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Trading Psychology

Learn The Market Volatility | The Double-Edged Sword Have you ever wondered why the certain trading instruments are very rapid while some our extremely slow and boring? In this educational article, we will discuss the market volatility, how is it measured and how can it be applied for making smart trading and investing decisions. 📚 First, let's start with the definition. Market volatility is a degree of a fluctuation of the price of a financial instrument over a certain period of time. High volatility reflects quick and significant rises and falls on the market, while low volatility implies that the price moves slowly and steadily. High volatility makes it harder for the traders and investors to predict the future direction of the market, but also may bring substantial gains. On the other hand, a low volatility market is much easier to predict, but the potential returns are more modest. The chart on the left is the perfect example of a volatile market. While the chart on the right is a low volatility market. 📰 The main causes of volatility are economic and geopolitical events. Political and economic instability, wars and natural disasters can affect the behavior of the market participants, causing the chaotic, irrational market movements. On the other hand, the absence of the news and the relative stability are the main sources of a low volatility. Here is the example, how the Covid pandemic affected GBPUSD pair. The market was falling in a very rapid face in untypical manner, being driven by the panic and fear. But how the newbie trader can measure the volatility of the market? The main stream way is to apply ATR indicator, but, working with hundreds of struggling traders from different parts of the globe, I realized that for them such a method is complicated. 📏 The simplest way to assess the volatility of the market is to analyze the price action and candlesticks. The main element of the volatile market is occasional appearance of large candlestick bars - the ones that have at least 4 times bigger range than the average candles. Sudden price moves up and down are one more indicator of high volatility. They signify important shifts in the supply and demand of a particular asset. Take a look at a price action and candlesticks on Bitcoin. The market moves in zigzags, forming high momentum bullish and bearish candles. These are the indicators of high volatility. 🛑 For traders who just started their trading journey, high volatility is the red flag. Acting rapidly, such instruments require constant monitoring and attention. Moreover, such markets require a high level of experience in stop loss placement because one single high momentum candle can easily hit the stop loss and then return to entry level. Alternatively, trading a low volatility market can be extremely boring because most of the time it barely moves. The best solution is to look for the market where the volatility is average, where the market moves but on a reasonable scale. Volatility assessment plays a critical role in your success in trading. Know in advance, the degree of a volatility that you can tolerate and the one that you should avoid. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
12
Revealing the secret of pro tradingIt takes a period of 3-5 years to obtain a degree. Gaining experience in a reputable 9-5 job typically requires 5-10 years. To become a professional athlete, one needs to undergo 10 years of training. If you don't achieve millionaire status in trading within 6 months, it's common for people to give up. However, it's important to recognize that patience and consistency are essential. Trading is not excessively complicated, as it can be broken down into a few key components. - Having an edge. - Practicing effective risk management. - Controlling emotions and executing trades. It's crucial not to overcomplicate matters. Your trading edge serves as your offensive weapon. Risk management functions as your defensive weapon. Your ability to balance these weapons, along with controlling emotions, is crucial. Having a trading edge makes you a good trader, while skillful risk management makes you a great trader. The capacity to control fear and greed elevates you to the status of a legendary trader. A trading system allows you to generate profits, while effective risk management safeguards your capital.
Education
by FortuneAI
1
Understanding Market Corrections:Definition & Key ConsiderationsInvesting in the stock market has the potential to generate substantial wealth over the long term, although it comes with inherent risks. One notable obstacle that investors frequently encounter involves safeguarding their capital during periods of declining stock prices. When the market undergoes a downturn, the inclination to panic and sell off investments to evade additional losses can be strong. However, this reactive approach often results in even greater financial setbacks and hinders the ability to capitalize on future market rebounds. In this comprehensive article, we will delve into the concept of a market correction and delve into various strategies that can assist investors in preserving their capital amidst market downturns, enabling them to emerge stronger when the market inevitably recovers. Market Correction: A Comprehensive Explanation In the realm of financial markets, a market correction is a notable event characterized by a substantial decline in the value of a financial instrument. This decline typically ranges between 10% to 20% and can encompass individual stocks of a specific company or even extend to encompass entire market indices comprising a vast array of companies. The duration of a correction can vary significantly, ranging from as short as a single day to as long as a year, with the average duration spanning approximately four months. Market corrections can be triggered by a myriad of factors, each with its own unique catalyst. These factors can range from a company's disappointing financial performance and weak earnings report to more extensive global geopolitical conflicts. In some instances, corrections may occur seemingly without any discernible external cause. It is worth noting that market corrections are not exclusive to stocks alone. They can manifest in various other financial instruments such as commodities like oil, platinum, and grain, as well as currencies, funds, specific industry sectors, or even the entire market as a whole. This exemplifies the widespread impact that a correction can have across diverse segments of the financial landscape. To illustrate the significance of a market correction, let's consider an example from recent history. In the year 2018, the prices of over 500 companies experienced a decline of 10% or more. This widespread correction exemplifies how fluctuations in market conditions can influence a substantial number of companies simultaneously, affecting their valuation and investor sentiment. In conclusion, a market correction denotes a notable decline in the value of financial instruments, with the range typically falling between 10% to 20%. The causes behind these corrections can be diverse and encompass factors ranging from company-specific issues to broader global conflicts. Moreover, corrections can impact various financial instruments and market segments, underscoring their potential for wide-reaching consequences within the financial landscape. Example : AMZN stocks Daily chart showing a correction in 2018 - 2020 Market corrections are not uncommon events within the realm of financial markets. On average, a decline of 10-20% in the stock market transpires approximately once a year. These corrections, characterized by a significant decrease in stock prices, serve as reminders of the inherent volatility and fluctuations present in the market. While corrections of 10-20% occur relatively frequently, more profound market declines exceeding 20% are less frequent, transpiring approximately once every six years. These substantial corrections are often referred to as market collapses, signifying a more severe and prolonged downturn. One illustrative example of a market collapse occurred in response to the global pandemic outbreak in March 2020. The COVID-19 pandemic triggered a swift and severe decline in stock markets worldwide, leading to a precipitous drop of approximately 38% within a matter of days. This extreme correction exemplifies the impact of unforeseen events and external factors on market stability and investor sentiment. It is important to recognize that market corrections and collapses are not solely confined to a particular asset class or geographic region. They can have a broad-ranging effect, transcending national boundaries and impacting various financial instruments, indices, and markets worldwide. In summary, market corrections, defined by significant declines in stock prices, are regular occurrences, transpiring approximately once a year with a magnitude of 10-20%. Market collapses, on the other hand, encompass more profound declines exceeding 20% and typically transpire once every six years. These events serve as reminders of the dynamic nature of financial markets and their vulnerability to various factors, such as the recent pandemic-induced collapse in 2020, which had a profound impact on global markets. Example : SPX500 / US500 stocks Daily chart showing a correction in 2020 Investors who adopt a long-term investment strategy tend to navigate corrections with relative ease, primarily due to their extended investment horizon. By committing their funds for a substantial period, typically ranging from 5 to 10 years, these investors are less likely to be perturbed by temporary price declines. On the other hand, individuals who rely on leverage or engage in short-term trading bear the brunt of corrections, experiencing greater challenges and losses. The impact of a correction can be readily observed by examining the chart depicting the historical performance of any given company. By selecting the annual or five-year chart display, one can identify specific time periods when the asset's value experienced temporary declines. Additionally, it is crucial to consider the decrease in stock price subsequent to the ex-dividend date, commonly referred to as the dividend gap. It is essential to note that the dividend gap phenomenon is distinct from a correction and should be treated as such. What Causes A Correction? A correction in the stock market can be triggered by a multitude of factors and events that impact stock prices. These events can range from speeches given by company executives, investor reports, pandemics, regulatory changes, economic sanctions, natural disasters like hurricanes and floods, man-made disasters, to high-level meetings of world leaders. Even the most stable companies can experience declines in their stock prices due to these events. It is important to recognize that human behavior also plays a significant role in causing market corrections. The stock market is inherently driven by human participation and investor sentiment, which can sometimes lead to corrective actions. For instance, if a popular figure like Elon Musk garners significant attention and support, investors may pour money into his company beyond its actual earnings. Eventually, the overvaluation of such a "hyped" company may result in a decline in its stock price. Furthermore, investors often attempt to follow trends in the market. When a particular stock shows an upward trajectory, more people tend to invest in it, thus increasing its demand and subsequently driving up its price. However, as the price reaches a certain peak, some investors choose to sell their holdings to realize profits. This selling