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Trading Psychology

The 7 Levels of Financial Freedom Hey traders, In this article, we will discuss the ladder of financial independence. Level 1 - Solvency You cover your debts and living expenses with your income. Being solvent is considered to be shaky states. Once you stop earning for any sake of a reason, you immediately become in debt. Level 2 - Stability Besides being able to cover your living expenses and debts, you also have an emergency savings. The emergency savings usually cover 1-2 months of your basic expenses, making your state more sustainable. Level 3 - Debt Freedom You are free of debts and that lets you start investing and save even more. It is the transitional level in our ladder from unstable to a secure state. Level 4 - Security Your investments cover your basics expenses. While you keep earning, the money that you invested start bringing more money fortifying your state. Level 5 - Flexibility While your investments are still not sufficient to cover all your costs of living, it fully compensates 1-year costs of your basic expenses. Level 6 - Independence Your investments cover all your living costs, letting you live wherever you want and spend on luxuries. Level 7 - Abundance Money is no more a concern to you. You have more than you and your children will even need. The understanding of the level where you are is crucially important for building your investment strategy. Keep working and learning to constantly climb the stairs and grow your wealth. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
6
My trading setupWas recently speaking with a newbie trader and he was showing me his setup. Highlighting his specialized keyboard and mouse, together with a 49 inch widescreen monitor, and some fancy CPU. All up it cost him more than $5,000. This led me to think, is a hi-tech premium setup necessary for successful (Profitable) trading? Should you prioritize funds towards a trading setup or into your trading account? My trading analysis process: 1) identifying broad-based trends based on fundamental analysis 2) aligning the fundamental bias with the technical setup 3) calculation of risk management This is why I have my trading setup like this, which I've found to be the most effective for me: - Vertical screen on the side to read long-form news and articles. - Horizon screen at eye level for my trading platform. - Laptop screen used to write up my analysis How do you have your trading setup? Share a picture in the comments
FX:XAUUSDEducation
by JinDao_Tai
11
10 Trading Rules I Used To Stop Losing MoneyHello traders, All the below are based on my preferences, I don't give any financial recommendations and I have nothing to sell you with this article. I'm sharing content because I see a lot of traders being/becoming broke and I don't want you to be one of them. I) Hard work versus efficient work Work ethic doesn’t matter.
 You can work as hard as possible and not get rich. So getting rich is not about pure hard work.
 Getting rich is about knowing what to do, when to do it, and with whom to do it. It is about understanding. Once you figure this out, the next is about executing the path —> which will probably require the hard work. But as we see, the work comes implicitly in the execution of the path/destination. 
So, don’t do the hard work for its own sake, that would be a waste of time. II) The Understanding 
You can develop this skill by becoming a perpetual learner. 
And when feeling confused during the learning sessions ==> that’s OK. Your brain is like a muscle, and it means that is being “trained”. 
Foundation of “axioms” (based on full truth) are critical for learning and interpreting new information. So, when developing the “axioms” make sure you are consuming high quality information. III) How do we make sure that our foundation is high quality Step 1 : Stick to hard science, mathematics, the “basics”. Why? There is no disagreement between people in these areas, so they are solid foundations.

 With trading, simple always outperform complicated.

