How to survive in the market for the long-term?
In the market, regret is a frequent word. Many people face the complex investment market and often feel fear, hesitation, and regret, whether it's before buying, after buying, after selling, or just watching without buying. How to avoid this phenomenon? The fear, hesitation, and regret are largely due to not knowing how to manage positions and follow the crowd. Often pursuing high probability profits results in the opposite.
Risk management is an unavoidable issue when it comes to this. Whether you are a financial master or an individual investor, the importance of risk management is paramount. To relax and operate in the market, you need to face your current situation, make correct judgments on the profit and loss ratio, determine your operating frequency and position management, and give yourself correct psychological guidance.
Everyone's personality is different, and their risk tolerance and trading styles are also different. There is no strategy that is 100% accurate, but if you want to survive in the market for a long time, you need to control risk. Don't be afraid of losses. Losses are inevitable, but the key is how much loss you can tolerate. This is the core of risk management. For small losses, we need to prepare ourselves psychologically. This is a link in risk management. Don't rely on luck. The losses brought about by a lucky mentality are incalculable.
About 70% of the time in market fluctuations is in oscillation, and only about 30% of the time is in a unilateral surge or decline. Therefore, accumulating small victories is the magic weapon for long-term success. Always wanting to go all-in and make a big move at once may result in missed profits due to not exiting in time. No matter what state you are in now, I hope I can bring you a little bit of help!
Trading Psychology
The Simpliest Math Behind Every Succesful TraderWhat exactly is risk management?
The ability to control your losses so that you do not lose all of your equity is referred to as risk management. This is a system that may be applied to everything that involves probabilities: trading, poker, blackjack, sports betting, and so on.
Many inexperienced traders underestimate the significance of risk management or don't understand the basics when it comes to risk management.
Would you risk $5,000 on every trade if you had a $10,000 trading account? Probably not. Because it only takes two consecutive losses in order to lose everything.
🧠 Now, let's imagine a thought experiment, in wich 🤩Alex and 🤨Peter are both traders with $10,000 in their accounts. Alex is a high-risk trader who puts $2500 risk on every trade. Peter is a cautious trader who puts $100 risk on every trade. Both apply a trading strategy that has a 50% success rate with an average risk-to-reward ratio of 1:2.
For good example, let's imagine the next 8 trades had the following results:
4 losing trades in a row
4 winning trades in a row
Here is the result for Alex: -$2,500, -$2,500, -$2,500, -$2,500 = -$10,000 Loss of the total account 😭😭😭😭
Here is the result for Peter: -$100, -$100, -$100, -$100, +$200, +$200, +$200, +$200 = +$800 Profits. 🏆 🏆 🏆 🏆
Can you tell the difference? See how risk management show the difference between being a profitable or losing trader. Peter managed to recover losing trades, and get into good profits after 8 trades. Alex didn't survive 4 trades...
🚨 You might have the finest trading strategy in the world, but if you don't manage how much you lose, you'll lose it all. It's only a matter of probability and time.
However, following this basic example will assist you to make your trading more profitable. Simply give it a shot.
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Artem Crypto
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Biases that influence your decisions Biases that influence your investment decisions
Most people who invest in the stock market don't reach their goals. The top 1% of investors can double or even triple their returns from the market.
Reason: how investors think
How this article will help you avoid these biases: * Awareness - Knowing what biases affect your decision making is half the battle.
*Routine: I've made a list of biases that affect your analysis and biases that make you overestimate investments.
Cognitive frivolity
All of the following biases work so well because of the way people's minds work. Cognitive light-mindedness is a state of mind that is wanted and linked to good feelings. This is the main reason why people make bad choices.
Halo effect
It is much easier to think in black-and-white stereotypes than in gray ones. The halo effect explains why we like or dislike everything about someone or something that is connected to them. It's harder than we think to agree with some ideas and disagree with others.
What You See Is All There Is
All there is is what you see. You can't think about something you don't know. In a strange way, self-righteousness goes up when you only listen to one point of view. Again, we choose certainty over uncertainty.
Anchoring
Our decisions are mostly based on the first information we get. If you know that Apple shares are worth $150, they will look like a good deal at $120. Not even knowing if $150 is close to what something is really worth.
Regression (Correction)
We love to find links between things that don't have any. Regression to the mean can be one of the most important, but often overlooked, factors. Due to price balancing, everything tends to be worth about the same.
Perceptual bias
We think that events were easier to predict than they really were because of what we already thought. In hindsight, it's easy to make up connections between things. The truth, though, is more complicated. There are a lot of good ways to guess what will happen.
The Fallacy of Mastery
Both buyers and sellers know the same things. They buy and sell stocks based on what they think. People don't believe that short-term stock picking is good luck because it's done by smart people.
Loss aversion
Loss aversion makes us ignore even gambling that has a good chance of going our way. A loss has twice the weight of an equal gain.
Dedication bias
Commitment is linked to good traits like consistency and intelligence. In this way, we don't break our promises. Investment decisions must be talked about in public. The more you talk, the more you can persuade yourself of something.
