A Trader's ReflectionReflection What’s a reflection? Do you love your own reflection? So many questions—with, yet again… different definitions. A reflection is the return of light, heat, energy or sound waves from any surface. “To fix one’s thoughts (particularly from the past) on something”, is also a reflection. When you reflect, you ponder, mull, think—reflecting is synonymous with “past”—In most cases, you can only reflect if it’s something from the past.
However, writing this particular journal entry, I thought of… “what our reflections would be like as traders”. Have you ever had to reflect back to—who you were before trading?, Well, I do sometimes, who am I kidding? I’m even doing it now.
According to our definitions, In the word reflection, we get to pick some words like: “The return of light, heat, energy or soundwaves”, “Fix one’s thoughts”… You know what this means?, The first definition, simply means: your reflection is how you feel at a particular moment, the energy you transmit at that point is reflected. That’s why, if you look in the mirror—sad, you will not expect to see someone happy in there. Whereas, the second is an escape from realty. That is, when you reflect you leave this particular plane, moment and travel back in time.
A Trader’s Reflection
As traders, our reflections are shown to us by the charts (market). Just like your energy is reflected when you look in the mirror, the same thing happens when you trade the market. Therefore, the adage that says, “whatever you sow, you reap”—is a perfect example.
The market serves as a: trader’s mirror, the light, heat, energy and soundwaves are going to be very visible when you take a trade. Similarly, you don’t expect to enter the market sad and expect a happy outcome. I want to re-quote Ernest Holmes. “The market is a mirror and will reflect back to both its observer, spectator or player—that which it thinks into it”. The way the market seemed to you, was actually the way you created it in your own mind. That’s the energy returned I speak on.
Dumb question, Have you ever looked in the mirror? Anyway, who do you see—Yourself or some imagination of yourself? There are times when I’ll imagine what I’d want to be in 5-10 years from now, I’ll look in the mirror and nothing’s changed. It’s like imagining your flying but your feet never left the ground. My aunt said, “it’s good to be ambitious”—but, ambition without action is—damnation.
On twitter, I remembered tweeting—“the market’s not responsible for your decisions—You are”. A trader’s reflection simply means, The subconscious replication of a trader’s non-verbal signals. Similarly, your reality as a trader comes from what you see in the mirror (market). In addition, What you hold in mind manifests—irrespective of your preferences.
The Reality
In reality, we actually trade people’s reflections…
Looking at the mirror, if someone were to tell you, “oh, woah! you look pretty” is that enough? It might not be if you don’t think you look pretty. Even if the person tried to give you reasons. Most traders consider their problems to come from outside conditions whereas, Albert pointed out—“We cannot solve our problems with the same level of thinking that created them”. Therefore, If a trader is feeling fearful, he can try to cover it up all he wants, but, his trading results will readily reflect his true feelings.
As traders, “you can lie to everyone but the one person you can’t lie to is—the market”
Took a break on Ruth Roosevelt’s blog. She made it known that, “Trading is a microcosm of life. What you do in life, you’ll do in trading”—A dirty mirror that’s made clean isn’t usually enough vision if one’s blind. We can fool everyone into thinking we’re professionals but not the market. Dude’s just so good at the detective job. You’ll get caught!
The market feeds off your energy, that’s why you can look at a market and say, “oh! I think the buyers are in control”, because, everything reflects. March 2020, the Covid beginning-era, the Nasdaq index and many other instruments dropped drastically. The market reflected the pain, fear, frustrations, and turmoil—every human was going through. What happened afterwards?, there was a massive decline. Energy is indeed contagious.
Dear Traders
In conclusion, Don’t be fooled, In trading, it’s not the analysis or predictions that matter—it’s your belief, thoughts and emotions. Once you take a trade with a messed up mindset, what do you expect would happen? You probably have a messed up outcome.
The market doesn’t have to read your mind to know what you’re thinking because—whatever you’re thinking reflects in your trading. However, most focus on the outward appearance because they think of social status, online gratification or they’re just good at marketing. Well, you can fool other people; who exactly are you fooling? The market does not create the ways in which you perceive it; it merely reflects what is going on inside of you in any given moment.
The annoying thing about this particular mirror (market) is that, it doesn’t speak or warn you. It just reflects; The great thing about it is: You get to know the truth.
Humans will lie, Your fake gurus will say anything so you can keep purchasing their course. The market, will reveal everything about you both good and bad. A good trader isn’t judged by his analysis or predictions; A good trader is judged by his outcome. Tell your gurus to start showing you “real” account histories and not trading view analysis. Haha!
Make The Market Your Teacher
Finally, the only guru you should be listening to is: The market. The market will quite naturally make you face what is inside of you on a moment-to-moment basis. What is inside of you could be confidence or fear, a perception of opportunity or loss, restraint or uncontrollable greed, objectivity or illusion. The market just reflects these mental conditions, it does not create them. I’ve come to very conclusion that—in trading, having a mind of your own is bliss. You must be a fool thinking your guru can 100% predict the market. Unless he trades billions (can actually move the market). We are all just mere spectators hoping to join the winning animal.
Trading Plan
Safe Haven Currency, How are they affected by global eventsHello everyone:
Want to talk a bit more about safe haven currency in the market.
Since the recent tension between Russia and Ukraine,
the safe haven currency could strengthen as a result of such uncertainty in the world.
We will take a look at some past history of these currency pairs,
how they react to the market at the time, and what could we reasonably expect in the current market conditions.
Safe Haven Currency
USD
JPY
CHF
It's in our interest to look for opportunities when a strong currency is paired with a weaker one.
This generally will move the price very impulsively with strong momentum.
Pair such as these below will potentially develop the best price action for good R:R trades.
AUDUSD
NZDUSD
USDCAD
GBPUSD
AUDJPY
NZDJPY
CADJPY
GBPJPY
AUDCHF
NZDCHF
GBPCHF
CADCHF
Always have good risk management when it comes to entering. Don't enter all the pairs, don't open too many positions,
and understand correlation between the currency pairs.
Thank you
DISCLAIMER:
-My forecast and analysis are NOT trading signals nor financial advice, you should not enter trades and invest solely on this information.
Jojo
How to build a Trading Strategy?Hey, fam, welcome on another educational post! The topic is the following: step-by-step guide to building a working trading strategy
The process of building a trading strategy that will lead one to the doors of consistent and profitable trading is a pretty difficult one and it takes quite some time and effort.
1) Firstly, it is crucial to identify what kind of trader you are. If you have plenty of time in your hands to to sit in front of the monitor and go through the charts 24/7, then scalping or intraday trading would be suitable for you. If you enjoy clicking “Buy” and “Sell” buttons and opening 10-15 or even more transactions per day, then two of the above listed styles would be suitable for you. On the other hand, if your timetable is packed with different activities all the time and you do not have enough time to sit in front of the charts, swing or position trading would work the best for you. If you are aiming for making big gains instead of small “quick profits”, then both swing trading and position trading can fill your needs.
2) Moving on to the next step, it is crucial to have a watchlist, or in other word, a "favourites" list. It is better to have a batch of 5-10 favourite tradeable securities, than trading random things all the time. Let’s bring a real-life example: Would you prefer having 5 pets and take care of them individually, or 40 pets? What we are trying to emphasise, it is better to make yourself familiar with a pair and be able to read it like a book. Moreover, it is much easier to monitor 10 familiar setups rather than 50 random pairs. Thus, take some time skimming through various setups, and add them into your watchlist upon “falling in love with them”.
3) Always have a clear entry and exit strategy, and always ask yourself the following questions before entering a trade: “Why am I buying/selling this security?”, “Where are my Target Profit and Stop Loss set?”, “What portion of my trading capital am I risking on this trade?”. Every trader has his or her own entry and exit plan. Try to thoroughly examine all possibilities and see what works best for you. For example: enter when a nice wick candle has been formed around the area of demand/supply that aligns with 61.8% Fibonacci retracement level, set a fixed Target Profit of 1:3 Risk-to-reward, set the Stop Loss below the formed Double Bottom .
4) Execute, journal, optimize! If a trade goes wrong, ask yourself a question: “What went wrong and could I have prevented it?”. Make some modifications in your plan if necessary.
5) Never underestimate fundamentals and heavy economic or real-life news. Some examples are NFP, Markit Manifacturing PMI, quarter/annual GDP growth news. Moreover, wars/conflicts between two countries are crucial to be aware of as well. These heavy news have it all to mess the market around. Therefore, always consider these events, make your fundamental analysis and trade accordingly. Move your Stop Loss to the Breakeven point, or even exit a trade earlier in loss if needed, in order to stay safe before the news hit.
6) Last but not least, and most importantly, always stay patient, disciplined, free of emotions, cold-blooded, and remain loyal to your trading plan! “But my plan is not working. I endured 3 losses in a row. Should I immediately change my plan?”. The answer is a big fat “NO”. Instead of changing your strategy that took you so long to put together, think of identifying the week points and optimizing the plan.
