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Harsh Truth About Trading: In Books VS In Reality Most traders start their trading journey by studying theory first, reading books or taking video courses before putting these newfound skills into practice. But once they start trading on a real market, they quickly realize that things are not as straightforward as the books make them out to be. In this educational article, we will take a critical look at the difference between theoretical knowledge and practical experience. 📍And first of all, do not get me wrong. I am not trying to imply that trading books or courses are bad. Theoretical knowledge is essential for successful trading, and of course the books are the best source of that. The problem is, however, that books can be misleading. The examples in books are always tailored. When the authors are looking for the examples of the patterns, of key levels, they are looking for the ideal cases. 📍The problem becomes even worse, when one start studying the trade examples in books. And of course, the authors choose the brilliant winning trades with huge take profits and tiny stop losses. I guess you saw these pictures of "sniper" entry trades with 5/1 R/R. The inexperienced trader may start thinking that the markets are perfect and act in total accordance with the books. That all the trades that he will take will bring tremendous profits. That the identified patterns will work exactly as it was described. 📍The harsh truth is that books and courses are simply the compositions of different examples, cases and market situations. In reality, each and every trading setup is unique. The reaction of the price to the same pattern will be always different. Please, realize the fact that books are only good for acquiring the knowledge. But in order to survive on financial markets, you need the experience. And the experience will be gained only after studying thousands of real market examples in real time. 📍Here is the example of a double top pattern that we were trading with my students on AUDJPY. In books, double tops are always perfect. Once the market breaks the neckline, the price retests that and then quickly drops. So the one can set a tiny stop loss and a big take profit. However, after a retest of a broken neckline, AUDJPY bounced and the market maker was stop hunting the newbies. Our stop loss was way above the head, and we managed to survive. Even though the pattern triggered a bearish movement, the reaction of the market was far from perfect. Be prepared, that the market will much different from what you see in the books. Good luck to you!

Education

by VasilyTrader

22 trading rules The market rewards discipline and requires you to fulfill your specific role. For instance, as a tattoo artist, your responsibility is to provide quality tattoo, while as a trader, your task is to exercise discipline in decision-making. If you remain disciplined, any reasonable strategy can yield profits in the long term. However, even the most flawless strategy will fail to generate income if you lack self-control. Here are some guidelines to follow: 1.Maintain discipline consistently. Trading demands unwavering discipline at all times. Save extreme emotions, excitement, and other non-work-related feelings for your personal hours. While working, stay focused and determined, adhering to your plan and experience. 2.Always reduce the risk of failed trades. If you experience a series of unprofitable transactions, decrease the volume or percentage of risk from your deposit, rather than increasing it. Some individuals mistakenly believe that if they have had three consecutive losses, the fourth trade is bound to be profitable and will make up for the previous losses. However, the chances of profit or loss in the fourth trade remain the same. Relying on luck is unnecessary. 3.Avoid turning profitable trades into losing ones. Close positions promptly when you recognize the risk of holding them further. If there are signs of market weakness and continuing to hold the position jeopardizes your profit, either take your existing profit or exit with a small loss. In most cases, you will have the opportunity to find another entry point that is equally good or even better. 4.Ensure that your highest loss does not exceed your highest profit. Keep a record of your trades to determine the mathematical ratio of profit to loss and the ratio of profitable to losing trades. If your losses surpass your profits, you need to optimize your system; otherwise, it may become unprofitable in the long run. 5.Develop a trading system and stick to it. Avoid constantly switching from one system to another. If you decide to become a trader, select a specific approach and commit to it. Over time, you will gain a deep understanding of the system and develop your own market perspective. 6.Be true to yourself; don't try to imitate others. If you find that scalping is not suitable for you, consider intraday or swing trading instead. Just because someone excels at intraday trading while you excel at swing trading doesn't mean you should abandon your preferred style. Each individual has their own trading style, and there is a style that matches every personality. Some traders earn substantial profits by only opening ten trades per year, while others achieve the same level of success by opening ten trades per day. Moreover, someone may be comfortable opening a trade with a large lot size, while you prefer a maximum of one lot. This doesn't imply that you are a poor trader; it simply indicates that everyone has their own comfort zone. Discomfort in trading can only be detrimental. Stay true to yourself and find your own style. 7.Remember that there will always be another day to trade, so don't risk too much. Some beginners risk 20-50% or even more of their deposit, only to find themselves with nothing when a profitable entry point arises. Such risks often shatter one's psychology, and it can be difficult to recover. However, if you make a few mistakes with standard and small risks, you will always have the next day to learn from and correct your errors. 8.Earn the privilege to trade in high volumes. Even if you have tens or hundreds of thousands of dollars in your account, it doesn't mean you should immediately start trading, for example, 10 lots. Begin by trading with the minimum volume allocated for your deposit. Only when you close ten consecutive sessions in profit should you consider increasing the volume. 9.The first conscious loss you encounter is the most valuable. It is during this moment that you understand the significance of stop-loss orders as part of your system. A stop-loss serves as a mechanism to exit a position when the trade is no longer favorable. By recognizing this and reacting appropriately, you are able to protect your account from significant losses. Understand that a stop-loss order is a benefit. See point 15. 10.Avoid relying on hope or prayer. If you catch yourself hoping for a positive outcome in a trade, it likely means that the trade is no longer profitable. Avoid concealing this fact from yourself as a trader. This psychological inclination to hope shields us from emotional distress and difficult decisions. However, as a trader, you must objectively assess the situation. If you realize that you are starting to rely on hope, reevaluate the facts and conduct a thorough analysis of your trade. It may no longer be as favorable as you initially thought. 11.Don't overly concern yourself with news. While trading the news is a separate strategy that may work for some traders, most try to avoid it. If the news is already known in advance, the market will react to it beforehand. However, if the information becomes clear only during the news release, it becomes challenging to trade based on such inputs. News that is widely broadcasted on TV or the internet tends to be outdated information when it comes to the market. 12.Choose a trading style that suits your circumstances. If you have a small account and can only afford short stop-loss levels, you may need to start with scalping or intraday trading. If you possess patience and adequate capital, swing trading could be an option. Long-term trading generally requires significant capital. 13.Embrace your losses. It doesn't mean you have to enjoy losing money. However, during your trading journey, you will inevitably experience losses. If you have a negative mindset towards losses, it will hinder your overall performance. Recognize that by exiting trades promptly and accepting short-term losses, you safeguard your account from larger losses in the long run. Learn to appreciate the importance of managing losses effectively. 14.Avoid setting excessively large stop-loss levels. Doing so will erode your profits from small trades. Consequently, instead of achieving a small profit, you may end up at breakeven or a slight loss, even if your trade initially showed promise. 15.Take consistent actions each day or week. Set a goal to capture a certain number of pips or points daily if you are a scalper or weekly if you trade intraday (the specific numbers provided here are for illustrative purposes and should not be taken as objectively evaluated results). By accumulating small gains over time, you can earn a significant amount by the end of the year. 16.Don't rely on a single trade for salvation. Some traders mistakenly believe that a single trade has the potential to generate substantial profits, recover previous losses, or significantly impact their overall performance. However, trading revolves around a series of transactions. No single trade can dictate your success. Instead, your behavior across ten or twenty trades holds tremendous importance in surviving and thriving in the market. 17.Consistency breeds confidence and control. Starting each morning with the knowledge that following your rules will result in profitable trades instills a sense of assurance. Similar to other traders, begin your day by reviewing the charts you trade and gathering the necessary information—perform top-down analysis, assess points of interest, liquidity, order flow, and more. Maintain this ritual consistently, as repeated actions are essential for earning profits in trading. 18.Master the art of position management. If you find yourself in a trade that is progressing favorably, consider partially closing your position to protect your profits in case the price suddenly reverses. Being flexible in managing your positions can lead to increased profitability and emotional balance in the market. 19.Execute the same trades repeatedly. Focus on specific trade setups that have proven successful for you. Avoid trying to trade multiple patterns simultaneously. Instead, identify two or three formations that work well for you and trade them consistently. Become an expert in those setups and execute them confidently and precisely. Avoid spreading yourself too thin. 20.Avoid excessive doubt and overanalysis. During the execution of a trade, trust your analysis and decision-making process. Doubts and unnecessary analysis during a trade can lead to detrimental outcomes. Overthinking can consume you and make it challenging to differentiate between the right and wrong decisions. Leave fluctuations and excessive analysis to the market. Conduct trade analysis before or after trades, not during them. 21.In the eyes of the market, all trades are equal. At the start of each trading day, everyone is on an equal footing. You haven't made any profits or losses yet. Your earnings depend solely on your actions. If you adhere to discipline and follow your predetermined rules, you will generate profits. 22.The market is an impartial judge of your trades. The market doesn't play favorites; it remains indifferent to your presence. Respect the market's authority and refrain from attempting to defy it. Engaging in a battle against the market is akin to fighting your reflection in a mirror. Instead, focus on understanding and following the market's rules. • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!

