Mastering the Anchored Volume Profile: Setup & Tutorial on TVMastering the Anchored Volume Profile: Setup & Tutorial on TradingView 📊
The Anchored Volume Profile is a powerful tool that traders use to visualize volume distribution over a specified price range, providing critical insights into market behavior. Here’s a detailed description of its setup and usage on TradingView:
In this video, we will be going in-depth into the following areas:
What is the Anchored Volume Profile?
The Anchored Volume Profile is a specialized indicator that helps traders understand the distribution of traded volume at different price levels. Unlike traditional volume profiles that analyze data over a fixed time period, the anchored version allows traders to anchor the volume analysis to specific bars, candles, or price points.
Why Use the Anchored Volume Profile?
Identifying Support and Resistance Levels: You can easily identify key support and resistance levels by analyzing where the most volume has been traded.
Spotting Trends and Reversals: High-volume nodes can indicate areas of strong interest, helping to predict potential trend continuations or reversals.
Improving Entry and Exit Points: Knowing where the market participants are most active can significantly enhance your decision-making process for entries and exits.
How to set up the Anchored Volume Profile on TradingView:
Add the Anchored Volume Profile Indicator:
Click on the “Indicators” button at the top of the chart.
Search for “Anchored Volume Profile” in the search bar.
Select it from the list and apply it to your chart.
Anchor the Indicator:
Click on the anchor icon that appears on the chart.
Drag it to the specific bar, candle, or price point where you want to start your volume analysis.
Customize Settings:
Adjust the settings to suit your trading style. You can modify the range, color, and other parameters to better visualize the data.
Using the Anchored Volume Profile:
Analyzing Volume Nodes: Identify high and low volume nodes. High volume nodes often act as support or resistance, while low volume nodes might indicate potential breakout areas.
Understanding Market Sentiment: See where the majority of trading activity has taken place to gauge market sentiment.
Making Informed Decisions: Use the insights from the volume profile to make better-informed trading decisions regarding entries, exits, and stop-loss levels.
Tradingforbeginners
Learn Best Time Frames For Scalping Any Forex Pair
I am trading forex with top-down analysis for many years.
In this article, I will teach you powerful combinations of multiple time frames for scalping any currency pair.
For scalping financial markets with multiple time frame analysis, I recommend applying 3 time frames: 4H, 15 minutes and 5 minutes time frames.
4H time frame will be applied for trend and structure analysis.
On a 4H time frame, you should identify the direction of the market and significant supports and resistance.
Key supports in a bullish trend will be applied for buying the market.
While key resistances will be applied for counter trend trading.
Above is USDJPY chart, 4H time frame.
The trend is bullish and I have underlined important historical structures.
Key resistances in a bearish trend will be applied for selling the market.
While key supports will be applied for counter trend trading.
Look at a structure and trend analysis on EURUSD on a 4H time frame.
15 minutes and 5 minutes time frames will be applied for confirmation, entry signal and trade execution.
The logic is that once you identified key levels on a 4H time frame, you are patiently waiting for the test of one of these structures.
Once one of the key levels is tested, you start analyzing 15 minutes and 5 minutes time frame and look for a signal there.
What should be the signal?
It can be a specific candlestick pattern, price action pattern, some signal from a technical indicator or some other stuff.
Personally, I look for a price action pattern.
I am looking for a bearish price action pattern on a 4H resistance and a bullish price action pattern on a 4H support.
Look at GBPUSD. The pair is trading in a bearish trend on a 4H time frame, and it tests a key horizontal resistance.
On 15 minutes time frame, we see a strong bearish price action signal.
Head and shoulders pattern formation and a bearish breakout of its horizontal neckline.
That will be our strong scalping short signal.
If you sell the market in a bearish trend on a 4H from a key resistance, you can anticipate a bearish movement to the closest 4H support.
Look how nicely GBPUSD dropped after a strong bearish confirmation of 15 minutes time frame.
