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Learn the Harsh Truth About Success & Failure in Trading The picture above completely represents the real nature of trading: We all came here because we all wanted easy money. Being attracted by catchy ads, portraying the guys on lambos, wearing guccies and living fancy lives, we jump into the game with high hopes of doubling our tiny initial trading accounts. However, the reality quickly kicks in and losing trades become the norm. The first trading account will most likely be blown . In just one single month, 40% of traders will be discouraged and abandon this game forever. The rest will realize the fact that the things are not that simple as they seemed to be and decide to start learning. The primary obstacle with trading education though is the fact that there are so much data out there, so many different materials, so many strategies and techniques to try, so the one feels completely lost . And on that stage, one plays the roulette: in the pile of dirt, he must find the approach that works . 80% of the traders, who stay after the first month, will leave in the next 2 years. Unfortunately, the majority won't be able to find a valid strategy and will quit believing that the entire system is the scam. After 5 years, the strongest will remain. The ones that are motivated and strong enough to face the failures. With such an experience, the majority of the traders already realize how the things work. They usually stuck around breakeven and winning trades start covering the losing ones. However, some minor, tiny component is still missing in their system. They should find something that prevents them from becoming consistently profitable. Only 1% of those who came in this game will finally discover the way to make money. These individuals will build a solid strategy, an approach that will work and that will let them become independent . That path is hard and long. And unfortunately, most of the people are not disciplined and motivated enough to keep going. Only the strongest ones will stay. I wish you to be the one with the iron discipline, titanic patience and nerves of steel. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
1
DON'T Make This MISTAKE in MULTIPLE TIME FRAME Analysis Most of the traders apply multiple time frame analysis incorrectly . In the today's article, we will discuss how to properly use it and how to build the correct thinking process with that trading approach. The problem is that many traders start their analysis with lower time frames first . They build the opinion and the directional bias analyzing hourly or even lower time frames and look for bullish / bearish signals there. Once some solid setup is spotted, they start looking for confirmations , analyzing higher time frames. They are trying to find the clues that support their observations. However, the pro traders do the opposite . The fact is that higher is the time frame, more significant it is for the analysis. The key structures and the patterns that are spotted on an hourly time frame most of the time will be completely irrelevant on a daily time frame. In the picture above, I underlined the key levels on USDJPY on an hourly time frame on the left. On the right, I opened a daily time frame. You can see that on a higher time frame, the structures went completely lost. BUT the structures that are identified on a daily, will be extremely important on any lower time frame. In the example above, I have underlined key levels on a daily. On an hourly time frame, we simply see in detail how important are these structures and how the market reacts to them. The correct way to apply the top-down approach is to start with the higher time frame first: daily or weekly. Identify the market trend there, spot the important key levels. Make prediction on these time frames and let the analysis on lower time frames be your confirmation. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
1
HOW FOREX BROKERS MANIPULATE YOU TRADING? Real Example Last month, I spotted a nice trading position on NZDCAD forex pair. I shared that with my TradingView subscribers immediately after I placed the trade. Though, the price moved exactly as it was predicted, the half of the members did not make any penny from this signal, while another half made a nice profit. It happened because of one rare thing that I absolutely hate in trading. Learn about a major frustration and market manipulation in trading, that no one will tell you about. Here is the trading position that I spotted. It was a classic price action trading setup based on a double top pattern. Trade was taken on a retest of a broken neckline aiming at the closest strong support and stop loss lying about the tops. Though, initially, the market started to fall rapidly. But it reversed, not being able to reach the target. Watching that bullish rally resumes, I send the signal to my students to close the trade on entry, and I also did that personally. I felt myself quite sad that I did not mange cash out from that trade. Later on in the evening, surprisingly, I started to receive multiple thank you messages from my members that they made a good profit with that signal. How could it be? I decided to anonymously ask the members, how did they close the trade. More than half of the members replied that the trade reached take profit. Can it be possible? My TP was not reached and it was still quite far from the lowest low. Now, examine the trading setup on NZDCAD on charts of different popular forex brokers. On these 6 charts, you can see NZDCAD pair on OANDA, CAPITALCOM, IC MARKETS, ICE, FXCM, FOREX.COM brokers. While in half of the instances TP was not reached, in other half, TP was reached and the price went even lower. Why it happened? There are the rare situations in Forex trading, when the price action on one broker can be very different from another. It happens because different brokers have different liquidity providers, spreads, order execution methods and so on. That is why the selection of a good broker is so vital in trading. If you use TradingView for chart analysis, make sure that you watch all the instruments of one broker. Moreover, once you start trading your strategy, always check how the price acted with different broker quotes. If you will see a lot of instances that your tp is not hit, while on another broker it would, it will be a signal for you to change the broker. When I started learning trading, no one told be that important nuance of Forex trading. But knowing that is a very significant step in your trading journey. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
10
