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5 Rules For Successful Trading!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? (in my opinion) 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 in forex, or any other type of investment. 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. That’s a common mistake many traders make. 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, we only enter when we have a pattern, support, and divergence. And our rules have to be objective following a well-defined back tested trading plan. I personally use RichTL to make objective (rule-based) technical analysis. 4- 1 / 2 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. Remember, it is not about how many trades you win, what matters is how much you win when you win, and how much you lose when you lose. That’s exactly why we enter with a ½ RRR (or higher), which means we always target double our stop loss. This way even with a 50% win rate, we are still profitable. 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. Therefore, knowing how to control your emotions very crucial in order to succeed in Forex trading. 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.
COINBASE:BTCUSDEducation
by TheSignalyst
100
How “SIMPLE” it is to Trade for a LivingWe just reached +1K followers here so This article/post is a thank you for each and every one of you. Short answer: not easy but doable if done the proper way (my story at the end) Long answer: trading for a living is a fantasy every trader has. however, to be accomplished it requires a strong mindset, a proven record with an objective well-defined trading plan, a trading journal to learn from your mistakes and keep improving, financial stability, consistency… Forget about these gurus taking pictures driving a Ferrari and partying all year, traveling the world, and trading on the beach. (these so-called gurus use it as a marketing plan to attract people on their pages) Before I tell how you can trade for a living, let us consider these two aspects: Psychological Aspect: you shouldn’t depend on your forex account as your main income (to pay your monthly bills) as you will get emotional, make irrational mistakes, and you will end up not following your trading plan objectively. consequently, you will be afraid that you won’t profit this week/month, thus won’t be able to pay your bills. Technical Aspect: you shouldn’t withdraw from your account frequently (every month/year for example). Let’s say your account is 10 000$ and you managed to make a 100% growth by end of the year. so your account is now 20 000$. Because you need to pay bills, you will have to withdraw the profits, so you are left with 10 000$ once again. To make another 100% next year to pay your bills again. so you are not getting any further and still stuck in the rat race. The right way is to keep your profits for your account to grow exponentially. For example, if you have 10 000$ and you make a 100% return this year, your account is now 20 000$, you keep the profits, and your 1% per trade is now 200$ instead of 100$, by end of the second year you also make 100%, now you have 40 000$ and so on… As per the above two aspects, you shouldn’t withdraw from your account frequently ☝️ how to treat forex then? and how to be able to trade for a living? 👇 You have two options: 1- Have another source of income: like a job or a business that you depend on to pay your monthly bills. This way you won’t get emotional in trading and you won’t withdraw from your account for it to grow exponentially 2- Savings / my story: I quit my job on July 5th, 2018 to trade for a living. My plan was to save an amount of money, enough for me to live the same lifestyle I am used to for 2 years from now, without the need to withdraw from my account. For example, if my usual monthly expenses are 1000$, then I need to save 24 000$ before I quit my job. this way, I can survive for two years without withdrawing from my account or depending on it. In conclusion, trading as a career is doable but it requires a lot of dedication and planning in order for it to be successful. The most important aspect you need to focus on is being emotionally stable at all times in order to follow your trading plan in an objective manner. All strategies are good; if managed properly! ~Rich
BITSTAMP:BTCUSDEducation
by TheSignalyst
8
Dream scenario: A valuable lessonBitcoin is a small 2% away from all time high. Now is a good time to look back on the past 3 years since it has gone mainstream. Many "strong hands" ended up selling right before the explosion up (the same people that criticized, insulted, reported and mocked me, while let me remind you I bought at the bottom of this explosion at ~12750 when many of them were selling "the top" and many others had already sold). Not all the 2018 bulls have sold at the bottom, and not all have sold period. A whole lot sold near the bottom, or a little before, or a little after (even some "OGs" sold at 13k or less as the bull market was starting). But generally speaking the people that laughed at me were bullish during the entire bear market while I was bearish from March 2018 to some time in 2020 so the entire bear market, and they ended up exiting all or in part right as the new bull market was starting. Karma hits hard. While the price going to zero after sucking the bear market bulls back in would be hilarious, where it is at now is sufficient for Bitcoin victims to draw some conclusions. I will remind what the rules are (made an arbitrary list, those are the main ones that come to mind): 1- Do not lose money. Cut losses quickly. Have an intelligent position size. 2- Have a plan. Told some "experts" with 20 years experience that "you waited that long, why fomo in now?" back in early 2018, just got barked at. 3- Real traders goal is to make money. Victim's goal is to not miss out (and they end up missing out anyway). 