pressure can initiate a correction, causing those who entered the market later to incur losses. Therefore, blindly chasing market trends without careful analysis may prove detrimental. Additionally, corrections can exhibit seasonal patterns. For example, during the summer months, prior to holidays or extended weekends, investor participation in trading may decrease. This reduced trading activity leads to lower liquidity in stocks, creating an opportunity for speculators to exploit the situation. Such periods often witness sharp price fluctuations, potentially resulting in stock prices declining by 10-20%. It is crucial to understand that corrections are a natural part of the market cycle, and it is neither productive nor feasible to fear them indefinitely. The market cannot sustain perpetual growth, and corrections serve as necessary adjustments. By acknowledging their inevitability, investors can adopt strategies that are mindful of market dynamics and position themselves accordingly. How Long Do Corrections Last? Between the years 1980 and 2018, the US markets experienced a total of 37 corrections, characterized by an average drawdown of 15.7%. These corrections typically lasted for approximately four months before the market began to recover. Consider the following scenario: an investor commits $15,000 in January, experiences a loss of $2,355 during the correction, and by May, witnesses their portfolio rebounding to $15,999, based on statistical data. However, it is important to note that outcomes may deviate from this pattern. It is worth noting that the magnitude of a stock's decline directly impacts the duration of its recovery. As an illustration, during the financial crisis of 2008, US stocks tumbled by approximately 50%. The subsequent recovery of the stock market extended over a period of 17 months, primarily attributed to the active support provided by the US government and the Federal Reserve. This underscores the notion that severe market downturns necessitate more prolonged periods for recuperation, even with significant intervention from regulatory bodies. Dow Jones Industrial Average index drop in 2008 The timing of a market correction is often challenging for financiers and experts to predict with certainty. In retrospect, it becomes clear when a correction started, but identifying the precise moment beforehand is a complex task. Taking the aforementioned example of the market collapse in October 2007, it was not officially acknowledged until June 2008. This highlights the inherent difficulty in pinpointing the onset of a correction in real-time. Following a correction, the market's recovery period can vary significantly. In some instances, the market may swiftly regain stability and resume an upward trajectory. However, in other cases, it may take several years for the market to fully recover from a correction. The duration of the recovery depends on a multitude of factors, including the severity of the correction, underlying economic conditions, government interventions, and investor sentiment. Hence, it is crucial to recognize that financiers and market participants can only definitively determine the start and extent of a correction in hindsight. The future behavior of the market after a correction remains uncertain, and it is possible for the market to swiftly recover or take a considerable amount of time to regain stability. How To Predict A Correction Predicting the precise timing, duration, and magnitude of a market correction is inherently unreliable and challenging. There is no foolproof method to accurately forecast when a correction will occur, when it will conclude, or the extent to which asset prices will change. Some economists and analysts attempt to predict market trends by employing various theories. For instance, Ralph Elliott formulated the Elliott Wave Theory, which posits that markets move in repetitive waves. By determining the current phase of the market—whether it is in an upward or downward wave—one could potentially profit. However, if such theories consistently yielded accurate predictions, financial losses during corrections would be virtually nonexistent. It is crucial to acknowledge that market corrections are an inherent and inevitable part of market cycles. While attempting to predict corrections may be enticing, it is important to remember that they will inevitably occur, regardless of how long it has been since the previous one. Relying solely on the absence of a correction for an extended period as a basis for investment decisions warrants careful consideration and analysis rather than being treated as a definitive indicator. Advantages And Disadvantages Of Market Correction Advantages and disadvantages of market corrections can be summarized as follows: Advantages of a market correction: 1) Buying opportunities: Market corrections often present favorable buying opportunities for investors. Lower stock prices allow investors to acquire shares at discounted prices, potentially leading to long-term gains when the market recovers. 2) Rebalancing opportunities: Corrections can prompt investors to rebalance their portfolios. Selling overvalued assets and reinvesting in undervalued ones can help optimize investment returns and maintain a diversified portfolio. 3) Expectation adjustment: Market corrections can serve as a reality check, helping investors reassess their expectations and risk tolerance. This can lead to more informed investment goals and strategies. Disadvantages of a market correction: 1) Financial losses: Market corrections can result in substantial losses, particularly for investors who panic and sell their investments at lower prices. Reacting emotionally to market downturns may amplify the negative impact on portfolios. 2) Economic implications: Market corrections can have broader economic repercussions. They may lead to job losses, reduced consumer spending, and slower economic growth, potentially affecting industries and sectors beyond the financial markets. 3) Psychological impact: Market corrections can trigger fear, uncertainty, and anxiety among investors. These emotions may drive impulsive decision-making, such as selling investments hastily or hesitating to re-enter the market when conditions improve. It is important for investors to carefully evaluate the potential advantages and disadvantages of market corrections and consider their own risk tolerance, investment goals, and long-term strategies when navigating such market events. What Should You Do During A Correction? Correction can make an investor richer or poorer or have no effect at all. The impact of a market correction on an investor's wealth depends on their actions and decisions during that period. It is impossible to predict with certainty the duration or direction of asset value changes during a correction. However, there are general tips that can help investors navigate through a correction and potentially safeguard their finances: 1) Maintain a calm and rational mindset: During a correction, it is crucial to approach investment decisions with a cool head. Instead of making impulsive moves, take the time to understand the underlying causes of the correction and consider expert opinions and news. 2) Avoid excessive borrowing: It is advisable not to use borrowed money for investments, especially during a correction. This reduces the risk of incurring debts and potential losses. For beginners, it is often recommended to limit investments to the funds available in their brokerage accounts, particularly during a correction. 3) Assess company fundamentals: Evaluate the fundamental strength of a company by analyzing key metrics and ratios. Comparing a company's value with others in the same industry can provide insights. If a company is not overvalued, it may indicate that there is no fundamental reason for a correction, and its value may likely recover in due course. 4) View the correction as a buying opportunity: Prominent investors like Warren Buffett and Nathan Rothschild have emphasized that corrections present excellent opportunities for investment. If a stock's price has fallen, consider purchasing it based on the company's performance rather than solely focusing on the size of the discount. Maintaining some savings in cash allows for timely investments in undervalued assets. 5) Acknowledge the normalcy of corrections: It is important to recognize that corrections are a regular part of market cycles and serve as tests of an investor's composure. Following an investment strategy that includes provisions for investing during periods of 10-20% lower stock prices can help protect savings and optimize long-term returns. By adhering to these general tips and maintaining a disciplined investment strategy, investors can better navigate market corrections and potentially preserve and enhance their financial well-being. Conclusion In summary, market corrections are an intrinsic aspect of the stock market's ebb and flow, and it is essential for investors to anticipate and navigate them effectively. During such periods, the inclination to succumb to panic and hastily sell investments can be strong. However, maintaining composure and adhering to prudent strategies that safeguard capital are crucial for weathering corrections and emerging stronger when the market inevitably rebounds. While corrections present challenges, they also offer advantageous opportunities, such as the ability to acquire stocks at discounted prices. Conversely, the potential for substantial losses exists, emphasizing the importance of a measured approach. A long-term investment strategy, rooted in sound analysis rather than reactionary emotions, serves as a vital compass for surviving corrections. By focusing on the broader picture and resisting the temptation of short-term market fluctuations, investors can position themselves for long-term success amidst the natural ebb and flow of the market.
NASDAQ:TSLAEducation
by FOREXN1
12
Ninja Talks EP 16: Rain > Bird > WormTrue story: Yesterday I was having a cigar perched under an umbrella in the rain - not ideal, but peaceful nonetheless. And out pops a family of birds to feast on the worms that rise to the surface in need of some high quality H2O - little did I know, this would become one of my favourite trading metaphors of all time! The Rain = Despair/Panic The Birds = Conscious Investors The Worms = Unconscious Investors Look at it like this, when there is despair in the markets and most Bambi traders are caught offside - they panic - they lose hope, and despair grips their fragile little psyche like a 1 year old baby gripping a blueberry for the first time. They begin to pop to the surface and "show their hands" - which is completely unconscious emotional behaviour not rooted in reality, experience or indeed even their very own strategy. They're ripe to be plucked from the market. That's where the Bird (conscious Investor) comes in - after patiently waiting for hours, days, weeks or even months, the conscious investor enters as the worm exits their positions (either manually or automatically by way of stop loss). The bird claims the prize... ...and the worm never learns. This cycle is as old as the markets themselves and is just a constant reminder that, as Warren Buffet once said; "The stock market is a device for transferring money from the impatient to the patient." From the unconscious to the conscious. From the worm to the bird. From the amateur to the pro. This is trading. The most patient trader who can abstain from emotional and physiological urges gets to observe more data from the market, thus giving him a higher level of certainty to act on said data - and when it's time to act, fear is nonexistent in his mind. Understand? See you in the next episode Ninjas!
