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How to Blow Your Account | Step-By-Step Guide 💰 to 🪙 Hey traders, In this article, we will discuss the set of actions, habits and beliefs that will blow your account. 1. Trades are based on emotional decisions Behind each trading position must be a reason. The entry reason of a professional trader is based on a very strict and objective conditions, while an unprofitable trader follows emotions and intuition. 2. Stop loss placement is for losers A lot of traders consistently neglect placing a stop loss. Remember, just one single trade without that may blow your entire account. 3. Set unrealistic goals There is a common misconception concerning trading: that the equity size is not proportional to potential gains. Such a reasoning leads to various false conclusions. One who is trading with 100$ account and expecting to buy lambo, will inevitably blow the account. 4. No time for trade journaling Why to even bother yourself with trade journaling?! It is just waste of time. Remember, that trading journal is one of that best tools for learning. Constantly assessing your past decisions, you identify the flaws of your strategy and fix that, increasing your future gains. 5. Trading plan is for fools I know a lot of traders who trade without a plan. Remember, that the trading plan is your roadmap. Without that, it is impossible to become a consistently profitable trader. 6. Blindly following other's view While you are learning how to trade, your task is to learn the reasoning behind the trades of the pro's in the industry. Following them without reflections, you are not learning and, moreover, you are becoming dependent. Losing, you put the responsibility on their shoulders instead of yours. Such an approach will lead you to failure. Learn to become responsible in your trading decisions and execute your own analysis before you follow any other trader. 7. Who needs economic data As we discussed many times, fundamentals are the driver of the market. Neglecting the trends and global situation, not studying the news, you will unavoidably be fooled by the market. 8. Indicators are the magic pill I know a lot of traders, who spend thousands of dollars looking for a magic indicator - the instrument that will make tons of money. The fact is that indicators are just a tool in your toolbox. Its goal is to provide some minor additional clues to your analysis. Overestimating the importance of indicators, you will most likely blow your account. 9. Not investing in education Many traders are spending their money not on education but on fancy tools, signal services, robots and indicators. However, the fact is that only knowledge gives freedom, only skills can make you independent. 10. Back testing is pointless Trying different strategies, many traders intentionally skip the back testing part. Remember, that back testing is the most proven way to verify the efficiency of a strategy, allowing you to save time and money simultaneously. 11. Paper trading does not make any sense Same thing with paper trading. For some reason, the majority of the traders skip demo trading, quickly opening a real account. However, the fact is that demo trading is the best, risk-free tool for learning how the market works. Unfortunately, these 11 fallacies and misconceptions are very common. Analyze your trading and make sure that you are not making these classic mistakes. What would you add in that list? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
55
The 7 Levels of Financial Freedom Hey traders, In this article, we will discuss the ladder of financial independence. Level 1 - Solvency You cover your debts and living expenses with your income. Being solvent is considered to be shaky states. Once you stop earning for any sake of a reason, you immediately become in debt. Level 2 - Stability Besides being able to cover your living expenses and debts, you also have an emergency savings. The emergency savings usually cover 1-2 months of your basic expenses, making your state more sustainable. Level 3 - Debt Freedom You are free of debts and that lets you start investing and save even more. It is the transitional level in our ladder from unstable to a secure state. Level 4 - Security Your investments cover your basics expenses. While you keep earning, the money that you invested start bringing more money fortifying your state. Level 5 - Flexibility While your investments are still not sufficient to cover all your costs of living, it fully compensates 1-year costs of your basic expenses. Level 6 - Independence Your investments cover all your living costs, letting you live wherever you want and spend on luxuries. Level 7 - Abundance Money is no more a concern to you. You have more than you and your children will even need. The understanding of the level where you are is crucially important for building your investment strategy. Keep working and learning to constantly climb the stairs and grow your wealth. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
6
10 Trading Rules I Used To Stop Losing MoneyHello traders, All the below are based on my preferences, I don't give any financial recommendations and I have nothing to sell you with this article. I'm sharing content because I see a lot of traders being/becoming broke and I don't want you to be one of them. I) Hard work versus efficient work Work ethic doesn’t matter.
 You can work as hard as possible and not get rich. So getting rich is not about pure hard work.
 Getting rich is about knowing what to do, when to do it, and with whom to do it. It is about understanding. Once you figure this out, the next is about executing the path —> which will probably require the hard work. But as we see, the work comes implicitly in the execution of the path/destination. 
So, don’t do the hard work for its own sake, that would be a waste of time. II) The Understanding 
You can develop this skill by becoming a perpetual learner. 
And when feeling confused during the learning sessions ==> that’s OK. Your brain is like a muscle, and it means that is being “trained”. 
Foundation of “axioms” (based on full truth) are critical for learning and interpreting new information. So, when developing the “axioms” make sure you are consuming high quality information. III) How do we make sure that our foundation is high quality Step 1 : Stick to hard science, mathematics, the “basics”. Why? There is no disagreement between people in these areas, so they are solid foundations.

 With trading, simple always outperform complicated.

 I’ve seen price action traders outperforming traders with multiple dozens of indicators on their chart. 

In hindsight now the answer to why that is is obvious to me…. That’s because we tend to overcomplicate things and tend to believe that a more complex trading strategy leads to better results. This couldn’t be further from the truth - this is untrue. Sharing here a non-exhaustive “axioms” list I learned the hard way (not listed in a specific order) 1. Cut social medias completely when trading. 
I literally block my own access to Twitter, Instagram, Facebook, Tim Tok… giving my access away to someone I trust and telling that person to change my password/email so that I can’t access them anymore. 2. I don’t necessarily need more winners than losers but I need my winners to be at least 2X in pips value my losers 3. More trades doesn’t mean more profit 4. Less trades doesn’t mean more profit either
The profit isn’t correlated to the number of trades I’m taking per day but to me being reactive whenever a great opportunity presents itself 5. This one is very personal and based on who I am as a trader
Leverage is OK in the 2X/3X range at most and only for rare opportunities with a huge risk to reward ratio. 6. I must NOT trade what I want to BUT trade what’s moving 7. It is OK to feel GREED/FOMO/FEAR, I can always adjust my position size to hedge my doubts. 8. It is NOT OK to make some good trades and keep trading for that trading session out of GREED/FOMO 9. It is NOT OK to not take a trade because the previous trades were losers
That one required me years of self-mastery to accept it 10. I MUST ALWAYS expect the unexpected => leading me to banking profit automatically when the candles hit a Supports/Resistances zone AND withdrawing to my bank account on a weekly basis 
Step 2 : Read the classics and listen to trading podcasts where the top traders explain their strategies, mindset, psychology when approaching trades. 
I really like the Youtube channel SMB traders and the podcast “Chat with traders” PS: I have no affiliations with any of them. 