4- Waiting for a big pullback for no reason is stupid. 5- Not waiting for a big pullback when one is likely is stupid. 6- Diversify. Even Mr concentration Warren Buffett diversifies (in assets, in industries, and over time). 7- If you find yourself getting influenced by the crowds, the media, etc: cut them off. 8- For stubborn people (you skipped 7 hopefully): well don't be too stubborn if the evidence is saying something different. 9- Brace yourselves for the boring saying we all heard 10 thousand times: there is no free lunch. 10- Run winners. If the price keeps going strongly up and you are on a weekly chart, why would you sell at 13k this year? 11- Use your head. I see so many mind-bogglingly stupid arguments and actions. To those people: make a damn effort, you can't be that dumb (right?). 12- Don't revenge trade: do not try to "get my money back NOW". 13- Revenge trade: If something keeps not working do something different, sometimes this is the opposite. 14- Do not try going too fast 15- Don't day trade This is very helpful to people that held Bitcoin all of 2018-2019 and end up selling in 2020: www.nooooooooooooooo.com
by MrRenev
11
RidetheMacro|11 GOLDEN TRADING RULES FOR TRADING 💎📌 GOLDEN RULES FOR TRADING 💎 📍 1. Don’t break your rules - The first and foremost rule of share trading is to never borrow capital to invest in share market. Test your trading setup and its logic through paper trading or back test it with the available data. Then start with small quantities or a single lot etc. So don’t break the set rules , you made them for tough situations, just like the one you’re probably in right now. 📍 2. Don’t believe in a company - Trading is not investment. Remember the charts and forget the press releases. 📍 3. Don’t seek the Holy Grail - There is no secret trading formula, other than solid risk management. So stop looking for it. Always do trade keeping your trading capital into consideration. Don’t over trade. 📍 4. Don’t forget your discipline - Learning the basics is easy. Most traders fail due to a lack of discipline, not a lack of knowledge. Maintaining stop loss is one of the key discipline parameter to be religiously followed. 📍 5. Don’t chase the crowd - Listen to the beat of your own drummer. By the time the Crowd acts, you’re probably too late. Or too early. Don't chase the Retails. 📍 6. Don’t ignore the warning signs - Big losses rarely come without warning. Don’t wait for a lifeboat to abandon a sinking ship. 📍 7. Don’t count your chickens - Profits aren’t booked until the trade is closed. The market gives and the market takes away with great fury. 📍 8. Don’t have a paycheck mentality - You don’t deserve anything for all of your hard work. The market only pays off when you’re right, and when your timing is really, really good. 📍 9. Diversification of portfolio - Do not put all eggs in one basket. 📍 10. Don’t expect to make profit everyday - If you consider that you can make profit on every trade, you are 100% wrong. Always be flexible and accept the fact as soon as you realize that you are on wrong side of the trade. Simply exit the trade without changing your strategy during the market; it may cause you double losses. Always follow stop loss. Treat trading as a BUSINESS and Earnings (profits) & Expenditure (losses). Learn to like losses as they are the part of the business. 📍 11. Never add to a losing position - When market has given the verdict that your trade is wrong. Accept it. Just exit from the trade and don’t average it. Don’t take it personally and bring your ego in between. Don’t fight the market. It’s not a one on one thing. It’s one on many. Share your comments ideas below to make Things more better. Thank You.
BITSTAMP:BTCUSDEducation
by Ridethemacro
6
Sleeping Alligator - CLOWN signal 1. alligator on dailes sleeping ( range bound market) 2. strong trend down previously on 2 hourlies - Volume POC GAP is very large between left eye and mouth; 3. Volume POC each day in white - should make pattern of "clown face frown " 4. First trigger is VPOC move up to "top of LIP ( right part of face crease) 5. Second trigger is price drops back down to EMA below 6. %BB should show at least or 2 dips below 10% during frown formation 7. Gann swing should be -1 ( correction) 8. Buy at market with stoploss -0.15% below lowest VPOC 9. Target should be at least 1.5 * risk. Please note : I developed this idea - not from StreetSmarts; in trail phase of assessment
Long
by Aussie-scalper
So what is the secret? Part 2. Going from begginer to pro.Hello, so first of all I mentionned in this idea what I think are the most important rules to keep in mind, and a guideline on how to build a system / a career: In this idea I would like to show what I think is the end goal, and how I would advice someone getting there. I saw a nice chart on the internet "How traders think versus How trading actually works", I modified it a bit, this is my view on the subject: I would not know how to explain to a complete beginner, but I think I understand the beginners that already read a bit about all this. Let me explain what is in this pie: About the watching the markets... some... people... still deposit money to cryptopia. Exchange went bankrupt. "It's just FUD", "don't look at the news they might convince you not to H0DL". Crypto community is the perfect example of what not to do, just unbelievable. Complete bunch of idiots. People that deposit money to a broker/exhange that went down have nothing to do in this business, stick to watching tv. If I had to guide someone I think going throught these steps would be what I would choose: 0- If they are eager to buy and sell with real money, go on a small account and sizes as small as possible. If they are already not able to control themselves, no point even trying. Cannot advance they have to be able to control themselves first. 