OANDA:XAUUSDEducation
by NinjaTradingServices
[Education] How To Be A Good Trader?This might surprise you. I was actually a content creator on Youtube and blogs before I focus on trading. Trading was something I do on the side as I was trying to achieve consistency. From young I already knew that I do not want to work in a 9 - 5 until I retire. I want to enjoy my life without worrying for money. I read a lot of books on personal finance, personal development and productivity. To be good at something, you need at least the knowledge of a given topic. Knowledge is potential power. Action is power. Stability Reduces Stress I was lucky to have an actual framework and knowledge on how to keep and grow my money. I didn’t have to worry about money as I was spending way below my means, without sacrificing my hobbies. It is important to have a stable income. I do not need to worry about being unable to pay bills, or to put food on the table. This brings me to the next point. Since I have met my survival needs, I can spend more time and energy focusing on trading. I have the savings and money to deploy in the financial market. Building The Luxurious Lifestyle Beginners are caught up with the idea that it is easy to get high win rate and high RR trades. You want to learn how to trade because it’s lucrative. I don’t deny that. This business is very scalable. A 5% gain on a $100 account is $5, but a 5% gain on a $100,000 is $5,000. You take the same trade on different accounts, the profit can vary. You want to enjoy life. You want to escape the 9 - 5 rat race. You want to provide for your family. You want to make your parents proud. You want to be a rich and successful person. Who doesn’t want that? You can see many screenshots of people earning millions of dollar. They took high 100 RR trades and profiting tens of thousands of dollars per trade. These give the impression to beginners that they can do it too. You enter the trading world with the wrong mindset. You want to earn thousands of dollars every week. But your capital is only $100. You think you can flip this account into tens of thousands of account. But you only get to see your accounts wiped out time and time again. You don’t believe that you are not able to profit from the market. You talk to people who post screenshots of their profits and high RR trades. You subscribe to their trade signals, account management, and expert advisors. You bought their trading course on demand and supply. Some mentorships tell you to put 3 technical indicators and follow the buy and sell signals. You put in more money since they are the ‘experts’. You might find small success here and there. But eventually, you are back to square one. Your account got wiped again. You will never improve if you’re stuck in this loop. Trust me, you will NOT succeed. Breaking The Loop Solving this will ensure you will survive. You will meet your basic needs. You don’t need to worry about food, water and shelter. You won’t need to stress about not having enough to get by. You won’t need to worry about getting your electricity and water cut off. You won’t need to worry about your landlord coming after for rent. You’re not afraid of getting sick and being not able to afford basic healthcare. You will get your life in order. You will get your personal finance in order. You know exactly how much your net worth is. You know how much your income a month is. You know how much your monthly expenditure is. Once you know all these numbers, you are able to extrapolate how much you need at retirement. Knowing your net worth at retirement is crucial. I will write about how do you calculate for retirement in the future. If you have all these figures worked out, you might not need to work so hard for the 100rr trading system. You can reach retirement earlier by investing your money into the S&P500. But the fact that you’re here, means you’re trying to aim higher isn’t it? The point is that you have to understand your basic survival needs. If you are able to meet the basic needs through trading, you are a good trader. You don’t need to get 5 or 6 digits payout with constant 10% returns every month. All you need is a 2% gain on a $200,000 account which gives you a nice $4,000, trading from a beach villa at Maldives 1 hour a day. Capital Issue But Keeley, I need to have high RR trades and high returns a month to be able to trade full time. You’re right if you’re trading a small capital. If you only have $10,000, you will need 40% gain a month to get $4,000 of monthly income. You can fix this with prop firms. With the rise if prop firms, it is easier to control large amount of capital. If you’re consistent and profitable, it is not hard for you to pass prop firm challenges. To put into context, you only need 4% gain on a $100,000 account to achieve the same $4,000 you need. What is a "good trader" to you? High RR? High profitability? High win rate? Able to quit your 9-5? There are many different definitions of good. How good do you want to be? To me, there's always room for improvement. I do journaling to collect data. Collect as many data points as you can. You can perform data analysis. Analyze them by session, day, time, duration, types of confirmation, month, pair. You know your max drawdown, unprofitable days, months, session, type of trade. You know how your emotion plays a part in your trading results. Know your win probability, win rate, average RR, average stop loss size. Being consistent and being able to profit from the market every week is good, at least to me. What Is Learning? I love the concept of trying new things. If you try, you will either succeed, or you learn. Think of what’s the worst that can happen to you. If you’re learning to be a trader, the worst that can happen to you is that you lose some money. It’s recommended that you start with paper money anyway. So the worst thing that can happen is that you lose a few days of your life. At least you can tell yourself that you’ve tried and it doesn’t work. You won’t have any regrets in the future. Once you fail, you gain experience and knowledge. You can apply these skills to other areas in your life. In trading, you learn about risk management. You learn about the importance of being patient. All these skills compound. It’s not 1+1+1=3. It’s 1+1+1=5. Now, what if you succeed? The upside is unlimited. You’re risking a few days of your life for a potential benefit that can change your whole life. You can be trading for a living, leaving the 9 - 5 life behind you. All you got to do, is to try. I failed a lot. I tried ecommerce, YouTube, private label drop shipping, affiliate marketing and more. All these taught me soft skills that are transferrable. All these lead me to where I am today. A profitable trader with consistency. Personal Finance Framework A lot of people start trading live or forward testing. This is a wrong conception. You have to start with your personal finance. Get your personal finance in order before looking for a side hustle. Yes trading for most people begins as a side hustle. If you have bad debt, clear them first. Many of you have student loans or even consumer loans. Remember that these interests compound real quick if you don’t pay them off. Do not pay the least amount. Eliminate them completely, and fast. Next, make sure you have consistent month cash flow coming in. This is to pay your bills and put food onto your table. This step will ensure your survivability. Make sure you have savings. A rule of thumb is to have at least 6 months worth of expenditure saved up. You will need this money on rainy days. You can lose your job one fine day and will be glad to have this savings to buffer for the your next job. Medical bills can be huge. If you don’t have enough money, you might not get the medical attention you need. You might also need to resort to loans to pay off your medical bills. This brings me to the next point. Insurance. If you’re young and healthy, get insurance. The premium tends to be cheaper when you’re young and healthy. The older you get, the more expensive the premium gets. It’s better to lock in the premium when you’re young as this will save you money in the long run. But you might be thinking, you’re young and healthy, you won’t fall sick. That’s what I thought so too, until I was diagnosed with pneumonia at the age of 25. I was working out 3 times a day and thought I was very healthy. Luckily for me, I had insurance which covered my medical bills. There are also another school of thought. You might be thinking of skipping the insurance and investing the premium yourself. Now the risk here is that investing this amount of money does not guarantee a payout if you fall sick. Let’s say you’re 25 years old. Your insurance premium cost $1,000 a year and the coverage is $25,000. If you’re so unlucky to fall sick at year 2, you would have invested $2,000 in total into the stock market. Let’s say you’re a investing and trading genius and you manage to flip that $2,000 into $4,000. You're covered less than what the insurance will cover. Insurance is as a hedge against big medical cost. It’s a balance between hedging and growing your net worth. It all depends on how you secure you want to be when the time you fall sick and you lose your employment income. Achieve Consistency Once you have your personal finance in order, you have already managed 70% of your survival needs. It took me 5 years to achieve consistency. It can take you faster than 5 years. It will be hard for 1 or 2 years, but it will not stay tough forever. Happy to say that I've made my second payout this month with a new Prop Firm. My long-term holding portfolio is holding up great. This is due to good entries that I've made using technical analysis. Good technical analysis skills don't apply to Forex only. I've always dreamed of and wondered how does it feel to receive big payments consistently. I'm not getting large payouts yet, but I'm already accumulating many prop firm accounts. I focus on risk management, trade management, and trade psychology which I can control. By controlling what I can control, I am making my way to being a 7 figured funded trader. Stay consistent. Stay safe. Success is just around the corner. If you enjoy such content, feel free to click the like button and subscribe for more. Let me know what are your thoughts and learning points in the comments below so others can learn from you too! Please let me know what kind of topic you would like to read next :) Happy weekend!
TVC:SPXEducation
by Keeleytwj
3
How To Make $100+ A Day! Winning Trader Strategy (A+ Setup)Greetings, my wonderful followers! 😇 Today, our focus will be on understanding the mindset of successful traders, exploring their thoughts and what sets them apart from those who struggle, based on their way of thinking. We will examine a non-exhaustive list of insightful quotes that are worth knowing and remembering. I recommend keeping a notepad handy to jot down all the trading knowledge you've acquired over the years. First and foremost, please remember to show your support by liking and following me for more engaging content. Let's get started! ✅ - Trade what you observe: It is crucial to approach trading without bias. Technical analysis provides insights into the potential direction of prices, enabling you to make informed decisions. Allowing biases to cloud your judgment will only lead to confusion and missed opportunities, possibly resulting in financial losses. When analyzing the market, leave your emotions behind. - Plan your trades and follow your plan: It's as simple as it sounds. Create a trading plan and stick to it. Without a plan, you lack rules, and without rules, it's difficult to generate profits. - Embrace the trend: Setups that align with the prevailing trend have a higher probability of success. Therefore, it's advisable to favor bullish setups in a bullish trend and bearish setups in a bearish trend. While trend reversal setups can be enticing, it's important to treat them as exceptions. During periods of quantitative easing or similar economic measures, it's best to follow the market movement rather than trying to time the top or bottom, as it requires a considerable amount of luck. - Trading is 80% psychology and 20% technical analysis: This popular saying emphasizes the significance of psychology in trading. Successful traders possess strong psychological rules and a resilient mindset. They respect these rules, which instill confidence and tranquility. By adhering to their rules, they feel secure in their work, knowing that the odds are in their favor. - Buy low and sell high: "Buy low, sell high" is a strategy where you purchase stocks or securities at a low price and sell them at a higher price. However, this strategy can be challenging, as prices are influenced by emotions and psychology, making them difficult to predict. Traders employ various tactics, such as moving averages, analyzing the business cycle, and assessing consumer sentiment, to determine optimal entry and exit points. - Cut your losses, let profits run: This saying encourages traders to exit losing positions promptly while allowing profitable trades to continue. Assuming the trader follows a sound trading strategy that consistently yields positive results, following this rule allows profits to accumulate over time while minimizing losses. Consequently, it enhances the overall trading experience. - Patience is crucial: One of the cardinal rules in day trading is to exercise patience. Throughout the day, numerous opportunities may arise. However, it's important to wait for the right opportunity that aligns with your specific rules and trading plan. Sometimes, refraining from making any trades at all requires immense patience. With patience and vigilance, most trades will be profitable. - Establishing good trading habits, having a well-defined trading plan, and following sound trading rules are self-explanatory. These three components form the foundation for successful trading. - Set and forget: This approach involves opening a position with predetermined stop-loss, take-profit, and entry levels. Once the trade is activated, you let it run without any further management. Whether the trade ends in a profit or loss, you allow the price to fluctuate according to the predefined parameters, minimizing the need for constant interaction. - Trading is a game of probabilities: Successful traders thoroughly understand the probabilities associated with each trade. They skillfully utilize this knowledge to increase their chances of achieving long-term success. Remember to show your support by liking and following me for more valuable content. That's all for now. Wishing you the best, and may you have a fantastic weekend!
