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Trading Psychology

The Psychology Of A Market CycleThe psychology of a market cycle refers to the emotional and psychological states that investors and traders go through as they react to market conditions. Here is a short summary of each stage of the market cycle: 🔵 Disbelief: At this stage, market participants are skeptical about the potential for a market rally or recovery. They may be hesitant to invest or trade, as they do not believe that the market has the potential to improve. 🔵 Hope: As market conditions begin to improve, investors and traders may start to feel more hopeful about the future. They may start to see opportunities for profit and become more willing to take risks. 🔵 Belief: At this stage, market participants start to believe that the market will continue to improve. They may become more confident in their investment decisions and become more willing to hold onto their positions for longer periods of time. 🔵 Euphoria: As the market continues to rise, investors and traders may become overly optimistic and start to believe that the market will continue to rise indefinitely. This can lead to excessive risk-taking and overconfidence. 🔵 Anxiety: As market conditions start to deteriorate, investors and traders may become anxious about the potential for losses. They may start to question their investment decisions and become more hesitant to take risks. 🔵 Denial: As market conditions continue to worsen, some investors and traders may start to deny that the market is in a downturn. They may continue to hold onto their positions in the hope that the market will recover. 🔵 Panic: At this stage, market participants may become panicked about the potential for further losses. They may start to sell their positions in a rush to get out of the market. 🔵 Capitulation: As market conditions reach their lowest point, investors and traders may give up hope and sell their positions, even at a loss. This is known as capitulation. 🔵 Anger: After the market has bottomed out, some investors and traders may feel angry about their losses and the perceived market manipulation or wrongdoing that they believe caused the market crash. 🔵 Depression: After experiencing significant losses, some investors and traders may feel depressed and lose motivation to engage in further investment or trading activities. 🔵 Disbelief: As market conditions begin to improve again, some investors and traders may return to a state of disbelief and skepticism about the potential for a sustained market rally. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work , Please like, comment and follow ❤️
Education
by QuantVue
2
How to achieve any goal in 2023?First you need to clearly define your goal, for this we use this simple tips Technique that helps you better define and achieve goals. Goals formulated using this technique are usually more realistic and achievable. S - Specific (specific) The goal should be well defined and specific. M - Measurable It should be possible to determine if the goal has been achieved. A - Attainable The goal should be realistic and achievable, despite the possible difficulties. R - Relevant (actual) The goal should be related to your actions and goals. T - Time-bound (limited in time) The goal must have a specific deadline. Goal setting example: - Specifically: Increase the average monthly profit - Not specifically: Earn more – Measurable: Increase monthly profit by 10% - Immeasurable: Increase profits – Achievable: Increase monthly profit by 10% - Unattainable: Increase profits by 300% — Actual: Increase the average monthly profit by 10% from trading - Not relevant: Increase the average monthly profit by 10% (in some other business) - Limited: Increase your average monthly profit by 10% in 3 months. Result: Increase the average monthly profit from trading by 10% in 3 months. Once we have set a goal, now we need to sketch out a rough list of how we can do this. 1. Determine the current level of trading skills through a self-assessment and determine the necessary improvements. 2. Study various trading strategies and choose the one that suits you best. 3. Create a realistic trading plan by defining goals and risks for each trading day. 4. Open a demo account and start trading strictly following the created trading plan. 5. Gradually increase the amount of trading sessions and risks, observing the principles of rational risk management. 6. Open a real trading account after successful completion of trading on a demo account. 7. Continue to trade, strictly following the created trading plan and the principles of rational risk management. 8. Study, read books, take courses, constantly improve your skills 9. Regularly analyze your trades to improve your trading strategy and increase efficiency. Once the list is ready, now you need to break it and your goal into smaller goals and set them every week. For example: Goal for the week, read 1 book, master 1 new strategy, make 10 trades on a demo account. Finally, you need to break each of these goals into daily goals. Set them for a day and just like a robot go to fulfill them without hesitation. For example: Goal for Monday, read 20 pages of a book, watch 1 webinar, make 2 trades on the strategy. And finally, every week you track and adjust your progress as needed. 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
Every trader life cycleThe Trader's Cycle The trader's cycle is the time span between the first replenishment of the deposit and its total loss. The cycle is divided into four parts, each of which corresponds to a different condition of the trader. Every trader is in one of the stages of the trader's cycle; it is impossible to avoid the cycle by trading continuously. However, by splitting into a "cycle," you may lengthen the stages and reduce your losses. The "trader's cycle" phases: "Stability" is the initial step. The trader is in a condition of equilibrium, regulates his emotions, initiates trades only on his system entry points, does not engage in high-frequency trading, employs stop losses, monitors risk management, treats losses properly, and lives his life throughout the first phase. The second stage is known as "sudden impact." In the second phase, an incident occurs in the life of a trader that throws him off balance psychologically. A stunning incident for a trader is a large loss that wipes out the results of his efforts for an extended period of time. In general, the major causes of "shock" include neglecting risk management and not employing stop losses, as well as a series of transactions closed by stop losses in system trading in accordance with all of the trader's trading system regulations. A unexpected blow can also be caused by technical errors: a forgotten or failed order, technical issues with a broker or equipment at the worst possible time. The core of the second phase is that the trader experiences psychological trauma, which causes him to lose his psychological equilibrium and engage in illogical behavior. The third stage is referred to as "risk rise." In the third phase, the trader awakens with a desire to recover his losses, which causes him to raise the volume of positions, increase leverage, refuse to apply stop losses, depart from risk management, and average positions, which leads to irreversible repercussions. The trader deviates from another critical approach - consistent profit taking. He stops taking profits from the market, constantly desiring more, as a result of which he misses profits and awakens within himself the infamous feeling of missed profit - FOMO (The fear of missing out), which in turn feeds the trader's psychological trauma and causes him to behave aggressively in the market. The trader has a "perception filter": he begins to automatically reject any market information and signals that contradict his established abnormally high confidence in the market's future direction. The fourth stage is "collapse." The trader's position is liquidated when the market moves against him, and he is left with no money. On the one hand, the trader has lost everything; on the other hand, he feels some relief and begins to behave objectively, abandoning wishful thinking. After putting himself in order and returning to normal life, the trader begins to evaluate blunders. After dealing with the mistakes, the trader pledges himself not to repeat them and not to break from his trading strategy, but vows are broken over time, and the cycle continues. Repetition of the cycle After the "first round," most rookie traders abandon trading permanently, blaming the market and condemned "manipulators" for everything. Another, smaller group of traders has the courage to accept their mistakes and return to trading at a higher level. After a period, the cycle repeats for most merchants, and they are once again separated into two groups, with the majority of them leaving the market for good. How can you break the cycle? Every trader should embrace and realize the fact that the trader's cycle is inevitable, therefore, he should take efforts in advance to assist "soften the fall". Here are some practical suggestions. Rest and recuperation Every year, the work of a trader becomes more difficult: new patterns emerge, more and more variables must be considered, which increases the emotional load many times over, so rest and recovery are critical: the right approach to leisure time will help to avoid emotional burnout and will "reboot" you, completely clearing from thoughts, allowing you to return to your favorite work with renewed vigor. Take regular breaks from trading, vacations, and living life, because the aim of your trade is to increase the quality of your life. Does your life improve if you make a lot of money but are miserable? Look for new interests and experiment with new things. Recommendations for healing include bathing, swimming in a pool, massage, meditation, winter swimming, spending time in nature, and traveling. Lifestyle Your lifestyle, whether you like it or not, will be reflected in your trading, so don't get too caught up in trading - satisfy yourself and your loved ones by spending gains and developing yourself. Eat, travel, and live life to the fullest. This will undoubtedly boost your attitude and, as a result, the outcome. Sport influences your physical health, which in turn affects your mental health, and mental health allows you to be more productive and balanced for longer periods of time. Also, keep your mental surroundings in mind and limit your time spent on devices and news sources. Pay attention to your health, thoughts, nutrition, lifestyle, sleep, and connections with loved ones. Trading strategy The attitude to trading is the foundation that may both save you from the "trader's cycle" and push you into it. Here are a few highlights: 1. Risk assessment. Maintain strict risk management and never, ever overstate dangers. Diversify your cash in several areas to ensure that you cannot gamble too much on one trade. Divide your trading deposit, for example, into four pieces and transfer cash to separate exchanges and wallets. This strategy will have a significant psychological influence on you, so that if you lose, you will only lose a portion of the cash. Even if you let go a little when transferring cash from one account to another, your brain will remember why you split and withdrawn the funds, and your emotions will have time to settle. 