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Trading Plan

15 Key Principles for Trading SuccesHello fellow traders! I have compiled an article containing valuable insights and practical advice to help you navigate the trading world. Covering essential topics such as technical analysis, risk management, and adapting to market conditions, this resource is designed to enhance your trading skills. Dive in, learn, and apply these principles to your trading journey. Wishing you success and happy trading! 1. The Importance of Risk Management in Trading The key to successful trading lies in managing risks effectively. You need to have a solid plan to protect your capital and stay in the game. Some risk management strategies include using stop losses, limiting margin usage, diversifying your portfolio, and risking only a certain percentage of your portfolio on any given trade. Remember, the best traders know how to limit losses while maximizing profits. 2. Building a Solid Trading Plan Every successful trader has a well-thought-out trading plan that they follow religiously. This plan should include your trading goals, strategies, risk management, and entry and exit points. Crafting a solid trading plan helps you stay disciplined and focused, ensuring long-term profitability. 3. The Value of a Trading Mentor and Learning from Others Having an experienced trading mentor can significantly boost your trading performance. A good mentor can provide valuable insights, guidance, and constructive criticism, helping you refine your strategies and avoid common pitfalls. Also, don't hesitate to learn from other traders by subscribing to high-quality trading YouTube channels or participating in online forums. 4. A Comprehensive Education in Finance and Economics To conquer the financial markets, you need a strong foundation in the basics of finance, macroeconomics, and microeconomics. This knowledge will help you understand the driving forces behind market movements and make more informed decisions. Khan Academy offers excellent free courses in these subjects, and for technical analysis, consider reading "Technical Analysis of the Financial Markets" by John Murphy. 5. The Power of Charting and Technical Analysis Mastering charting and technical analysis is essential for making accurate market predictions. Spend time learning how to use your charting platform, like Trading View, and familiarize yourself with various indicators, tools, and strategies. Knowledge is power, and the more you know about your tools, the better your trading results will be. 6. Staying Humble and Detached in Trading Leave your ego at the door when it comes to trading. It's not about being right; it's about making money. Stay humble and unemotional, and don't let pride or personal attachments cloud your judgment. Remember, every trade has inherent risks, and past performance does not guarantee future success. 7. The Benefits of Keeping a Trading Journal Maintaining a trading journal helps you track your progress, learn from your mistakes, and refine your strategies. Record your insights, trading plans, and the outcomes of your trades. This practice will make you more disciplined and focused, ultimately improving your overall trading performance. 8. Avoiding Speculation and Emotional Trading Successful traders make decisions based on data and analysis, not speculation or emotion. Keep your feelings in check, and never enter or exit a trade based on fear, greed, or personal attachment. Stay objective and remember that data-driven decisions yield the best results. 9. Staying Informed and Recognizing Market Trends Pay close attention to market trends and financial news. Be aware of what's happening in the world, and use this information to inform your trading decisions. However, be cautious of hype and mania, as they often signal the peak of a trend, rather than its beginning. 10. The Art of Strategic Entry and Exit Points Before entering a trade, plan your entry point, stop loss, and profit target. Always ask yourself how much risk you're willing to take for a potential profit. By carefully considering these factors, you'll make more informed decisions and improve your overall trading success. With these principles in mind, you'll be well on your way to mastering the financial markets and achieving consistent profitability in your trading endeavors. Remember, the key to conquering the financial markets lies in continuous learning, discipline, and adaptability. Keep refining your strategies, stay informed about market trends, and always be prepared to adjust your approach as needed. 11. Adapting to Different Market Conditions Markets are ever-changing, and it's crucial for traders to adapt their strategies to suit different market conditions. Develop various strategies for both bull and bear markets, and be prepared to switch gears when the market demands it. Flexibility is the key to long-term trading success. 12. Utilizing Diversification for Risk Mitigation Diversification is an essential part of risk management. By spreading your investments across different assets, sectors, and even trading styles, you can reduce the impact of losses in any single area. This approach helps to protect your overall portfolio and ensures more consistent performance. 13. The Importance of Breaks and Mental Health Trading can be intense and emotionally draining. It's essential to take regular breaks and maintain a healthy work-life balance. By stepping away from the charts, you can recharge, gain perspective, and ultimately make better decisions when you return to trading. 14. Networking and Building Connections in the Trading Community Engaging with the trading community can provide valuable insights, ideas, and opportunities. Attend trading events, join online forums, or participate in social media groups to network with other traders. Sharing experiences and learning from others can greatly enhance your trading skills. 15. Constantly Improving and Evolving as a Trader Finally, never stop learning and evolving as a trader. The financial markets are constantly changing, and what works today may not work tomorrow. Stay curious, keep learning, and be open to new ideas and strategies. By embracing change and growth, you'll ensure long-lasting success in the trading world. In conclusion, conquering the financial markets requires a combination of solid education, discipline, adaptability, and a willingness to learn from others. By implementing these principles and continuously improving your skills, you'll be well-equipped to navigate the complex world of trading and achieve lasting success. So, roll up your sleeves, dive into the markets, and start your journey towards becoming a master trader.
SP:SPXEducation
by Julien_Eche
Patience in Trading Hello traders, Patience in trading is ability to wait to take the right action, if you have not enough patience you will have bad trades bad decisions and cause you to take action too soon. 3 things you should avoid if you want to become a better trader and improve your patience in trading. 1) Don't Rush : Market is there not going anywhere so don't need to rush in bad trades stick to your best trade setups and always looking for an opportunity don't rush into normal trades. So don't need to rush just relax and take things step by step, enjoy the journey of your trading. ''If you need to hurry, you are already too late'' 2) Over Confident : Over confident is a very worse thing especially in trading when someone overestimates their own skill and knowledge which can lead to them making mistakes. There are some types of over confident like wishful thinking, over ranking, and illusion of control etc... These all of types over confident can lead to big losses in trading. Some of things that you can do to overcome your over confidence in trading is : > Don't believe too much in your skills > Always use stop loss > Don't thinking just only for today > Create your trading rules and don't break stick to it > Always stay in the middle line don't go to the extreme which cause you over confident and don't go to the slight which cause you depression. ''We can never reach a stage where we can say, i know everything and i have nothing more left to learn'' 3) Believe : Believe in yourself if you don't have enough believe in your trading system or any kind of decisions you take in trading you can lead to big losses like comes in fear and try to close running trades and don't have enough believe in your taken trades. Try to believe in yourself, try to believe in your decisions, try to believe in your trading system and be patient with your taken steps and wait for the outcome either it will bad or good doesn't matter just continue the process and learn from your previous mistakes and be better next time. ''Trust yourself, you know more than you think you do'' These are 3 things that you should need to do for patience in trading. If you have any advice to be patient in trading please let me know in the comments. I wish you good luck and good trading. If you like the post, please support my work with like, thank you!