Leaning toward recent events
We tend to give too much weight to things that have happened recently. Because of this effect, the market tends to move in a certain direction most of the time. When things are going well, we think they will only get better. We think that when things go wrong, they will only get worse.
Effect of ownership
When we own something, we value it more. This is one way we can explain why we did what we did. Before we buy a stock, we look at it critically and try to find any risks. After making a purchase, we think about the good things about it to justify our choice.
This is called confirmation bias
We choose what to believe based on what we already know. What doesn't fit with our ideas is either ignored or called a lie.
Thinking based on odds
We often think based on how we feel. But in our lives, everything is a game of chances. Using reasoning to think about the most likely outcomes will help us make better decisions.
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Trading is a trial and error process
In the case of constant mistakes, the main problems faced are shrinking funds and psychological suffering! A trader must reduce the probability of making mistakes, because your profits come from the losses of others. That is to say, when someone makes a mistake, there will be profits for people to make in the market, but you can't calculate and predict how many people will make mistakes in the next step, and how big a mistake they will make, and you can't guarantee that every time you Both are on the right side. Then, in trading, the only thing you can do is when you make a mistake, try to keep the time of the mistake as short as possible. All that's left is to wait for someone else's mistakes, do you agree with me?
Trading is to trade for profit, not to trade out of anger, so traders must understand what action to take at what stage the price is in! Traders are not always long, nor are they always short, traders always change with market changes! Traders must have their own defensive measures to control risks! Of course, money management is a must in your trading!
We don't necessarily have to trade every day. We can't earn enough wealth for a lifetime in one day. While learning to relax ourselves, we should also give the brain time to rest. If you agree with my views and investment suggestions, I hope you can provide valuable suggestions suggestion.
Doing this will make wealth love you more!
Avoid these four bad trading habits, and wealth will love you more!
In trading markets, whether it's cryptocurrency, forex, futures, or other markets with candlestick charts, it's not advisable to cut losses or take profits at the slightest gain or loss. You should not become greedy when you make large profits and not wait until you suffer a large loss to exit.
After opening a position, forget about your entry price, whether you're in a profitable or losing state, so you can hold more objectively, rather than wanting to exit when you've made a little profit or suffered a little loss.
It doesn't matter whether prices will rise or fall next, or whether you're in a profitable or losing state now. Your stop-loss point has already been set, and the same goes for your take-profit point. You don't need to worry about anything else. Don't make your entry price the center point of the balance, tilting left and right constantly.
The only criterion you should follow is the market situation.
FXOPEN:XAUUSD FX:EURUSD NASDAQ:IXIC TVC:USOIL COMEX:GC1!
What are the investment considerations?Investing involves risks, and financial planning requires caution. Therefore, the following issues need to be considered when investing:
1.Don't put all your eggs in one basket. Diversify your investments to effectively reduce risk.
2.Generally, the rate of return and risk level are positively correlated. Don't only focus on returns and ignore risk.
3.Assess your risk tolerance and choose investment products that are suitable for your financial strength and risk tolerance.
4.Don't expect to get rich quick. High-risk investments such as stocks require extra caution, and the investment proportion should not be too large.
5.Investing requires a certain level of professional knowledge. Thorough and comprehensive understanding of the product is necessary.
Follow me for more updates on financial knowledge and practical technical analysis.
The importance of waiting for a secure buying point
Most investors can never control their inner greed and blindly chase market trends after missing a reasonable entry point.
Impatience often leads to premature positions, which means enduring market fluctuations before the expected uptrend or downtrend materializes. In this situation, you often cannot hold on or your stop loss level will not allow you to hold on.
If the stop loss level is set too wide, it can lead to significant losses once triggered. If it is set too narrow, it is easy to be hit by market volatility.
These phenomena are due to a lack of patience on the part of traders, the underlying reason being the eagerness to make money and the fear of missing out on the best opportunities, manifested in premature entry, which is actually greed.
Some people enter the market too late, underlyingly due to fear of missing out on this market cycle and eagerness to make money, which is actually fear.
Let's encourage each other!
COMEX:GC1! FX:EURUSD TVC:USOIL NASDAQ:IXIC BINANCE:BTCUSDT
The philosophy that investors should have
Investing is planning for future wealth, not solving immediate difficulties.
There is no distinction between rich and poor in investing. The poorer you are, the sooner you learn to invest.
There is no sooner or later to invest, knowledge is the most important, learning is the key, and action is fundamental.
Investment must have a good psychological quality, be informal, not greedy for big things, not impatient, not procrastinating, not reckless, and not blind.
Investing is changing from active income to passive income, making money with money.
Investment is financial management, so that the standard of living is getting better and better, and the quality of life is getting higher and higher.
