Components Of The Most Effective StrategyComponents of the most effective strategy
Things are indicated that can reveal the maximum potential of your strategy, or change it a little so that you are successful.
Theory
Do you have enough knowledge base about the market, terminal, competition, nuances, technical and fundamental analysis, your own capabilities to feel quite comfortable in the market?
Objective
Were you able to define your goal, what would you like to see from yourself in the future? Is it based on a constructive vision of the market?
Economy
Are your resources being used productively? Do you use money management and risk management in your strategy?
Simplicity
Are there things in your strategy that you do not understand or could not make out? If so, get rid of it. The strategy should be as easy and understandable as possible.
Psychology
Are there elements of psychology in your strategy? What are you doing to get rid of the human factor and bring everything into a state of consistency?
Flexibility
Is it possible to move resources within your strategy? Will you be able to quickly respond to the volatility, cyclicality of the markets?
Speed
Is it possible to quickly redirect your "forces" within the strategy? Do fundamental things, undefined responsibilities and forms diminish your ability to act quickly?
Security
Is it clear which information has to be kept secure? Do you spread your plans?
Initiative
Does the strategy allow you not to follow the crowd and stay ahead of the competition?
Accuracy
Are you focusing your efforts in those areas that provide the greatest opportunity?
Commitment
Does everyone feel a part of the initiative and passionate about achieving its goals? Or do just a few people “own” the initiative?
Signalsprovider
Which trading strategy to chooseWHICH TRADING STRATEGY TO CHOOSE
There are many strategies, which in turn are divided
into several groups. For traders, strategy is their bread. Each trader chooses it for himself depending on his lifestyle, risk tolerance, psychology. I will tell you about 5 MAJOR CATEGORIES according to
which all strategies can be divided.
The first is scalping - a popular style of short term trading among traders. You need to have strong nerves, quick reactions and a cool head to win with this strategy.
Very fast trades with a small profit, but a small profit is recouped due to the number of trades made within the day.
Scalping is an intraday strategy, traders never roll over positions, it is against their system. These are often one to two minute trades; the tick chart or the lowest timeframes are popular.
Scalpers try to catch volatility, which often occurs when there is any fundamental thing. The most liquid instruments are traded. The most important thing a scalper remembers is the spread.
Day traders do not carry over trades overnight, open and close during the day. For them, a trading session is within one day or, if it is an exchange, the intraday time frames established by the regulations.
Working time frames for intraday traders are 5-30 minute intervals.
Within the day, the risks are less when compared with medium-term strategies, therefore, an increase in leverage is acceptable. Profits are obtained only from intraday movements of instruments.
A swing trading strategy is the opening and closing of trading positions based on the momentum of the underlying currency pair, often identified by indicators.
Their trading activity usually focuses on short-term changes in the exchange rate, with all positions being closed within one to four days, so they do indeed hold overnight positions.
The goal of swing trading is to identify a general trend and then profit from swing trading within that trend. Positions are closed within one to four days, so they do hold positions overnight.
The working timeframe is 4 hours and older. Swing traders are able to profit both from the trend and from the corrections, the task is to catch the movements in time.
News traders know that this is a rather risky job. The point is in key news events, the publication of important economic data.
Traders hunt for the volatility that news gives, a kind of energy for movement. They open trades, sometimes simultaneously in both directions, just before the news comes out and try to catch that very movement. Such strategies do not involve opening overnight positions.
Trades are opened as at the time of the news release, a little earlier, so you can open a little later to take advantage of the wide volatility that may occur.
A trend trading strategy has more medium and long term priorities. Includes the use of technical trading analysis to identify patterns, understand the trend, and find places to open a trade.
Open positions only along the trend, against the market in this system, traders do not trade
Working time frames for trend traders are daily, weekly and monthly, on which they conduct technical analysis, often use long-term patterns, as well as fundamental analysis to get ideas and forecasts. Traders of this category do not particularly react to the spread, therefore, they have the opportunity to trade a wider number of currency instruments.
Traders, if you like this idea or have your own opinion about it, write in the comments. I will be glad👩💻
Real world example of the three market phasesReal world example of the three market phases
Large sale of assets by speculators. Understatement of prices.
The Broker's motivated team, different client departments begin to motivate their clients to buy an undervalued tool for forecasting the rise and earnings, therefore, in anticipation of the rise, consolidation begins
The limit level for selling from a large speculator. Range maintenance
The brokerage team begins to work actively and recommend the stop zone based on the opinion of their clients regarding risk management, namely risk / reward. The result is a large number of sales orders.
Large speculators manipulate the market to confuse ordinary traders, and then sharply reduce the price of the instrument and knock out the stop levels of the players.
After taking the necessary liquidity, collecting a large number of buy orders at the exit price, large speculators begin the phase of profit taking
The more patient, outside traders speed up the move, catch up with the runaway move and make a small profit.
