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TotalCrypto Market Pullback: What's Next for the Bull Run?Hello, crypto enthusiasts! How are you today? I hope you're doing well and not letting this price action ruin your day. Times like these can be tough if you're unprepared or trading with emotions instead of following a proper plan or system. This chart represents the **Total Market Cap** of cryptocurrencies, and as we can clearly see, it's heading down. Today marks the second consecutive day of downside price action, accompanied by increased volume. Yesterday was the ideal exit point for the long trade that started after the U.S. elections. The signal was simple: **price pierced the PSAR**, indicating that the trade should be closed. While this index doesn’t represent an actual tradable position, it reflects the system's logic. Since this index aggregates the price action of all crypto assets, its decline suggests that most crypto assets are also experiencing downside pressure. While exceptions exist, this is the general trend. Technical Analysis with Oscillators - **RSI**: The Relative Strength Index has dropped from overbought levels (above 70) and is now at **~52**, signaling weakening bullish momentum. This suggests a potential continuation of the downtrend. - **MACD**: The MACD line is trending down and crossing below the signal line, which indicates bearish momentum. This crossover often signals a further downside. - **OBV**: The On-Balance Volume is showing a decline, confirming that selling pressure is dominating the market, supporting the bearish move. What’s next? - **First Target**: The 2021 top, marked by the black line, where we may see a reaction. - **Second Target**: The **0.236 Fibonacci retracement level**, which provides another possible support area. Of course, nothing is ever certain in trading. Tomorrow, the market could rally and ignore all current signals, but for now, the price appears to be trending downward. A few reminders: - In crypto, things rarely go the way we want. - Stay prepared for every scenario and keep your portfolio ready to re-enter the market. - Avoid letting hope and fear dictate your decisions—they won’t lead to profit. I'll keep monitoring the markets and share my thoughts as they develop. If you found this analysis useful, feel free to like, share, or comment below. And as always: **stay safe and keep calm!**
CRYPTOCAP:TOTAL
by vagada
🔜RULE FOLLOWING CHALLENGE, join to improve your trading 💪Did you know that most beginner traders can't follow their rules for 7 days in a row? Unfortunately, they start overtrading or changing the rules of the system, entering random trades, overrisk, etc. I've been there many many times myself, but then slowly started focusing on this part and made my first 7, then 10 days of rules following, broke with another tilt, started again, reached 17, 30 days, and failed again. Each time it became better and better, and now I'm on my way to 50 days of rule-following. I developed a routine and system that allows me to keep doing it, day after day. It includes mental technics, as well as simple EAs for Metatrader to help with over-risking and overtrading issues. If you want to step out of your comfort zone and improve your trading, join this 7-day rule-following challenge by leaving a comment below. It will be hosted here on TradingView, probably using the Stream feature, but I'll let you know later when we will gather up.
OANDA:XAUUSDEducation
by Yelli_trades
3
10 Rules for Successful Trading1. Study. Learn how financial markets work. Years ago I took Khan Academy's free courses on the financial markets. It really helped reinforce what I already knew, taught me new stuff and solidified my confidence in understanding how the financial markets work. Here's the link: www.khanacademy.org Learn the basics of Technical Analysis. For this part I read "Technical Analysis of the Financial Markets" by John Murphy. I read the whole book not once, but twice, and I constantly refer to it to refresh my memory. You can also get the supplemental workbook to do exercises and test your proficiency. Link: www.amazon.com Learn the basics of Macroeconomics and Microeconomics. Khan Academy also provides excellent free courses in this subject area with quizzes and tests to confirm your proficiency. This part is important for understanding the big picture. Link: www.khanacademy.org 2. Develop a trading plan. Write out your trading plan step-by-step and follow it every time. If you don't do this, you won't be consistently profitable in the long term. Never trade on a whim, even if you fear missing out on a big move. I would rather miss out on a big move up because I took the time to develop a plan than jump in without a plan and experience a big move down. Here's a good resource for how to develop a trading plan: www.ig.com 3. Find a trading mentor. Find someone who is more experienced than you and learn from them. I was able to connect with a very experienced trader here on Trading View with whom I share watchlists and get trade ideas from. We chat regularly and confirm or critique each other's ideas. Having a trading mentor has been invaluable to my trading. It's important to find someone who is trustworthy and competent, and willing to critique your trading ideas. Often we as traders only see what we want to see in the chart and miss or ignore obvious clues that go against our theory. For example, what one person sees as a triple bottom (bullish) another person may see as a bear flag (bearish). Another way to learn from other traders is to subscribe to traders who post high-quality content on Youtube. I subscribe to a few great trading Youtubers who give me all kinds of insights. My trading has definitely improved because of learning from other traders. With this said, don't go overboard. Find just a couple of good people to follow. You don't want to follow dozens and dozens of traders as you will suffer from information overload. 4. Manage risk. Preserving your capital is necessary to stay in the game, so you need to manage risk. No matter how good your charting may be, some of your trades will go against you and will need to get out. That's why I always use stop losses and get out of a trade at a certain predetermined level. Stop losses always limit loss, but do not necessary limit profit. This in turn allows you to only be right half of the time (or in some cases even less) and still be profitable. The topic of stop losses actually warrants it own discussion. In the future, I will be writing a post on how to place your stop losses. Other risk management strategies include: limiting the amount of margin you use, only risking a certain percentage of your portfolio on any given trade, and diversifying your portfolio. A key difference between trading and investing is that investing does not (typically) employ stop losses. Long-term investors typically manage risk by using diversification. 5. Be humble. Check your ego at the door. It does not matter if you're right. The only thing that matters is your money. Never stay in a trade because you don't want to admit that you were wrong. I've seen plenty of charts that looked amazing and then a black swan event happens. Perhaps one of the best ways to think about it is to consider this paraphrased statement from the legendary trader Larry Williams: "Regardless of past performance, never forget that every new trade you make only has a 50% chance of success." I have seen some Trading View users who are completely consumed by pride and post their win rates and super high-profit percentages. I steer clear of these traders because they fail one major rule of good trading: staying humble. Past performance is not a guarantee of future performance. 6. Keep a journal. This one is very important. Whenever I learn something new about trading, I write it down in a trading notebook. Whenever I make a mistake, I write down what went wrong and what I learned from the mistake. My trading notebook contains my strategies both for bear markets and bull markets, contains the steps for my daily routine, contains my screener criteria, and contains a listing of all the important things I've picked up over the years of trading. 7. Track your assets. Employ some kind of a method for tracking your performance. Even though it's time-consuming, I use a spreadsheet. 8. Avoid speculation. Never trade based on speculation or emotion. Never buy or sell an asset because of fear (whether fear of a market crash or fear of missing out on a huge rally). Never enter into a position simply because you like the company, and similarly do not avoid selling your position because you love the company too much. The most successful traders are rigorously unemotional and unattached. In my opinion, I define anything that does not involve an analysis of data as speculation. I have also come to learn that by the time everyone is talking about something, it is usually at peak mania and will not go up further. For example, when your co-worker or close friend is talking about how much they made from Bitcoin, it's probably time to sell. Similarly, if you see everyone on social media posting photos of how much it costs to fill up their car with gas, it probably means we're at the peak of gas prices. 9. Learn how to use your charting platform. One of the best things I ever did to master my charting was to spend a few weeks doing nothing but just learning all the features on Trading View. When I first signed up for Trading View I was overwhelmed by all the tools, indicators, strategies, and ideas on here. So I knew I had to take a timeout from trading and just learn the tools first. For several weeks rather than focus on trading, I focused on learning Trading View. I favorited indicators that work best for my strategy, I created layouts and explored every nook and cranny on the platform. Trading View is incredibly powerful because it provides access to so much data. Having access to data is power. By taking the time to learn how to use all of its tools, I was able master the financial markets to a degree that I can now make predictions just good as those high-paid Wall Street analysts. Your subscription will pay for itself through the profits you make. 10. "Look first. Then leap." Always chart out your entry point, stop loss, and profit target before entering a trade. Ask yourself: How much risk am I willing to take for how much profit? Here's a great resource from Investopedia that inspired this post: www.investopedia.com This list of good trading rules is nowhere near comprehensive, so please leave a comment below to share your rules and tips for successful trading!