2. Profit obsession. Fix locations in sections, always leaving a little bit out of the transaction. Using this profit-taking approach, you will skim the juiciest milk from winning transactions and eliminate FOMO, which will benefit your trading. 3. Taking an asset from the watchlist. Remove the asset from your watchlist and cease watching it for a time if you still did not follow the strategy of frequent profit taking and closed the position fully. Why would you do it? Assume that once you've established your successful position, the price rises by another 10-20-30%. How will you react? Most likely, you will have FOMO (fear of missing out), return to the transaction, and the price will then reverse. To avoid this, either fix positions in parts depending on the balance of the position rather than the beginning volume, or do not open the chart after closing the trade. 4. A sequence of stop losses Leave trading for a day if you close two transactions in a row on stop losses, since failing trades produce unpleasant emotions, which lead to bad judgments, and bad decisions lead to a desire to recover. It is critical to learn to track your mental condition and step away from the terminal as soon as possible. Workspace The workplace should be a quiet and pleasant setting where you can concentrate and nothing will distract you from your task. The trading system Your trading system is critical to your success. You must design it based on your trading strategy and risk tolerance. The trading system should comprise the following components: Risk administration. A collection of entrance points. A collection of indicators. Self-control techniques. Profit safeguard approach. Transferring positions to breakeven is a strategy. Various trading methods and tools are available. Make plans for profit distribution and withdrawal. A set of guidelines "What should I do if...". Trader's journal, where you will keep track of your transactions. Savings and income sources To avoid an urgent need to recoup while incurring a major loss, it is vital to save - develop an airbag for 6-12 months of a pleasant living and do not squander it. Savings will be ineffective even in the best-case scenario, but the advantages of the "airbag" are difficult to overestimate. Such accumulations will improve your psychological state since you will be more confident in the future and will not tear your hair out by launching a "transaction for the sake of a deal" and anticipating a quick payoff. It is also vital to generate "cash flows" (other sources of income) for yourself outside of trading in order to increase your passive profit. Profits and interruptions are reduced to zero. "Crashes to zero" and samsara in the shape of a "trader's cycle" are unavoidable, therefore you must plan for "rainy days" by taking action ahead of time. The finest traders can maintain equilibrium for far longer, but they also have breakdowns. Don't think of yourself as an exception. End collapses, extract winnings, and build passive income streams since the ultimate purpose of your trade is to improve the quality of your life. Keep in mind that the funds in your brokerage account do not belong to you, and anything might happen to the broker. Regular withdrawal of cash ensures a constant and comfortable quality of living, since if you lose control of yourself, you will lose just a portion of the assets, not all of them. Create bulletproof stages that will allow your capital curve to increase indefinitely. 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
4
ENGULFING CANDLE - Powerful Price Reversal Engulfing candlestick pattern is the most popular candlestick pattern. Engulfing candlestick is formed when it completely engulfs the previous candle. There are two types of engulfing candlestick patterns. Bullish Engulfing Pattern Bearish Engulfing Pattern For a perfect engulfing candlestick, no part of the first candle can exceed the shadow (or wick) of the second candle. This entails that the low and high of the second candle entirely covers the first. But the major emphasis is on the body of the candle. The bullish candle gives the best signal when it appears below a downtrend and shows a rise in buying pressure. The pattern mostly causes a reversal of a current trend. It’s due to more buyers entering the market and driving prices further up. The pattern involves two candles, with the second green candle completely engulfing the previous red candle with no regard to the length of the tail shadows. The bullish candlestick tells traders that buyers are in total control of the market, following a previous bearish run. It is often seen as a signal to buy and take advantage of the market reversal. A bearish engulfing chart pattern is a technical pattern that indicates lower prices to come. It consists of a high (green) candle followed by a large down (red) candle that engulfs the smaller up candle. The pattern is necessary because it signals that sellers have overtaken the buyers. These sellers are aggressively driving the price downwards, more than buyers can push up. A bearish pattern indicates that the market will soon enter a downtrend, following a past increase in prices. The pattern signals that the market has been taken over by bears and could push the prices even further down. It is often seen as a sign to enter a short position in the market.
OANDA:XAUUSDEducation
by TopTradingSignals
12
What is FOMO and how to avoid it? What is FOMO? FOMO - Fear of missing out or Lost Profit Syndrome - an obsessive fear of missing out on an investment opportunity. This syndrome can overtake in any everyday situation and make you remember missed chances to get rich all day: ignore the growing popularity of cryptocurrencies, not invest in bitcoin and many other short-sighted actions. To determine the presence of the syndrome of lost profits can be on several grounds: frequent check of the exchange rate of the asset in the portfolio; obsessive fear of missing some important event or news; dependence on a smartphone, discomfort in the absence of a gadget; resentment if someone is luckier or more successful. In trading and investing, the FOMO phenomenon is especially noticeable. Many investors under the influence of the syndrome make spontaneous purchases, make many mistakes and subsequently lose faith in the prospects of the market. But the good news is that even this obsessive-compulsive disorder can be cured with a few tricks ✅ Forget about the past. What once happened in the market is absolutely irrelevant. No successful investor looks at quotes in the past. He only thinks about the future. Chances never end, they always reappear. ✅ Increase your competence. Master new skills, study the experience of professionals, All this will give not only the necessary knowledge, but also confidence in the correctness of your actions. ✅ Set clear goals. You should always keep your strategy in mind and set target values when buying an asset. If the quotes reach your target, you should sell. ✅ If there are no ideas for investing - wait. If there are no assets that fit into your strategy, then the most correct decision would be to save, increasing the cash position. And wait for the right moment. It will definitely come, and you will know about it when the crowd will scream about the next funeral of the stock market. ✅ Your strategy is everything. Develop your own strategy and stick to it, improving on the way! 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
3
DON'T TRADE ON HOLIDAYS | 4 Crucial Reasons Explained In this educational article, we will discuss why is it recommendable not to trade during the holidays season. 🏦 The main source of problems comes from the fact that the big market players like banks, hedge funds and investing firms are absent. Similarly to ordinary people, bankers and investors prefer to spend the holidays with their relatives and friends instead of staring at charts on Christmas Eve. But how does it affect the market? Big players are the main source of the market liquidity. The liquidity itself is the measure to which an asset can be quickly bought or sold in the market at a price of its quotes. Therefore, when the big players are missing, the market liquidity drops. 1️⃣ That fact instantly reflects in the market spreads. They become substantially bigger, directly increasing the costs of each trade and making it problematic to open a position at a desired price. 2️⃣ Secondly, low liquidity leads to a decrease in volatility. The market becomes weak and indecisive. As traders, we make the money on market moves. Our goal is to catch a bullish or a bearish wave. Their absence deprives us of profits or, at least, dramatically decreases them. 3️⃣ Thirdly, when the liquidity is low, even small market participants can move the market. It dramatically increases the probabilities of false signals. Relatively low trading volumes may manipulate the market, substantially decreasing the efficiency of technical and fundamental analysis. 4️⃣ The increased costs of trading, low volatility and manipulations should have convinced you to stay from charts during the holidays season. However, the main reason to not trade on holidays is much simpler. Holidays give you an opportunity to stay with your family, to take a break, to recharge and relax. Even a part-time trading is very exhausting and requires a constant attention. Let yourself be distracted and return after holidays. I wish you a great holidays season, traders! ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
17