Education
by FortuneAI
1
Trading SECRET: How to Enter & Exit like a ProOver the past five years of trading, I have recognized the importance of continuously critiquing myself and my trading strategy. I diligently monitor my performance on a daily, weekly, monthly, quarterly, and yearly basis. Here's a concise list of the rules I have followed prior to entering and exiting a trade: ✅ Entry Rules Ensuring that the stop loss is positioned beyond the strongest support or resistance line. Staying disciplined and adhering to my trading rules. Assessing the risk/reward ratio and confirming its acceptability. Double-check my entry, stop loss, and target position for accuracy. Considering any potential news announcements that could impact the trade. Evaluating the bid/ask spread to ensure it falls within the normal range for the specific currency pair, trading session, and time. Verifying that I am not risking more than my agreed-upon 1%. Taking into account correlation and avoiding trades that contradict my existing open positions. Confirming that the market exhibits sufficient volume and liquidity. ✅ Exit Rules Evaluating if the market has behaved as predicted and staying on track accordingly. Assessing if the trade has reached a support or resistance line. Reviewing whether the stop loss has been placed too far away or too close. Considering if I am exiting the trade prematurely. If unsure about the trade, exiting immediately. Exiting immediately if I acted impatiently and entered the trade prematurely. Identifying any upcoming news events that could impact the trade. Observing if the trade is changing directions. Reminding myself not to take profits too early, avoiding exiting before reaching the target line. 👉 I often receive inquiries about trading entries. Therefore, I'm sharing a few entry strategies that you can incorporate into your own trading: Range Fade: This strategy involves buying at the range bottoms and selling at the range tops. The risk-reward ratio may not be ideal for many traders, given that the range is usually small. However, by placing the stop loss a few percentage points beyond the range, you can maximize the ratio. Reversal: This entry approach involves entering at the most recent extreme or key level. While this method is quite popular, it often goes against my first rule: "never fight the trend, he's your friend." However, I do consider multi-day/week key levels in my ideas. Breakout: This strategy involves entering a trade as the price breaks out of a range or pattern. It is a reliable option, especially for beginners who are keen on identifying repetitive patterns in the market. For example, you can sell at the neckline of a head and shoulders pattern and profit from it. However, it's important to note that the more complex patterns you observe, the fewer people are likely to use them, which may reduce their significance. Pullback: This entry approach involves entering a trade after a minor reversal or retest. Statistically speaking, this is one of the most frequently used entries in my trading. It is a simple method that allows you to follow the trend. Identify key points, consider Fibonacci levels, and ensure it's not a complete trend reversal. Although you may miss out on a few percentage points of profit using this approach, it can positively impact your long-term profitability. THANK YOU, MY LOVELY FOLLOWERS, FOR TAKING THE TIME TO READ. ❤️
Education
by FortuneAI
This Breakout Trading Strategy will create MILLIONAIRES...Attention, traders, Breakout trading stands as one of the most widely used trading strategies, offering a seemingly simple concept that becomes intricate and convoluted in practice. In this article, we will explore seven essential steps that every breakout trader should adhere to. 📚To provide a brief overview of breakout trading, this approach revolves around identifying significant levels such as horizontal support/resistance or trend lines, anticipating their potential breakthrough, and capitalizing on the resulting substantial market movement. 1️⃣Without surprise, the first responsibility of a breakout trader involves identifying key levels, preferably on weekly or daily timeframes. 2️⃣Once these key levels have been recognized, a breakout trader must exercise patience and await the confirmation of a breakout. This is where many traders stumble. The challenge lies in having clear and dependable rules to validate a confirmed breakout. I personally employ the following rule: a breakout will be deemed confirmed when the candle closes above/below the structure on the highest timeframe where the structure is identifiable. 3️⃣After confirming the breakout, the subsequent step entails waiting for a retest of the broken level. Retesting is crucial as it provides a more favorable risk-to-reward ratio for the trade. While there is no guarantee that the price will retest the broken level, resulting in missed trading opportunities, retest trading generally yields higher gains in the long run. 4️⃣When initiating a trade on a retest, it is imperative to establish precise target levels—levels at which profits will be taken. Novice traders often make numerous errors at this stage. Remember that your targets should be realistic and based on the nearest strong structure levels rather than your desired returns. 5️⃣Additionally, a breakout trader must set a stop loss—a level of protection set below/above a previous minor structure to safeguard against stop-hunting. The stop loss represents the point at which the trader's predictions are proven incorrect and renders the trading setup invalid. 6️⃣Once a trading position has been opened and stop loss and take profit levels are set, patience becomes paramount. There is no guarantee that the price will experience a sharp rise or fall immediately after the breakout. The market may coil and consolidate for an extended period before exhibiting significant movement. A breakout trader must exercise patience and refrain from allowing emotions to interfere. 7️⃣Finally, it is crucial to remember that exit points are determined by stop loss and take profit levels. Adjusting the stop loss in the event of a drawdown, prematurely taking profits, or extending targets can be detrimental to your trading. Remain disciplined, avoid greed, and keep emotions in check. Naturally, this seven-step trading plan alone is not sufficient for profitable breakout trading. Each step of the plan requires careful consideration of various nuances. Nevertheless, let this plan serve as your initial guideline: learn and adhere to it, while continuously refining its rules over time until you become a consistently profitable trader. Are you engaged in breakout trading? ❤️Please show your support for this idea with likes and comments!❤️
Education
by FortuneAI
Why 90% Of Traders FAIL⁉️ Trading is one of the most fascinating and exciting professions in the world. It promises huge profits, financial independence, and the ability to work from anywhere. But with great rewards come great risks, and 90% of traders fail. Why do so many traders fail? Let's explore the reasons. 📚Lack of education: Many traders jump into trading without the proper education or training. They don't understand the market dynamics, technical analysis, and risk management. Trading is a skill that needs to be learned and practiced over time. Without education, traders are like blind people trying to navigate through a maze. 💔Emotional trading: Emotions are the biggest enemy of traders. Fear, greed, and hope can cloud judgment and lead to poor decision-making. Successful trading requires discipline and emotional control. Traders must learn to keep their emotions in check and stick to their trading plans. 📉Overtrading: Many traders believe that more trades translate into more profits. However, overtrading can lead to burnout, stress, and losses. Traders must focus on quality trades, not quantity. 🆘Lack of risk management: Trading involves risk, and traders must learn to manage it. Risk management includes setting stop-loss orders, using proper position sizing, and diversification. Traders who don't manage risks can quickly wipe out their accounts. ❌Unrealistic expectations: Trading is not a get-rich-quick scheme. It requires patience, persistence, and hard work. Many traders have unrealistic expectations about their profits and timelines. They give up too soon or take too much risk in search of quick profits. So, what can traders do to avoid failure? ✅Firstly, educate themselves. Learn the fundamentals of trading, technical analysis, and risk management. Investors can take various online courses for trading like those from Udacity, the Trading Academy, etc. ✅Secondly, manage emotions and develop discipline. Learn how to control your emotions and stick to your trading plan. Traders must treat trading as a business and follow strict rules like any other business. ✅Thirdly, trade with proper risk management. Develop a risk management strategy before starting trading. Use stop-loss orders, never risk more than you can afford to lose, and diversify your portfolio. 🧠In conclusion, trading can be a rewarding profession that offers many benefits. However, traders must be aware of the risks and pitfalls. By educating themselves, managing emotions, and developing robust risk management strategies traders get a good chance of succeeding in trading. Good luck! 😸Thank you for reading buddy, hope you learned something new today😸 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
14
Unveiling the Impact of #FOMC Decisions on #WTI, #Gold, #USD Today was #FOMC! I'm Sure most of us had same experience on BLACKBULL:WTI and $OANDA:XAUUSD. I Just wanted to write about What is #FOMC and It's impact on #WTI, #Gold and #USD, Maybe somebody has lots of questions about that, so I try to do my best regarding captioned subject. The Federal Open Market Committee (#FOMC) plays a crucial role in shaping monetary policy in the United States. The decisions made by this committee have significant implications for various financial markets, including commodities like West Texas Intermediate (#WTI) crude oil, #gold, and the U.S. dollar (#USD). Understanding the impact of FOMC decisions on these assets is essential for traders, investors, and market participants. The FOMC's Role and Decision-Making Process: The FOMC is composed of members from the Federal Reserve System who are responsible for setting monetary policy. These members regularly convene to assess economic conditions, review data, and deliberate on the best course of action. One of the most critical outcomes of these meetings is the announcement of the federal funds rate, which influences borrowing costs and has a broad impact on the financial landscape. BLACKBULL:WTI : FOMC decisions have a notable impact on WTI crude oil prices. Changes in interest rates directly affect borrowing costs for businesses, which, in turn, influence their operations and investment decisions. When interest rates decrease, economic growth is often stimulated, leading to increased demand for oil and potentially driving up prices. Conversely, an increase in interest rates may have the opposite effect, dampening economic activity and reducing oil demand. Additionally, FOMC decisions indirectly impact WTI crude oil prices through their effects on the U.S. dollar. Since oil is globally priced in dollars, fluctuations in the dollar's value can influence the purchasing power of oil-importing countries. A weaker dollar can make oil relatively cheaper, increasing demand and potentially bolstering #WTI prices. OANDA:XAUUSD : The relationship between FOMC decisions and gold prices is complex and multi-faceted. Gold is often considered a safe-haven asset and a store of value during times of economic uncertainty. When the FOMC adopts a dovish or accommodative monetary policy stance, such as lowering interest rates or implementing quantitative easing measures, it diminishes the attractiveness of holding U.S. dollars. Consequently, investors may seek refuge in #gold, leading to an increase in gold prices. Conversely, a hawkish stance by the FOMC, signaled by raising interest rates or indicating tighter monetary policy, can strengthen the U.S. dollar and exert downward pressure on #gold prices. As interest rates rise, the opportunity cost of holding gold, which does not yield interest or dividends, increases. This can make alternative investments more appealing, potentially reducing demand for gold. PEPPERSTONE:USDX : FOMC decisions have a direct and significant impact on the value of the #USD. Changes in interest rates influence the relative attractiveness of U.S. dollar-denominated assets, which in turn affects currency exchange rates. A rise in interest rates can make the #USD more appealing to investors seeking higher yields, potentially strengthening the currency. Conversely, a reduction in interest rates may lead to a decline in the value of the U.S. dollar. Moreover, FOMC decisions and accompanying statements provide insights into the central bank's economic outlook. Favorable economic projections and indications of a tightening monetary policy can bolster confidence in the #USD. Conversely, cautious or pessimistic remarks may weaken the currency. Final Words: FOMC decisions have a substantial impact on #WTI crude oil, #gold, and the value of the #USD. Changes in interest rates directly influence borrowing costs, economic growth, and investment decisions, thereby impacting #WTI crude oil prices. Additionally, the effects of FOMC decisions on the U.S. dollar indirectly influence #WTI crude oil This article serves as a comprehensive guide, offering valuable insights that will enhance your understanding of the FOMC and its impact on financial markets AND May your journey through the intricacies of the FOMC empower you with a solid strategy and guide you towards successful trades, or encourage you to exercise caution and refrain from trading during these significant events. Wishing you the best of luck in your endeavors!