AMEX:SPYEducation
by SpyMasterTrades
132
The nuances of crypto indexingThe following is a summary of an episode of WisdomTree’s Crypto Clarified podcast, focused on the topic of crypto. The discussion is between Benjamin Dean, Director of Digital Assets; Pierre Debru , Head of Quantitative Research & Multi Asset Solutions, Europe; and Blake Heimann , Senior Associate, Quantitative Research. Summary: Indexing is a way to track the performance of a group of assets in a very standardised way. It started in the late 19th century with the Dow Jones Industrial Index and has evolved over time into products like index funds and exchange-traded funds (ETFs). Crypto indexing has become possible recently due to the increase in investible assets, on chain data availability, and accessibility. People buy crypto indices for benchmarking purposes and diversification. When creating a crypto index, people need to consider both quantitative metrics, such as market capitalisation, and qualitative risks, such as use case and regulatory risk. In the near future, we may see more bespoke metrics being used to create indices that can potentially outperform the market. For the benefit of those who aren't into the more technical parts of finance could you explain indexing: What is it? When did it start? Why do people do it? PD: In one sentence, indexing is a way to track the performance of a group of assets in a very standardised way. The idea is to use simple, transparent, systematic rules that can be applied consistently over time to create a portfolio. Indexing is a very old thing. It started in the late 19th century in equities with the Dow Jones Industrial Index. It was created to benchmark the performance of equities and as a way for investors to be able to compare their own performance with the performance of the market. The ‘index’ is very often called ‘the market’ because it's meant to represent the performance of all the equities or all the bonds etc. From that, it has evolved very quickly. Eventually some people began to say, "Oh, I would like to invest in that market." This led to products that allow people to invest in the market without taking active decisions around which stock or bond you like. In the 1970s, you could do it with an index fund that would track the S&P 500, for example. Then, in the 1990s, exchange-traded funds (ETFs) were created. Now, we see digital tokens that allow people to track an index. Finally, the last evolution of indexing is not to track the market, but to try to beat the market. So, when we start talking about factor investing, we're talking about basically systematic quant investing where you apply systematic rules to try to beat the market. This is still called an index but it's a different animal. It is more an investment strategy wrapped inside something which is systematic (that is, rule-based) and, therefore, is called an index, but it's not about representing the market, it is about beating the market. What has changed in the last few years to make crypto indexing possible? BH: I think one of the big things is that, historically, Bitcoin really dominated the crypto market. Then in 2017 you have ETH and some of the ICO (initial coin offering) craze taking place. So you expand the overall universe in terms of assets that could be invested in. Now there's actually multiple investible assets out there that are worth tracking. You also have the accessibility of on-chain data. For example, if you're going to do a market cap-weighted type of index, very much like an S&P 500 of crypto, you need to have accurate pricing data and accurate supply data to make sure you can calculate a true market cap. Thinking about those questions, you want to make sure, especially in an unregulated type of space, that the pricing you're using is not coming from any type of wash trading or any other type of activity that wouldn't be deemed as true volume and not necessarily giving you a fair price. PD: If I may add also, to give a numerical notion of what an index is supposed to cover: in the equity world, you would expect a large cap index to cover probably 95% of the total market cap of the country or the universe we're trying to cover. If you include small cap, you would probably want to include 99% of the total market cap of the space. And so Blake was saying 95% of the space 5-6 years ago, it's probably Bitcoin or Bitcoin Plus, but this is not the case anymore. When you're looking at 95%, maybe 99% right now, you are looking at hundreds of coins or tokens. This is where the need for indexing comes in. You can't just say anymore, "Oh, I invested in coin A, and it beats Bitcoin, or it didn't beat Bitcoin." This is not the benchmark anymore. So the question is: what do I compare myself to? I bought this coin six months ago. Was it a good or bad investment decision? You don't know if you don't know what 99% of the space has done, and that's what an index does. Given your explanation of why indexing exists, why would someone want to buy a crypto index in particular? Why not just buy Bitcoin alone? PD: First, you need a benchmark. You need to know what the market is doing to really be able to compare. That's what the benchmark gives you, and that's why in crypto it's important to start having this S&P 500 equivalent. The second thing that I think will come very soon is investing in the market. Investors are going to want to have diversification to multiple tokens, multiple use case, multiple sectors etc. They are going to want to start investing in a diversified way, not taking single coin risk, but rather taking basket risk. That's where the index is going to come in. When you think about trying to do crypto indexing, what are some of the pitfalls that people can fall into? BH: We’ve already talked a bit about data availability and quality assurance. There are issues with the market capitalisation metric. Firstly, with determining an accurate price; then, on the other end of that calculation, you need an accurate circulating supply. I specifically refer to circulating supply because a significant portion of many of these tokens are locked up in different founder wallets, other types of less liquid type of wallets. So in that sense, they're not circulating. Another example, if we think about an index and you're trying to map 99% of the universe, the challenge with that is looking backwards and saying, "How do we actually have a mapping of all the dead coins from, say, 2017?" A lot of the data providers, a lot of places where you'd go to try to pull this data, aren't even out there. So, in that sense, we could back test the market cap-weighted type of index for the last five years, but it's going to have this survivorship bias because certain dead coins that blew up during the ICO craze, now trading essentially at zero, are going to be excluded from your 99%. If you don't have that today because of data availability issues, you're essentially going to have an inaccurate back test. So there's a lot of small details that need to be thought about in this process on top of just the technical expertise that comes in with just getting all the data across the board, bringing it together, and making sure it's clean and ready to use. We've talked about a few quantitative metrics. What are some of the qualitative risks that one might think about when putting together an index? PD: Risk management exists in equity indices or bond indices. If you think about the S&P 500, it is mostly rule-based, but there is a risk management layer which is basically a committee of people. This approach can also be applied to crypto indexing. You have to ask yourself, for example, if a token is currently under investigation by some leading regulators should it sit out of the benchmark for a while until this is resolved? If you have a token that has issues in terms of money laundering or these type of things, should it sit out of the index until this it resolved? Here, there is a balance around representativeness. Of course, if you keep some coins out, you are slightly less representative of the market. But there is also a risk if you put some coins that appear more risky because they have issues, then there is more likelihood that you have more volatility in your index. There's a balance to find and there is no perfect answer. BH: I think when you're thinking about things qualitatively, specifically looking at their use case and then being able to say, "Okay, these use cases are generally good to go." However, anything (for instance) that might be generally considered a ‘privacy token’ in terms of overall sector may be a red flag that says, "Hey, this automatically just shows up on a list that we have to review in detail to know that this is not something that's going to pose an additional risk, a regulatory risk, in the space." Where do you see crypto indexing evolving in the near future? PD: Say we get to the point sometime in the near future where, whether it's defined by market cap or not, there's that benchmark in place. Then, other metrics could be quite useful to lean away from that benchmark, and lead to, in a sense, alpha chasing. If we're defining that original benchmark as beta then we could add something like TVL (total value locked), on a smart contract platform. The amount of assets that are locked into these different smart contracts could be indicative of the actual usage of that layer one. You could also look at the overall number of active wallets or the number of transactions taking place on a network. You could pull some very bespoke metrics around a specific use case, call it a sub-sector. If it's a lending protocol, for example, you could actually look into some of the metrics around that specific activity to determine if this is something that has longevity, or is maybe potentially meeting critical mass. Take Uniswap, for example. The overall volume on Uniswap as a decentralised exchange surpassed Coinbase in this last year. Certain metrics could drive an investment process that could be quite interesting and lead to potential outperformance versus a more ‘vanilla’ benchmark that is just giving you that beta type of exposure in the market. BH: Using a taxonomy, like WisdomTree’s Digital Assets Taxonomy, you can segment the crypto space. That means, if you were thinking about decentralised finance (DeFi), you could say, "Oh, I'd really like a DeFi exposure because I really think that's a strong use case for crypto." Now you could actually have another sub-indice that tracks that and you could invest in that. Moving back to quant, to take it one more step further, you pull some of those interesting metrics to determine which DeFi protocols and DeFi tokens are actually included in that index or that portfolio and things could get really quite interesting, and you really start to see the space become very sophisticated very quickly in terms of figuring out how to allocate within that crypto allocation in a broader portfolio. PD: That's interesting because that's exactly how most investors behave. There are always the single-stock pickers, but most people are going to take a benchmark and then they're going to tweak it towards what they like. They say, "I like US equities, so I'll buy US equities instead of world equities," for example. They might also say, "I really believe in energy for 2022, so I'll buy S&P 500 energy." For crypto, you can say, "What I really believe in is the developers. It's about the strengths of the development team. So I'm going to buy my index, but inside the index I'm going to buy more of whichever coin has the most developers or whichever coins have the most human capital because they have the strongest developers that have worked on the best coin before." But these kinds of ideas are a lot easier to implement if you can start from the base, and the base is a benchmark. If you have to start from, "Here are 10,000 coins," it is very, very difficult. If you start from, "Here is the S&P 500 of crypto," then you can start tweaking. And that's why I think there's potential value for this benchmark to exist.
NASDAQ:NCI
by aneekaguptaWTE
10 RULES that every WINNING TRADER KNOW and applyHey everyone ! Aside from my degree in corporate finance from the Columbia Univesity in New York City, i was honored to participate in trading classes of the New York institute of Finance, and also talking with several really famous traders. Here are 10 rules that I have been able to put together during my learning path and that serves me on a daily basis. I wanted to share it with you. Don't forget to give a thumbs up! 1. Always be disciplined - Follow your plan and rules - Do not be swayed by your emotions to act otherwise - Do not create excuses to break the rules – this time is NOT different! 2. Plan the trade, trade the pla n - Always cut your losses according to plan - Always let your profits run according to plan - Separate your planning from your execution 3. Expect losses - Losses are part of trading – accept them. - Do not take a trade unless you are willing to accept the risk (possibility of loss) - Accept that you will lose money on some trades 4. Manage your emotions - Always analyze objectively - Clear all positions to have a neutral frame of mind - Do not act based on greed or fear 5. Focus on trading well - The goal of a trader is to make the best trades - Money will naturally follow - If you focus on money, emotions will get in the way and you will not be able to make the best trades. 6. Do not overtrade - Be patient. Do not rush into a trade. - Do not trade when there are no good setups - Do not try to be in the market all the time 7. Trade what you see, not what you think - Don’t concern yourself with why things are happening - Markets are never wrong, opinions are 8. The trend is your friend - Don’t enter just because it looks “overbought” or “oversold” - Don’t try to catch a falling knife - The easiest money is made trading with the trend 9. Do not repeat your mistakes - Keep good records of your trades and thought process - Analyze your mistakes, then move on - Do not make the same mistake again - Continuously improve yourself 10. Have realistic expectations - Do not try to make incredible returns overnight - Aim for small consistent returns over a large period of time (steady and continual growth) - Do not expect to become an expert overnight - Trading takes time to build experience
BITSTAMP:BTCUSDEducation
by Thomas_Zito
1
⚠️Don't let FOMO ruin your trading⚠️FOMO, or "fear of missing out," is a common emotion that can lead to impulsive and potentially reckless trading decisions. ⚠️ ✅Here are five key rules to help you respect and manage FOMO in your trading: 🔵 Use risk management techniques. Proper risk management is critical to successful trading. This includes setting stop-loss orders to limit potential losses and using position sizing strategies to ensure that you don't risk more than you can afford to lose. 🔵 Seek out education and guidance. If you're new to trading or struggling to manage FOMO, it can be helpful to seek out educational resources or seek guidance from an experienced trader or financial advisor. By learning more about the markets and trading strategies, you can increase your knowledge and confidence, which can help you make more informed and rational trading decisions. 🔵 Take breaks and step away from the markets. It can be easy to get caught up in the excitement of trading, but taking breaks and stepping away from the markets can help you clear your head and make more rational decisions. 🔵 Don't let emotions drive your trades. FOMO can lead to emotional trading, which is often not based on sound analysis or strategy. It's important to stay disciplined and base your trades on objective criteria rather than letting emotions drive your decisions. 🔵 Set clear trading goals and stick to your trading plan. Having a clear understanding of what you hope to achieve with your trades and a plan to achieve those goals can help you avoid making impulsive decisions driven by FOMO. 👤 @Galerdev 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate my work , Please like, comment and follow ❤️
Education
by TradeConf
Emotion-Free Trading After a Loss✅1. Don't panic: Losing a trade can be frustrating, but it's important to remain calm and not make any hasty decisions. Remember that investing in stocks and cryptocurrency carries inherent risks, and losing a trade is a normal part of the process. 2. Don't hold onto a losing position: If a trade is not going in your favor, it's generally a good idea to cut your losses and sell the position. Holding onto a losing position in the hope that it will turn around can lead to even greater losses. 3. Don't chase losses: Trying to recover losses by making risky trades or investing more money is a common mistake made by investors. This approach is often referred to as "revenge trading," and it can lead to even greater losses. 4. Don't give up: Losing a trade can be a setback, but it's important to stay the course and continue to invest in a disciplined and strategic way. Don't let a losing trade discourage you from reaching your long-term investment goals. 5. Don't ignore risk management strategies: It's important to have a plan in place to manage risk, especially when losing a trade. This could include setting stop-loss orders, diversifying your portfolio, or using other risk management techniques. Ignoring risk management strategies can lead to even greater losses. 🚀For updates on the latest developments in psychology, market trends, and important news, follow our page. Stay informed and stay ahead of the game with our regular updates.
