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The Evolution of a Trader | 3 Milestones 📈 Hey traders, In this educational article, we will discuss 3 stages of the evolution of a trader. Stage 1 - Unprofitable trader 😞 The unprofitable trader has very typical characteristics: -total absence of trading skills Most of the time, people open a live account simply after completing some beginners course like on babypips website. Being sure that the obtained knowledge are completely enough to start trading, they quickly face the tough reality. -no trading plan Having just basic knowledge, of course, they do not have a trading plan. Why the hell to have it if everything is so simple?! All their actions on the market is just gambling. They open the positions randomly most of the time, simply relying on intuition. -poor risk management In 99% percent of the time, the unprofitable trader does not even think about risk management. The position sizing, stop placement and target selection are completely neglected. Trading performance of the unprofitable traders is characterized by small wins and substantial losses and negatively trending equity. Stage 2 - Boom and bust trader 😶 Usually, traders reach boom and bust stage after 1-2 years of unprofitable trading. At some moment, winning trades start to compensate losing trades, brining non-trending equity. Such traders have very common traits: -not polished trading plan Being unprofitable for so long, traders start to realize the significance of a trading plan. Sticking to the set of rules, they notice positive changes in their trading performance. However, trading plan requires to be polished and modified. It takes many years for a trader to identify all its drawbacks before it starts bringing net profits. -lack of confidence When one starts following a trading system, confidence plays a substantial role. The fact is that even the best trading strategy in the world occasionally produces negative results. In order to not give up and keep following such a system, one needs to build trust in that. The confidence that after a series of losing trades, the strategy will manage to recover. Such a trust can be built after many years of trading that strategy. Stage 3 - Profitable trader ☺️ That is the final destination. After many years of a struggling trading, one finally sees positively-trending equity. Winning trades start to outperform losing ones, leading to consistent account growth. Profitable trader is characterized by iron discipline, confidence and consistency. He knows what he is trading, when and why. His trading plan is polished, he fully controls his emotions. He never stops learning and constantly develops his strategy. Knowing the 3 stages of the evolution of a trader, one can easily identify at what stage he currently is. That will help to identify the things to be focused on to move to the next stage. At what stages are you at the moment? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
21
How can we profit after BoJ's intervention?Yesterday, after more than 10 years, the Bank of Japan intervened in the market. UsdJpy pair was very volatile and has a 550 pips daily range from top to bottom. However, thinking of previous interventions, yesterday's volatility represented around 2.5% if we take into consideration the daily close when in the past we had 5% moves... But, what do we know from previous interventions? First of all, they never worked, in fact from the past 11 interventions, BoJ was able to maintain "the move" in only one case, and that time wasn't a BoJ intervention, but a joint intervention in the markets alongside other central banks. Second, and most importantly, we can profit from this. So, how can we do this: 1. As I said, we know that BoJ intervention doesn't work and the pair resumes its previous trend. In UsdJpy we have a clear up trend and in such a case we should look for buying opportunities. Using only support and resistance we can see that under 140 we have a very good level of support. So under 140, we should look for buying opportunities. Considering the resistance provided by the intervention, we can set a take profit in that zone. Considering a hypothetical trade, if we buy at 139.50 with a take profit at 145.50, we have a potential 500 pips profit. As a stop loss, we can use a large and comfortable stop loss of 250 pips, which still gives us a 1:2 risk to rewards ratio, or, be more aggressive and use 138 as a stop loss and, in this case, we have more than 1:3 R: R. 2. Using the ceiling given by BoJ yesterday, which is 146. So, also a hypothetical trade: sell around that zone, set a stop loss of 150-200 pips and as for target, we choose the 140 support. In this case, we count on 2 things: first, we are backed by BoJ which "said" very clearly yesterday that is not comfortable with UsdJpy above 145, second, a lot of people will sell or close their buy positions there, using the same reasoning, putting pressure on the pair. P.S: Keep in mind that levels provided in this article are for the sake of example, not specific points where to buy or sell. Regards and best of luck! Mihai Iacob