How to REALLY Become Profitable ? 🔥 (Education read)
Hello traders , today we are going to talk about a very delicate subject. Yes Tradingview is a place to share technical analysis with the community , however we should also share from our experience , what we believe it can bring value to the table and help other traders worldwide to become profitable. In that way , make sure to give a like and comment , eventually this post can become an editors pick and so reach a maximum amount of users of this platform :) let's grow together!
Okay now let's get into it ?
How To really become profitable?
The average human is not wired to properly trade the financial markets..We are wired in the worst way to be a consistently profitable trader. Trading goes against the human psychology. To all those learning to trade the financial markets, this game is not what you think it is. Most books and courses simply do not paint an accurate picture of the reality Most of traders think the only way to become profitable is by working hard and focus in the technical strategy and blindly following signals or mentors.
The truth is that all of that is absolutely wrong. Here's a list of 6 elements that from my experience are game changers to slowly extract consistent profits from the market. Do us a favor and share another in the comment section that you believe is important. Our goal is to make from this post a place to help us each other from our experience. okay , first and most important
Risk Management
That is the number one killer and doer.
For most traders; they open a position size much larger than they can handle or much larger than what is appropriate for their account size. They want to make miracles with small accounts. Do not chase the money , chase the skill. In that way money will eventually come. There are investors ready to trust you 6 figures if you prove them you can handle it like a pro. The problem is that by not really managing your risk you will let emotions run your perception. When emotions increase , accuracy decrease. Trading is a Game of probabilities you can do everything right and end up wrong and you can do everything wrong and end up winning.There is a random distribution of winning and losing trades in that way if you risk more than expected and the outcome is not in your favor you will end in a very bad situation , risk managemet is simple. You just have to Make sure to have a proper position size and manage your exposure or you will have nothing left to manage.
Proper Psychology
After all these years, I would say that the majority of trading the financial markets is primarily a psychological painfull skill. It is not an advanced holy grail system or strategy. For most traders trying to chase consistency, they believe their system always needs changing, and they focus more on the "analysis" side by reading more books and taking more courses, hoping to find that secret system. The system can be based on a coin toss, and with the proper psychology, this trader can outperform a psychologically-flawed trader but is using one of the best analytical methods. There are many psychological aspects you should focus. We can talk years about it. I advise you to read Mark Douglas for that. One of the most important things is to Dissolve all your fears . You must understand how it runs your trading.
You must understand and have a deep talk with yourself to see the way fear control your mind. here's 4 types of fears when it comes to trading : Fear of being wrong , Losing money , Distribute profit, Missing out .
By other side you must understand the neuro associative conditioning that created good trading habits and self destructive habits.
Here's some examples:
Pro trades see retracements as opportunity while newbies see retracements as threats
Pro traders have hope when they have a winning trade and despair when they have a losing trade while newbies have hope when they have running a losing trade and despair to distribute profits when they have a winning trade.
there is pleeenty of examples.
Discipline in healthy external habits.
As Paul Sartre said, we are our choices.
What we do with our 24 hours will define the kind of person we are. This is all about changing and adopting proper habits in your pro and personal life.
If you do have side issues like bad habits or personal issues in relation with (girlfriend / parents /friend / work etc.. ) they will make it difficult to execute a proper system in your trading. All those bad vibes will send resistive energy and when you get this energy you can either shut down or step through and doo exactly what you are supposed to do regardless. Take care of your personal habits and problems.
Avoid bad habits that drain your energy and focus here are some:
Wake up late and be a lazy procastinator vs. 5 am morning and doer
Partying 24/7 vs. Learning
Being lazy vs. being a doer.
Social media vs/ productivity.
Trading is not made for the undisciplined human being .
Before getting serious with trading, I I used to have a lot of bad habits that honestly, I’m not proud of it. But everything can change. The more I fall in love with the process and taking care of my habits and more my trading improve and happier I become. it's all about building a proper internal well being environment.
I will never meet a good trader or sucesfull business man or entrepreneur that is lazy , procastinator , that wake up late or that don't care about it's personal life.
Think in term of probabilities
This is a very important one , this one made me profitable. Mismanaging risk is a bad habit. Most of traders have the worst trading habits because they asume the outcome and they don't like to be wrong. They assume they know what the outcome will be, so they bail out of trades. They think it will make them more money, so they risk more equity in one single trade because they believe this trade is a high probability one that it will make them money. They have a trade by trade approach. they execute with a Can't lose mentality
They assume that after a few wins the next trade is likely to be a winner, so they are double up. They assume that after a few losses the next trade is likely to be a loss, so they do not execute or they reduce the risk. it's okay we all have been there.
By adopting simple proper ''SERIES OF TRADE APPROACH '' your outcome will change and you will become profitable in the long run
This is the approach that a few minority of the traders use. This approach is not based on predicting anything; rather this is a precise pre-defined system of pulling the trigger when your system or edge presents itself, and the outcome of the trade is irrelevant . You care about the outcome of a series of trades.
We take a series of trades, and we are entirely focused on the outcome of the series, and NOT the outcome of each individual trade. The outcome of each trade and attempting to predict the outcome of each and every trade is an uphill battle because humans are designed to expect what they predict. It is difficult to implement your system or edge in the markets flawlessly if we become attached to any one single prediction. The truth of the matter is that we do not know what will happen next; the only certainty is the markets uncertainty.
Having your own personal predefined edge
In fact, mentors can transfer you knowledge but never experience. You need to use their experience to create your own plan , you need a strategy and you need a flawless execution. there is no doubt either it works or no. make sure to set rules to find good trades execute those good trades and let those good trades play out. Trading is very personal.
Laser Focus learning curve
Those who make it in this business were laser-focused; they made a decision to either be right or wrong. A laser shines a coherent beam of light and is powerfully focused on a single point. That point will undergo immense heat or pressure. Same applies to learning to trade. It requires all your energy to be put forth on a single objective.
Compare this with a light bulb or the sun, which shines its rays outwardly with its energy distributed in all directions. You will barely feel the heat as the energy is unfocused and dissipates accordingly. This applies to those traders who have issues They doubt their decisions and jump from one strategy to another they chase the holy grail they change from system , they buy multiple courses , change of style etc..... There is million ways to make money in the markets but only you will make it with your own way. My advise is to Focus in one pair or few pairs, one session , a clear defined profit system, one pattern a clearly defined type of trading and that's it.
Make a decision, and instead become focused like the laser beam on what it is that you desire to develop, and you are more likely to achieve your target.
In order to keep in mind this remember this quote of Bruce Lee “I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times.”...
Thanks for your attention , hope it was helpful . Please make sure to support this idea and comment what you think about . Let's reach editors pick attention and grow together.
5 Possible Outcomes Of Your Trades | Trading Basics 👶
Hey traders,
Depending on your actions, you can get 5 completely different results
taking just one single trade.
1️⃣The first outcome is a small win.
By a small win, I mean a winning trade producing up to 2.5% account growth.
2️⃣The opposite situation leads to a small loss.
To me, a small loss is a losing trade producing up to -1% account decline.
3️⃣Occasionally once the price starts moving in the predicted direction, one can protect his trading position moving his stop to entry and making a position risk-free.
Being stopped out such a trade produces 0% profit. The level where the position is closed is called a breakeven point.
4️⃣If one perfectly predicts a future direction of the market and opens a trading position accordingly, occasionally, a huge profit can be made.
A winning trade producing more than 2.5% net account growth is called a big win.
5️⃣Being wrong in the predictions, however, one can adjust and trail a stop loss not letting himself be stopped out. Such behavior may lead to a substantial loss or even a margin call.
A losing trade that produces more than -1% net loss is called a big loss.
❗️Learning how to trade, I strongly recommend you eliminate the 5th outcome. Managing not to lose more than 1% of your account will substantially improve your trading.
❤️Please, support this idea with like and comment!❤️
Trading is like a bus journeyYes, a bus has crashed!! – the crash test driver unfortunately crashed into a forest. Don’t worry no one was hurt! 😉
Let me tell a bit of a story. I hope it resonates with some.
I have been trading over 5 years and I have observed many people failing including myself.
A big reason people fail is the lack of a plan and a journal.
We need a plan to follow to ensure we know what to do.
We need a journal to illustrate whether we executed the plan correctly. Now this may sound easy, and it is not. We, as human beings, do not like to follow rules. Can everyone relate to driving over the speed limit? Have you ever driven over the speed limit? We think we know better even though we know the speed limit is there so if we do hit someone the likelihood, they have a serious injury is less if we keep under the speed limit. This also relates to us. If we keep to the speed limit, we are likely to be less injured in a crash.
I have, over the years seen many training groups and organisations, and one of the items which is glossed over, in my opinion, is the insufficient detail on how to journal.
“It’s just an excel spreadsheet”, I hear you say, to record what you have done right? No its not.
You have rules to a trade, and you need to know whether you traded according to the plan, I hear you say, “A checklist, ah yes I know this”. How many people fill out a checklist before they take the trade? I am sure that the number that really do this is very small.