Education
by TheLoserMan
Forex market players: Who trades Currencies and Why? The foreign exchange market is used by banks, investment companies, companies and even individuals who want to either cover themselves against the risk of foreign exchange fluctuations or to speculate in hopes of making a profit. 95% of all forex transactions are purely speculative in nature. Only 5% of all forex transactions result from international companies who need to convert their money back to the company's main operating currency. Commercial banks are the main participants in the forex market, but their "market share" is slowly shrinking. Currently, 43% of all transactions pass through the interbank market, as opposed to 63% in 1998 and 53% in 2004. In terms of forex trading activity, the main role of banks is to serve as middlemen for the other market participants. Their objective is to make profits through "market making", which means that they offer their clients a "buy" price and a "sell" price. Institutional investors are the second biggest players. They include investment and insurance companies, pension funds and hedge funds. They participate in forex trading in order to cover their stock, bond and currency portfolios and they represent 30% of all foreign exchange transactions. Central banks intervene to manage their stock of currency and state money. Their transactions represent 5% to 10% of all forex trading volume. The central banks can also intervene in order to defend their respective currencies and to adjust economic or financial inbalances. Brokers allow private individuals to access the forex market by transmitting their clients' orders to commercial banks or to trading platforms. They get paid from the spread or by charging a commission on each transaction. Multinational companies participate in forex trading in order to convert their money during import or export activities. Their transactions represent approximately 5% of all global forex transactions. Some companies even have their own trading floors, with traders speculating in order to make profits and to reduce the risks related to exchange rate fluctuations. Private investors/individuals have recently been trading the forex market as well, thanks to the internet, which allows them to have real-time access to currency exchange rates. Today, their transaction volume adds up to over 5% of all forex transactions. Please, like this post and subscribe to our tradingview page!👍
OANDA:BTCUSDEducation
by EliteTradingSignals
6
Trading Success Through Journaling: Reflect, Learn & GrowHello traders, today we will talk about how journaling can be a really helpful tool for you in your trading journey. Journaling is a simple yet powerful tool that can help you gain insight into your mental and emotional state, identify patterns and triggers, and make more informed decisions. In this post, we'll explore how you can use journaling to improve your trading performance. 1. Reflect on your emotions: After each trade, take a moment to journal about your emotions during and after the trade. This can help you identify patterns in your emotional responses and provide insight into how certain emotions may affect your trading decisions. 2. Identify triggers: By journaling about specific events that preceded a trade, you can identify the triggers that lead to your emotional responses. This can help you take steps to manage your emotions before they affect your trading decisions. 3. Evaluate your decision-making: After each trade, take a moment to journal about the decision-making process you used. This can help you identify any biases or patterns in your decision-making that may be affecting your trading results. 4. Set goals and track progress: Use journaling to set goals for your trading and track your progress over time. This can help you stay motivated and focused on your long-term goals. 5. Increase self-awareness: Journaling can help you become more self-aware of your thoughts, feelings, and behaviors. This can help you identify any negative thought patterns and work to change them, which can lead to improved trading performance. To make the most of journaling, you should be honest with yourself and write down what you truly feel and think. Journaling is a powerful tool for reflection, learning and making adjustments for the future. It's important to note that journaling is not a standalone strategy, but rather it's a tool that can be used in conjunction with other analysis and indicators to inform trading decisions. Also, you don't need any specific equipment, just a pen and a notebook, and you can journal at any time. In conclusion, journaling can be a powerful tool for traders looking to improve their performance and manage stress. By gaining insight into their mental and emotional state, traders can make more informed decisions and improve their overall trading results. Give it a try and see how it can help you in your trading journey. I would love to hear about your own experiences with journaling in trading. Please feel free to share your thoughts, feedback, and tips in the comments section below. Your input and feedback is valuable to me and to the trading community!
Editors' picks
Education
by m_maia14
40
25 Trading Rules for Guaranteed Success!Hi traders! Before we dive into the 25 trading rules that can lead you to success, let's take a moment to reflect on this three things that are key to successful trading: First, there's " content. " This is all the information that traders use to make decisions, both from the market and from their own gut. It's really important to have access to reliable and up-to-date info, so you can avoid making costly mistakes. The second thing is " mechanics. " This is all about how you actually trade: the tools you use, the strategies you employ, and so on. It's crucial to master these mechanics before you can hope to make any money. Finally, there's " discipline. " This might be the most important of all. You need to be disciplined in your approach to trading, making smart decisions every time and sticking to your plan. It can be tough, but it's absolutely essential for long-term success. To help with this, you might consider reviewing a set of trading discipline rules every day to keep you on track. To improve your trading discipline, it's important to consistently reinforce good habits. Consider reviewing these 25 rules of trading discipline daily before beginning your trading session. It only takes three minutes, and it can help remind you how to conduct yourself throughout the day. Think of it as a helpful routine, like saying a prayer or setting intentions for the day ahead. #1 - DISCIPLINE PAYS OFF: MAXIMIZING PROFITS IN THE MARKET When it comes to trading, being disciplined pays off. If you can maintain discipline, you're more likely to make profits and avoid losses. The market rewards traders who can stay focused and make rational decisions. Remember, discipline equals increased profits. #2 - STAY DISCIPLINED EVERY DAY AND THE MARKET WILL REWARD YOU, BUT DON'T CLAIM TO BE DISCIPLINED IF YOU ARE NOT 100% OF THE TIME. It's crucial to be disciplined in trading, but it's not a part-time commitment, like saying you quit smoking but still sneaking a cigarette. If you're only disciplined in nine out of ten trades, you can't consider yourself a disciplined trader. It's the one undisciplined trade that can seriously harm your overall performance. Discipline must be practiced in every trade, every day, and only then will the market reward you. #3 - ADJUST YOUR TRADE SIZE WHEN TRADING POORLY Many successful traders abide by this rule. Instead of continuing to lose money on multiple contracts per trade, why not lower your trade size to just one contract on the next trade and save yourself some cash? Personally, I lower my trade size to one contract after two consecutive losing trades. Once I have two profitable trades, I increase my trade size back to its original amount. Think of it like a baseball player who has struck out twice. The next time at bat, he adjusts his grip on the bat and shortens his swing to make contact. Similarly, in trading, adjusting your trade size and aiming for just a small profit or a break-even trade can help turn your losing streak around. Once you've got two consecutive winning trades under your belt, you can increase your trade size again. #4 - NEVER TURN A WINNER TRADE INTO A LOSER ONE We've all been tempted to break this rule before, but we should aim to avoid it in the future. The root of the problem is greed. The market moved in our favor and gave us a profit, but we weren't satisfied with a small gain. Instead, we held onto the trade hoping for a bigger profit, only to watch the market turn against us. We hesitated and the trade turned into a significant loss. There's no need to be greedy. It's just one trade. You'll have many more opportunities throughout the day and in future trading sessions. The market always offers opportunities. Remember that one trade shouldn't make or break your performance for the day. Don't let greed ruin your trades. #5 - DON'T LET YOUR BIGGEST LOSS EXCEED YOUR BIGGEST WIN It's a good idea to keep track of all your trades during a session. By doing so, you'll have a better understanding of your performance and be able to make better decisions. Let's say your biggest win so far in the day is 30 Pips on EUR/USD. If you have a losing trade, make sure it doesn't exceed those 30 Pips. If you let a loss go beyond your biggest win, then when you calculate your total gains and losses, you'll end up with a net loss. That's definitely not what you want, so be careful and stick to your plan. #6 - DEVELOP A CONSISTENT METHODOLOGY AND STICK TO IT: AVOID CHANGING STRATEGIES DAILY To be a successful trader, it's important to have a solid game plan. This means writing down the specific market setups or prerequisites that need to happen for you to