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Trading Psychology : 5 Questions to Ask your self Before TradingWhen it comes to trading, it's often said that success is not just about having a winning strategy; it's equally, if not more, about mastering the psychological aspects of trading. when i started trading , I struggled with this concept, and it led to blown accounts, financial losses, and a destruction my mental health. However, through perseverance, reading books , and self-improvement, I managed to get my expectations and psychology in check, and the transformation in my trading results was remarkable. In this article, I'll share the five crucial questions I ask myself before making any trade. These questions have helped me develop a disciplined and resilient trading mindset, and I believe they can do the same for you. 1. Does this trade fit my trading plan? Before even considering a trade, it's vital to have a well-defined trading plan. Ask yourself if the trade aligns with your plan's criteria. This question reminds you to stick to your strategy and avoid impulsive decisions driven by market noise. 2. Am I mentally and financially ready to accept the risk of the trade? Trading is a risky activity , its important to know if you are mentally able to handle potential losses and also it's crucial to assess whether you are mentally prepared to trade , if you are not feeling good mentally don't trade period. , Additionally, ensure that you have the necessary financial resources to accept the risk involved in the trade. Trading should never jeopardize your financial stability. 3. Am I trading based on FOMO (Fear of Missing Out) or a well-thought-out plan? FOMO can be a trader's worst enemy. Ask yourself if you are entering a trade out of fear that you might miss out on an opportunity. A well-thought-out plan should drive your decisions, not emotions. always remember that EVERY SINGLE DAY there are new and better opportunities in the market . 4. Am I experiencing overconfidence (euphoria)? FOMO can be a trader's worst enemy. Ask yourself if you're entering a trade out of the fear of missing out on an opportunity. A well-thought-out plan should be the driving force behind your decisions, not emotional impulses. Overconfidence can lead to reckless trading. Evaluate your current state of mind. Are you feeling overly confident, perhaps due to recent successes? Remember that the market can be unpredictable, and overconfidence can cloud your judgment. remember that EVERY SINGLE DAY there are new and better opportunities in the market you are not missing out on anything you are just waiting for the best opportunity that fits your trading rules and strategy . 5. Am I in the present moment (mindful)? Trading, as Mark Douglas beautifully emphasizes in "Trading in the Zone," demands a state of mindfulness. Are you fully immersed in the present trade, or do your thoughts wander elsewhere? Staying in the zone of mindfulness enables you to make grounded and rational decisions while responding adeptly to dynamic market shifts. ask yourself Are you fully engaged in the trade at hand, or are your thoughts scattered? Staying in the present moment allows you to make more rational decisions and react effectively to market changes.
BITSTAMP:BTCUSDEducation
by xAB777
Learn TOP 3 Elements of a Perfect SWING TRADE Hey traders, In the today's post, I will share with you a formula of ideal swing trading setup. ✔️Element 1 - Market Trend When you are planning a swing trade, it is highly recommendable that the direction of your trade would match with the direction of the market trend. If the market is trading in a bullish trend, you should look for buying the market, while if the market is bearish, you should look for shorting. Take a look at CHFJPY pair on a daily. Obviously, the market is trading in a bullish trend and your should look for swing BUYING opportunity. ✔️Element 2 - Key Level You should look for a trading opportunity from a key structure. IF the market is bullish, you should look for buying from a key horizontal or vertical SUPPORT, WHILE if the market is bearish, you should look for shorting from a key horizontal or vertical RESISTANCE. CHFJPY is currently approaching a rising trend line - a key vertical support. Please, note that if the price is NOT on a key structure, you should patiently wait for the test of the closest one. ✔️Element 3 - Confirmation Once the market is on a key level, do not open a trading position blindly. Look for a confirmation - for the sign of strength of the buyers, if you want to buy or for the sign of strength of the sellers, if you are planning to short. There are dozens of confirmation strategies, one of the most accurate is the price action confirmation. Analyzing a 4H time frame on CHFJPY, we can spot a falling wedge pattern. While the price is stuck within that, the minor trend remains bearish. Bullish breakout of the resistance of the wedge will be the important sign of strength of the buyers and can be your strong bullish confirmation. Following these 3 conditions, you will achieve high win rate in swing trading. Try these techniques yourself and good luck in your trading journey.
OANDA:XAUUSDEducation
by VasilyTrader
3
What is FOMO? Syndrome of lost profit in tradingFOMO is the lost profit syndrome. Now it is especially common due to the popularity of smartphones and social networks. Many are simultaneously afraid of social isolation and worried about lost opportunities. A similar situation is possible in trading. As soon as traders see a bullish trend, they start opening trades and buying those assets that match their analysis. In addition, a lot of information, thoughts and impressions are concentrated around us, which only aggravates the situation. Let's figure out how to deal with such an obsessive fear. The syndrome of lost benefit is a strong fear of missing an important event or a profitable opportunity. This fear is especially pronounced against the background of the bright life of friends and acquaintances. After all, then there is a feeling that you are wasting time in vain. SUVs are directly related to dissatisfaction with personal life, and social networks only increase the unpleasant state. The greater the dissatisfaction, the greater the desire to find others. And the need for new information turns into intrusive thoughts. FOMO is distinguished by the following features: -Frequent fear of missing something important; -Constant use of language turns like "everything but me"; -The desire to delve into all forms of social communication (attend all the parties, go to concerts, etc.); -Obsessive desire to always be liked by others, accept praise and be available for communication; -The need to constantly update the feed on Facebook, Instagram and other social networks. How to get rid of lost profit syndrome? -Constantly responding to messages and checking the crypto rate every 2 minutes, you waste a lot of time. Therefore, you should establish clear rules for using a PC and a smartphone: -remove unnecessary programs and turn off pop-up messages in programs that are not of great importance; -leave groups and unsubscribe from accounts that are not useful to you; -refuse unnecessary e-mails; -check news and stock quotes no more than twice a day (for example, in the morning and in the evening); -do not take your smartphone to bed and do not sit on the Internet before falling asleep; make two separate schedules - for working with personal and business messages. Five tips — how to avoid the FOMO syndrome as an investor Instead of succumbing to the fear of missing out, you can change your life for the better and find success in the cryptocurrency field. Here are our 5 tips on how to avoid FOMO affecting your investing. 