The Importance of a Trading PlanIntroduction One of the most overlooked parts of trading is the simple act of having a plan. Having a well-defined trading plan is crucial for traders looking to improve their chances of success. A trading plan helps traders make informed and disciplined decisions and can serve as a roadmap for navigating the market. A trading plan can also help traders stay focused and avoid making impulsive or emotional decisions, which can be detrimental to trading performance. Defining your trading goals and risk tolerance Before developing a trading plan, it's important to define your trading goals and determine your risk tolerance. Setting clear and realistic trading goals can help you stay focused and motivated while understanding your risk tolerance can help you make decisions that align with your financial resources and risk appetite. For example, if you have a low-risk tolerance, you may choose to focus on more conservative trading strategies that aim to generate steady, consistent returns rather than styles that aim for big returns with high risk. Identifying your trading style There are many different types of trading styles, each with its own unique characteristics and potential benefits. Some common types of trading styles include day trading, swing trading, and news following. Identifying the trading style that aligns with your goals, risk tolerance, and personality can help you develop a trading plan that is suited to your needs and preferences. Developing your trading plan Your trading plan is a set of rules or guidelines that define how you will approach the market. Components of a trading strategy may include entry and exit rules, risk management techniques, and position sizing. It's important to fully develop and test a trading strategy before implementing it in the live market. This can help you identify any potential weaknesses or problems with the strategy and make adjustments as needed. Managing your emotions Emotions can play a significant role in trading and can impact decision-making. One of the great benefits of having a trading plan is that it can reduce the impact of emotions on your decision-making. It's important to manage your emotions and stay disciplined in the face of market volatility. Strategies for managing emotions in trading may include believing in and sticking to your trading plan, taking breaks to clear your head, and seeking support from a mentor or trading community. Improving your plan over time It's important to regularly review and adjust your trading plan to ensure it is still aligned with your goals and risk tolerance. This may involve evaluating the performance of your trading strategy and making adjustments as needed. You should analyze both winning and losing trades to find strengths and weaknesses in your plan. Nearly all strategies will work better under certain conditions, and it’s your job to determine what that looks like for your plan. Conclusion Having a well-defined trading plan is essential for traders looking to improve their chances of success. A trading plan can help traders make informed and disciplined decisions and serve as a roadmap for navigating the market. By defining your trading goals and risk tolerance, identifying your trading style, developing a trading strategy, managing your emotions, and regularly reviewing and adjusting your plan, you can improve your chances of success and achieve your trading goals.
Education
by TrendFlowIndicator
1
What problems can a trader face and what are the reasons behind?What problems can a trader face and what are the reasons behind this? Trading is an exciting activity, but for a beginner, there are many difficulties along the way. Today we will talk about a few of them, revealing the reasons for their occurrence! Fear of closing a position by stop loss or fear of loss. Often the reason for this lies in the trader's fear of failing and losing faith in himself. Too early exit from profitable trades. This may indicate excessive emotional involvement and dependence on the result. In this case, there is a strong anxiety, which is removed when the position is closed. Adding to a losing position (averaging). This sign may indicate the unwillingness of the trader to admit his own wrong and fear to take responsibility for the results of trading. Excessive joy from a profitable trade. This signals that a trader's self-esteem is directly related to trading results. Restriction of profits and a feeling of undeserved success. Internal belief that the trader does not deserve the money he has earned: the "impostor syndrome" that annoys many specialists. Oversize position. This is an alarm sign that warns that the trader does not fully understand the risk and does not understand the importance of good money management. ost-Trading Irritability: Emotional swings caused by anger, fear and greed. A trader attaches great importance to the results of trading, and not to the trading system. At the same time, he forgets about learning new tools and personal development. You can't afford to lose. This problem is typical for trading on borrowed funds or on family savings. From this, the trader's fear of losing becomes stronger, and the clarity of thinking becomes weaker.
BITSTAMP:BTCUSDEducation
by Crypto4light
THE FOREX SUCCESS PYRAMID What is your recipe for success in trading? Developing traders often don’t understand, when you are asking to be a successful (or professional) trader, you are asking not just to build a pyramid, but to sit on top of it. What most forget is the base is the biggest part of the pyramid and the foundation for building higher levels. As the pyramid continues to grow higher, it gets a little more complicated, but you have a base (foundation) and structures in place to carry the stones up to the higher levels. But just like a pyramid, there are more stones at the base and this takes more time to build. Also like a pyramid, there are more traders at the base (not making money or breaking even) then there are at the top. However, with structures and rhythm in place, the fruits of your labor will result in a steady conditioning of your muscles (discipline, diligence and psychology). This will allow you to take on greater and greater heights, challenges and climb the pyramid of trading. Having forex trading discipline, diligence and psychology will give you a sense of confidence and a feeling of mastery over the process. This is the pyramid of trading and the attributes needed to climb to higher levels. While most traders spend time trying to find profitable trades, or the next great system, make sure you take time out to build the attributes which develop your trading muscles (discipline, diligence and psychology). By yourself this can be a very difficult task so it helps to create mechanisms in your life to build these habits. Please, like this post and subscribe to our tradingview page!👍
OANDA:BTCUSDEducation
by EliteTradingSignals
4
'SANTA' of the 'TRADERS' !!!This publication is dedicated to thanking the 'Santa' of the ‘Traders’ i.e. the 'Stock Market'. The lessons given to us as a gift of the market, not only help us to succeed in the stock market but also helps us throughout life. This 25th December i.e. Christmas let’s thank our 'Santa' and have a detailed look at 5 Great Gifts of the Stock Market and thank her for these life-awakening gifts. -> Discipline: The most important teaching in markets is discipline. As the wording of Jim Rohn states “Discipline is the bridge between goals and accomplishment” stock market develops that bridge. The market has its way of teaching and punishing, I think all of us had witnessed its punishment whether in form of not keeping stop loss or not following your trade system. Discipline plays a vital role in an individual’s life. As said by Horace “Rule your mind or it will rule you. ”The disciplined person has the power to rule his mind whereas others lack this ability. -> Patience: Another gem cultivated by markets in our personality and harvested by us throughout life. One of the familiar names of our school time Benjamin Franklin says “He that can have patience can have what he will.” market first teaches this gem to us and then offer us what we wish. We all have at least once missed taking the real profit by not waiting till the target is achieved but leaving the trade in midway though it was moving in our direction the reason is we lack patience and the market gives profit only to eligible ones so, either you be eligible or market will make you fit for it by its way. -> Ability to conquer 3 gateways of hell: According to ‘The Bible’ there are 12 gateways to hell and among them, the most dangerous are Lust, Greed, and Anger. The market helps its students in conquering those strong emotions. The beginner in the stock market has a strong lust for making money very quickly and greed for making lots of money without that kind of effort and when he fails in his motive anger gets born in his personality from where degradation or hell starts. Those few people who still have not left the hands of the market get the knowledge to conquer those emotions throughout their journey in markets. -> Faith in yourself: One of the famous quotes by Ralph Waldo Emerson is “The best lightning rod for your protection is your spine.” market strengthen that spine so that we as its student can withstand any kind of storm in our life. Taking any trade based on your analysis requires self-belief on the early days people hesitate but later they rely on their analysis because the market has taught them self-belief. -> Crush your arrogance: Market is popular in crushing the arrogant guy along with this removing any trace of arrogance in his personality. The famous wording says “Close some doors today. Not because of pride, incapacity, or arrogance, but simply because they lead you nowhere.” market as a kind teacher keep a keen eye on her student for arrogance as she knows that as soon as arrogance arises person starts his fall. All of us had witnessed that whenever we start thinking that we have mastered markets and try to neglect discipline market slaps us badly to awaken us that we are still newbies and still had to learn a lot. I believe these 5 are the most valuable gifts of the market but if you have any gift of the market much valuable in your life please mention it in the comments. Finally, Merry Christmas to all my trader mates. The stock market gives success only to eligible ones so, either you be eligible or the market will make you fit for it in its own way.