A few thoughts for investors
A few suggestions for personal investment: initial investment intention, investment mentality, risk tolerance, don't have a fluke mentality, maintain patience and rationality, and refuse to be proud and conceited
In front of high returns, investors should keep a clear mind and stick to the original intention of investment and financial management, instead of blindly investing even if it is profitable. A senior investor once made such a conclusion: both short and long positions can make money, only greed cannot make money
Investment and financial management within the scope of their own affordability, investors can not only enjoy the fun of investment, but also relieve economic pressure, the most important thing is to avoid risks to a certain extent. Only the feet know whether the shoes fit or not, the one that suits you is the best
The market is changing rapidly every day, and investors must adjust their plans and decisions according to changes in market laws. Investors should stop losses in time when they feel obvious danger signals. If they are lucky, they may end up with nothing in the end. At the same time, investors should be prepared for danger in times of peace, learn to cultivate the awareness of asset allocation, and build a "safe haven" for wealth
I personally think that instead of worrying about gains and losses due to short-term book fluctuations and making investment a burden, it is better to adjust your mentality, refuse to be emotional, and maintain enough patience.
Overconfident investors generally have a strong subjective consciousness, tend to ignore the objective situation when making investment decisions, and tend to overestimate their ability to analyze information, resulting in a decrease in the accuracy of information analysis results, thereby greatly increasing the probability of decision making mistakes.
As an investor, you should listen to more useful information around you to reduce your financial risk. Once the market changes, you will also adjust your strategy in time. Reducing the risk of loss is your benefit.
How to learn financial investment from scratch?There are five tips to start learning finance from scratch:
Tip 1: Earning money is a prerequisite
If you don't have money, you can't invest. Therefore, earning money is the first step to finance. For office workers, salary is the main source of income, and only by continuously improving their professional skills and working hard can they improve their overall quality and get promoted.
Tip 2: Bank savings
In addition to earning money, we also need to learn how to save money. One way to do this is through bank savings. Bank savings is an important way of finance, and it is also the most common choice for finance beginners. It is recommended to regularly deposit money into the bank and avoid withdrawing it easily, so as to save money.
Tip 3: Make an expense plan
Finance needs planning, and so does spending. Saving is a common way of slow finance, but it is not a good method in the long run. It is recommended to make an expense plan that matches your income and strictly follow it.
Tip 4: Conservative investment
For investors with zero experience, it is best not to trust the recommendations of financial product salesmen, but to invest based on their own actual situation. Therefore, it is believed that conservative investment is more suitable for investors with zero experience.
Tip 5: Insurance
Insurance is also a part of finance. Many people think that insurance is not a necessary investment, but that is not true. There is a saying that anything can happen. Insurance can play its role when it is most needed, and it has the characteristic of small investment with high returns. Therefore, insurance is a long-term investment that greatly enhances personal and family risk resistance.
Although we have no experience, it is important to start learning about finance and gain experience. Learning financial knowledge is also a way to gain experience. We believe that you will succeed.
FX:EURUSD FX:GBPUSD BIST:XAUUSD1!
The U.S. Dollar Index | Everything You Need to Know
The U.S. Dollar Index is a measure of the value of the U.S. dollar against six other foreign currencies. Just as a stock index measures the value of a basket of securities relative to one another, the U.S. Dollar Index expresses the value of the dollar in relation to a “basket” of currencies. As the dollar gains strength, the index goes up and vice versa.
The strength of the dollar can be considered a temperature read of U.S. economic performance, especially regarding exports. The greater the number of exports, the higher the demand for U.S. dollars to purchase American goods.
The index is a geometric weighted average of six foreign currencies. Since the economy of each country (or group of countries) is of different size, each weighting is different. The countries included and their weights are as follows:
Euro (EUR): 57.6 percent
Japanese Yen (JPY): 13.6 percent
British Pound (GBP): 11.9 percent
Canadian Dollar (CAD): 9.1 percent
Swedish Krona (SEK): 4.2 percent
Swiss Franc (CHF): 3.6 percent
The index is calculated using the following formula:
USDX = 50.14348112 × EURUSD^-0.576 × USDJPY^0.136 × GBPUSD^-0.119 × USDCAD^0.091 × USDSEK^0.042 × USDCHF^0.036
When the U.S. dollar is used as the base currency, as in the example above, the value is positive. When the U.S. dollar is the quoted currency, the value will be negative.
We constantly monitor the performance of DXY because very often it gives us great trading opportunities.
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Algorithm vs Human trading | Which one is the best?Introduction
Algorithmic trading has been more popular in recent years, leading some investors to speculate that their human counterparts would soon become obsolete.
Algorithmic trading, according to some experts, provides a number of benefits over human trading, such as the capacity to examine data and make judgments more rapidly.
Nonetheless, there are many who believe that human traders still have value since computers cannot replace their expertise and intuition.
In this article, we'll take a look at the pros and cons of algorithmic trading and discuss its use in the financial markets.
Gains from Algorithmic Trading
Algorithmic trading has the benefit of being quick. Trading choices may be made by algorithms in microseconds, far quicker than by humans.
This enables investors to take advantage of opportunities that may be missed by human traders and respond swiftly to shifts in the market.