So, we have 90% of people failing (this is a statistic we all know I hope) few people keeping to the rules, and hardly anyone making a journal correctly that records whether the rules of said trade have been met. Can you relate with this? Also, a journal should record how we felt at the time of taking the trade, and what happened as it developed, so we can see perhaps what psychological barriers we have.
Let me give you an idea. What if you had a journal that details the rules for each trade, and for each trade you had a built-in checklist to encourage you to follow those rules? Do you think this would keep you on track to follow the rules? No - you still will not follow the rules. After reinforcement and practice, the chances you will follow the rules increase. This is what it is about. Reinforcement and practice. A successful trade set of 25 trades of you following the rules, will do wonders to your performance.
Where does the crashed bus come into this story? We are going to bake a cake first before the bus!! Everyone loves cake! :-) .
Now, another problem which repeats again and again, is if I say here is a cake - people go I want to make a different cake. Why is this? I have given you a specific cake to make and you want to make a different one. Now, what I would ask you, is, do you know what the success rate of you baking your own cake is? You know that - ok, go for it and good luck. Just write down the recipe and follow the rules of making it.
Think of this another way, here is the bus. I know you are dying to know where the bus comes into the story.....
"You are standing at a bus stop and waiting for a bus which has your name written in big letters on the side. A bus comes along, it doesn't have your name on it, and you decide to get on, always optimistic, it might just go the right way. The bus does not go where you want it to, and everything goes wrong. You get lost in the forest and the bus crashes, bad crash test driver!!!.
Now, the person that waited for the bus with their name on it, when they step on the bus they find a chest with money inside, wow, that is why the bus had their name on it.
Now, you are on the bus, when do you get off? As the bus bounces down the road, the chest starts filling up with more money. You need a plan to stay on the bus and you need a plan to get off the bus - you take the money with you, I would hope!! ;-)
In terms of trading, do you exit your trades too early and then watch the trade keep going for lots of percent and think only if? There are multiple ways that can be used to trail. Develop rules for trailing and follow them. You get off the bus when your rules are met to get off. If you have no rules, you are likely to let profits disappear, get off to early, get stopped out for a loss.
Do you get worried of missing out? The good news about busses(trades) there will be another one along shortly. There is always another bus with your name on it.
Do these concepts relate to you and your trading? Impatience, not following the plan, think you know better than the back-tested results?
If so, you know what to do. Journal each trade with a checklist to encourage you to follow the rules for entry, trailing and exit and you will see your performance increase. It will take time and practice. Having rules will make you less emotional to react in an adverse way and more accepting of a mindset “this is what I do!”.
If you see your entry requirements are satisfied, jump on the bus. Trail according to your rules, to a point, then get off and collect profits.
Have no deviation from your mission to get on the right bus and to get “home” in one piece.
I hope this analogy has been helpful for you.
Good luck with your trading!! All my best.
Pyramid of Trading: a step-by-step guide to successHey, fam! Happy Saint Valentine's Day and welcome on another educational post. The topic is the following: a step-by-step guide to success in trading.
We all start somewhere, right? Something grabs our attention and builds instant interest that makes us persuade a specific thing. If you decide to interview a number of traders and ask them reasons why they had decided to become a trader, they will all give you various answers. One will tell you that his motivational driver was a random guy on Instagram that drives a Lamborghini Urus and claims that he is a day-trader. Another one will state that he has always been aiming towards building a great career and becoming financially independent and so forth.
Regardless of the background, all of them had started their trading journeys having the same drive, enthusiasm, passion, hunger, and motivation. One cannot simply succeed in this sector without being ambitious and eager enough.
While the above stated characteristics serve as basis of motivation, the next tier is one of the most important ones, as it sets the ground for all upcoming success and profitability. It is crucial to keep constantly learning, brainstorming, making yourself familiar with new stuff, applying the learned in practice, and adapting to the changes that take place both in your life and in the market.
After the fundament has been set, it is time to move to the main part: Planning, Executing, Journaling. First of all, if we have reached this particular tier, it means that we already have e strategy that we stick to and refrain from changing every week/month. We use this strategy to plan our trades and execute them once all criteria have been met. We journal all of the taken trades, both winners and losers.
Journaling helps us optimize our strategy and make some chages in it if neccessary. As market conditions change quite rapidly, our strategy and business plan should be modified as well in order to account for those changes. In addition, regardless of anything, we remain patient, cold-blooded, and trust the process.
After climbing all those tiers and reaching the very top of it, we can finally say that we are profitable and consistent, and we can enjoy the fruits of our own labour.
Of course, it is never as easy as it may sound, but long-term vision, patience, and ambition can take him or her to the doors of profitability. Thus, we encourage all fellow traders to keep grinding and strive for prosperity!
With love,
Investroy Family
A Chat With Traders: Traders And Psychology With JohannaJohanna a 22 years old forex trader—with an enthralling background and compelling story. The Sudanese trader’s story starts from: Cameroon and Norway. Johanna was born in Cameroon but, bred in Norway.
According to her, “emotional intelligence is a crucial part of forex trading”. Albeit, traders don’t really talk about it. However, she prefers to trade in a converse way in relation to other retail traders. “I didn’t know I would be so affected by psychology in this game”, she mutter. In addition, “I’m a risk-taker. I love taking risks”.
Who is Johanna?
Originally from South Sudan, born in Cameroon but raised in Norway. I am currently both: a dental student and an upcoming day trader. Was first introduced back in 2018 through another female trader posting it on Instagram but—because of fear and lack of motivation, I did not take it seriously until late 2019.
Had jobs in different branches: from store employees, elder homes, and customer service. None of them have really fulfilled my perspective of living my life on my own terms.
So when I got introduced to trading, I knew it could give me the freedom I was looking for. What I didn’t first know, was the work, effort, and knowledge that was required. My first initial thought was to give someone else my own money to trade for me whilst learning, just for me to become a victim of scams on my earliest day.
Moving forward, after almost 10 months of trading live, I’m looking to get the right skill needed for me to handle the market in the long term but also educate and inspire more females to join the industry.
Woah, Johanna that’s some kick wass intro. I wouldn’t continue until this question is asked though. How long have you been trading? How did you learn forex and come to know it?
It has already been year on a live account. But, I was 5 months on demo before that.
Johanna’s On Trade And Psychology
The previous chat I had, inspired this particular question. Social media has allowed us as traders to have a wider footprint outside of the forex industry, what do you think your impact is in the industry?
The industry is heavily male-dominated and I really want females to contribute and represent another side. I’m also big on learning the right skills; from the right people so you don’t get scammed easily in this industry.
That’s you speaking from experience there. Right? Do you have a special way you trade this particular pair? If yes, can you share a tip for that pair?
My approach is a bit different: as I look to trade the strongest and the weakest pairs. I will therefore look for these pairs during my market preparation—this will also help me to understand the directional bias for further analysis.
Hey, Johanna—are you a technical or fundamental fan?
Technical and fundamental. I personally feel like both are important to have an overall look of the market and why things happen the way it does.
Without a doubt. Loving the way you’re handling this questions. What is your go-to strategy? I would also love that you explain: why that is your go-to. Do you have a major reason why you chose that strategy and how it has helped in improving your trading.
I like trading the opposite of what retail traders generally do, and as an Intraday/Swing trader, I prefer to look out for major liquidity grabs and trade from those areas.
“The opposite”. How can you tell—Just a curious cat here. By the way, Who/what inspired you to start trading? If you have a mentor, what’s their name and what about that individual inspired you?
Haha. The freedom to be able to trade from wherever and whenever I want is—definitely the inspiration. Those who inspired me are: Melisa Hilma, Cue banks, Forex with ally, and the Gold father
It’s research time for me—I guess. However, still on psychology, What keeps you sane? Because I won’t lie—trading can stress you out and some even get depressed. So how do you overcome this?
Hmm. I trade with an amount that doesn’t affect me, adjust my risk management to a level where I feel comfortable trading, and ready psychology books both for trading and personal development.
Okay, that works. Especially the reading part. I know this particular question may sound weird. The reason asked is: as humans we have the whole “act now, think later” thingy going on even when it’s not the right thing to do. So, do you have a trading “guilty pleasure”? If “yes” what is it and how do you handle it when it happens?
Made this mistake a lot in the beginning. Albeit, I’ve tried to work on being very strict and journal every time—I might do this mistake to then go over it during the weekend. If greediness occurs, I really need to take a step back and look at my plan, checklist, and rules before taking a trade.
Someone’s disciplined. Tell me—what are the three traits you have that keeps you successful? And what three traits do you hope to have in trading that would make you a consistent trader?
A big risk taker, I love taking risks. Being consistent and systematic as a person, also helps me become a better trader and the appetite to always learn something new! As a trader you meet so many challenges, you can never be bored!
Truth to that. It’s amazing the discoveries one can get from just trading. Speaking on bore-dom—When you’re not trading, what are you doing?
I study, read and I like meeting friends. In addition, the Corona virus has also made me start watching some new tv shows. I love to bing watch them on: Netflix and HBO.