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

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

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

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

For me, I’m a “master” at trading indices futures and CFDs. 
I’ve been doing it for more than 10 years. 
I can trade them even without indicators as I know how the DAX, DOW, SPX often react after a gap or a macro event or after a specific price action. Quotes of the day Leaving you now with a few quotes from some of the brightest minds “Study game theory, psychology, mathematics and computers” - Naval Ravikant “Opportunities come to the prepared mine” - Abraham Lincoln “An investment in knowledge pays the best interest” - Benjamin Franklin “Formal education will make you a living; self-education will make you a fortune” - Jim Rohn I'll keep bringing a few articles like this every week because it helps me clarifying my thoughts AND giving back to the community makes me feel good about myself somehow :) Thank you for reading Dave
Education
by Daveatt
12
ELON MUSK QUOTES FOR POWERFUL THINKING ELON MUSK QUOTES FOR POWERFUL THINKING Elon Musk is today's Nikola Tesla. Here are 11 Elon Musk quotes to make you start working on your dreams, no matter how impossible they might seem. “I do think there is a lot of potential if you have a compelling product and people are willing to pay a premium for that. I think that is what Apple has shown. You can buy a much cheaper cell phone or laptop, but Apple’s product is so much better than the alternative, and people are willing to pay that premium.” “When something is important enough, you do it even if the odds are not in your favor.” “What makes innovative thinking happen?… I think it’s really a mindset. You have to decide.” “I’ve actually not read any books on time management.” “It’s OK to have your eggs in one basket as long as you control what happens to that basket.” “The first step is to establish that something is possible; then probability will occur.” “I wouldn’t say I have a lack of fear. In fact, I’d like my fear emotion to be less because it’s very distracting and fries my nervous system.” “I say something, and then it usually happens. Maybe not on schedule, but it usually happens.” “If you get up in the morning and think the future is going to be better, it is a bright day. Otherwise, it’s not.” “As much as possible, avoid hiring MBAs. MBA programs don’t teach people how to create companies.” “It’s very important to like the people you work with, otherwise life your job is gonna be quite miserable.” Remember that your mindset is 80% of your future success, dear traders.
OANDA:XAUUSDEducation
by TopTradingSignals
9
WHAT ARE GAPS? TRIGGERS AND TIPS TO SPOT & TRADE THEM Gaps are important parts of the financial market, especially in stocks and currencies. They happen when an asset opens at a significantly lower or higher price than where it closed at. Gap is a situation where a currency or any other asset opens sharply lower or higher than where it closed the previous day. Such a gap happens when there is a major event or news when the markets are closed. It usually represents an area where there is no trading taking place. There are three main scenarios that happen after a gap in the market forms. First, an asset price can continue moving in the direction of the gap. For example, when a bullish gap forms, an asset’s price can continue with that trend. Second, a gap can be filled within a few days or months. Finally, a gap can be followed by a long period of consolidation as traders focus on the next major moves. In all these, it is always good to focus on the asset’s volume. The most common strategy of gap trading is when you decide to enter a trade in the opposite direction of the gap. In this case, you will be betting that the asset will reverse after forming a gap. Ideally, one way of doing this is to check the trends of volume after the gap happens. Still, the risk of doing this is that the asset will either consolidate or resume the gap trend.
OANDA:XAUUSDEducation
by UnitedSignals
4
How To Get What You Want Out of Your TradingHello traders, All the below are based on my preferences, I don't give any financial recommendations and I have nothing to sell you with this article. I'm sharing content because I see a lot of traders being/becoming broke and I don't want you to be one of them. The today’s lessons coming from my experience is me sharing how I got what I wanted out of life Whether, it’s a 6 packs, money, success etc… I) Is writing down your goals even useful? A keystone habit that served me very well in retrospect, when there is something that I want that I do not have, so I have a desire which means I’ve made a contract with myself to be unhappy until I get what I want. So there is this thing external that I wanted - think of 6 packs, money, success, ... Writing down goals means nothing and I know it’s contrary to common belief or practice - which states people writing down their goals are more likely to succeed.

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

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

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

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

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

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

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

It all starts with activity, with doing.

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

 And …. That’s how wealth is accumulated. 