TVC:DJIEducation
by Chaser30
How Smart Money took out our liquidity- Trapped with 2 Change of Character (CHoCH) in order to signal a reversal in trend. - Took out liquidity along the way to original Order Block - Damn! they got our Long & Short stop loss. What to do: - Keep watching Price Action until we see Break of Structure (BOS) in smaller time frame. - Plot an entry based on newly constructed Order Block. - Price came right at discount zone of fib level perfectly. - GO with the real move at WAGMI entry point!
Education
by v_rapatt
3
Cognitive bias in TradingAnchor Effect This cognitive bias causes a tendency to over-trust other people's judgments. And in a situation of uncertainty, the desire to find a foothold increases, which issomeone's authoritative opinion. The anchor effect makes traders look for hints of trend changes from analysts, and in advanced cases, from astrologers (however, they are not much different from each other). And even consult with "colleagues" on the forums, breaking through all levels of thebottom. What to do? Think with your head Monte Carlo effect If two independent events occur sequentially (one after the other), a person tends toconsider them interconnected. And calculate the probability of the second eventoccurring in relation to the first What to do? Remember that the question: "Will mynext deal successful? there is only one answer: "Maybe it will, or maybe not." Atrader generally does not have the right to think in terms of individual transactions Irwin effect (valency effect) Sometimes, when we really want something, we tend tooverestimate the likelihood of a positive outcome. And vice versa - underestimate the probability of anegative. It can be said in a simpler way, without any valencies:unreasonable optimism is turned on. Traders often have this cognitive bias when making decisions. Because I really want money... What to do? Turn on defensive pessimism 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
2
10 Lessons To Learn In Forex10 Lessons To Learn In Forex: 1) Learn All Basic Terminology - Pip, Lot, Margin, Spread, Leverage, Base currency, Rollover etc... 2) Demo Trade For At least 1 Year - Then Trade Low Lot Size To Start Real Trading With, When you are ready. 3) Risk Management Is #1- Always Control Risk/Reward (keep all trades to 1% to 2% of your total account). 4) Always Have A Strategy/Plan- If Serious Follow It always. You want to demo trade until you find one which has a positive win rate over 100 or 1000 trades. 5) Try Price Action Only Charts- Naked Charts Tell You Everything. Start learning and even real trading with money on just price action charts. You can add Fib retracements & extensions, trend lines, support, resistance, etc. over them as needed. 6) Journaling Trades To Learn- To Find An Edge & Answer Q's. You want to put things like the following in a forex journal: pair trades, buy or sell, price entered, stop loss, exit price, loss or profit, reason whey you took trade, etc... 7) All Indicators Are Lagging-They Tell You Past Not Future. Yes, you can use indicators & some are useful in trading, but depend on time frame, etc.. but they are unnecessary in forex trading. 8) Scalp/Day trade On Higher TF's-Easier Using 1Hr, 4Hr or Daily. Any timeframes under 1 hour should be used to get a better entry into a trades and also to use a tighter stop loss, but using 1hr, 4hr & daily should be used to find quality setups that match up with your strategy and/or plan. 9) Learn Candlestick Language-They Give You A lot Of Info. Look at naked or just price action charts on any timeframes, what do you see? Candlestick bodies and wicks/shadows, reversals, times when same pairs tend to have trending or sideways price action. Buying/Selling pressure & trading patterns, etc... 10) Forex Trading Is A Marathon - Not A Sprint Race. Trading Forex can be a full time job, if you are serious and treat it like a business. The slow approach is best one to trade with- let your account slowly build up, using compound interest, by controlling risk and reward per trade to 1% to 2%, with a winning strategy/plan or having a profitable win rate in trading, your account will go higher then you think- have no fear, no greed & have patience.
Education
by Anbat
11
Top 10 Reasons Why Traders Fail?There are many reasons why traders may fail. Some common reasons include: Lack of a trading plan: Having a clear and defined trading plan is essential for success. Without a plan, traders are more likely to make impulsive and emotional decisions, which can lead to poor results. Poor risk management: Risk management is a crucial aspect of trading. Traders who do not properly manage their risk are more likely to suffer significant losses. Lack of discipline: Discipline is important in trading because it helps traders stick to their trading plan and avoid making impulsive decisions. Inadequate knowledge and education: It is important for traders to have a thorough understanding of the markets and the instruments they are trading. Without proper knowledge and education, traders are more likely to make mistakes. Overconfidence: Overconfidence can lead traders to take on too much risk, leading to significant losses. Emotional trading: Emotional trading can cause traders to make impulsive and irrational decisions, leading to poor results. Not adapting to market conditions: Markets are constantly changing, and traders must be able to adapt to these changes in order to be successful. Not staying up-to-date: Staying up-to-date with market news and analysis is essential for traders. Those who fail to do so may miss important market developments and make poor trading decisions as a result. Not having a trading mentor or coach: Having a mentor or coach can provide valuable guidance and help traders avoid common mistakes. Lack of patience: Patience is a key trait for traders to possess. Those who lack patience may make hasty and impulsive decisions, which can lead to poor results.