enter a trade. Your methodology doesn't have to be anything fancy, but you should have a clear set of rules or price action that you follow in order to make trades. If you're using a proven methodology and it doesn't seem to be working in a particular trading session, don't try to come up with a completely new strategy overnight. Instead, stick with what works and has been successful for you in at least half of your trading sessions. Having a consistent methodology will help you make more informed and confident trading decisions. #7 - BE YOURSELF. DON’T TRY TO BE SOMEONE ELSE. In trading, it's important to be yourself and not try to be someone else. It can be tempting to try and emulate successful traders or follow their strategies, but ultimately, you need to find what works for you. Everyone has their own unique personality, risk tolerance, and trading style. Embrace your strengths and weaknesses and develop your own approach. Don't compare yourself to others or try to be someone you're not. The most successful traders are those who stay true to themselves and their own strategies. Remember, you are the only one who knows what's best for you and your trading journey. #8 - ALWAYS PRESERVE YOUR CAPITAL: PROTECT YOUR ABILITY TO TRADE ANOTHER DAY Always prioritize protecting your capital in trading. It's important to never risk more than you can afford to lose, as the consequences can be devastating. One of the worst feelings in trading is not being able to continue because your account equity has dipped too low. To avoid this, I suggest setting a daily loss limit that you stick to, such as $500. If you hit that limit, it's time to turn off your computer and call it a day. Remember, you can always come back tomorrow with a fresh mindset and a new opportunity to trade. #9 - EARN THE RIGHT TO TRADE WITH BIGGER SIZE To earn the right to trade with bigger size, it's important to prove that you can consistently generate profits with smaller trades. Traders who rush into larger trades without sufficient experience and success are putting themselves at risk of significant losses. By demonstrating discipline, patience, and a solid track record of profitable trades, traders can gradually increase their position size and take on more risk as their skills and confidence grow. Remember, trading with bigger size is a privilege that must be earned through diligent practice, hard work, and a commitment to continuous improvement. #10 - HOW TO CUT YOUR LOSSES IN TRADING It's important to remember that having a losing trade doesn't make you a "loser." However, if you don't exit the trade once you realize it's not working out, then you're not making smart decisions as a trader. Trust your gut - if you have a feeling the trade is no good, it probably isn't. It's better to exit the trade and cut your losses rather than risk losing even more money. Every trader experiences losing trades throughout the day, including myself. On average, I have about one-third of my trades as losers, one-third as break-even trades, and one-third as winners. But the key is to exit losing trades quickly so they don't end up costing you too much. By doing this, even though I have more losing and break-even trades than winners, I still end up going home with a profit. #11 - THE BENEFITS OF TAKING A SMALL LOSS EARLY IN TRADING Sometimes traders in the pit will joke around and say things like "You're not a loser until you get out" or "Not to worry, it'll come back." But in reality, these phrases are just affirmations that it's time to exit a trade when it's not working out. Once you recognize that a trade is no good, the best thing to do is to exit immediately. Don't wait and hope that it will turn around. It's never a good idea to let losses pile up - cutting your losses early is a smart move that can help protect your capital and keep you in the game for the long run. #12 - WHY HOPING AND PRAYING IN TRADING IS NOT A WINNING STRATEGY As a new and undisciplined trader, I used to pray to the "Bond god" whenever I found myself in a tough trade position. I hoped for some sort of divine intervention to save me, but it never came. I eventually learned that praying to any "futures god" was a waste of time. The best thing to do is to just get out of a bad trade and cut your losses. Trusting in your own trading plan and strategy is much more effective than relying on luck or divine intervention. #13 - WHY TRADERS SHOULDN'T WORRY TOO MUCH ABOUT NEWS IN THE MARKET. IT'S JUST HISTORY... As a trader, it can be tempting to constantly monitor news and events in the market. However, it's important to remember that news is just history. By the time it reaches the public, it has already been factored into the price of assets. So, worrying too much about news can actually be detrimental to your trading strategy. While it's important to be aware of major news events, such as economic reports or geopolitical developments, it's not necessary to react to every piece of news that comes out. Instead, focus on developing a solid trading plan based on technical analysis and risk management strategies. Stick to your plan and don't let emotions or external events dictate your trades. Ultimately, successful trading is about making informed decisions based on market data, not reacting impulsively to the latest news headline. So, don't worry too much about news in the market. Remember that it's just history, and focus on developing a disciplined and informed trading approach. #14 - DON'T SPECULATE , IF YOU DO, YOU WILL LOOSE Speculating in the financial markets can be tempting, especially when you see others making big profits. However, it's important to remember that speculation is risky and can often lead to losses. When you speculate, you are essentially making a bet on the future direction of a particular asset or market, without having a clear understanding of the underlying fundamentals. The problem with speculation is that it's based on assumptions and predictions, which are often influenced by emotions and biased opinions. This can lead to overconfidence and a false sense of security, which can quickly evaporate when the market turns against you. Instead of speculating, it's important to focus on sound trading principles such as risk management, discipline, and a solid trading plan. By following these principles, you can reduce your exposure to risk and increase your chances of success in the long run. So, if you want to avoid losses and build a sustainable trading career, avoid the temptation to speculate and focus on the fundamentals. #15 - EMBRACE LOSING TRADES: LOVE TO CUT YOUR LOSSES "What do you mean by love to lose money? Are you crazy?" Well, no, I'm not crazy. What I mean is that you should accept the fact that losing trades are part of the game in trading. The key is to get out of your losing trades quickly and love doing it. By doing so, you can save a lot of your trading capital and become a better trader in the long run. So, don't be afraid of losing, embrace it and learn from it. #16 - WHEN TO EXIT A TRADE: SIGNS IT'S NOT GOING ANYWHERE Have you ever noticed when the market is just not moving? It's like everyone is content with the current prices, and no one is really interested in buying or selling. Well, when this happens, it's time to take a step back and wait for the market to heat up again. There's no point in wasting your time, energy, and money in a stagnant market. It's better to wait for the right opportunity to place your trades and make some profit. Trust me, it'll be worth the wait. #17 - BIG LOSSES: THE DAY KILLER When you suffer big losses, they can ruin an entire day's worth of hard work in achieving small wins. Not only that, but they can also take a toll on your psyche and emotions, leaving you feeling defeated and demoralized. It can take a significant amount of time to regain the confidence that you once had before the big loss. It's important to keep this in mind and manage your risk appropriately to avoid such setbacks. #18 - THE POWER OF CONSISTENCY IN TRADING: DIGGING YOUR WAY TO SUCCESS Consistency is key when it comes to successful trading. Making a little bit every day and consistently digging your way towards success is much more effective than taking big risks and filling in your progress with losses. By focusing on consistency, traders can build a solid foundation for long-term success in the market. It takes discipline, patience, and a willingness to stick to a well-defined strategy, but the rewards can be significant. So dig your ditches and don't fill them in, and with time and effort, you'll see the power of consistency in action. #19 - CONSISTENCY BUILDS CONFIDENCE AND CONTROL And Again...Consistency is a key component in achieving success in any area of life, including trading. When you consistently follow a trading plan, execute your trades with discipline, and manage your risk effectively, you build confidence in your abilities and gain control over your emotions. This confidence and control can help you navigate the ups and downs of the market with a clear head, and ultimately lead to greater success in your trading endeavors. #20 - LEARN TO SCALE OUT YOUR WINNERS Scaling out winners means taking partial profits on a winning trade instead of closing the entire position at once. This approach helps traders lock in profits and reduce risk by allowing them to ride the remaining portion of the trade with less pressure. Learning to scale out your winners requires discipline and a solid understanding of your trading plan, but it can be an effective strategy for maximizing gains while minimizing losses. #21 - MAKE THE SAME TRADES OVER AND OVER AGAIN Making the same trades repeatedly might seem boring, but it's an essential strategy for successful trading. By mastering a few reliable setups, you can gain a deeper understanding of the market and become more confident in your decision-making. Remember, consistency