1- Start just reading, watching videos. There is alot of nonsense, trolling, and just dumb ignorant people that give their opinion. So do not take anything for granted and absorb it all. There are some warning signs. Kid that went huge leverage and made 10,000% returns at once and starts calling himself the legend, the master of charts... Most people can tell this is dumb, right? I am not sure to be honest. Well at least 1/3 can I imagine. If you can't, go to step -1 and build your understanding of the world, common sense, some mathematics too especially probabilities. 2- I would make a feedback on what the person knows, I do this myself all the time. Re-learn everything make sure the foundations are solid and that it is all natural don't need to overthink it. But with experience it will really become natural. Decide what you like more (this will change with time) and start going in that direction. Also check if what you like (catching the falling knife bottom right before the trend reverses and riding it to the top) is possible (no) or just silly (yes). 2- Write a plan or a set of rules. How do you want to do this? Any system can do. Have a system that tells you what to look for and then detail it a bit. Say the rules are 1- Define the trend 2- Find out what is driving it and where it could end 3- Risk factors 4- Should I hop on & when? 5- How to set stop loss 6- Exit For each number from 1 to 6 you write how you do this. Does not have to be perfect. 3- I would suggest starting with a risk reward ratio not too high I just do not think it is a good idea to have a reward much greater than risk at this point. Try being right about the trend as much as possible, avoiding the really bad days, not to gamble, not to chase losers, understanding more how markets move. Stick to 1 or 2 (2 may be preferable to not get bad habits) markets. Maybe Bitcoin (and some alts) since it is very popular and also very educational, as well as gold, or indices if you prefer. Indices good. I think this is what I learned the first. Story time I remember (I think) the first chart I analysed was Bitcoin in 2014. It had no support till 100 to 250$ yikes. I was already a bear before I was a trader back in 2014. First markets I learned about and watched were the stock markets. Every one was always super serious about how many points were up or down and afraid of a big crisis, even when I was 8 or so I was thinking "oh calm down dude". 4- Time for a break. Might as well do that after a lose spree. 5- Review past trades. What was good? What went wrong? What happened that day? Why? Why did the price go up? Down? Following people on various sites helps for this rather than just being isolated, well I think it does, but careful there are plenty of idiots let's call them that, that just attribute price action to the dumbest things. When you start breathing talking finance, it becomes easier. At that point you may be 1 year in, you should start to get a feel of the markets and understand better how they move. Focus on working on your strong points weak points average points :p 6- You should have refined your trading, and try having a profitable or at least break even strategy over a great enough number of trade that you know it is probably not just a lucky - on unlucky - run. Being non delusional is important. If you kept winning in a raging bull market, be aware of that. You are on your own and there is no one to tell you that. Well there is MrRenev but people do not listen. I think now you should focus on avoiding really risky trades such as have the potential for massive slippage or just ahead of some important report, weed out the bad ones. Also, you get better at holding when you should hold, and exiting when you should exit. 7- Now is the time to increase that risk to reward ratio. The best, the really top trades, they all have high risk to reward ratios. It is broken. It is like hacking. You can get very profitable this way. There are some opportunities where the odds are high even thought the risk to reward is big. One of the reason why I do not recommend this earlier is you lose 5 in a row you do not know if you made a mistake or it is all normal. Better have plenty of winners and try looking "ok so did I enter too early or not how far did they go" etc. You just have more to work with. I don't think going high reward/risk from the start is really a good idea. Once you are good at picking winners, and weeding out the really bad ones, you can focus on raising your RR while trying to maintain a decent winrate. If you manage to get a high RR, above 5, then maybe you can focus on increasing winrate a bit again. It might be time to start looking at a new market too, if you are comfortable with the 1/2 you started with. 8- Permanent learning improving, adjusting to new conditions. At that point you know what to do and it gets more specific. * You can use an indicator if you like it, but chill out with the indicators my gawd. Most of them don't even tell anything you cannot see on the chart for yourself when you have some screen time.
TVC:USOILEducation
by MrRenev
2
Possible GBP/AUD short Position!!SMP TRADING SELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY Chart time frame - H4 Timeframe - 1-3 days Actions on - A – Activating Event Market will meet resistance in zone @1.864 - .... and fall to the @1.79. In order to enter, the pair MUST be in line with my Entry Procedure.... B – Beliefs Market move towards the first Target 1 level @ 1.79 FX:GBPAUD Trade Management Entered @ Sign up for mentoring Stop Loss @ Sign up for mentoring Target 1 @ 1.79 Target 2 @ .... Risk/Reward @ 6.1 Happy trading :) Follow your Trading plan, remain disciplined and keep learning !! Join our Mentoring Program TODAY!! twitter.com Please Follow, Like,Comment & Follow This information is not a recommendation to buy or sell. It is to be used for educational purposes only!
Short
by SMPTrader
5