1. Forget about the past What has already happened in the market is irrelevant from FOMO's point of view. There are not many investors who look at past quotes. Successful investors always take the time to analyze when opening a trade: they look at the current state of assets and assess their prospects in the future based on past price charts. The idea that the chance can be one for a lifetime is completely false. There are always and always will be profitable opportunities, just as the market always was and always will be. Charts will never tell you what an asset will be like in a year, two or five years. They simply provide information about events and possible future probabilities. Therefore, competent long-term investors understand that it is never too late to buy assets, it is important to navigate them and make balanced decisions. 2. Buy when everyone is selling and sell when everyone else is buying There is an opinion that on the stock exchange it is necessary to go against the trend. Of course, it is easy to talk about it, but to translate all this into reality is much more difficult. After all, the effect of the lost profit syndrome only increases when you do not invest in an asset that is growing. The "anti-cyclical" behavior is explained as follows: the most successful purchases with possible high returns occur during a fall in the rate and general panic, and sales - during a rise in value, when everyone is eager to buy bitcoin or another crypto as soon as possible. However, this tactic does not at all mean a ban on buying tokens in an uptrend. It is inextricably linked to the next tip, so it should be taken in the same context. 3. Set clear goals Remember the chosen strategy and determine the goals when buying this or that cryptocurrency. One possible option is target cost. If the stock price has reached your indicator, feel free to sell the asset and lock in the profit, or set a stop loss, with the hope that the trend will continue. Many traders use a simple rule - it is better to receive 4 thousand dollars 10 times than to wait six months for 50 pieces. If the deal in a short period of time brings 50% profit or more, it is better to close it. And this should become a proven mechanism. Usually, when the value of a cryptocurrency starts to increase rapidly, many market participants buy it. You can understand this in time and, having sold the asset, watch the further growth that is already taking place by inertia. The growth will stop only when the rest finally realizes that the coin is "overheated" and no longer has the potential for growth. Conclusion: While most buy the coin on the rise due to FOMO, you sell the crypto and get your profit. As for purchases at a reduced price, not everything is so smooth either. After all, not everything will be so profitable that it has become cheaper. Here it is necessary to look at the reasons for the price drop on the chart. If unforeseen circumstances have occurred, for example, a lawsuit by the state regulator in court, then you need to determine what value of the asset will become the most attractive for you in the current period, or how critical the situation with the lawsuit is. Of course, I mentioned isolated cases here. In order to analyze all possible situations in the market, you need to publish an entire online almanac. Each case has a common feature — the psychology of human behavior. Therefore, do not give in to general panic or joy. 4. If there are no investment ideas, wait The famous stock speculator and Wall Street investor Jesse Livermore used to say the following: "Big money doesn't buy or sell, big money waits"! It is true, because one day you will not be able to find more interesting coins to invest. There will be very few of them, and the crypto market will continue to conquer new heights. 5. Your strategy is the main thing If you managed to accumulate knowledge in some area of trading, learned SmartMoney analysis, know how to set goals and evaluate the potential of a particular token, it will bear fruit, but continue to develop further, because there are no limits to perfection! :) New trading tools, technologies and new tokens appear every day that promise to bring significant profits and make cryptocurrency trading as convenient as possible. Do not follow the tricks of speculators. Become the best in your field. Keep a clear mind and don't be influenced by the masses. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
8
4 Classic Bullish Patterns EVERY TRADER Must Know In the today's post, we will discuss accurate bullish price action patterns that you can apply for trading any financial instrument. 1️⃣Bullish Flag Pattern Such a pattern appears in a bullish trend after a completion of the bullish impulse. The flag represents a falling parallel channel. The market corrects itself within. Bullish breakout of the resistance line of the channel is a strong bullish signal that can be applied for buying the market. Best entries should be placed immediately after a breakout or on a retest. Safest stop loss is below the lows of the flag. Target - the next key resistance. Here is the example of a bullish flag pattern that was formed on Gold on a 1H time frame. As you can see, after the breakout of the resistance of the flag, a strong bullish rally initiated. 2️⃣Ascending Triangle Such a pattern forms in a bullish trend on the top of the bullish impulse. The market starts consolidation, respecting the same highs and setting higher lows simultaneously. The equal highs compose a horizontal resistance that is called the neckline. Its breakout is an important sign of strength of the buyers. Buy the market aggressively after a violation, or set a buy limit order on a retest. Stop loss should lie at least below the last higher low within a triangle. Target - the next strong resistance. Take a look at that ascending triangle formation on EURUSD. Bullish breakout of its neckline was a perfect bullish signal. 3️⃣Falling Wedge That formation is very similar to a bullish flag pattern. The only difference is that the price action within the wedge is contracting so that the trend line of the wedge are getting closer to each other with time. Your signal to buy is a bullish breakout of the resistance of the wedge. Stop loss is strictly below its lows. Target - the next key resistance. GBPUSD formed a falling wedge on a 4H time frame, trading in a strong bullish trend. You can behold how nicely the price bounced after a breakout of its upper boundary. 4️⃣Horizontal Range Similarly to the ascending triangle, the horizontal range forms at the top of a bullish impulse in a bullish trend. The price starts consolidation, then, setting equal highs and equal lows that compose a horizontal channel. Breakout of the resistance of the range is a strong trend-following signal. Buy the market aggressively after a breakout or conservatively on a retest. Stop loss will lie below the lows of the range. Target - the next strong resistance. Dollar Index formed a horizontal range, trading in a strong bullish trend. Breakout of the resistance of the range triggered a bullish rally. The best part about these patterns is that they can be applied on any time frame. Whether you are a scalper, day trader or swing trader, you can rely on these formations and make consistent profits.
