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Tradingeducation

The three O's that have to go ❌The O’s in your trading game that have to go are shown drawn on the chart. The three O’s in the idea can all overlap one another and allowing one to creep in can lead to any of the other also creeping in to your trading. We have all suffered at some point in our trading journeys of these three phenomena. All of these O’s can lead to capital being impacted and potentially a blown account. We’ll start with over trading. On the face of it, over trading is taking too many trades. Over trading can occur when chasing losses or being on a particularly good winning steak. Either of those situations mentioned is essentially a loss of control. The loss of control leads to a loss of focus. The loss of focus leads to too many trades. Too many of those trades will be stupid trades. Those stupid trades will be losing trades at some point. All these trades mean increased commissions. The cycle continues and instead of compounding profits the only thing being compounded is risk. Compounded risk leads to losses and if the cycle isn’t broken a blown trading account awaits. Next is over risking. Risk management is key to any trading plan being successful. Stating the obvious in that first sentence. But I’m also stating the obvious when I say we’ve all been there and risked more than we should on some trades. Over risking more than our capital allows will only lead to tears and one outcome which is the blown account outcome. We end with overconfidence Probably the worse O of the three to allow in your trading behaviours! Allowing this one to sneak in can quickly allow the other two already covered to sneak in. Usually seen as a positive emotion in the world we live in, this emotion can quickly become a negative emotion in the trading world. Allowing this emotion to creep in blurs our perceptions to so many concepts we need for trading and can lead to a gambling mentality. Greed will take hold with overconfidence and when the winning streak comes to a cashing end the trader runs the risk of allowing the other two O’s to creep in leading to only one outcome. The blown account yet again. The O’s can crossover All of the traits mentioned can be experienced individually or some can crossover one another. Below are a few examples. We covered in the overconfidence how it can lead to the O’s creeping in. Overconfidence from a winning streak leads to overtrading which in turn leads to an inevitable losing streak and capital impacted with losses. Worse case scenario is overconfidence from a good run of trades leads to over risking on the next set of trades which loose. You then end up over trading in revenge to gain back the losses which could lead to yet more losses. You could be a new trader starting out with no confidence. You start to over risk from the off and lead to your trading account being blown. You could over trade combined with over risking which accelerates the loss of trading capital. In those scenarios mentioned confidence hasn’t been an issue at all. But risk management and trade volume have. How to avoid the O’s I'm pretty sure we all suffer one of O traits at some point in our trading journey. The key is to recognise the incident and the issues it caused and learn from that. It lies with us as individuals to own up to our trading mistakes. Some of us will suffer all three O’s in our trading paths. In owning up to our shortcomings all the O’s can be avoided going forward in your trading life's. Hope you all enjoy your trading week. Darren ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. Thank you.
BITSTAMP:BTCUSDEducation
by pow_removetheguesswork
The 8 Universal Rules of Successful TradingUTPs (Universal Trading Principles) are a set of trading rules you must not break. They cover entries, exits, strategies, and risk management. They form the backbone of your trading plan. Repeat these rules everyday, like a mantra, until you can recite them in your sleep. This will make you a successful trader. 1. Don't leave money on the table - I move my SLs to breakeven and lock in profits as the trade goes in my direction. The first rule of trading is to protect my trading capital. Without my capital, I am out of the game and cannot be a trader. So I do everything possible to protect it. 2. I scale in and out of trades - If my trade idea seems to work, I add to my position. If my trade doesn't work and approaches my SL, I am reducing my position. I am ALWAYS adding to working trades and NEVER to losing trades. This is how the most successful traders trade, and this is how I want to trade. 3. Final TPs - My final TP is based on horizontal S/R levels, weekly or monthly highs and lows. I confirm that markets are mostly ranging, i.e. my final TPs are always based on the normal distribution (e.g. weekly or monthly ATR). My TPs need to be REALISTIC. 4. Technicals are used only for entries and exits. The direction of the market is determined by fundamentals. I never trade against the fundamentals. 5. Position sizing - My stop-losses are always based on sound technical levels. My position size depends on the size of the stop-loss and the percentage of my trading account I want to risk on any single trade. I never risk more than 2% on a trade, and cut the risk-per-trade to 1% after a series of three losing trades. 6. Trading is a probability game - I acknowledge that successful trading is about probabilities. I don't know whether my next trade will be a winner, but I do know that I have a good chance to be in profit after the next 10 trades. 7. Trading is as simple as you make it - Fundamentals support my trades, but everything can happen (including a change of fundamentals and sentiment). Risk management prevents higher losses. There are always new opportunities. My goal isn't to be right, but to follow my UTPs. 8. Weekly journal reviews - I don't measure trading success by the profits I've made or the number of winning trades. My success is measured by how strictly I followed my UTPs. To review my trading, I am performing weekly journal reviews and try to identify any trading patterns that have a negative influence on my bottom line.