Education

by Crypto4light

Learn The Main Elements of The Trading Strategy There are hundreds of different trading strategies based on fundamental and technical analysis. These strategies combine different tools and trading techniques. And even though, they are so different, they all have a very similar structure. In this educational article, we will discuss 4 important elements every trading strategy should have. 1️⃣ The first compontent of a trading strategy is the list of the instruments that you trade. You should know in advance what assets should be in your watch list. For example, if you are a forex trader, your strategy should define the currency pairs that you are trading. 2️⃣ The second element of any trading strategy is the entry reasons. Entry reasons define the exact set of market conditions that you look for to execute the trade. For example, trading key levels with confirmation, you should wait for a test of a key level first and then look for some kind of confirmation like a formation of price action pattern before you open a trade. 3️⃣ The third component of a trading strategy is the position size of your trades. Your trading strategy should define in advance the rules for calculating the lot of size of your trades. For example, with my trading strategy, I risk 1% of my trading account per trade. When I am planning the trading position, I calculate a lot size accordingly. 4️⃣ The fourth element of any trading strategy is trade management rules. By trade management, I mean the exact conditions for closing the trade in a loss, taking the profit and trailing stop loss. Trade management defines your actions when the trading position becomes active. Here is the example. I took a trade on Friday, following my top-down trading strategy. I was trading Dollar Index (the instrument that is in my trading list). Entry reason was a test of a key level on a daily and a formation of a horizontal range on 1H time frame. The position was opened on a retest of its broken neckline. Position size of this trade was based on 1% of my trading deposit. Stop loss and targets were structure based. Make sure that your trading strategy includes these 4 elements. Of course, your strategy might be more sophisticated and involve more components, but these 4 elements are the core, the foundation of any strategy.

Education

by VasilyTrader

Daily Time Frame is The MAIN Time Frame to Trade! Learn WHY: Hey traders, You frequently ask me what is the most important time frame to analyze and follow. And even though I must admit that multiple time frames must be taken into consideration for successful trading like weekly/daily/4h/1h. Among them, there is the one that is universally considered to be principal. That is a daily time frame. There are a lot of reasons why so many traders rely on a daily time frame: 1️⃣ - Daily time frame shows a global market trend at the same time reflecting a mid-term and short-term perspective letting the trader catch trend following moves and spot early reversal signs. 2️⃣ - Covering multiple perspectives, daily time frame is the foundation of the majority of the trading strategies being the main source of key levels & pattern analysis. 3️⃣ - Daily time filters out news events that happened during the trading day. It shows the composite reaction of the market participants to all the data posted in the economic calendar. 4️⃣ - Daily time frame reflects all trading sessions. Within one single candle, we see the outcome of the Asian, London, and New York Sessions. 5️⃣ - Daily candle filters out all the noise from lower time frames & intraday price fluctuations and sudden spikes & rejections. 6️⃣ - Covering all the trading sessions, daily time frame mirrors the activities of big players like hedge funds and banks. Showing us the flow & direction of big money. ⚠️Being so important for analysis, do not neglect other time frames. The most accurate trading decision can be made only relying on a combination of intraday and daily time frames. What is your favorite time frame to trade? ❤️Please, support my work with like, thank you!❤️

Education

by VasilyTrader

To TA or not to TA: The Pros and Cons of Technical Analysis Technical analysis is one of the most popular trading strategies used by traders worldwide. It involves analyzing past market data, primarily price, market structure, and volume, to identify trends and forecast future price movements. While technical analysis has several benefits, it also has some drawbacks that traders must consider before incorporating it into their trading strategy. Today we will explore the benefits and drawbacks of using technical analysis in trading. Benefits of Technical Analysis: Identifying Trends: Technical analysis helps traders identify trends in the market, which is crucial for making profitable trades. There are several ways a trader can follow the trend of their desired asset using technical analysis. Be it moving averages, supertrends, or channels we really have many options. Entry and Exit Points: Technical analysis helps traders determine the best entry and exit points for their trades. There are countless strategy options to utilize when considering the sheer number of indicators that exist. In our opinion finding a system that makes sense, is robust, and simple usually proves to be the most successful when proper discipline is used. Risk Management: Proper technical analysis can help traders mitigate risk and protect their accounts. Stop losses are one method that we covered in a previous post. There are countless ways to set up stop losses using TA, but there are other techniques that can be used as well. Hedging is a risk management strategy used to offset potential losses from adverse price movements in an asset. In trading, hedging involves opening a position in the opposite direction of an existing position. This position is usually in the same or a related asset to reduce the overall risk exposure. As an example, if a trader holds a long contract in a stock, they may hedge their position by opening a short contract in the same stock or a related asset such as an ETF or index. Technical analysis can be used to identify favorable conditions for hedging between assets. Hedging can help traders manage risk and protect profits, but it can also limit potential gains. Confirmation of Fundamental Analysis: Technical analysis can confirm fundamental analysis by providing traders with an objective view of the market. For instance, if a trader believes that a company's stock is undervalued based on its financial statements, technical analysis can confirm this by showing that the stock is oversold. Drawbacks of Technical Analysis: Subjectivity: Technical analysis is subjective as different traders can interpret the same chart differently. This can lead to conflicting signals and confusion, especially for novice traders who aren’t as familiar with chart patterns. A prime example would be Bitcoin right now. Or False Signals: In technical analysis, false signals can be a significant issue in trading because they can lead to poor investment decisions and potential losses. For example, technical indicators may provide a false signal that a stock is oversold or overbought, causing a trader to make a trade that is not profitable. False signals can also occur due to market volatility or unexpected news events. To reduce the risk of false signals, traders can use a variety of technical indicators and combine them with fundamental analysis to confirm trading decisions. Additionally, risk management strategies such as stop-loss orders can help limit potential losses from false signals. Lagging Indicators: Technical analysis relies on lagging indicators, which means that traders are reacting to past price movements. This can result in missed opportunities, or poorly timed entries, especially in fast-moving markets. A very good example of a lagging indicator that is widely used is moving averages of any type. Leading Indicators: There are some indicators that classify as leading indicators, but there are dangers to them with look-ahead bias. Look-ahead bias in indicators is a common issue in technical analysis. It occurs when historical data is used to construct an indicator that would not have been available at the time of the trade. This can lead to inaccurate signals, as the indicator may appear to predict future market movements, when in fact it is simply based on hindsight. An example of this would be the Ichimoku Cloud, specifically the cloud itself. Over-use and Over-Reliance: This can mean a few things in trading. One of which is where traders will rely heavily on many indicators all at once. This can cause confusion as some indicators can have contrarian signals to one another. Traders who rely solely on technical analysis may miss out on important fundamental factors that could affect the market. It is important to look at multiple objective vantage points of your desired asset. For instance, a sudden change in interest rates or economic policies could have a significant impact on the market, which technical analysis may not account for. In cryptocurrency Conclusion: In conclusion, technical analysis has several benefits, including identifying trends, entry and exit points, risk management, and confirmation of fundamental analysis. However, it also has drawbacks, including subjectivity, false signals, leading/lagging indicators, and over-reliance. Therefore, traders must use technical analysis in conjunction with other trading strategies, such as fundamental analysis, to make informed trading decisions. Being mindful of the pitfalls of common market analysis techniques can make you a better trader over time as you grasp a more comprehensive view of the market, and in turn, make more informed decisions when trading.