is key, and repetition is the foundation of mastery. #22 - DON'T ANALYZE, PROCRASTINATE OR HESITATE Over-analyzing, procrastinating, and hesitating are common pitfalls that many traders fall into. However, these behaviors can lead to missed opportunities and ultimately, losses. It's important to have a clear plan and execute it without hesitation. Don't let analysis paralysis get in the way of taking action in the market. Remember, in trading, time is money, and every second counts. #23 - STARTING AT ZERO: THE BEHAVIORAL KEYS TO TRADING SUCCESS Every trading day is a fresh start for everyone, with each of us beginning at the same level playing field. But as soon as the market opens, it's our actions and mindset that determine our success or failure. Adhering to the 25 Rules can lead to profitability, while neglecting them can result in poor performance. So, it's up to us to approach each trading day with discipline and focus to achieve the desired outcome. #24 - THE MARKET: THE ULTIMATE JUDGE The market is the ultimate judge and jury in the world of trading. No matter how good a trader you think you are, it is the market itself that determines your success or failure. Respect the power of the market and learn to adapt your strategies accordingly. #25 - STICK TO YOUR PLAN: THE FINAL RULE OF TRADING The last and most important rule in trading is to repeat your trading process every day and focus solely on your own trading plan. Avoid following others' ideas and stick to your own strategy. Consistency is key, and by repeating your process every day, you will build discipline and increase your chances of success in the market. Thanks
PEPPERSTONE:XAUUSDEducation
by FOREXN1
12
Why do most traders end up losing moneyThis question is quite scary, but if you are a novice and see this question, congratulations, you are on the right path of trading. The most important lesson to learn before entering the financial markets is risk expectation. You can ask yourself, how much money do you want to make from trading? Is your goal asset appreciation, or a small fortune? If a trade loses money, will it affect your own life? Is your own character able to stop losses in time, or do you have no self-control? After asking these questions, we decide whether to enter the financial market. So why do the vast majority of traders lose money? 1. Because of the particularity of the financial market. I believe that many friends have heard of the 28 rule. For example, in the distribution of wealth in our society, 20% of people control 80% of social wealth; 20% of people will persist in encountering difficulties, and 80% of people will give up when encountering difficulties. The rule of 28 is ubiquitous in life, and it also determines what kind of people will succeed and what kind of people will fail. As for the financial market, it is crueler than real life, because there are no rules in this market, only human nature, so the financial market even surpasses the rule of 28, and less than 10% of people may make profits. In the face of money, most people want to make a big fortune with a small amount, and want to turn around by trading, so those who have stable personalities, strong self-control, low income expectations, and money in their hands are silently harvesting these people who are eager for quick success. Some people may say that the world is inherently unfair, and those who hold funds can only survive because of the capital. Actually no. We Xiaosan hold small funds, and we can achieve low return expectations, or we can do it slowly, but how many people are just anxious to make money? Just want to make a big difference with a small one? Just don’t regard money as money, and think it’s a big deal to take a gamble, and if it’s gone, it’s gone? So it has nothing to do with the amount of capital, but has something to do with people. In financial markets, human nature is the rule. 2. Too many people are dominated by human nature. As I said before, there are no rules in the financial market, and human nature is the rule. Trading is a very anti-human thing. Human nature is greedy for comfort, averse to risk, afraid of losing, feeling that one's level is higher than others, hating giving and learning, impatient, etc., which will be infinitely magnified in trading. There is a saying in the trading industry that trading can be profitable, mentality accounts for 70%, and technology accounts for 30%. In actual combat, it seems that it is not difficult for traders to see the market correctly, but it is very difficult to complete this wave of market and make profits. Why? I give two examples. For example, the problem of stop loss in trading. Seeking advantages and avoiding disadvantages is a characteristic of human nature, unwillingness to lose, unwilling to accept losses, this is human self-protection awareness. Stopping losses in the wrong direction means losing our real money, who can bear it? So in actual combat, many people rationally know that the direction is wrong, but they just don't stop losses, and even increase their positions against the trend, floating orders, allowing the stop loss to become bigger and bigger, and finally lead to serious losses. Another example is the profitable position in the transaction. The market trend always fluctuates upwards, or fluctuates downwards, and profit taking in positions is often encountered. Once profits are withdrawn, we will have a sense of insecurity in our hearts, worrying about the reversal of the market and losing profits. This insecurity is also due to human nature. Even if we rationally know that the profit target has not yet been reached, we should continue to hold positions, but the little emotion of longing for peace of mind has been tormenting us, and in the end we couldn't help but close the position, and made a lot of less money. We comfort ourselves that it is all right, at least there is no loss. But in fact, less earning = loss, because the amount you lose next time will be greater than the money you earn. In the long run, your overall loss will be. There are many such examples, such as betting on the market, heavy trading, unwillingness to admit defeat, stop loss leading to liquidation, etc., are all caused by the aversion to loss in human nature and the fear of failure. In fact, if we look at the trading market 100 years ago, it is basically the same as the current human nature problem. The weakness of human nature is very strong, and it is also the main reason why traders lose money. So at the beginning, I asked everyone to ask themselves those questions, just to let everyone understand their own personality, their current situation, and their human nature, so as to help you win certain opportunities in the trading market. Trading is like a free game. It seems that the threshold is low and no money is required, but in fact some hidden costs are contained in it, and the human nature is clearly played for you. Therefore, before making a transaction, you must have an existing risk expectation, and then think about making money.
FOREXCOM:XAUUSDEducation
by CheetahAttack
Fibonacci Trick for measuring Risk to Reward RatioIf you don't use your fibb tool much, (save your settings as a template first if you do) or for just a quick check to see if there is enough reward for the risk in the trade, you can set up your Fibonacci in increments of 1 (2.5 is 1:1.5) Do this as far as you like. You can extend lines left or right to check if the R Ratio you are looking for will fit this market structure, or if you should wait for a better set up. I happen to see this in a YouTube video, and thought it was very interesting and more than useful... The settings are as follows : 0 - loss/stop loss price 1 - 1 unit of risk (100 percent) 2 - 1 unit of risk plus 1 unit of reward (1:1) 2.5 - 1 unit of risk, 1.5 unit reward (1:1.5) 3 - 1 unit of risk, 2 unit reward (1:2) ..... and so on. Then just save it as a template for quick set up later -- Example of use 6 (600 percent) is 1:5. Just subtract 1 for the risk and the remaining is the reward ratio. Each 100 percent mark is a single unit of risk (-1) In MT4 its much better to see it directly, as you can label the levels how you wish (using the same formula)
Education
by ForexStoryteller
1
Understanding Anchoring Bias in Trading Anchoring is a heuristic in behavioral finance that describes the subconscious use of irrelevant information, such as the purchase price of a security, as a fixed reference point (or anchor) for making subsequent decisions about that security. Thus, people are more likely to estimate the value of the same item higher if the suggested sticker price is $100 than if it is $50. Anchoring is a cognitive bias in which the use of an arbitrary benchmark such as a purchase price or sticker price carries a disproportionately high weight in one's decision-making process. The concept is part of the field of behavioral finance, which studies how emotions and other extraneous factors influence economic choices. An anchoring bias can cause a financial market participant, such as a financial analyst or investor, to make an incorrect financial decision, such as buying an overvalued investment or selling an undervalued investment. Anchoring bias can be present anywhere in the financial decision-making process, from key forecast inputs, such as sales volumes and commodity prices, to final output like cash flow and security prices. Historical values, such as acquisition prices or high-water marks, are common anchors. This holds for values necessary to accomplish a certain objective, such as achieving a target return or generating a particular amount of net proceeds. These values are unrelated to market pricing and cause market participants to reject rational decisions. Beware of your mental fallacies. They are your main enemy in trading. 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?