Yeah being hooked on some shows as well. Tell me about a time you disagreed with a decision. A time you didn’t follow your trading plan. What did you do?
There was this one time where I did something. Though, I do not recommend it. Took a trade into a news event. That’s personally against my rules. I still did it and it went away for a while before it reversed and hit my stop loss. The worst part was: I was trading Nasdaq100 (indices) that moves very fast and can easily blow up your account with one bad move.
Eish! I can definitely relate. Nasdaq’s my field. How do you handle pressure, impatience, fear, doubt and greed in forex?
You know what, I don’t work well under pressure—so, I can’t be dealing with anything that might pressure me to do something outside my plan. I’m actually a very patient person and I haven’t really rushed in the market. Things take time and I accept it. I might doubt myself sometimes but I keep thinking that others have done the same but they are now in better situations. Same thing with greed. Greed will test you in the market but, taking control of that earlier in the trade will help you a lot. I take what I can from the market and I’m happy with that.
Well said. Johanna. Let’s visualize now. So what would you want your forex dream to be like (in details).
Too many dreams. My forex dream is just one of many things I need to accomplish. Being financially stable from forex is the first step, but investing in other assets and businesses is as important as my drive to learn forex.
Investing, compounding. A great dream. Who is one person/academy you think Neophyte or everyone should follow and why?
Really look up to Melisa Hilmi, the first person who introduced me to forex. She has a genuine drive for the market and has an amazing course from beginner stage to advanced. Also, she has an amazing track record, history and I appreciate people who do their own thing.
Haven’t really heard of her. Another assignment for me. What are you biggest strengths in forex and What’s one thing you think you are very good at in forex?
I’m a big risk-taker. This makes me less emotional when I trade: as I’m not attached to money—the same way as many might be in the beginning.
“Big risk-taker” That means you probably won’t relate to this question—But, Have you ever tried quitting? If yes, what did you do about it?
Yes. I took 2 months break after I got scammed and was really depressed. I got back up knowing that it was just a mistake. Trading is still something I should be able to try out but by myself.
Ouch. So sorry about that. By the way, speaking on losses—What was your greatest loss, how much was it?
My greatest loss so far is: $6000 in 2 days.
That’s crazy. What motivates you?
Being able to change how I and my family live. My younger siblings motivate me—even more. I want to give them much more than what I got when I was younger.
Aww. That’s so sweet. In trading, how do you manage a trade when in it?
While the trade is running, I make sure I have alerts on areas of key levels. I might check it one time every hour and might adjust my stop loss to make the trade risk-free.
I’m curious now. What’s your trading plan? And what is your go-to assess class (what pair(s) would you consider are your favorites) and why do you prefer these pairs?
I start off by looking at major news for the day/week and look out for events that might affect my trades. Most of my market preparation for the week happens during the weekend and I will focus on only executing my trades after that. I look for high probability trades and I have a checklist I mark off before, during, and after the trade. They include: my entry rules, exit rules, risk management strategy, and how I will manage my trade while it’s running. My favorite pairs are: GBP and NZD pairs.
Johanna speak on the Industry and It’s Newbies.
Hope to see your watchlist someday. I always ask this particular question. What’s your take on Neophytes that want to learn forex? Do you prefer they paid for the knowledge or stick with YouTube videos and free materials.
Spent a lot of time on YouTube and it helped me but—you should also take a course: as the information can be overloaded with free materials.
Yeah. Lots of free courses everywhere. Learning everything can be quite exhausting. This may sound “cliché” but why forex? What is your major reason for choosing forex?
Not funny but, I was first scammed in the crypto industry—I backed off from that. Then forex seemed like a reasonable market for me as it involved more than just studying currencies.
Lot of scamming on your part. Moving forward. We all talk about trading psychology, what can you say about that?
Didn’t know I would be so affected by psychology in this game. Pay attention to every move that affects your mindset and work hard on improving it.
Needed to hear that from you. Because, I think psychology is one of the most important—if not the most important part of trading. So, that’s why I’m laying emphasis on it. What are your trading rituals and how has it helped your trading?
When looking for high probability trades, I only take trades that matter hence—why I don’t need to take many trades every week. I stay out of bad markets and back-test my weekly losses.
Back-testing, important. What are your trading aspirations? I know many trade for “financial freedom” but what happens when that’s achieved? What do you plan on doing with trading?
Plan on making an educational space. Not just within trading, but also in finance. There are many opportunities out there: to better yourself financially. However, I see many people don’t take that chance due to: either lack of experience but also fear of losing money. I want to motivate more people to go for what they want.
Good-luck on these aspirations Johanna. It’s a great idea. What would say is your “win-rate” and what really drives results in your trading?
I would say I have a win rate of 68-72%. My results are driven by hours of back-testing different pairs and their movement.
Not bad really. Did you have a job though. If yes, What was your salary in your last job before forex? Was leaving it for forex worth it and why?
$1300-1700 a month. Definitely worth it. Not looking to go back to a corporate job anytime soon.
Haha. Forex stole you away. Tell me how you think other people would describe you. What do you want to be remembered for in the industry?
Very social and outgoing. I want to be known for someone introducing the market in a different way by: showing them both obstacles and good days. There’re too much fake lifestyle on social media.
Well, most are great marketers. Others, for social status. Do you keep a journal? If yes, what does it consist of?
Yes, I do. I have different sections where I journal my market, pips achievements, losses & wins, my risk percentage, and personal processed thoughts I had during the trade.
Nice. I’m really grateful for your time. Although, I won’t be leaving till you tell me about the toughest decision you had to make in the last six months. Was it a trading decision? If yes, tell me how you handled the situation.
No worries. Quitting my last job. It was a hard decision but I knew it was the right thing for me not only to pursue my trading dream but—also be able to focus on things that make me happy. I don’t regret it at all.
That’s tough. How would you describe your ideal work environment?
My ideal work environment is essentially an office filled with other female traders working to help and educate other upcoming traders like myself on their journey.
Yup. You’ve definitely got a great belief system. I’ll be looking forward to this Ma’am. You know we have the Neophytes now in the industry. In fact, more Neophytes are trooping in. What’s your advice to them and what would you recommend they start with?
Simple. Throw away the whole “I’m going to become rich in a few weeks”. Focusing on the money aspect will really turn your motivation off in the beginning as: you don’t even have the skill set. Focus on the skillset, and the money will come along.
Process first, then outcome. You couldn’t have said it better. What would you consider to be your biggest forex achievement? Tell me about a forex accomplishment you are most proud of.
When I was profitable enough to quit my job. It takes time, and I’m nowhere near where I want to be but—I have at least come a long way.
Positivity goes a long way. Do you have weaknesses—What are your forex weaknesses? How do you plan on going about them? Have you succeeded in doing that?
Social media can be a very scary place and as an upcoming trader, you will encounter a lot of different things. Comparing myself to other traders is a weakness of mine, but I keep reminding myself that their journey is different from mine and we all have our own path. I don’t really look at other traders that much anymore and just focus on myself and my own journey.
The media, if used wrongly is a deadly disease. Proprietary firms are in existence now. Do you trade for any proprietary firm? If yes, which one and how is it going?
No, not yet but I’m looking to take the FTMO when I’m ready.
Finally, before I leave you Johanna. How long do you plan on trading forex and Where do you see yourself in five years with forex?
Plan to stick to my written rules and risk management. I also look up everything that I don’t understand and learn from it. Progress is my everyday mission.
Combining both Trailing Stop and Stop Loss in percentagesBoth a trailing stop and a stop loss are necessary tools for every trader, for locking in as much profit in any given trade, while on the other hand minimizing the risks involved in trading.
I started to write this scipt to give an answer to many traders who wanted these two tools combined, but didn't find any way to program this.
TV has some shortcomings in the built-in functions regarding this topic. You can use 'stop' and 'limit', or 'loss' and 'profit' and even functions with trailing stops. But all of these lack the flexibility of the use of percentages.
I used many ideas of the community, and with this scrip I want to give back to the community.
The strategy is just a simple crossing of two Exponential Moving Averages, so do not start trading based solely on this script.
Also keep in mind that no two assets are the same, and adjustments should be made in the configuration for every asset.
This script should be viewed as a template, just take out the chunks of code you need. A savvy programmer can undoubtedly implement a 'take profit' of 50% halfway down the trade.
The features are:
-Everything is easily adjustable through the configuration section
-2 EMA's which form the strategy to go Long or Short
-Trailing stop, which adjust itself every bar according to the configuration
-Stop loss, which uses the entry price of the trade and stays at the same level according to the configuration
-The chart provides a visual reference for the levels of both stops
Happy trading!
How to Construct Your Trading Plan 2.0 Hi everyone:
Today let's go over a trading plan in more detail. I have made an educational video on this before, and many have asked me to create a more in depth breakdown on this topic.
So let's take a look at what topics to include in a trading plan.
First, what you should understand is there are no set guidelines of what exactly you should include in your trading plan.