Education

How to Trade the Pin Bar Pattern on Forex and Gold 🕯 The pin bar is a powerful price action setup that tells a fascinating story concerning price momentum and the possibility of an imminent reversal in price direction. A pin bar is a Japanese candlestick that has a long wick on one side and a small body. Understanding the story behind the pin bar is essential. 📚What does the pin bar candlestick pattern tell us about market psychology? 📉This pin bar followed a strong downward trend, and the presence of a long tail below the body tells us that the market rejected any attempt by overly exuberant sellers to move the price lower. The length of the tail speaks to the strength of the rejection. 📈The pin bar followed by a strong uptrend, and the presence of a long tail above the body tells us that the market rejected any attempt by overly exuberant buyers to move the price higher. The length of the tail speaks to the strength of the rejection. ⭐️The best pin bars are bearish pin bars that form at the top of an extended move up, and bullish pin bars that form at the bottom of an extended move down. ✅Entry and exit is very simple. If you are going short on a bearish pin bar, enter short when the next candle opens and ticks below the low of the bearish pin bar. If you are going long at your fx broker, enter long when the next candle opens and ticks above the high of the bullish pin bar. ❗️Keep in mind that these are general trading concepts that build on the collective experience of traders. Even though a lot of traders believe that these chart patterns have a bearing on the future direction of the price there are no guarantees in trading. Forex & gold trading is risky and you should never speculate with funds you cannot afford to lose. Please, like this post and subscribe to our tradingview page!👍

Education

by EliteTradingSignals

Secret of Success in Trading: Patience, Emotions, Psychology I vividly remember how I started to trade 8 years ago, how I was learning, and the things that I was doing. Contemplating my old self, I notice a dramatic shift in my mindset in regard to trading. Staring at the charts and desiring to make money on price action, I wanted to become a consistently profitable trader. Making the priorities, I decided to sacrifice my time on studying technical analysis, totally neglecting trading psychology and risk management. Learning different trading strategies, I always came to the same result: the account went blown and nothing seemed to work. Strategies of fancy traders on YouTube, strategies from best-selling books on Amazon, nothing could produce any penny. Not giving up and pursuing my ultimate goal, I came to the conclusion that I set my priorities absolutely incorrectly. To be honest, I always thought that trading psychology (like psychology in general) is s*cks. Moreover, I considered risk management to be kind of obvious, banal topic not deserving much attention. Learning risk management techniques, applying them in day trading, I finally saw a glimmer of hope. Reading a dozen of books on trading psychology, contemplating my mistakes, and observing my behavior I noticed so many wrong, incorrect things that I did on a daily basis. With time and practice, my mindset shifted. I realized that most of the strategies that I applied and that seemed losing to me, in fact, were decent. It turned out that mastery of technical analysis is not enough for profitable trading. Instead, that is just a tiny part of what must be learned. Now, when my students ask me about the most important things to learn & study in trading, I always say: trading psychology and risk management go first, technical analysis is the secondary. ❗️ Do not neglect these topics and give them due attention. They are an essential part of your success in trading. 🤔 Do you agree with the pyramid that I drew?

Education

by VasilyTrader

5 Easy Steps for Beginners to Start Trading in Forex 📝 Being a beginner, it is natural for you to feel overwhelmed when you first start forex trading. But that doesn’t mean that you should shy away from the market. By following the 5 steps listed below, you can start your trading journey in currencies in a smooth and efficient manner. 1. Get to know what drives the market 📈 When it comes to trading in currencies, the first ever step that you would need to make as a beginner is educate yourself about the market. Although the forex market works in a very similar fashion to the stock market, the factors behind the movement of the currencies tend to be different. 2. Choose the right broker 🤝 Selecting the right forex broker is as important as getting to know how to trade in currencies. Not all brokers offer the same level of services or are always reliable. Therefore, it is essential for you to spend some time looking into the various brokers offering forex trading services. An ideal forex broker should have an easy account opening process, a simple trading platform, offer exceptional customer support and have low transaction costs. While evaluating brokers, make sure to look into their downtime frequency. 3. Establish your financial goals and targets💰 The next step is to work on your financial goals and targets. Introspect and ask yourself what you hope to achieve by trading in currencies. Also, before you actually buy and sell currencies, it is a good idea to first determine your financial targets. For instance, you can set a target for each forex trade you make or a target for each day or month of trading. Establishing these goals can make you plan your trades much better by helping you come up with a trading plan, which will ultimately make you a better trader. 4. Practice with demo (paper) trading 📃 Through extensive virtual trading practice sessions, you can quickly get the hang of currency trading and try out new trading techniques and strategies. Since you’re not really trading with real money, you don’t have to worry about losing money on trades. Instead, you can spend some quality time learning the ropes and trying to analyze the trades that you make. This can give you some much-needed perspective on how to tackle forex trading in real-time. 5. Start slow and go easy on your trades🐢 Once you’ve gotten the hang of trading in currencies on demo account, you can slowly move onto the real thing. Now, there are a few things that you should keep in mind. The forex market’s volatility tends to be quite high and can lead to wild swings in the price. Therefore, it is a good idea to start slow by using just a fraction of your total investment amount. Now that you’re aware of the 5 steps that you need to take to start trading in forex, go ahead and begin your journey. Good luck to you! Hey traders, let me know what subject do you want to dive in in the next post?

Education

by TopTradingSignals

Learn How to Improve Your Forex Trading 🔝 Whether you're new to Currency Trading or a seasoned trader, you can always improve your trading skills. Education is fundamental to successful trading. Here are some tips that will help hone your Currency trading skills. ⭐️Plan How You Will Trade You may have heard the adage, "if you fail to plan, you plan to fail." This is particularly true in Forex speculation. Successful traders start with a sound strategy and they stick to it at all times. ⭐️Most traders fail because they make the same mistakes over and over. A diary can help by keeping track of what works for you and what doesn't. Used consistently, a well-kept diary is your best friend. ⭐️Patience Once you know what to expect from your system, have the patience to wait for the price to reach the levels that your system indicates for either the point of entry or exit. If your system indicates an entry at a certain level but the market never reaches it, then move on to the next opportunity. There will always be another trade. ⭐️Discipline Discipline is the ability to be patient—to sit on your hands until your system triggers an action point. Sometimes, the price action won't reach your anticipated price point. At this time, you must have the discipline to believe in your system and not to second-guess it. Discipline is also the ability to pull the trigger when your system indicates to do so. This is especially true for stop losses. ⭐️Realistic Expectations Even though the market can sometimes make a much bigger move than you anticipate, being realistic means that you cannot expect to invest $250 in your trading account and make $1,000 each trade. Although there is no such thing as a "safe" trading time frame, a short-term mindset may involve smaller risks if the trader exercises discipline in picking trades. This is also known as the trade-off between risk and reward. Trading is nuanced and requires as much art as science to execute successfully, which means that there is only a profit-making trade or a loss-making trade. Warren Buffet said that there are two rules in trading: Rule 1: Never lose money. Rule 2: Remember Rule 1. Stick a note on your computer that will remind you to take small losses often and quickly rather than wait for the big losses. Please, like this post and subscribe to our tradingview page!👍

Education

by EliteTradingSignals

Top 4 Secrets of Using Technical Indicators Hey traders, Technical indicators are an essential part of technical analysis . With multiple different indicators on a chart, the trader aims to spot oversold/overbought conditions of the market and make a profit on that. Though, I don't consider myself to be an expert in indicators trading, here are the great tips that will help you dramatically improve your trading with them. #1️⃣ Do not overload your chart with indicators. There is a fallacy among so many traders: more indicators on the chart lead to an increase in trading performance. Following this statement, traders add dozens of technical indicators to their charts. The chart becomes not readable and messy. The trader gets lost and makes wrong trading decisions. Instead, add 1-2 indicators to your chart. That will be enough for you to make correct judgments. Do not overload your chart and try to make it clean: your task is to analyze the price action first and only then look for additional clues reading the indicators. #2️⃣ Learn what exactly the indicator shows The data derived from technical indicator must make sense to you. You must understand the logic behind its algorithm. You must know exactly what it shows to you. Confidence in your actions plays a key role in trading. During the periods of losing streaks and drawdowns, many traders drop their trading strategies. It happens because they lose their confidence. You will be able to overcome negative trading periods only by being confident in your actions. Only knowing exactly what you do, what do you rely on and why you can proceed even in dark times. #3️⃣ Use the indicators that compliment each other Many indicators are based on the same algorithms. Most of the time, the only difference between them is a minor change in its input variables. For that reason, such indicators leave very similar clues. In order to improve your trading, try to rely on indicators based on absolutely different algorithms. They must complement each other, not show you the same thing. #4️⃣ Price action first! Remember that your trading strategy must be based primarily on a price action. Trend analysis and structure analysis must go first. You must know the way to make predictions relying on a naked chart. The indicators must be applied as the confirmation signals only. They must support the trading strategy but not be its core. ❗️Remember that the indicators won't do all the work for you. Indicator is just a tool in your toolbox that must be applied properly and in strict combination with other tools. Would you add some other tips in this list? ❤️Please, support my work with like, thank you!❤️