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

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

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

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

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

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

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

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

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

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

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

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

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

This mindset framework has been extremely beneficial for me. 
If I come trading with that mindset, then I’m not surprised nor affected when I’m losing some capital and I feel that way because it’s in alignments with the expectations I have in my mind. Thank you for reading
 I'll keep bringing a few articles like this every week because it helps me clarifying my thoughts AND giving back to the community makes me feel good about myself somehow :) Dave
Education
by Daveatt
2
How To (NOT) Fail As A Trader? (Part 1)Hello traders, All the below are based on my preferences, I don't give any financial recommendations and I have nothing to sell you with this article. I'm sharing content because I see a lot of traders being/becoming broke and I don't want you to be one of them. Today, I want to share some thinking frameworks I’ve used across the past 10 years. 
I’ve learned them from the legend himself Charlie Munger, cofounder of Berkshire Hathaway, what NOT TO DO to stay far away from being unsuccessful and poor. I) Don’t ingest chemicals 
Don’t ingest chemicals to alert your state
If I wanted to be really poor or unsuccessful in life, what would I do?
Well, I’d definitively get addicted to chemicals.
 Sounds so logical and obvious right?
 Though, many of us use them on regular basis to alter their mood because they can’t cope with how hard trading can be sometimes. I can’t think of anyone who ever told me “oh man, now my life is so much better since I’m on drugs and I drink” It’s not a judgment in any way; that’s what Charlie Munger says about successful people - they don’t ingest chemicals. II) Envy 
Every single year, I outperform my previous year YoY% PnL return and have grown my net worth. Though, I always find many guys over performing me in trading every single year. 
And for me, that hit me because I’m so innately competitive… that I suffer from comparison all the time. I even got to the weirdest point thinking “I feel the more money I make, the poorer I feel” Yes you read that right… and I know many of extremely successful traders feel that way.

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

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

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

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

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

Why am I saying this?

