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TBLT A Lesson Learned Last week around this same time I posted an idea on TBLT asking how traders get trapped in these gaps . I had just started to study gaps so this actually played out perfectly and answered my own question. I wanted to know how traders get trapped in these situations where you go into the weekend confident in your decision, only to watch everything come crashing down on you Monday morning. The way this played out couldn't have been more perfect. TBLT is considered a penny stock for those of you who are also new to the market, and not totally hip on your terminology yet. Any stock share with a price of $10.00 and below is considered by most professional traders to fall under the penny stock designation. Penny stocks are considered extremely volatile in the trading community for many reasons; one example being that the low Market Cap of these companies, and the low share price make these prime candidates for pump and dump schemes. Penny Stocks are also at higher risk of having trading halted by regulators during an active Market session. This can lead to substantial losses. There are plenty of other reasons that make them a high risk, but these two are most important in my opinion. Now that you have the back story, I'll make this part short and sweet. What went wrong was the perfect storm of me dabbling in an extremely volatile asset class, not following my trading plan by setting a stop loss to mitigate my risk if things went in the opposite direction; which is exactly what happened, and buying so close to an Earnings report that ended up being less than stellar. ( That last part about the earnings report was actually a surprise to me. They are a small company, but they had great numbers with their online sales, and the tools are decent. I actually use some of them ). Anyway, it's all relevant to what led me to enter the trade, so that's why it's here. I used multi timeframe analysis of the Daily & 1 hour time frames for this particular trade. I entered using the hourly candlestick pattern and bought on the open of the one hour candle. I apologize for the unprofessional graphics, but I'm limited to an Android phone for all of this. I will see if I can edit this on a PC when I get the chance so I can add the other graphic. I have the Daily & 1 hour charts marked up, but I could only capture screenshots due to being limited to my mobile device. Back to business : As the old saying goes ; A picture tells a thousand words. My Swing Trade has now turned into a longer term hold tying up capital and leaving me in the red for the time being. I hope this helps other new traders understand that technical analysis is an extremely deep subject, and that sticking to your plan is of the utmost importance. If I had done this properly , I could be buying the dip, or moving on to another trade instead of holding a bag. Leave a comment below, and let me know what you think about my explanation. Let me know if this has ever happened to you? Thankfully I did stick to only investing a small percentage of capital per trade, so it's not all bad news. *Not financial advice. For educational and entertainment purposes only.
TEducation
by bm8ter
3
🌐 How not to be stuck in your position?🌐 How not to be stuck in your position? SIGNAL + TIMING = SUCCESS You asked me how not to be stuck in one long-term, seemingly losing position and how not to miss opportunities. You have to consider at least two dimensions of timing: zone and scale. What is a zone? - The time-zone of my signals is UTC, and so, you have to translate. What is the scale? - The scale of my signals varies from 1-minute to 3-month, and thus, you have the following kinds of positions. Top traders have at least three kinds of positions: base, intra-day, and long-term. What is your base position? - It is the base currency within which you feel most comfortable holding most of your capital, and it is usually USDT or BTC. What are the guidelines for intra-day and long-term positions? - Professionals often put up to 5% of their base per intra-day position, and they rarely use more than 25% overall of their base at one moment. - When you make a profit on an intra-day position, you put a part of it (for example, 50% of the profit) into your long-term trade, and you return the rest to the base. - This way, you manage your risks, and both your intra-day positions and long-term position will grow. +1 So, why can't an automated system simply do it for you? You have got your accounts, your assets, and your responsibility. Exchanges do not allow a bot to read how much capital you have in total, nor how your investment breaks down to different assets and accounts. Only you have got this information, and only you hold the right to manage your account.
BITSTAMP:BTCUSDEducation
by Elysian_Mind
1
Mind the Indian Stock Market!The Indian Market has seen some an insane frenzy of bullishness in recent weeks. Favourable PMI numbers and overjoy about expanding economies have led the gamblers to go north like nobody's business in the last few days. Errh.. they forgot about supply chain bottlenecks. 🙄 The interesting thing about this position is what it 'makes'' you think - or is that 'feel'? I don't know what's going to happen. Let me say that again, I don't know what's going to happen. The reality is that the Indian economy is in dire straits at the grass roots. The further excitement travels from reality, the greater is the eventual pain. For new traders, have you noticed that when you get stopped out price tends to reverse just a few points after? Then you shout expletives when price follows your original direction and you get left behind. It's soooo infuriating! 😠👿 Why? Price has a higher probability of reversal at peaks and troughs on any time frame. The trouble is setting your stop loss with enough elasticity to catch it, whilst avoiding FOMO. This is not advice - it is experience shared. (Mind my brutal disclaimer below). Price usually reverses at a point much greater than we anticipate, even after all the technical analysis. That's been happening a whole lot, especially in the pandemic period. So - positions like this one on the daily Indian charts are very difficult to short. Keep in mind that shorting is always more difficult in Stock indices than going long. The great thing about short-selling indices (around this time) is that if they drop, they have a long way to go. So no rush. Small position sizes with very wide affordable stop losses are one answer to the ridiculous volatility. When a deep trend develops on the 15 to 30 min time frame that's the one to watch. I don't fight a daily time frame! Both the Indian and German markets have recently decided to track the USTECH100. That's pretty dangerous gambling. How? When the crash (>50% correction) starts we know it's going to start with TECH. P/E ratios are wild in the tech sector, and totally unrealistic. But of course it depends on which guru you believe. Some recall what happened in the Dotcom era. Some have forgotten. Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which have a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
I
by Captain_Walker
3
How to Stay in a Risk Defined Trade: AMZNNASDAQ:AMZN tanked on earnings down to a Support level I liked for a long trade. I talked about the Support level and drew up the trade during my Livestream last Friday. This morning's price action breached the Earnings low and I was made aware by an alert. It did not trigger my Stop Loss though. A lot of new traders may try to play bottoms such as this but not have clearly defined risk. This can prove disastrous if price does break the level and continues to move against the trade. One way that a trader can define their risk is to use a multiple of Average True Range (ATR). ATR is a measure of the average range of a user defined number of bars in history. It is a great tool for assessing the volatility of the instrument being traded as it will be relative and responsive to the specific instrument. An instrument that moves in a tight range for a period of time will have a low ATR and an instrument that moves a lot will have a high ATR. If the instrument experiences a price movement that exceeds the recent ATR it can often signal a significant change. Using ATR for setting Stop Losses defines the risk at the start of the trade so that the position size can be calculated and standardized. Rules such as this are important for standardizing a strategy and making it consistently profitable. In the example of Amazon I used a Stop Loss that was set 65% of ATR below the Earnings Low. This allowed price to do a false breakout of the low but left enough space for the trade to remain active.