Education
by TradeConf
🟦 William O'Neil Rule – WALL OF BLUE**Publishing again because it got taken down by Mods** While this has pulled back recently - it reminds me of a lesson from the great trader William O'Neil and his lesson for the "WALL OF BLUE" 🟦 Not many know this rule, so hope you like it! Wall of blue rule states that when you have 4+ weeks of blue volume bars (blue volume bars = volume when the week close up, hence up weeks), then this is a buy signal of itself. In the case of $SMCI we also have above average volume - which is additional strength and confirmation. This is a signal that the stock is under heavy accumulation from institutions and hence why it made +83% advancement. Now it is pulling back and it is extended from any base - so I would not touch it here, but it is a good example to illustrate the rule
NASDAQ:SMCIEducation
by TintinTrading
2
🖐 5 Rules For Successful Trading!Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. Trading is simple, but not easy. Traders have difficulty succeeding simply because they are unable to follow clear rules over extended periods of time. So what are the rules that every trader should follow? 💸 1- Only invest what you Can Afford to Lose. Only invest money you can afford to lose, never ever borrow money or take a loan from the bank to invest. Because if you do, you will get emotional and make irrational mistakes. ⚔️ 2- 1% Risk per Trade. We only risk a small portion of our account per trade. We enter with 1% risk per trade (2% max). We enter with a fixed risk per trade, not with a fixed stop loss in pips, nor with a fixed lot size. Remember: All Trades Have To Have The Same Weight / Effect On Our Account! 📉 3- Three Confluences Trades. (Technical Edge) Trading is nothing but a game probability. Moreover, we consider ourselves risk managers not only traders, as the only thing we have control over is "risk". The market can go anywhere. To be on the winning side, we need to have an edge over the market. One way to put the odds in our favor is by only entering trades when we have at least three confluences/clues, three things telling us to buy or sell lined-up together. One confluence may be random. For example: Only enter when you have a pattern, support, and divergence. And your rules have to be objective following a well-defined / back-tested trading plan. 📕 4- Positive RRR - Risk Reward Ratio. (Risk Management Edge) Our second edge is going to be through risk and money management by entering with a positive risk-reward ratio. That’s exactly why we enter with a ½ RRR (or higher), which means we always target at least double our stop loss. This way even with a 50% win rate, we are still profitable. Remember: It is not about how many trades you win, what matters is how much you win when you are right, and how much you lose when you are wrong. 🧘‍♂️ 5- Emotional stability. In the trading world, emotions are considered the enemy of traders. Knowing how to control emotions while trading can prove to be the difference between success and failure. When getting into a bad trade, the trader who can manage his psychology well will be able to minimize risk, while the trader who is emotional may make the situation worse. Remember: You Are Getting Paid; To Wait! Moreover, if you are not feeling well, don't trade. Remember: You don't have to catch every trade, and you don't have to trade every week. In fact, our 5 rules are all connected in a way or another. If you invest money you can’t afford to lose or enter with 10% risk per trade, chances are that you will get emotional and not follow your trading plan objectively by closing your trades before reaching 2R or even entering trades that are not according to your strategy. In parallel, even if you invest money you can afford to lose and risk 1% per trade, you won’t be consistently profitable if you don’t have a well-defined strategy that gives you an edge over the market technically or through risk management. In brief, stay away from trading if you don’t have these 5 rules. Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
Education
by TheSignalyst
29
🏆 10 Trading Rules For Success 🏆🏆 Accept the losses . Losses are inherent in trading. There is no earning trader who will not suffer a loss from time to time. In the case of trading, a mistake involves a loss of capital, which can be painful at the very beginning of learning, but as you develop your skills and expand your range of competencies, you begin to understand that it is impossible to successfully win against the market without occasionally incurring a cost for this struggle in the form of losing trades. 🏆 Don't Risk Money You Can't Lose . Playing the financial market involves constant risk in which the most at risk is our capital which we trade. We can't afford to bet with money we can't lose, by which I mean money meant for living, savings, family money, selling usable items to fund an account with a broker. There is always the temptation that if only we had a bigger trading account we would play better and take less risk, which is of course nonsense. No matter how much money we trade with, whether it's hundreds, thousands or even hundreds of thousands we will always be tempted to play with even more money to make profits even bigger, unfortunately, most likely the only thing that increases is the loss on the trading account. Each of us must find the right amount of money for him, I would suggest at the very beginning to operate with money that we are able to recharge the broker in a few weeks, for some it will be 10% and for some 30% of monthly income. 🏆 Treat Trading Like a Business . Trading is such a business venture of ours, starting with the capital we have to put up to get into it, then developing a strategy that will bring us profits, after protecting ourselves from losses, including costs such as (cost of opening a trade, swap, spread), taxes. We can't treat trading as a hobby or as a job from 8-8. Profits on the financial market are not so predictable that we can say with a clear conscience how much we'll earn next month, and what's more, it may turn out that instead of earning, we'll lose. As for the fact that trading should not be considered a hobby, I can only add that trading requires much more focus and commitment than typical hobby activities, inherent in it is the theme of making and losing money, which for most is a very emotional subject. 🏆 Control Your Emotions . Control of emotions is a key issue in any field if we talk about the master level, from many interviews of professionals in their fields we can repeatedly hear about how control of emotions is of great importance in their field especially on the results they get. As trading is a competitive field. Someone wins someone loses. As our earned money is at stake, I don't need to stress that this doesn't make the whole thing any easier. The most important thing is to realize that emotions will occur and instead of suppressing this fact we should accept it. In order to control emotions, the most important element is to realize that we are under its influence. Because taking action under the influence of some extreme emotions is simply a mistake and it is best in such a case to step away from trading for a day and sometimes even a week to simply cool down. One of the best ways to reset your emotions is to sleep, take a nap and even meditate, and for all those who think that meditation is not for them, but only for tree huggers, I would like to introduce you to one of the famous personalities from the world of investment, which is Ray Dalio, who since 1985 has served as co-head investment director of the world's largest hedge fund Bridgewater Associates. Whose fortune amounts to $19.1 billion and has repeatedly mentioned that transcedental meditation was the best investment he made in his life. 🏆 Manage risk . Such a broad topic that I will prepare a separate post for it, in short, we need to determine what % of capital we can devote to one concluded transaction, in my opinion we should not risk more than 1 to 2% of capital per position. In my opinion, we should not risk more than 1 to 2% of capital per position. We must also take into account the possibility of correlation, because what does it matter if we open 10 transactions with a rate of 2% if all of them are concluded on correlated markets such as forex or stocks. Then our risk is no longer 2%, but in the worst case 20%. 🏆 Stay disciplined . Learning to trade should be perceived more as a marathon rather than a sprint, on our way we will meet many disappointments and failures that are inherent in learning any field, we must not give up, we must remain disciplined and focused on the final result, in trading there is no room for distraction and making decisions on the spur of the moment. Markets are not forgiving of any mistakes or distractions, sometimes one moment of absentmindedness can affect the state of our portfolio. As traders, we must remain in a constant circle of learning and acquiring new skills. We will not achieve any results if we approach trading once a quarter. Taking up trading should be considered in the category of a future source of income about which we want to learn as much as possible. 🏆 Know your strategy . We need to know and understand perfectly the reasons and the way to trade, we need to be 100% aware of when to take trades and when we are remote from the market. We need to know what risks we can take on a given taransaction when we close it and what we will have to do (if). 🏆 Forget The Holy Grail . Just forget about it, if you are still looking for an idle indicator that will only give you profitable signals with your only right parameters, forget about success. Trading is something much more broad and deep than just the intersection of two moving averages. There are so many factors at work on traders' decisions that affect price movement that we can't even comprehend with our brains. I'm not saying here that it's not worth using indicators or fundamental data. I mean only not to base your decisions on them and not to get stuck in a vicious circle of testing a new strategy every week. 🏆 Trend is Your Friend . I'm not going to elaborate here. You simply have a higher probability of success playing with the trend and that's it. 🏆 Never stop learning . Never but never stop learning, read everything that falls into your hands and you find valuable at any given time. Watch, listen read about trading meet other traders ask questions and never stop learning. Remember follow my profile fits perfectly into the circle of continuous learning :D 🏆 Like the post? Follow my profile for more!
