄. The Forex market is dynamic. Keep learning, stay updated on market trends, and be ready to adapt your strategies. Even with solid risk management, remember that losses are part of the game. Stay disciplined and stay patient. #ForexStrategy Remember, successful Forex trading isn't about avoiding losses entirely, but rather managing them smartly. Keep these risk management principles in mind to pave the way for more consistent and sustainable trading success. Happy trading! 📊💹 #ForexSuccess #RiskAwareness
Education
by AMBAFX