3 Best Trading Opportunities to Maximize Profit Potential Hey traders, In the today's article, we will discuss 3 types of incredibly accurate setups that you can apply for trading financial markets. 1. Trend Line Breakout and Retest The first setup is a classic trend line breakout. Please, note that such a setup will be accurate if the trend line is based on at least 3 consequent bullish or bearish moves. If the market bounces from a trend line, it is a vertical support. If the market drops from a trend line, it is a vertical resistance. The breakout of the trend line - vertical support is a candle close below that. After a breakout, it turns into a safe point to sell the market from. The breakout of the trend line - vertical resistance is a candle close above that. After a breakout, it turns into a safe point to buy the market from. Take a look at the example. On GBPJPY, the market was growing steadily, respecting a rising trend line that was a vertical support. A candle close below that confirmed its bearish violation. It turned into a vertical resistance . Its retest was a perfect point to sell the market from. 2. Horizontal Structure Breakout and Retest The second setup is a breakout of a horizontal key level. The breakout of a horizontal support and a candle close below that is a strong bearish signal. After a breakout, a support turns into a resistance. Its retest is a safe point to sell the market from. The breakout of a horizontal resistance and a candle close above that is a strong bullish signal. After a breakout, a resistance turns into a support. Its retest if a safe point to buy the market from. Here is the example. WTI Crude Oil broke a key daily structure resistance. A candle close above confirmed the violation. After a breakout, the broken resistance turned into a support. Its test was a perfect point to buy the market from. 3. Buying / Selling the Market After Pullbacks The third option is to trade the market after pullbacks. However, remember that the market should be strictly in a trend . In a bullish trend, the market corrects itself after it sets new higher highs. The higher lows usually respect the rising trend lines. Buying the market from such a trend line, you open a safe trend-following trade. In a bearish trend, after the price sets lower lows, the correctional movements initiate. The lower highs quite often respect the falling trend lines. Selling the market from such a trend line, you open a safe trend-following trade. On the chart above, we can see EURAUD pair trading in a bullish trend. After the price sets new highs, it retraces to a rising trend line. Once the trend line is reached, trend-following movements initiate. What I like about these 3 setups is the fact that they work on every market and on every time frame. So no matter what you trade and what is your trading style, you can apply them for making nice profits. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
7
Exploring the Main Components of a Powerful Trading Journal In one of the previous posts, we discussed the significance of a trading journal. In the today's article, I will share with you the key elements of a trading journal of a professional trader. And first, a quick reminder that a trading journal is essential for your trading success. No matter on which level you are at the moment, you should always keep track of your results. Let's go through the list of the things that you should include in your journal. 1 - Trading Instrument The symbol where the order is executed. You need that in order to analyze the performance of trading a particular instrument. 2 - Date The date of the opening of the position. Some traders also include the exact time of the execution. 3 - Risk Percentage of the account balance at risk. Even though some traders track the lot of sizes instead, I do believe that the percentage data is more important and may give more insights. 4 - Entry Reason The set of conditions that were met to open the trade. In that section, I recommend to note as much data as possible. It will be applied in future for the identification of the weaknesses of your strategy. 5 - Risk Reward Ratio The expected returns in relation to potential risks. 6 - Results Gain or loss in percentage. And again, some traders track the pip value of the gain, however, in my view, the percentage points are more relevant for studying the statistics. Here is the example of the trade on Gold: Here is how exactly you should journal the following trade: Instrumet: Gold (XAUUSD) Date: 03.07.2023 Risk: 1% Entry Reason: H&S Pattern Formation, Neckline Breakout & Retest R/R Ratio: 1.77 Results: +1.77% Of course, depending on your trading strategy and your personal goals, some other elements can be added. However, the list that I propose is the absolute minimum that you should track. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
1
HIGH Volatility Alert! Everything You Need to Know Have you ever wondered why the certain trading instruments are very rapid while some our extremely slow and boring? In this educational article, we will discuss the market volatility , how is it measured and how can it be applied for making smart trading and investing decisions. 📚 First, let's start with the definition. Market volatility is a degree of a fluctuation of the price of a financial instrument over a certain period of time. High volatility reflects quick and significant rises and falls on the market, while low volatility implies that the price moves slowly and steadily. High volatility makes it harder for the traders and investors to predict the future direction of the market, but also may bring substantial gains. On the other hand, a low volatility market is much easier to predict, but the potential returns are more modest. The chart on the left is the perfect example of a volatile market. While the chart on the right is a low volatility market. 📰 The main causes of volatility are economic and geopolitical events. Political and economic instability, wars and natural disasters can affect the behavior of the market participants, causing the chaotic, irrational market movements. On the other hand, the absence of the news and the relative stability are the main sources of a low volatility. Here is the example, how the Covid pandemic affected GBPUSD pair. The market was falling in a very rapid face in untypical manner, being driven by the panic and fear. But how the newbie trader can measure the volatility of the market? The main stream way is to apply ATR indicator , but, working with hundreds of struggling traders from different parts of the globe, I realized that for them such a method is complicated. 📏 The simplest way to assess the volatility of the market is to analyze the price action and candlesticks. The main element of the volatile market is occasional appearance of large candlestick bars - the ones that have at least 4 times bigger range than the average candles. Sudden price moves up and down are one more indicator of high volatility. They signify important shifts in the supply and demand of a particular asset. Take a look at a price action and candlesticks on Bitcoin. The market moves in zigzags, forming high momentum bullish and bearish candles. These are the indicators of high volatility. 🛑 For traders who just started their trading journey, high volatility is the red flag. Acting rapidly, such instruments require constant monitoring and attention. Moreover, such markets require a high level of experience in stop loss placement because one single high momentum candle can easily hit the stop loss and then return to entry level. Alternatively, trading a low volatility market can be extremely boring because most of the time it barely moves. The best solution is to look for the market where the volatility is average , where the market moves but on a reasonable scale. Volatility assessment plays a critical role in your success in trading. Know in advance, the degree of a volatility that you can tolerate and the one that you should avoid. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