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

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

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

 I’ll post the Part II of this article tomorrow . Thank you for reading
 I'll keep bringing a few articles like this every week because it helps me clarifying my thoughts AND giving back to the community makes me feel good about myself somehow :) Dave
Education
by Daveatt
3
Learn Paralysis By Analysis | Trading Psychology Hey traders, In this article, we will discuss a very important term in trading psychology - paralysis by analysis. Paralysis by analysis occurs when the trader is overwhelmed by a complexity of the data that he is working with. Most of the time, it happens when one is relying on wide spectra of non correlated metrics. That can be various trading indicators, different news outlets and analytical articles and multiple technical tools. Relying on such a mixed basket, one will inevitably be stuck with the contradictory data. For example, the technical indicators may show very bearish clues while the fundamental data is very bullish. Or it can be even worse, when the traders have dozens of indicators on his chart and half of them dictates to open a long position, while another half dictates to sell. As a result, the one becomes paralyzed, not being able to make a decision. Moreover, each attempt to comprehend the data leads to deeper and deeper overthinking, driving into a vicious circle. The paralysis breeds the inaction that necessarily means the missed trading opportunities and profits. How to deal with that? The best option is to limit the number of data sources used for a decision-making. The rule here is simple - the fewer indicators you use, the easier it is to make a decision. There is a common fallacy among traders, that complexity breeds the profit. With so many years of trading, I realized, however, that the opposite is true... Keep the things simple, and you will be impressed how accurate your predictions will become. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
16
How to deal with uncertaintyHello traders, All the below are based on my preferences, I don't give any financial recommendations and I have nothing to sell you with this article. I'm sharing content because I see a lot of traders being/becoming broke and I don't want you to be one of them. Who taught me to become a great trader? Was it a majority of trying and failing? or was it masterminds? was it consultants? mentors? books? I) I was not afraid to fail I became successful because I wasn't afraid to fail. We learn quickly when we can fail then instead of dwelling I just got back up and tried again. And it took me weeks to figure out some issues with my trading simply from analysing my past trades AND it's way faster than reading trading books, buying trading courses taking me months to figure them out. II) I was totally fine in the unknown Disclaimer: you'll never be able to predict the future, what the FED is going to do, which country is going to invade which country, which bank will default, etc Most traders, the reason they can't succeed, is because they're looking for a mentor, a book, i.e. certainty and reassurance If you can survive and be ok with uncertainty then you realise you don't need all those things because you have common sense and thinking power. And you can actually think on your feet, you can iterate, you can innovate => fancy words to say you can adapt your trading strategies based on how volatile and directional the market is Great traders don't need certainty that a scenario will happen for sure. Regardless if it happens or not, they'll handle it either way. No blueprint is needed. They're prepared to trade regardless of how they feel the market should do and that's how I deal with uncertainty too. I accepted taking those risks with a demo account first and then trading micro-lots for about a year because I trusted I could make it as a trader. III) Self-education Now that I have a bit of money, I spend a lot in courses, mentorships, workshops, books, one-to-one coaching with 9+ figures people way above me in the "food chain" But let me be perfectly clear, I didn't spend a dime when I learned how to trade I learned by..... doing, failing, again and again and again.... at a 0 or low risk because I was smart enough to trade with the smallest position sizes possible. Conclusion The learn on the go mentality doesn't mean you learn and then go. It means you learn while you go. It's not because you have incomplete information that you have incomplete action. You're going to learn more from the completed action than you would from the lesson you're trying to learn through research (book, course, ...) With enough volume of trades, you'll be directionally correct eventually and then you can iterate from there. Rather than looking to capture the whole trades profit from top to bottom/bottom to top, not looking for the perfect trades but looking to capture opportunity at every trade, you'll speed up your decision loop a lot. Thank you for reading I'll keep bringing a few articles like this every week because it helps me clarifying my thoughts AND giving back to the community makes me feel good about myself somehow :) Dave
CME_MINI:ES1!Education
by Daveatt
3
If you lost deposit...COINBASE:BTCUSD Who is at fault? Let's start by acknowledging that we shall identify who is to blame for the irreversible. Who exactly is at fault for the money you lost? A market that is unprofitable? A market maker seeking increased compensation? A deceiver who desires to put everyone out of business? A signalman looking to overcharge for his signaled closed channel? Children who find it difficult to focus? Always a troublesome partner? No, you alone are at fault. You initiated the deal with your own two hands, which resulted in the destruction of everything. Nobody else compelled you to risk everything. Realizing this should cause you to cease blaming others for the results of your own behavior. It gets worse when you realize that your actions caused the money to be lost; it consumes you internally and prevents you from thinking clearly. You shouldn't worry, though, because life continues on. regain your composure. Errors are acceptable Each of us has the right to make errors because we are all human. Making mistakes is a necessary part of learning because otherwise, how would we know what is worthwhile and what is not? Just understand that mistakes are a necessary part of our journey and give yourself permission to make them. We learn from our failures and gain priceless experience that helps us reach higher heights. There are numerous examples of people who went completely bankrupt making a comeback among the Forbes list participants, using the priceless expertise they received as a result of their past errors to increase their earnings, accelerate their business growth, and improve as entrepreneurs. We all know all this famous success stories so the same is true with traders. How did Jesse Livermore come to be the subject of the memoir "Memoirs of a Stock Operator"? He completely lost all of his money and occasionally had to start again from nothing. He persisted and saw the setbacks as vital lessons that he could use to his advantage to eventually succeed. Work on your flaws Work diligently to correct your errors, consider your past, and determine what caused you