From those 2 sources of information only, you’ll have a good spectrum of what could work and certainly what will never work with trading.
 Once you acquire the solid foundations: 1. You won’t fear any book, and will have the confidence to learn anything you want. 
 And the more you learn, the more options you’ll have on how to make money from your trading.
 Because you can understand whether a trading strategy could even be profitable without backtesting it.

 2. You can then pick the thing where to achieve mastery.
You will achieve “mastery” only on the few things you’re obsessed about. 

For me, I’m a “master” at trading indices futures and CFDs. 
I’ve been doing it for more than 10 years. 
I can trade them even without indicators as I know how the DAX, DOW, SPX often react after a gap or a macro event or after a specific price action. Quotes of the day Leaving you now with a few quotes from some of the brightest minds “Study game theory, psychology, mathematics and computers” - Naval Ravikant “Opportunities come to the prepared mine” - Abraham Lincoln “An investment in knowledge pays the best interest” - Benjamin Franklin “Formal education will make you a living; self-education will make you a fortune” - Jim Rohn I'll keep bringing a few articles like this every week because it helps me clarifying my thoughts AND giving back to the community makes me feel good about myself somehow :) Thank you for reading Dave
Education
by Daveatt
12
ELON MUSK QUOTES FOR POWERFUL THINKING 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.
OANDA:XAUUSDEducation
by TopTradingSignals
9
How To Get What You Want Out of Your TradingHello traders, All the below are based on my preferences, I don't give any financial recommendations and I have nothing to sell you with this article. I'm sharing content because I see a lot of traders being/becoming broke and I don't want you to be one of them. The today’s lessons coming from my experience is me sharing how I got what I wanted out of life Whether, it’s a 6 packs, money, success etc… I) Is writing down your goals even useful? A keystone habit that served me very well in retrospect, when there is something that I want that I do not have, so I have a desire which means I’ve made a contract with myself to be unhappy until I get what I want. So there is this thing external that I wanted - think of 6 packs, money, success, ... Writing down goals means nothing and I know it’s contrary to common belief or practice - which states people writing down their goals are more likely to succeed.

 Sure having a direction is more likely to achieve them than not having a direction right I don’t disagree with that.

 Here is an interesting statement that may hit you: winners and losers have the same goals Successful traders and unsuccessful traders have the same goal namely increasing how much money they’re making. Then, having goals cannot be the main driver of success

We have to dive deeper to understand what are the behaviours making our goals being achieved. II) Mimic the behaviours of very successful traders We all already know the activities that are going to generate the result we want.
 - Maybe, it’s not trading what you want to trade but trading what’s moving Yes, I’m thinking of crypto traders scalping ranges while recent events brought an insane intraday volatility with futures, commodities and even FX pairs 
 - Maybe, it’s trading with a demo account, tiny baby trades for months, and scaling up progressively the position size. Self-mastery is a skill that MUST be acquired - going outside of your lane too quick INEVITABLY results in a catastrophe - Maybe, it’s not trading from our phone but from our computer only.... We tend to miss some obvious data on the charts, screeners when trading from a small screen 
 - Maybe, it’s also not trading when we’re tired or sick or frustrated Trading is hard - trading without a body/mind in a decent shape is...... not smart.... I bet every reader knows how to lose fat right? Burning more calories than we eat... 
Even fat people know that
.... They know what kind of activities they should do to lose fat but they don’t do it. 
The same goes with unsuccessful traders. The vast majority of traders know what to do to become successful but don’t want to do it because it’s too time-consuming and boring right? A new trader, looking to get rich quickly will be poor quickly III) A simple hack I’m often asking myself the question, what would a person who does this type of thing do in this instance? Your identity is a weighted voting system where you can votes based on your activities and what type of person you want to become. What Paul Tudor Jones or Jesse Livermore or Ed Seykota did to be successful? A simple google search gave me a list of common behaviours/habits shared from the most successful traders. Instead of writing a 50 points checklist of all the activities I need to do to achieve my goals, I wrote down a list of behaviours commonly shared between extremely successful traders and investors. If you’re a millionaire, ask yourself, what would a billionaire do? If you’re not a millionaire yet, ask yourself what would a millionaire do? Another great question to ask ourselves: what would someone 10 times smarter than me would do in that situation? 
It’s a different way of saying, what would someone 10 times richer than me would do 
Word it in whatever way resonates with you. 

I wrote those questions on a post-it and sticked it on my wall above my computer - it’s a constant reminder for me to reflect and think before I take a trade.

 And that type of person, when you’re asking yourself the question “what would that person do in that situation?” is who you will eventually become as you continue to cast votes that reinforce the stories that we tell ourselves about who we are. 
 Those are the things that create long-lasting changes 

. This hack isn’t about telling ourselves affirmations such as: - I’m a successful trader - I’m rich - I’m a high value man/woman Just saying them doesn’t make them true

. What makes them becoming true is creating some level of evidence through behaviours/actions for an extended period of time. 

It all starts with activity, with doing.

 And for a new trader, doing is….taking as many trades as possible while testing as many strategies as possible, one by one, until one sticks with his/her risk appetite, capital, lifestyle etc… + accumulating a tons of small activities or habits leading to success. I’ll write next Monday an education post listing the behaviours I “copy/pasted” for years until they became a part of “ME” and how they fast-tracked my way to multiply my net worth. I'll keep bringing a few articles like this every week because it helps me clarifying my thoughts AND giving back to the community makes me feel good about myself somehow :) Thank you for reading
 Dave
Education
by Daveatt
2
How To (NOT) Fail As A Trader? (Part 2)Hello traders, All the below are based on my preferences, I don't give any financial recommendations and I have nothing to sell you with this article. I'm sharing content because I see a lot of traders being/becoming broke and I don't want you to be one of them. Today, I want to share the second part of the frameworks I’ve used across the past 10 years. 
I’ve learned them from the legend himself Charlie Munger, cofounder of Berkshire Hathaway, what NOT TO DO to stay far away from being unsuccessful and poor. You'll find the first part shared yesterday below I) Overspend your income Once I got to a certain level of net worth, I still didn’t spend a lot.
 Actually, I never overspent my trading income, I just keep stockpiling as much as possible
I don’t buy fancy things, I don’t get a table when I go to the nightclub
. I barely spend 3% of what I earn every month - makes me feel so free because it’s more money that I’d ever need.