TVC:SPXEducation
by MujkanovicFX
Probability & Trading Trading is a probability game. Every successful trader knows that any trade he executes may bring either profit or loss. In order to assess a statistical advantage of a trading strategy, it is necessary to execute a large number of trades. That is why, it takes a lot of time to understand how efficient your trading is. There will be loss-making trades and you cannot avoid it. However, it is within our power to restrict a negative influence of each loss-making trade on your trading capital. ESSENCE OF PROFITABILITY IN TRADING. Many traders have a general understanding of the probability concept in trading, however, all too often they do not quite understand its essence or do not use it in trading to the full extent. Analysis of probabilities, conducted by such traders, is reduced to analysis of statistics of profitable and loss-making trades for a certain period of time. Quite often this is all they do. Traders do not bother about a thorough study of numbers, which they find in the result of testing trading strategies. However, in order to achieve success in a long-term perspective, it is necessary to understand some basic concepts. Below are two basic ideas, which relate to probabilities in trading: Historical values of the risk-reward ratio cannot be the final measure of future probabilities. These are just forecasted indicators of future probabilities; Even if you have an understanding of what the risk-reward ratio of a specific trading setup would be, you are not one hundred percent sure that the next trade would make profit or loss. The idea of probabilities in trading might confuse you a bit, if you treat it without proper attention. It assumes that your trading strategy was characterized by a certain percentage of profitable and loss-making trades for a selected period of time. However, there are no guarantees that this strategy would be that much efficient in future. You should understand that the market constantly changes and sometimes very rapidly. In any case, the future indicators of efficiency of your trading strategy would differ from the historical values. NOTHING IS KNOWN BEFOREHAND. You should ask yourself, whether historical market data, used earlier for the market forecasting, could be useful for analyzing the current market situation. For example, imagine that you have analyzed efficiency of your trading strategy on the historical data for several years. The market has been in a trend during this period. But what if the market has changed and moved to the consolidation stage? Do you think it makes sense to rely on the past statistics in this case? Can it provide a clear understanding of the future price movement? Probably not. It is also necessary to take into account the fact that you cannot guarantee a hundred percent favourable outcome of the trade. A convincing risk-reward ratio may take-off your guard when executing a new trade, which could result in negative consequences for your trading capital. You do not know for sure what chances for success your next trade has, even if you have a general understanding about what, most probably, would happen in the market. Let’s consider the following situation by way of example. The trading system showed the 1.5 relation of profitable trades to loss-making ones (that is, 60% of the trades were profitable) in a series of 250 trades. However, note that, out of the total number of trades, 100 trades were closed with a loss. It means that, in principle, there could be a situation, when you can have a big series of losses. It is an unpleasant situation, but it really could happen. Namely that is why it is very important to clearly identify risk parameters for each setup, which you trade, and strictly stand by them. This explains why some traders establish a protective rule, which allows execution of a limited number of loss-making trades in a row. The protective rule directly depends on the time of trading and is usually applied to the intraday trades. This rule allows stopping the trading for the whole trading session in case of development of a negative scenario. The reasons of why this rule comes into force could be the following: The best period of time for trading has finished; A certain number of trades have been executed and the trading stops, when a positive result during a trading session has been achieved, independently from their total income; The number of loss-making trades exceeded the acceptable maximum. The ability to manage the trading capital (risk management) is as important in the long-term perspective as the availability of a trading strategy with a trader. The problem is that a human being tends to focus on such things, which are directly in front of