1
How to Find Best Supply and Demand Zones/Areas in Forex & Gold In this article, I will show you the strongest supply and demand zones. These zones are called confluence zones. I will teach you to identify these areas properly and explain how to apply it in Forex and Gold trading. Let's start with a short but important theory. In technical analysis, there are 2 types of supports and resistances. Horizontal structures are supports and resistance that are based on horizontal key levels. Vertical structures are supports and resistance that are based on trend lines. A confluence supply or demand zone, will be the area of the intersection between a horizontal and vertical structures. Look at GBPJPY pair. I underlined a significant horizontal support and a rising trend line - a vertical support. We see a clear crossing of both structures. The trend line and a horizontal support will compose a narrow, contracting area. It will be a confluence demand zone. Within, with a high probability, a high volume of buying orders will concentrate, and a strong bullish movement will initiate after its test. Above is one more example of a powerful demand zone. It was spotted on a Gold chart. Now let's discuss the supply zone. There are 2 strong structures on GBPNZD: a vertical resistance - a falling trend line and a horizontal resistance. These 2 resistances will constitute a confluence supply zone. That is a powerful resistance cluster that will concentrate the selling orders. Chances will be high to see a strong bearish movement from that. There is a strong supply zone on CHFJPY that is based on the intersection of a wide horizontal resistance and a falling trend line. Supply and demand zones that we discussed are very significant. Very often, strong bullish and bearish waves will initiate from these clusters. Your ability to recognize these zones will help you to make accurate predictions and identify a safe point to open a trading position from ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
9
Harsh Truth About Forex & Gold Trading: In Books VS In Reality Most traders start their trading journey by studying theory first, reading books or taking video courses before putting these newfound skills into practice. But once they start trading on a real market, they quickly realize that things are not as straightforward as the books make them out to be. In this educational article, we will take a critical look at the difference between theoretical knowledge and practical experience. 📍And first of all, do not get me wrong. I am not trying to imply that trading books or courses are bad. Theoretical knowledge is essential for successful trading, and of course the books are the best source of that. The problem is, however, that books can be misleading . The examples in books are always tailored. When the authors are looking for the examples of the patterns, of key levels, they are looking for the ideal cases. 📍The problem becomes even worse, when one start studying the trade examples in books. And of course, the authors choose the brilliant winning trades with huge take profits and tiny stop losses. I guess you saw these pictures of "sniper" entry trades with 5/1 R/R. The inexperienced trader may start thinking that the markets are perfect and act in total accordance with the books. That all the trades that he will take will bring tremendous profits. That the identified patterns will work exactly as it was described. 📍The harsh truth is that books and courses are simply the compositions of different examples, cases and market situations. In reality, each and every trading setup is unique . The reaction of the price to the same pattern will be always different . Please, realize the fact that books are only good for acquiring the knowledge. But in order to survive on financial markets, you need the experience . And the experience will be gained only after studying thousands of real market examples in real time. 📍Here is the example of a double top pattern that we were trading with my students on AUDJPY. In books, double tops are always perfect . Once the market breaks the neckline, the price retests that and then quickly drops. So the one can set a tiny stop loss and a big take profit. However, after a retest of a broken neckline, AUDJPY bounced and the market maker was stop hunting the newbies. Our stop loss was way above the head, and we managed to survive. Even though the pattern triggered a bearish movement, the reaction of the market was far from perfect. Be prepared, that the market will much different from what you see in the books. Good luck to you! ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
4
Best Fibonacci Retracement and Extension Levels for Trading In this short article, you will learn the best Fibonacci extension and retracement levels for trading Forex and Gold. I will share with you correct settings for Fibonacci tools and show you how to use & draw Fibonacci's properly on TradingView. Best Fibonacci Retracement Levels First, let's discuss Fibonacci retracement levels. Here are the default settings for Fibonacci retracement tool on TradingView. We will need to modify that a bit. We should keep 0; 0,382; 0,5; 0,618; 0,786; 1 levels 0,382; 0,5; 0,618; 0,786 will be the best retracement levels for Forex & Gold trading. How to Draw Fibonacci Retracement Levels Properly In order to draw fib.retracement levels properly, you should correctly identify a price action leg. You should underline that from its lowest low to its highest high, taking into consideration the wicks of the candlesticks. Fibonacci Retracement of a bullish price action leg will be applied from its low to its high. 1.0 Fibonacci level should lie on the lowest lie, 0 - on the highest high. Fibonacci Retracement of a bearish price action leg will be applied from its high to its low. Best Fibonacci Extension Levels Above, you can find default Fib.extension settings on TradingView. We will need to remove all the retracement levels; 2,618; 3,618; 4,236 and add 1,272; 1,414 levels. 1,272; 1,414; 1,618 will be the best Fibonacci Extension levels for trading Gold and Forex. How to Draw Fibonacci Extension Levels Properly Start with correct identification of a price action leg. Draw the Fib.Extension levels of a bearish price movement from its high to its low . Draw the Fib.Extension levels of a bullish price movement from its low to its high. I apply the fibonacci levels that we discussed for more than 9 years. They proved its efficiency and strength in trading different financial markets. Learn to combine Fibonacci levels with other technical analysis tools to make nice money in trading. ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