NSE:BANKNIFTY1!Education
by algostudio
Why Having a Daily Max Loss Will Save You From Going BankruptHello traders, A personal story When I was building scripts for traders back in my Quant days, I often overheard them talking about the "lockout loss" (also called "max daily loss") concept. Once reached, the trading buttons were literally disabled and they couldn't do anything. When I became a trader, I quickly realised when I lost 2 days in a row, something was wrong with me... could be with my sleep, my mood, my lack of focus or energy, my personal life getting in the way. More often than not, I am the reason I'm not profitable regardless of which trading strategy I use. Meditating helps me getting back in a calm state whenever I feel emotions too strongly. If I keep losing for more than 1 week, then I start reconsidering my strategy and tweaking it accommodating for the lack of volatility.... Can only be the lack of volatility because when it's volatile, it's easier to make money... Most traders lose during ranges and markets tend to range most of the time.... here you go... now you know the hidden well kept secret why trading is so difficult... That's because most traders trade what's not moving + they don't have a max daily loss....=> a sure mix to head to Rektland While traders and investors are generally focused on increasing profits, it is also critical to manage risk and reduce possible losses. Setting a maximum daily loss, also known as a stop loss or a loss limit, is one approach to do this. A maximum daily loss is the most amount a trader is prepared to lose in a single day of trading. This may be stated in either monetary terms or as a percentage of the trader's total account balance. Setting a maximum daily loss helps traders maintain discipline and avoid allowing their emotions to take over when things don't go as planned. Setting a maximum daily loss has many major advantages: 1) Cash preservation By establishing a maximum loss amount, traders may guarantee that they do not lose too much of their capital on a single deal. This may assist them protect their total trading account balance and allow them to trade in the future. 2) Managing risk Trading has inherent risk, and it's critical for traders to determine how much risk they're ready to accept. Setting a maximum daily loss assists traders to manage their risk and make better educated, measured transactions. 3) Discipline It's easy to get caught up in the thrill of a transaction and lose sight of the overall danger. A maximum daily loss encourages traders to be disciplined and avoid making rash, emotional judgments that might result in larger losses. It is crucial to remember that a maximum daily loss is not a guarantee against loss; rather, it is a tool to assist traders in managing risk and remaining disciplined. Traders should also be mindful of the possibility of slippage, which occurs when market circumstances change fast and the transaction is completed at a price higher than the stop loss threshold. This one is very hard because even when we stop pushing on the long/short/buy/sell buttons, we see what's going on and we think "if I kept trading, I would have make it all back..." No, you wouldn't have not because the reason you kept hitting your max loss for multiple days is because something is wrong with YOU and you didn't figure out what that is yet. => then you certainly would have failed that "easy" pump/dump move too Conclusion Every 2/3 weeks, assuming I kept increasing my capital consistently, I allowed myself to increase my daily max loss by 20% ish. The percentage here doesn't matter - what matters is increasing it slightly every X weeks to reward ourselves for being consistent. Setting a maximum daily loss is an essential part of risk management for traders and investors in general. Traders may make better judgments and preserve their wealth by defining their risk tolerance and creating explicit loss limits. I wrote tons of other useful FREE articles here: www.tradingview.com Thanks for reading Dave
Education
by Daveatt
2
XLM/BTC Position Trading. Zones. Money management. PsychologyLogarithm. Time interval—1 month. The main trend since the beginning of trading. Coin in coinmarketcap: Stellar. Top trading pairs to bitcoin have significant liquidity. In position trading, you need to work in portions from support/resistance level zones with a predetermined size distribution. Unlike pairs to the dollar, pumps/dumps are smaller in % ratio due to the % rise/fall of bitcoin itself. If bitcoin is cashed in the market, profits remain the same. Hence, the smaller % is illusory in nature. BTC instead of stabelcoins . In such pairs, the “money” is bitcoin. Consequently, even premature selling (there shouldn't be any, since the position is allocated in advance) forgives mistakes, since you get bitcoins instead of USD or stabelcoins. Currently, many stabelcoins are losing their $1 peg, meaning they are devalued. Trading in a bitcoin pair reduces that risk. Work on such pairs is suitable foremost for medium and large participants of the market. It is not rational to work with a small amount in such a time/profit perspective. Money (crypto assets) security Money management. This is key. You don't need to hold a large position on the exchange for this kind of trading! Why keep coins or stabelcoins on exchange if you make transactions quite rarely, only large movements. You understand beforehand when it will happen and in what price zone you are going to buy/sell. That's what all the big market participants who don't take part in price formation do. When you need to buy or sell, you transfer the assets to the exchange and sell or buy on the market. You withdraw right away. If the amount is large enough, you should do this procedure in installments, preferably on several exchanges. At one time I worked for a long time (several years) on DOGE/BTC pair, when this coin was (scam, joke coin) nobody was interested in it, unlike the current time of hype. There is a trading idea of the principle of this work in Russian 2019. In this work, you work only in the secondary trend, from the main support/resistance zones, considering the development of the trend. You absolutely do not need to be interested in crypto news, the opinion of the majority and so on. You can look at the chart even once every few months. What's more, you also don't need to know the future highs and lows of the next cycle (though for traders, they are easily identifiable). You work piecemeal from the zones. You know in advance where and by how much you buy or sell. Locally you can trade 20-30% of your coins, so you will have extra profit. But you don't have to. The price goes down — good for you. The price goes up — good for you. Trading is guessing market probabilities of price movements. Algorithmic thinking according to a trading strategy, devoid of any emotion, makes money. Anything else loses it in any market. In other words, you must initially be prepared for more likely (in your opinion) and less likely outcomes. Know under what conditions you buy and under what conditions you sell. Buying/selling in portions of coins according to predetermined zones. You work from the average recruitment price and from the average selling price in portions, similar to how large market participants work on the BTC/USD pair. You never go completely into cache or similarly into coins. Only the % ratio of coins to money changes depending on the market cycle. Work from the average buy/sell price (of money and coins) on a global scale (large time frame), without any "what if this time will be different". If it does, it's none of your business. Know in advance where you will buy more in case of drawdown, and where you will sell in case of pumping. Again, without the "It could be different this time" and emotional component. Sell and buy assets a little bit before everyone else in the market in installments, "not knowing the exact future," even if you think you know it. This will keep you from making mistakes. Coin trading in the local trend. By trading part of a position locally, you will always have money from profits to buy (averaging the main position) in case of so-called local "black swans". This work is not mandatory, but desirable. It helps some people a lot psychologically, especially if the initial entry into the asset was erroneous and the price dropped significantly. By increasing the number of coins of local work, you thereby reduce your previous losses or even come out in profit over time. Again, you don't have to work this way, but it is advisable. The smaller goals you set, the more you end up earning on the distance . An untouchable supply of coins and cache in case of market force of circumstances . Always keep in mind the possibility of a “black swan,” even if it seems impossible. You always have 20-30% of your position depending on the cycle (money/coins) in case of force of circumstances. Bearish—a “black swan” sell-off under the channel support zone (happens very rarely). Bullish—the final hammer madness over the channel resistance (happens very rarely just in pairs with bitcoin because in a bull cycle bitcoin grows 5-8 times on average). Remember that in the accumulation phase in most cases there is a residual price zone of capitulation, super fear. It is usually accompanied by a “black swan. When everyone gets rid of their assets out of fear. You, on the contrary, buy with a grid of orders with a large range, without emotion. Consequently, always have a pre-allocated cache (or from the profits of a local trade) if such a trading situation is realized in the market. Turn someone else's negative emotions into your own profits. You should always act according to your trading plan and be ready for any market situation, even an extremely unlikely one. bull market highs zone (channel resistance). At the peak of the market, you should already have more than 60-70% in bitcoin (cache) for the next market cycle. 