FOREXCOM:XAUUSDEducation
by VasilyTrader
10
Patience: How Higher Time Frames Can Save You from False SignalsHello TradingView Community! I know it's been a little bit since we have posted any content, but we are back after a brief hiatus to bring you more in-depth trading education! Today we want to cover a topic that we consistently see when helping traders who are trying to improve their results. That topic involves patience and leveraging time frames to improve your entries and chances for successful trades. In the fast-paced world of trading, it's easy to get caught up in the excitement of chasing quick profits, almost every trader has done it. However, successful traders understand the value of patience and the importance of using higher time frames to avoid false signals. Today we are going to broadly cover how incorporating higher time frames into your strategy can improve your long-term results. The Power of Higher Time Frames: Unveiling the Big Picture By zooming out and analyzing higher time frames, traders gain a broader perspective on market trends and patterns. This allows them to identify major support and resistance levels, significant price movements, and long-term trends that may be invisible on a shorter time frame. Understanding the big picture helps traders avoid getting trapped in false signals and make more accurate predictions. Avoiding False Signals: The Benefits of Confirmation on Higher Time Frames: One of the biggest challenges traders face is distinguishing actual market signals from noise. By patiently waiting for confirmations on higher time frames, traders can filter out the false signals that often plague shorter time frames. In this reversal example on the 15-minute time frame, it is nearly impossible to ascertain where an entry might be. If we zoom out several time frames, we get a much better idea of a possible entry signal that has taken days to develop. Trading with higher time frames allows you to filter out false signals and make more informed trading decisions. Don’t get me wrong, lower time frames have their place in the trading world. However, they should be complemented with an analysis of higher time frames to obtain a better understanding of market conditions. Traders can use higher time frames to get their broader entry signal and fine-tune that entry with lower time frames. A well-timed trade can make a world of difference in your profits or losses. Developing Patience in Trading: Trading with higher time frames requires patience and discipline. It helps you overcome the urge to make impulsive trades based on short-term fluctuations. Here are some broad examples of how you can develop patience in trading: Set longer-term goals: Instead of focusing on daily or weekly gains, set goals based on monthly or yearly returns. This shift in perspective allows you to take a more patient approach and avoid getting swayed by short-term market movements. Practice delayed gratification: Instead of constantly checking your trades and obsessing over every small price movement, take a step back and give your trades more time to develop. Adopting a "set it and forget it" mindset can help you avoid making premature decisions based on short-term fluctuations. If you are constantly monitoring low time frame price fluctuations you risk getting analysis paralysis, which can lead to impulsive decisions that may negatively impact your mindset and your hard-earned money. Adopting a systematic approach: Developing a trading plan or strategy that outlines clear entry and exit criteria can help traders maintain discipline and patience. By following a systematic approach, traders can avoid impulsive decisions and stick to their predetermined rules, which ultimately leads to better trading outcomes. A well-developed systematic approach often naturally forces our hand to be patient and lets the price action play out. Practice self-reflection: Take the time to analyze your trading decisions and outcomes. Look for patterns, identify areas where impatience may have led to poor choices, and learn from your mistakes. By reflecting on your trading journey, you can gain valuable insights and make adjustments to improve your patience in future trades. A very undervalued way to accomplish this is to maintain a trading journal. We highly recommend keeping even a basic trading journal for anyone we work with. Conclusion: Trading with patience and using higher time frames is a proven strategy for avoiding false signals and improving trading accuracy. By taking the time to analyze the big picture, patiently waiting for confirmations, and blending different time frames, traders can make better decisions and increase their chances of success. Remember, in the world of trading, patience truly is a virtue.
Education
by LeafAlgo
2
Learn the 4 Best Strategies to Maximize Your Profits Today In the today's article, we will discuss 4 classic yet profitable forex and gold trading strategies. 1️⃣Pullback Trading Pullback trading is a trend-following strategy where you open the positions after pullbacks. If the market is trading in a bullish trend, your goal as a pullback trader is to wait for a completion of a bullish impulse and then let the market correct itself. Your entry should be the assumed completion point of a correctional movement. You expect a trend-following movement from there. In a bearish trend, you wait for a completion of the bearish impulse, let the market retrace, and you look for short-entry after a completion of the retracement leg. Here is the example of pullback trading. On the left chart, we see the market that is trading in a bearish trend. A pullback trader would short the market upon completion of the correctional moves. On the right chart, I underlined the buy entry points of a pullback trader. That strategy is considered to be one of the simplest and profitable and appropriate for newbie traders. 2️⃣Breakout Trading Breakout trading implies buying or selling the breakout of a horizontal structure or a trend line. If the price breaks a key support, it signifies a strong bearish pressure. Such a violation will trigger a bearish continuation with a high probability. Alternatively, a bullish breakout of a key resistance is a sign of strength of the buyers and indicates a highly probable bullish continuation. Take a look, how the price broke a key daily resistance on a daily time frame. After a breakout, the market retested the broken structure that turned into a support. A strong bullish rally initiated from that. With the breakout trading, the best entries are always on a retest of a broken structure. 3️⃣Range Trading Range trading signifies trading the market that is consolidating. Most of the time, the market consolidates within the horizontal ranges. The boundaries of the range may provide safe points to buy and sell the market from. The upper boundary of the range is usually a strong resistance and one may look for shorting opportunities from there, while the lower boundary of the range is a safe place to buy the market from. EURCAD pair is trading within a horizontal range on a daily. The support of the range is a safe zone to buy the market from. A bullish movement is anticipated to the resistance of the range from there. Taking into considerations, that the financial instruments may consolidate for days, weeks and even months, range trading may provide substantial gains. 4️⃣Counter Trend Trading Counter trend trading signifies trading against the trend. No matter how strong is the trend, the markets always trade in zig-zags. After impulses follow the corrections, and after the corrections follow the impulses. Counter trend traders looks for a completion of the bullish impulses in a bullish trend to short the market; and for a completion of bearish impulses in a downtrend to buy it. Here is the example of a counter trend trade. EURJPY is trading in a bullish trend. However, the last 3 bearish moves initiated from a rising trend line. For a trader, shorting the trend line was a perfect entry to catch a bearish move. Such trading strategy is considered to be one of the most complicated, because one goes against the crowd and overall sentiment. With the experience, traders may combine these strategies. Try them all, and find the one that suites you the most. ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
38