NASDAQ:AMZNLong
by norok
1
Manage your emotionsTrading requires focus. It is crucial for traders to know exactly what to do to control their emotions while trading. It is also important to know when to accept a loss and move on. Here are 10 tips from the pros to manage your emotions while trading: 1) Manage your stops carefully. A cautious approach to stops and limits will keep you from making rash decisions. It hurts to get a trade stopped out, but over time you will save money on losses. Your trading journal can give you useful comparisons on levels for stops. 2) Don’t marry your positions. It’s easy for a trader to get stubborn, and to hold on to a trade just because he ‘hopes’ it will turn around. Close down a bad trade as soon as possible, take your loss and move on. Your trading journal will suggest the next move. 3) Follow each trade with a break. Trading goes on at a rapid pace, so don’t get caught up in the action. Take a moment to think about something else, and then come back and deliberate. Now look at your trading journal to get the next idea. 4) Set a fixed point at which you stop. After three, four, five or whatever number you choose, stop for a good long break. It’s when one trade follows another that most mistakes happen. Consult your trading journal and review your strategy. 5) Don’t keep track of profit and loss. Doing the math on your earnings will only get your emotions working. Concentrate on your trading strategy, and review your trading journal to develop it. Then, at the end of the trading day, you can check out how well or poorly you did. 6) Keep your mind on the plan. Don’t let the results of a few trades change your overall strategy and approach. Stick to what you have learned and what you have planned – use your trading journal to develop your next moves. 7) Don’t confuse prudence with fear. You want to trade prudently, using logic and reason. This may make you hold off on a trade. But make sure that prudence, and not fear, is behind your decision. Fear can wreck your trading by keeping you from making a trade. Use your trading journal to see if the trade makes sense, follows previous wins, or if the trade just doesn’t make sense. 8) Watch out for greed. Greed can make you stay in a trade when you had planned to exit, hoping to milk it for a little more profit. Such trades risk turning out badly, just when you thought you were winning. Use your trading journal to judge the best exit points based on past behavior. 9) Don’t act on anger. When you’re angry, hold out, wait until reason takes hold. There is no worse trade than a “revenge” trade, in which a trader follows up a loss by jumping right back in to recoup. Consult your trading journal to get back on track. 10) Don’t give up. There comes a point in every trader’s life when it just doesn’t seem worth it anymore. Don’t let yourself be intimidated. Trading is tough, but you can win.
Education
by MoonBets
5
Stop Loss HuntingInstitutional investors have a profound impact on financial instruments prices because of their large volume trading activities. They can greatly impact the price of financial instruments, however making a material impact and hence decreasing liquidity to the point where there may be no one to take the other side of the trade is not something they desire. To fill their large in size orders with better price levels, Institutional investors need liquidity, they cannot just enter a trade at once, but they split trades over time and slowly have to build a position by hunting for liquidity. One of their strategic approach and the best way to get liquidity without making a material impact of the price and get filled in better price levels is Stop Loss Hunting . A stop-loss order is an order placed to buy or sell a financial instrument when it reaches a certain price with the aim to limit loss on a position or protect profits. Where do we usually place our stop orders? For a long trade example, usually we set them just below a support level, a trend line, a longer-term moving average, previous day low or a specific ATR percentage etc, which are highly predictable. Institutional investors simply need to trigger stop loss orders of thousand of traders and since a key level is borken new traders joins by entering positions, making them take trades in the wrong direction, which as a result creates a huge supply with enough liquidity to absorb Institutional investor's demand with better prices Some examples Stop Loss houting can be observed frequently
FX_IDC:XAUUSDEducation
by dgtrd
212
STOP LOSS: Your saving angelWhat is a stop loss? Why do i need to use it? Why should i listen? Stop loss is designed to limit an investor's loss, it is built FOR YOU. It's like fighting a boss without a weapon, yet there are multitudes of weapon ready to be used for you beside you. Why should i use a stop loss when my liquidation is far? MARKET VOLATILITY IS AT THE HIGHEST RIGHT NOW, not only cryptocurrency, but also stocks and commodities. The world is in shambles, and with 90% of the world experiencing a loss, we want to be in that 10% profiting from the volatility. I won't explain further how to set stop losses in binance or huobi, you can always do a simple google search or watch 2 minute videos on youtube. Literally. Sorry i cannot place any links in here. I know this is short, but long posts are generally skipped by most of the newbie traders like me. Lets hope we all can be millionaires soon. May you all and i be blessed with good luck.
Education
by cryptoneubie
3