 And …. That’s how wealth is accumulated. 

I don’t even live frugally… I go to the restaurant every day….. I buy stuff that I need and I like…. 
 But … if you want to fail, definitively overspend your income. II) Learn only from your own mistakes To fail, don’t learn from the mistakes of others, don’t learn from the success of other people. There are tons of free ressources to learn the basics of psychology, trading, self-mastery

. There are also a few very reliable and trustworthy traders selling courses and sharing how they became successful.
 Sharing their trading method, their insights, etc... 

Knowing how to identify them, and listening to them is key. 

To stay poor, don’t learn from other successful traders. III) Quit Early If you want to fail and be miserable, you definitively want to quit soon, quit early. 

Because, no matter of who you are, you’re going to fail many times.

 Remember that my win-rate is between 50/60% :) Half of my trades are necessary failures for me to deserve the winners. 

If you quit trading too early, that’s a guarantee you’d be miserable for a long-time. Don’t put yourself in a situation where you blown up your trading capital and can’t trade anymore...forcing you to quit… Stay in the game, with tiny baby trades and take many of them for a VERY EXTENDED period of time…

 That’s the ONLY WAY to learn overtime IV) Negative Visualisation Take something very negative, and imagine it happening a thousand times in a row. 
How would you feel at the 1000th time it happens? 
Exactly…you’d feel nothing If you feel that way after the 1000th time… then you might as well feel that way after the 1st time… 
This mindset framework has been so POWERFUL for me.

 That’s exactly why you MUST trade a lot and have a lot of losers in your “skeleton closet” Being insensitive to losses is a skill that can be acquired only after hundreds/thousands of failed trades

. And trust me, I have hundreds of those losers every month… 

They’re not affecting me anymore… they’re a necessary “evil” V) Expect only the best outcome If you want to fail at trading, definitively follow traders only posting the winning outcomes/trades. Definitively never think of setting a stop-loss, or an hard-exit

. Definitively don’t think about your RISK VI) Expect the worst Bouncing back from the previous point, sharing how I approach trading. If you’re a beginner in your trading journey, expect every day that you’re going to lose some of your money. And that is going to be your base reality If I happen to make gains, be profitable then…. That’s just a bonus…. That’s serendipitous … it’s just a happy coincidence. 

But I expect that at every trading session I’m going to lose. 

This mindset framework has been extremely beneficial for me. 
If I come trading with that mindset, then I’m not surprised nor affected when I’m losing some capital and I feel that way because it’s in alignments with the expectations I have in my mind. Thank you for reading
 I'll keep bringing a few articles like this every week because it helps me clarifying my thoughts AND giving back to the community makes me feel good about myself somehow :) Dave
Education
by Daveatt
2
JS-Masterclass #7: Trade AnalysisJS-Masterclass #7: Confirmations & Violations In previous tutorials, we have covered the stock selection process and the identification of low risk, high probability entry point following constructive consolidation patterns. Now that we are in the trade, the question comes up what to look for. What makes the price action healthy so that you rather stay in the trade and what are the alarm signals to look for? The Founder of the Berger Funds and Stock Market Legend Bill Berger said: “I buy tennis balls and sell eggs.” What does that mean? ‘Tennis-Balls’ are characterized as follows: after a breakout under high volume out of a constructive consolidation pattern, most stock will pull back after a couple of days. This pullback for ‘Tennis-Balls’ normally happens under low volume and is followed by a strong price increase under heavy volume. Just like a tennis ball immediately pooping back after a drop to the ground. ‘Eggs’ are characterized as follows: The above mentioned pullback after a breakout happens under high volume and the stock is not able to recover from this pullback. Just like an egg which drops down to the ground. What you do want to see after you have entered a trade: • The trade is immediately profitable • Good volume characteristics (high volume on up-days and low volume on down days) • High volume rallies – low volume pullbacks • Follow through buying (2-3 days or more) – institutional vs. retail • More up days than down days • More good closes than bad closes • Look for ‘Tennis Ball Action’ after a ‘Natural Reaction’. A ‘Natural Reaction’ can be considered as a pullback under low volume following a breakout. What you do not want to see after you have entered a trade: • Squat directly after breakout • Low volume out of a base - high volume back in • 3 or 4 lower lows w/o supportive action • More down days than up days • More bad closes than good closes • A close below the 20d MA on high volume • A close below the 50d MA on high volume • Full retracement of a good size gain • Wide and volatile price action • Outside day: high is higher than high of the previous day but closes below the low if the previous day. This happens on higher volume versus the previous day
Education
by JS_TechTrading
How To (NOT) Fail As A Trader? (Part 1)Hello traders, All the below are based on my preferences, I don't give any financial recommendations and I have nothing to sell you with this article. I'm sharing content because I see a lot of traders being/becoming broke and I don't want you to be one of them. Today, I want to share some thinking frameworks I’ve used across the past 10 years. 
I’ve learned them from the legend himself Charlie Munger, cofounder of Berkshire Hathaway, what NOT TO DO to stay far away from being unsuccessful and poor. I) Don’t ingest chemicals 
Don’t ingest chemicals to alert your state
If I wanted to be really poor or unsuccessful in life, what would I do?
Well, I’d definitively get addicted to chemicals.
 Sounds so logical and obvious right?
 Though, many of us use them on regular basis to alter their mood because they can’t cope with how hard trading can be sometimes. I can’t think of anyone who ever told me “oh man, now my life is so much better since I’m on drugs and I drink” It’s not a judgment in any way; that’s what Charlie Munger says about successful people - they don’t ingest chemicals. II) Envy 
Every single year, I outperform my previous year YoY% PnL return and have grown my net worth. Though, I always find many guys over performing me in trading every single year. 
And for me, that hit me because I’m so innately competitive… that I suffer from comparison all the time. I even got to the weirdest point thinking “I feel the more money I make, the poorer I feel” Yes you read that right… and I know many of extremely successful traders feel that way.