Learn the KEY PRINCIPLES of Technical Analysis In the today's article, we will discuss the absolute basics of trading - 3 key principles of technical analysis. 1️⃣History Repeats History tends to repeat itself in the Forex market. Certain trends are cyclical and may reemerge in a predictable manner, certain key levels are respected again and again over time. Take a look at the example: Silver perfectly respected a historical horizontal resistance in 2011 that was respected in 1980 already. Moreover, the price action before and after the tests of the underlined zone were absolutely identical. 2️⃣Priced In All relevant information about a currency pair: economical and political events, rumors, and facts; is already reflected in a price. When the FED increased the rate 26th of July by 25 bp, EURUSD bounced instead of falling. Before the rate hike, the market was going down on EXPECTATIONS of a rate hike. The release of the news was already price in. 3️⃣Pattern DO Work Some specific price models can be applied for predicting the future price movements. Technicians strongly believe that certain formations - being applied and interpreted properly, can give the edge on the market. Depending on the trading style, different categories of patterns exist: harmonic patterns, price action patterns, wave patterns, candlestick patterns... Above, I have listed various price action patterns that are applied by many traders and investors as the main tool for analyzing the financial markets. If you believe in these 3 principles , you are an inborn technician! Study technical analysis and learn to apply these principles to make money in trading. ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
8
A Comprehensive Daily Routine of TraderGreetings, fellow traders and investors of @TradingView ! Trading in the financial markets is often likened to a battleground of strategies, psychology, and data analysis. To navigate this dynamic landscape successfully, we need more than just luck; we need a well-structured daily routine that blends education, analysis, and real-time decision-making. In this article, we delve into a comprehensive daily routine that can set traders on the path to success. 1. Read Heavy Subjects Every trader knows that staying ahead in the game requires continuous learning. Reading trading-related books and articles is an essential part of honing one's skills. However, it's not just about skimming through the surface; the real value lies in diving into heavy subjects. Delve into trading psychology, technical analysis, fundamental analysis, and risk management. Psychology books can help you understand the emotional aspect of trading, which often plays a pivotal role in decision-making. On the technical side, learning about chart patterns, indicators, and trend analysis can enhance your ability to identify profitable opportunities. Fundamental analysis books offer insights into evaluating a company's financial health, which is crucial for trading stocks. By dedicating time to reading heavy subjects, traders can fortify their knowledge base and make informed decisions. 2. Learn From Others In the age of social media and online communities, learning from experienced traders has become more accessible than ever. Platforms like TradingView and Twitter are treasure troves of insights and strategies shared by smart traders. Engaging with these platforms allows you to learn from others' experiences, understand their thought processes, and adopt successful trading strategies. However, a word of caution is necessary here. While learning from others is valuable, it's crucial to develop your own analytical skills and not blindly follow someone else's advice. Use these insights to inform your decisions, but always verify and validate the information before acting upon it. 3. OnChain Metrics In the realm of cryptocurrency trading, where blockchain technology reigns, on-chain metrics can be powerful indicators of market trends. Tools like GlassNode and ArkhamIntelligence provide insights into on-chain activities, such as large transactions made by institutional investors (Smart Money) or significant movements by whales (holders of large amounts of cryptocurrency). Monitoring these metrics can give you a sense of potential market movements and sentiment shifts. However, it's important to remember that while on-chain metrics can provide valuable context, they are not foolproof predictors of price movements. Cryptocurrency markets are influenced by a complex interplay of factors, and combining on-chain data with other types of analysis can yield more accurate insights. 4. Watch the Numbers In trading, numbers are your allies. Monitoring market data, price movements, trading volumes, and other relevant metrics is a fundamental part of a trader's routine. Platforms like Tokenterminal and DefiLlama provide data on token performance and decentralized finance (DeFi) protocols, allowing traders to identify trends and potential opportunities. Unusual spikes or drops in numbers can indicate significant market shifts, which might warrant further investigation. However, like any other analysis method, numbers should be interpreted within the broader market context. One should avoid making impulsive decisions solely based on numerical fluctuations. Trading is a discipline that requires constant learning, adaptability, and discipline. Following a structured daily routine that involves in-depth reading, learning from experienced traders, monitoring on-chain metrics, and analyzing market numbers can greatly enhance a your chances of success. However, it's important to maintain a critical mindset, verify information, and integrate various analysis methods to make well-informed trading decisions. Remember, a robust routine combined with a healthy dose of intuition can be a powerful combination in the world of trading.
INDEX:BTCUSDEducation
by Vestinda
Your ULTIMATE Guide For Time Frames in Trading If you just started trading, you are probably wondering what time frames to trade. In the today's post, I will reveal the difference between mainstream time frames like daily, 4h, 1h, 15m. Firstly, you should know that the selection of a time frame primarily depends on your goals in trading. If you are interested in swing trading strategies, of course, you should concentrate on higher time frames analysis while for scalping the main focus should be on lower time frames. Daily time frame shows a bigger picture. It can be applied for the analysis of a price action for the last weeks, months, and even years. It reveals the historical key levels that can be relevant for swing traders, day traders and scalpers. The patterns that are formed on a daily time frame may predict long-term movements. In the picture above, you can see how the daily time frame can show the price action for the last years, months and weeks. In contrast, hourly time frame reflects intraweek & intraday perspectives. The patterns and key levels that are spotted there, will be important for day traders and scalpers. The setups that are spotted on an hourly time frame, will be useful for predicting the intraday moves and occasionally the moves within a trading week. Take a look at the 2 charts above, the hourly time frame perfectly shows the market moves within a week and within a single day. 4H time frame is somewhere in between. For both swing trader and day trader, it may provide some useful confirmations. 4H t.f shows intraweek and week to week perspectives. Above, you can see how nicely 4H time frame shows the price action on EURUSD within a week and for the last several weeks. 15 minutes time frame is a scalping time frame. The setups and levels that are spotted there can be used to predict the market moves within hours or within a trading session. Check the charts above: 15 minutes time frame shows both the price action within a London session and the price action for the last couple of hours. It is also critical to mention, that lower is the time frame, lower is the accuracy of the patterns and lower is the strength of key levels that are identified there. It makes higher time frame analysis more simple and reliable. The thing is that higher is the time frame, more important it is for the market participants. While lower time frames can help to predict short term moves, higher time frames are aimed for predicting long-term trends.