Education
by InvestMate
5
4 Rules every successful trader should follow📈😎1. Trade according to the system. 2. Keep statistics. 3. Have strict risk management. 4. Adapt to the market. Trade according to the system When you trade without a system, it's gambling. Usually, when you ask a beginner why he has opened a position, he uncertainly begins to refer to the fact that someone gave him a signal, or that he thinks it's time for the coin to go in his direction. Trading is a job in which discipline is rewarded. That is why every trader has his own trading system, which he follows in every trade. It's like with the road rules, you can drive car without knowing them, but then you are almost guaranteed to get into an accident. Keep statistics Professional athletes constantly watch recordings of their performances and practice all the movements in front of a mirror, paying attention to every detail. It is vital to get better. For a trader, statistics is a riddle that helps him learn from his mistakes. You should write comments on each trade, filter them by reason of entry or closure, track the average risk, average profit, percentage of successful trades and analyze each trade in detail on a tradingview chart. Have strict risk management Sometimes the market goes against you and you feel the full range of emotions – hope, anger, disappointment, despair. On such days, you will lose all your money if you do not have clear rules. Set yourself a clear limit – no more than 3% of the deposit lost per day. For example, you have a deposit of $1000. You can't lose more than $30 a day. In this way, you no longer risk falling victim to a spiral of negative emotions, you will begin to be more responsible in the trades you open, and you will be able to create financial stability. Adapt to the market Institutional players are always coming up with new ways to entice young players to invest in their coins, and technicians are developing increasingly sophisticated robots. That is why our responsibility as traders is to develop faster than them and to not stand still. To do this, you need to monitor the market and watch which setups work best and which end up as traps. An obvious example: during a bull market, breakouts work upwards, and downward breakouts are usually false. The same is true for the bear market – downward breakouts are cool, upward breakouts are deception. In addition, you need to experiment with your trading algorithm and identify its weaknesses. Add new rules, test them, evaluate the difference. Follow these rules and I guarantee that you will earn much more from trading, and the process itself will give you more pleasure than ever. Good luck with your trades and see you in the DOM ✌️
Education
by Artem_Dishel
1
Emotional Responses are Dangerous in this EnvironmentMarkets across all asset classes hate uncertainty because it causes traders, investors, and all market participants more than a bit of indigestion. Fear and greed are emotions that drive impulsive behaviors. Effective decision-making depends on a rational, logical, and reasonable approach to problem-solving. The Fed finally addresses inflation Recessionary risks are rising Stagflation creates the worst of both worlds Tools impact the demand side- The supply side is a challenge Tools and rules for keeping emotions in check during scary times Reducing impulsive, emotional responses is a lot easier said than done. While it is easy to mitigate emotion during calm periods, they take over and trigger fear or greed-based actions in the heat of the moment. In mid-May 2022, the markets face a crossroads. The current market correction is a function of rising interest rates, the potential for an economic decline, a rising dollar, the war in Europe, supply chain issues, geopolitical tensions between nuclear powers, and a host of other domestic and foreign factors. It is now the most critical period in decades to take an emotional inventory that will avoid catastrophic, impulse-based mistakes. Wide price variance in all markets could accelerate, and those with a plan are the most likely to succeed and protect their hard-earned capital. The Fed finally addresses inflation The US central bank had an epiphany after mistakenly believing that rising inflationary pressures were “transitory” in 2021. The Fed woke up smelling the blooming inflationary environment late last year when CPI and PPI data showed the economic condition rose to the highest level in over four decades. At the May 4 meeting, the central bank hiked the Fed Funds Rate by 50 basis points to 75 to 100 basis points. The central bank told markets to expect 25 or 50-basis point hikes at each meeting for the rest of 2022 and into 2023. The Fed also laid out its plans to reduce its swollen balance sheet, allowing government and debt securities to roll off at maturity. While the Fed has switched to a hawkish monetary approach, it remains behind the inflationary curve. Last week, April CPI came in at 8.3% with PPI at 11%, meaning real short-term interest rates remain negative, fueling inflation. While wages are rising, they are lagging behind inflation. Consumers may be earning more but spend even more on goods and services each month. Recessionary risks are rising The US first quarter 2022 GDP data showed a 1.4% decline or economic contraction. The war in Russia, sanctions and retaliation, supply chain bottlenecks, deteriorating relations with China, political divisiveness in the US, and many other issues weigh on the US economy. Meanwhile, rising US interest rates have put upward pressure on the US dollar, pushing the dollar index to a multi-year high. As the chart shows, the dollar index rose to 105.065 last week, a two-decade high. A rising dollar is a function of increasing US rates, but it makes US multinational companies less competitive in foreign markets. The falling GDP in Q1 2022 increases the threat of a recession, defined as a GDP decline in two successive quarters, putting pressure on the Q2 data this summer. Stagflation creates the worst of both worlds Recession and inflation create stagflation, the worst of all worlds for central bankers seeking stable markets and full employment. The most recent economic data has put the US economy on the road towards stagflation as rising prices and a sluggish economy require competing monetary policy tools. The Fed is addressing inflation with higher interest rates and quantitative tightening, but recession requires stimulus, the opposite of the current hawkish monetary policy path. The central bank must decide on which economic condition threatens the economy more. The Fed seems to have chosen inflation, but it is more than a reluctant choice. Tightening credit treats the inflationary symptoms, but it can exacerbate recessionary pressures as higher rates choke economic growth. Stagflation is an ugly economic beast. Tools impact the demand side- The supply side is a challenge Meanwhile, the US and other central banks have deep toolboxes that address demand-side economic issues. While inflation and recession require different tools, the Fed faces other compelling factors from the global economy’s demand side. The war in Ukraine is distorting prices as sanctions on Russia and Russian retaliation distort commodity prices. Moreover, the “no-limits” alliance between China and Russia creates a geopolitical bifurcation with the US and Europe. With nuclear powers on each side of the ideological divide, economic ramifications impact the economy’s supply side. China is the world’s leading commodity consumer, and Russia is an influential and dominant raw materials producer. Energy and food prices are the battlegrounds. Central banks have few tools to deal with supply-side shocks and changes, which can create extreme volatility in the prices of goods and services. The Chinese-Russian alliance transforms globalism with a deep divide. Global dependence on Chinese demand and Russian supplies distorts raw material’s supply and demand fundamentals. While the US Fed faces a challenge balancing inflation and the potential for a recession, the supply side issues only complicate the economic landscape, increasing market volatility across all asset classes. Tools and rules for keeping emotions in check during scary times The best advice for dealing with anxiety came from US President Franklin Delano Roosevelt, who said, “the only thing to fear is fear itself.” Conquering fear requires a plan that mitigates emotions no matter the market conditions. The Fed’s toolbox is bare in the current environment, creating a volatile landscape. Chasing inflation and dealing with a recession in the face of supply-side shocks is a potent cocktail for price variance. Investors and traders need to change their orientation to markets to adapt to the current conditions. The following tools and rules can assist in mitigating the human impulses that lead market participants to make significant financial mistakes: Hedge portfolios using market tools to protect the downside and allow for upside participation. Hedging reduces the impulse to liquidate portfolios because of fear. Since volatility creates opportunities, approach markets with a clear plan for risk versus reward. Remember that the market price is always the correct price. A risk-reward plan only works when risk levels are respected. Markets are never wrong, while traders and investors are often wrong. A long or short position should constantly be monitored at the current price, not the original execution price. Positions are long or short at the last tick. Adjust risk and reward levels based on current market prices. Follow trends, not news, “experts,” or pundits. Trends reflect the crowd’s wisdom, and collective wisdom reflects the sentiment that drives prices higher or lower. Never attempt to pick the top or the bottom in a market, let the price trends do that for you. The rules are simple, but emotions are tricky. The emotions that trigger impulsive behavior cause market participants to ignore the rules. The critical factor for success in markets is discipline, defined as “the practice of training people to obey rules or a code of behavior, using punishment to correct disobedience.” When it comes to our hard-earned savings and portfolios, the punishment is losses. Tuck those emotions away and face the volatile market landscape with a plan. Hedge your nest egg, and you will sleep better each night. Remind yourself that fear is the only factor you should fear. -- Trading advice given in this communication, if any, is based on information taken from trades and statistical services and other sources that we believe are reliable. The author does not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects the author’s good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice the author provides will result in profitable trades. There is risk of loss in all futures and options trading. Any investment involves substantial risks, including, but not limited to, pricing volatility , inadequate liquidity, and the potential complete loss of principal. This article does not in any way constitute an offer or solicitation of an offer to buy or sell any investment, security, or commodity discussed herein, or any security in any jurisdiction in which such an offer would be unlawful under the securities laws of such jurisdiction.