Algorithms also have the benefit of being able to trade around the clock, seven days a week, expanding the hours during which markets may be monitored and exploited.
Eliminating human emotion from trading choices is another benefit of algorithmic trading.
When human traders let their emotions cloud their judgment, the results may be disastrous.
Trading judgments made by algorithms, on the other hand, are more likely to be consistent and objective since they are based on facts and logic rather than emotion.
Last but not least, trading fees might be lowered with the use of algorithmic trading.
Algorithms eliminate the potential for human mistake and save money on transaction fees by trading automatically.
Algorithmic Trading's Drawbacks
While algorithmic trading has many benefits, it is also possible that it might have negatives.
The potential for mistakes to be made by trading algorithms is a worry. Mistakes made by algorithms might be costly if they aren't recognized right away.
In addition, losses are possible while using trading algorithms since they are pre-set to react in a predetermined way to market movements or occurrences.
Lack of human intuition is another issue that has been raised in relation to algorithmic trading.
While algorithms are programmed to process information and execute trades, they may overlook intangibles like political events and fluctuations in public opinion.
Nonetheless, human traders may be able to employ non-data factors, such as intuition and experience, while making trading judgments.
And last, algorithmic trading may amplify market volatility.
Algorithms' ability to rapidly respond to market shifts may both benefit traders and contribute to more volatility.
How Humans Fit Into Algorithmic Markets
Even if there are benefits to using algorithms to trade, human traders are still vital to the market.
A major benefit of human traders is that they may utilize their expertise and instincts while making trading judgments.
Those in the trading industry may account for intangibles like public sentiment and political events while making trades.
Human traders have the benefit of being able to quickly adjust to new market conditions.
Algorithms are designed to make trades based on predetermined parameters, but they may not be able to adapt to sudden shifts in the market.
But, human traders may be better able to adjust to these shifts thanks to their expertise and intuition, allowing them to make non-data-driven trading judgments.
At long last, human traders may supplement automated risk-control measures.
Although risk management algorithms may be set to minimize losses in theory, human traders may be able to see threats that the software misses.
Conclusion
Although there are benefits to using an algorithm for trading, it is not yet eliminating the need for human traders.
Experienced human traders still play a crucial role in the market because machines cannot replicate their wisdom, insight, and responsiveness to sudden shifts.
Limit and Market orders, cognitive & behavioral reviewWe assume a spot market for this article purely on the result of TRADES' interaction with no market making effect from the broker or exchange. You can only profit from buying at a lower price and selling at a higher price. So, there is no short in here. And we assume that you already know the basics of market and limit orders. As you can see the table on the chart for the whole idea, we want to talk a bit deeper.
Limit Orders
Limit Order is like a Wall, it makes liquidity on the order book to fill the market orders and that is why it is called MAKER.
In limit order, the price is more important than the time.
Limit order makes the market less volatile.
Market Orders
Market Order is like a Wrecking Ball, it takes liquidity from the order book and is filled from limit orders and that is why it is called TAKER.
In market order, the time is more important than the price.
Market order makes the market more volatile.
Now for both of these order types we have Buyers and Sellers.
Buyers always want to buy at lower price, and sellers always want to sell at higher price, so every limit buy should be lower than the current price and every limit sell should be higher than the current price.
If you put a buy limit order higher than the current price or a sell limit order lower than the current price, it will act as a TAKER order not a maker order.
If there is a buy market order at the same time with another sell market order, the buy market order is filled with the lowest sell limit order on the order book and the sell market order is filled with the highest buy limit order on the order book.
So, in every trade that is executed on the order book, one of the buyers or the sellers should be a market order and the other one should be a limit order. It's either the buyer is maker, and the seller is taker, or the buyer is taker, and the seller is maker. That's how the price moves!
Selling market orders push the price to go lower and buying market orders push the price to move higher.
Selling limit orders pull the price from going higher and buying limit orders pull the price from going lower.
Selling limit orders are more spread above the resistances BUT buying limit orders are more concrete at the support price.
Now let's talk about a few facts from Behavioral Finance !
1- Confirmation Bias
: the tendency to interpret new evidence as confirmation of one's existing beliefs or theories (like when the price is inside the ichimoku cloud). So, if I buy at any price, till a long time I will think that it will go higher! and this may be why a lot of people have big losses over time and do not commit to their stop loss.
2- Loss aversion or Prospect Theory : the tendency to prefer avoiding losses to acquiring equivalent gains. losses are twice as powerful, psychologically, as gains (like the urge feeling for revenge trading when you have lost in your last trade). This may be why people use Market orders for exiting from a position instead of Limit orders.
A graph of perceived value of gain or loss vs. strict numerical value of gain or loss.
3- Risk aversion : a preference for a sure outcome over a gamble with higher or equal expected value (like when you can enter at a better price but you rather to confirm your analysis sacrificing your potential profit). This may be why people (or maybe it is better to say good traders) use Limit Orders for entering at a position instead of market orders.