2
Learn What Will Make You Profitable in Forex & Gold Trading What brings the consistent profits in trading? Talking to hundreds of struggling traders from different parts of the globe, I realized that there are the common misconceptions concerning that subject. In this educational article, we will discuss what really will make you profitable in trading. Trading Signals 🔔The first thing that 99% of struggling traders are looking for is signals. Why damn learn if you can simply follow the trades of a pro trader and make money?! The truth is, however, is that in order to repeat the performance of a signal provider you have to open all your trading positions in the same exact moment he does. (And I would not even mention the fact that there will be a delay between the moment the provider opens the trade and the moment he sends you the signal) Because the signal can be sent at a random moment, quite often it will take time for you to reach your trading terminal and open the position. Just a 1-minute delay may dramatically change the risk to reward ration of the trade and, hence, the final result. Expert Advisors 🤖The second thing that really attracts the struggling traders is trading robots (EA) . The systems that trade automatically and aimed to generate consistent profits. You simply start the program and wait for the money. The main problem with EA is the fact that it requires constant monitoring . It can stop or freeze in a random moment and may require a reboot. Moreover, due to changing market conditions, the EA should be regularly updated. Without the updates, at some moment it may blow your account. Trading robot is the work : trading with the robots means their constant development, monitoring and improvement. And that work requires a high level of experience: both in coding and in trading. Technical Indicators 📈The third thing that struggling traders are seeking is the "magic" indicator. The one that will accurately identify the safe points to buy and sell. You add the indicator on the chart, and you simply wait for the signal to open the trade. The fact is that magic indicators do not exist. Indicator is the tool that can be applied as the extra confirmation. It should be applied strictly in a combination with something else, and its proper application requires a high level of expertise in trading. Luck in Trading 🍀The fourth thing that newbie traders seek is luck. They open the trade, and then they pray the God, Powell, Fed or someone else to move the market in their favour. And yes, occasionally, luck will be on your side. But relying on luck on a long-term basis, you are doomed to fail. But what will make you profitable then? What is the secret ingredient. Remember, that secret ingredient does not exist. In order to become a consistently profitable traders, you should rely on 4 crucial elements: trading plan, risk management, discipline and correct mindset. 🧠What is correct mindset in trading? It simply means setting REALISTIC goals and having REALISTIC expectations from the market and from your trading. 📝A trading plan is the set of rules and conditions that you apply for the search of a trading setup and the management of the opened position. Trading plan will be considered to be good if it is back tested on historical data and then tested on demo account for at least 3 consequent months. ✔️In order to follow the plan consistently, you need to be disciplined . You should be prepared for losing streaks, and you should be strong enough to not break once your trading account will be in a drawdown. 💰Risk management is one of the most important elements of your trading plan. It defines your risk per trade and your set of actions in case of losses. Even the best trading strategies may fail because of poor risk management. Combining these 4 elements, you will become a consistently profitable trader. Remember, that there is no easy way, no shortcut. Trading is a hard work to be done. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
9
Top 5 Tips to Increase Your Profits in Trading In this educational article, I will share with you very useful tips how to improve your profitability in trading the financial markets. 1. Decrease the number of financial instruments in your watch list. ⬇️ Remember that each individual instrument in your watch list requires attention. The more of them you monitor on a daily basics, the harder it is to keep focus on them. In order to not miss early confirmation signals and triggers, it is highly recommendable to reduce the size of your watch list and pay closer attention to the remaining instruments. 2. Avoid taking too many positions. ❌ For some reason, newbie traders are convinced that they should constantly trade and keep many trading positions. Firstly, I want to remind you that the management of an active position is a quite tedious process that requires time and attention. Therefore, more positions are opened, more time and effort is required. Secondly, if the newbies can not spot a good setup, they assume that they are obliged to open some positions and they start forcing the setups. Remember, that in trading, the quality of the trading setup beats the quantity. I advise taking less trades, but the better ones. 3. Let winners run if the market is going in the desired direction. 📈 Once you caught a good trade and the market is moving where you predicted, do not let your emotions close the trade preliminary. Try to get maximum from your trade, closing that only after the desired level is reached. 4. Open a trade after multiple confirmations.✅ Analyzing a certain setup remember, that more confirmations you spot, higher is the accuracy of the trade that you take. In order to increase your win rate, it is recommendable to wait for at least 2 confirmations. 5. Don't trade on your cellphone. 📱 A good trade always requires a sophisticated analysis that is impossible to execute on the small screen of the cellphone. A lot of elements and nuances simply will not be noticed. For that reason, trade only from a computer with a wide screen. Relying on these tips, you will substantially increase your profits. Take them into the consideration and good luck to you in your trading journey. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
17