Most traders will have different approaches on this topic, and some will have similar ways of constructing it.
What is important is this is something you will look at on a regular basis.
You will add, remove, edit your plan so it is the most up to date with the information you want to include in.
You should NOT however, just copy someone else’s trading plan, since it won't be applicable to you.
Below I have outlined the 6 main topics that I include in my trading plan, and I will go over each topic in more detail on what can be included in.
Personal Goals, Emotion/Mindset, Changes
Trading Checklist
Trading Quotes to reflect on
Trading Past experiences, mistakes, and lesson
Trade Enter Criteria
Trade Management
If you have any questions, feel free to let me know :)
Thank you
Ichimoku Cloud - An All in One StrategyNYSE:GME
The Ichimoku Cloud is a collection of technical indicators that show support and resistance levels, as well as momentum and trend direction. It does this by taking multiple averages and plotting them on a chart. It also uses these figures to compute a “cloud” that attempts to forecast where the price may find support or resistance in the future. ~Investopedia.com
Ichimoku can be a strong tool (or set of tools, really), to help with entering only the safest plays, as well as providing the confidence to stay in them.
Using $GME from 2/8/22, for example:
Using the 15 minute chart, you wouldn't expect a long trend from the setup, but it did provide an opportune entry with plenty of confirmation.
Lagging Span (Purple) - Lags behind price by 26 bars. Above the cloud is bullish, and below is bearish.
Price exited the above the cloud, which is a buy signal.
Conversion Line (Green) broke above the Baseline (Red), which is a buy signal.
Conversion Line (Green) rose sharply, which signals a bullish trend.
Price and all signals occurred above a green cloud, which is also bullish.
All these signals together gave confirmation to go long on $GME at around 11:00am EST. For greatest confirmation, a trader should not enter the trade on simply 1 or 2 signals, though this may be useful for scalping opportunities. The true purpose of Ichimoku Clouds is to identify a possible trend, confirm the trend, enter the trade, and stay in the trade as long as the trend has strength.
As price remains above the Conversion Line (Green), the Conversion Line is also very distanced from the cloud, and the cloud remains green, the bullish trend is still continuing.
Entry levels for this trend would be testing support of the Base Line (Red) and the top of the cloud itself. Though loss of those level indicate the trend is weakening.
Try the Ichimoku Cloud on this chart using multiple time frames to see what you might expect price action to do, and how you might trade or avoid certain setups.
Have fun!
Exit strategies should also be in place, and profits should be taken at predefined levels when trading short-term trends.
The Trader As An ArtistArtist What is art? I hear people say that word (art) a lot. In my opinion, everyone should stick to what they consider it to be. These arguments have been going on for the longest time. Ain’t stopping soon. Funny, when most hear the word “art” they’d have already imagined: the Da Vinci’s Mona Lisa or Vincent Van Gogh’s Starry nights. Art is actually one of the first way we learnt to explore the world—Through its elements and principles.
Today I opened my desktop… or is it laptop? Any-hoo, that’s not the point. I opened this piece of work and decided to do an in-depth research on the definition of “art”. According to the Oxford languages, They said, “Art is expressing or applying human creative skill or imagination in visual or non-visual form”. Honestly, I don’t even think that’s the definition I was looking for. I mean—not everyone knows they have the “creative skill”… What’s this creative skill anyway?
A creative skill is basically the ability to think about a task or problem in a new or different way. Meaning it can be anything right? P.S—Some-one said, “the best creative skill anyone can have is patience”. So are you trying to say, I need a creative skill to do an “art”. Huh… Well… Hey now, don’t get me wrong I’m not trying to argue with oxford. Maybe that’s their view of this word. Who am I to judge? Like I said, “it really can be anything; any-thing you can think of at all” here’s why:
Is Art Just About The Creative Skill?
Talking with Jules the other day—I heard her linguistic teacher say, communication is an “art” of… Wait, hold up. Heh, so communication can be an art. I mean—people do this thing everyday, How else is information passed if not through communication. All the definitions I’ve looked up on the word (art)—has the word “skill” in it. Any skill at all. I mean if oxford says the skill has to be creative well, their problem.
Ergo, can we say, we all do “art” in one way or the other. Lol! I just felt insanely proud saying that out loud.
Anyway, my view point is—the definition of art is subjective, we’re all right. Art is basically anything. It’s a language. Not just a thing, can also be a way. Anything that can be done by us humans (mammals), is definitely an “art”. I might be wrong but, I’ll come back to that.
What Is Art?
Back to my definitions—Then there’s that word “imagination”. You know what, I believe anything you can imagine is an art. Defining art is hard because—there’s no right or wrong in the definition of art. If you go on the internet now or ask someone, you’ll hear gazillion definitions.
More Definitions Of Art
Leo defines it as: experiencing an emotion and transmitting it onto others. A creative work of a human. It’s more than practice, it’s a way of life, Form of expression, quality of doing something. Also, An activity that manifests beauty, and The mastery and ideal way of doing something.
The definitions are infinite. Till today, the definition is subjective, open, debatable—It’s so amazing how one thing can mean different things. Art can be an emotion or feeling, an expression, imagination… It’s such an interesting word.
You watch movies and you cry, how exactly can a movie make you cry? How can one be so talented in evoking: feelings, moods or emotions on others—just by a single act? My British friends will say, “Amazing inn it”.
A Work Of Art
There’s a term that intrigues me, “a work of art”. Since the word “art” there is subjective it can be anything you make it to be. Art is an expression. Your job can be a “work of art” That can mean different things to different people.
This Friday, I took a stroll on google—came across Anita Louise’s blog. Anita made reference to an artist who said: he’s art has no meaning. She says, “the no-meaning is the meaning”. That took me down memory lane. I remember my first sculpture class in—art class, we were supposed to create whatever anything at all. Mr. Jake said, “become art”…
Heh, I remember picking tooth picks, more than a thousand of them. Had no clarity of what I wanted to make. Decided it’s best I play around with it. In the evening, I discovered that it gave me some kind of shape that I couldn’t describe. That piece didn’t make sense to me. To my out-most surprise, I scored the highest. Jake said, “Woah, Jamal this is interesting…” it made him curious. He also stated: that’s exactly what art means.
Mr. Jake’s statement left me in a state of awe.
That’s the message Anita was trying to convey. Most times—the meaningless art pieces are so intriguing that it becomes meaningful. That’s the beauty of art. The language of art is about appreciating any and everything—bringing the most senseless things to life.
Art And Interpretation
For you to interpret art, you need to ask yourself three questions:
What’s the meaning?
What’s the message?
What do the patterns mean?
In philosophy—the point of view is different. It’s grouped in two ways: Intentionalism and Anti-intentionalism. Intentionalism is: viewing the art from the artist perspective, whereas—Anti-intentionalism is: viewing and interpreting it from our own point of view—based on how we feel about it. The gift of art is that, no two persons can have the same interpretation. That’s what makes art very unique, interesting and fun.
In an art class, if a still-life composition is placed in front of you, most artist would decide to do hyper-realism, others a sketch. The shading is different as well, That is, some would use pointillism, others hatching, cross-hatching or scribbling. What I’m saying in essence is: it’s all about the interpretation and expression.
After the class, you’d hear different interpretations. In all honesty, Art is such an amazing thing. Not just in drawing but—other forms as well.
Types Of Art
Listen, I know the main topic is, “the trader as an artist” but I need you to stay with me—see where I’m headed. The main purpose of this topic is: to appreciate the art of trading, to give beauty to the person behind these charts. In addition, to appreciate something is to understand the meaning behind that thing—more on this in—the principles and elements of trading. Colleges today, galleries or wherever people get their information from these days will tell you—there’re two types of art: visual and Non-visual.
Visual art—The term “visual” means sight, to see. Therefore, visual art is an art of vision. It involves the art that’s seen and felt psychically. Non-visual art—In addition, Non-visual art is an art of the soul and the brain. This type of art—can’t be seen but rather felt, it evokes feeling both good or bad in humans.
Who’s an artist
On Saturday, I went to the Library to check-out the new books. There’s a book on objective and subjective POV. There was a write-up, “when you become objective about art and not just subjective, that’s when you start to see artists all around you”. The carpenter in your neighborhood or the gardener across your yard. The writers, traders… Oops, I just said traders. Of course why not. You may not create a master piece that ends up in a museum, but, if you find yourself involved or doing something in your life that—combines a sense of purpose with practiced skill, honey, you’re an artist.
Mark joined me in the library, I wasn’t even paying attention to him, because I came across an article that said, “Trading isn’t an art”.
The writer said, the statement is ridiculous. That you can’t bring Picasso or Gogh into the picture. That really got me irritated. I find it funny how rigid one’s mind can be. To the writer everything “art” should either be a painting of some sort. Years back, I remember when someone asked what I studied—I’d tell them “art”, the next question that pops up is—woah, so you can draw? Pfft, man I get so tired.
Back to the article, I mean he’s definitely an artist Cos’ his piece got to me. Anyway, the one who’s good at something especially if it involves something with skill—that’s an artist.