Education

by VasilyTrader

Price Channels — Quick and Easy Guide.Greetings, @TradingView community! When it comes to analyzing market trends, there's a technique that takes trend theory to the next level: price channels. This is @Vestinda, bringing you a helpful article on the topic of the price channels, also known as trend channels, offer an exciting way to identify optimal buying and selling opportunities in the market. Price channels serve as a valuable tool in technical analysis, helping traders determine favorable entry and exit points. By drawing parallel lines that align with the angle of an uptrend or downtrend, we create a channel. The upper trend line acts as resistance, while the lower trend line represents support. These lines highlight potential areas where the market could experience reversals or continue its current trend. Understanding the sentiment of a price channel is crucial. Channels with a positive slope (upward) are considered bullish, indicating an upward trend, while those with a negative slope (downward) are bearish, pointing to a downward trend. Recognizing the slope of a price channel allows traders to gauge the prevailing market conditions and make informed trading decisions. Price channels can be categorized into three main types: Ascending channels Descending channels Horizontal channels Ascending channels display higher highs and higher lows, signaling a bullish sentiment. To create an ascending channel, draw a parallel line touching the most recent peak, aligning it with the angle of the uptrend line. Conversely, descending channels exhibit lower highs and lower lows, suggesting a bearish sentiment. To create a descending channel, draw a parallel line touching the most recent valley, aligning it with the angle of the downtrend line Horizontal channels , also known as ranging channels, indicate a consolidation phase with no clear trend direction. These channels provide insights into potential buying zones when prices hit the lower trend line and selling zones when prices approach the upper trend line. Understanding these channel types empowers traders to adapt their strategies to different market scenarios. Constructing a price channel requires parallelism between the trend lines. The lower trend line is typically considered a "buy zone," while the upper trend line serves as a "sell zone." It's crucial not to force price action into the drawn channels. When the channel boundaries slope at different angles, the pattern is no longer a price channel but a triangle pattern, requiring a distinct analytical approach. Remember that price channels don't have to be flawlessly parallel. In reality, it's rare to find price action that perfectly aligns within two trend lines. As traders, it's important not to solely rely on textbook price patterns but also consider broader market context and other essential cues from price action. Effective price channel analysis involves embracing imperfections and making informed decisions based on the available information. In conclusion, price channels provide traders with a powerful technique to uncover profitable opportunities in the market. By drawing parallel trend lines and identifying support and resistance levels, traders can gain valuable insights into market sentiment and enhance their trading decisions. However, it's essential to remember that perfection isn't the goal. Instead, focus on understanding market dynamics and adapting your strategy accordingly. 💜 So there you have it - a quick and easy guide to understanding price channels in trading! 💜

Education

Top 5 Tips to Increase Your Profits in Trading 📈 In this educational article, I will share with you very useful tips how to improve your profitability in trading the financial markets. 1. Decrease the number of financial instruments in your watch list. ⬇️ Remember that each individual instrument in your watch list requires attention. The more of them you monitor on a daily basics, the harder it is to keep focus on them. In order to not miss early confirmation signals and triggers, it is highly recommendable to reduce the size of your watch list and pay closer attention to the remaining instruments. 2. Avoid taking too many positions. ❌ For some reason, newbie traders are convinced that they should constantly trade and keep many trading positions. Firstly, I want to remind you that the management of an active position is a quite tedious process that requires time and attention. Therefore, more positions are opened, more time and effort is required. Secondly, if the newbies can not spot a good setup, they assume that they are obliged to open some positions and they start forcing the setups. Remember, that in trading, the quality of the trading setup beats the quantity. I advise taking less trades, but the better ones. 3. Let winners run if the market is going in the desired direction. 📈 Once you caught a good trade and the market is moving where you predicted, do not let your emotions close the trade preliminary. Try to get maximum from your trade, closing that only after the desired level is reached. 4. Open a trade after multiple confirmations.✅ Analyzing a certain setup remember, that more confirmations you spot, higher is the accuracy of the trade that you take. In order to increase your win rate, it is recommendable to wait for at least 2 confirmations. 5. Don't trade on your cellphone. 📱 A good trade always requires a sophisticated analysis that is impossible to execute on the small screen of the cellphone. A lot of elements and nuances simply will not be noticed. For that reason, trade only from a computer with a wide screen. Relying on these tips, you will substantially increase your profits. Take them into the consideration and good luck to you in your trading journey. ❤️Please, support my work with like, thank you!❤️

Education

by VasilyTrader

Learn What Will Really Make You Profitable in Trading What brings the consistent profits in trading? Talking to hundreds of struggling traders from different parts of the globe, I realized that there are the common misconceptions concerning that subject. In this educational article, we will discuss what really will make you profitable in trading. 🔔The first thing that 99% of struggling traders are looking for is signals. Why damn learn if you can simply follow the trades of a pro trader and make money?! The truth is, however, is that in order to repeat the performance of a signal provider you have to open all your trading positions in the same exact moment he does. (And I would not even mention the fact that there will be a delay between the moment the provider opens the trade and the moment he sends you the signal) Because the signal can be sent at a random moment, quite often it will take time for you to reach your trading terminal and open the position. Just a 1-minute delay may dramatically change the risk to reward ration of the trade and, hence, the final result. 🤖The second thing that really attracts the struggling traders is trading robots (EA). The systems that trade automatically and aimed to generate consistent profits. You simply start the program and wait for the money. The main problem with EA is the fact that it requires constant monitoring. It can stop or freeze in a random moment and may require a reboot. Moreover, due to changing market conditions, the EA should be regularly updated. Without the updates, at some moment it may blow your account. Trading robot is the work: trading with the robots means their constant development, monitoring and improvement. And that work requires a high level of experience: both in coding and in trading. 📈The third thing that struggling traders are seeking is the "magic" indicator. The one that will accurately identify the safe points to buy and sell. You add the indicator on the chart, and you simply wait for the signal to open the trade. The fact is that magic indicators do not exist. Indicator is the tool that can be applied as the extra confirmation. It should be applied strictly in a combination with something else, and its proper application requires a high level of expertise in trading. 🍀The fourth thing that newbie traders seek is luck. They open the trade, and then they pray the God, Powell, Fed or someone else to move the market in their favor. And yes, occasionally, luck will be on your side. But relying on luck on a long-term basis, you are doomed to fail. But what will make you profitable then? What is the secret ingredient. Remember, that secret ingredient does not exist. In order to become a consistently profitable traders, you should rely on 4 crucial elements: trading plan, risk management, discipline and correct mindset. 🧠What is correct mindset in trading? It simply means setting REALISTIC goals and having REALISTIC expectations from the market and from your trading. 📝A trading plan is the set of rules and conditions that you apply for the search of a trading setup and the management of the opened position. Trading plan will be considered to be good if it is back tested on historical data and then tested on demo account for at least 3 consequent months. ✔️In order to follow the plan consistently, you need to be disciplined. You should be prepared for losing streaks, and you should be strong enough to not break once your trading account will be in a drawdown. 💰Risk management is one of the most important elements of your trading plan. It defines your risk per trade and your set of actions in case of losses. Even the best trading strategies may fail because of poor risk management. Combining these 4 elements, you will become a consistently profitable trader. Remember, that there is no easy way, no shortcut. Trading is a hard work to be done. ❤️Please, support my work with like, thank you!❤️

Education

by VasilyTrader

Why Failure Is Key Of Success Like anyone else on Earth, I’ve had successes (and failures) in years past, at both the personal and professional level. If you’re scoring at home, that’s called being a human being. I can probably make a case that failure is more important than success in many respects because you can’t really succeed unless you’ve truly inhaled your failures (own it!) and then exhaled them to improve your future approach. There is no finality about failure, said Jawaharlal Nehru. Perhaps, that is why learning from failure is easier than learning from success, as success often appears to be the last step of the ladder. Possibilities of life, however, are endless and there are worlds beyond the stars-which is literally true. What appears as success in one moment may turn out to be a failure or even worse in the next moment.We often do not know what is failure and what is success ultimately. Failure gives us the opportunity to bounce back, to learn from our mistakes, and helps us appreciate success. Failure is therefore not the end, but only a stage in our journey. If it crosses our path and we know how to draw the necessary lessons from it, it even allows us to question ourselves when it's necessary and by doing so, it moves us forward. Dear followers, let me know, what topic interests you for new educational posts?