Where & How to Draw Strong Support and Resistance Lines & Zones In this article, I will teach you how to draw support and resistance. We will discuss support and resistance lines, levels, zones. You will learn where and how to find it properly with simply technical analysis technique that works on forex, gold or any other financial market. First, let me note that the most reliable time frame for support and resistance analysis is the daily . The structures that you will find there will be appropriate for day trading, scalping and swing trading. Once you open a daily time frame, you should choose a correct perspective . Because this t.f lets you see the price action even for the past couple of years. You need to see the market movement for the last 2 months . It is more than enough to identify the recent key levels. Above is AUDUSD on a daily. We see the price history for 2 months. In order to identify significant supports and resistances, simply find the levels - the highs and lows that the market respected in the past and from where important movements started. These are all such highs and lows that meet the criteria. When I do the support/resistance analysis, I prefer to perceive it as clusters - the zones , taking into consideration the candle closes as well. A support zone will be based on the level of the critical low and the lowest closest candle close. A resistance zone will be based on the level of the high and the highest closest candle close. Following such a rule, here are the zones that I identified. All the clusters that are identified will be applied as trading zones. Within the supports, we look for buying opportunities. While the resistances will be used for selling . Depending on your trading style, and you choose a proper signal before you execute the trade. Execute support and resistance analysis with care and attention, because it is the absolute basis of any technical analysis strategy. With incorrect key levels identification, even the best trading strategy will fail . I hope that the method that I showed you will help you in your trading journey. ❤️Please, support my work with like, thank you!❤️
FX:XAUUSDEducation
by VasilyTrader
8
Leverage Your Way to Trading SuccessGood morning traders! Today we're breaking down one of the most powerful yet misunderstood concepts in trading - leverage and margin. Think of this like the gym; leverage is your workout equipment, allowing you to lift more than you could with just your body weight. Margin, on the other hand, is like your gym membership fee; it's what you pay to access that equipment. Understanding Leverage and Margin -Leverage: In trading, leverage is about using a small amount of capital to control a much larger position. It's like using a barbell - it amplifies your strength, but if you're not careful, you can hurt yourself. -Margin: This is the initial deposit required to borrow the "barbell." It's your skin in the game, ensuring you don't just run off with the equipment without working out. The Power of Leverage -Amplified Returns: Just like lifting weights can give you bigger muscles faster, leverage can significantly increase your returns if the market moves in your favor. -Access to Bigger Plays: With leverage, you can dive into opportunities that would otherwise be out of your financial reach, like taking on a much heavier weight than you could lift solo. The Risks You Must Navigate -Magnified Losses: Here's where the gym analogy gets real - if you drop that heavy barbell, you're going to feel it. In trading, leverage can make small losses big ones if the market goes against you. -Margin Calls: If your account balance dips below the required level, it's like the gym calling you to say, "Hey, you need more money for that membership!" You either add funds or have to stop using the equipment (close positions). -The Temptation to Overdo It: Just like in the gym, where you might want to lift too much too soon, in trading, leverage can tempt you to overtrade, leading to exhaustion or injury (financial losses). How to Lift with Leverage Smartly -Set Stop-Loss Orders: This is like having a spotter in the gym. Decide beforehand how much weight (loss) you can handle before you need help (exit the trade). -Only Use What You Can Afford to Lose: Never work out with weights that could crush you if they fall. Only use leverage on money you're prepared to part with. -Know Your Limits: Understand how much margin you need to keep your positions open without getting a surprise bill from the gym. -Position Sizing: Start small, like beginning with lighter weights before moving to the heavy stuff. Even with leverage, manage your trade sizes wisely. -Keep Educating Yourself: Just as you'd learn new exercises or techniques in the gym, keep learning about markets and trading strategies. A Gym Session Example Imagine you've got $1,000 to invest, but with leverage, it's like you're trading with $10,000. If the market moves up by 5%, you're not just making a small profit; you're looking at a 50% return on your initial investment. But if it drops by 5%, you're facing a 50% loss, which could knock you out of the gym if you're not ready. Wrapping Up Leverage and margin are like your gym gear - they can make you stronger but only if used correctly. If you're struggling to understand this concept, send me a DM - more than happy to help. If this article helped you, please boost, share, and comment; I truly appreciate it. Kris/Mindbloome Exchange Trade What You See
NYSE:GMEEducation
by Mindbloome-Trading
THE TYPICAL WEEK OF A FULL-TIME TRADER In this educational article, I will teach you how to properly plan your trading week. And how a week of a full-time trader looks. Sunday. While the markets are closed , it is the best moment to prepare the charts for next week. First of all, charts should be cleaned after the previous trading week: multiple setups and patterns become invalid or simply lose their significance and their stay on the charts will only distract. Secondly, key levels: support and resistance, supply and demand zones and trend lines should be updated. Similarly to patterns, some key levels become invalid after a previous week, for that reason, structures should be reviewed . Monday. Analyze the market opening, go through your watch list and check the reaction of the markets. Flag / mark the trading instruments that you should pay a close attention to. Set alerts and look for trading setups. Tuesday. Wednesday. Thursday. If you opened a trading position, keep managing that. Pay attention to your active trades, go through your watch list and monitor new trading setups. Friday. Assess the entire trading week. Check the end result, journal your winning and losing trades. Work on mistakes. Decide whether to keep holding the active position over the weekend or look for a way to exit the market before it closes. Saturday . Stay away from the charts. Meditate, relax and chill while the markets are closed. Trading for more than 9-years, I found that such a plan is the optimal for successful full-time / part-time trading. Try to follow this schedule and let me know if it is convenient for you. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
10