In that case, we did not apply 5 minutes time frame in our analysis,
keep reading and I will explain when we apply 5 minutes time frame for scalping.
Above is USDCAD. On a 4H time frame, I executed trend and structure analysis. We see a test of a key support in a bullish trend.
At the same time, no pattern is formed on 15 minutes time frame after a test of structure.
In such a situation, analyze 5 minutes time frame. If there is no pattern on 15m, probabilities will be high that the pattern will appear on 5m.
On 5 minutes time frame, the pair formed the ascending triangle formation. A bullish breakout of its neckline is a strong bullish signal and confirmation for us to buy.
If you buy the market in a bullish trend on a 4H from a key support, you can anticipate a bullish movement to the closest 4H resistance.
You can see that after our confirmed bullish signal, the price went up to Resistance 1.
Both trading opportunities that we discussed are trend following ones.
Remember that the trades that are taken against the trend are riskier and have lower accuracy.
For that reason, if you are a newbie trader, strictly trade with the trend!
Good luck in scalping with multiple time frame analysis!
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Unlock Market Targets with Fibonacci: Precise Entries & Exits Hey there! In this video, I’ll walk you through how I use the 50% and 100% Fibonacci levels to get a clear sense of where the market might move next. It’s a simple, no-fuss approach that helps me trade with more confidence—without cluttering my charts with tons of indicators.
The projection marks where a move might wrap up—perfect for deciding when to exit or take profits. Whether you’re into forex, crypto, or stocks, this strategy can keep things simple and effective.
If you found this helpful, feel free to like, boost, comment, or follow—I’d love to know your thoughts and hear how this method works for you!
Mindbloome Trading
Trade What You See
Best Swing Trading Strategies For Beginners (FOREX, GOLD)
I am going to reveal 3 profitable swing trading strategies for beginners.
These strategies are tailored for trading Gold, Forex or any other financial market.
I will explain entry signal, stop loss and take profit placement for every strategy and share a lot of examples based on real trades that we took with my students.
First, let's discuss key elements that unite these strategies.
1. All the strategies will be trend-following.
It means that the trades will be taken strictly in the direction of the market trend.
2. All the strategies will be daily time frame based.
Daily time frame will be the main time frame for the market analysis.
3. All the strategies are technical analysis strategies.
The decision-making and market analysis will be strictly based on technical analysis: price action, support and resistance.
Strategy 1: Break of Structure Strategy
Break of Structure is a classic swing trading trend following strategy that is based on:
1. Bullish breakout of the level of the last higher high in a bullish trend
2. Bearish breakout of the levels of the last lower low in a bearish trend
In a bullish trend, a bullish violation of the level of the last higher high and a candle close above that is a very strong bullish signal.
It signifies the strength of the buyers and indicates a highly probable bullish continuation.
A perfect entry point after a confirmed Break of Structure is the retest of the level of the last higher high.
Stop loss is 1 ATR.
Take Profit - the next key resistance.
Look at EURCAD pair on a daily time frame.
The market is trading in a bullish trend and we see a confirmed break of structure - a daily candle close above the level of the last higher high.
Here is how the trading position should look.
Take profit is the closest resistance based on a historic price action.
Look how perfectly this trade played out.
In a bearish trend, a bearish violation of the level of the last lower low and a candle close below that is a strong bearish signal.
It signifies the strength of the sellers and indicates a highly probable bearish continuation.
A perfect entry point after a confirmed Break of Structure is the retest of the level of the last lower low.
Stop loss is 1 ATR.
Take Profit - the next key support.
Above, EURNZD is trading in a bearish trend on a daily and we see a confirmed break of structure - a daily candle close below the level of the last lower low.
Here is how a short position looks - entry is on a retest of a broken structure, stop loss is 1 ATR and take profit the closest key support.
163 pips of pure profit were made.