What Is Trading And It’s Relation To Art.
Trading is the act of buying and selling. Everyone can buy and sell, but, not everyone can do this consistently—without having your emotions involved in someway. Buying and selling isn’t always a positive act, especially if it involves money. Your emotions come to play. Controlling them is what makes you successful in this act. Right? That’s where the skill comes in. Since I need to acquire some sort if skill to become great at this profession, Why can’t I call trading an art?
Without the skill, you’ll lose.
Art requires skill; trading requires skill. What more do you need—That’s equilibrium there. This isn’t some sort of debate though. Not debunking anything. In other words, trading is an art since it requires a skill. There’s a saying that trading is a pattern and number game. Ergo, if trading isn’t an art, how do you recognize the pattern? There’s something called “pattern” in art. A pattern is a repetition. It also involves the elements of art. However, I could go on and on. My point is, trading is an art; a trader is an artist. Finis.
The Trader As An Artist
Since I parked my bike outside, I’ll probably go pick it up. Most people don’t know this but, traders are probably one of the smartest people ever. These guys have mastered the art of emotional intelligence, self-control, discipline, and patience.
Hear me out, this is a mental skill.
A tough work like this doesn’t get much appreciation. Trading is both a visual and non-visual form of art. Visual in the sense that, The charts can be seen, It’s patterns, structure and cycle. All these have their different meanings and interpretations. However, it’s the work of a trader to read these patterns and understand them. All these require a specific skill.
The up and down tics in trading come from market structure, price-action and market cycles all which is—a graphical representation of both buyers and sellers in the market. Each tic represents a humans decision. The only way traders can really survive is: by knowing the intentions of the market. In some cases, that’s nearly impossible.
Well, these guys do it anyway.
Furthermore, It can be non-visual—due to the feelings and emotions this art evokes in the traders. Traders who can’t control their emotions encounter problems. Whereas—the ones who have mastered emotional intelligence, can see its rewards.
The Trader As An Artist -The Market’s Interpretation
Finally, how we interpret the market falls under the—intentionalism and anti-intentionalism of the philosophical interpretation of art. Intentionalism: We are interpreting the market’s movement from the it’s own perspective. That means you are trading what you see. Anti-intentionalism: Traders who interpret the market like this, trade what they think they see and react based on that.
After reading—trading in the zone by: Late Mark Douglas ,I think most professional traders would rather stick with—the intentionalism part of the market.
Let’s step back a little to—art and it’s interpretations. Traders also have different ways we interpret the market, different strategies, and different styles. Just like the different forms of drawing and different shading techniques (More on this in the next article). It’s all about expression. That’s why I found that article about, “Trading isn’t an art” really funny.
In conclusion
Art is about expression. Similarly, trading involves movements. These artist (traders) have learnt to read this movements, to understand its meaning, and they react accordingly. Traders developed the internal ability to control both their mind and actions. The trader as an artist is someone who has polished their chart reading skills, market analysis skills, through pattern recognition and have in the process learnt the art of emotional intelligence. Anyone can be a trader but not everyone can be—a trader.
Furthermore, to be a successful trader, means—you are a successful artist.
Traders vs Gamblers: Know the main differences!Hey, fam! Happy Friday and welcome on another educational post. The topic is the following: differences between a trader and a gambler.
We are gonna go through 6 crucial points and elaborate how traders are different from gamblers.
1) As a trader, one’s aim is to focus on the next 100 trades instead of the next 10. Long-term success, profitability, and consistency are two of the main things traders should target. However, a gambler’s wish and desire is to make quick money.
2) A successful trader/investor has a backtested trading plan that he sticks to and optimizes along the way, adapting to changing market conditions. On the other hand, gamblers like to trade based off what other people think and tweet, or by simply opening a random Buy/Sell position and hoping it plays out successfully.
3) Profitable traders always diversify their portfolio and risk no more than 1-2% per trade. On the contrary, gamblers go “full margin mode” on a single trade without setting a Stop Loss and end up blowing their accounts and blaming the markets.
4) Chasing markets and rushing the process is not what real traders do. Instead, they follow their plan and wait for the price to play out and match their entry criteria before executing. Nonetheless, gamblers like to overtrade, open positions based on nothing, make biased decisions.
5) When enduring a loss or two (or three), traders neither get emotional nor try to revenge the markets. They know that if they obey risk management principles and open high risk-to-reward positions, they will cover all their previous losses and get back to making profits. Gamblers, on the other hand, get angry and start attempting to revenge the market by making foolish decisions and entering many illogical trades.
6) Last but not least, if you want to be successful and profitable in this field, you have to treat trading as a business and take things seriously. Those that think markets are a playground or a casino machine will never succeed in this space.
Is Trading “Gambling” or “Risky” ? Explained in business terms.Hi everyone:
The question that most people will ask is whether trading is the same as “gambling”.
Throughout the 9 years of my trading journey, this has always been brought up and asked about many times.
Of course anyone is entitled to think based on their perspective and view, so I am not here to argue or convince them otherwise.
Rather, I am here to share some key aspects of what I learned in trading for the last 9 years,
as well as years in the business world to discuss the difference between “Gambling” and “Risky” in trading and in business.
Most people who have never traded in their lives, but have heard about trading, usually assume trading is some sort of get rich quick scheme.
They often assume it's a type of “gamble”. Since most people around them probably lost money in trading.
It's not surprising as the statistics don't lie, 90-95% retail traders lose money in trading and quit eventually.
But what most people don't know is “why” and “how” they lose money in trading.
It's usually a combination of poor mindset and emotion.
No systematic plan, no risk management, get rich quick thinking, revenge/over trading, fear of missing out, and alot more psychological issues.
They did not put in the time and effort to succeed. Which then resulted in traders losing money and quitting.
Eventually making up excuses of why they fail in trading, and blame the market, the broker, the strategy.
All these no doubt also resulted in what normal people will say trading is a “gamble.”
On the other hand, is trading “risky” ?
Trading is just like any other businesses out there, that will be risky due to unforeseen circumstances.
Businesses face external factors that they can not control, just like in trading. Businesses have internal expenses, overhead costs, labour, loans, C.O.G.S…etc as well as many competitions within their respected industry.
It requires hard work and determination to succeed. Even for larger businesses that are where they are today, they were all risky when they started.
Was Amazon Risky ? Was Tesla Risky ? Was Facebook Risky ? Absolutely. But that did not stop their owners from putting in maximum effort and time to make it work.
Trading is no different, you are the owner, director and the CEO of your trading account.
So, don't confuse and get “gamble” and “risk” mixed up.
It's up to us individually to acknowledge and understand the difference between the two.
The truth is, successful traders understand the difference between “gamble” and “risk”.
To remove the “gambling” aspect from trading, is to have a well written trading plan, proper risk management, right trading psychology, positive mindset and control emotion.
Whatever strategy you decide to implement is not really the cause of your success or failure, but rather those I mentioned above.
This way, you remove almost all the “gambling” aspect away from trading, and it is now “risky” but bearable for you to handle.
Will trading always be “risky” ? Sure, it is a business and anything can happen unexpectedly and out of nowhere.
But successful traders understand the importance of treating trading like a business, so contingency plan, back up plan, trading plan, management plan,
and much more should be carefully thought out so you will know what to do when you are hit with sudden surprises like in a business operation.
The worst thing we can do is to not be part of any “risk”. If we are so relaxed, laid back, and have no stress to motivate us to move forward, then we stay within our “comfort” zone.
We become so glued to our 9-5 job which we then think it's safe. But, we will forever be in a rat race against many others who are better than us in credentials that will land that higher position/salary that we want.
“So to me, without taking a “risk” in life is the biggest “gamble” that you can do in life.”
Welcome to let me know and share with everyone what you think about this topic :)
Thank you
Jojo
My 5 Year Forex Journey so FarIf there is one thing to remember, it's that life is precious.
What may appear to be a setback is really a stepping stone towards
a better tomorrow. That's the one thing that really separates us from the
animals. They are not aware of the the Future. They have instincts built into their
complex physiology. This is also what makes them innocent. But awareness of the future
is a key distinction. If you you observe criminal psychology, criminals are quite impulsive.
They may cut corners to achieve their goals (Short-Sighted) and this lands them in custody of the more civilized and organized
humans. It is in our nature to pursue goals, because this is how we experience positive emotion. Setting goals has turned my life around, please here this, digest it.
I was on a devastating treacherous descent into the underworld. Immature, Impulsive, Addicted, Lost, Disgusted, these words describe a mindset, an attitude.
The underworld, let me tell you, was quite the experience. I feared for my life, and the health of my loved ones. "How?" I asked myself repeatedly.
Is this what I wanted for myself?
This is what I manifested, really?
Dear God. Help my soul.