Learn What is Confirmation Bias | Trading Psychology Basics In this educational article, we will discuss one of the most common cognitive errors of newbie traders - a confirmation bias. In order to better understand that term, I want to start with the example: Let's say that after doing some research, you are highly convinced that Bitcoin is bullish and that it is a decent investment. You decide to buy that from 90.000 level, expecting the exponential growth. Instead of growing, however, the market starts falling rapidly. Rather than closing your position in loss, you decide to do a new research and execute the analysis, you start looking for the proof of your pre-existing beliefs. You completely neglect the voices of Bitcoin sceptics and ignore bearish clues on the price chart. You consider only the facts that support a bullish outloo k, not letting you accept the other point of view. You become a victim of a confirmation bias. Unfortunately, such a psychological trap frequently prevents a closing of a trading position in time, leading to substantial losses. Confirmation bias is a common psychological error that makes a subject overvalue the information that upholds his existing beliefs and undervalue the opposing one. Here are the most common symptoms of that trap: 1️⃣One is neglecting the objective facts. 2️⃣One is interpreting information in a way to support the existing beliefs. 3️⃣One is considering only the facts that conform with his point of view. 4️⃣One is completely ignoring the information that challenges his beliefs. The only way to beat a confirmation bias in trading, is to learn to analyze the market from sellers' and from buyers' perspective . Your task is to compare the view of the 2 sides, and pick the one that is stronger, holding in mind the fact that everything can change. You should always remember of the changing nature of financial markets and be ready to always reassess your views. ❤️Please, support my work with like, thank you!❤️
Education
by VasilyTrader
1
How to Trade Christmas and New Year Winter Holidays As the winter holidays are already around the corner, you should know exactly when to stop trading and close your trades, and when to resume. In this article, you will learn how Christmas and New Year holidays affect the financial markets and I will share with you my trading schedule. First, let's discuss how winter holidays influence the markets. Winter holidays lead to a dramatic reduction in trading volumes. Many traders and investors take vacations in that period. Major financial institutions, banks, hedge funds often operate with reduced staffing and early closes or are completely close for holidays. All these factors inevitably lead to the diminished trading activity. Look at the schedule of official banking holidays in many countries. Since Tuesday 24th, the banks are officially closed in Europe, UK, USA and so on. But why should you care? If you have free time, why can't you continue trading? Even if you trade technical analysis, you should admit the fact the fundamentals are the main driver for significant price movements. One of the major sources of high impact fundamentals is the economic news releases in the economic calendar. Look at the economic calendar. You can see that the last day of high impact news releases will be Friday, December 20th. After that, the calendar is completely empty. The absence of impactful fundamentals will inevitably make the markets stagnate, making trading very boring. Above is the EURUSD price chart with ATR technical indicator (the one that measure the market volatility). We see a clear drop in volatility during a winter holiday season. You can behold a similar pattern on Gold chart. With the big politicians taking vacations during the holidays season, we tend to see the local easing of geological tensions accompanied by a lack of significant foreign and domestic policy actions and announcements. That's the US congressional calendar. There are no sessions since December 23rd. But there is one more reason why you should not trade during winter holidays. The absence of big players on the market will decrease the overall trading volumes - the liquidity. Lower liquidity will unavoidably increase the bid/ask spreads. The widened spreads will make trading more costly, especially if you are scalping or day trading. And when should you resume trading? It always depends on how actively the markets wake up after holidays. The minimal starting day will be January 6th. I usually do not trade this week and just watch how the markets starts moving. I prefer to begin my trading year from Monday next week, the January 13th. Holidays seasons will be the best period for you to do the back testing and learning. Pick a trading strategy that you want to trade with in a new year and sacrifice your time to back test it on different instruments. Learn important theory and various techniques, relax and prepare your self for a new trading season. Have a great time, traders! ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
13
Comparing Full Time Trading and Full Time Job Hey traders, In this educational article, we will compare full-time trading and full-time job . THE MONEY And I guess, the essential thing to start with is the money aspect. Full-time job guarantees you a stable month-to-month income with the pre-arranged bonuses. In contrast, trading does not give any guarantees. You never know whether a current trading month will be profitable or not. Of course, the average annual earnings of a full-time trader are substantially higher than of an employee. However, you should realize the fact that some trading periods will be negative, some will be around breakeven and only some will be highly profitable. Sick-leave & Vacations In addition to a stable salary, a full time job usually offers a paid sick-leave and vacation , while being a full-time trader, no one will compensate you your leaves making the position of an employee much more sustainable. Office Being an employee, you usually work in an office with the fixed working hours . Taking into consideration that people often spend a quite substantial time to get to work and then to get home, a full-time job typically consumes at least 10 hours, not leaving a free-time. In contrast, full-time traders are very flexible with their schedule . Even though they often stick to a fixed working plan, they spend around 3-4 hours a day on trading. All the rest is their free time, that they can spend on whatever they want. Moreover, traders are not tied to their working place. They can work from everywhere, the only thing that they need is their computer and internet connection. No Boss Traders normally work alone. The main advantage of that is the absence of a subordination . You are your own boss and you follow your own rules. However, such a high level of freedom breeds a high level of personal responsibility . We should admit the fact that not every person can organize himself. In addition to that, working alone implies that you are not building social connections and you don't have colleagues. Being an employee, you are the part of a hierarchy . You usually have some subordinates, but you have a supervisor as well. You are constantly among people, you build relationships, and you are never alone. There is a common bias among people, that full time trading beats full time job in all the aspects. In these article, I was trying to show you that it is not the fact. Both have important advantages and disadvantages . It is very important for you to completely realize them before you decide whether you want to trade full time or have a full time job.