Now if someone buys at a high price and gets in loss, there is a conflict between Confirmation Bias and Loss aversion. If confirmation bias wins (which is for most of the people with lower experience), you just stay in the loss in the hope of a pivot point to sell at break even and that creates an additional sell pressure on a price point near resistance which was seen before (something like Double TOP pattern). But if Loss aversion wins, you commit to your stop loss and get out faster which creates a selling pressure force in a price point under the main support areas which is the result of triggering domino like stop losses.
I try to explain few different concepts together in a structured way. I would be glad to hear your opinion.
Blue Pill or Red Pill? Choose your side ... and do it wisely.“You take the blue pill, the story ends. You wake up in your bed and believe whatever you want to believe. You take the red pill, you stay in Wonderland, and I show you how deep the rabbit hole goes." - the exact line that Morpheus used when offering Neo a choice between two options.
You may wonder how this legendary Matrix reference is related to the trading industry. Believe it or not, even though one of our favourite mottos is “beauty lies within simplicity”, trading can get much deeper and more complex (deep down the rabbit hole) than the traditional textbook method.
Firstly, we have the Blue Pill. “Mike Johnson is indicating that we should wait for a crossover of 50 and 200 Exponential Moving Average levels before executing positions”. Yes, we have all been here. The thing is, 99% of the trading courses and most of those YouTube and TikTok gurus make you believe that trading is as easy as buying when a Double Bottom is formed, selling once a Head&Shoulder pattern has been identified and so on. Obviously, if it was that easy, then everyone would have succeeded in this industry, right? “Let me spoil my charts with hundreds of indicators. Surely, if 80% of them are indicating that the market is bearish, then we should definitely go short”. Yes, been there too. Oh, and let’s not forget this one: “I will just buy at support and sell at resistance, and keep it consistent until I am profitable in the long run”. Wait, but if I have learned all that from Mike Johnson, and he claims to be an 8-digit professional trader with an experience of 20 years, why am I not succeeding? If I follow everything he says, then by the same logic, shouldn’t I be profitable just like him?
And that is exactly why we have the Red Pill. The pill that frees us from the enslaving control of the machine and guru-generated dream world. The dream world is the world where trading is super simple and is as described in the textbooks. However, going down the rabbit hole, one can realise that things are more detailed and structured than they might seem, and that more factors should be considered in analysing, executing, and monitoring setups. While a blue-pilled trader is considering an execution upon a formation of a Double Bottom, a red-pilled participant of the market is waiting for a quick spike below that pattern formation and liquidity grab before pressing the "BUY" button and riding the price to the upside. Analogically, alongside with plain support and resistance levels, a red-pilled trader uses the Fibonacci retracement tool mixed with his/her conscious intuition and years of experience to form-up a bias and enter the markets. And so the list goes on.
One thing to indicate: we are not saying that the methods listed under the Blue Pill category are useless and inefficient. As long as it works for you, you can continue following your own plan and strategy without having to give a damn about opinions and ideas of others. We are just trying to emphasise, that a trader with more experience and knowledge in the markets, and with a more detailed and structured approach of the charts will be a step ahead of those that blindly generate ideas by taking a quick look at the charts posted by others (word of mouth), following every single chart pattern suggested by John Doe on his book about the sorcery of trading.
One last mention, it all boils down to two things: consistency and persistence. No wonder that as long as you keep working on becoming a better version of yourself on and off the markets, your skills will develop further and help you with what we call "opening the 3rd eye". With time, you will make more rational decisions, you will have a clearer sight of the market, you will be more powerful psychologically. Until then, keep grinding till 3AM, keep making mistakes, stay hungry and curious. And remember one thing, only the strongest survive.
With all that being said, we would love to see a nice poll in the comment section below. Which pill are you taking: the Blue Pill or the Red Pill? Feel free to comment below and let us know your thoughts and opinions.
Have a great weekend ahead.
Investroy.
Why are only 10% of traders successful?Why are only 10% of traders successful?
The popularity of exchange trading is growing rapidly today, but experience shows that only 10% of those who come to trade end up making a profit.
Barrier N°1
Laziness and unwillingness to learn.
Frankly, most people who want to profit from stock trading do not want to learn this. They feel sorry for the time to master the base, to practice.
Having earned a couple of times on a demo account, they immediately go to trade for real money. And for this category of traders, failures are predetermined by their own attitude to the trading process.
Barrier N°2
Greed and haste.
"Exchange trading will make me a millionaire in just a week" - completely wrong expectations.
Instead of trades with a profitability of 3-5% and a success rate of 70%, many traders are interested in trades with a profitability of 70% and a success rate of 3-5%. There is nothing surprising in the fact that such transactions do not end well.
At the same time, +10% per month will increase capital very quickly if you trade systematically and do not chase fast super-profits, which always turn into losses.
Barrier N°3
Mismanagement of finances.
Even in the absence of a large risk of each particular trade, there is a danger of losing the profits of many previous trades by making one trade for too much.