Education

by SignalProvider

How to Trade the Pin Bar Pattern on Forex and Gold 🕯 The pin bar is a powerful price action setup that tells a fascinating story concerning price momentum and the possibility of an imminent reversal in price direction. A pin bar is a Japanese candlestick that has a long wick on one side and a small body. Understanding the story behind the pin bar is essential. 📚What does the pin bar candlestick pattern tell us about market psychology? 📉This pin bar followed a strong downward trend, and the presence of a long tail below the body tells us that the market rejected any attempt by overly exuberant sellers to move the price lower. The length of the tail speaks to the strength of the rejection. 📈The pin bar followed by a strong uptrend, and the presence of a long tail above the body tells us that the market rejected any attempt by overly exuberant buyers to move the price higher. The length of the tail speaks to the strength of the rejection. ⭐️The best pin bars are bearish pin bars that form at the top of an extended move up, and bullish pin bars that form at the bottom of an extended move down. ✅Entry and exit is very simple. If you are going short on a bearish pin bar, enter short when the next candle opens and ticks below the low of the bearish pin bar. If you are going long at your fx broker, enter long when the next candle opens and ticks above the high of the bullish pin bar. ❗️Keep in mind that these are general trading concepts that build on the collective experience of traders. Even though a lot of traders believe that these chart patterns have a bearing on the future direction of the price there are no guarantees in trading. Forex & gold trading is risky and you should never speculate with funds you cannot afford to lose. Hey traders, let me know what subject do you want to dive in in the next post?

Education

by TopTradingSignals

Top 8 Rules of a Pro Trader Hey traders, Consistently profitable traders have a lot of things in common. Watching how they act and following their ideas & thoughts we can spot a lot of commonalities among them. In this article, I have collected 8 trading habits that a trader should have to become successful. 1️⃣ - Continuous Learning 📚 The markets are infinitely deep in their nature. Trading & constant monitoring of the market always unveil new, uncharted elements and things. With 8 years of day trading, I can't help wondering how many new things I learn each and every day. With continuous learning you evolve, you become better and it improves your trading performance & results. 2️⃣- Emotional Stability 🙏 The market is a wild beast who always wants to bite us. And most of the time it manages to do that: drawdowns, losing streaks... Those who trade for at least 1 year know how unpredictable and unstable the market is. A perfectly looking trading setup can easily turn into a big losing trade. Of course, that is painful, of course with more and more losers, the anxiety will pursue us, the stress will overwhelm us. Only by remaining stable and calm, you will manage to overcome the negative periods. Learn to control your emotions, learn to take losses! 3️⃣ - Constant Practice 💪 Pro traders never stop, they always watch the charts, they always monitor the prices, and follow the market. Trading requires constant TRADING. Just spending one single week on a vacation without charts, you can not imagine how hard it is to return back. The trading skills must be constantly maintained. 4️⃣ - Trade Journaling 📝 Pro trders always assess their past performance & results. They track each and every trading position that they opened. Both losing trades and winning trades require analysis and observations. Only by studying the past results the trader can improve his trading performance and evolve. Only by identifying mistakes & peculiar commonalities, the trader learns to lose less than he makes. 5️⃣ - Anticipation of Different Outcomes 👁 Everything can happen in financial markets. Pro trader always reasons in probabilities. He knows that 100% chances do not exist. Accepting the probabilities the trader (even while opening the trade) is always ready for completely different outcomes and accepts each and every move of the market. 6️⃣ - Flexibility & Adaptivity 🕺 The markets are always changing. If you were trading before COVID crisis, I guess you feel how the reality among us shifted. With fundamental changes in our daily lives, the markets changed as well. It is hard to say what exactly has altered though, however, we all can feel it. In order to survive in a constantly changing environment, one should adapt . One should look for ways to be one step ahead. To beat an evolving market, the traders should constantly polish their trading strategies, drop the things that don't work anymore, and adopt the new, reliable ones. That is the only way to stay afloat. 7️⃣ - Selection of Right Markets 📈 The trader always knows what to trade and he always has a reason. He admits that some financial instruments are appropriate for his trading style while some are completely not. Pro trader does not wander around aimlessly from one market to another. He has a plan to follow and rules to rely on. 8️⃣ - Realistic Expectations ⭐️ Many newbie traders drop trading just because of wrong expectations. The desire to get rich quick, to catch 20/1 risk to reward trades without substantial losses is playing a dirty trick with them. The true trader is not greedy, in contrast, he is humble and the only thing that he wants is simply to win more than he loses and make that amount sufficient enough to have a good living. Adapting these 8 habits, you will see dramatic improvements in your trading. And even though most of them require a substantial effort and many years of practicing, trust me, it is worth it and it will help you in your daily life as well. Would you add some other habits to this list?🤓 Let me know in a comment section. Let me know, traders, what do you want to learn in the next educational post?

Education

by VasilyTrader

What is the Power in Buy and Sell Walls Hello, dear @TradingView community! Welcome to another insightful educational topic focused on Buy and Sell Walls in the world of cryptocurrencies! Understanding buy and sell walls is critical for any trader or investor in the cryptocurrency market. It provides access to the order book and valuable insights into the market sentiment of specific cryptocurrencies. This understanding can help forecast future price movements and develop more effective trading strategies. In this article, we will delve into the concept of walls in crypto, explore how to identify and interpret buy and sell walls, and discuss their significance in the market. What is a Wall in Crypto? Understanding Buy Walls Understanding Sell Walls How to Identify Buy and Sell Walls How to Interpret Buy and Sell Walls What is a Wall in Crypto? A wall refers to a large limit order placed on a cryptocurrency trading platform, often depicted as a huge block on the order book. Market makers, institutional investors, as well as individual traders, utilize these large limit orders to buy or sell substantial quantities of a specific cryptocurrency at a predetermined price. Walls tend to have a significant market impact since they can influence the supply and demand levels of a specific cryptocurrency. These large limit orders, representing a considerable quantity of a cryptocurrency bought or sold at a specific price, have the potential to cause significant price fluctuations. Understanding Buy Walls Buy walls are substantial limit orders placed to purchase a specific amount of a cryptocurrency at a particular price or higher. They can be formed by large market makers, institutional investors, or individual traders seeking to buy a significant amount of a cryptocurrency at a specific price or lower. Buy walls can serve to profit from price movements or accumulate a large quantity of a cryptocurrency at a lower price. A buy wall indicates strong demand for a specific cryptocurrency at a certain price or higher, which can be seen as a positive sign for the market. It suggests that buyers are willing to pay the specified price or more, potentially leading to a price increase. Additionally, a buy wall may indicate that a large market maker or institutional investor has faith in the future price of a coin or a token. By investing a substantial sum, they express confidence that the cryptocurrency's price will rise in the future. Traders can utilize the presence of a buy wall to gauge market sentiment and identify potential buying opportunities. Buy walls can also serve as support levels and act as stop-loss points. Understanding Sell Walls Sell walls, on the other hand, consist of large limit orders placed to sell a specific amount of a cryptocurrency at a particular price or lower. Similar to buy walls, sell walls can be formed by market makers, institutional investors, or individual traders looking to sell a substantial amount of a cryptocurrency at a specific price or higher. These limit orders are utilized to profit from price movements or liquidate a large quantity of a cryptocurrency at a higher price. A sell wall indicates a strong supply of a specific cryptocurrency at a particular price or lower, which could suggest overvaluation. It signifies that sellers are willing to sell at the specified price or lower, potentially leading to a price decrease. Furthermore, a sell wall can indicate that a large market maker or institutional investor holds a bearish outlook on the future price of a cryptocurrency. By selling a significant sum, they imply their belief that the cryptocurrency's price will fall in the future. Traders can leverage the presence of a sell wall to assess market sentiment and identify potential selling opportunities. Sell walls can also act as resistance levels for a cryptocurrency and serve as target price points for profit-taking. How to Identify Buy and Sell Walls Buy and sell walls can typically be found in the depth chart of order book on a cryptocurrency trading platform. They are often represented as conspicuous, large blocks, easily identifiable by traders. While some trading platforms provide graphical representations of the order book, this feature is not available on all platforms. When identifying buy and sell walls, it's crucial to consider the context surrounding them, including current market conditions and the specific cryptocurrency being traded. Market conditions can change rapidly, so staying updated and understanding the current market environment is essential for making informed decisions. It's worth noting that larger buy or sell walls tend to have a greater impact on the market compared to smaller ones. A large wall could indicate the involvement of a significant market maker or institutional investor, which can potentially influence the price of a specific cryptocurrency more significantly. How to Interpret Buy and Sell Walls By examining both buy and sell walls, traders can gain insights into the supply and demand levels for a specific cryptocurrency. A large buy wall suggests strong demand, while a large sell wall indicates substantial supply. When used together, these walls provide a comprehensive view of market sentiment and the supply-demand dynamics of a cryptocurrency. Combining buy and sell walls can also help identify potential buying or selling opportunities. For example, if there is a significant sell wall and a large buy wall at the same price level, it may indicate a state of equilibrium in the market, presenting an opportunity for traders to enter or exit positions. The presence of a buy wall typically indicates a bullish sentiment, while a sell wall suggests a bearish sentiment. A market with more buy walls than sell walls tends to exhibit bullish market sentiment, while a market with more sell walls than buy walls suggests a bearish sentiment. It's important to note that the absence of buy or sell walls may indicate a lack of market activity or market uncertainty. It can also imply a period of consolidation or a lack of liquidity, which can impact trading conditions and market volatility. Buy and sell walls can serve as potential entry and exit points for trades as well. A buy wall at a specific price can be seen as an opportunity to enter a long position, while a sell wall at a particular price may indicate a suitable exit point for a short position. Conclusion Buy and sell walls represent significant limit orders placed on cryptocurrency trading platforms, offering insights into the supply and demand levels for a specific cryptocurrency. They are used by market makers, institutional investors, and individual traders to profit from price movements or accumulate/liquidate substantial amounts of a cryptocurrency. Understanding buy and sell walls is instrumental in making informed buying and selling decisions, as they display supply and demand levels and provide insights into market sentiment, which can serve as a reliable predictor of market trends. Analysing the impact of buy and sell walls on the market can help traders develop effective trading strategies, identify potential opportunities, determine entry and exit points, and assess market sentiment accurately. By mastering the concept of buy and sell walls, traders can enhance their ability to navigate the cryptocurrency market with greater precision and confidence. We put a lot of effort into researching and writing this piece, and we would love to hear your thoughts and feedback. Have you found the information in the article helpful and informative? Did it provide you with valuable insights into understanding market sentiment and trading strategies? Is there anything you would like to expand upon or clarify further? Your feedback is greatly appreciated and will help us improve future articles. Thank you in advance for taking the time to read and share your thoughts. Happy trading! @Vestinda