ICEUS:DX1!Education
by Andy_Hecht
1
Investing Requires Patience and Nerves of SteelA perfect trading environment? Volatility is a mixed blessing. Day traders love lots of action as it creates opportunities to make or lose money. Day traders are action junkies, looking for price moves and technical patterns like predators hidden in the reeds to pounce. Trade or investment- Make a choice before pulling the trigger Trading- One set of rules Investing- another set of rules Common factors The differences and pitfalls Investors have a long-term view of markets, waiting for prices that they believe are too low or too high. While some look for prices that could be tops or bottoms, the most successful investors realize that markets can move to illogical, irrational, and unreasonable prices, so they often scale into risk positions over time. Rising inflation can be a vicious cycle. In 2021, inflation turned out to be a lot more than a transitory event. At first, the US central bank and Treasury explained away higher prices as a symptom of pandemic-inspired supply chain bottlenecks. They never cited the tidal wave of central bank liquidity and tsunami of government stimulus. However, it was those factors that lit the inflationary fuse. The Fed waited far too long to adjust monetary policy to counter inflation as they didn’t account for the central bank’s policies that were a root cause. Russia is one of the world’s leading commodity producers, and China is the most influential global consumer. The invasion of Ukraine, ongoing war, a Russian-Chinese “no-limits” alliance, and sanctions and support for Ukraine from the US and Europe, create an almost perfect bullish cocktail for commodity prices, pouring gasoline on the inflationary fire. The Fed can do little with monetary policy to extinguish the flames. Since the February 24 invasion, market volatility has dramatically increased. The market price variance creates a highly attractive trading environment, but it also offers investors a chance to profit long-term as volatility creates bargains or overpriced assets. The current environment requires short-term traders to be on their toes while patience and perseverance are necessary for longer-term investors. Trade or investment- Make a choice before pulling the trigger A common mistake made by market participants is many do not distinguish or classify a risk position as a trade or investment before executing a buy or sell order. The vast difference between a trade and an investment is the time horizon. Trades are often short-term, while investments are medium to long-term. Categorizing any position as a trade or investment before pulling the execution trigger leads to a different set of rules and can minimize losses and allow profits to run. Trading- One set of rules Any successful trader knows that the key to success is discipline. They also know that they will never call the price direction correctly 100% of the time. Moreover, most have less than a 50% average on the path of least resistance of prices. Baseball players who rise to the top of the game and wind up in the Hall of Fame in Cooperstown, NY, have an average batting average of just over 0.300, meaning they do not get on base nearly 70% of the time. The same holds for the trading hall of fame. What separates winners from losers is discipline. In trading, it amounts to a risk-reward approach that increases the odds of long-term success. When risk-reward is in your favor, it allows for wrong directional calls to outnumber correct ones and leads to more profits than losses. Risk-reward should be at 1:1 at a minimum, and the reward should often be higher than the risk level. When a price hits the risk level, disciplined traders will exit, admitting they were wrong. Moreover, the formula for long-term success means a trade can never become an investment because the price moves contrary to expectations. Investing- another set of rules Investing is another animal, as a value investor tends to go against the market’s sentiment, taking a contrarian approach. Charlie Munger’s current risk position in Alibaba shares (BABA) is a perfect example, but it applies to markets across all asset classes. Mr. Munger saw long-term value in the Chinese e-commerce and technology company, believing it is inexpensive compared to US stocks. At the end of Q4 2021, he was willing to take the Chinese country risk in the stock. Mr. Munger has been buying BABA shares since mid-2021 when it peaked at over $230. His disclosures show he purchased shares in Q3 2021 and Q4 2021. At below the $87 level at the end of last week, his investment is underwater, but he has plenty of capital to support the risk position. Mr. Munger added shares as the price declined, using the principle if I liked the prospects at a higher price, I love it at a lower price. While time will tell if he sticks with BABA, he has scaled into the position at a comfortable level, given his total capital. Successful investors do not put all of their eggs in one basket, nor do they amass a full risk position at one price level. They often leave plenty of room to add if market sentiment drives the price to a more inexpensive level when buying or a more expensive level when shorting. Investments require patience, perseverance, and a portfolio approach. Charlie Munger has substantial exposure to BABA, but it is only one of the stocks in his overall portfolio. Common factors While trading and investing are different market approaches, some common factors are critical: Successful traders and investors never risk all of their capital on one risk position. Success requires a plan before buying or selling to initiate a trade or investment. Risk-reward and leverage dynamics are critical. Success requires the acknowledgment that the price of any asset is always the correct price because it is where buyers and sellers meet in a transparent environment, the marketplace. Successful traders and investors eliminate the emotional impulses from fear and greed. These principles guide successful traders and investors. The differences and pitfalls Trading and investing are different because: Time horizons - Trading requires a short-term orientation while investing is medium to long-term. Technical versus fundamental - A trader tends to use short-term technical factors driven by market sentiment. Investors are more likely to react to fundamentals and longer-term trends. Approach - A trader tends to be more dynamic, reacting to each price movement in a market. An investor is often passive, watching market action over more extended periods. The critical pitfalls are: Traders and investors should never assume an assets’ price is wrong and they are right. The current price is always the right price. Attempting to call tops and bottoms in any market is dangerous as prices often move to illogical, unreasonable, and irrational levels on the up and downside. Never allow a trade to become an investment because the price move contrary to expectations. Changing a game plan during a trade or investment’s life refutes the original thesis. A change should be considered a new risk position, requiring abandoning the existing trade or investment. Failure to account for the worst-case can lead to disaster. Risk involves price, liquidity, and the accessibility to an exit. No trade or investment should prevent others. Allocating too much capital can cause devastating losses. In early March 2022, market volatility has created a paradise of opportunities for traders as wide price variance is fertile ground for short-term risk-reward dynamics. Investing in the current environment where inflation and geopolitics create the most uncertain landscape in decades. An investment plan requires patience and nerves of steel. The old saying, “look before your leap,” is appropriate for traders and investors as they should always plan before executing purchases or sales to enter a risk position. Highly volatile markets make planning critical. -- Trading advice given in this communication, if any, is based on information taken from trades and statistical services and other sources that we believe are reliable. The author does not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects the author’s good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice the author provides will result in profitable trades. There is risk of loss in all futures and options trading. Any investment involves substantial risks, including, but not limited to, pricing volatility , inadequate liquidity, and the potential complete loss of principal. This article does not in any way constitute an offer or solicitation of an offer to buy or sell any investment, security, or commodity discussed herein, or any security in any jurisdiction in which such an offer would be unlawful under the securities laws of such jurisdiction.
SP:SPXEducation
by Andy_Hecht
2
Rules By Warren Buffett (Educational)Hello everybody, today, we are going to talk about Warren Buffett and his rules and advice. Who is Warren Buffett? In an abbreviation, he is an american businessman and investor with an property of over 100 billion dollars. He is an old-school, but in some way, his rules are really impressive and are working. He also wrote an preface for the best book ever written on investing, The Intelligent Investor by Benjamin Graham. 1. Reinvest Your Profits When you first make money, you may be tempted to spend it. Don’t. Instead, reinvest the profits. 2. Be Willing to Be Different Don’t base your decisions upon what everyone is saying or doing. Have your own reason to buy the stock. 3. Limit What You Borrow Buffett has never borrowed a significant amount — not to invest, not for a mortgage. In other words, if you can´t buy it twice, you can´t afford it. 4. Be Persistent A young boy who sold Coca-Cola for a nickel ended up being a majority shareholder of Coca-Cola. This transition does require persistence. Warren is an Realistic Optimist. He believed they will succeed but with planning, effort, and persistence even when times are tough. You don´t have to make deals every day, just watch markets and paper trade. 5. Know When to Quit Once, when Buffett was a teen, he went to the racetrack. He bet on a race and lost. To recoup his funds, he bet on another race. He lost again, leaving him with close to nothing. Buffett never repeated that mistake. 6. Know What Success Really Means Despite his wealth, Buffett does not measure success by dollars. In 2006, he pledged to give away almost his entire fortune to charities. 7. Stay In Your Circle Of Competence Imagine Circle with 3 layers. In the smallest layer, inside the circle, are things that you really know. In middle of circle are things that you think you know, but you don´t. And in an outer layer, the biggest one, are things that you don´t know. Warren recommends to stay in the smallest layer and just buy what you really understand. Otherwise it doesn´t mean that you have to be closed to every opportunities, but first of all, learn something about it. And this leads us into another topic: 8. Always Learn This is really important to understand, because you have to learn new things, that´s no rule, it´s an habit that you need to make. Learn about market every day, read articles, books, papertrade, watch youtube. In these days is super easy to learn something, all you need to have is good wifi connection and phone or notebook. Warren reads up to 500 pages every day. Try to beat him :) (good luck) 9. Two Legendary Rules These 2 rules are good to know, it seems really clear, but someone had to tell you: 1. Never Lose Money 2. Never Forget Rule Number One And that´s serious guys! Never lose money, that´s not your style. 10. Diversify When you are buying penny stocks, you have to buy one large-cap stock, because penny stocks are volatile and can drop to 0. It can make you big profits or big losses. With a large-cap stock, you will protect your portfolio from total crash, because large-cap stocks are not as volatile and as risky as penny stocks. You should diversify in sectors too. If in your portfolio are only oil companies and price of oil will go rapidly down, well, good luck. When you have money in oil companies, you should buy some stock from another sector, for example real estate or healthcare. Quotes By Warren Buffett „Cash was never a good investment." „I´d rather buy a wonderful business at a fair price, than a fair business with a wonderful price." „Big oppportunities in life have to be seen." „No matter how great the talent or efforts, some things just take time. You can´t produce baby in one month by getting nice women pregnant." End So, seems like we are at the end. Thanks for your effort to read it all, because my view is that it is really educational and you should know it. If you agree with me and Warren Buffett, please make sure you liked and i´ll see you again at another post. Have a nice day.
SP:SPXEducation
by TommyTK247
2
🔴biggest MISTAKES🔥 in trading and how to FIX🔧 themHi Guys 👋 I wanted to share with you a mistake in trading that can severely hurt a trader, but I saw that all my cases and experiences are similar to Cory Mitchell experiences, so I decided to share this text with you to read it from Avoid the mistakes we made in the beginning and move forward with a certain order and strategy and make a profit. 👇👇👇👇👇👇 My biggest trading mistakes have included letting losses run, not taking profits, hesitating on good trade setups, and being over-eager to trade (overtrading). Here’s how I manage these issues. Hopefully, my experiences will help you as well. Mistakes happen, especially in an arena as dynamic as trading. There is a lot to process and sometimes the wrong decision will be made. Losing a trade does not mean a mistake was made. Losses are a natural part of trading. No matter what strategy we are using, it will only win a certain percentage of the time. The rest of the time it will lose. As long as it produces a profit over many trades, that is what matters. Therefore, I’m never upset over a losing trade. What I do get upset about (at myself) is when I don’t follow my strategies. Win or lose, not following our strategy is a big mistake. But of course, we all know that. So below are some of the biggest issues I have experienced that cause me to deviate my strategies. Interestingly you will notice that trading presents a bit of a paradox. For example, one mistake is being too eager to trade which cause impulsivity and poor trading decisions, while another mistake is being too hesitant which can result in the really good trades being missed. The key is to realize these problems are entirely based on context. Impulsivity and over-eagerness tend to occur when there isn’t a good trade setup, but we try to make something happen anyway (doesn’t work). Hesitation occurs when there is a good setup, but we are scared of putting our money on the line. Interestingly, one state of mind often leads to another. For example, you may hesitate and miss a really good trade. You are mad, and so you become over-eager to get that money back and you start jumping into random quality trades that don’t align with the strategy. After a few losses you feel dejected and lack confidence, and end up missing the next really good trade again. Now, let’s look at the four biggest trading mistakes I have made, and that I see others making, and how I manage them. 🔥 Biggest Trading Mistake: Holding the Loss The price can move big in our favor, or against us. The mistake I regret the most is not taking a loss when I am supposed to. Before every trade, I know where I will cut my loss. While the occasional loss will come back and produce a profit, the ones that don’t can ruin you. Through some hard work, I have gotten rid of this problem. I get out when I supposed to get out. In my early years trading, when I looked through all my stats, I found that my worst days were almost always due to one or two oversized losses. On the trades where I took these big hits, I felt trapped and didn’t want to take the loss. Usually, I was trying to get out, but instead of just doing it I would bid or offer the position out to try to save myself a few cents/pips/ticks. As the price kept moving against me I would move my orders to where the price was, and then keep watching it move against me. Instead of just punching out, I was always scrambling to try to save a few cents. Those few cents I was trying to save have cost me tens of thousands of dollars over the years. Now, I just get out when I am supposed to. The use of stop loss orders can aid in this matter. They will execute when (not necessarily where) they are supposed to and get you out. Assuming the trader doesn’t move them…which I sometimes did in my early years. 