Strategy 2: Trend Line Strategy
Trend Line is a classic swing trading trend following strategy that is based on:
1. Rising trend line based on higher lows in a bullish trend
2. Falling trend line based on lower high in a bearish trend
In a bullish trend, higher lows may respect a rising trend line.
Such a trend line will be a strong vertical support.
It will provide a safe point for buying the market.
Entry will be based on a test of a trend line.
Take profit will be at least the level of the current higher high.
Stop loss will be 1 ATR.
When you are looking for a trend line in a bullish trend, remember a simple rule.
A valid trend line should be confirmed by at least 3 touches and 3 consequent bullish reactions to that.
For example, a rising trend line on a GBPUSD above will be invalid trend line because it is confirmed by just 2 touches.
While the trend line that I spotted on USDCAD is valid, because it was already respected 3 times in a row in the past.
Above is the valid rising trend line based on higher lows in a bullish trend.
Here is how a swing long trend from that trend line should look.
Stop loss is based on 1 ATR. Entry from a trend line.
Take profit is based on the current higher high.
Almost 300 pips were made.
In a bearish trend, lower highs may respect a falling trend line.
Such a trend line will be a strong vertical resistance.
It will provide a safe point for selling the market.
Entry will be based on a test of a trend line.
Take profit will be at least the level of the current lower low.
Stop loss is 1 ATR.
When you are looking for a trend line in a bearish, remember a simple rule.
A valid trend line should be confirmed by at least 3 touches and 3 consequent bearish reactions to that.
The trend line on EURGBP above is invalid because 2 touches confirm it.
While that trend line is valid and confirmed by 3 strong bearish reactions.
In the example above, EURCHF is trading in a long term bearish trend.
Lowers highs perfectly respect a falling trend line.
It can provide a safe entry for swing short trade.
Following the rules of our trading strategy, here is a swing short trade from that trend line.
Stop loss is 1 ATR. Take profit is based on the current lower low.
250 pips of pure profit were made.
Strategy 3: Higher Low / Lower High Strategy
Higher Low / Lower High is a classic swing trading trend following strategy that is based on:
1. The last higher low in a bullish trend
2. The last lower high in a bearish trend
In a bullish trend, the level of the last higher low composes an important horizontal support from where, with a high probability,
a bullish wave may initiate.
This level will provide a perfect entry for swing long trade.
Stop loss will be 1 ATR.
Take profit will be the resistance based on current higher high.
USDCHF is trading in a bullish trend on a daily.
The levels of the last higher low is a perfect point to buy the market .
According to the rules, stop loss is based on 1 ATR.
Take profit is based on the current higher high.
Great winner and nice trade!
In a bearish trend, the level of the last lower high composes a key horizontal resistance from where, with a high probability,
a bearish wave will initiate.
This level will provide a perfect entry for swing short trade.
Stop loss will be 1 ATR.
Take profit will be the support based on current lower low.
Look at EURUSD on a daily.
The pair is trading in a bearish trend.
The level of the last lower high provides a safe point
to sell the market from.
That's how a short position should look based on the rules of the trading strategy.
Stop loss is 1 ATR.
Take profit is based on the last lower low.
Entry is the level of the last lower high.
Target was quickly reached.
All these strategies are very accurate.
It provides good reward to risk ratio and is very easy to understand and apply properly.
Try one of these swing trading strategies and find the one that suites your trading style.
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Beware of Trading on Public Holidays!
In this educational article, we will discuss why is it recommendable not to trade during the public holidays. I will explain to you how banking holidays affect the financial markets and how it may impact your trading.
WHY???
🏦 The main source of problems comes from the fact that the big market players like:
banks,
hedge funds
investing firms
are absent.
Similarly to ordinary people, bankers and investors prefer to spend the holidays with their relatives and friends instead of staring at charts on Holidays.
HOW???
But how does it affect the market?
Big players are the main source of the market liquidity.
The liquidity itself is the measure to which an asset can be quickly bought or sold in the market at a price of its quotes.