BLACKBULL:WTIEducation
by POUSHEINI
The AEM Framework: 3-Step Guide to Successful TradingToday, I'd like to introduce you to the 'AEM' framework – a three-step process to successful trading. This framework is designed for everyone, from beginners starting their journey to seasoned professionals looking to refine their strategies. It involves three fundamental steps: Analyze, Execute, and Manage. Let's break down each element: 🔍 'A' for Analyze The first step to becoming a successful trader is to understand yourself and find a trading style that suits your personality, risk tolerance, and financial goals. This includes your emotional comfort with taking risks, your patience levels, and your time commitment to trading. Once you've figured out your trading style, the next step is to analyze potential strategies. Whether you're inclined towards fundamental analysis, technical analysis, or a combination of both, you must thoroughly understand the strategies you want to apply. Finally, analyze your chosen strategies and yourself to create a robust trading plan. Your trading plan should include what you'll trade, when you'll enter and exit trades, and your criteria for decision-making. Remember, the goal isn't to make perfect predictions but to follow a consistent plan that can potentially yield positive results over the long term. 🎯 'E' for Execute The second phase is execution. You've made your plan, and now it's time to put it into action. Execute your trades according to your strategy, without letting emotions cloud your judgement. Remember, it's about sticking to your plan – not chasing profits or running from losses. But executing your plan isn't just about trading. It's about discipline and consistency, regularly reviewing your trading activity, making adjustments as necessary, and continuously learning from your experiences. 📊 'M' for Manage The final step in the AEM framework involves managing several aspects of your trading: Manage Yourself: Trading can be emotionally taxing. Maintain your physical and mental health to ensure you're always in the best shape to make rational decisions. Manage Your Risk: No strategy is bulletproof. Always use stop losses, position sizing, and diversification to manage your risk effectively. Manage Your Trades: Monitor your trades, keep records, and review them periodically to identify patterns, learn from your mistakes, and improve your strategy. Manage Your Money: Keep your capital safe. Never risk more than a small percentage of your trading capital on any single trade, and be sure to keep some funds in reserve for unexpected opportunities or setbacks. The AEM approach is a comprehensive method that can assist you at all levels in creating, executing, and managing a successful trading plan. It encourages introspection, disciplined execution, and careful management. Remember, the journey to trading success isn't always smooth, but the right approach and mindset can make it considerably more navigable.
Education
by TheFxAce
13
👻3 Steps To Become A Professional Trader👻 Becoming a professional trader is not an easy task. While trading may seem exciting and lucrative, it requires dedication, discipline, and a sound understanding of the markets. In this article, we’ll share with you three key steps to becoming a professional trader. 🌺Step 1: Build a Strong Foundation Before beginning your journey as a trader, it’s essential to build a strong foundation. This involves educating yourself about the financial markets, including learning about different trading strategies, technical analysis, risk management, and market psychology. The good news is there are plenty of resources available online to learn about trading principles and strategies. Another part of building a strong foundation involves studying the market and practicing with demo accounts. Demo accounts allow you to practice trading in a simulated environment that replicates the real market. 🌸Step 2: Develop a Trading Plan Developing a trading plan iscrucial to becoming a successful trader. A trading plan should outline your objectives, risk management strategies, trading rules, and decisions about entry and exit points. It would help if you also identified what type of trader you are, whether that’s a day trader, swing trader, or a position trader. A trading plan gives you a framework to base your trading decisions on, which can help you remain disciplined and make smart choices based on data, not emotions. 🌼Step 3: Consistency is Key Consistency is key in trading. It’s not enough to have a single profitable trade; you need to be able to make profitable trades consistently. To achieve this, you need to have patience, discipline, and a strong mindset. One of the essential aspects of consistency in trading is understanding and managing risk. This involves limiting potential losses and setting profit targets to ensure you don’t go overboard. Lastly, you need to set realistic expectations and maintain good habits like keeping a trading journal, analyzing your trades, and continuously improving your trading strategies. In conclusion, while there isn’t a specific recipe for success when it comes to trading, these three steps outline the fundamental elements of becoming a professional trader. With dedication, effort, and discipline, you too can make a living or even a fortune from trading! Please cheer me up with a like and a nice comment😸❤️ Please, support my work with like and comment! Love you, my dear followers!👩‍💻🌸
Education
by AnabelSignals
8
How to become an ALPHA TraderMastering the Path to Becoming an Alpha Trader: Essential Principles for Success Exercise Discipline: Avoid Overtrading Maintaining discipline is crucial in the fast-paced world of trading. Resist the temptation to trade excessively, as quality always trumps quantity. Remember, patience is a virtue, and waiting for high-quality setups will yield better results. Seize Opportunities: Avoid Under-trading Recognize valuable trade setups and have the confidence to take action. Don't let hesitation or fear hold you back from executing on well-analyzed opportunities. Trust your instincts and capitalize on favorable market conditions. Manage Risk: Take Control of Your Losses While profit is enticing, effective risk management is the cornerstone of successful trading. Acknowledge the potential for losses and implement risk control measures to safeguard your capital. Limiting losses is just as important as maximizing profits. Streamline Your Approach: Simplify Your Strategy Amidst the sea of information available, it's easy to drown in complexity. Streamline your trading approach by focusing on a few proven strategies and indicators that resonate with you. Simplifying your strategy will enhance clarity and decision-making. Trade with Precision: Embrace Robotic Execution Emotions have no place in trading. Develop a systematic approach that removes emotional biases from your decision-making process. Execute trades based on predefined rules, allowing you to act with discipline and consistency. Reflect and Evolve: Learn Your Strengths and Weaknesses Successful traders are self-aware and continuously strive for self-improvement. Analyze your trading behaviors, strengths, and weaknesses. Leverage your strengths and work on overcoming your weaknesses to evolve as a trader. Amplify Success: Double Down on High-Yield Trades Identify trading activities that consistently yield favorable results. Once you recognize your areas of strength, allocate more resources and focus on maximizing returns in those specific areas. Amplify your success by capitalizing on what works best for you. Embrace the Basics: Don't Fear Going Back to Square One If you find yourself in a rut or facing challenges, don't hesitate to revisit the fundamental aspects of trading. Revisit the basics, reinforce your knowledge, and reaffirm your understanding of core trading principles. Building a strong foundation is key to long-term success. Remember, adopting these essential principles and incorporating them into your trading routine can significantly enhance your journey to becoming an alpha trader. Engage with the content, share your own best trading tips, and show your support through likes and comments. Stay committed, keep learning, and look forward to more valuable insights. Thank you for your continued readership, and we'll see you in the next installment! ❤️
Education
by FortuneAI
Developing a Trading Plan: 7 Key Aspects to Consider Becoming a successful trader requires more than just simply buying and selling assets. To be consistently profitable, traders must create and stick to a well-designed trading plan. A trading plan is a detailed document that outlines a trader's approach to the market and establishes rules for each step of the trading process. The following are seven key aspects that a trading plan should include. ✅Timeframe The timeframe determines the length of time each position will be held open. Traders can choose a long-term, medium-term, or short-term trading strategy. Long-term strategies may require holding a position for several months, while short-term strategies require closing a trade within a day, or even just a few minutes. ✅Risk Management Risk management is the process of identifying, assessing, and prioritizing risks or uncertainties that may affect trading outcomes. A trader's risk management strategy may involve using a fixed lot size or a percentage of the account for each trade. With proper risk management, traders can reduce their losses and maximize their profits. ✅Market Conditions Market conditions refer to whether the market is trending or ranging. A trending market is one in which prices move persistently in one direction, while a ranging market is one in which prices move sideways between a range of support and resistance levels. A trader should have different strategies for each type of market condition. ✅Choosing the Market to Trade Traders must choose which market they want to trade, based on their trading plan, resources, and experience. Forex, stocks, commodities, and cryptocurrencies are some of the markets that traders can choose from. It is advisable to trade in markets that a trader understands and has experience in. ✅Where to Enter Traders can use different methods to enter a trade, such as pullbacks, breakouts, or crossovers. A pullback is a temporary reversal in the direction of an asset's price movement. A breakout occurs when an asset's price moves through a support or resistance level, and a crossover is when two moving averages cross over each other. ✅Stop Loss A stop loss is an order placed with a broker to buy or sell a security when it reaches a certain price. Traders can use percentage-based or market structure stop-losses. A market structure stop-loss is set at a support or resistance level and is based on the analysis of market structure. ✅Targets Traders can have fixed or trailing targets. Fixed targets are predetermined profit objectives that are fixed in advance. Trailing targets are profit targets that move along with the price of the trade as it goes in the trader's favor. In conclusion, developing a trading plan is an essential step for every trader. It allows traders to make informed decisions based on their analysis, experience, and personal risk tolerance. It's important to review and adjust the plan regularly based on market conditions and changes in personal goals and financial conditions. By adhering to a trading plan, traders can improve their chances of success in the market. I hope this post was helpful to some of our beginner traders😊 Dear followers, let me know, what topic interests you for new educational posts?