OANDA:XAUUSDEducation
by VasilyTrader
12
Removing the Guesswork from Trading: Is Trading Gambling?Hello traders of @TradingView community! Today, let's delve into a question that often arises in the trading: Is trading really just another form of gambling? While both trading and gambling involve risk and speculation, they differ fundamentally in their approaches and outcomes. Trading, unlike gambling, is not about chance or luck. It's about making informed decisions based on analysis, strategy, and market trends. Successful traders rely on research, technical and fundamental analysis, and risk management to guide their actions. They aim to identify patterns and trends that increase their probabilities of making profitable trades. On the other hand, gambling is typically a game of chance where the outcome is largely unpredictable. Whether you're playing roulette or rolling dice, the result is random, and your chances of winning are often determined by luck. While some aspects of trading might resemble gambling to an outsider, the key difference is the level of control and analysis involved. Traders use various tools and methodologies to minimize uncertainty and make calculated decisions. They set entry and exit points, incorporate stop-loss orders, and diversify their portfolios to manage risk. Traders focus on developing and executing long-term strategies, steadily building profits over time. In contrast, gambling often entails short-term bets with instant outcomes. Unlike gambling, trading emphasizes risk management. Traders implement stop-loss orders and diversification to protect their investments, showcasing their control over potential losses. In conclusion, trading is far from gambling. It's an intricate practice that requires education, analysis, discipline, and continuous learning. While both involve risk, trading is grounded in strategy and knowledge, allowing traders to manage their risk and work towards achieving their financial goals.
INDEX:BTCUSDEducation
by Vestinda
Poker + Trading = Winning HandHello dear @TradingView community! Today let’s focus on how Poker game enhances trading excellence. In the sports, athletes often engage in cross-training to prevent injuries and boost performance. For instance, football players explore swimming and weight trainings, while runners embrace activities like hiking and cycling. But have you ever considered a form of mental cross-training that could significantly improve your trading skills? Enter the arena of virtual poker. Picture this: Poker and trading, both sedentary pursuits where your mind takes center stage. In the same way athletes focus on honing specific muscle groups, traders must nurture their mental agility. In this realm, poker emerges as potent tool for refining skills that transcend the trading landscape. 1. Risk Management: A Calculated Gamble In the world of poker, going "all in" can swiftly lead to losing everything on a weak hand, much akin to the risks of trading. Strategic players understand the value of managing risks. Just as traders avoid recklessly investing their entire capital, poker players refrain from putting all their chips on the line. The lesson is clear: prudent risk management is the bedrock of success. When trading, the rule of never jeopardizing more than 1% of your account on a single trade reigns supreme. This practice mimics poker's ante system, where even a $100 buy-in allows you to engage in up to 100 hands, each risking only 1%. By staying in control and considering odds, both poker players and traders minimize the chances of "blowing up" their hard-earned gains. 2. Emotional Mastery: The Art of the Poker Face A trader's prowess lies in following set rules and staying emotionally neutral. In trading, think "Spock-like" focus, or the legendary "poker face." Concealing emotions and making calculated moves regardless of the hand you're dealt defines success. Just as a poker player keeps a straight face to prevent opponents from reading their hand, traders curb emotional impulses that can lead to hasty decisions. 3. Probabilities and Persistence Ever heard the phrase "You gotta be in it to win it"? While it may apply to lotteries, poker and trading echo a more nuanced sentiment. In both arenas, it's about understanding the odds and playing consistently. Just as a skilled poker player capitalizes on favorable odds to raise the stakes, traders must recognize high-probability patterns and seize opportunities. 4. Humility: Staying Grounded in a Fickle Realm In poker, overconfidence can be fatal. The same rings true in trading. A winning streak can inflate one's ego, leading to rash decisions. A humbling poker loss teaches the crucial lesson of respecting probabilities and staying vigilant. By acknowledging that the market, like the poker table, is unpredictable, traders guard against costly mistakes borne from hubris. 5. Setting Financial Goals: Knowing When to Fold Casinos shower players with perks, knowing the allure of winning often overshadows rationality. Similarly, traders who've experienced an early-session surge often squander gains through overtrading. Establishing a financial target and having the discipline to "fold" when achieved prevents pitfalls fueled by greed. Just as a poker player may walk away after doubling their money, traders secure profits by adhering to predefined goals. 6. Community and Learning: The Power of Like-Minded Allies Thriving in a community of dedicated individuals fuels growth. Poker players and traders alike benefit from shared insights and experiences. Engaging in online poker communities or joining global poker circles offers a haven for mutual learning. As traders refine their craft, they unlock not only poker prowess but also a deeper understanding of market dynamics. Intriguingly, virtual poker emerges as an unexpected but valuable ally for traders seeking to enhance their skills. It's more than a game; it's a training ground for honing the mental acuity vital for success in trading's challenging realm. So, are you ready to deal your hand and sharpen your trading edge? Remember, whether you're at the poker table or the trading desk, calculated moves, emotional control, strategic thinking, and community engagement are your aces in the hole. Best of luck, and who knows, maybe we'll even cross paths at the poker table one day!