Education

The Breakout Trading Strategy of Trendlines | OKXIDEAS Hello traders, In this post i am just showing you a very simple and easy trading strategy especially for beginners, in this strategy i am just using two basic things trendlines and 50 simple moving average which is you can also see in the charts above. What you will be doing in this strategy just simply go to the 1hr timeframe see the clear trend draw the trendline wait for the breakout when breakout happen now wait for price to retest or just place a buy limit or sell limit order. I hope you like the strategy this is the trendlines breakout trading strategy. The one good thing about this strategy is the risk to reward ratio because in this strategy you will have potential to have around 1/3 risk to reward ratio so this means if you placed 10 trades and you lose 7 trades out of 10 and you just won 3 trades out of 10, you will be still profitable so meanwhile you just need to have a 30% wining ratio to be profitable in a long run. I just advise you that try the strategy open the chart and back-test your chart and trade it on demo live market condition at least for one month and see the results ask the question to yourself can you be profitable? if the answer is yes so probably you know that what to do next but if the answer is no then look it your one month data that you have, make sure to journal your one month data record and try to analyze what mistakes you do what wining ratio you have can you have a little deference to between 30% see your taken trades you will be seeing some bad trades and you don't wanted to trade next time avoid those trades in the next month and just repeat the process be patient one day you will be consistently profitable but if not then don't lose the hope and just try again again and again learn from your mistakes come back and don't do that mistakes again, remember every strategy is good if you practice and managed it. Just find the strategy that you suit and start the process. I hope you liked the post, i wish you good luck and good trading.

Education

Updated

Practical Insights into the Risk Management Hey there, amazing @TradingView community! It's @Vestinda, and we're on a mission to deliver content that truly makes a difference. 👉 To become a successful crypto trader, it's essential to have a solid understanding of trade and risk management concepts, such as stop losses, position sizing, and scaling. In this article, we'll explore these key concepts in-depth to help you minimize your risks and maximize your gains in the cryptocurrency market. Four Risk Management Concepts Every Crypto Trader Should Understand To effectively manage the risk associated with trading, it is essential to first develop a comprehensive trade management and risk management strategy. Before committing your capital to any position, it's critical to have a clear plan in place to minimize potential losses and optimize your overall trading performance. Successful market speculation requires effective risk management to preserve capital, which is the primary objective. By minimizing losses and maximizing gains through a comprehensive trade and risk management strategy, traders can achieve long-term success in the market. One of the key strategies employed by the most successful traders is to minimize their losses while allowing their profitable trades to run. This approach is essential for avoiding disastrous scenarios, such as allowing profitable trades to turn into losers or allowing a single bad trade to wipe out an entire account. By focusing on risk management and trade management, traders can increase their chances of success and protect their capital over the long term. It's true that implementing the "cut losses quickly and let profitable trades ride" strategy can be challenging, especially for discretionary traders who need to constantly evaluate changes in fundamentals and market sentiment against price movements. However, there are trade and risk management ("TRM") tools and methods available that can help simplify this process. While these tools and methods may seem complex at first, they are quite accessible and easy to learn. With the right TRM strategies in place, traders can effectively manage risk and optimize their performance in any market condition. Before diving into trading, it's crucial to understand four key concepts in trade and risk management: Stop losses: Stop losses are predetermined exit points designed to limit potential losses on a trade. By setting a stop loss, traders can automatically close a position if the market moves against them beyond a certain point, minimizing their losses. Traders may use price action signals, technical indicator signals, fundamental analysis, or a combination of all three to determine the appropriate level for a stop-loss order. This helps to limit potential losses on trade and is a crucial component of effective risk management. Position sizing: Position sizing refers to the amount of capital allocated to a specific trade. By properly sizing positions based on risk tolerance and market conditions, traders can optimize their overall risk management strategy and minimize the impact of potential losses. Position sizing refers to the process of determining the quantity of cryptocurrency to long or short based on the maximum amount of value a trader is willing to lose if the trade fails, also known as "max risk." For novice traders, it is recommended that the maximum risk should not exceed 1-2% of their portfolio for short-term transactions and 5% for longer-term positions. For example, if a trader has a cryptocurrency account with $ 1,000 and wishes to purchase a token with a market price of $ 10.0 per token, they would need to determine the appropriate position size to maintain their desired level of risk. If their analysis indicates that they should place a stop loss at $ 5.0 per token to limit their maximum risk to 2% of their account, or $ 20.0, then the appropriate position size would be 4 units (40$ position size). This way, if the token's value drops by $ 5.0, the resulting loss of $ 20.0 would equal 2% of the trader's account. Scaling: Scaling involves adjusting position sizes based on the performance of a trade or the overall market conditions. By scaling into or out of positions based on market conditions, traders can adjust their risk exposure and optimize their potential for gains while minimizing potential losses. Scaling refers to the practice of dividing entries and exits into two or more orders around a trader's intended entry/exit area to reduce the likelihood of setting an entry too low or too high. This is particularly important because it is nearly impossible to predict the exact price or time at which the market's direction or volatility levels will change. For example, if a trader intends to buy a token for $ 10.0 but their analysis indicates that it may drop as low as $ 8.0 before sentiment entirely flips bullish, they should consider dividing their entry/exit orders into multiple price levels. This way, they can enter the trade with a partial position if the token's price does not drop below $10.0, but if it drops to $ 8.0, they can scale into a lower average price of $ 8.75. By using scaling and position sizing in conjunction with a maximum stop loss level, traders can effectively manage their risk and reduce the likelihood of incurring significant losses. While these concepts are relatively simple, understanding and applying them correctly can help traders avoid significant risks in the cryptocurrency market. Leverage: Trading with leverage involves taking positions that exceed the account's total capital, which can be done through crypto exchanges (CEXs) offering margin trading or some DeFi protocols providing advanced borrowing mechanisms. For instance, assume you have $ 100 in your account, and you want to purchase 1 unit of XYZ token worth $ 100, creating an open position valued at $ 100. Margin trading offered by a CEX may only require a 10% margin, meaning you only need to invest $ 10 instead of the entire $ 100. You can then utilize the remaining $ 90 to open additional positions, which can be tempting for many traders. With a 10% margin requirement and a $ 100 account, you can open a position size of 10 XYZ tokens, having a notional value of $ 1000 ($ 100 x 10 units), with the CEX holding the $ 100 in your account as a margin for the trades. This would make you leveraged 10x, which is considered an extremely high amount of leverage. If the token increases in value by 10% in a short period, the position value would grow from $ 1000 to $ 1100, which means you could double your account value from $ 100 to $ 200 (i.e., $ 100 profit + $ 100 margin). Alternatively, if the token rises by 20% to $ 1200, you would triple your account to $ 300 in value. Although the potential for high profits may sound exciting, it is crucial to remember the risks associated with trading with leverage, and it is advisable to exercise caution and not get carried away by the prospect of quick and easy gains. Many traders are lured by the potential profits of leveraged trading, but it's important to remember that leverage can be just as dangerous as it is rewarding. If a trader opens a position with 10x leverage and the position loses just 5%, that would be a loss of $ 50, which is 50% of their $ 100 account. Additionally, if the position were to lose 10%, resulting in a $ 100 loss, the trader would receive a margin call and would need to deposit more money to keep their trades open. If they are unable to do so, the CEX will close all positions, also known as being "liquidated". The CEX will use the margin that the trader had provided to cover the $ 100 loss, which means that the trader's account balance would be reduced to $ 0. It's essential to be aware of the risks of leveraged trading, as you could potentially lose everything you've invested. It's important to remember that leverage in crypto trading is a double-edged sword that can either grow your account or quickly deplete it. While it's possible to make significant profits with leverage, it's equally possible to suffer substantial losses. As a new trader, it's important to acknowledge that trading with leverage requires expertise and a sound risk management strategy, which can be challenging to implement successfully. Therefore, it's wise to approach leverage with caution and focus on developing your skills and knowledge before considering this tool. Here are some recommendations that can help you navigate the exciting but risky world of crypto trading: First, it's important to be conservative with your risk-taking and to only invest in your very best trade ideas. Limiting your total exposure to the crypto sector to a small percentage of your total liquid capital, starting at 1%, is a good way to minimize your risk. You should also limit your exposure to a specific crypto asset to a small percentage of your total crypto portfolio, with a 1% to 2% max risk on short-term trades and a max of 5% risk on longer-term positions. Using a stop loss with every position is also crucial to limit potential losses. Remember, perfect timing is near impossible, so consider scaling into trading positions or "dollar cost averaging" into longer-term investments. Take profits along the way if a trade goes your way. And most importantly, avoid using leverage, which can be a double-edged sword and lead to substantial losses. Lastly, only invest your capital in your very best ideas, which should be low-risk/high-reward setups on high-probability ideas. Don't force trades when there are no compelling opportunities, and remember that "no position" is a perfectly fine position when you don't see any good opportunities. Calling all traders! Are you ready to take your skills to the next level? Join our community of like-minded traders and stay up to date with the latest market trends and insights. Hit that follow button and show your support by giving this article a big thumbs up. Together, we'll navigate the markets with ease and achieve financial success. Don't miss out on this opportunity to grow and learn with us. Let's do this!