his eyes. At some moments, the global vision may become distorted by an immediate urge and belief in a positive outcome of the trade. It takes a pronounced character in those cases when trading decisions are made emotionally and not rationally (in accordance with the risk management rules). Such cases are characterized with a big confidence of a trader in success of an obviously loss-making trade. Namely due to emotional attachment to a trade, a trader often forgets that each trade is just a part of a series of trades. Development of the attachment to a trade looks about as follows: You allow the trade to ‘breathe’ and do not restrict it with a stop loss in accordance with the risk management rules; Then you give it even more space to be more confident that this ‘trade of the century’ will not be closed by a stop loss; At the end of the day you understand that the trade accumulated a significant loss and pushes your profitability curve into the red zone. The most disappointing is when the trade is closed by a stop loss directly before the market reverses towards you and achieves the earlier set goals. This would happen from time to time. Sometimes you yourself would close a profitable trade just before the market reverses and rapidly moves against you. We should note here that the risk-reward ratio and also statistical data in general are not useless, however, everything depends on how we interpret them. People tend to distort or manipulate their perception of reality for supporting their own ideas. Namely this is the reason why it is important to understand the trading psychology. THE MARKET HAS THE UPPER HAND. A trader may forecast any market tendencies, but the market has its own, often different, opinion in this respect. If a trader does not recognize the probability nature of the financial market and is not ready for situations when the market behaves differently from his forecast, he would hardly manage to stay in this business. When a trader starts to think that he knows for sure how one or another market situation would develop, it means that he needs to reconsider his views. Credit: Article by atas net Like and Subscribe. Thank you.
Education
by Deeppoketz
$EBON PT 12 and higher, Three Drives Pattern...Ebang International Holdings Inc., through its subsidiaries, engages in the research, design, and development of application-specific integrated circuit chips and manufacture of Bitcoin mining machines in China, the United States, Hong Kong, and internationally. It also provides mining machine hosting services that enable customers to operate mining machines remotely, as well as offers routine maintenance services. In addition, the company engages in the research, development, manufacture, and sale of fiber optical telecommunication products, including PDH fiber optical multiplexers, E+E fiber optical multiplexers, 1+1 dual fiber interface back-up fiber optical multiplexers, voice fiber optical multiplexers, date video fiber optical multiplexers, fiber modems, protocol converters, optical fiber transceivers, timeslot multiplexers, PAS repeaters, and others, as well as transmission network and converged communication products. Further, it offers enterprise convergent terminal products, including gigabit passive optical network, enterprise cloud gateway devices, industrial Internet of Things access devices, and business enterprise smart wireless access devices. The company offers Bitcoin mining machines under the Ebit brand. It serves blockchain and telecommunications industries. The company sells its blockchain products directly, as well as through its website; and telecommunication products under the EBANG brand name primarily through supplier contracts. Ebang International Holdings Inc. was incorporated in 2018 and is headquartered in Hangzhou, China.
NASDAQ:EBONLong
by UnknownUnicorn19246015
1
$AEHL #stockmarket #live #news #business #trading #stocks #stock$AEHL Non-Fungible Tokens (NFT) Antelope Enterprise Holdings Limited, through its subsidiaries, manufactures and sells ceramic tiles for exterior siding and interior flooring, and design in residential and commercial buildings in the People's Republic of China. It provides porcelain tiles, glazed tiles, glazed porcelain tiles, rustic tiles, and polished glazed tiles. The company sells its products under the HD, Hengda, HDL, Hengdeli, Pottery Capital of Tang Dynasty, TOERTO, and WULIQIAO brands through a network of distributors, as well as directly to property developers. The company was formerly known as China Ceramics Co., Ltd. and changed its name to Antelope Enterprise Holdings Limited in October 2020. Antelope Enterprise Holdings Limited was founded in 1993 and is headquartered in Jinjiang, the People's Republic of China.