Equal lots that do not exceed 1% of the deposit are a guarantee of security.
Barrier N°4
Too complicated strategy.
A simple and transparent strategy is better than a complex one. It is worth striving for a yield of 60-70%, this is quite enough to consistently make a profit. The search for a "super strategy" with a 90% return is usually unsuccessful, and overly complex systems do not work very well.
Barrier N°5
Wrongly organized trade.
"Professional burnout" and the failures associated with it often haunt those traders who give a lot of time to work.
It is advised to trade no more than 5 hours a day and conclude no more than 1-2 transactions. This will save energy and a positive attitude.
Trading without drawdowns and with a stable income
- exactly what you should strive for.
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.
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Is learning technical indicators really useful?
First of all, I'll give you an answer to this question. Learning technical indicators is helpful for analyzing market trends to some extent, but you can't rely solely on technical indicators to place trades. If a certain indicator truly had this ability, it would disrupt the market balance and create a large number of wealthy people.
Let's talk about why we can't rely solely on technical indicators for trading. There are many technical indicators that we are familiar with, such as KDJ, moving averages, and MACD, which are the most basic ones. So I ask you, if one indicator shows a bullish signal, but another shows a bearish signal, what should you do when there is a conflict? In another scenario, if the same indicator shows a bullish signal on a daily chart but a clear bearish signal on a weekly chart, how should you proceed?
Therefore, I say that it's not about learning as many technical indicators as possible, but about learning how to use them. You don't have to use them, but you can't not know how to use them because they do provide some help for analyzing market trends. For example, when multiple indicators simultaneously show signals in the same direction and the direction on various cycle charts is consistent, your order accuracy will definitely be higher.
However, for short-term traders, I suggest learning from simple indicators that are easier to understand market trends. For example, learn to observe the short-term support and resistance positions of a particular product. The market mostly oscillates, so buying low at resistance and buying high at support is the key. When the market is in a horizontal pattern, be more patient and don't rush to enter the market. Remember, good opportunities are always worth waiting for.
Being proficient in one or two analytical techniques during the early stages of trading is enough to survive in this market. Learning more will actually make you more contradictory. Of course, if you currently can't accurately judge support and resistance, you can read my daily analysis articles on market trends more often, which may be helpful to you. Feel free to leave me a message if you have any questions.
In the future, I will also update the market trends of various products in a timely manner and share some articles on trading techniques with you. Your likes and follows are my motivation for continuous updates. Thank you, everyone.
Three Taboos in Trading
1. Heavy Positions Lead to Defeat
Regardless of whether it is a long-term or short-term trade, the choice of position size may be more important than the direction chosen. Even if the short-term direction is chosen incorrectly, it is still possible to profit through position adjustments. However, if there is a habit of heavy positions in every trade, the space for operation becomes very small. In ten trades, you can win against the market ten times, but if the market wins against you once, you lose everything.
2. Frequent Trading
For novice investors, when they first enter the market, they may be eager to try and want to enter the market immediately after making a profit. Frequent trading not only increases transaction costs but also reduces the accuracy of trades. It is difficult to achieve high returns in the long run, especially for short-term traders. If you don't have full confidence, don't open a position easily. Once your daily profit reaches your expectations, you can turn off your computer and enjoy life.
Even if you incur losses that day, do not rush to place another trade. When you incur losses, your brain is not rational, and the possibility of losing on the next trade is greater. It is recommended to calmly analyze the market and wait patiently for opportunities to enter. You have to believe that there will be opportunities in the market every day, but if you lose all your capital, there will be no chance to start over.
3. Cannot Accept Stop Losses
For me, stop loss is an art. True masters often face their own mistakes and exit with a stop loss when the market clearly deviates. Sometimes, a small loss can also be considered a gain. People who refuse to admit their mistakes and want to exit every trade with a profit are often at odds with the market and are unlikely to have good results.
I have shared some personal experiences accumulated in the market. I hope my friends can avoid detours. I will also update some trading strategies every day for reference. I hope everyone can have ideal returns in this market. Your likes and follows are my motivation to continue updating.
How to Become a Top Trader ?(1)
Hello everyone, I will publish an article on how to become a top trader on the platform recently, and it will be updated continuously. This is the first article. The first thing I need to teach you is how to establish a correct investment psychology.
It is easy for novice investors to fall into a misunderstanding, especially wanting to make a profit in this market quickly, but in fact, trading is a very long process. Only through your continuous learning and a deeper understanding of the market, your wealth will increase , instead of treating trading as a gamble, and only relying on luck to make short-term profits, but as time goes by, due to lack of knowledge of the market, it will eventually lead to continuous losses.
Why do I talk about investment psychology in the first article, because I think that if the mentality of entering the market at the beginning is wrong, it will be difficult to have a good result, so I hope that after reading this article, you can have A correct investment psychology is to put our investment route on a longer-term basis, instead of hoping that a wave of market prices will make you rich overnight. You must know that Bitcoin has been an extremely long process from its release to now.