And it’s totally true because what ends up happening is our measuring stick changes. III) Measuring Stick I remember when I was very young, my measuring stick was a MacDonald’s meal.
It was just, how many McDonald’s meals this amount of money equates to. When I got to a 6 figures net worth, that was probably the wealthiest I have ever felt because I had proportional to what my measuring stick was at that time…100K euros was so many McDonald’s meals, so many of those units.

Now, my measuring stick or unit is bigger is monetary value (and significance).
 That stick changes.... 

Someone is always doing better. I think it’s so much more about not thinking about them because the way they roll the dice and play the game has no effects on us - it’s only an imaginary way to make ourselves suffer. 
If you want to suffer, be envious of people. IV) Resent people 

 Another way to feel miserable is to resent people.
 - Do you resent some guys for your trading failures? - Do you blame the FED? Do you blame Blackrock? - Do you blame the whales for YOU to not performing with trading the way you should? Charlie Munger wrote that every time he feels the need to resent people, he’d write their name on a piece of paper and put that paper in a drawer, and periodically open it up and realise how life had dealt with those people without him having to do anything. 

It’s one of those long-term mindedness that like most people live in karmic balance. Simply, people who do bad things, eventually that catches up to them and life is becoming worse for them. 
And someone doing bad things is already dealing with the suffering of being who they are. 

Why am I saying this?

 All your corrupt politicians, bankers, hedge funds, market makers, brokers… at some point, the karma (or the SEC :p) will make their life miserable or at least very problematic. Again, repeating myself, don’t resent other people for your losses because this will make you feel really miserable. 

 V) Be unreliable To feel miserable, say you’re going to do something and don’t do it. Say you’re going to be somewhere and be late.
 Be flaky, make tons of mistakes and don’t learn from them. 
That’s why I’m a big believer of having a trading buddy because it forces me to be reliable towards myself and him.
 For me, that’s my father. 
We both show up on time, trading from the same room, we both trades and discuss in real-time of setups we identified. If you’re reliable, it’s very difficult to be unsuccessful. 
Even if the previous days, you lost money, keep showing up. 
If you don’t feel like trading because your emotions are not in check… trade with your demo account or with smaller position sizes until you’ll bring your self-confidence back up. My win-rate is maybe around 50/60% - which means half of the trades I take…. fail…

 Though it was a tough pill to swallow, I worked on making at least 3 times more on average with my winners compared to my losers. 
Meaning for every 1 dollar per trade with a negative PnL, I earn 3 dollars per trade with a positive PnL.