BITSTAMP:BTCUSDEducation
by SignalProvider
6
AI and Algorithmic Trading #1AI and Algorithmic Trading #1 - Introduction to AI and Algorithmic Trading In recent years, algorithmic trading has become increasingly popular in the world of finance. Algorithmic trading refers to the use of computer programs to automate the trading process, including the analysis of market data, the identification of trading opportunities, and the execution of trades. As algorithmic trading has become more prevalent, artificial intelligence (AI) has emerged as a key tool for traders looking to gain a competitive advantage in the market. In this article, we'll provide an overview of AI and its role in algorithmic trading. What is Algorithmic Trading? Before we dive into AI, let's first define algorithmic trading. Algorithmic trading, also known as automated trading or algo trading, is a method of executing trades using computer programs. These programs can analyze market data, identify trading opportunities, and execute trades at a speed and efficiency that is impossible for human traders. Algorithmic trading can be used for a variety of trading strategies, including high-frequency trading, statistical arbitrage, and trend following. What is AI? Artificial intelligence refers to the ability of machines to perform tasks that would typically require human intelligence. AI can be divided into several categories, including machine learning, natural language processing, and pattern recognition. Machine learning is a type of AI that involves training algorithms to learn from data, enabling them to make predictions or decisions without being explicitly programmed. Natural language processing involves teaching machines to understand and interpret human language, while pattern recognition involves identifying patterns in data. Benefits of AI in Algorithmic Trading One of the key benefits of using AI in algorithmic trading is the ability to make faster and more accurate trading decisions. AI algorithms can analyze vast amounts of market data in real-time, identifying trading opportunities and executing trades with a speed and efficiency that is impossible for human traders. Additionally, AI algorithms can learn from their mistakes and adjust their strategies accordingly, leading to more consistent and profitable trading outcomes. Challenges of AI in Algorithmic Trading While the benefits of AI in algorithmic trading are significant, there are also potential challenges associated with this technology. One of the main challenges is the need for high-quality data. AI algorithms rely on large datasets to learn from, and if the data is incomplete or inaccurate, the algorithms may produce flawed results. Additionally, AI algorithms may be subject to biases, both in the data they are trained on and in their decision-making processes. Finally, there are ethical considerations around the use of AI in trading, particularly around the potential for AI to exacerbate market volatility or contribute to systemic risk. The Future of AI in Algorithmic Trading Despite these challenges, it is clear that AI will continue to play an important role in algorithmic trading in the years to come. As the technology continues to develop, we can expect to see even more sophisticated AI algorithms being used to analyze market data, identify trading opportunities, and execute trades. Additionally, we may see new applications of AI in areas such as risk management and portfolio optimization. Conclusion In conclusion, AI is an increasingly important tool for traders looking to gain a competitive advantage in the world of algorithmic trading. By using AI algorithms to analyze market data and make trading decisions, traders can operate with a speed and efficiency that is impossible for human traders. However, there are also potential challenges associated with using AI in trading, including the need for high-quality data and ethical considerations. As the technology continues to develop, we can expect to see even more sophisticated applications of AI in the world of algorithmic trading.
BITSTAMP:BTCUSDEducation
by JS_TechTrading
8 Trading Tips to Help You Increase Your Trading Profits Whether you are just getting started or you’ve been on your journey for a while now, you’ve probably discovered that day trading is not easy. You’re putting your hard-earned money on the line and facing new challenges daily. That said, every challenge you conquer takes you one step closer to your ultimate goal. Small behavioral changes can have profound impacts. Your goal is to minimize losses and maximize profits in order to increase your net profitability. Here are some tips: 1. Avoid Overtrading Traders are ambitious, sometimes too much so. Many traders feel the need to always be doing something. It’s important to remember that trading requires patience, and the quality of your trades is far more important than the quantity. 2. Avoid Under-trading Do you ever find a great trade setup that you don’t take action on, only to look back later and realize your idea was spot on? 3. Take Control of Your Losses As traders, we’re always focused on profits. After all, the main goal of trading is to turn money into more money. It’s easy to get carried away and forget about the very real potential for losses. In reality, limiting losses has the same net effect as increasing profits. 4. Simplify Your Approach There is an incredible amount of data available to traders in this digital millennium. This data is intended to improve our decision-making abilities, however it can also be overwhelming. 5. Trade Robotically As you begin to simplify your approach to trading, you can focus on making your strategy more robotic. The goal is to take all emotions out of trading so you can take a systematic approach to your trading. 6. Learn Your Strengths and Weaknesses Becoming a successful trader requires introspection, self-analysis, and evolution. Simply put, you need to analyze your own behavior and look for areas of improvement. 7. Double Down on What’s Working Learn to double down on areas of strength. Focus your efforts to trading activity that yields the highest rewards. 8. Don’t be Afraid to Go Back to Square One If you find yourself in a rut, don’t hesitate to go back to basics. In the trading world, a simple piece of advice can be a game changer. We’ve all heard quotes, lessons, or tips that have elevated our trading to new levels. What’s the best trading tip you’ve ever received? What do you want to learn in the next post?
TVC:GOLDEducation
by UnitedSignals
10
Learn The Most Accurate Price Action Pattern Hey traders, We must admit that it is phenomenally difficult to become a consistently profitable trader. This journey requires years of practicing and training, constant losses, and nervous breakdowns. If you are a struggling trader, if you are still looking for your way to succeed in this game, here is the formula that will help you to chase consistent profits. 💰Consistent profits = 📝Trading Strategy + 🤬Emotions + 📈Market Sentiment Let's discuss each element separately. 📝Trading Strategy: To be in profit in a long run requires an understanding of what do you actually trade. You must have strict and objective entry conditions. You must rely on the objective & verifiable rules for the execution of market analysis. You must have a plan to follow. A plan that is backtested and proved its efficiency. 🤬Emotions: Even the best trading plan, the most accurate trading strategy can be easily beaten by emotions. Emotional decisions such as revenge trading and early position close can easily blow the account of any size in a blink of an eye. The most disappointing thing to note right here is the fact that you can be taught how to execute technical analysis but you can not be taught to control your emotions. Your main enemy here is yourself and being in a constant battle with your greed and fear it is very easy to go broke. Only by being humble, disciplined and patient, you can successfully apply a trading strategy. 📈Market Sentiment: Mastering your emotions and having studied a trading strategy, it looks like it is finally the time to make money. However, occasionally the market tends to be irrational. Being chaotic and unpredictable, sometimes the market neglects every technical and fundamental rule. Crisis, euphoria: the reasons can be different. The fact is that such things happen. And it is your duty to learn to deal with unfavorable market conditions. 💰To become a consistently profitable trader, you must become the master of these three elements. Only then the doors to freedom and independence will be opened to you. Let me know, traders, what do you want to learn in the next educational post?
OANDA:XAUUSDEducation
by VasilyTrader
10
Navigating the Uncertainties of Fibonacci Retracements in CryptoHello, @TradingView community! I'm @Vestinda, and I'm thrilled to share an informative article with you today about Fibonacci Retracements. While they can be useful tools for traders and investors in financial markets, it's important to note that they are not infallible and may not always produce the desired outcomes. As discussed in our previous post, Fibonacci support and resistance levels are not infallible and may occasionally break. It is essential to remain vigilant and use these levels in conjunction with other technical indicators and market analysis to make informed trading decisions. While Fibonacci retracements can be a useful tool in technical analysis, it is crucial to exercise caution and not solely rely on them as the sole basis for trading decisions. Unfortunately, Fibonacci retracements are not infallible and may not always work as expected. Let us examine a scenario where the Fibonacci retracement tool proves to be ineffective in technical analysis. To make a prudent trading decision amidst the ongoing downtrend of the pair, you make a strategic choice to leverage the Fibonacci retracement tool. With meticulous attention to detail, you designate the swing low at 3,882 and the swing high at 10,482 for precise determination of a Fibonacci retracement entry point. The BTC/USD Daily chart is shown below. Upon careful analysis, it is evident that the pair has rebounded from the 50.0% Fibonacci retracement level for multiple candles. As an astute trader, you recognize this crucial pattern and conclude that it is a viable opportunity to enter a short position. You thoughtfully consider, "This particular Fibonacci retracement level is showing remarkable resilience. It is undoubtedly a lucrative moment to short it." You may have been tempted to take a short position in anticipation of profiting from the downtrend of the pair, while simultaneously daydreaming of cruising down Rodeo Drive in a Maserati. However, if you had placed an order at that level without proper risk management, your hopes of profit would have quickly dissipated as your account balance plummeted. Observing the price action of BTC, let's examine what occurred next. Indeed, the price action of BTC demonstrates that the market is constantly evolving, and traders must be prepared to adapt to these changes. As shown in this specific case, the price not only climbed close to the Swing High level, but the Swing Low marked the bottom of the previous downtrend. This serves as a prime example of the significance of flexibility in the dynamic realm of cryptocurrency trading. What can we learn from this? In the world of cryptocurrency trading, Fibonacci retracement levels can be a useful tool to increase your chances of success. However, it's important to understand that they are not foolproof and may not always work as intended. It's possible that the price may reach levels of 50.0% or 61.8% before reversing, or that the market may surge past all Fibonacci levels. Additionally, the choice of Swing Low and Swing High to use can also be a source of confusion for traders, as everyone has their own biases, chart preferences, and timeframes. In uncertain market conditions, there is no one correct course of action, and utilizing the Fibonacci retracement tool can sometimes feel like a guessing game. To improve your chances of success, it's crucial to develop your skills and use Fibonacci retracements in conjunction with other tools in your trading toolkit. Thank you for taking the time to read our post. We sincerely appreciate your attention and hope that you found it informative and helpful. If you did, we kindly request that you show your support by clicking the "Boost" button and subscribing to our page. Your support helps us create more valuable content for our community.