OANDA:XAUUSDEducation
by VasilyTrader
1
Learn How to Avoid Margin Call in Trading Hey traders, In this educational article, I will share with you 5 simple tips that will help you not to blow your trading and avoid margin call. 1️⃣ Always Use Stop Loss. Let's start with the obvious - with the stop loss order. Never ever trade without that. Before you open your trade, plan in advance its placement, stick to it once the position becomes active and never remove it. 2️⃣ Manage Your Position Sizes I know that most of you are trading with a fixed lot. That is a bad habit. You should measure the lot size for each trading position you take. You should define in advance the risk percentage you are willing to lose per trade and calculate the lot sizes for your trades accordingly, then. 3️⃣ Avoid Taking Too Many Positions Remember that in trading, quantity does not imply quality. The more trades you take, the harder it is to manage each position individually. I would suggest opening maximum 5 trades per day and holding no more than 8 trades simultaneously. 4️⃣ Avoid Trading Too Many Markets The wider is your watch list, the harder it is to focus on each individual element inside. Do not try to control as many markets as possible, instead, narrow your watch list and concentrate your attention on your favorite trading instruments. 5️⃣ Remember About Volatility The more volatile is the market that you trade, the harder it is to trade it and the bigger stop losses you need to keep your positions safe. Remember, that the volatility is the double-edged sword. It can bring substantial profits, but it can also blow your entire account in a blink of an eye. Following these 5 simple rules, you will make your trading much safer. Study them and add them in your trading plan. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
2
Learn Best Time Frames For Scalping Any Forex Pair I am trading forex with top-down analysis for many years. In this article, I will teach you powerful combinations of multiple time frames for scalping any currency pair. For scalping financial markets with multiple time frame analysis, I recommend applying 3 time frames: 4H, 15 minutes and 5 minutes time frames. 4H time frame will be applied for trend and structure analysis. On a 4H time frame, you should identify the direction of the market and significant supports and resistance. Key supports in a bullish trend will be applied for buying the market. While key resistances will be applied for counter trend trading. Above is USDJPY chart, 4H time frame. The trend is bullish and I have underlined important historical structures. Key resistances in a bearish trend will be applied for selling the market. While key supports will be applied for counter trend trading. Look at a structure and trend analysis on EURUSD on a 4H time frame. 15 minutes and 5 minutes time frames will be applied for confirmation, entry signal and trade execution. The logic is that once you identified key levels on a 4H time frame, you are patiently waiting for the test of one of these structures. Once one of the key levels is tested, you start analyzing 15 minutes and 5 minutes time frame and look for a signal there. What should be the signal? It can be a specific candlestick pattern, price action pattern, some signal from a technical indicator or some other stuff. Personally, I look for a price action pattern. I am looking for a bearish price action pattern on a 4H resistance and a bullish price action pattern on a 4H support. Look at GBPUSD. The pair is trading in a bearish trend on a 4H time frame, and it tests a key horizontal resistance. On 15 minutes time frame, we see a strong bearish price action signal. Head and shoulders pattern formation and a bearish breakout of its horizontal neckline. That will be our strong scalping short signal. If you sell the market in a bearish trend on a 4H from a key resistance, you can anticipate a bearish movement to the closest 4H support. Look how nicely GBPUSD dropped after a strong bearish confirmation of 15 minutes time frame. In that case, we did not apply 5 minutes time frame in our analysis, keep reading and I will explain when we apply 5 minutes time frame for scalping. Above is USDCAD. On a 4H time frame, I executed trend and structure analysis. We see a test of a key support in a bullish trend. At the same time, no pattern is formed on 15 minutes time frame after a test of structure. In such a situation, analyze 5 minutes time frame. If there is no pattern on 15m, probabilities will be high that the pattern will appear on 5m. On 5 minutes time frame, the pair formed the ascending triangle formation. A bullish breakout of its neckline is a strong bullish signal and confirmation for us to buy. If you buy the market in a bullish trend on a 4H from a key support, you can anticipate a bullish movement to the closest 4H resistance. You can see that after our confirmed bullish signal, the price went up to Resistance 1. Both trading opportunities that we discussed are trend following ones. Remember that the trades that are taken against the trend are riskier and have lower accuracy. For that reason, if you are a newbie trader, strictly trade with the trend! Good luck in scalping with multiple time frame analysis! ❤️Please, support my work with like, thank you!❤️
Education
by VasilyTrader
2
Fibonacci Retracements: Finding Key Levels the Easy WayIn this video, I’ll walk you through how I use Fibonacci retracements to spot those key pullback levels where price might bounce and keep trending. It all comes from an old-school math genius named Leonardo of Pisa (aka Fibonacci), but don’t worry – no crazy math here, just practical trading tools. The main levels I focus on? 38.2%, 50%, and 61.8%. IF price holds at one of these levels, THEN it’s a good sign the trend could keep going. IF NOT, THEN I stay ready for a deeper pullback. Using this tool helps me stay ahead and manage trades with more confidence. Your Turn: Here’s a fun exercise – draw Fibonacci retracements on different timeframes, from the weekly all the way down to the 5-minute chart. Check how the levels overlap or line up. Those overlaps, or confluences, are where some of the best trades happen! If this clicks with you, hit like, drop a comment, or follow – I’ll keep sharing more tips to help you crush the markets! Mindbloome Trading Trade What You See
Education
by Mindbloome-Trading
2