Therefore, when the big players are missing, the market liquidity drops.
WHAT???
1️⃣ That fact instantly reflects in the market spreads.
They become substantially bigger, directly increasing the costs of each trade and making it problematic to open a position at a desired price.
2️⃣ Secondly, low liquidity leads to a decrease in volatility.
The market becomes weak and indecisive.
As traders, we make the money on market moves. Our goal is to catch a bullish or a bearish wave. Their absence deprives us of profits or, at least, dramatically decreases them.
Look at a chart above, it is EURJPY on a 4H time frame. Look how weak and boring the pair was in US Independence Day - official US banking holiday.
And here is how weak and slow was Gold during US Independence Day on an hourly time frame .
3️⃣ Thirdly, when the liquidity is low, even small market participants can move the market.
It dramatically increases the probabilities of false signals. Relatively low trading volumes may manipulate the market, substantially decreasing the efficiency of technical and fundamental analysis.
Look at a density of false breakout on Dollar Index DXY on 15 minutes time frame the 19th of June - Juneteenth National Independence Day in US.
All these breakouts were the manipulations and false signals.
The increased costs of trading, low volatility and manipulations should have convinced you to stay from charts during the holidays season.
However, the main reason to not trade on holidays is much simpler.
Holidays give you an opportunity to stay with your family, to take a break, to recharge and relax. Even a part-time trading is very exhausting and requires a constant attention. Let yourself be distracted and return after holidays.
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Forex Trade Management Strategies. Techniques For Beginners
I am going to reveal 4 trade management strategies that will change the way you trade forex.
These simple techniques are aimed to minimize your losses and maximize your gains.
1. Trading Without Take Profit
Once you spotted the market that is trading in a strong bullish or bearish trend, there is one tip that will help you to benefit from the entire movement.
If the market is bullish, and you buy it expecting a bullish trend continuation, consider trading WITHOUT take profit.
Take a look at USDJPY on an hourly time frame.
The market is trading in the bullish trend, and we see a strong trend-following signal - a bullish breakout of a current resistance .
After the violation, the price went up by more than 1000 pips, and of course, trading with a fixed target, most likely you would close the trade too soon.
The same trade management strategy can be applied in a bearish trend.
Above is a price action on GBPUSD. The pair is very bearish, and we see a strong bearish signal on an hourly time frame.
The market dropped by more than 1000 pips then, and of course, trading with the fixed take profit, you would miss that bearish rally, closing the trade earlier.
Even though the trends do not last forever, the markets may easily fall or grow sharply for weeks or even months and this technique will help you to cash out from the entire movement.
2. Stop Loss to Breakeven
Once you open a trading position and the market starts going in the desired direction, there is a simple strategy that will help you to protect your position from a sudden reversal.
Above is the real trade that we took with my students in my trading academy. We spotted a very bearish pattern on USDCAD and opened short position.
Initially we were right, and the market was going to our target.
BUT because of the surprising release of negative Canadian fundamental news, the market reversed suddenly, not being able to reach the target.
And that could be a losing trade BUT we managed to save our money.
What we did: we moved our stop loss to entry level, or to breakeven, before the release of the fundamentals.
Trade was closed on entry level and we lost 0 dollars.
Moving stop loss to entry saved me tens of thousands of dollars.
It is one of the simplest trade management techniques that you must apply.
3. Trailing Stop Loss
Once you managed to catch a strong movement, do not keep your stop loss intact.
As we already discussed, your first step will be to protect your position and move your stop loss to entry.
But what you can do next, you can apply trailing stop loss.
Above is a trend-following trade that we took with my students on GBPCHF.
Once the market started moving in the desired direction, we moved stop loss to breakeven.
As the market kept setting new highs, we trailed the stop loss and set it below the supports based on new higher lows.
We kept trailing the stop loss till the market reached the target.
Application of a trailing stop will help you to protect your profits, in case of a sudden change in the market sentiment and reversal.