Education

Updated

TRADING OR A JOB? DEEP DIVE❗️ Are you torn between choosing a job and getting into trading? Both have their advantages and pitfalls, but by combining the two, you can reap the rewards of both worlds. 🚷Firstly, let's consider a traditional job. A job offers security, stability, and a predictable income. You work for a set number of hours, and you receive a paycheck. You have employer benefits such as healthcare, 401k matching, and paid time off. On the downside, you are limited to your salary, which may not always reflect your hard work and dedication. You may feel stuck in your role as there are usually limited opportunities for career advancement. And if you lose your job, you lose that source of income. 💹Now let's consider trading. Trading offers the potential for uncapped income, flexibility, and the autonomy to make your decisions. You can trade anywhere with an internet connection, and there are many different markets to choose from, such as forex, stocks, and commodities. You have complete control over your financial destiny. However, trading is not for everyone. It requires a lot of time, effort, and discipline to become successful. There are risks involved, and you can lose money if you do not know what you are doing. It can also be a lonely profession as you may be working alone most of the time. 💡Now, what if we combine the two? This is where the concept of "side hustles" comes into play. You can keep your job for the stability and security, but you can also trade on the side to increase your income and diversify your portfolio. By trading on the side, you can use the abundance of time outside of your job to learn, practice, and implement trading strategies. Gradually, you may earn enough money from trading to eventually quit your job and become a full-time trader. However, the combination of the two must be approached with caution. Trading can be time-consuming, and you do not want to sacrifice the quality of your work at your job. It is also essential to practice risk management and not invest money that you cannot afford to lose. ⚖️In conclusion, both a job and trading have their advantages and disadvantages. Combining the two is an excellent way to increase your income, diversify your portfolio, and potentially become a full-time trader. But proceeding with caution, discipline, and good money management is key to success. Remember, the goal is to build a better future for yourself, and with the right balance between a job and trading, you can achieve it. Thanks for reading bro, you are the best☺️ Like, comment and subscribe to boost your trading! Dear followers, let me know, what topic interests you for new educational posts?

Education

by SignalProvider

The Story of a Failed Trader | OKXIDEAS Once upon a time there was a man who was a very poor and he belong to a middle class family but he had the ability to dream it. He was 20 years old and he also think that he spend all of had 20 years doing nothing, he was a dreamer. He wanted to become a rich man, he finding ways to become a rich man, he tried almost every thing but failed. One day he watched a video about trading on YouTube and he decided to become a trader, become a rich with trading and fulfill all of had dreams. He started to learn trading, he watched all of educational videos about trading on YouTube and spend had 15 hours every day just watching videos, now he knows about the basic trading he shifted to the analysis part of trading, he started to practice and learn the technical analysis. He find the method that he can trade with, he combined some technical indicator signals and created strategy for himself. Now he had very passionate about trading, wanted to open a real account and start trading with real account. He had some saving money around 500 dollar he deposited that money in the real account and start trading with that money. He started dreaming from the first day of trading and created some trading rules for himself like he had to take 10% risk per trade and don't take that trade which is below 1/1 risk to reward ratio. On the first day he had taken almost 3 trades and win all of them, now he was more excited for trading he had made $192 profit means something around 38% profit on 500 dollar account. He wanted to trade more but he was a little bit smarter one, he think that i am in profit and my wining ratio is 100% so why i just damage my wining ratio and why i just risk my today profit so he had decided to come back tomorrow. On the second day he had $692 total balance in the account, he had to play a little bit more smarter than a previous day and he decided to take 10% risk per trade of the current total balance $692 in the account rather than the starting balance which is $500. On the second day he take almost 4 trades and he won 2 trades out of 4 trades, now the account condition had almost break-even no loss & no profit, he decided to try again and trade more, he finding the reason to trade more and then he calculate today and yesterday total taken trades which is 7 trades, he think that i won 5 trades out of 7 trades so my wining ratio is almost around 70% which is good and i can trade more because my wining ratio is still above 50% so i am still in positive side. He trade almost 3 trades again and he lose all of them, now he had very sad and almost broken, he decided to step back and come back later. He sturdy himself and come back on the third day, now he had facing a little bit draw-down on the third day the total account balance is around 484 dollar, he started looking for the trades opportunity and at the end of the day he took almost 5 trades with the 10% risk per trade but the third day results had also again bad and he lose 4 trades out of 5 and just win 1 trade, he had very shameful from himself, he closed the laptop goes to outdoor and talk to himself. He analysis the current situation of the account, it that point the total account balance is around 276 dollar he almost around 45% in draw-down and the wining ratio had below 50% so now he entered to the negative side. On the fourth day morning he traded 2 trades and he lose both of them now he almost lose the hope and the account condition had around 72% in draw-down and he left only 138 dollar in the account. At the time he give up and he just decided to depend on just one trade, he just waiting for the best opportunity of the day and finally he got the trade but at the end he lose that trade again and he almost blow out had account. After that all he had stressful and sad from almost one week, he decided to leave the trading and move on to the next thing and he looking to find other things that suitable for him because he think that trading is not suitable for him. One month later he just scrolling on the internet and he see the FAQ that 90% of traders lose and only 10% had succeed, now he had a little bit shock and he think that its pretty normal every trader in the 90% had facing that stage which stage that i faced. He decided to come back to trading and start from the zero, he started to modify had strategy and created new rules for had strategy like he set this time risk to reward ratio for had trades is minimum 1/2 and he decided to risk only 2% of the total account also he decided to take only 2 trades per day, this time he opened the demo account rather than the real account and start trading with demo account, he decided to journal had journey and after one month of consistency he hadn't break any rules and when he see the results after month he had profitable, now he feel like stronger and he continue the journey with that same demo account after three months he had similar results and still profitable. In that time he think that i don't have much money and in trading it's required a lot of money to earn a lot of profits, he started to search for that how he had to prove himself to big investors and raise money for himself to trade. One day he searching and he knows about prop firms trading now he had interested in that and wanted to know more about prop firms, he think that this is the big opportunity for himself to become succeed quickly, now he decided to trade with prop firms and buy the challenge from the prop firms, he adjusted had strategy rules and trading plan according to the prop firms requirement, now but the only problem is that he don't have money to actually buy the prop firms challenge. By the way he was dropout from the school after completing had secondary education and so he just setting at the home, he don't have much money to buy the challenge, the pocket money of him had just depend on him father and he hadn't want to say to father to give me extra money because of him father was very poor and he work as a taxi driver, so then he had decided to get the any kind of job for himself and try to earn some money in the form of salary and buy the challenge with that money, he worked hard and after one month he got the salary and then he just swift to the prop firm website and buy the $50000 account challenge for himself, now he started trading with challenge account phase one, on the phase one he decided to risk only 1% per trade, take only 2 trades a day and the every trade risk to reward ratio had to minimum 1/2 after one month of consistency he gained +8% profit, he was in profit but he hadn't achieved the prop firm required profit target which is +10% in that case prop firm gives traders free retake so then he take the challenge again with the new account and new month from zero and he think that my wining ratio for the previous month is almost around 40% with minimum 1/2 risk to reward ratio and my daily limit is 2 trades so i need to increase my daily limit from 2 to 3 because if i traded with the same rule 2 trades a day then i hadn't pass with 40% wining ratio. He calculate some numbers like he think, if i take 3 trades per day so then at the end of the month my all trades had to be 60 trades per month and if i maintain my 40% wining ratio then i can easily pass the challenge with that mindset he started the challenge and strictly follow the rules after month he hadn't maintain the 40% wining ratio and he end up with some loss and failed the challenge, this time he almost faced big depression after some days left he realized had mistake and he think i made mistake that i increase my daily trades limit because of this my wining accuracy goes down, i just forced myself to take 3 trades per day and get trapped into the normal trades. At that time he hadn't left any pathway he almost try everything but at the end he faced failure, him father had now getting older and he decided to step back again he start going to the normal job and start saving 30% of had salary, he do that job for almost one year and after one year later he had some saved money in the bank account to buy multiple 10x challenges, he come back to the trading but this time he hadn't leave the job and he do trading like part time thing. He started had journey again he decided to hadn't give up and repeat the process so then he started buying challenges after one by one in some challenges he failed in phase one in some he failed in phase two in some he almost pass the challenge and got the live funded account but hadn't get payout and lose the account in the first month. The journey had started goes on and he just repeating the process and doing try again and again. Will be continued..... Some lessons from the story > Never open real account in the start, try to learn first on demo account. > Don't try to be smart in the front of the market. > Don't lose hope in draw-downs just repeat the process of your trading plan. > Take every trade with the hope of wining. > Never depend on a single trade. > Don't leave too fast stay in the market. > Give yourself enough time to create the solid proven strategy that works at least for you. > Respect your trading limits. > Don't depend on just trading and never leave your job, consider trading like part-time thing in the starting. > Learn from your mistakes and improve your performance. > Make mistakes but don't repeat that mistakes again. > Never depend on small capital always look for an opportunity. > Journal your journey, record your trading performance and improve next time. > Don't fear from failure. > Be patient, market is here not going anywhere. > Don't force yourself to take normal trades wait for good opportunity always. > Don't count the numbers, you need to count the percentage. > Don't try to be rich quickly. > Step back, if you damaged from market then simply step back and come back stronger don't try to fight. If you learned any other lessons from the story, let me know in the comments. What you feel about one day he will be succeed or just the failure always, also let me know in the comments. I hope you enjoyed the story, appreciate my work with like comments and share. I wish you good luck in trading.