INDEX:BTCUSDEducation
by Vestinda
Targets Matter TooIt may not seem like it is very critical, but let's use two traders as an example. Trader #1 on the left uses targets. They know the move may be way bigger than what they target, but every time they close a position, they can re-enter again, keeping a small risk for consistent reward. Trader #2 on the right wants a home run every trade, and they do not use targets. They know big moves happen and they want it (greed) If they risk small, evetually they will get the home run trade, but at what cost? Trader #1 had a great day. They took 7 trades and lost two. Final results +135 points (150 won from 5 x 30, -15 from 2 lost) They had a consistent hit rate, closed several winners, and never had to stress about the charts because their move was over in a few minutes. No grey hairs today. Trader #2 however sees how trader #1 does things, and thinks, "that's no good. All those tiny trades and short targets, they could just make one trade and make HUGE! that's what I'll do...." They see a possible entry, and it works. Price gets jumpy and they get excited "This just has to go forever! I'm rich! Beat that other trader!" They have to go to sleep eventually and let the trade run. When they wake in the morning, they find they were stopped out. How? It left with so much momentum there's no way it would come back! :( Now trader 2 wakes up to a bad trade, which makes the rest of the day terrible. Why couldn't they catch that and close it? It's ok, I'll try again. Set another trade, watch for hours, walk away and same result. Constantly getting stressed and worrying about the stop being hit, because they don't have a target that makes sense. Maybe they do put targets in eventually, but then the "This is a home run!" sets in, and they remove the target, because hey, one trade for 300 pips is better than 10 for 30, it's just logical, right? Stop hit after stop hit, and eventually, the account goes kaput. Had trader#2 copied the target mentality, And set even a slightly beyond reason target, they still have more chance of success than the "Home run hunter" Yes, the 100 r trade is awesome, I'd like to have one. The only problem with hunting that massive winner is it will cost you a lot more than just some money. It will cost you time, stress, sanity, and make your head grey before it's time. So is the home run really worth this? I'll leave that decision to the individual, but numbers don't lie. The trader with targets is doing well. They can even raise their lot sizes with confidence, and know that when they lose 4 times, it's a bad day (Because of R:R) and stop to keep the account healthy. The trader without a target just keeps losing trades, deals with constant excitement and doubt, can't leave the charts, and can never be confident enough to trade beyond a minimum size, because they have been stopped out so many times, what if they take the risk and it (likely) fails, like all the other trades..... And they never grow the account, even if they do all the other things right. They may get profitable, but they won't ever grow exponentially, because the confidence will never agree with the trade, and they won't be able to hold it long enough to be worth it. Targets are where consistency comes from. This is especially true about scalping. DON'T BE GREEDY! Set a target and take the money. Stop letting a fast candle delete your target. Often times, price will run, you remove the target, and u-turn right to the stop loss (probably reaching the target you had). Don't delete a winner and get knocked out by a stop run over volatility. They also can not get a solid statistic for trades, and never gain the certainty in putting the risk on the line. Trader #1 can do whatever they want. They know how often they win, how well the system they use works, and they know about what to expect for a return on a good day, so they can trade any amount and let it run to the target without panic. They know out of 10 trades, they lose 4 times. Because of the R ratio, If they use the same value for the lot stops, they will make money no matter the trades play out..... Comfortable, no greed, certain, and highly profitable to a point of exponential account growth. That's how they do it.... So, pick a R ratio, 1:2-3-4. Use it consistently, and then tally the results. After some practice, you can find a good ratio that works for your trading style. The larger the ratio, the less you will win. The math is on your side though, because 1:3 only needs to win 4 out of 10 times to make money... Pick one that fits your strategy/style/level of patience, and you may find a big difference in your trading consistency. Consistency is what really makes or breaks an account. Consistently hit targets, account will grow. Consistently enter, wait days, and stop out will surely ruin the account over time. Stop the account demise with targets, and ALWAYS have a target if you find yourself breakeven or stopped out often.
Education
by ForexStoryteller
6 ways to stop loss in gold Take profit and stop loss are one of the most important links in the entire trading system. After studying this article, you will be able to thoroughly understand the stop loss method. You can bookmark it before reading it. If you feel that you have gained something, you can like it, thank you. 1. 6 stop loss methods Stop loss means that when our order loss reaches a predetermined value, we need to close the position in time to avoid greater losses. In a complete trading system, stop loss Stop loss is divided into static stop loss and dynamic stop loss. Static stop loss means that after the order enters the market, the stop loss is set at a fixed stop loss space, or the stop loss amount remains unchanged. Once the market trend is unfavorable, the stop loss will be closed when the set position is reached. For example, after an order enters the market, set a stop loss of 100 points, and close the position when 100 points arrive. Dynamic stop loss means that the standard of stop loss in the trading system is dynamic. When we hold a position, the market is constantly fluctuating, and there is no fixed point for when to stop the loss. We must observe the dynamic market changes until there is a trend that meets the stop loss standard, and then stop the order. For example, when holding long orders, the stop loss standard is that the market forms a short reverse break position structure, and we will stop the loss manually at this time. Method 1: Fixed stop loss space, or fixed stop loss amount. This is a relatively simple static stop loss method. After the order enters the market, set a fixed stop loss space, for example, after an intraday trading order enters the market, set a fixed 30-point stop loss. Or set a fixed amount stop loss, for example, if the order loss reaches 1% of the principal, the stop loss will be stopped. There are also traders in the stock market who stop loss at a fixed percentage of market retracement, for example, stop loss if the stock falls by 5%. In this way of stop loss, the space for stop loss should be determined according to the specific volatility of different varieties.is absolutely necessary, and a trading strategy without stop loss will eventually end in loss. Method 2: Stop loss at high and low points. High and low point stop loss is the most common stop loss technical standard, and it is also a static stop loss method. The market always operates in the form of waves, so there will be continuous rising or falling callback highs and lows. These highs and lows are also called inflection points. In actual combat, the starting point of the wave or the inflection point of the callback is used as the stop loss point. After the bottom of the market breaks, open a position. There are two ways to use stop loss at high and low points. One is to place it at the inflection point, and the other is to place it at the starting point of the wave. The inflection point stop loss, the stop loss space is small, the profit and loss ratio is good, but the fault tolerance rate is low, and it is more aggressive. Stop loss at the starting point of the market, the space for stop loss is large, and the profit-loss ratio is worse, but the fault tolerance rate is high and more conservative. This stop loss method is also relatively flexible, as the volatility changes, the stop loss space will also be adjusted. Method 3: Combine technical stop loss. Stop loss combined with technical positions refers to the combination of key positions of technical indicators in actual combat, and stop loss when the market breaks through these technical positions. For example, important support and pressure levels, or technical moving average levels, etc. Method 4: Stop loss in trend reversal pattern. This is a dynamic stop loss method. After the order enters the market, the market goes out of a reverse structure or form. At this time, it can be understood that the trend has reversed and the order is stopped. In actual combat, you can combine your most commonly used criteria for confirming reversals. You can use the crossing of moving averages, or the breakout of trend lines and channel lines, etc., as long as the standards are consistent. Method 5: Stop losses in batches. In an order, set multiple stop loss standards, and stop losses in batches in proportion to different stop loss points. This is a compromise stop loss method. Set different stop loss points through different stop loss standards to disperse the risk of stop loss. In actual combat, it is often encountered