Help me Take this 1 day at a time
Help me take it 1 minute at a time if that's what is necessary
Help me restore my dignity
Not from Society
Not From Others
Not even from God
I need to believe that I am worth it
I am worthwhile
I am a good person
I am just a man
I am am an imperfect man
I am an Ignorant Man
I am an Incomplete Man
I am a partially Broken Man
I am vulnerable Man
I am a tough man
But most importantly I am an unstoppable man. And to be quite honest, it doesn't matter what you think.
Because I can manifest anything my heart desires.
Elliott Waves. Possibility VS Certainty !Elliott wave practitioners are sometime subject of criticism because of their apparent mistakes !.
An important point that many people may not be aware of is that " Elliott waves analysis is about possibilities and probability of each possibility not about certainties ! ". In fact, there is no false or true analysis in the world of Elliott waves (if a supposed scenario governs all rules). It is about choosing what you think as the most probable scenario but keeping in mind which conditions confirm or invalidate your analysis. If a most probable scenario fails , an Elliott practitioner immediately thinks about second most probable one ! and so on.
TSLA at current price and wave form is a clear and typical example of different scenarios possibility. We will investigate those possibilities in the following paragraphs but before that it is worth to mention that general trend of TSLA is up and as I previously published one more leg up is still ahead in broader view .
TSLA showed a decline from ATH to 886.12 with an abc zigzag form hitting a strong proposed support at confluence of former ATH, 50 % Fibo retracement and base of down going channel. ( See related idea for more details). It then made a strong bounce back but never reached a new ATH and finished it's move at 1208 just slightly above 1201.95 minor high with another 3 leg up !. This setup offers several possible scenarios. I could predict 13 of them . Please note that possible scenarios would be considerably different if TSLA made a new ATH or showed a 5 leg up move !. Different possibilities!. We had another decline from 1208 to 980 and then a bounce back to current price.
At this current position TSLA may choose different paths. Be patient . We will make a conclusion at the end of idea !. Followings are the possible scenarios as shown on the chart. We have chart of TSLA on the left side and possible scenarios on the right. Please note that right side chart is just a schematic drawing so I kindly ask you to disregard dates and prices on the right side chart:
1. Double Zigzag or Double three Correction :
In this scenario , The move up from 886.12 to 1208 is a wave X which connects two correcting forms. Next correcting pattern can be either a flat or another zigzag. Actually we have 2 slightly different scenarios in this part. Difference is second part flat correction ( Double three) price goes just slightly below the 886.12 low but in double zigzag goes much lower. Forms are the same and price targets are different.
2. Double Three :
Triangles in the second part of corrections are more common in complex corrections. In this case , a triangle is going to form after decline from 1208 to 980. and price will never go below the 886.12 ( except expanding triangles which is not common). Triangles can have several forms themselves : Contracting, Barrier and expanding. Here we just showed a contracting triangle in second part. We have 3 somehow similar scenarios here with just 1 shown .
3. Triple Three:
We may have a boring and exhausting correction continuation which is triple three. I showed on more common triple three correction on the chart with first part being a zigzag, second part being a flat and third part being a contracting triangles. Considering the third part can be a flat and even zigzag (which is not a usual one) and triangles different forms we reach to 5 possible similar scenarios here with only 1 shown.
4. Terminal wave 1 as beginning of the new impulse after end of correction at support:
Impulsive waves are always 5 wave in classic Elliott waves however , there may be 3 waves wave 1 in harmonic Elliott. It may be the case for TSLA and a move up from 886.12 to 1208 can be labeled as wave 1. in this case we are in wave 2 and another leg down is expected before making a new ATH. If you doubt about occurrence of such wave 1 see SHOP stock from 26 March 2021 to 13 may 2021. We can find many other examples in the market.
5. Antic cycle wave 1 and 2 and end of correction at support :
Normally impulsive waves are 5 leg and corrective waves are 3 to form a wave cycle. Sometimes wave forms show an anti cycle with 3 legs in the direction of main trend and 5 waves in counter trends. In this scenario TSLA has completed wave 1 and 2 and we are in up going wave 3.
6. Very rare bearish scenario with 3 waves truncated wave 5 :
First of all, this scenario is very rare and I give very very little chance to it at the moment but I certainly keep it in mind as a possible one !. Wave fives sometime show 3 legs instead of 5. several examples can be found for example see BTC from 56206 to 68769. Truncated wave fives can not make a new ATH. Occurrence of these two together has very little chance.
One may ask : So what? Are we going to be confused? What should we do now? Do we have a clear answer ? Of course we have !
Except that rare scenario, all above mentioned possibilities suggest TSLA will finally make a new ATH . They all (except the bearish case) suggest taking out 1208 high as a strong buy point therefore If we do not have TSLA shares right now we can set our buy point above 1208 and if we already have shares we can hold them to capture the profit of next up going waves. This is how an Elliott practitioner makes the final decision considering all possibilities and probabilities. This one is a complicated one in short term but sometime we have much more easier process of decision making like TSM with a clear buy point above 135.5.
It is worth to note pre-requisite of all of this scenario is that TSLA has completed wave 1,2,3 and maybe 4 of larger cycle wave and will make the last wave 5. If this pre-requisite is wrong all above scenarios are wrong. For now. I am confident about the position in the larger cycle.
I spent about 10 hours to prepare this 10-min read publication so I deeply hope this to be useful and show you how can one be prepared in advance for different scenarios with the help of Elliott waves.
Good luck everyone and wish you all the best.
Learning from the Feynman TechniqueRichard Feynman(1918-1988), an author, graphic novel hero, intellectual, philosopher, physicist, and No Ordinary Genius is considered to be one of the most important physicists of all time.
He pioneered an entire field: quantum electrodynamics (QED)
In the 1940s, his invention of the Feynman Diagram helped bring much-needed visual clarification to the enigmatic behaviour of subatomic particles
His work has directly influenced the fields of nanotechnology, quantum computing, and particle physics
In addition to his ground-breaking research, Feynman was brilliant, eloquent, and an exquisitely passionate thinker.
Bill Gates was so inspired by his pedagogy that he called Feynman, "the greatest teacher I never had."
Feynman's lectures, many of which were delivered during his time at California Institute of Technology, were aimed at students who had no previous knowledge of particle physics or deep science. Taking the mystery out of complex scientific principles was Feynman's forte. His lectures were underscored by a conviction and passion for science.
The unpredictable movements of atomic particles later defined his life's work. When he wasn't in the throes of researching particle physics, he spent time dabbling in the arts, sketching and playing the bongo!
///
The Feynman Technique
The Feynman Technique is a method of learning that unleashes your potential and forces you to develop a deep understanding.
Have you ever had a co-worker or teacher explain something with language that was difficult to understand?
The Feynman Technique for teaching and communication is a mental model (a breakdown of his personal thought process) to convey information using concise thoughts and simple language. This technique is derived from Feynman's studying methods. Feynman understood the difference between understanding something and knowing the name of something. He was never content with just knowing the name of something rather he wanted to understand it at a deeper level.
Feynman started to record and connect the things he did know with those he did not. In the end, Feynman had a comprehensive notebook of subjects that had been disassembled, translated, and recorded.
He tried to find the essential kernels of each subjects
You can use this model to quickly learn new concepts, shore up knowledge gaps you have (targeted learning), recall ideas you don't want to forget, or to study more efficiently.
Taking the concept further
Feynman's technique is also useful to those who find writing a challenge. "In order to talk to each other, we have to have words, and that's all right. It's a good idea to try to see the difference, and it's a good idea to know when we are teaching the tools of science, such as words, and when we are teaching science itself." Feynman
Feynman's cartoonish diagrams of highly scientific principles, for example, he could tap into ideas with shapes, squiggly lines, and drawings. It eliminated away clunky language and allowed the power of verbal storytelling to take root as you can imagine explaining the essentials of particle physics is a extremely difficult subject in itself.
Feynman's illustrations and visual equations rather than verbal explanations at the time (the squiggly lines, diagrams, arrows, and the cartoonish figures)
are now part-package of visual storytelling that students, scientists, and readers will see when they learn about this field of science.
There are four key steps to the Feynman Technique:
1.Choose a concept you want to learn about
2.Explain it to a 12 year old
3.Reflect, Refine, and Simplify
4.Organize and Review
Essentially, the Feynman Technique is this:
1.Identify the subject
Write down everything you know about the topic. Each time you run into new sources of information, add them to the notes
Take out a blank sheet of paper. Write out everything you know about the subject you want to understand as if you were teaching it to a child.
As you learn more about the topic, add it to your notes. Trick* People find it helpful to use a different colour so you can see your learning growth/progress
Get organized!
2.Teach it to a child
Now that you think you understand a topic reasonably well, explain it to a 12-year-old. If you can explain a concept to a child, you're way ahead of the game.
Start with a blank note and write the topic or subject you want to teach. Then, below that topic, write everything you know about it.
The trick is to write plainly and simply - so that a child can understand what your talking about
Use your sheet, sheets/notebook as a reference
Children don't understand jargon or a lexicon of dense vocabulary so speaking in plain terms is a must
* When we speak without jargon, it frees us from hiding behind knowledge we don't have. Big words and fluffy "business talk" cripples us from getting to the point, getting a point across and/or passing knowledge to others
"Anyone can make a subject complicated but only someone who understands can make it simple."