INDEX:BTCUSDEducation
by Vestinda
The Cup and Handle Pattern in TradingGreetings, fellow traders and investors of @TradingView 📈🚀 Keep your eye for cup and handle pattern, a chart formation that hints at potential market possibilities. The Cup and Handle: Visualize a cup, complete with a 'U' shape and accompanied by a handle. This chart pattern mimics that very shape, capturing price shifts that can hint at noteworthy market movements. Here's the essence: a cup forms through a gradual downward trajectory, leading to a stabilizing phase, and eventually, a rally that mirrors the extent of the initial decline. This sequence of price action is pivotal in identifying the characteristic cup and handle formation. Initiated by low trading volume, the formation gathers momentum with rising volume as the left lip of the cup takes form. Subsequently, volume recedes near the cup's bottom, only to surge again towards the right lip and breakout. The initiation involves a dip in price, followed by stabilization, and finally, a rally that aims to retrace the plummet's impact. As the cup materializes, it curves into a 'U' shape, while the price dips slightly to craft the handle. Notably, the handle must be smaller than the cup and should exhibit a minor downward trend within the trading range. It's imperative that the handle doesn't dip below one-third of the cup's depth. Strategy and Execution Now, how can you effectively trade this compelling pattern? The strategy involves positioning a limit buy order just above the upper resistance of the cup and handle. Simultaneously, set a stop-loss order slightly below the handle's support. This calculated approach ensures that your buy order triggers only when the price breaks through the upper resistance level. This cautious measure shields you from premature entry due to false breakouts. For traders seeking an extra layer of assurance, patiently waiting for the price to conclusively close above the upper trendline of the handle can provide a higher degree of certainty before initiating the trade. 🌟 Wishing you successful trades and profitable outcomes as you leverage insights from @Vestinda. Remember, patience and careful analysis are your allies on trading path. Happy trading! 💰
INDEX:BTCUSDEducation
by Vestinda
2
Trading Exposed: The Hard-Hitting Truth Behind the 99% Who Fail 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.
OANDA:XAUUSDEducation
by VasilyTrader
12
Attention Traders. DON'T Make This MISTAKE in Top-Down Analysis Most of the traders apply multiple time frame analysis completely wrong. 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!❤️
OANDA:XAUUSDEducation
by VasilyTrader
15
Analyzing Confirmation Bias in Forex and Gold Trading Psychological biases play a significant role in shaping trading decisions, and one such bias that demands scrutiny is confirmation bias. Confirmation bias refers to the tendency of individuals to seek out, interpret, and emphasize information that supports their existing beliefs or preconceptions while ignoring contradictory evidence. In the forex and gold trading , confirmation bias can have profound implications for traders, influencing their decision-making processes and potentially leading to suboptimal outcomes. This article aims to provide an in-depth understanding of confirmation bias and its impact on forex and gold trading, along with strategies to mitigate its negative effects. Impact of Confirmation Bias on Forex Trading: 1. Selection and Interpretation of Information: Traders under the influence of confirmation bias tend to cherry-pick information that supports their existing beliefs and ignore or downplay evidence that contradicts them. This can result in an incomplete and biased assessment of the market's true conditions. 2. Overconfidence and Undue Risk-Taking: Confirmation bias can breed overconfidence, leading traders to overlook potential risks. Traders may take excessive risks by holding onto losing trades in the hope that the market will eventually validate their initial belief. 3. Missed Trading Opportunities: By focusing solely on information that confirms their existing beliefs, traders may overlook potential trading opportunities that could have been profitable. This bias restricts their ability to adapt to changing market conditions and identifying alternate trade setups. Identifying Confirmation Bias: 1. Selective Information Gathering: Traders may exhibit a tendency to seek out sources of information that align with their existing beliefs while ignoring or avoiding contradictory viewpoints. 2. Narrow Framing: Traders might frame and interpret market information in ways that support their pre-existing assumptions, inadvertently excluding alternative perspectives. 3. Dismissing Contradictory Evidence: When presented with evidence that contradicts their beliefs, traders may either reject it outright or rationalize why it is irrelevant or unreliable. Overcoming Confirmation Bias: 1. Seek Diverse Perspectives: Encourage a broad range of viewpoints by actively seeking out perspectives that challenge your existing beliefs. Engage in discussions with other traders, join forums, or seek professional opinions to diversify your understanding. 2. Consistent Record-Keeping: Maintain a trading journal that accurately documents your trades, rationale, and outcomes. Regularly review this journal to identify any patterns or biases that might be influencing your decision-making process. Confirmation bias represents a significant cognitive obstacle for traders in forex and gold trading. Understanding its nature and recognizing its impact are crucial steps towards minimizing its negative effects. By adopting strategies focused on self-awareness, diversification, and collaboration, traders can enhance their decision-making processes and improve their overall profitability while navigating the complexities of the forex and gold markets. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
9
Forex Trading Basics: Charting Your Way to SuccessIntroduction Forex trading is the practice of buying and selling different currencies to profit from market fluctuations. This financial market is the largest in the world, with an average daily trading volume of $6.6 trillion, making it an attractive arena for traders. In this article, we'll cover some fundamental principles of forex trading, and show you where charts can help you understand and apply these principles. Forex Trading Principles Understanding Forex Market: The Forex market is a decentralized global marketplace where participants buy, sell, exchange, and speculate on the value of different currencies. Currency pairs are traded, such as EUR/USD (Euro/US Dollar) or USD/JPY (US Dollar/Japanese Yen). The first currency in the pair is the base currency, and the second is the quote currency. Understanding how currency pairs are quoted and the concept of exchange rates is essential for Forex trading. Factors that influence the Forex market include economic indicators, geopolitical events, interest rates, inflation, and market sentiment. Traders need to keep abreast of these factors to make informed trading decisions. Trading Strategy: A Forex trading strategy provides a systematic approach to navigate the complexities of the market. It helps traders identify entry and exit points, manage trades, and minimize emotional decision-making. Different trading styles, such as day trading (short-term), swing trading (mid-term), and position trading (long-term), require distinct strategies. Some popular Forex trading strategies include trend following, breakout trading, range trading, and carry trading. Traders must align their chosen strategy with their risk tolerance, available time for trading, and personal financial goals. Risk Management: Effective risk management is vital to protect your capital and survive in the Forex market. It involves determining the appropriate position size based on your account balance and risk appetite. Setting stop-loss orders is crucial to limit potential losses if a trade goes against you. Additionally, traders should consider setting profit targets to secure gains and practice sound money management principles. Risk management ensures that no single trade or a series of losses can wipe out a substantial portion of your trading account. Use of Indicators: Technical indicators are tools used to analyze price charts and identify potential trading opportunities. Fractals, for example, are indicators that highlight potential reversal points in the market. They consist of five consecutive bars, with the middle bar showing the highest (or lowest) price. Traders can use other indicators like Moving Averages, Relative Strength Index (RSI), MACD, and Bollinger Bands, among others. However, it's essential not to rely solely on indicators but to combine them with other forms of analysis and market context for more accurate decision-making. Applying Charts in Forex Trading Identifying Patterns: Forex charts are instrumental in recognizing chart patterns, which are recurring formations that can indicate potential market movements. The 'head and shoulders' pattern showed on the chart below is just one example. Other common patterns include double tops and bottoms, wedges, flags, and pennants. Each pattern has its own implications for price direction and can help traders anticipate trend reversals or continuations. Understanding these patterns and incorporating them into your analysis can significantly improve your trading decisions. Using Indicators: Indicators are mathematical calculations based on historical price and volume data, providing additional insights into market trends and potential entry or exit points. Besides fractals, traders often use indicators like Moving Averages, Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Bollinger Bands. These indicators help traders identify overbought or oversold conditions, trend strength, and potential trend changes. However, it's important to use indicators wisely and not overload charts with too many indicators, as it can lead to conflicting signals and confusion. Determining Entry and Exit Points: Charts serve as a primary tool for determining optimal entry and exit points for trades. Technical analysis tools, along with support and resistance levels, can guide traders in identifying areas of potential buying or selling interest. By combining technical analysis with their trading strategy, traders can time their entries and exits more effectively, enhancing the risk-reward ratio of their trades. Risk Management: Effective risk management is critical in Forex trading, and charts play a significant role in this aspect. By visualizing price movements and key levels on the chart, traders can determine appropriate stop-loss levels to limit potential losses. They can also calculate the position size based on their risk tolerance and the distance between their entry point and stop-loss level. Charts allow traders to assess the risk-reward ratio of a trade before executing it, ensuring they only take trades with favorable risk-to-reward profiles. Conclusion In conclusion, achieving success as a Forex trader requires a holistic approach that encompasses several critical elements. Understanding the basic principles of the Forex market sets the foundation for making informed decisions. Recognizing the role of currency pairs, exchange rates, and the factors influencing the market provides a solid framework for effective trading. Developing a robust trading strategy tailored to your trading style and risk tolerance is paramount. Whether you opt for day trading, swing trading, or position trading, having a well-defined plan will guide your actions and protect you from impulsive decisions driven by emotions. Charts serve as indispensable tools in Forex trading, enabling traders to visualize market data and identify key patterns and trends. Mastering the art of chart analysis empowers traders to spot potential opportunities, determine entry and exit points, and manage risk effectively. However, success in Forex trading is not solely reliant on theoretical knowledge and technical skills. Consistency and discipline play a crucial role. Maintaining consistency in your trading approach and adhering to your trading plan even during challenging market conditions can lead to long-term success. Discipline is essential in curbing the temptation to deviate from your strategy due to fear or greed. Practicing patience and avoiding overtrading are equally vital aspects of maintaining discipline. Moreover, the Forex market is dynamic and subject to constant change. Staying updated with market trends, economic events, and geopolitical developments is indispensable. Continually refining your trading strategies and adapting to evolving market conditions will keep you ahead of the curve. Additionally, never forget the importance of risk management. Preserving your trading capital through proper position sizing, setting stop-loss orders, and managing risk prudently is the key to surviving in the Forex market over the long term. In conclusion, the journey to becoming a successful Forex trader is a continuous process of learning, analyzing, and improving. Embrace a comprehensive approach that combines knowledge, strategy, chart analysis, consistency, discipline, and risk management. By doing so, you position yourself for success in the ever-changing and exciting world of Forex trading.
Education
by formaaaa
1
Improve Your Trading | The Ultimate CHECKLIST For Your Trades If you are looking for a way to increase the accuracy of your trades, I prepared for you a simple yet powerful checklist that you can apply to validate your trades. ✔️ - The trades fit my trading plan When you are planning to open a trade, make sure that it is strictly based on your rules and your entry reasons match your trading plan. For example, imagine you found some good reasons to buy USDJPY pair, and you decide to open a long trade. However, checking your trading plan, you have an important rule there - the market should strictly lie on a key level. The current market conditions do not fit your trading plan, so you skip that trade. ✔️ - The trade is in the direction with the trend That condition is mainly addressed to the newbie traders. Trading against the trend is much more complicated and riskier than trend-following trading, for that reason, I always recommend my students sticking with the trend. Even though USDCHF formed a cute double bottom pattern after a strong bearish trend, and it is appealing to buy the oversold market, it is better to skip that trade because it is the position against the current trend. ✔️ - The trade has stop loss and target level Know in advance where will be your goal for the trade and where you will close the position in a loss. If you think that it is a good idea to buy gold now, but you have no clue how far it will go and where can be the target, do not take such a trade. You should know your tp/sl before you open the trade. ✔️ - The trade has a good risk to reward ratio Planning the trade, your potential reward should outweigh the potential risks. And of course, there are always the speculations about the optimal risk to reward ration, however, try to have at least 1.3 R/R ratio. Planning a long trade on EURNZD with a safe stop loss being below the current support and target - the local high, you can see that you get a negative r/r ratio, meaning that the potential risk is bigger than the potential reward. Such a trade is better to skip. ✔️ - I am ok with losing this trade if the market goes against me Remember that even the best trading setups may occasionally fail. You should always be prepared for losses, and always keep in mind that 100% winning setups do not exist. If you are not ready to lose, do not even open the position then. ✔️ - There are no important news events ahead That rule is again primarily addressed to newbies because ahead and during the important news releases we have sudden volatility spikes. Planning the trade, check the economic calendar, filtering top important news. If important fundamentals are expected in the coming hours, it's better to wait until the news release first. Taking a long trade on Gold, you should check the fundamentals first. Only after you confirm, that there are no fundamentals coming soon, you can open the position. What I like about that checklist is that it is very simple, but you can use it whether you are a complete newbie or an experienced trader. Try it and let me know if it helps you to improve your trading performance. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
6