that after the order stop loss, the market reverses and goes out of the original trend. At this time, because the order has stopped loss, it is very disadvantageous. The operation of batch stop loss can keep a part of the position when encountering this situation, and can continue to make profits after the market goes out of the direction again. Method 6: Moving stop loss. Trailing stop loss means that after the order enters the market, the market develops in a favorable direction. After leaving the entry point and gradually generating profits, the stop loss is adjusted from the original stop loss point to a more favorable direction. The market gradually develops and the stop loss Also adjust gradually. Moving stop loss is a bit like the left and right feet when climbing stairs. When your right foot goes up the steps, your left foot will follow. Every time the profit increases to a certain extent, the stop loss will follow. The first purpose of trailing stop loss is to preserve capital, so most of the time the first step of trailing stop loss is to move the stop loss to the cost price. In this way, even if the worst result is encountered, the order will be out of the market without loss. After setting the trailing stop loss, the order will no longer lose money, and even the profit has been locked. At this time, the psychological pressure of holding positions is very small, which is conducive to the execution of transactions. These 6 stop loss methods, you can choose the appropriate method according to your own trading strategy OANDA:XAUUSD OANDA:XAUUSD COMEX:GC1! TVC:USOIL BINANCE:BTCUSDT.P COINBASE:BTCUSD
TVC:GOLDEducation
by CheetahAttack
Follow Through Day's and Market BottomsIt’s said that three out of every four stocks will follow the trend of the general market. It’s also known that the best opportunities come when a bear market ends, and a fresh new uptrend begins. The question is, how do you know when a new uptrend starts? The Follow Through Day A Follow Through Day was defined by William O’Neil as “when one of the major market averages moves up over 1.25% on heavier volume than the previous day.” A Follow Through Day usually occurs sometime between days 4 and 12 of an attempted rally. When to Start Counting Rally Days While the market is in a down trend, you are waiting for the first day the market closes positive to start counting your attempted rally days. The first positive day is day 1 of the rally attempt. On day 4 or later you are looking for the Follow Through Day to occur. How Does a Follow Through Day Fail Not every follow through day works, but no bull market has started without one. All days of the rally do not need to be up, some may be down, however a follow through day officially fails when the low of day 1 of the rally attempt is undercut. When this happens, it is time to start looking for a new day 1 and another follow through day. It is not uncommon to have multiple attempted rallies and failed follow through days before the market begins a new uptrend. Let’s look at a few market bottoms from the past reviewing the concepts covered. Nasdaq 1998 Bottom SPX 1974 Bottom
TVC:IXICEducation
by Amphibiantrading
4
Simple Math Defies Logic"The ones who make the most money lose the least when they are wrong" Let's use a scalping trading style for example Say you have a set risk reward ratio of -10 pips for being wrong +30 pips for being right Start trading Loss Loss Loss Win Loss Loss Loss Loss Loss Win Loss Loss Loss Win Win Loss Loss Win Loss Loss Wow, a lot of losses, but hold on.... You have the same amount of money you started with, minus maybe a small bit on commission. How does that happen? Let's put the running total (pips) next to each trade Loss -10 Loss -20 Loss -30 Win 0 Loss -10 Loss -20 Loss -30 Loss -40 Loss -50 Win -20 Loss -30 Loss -40 Loss -50 Win -20 Win +10 Loss 0 Loss -10 Win +20 Loss +10 Loss 0 Final for the day = 0 ( -1.5 - 2.5 pips for commissions) Accuracy rate: 30% So in simple terms, by just using a simple risk management set up that allows you to win more than 1x the risk, you do not have to have a very high accuracy rate in order to make even a small profit. It is very difficult to keep your mind in check about this simple math, because we look at each trade on it's own, instead of looking at a series of trades (for a day/week/month) to judge performance. Keeping the overall picture in mind, and just making sure you do not allow more risk on a position than you planned, and most cases you will begin to see an improvement on trading. By not using stops, losses can quickly mount up, because losing streaks happen. Stick to the plan, and let your mind just sit in the corner mad about the stop rules (Ignore the feeling, like a 2 year old that didn't get ice cream, or because they weren't right, & just remember the math). *If you move your stop, one of two things apply: You are either finding more support for the idea, just a bad entry. Move the stop to what you would risk as an additional position had you taken the trade from the spot you decide to move the stop from, and count it as two trades. If you had a small stop, but not the maximum risk you allow on the idea, then move it no further than you planned to risk as a maximum for a single trade. Moving a stop because you have a reason is OK, just COUNT IT, and MAKE SURE you have a REASON to do so. DO NOT just move it because you don't want to lose, or you will take out your own account very quickly.
BITSTAMP:BTCUSDEducation
by ForexStoryteller
⚠️ Risk:Reward & Win-Rate CheatsheetThe reward to risk ratio (RRR, or reward risk ratio) is maybe the most important metric in trading and a trader who understands the RRR can improve his chances of becoming profitable. Basically, the reward risk ratio measures the distance from your entry to your stop loss and your take profit order and then compares the two distances. Traders who understand this connection can quickly see that you neither need an extremely high winrate nor a large reward:risk ratio to make money as a trader. As long as your reward:risk ratio and your historical winrate match, your trading will provide a positive expectancy. 🔷 Calculating the RRR Let’s say the distance between your entry and stop loss is 50 points and the distance between the entry and your take profit is 100 points . Then the reward risk ratio is 2:1 because 100/50 = 2. Reward Risk Ratio Formula RRR = (Take Profit – Entry ) / (Entry – Stop loss) 🔷 Minimum Winrate When you know the reward:risk ratio for your trade, you can easily calculate the minimum required winrate (see formula below). Why is this important? Because if you take trades that have a small RRR you will lose money over the long term, even if you think you find good trades. Minimum Winrate Formula Minimum Winrate = 1 / (1 + Reward:Risk) 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Editors' picks
Education
by QuantVue
8
What is Non-Farm Payroll and How to Trade It? 📚 Hey traders, This week, on Friday, we are expecting Non-Farm Payroll Report. In this educational article, I will try to explain to you why that fundamental data is so important and I will share with you the insights how to trade it. Non-Farm Payroll is one of the most important indicators for forex and stock markets in the economic calendar. Being released on the first Friday of each month by the Bureau of Labor Statistics (BLS), it shows the number of new jobs created by the US economy during the previous month, excluding farm sector, government and not for profit organizations. NFP accounts for 80% of the US gross domestic product work force. The non-farm payroll is used by analysts to determine the current state of the economy and to predict the future activity levels. For that reason, its release usually triggers volatile movements across all Us Dollar related financial instruments. Being crucially important, remember that NFP is not the only figure released by the Bureau of Labor Statistics. NFP is the part of the Employment Situation Report that also contains: Unemployment rate, Average hourly earnings, Labor participation rate, Average workweek. The main reason, why newbie traders fail in trading NFP release is the fact that they completely neglect the figures of the Employment Situation Report. Here are some tips how to properly interpret the figures in the report: 1) Non-farm payroll numbers. It reflects the new jobs' creation pace. Higher than predicted rate is usually positive for the US stock market, while the weak rate usually affects that negatively. 2) Unemployment rate. It reflects the number of unemployed people in relation to a total workforce. Low unemployment rate is usually very positive for US Dollar, while higher than expected unemployment quite negatively affects on USD. 3) Average hourly earnings. It reflects the change of the labor cost. The fast increase in the labor cost is usually positive for US Dollar, while the slowing increase is considered to be a bearish indicator for USD. 4) Average weekly hours. It reflects the average amount of paid working hours. The increase in average weekly hours is considered to be a very positive factor for US stock market, while its decrease is considered to be a negative one. Trading NFP report, the one should consider all the figures from the Employment Situation Report. All the numbers should be weighed properly and only then the predictions should be made. Remember that volatility is higher than usual in the hours of news release, for that reason, be careful and never forget to set a stop loss.