10-20% of the rest of the position should be in a stop loss to protect profits. This is more rational if the last spurt occurs. Coins sold for bitcoin can be held in bitcoin in a cold wallet (not rational if the overall market trend has reversed). You can also similarly sell on the market for cash (be sure to withdraw from the exchange), or put a stop-loss to protect profits, in case the market makes another spurt (additional profit on the BTC/USD pair). Always sell when the price rises significantly (pumping). Protect your profits with a stop. Always sell a substantial portion of your coins with a grid of pending orders during an active pumping phase. Another option is not to sell, but to protect your profits with a stop loss. Bear market minima. (lower channel zone). In a bear market, the lower the price falls, the more market participants wait even lower. Everything is similar to the distribution, only mirrored in the opposite direction. This illogical inadequacy of people is especially noticeable at the "peak of fear." Before that super minimum (there may not be one), you need to gain most of the coin position in advance, but be prepared for anything... Again, you must know in advance where and for what % of the allocated amount you buy coins and under what conditions. There must be discipline in everything and determine in advance what your further actions will be in accordance with your trading algorithm, rather than an emotional component. Always have a certain percentage of money that is comfortable for you in any dominant trend and phase of the market. Bull Market . In a bull phase, you should accumulate a large percentage of cache (stabelcoins) at the expense of profits. Bear market . In the bear phase (altcoins from -90% and below) you should accumulate in portions of cryptocurrencies you are interested in. I'm sure most people have it the other way around. In a bullish phase, most collect promising cryptocurrencies bought near price highs (hype, everything goes up in value). In the bear phase, on the contrary, most market participants load most of their trading depots into staplecoins (fear, everything is falling in price, expectation of inadequate floor prices). They are driven by the desire to buy back the lowest price of the trend, right before the reversal. The lower the market falls, the more most go from fear to stablcoins. Trade market cycles, not individual cryptocurrencies. Because their price strictly follows market cycles, but not the other way around. Options for the development of price movement on the pair XLM/BTC. . I will show the percentages of the following 3 zones of this channel, depending on where and under what conditions the reversal of this secondary trend will occur (a downward wedge is formed). 1 variant of reversal. Candlestick chart. Butterfly formation, the wedge is not embodied. 1 reversal variant. Line chart. 2 reversal variant. Candlestick chart. Version 2 of reversal. Line chart. 3 reversal variant. Candlestick chart. Full formation of the descending wedge on the classic TA. 3 reversal variant. Line chart. Be aware of trends and accumulation/distribution zones . Remember that a bear market, like a bull market, will not last forever. Where there is supposedly an end, there is always a new beginning. Everything is subject to cycles. This is especially true of financial markets. Every cycle is the same to the point of triviality. Be guided by trends, that is, by accumulation/distribution zones, when they start and end. Bitcoin⁣ — as more than a decade of cycle history shows, this is from -70-82% of the secondary trend high. This does not mean that the subsequent cycle will have the same percentage trend value, but there is a possibility. Alts average -90-96% and lower depending on the liquidity of the crypto coin. The lower the liquidity (people involvement), the higher the risk. You should also understand that the lower the liquidity, the higher the slippage at “peak fear” can be. Many altcoins, especially those with low liquidity, do not survive to the next cycle. Also be aware of market capitulation shocks as a consequence of so-called “black swans.” It won't necessarily happen, but the possibility always exists. The price of something that is worthless can be turned into absolutely anything on the market, to the point of inadequacy. It's not a real commodity whose value people understand. Psychology. Indicators of distribution/accumulation zones in cycles. Allocation zones ⁣—resetting to “hamsters” (fools or inexperienced market participants) is expensive. In a bull market, the higher the price rises, the higher the expectations. Up to inadequacy in the last reset zone in the distribution. “Hamsters” buy very expensive “promising coins” near trending price highs (marketing, information noise) and wait even higher. Accumulation Zones⁣ — Large market participants buy on the cheap from “hamsters”, constantly scaring them with various bikes and imitations. There is a massive build-up of negative news. Hamsters sell cheap and wait for an even lower price. No matter how low the price is, it cannot satisfy people like them. In other words, their thinking is sharpened to the opposite. Projecting onto trade what they are in life. Anything to do with money reinforces this effect. Buy expensive, sell cheap. Don't inherit this tendency of those who lose money in the market. As a rule, most people don't buy at flea markets; they are afraid. They wait for those who should be selling to them to say, "Fools, it's time to buy in the very expensive.") What matters is how much you earn when you're right, and how much you lose when you're wrong. You should know these potential values initially before you make a deal. If you can't determine them, or the risk is too high — refrain from trading. Immunity to guessing lows and highs . Most fools do this in all cycles. Forget the hamster concept of selling at the peak or buying at the low. Leave it to those who are destitute and will be even poorer because of it. Again, it's all in the head. What a person is like in reality is what a person is like in trading. Kill your greed. For example, in all bitcoin cycles (I have my third), the so-called hamsters (fuel) and pseudo traders (fuel) always want to guess the highs and lows of the price. The question is, why do we need to do this? The answer lies in the thinking of the poor and lack of understanding of simple logical things. The ability to wait for your goals. Be patient. Cycles, both local and global, tend to recur with their own time interval, which cannot be identical to the previous one. Consequently, only the patient earns. Learn to be out of the market, In areas of uncertainty, if the market doesn't let you make money, why burn time in vain? This time can be used with benefit both for yourself and for others. Take a rest, read an interesting book, go somewhere, do something useful. The main thing is not to immerse yourself on the Internet. It is important how much you earn when you are right and how much you lose when you are wrong. Initially, before entering a trade, you should know these potential values. If you can't determine them, or the risk is too high, then refrain from trading. Treat the numbers on the screen as numbers, not as money. No equation with the value of "what you can buy with that amount of money on the screen." That is, you have to identify with the percentage of profit/loss, not the money — the amount of profit/loss. When -5% to $100 is $5, and you are not afraid of such a loss. But, for example, when your balance is over $10 million, then -5% would be $0.5 million. For a fat hamster, that's a tragedy. For a big trader, it is a calculated risk. The drawdown can be much more significant, but the risk is always considered and accepted in advance. In the end, the profit more than compensates for such a drawdown. I think you understand the logic. It allows you to understand whether you are ready to work with large sums or not. I purposely wrote a large amount as an example to provide a clear contrast because everyone is ready to lose temporarily, namely temporarily $5? But $500,000 is an unimaginable amount for most people. But to be ready to work with big sums, you need that discipline and attitude towards money at the very beginning of your hobby of trading. Everyone wants to work with large sums in the future when they trade, or am I wrong? As a rule, most market participants cannot overcome this barrier because of their "lust for money" and identification: the numbers on the screen are real money, not just profit/loss % figures. A trader's behavior in the market is a result of his thinking. Your way of thinking affects your habits, and your habits are what makes or loses money in the market. Margin is bad . The exception (not necessarily) is an adequate short position with minimum leverage and risk limitation. If you want to steadily earn in the market and never get nervous - don't use margin at all. Absolutely never. As a rule, the poor use margin, and the poorer they are, the higher the leverage. Perhaps that is the secret of their poverty. I'm not talking about margin in the first place, I'm talking about the mindset that generates higher margin leverage, driving the risk/profit ratio to idiocy, but that's the way it is. Exchanges don't like those who make money and adore those who might lose money trying to get rich. Margin trading with leverage is only for experienced traders. It should be taboo for novice traders. Diversification of storage and trading places . This is very relevant to position trading. I wrote about it above. Don't trade or store your coins in one place. "Russian or South Korean hackers attacked a top exchange, all cryptocurrency stolen." This is sarcasm, but this is exactly the kind of FUD for fools you will see when they just steal cryptocurrency from exchanges under the guise of such a tale. The made-up story doesn't matter, what matters is that the people behind the cryptocurrency exchanges will steal cryptocurrency from you, wearing the skin of an injured sheep). The safety of your money (including cryptocurrencies) depends only on you, not on chance. Anything that seems random is not. If you always rely on chance instead of your mind, you are doomed. The will of chance will shadow you and haunt and empty your pocket time after time. You will always be at the forefront of the victims of your carelessness and self-confidence. Always keep some of your