BITSTAMP:BTCUSDEducation
by SignalProvider
10
Important principles for tradingThese trade setups encompass various important principles for successful trading. Here's a summary of each point: 1. A bad trade or a series of bad trades shouldn't discourage you. It's important to focus on the long-term performance rather than individual trades. 2. Don't let the outcome of your previous trade influence your decision-making for the next trade. Each trade is independent, and past results should not cloud your judgment. 3. Always stick to your trading plan, regardless of market conditions. Consistency is key to long-term success. 4. Concentrate on trading one specific pair to develop a deeper understanding of its dynamics and improve your effectiveness. 5. Accept that losses are a part of trading and learn to manage and mitigate risks. Reducing anxiety and stress will help you make better decisions. 6. Understand your trading style and choose a trading discipline that aligns with your strengths. Whether you are better suited for short-term, swing, or intraday trading depends on your reaction time and preferences. 7. Trading without a plan, failing to use stop-loss orders, or overusing your account balance can have detrimental effects. Stick to your plan and implement risk management strategies. 8. Recognize that trading is based on probabilities, not certainties. Let go of the need for perfection and focus on reliable trading models and risk management. 9. Keep your ego in check and avoid making emotional decisions. Objectivity and rationality are essential in trading. 10. While day traders focus on smaller timeframes, it's important to consider long-term charts for a comprehensive view of the market. 11. Set realistic expectations and avoid setting overly ambitious goals that can lead to impulsive and unsuccessful trades. Deviating from your plan due to unrealistic goals is counterproductive. 12. Consistency and adherence to risk management and trading plans are more important than the size of your trading positions. Even with a small capital, you can achieve remarkable results through discipline and compounding profits. 13. Avoid unnecessary complexity in your trading approach. A simple system with proper risk management is more profitable and less stressful. Embrace the occasional losses as part of your system. 14. If your trading system consistently fails to yield positive results, investigate the underlying causes and identify your weaknesses. Adapt and refine your approach accordingly. 15. Trading should not consume all your free time. Focus on specific trading hours aligned with the economic calendar and maintain a healthy work-life balance. 16. Overtrading is detrimental to your trading performance. Stick to the setups defined in your trading strategy and trust that new opportunities will arise. Be patient and realistic. 17. Avoid trading when you're not in the right mindset or experiencing negative emotions. Emotional trading can lead to impulsive and irrational decisions. Take breaks and ensure a clear state of mind before trading. 18. Maintaining a trading journal is crucial for tracking trades, analyzing performance, and managing emotions. It promotes organization and discipline, and helps you learn from past experiences. 19. Approach your trading terminal with a calm and focused mindset, similar to how a skilled locksmith approaches their work. Automate your actions through experience and eliminate emotional influences. 20. A professional trader embodies the traits of an analyst, a trader, and avoids the mindset of a gambler. Listen to your analytical side and make informed decisions rather than relying on luck or chance. By integrating these trade setups into your trading approach, you can improve your decision-making, manage emotions effectively, and enhance your overall trading performance. ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
Emotions It is impossible to have a prejudice every day. However, it is possible to designate rules, models and criteria in order to exclude decision-making on an emotional basis. Notice, research and record everything that happens before, after and during each of your trades. Pay attention to the time period when errors occur and analyze all the details: triggers, thoughts, emotions, behavior, actions, changes in decision making, changes in the perception of the market, opportunities or current positions, trading failures. Before opening the next trade, remember your previous experience. This will help you avoid repeating old mistakes. The moments after the completion of transactions provide an excellent opportunity to track exactly how you came to this and what thoughts, emotions manifested in the moment. The recording process itself can also help to defuse the emotional state. Your first goal is to reach a level of complete detail in your trading strategy. Continue to map out your behavior pattern in as much detail as possible until you identify the initial trigger and analyze it as part of your trading preparation. During a trading session, try to write down new details. After, combine and analyze your notes to better prepare for the next session. Once you have identified the details associated with your trades, look for the early triggers that come before each one. You may be able to spot smaller errors or notice subtle changes in market perception. For example: you spend too much time on informational noise or make a trade that does not meet all the criteria of your trading plan. Create a working day schedule taking into account the instrument sessions. Set up a timer so that it fires at regular intervals during your scheduled break and doesn't disrupt your work. During this time, take a few minutes to become aware of your thought process and understand how you feel. If there are signs of a problem, write them down. Understand the intensity of the emotions. You may think that anger and frustration are two different emotions, but anger is just heightened frustration. Understanding how an emotion intensifies will help you recognize the details of your behavior pattern, including the original trigger. .... Have you ever faced a situation where, despite having a well-designed trading plan and a carefully crafted trading strategy, your actual trading day turned out to be completely unpredictable? In such instances, your actions deviate from the original plan, and momentary weakness casts doubt on the effectiveness of the entire trading session. These unexpected emotions can catch you off guard. One of the reasons for this is a lack of recognition of what is happening. Emotions often arise as immediate reactions or reflexes triggered by certain events, which traders often misinterpret as problems. Let's consider the example of a loss from a trade. Many traders may become furious and enter positions without following proper trading patterns. However, this doesn't happen to everyone. Instead of expressing anger, some traders easily cope with failures, instinctively understanding the situation and turning it into opportunities. Therefore, a crucial aspect of developing a trading plan is identifying and addressing your own internal struggles, which serve as the underlying cause of the problem. It's important to note that in many cases, the initial trigger for these emotions is subtle and barely perceptible consciously, yet it already impacts your mental stability and your habitual interaction with the market. Even if the trading day starts off on the wrong foot, by regaining composure at the right moment and avoiding impulsive reactions, you can prevent basic mistakes and maintain control over your psychological state, ultimately improving your performance. The secondary arousal occurs when a trader becomes aware of or reacts to the impulses, thoughts, and actions that occurred initially. In simple terms, the mind and thoughts amplify the emotions that have already emerged. In everyday life, people often don't differentiate between these experiences. However, if the source of the reflex is not identified, along with the secondary causes, finding a solution to the situation becomes challenging. Triggers will continue to generate more and more emotions that need to be managed. Awareness of the initial impulse and the subsequent reaction are the two starting points that enable progress. After all, stressful situations can accumulate and overlap, creating a precedent for a cumulative effect. Trading is a business, not a game of chance. This is where it is important to keep a professional mindset while following the trading plan. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
[Education]Don't Make Love With The MarketTrade what you see, not what you feel. Human are emotional creatures. Believe it or not, I had attitude problems in the past. I get angry easily and this is a bad trait to be a trader. In the beginning when I was still a noob, I would fund a live account without learning how to trade properly. I buy and sell base off moving average, RSI, MACD, and signals. You guessed it, I burst plenty of accounts. Even if I win some trades, I would lose many more next. Whenever I lose a trade, I will feel angry. When I feel angry, can you guess what I do next? I revenge trade. I don't believe that gold will not go higher. Let me take another long position. Wait what the.. my trade got taken out again? I think this is a stop hunt. Last try. This time the price will sure go higher. "Opens another long position with larger lot size". And you guessed it. I wiped out my account trying to catch a falling knife. Ditch Your Emotions Keep your feelings and emotions and aside when trading. The market doesn't care if you're happy or sad today. It will do what it wants to do. You can't control how the price move. Neither do I. Unless you have in control billions of dollars. If you do, why are you even reading this? The problem is not with the market nor your trading strategy. The problem lies in YOU. You are the common factor here. All strategies can be profitable with the right execution, trade and risk management. But why can someone else be profitable but not you? It seems like everything is profitable until you put your own money in isn't it? When you allow your emotions to take over, you won't be rationale. You will take actions based off your emotions. If you feel doubt, you will look for confirmation not to take a trade. If you feel angry, you will take revenge trades. If you feel happy, you will feel like you won't lose your next trade and get complacent. If you feel overconfident, you will risk more on your next trade. If you feel fear, you will close your trade early for small profits. If you feel tired, why the heck are you still on the chart? Feelings are subjective and the market has no interest in it. The Downward Spiral Trading based off feeling is like gambling. Gambling belongs in a casino, not the financial market. Let's say, you feel like the market is heading towards a recession. Would you blindly short the market if the price did not give you any confirmation? This is the problem with you. You let emotions take over your decision making skills. This is why you cannot achieve profitability. You might be in a trade, price goes against you and you’re in drawdown. You fear that the price will take you out. You cut your trade. Price reverse and hit your profit target. You could have won the trade by following your plan, but you let your emotions take control of your decision. When this happens too many times, your profitability decrease significantly. This makes a profitable strategy becomes unprofitable because your trade management sucks. Not only will you lose money trading like this, but also precious time. How long did it take you to backtest that trading system? 