Traders, if you like this idea or have your own opinion about it, write in the comments. I will be glad👩💻
Education: Why you should NOT buy or trade signals!" Give a Man a Fish, and You Feed Him for a Day. Teach a Man To Fish, and You Feed Him for a Lifetime " - unknown origin *
🔴 What does this quote mean, and how does it related to trading (signals)?
The quote means that you can indeed resolve an issue by providing a hungry man a fish, serving his immediate need, but if you really want to help him you should teach him to become self-sufficient.
Similarly, while providing a signal, you can provide the signal to a winning trade to someone, but if you really want to help him, you teach him how to analyze the market and become self-sufficient in trading.
🔴 DISCLAIMER
This post will probably get some backlash from users who provide signals, be it paid or not, because it goes against their "business model" and might reduce their revenues in one way or the other. But that is fine by me, this is my personal opinion, and I advise every single reader of this publication to draw his own conclusions.
🔴 What are trading signals?
Trading signals at a minimum constitute of an entry price and a direction. Example : buy $Gold at 1825 USD.
Some (but not all) signal providers also give you a Profit Target and/or a Stop Loss . They give you actionable information on where to open a trade, which direction you should trade and sometimes when you should close the trade.
🔴 That's easy! Nothing wrong with that, it can make me money, right! Right???
Yes, it can, you are absolutely right that you can make money off a trading signal.
However, there are a couple of questions that you need to ask yourself :
How many trades, what percentage, can you expect to win?
If not provided, where should you take profit or cut your losses?
What is the reason for entering the trade?
What confidence do you have in the trade if you're just following someone elses instructions?
What if you lose 10 trades in a row, was this expected?
Who is responsible for your losses? You, or the signal provider?
What do you learn from trading signals?
What are the emotions you have to go through during the trade?
What if your signal provider stops?
🤔 Additionally the question arises why the signals are provided.
Is it altruism? Or is it conceivable that the provider does not make enough by trading and wants to top-up his gains(?) by selling signals. Income from trading is not guaranteed, when you sell signal you make your profit the moment the transaction takes place, independent of the outcome of the trade. That's guaranteed 💰.
And yes, people will be unhappy and no longer order the providers' services, but there are always new "potential buyers" coming to the financial markets.
💡 " Trading signals does not guarantee your income, it guarantees the signal providers' income. "
🔴 OK, fair enough, but what should I do if I don't know how to trade?
Allow me to be blunt here, if you don't know how to trade, you should either learn how to trade, either keep your money in your pockets.
Ask yourself why you want to trade? What is the end goal?
► If you say that you just want to make some extra money, then taking up a 2nd job is a much more reliable source of income than throwing your money at the markets based on something someone else said, don't you agree?
Other than that, as said earlier, if you depend on a signal provider, that income (if any) will disappear the moment the signals do.
► If you want to become a trader, become financially independent, get rid of your daytime job, get out of that hamster wheel, I strongly suggest you invest the time and effort to learn how to trade for yourself.
🔴 MY ADVICE
Don't be lazy
Don't trade signals and
Learn how to trade
Hustle
Grind
Fail
Learn from your mistakes
Fail again
Don't give up
Don't expect to become rich overnight
Keep learning
Do your own research and analysis
Rinse and repeat until you succeed ....
That, imho is the only way you will achieve the financial goals you have set for yourself and feel good about it...
So, let's take our initial proverb and give it a trader twist:
👉🏻👉🏻👉🏻 " Give a Man a Signal, and You Could Feed Him for a Day. Teach a Man To Trade, and You Feed Him for a Lifetime " - Nico Muselle
💥The decision is all yours, if you want it bad enough, you can do it!💥
🔴 Useful information
This TradingView article gives you some additional information on the things you shouldn't do ... Give it a read before you hand out your hard earned money.
www.tradingview.com
Do you agree? What is your view on signals?
Let's open the discussion in the comments below ...
✌🏻 PEACE OUT
Liked this post ? "Smash that like button!" 👍 - follow for more educational posts and alerts 🔔 when a new one is published.
Oh, and maybe you'll like the related ideas linked below as well?
Thank you for your visit! 🙏
Trade from 26th March - USDCADSell Trade USDCAD - Profit
I have expected that it will go more down without a pullback up and then again down
So i have closed it earlier after i have seen the change of beaviour to dont loose
We never know what the market makes, we only judge the market and take the decision with the higher probability
Follow me and check my results in:
en.zulutrade.com
How to Analyse Chart Patterns (Tutorial 1) - Forex - CryptoHere are 2 very common example of how to analyse the graphs and predict the future movements of the price. Many times the big moves happen thanks to new, but no matter what they respect the graphs.
Second graph is very interesting as you will be able to find it in both BTCUSD and EURUSD, signalling that the pairs are analysed and traded by the same people. These patterns apply to FX, Crypto, Stocks and Indices.
Message me if you have any ideas that you might be interested to discuss or for other advices.
_____________________
A product of T O T O Capital