 I’ll post the Part II of this article tomorrow . Thank you for reading
 I'll keep bringing a few articles like this every week because it helps me clarifying my thoughts AND giving back to the community makes me feel good about myself somehow :) Dave
Education
by Daveatt
3
How to deal with uncertaintyHello traders, All the below are based on my preferences, I don't give any financial recommendations and I have nothing to sell you with this article. I'm sharing content because I see a lot of traders being/becoming broke and I don't want you to be one of them. Who taught me to become a great trader? Was it a majority of trying and failing? or was it masterminds? was it consultants? mentors? books? I) I was not afraid to fail I became successful because I wasn't afraid to fail. We learn quickly when we can fail then instead of dwelling I just got back up and tried again. And it took me weeks to figure out some issues with my trading simply from analysing my past trades AND it's way faster than reading trading books, buying trading courses taking me months to figure them out. II) I was totally fine in the unknown Disclaimer: you'll never be able to predict the future, what the FED is going to do, which country is going to invade which country, which bank will default, etc Most traders, the reason they can't succeed, is because they're looking for a mentor, a book, i.e. certainty and reassurance If you can survive and be ok with uncertainty then you realise you don't need all those things because you have common sense and thinking power. And you can actually think on your feet, you can iterate, you can innovate => fancy words to say you can adapt your trading strategies based on how volatile and directional the market is Great traders don't need certainty that a scenario will happen for sure. Regardless if it happens or not, they'll handle it either way. No blueprint is needed. They're prepared to trade regardless of how they feel the market should do and that's how I deal with uncertainty too. I accepted taking those risks with a demo account first and then trading micro-lots for about a year because I trusted I could make it as a trader. III) Self-education Now that I have a bit of money, I spend a lot in courses, mentorships, workshops, books, one-to-one coaching with 9+ figures people way above me in the "food chain" But let me be perfectly clear, I didn't spend a dime when I learned how to trade I learned by..... doing, failing, again and again and again.... at a 0 or low risk because I was smart enough to trade with the smallest position sizes possible. Conclusion The learn on the go mentality doesn't mean you learn and then go. It means you learn while you go. It's not because you have incomplete information that you have incomplete action. You're going to learn more from the completed action than you would from the lesson you're trying to learn through research (book, course, ...) With enough volume of trades, you'll be directionally correct eventually and then you can iterate from there. Rather than looking to capture the whole trades profit from top to bottom/bottom to top, not looking for the perfect trades but looking to capture opportunity at every trade, you'll speed up your decision loop a lot. Thank you for reading I'll keep bringing a few articles like this every week because it helps me clarifying my thoughts AND giving back to the community makes me feel good about myself somehow :) Dave
CME_MINI:ES1!Education
by Daveatt
3
Fundamental Analysis in Forex Trading Economic indicators and announcements are an essential part of fundamental analysis. Even if you’re not planning on finding trades using fundamentals, it’s a good idea to pay attention to how the overall economy is performing. Here’s a cheat sheet covering six key indicators and announcements to watch out for. 1. Non-farm payrolls (NFP) The non-farm payrolls report estimates the net number of jobs gained in the US in the previous month – excluding those in farms, private households and non-profit organisations. 2. Consumer price index (CPI) The chief measure of inflation is the consumer price index, which measures the changing prices of a group of consumer goods and services. 3. Central bank meetings As we’ve seen, most traders follow economic figures so they can anticipate what a central bank might do next. So, it only makes sense that we pay attention to what happens when they actually meet and make decisions. 4. Consumer and business sentiment reports Multiple organisations are constantly surveying consumers and business leaders to create sentiment reports. While the number of reports they produce is staggering, they all play their part in shaping the markets’ expectation for the future. 5. Purchasing manager index (PMI) Purchasing manager indices measure the prevailing direction of economic trends in a given industry, according to the view of its purchasing managers. They are used as an indicator of the overall health of a sector. Pay close attention to these fundamentals. They play a crutial role in trading.
OANDA:XAUUSDEducation
by UnitedSignals
12
How you trade impacts how you feel 😀It's no secret that managing your trading psychology is the biggest challenge in your trading journey. Some say it counts for 80%+ of what's needed to be successful. I totally agree... However, there's a key factor in this for me. How you actually trade to start with! Correct trading psychology starts by realising you need a strategy. If you're guessing with no real plan or risk management surely you're going to be more stressed and overwhelmed than a trader who has a plan, has the data to support his strategy and manages his risk? So once you get your system/strategy nailed on, this in turn will help manage your fear. Greed is another factor, but this comes from your expectation. Expectations and reality need to be aligned with one another. Your expectations can come from your data and your testing. But if you've skipped this step you'll be chasing unrealistic expectations. Not just in terms of % gains, but in understanding your drawdown periods too. So in summary both are completely related. You give me a trader that's really struggling with his trading mindset and fear and within a month they won't be feeling the same way. Likewise, if give me a trader who is calm and in tune with his system and emotions, we'll quickly change this by getting him to trade randomly! No trading psychology means no trading strategy, No trading strategy means no trading psychology. These two elements are so intertwined. Thanks for looking at my idea. Darren 👍
Education
by pow_removetheguesswork
2
The reason you are not successful...Hello traders, All the below are based on my preferences, I don't give any financial recommendations and I have nothing to sell you with this article. I'm sharing content because I see a lot of traders being/becoming broke and I don't want you to be one of them. Yesterday, I posted an article about how to NOT overtrade when you're emotions are running high: Now, I'd like to flip the other side of that coin showing how "overtrading" can be beneficial for beginners to achieve their desired outcome. 🧵 I - Alex Hormozi I discovered this OUTCOME equation thanks to Alex Hormozi on Youtube. He helped me defining clearly with words how to get to the outcome I want. Props to him for being such a wonderful business/sales/marketing/thinker. II - The OUTCOME equation The equation is defined as: VOLUME x SKILL x TIME = OUTCOME VOLUME = number of repetitions SKILL = quality of each repetition TIME = total duration of practicing those repetitions Based in foundational principales The more we do.... the better we get The better we get.... the more we do The longer we do it....the better we get The better we get....the longer we do it The longer we do it...the more what we did compounds on itself (profit, reducing losses, etc) In this way, each of the three feed the others, but it all starts with doing . It's a virtuous wonderful cycle: imgur.com It works for any skill you want to acquire but let's focus on trading for now. After years of trading, any of my trade has a higher quality than my trades from my early days. Why? Because I spent an enormous amount of time trading intraday first with a demo account, and then with a live account trading with micro-lots/micro-pips. Once I got profitable CONSISTENTLY for a few weeks, I allowed myself to increase my lot size slightly. I repeated this cycle made of mini weekly cycles for more than 5 years until I'll reach a capital allowing me to trade the indices futures. III - Why 97% of traders fail at trading The majority of traders lose due to a lack of experience which can only come with taking a lot of trades during an extended period of time. There is no other way.... Forget about getting rich quickly, forget about your 100% automated bots - if such wonders existed, no one in their right mind would sell them and they'd invest everything they and their family own in those magical cashflow generating machines instead... New traders think only a few weeks of practicing is required to learn about themselves and about the markets. Your favorite influencers won't tell you this: trading is very hard, most lose all their money, lose their family, lose their home, lose themselves in the process. The