NASDAQ:AEHLLong
by BADQOMOCAWGOWLD
$PSTV Target PTs 3.30-5 and higherPlus Therapeutics, Inc., a clinical-stage pharmaceutical company, focuses on the development, manufacture, and commercialization of treatments for patients with cancer and other diseases. Its lead drug candidate is Rhenium NanoLiposomes, a patented radiotherapy for patients with recurrent glioblastoma, which is in the Phase 1 dose-finding clinical trial. The company is also developing DocePLUS, a patented chemotherapy for patients with solid tumors that is in Phase 1 clinical trial; and DoxoPLUS, a generic chemotherapy for patients with ovarian cancer. It has a license agreement with NanoTx, Corp. to develop and commercialize NanoTx's glioblastoma treatment. The company was formerly known as Cytori Therapeutics, Inc. and changed its name to Plus Therapeutics, Inc. in July 2019. Plus Therapeutics, Inc. was founded in 1996 and is headquartered in Austin, Texas.
NASDAQ:PSTVLong
by BADQOMOCAWGOWLD
active trade set upwe are now explaining how do we take trade so you don't have just an idea but actually the process behind the trade. our entry trigger: 3 bullish confirmation on the macd -macd with histogram forcast showing a bullish momentum -macd4c showing a regression from the bearish momentum -macd vxi showing that volatility is on our side volume -increase of volume giving us a good support to our macd trigger. momentum rsi: showing an entry signal fib support- value area making our macd signal even more relevant ema showing an global downtrend. fondamentaly: using a forex correlation matrix to see divergence between pair. you have our tp and sl level so you can see were we see our idea become obselete or complete. best regards, daniel forex analyst for richmonstocks.
Education
by RICHMONSTOCK
AUDUSD - Brilliant January Set-UpIn this particular set-up, you can see we had three really great opportunities for entry. Entry highlighted by yellow horizontal line, let's review what i saw. On the Daily TF, I noticed the uptrend since Nov. 2020, a pullback was clearly due, we had a HH being formed. On the 4H we had strong resistance and I took entry from the 1H, waiting for the break of the smaller trend-line. Simple set-up that easily made 200+ pips altogether. A set-up is really good when you can take the same set-up, more than once.
Short
by FXwithJess
1
Bitcoin - The grand scheme of thingsAlts are tied to BTC and for now BTC will follow the Dow, why? Because the DJI is a direct reflection of the health of the economy. In a bad economy we can see that institutional money pulls out of crypto as well. If things continue to be this bad we will see the capitulation of some lesser-known Altcoins. Let me give you some perspective as to what has happened over the last few weeks so you can appreciate the magnitude of this event. Let's look at the Dow and how some major events have influenced the health of the economy. Also, remember that in the end, we will bounce back from this, maybe faster than any other time before. Let's look at these key events; The market crash of 87, September 11, 2001, and the housing market crash. As you can see so far this event is as big as the 1987 crash but with the main difference, that this event is not even close to over yet. On BTC we'll look at how COVID-19 influenced crypto while China was fighting the spread vs once the virus made it to the U.S. What does this chart tell us? A lot, you can see that the bulk of the money is in the United States and it comes from major institutions. How does this info help? Easy, bad news out of the U.S. will influence negatively so be ready, bad or good news out of China does influence but not as much. When the U.S. recovers the crypto market will bounce hard. WHAT'S BTC DOING NOW? BTC truly had to jump over the 200MA in the weekly chart in a hurry to stop a meltdown. We went below this benchmark and closed under it once last week. The 200MA is a very crucial line and currently we are playing with fire and this asset class knows it, it is obvious that the powers that be pushed the price up in a hurry to close above the 200MA (that's how important this is) We are currently above the thin red line which was our next obstacle, we'll keep moving up but it is hard to see us going further than the thick red line. WHERE IS THE DOW HEADED? It seems like we still have some more events to go through. We have yet to find out how bad the coronavirus has influenced the U.S. We are expecting the job reports, Also the end of Q1 and Q2 (quarterly reports.) It is expected that most companies will post massive losses. All of this will send the Dow lower in the next few weeks which will influence the direction BTC will take. VERY IMPORTANT: Hitting the "Like" button is like a tip, please don't forget to do so after reading, this is your way of thanking me for my time and so I thank you for yours.
by cryptoGats
32