positions in cold storage . Keep some of your positions, even if you are very actively trading, on a cold or hardware wallet (preferably several). It should be at least 30% of your total deposit. This percentage should vary during certain phases of the market. In accumulation zones, most of the position should be out of the exchanges. Diversification of stubblecoins (profits) and their blockchain storage. Very relevant because in the future, one liquid stabelcoin like UST (Luna) will be zeroed out (disposal of money on a large scale). Probably, many people have understood this for a long time, but do not believe it will be implemented. Not only that, but most altcoins will evaporate at the moment. Yes, the probability, as always, is no greater. But if that probability is there, it is rational to take steps to make sure it doesn't hurt you. Diversification as well as swift action during an event is the best defense against something like this. Stable coins are always a risk. Keep this diversification in mind, both by their own varieties and by blockchain if you are storing them on a hardware wallet. Unfortunately, this is a risk you will have to accept and live with, as using stablcoins is a component of trading. Diversify such assets not only when you are out of the market waiting to trade, but even when you are actively trading. That is, by using different stabelcoins when trading the same cryptocurrency (e.g., BTC) you reduce risk. For example, BTC/USDC, BTC /USDT or BTC/BUSD. Any stabelcoin is an altcoin whose value (stability) is based only on people's belief in its stability . Totally uninterested in the opinion of the crowd . The crowd is always wrong. The majority always loses in the market. Otherwise, it would be impossible to make money in the market. Therefore, by being interested in and listening to the trend of the opinions of most market participants, you can unnoticeably lean towards the opinion and understanding of those who initially have to lose. Are you prepared for losses? No? Then why should you be? Another option is to use the opinion of most market participants to track market trends. If you are well-versed in psychology, this will be helpful. If not, you yourself may fall prey to opinions unnoticed. Everything unpredictable is the fate of only absolutely predictable people, it always was, is and will be . Don't be interested in cryptocurrency news. The chart takes everything into account, including the release of "tales for fools." All crypto news is created for price direction and nothing more. Small-scale news for influencing fools (their logical scare/satisfaction actions) to locally influence the price. Large scale news and events to globally influence the trend and the market as a whole. If you can understand and read between the lines, understanding what the manipulator is trying to achieve, then you can use the news background in your trading strategy. If not, and you are not a good psychologist - completely ignore the flow of information. The positive and negative emotions of others in the market generate volatility, which is your earning wave. Ride it. Don't mess with anonymous fools. Appreciate your time. Don't pay attention if someone criticizes you without being constructive, or wants to impose their perspective without arguments of rightness. Such commenters are usually people with a very low social status in reality, they are trying to assert themselves through the internet in an anonymous world. Be immune to such losers, they are the ones who want you to doubt yourself and accept their perspective. The more bile, the more anonymous cries from. Understand that only such people have time to correspond and “spout bile” on the anonymous internet. As a rule, these are immature individuals or conventionally "mature," but with the mindset and interests of a teenager. Don't waste your time on the vacuous or psychological aberrations of flawed Internet characters. Make good use of your time. The behavior of people in financial markets is a projection of who they are in real life. That is, their positive and negative psychological qualities. Don't be a trading junkie. Don't waste time. Don't waste time. Both for meaningless Internet price guessing, and for round-the-clock trading. Mindless guesses. The idiocy of the crowd. Trying to guess highs or lows that are logically understandable. When all scenarios are clear and understandable. Do not turn into idiots from the "where the price of bitcoin will go" sect. Everything is always the same in every cycle. You must decide for yourself initially (after spending several hours) on what conditions and prices you will buy this or that cryptocurrency and at what prices to sell. Have a more likely and less likely scenario. Be ready for any incarnation. Do not complicate simple logical things with the stupidity of fortune-tellers mixed with your greed. The basis of trading is your trading strategy , that is, your knowledge that you put into practice in symbiosis with risk management , that is, your manner of taking on take risks in transactions and manage money. To paraphrase, initially you need to understand how much you will earn when you are right, and how much you will lose (hit stop or averaging if a less likely scenario is realized) when you are wrong. In such cases, it is absolutely not necessary to know the exact price of the low or high of the trend, leave that to the idiots. Trading 24/7. I will write short and clear. Money without life is not needed. In everything there must be adequacy. Knowing the instinctively more likely behavior of people (the psychology of mass behavior) in a given situation, as well as programming people's behavior (what is right / wrong, how to act in a given situation according to the rules) and creating the same situations, allows easy to manage "potentially uncontrollable behavioral chaos". Psychology. Be yourself - don't go against yourself. For traders Work with your trading algorithms based on your knowledge and experience, not on emotions. For those who are faced with the fact that trading constantly "hit the head" . Become an investor. Carefully study the cryptocurrencies you are interested in and decide whether to invest in them or not. Divide the money needed to invest in each cryptocurrency into several parts. Buy in areas of potential price reversal. After purchase, send your coins to a hardware wallet. Stay away from your cryptocurrencies until the new bull cycle (peak will be in 2025). Also, before the big bull cycle, there will be an intermediate one by a relatively small percentage, as in 2019-2020. Don't forget to sell some of the coins to buy them back much cheaper. It is also worth paying attention to those cryptocurrencies that are included (blockchains and protocols) in the development of CBDC and comply with the future ISO 20022 standard (already in March). XLM is one of them.
Education
by SpartaBTC
13
⚠️Don't let FOMO ruin your trading⚠️FOMO, or "fear of missing out," is a common emotion that can lead to impulsive and potentially reckless trading decisions. ⚠️ ✅Here are five key rules to help you respect and manage FOMO in your trading: 🔵 Use risk management techniques. Proper risk management is critical to successful trading. This includes setting stop-loss orders to limit potential losses and using position sizing strategies to ensure that you don't risk more than you can afford to lose. 🔵 Seek out education and guidance. If you're new to trading or struggling to manage FOMO, it can be helpful to seek out educational resources or seek guidance from an experienced trader or financial advisor. By learning more about the markets and trading strategies, you can increase your knowledge and confidence, which can help you make more informed and rational trading decisions. 🔵 Take breaks and step away from the markets. It can be easy to get caught up in the excitement of trading, but taking breaks and stepping away from the markets can help you clear your head and make more rational decisions. 🔵 Don't let emotions drive your trades. FOMO can lead to emotional trading, which is often not based on sound analysis or strategy. It's important to stay disciplined and base your trades on objective criteria rather than letting emotions drive your decisions. 🔵 Set clear trading goals and stick to your trading plan. Having a clear understanding of what you hope to achieve with your trades and a plan to achieve those goals can help you avoid making impulsive decisions driven by FOMO. 👤 @Galerdev 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate my work , Please like, comment and follow ❤️
Education
by TradeConf
THE IMPACT OF INTEREST RATES ON FOREX MARKETHello again! Interest rates can have a significant impact on the forex market , as they can affect the demand for and supply of different currencies. In general, higher interest rates tend to attract foreign investment and increase the demand for a currency, as investors can earn a higher return on their investments. This can lead to an appreciation of the currency in the foreign exchange market. On the other hand, lower interest rates may discourage foreign investment and reduce the demand for a currency, leading to a depreciation of the currency in the forex market. Interest rates can also affect the attractiveness of a country's assets, such as stocks and bonds, which can in turn affect the demand for its currency. For example, if a country has high interest rates, its assets may be more attractive to foreign investors, leading to an increase in demand for the country's currency. In addition to the interest rate level, the direction and pace of change in interest rates can also affect the forex market. If a central bank is expected to increase interest rates in the near future, it may lead to an appreciation of the currency, as investors anticipate higher returns on their investments. On the other hand, if a central bank is expected to lower interest rates, it may lead to a depreciation of the currency. Overall, the relationship between interest rates and the forex market is complex and can be influenced by a variety of factors, including economic conditions, inflation expectations, and global market conditions.