only hedge you have is your WORK.... you can't cheat the GAME.... you have to take a lot of trades for an extended period of time..... And then, at some point, you'll be able to capture more opportunity per trade, to lose less whenever your Stop Loss is hit, to not get frustrated when the price is leaving without you All those skills cannot be acquired in weeks .... One cannot develop character traits required to be a good trader in a short timeframe - talking about patience, discipline and motivated. Motivated too because it's hard to keep one's dopamine level high after some consecutive days of losing Don't cheat the game, it's impossible If you're not profitable yet, forget about leverage please please please please. How many times do you have to get margin called to understand that leverage wasn't invented for you to make money but to depart from it faster. IV - True Effort When learning a new skill at the beginning, everyone sucks. I certainly sucked at it and you will too. THAT IS FINE, THIS IS OKAY, THERE IS NOTHING WRONG How could you not expect to suck at a skill you don't know yet. What I'm saying is unpleasant because everyone wants to get rich quick (me included) My only guarantee to YOU guys is that if you can afford to follow this process with a decent trading strategy and stay consistent, your gains are going to be tiny at the beginning and then PARABOLIC after some time. As the desired OUTCOME is to become richer and/or live off your trading again, this is the ONLY way It's IMPOSSIBLE to suck at trading after taking thousands and thousands of trades. As it's impossible to suck at anything after months and months of constant practice and effort. And you can learn with a DEMO account (risk-free) or with betting pennies per every trade using CFDs or other similar product. If you want to learn how to play piano, if you follow some tutorials on Youtube every day and practice 2-3 hours a day for years, I guarantee you that you'll have an excellent playing level. Stop being lazy, stop cheating the game, stop searching for the way to get rich quick. Accept the magic pill doesn't exist BUT another way that no one is doing will allow you be DIRECTIONALLY RIGHT and eventually reaching your desired OUTCOME. Conclusion I wanted to post this content because this outcome equation is dear to my heart and changed my life for the better I'm literally kicking ass because I outworked everyone I know And now that I'm more skilled than them, I can put off my foot from the accelerator working less than them, making more $$ than them Thank you for reading by dear followers PS To all those in the comments about to tell me they have a magical bot printing $$ for them and their community, I invite you to show me your track records and bank account statements and any proof I could believe you didn't use photoshop on to sugarcoat what the reality is...
Education
by Daveatt
44
The 12 Days of Effective Trading Learning Hey traders, In this article, we gathered for you 1 2-days intensive trading learning marathon. We hope that it will help. 1 Day: Practice placing support and resistance lines. 2 Day: Perfect placing trend lines. 3 Day: Study candlestick patterns. 4 Day: Review chart patterns. 5 Day: Practice placing fibonacci retracements. 6 Day: Learn about moving average. 7 Day: Master market structure. 8 Day: Watch videos on momentum oscillators. 9 Day: Learn about divergence. 10 Day: Study risk managment. 11 Day: Review fundamental literature. 12 Day: Create a trading plan. Let us know if such a marathon helped you in your journey.
OANDA:XAUUSDEducation
by UnitedSignals
9
How to stop overtrading and get rid of your trading addictionHello traders, All the below are based on my preferences, I don't give any financial recommendations and I have nothing to sell you with this article. I'm sharing content because I see a lot of traders being/becoming broke and I don't want you to be one of them. Here's how to stop overtrading and get rid of your trading addiction:🧵 I - Define a set of rules The first key to stop overtrading is establishing a set of rules Create a set of rules so you know when you SHOULD stop over-trading. It can be based on $ gain/loss or just the amount of trades taken. Either way, there needs to be a written list you can follow. For example, let's say I want to make X dollars per month with equates to X/20 (give or take) dollars to make in average per trading day. Once for a given day I've reached that goal, I'm stopping myself from trading more. Why? Who here kept trading after making a decent amount of money and ended up losing all the gains? The reason being, we're humans and not naturally wired to trade. After making some money, we all tend to become greedy, taking more risks, also not seeing obvious signs we usually see when we're focused. II - Find a hobby The second key is having a hobby. Something you can do once you've stopped trading It could be... - Working out (I'm working out twice a day for health benefits but also to meditate and to stop thinking about my trades) Of course, as an intraday trader, I'm going to workout whenever with 0 opened intraday trade When I'm invested in SWING trading, I'm taking trades with big enough timeframes so that it's totally fine if I'm not checking the charts for multiple hours in a row - Doing chores Could also be cooking for yourself or your family - Talking to a friend Trading is a passion and if you're passionate about it, your friends will likely want to hear your thoughts about the markets, the trades Of course, don't give them any financial advice :) You don't want to be in a position of recommending or not recommending an action as they may blame you for their losses. Stay neutral, only share what you're doing and why you love doing it - Writing Writing or Journaling helps me clearing As long as you have SOMETHING you can do everyday after trading It should help you out Mine is after 3 consecutive intraday losses, I stop for the session (morning or afternoon) and head to working out, walking, doing anything else other than trading III - Find a buddy I would also suggest getting a trading buddy A trading buddy is simply another trader (or non-trader) that you can talk to throughout the trading day I'm trading with my father and a community of traders, we're talking often, exchanging ideas on whether a setup looks great or not. Not to talk about trades, but more as a mental coach Someone who you can text when you're feeling emotional. And they will tell you to get off the computer. Sometimes we just need to hear it from someone else to actually execute IV - Turn off your computer Lastly, I would recommend turning off the screens. Like literally shutting your computer/monitor off and walking away. You need to PHYSICALLY set yourself apart from the trading scene. Doing this will allow your brain to think about doing something else, rather than trading. Conclusion To summarise: - Have a set of trading rules - Have a hobby - Find a trading buddy - Physically constrain yourself to stop trading after your daily gains or losses have been reached
Education
by Daveatt
137
Comparing BoJ interventions and Anticipating Future OnesJapan's PM Kishida claims, he cannot tolerate excessive FX moves by speculation. But given the circumstances of the message, I understand 'speculation' as an excess of supply and lack of demand. Anyway, I will not argue with the correctness of his wording, political or otherwise, and will just compare the similarities. ► The interventions started after breaking 145 and 150 (151) price levels respectively. ► First, the levels were gently grazed by a candle which later becomes huge doji with above-average volumes closing below such price level. This is likely an anticipatory price action and not a part of the intervention. ► After the price breaks above the key levels for the second time, it stays there for at least an hour into either London or New York session before the intervention starts. ► Both interventions took the price down roughly 3.4% in less than 90 minutes. The low of either intervention was never breached. ► It is likely a mere coincidence, but both interventions were conducted on the 22nd and 21st day of the month. What may be less of a coincidence is that both of them took place in the latter part of the week. This suggests some planning, not just reacting to the level. ► I would argue that the trigger level of the second intervention was not 150 but 151. If that was the case, no key session has been allowed to close above a trigger level. ► Lastly, I would like to point out that the first intervention took the markets off-guard. Not the second one. Raiders, me-included, actively bought the dip not allowing the bottom to be revisited at all. Bank of Japan is expected to continue intervening until it is forced to change its interest policies. Unfortunately for Japan with its 238 Debt to GDP ratio, higher interest rates may be extremely painful, so it will attempt to solve its large problems with a small plaster and hope for the best. In the meanwhile, Japanese people will pay a large and increasing sum for the imports that used to be cheap. I think this is a lesson for countries that did not board a debt spiral. Don't! All debts have to be paid including the state debt. But with states, the due date may be postponed till future generations. These future generations did not approve any loans to spend on populist policies, so indebting your country is, in my opinion, a theft from future generations. As individual traders, we didn't create these troubles for Japan and can't stop them either, so we may as well take some profits. The first interventions knocked me out of my fresh long positions, but I used the other as an entry opportunity and boarded soon after the low was created. Even if it turns out unsuccessful, I think it is worth a potential upside potential. It is hard to predict the next levels of the intervention will take place from. Miyamoto Musashi, one of the greatest swordsmen of Japan, once said that in battle, you may do the same thing once, twice, but never three times. Hence, none of the similarities may be relevant. But it is central bankers with tied-up hands we are dealing with, so I suggest looking for some of the mentioned parameters. Namely - a pinbar, round levels such as 155, 160, 17th Thursday, 18th Friday, and the following week, and bottoms in the aftermath. Good luck! Long live Sauron!