1 day? 1 week? How many times are you going to repeat this and waste even more time? Even if I give you the holy grail trading strategy, you will still not achieve profitability. It's not the system. It's you. You will NOT achieve success in trading if you cannot master your emotions. Say goodbye to your financial freedom and a life of enjoyment. The only thing you can enjoy is the occasional small wins that you cut before the trade becomes a runner. You will still be unprofitable. Follow Your Plan If I have to summarize how I became profitable, it will be to follow your plan. Trade what you see because only you know your own analysis. You've backtest enough to see how your edge will play out over a large number of trades. Do not let other people’s analysis interfere with your trades. They could be looking at the 1 minute timeframe, but you're trading on the 15 minute timeframe. Price is fractal. If price is bullish on the 1 minute, it can be bearish on the 15 minute. Why do you want a second opinion on your trade? When price shows you what it’s doing, react to it. Do not anticipate what the price will do and assume that price will do exactly that. But Keeley, it’s so boring to wait for price to come back to my entry. I might miss the trade. I will take a short here because I’m expecting price to go lower and tap into my long order. People want to be in the action. How many times do you expect price to make a bearish retracement and tap you into your long position? How many times did you actually open a short position and expect your long to get tapped in? If price did not give you any confirmation, don't take the trade. The market will do what it wants to do. You can't expect the market to do exactly what you anticipate it to do. Experience When I was scalping on the seconds chart, I was loving every moment of it. I was constantly in a trade, catching all the movements. If I lose, it’s fine. I would always think that I have more opportunities coming soon. I would expect price to do what’s playing out in my mind. This was not sustainable as I was taking too many trades within a short period of time. Even on a tight spread account, spread on lower timeframe accounts for a chunk of my risk management. Your trading psychology should be strong when scalping on the lower timeframe. Scalping a few pips per trade is doable but it's stressful. I thought my trading psychology was good, until I experienced a losing streak. The more losses I experienced during the day, my psychology got affected more. This goes the same for losses in the same trading session. I’d do stupid things like risking more than normal, taking trades that I don’t usually take. I also take trades without confirmation. I used my feelings to trade as I expected price to play out what I wanted. Eventually, the win’s going to come right? This happened for a few weeks and I burst quite a few challenges. I lose quite a lot of motivation and called quits. I’m quite a lazy person. I do not like to sit in front of my laptop stalking TSXV:SPDR S&P 500 ETF Trust(SPY)$ , $Tesla Motors(TSLA)$ or $Apple(AAPL)$ and trade for a few hours straight. I took a few weeks off from charts and reflected. I look deep into myself for answers. I got the answers. I will try to be sufficient just by trading the higher timeframe. This way, I do not need to sit in front of my laptop for a few hours. I have the freedom to do what I like without sticking to my charts. This sits well with me too as this trading style fits my lifestyle. This way, I can avoid overtrading. I can easily see what I trade because each candle took 15 minutes to be completed. This kept my trading psychology at tip top condition. Framework PBJ Framework No this is not peanut butter and jelly. Let's breakdown the following: Plan : Know what to look out for. Know what to do before, during and after trading. Before entering a trade, know how much you’re risking. Know your entry signal, confirmation, and stop loss placement. Do you take partial profits? If yes, where will you take the profits? How much position will you take at each partial profit targets? If the price did not meet any of the condition, DO NOT take a trade. Be in the moment : During the trade, know how you’re going to manage your trade. Do you shift your stop loss to breakeven? Do you take partial profits? Do you scale into your trade? Check your emotions. Are you feeling anxious? Angry? Confident? Tired? Excited? Your emotions have no say when you're trading. Journal : After closing the trade, journal your trade. Write down how you feel before, during and after the trade. Write down how did you manage the trade. Give it a score from 1 - 5. This will help you in the future when you’re reviewing your trades. When you have 100 trades recorded, you can finally do your analysis. Look at the times when you trade based on feeling. How do they play out? Are those trades profitable? Look for the common factor on all your winners and losers. The more information you record on your journal, the more analysis you can perform. Achieving Profitability Using the PBJ Framework, I see great improvement in my trading skills. I started to be more present and conscious of what I'm feeling. I recorded almost everything. From my pre-trading ritual to post-trading ritual, I have all the data I need. I know how my emotions change throughout the trading session. I know how often my edge will play out. I know which days are profitable. I know which trading sessions are profitable. I know which months are profitable. I know which are my most profitable pairs. I find peace with losing. Why? I have all the data. I have evidence that my edge will be profitable if I take all the trades that appears in front of me. I avoided trading on days and session where I have the least profitability. Not only did this increased my win ratio, but profitability too. I was once unprofitable. Since then, I found consistency and manage to get funded with FTMO and The Funded Trader. My first payout was small. It's only USD$200 on a $10,000 account. Even so, this is one big step ahead in my milestone. I was targeting one payout for 2023 and I've achieved this target in May. I got my second payout in June. My goal was to get $50,000 funding by end of this year, but I've already achieved it in May. I've now stretched my goal to $200,000 funded by end of this year. The Ordinary Life Life always begins with one step outside of your comfort zone. - Shannon L. Alder To create an extraordinary life, take full responsibility for your actions and decisions. Stop blaming external factors, and focus on the things you can control. Take full responsibility of your trades, your mindset, and your emotions. If you can’t control what others think about you, then don’t. What are the things that you can control? How you treat yourself, your body and your mind. How you react to people and situations. How you think. What you do with your time. The people you choose to surround yourself with. How you treat others. Where you give your time, energy and attention. The contents that you consume. When you’re trying to do the extraordinary, the ordinary will try to stop you from doing. People don’t like to see you succeed. They heard that entrepreneurship is hard and risky. You could lose a lot of money. They think that they have the best interest in you. They like to stay in the comfort zone and you should stay there with them. They tell you to be realistic. You are not someone incredible of great success. Anything can happen, especially in the market. You can win with a wrong setup, and lose with the right setup. It’s up to you to take the first step. There will be a lot of what-ifs and negative scenarios in your head when you’re venturing into the unknown. The unknown is scary. But what if it turns out better than expected? What if everything should go well, actually went well? That’s something you can only find out if you take the first step. Guidance Trading is the easy part for many people. All trading strategies are profitable if you backtest them enough. The hard part of trading is actually coming up with an exact trading plan and risk management system. Many of you drown when it comes to a trading plan. Not know where to start when creating one is also a very big issue. You need to train and strengthen your psychology and discipline yourself. But you need a coach to guide you to the correct path. This is why even world class athletes like Usain Bolt has a coach. A coach gives guidance and a holistic review on your You can choose to grow alone. But having a coach an an accountability partner will help you achieve your goals faster. Imagine spending a year learning psychology and risk management, only to find out you were on the wrong track. If you had a coach and mentor, you would have saved yourself one year of trial and error. You could be profiting from the market so much earlier. Remember, trading is not an easy hustle. It take years of hard work, losses and, breakeven before you can achieve consistent profitability. Stay consistent. Stay safe. Success is just around the corner. If you enjoy such content, feel free to click the like button and subscribe for more. Let me know what are your thoughts and learning points in the comments below so others can learn from you too! Please let me know what kind of topic you would like to read next :) Happy weekend!
TVC:SPXEducation
by Keeleytwj
2
How to make 100$ a Day in Tradingf you are relatively new to trading crypto currencies, then this tutorial is what you need. In this tutorial, I will try to explain how you can use crypto to grow your capital consistently everyday. Don’t just Hodl Hodling (a.k.a. holding currencies) is the strategy of buying some crypto asset (e.g. Litecoin) and holding it for many days, weeks, months or even years. This may be a good strategy for newly launched ICOs that may double, triple or quadruple in value soon. But I personally advise you against holding, in other words, don’t follow the herd and don’t be a headless chicken. The reason why holding isn’t a very practical move for well established coins is because of their volatility. Risk of holding Holding is more like gambling than trading, simply because the risk is too high and there’s too much uncertainty. My strategy is to trade them continuously. I am a huge believer that assets unused diminish — meaning: whatever you don’t use, you lose. Saving piles of coins under your bed, hoping their value will increase isn’t always the best way — unless you are willing to take that risk or you know with high certainty that the price of some crypto coin will go up in the next few days, weeks or months. Always research properly about the coin and project before buying for long term. There are some ALTs which are down more than 99% and people are still holding them in hopes (who bought them at ATH) Day Trading Trading assets on a regular basis could be a safer bet and might be more profitable for you. So you can actually take the risk of buying today and selling tomorrow or within the next couple of days. There is no guarantee that tomorrow’s price will be higher than your current buy price — but it’s still better than crossing your fingers and holding indefinitely. You can trade according to your strategy and with a proper plan, Use calculated risks. Try to Day Trade only high liquidity assets like BTC or ETH to overcome manipulation and high volatility. Remember that profits come from buying as low as possible and consequently selling as high as possible. So everything starts with finding a good low entry position. But don’t be scared because you will encounter a few red candlesticks along the way. And remember, not every trade you make will be profitable, but if you remain consistent with your strategy then you’ll have more wins than losses. Even though trading can be a risky business, it is only so if you don’t have a clue of what you’re doing. But once you have a basic plan that works, you are set. I hope this post served useful to many aspiring crypto traders. Once you master trading with proper consistency, practice, patience and hardwork then it will be highly profitable!