🔧 Fixing It If you are facing this issue, convince yourself this is a problem you no longer want to have. The distaste for taking a bigger loss than you are allowed must outweigh the “hope” the price will come back in your favor. Whether the price comes back in your favor is irrelevant. If the price hits our loss limit, it is time to get out. Period. To develop the distaste for taking a big loss, look through your results. If you have a decent method, it should be producing regularly profitable trades. Now, look at all the losses that are much bigger than they should be. If you got out where you were supposed to on those trades, how would your overall profitability differ? It would probably be much better! In addition, a normal loss shouldn’t affect our psychology too much. We can keep trading and should be able to maintain focus and emotional neutrality. Take a big loss, though, and that can create a domino effect of bad decisions. When you go through charts and historical trades, consider how that one bad trade may have negatively affected other trades that followed. The end result of this exercise is that you will have an objective dollar figure of what holding onto losing trades is really costing you. When you add it up and see that just by getting out when you are supposed to your profits would have been increased (or your losses decreased) by $500, $2,000, or $5,000 per month–or whatever your number is–that will help you clearly see how important it is never to let a single trade move past your stop loss level. With that knowledge, instead of hoping a losing trade will turn around so you can get out flat or make a few bucks, you will know that getting out at the loss is actually putting X number of dollars in your pocket! When you know that getting out is going to make $2,000 (or whatever your number is) extra on average each month, it becomes a lot easier to accept losses and to never let them get out of hand. 🔥 Problematic Trading Mistake: Not Taking Profit This is not AS big of a problem as not taking losses, but not taking profits when we are supposed to can also dampen performance. When I trade, I typically use profit targets. Before every trade I have a price set that is both reasonable based on how the asset is moving, and that also more than compensates me for my risk (reward-to-risk must be greater than 1.5:1). Yet, my strategies allow for a bit of leeway. For example, if the price comes extremely close to my target (90% of the way there) but then starts to move away from it, I am supposed to just get out without thinking about it. The real-world is sometimes more complicated than a simple rule, though. For example, today while day trading I had a $0.30 target on my trade ($0.30 being the difference between the entry price and planned exit price). The price quickly moved to it and touched that price but didn’t fill my order. At that point, I was $0.29 on side. A split second later a big sell order came in and I was only $0.15 onside. I hesitated a second longer and then was only onside $0.02. I got out. Regardless of whether the price continued to drop or went back up doesn’t really matter. A mistake had already been made. I hesitated and it cost me another $0.13 per share. It doesn’t matter that I was onside $0.29 one second and only $0.15 the next. I have the rule to get out if the price gets close and then moves the other way for a reason: I don’t want a big winner to turn into a loser. That is my rule, it may not necessarily be yours. My point is that just like taking losses when we are supposed to, we must also take our profits when we are supposed to, according to our strategy. 🔧 Fixing It Hesitation usually kills. If you know you have to get out, it is usually better to do it that second earlier than that second later…because usually by the time you notice you need to get out the price is already moving against you. In the example above, even though it sucked that half my profit disappeared before I could react, it could have made a lot more if I simply didn’t hesitate to get out when I had the chance. Do what needs to be done. Plan it before the trade happens. While in the trade, rehearse what you will do if different situations unfold. What are your exit rules on profitable trades? If you just leave your profit target and stop loss alone, and let the price hit them, that is a great method too (this is the method I recommend to all new traders), because you will never have this issue or the one discussed above (assuming you don’t mess with your orders once in a trade). If you do allow some flexibility on when you exit a profitable trade, go through all your trades and see how much more you would have made over the last month if you got out of those trades when you were supposed to. Just like looking at your losses, you may find that on average you could have made $0.10 more (per share) per day if trading stocks, or 10 pips more per day if day trading forex. That may not seem like a lot, but if trading 2000 shares, that’s $200 day…or about $4,400 per month (22 trading days). What many traders fail to realize is that the difference between really successful traders and those that lose is small stuff like this. It is finding a few extra pips here or a few extra cents or ticks there. It is all those little improvements which are the difference between winning and losing, and winning big and being mediocre. forex strategies course for weekly charts banner 🔥 Biggest Trading Mistakes: Hesitation on Good Setups Occasionally, traders will send me a screenshot of their charts to look over…usually on their bad days . What I notice is that while they did end up in some bad trades, the far worse travesty is that they missed the good ones! Since I always aim to make more money on my winning trades than I lose on my losing trades, missing even one or two winnings trades in a day can mean the difference between having an amazing day or a dismal day, or at least between winning and losing. For example, let’s say I take three trades and lose 10 pips on each. I am down 30 pips. But, assume I missed two profitable trades. Those trades should have been at least 15 to 20 pips (1.5:1 to 2:1 reward to risk). Taking one of those trades means a greatly reduced loss for the day. Taking both those trades means a likely profit for the day. It still wasn’t a great day, but missing the winners made it far worse. My worst days are typically the ones where I hesitated and missed the one or two (or maybe three) really good trade setups that occurred. Because I missed those good opportunities, at the end of the day I am only left my losses to show for my couple hours of work. Missing a good setup is usually about twice as costly (because I am often using a 2:1 reward-to-risk ratio) as a losing trade. In other words, while many traders are scared to lose, I am far more afraid to miss out! 🔧 Fixing It Not hesitating on a good setup comes down to psychology. We need to be confident to place trades, but not arrogant (see being over-eager below). Unfortunately, most of us can’t just decide to be confident. But, we can practice hard, and the more we practice our methods the better we will feel about them. Slowly, over many trades, we will see that if we follow our strategy the money will come. This helps build confidence in the method. In How to Overcome Trading Anxiety I stated that “Confidence is created by courageous acts–constructive decisions which are made even when a lot of anxiety is present.” Even great traders have moments of doubt or anxiety. We are all human. For whatever reason, we may not want to pull the trigger on that good trade setup, but we have to. Doing so is a courageous act. And it is only through routinely making trades, in spite of our anxiety or apprehension, that we will start to see that those trades will increase our overall profitability. Just like any other trade, there are no guarantees the trade will work out if we take it. That is why it is a courageous act. But by taking these trades routinely, our results will improve because we will start catching more of those good trades we have been missing. One of the most courageous things to do is to get back into the same trade after being stopped out. We have all had that experience. The price touches your stop loss and then starts flying in the direction you expected. Here is where psychology comes into play again. If it is still a good trade, we need to get in again! We can’t fret about the loss. It happened, all we can do is capitalize on the opportunity that is still in front of us. As traders, we need to move from a state of worrying about losing, to an opportunity-seeking mindset. We aren’t worried about past winners or losers, rather we are focused on the now and the opportunities that are arising. If we are always thinking about past trades or that loss that just happened, it is almost impossible to stay in the moment and seize that next great opportunity that occurs a split-second later. Practice your method enough so that a loss, or a potential loss, doesn’t phase you (because the fear of losing is what usually causes us to hesitate on a good trade). As long as you worry about losing, you will likely miss opportunities. Stay in the moment but remain calm. We are ready to pounce if needed, but only if a good trade setup arises. When no trades are present, we are focused on the market and watching for trade setups. We do this without expectation or apprehension. We simply watch, and wait for the market to come to us (do what we want) before taking action. This way, we are ready to act when the moment comes. 🔥 Biggest Trading Mistakes: Being Over-Eager to Trade We have all heard “Don’t over-trade!” While that is true, hearing that won’t cure your overtrading. That’s because overtrading is a symptom. Overtrading doesn’t cause overtrading, something else does: our mental state. Being over-eager to trade, fantasizing about big profits, or feeling we need to get a certain number of trades in today are mental states that cause us to overtrade. In order to control our overtrading, we need to control our mental state. I haven’t personally met anyone who has mastered their own mind yet, and I am no exception. I sometimes overtrade. Every once in a while I will have one, two, or sometimes even four or five days in a row where I am just really amped up to trade, and this usually costs me some money. Such stretches typically follow a long string of winning days. Feeling confident, that confidence can sometimes turn into taking trades that aren’t that great (arrogance). We start relying on our own intuition, instead of trusting the strategies that produce the gains. I have told many students over the years that a good trader is nothing more than a button pusher for their system. The more I implement this theory, getting in and out when my system calls for it (see all points above), the better I tend to trade. When I deviate from this belief, my profits decline. 🔧 Fixing It Being over-eager is often a result of one or several underlying issues. The most likely cause is that the trader doesn’t really have a solid plan for trading in the first place. Without a plan, every move in price looks like a trading opportunity. Experienced traders know this is not true. If you don’t definitively know when you should be taking trades, figure that out before you trade. Another cause is the desire to make money. While we can make money trading, unfortunately, we don’t get to determine who much money we make this instant. The market determines that. You can have the best strategy in the world, but it means nothing if the market you are trading isn’t moving right now. The market determines our profit on each trade, and at any moment it can do anything it wants. We don’t control the market or the opportunities it provides. But, we do control how we react to the market, and can improve our methods so we have a say in how much money we make over many trades. We can study our own reactions to find ways to improve our performance. We can also look at how the market tends to move which may aid us in finding better ways to implement our trades. All this work is done OUTSIDE of our trading time. While we trade, our only goal is to implement our current strategies. To study your reactions to the market, take screenshots of every single trade you take, and then review them regularly. Many people who over-trade are conducting experiments while they trade: “Let’s see if this works” or “I think I can make a few bucks…I will get out quick if it doesn’t work.” This sort of thinking undermines discipline and patience, two traits which guard us against overtrading. Related to the section above, about hesitating, over-trading sometimes comes out of frustration from missing a good trade. When we miss a good trade, we try to make that money back by taking random trades and hoping they will work out. This generally leads to more losses, more frustration, and even more random trades as we fumble around hoping to make back some of the money we lost. We can often avoid this domino effect by not hesitating and missing the good trades in the first place (see section above). Over-trading can also result from “playing with the house’s money”. When we are up for the day/week/month/year, some traders tend to relax their standards for trades. They take mediocre trade setups, or let losses run further than they should. Having made money is not an excuse to overtrade. Every trade is independent. It is taken or left alone based on its own merits. Past trades don’t affect decisions about current trades (unless you are using a daily stop loss, in which case you want to make sure a loss wouldn’t put you over your daily maximum loss). As discussed above, as traders we are simply button pushers for our system. We calmly wait for the next signal without expectation or apprehension. The insights in this Fixing It section, and the ones above, should aid in getting you there. As with the other sections, sometimes reducing the mistake to dollar figure can help. Go through your charts and see how much all those random or poor-quality trades cost you each month. Seeing the dollar figure may cure your overtrading right then and there, because you will see that you could make a lot more money by sitting on your hands until the good setups for your strategy occur. 🔥 Final Word On the Biggest Trading Mistakes Once someone has a decent trading method, and assuming they keep risk to 1% or less per trade, the most common trading issues I see and deal with are covered above. These are the big ones. While insights into handling these issues have been offered, all the solutions involve actual work. Reading and conceptualizing won’t cut it. To reduce these mistakes, if applicable to you, you should actually go through at least a month or two of your trades/screenshots and add up how much your over-sized losses cost you. Do the same for not taking profits when you were supposed to; find the dollar figure. If you hesitate on trades, focus on staying present and consciously forcing yourself to take those trades and sitting through the trade even if it makes you squeamish. There are a number of reasons why people over-trade. Find your root causes, and then formulate a plan for how you will improve the issue. . . What were your mistakes in trading?📈📈📈
NASDAQ:TSLAEducation
by seyed_mehdi
4