Education
by Mihai_Iacob
11
Successful traders think like chess playersEvery day I get many questions from traders and more than half of them are: "What will X asset do today, will it rise or fall" or "Do you think X asset will reach Y price?" With very few exceptions, I say "I don't know". Surely my interlocutor will think that I don't want to tell him/her or that I'm an idiot. In fact, the correct answer is another: "I don't care" And now, dear reader, you will think not that I am an idiot, but a complete one. But bear with me a little more and let me explain using a real trading example on EurUsd Let's say we consider taking a trade on this pair so, we ask ourselves what do we know about it? 1. Fundamentally the USD is favored 2. The trend is down for more than a year. So, we want to trade in the direction of the trend and sell this pair Looking closely at the chart we see that EurUsd is contained in a downwards channel and recently found support in the 0.99 zone. Last week, the pair corrected and reached a high at 1.0150 and reversed exactly from the channel's resistance, leaving a nice and strong bearish engulfing on our daily chart. Going further with our judgment, where do we want to sell this pair? Now, considering my approach, I see a good place to sell in the 1.0030-1.0050 zone. So we set a sell limit order in that zone (Remember, professional traders use pending orders) We also consider at this moment the point where our bearish outlook is negated. We get 1.0150 for our stop loss. Now, using again my personal trade, let's say we set the selling order at 1.0030, with a stop loss at 1.0150 we have a potential loss of 120 pips. We know that every pip move on EurUsd represents 1usd for 0.01 volume, so 12usd potential loss on 0.01 trade for our trade. Now, let's consider volumes. What potential loss are we "comfortable" with? For the sake of example let's say 120 USD, so a 0.1 volume. Now let’s see where we can take profit. 0.97 zone is the falling channel's support, so there. Looking at such a trade we have 120 pips or 120 USD potential loss with 330 pips or 330 potential profit. This gives us a close to 1:3 risk-reward ratio, a very good one. And now, maintaining the analogy from the title is the market’s “move” turn And the market can do only 2 things at this point: fill our pending order or not. Considering that I don't hold pending orders after NY's close, if the market doesn't reach my level by then, I will remove the order, and tomorrow I will start over again by analyzing the market. The second is to trigger our limit order as is also the case for my trade, and we are in a running trade now. Now, with a trade running is again the market's move. So, what are the possible scenarios? 1. The market rises and hits our SL. Although an undesirable scenario, we knew from the start that it’s a possibility and like every trade, this also carries a risk. We considered it and assumed it from the start and didn't trade more than we could afford to lose in a trade. So, we take it like a stoic and move on to the next trade and market analysis 2. The lovely scenario in which EurUsd breaks 0.99 support and falls to our target. So, our reasoning was correct and we now have a trade that brought 330usd in our pocket, but more importantly we traded disciplined with a good R: R 3. The market falls below 0.99 but reverses. Now we can also consider some action - Move SL in BE and let the trade run - Close half to get some money off the table and move SL into BE - Close all trade In conclusion: As you can see, you don't need to be Gary Kasparov to be a good trader, the market's "moves” being in fact just a few. All you need to do is to be aware of these moves and have a plan for each of them. This way you will not end up wondering every minute "where will EurUsd go, it will rise, it will fall", you will not trade emotionally or recklessly. As Benjamin Franklin once said: "Those who failed to plan, plan to fail", but it is not your case, because, as a good trader you always trade with a plan and know from the beginning all that the market can do. Best regards! Mihai Iacob
Education
by Mihai_Iacob
17
NZDUSD LONGS, CHECK OUT MY ANALYSIS AND FOLLOW ME UP :)Here we have a descending trendline which price has respected, one previous breakout occurred however it was a fake breakout. We are also seeing lower highs and lower lows forming with price currently making a new lower low at a previous resistance level at - 0.69200 and this is where price began to become bullish and our moving averages were also bullish on the 1H time frame, all giving us extra confluence that price will be making a new lower high and potentially at the trendline.