OANDA:XAUUSDEducation
by VasilyTrader
7
Scalping vs Day Trading vs Swing Trading | Learn What is Best Knowing which trading style suits you best is a difficult question to answer, but the choice you make is not permanent. In fact, many novice traders will experiment with some or all of the various styles before settling on a method and strategy that suits their lifestyle and the funds they have to risk. Scalping The first trading style of this guide is called "scalping". Scalping is a form of trading where traders aim to achieve profits from relatively small price changes. Scalpers enter and exit the financial markets within a short time-frame, which is usually a matter of a few seconds, or minutes (but the maximum is a few hours) and are known to use higher levels of leverage. Day trading Many traders think that day trading and scalping are similar. Although both trading styles do take place within one trading day, there are important differences that we need to highlight. Day traders open and close substantially less setups compared with scalpers. These traders sometimes open one setup a day, and often not more than a couple per trading day. Although they both trade intraday, the day trader's strategy is to focus on the best opportunities of the day, and to hold on for a larger profit target. Therefore, a day trader usually holds on to a trade for several hours but not more than one full trading day. Swing trading The last trading style of our guide is called swing trading, which is a style in which traders enter and exit sporadically, holding trades over a few days or weeks. Swing trading is a system whereby traders are aiming for intermediate-term trading opportunities, and is significantly different to long-term trading. Whichever trading style applies to you, it's important to find out, as the trading style you choose will have a profound effect on your trading outcomes and your ultimate profitability. ✅LIKE AND COMMENT✅ Please, like this post and subscribe to our tradingview page!👍
OANDA:BTCUSDEducation
by EliteTradingSignals
6
😎MYTHS ABOUT TRADING BUSTED😎 ⚛️The world of trading is full of myths and misconceptions. We often hear stories of overnight successes and devastating losses. It can be difficult to separate truth from fiction when it comes to trading. In this article, we will debunk some of the most common trading myths and provide the facts to help you make better investment decisions. ❌Myth: Trading is Gambling ✅Fact: Trading involves analyzing market trends, researching companies and industries, and making informed decisions based on data. Successful traders do not simply rely on luck; they systematically evaluate risk and reward before making trades. ❌Myth: You Need to be a Financial Expert to Trade ✅Fact: While a basic understanding of the market is important, you do not need a degree in finance to be a successful trader. There are numerous resources available to help beginners learn the basics of trading, including online courses, tutorials, and mentorship programs. ❌Myth: Day Trading is the Best Way to Make Money Quickly ✅Fact: Day trading involves buying and selling assets within a single trading day in order to profit on short-term price movements. While it can be lucrative, it is also risky and requires significant time and effort. Many successful traders prefer to take a long-term approach, focusing on investments that will appreciate over time. ❌Myth: You Need a Lot of Money to Start Trading ✅Fact: While having a larger investment portfolio can certainly provide more opportunities for profit, you do not need a huge amount of money to start trading. Many online brokers offer low minimum account balances, making it easier for beginners to start investing. ❌Myth: Trading is Only for the Wealthy ✅Fact: Trading is accessible to anyone with an internet connection and a willingness to learn. While high net worth individuals may have more resources to invest, anyone can start trading with a little bit of research and a willingness to take calculated risks. ❌Myth: Technical Analysis is the Only Way to Predict Market Trends ✅Fact: Technical analysis involves analyzing charts and data to predict future market trends. While it can be a valuable tool, it is not the only way to make informed trading decisions. Fundamental analysis, which involves evaluating a company's financial health and growth potential, is equally important. ❌Myth: Trading is a Solo Endeavor ✅Fact: Trading can be a solitary activity, but it is important to take advantage of opportunities to learn from and collaborate with other traders. Online forums like Tradingview, mentorship programs, and networking events can all provide valuable insights and support. ✳️In conclusion, there are many myths surrounding trading that can prevent individuals from taking advantage of its potential benefits. By separating fact from fiction, traders can make informed decisions and increase their chances of success. Whether you are a seasoned investor or a beginner, knowledge and education are essential to achieving your financial goals. 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?
BITSTAMP:BTCUSDEducation
by SignalProvider
8
ELON MUSK QUOTES FOR POWERFUL THINKING Elon Musk is today's Nikola Tesla. Here are 11 Elon Musk quotes to make you start working on your dreams, no matter how impossible they might seem. “I do think there is a lot of potential if you have a compelling product and people are willing to pay a premium for that. I think that is what Apple has shown. You can buy a much cheaper cell phone or laptop, but Apple’s product is so much better than the alternative, and people are willing to pay that premium.” “When something is important enough, you do it even if the odds are not in your favor.” “What makes innovative thinking happen?… I think it’s really a mindset. You have to decide.” “I’ve actually not read any books on time management.” “It’s OK to have your eggs in one basket as long as you control what happens to that basket.” “The first step is to establish that something is possible; then probability will occur.” “I wouldn’t say I have a lack of fear. In fact, I’d like my fear emotion to be less because it’s very distracting and fries my nervous system.” “I say something, and then it usually happens. Maybe not on schedule, but it usually happens.” “If you get up in the morning and think the future is going to be better, it is a bright day. Otherwise, it’s not.” “As much as possible, avoid hiring MBAs. MBA programs don’t teach people how to create companies.” “It’s very important to like the people you work with, otherwise life your job is gonna be quite miserable.” Remember that your mindset is 80% of your future success, dear traders. 🌺Hope u like my article. Please let me know what you think💋 Love, Anabel❤️ Please, support my work with like and comment! Love you, my dear followers!👩‍💻🌸
Education
by AnabelSignals
6
THE TYPICAL WEEK OF A TRADER 🗓 In this educational article, I will teach you how to properly plan your trading week. Sunday. While the markets are closed, it is the best moment to prepare the charts for next week. First of all, charts should be cleaned after the previous trading week: multiple setups and patterns become invalid or simply lose their significance and their stay on the charts will only distract. Secondly, key levels: support and resistance, supply and demand zones and trend lines should be updated. Similarly to patterns, some key levels become invalid after a previous week, for that reason, structures should be reviewed. Monday. Analyze the market opening, go through your watch list and check the reaction of the markets. Flag / mark the trading instruments that you should pay a close attention to. Set alerts and look for trading setups. Tuesday. Wednesday. Thursday. If you opened a trading position, keep managing that. Pay attention to your active trades, go through your watch list and monitor new trading setups. Friday. Assess the entire trading week. Check the end result, journal your winning and losing trades. Work on mistakes. Decide whether to keep holding the active position over the weekend or look for a way to exit the market before it closes. Saturday. Stay away from the charts. Meditate, relax and chill while the markets are closed. Trading for more than 9-years, I found that such a plan is the optimal for successful full-time / part-time trading. Try to follow this schedule and let me know if it is convenient for you ❤️Please, support my work with like, thank you!❤️
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OANDA:XAUUSDEducation
by VasilyTrader
19