4. Partial Closing
The last tip can be applied for trading and investing.
Remember that once you correctly predicted a rally, you can book partial profits, once the price is approaching some important historical levels or ahead of important fundamental releases.
Imagine that you bought 1 Bitcoin for 17000$.
Once a bullish market started, you can sell the portion of your BTC, once the price reaches significant key levels.
For example, 0.2 BTC on each level.
With such trade management technique, you will book profits while remaining in your position.
Even though, these techniques are very simple, only the few apply them. Try these trade management strategies and increase your gains and avoid losses!
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Do Not Overwhelm Your Price Chart!
In this article, we will discuss a very important term in trading psychology - paralysis by analysis in trading.
Paralysis by analysis occurs when the trader is overwhelmed by a complexity of the data that he is working with. Most of the time, it happens when one is relying on wide spectra of non correlated metrics. That can be various trading indicators, different news outlets and analytical articles and multiple technical tools.
Relying on such a mixed basket, one will inevitably be stuck with the contradictory data.
For example, the technical indicators may show very bearish clues while the fundamental data is very bullish. Or it can be even worse, when the traders have dozens of indicators on his chart and half of them dictates to open a long position, while another half dictates to sell.
Above, you can see an example of a EURUSD price chart that is overwhelmed by
various technical indicators: Ichimoku, MA, Volume, ATR
support and resistance levels
fundamental data
As a result, the one becomes paralyzed , not being able to make a decision. Moreover, each attempt to comprehend the data leads to deeper and deeper overthinking, driving into a vicious circle.
The paralysis breeds the inaction that necessarily means the missed trading opportunities and profits.
How to deal with that?
The best option is to limit the number of data sources used for a decision-making. The rule here is simple - the fewer indicators you use, the easier it is to make a decision.
EURUSD chart that we discussed earlier can look much better. Removing a bunch of tools will make the analysis easier and more accurate.
There is a common fallacy among traders, that complexity breeds the profit. With so many years of trading, I realized, however, that the opposite is true...
Keep the things simple, and you will be impressed how accurate your predictions will become.
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What to Do If You Are Losing in Trading?
Have you ever been in the following situation?
You pick a trading strategy, you make nice profits and then, for some unknown reasons, you start losing. You take one trade after another and the strategy stops working.
That is a very common thing that happens will every trader. I am trading for more than 9 years, and you know what, this year I got a trading week when I got 4 losing trades in a row.
In this article, I will explain to you what to do in such a situation and how to deal with losses.
So here are the trades that I took.
I shorted EURJPY, EURNZD, GBPJPY and USDCAD.
I bought AUDJPY.
All the trades a rule based, they were strictly taken in accordance with my trading strategy.
AUDJPY, EURJPY, EURNZD, GBPJPY trades closed in a loss and USDCAD closed on breakeven.
It is a l osing streak of 4 trades.
Does it mean that a trading strategy doesn't work anymore?
What 90% of traders do when they face the situations like that, they start trading with a new strategy. They win, they face a losing streak and the cycle repeats.
The truth is that there is no trading strategy that does not lose occasionally.
Losing streaks are the part of the game.
For the last 5 years, my strategy shows 64% average win rate.
It means that among 10 trades, the first 4 can be the losing ones and the 6 remaining can be the winners.
It is the game of statistics.
Now, imagine the potential distribution of winners and losers in 100 trades.
If you know that your strategy is historically profitable , if you back tested that, and it proved its efficiency what you should do, you should keep trading that.
The more losses you face, the higher is the probability that the winning streak is coming.
Each losing trade will increase the chance that the next one will be finally profitable.
With so many years of trading and faced various drawdowns and losing streaks, what I learned is that if you keep trading your strategy, if you keep trusting that, the market will always give you a chance to recover.
But if you stop, if you drop the strategy once you face a losing streak and pick a new one, you will simply miss the winning streak.