Education
by FortuneAI
1
This Day Trading Legend turned $13,600 into $1 BillionJapan’s famed ‘bedroom’ trader Takashi Kotegawa is one of its most famous intra day traders,who made a fortune from trading stocks on the Tokyo Stock Exchange in the early 2000s. Apparently he grew a small account of roughly $13,600 to $153 million in just about 8 years! In fact sometimes he even made millions per trade. Now, driven by ambition, he sets his sights on achieving billionaire status. Also known in the Japanese trading community by his chatroom username “BNF” and often nicknamed as“J-Com man”, Takashi Kotegawa was born on March 5, 1978, in Ichikawa, Chiba, Japan. He reportedly started trading stocks on the Tokyo Stock Exchange in the bear market of 2001.Despite being a multi-millionaire and one of the most popular intra day trader in Japan, he is believed to be a humble guy and doesn’t buy fancy cars or eat lavish meals. However, one thing that he reportedly did splurge on, was a top-floor apartment that he bought for a whopping 400 million yen. BNF's path was far from easy. As a college student, he faced financial constraints like many others, striving to make ends meet. However, he possessed an unwavering determination to outperform the financial system. The moniker "BNF" originated from his admiration for Victor Niederhoffer, an American hedge fund manager who incurred significant losses in the stock market. Takashi Kotegawa adopted the abbreviation as a tribute to his mentor. BNF, a broke 20-year-old college student, developed an interest in the stock market after watching a television news segment. He resolved to learn technical analysis (TA) and conquer the market to secure a more comfortable life. For two years, BNF worked various jobs to raise capital while concurrently immersing himself in the intricacies of the stock market. His perseverance paid off, and he began investing in Japanese stocks during a bear market, where he remained calm and logical amidst widespread fear and panic. In 2005, Takashi made millions through a single trade in J-Com Holdings after its IPO on the Tokyo Stock Exchange. That opportunity was thanks to an error committed by a trader at Mizuho Securities, who accidentally sold 610,000 shares at one yen each instead of selling one share at 610,000 yen! That huge sell order sent the stock price crashing, and ofcourse, Takashi saw an opportunity over there. He bought 7,100 shares while the price was down. While he chose to sell a part of his position in the bounce and held some shares overnight, he had reportedly made more than $17 million at the end of that trade. It's natural to wonder about the ‘magic’ strategy that Takashi used to make millions in the stock market. But all that's been clear till day due to the absence of adequate details about it. Neither does he share every trade publicly nor much information at all about how he made his millions. But apparently, it's believed that he thinks that it’s easier to make money in bear markets than in bull markets, and looks for short-term rebound plays in stocks that are down. Through discipline, consistency, rationality, determination, and focus, BNF achieved remarkable success. Within two years, he transformed his initial investment of $13,600 into an impressive $15 million, which marked only the beginning of his extraordinary trading journey. Regrettably, BNF once deviated from his trading rules and principles by investing in U.S. stocks instead of Japanese stocks. Based on a misguided assumption that U.S. bank shares were collapsing, he made a substantial investment in bank shares during the housing market crash. This move resulted in a loss of over $10 million, teaching him a valuable lesson about the importance of adhering to his trading principles. Some people describe Takashi Kotegawa’s trading strategy as divergence day trading, wherein he uses indicators like Bollinger Bands, Relative Strength Index (RSI), volume ratio, and the 25-day moving average for decision making. He also supposedly likes to buy stocks that are at least 20% below the 25-day moving average and then profit from the bounce. And, since the markets constantly change, he tends to adapt the percentage he looks for based on the overall market and individual sectors. He also gets a feel for how stocks in different sectors move and how fast they rebound, and then accordingly takes his decisions. More importantly, like all day traders, he too likes to capitalize on momentum, especially when the market is down.
Education
by FortuneAI
4
Harsh Truth About Trading: In Books VS In Reality Most traders start their trading journey by studying theory first, reading books or taking video courses before putting these newfound skills into practice. But once they start trading on a real market, they quickly realize that things are not as straightforward as the books make them out to be. In this educational article, we will take a critical look at the difference between theoretical knowledge and practical experience. 📍And first of all, do not get me wrong. I am not trying to imply that trading books or courses are bad. Theoretical knowledge is essential for successful trading, and of course the books are the best source of that. The problem is, however, that books can be misleading. The examples in books are always tailored. When the authors are looking for the examples of the patterns, of key levels, they are looking for the ideal cases. 📍The problem becomes even worse, when one start studying the trade examples in books. And of course, the authors choose the brilliant winning trades with huge take profits and tiny stop losses. I guess you saw these pictures of "sniper" entry trades with 5/1 R/R. The inexperienced trader may start thinking that the markets are perfect and act in total accordance with the books. That all the trades that he will take will bring tremendous profits. That the identified patterns will work exactly as it was described. 📍The harsh truth is that books and courses are simply the compositions of different examples, cases and market situations. In reality, each and every trading setup is unique. The reaction of the price to the same pattern will be always different. Please, realize the fact that books are only good for acquiring the knowledge. But in order to survive on financial markets, you need the experience. And the experience will be gained only after studying thousands of real market examples in real time. 📍Here is the example of a double top pattern that we were trading with my students on AUDJPY. In books, double tops are always perfect. Once the market breaks the neckline, the price retests that and then quickly drops. So the one can set a tiny stop loss and a big take profit. However, after a retest of a broken neckline, AUDJPY bounced and the market maker was stop hunting the newbies. Our stop loss was way above the head, and we managed to survive. Even though the pattern triggered a bearish movement, the reaction of the market was far from perfect. Be prepared, that the market will much different from what you see in the books. Good luck to you!
Education
by VasilyTrader
7
Master Trading Psychology "Trade what you see, not what you think. Successful risk management requires confident biases and the courage to stick to your strategy even when the market behaves unexpectedly. As traders, we must adapt and manage the market to minimize risk and maximize profits. The market is the ultimate judge, jury, and employer." "No position is a position. Before entering a trade, conduct thorough research and observations. Anticipate different pricing scenarios and have a clear plan for each situation. Assess how similar events have affected pricing in the past. If you don't see a favorable trading opportunity, it's best to exercise patience and wait for the right moment." "Combatting FOMO (Fear of Missing Out). FOMO often leads to buying or shorting assets at inflated prices. Watching a coin move without your participation can be frustrating, but in the dynamic cryptocurrency market, there will always be missed opportunities. Remember, it's worse to succumb to FOMO than to experience a loss. Stay disciplined and focus on quality trades." "Correct position sizing to avoid fear. Effective trade management hinges on proper position sizing. Many traders fall into the trap of overexposing themselves, increasing the risk of significant losses and hindering their ability to manage trades effectively. By reducing position size, emotions are minimized, and trade control is improved, ultimately leading to better overall profitability." "Absence of emotional bonding. Trade the ticker, not the company. Emotional attachment to specific stocks can cloud judgment and lead to mismanagement. Some traders struggle to take profits when they are available or exit positions when losses are still manageable. By detaching emotionally and focusing on the objective aspects of the trade, you can make more rational decisions." "Scaling out to reduce greed. Timing trade exits is a challenging task. Selling too soon may result in missed gains, while selling too late can turn a profitable trade into a loss. Scaling out involves taking partial gains along the way to address these challenges. It allows you to lock in profits while still maintaining exposure to potential further upside." "Revenge trading. How can I recover? It's a common question after experiencing losses. However, the temptation to chase fast-moving coins often leads to more losses and falling further behind. Successful traders maintain discipline and objectivity, not allowing losses to impact their trade selection or emotions. They focus on executing well-planned strategies rather than seeking immediate redemption."
Education
by FortuneAI
How to become a Day Trading GODMany aspiring traders give up within six months of starting because they enter the market with unrealistic expectations, fueled by movies like "The Wolf of Wall Street," thinking they'll get rich quick. However, success in trading requires persistence and consistency. It's important to understand that overnight success is rare. Stick to your trading plan and established rules, and over time, trading will become part of your identity as a professional trader. What sets professionals apart is their dedication to tasks that others overlook. They diligently backtest, maintain trading journals, and forward test their strategies. However, there's one additional thing that most professionals do: they find one setup that works for them, their holy grail. With traders already having a low edge in the markets, respecting and following your trading system is crucial for profitability. Every time your setup appears, take the trade without hesitation. Losses are inevitable in trading, but how you handle them defines you as a trader. Effective risk management is essential. Each trade should have a defined stop loss and profit target, with a risk/reward ratio of at least 1:2. This means that even if you lose two trades at $100 each and win one trade, you will break even. Profitability doesn't solely rely on a high win rate. The market is constantly changing. In 2020, everything seemed to go up, and inexperienced traders could make substantial gains by gambling on any coin or small-cap stock. However, that's not the case now. It's important to adapt your strategy and plan to the changing market conditions. Stay nimble and be willing to adjust your approach as needed.
Education
by FortuneAI
Exploring Leverage in Gold and Forex Trading 💰 Leverage is an essential tool in trading gold and forex. It enables traders to control larger positions with minimum initial capital. However, it also carries a high degree of risk as one can experience significant losses if the market moves against them. Here are some things to consider about leverage in trading gold and forex: • Leverage is the ratio of the amount one can borrow and the amount of capital invested. For instance, if a trader chooses a 50:1 leverage, then they can trade up to 50 times more than their initial capital. • While leverage allows traders to profit immensely from small market moves, it also magnifies losses if the market goes in the opposite direction. • Even experienced traders can fall prey to leverage's pitfalls, so it's crucial to understand the risks and manage them effectively. • Traders must calculate their risk-reward ratio before initiating a trade that involves leverage to help minimize losses and improve returns. • Stop-loss orders can help traders to manage their risk in case of unexpected market movements. • It is essential to have a solid trading plan that includes entry and exit strategies, trading goals, and risk management strategies. • Traders should choose a broker that offers favorable margin requirements and instant trade execution. In conclusion, leverage can be a useful tool in trading gold and forex, but it is not suitable for everyone. Traders must carefully evaluate their risk tolerance and have a well-defined trading plan before employing leverage. Please, like this post and subscribe to our tradingview page!👍
BITSTAMP:BTCUSDEducation
by EliteTradingSignals
4