Education

Common Fears in Trading and How to Overcome Them As we discussed many types, psychology plans a crucial role in trading. Even the best strategy in the world, can be screwed by emotional decisions. In this educational articles, we will discuss 5 common fears in trading and the ways to overcome them. 1️⃣Fear of the Unknown. Lack of experience make many traders face "unusual" situations on the market: the setups, patterns, fluctuations and formation that they have never seen before. Such events cause inaction and paralyze. Not knowing how to deal with such situations, newbies make irrational decisions that most of the time incur losses. ✔️Solution: The best way to beat the fear of the unknown is to keep learning: reading the books, watching the charts, studying the historical data will help you to be prepared for various situations. Also, your mindset plays an important role here: your adaptability, your willingness to accept the changing nature of the market are essential for your success in trading. 2️⃣Fear of Being Wrong. Testing multiple strategies and trading techniques, the only way for the newbie traders to prove their efficiency is to try them, try them on real market. And of course, the majority of the stuff that you will try won't work. In trading, each mistake costs money, hence, losses will be inevitable. The fear to make a mistake will be chasing you. ✔️Solution: The best way to overcome the fear of being wrong is to build a confidence in your actions. After trying multiple strategies, you will certainly find the one that works. More you will trade with that, more winning trades you will catch, more confident you will become in your system. 3️⃣FOMO - Fear of Missing Out There are thousands of instruments to trade. Many markets are opened 24 hours a day. Of course, you can not monitor them all, and even if you have a fixed watch list of the instruments that you trade, you can not monitor them 24/7. Some opportunities will always be missed. Some trading setups will form while you are sleeping, and accurate patterns will form on the instruments that are not in your watch list. Realizing the fact, that something will always be missed, is painful. For that reason, newbie traders are trying to be present everywhere at anytime. But the paradox is that more options breed more confusion. ✔️Solution: Always remember the fact that patience always pays. Opportunities will always come, but in order to catch them, you need focus. And fewer instruments you have in your watch list, more attention you pay to them. 4️⃣Fear of Losing Money The biggest risk in trading is the fact that your entire trading account can be blown in a glimpse of an eye. Moreover, trading can be learned only by trading. And losses are inevitable, no matter how good you are. That makes newbie traders be scared of opening just one single position. ✔️Solution: I always give my students the recommendation to trade with the amount that they can afford themselves to lose. Consider your trading account as an investment. With each single trade, you are investing in your skills, in your knowledge. You pay the market to teach you. 5️⃣Fear of Not Taking Profit at the Right Time Imagine you opened a trade and the market suddenly starts moving in the direction that you expected. It is coming closer and closer to your target... A few seconds after, however, the market rolls over. You see how your profits start evaporation. Probably you chose incorrect take profit level? Maybe it is the moment to close the trade manually? You are scared that all the profits will be gone. ✔️Solution: Take profit level selection is a very hard element of each trading strategy. The only way to not let your emotions intervene is to build the solid system that proved its efficiency and learn to be disciplined to follow that no matter what. Always remember that no one can teach you how to deal with yourself. How to deal with your emotions. You should go through all these fears by your own and find the way to beat these dragons. The solutions that I shared helped me to beat my dragons, I hope that they will help you to beat yours! ❤️Please, support my work with like, thank you!❤️

Education

by VasilyTrader

What is Trading Plan? Detailed Example A short ⚠️disclaimer before we start: the rules that will be discussed in this post are applicable only for technicians - traders that are relying on price action/structure/etc. Also, we assume that structure levels do work and for us, key levels are considered to be the safest trading zones/points. In order to increase the accuracy of your predictions analyzing different financial markets, you must learn to identify the direction of the market.📈 The identification of the market trend must be based on strict & reliable & testable rules. It can be based on technical indicators or price action Personally, I prefer to rely on price action. There are three main types of market trends: Bullish Trend Bearish Trend Sideways Market Depending on the current direction of the market, on the chart, I drew a flow chart✔️ that will help you to act safely. ➡️Sideways market signifies consolidation & indecision. Usually being in such a state the market tends to coil in horizontal ranges. To trade such a market safely, the best option for you will be to wait for a breakout of the range & wait for the initiation of the trend. ➡️Once you spotted a bullish market, do not rush to buy. Your task will be to identify the closest strong structure support . You must be patient enough to let the price reach that support first (and by the way, there is no guarantee that it will happen) and then you must wait for a certain confirmation. Only once you get the needed confirmation you can buy the market. ➡️The same strategy will be applicable to a bearish market. Spotting a short rally it is way early to just sell the asset from a random point. You must find the closest strong structure resistance and wait for the moment when the price will approach that. Then your task will be to wait for a confirmation and only when you got the reliable trigger you short the market. 🦉Try to rely on this flow chart and I promise you that you will see a dramatic increase in your trading performance. And even though it may appear to you that this flow chart is TOO SIMPLE, in practice, even such a set of rules requires iron discipline and patience. Thank you so much for reading this article, I hope you enjoy it! Let me know, traders, what do you want to learn in the next educational post?

Education

by VasilyTrader

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