Repeating that cycle at the end of the day you will lose everything.
That is the hard truth about rule-based trading.
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LEARN THE MOST IMPORTANT FOREX FUNDAMENTALS 📰
Even though I am a pure technician and I rely only on technical analysis when I trade, we can not deny the fact that fundamentals are the main driver of the financial markets.
In this post, we will discuss the most important fundamentals that affect forex market.
You can check coming fundamental news on TradingView in the economic calendar.
The calendar button on the right side will display the coming news.
Click "only high importance" button and the system will display only the most important news.
Here are the most important fundamental releases that you should pay close attention to:
📍Unemployment rate.
Unemployment rate reflects the percentage of people without a job in a selected country or region.
Rising unemployment rate usually signifies an unhealthy state of the economy and negatively affects the currency strength.
📍Housing prices.
Housing prices reflect people's demand for housing. Rising rate reflects a healthy state of the economy, strengthening purchasing power of the individuals and their confidence in the future.
Growing demand for housing is considered to be one of the most important drivers in the economy.
📍Inflation.
Inflation reflects the purchasing power of a currency.
It is usually measured by evaluation of the price of the selected basket of goods or services over some period.
High inflation is usually the primary indicator of the weakness of the currency and the unhealthy state of the economy.
📍Monetary policy.
Monetary policy is the actions of central banks related to money supply in the economy.
There are two main levers: interests rates and bank reserve requirements.
Higher interest rates suppress the economy, making the currency stronger. Lower interests rates increase the money supply, making the economy grow but devaluing the national currency.
📍Political discourse.
Political discourse is the social, economical and geopolitical policies of the national government.
Political ideology determines the set of priorities for the ruling party that directly impacts the state of the economy.
📍Payrolls and earnings.
Payroll reports reflect the dynamic of the creation of new jobs by the economy, while average earnings show the increase or decrease of the earnings of the individuals.
Growing earnings and payrolls positively affect the value of a national currency and signify the expansion of the economy.
Pay closes attention to these fundamentals and monitor how the market reacts to that data.
What fundamentals do you consider to be the most important?
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TradingView is Everything You Need to Start Trading
If you are planning to start Forex and Gold trading, I prepared for you a list of 6 essential things that you will need for a successful start.
1 - Charting Software
Obviously, if you want to trade, you should analyze the charts.
Most of the beginners apply metatrader 4 or 5 for that.
Even though meta trader is good as a trading terminal, from charting perspective it is already outdated.
My recommendation to you is to apply TradingView for chart analysis.
It is very user-friendly, it offers all popular trading instruments, and it has a wonderful community where you can check ideas and forecasts of experienced traders.
2 - Set up Your Watch List
There are hundreds of different trading instruments for Forex traders:
major and minor pairs, exotic pairs, cfds on gold, silver, oil, etc...
Your task as a beginner is to focus on a very narrow list of trading assets.
Build a trading list of maximum 8 instruments , learn to trade them and expand the list as you mature in trading.
Here is the example of a watch list for beginners: 7 major USD forex pairs.
3 - Make a Trading Plan
There are hundreds of different trading strategies and techniques in Forex trading. And obviously, you can not trade them all.
Pick a strategy that you like, that makes sense to you.
Focus on that and practice, practice, practice.
4 - Economic Calendar
Even if you decide to trade only technical analysis, you should not forget to check fundamentals in the economic calendar and learn their impact on the markets.
You need an economic calendar for that.
There is an economic calendar on TradingView, it is very reliable and you can find the important news there
Pay attention to important 3-star news, and preferably don't trade ahead of the releases while you are learning.
5 - Demo Account
Trading education is a long journey.
While you are studying trading basics and trying different trading strategies, you should strictly trade on a demo account.
I recommend paper trading on TradingView, so that you could have the analysis and the trades on the same chart.
6 - Position Size Calculator
You should learn to calculate lot size for your trades from the beginning. You should always know how much is your risk per trade. For that reason, placing the trades on a demo account, you should measure lot sizes for your trades.