Unveiling the True Journey of a Forex Trader Entering the world of forex trading can be an exhilarating yet challenging endeavor. As a beginner, there is a multitude of uncertainties, doubts, and learning curves to overcome. However, with dedication, persistence, and the right mindset, every trader can journey from being a novice to becoming a seasoned professional. In this article, we will delve into the real journey of a forex trader, highlighting the key stages, hurdles faced, and the ultimate triumph of reaching pro status. Stage 1: The Humble Beginnings Every forex trader starts somewhere – and that somewhere is usually as a complete beginner. It begins with the excitement of discovering forex, learning about concepts like currency pairs, pips, and leverage. Novice traders spend their time absorbing knowledge from various sources, including books, online courses, and forums. They explore different trading platforms, practice with demo accounts, and study charts tirelessly. Stage 2: The Quest for Knowledge The second stage is characterized by a deepening understanding of the forex market. Traders realize the significance of fundamental analysis, technical analysis, and risk management. They invest time and effort in learning various trading strategies and indicators. This period often involves experimenting with different approaches and finding a personal trading style that aligns with their goals and personality. Stage 3: The Psychological Battle Advancing to the intermediate level of forex trading brings about a psychological battle that often catches traders off guard. Emotions such as fear, greed, and impatience can significantly impact decision-making. Traders must cultivate discipline, control their emotions, and stick to their trading plans. Stage 4: Gaining Experience and Refining Skills With consistent trading and gaining experience, traders gradually develop a sense of familiarity with the forex market. They begin to identify recurring patterns, understand market cycles, and spot potential trading opportunities. Risk management becomes an instinct rather than a conscious effort, and traders learn to manage their positions effectively. Stage 5: Mastery and Consistent Profits Finally, after going through the previous stages, traders reach the pinnacle of their forex journey – becoming a pro. At this stage, they have developed a robust trading routine, which incorporates continuous analysis, adapting strategies to changing market conditions, and effectively managing risk. Successful traders are able to consistently generate profits while keeping emotions in check. The journey from novice forex trader to professional is not only about understanding the mechanics of trading, but also about mastering the psychological aspects and developing a disciplined mindset. It requires perseverance, constant learning, and an ability to adapt to ever-changing market conditions. By continuously refining their strategies, managing risk, and staying dedicated to their goals, forex traders can make the remarkable transformation from beginners to experts in this dynamic industry. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
6
3 Best Market 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. Good luck!
OANDA:XAUUSDEducation
by VasilyTrader
34
Learn Why You Should Study Multiple Time Frame Analysis In my daily posts, I quite frequently use multiple time frame analysis. If you want to enhance your predictions and make more accurate decisions, this is the technique you need to master. In the today's post, we will discuss the crucial importance of multiple time frames analysis in trading the financial markets. 1️⃣ Trading on a single time frame, you may miss the important key levels that can be recognized on other time frames. Take a look at the chart above. Analyzing a daily time frame, we can spot a confirmed bullish breakout of a key daily resistance. That looks like a perfect buying opportunity. However, a weekly time frame analysis changes the entire picture, just a little bit above the daily resistance, there is a solid weekly resistance. From such a perspective, buying GBPUSD looks very risky. 2️⃣ The market trend on higher and lower time frames can be absolutely different. In the example above, Gold is trading in a bullish trend on a 4h time frame. It may appear for a newbie trader that buyers are dominating on the market. While a daily time frame analysis shows a completely different picture: the trend on a daily is bearish, and a bullish movement on a 4H is simply a local correctional move. 3️⃣ It may appear that the market has a big growth potential on one time frame while being heavily over-extended on other time frames. Take a look at GBPJPY: on a weekly time frame, the market is trading in a strong bullish trend. Checking a daily time frame, however, we can see that the bullish momentum is weakening: the double top pattern is formed and the market is consolidating. The sentiment is even changing to a bearish once we analyze a 4H time frame. We can spot a rising wedge pattern there and its support breakout - very bearish signal. 4️⃣ Higher time frame analysis may help you to set a safe stop loss. In the picture above, you can see that stop loss placement above a key daily resistance could help you to avoid stop hunting shorting the Dollar Index. Analyzing the market solely on 1H time frame, stop loss would have been placed lower and the position would have closed in a loss. Always check multiple time frame when you analyze the market. It is highly recommendable to apply the combination of at least 2 time frames to make your trading safer and more accurate. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
6
Exploring the Crucial 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!❤️
OANDA:XAUUSDEducation
by VasilyTrader
11
Learn the ONLY REASON Why You Should Try on RETEST!Hey traders, Being breakout traders we have two options for trade entries: when the breakout is confirmed, we can either open a trading position aggressively once the candle closes above/below the structure, or we can be conservative and wait for a retest of the broken structure first. What is peculiar about the second option is the fact that the majority of pro traders prefer the retest entries. In this article, we will discuss the pros and cons of retest trading. ✔️First, let's discuss whether the retest is guaranteed. NO. How often do we see that? Around 50-55% of the time. Does it mean that 45-50% of breakout trades will be missed? YES. The main disadvantage of retest trading is that a lot of trading opportunities will be missed. Occasionally the breakout triggers a strong market rally, not letting the price return back to the broken structure. Take a look at that triangle pattern on Bitcoin. The price broke its support BUT did not retest it, so trading only the retest, the opportunity would be missed. So what is the point to wait for a retest then? Why let the market go without us in case if there is no retest? ✔️Most of the time the breakout candle closes quite far from a broken level. Opening the trading position once the candle closes and setting a stop loss below/above the broken structure, one can get a very big stop loss. Such a big stop that its pip value exceeds or equals the potential return. 🖼In the picture, I drew a classic channel breakout trade. The aggressive trader opened a long position as the candle closed above the channel's resistance. His stop loss is lying below the lower low of the channel. Analyzing his risk to reward ratio, we can see that his reward equals his risk. On the right side is the position of the conservative trader. His stop loss in lying on the same level. However, instead of opening a trading position on a breakout candle, he decided to wait for a retest of the broken resistance of the channel. Just a slight adjustment of his entry-level gives him a completely different risk to reward ratio. ❗️Patience pays in trading. Missing some trades a retest trader will outperform the aggressive trader in the long run. Trading is about weighting your potential gains & losses. Paying commissions and swaps for every trade, it is much better for us to trade less but pick the setups that give us a decent potential reward. What type of trading do you prefer? Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
7