Education
by OrcChieftain
PSYCHOLOGY OF A TRADER | TRADING BASICS Market psychology is the idea that the movements of a market reflect (or are influenced by) the emotional state of its participants. It is one of the main topics of behavioral economics - an interdisciplinary field that investigates the various factors that precede economic decisions. Many believe that emotions are the main driving force behind the shifts of financial markets. And that the overall fluctuating investor sentiment is what creates the so-called psychological market cycles. So, the sentiment is made up of the individual views and feelings of all traders and investors within a financial market. Another way to look at it is as an average of the overall feeling of the market participants. But, just as with any group, no single opinion is completely dominant. Based on market psychology theories, an asset's price tends to change constantly in response to the overall market sentiment - which is also dynamic. Otherwise, it would be much harder to make a successful trade. In practice, when the market goes up, it is likely due to an improving attitude and confidence among the traders. A positive market sentiment causes demand to increase and supply to decrease. In turn, the increased demand may cause an even stronger attitude. Similarly, a strong downtrend tends to create a negative sentiment that reduces demand and increases the available supply.
OANDA:XAUUSDEducation
by UnitedSignals
7
Scaling-in and Scaling-outHello traders, All the below are based on my preferences, I don't give any financial recommendations and I have nothing to sell you with this article. I'm sharing content because I see a lot of traders being/becoming broke and I don't want you to be one of them. Scaling-in There are times when I will scale into a position. When the price dips into the my Moving Average pullback zone, I'll typically get 25% of my position there. I'll then add a full position if the price dips past that MA Don't add to winners I wouldn't advise adding to winners I would advise adding to losers IF it's part of your plan. Though, most traders adding to losers end up losing more statistically.... then even I don't do it. You should always have a stop in place and get out at your stop (or preferably use our hard exit system) NEVER add to your position after your stop has been hit That's not what I'm advising I always make sure to get in a very small position early in case I miss the real entry. It allows me to still have a decent entry if the price drops lower AND allows me to catch the move if the price decides to rip Alright, let's talk about exits👇 Scaling-out Your exit strategy will ultimately depend on your overall strategy However, for ALL small accounts, I'd recommend NOT to scale. Scaling exits should really only be for accounts that can afford to take multiple contracts (5-10+) Otherwise, it's better off just take 100% off at your first target And I really mean it Remember, when your Stop-Loss hit you take 100% of a loss. This should be obvious.... though I see plenty having multiple Take Profit levels and 1 Stop Loss level And they wonder why they're losing.... mostly because of basic mathematics (literally additions and subtractions). A big loss is very hard to offset with multiple partial profits across multiple trades. If you do have a larger account, here's how I'd recommend setting up your exit strategy IMO, it's best to only have 3 targets/exits MAX. After 3, there's really no need to complicate your trading anymore I'm taking the MAJORITY of my profits out at first target... 80+% of your position Otherwise, I very often end up taking the trades, having a lot of unrealised gains but bringing back home nothing.... which is NOT ACCEPTABLE for me. It's UNFORGIVABLE to earn a decent amount of $$ and letting everything go because I thought the trade should have gone further. I like moving my stop to breakeven after I've taken my first partial After you've taken your first partial, that's when you can leave 20% for runners. You can either take the remaining runners out at your second target or Take half out at your second target and leave 10-15% for your last target The larger your account size, the more targets I recommend you have I also like moving my stops up after each target to make sure the trade doesn't go red Why do I use this scaling strategy? By taking the majority of my size off at my first target, it allows my strategy to keep a decent R/R rate, assuming I move stops to breakeven It also leaves my trading more stress-free since I have less of a position on. Allows for the trade to come back breakeven and I've already taken most off On top of that, I have 20-30% of my position as runners in case this stock starts to explode Doesn't happen often, but sometimes the remaining 20% ends up netting me more profit than the original 80% did. At the end of the day, it's up to you how you want to scale These are the methods I found most effective, depending on your account size and your strategy. Conclusion - As a beginner, I used to stick with 1 TP/1 SL only and that's how I brought home gains - Once my trading account reached the 6 figures threshold, I allowed myself to have 2-3 TPs but I was taking most off the table at the first TP level and automatically moved my SL to Breakeven - Adding to losers (aka the Dollar Cost Average method) also called martingale is a solid way for most beginners to depart from their money quickly - I'll make another article on martingale and why I think it's not for everyone
Education
by Daveatt
28
INVESTING VS TRADING VS GAMBLING | Know the Difference Hey traders, In this post, we will compare investing and trading with gambling. 📈Investing Investing is the act of putting money in a financial market with the expectations of a long-term positive return. The investing decisions are usually made using fundamental analysis. The main goal of an investor is to predict the long-term market trends and benefit on them. Professional investing also involves assets allocation and diversification aimed to hedge potential risks. 💱Trading Trading is the process of selling and buying financial instruments expecting a short-term (occasionally, mid-term) profit. The trading decisions are usually based on technical and fundamentals analysis. The goal of a trader is to predict local price fluctuations and catch them. Professional trading implies strict, rule-based actions following a trading plan. 🎰Gambling Gambling is the act of betting on a specific event with the expectations of winning some value. Being completely luck-based, gambling usually involves get rich quick schemes and pursuit of easy money. What differs professional trading and investing from gambling is the fact that professional trading / investing involves objective analysis and strict planning, while gambling remains purely intuition based. Unfortunately, most of the market participants pretend that they trade and invest professionally while acting as gamblers in fact. Remember that long-term, consistent profits can be achieved only with the plan. Your intuition may bring some short-term profits, but in a long-run it will most likely lead you to a bankruptcy. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
10