Now this part goes without saying or bringing a 12 year old into the equation but when forced to write out an idea from start to finish in simple language, you actually discover where you struggle, where you get frustrated and where you don't really understand as well as you thought. Only by identifying gaps in your knowledge can you fill them.
3. Identify your knowledge gaps
This is the point where the real learning happens.
Highlighting subject, sub-subjects and other inter-linked gaps will help you collect and organize your notes into more cohesive structured _______
Now you can call upon your source material (lecture notes, ideas, etc.) when you run into questions about how much you do know about your topic you can go back to the source material and review the parts you don't quite understand yet.
Reflect, Refine and Simplify
If you don't know something, hit the books. Go back to the source material and draw upon the information that will help you fill the cracks.
Repeat until you have a simple explanation.
Simple is beautiful :)
4. Organize and Review
Piece together your notes using concise explanations. Bring the most vital pieces about the topic together.
To test your understanding in the real world, run it by someone else. What questions did they ask? What parts did they get confused about?
Making things stick forever
As Feynman illustrates in his mental model, learning can be a lifelong pursuit. This technique is designed to help you study for exams and learn new subjects, but it can be easily adapted to pursue deep work.
Dedicating a notebook to a place where your knowledge can grow, evolve your ideas and provide inspiration to continue following a path of ongoing learning critical to the fundamentals of deeper, meaningful work.
The Feynman Technique is the foundation of our 'blank sheet' approach to supercharging your reading and retention.
The next time you stare at an empty notebook page, think about turning that page into an opportunity.
Armed with the Feynman technique anything is possible.
OANDA:EURUSD
👍
The Hardest Thing About TradingTrading You know—that’s the only job, you can’t be attached to the outcome. Other professions, you’ll need to be attached to the outcome—imagine a surgeon not being attached to his outcome; I can imagine how many bloods would be on his hands.
There’s only one way to succeed in this business and that’s: accepting that anything can happen. Having a trading relationship can be fun. But, just like any other relationship, You need to know if it’s gonna hit rock bottom or… till death do us path. In other to have that, it isn’t really about change; it’s about acceptance.
It’s a beautiful day, the sky is clear, the air is fresh. Exactly 2 years, 3 months, 5 days and 30 minutes, that’s how long I’ve been a trader. At least I think I am… Starting off, I always thought, “trading is easy”. In fact, we’d have gurus that will tell you that. I mean, who speaks the truth these days? Everyone is just great at marketing, selling hope to anyone who cares to listen.
So pathetic!
Trading Is Easy
Trading for me isn’t easy, Let’s quit the B.S. It’s not! To the robots—it probably is. Hello, there’s still blood running through those veins—Wake up! you’re human. It’s better to know the truth and accept it. Though painful, at least—you’ll be aware. Than to be told lies every new cock-crow. Well who am I to judge? Thanks to the media, we live amongst robots. The ones who would do anything for online gratification.
You know what?… Trading is a gift and a curse. A gift, because for the first time in your life, you’re free. Heh—Free to make your own choices, no bosses, no timing—just you. Anywhere in the world. How amazing is that? Here’s where the curse comes in… You’re responsible for every outcome. Know what’s funny? Traders are not supposed to be attached to this “outcome”.
Tell me, how can you say that’s easy?
If I create a problem, I have to accept the problem even if it leaves an emotional pain that “I” created. A pain that easily sticks, creates trauma—then I get addicted, obsessed with dealing with it. I have a thing for organization… How do I deal with failures, losing money, missing out on opportunities and giving the broker my money because of “my” own mistakes? Long rhetorical question there. Who’s the honest—one left to answer?
This is a job that requires balance, A balance between euphoria, over-confidence and fear… Now do you know what that means?
The Reality
Therefore, no excess excitement even if you just won; no fear even if you just lost. Now, how easy is that? Well, to you it might be. However, I need a trader that can boast of being completely emotionless when they started off. Want to know how these traders succeeded? They realized the truth, they either learnt it, figured it out or a kind person told them.
To the rest of the zombies—don’t be deceived. There’s nothing easy about completely shutting off your emotions. Like some animal…
“Self-control”, yeah I think that’s the word. It takes discipline and consistency. I mean when you started, all you knew was, you needed to make money right?
No-one told you about the choices you’ll have to make. People quit, commit suicide, feel like losers all their life—because of the constant lies. Don’t get me wrong, the fact that I’m saying this doesn’t mean you can’t work on being amongst the 1% . The reason I’m saying all this is—I need you to know what you’re up against. That way, you can get rid of expectations, the outcome and focus more on the process. Probabilities. Just like how we can’t tell who’s dying next, you can’t tell which trade would be a winner.
Imagine putting your cash in something you have no control over and not attaching yourself to its outcome…
Trading And Trust Issues
That’s trust right there. Newsflash, I have big trust issues. Meanwhile, also something to deal with. I’m probably ffed up right now because, I have to trust in my edge. An edge. That’s not even a solution. That’s just the probability of one thing happening against another. What the hell! Funny,
I think religion calls that—“faith”.
My life has been ffed up for the longest time. Trading just showed me my own reflection. Like the kanima, I got scared. How on earth do I improve this person, learn from my mistakes and get less attached to the outcome—whilst focusing on the process. I came for the cash right—When do I get it? Don’t you dare say, “patience”. Imagine you’ve never seen your naked body before only to see it for the first time and it’s filled up with scars, weird marks from injuries, surgeries… all that messed up stuff.
It’s something new; something different.
That’s hard man—especially if you’re surrounded by judge-mental f**ks. What’s the drive to overcoming fear? I don’t know of any guru that teaches you how to overcome fear. I mean, it’s not like they can make it disappear. Here’s something: if you still suffer from past traumas or you’re still scared of stuff—don’t believe someone can take that away from you. For instance, paying $2,000 to that marketer won’t take the fear away.
Don’t be foolish!
Pfft… easy my foot! Here’s to enlighten-ment… Let’s drink to that. In short, Trading is tough—are you ready for its challenge?
Success is a one big IcebergJust like real life, trading life is full of ups and downs. You know those days when you wake up with an absolutely awful mood and you can't figure out possible reasons? Well, there could be several factors influencing it: negative energy of the outside world, bad weather, personal problems and so forth. It is very similar to checking the markets and noticing that everything is so choppy that there is nothing to trade. Several determinants here as well, such as heavy economic news, holidays, or just a bay day with no opportunities (after all, not every day is a trading day). One thing that gets us through these challenges faced is patience, because, after all, time heals all pain wounds and fixes most of our problems. I quote Shakespeare: “The evil that men do lives after them; The good is oft interred with their bones". To reverse-engineer and interpret it into the trading language: "People only see the end goal, the glory, the monumental win. They don’t see the dedication, hard work, persistence, discipline, disappointment, sacrifices, and many failures it takes to reach success". In more simple terms, people only see the tip of the Iceberg (success, amazing profits, consistency), and not the bottom of it (sleepless nights, hard work, dedication, failure, pain).
Not a single skill is learnt over the course of a night. Just like it takes several years of practice, hard work and expertise to become a successful lawyer, a famous actor, and an exceptional doctor, it takes years of hard work, passion, and dedication to become a consistently profitable trader/investor.
AUDNZD Trade ReviewHey guys,
As I sat down this morning to do my trade review from yesterday, I figured why not do it on video for you guys to watch and see.
This is a good opportunity to have a look at my initial analysis, how I managed the trade through-out the day and how we finished up.
If you don't already do trade reviews I highly recommend you do, as it can be a great way to familiarise yourself with the emotions you feel through-out your trades.
If you enjoyed the content leave a like, if the feedback is good I will continue to make these!
Educational Idea - Look at the BIGGER picture As a trader, I have an ambition (I'm sure that every trader does)! My ambition, is to see the bigger picture and to trade within (operate within) it's guidelines and precepts. It makes me feel like myself, in fact, it makes me see myself as myself; operating in the bigger picture, the bigger environment, the bigger world around us - the bigger world that 'believe it or not' has boarders and boundaries. Sometimes we launch out of these boundaries as some trades do "It's broken the triangle"! we scream. The bigger picture here is exampled in GBP NZD - a pair that I don't like to and don't often trade, unless I can see the clear, respected, bigger picture. Patterns.It was the chart patterns that helped me gain a greater understanding of the markets; knowing that the markets move according to (mostly) human psychology; what one does, all will do. Which, brings me to another ambition of mine - to ensure that "all who want to, can" ; all who want to spot the patterns and trade therein - can. I want to continue to put out the best ideas that I possibly can; you will often find that the best ideas come about from powerful yet elegant chart patterns with clear support and resistance on higher time frames perhaps. I mean, what else do you need? One well spotted and understood trade can transform your life. One trade entered at the right time with the right lot size and the right frame of mind - GOLDEN. That's the BIGGER picture, let's paint it, together.