If you agree with my investment philosophy, then I hope you can pay attention to my follow-up articles. In addition to daily market analysis, I will also tell you what good habits you need to have to become a top trader. Any questions, you can comment below the article, thank you for your support and love.
Five things every beginner must know
Many people enter because they know that this market can make people rich, but if you don't know these five things, you will only be ruthlessly harvested by the market.
First: When all the analysis of the market and retail investors are firm that the market will go in a certain direction, you need to be vigilant, don't follow blindly, always believe that the truth is often in the hands of a few people, follow the "Eighty-Twenty" rule in the market, and keep a calm head.
Second: Understand the importance of stop loss. No one can guarantee that every transaction is profitable, so when the direction is wrongly judged, you must stop the loss in time. Sometimes a small loss can be considered a profit. A real master has the courage to face himself If you make a mistake, you can keep your principal to have a chance to come back..
Third: Understand the importance of stop profit, never think about earning the last copper plate in the market, because the market is changing rapidly, only the money earned in your own pocket is real, otherwise it is just a jumping number.
Fourth: Don't enter the market against the trend. When the overall market trend is one-sided, you can choose to wait and see if you don't enter the market ahead of time. Don't choose to go against the trend or enter the market forcefully. You know, the market will happen every day, you only need to catch one or two waves, and entering the market at an inappropriate time will only make you passive.
Fifth: Don’t treat trading as a gamble, and don’t take heavy positions. I personally recommend keeping the position at one-third to better resist risks. Blindly increasing your position will only make your situation more passive.
Each of the above points needs to be experienced slowly. If you can strictly implement them, then congratulations, you are considered an entry-level trader, but if you still want to continue to advance, there is still a long way to go. In addition to analyzing the market, I will also share more trading experience with my friends.
If you encounter any problems in the current transaction, you can leave me a message at any time, and I will reply to you. Thank you for your attention and let us make progress together
5 New Algorithmic Trading StrategiesAlgorithmic trading has transformed the financial markets in recent years, enabling traders to make better-informed investment decisions and execute trades more quickly and accurately than ever before. As technology continues to evolve, new algorithmic trading strategies and techniques are emerging that promise to revolutionize the way that financial instruments are traded. In this article, we will discuss five new algorithmic trading strategies and techniques that are gaining popularity among traders.
Machine Learning-Based Trading
Machine learning is a branch of artificial intelligence that allows algorithms to learn from data and improve their performance over time. Machine learning-based trading is a strategy that uses algorithms to identify patterns in financial data and make predictions about future market movements. These algorithms can learn from both historical data and real-time market information to make trading decisions that are informed by a deep understanding of the underlying trends and patterns in the market.
High-Frequency Trading
High-frequency trading (HFT) is a strategy that uses algorithms to execute trades at lightning-fast speeds, often in milliseconds or microseconds. This strategy requires sophisticated algorithms and high-speed networks to be effective, and it is typically used by institutional investors and large trading firms. HFT is often associated with controversial practices such as front-running and flash crashes, but it can also be used to improve market liquidity and reduce trading costs for investors.
Sentiment Analysis
Sentiment analysis is a technique that uses natural language processing algorithms to analyze the tone and sentiment of news articles, social media posts, and other sources of public information. This technique can be used to identify trends and patterns in public sentiment that may affect the price of financial instruments. For example, if a news article about a company is overwhelmingly positive, sentiment analysis algorithms may predict that the stock price of that company will rise in the short term.
Multi-Asset Trading
Multi-asset trading is a strategy that involves trading multiple financial instruments across different markets and asset classes. This strategy requires algorithms that can analyze a wide range of data sources, including market news, economic indicators, and social media sentiment, to make informed decisions about which assets to trade and when to enter or exit positions. Multi-asset trading is often used by institutional investors and hedge funds to diversify their portfolios and hedge against market risk.
Quantum Computing-Based Trading
Quantum computing is a cutting-edge technology that promises to revolutionize many fields, including finance. Quantum computing-based trading is a strategy that uses algorithms that run on quantum computers to analyze complex financial data and make trading decisions. Quantum computing algorithms are able to analyze a much larger amount of data than classical computing algorithms, which can enable traders to identify hidden patterns and relationships in financial data that are difficult to detect using traditional techniques.
In conclusion, algorithmic trading is an exciting and rapidly evolving field that is transforming the financial markets. The five strategies and techniques discussed in this article represent some of the most promising developments in the field, and they are likely to play a major role in the future of trading. As technology continues to advance, it is important for traders to stay informed about the latest developments in algorithmic trading and adopt new strategies and techniques to stay ahead of the curve.
Algorithmic Trading / Robo-TradingAlgorithmic Trading: Automating Financial Markets for Greater Efficiency and Profitability
Explanation
Algorithmic trading, also known as robo trading, is a process of using computer programs to execute trades automatically based on pre-defined rules or algorithms. It has revolutionized the way financial markets operate, making them more efficient, faster, and less prone to errors caused by human emotions.