Pinbar Forex Trading SystemPinbar Forex Trading System — a popular strategy for entering and exiting positions that is based on the particular candlestick pattern and the following price action. The Pinbar (also known as "Pin-bar" or "Pin bar") pattern was first introduced by Martin Pring in his Pring on Price Patterns. Features -Conservative strategy offers low-risk high-yield opportunities. -No-loss rate is pretty high if break-even is applied. -Rare occurrence. -Timing is critical. -Support/resistance is difficult to formalize. Strategy Set-Up Any currency pair and timeframe should work, but longer-term timeframes (such as H4, D1 and W1) should work better. Pattern consists of three bars: the left eye, nose and right eye. The left eye should be a bar up for the bearish Pinbar pattern or a bar down for bullish pattern. Nose bar should open and close inside left eye, but its high (or low, for the bullish set-up) should protrude much farther than left eye's high (or low). Both nose bar's open and close should be located in the bottom (top, for the bullish set-up) 1/4 of the bar. The right eye is where the trading happens. An additional condition for the good pattern set-up is the strong support/resistance level formed either behind the eyes or near the point of the nose. The stronger are the support/resistance levels you incorporate into this pattern, the more accurate it will be. Entry Conditions Aggressive entry option is to enter a position when in the right eye price retreats behind the left eye's close level. Conservative entry point is below (above for bullish set-up) the nose bar. Exit Conditions Conservative stop-loss can be set behind the nearest support/resistance level behind the eyes. A less conservative approach would be to set stop-loss to immediately behind the nose bar point (in this case, your reward/risk ratio may suffer). Conservative take-profit can be set immediately after the left eye low (high for the bullish set-up). Aggressive take-profit level may be placed farther — to the next strong support (resistance for bullish positions) level.
Education
by Anbat
Big Bank Imbalance Strategy (Go With The Flow) Example on 1 hour EurChf Chart for Friday ( sell trade, but can do on buy trade too)… its Friday: Don't be greedy). Note the following: 1) Big Banks selling (note large 1 hour candlesticks- on charts)- only people that can do that are big banks and/or institutions (not retail traders). 2) Two areas of sell imbalance (they must be filled with buy either today or in the near future). In all probable's, I would side with today and big banks are just selling to buy back later today - because the big banks do not want many imbalances when Forex is closed (and/or the weekend) 3) Look for a higher bullish LOW and higher CLOSE candlestick for your reason to enter into a long and/or setting up buy trade soon. 4) After the #3 above has happen (wait patiently)- why? because that candle happened at 3:00 a.m. and/or after Tokyo closed and before NY session opened. London session does three more hours of accumulation 1 hour candles (see large bottom & top wicks- both buying and selling pressure)- so all big banks and institutions are happy with the current price at this moment. 5) When NY session opens, what happens? Big banks and institutions are buying (large candles)- your sign to by was actually the 1hour sell candlestick (red) before the large blue candlestick happened. Why? because the big banks and/or institutions are trying to tell you to sell, but you being smart did not fall for that one, right? You said above price action are two areas of sell imbalance that I except to be fill today, so I will plan to buy when that pa reverses and goes north and/or blue above that last red candlestick. *On Chart related to its Friday & both scalpers and/or day traders should not be holding over the weekend. Why? because Forex is closed and when Forex starts back up- their could be small or large GAPS which take you out, which you have zero control over. Trading is 100% on you, your decisions only- control as much as you can- do not give your broker and/or big banks or institutions any more control then they already have in the Forex world. If you are scalping and/or day trading these Big Bank imbalance strategy should be 1:1 or: 1:2 risk reward maximum. You can trade this of course buy or sell on pairs. You need to always use risk management. This trade would have seen you doing a 1:1 RR with 17 pip stop vs 17 pip target. Trading is not about pips that you make, but the risk that you take= PER TRADE.
Education
by Anbat
How Does Forex Market Work?How does Forex market work? As a trader, you decide if you would like to buy or sell. The broker finds someone who would like to do the opposite and they introduce the two of you. The broker then takes a small cut (spread) of the transaction price for arranging the connection. Foreign exchange is largest liquid market in world, but what does that mean? Has a daily roll over of 6.6 trillion dollars. It means that the broker can always find "the other side" very easily and quickly. This is good if you want to enter a trade immediately and great if you wan to get out of a trade very quickly. Best thing about Forex is: Markets which are not liquid, or have low trading volume, can be difficult to trade. Imagine you were in a losing trade and you wanted to get out of it. If the broker can't find "the other side" then you are stuck! That will not happen when trading FX. There is always someone on the other side- a major benefit. Forex exchange is essentially for international business. Forex markets include governments, businesses & investors. Forex, also known as foreign exchange or FX trading, is the conversion of one currency into another. It is one of the most actively traded markets in the world, with an average daily trading volume of $6.6 trillion. Forex, or foreign exchange, can be explained as a network of buyers and sellers, who transfer currency between each other at an agreed price. It is the means by which individuals, companies and central banks convert one currency into another – if you have ever travelled abroad, then it is likely you have made a forex transaction. While a lot of foreign exchange is done for practical purposes, vast majority of currency conversion is undertaken with the aim of earning a profit. The amount of currency converted every day can make price movements of some currencies extremely volatile. It is this volatility that can make forex so attractive to traders: bringing about a greater chance of high profits, while also increasing the risk. Unlike shares or commodities, forex trading does not take place on exchanges but directly between two parties, in an over-the-counter (OTC) market. The forex market is run by a global network of banks, spread across four major forex trading centers in different time zones: London, New York, Sydney and Tokyo. Because there is no central location, you can trade forex 24 hours a day. Most traders speculating on forex prices will not plan to take delivery of the currency itself; instead they make exchange rate predictions to take advantage of price movements in the market. What moves Forex markets? The forex market is made up of currencies from all over the world, which can make exchange rate predictions difficult as there are many factors that could contribute to price movements. However, like most financial markets, forex is primarily driven by the forces of supply and demand, and it is important to gain an understanding of the influences that drives price fluctuations here. Central banks, News reports, Market sentiment, Economic data, Credit ratings.
Education
by Anbat
2
WHY 95% OF TRADERS DO NOT SUCCEED? The evidence suggests that only a very small proportion of day traders makes money year over year. There are certain patterns which may separate profitable traders from those who ultimately lose money. And indeed, there is one particular mistake that in our experience gets repeated time and time again. What is the single most important mistake that led to traders losing money? Here is a hint – it has to do with how we as humans relate to winning and losing. Our own human psychology makes it difficult to navigate financial markets, which are filled with uncertainty and risk, and as a result the most common mistakes traders make have to do with poor risk management strategies. Traders are often correct on the direction of a market, but where the problem lies is in how much profit is made when they are right versus how much they lose when wrong. Bottom line, traders tend to make less on winning trades than they lose on losing trades. Humans aren’t machines, and working against our natural biases requires effort. Once you have a trading plan that uses a proper reward/risk ratio, the next challenge is to stick to the plan. Remember, it is natural for humans to want to hold on to losses and take profits early, but it makes for bad trading. We must overcome this natural tendency and remove our emotions from trading. That will help you to be a consistently profitable trader.
OANDA:XAUUSDEducation
by UnitedSignals
5
WHY THE RICH GET RICHER The general trend, in a capitalist economy governed by private property, would be for the rich to get richer—for inequality to increase steadily over time. That had been true in the initial stages of industrialization and remains the fact nowadays. One reason: The wealthiest 1 percent put three-quarters of their savings into investment assets. By contrast, the middle class had 63 percent of their assets tied up in their homes, with home equity accounting for about a third since they have large mortgage debt. The differences reflect the greater share of high-yield investment assets like stocks in the portfolios of the rich and the greater share of housing in the portfolio of the middle class. Of course, the rich can afford to lose more—so they can take more risks and make more when times are good. But the lesson is clear: the wealth gap is caused in large part by the investment gap. Some other psychological reasons should be considered as well, they are nicely reflected on the chart above, so spend some time to examine that.
BIST:XAUUSD1!Education
by TopTradingSignals
38