Hidden Costs of Trading You Must Know In this educational article, we will discuss the hidden costs of trading. 1 - Brokers' Commissions Trading commission is the brokers' fee for opening a trading position. Usually, it is calculated based on the size of the trade. Though most of the traders believe that trading commissions are too low to even count them, the fact is that trading on consistent basis and opening a couple of trading positions weekly, the composite value of commissions may cut a substantial part of our profits. 2 - Education Of course, most of the trading basics can be found on the Internet absolutely for free. However, the more experienced you become, the harder it is to find the materials . So you typically should pay for the advanced training. Moreover, there is no guarantee that the course/coaching that you purchase will improve your trading, quite often traders go through multiple courses/coaching programs before they become consistently profitable. 3 - Spreads Spread is the difference between the sellers' and buyers' prices. That difference must be compensated by a trader if one wished to open a trading position. In highly liquid markets, the spreads are usually low and most of the traders ignore them. However, being similar to commissions, spreads may cut the substantial part of the overall profits. 4 - Time When you begin your trading journey, it is not possible to predict how much it will take to become a consistently profitable trader. Moreover, there is no guarantee that you will become one. One fact is true, you should spend a couple of years before you find a way to trade profitably, and as we know, the time is money. More time you sacrifice on trading, less time you have on something else. 5 - Swaps Swap is the fee you pay for transferring a position overnight . Swap is based on a difference between the interests rates of the currencies that are in a pair that you trade. Occasionally, swaps can even be positive, and you can earn on holding such positions. However, most of the time the swaps are negative and the longer you hold your trades, the more costly your trading becomes. The brokers' commissions, spreads and swaps compose a substantial cost of our trading positions. Adding into the equation the expensive learning materials and time spent on practicing, trading becomes a very expensive game to play. However, knowing in advance these hidden costs, the one can better prepare himself for a trading journey.
OANDA:XAUUSDEducation
by VasilyTrader
5
Never Trade Without Stop Loss! Hey traders, Talking to many struggling traders from different parts of the world, I realized that the majority constantly makes the same mistake : they do not set a stop loss . Asking for the reason why they do that, the common answer is that these traders consider the manual position closing to be safer, implying that if the market goes in the opposite direction, they will be able to much better track the exact moment to cut loss. In this article, we will discuss why it is crucially important to set a stop loss and why it is the number one element of your trading position. What is Stop Loss? Let's discuss what is a stop loss . By a stop loss , we mean a certain price level where we close our trading position in loss. In comparison to a manual closing, the stop loss (preferably) should be set at the exact moment when the order is executed. On the chart above, I have an active selling position on Gold. My entry level is 2372, my stop loss is 2381. It means that if the price goes up and reaches 2381 level, the position will automatically close in a loss. Why Do You Need a Stop Loss? Stop loss allows us limiting the risks in case of unfavorable movements . On the chart above, I have illustrated 2 similar negative scenarios : 1 with a stop loss being placed and one without on USDJPY. In the example on the left, stop loss helped to prevent the excessive risk , cutting the loss at the beginning of a bearish wave. With the manual closing, however, traders usually hold the negative positions much longer , praying for a reversal. Holding a losing trade, emotions intervene. Greed and fear usually spoil the reasoning, causing irrational decisions . Following such a strategy, the total loss of the second scenario is 6 times bigger than the total loss with a placed stop loss order. Always Set Stop Loss! Stop loss defines the point where you become wrong in your predictions. Planning your trade, you should know in advance such a point and cut your loss once it is reached. Never trade without a stop loss.
OANDA:XAUUSDEducation
by VasilyTrader
16
Beware of Trading on Public Holidays! In this educational article, we will discuss why is it recommendable not to trade during the public holidays. I will explain to you how banking holidays affect the financial markets and how it may impact your trading. WHY??? 🏦 The main source of problems comes from the fact that the big market players like: banks, hedge funds investing firms are absent. Similarly to ordinary people, bankers and investors prefer to spend the holidays with their relatives and friends instead of staring at charts on Holidays. HOW??? But how does it affect the market? Big players are the main source of the market liquidity. The liquidity itself is the measure to which an asset can be quickly bought or sold in the market at a price of its quotes. Therefore, when the big players are missing, the market liquidity drops. WHAT??? 1️⃣ That fact instantly reflects in the market spreads. They become substantially bigger, directly increasing the costs of each trade and making it problematic to open a position at a desired price. 2️⃣ Secondly, low liquidity leads to a decrease in volatility. The market becomes weak and indecisive. As traders, we make the money on market moves. Our goal is to catch a bullish or a bearish wave. Their absence deprives us of profits or, at least, dramatically decreases them. Look at a chart above, it is EURJPY on a 4H time frame. Look how weak and boring the pair was in US Independence Day - official US banking holiday. And here is how weak and slow was Gold during US Independence Day on an hourly time frame . 3️⃣ Thirdly, when the liquidity is low, even small market participants can move the market. It dramatically increases the probabilities of false signals. Relatively low trading volumes may manipulate the market, substantially decreasing the efficiency of technical and fundamental analysis. Look at a density of false breakout on Dollar Index DXY on 15 minutes time frame the 19th of June - Juneteenth National Independence Day in US. All these breakouts were the manipulations and false signals. The increased costs of trading, low volatility and manipulations should have convinced you to stay from charts during the holidays season. However, the main reason to not trade on holidays is much simpler. Holidays give you an opportunity to stay with your family, to take a break, to recharge and relax. Even a part-time trading is very exhausting and requires a constant attention. Let yourself be distracted and return after holidays. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
1