If you demo trade on TradingView, it offers a default position size calculator when you can set the lot size according to a desired risk.
Good luck in your journey and be prepared to work hard!
9 Essential TIPS For Newbie Traders (Learn from my Mistakes!)
In the today's article, I will reveal trading secrets I wish I knew when I started trading.
1️⃣ Forget about becoming a pro quickly
Most of the traders believe, that you can learn how to trade easily and that it takes a very short period of time in order to master a profitable trading strategy.
The truth is, however, that trading is a long journey.
I spent more than 3 years, trying different strategies and looking for a profitable technique to trade. Once I found that, it took more than a year to polish a trading strategy and to learn how to apply that properly.
Be prepared to spend YEARS before you find a way to trade profitably.
2️⃣ Focus on One Strategy
While you are learning how to trade you will try different techniques, tools and strategies. And the thing is that newbies are trying multiple things simultaneously. The more strategies you try at once, the more setups you have on your chart. The more setups you have on your chart, the more complex and difficult is your trading.
Remember that in this game, your attention is the key.
You should meticulously study each and every trading setup.
For that reason, I highly recommend you to focus on one strategy, one approach, one technique. Test it, try it and look for a new one only when you realize that it doesn't work.
Here is the example how the same price chart can provide absolutely different trading opportunities depending on a trading strategy.
Price action pattern trader would recognize a lot of a patterns, while indicator based trader could spot absolutely different bullish and bearish signals.
Now, try to imagine how hard it would be to follow both strategies simultaneously.
3️⃣ Start with small capital that you can afford to lose
You will lose your first trading deposit and, probably, the second one and potentially the third one as well.
Losses are the only way to learn real trading. While you are on a demo account, you feel like a king, but once you start risking your savings, the perspective completely changes.
For that reason, make sure that you trade with an account that you can afford to lose. The fact of blowing such an account should be unpleasant, but that should not affect your daily life.
4️⃣ Use stop loss
I am doing trading coaching for more than 4 years.
What pisses me off is that the main reason of the substantial losses of my mentees is the absence of stop loss. Why can it be if naturally everyone: from your broker to Instagram trading gurus repeat that day after day.
Set stop loss, know in advance how much you risk per trade, and know the exact level on a price chart where you become wrong.
Imagine what could be your loss, if you shorted USDJPY and hold the trade while the market kept going against you.
5️⃣ Forget about getting rich quick
That is the iconic fallacy. I believe that around 90% of people who come in this game want to get rich quick, want easy money.
And no surprise, when I share a trading setup on TradingView, and it loses I receive dozens of messages that I am a scammer.
People truly believe that professional trading implies 100% win rate and quick and easy money.
The truth is, traders, that trading is a very tough game. And with a good trading strategy, you have just a little statistical edge that will give you the profits that would slightly overcome your losses.
6️⃣ Train your eyes
Professional trading implies pattern recognition: it can be some technical indicators pattern, the price action or candlestick formation, etc.
Your main goal as a trader is to learn to identify these patterns.
Pattern recognition is a hard skill to acquire.
You should spend dozens of hours in front of the screen in order to train your eyes to identify certain patterns.
Here is how many patterns you would spot on GBPUSD chart, paying close attention.
7️⃣ Track and analyze your trades
Study all the trades that you take, especially the losing ones.
Look for mistakes, look for the reasons why a certain setup played out and why a certain one didn't. Journal your trades and make notes.
8️⃣ Don't use technical indicators
Newbies believe that technical indicators should do the work for them.
They are constantly looking for one or a bunch that will accurately show where the market will go.
However, I always say to my mentees that technical indicators make the chart messy and distract.
If you just started trading, focus on a naked chart, learn to analyze the market trend, key levels, classic price action patterns.
Learn to make accurate predictions relying on a price chart alone.
Only then add some technical indicators on your chart.