10 Rules for Every TraderI have on the wall next to my trading desk a list of 10 rules which I remind myself of every day. These are rules that I've come up with as a result of mistakes that I've made in the past. New traders often have misconceptions about what good trading looks like, or how a successful trader behaves. The barriers to getting into trading today are low, but the learning curve is still just as steep. You can save yourself considerable time and money by learning from others. I'm sharing this list mainly for new traders, but anyone can benefit. So, without further ado: 10 Rules For Every Trader 1. Price doesn't HAVE to do ANYTHING. A common misconception among very new traders is that skilled traders are able to 'predict' the market. This is not true. This is not even possible. As a trader, your job is to deal in probabilities and risk-management. 2. Ranges are more common than breakouts. In any given market, for every successful breakout and acceptance of new price, you will find 3-5 failed breakouts. New traders often prefer breakout trades because they happen fast, they're exciting, and there's a certain thrill to profiting off of a sudden move that you know caught a lot of other traders with their pants down. Remember that price action stays rangebound by default, until a demand imbalance pushes the auction process to a new range. Range bound trading is a boring grind, but it's also the easiest money you'll make. 3. You will be wrong at least 50% of the time. Keep your risk tight! So, it's not necessarily true that you'll be wrong more than you are right, however as a new trader it's highly probable. This is however the mindset that I adopt when I am evaluating the risk of a potential trade. With any trade I take, I assume that I've got a greater chance of being wrong than being right. When you think about your trading this way, I guarantee that you'll tighten up your risk management game. 4. Check your ego at the door. You're here to make money. That's all. The market is not here to offer you self-validation. The market doesn't care about your need to prove anything. Stay humble, and always keep the possibility of being wrong in the forefront of your mind. 5. Take what is offered. This goes hand in hand with rule one and rule four. A common saying is 'follow the signals, not the cents'. I've let winners turn into losers in the past because I FELT (rule 4) like price action HAD (rule 1) to go farther before rolling over. Take what the market offers, and see the next rule. 6. There will ALWAYS be another opportunity. FOMO (fear of missing out) is very real. It will also lead you to get cut to pieces in a leveraged market. If you missed your ideal entry, don't chase. You didn't just miss the last and only good trade in the world. Think of your risk capital like ammunition. Save it for tomorrow. 7. Winners add to winners. Losers add to losers. What more can I say? If you're adding to a losing position with the intent to move your average entry price, you're already in trouble. Every time you think about adding to a position, I want you to hear this rule in your head. "Winners add to winners. Losers add to losers." Close that losing trade. Save your capital for the next opportunity. 8. Be greedy with your entries: fight for price. If your trading thesis requires price to reach a certain level to validate your entry criteria, then wait for that level. Remember, don't FOMO into a trade. See rule six. 9. Be patient with your entries: Being early is the same as being wrong. Similar to rule 8, no FOMO! Have you ever taken a trade and then been stopped out before the market makes the move you were expecting? You're trying to predict the market instead of reacting to what it is showing you. Slow down, and remember that acceptance of price is validated by both time and volume. 10. Hope is NOT a strategy! This is the difference between trading and gambling. Good trading looks very boring. As a general rule of thumb, if it's exciting, you're probably gambling and not trading. If you don't have a solid 'if this, then that' thesis about the market you're looking to trade, then you don't have a trade to make. These rules are meant to be guidelines for self-improvement as a trader. Write them down. Add your own personal rules. Print them out and put them where you will see them every day. Look at them before you trade and while you manage your positions. At the end of the day, evaluate how well you followed them and record your thoughts in a trading journal. I promise you that if you incorporate these rules into your trading plan, and make them a part of your thinking, you will find success as a trader. Trade well everyone.
TVC:SPXEducation
by iamroot
320
The importance of sticking to the plan 👊👌As traders we are our own worst enemies! A common theory with trading is as follows. 10% is having a good strategy, 30% is having good risk management and the final 60% is psychology. If we as traders fail to address the final psychology part of the sentence above then we as traders will fail in the markets. The chart shown in this idea is EURGBP working the 30 minute time frame. The strategy is a rules based mechanical approach working a 1:1 RR to fixed stop loss and take profit targets. I know I have a proven edge with this strategy as with all my ideas the built strategy tester report is at the foot of this idea shows the strategies credentials. Position sizing is correct I trade this strategy on a stand alone account for this pair and I'm happy to risk 2% per trade of my capital from said account. So where does the psychology part come in to all this? The emojis on screen show the emotions I would of been feeling with this trade once upon a time! An emotional roller coaster! The chart shows three trades. A short which hit TP followed by a long which hit SL. Then the trade I'm using for this idea which lasted a full 13 days! But this is where sticking to the plan and the rules I set help remove that emotional roller coaster. Not sticking to that plan could of created many outcomes. I could of closed for less profit than intended as part of the plan or worse still could of cut my losses only for the trade to go on and hit TP target. The above would of then led to more emotions thus effecting my future trading decisions and choices. With each trade I enter I am comfortable with said outcome whatever that maybe. That comes from trading a proven strategy, having correct risk management and then by sticking to the rules of the trading plan for the strategy. Sticking to a plan removes any subjectivity and helps take care of the psychological side of trading. I even automate my strategies now and not checking trades every minute of the day has helped removed all those up and down feelings the emojis on the chart represent. I'll end with one final thought patience has to be part of your plan. The markets take from the impatient and give to the patient ones among us. ------------------------------------------ I try and share as many ideas as I can as and when I have time. My trades are automated so I am not sat in front of a screen daily. Jumping on random trade ideas 'willy-nilly' on Trading View trying to find that one trade that you can retire from is not a sustainable way to trade. You might get lucky, but it will always end one way. ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. The stats for this pair are shown below too. Thank you. Darren
Education
by pow_removetheguesswork
38
7 Trading DISCIPLINE Rules to deal with Losses It’s impossible to trade or invest and not find yourself into a losing position. That’s just the way things are. And a large trading loss can be devastating. Not only financially, but emotionally. As defeating as losses feel, how you react to a big loss is more important than the loss itself. Inexperienced traders suffering a large loss can become hijacked by their emotions. Some may try to trade through the pain, often creating more turmoil for themselves. Some may withdraw from the market, to avoid thinking about it. Others may try to “trade in revenge,” determined to recover the losses. None of these reactions are constructive. In fact, they can be destructive if you don’t learn how to handle losing trades. Whether it was an obvious minus in your strategy, a lack in discipline, or any other reason, nearly every trader will face a big loss (or several) in their career. After a losing streak or big loss, you may begin to question yourself, which leads to the typical problems many new traders have, like getting out of trades too quickly, holding on to them too long, skipping trades with the fear of losing, or getting into more trades than you should in an attempt to get some winning trades. One major difference between successful traders and failed ones is how they handle trading losses. Successful traders treat losses as an opportunity to learn and improve their trading. Coming back from a large loss is challenging, but success is never accomplished by ignoring trading losses. Losses especially substantial ones can be opportunities to become a more skillful trader. Here are 7 rules successful traders take after a loss to become emotionally stronger and more disciplined 1. Never let a bad day cost you more than you make on an average win day Knowing how to lose properly is a must in a long and prosperous trading career. If you average, let’s say, $200 on your winning days, don't lose much more than that on a bad day. Control the downside. Knowing how to minimize risk is the most important aspect in trading. There are really only 4 possible outcomes to a trade or investment: A big win, a small win, a small loss, or a big loss. As long as we ELIMINATE the big loss from our trading days, we can live comfortable with the other three. Risk Management is the primary cause for a successful or unsuccessful trading experience. A sound risk management can yield a steady increase of profits, while a poor risk management can wipe out an account in a very short period. If you follow the 1% risk per trade rule, a precise stop loss level presets that 1% value and you’d know beforehand the amount you risk losing should your trade turn negatively. And this goes hand in hand with the second rule. 2. Know the stop-loss level before you ever get into the trade The stop-loss is a simple tool, yet so many traders and investors fail to use it. Whether to prevent excessive losses or to lock in profits, nearly all trading styles can benefit from this trade. Think of a stop-loss as an insurance policy: You hope you never have to use it, but it's good to know you have the protection should you need it. So, always use a stop loss and know its location before you ever get into the trade. Also, never widen your stop losses when the market moves in negative territory. Know that regardless of what happens, there is another trade around the corner. If your trading strategy relies on the success of one single trade, it’s a very bad trading strategy. Remember that trading success is the accumulation of many successfully, managed, both winning trades and losing trades. 3. Don’t involve in revenge trading A big loss causes all sorts of inner conflict—a need for revenge, fear, anger, frustration, self-hate, market-hate, and the list goes on. After a big loss, there's no way to trade with a clear head. There are more than 250 trading days in a year, so there is no rush to get back in there. If you do so, you basically revenge trading. Rather than looking to your strategy and make sensible decisions around the incident, you jump straight back in. This is dangerous for your account for two main reasons. First, it forces you to throw your trading discipline out the window. It shifts your focus from your trading process to trying to make enough money to recover your losses. Trading based on emotions and luck is not trading. It’s gambling. It’s also a lose-lose situation. If you lose a revenge trade, you increase your losses even more with a trade that you had barely planned for. If you win, then you’re believe that trading on guts and emotion works and you’re going do it again. So don’t do it. 4. Accept responsibilities for your decisions Accept responsibility If you suffered a large loss; be sure to own it. Don’t brush it aside, hide from it, or blame the “smart money” for your loss. There is always an excuse for a losing trade, but as traders and investors, we must accept the risks. Until we accept that we are responsible for whatever happens with our orders, the same thing will happen again. Accept responsibility and figure out what could have been done differently. This will help reduce the chance of it occurring again. It is also healthier than blaming other factors for your mistakes. Blaming others is admitting you don't control your own trading, and if that is the case, you shouldn’t be trading at all. If you control your trading and investing, then you can fix it. And is always something that can be done. It may involve changing markets, changing your strategy or your trading style. If you find that scalping the 1-min chart brings you a lot of losses, try swing trading. The solution is there; you just need to find it. 5. Stop trading for a while Sometimes, it’s better to take a break to figure out what went wrong. Do those things so that you can get back to a better mindset in which you can refocus. After that, assess what happened by reviewing events carefully. Think about where you fell short. For example, did you take too much risk? Was the trade well-planned? Were you mentally sharp, or did you hold a losing trade hoping to avoid a loss? Taking a break from trading is one of the hardest things to do, but it’s a smart move. Wait for the conditions to improve. Preserve your cash, save your sanity and focus on other things. When the conditions improve, so will your results. Remember: the market will not disappear tomorrow. Nothing terrible will happen, on the contrary – during this time away from charts you will likely to come up with new, better ideas on how to improve your trading. 6. Trade lower position sizes After a big loss, confidence can be low. Not having a clear mind can cause you to skip trades, panic out of trades, or be overly-aggressive. None of these are good. Take a step back and trade in a demo account for a few days. Because it's not real money, there is also less pressure in a demo account, so it is easier to focus on trading, and not worry about the financial aspect of it. A few winning days in the demo account will raise your confidence levels and put you in a better mental space to take on the markets again with real money. So after a losing streak, start small; don't jump right back to the same position size you were trading before. In the first days back, trade small position sizes. A winning day with a small position size will help build confidence, and you can slightly increase your position size as the account balance goes up. If you have a losing day, losing on small position sizes is easier to handle than another losing day on full position sizes. Even if you win a few days in a row, increase your position size incrementally, so it takes about a while to get back to your full position size. I know that after you have traded bigger position sizes, it's annoying to start back with a small position size, but it's for the best. Bouncing back from a losing streak is about getting back to basics and implementing a strategy well, not actually about making money. Money comes from implementing a strategy well. Demo trading and trading small position sizes gets you refocused on what's important, so you can start building your confidence again. 7. Let Go of the Outcome and Embrace the Process Realize that trading is a continuous process of learning. Most of the times, in trading (like in real life!), you learn more from your mistakes than from your victories. Losing money should motivate you to look closer at your actions, read more, better educate yourself, become more disciplined in your execution and so on. Next time, you will have a better idea of what happened and where you went wrong and can open up room for improvement and start stacking the odds in your favor. As cliché as is sounds, putting your focus out of making money and into enjoying the process will keep you on the right track and more likely end up in profit. If you learned something new and found value, leave us a comment to show your support, Thank You.