OANDA:XAUUSDEducation
by m_maia14
ECONOMIC CYCLE & INTEREST RATESHello traders and future traders! The state of an economy can be either growing or shrinking. When an economy is growing, it typically leads to improved conditions for individuals and businesses. Conversely, when an economy is shrinking or experiencing a recession, it can have negative consequences. The central bank works to maintain a stable level of inflation and support moderate economic growth through the management of interest rates. What is an economic cycle? An economic cycle refers to the fluctuations or ups and downs in economic activity over a period of time. These cycles are typically characterized by periods of economic growth and expansion, followed by periods of contraction or recession. Economic cycles are often measured by changes in gross domestic product (GDP) and other economic indicators, such as employment, consumer spending, and business investment. Economic cycles can be caused by a variety of factors, including changes in monetary and fiscal policy, shifts in consumer and business confidence, and changes in global economic conditions. Economic cycles can also be influenced by external events, such as natural disasters or political instability. Understanding economic cycles is important for businesses, governments, and individuals, as it helps them anticipate and prepare for changes in the economy and make informed decisions about investment, hiring, and other economic activities. How is an economic cycle related to interest rates? Interest rates can be an important factor in the economic cycle . During a period of economic expansion, demand for credit typically increases, as businesses and consumers borrow money to make investments and purchases. As a result, interest rates may rise to control the demand for credit and prevent the economy from overheating. Higher interest rates can also encourage saving, which can help to balance out the increased spending that often occurs during an economic expansion. On the other hand, during a period of economic contraction or recession, demand for credit tends to decline, as businesses and consumers become more cautious about borrowing and spending. In response, central banks may lower interest rates to stimulate demand for credit and encourage economic activity. Lower interest rates can also make borrowing cheaper and more attractive, which can help to boost spending and support economic growth. Overall, the relationship between interest rates and the economic cycle can be complex and dynamic, and the direction and magnitude of changes in interest rates can depend on a variety of factors, including economic conditions, inflation expectations, and the goals and objectives of central banks and other policy makers. I hope you leant something new today!
Education
by m_maia14
Emotion-Free Trading After a Loss✅1. Don't panic: Losing a trade can be frustrating, but it's important to remain calm and not make any hasty decisions. Remember that investing in stocks and cryptocurrency carries inherent risks, and losing a trade is a normal part of the process. 2. Don't hold onto a losing position: If a trade is not going in your favor, it's generally a good idea to cut your losses and sell the position. Holding onto a losing position in the hope that it will turn around can lead to even greater losses. 3. Don't chase losses: Trying to recover losses by making risky trades or investing more money is a common mistake made by investors. This approach is often referred to as "revenge trading," and it can lead to even greater losses. 4. Don't give up: Losing a trade can be a setback, but it's important to stay the course and continue to invest in a disciplined and strategic way. Don't let a losing trade discourage you from reaching your long-term investment goals. 5. Don't ignore risk management strategies: It's important to have a plan in place to manage risk, especially when losing a trade. This could include setting stop-loss orders, diversifying your portfolio, or using other risk management techniques. Ignoring risk management strategies can lead to even greater losses. 🚀For updates on the latest developments in psychology, market trends, and important news, follow our page. Stay informed and stay ahead of the game with our regular updates.
Education
by TradeConf
Learn Pros & Cons of Trading on Demo Account Hey traders, In this article, we will discuss demo account trading. We will discuss its importance for newbie traders and its flaws. ➕Pros: Demo account is the best tool to get familiar with the financial markets. It gives you instant access to hundreds of different financial instruments. With a demo account, you can learn how the trading terminal works. You can execute the trading orders freely and get familiar with its types. You can get acquainted with leverage, spreads and volatility. Trading on paper money, you do not incur any risks, while you can see the real impact of your actions on your account balance. Demo account is the best instrument for developing and testing a trading strategy, not risking any penny. The absence of risk makes demo trading absolutely stress-free. ➖Cons: The incurred losses have no real impact, not causing real emotions and pressure, which you always experience trading on a real account. Your performance (positive or negative) does not influence your future decisions. Real market conditions are tougher. Demo accounts execute the orders a bit differently than the real ones. That is clearly felt during the moments of high volatility, with the order slippage occurring less often and trade execution being longer. Trading with paper money allows you to trade with the sums being unaffordable in a real life, misrepresenting your real potential gains and providing a false confidence in success. Even though we spotted multiple negative elements of demo trading, I want you to realize that it still remains the essential part of your trading journey and one of the main training tools. You should spend as much time on demo trading as you need to build confidence in your actions, only then you can gradually switch to real account trading. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
3
4 Signs that Say You’re Ready for Full-Time Trading For forex traders, nothing embodies freedom more than those who trade full-time. After all, full-time traders enjoy freedom from their box-type offices, freedom of time, and freedom to choose which trading opportunities to take. Unfortunately, this brand of independence isn’t for everyone. Just like too much freedom can do more harm than good for some economies, not all traders are ready to trade full-time. So how do you know when you’re ready for full-time trading? From what we’ve seen from online forex communities, we can narrow it down to four signs: 1. You have enough capital Trading full time means that you’ll be quitting your job, your primary source of income. And, because you’re realistic, you know that you probably won’t be making any serious trading money in your first few months. 2. You have tried and tested other methods and strategies Not only do you need to have a strategy that has proven to be profitable for you, but you also have to have other equally qualified methods that would work for other trading conditions. After all, you never know when and for how long the market trends will shift! 3. You have spent a considerable amount of time trading LIVE Trading a live account brings forth trading psychology hurdles that you wouldn’t get from trading demo accounts. In addition, you have to have a fairly good grasp of your trading strengths and weaknesses, and, more importantly, you should know how to stick to a trading plan before you make trading your full-time job. 4. Trading is your passion Trading currencies is what motivates you to get up and get busy every morning. Remember that while full-time trading would provide you more opportunities to catch market movements, you don’t need to be a full-time trader to be consistently profitable. What do you want to learn in the next post?
OANDA:XAUUSDEducation
by UnitedSignals
8
Trade with Confidence: 5 Day Trading Psychology Rules to Embrace Set clear goals and limits: Before you begin trading, it's important to have a clear idea of what you hope to accomplish and how much risk you are willing to take on. This will help you make informed decisions and avoid making impulsive trades based on emotions. Control your emotions: Day trading can be stressful, and it's easy to let emotions like fear or greed influence your decisions. It's important to stay level-headed and stick to your pre-determined trading plan, rather than getting caught up in the heat of the moment. Use stop-loss orders: A stop-loss order is a type of order that closes a trade automatically once it reaches a certain price. This can help you minimize losses if the market moves against you. Diversify your portfolio: Diversification is a risk management strategy that involves spreading your investments across a variety of asset classes. This can help you manage risk and potentially earn higher returns over the long term. Continuously educate yourself: The world of day trading is constantly evolving, so it's important to stay up-to-date on the latest trends and techniques. This can help you make informed decisions and improve your chances of success.
Education
by TradeConf
3