They won't do the work for you, but will help you to slightly increase the accuracy of a certain setup.
Above is the classic chart of newbie trader.
A lot of indicators and a complete mess
The same chart would look much better without technical indicators.
9️⃣ Find a Mentor
There are hundreds of trading mentors. Find the one with a trading style that you like.
Follow him, learn from his trading experience, listen to his trading recommendations.
9 years ago I found a guy, his name was Jason.
I really liked his free teachings, and they were meaningful to me.
I decided to purchase his premium coaching program.
It was 200$ monthly - a huge amount of money for me at that time.
However, with his knowledge I saved a lot, I learned a lot of profitable techniques and tricks that helped me to become a professional forex trader.
Of course, this list could be much bigger.
The more I think about different subjects in trading, the more important tips come to my mind. However, I believe that the tips above
are essential and I truly wish I knew all that before I started.
I hope that info will help you in your trading journey!
Good luck to you.
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Learn 6 Common Beginner Trading Mistakes
In the today's post, we will discuss very common beginner's mistakes in trading that you should avoid.
1. No trading plan 📝
That is certainly the TOP 1 mistake. I don't know why it happens but 99% of newbies assume that they don't need a trading plan.
It is more than enough for them to watch a couple of educational videos, read some books about trading and Voilà when a good setup appears they can easily recognize and trade it without a plan.
Guys, I guarantee you that you will blow your trading account in maximum 2 months if you keep thinking like that. Trading plan is the essential part of every trading approach, so build one and follow that strictly.
2. Overtrading 💱
That mistake comes from a common newbies' misconception: they think that in order to make money in trading, they should trade a lot. The more they trade, the higher are the potential gains.
Same reasoning appears when they choose a signal service: the more trades a signal provider shares, the better his signals are supposed to be.
However, the truth is that good trades are very rare and your goal as a trader is to recognize and trade only the best setups. While the majority of the trading opportunities are risky and not profitable.
3. Emotional trading 😤
There are 2 ways to make a trading decision: to make it objectively following the rules of your trading plan or to follow the emotions.
The second option is the main pick of the newbies.
The intuition, fear, desire are their main drivers. And such an approach is of course doomed to a failure.
And we will discuss the emotional trading in details in the next 2 sections.
4. Having no patience ⏳
Patience always pays. That is the trader's anthem.
However, in practice, it is extremely hard to keep holding the trade that refuses to reach the target, that comes closer and closer to a stop loss level, that stuck around the entry level.
Once we are in a trade, we want the price to go directly to our goal without any delay. And the more we wait, the harder it is to keep waiting. The impatience makes traders close their trades preliminary, missing good profits.
5. Greed 🤑
Greed is your main and worst enemy in this game.
It will pursue you no matter how experienced you are.
The desire to get maximum from every move, to not miss any pip of profit, will be your permanent obstacle.
Greed will also pursue you after you close the profitable trades. No matter how much you win, how many good winning trades you catch in a row, you always want more. And that sense main lead you to making irrational, bad trading decision.
6. Big Risks 🛑
Why to calculate lot size for the trade?
Why even bother about risk management?
These are the typical thoughts of the newbies.
Newbie traders completely underestimate the risks involved in trading and for that reason they are risking big.
I heard so many times these stories, when a trading deposit of a trader is wiped out with a one single bad trade.
Never ever risk big, especially if you just started.
Start with a very conservative approach and risk a tiny little portion of your trading account per trade.
Of course there are a lot more mistakes to discuss.
However, the ones that I listed above at the most common
and I am kindly recommending you to fix them before you start trading with a substantial amount of money.
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I Got Stopped Out Of This Trade. Here's What I'm Doing Next.Hey Purpose trades. I was stopped out of one of my recent trades. I followed my rules to the T as I always do, but price wanted to go the opposite way. In this video I am showing you what I'm doing next.
Have questions or comments? Leave them in the comment section below.