Long
by FOREXWITHD
2
Another vital lesson in the markets...Perhaps the most important rule when trading professionally Is that history repeats itself in the markets.. So you may be asking what exactly does this mean? Well its rather simple; Market moves that happened before happen again!... Over and over. The reason is because markets have memory. When price returns to these levels you see similar reactions. Why is this information so important?.. It is Important because it allows you to Make better decisions in your trading. If you know price repeats, you can add it into the formula you use to trade any asset. This is because it works in any setting and is relevant in ALL markets. You will notice no matter the chart you are looking at, there is oscillations and consolidations. These are all based on price action from previous events.
Long
by WillSebastian
Japanese candlesticks are better than any indicator Although indicators can help in the process of constant trading, nothing compares to Japanese candlesticks , which in themselves show who is stronger in the market, buyers or sellers. Using technical analysis in your favor is crucial for understanding what may happen next in the market. But... Japanese candlesticks often give the clearest picture of them all. Learn to read what Japanese candles show. Understanding who is currently dominating the market can significantly help you in acquiring additional mergers that are necessary not only to confirm your pattern but also to determine in advance what the price can do next. Financial markets are a continuous open battlefield of buyers and sellers. Look for a strong side to be with the dominant side in the market. ❤️ Please, support our work with like & comment! ❤️
Education
by SignalProvider
9
YOUR SUCCESS IN TRADING | Expectations VS Reality 💰🤔☠️ Hey traders, Being a full-time trader & running a coaching program for the last three years, I met hundreds of struggling traders from different parts of the globe. Guess why the majority of them could not make it? What was the main reason for their bad luck? It wasn't their trading strategy, nor their technical analysis. The source of their failure was the expectations. Trying different trading strategies, following the signals of different signal providers, these traders expected quick gains and exponential account growth. They were actually in a state of a constant search of a holy grail, of a magic wand that will open Pandora's box to them. Just a single losing trade made them skeptical while the first losing streak made them drop the strategy and return back to the search. They keep spending thousands of dollars on trading strategies promising them close to 100% win rate. There is this common mantra, the stereotype about a pro trader: a guy with 4 screens making a quick buck on each and every market rally, driving Lambo, and living in a mansion. Unfortunately, the reality is different. Ahead you will encounter loneliness, losses, pain, and disapproval. The road to success in this game is long and dangerous. Get ready to see the skepticism in the eyes of your relatives and friends. Many years and tons of money must be spent in order to make it. But even mastering the system, becoming a consistently profitable trader you will not constantly beat the market. Your wins will just slightly outperform your losses giving you the means for living. If you are ready for that if you are courageous enough to start and to proceed no matter what, you are already one step ahead of the majority. Be prepared to work hard and practice much, set a correct goal, and sacrifice your presence for the sake of an independent and prosperous future. Are you ready? ❤️Please, support this post with a like and comment!❤️
Education
by VasilyTrader
145
Here is Why RSI Divergence Will Increase Your ProfitsRSI can be beneficial in your trading if you use it correctly. This printable cheat sheet will assist you in divergence, so you can trade more precisely and increase your profits. To print this cheat sheet, Right-click the illustration below and then click Save as Picture. What Is RSI Divergence? With RSI divergence, the relative strength index of a specific asset shows lower highs when the price uptrend hits higher highs. Conversely, when the price is trending downward, it will hit lower lows with divergence while the RSI hits higher lows. ⁣ In a bullish divergence scenario you will see RSI show what is called being OVERSOLD and you will see price action form a lower low while the indicator shows a higher low. This represents a transition of volume from seller to buyers and the last push lower is sellers LAST attempt to take control.⁣ ⁣ The opposite is true for a bearish divergence scenario. You will see price action form a higher high, the last attempt from buyers, while RSI shows a lower high. This is a classic OVERBOUGHT setup and can be very profitable when combined with the rest of your technical analysis.⁣ Those setups give us reversal signal in trending markets as well as ranging markets. Keep in mind using one strategy is not enough to have consistent profits. Use combinations of strategies and setups to increase your winning rate. Always trade with affordable risk. What indicator do you use for Divergence? Let us know in the comments Have a best profits Artem Shevelev
BITFINEX:BTCUSDEducation
by ArShevelev
3