Advantages
The advantages of algorithmic trading are numerous. Firstly, it enables traders to analyze vast amounts of data and execute trades with incredible speed and precision, resulting in improved profitability. It eliminates human error and bias, which are significant sources of trading losses. Secondly, algorithmic trading allows for 24/7 trading, regardless of the trader's location or time zone, which makes it possible to take advantage of global market movements. Finally, algorithmic trading also provides a level of transparency and accountability, as trades are executed automatically, and the outcomes are recorded in real-time.
History
The history of algorithmic trading dates back to the 1970s when the first computerized trading system was developed by the NYSE to automate the execution of large trades. The system was based on the principle of matching buyers and sellers electronically, and it soon became the norm for trading in the US equity markets. However, it was not until the 1990s that algorithmic trading began to gain traction in other financial markets.
As computing power increased and access to market data improved, algorithmic trading systems became more sophisticated, enabling traders to execute trades with greater precision and accuracy. With the introduction of low-latency trading platforms in the 2000s, algorithmic trading became even faster and more efficient, allowing traders to take advantage of even the smallest market movements.
Today, algorithmic trading is used in almost every financial market, including stocks, bonds, currencies, and commodities. It is estimated that more than 80% of all trades in the US equity markets are executed by algorithms, and the trend is growing in other financial markets worldwide.
In conclusion, algorithmic trading has transformed the financial markets by improving their efficiency, speed, and profitability. It is a powerful tool for traders and investors, providing them with the ability to analyze vast amounts of data, execute trades with incredible speed and accuracy, and eliminate the emotional biases that often lead to trading losses. As technology continues to evolve, we can expect algorithmic trading to become even more sophisticated, providing traders with even greater opportunities to profit from the global financial markets.
The most common mistakes in trading
Today, I will share a practical secret that I have learned for many years. Don’t hesitate when trading. If you hesitate, then don’t trade in the short term.
Many people also have the habit of making trading plans. For example, I will enter the market at any position today, but when the opportunity really arises, I hesitate to make a decision. After the market ends, I find that I have made a profit, but I did not enter the market, and wait until the opportunity appears again. At that time, I thought to wait a little longer, but it turned out to be profitable again, and I still didn’t enter the market. Finally, I finally made up my mind that the next time I was in this position, I would definitely enter the market. As a result, when he entered the market, what he ushered in was a loss.
In fact, in the trading market, good entry opportunities are fleeting and will not come often. If frequent entry opportunities appear, it must be a trap. When you have made a plan, all you need to do is Strictly implement, if you have no confidence when you enter the market, then I suggest that you do not make any transactions in the short term, because your plan has been disrupted, and the market likes to confuse your eyes and challenge your bottom line. It's also a psychological game.
I make my trading plan every day and strictly implement it, so friends who follow me can receive my plan as soon as possible, which can be used as a reference, but I will choose to enter the market at the first time, if you hesitate, choose the second The second or third chance to enter the market, the probability of loss will increase a lot, so don’t do this, you can consult me to get the latest plan.
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How to become a master trader?
First:Making Plans
Before trading every day, make a trading plan, so how to make a good plan?
Take XAUUSD for example,If you mainly focus on short-term operations, focus on the key support and key resistance within the day, buy up at the support level, buy down at the resistance level, sell high and buy low, if you cannot accurately determine where the support and resistance are , you can see my daily analysis articles.
In addition, when making a plan, you must set the stop profit and stop loss points. The stop profit must be greater than the stop loss. The reason for this is that even if your accuracy rate does not reach 50%, you can still make profits in the long run.
Second:Implement
After making a trading plan, what you have to do is to strictly implement it. You need to have confidence in your plan and don’t doubt your judgment because of the turmoil in the market. You need to know that the truth is often in the hands of a few people.
Third:review
Regardless of whether you are making a profit or a loss in today's transaction, you need to review the market. When you make a profit, you need to consider whether the take-profit position set this time is reasonable, and whether the profit can be enlarged next time. Of course, you also need to learn how to stop in moderation.
Of course, we can’t avoid the situation where we misjudged the direction. At this time, we need to consider whether we have strictly implemented the stop loss operation. In many cases, small losses are out, and keeping the principal is also a very correct operation. More people They will stop profit, but they can’t accept the loss, which leads to a mistake and loses the whole game. Therefore, it is said that those who can buy are apprentices, and those who can sell are masters.
Fourth:Summarize
Making a trading plan is a good habit, and it will accompany you throughout your life. Don’t think it’s a good habit just because you’ve made money for several days in a row, and you’ll feel that making a plan is useless because you’ve lost money for a few days in a row. The meaning, a simple summary is to make a good plan, strictly implement it, review it many times, and believe in yourself.
I will formulate my trading plan every day, and then share it with you, hoping to make progress together with you. At any time, we are in awe of the market and let ourselves go further through planning. This market will always eliminate some people. Don’t believe it Luck, that kind of thing will run out sooner or later, friends are welcome to discuss with me.
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