BITSTAMP:BTCUSDEducation
by Sahran_Mohammed
1
10 free trading tipsTip 1- Use statistics to avoid bad setups, and enter and exit at high probability areas Example: Wanting to join an early trend on a pullback? It probably is a bad idea to enter before 50% retrace. Elliott rules even say wave 2 typically retraces to 78.6%, so it's probably a good idea to wait for a big retrace before going in. Of course, and this could be another tip of itself, Elliott never made money investing, so it's best to learn from the charts than him. Tip 2- Use the daily chart, or more precisely the 6 months to 5 years chart By studying the charts one quickly learns that price evolves on the "daily chart". By this I don't mean the candles absolutely have to be 1 candle = 1 day, as long as depending on several factors 6 months to 5 years of price data are visible. Typically I go for about 2 years, and clicking on "D" is what looks best. Plus humans are on a 24 hour cycle, so daily candles just makes sense. Some people can't stand noise and just look at moving averages. Tip 3- It is probably a good idea to not try to join very extended trends on a pullback When an extended trend finally has a pullback, it's often going to be a big one. We all heard over and over some numbers such as "1.618". If 90% (totally arbitrary number) of EURUSD trends that make it to 2.618 and pullback end up reversing, and only 1% make it really far, you sure you can get a 1 to 100 risk to reward? Some areas might be best to avoid. In all competitions champions find all the tricks to make it as easy as possible. That's how one becomes the best. Not by being a complete idiot that goes straight ahead tries to brute force. "I die, yes, but with honor!". No no, no honor, you die like an idiot the enemy is laughing at you, and your village will get raped and burned to the ground. People love to be hipsters. I prefer to win, to crush the competition. Tip 4- You already heard this: Cut losses, hold winners, be disciplined Are bagholders hipsters, or just weak? Clearly all the "diamond hands" are simply weak cowards that piss themselves at the idea of taking a loss. I do not want to waste too much time on this one, a very easy way to gain a huge advantage over the competition. Just careful beginners with huge rewards and tiny stops. Greedy stops won't lead to great profits, but to death by a thousand cuts. Tip 5- Do not daytrade, day trading is stupid Ah the day gambling hipsters. "I'll be the one in a hundred that makes it". Even roulette and sports betting have better odds. And the 1 in 100 that make it, assuming it's not just luck, make PEANUTS. They'd earn more flipping burgers. As I explained, price action is based on the "daily" chart. Trends last months, they can be divided in smaller moves that last days to weeks. And the price, as I also explained, reacts around these daily chart swings, and daily chart extensions. Another reason why daygambling is so troll. And since day gamblers "close at the end of the day" (vomit) you could be right and lose money! You could be wrong and lose money! So even if they have some edge, they add enormous randomness (and ruin an edge) because there is a time factor we have no control on, they'll close before bed at a completely random price, just because "the day is over". Same concept as the binary option scam that got banned. That's literally gambling! Oh and when they "close at the end of the day" 🤢 they will be making even less than 15 pips, with spreads still the same size. Tip 6- For the noobs: Start with something simple that works and conditions will be added over years I think the best course of action would be to go for the basics, something that is expected to work, going with the trend, not focussing too much on the entry, having a reward better than the risk but not too tight (greedy). And with time improve it. It's like making muscle. If you stop trying to be a hipster and just do what you are been told (don't daytrade, don't hold losers, don't go against the trend), after the initial learning curve (1-5 years, sorry for the dreamers/gamblers) on year 1 you gain 7.5 kg muscle (7.5% returns), year 2 5 kg muscle, year 3-5 5 kg muscle, year 6-20 maintain, maybe small additional gains. Guys like Bill Hwang have shown someone could be a self-made billionaire making 60% a year, so these numbers are just illustrative. The idea is traders develop over time. All the famous ones really got good after several years, and peaked decades after they started. There are no steroids in trading. Ok I guess there are, those would be insider trading, but this isn't easy to access, and a crime. Tip 7- Noobs again: use indicators if you want too, but don't waste time trying to look for indicator edges If you think indicators look good then use them, but don't waste too much time looking for an edge. We'd know if there was one. Don't be lazy, when starting one probably should spend a little bit of time backtesting indicators, and quickly will find out there is nothing of value, no edge based on the indicator itself. And then they can look for something else with a clear head, without wondering "did I miss something". Tip 8- Beginners or intermediate traders that are not yet profitable: Don't aim for huge asymmetric risk to reward You look at charts, there is volatility, in the real or original sense of the word. Trends have plenty of pullbacks, 23.6%, 38.6%, 50%. You might have noticed those were quite significant pullbacks. Not tiny 5-10% pullbacks. So how does a risk to reward of 1 to 20 or 1 to 10 make sense? And how is someone not yet experienced, not even profitable, going to pinpoint exact high and top? I know NO ONE that can be that precise. When George Soros broke the bank of England, he sold at the upper end, and had a large risk to reward. Correct me if I am wrong but he sold for 10 billion, made 1 billion, and said his risk was below 2% (200 million). That was the trade of a lifetime and his reward was 5 times his risk "only". I think he said his hit rate was below 30%. I doubt he typically takes trades with a risk to reward of 20. Or ever. Maybe there is an edge out there, with 100 RR, who knows? But I think it is more reasonable to start with something between 1.5 and 3. Tip 9- Strong trends are the best, pretty obvious but people seem to avoid these On strong trends retail positions are massively on the wrong side, some sources show the percentage of positions and some show more. The very few traders that are in the correct side have tiny gains, out of hundreds of thousands of accounts the people going in the correct direction and holding can be counted with 1 hand. Makes me feel very special. 1 in a thousand. Even 1 in 10,000. It's really simple too. I was tired of try harding 2 years ago, and I just yolo'd in trends, and it worked out. And last year I repeated it, and it worked again! So I focussed on that, and added a strategy to my arsenal. I call it "breakout" but there's really 2 strategies and one of them is not a breakout at all. I wish I started with this, because it is a real goldmine. Not just the easiest, but most productive too. And I'd build the other strats later. When I started I quickly noticed big patterns that flashed in my eyes, once you see them you cannot unsee them, so I went in that direction, obviously. If you're onto something do not spit in the soup! But if you have a choice, let's call it that, I encourage everyone to aim in the direction of trend following! It's well worth it. If you want to make money. For those that would rather be hipsters, well, have fun. Tip 10- Breakouts! Strong trend breakouts! Be patient And final tip, with breakouts in strong trend, they very very often don't go anywhere. Best way to lose money is to fomo. I'd rather miss out. So the trick is to have a condition like this: "It has to go far enough." Or it can go like this: "I want the price to remain above the previous high", that's not realistic, so it could be "I want 2/3 of the price to be above the previous high, and then to double bottom with the high of the bounce above the previous high", which is more reasonable. This is all just my personal opinion, I do not offer refunds. And it is all specific to Forex. Do you own research. With the charts. All praise the charts. Glory to the charts.
Education
by MrRenev
3
Do you fell stressed with trading? 😒🙎‍♂️😰I want to start the morning by not posting a usual trade idea setup. But to talk more about the methods I now use for my trading and how they have alleviated negative feelings which can occur with trading. A while ago I opted to switch to an systematic objective based approach for my trading. This was down to numerous factors which you will find on the drawings in this idea. Since adopting a objective based approach with set rules coupled with rigours back tested strategies. All of the subjective traits you see on the left of the idea drawing have disappeared. And all of the objective based traits seen on the right idea of the drawing have now become the norm in my trading life. When laid out in the drawing of this idea it's hard to think why you wouldn't adopt these behaviours to your trading. I hope this gives you all food for thought as we start we the trading day. ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. The stats for this pair are shown below too. Thank you. Darren
UEducation
by pow_removetheguesswork
22