to fail. What were you going through right when it all started? What feelings did you experience? What were you contemplating? What did they desire? You work Will you be able to make regular long-term gains with your current trading approach and mindset? Study technical analysis, system trading, money management techniques, trader psychology, and all that comes after if the answer is no. You can only succeed with system trading, restraint, and patience. Find someone whose primary source of money is trading, who is knowledgeable about the aforementioned, and trade with him if you don't have the willingness or time to do all of this and trading is your secondary source of revenue. However, when looking for someone like this, exercise extreme caution and thoroughly research his prior experiences. Are you plagued by the thought of wondering why, after earning a sizable sum for themselves, they didn't remove money from the market? Did you have any objectives or was money your main concern? Unless, of course, you are a fan of waste paper, money cannot be an end in itself; it can only be a means for achieving goals. It is not unexpected that you did not withdraw money if your aim was an illogical abstraction, such as a "abstract house," "abstract automobile," "abstract journey," and so forth. Change of direction You must express the objective clearly in order to succeed: The statement "I want to buy a good apartment" will not be effective, but the statement "I will purchase an apartment with panoramic windows in Paris, will be effective. If you don't know why you need money, trading will become for you a toy that rapidly becomes boring and destroys your life. But keep in mind that the objectives should be realistic and truly vital for you. This strategy will enable you to consistently take winnings from your trading account, set aside money for your objectives, and enhance the quality of your life. Enjoy yourself Don't go overboard a while frequently withdrawing money from a trading account. Make sure to spend at least a little money on your family and friends. You will thus be able to envision the outcome, feel inspired, and replenish your mental resources, which you can then use to make money. Put your affairs in order. You should bring yourself into balance after addressing the errors. Take care of your personal affairs, devote time to loved ones, your health, your children, pursue self-education, and relax in order to do this. Money and fresh ideas will undoubtedly come to you, and you'll discover a way out of the predicament. Life continues; it has not ended. You have a roof over your head, pleasant living conditions, food, water, good health, close friends, and many other things that you take for granted. Trust me, your life is someone's dream. Remember that many people do not have access to all of this, so be grateful for what you do have and enjoy life; everything else is just a minor annoyance. For your own benefit Due to the harsh circumstances, you will begin to see opportunities that you previously missed because of your comfortable lifestyle. However, your perspective will change totally as a result of these extreme circumstances. You now have experience, something most people do not. Your own success formula must include experience. He is the one who will keep you from making snap decisions and assist you in working through a challenging circumstance. "People become weak in good times. Poor people create poor times. People become resilient under tough times. Good times are made by strong individuals." The more challenging and challenging it is for you, the more probable it is that you will succeed if you manage. "A person wins internal victories during a tough time, and external victories during a prosperous time." Success, wealth, and acclaim will come to those who are diligently working on developing their character without giving in to hopelessness and despair. If you look around, you'll observe that most individuals behave in the exact opposite way during difficult times: Such people start to look for someone to blame for their difficulties when they become depressed, start drinking, and moan to everyone around them. This is due of their moral weakness, and they blame the government, presidents, officials, bankers, family, and friends. The victim's position entirely negates a person's advancement and ends his accomplishment. A person who is upset by fate criticizes more successful and strong people rather than making changes in his life and improving himself. ✅Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! * Look at my ideas about interesting altcoins in the related section down below ↓ * For more ideas please hit "Like" and "Follow"!
COINBASE:BTCUSDEducation
by Crypto4light
Mastering and Understanding Candlesticks Patterns An overview of Candlesticks A candle represents the changes in price over an interval of time, such as 1 day or 1 minute. The main body of the candle illustrates the opening price at the start of the time interval and the price when the market closed at the end of the interval. The length of the shadows shows how much the price has moved up and down with respect to a candlestick within a specific duration. The candlestick body describes the difference between the opening and closing prices for the corresponding time period. THe market is a battleftield between buyers and sellers. If one side is stronger than the other, the financial markets will see the following trends emerging: If there are more buyers than sellers, or more buying interest than selling interest, the buyers do not have anyone they can buy from. The prices then increase until the price becomes so high that the sellers once again find it attractive to get involved. At the same time, the price is eventually too high for the buyers to keep buying. However, if there are more sellers than buyers, prices will fall until a balance is restored and more buyers enter the market. The greater the imbalance between these two market players, the faster the movement of the market in one direction. However, if there is only a slight overhang, prices tend to change more slowly. When the buying and selling interests are in equilibrium, there is no reason for the price to change. Both parties are satisfied with the current price and there is a market balance. Analysis aims at comparing the strength ratio of the two sides to evaluate which market players are stronger and in which direction the price is, therefore, more likely to move.
OANDA:XAUUSDEducation
by TopTradingSignals
12
Fundamental Analysis in Forex Trading Economic indicators and announcements are an essential part of fundamental analysis. Even if you’re not planning on finding trades using fundamentals, it’s a good idea to pay attention to how the overall economy is performing. Here’s a cheat sheet covering six key indicators and announcements to watch out for. 1. Non-farm payrolls (NFP) The non-farm payrolls report estimates the net number of jobs gained in the US in the previous month – excluding those in farms, private households and non-profit organisations. 2. Consumer price index (CPI) The chief measure of inflation is the consumer price index, which measures the changing prices of a group of consumer goods and services. 3. Central bank meetings As we’ve seen, most traders follow economic figures so they can anticipate what a central bank might do next. So, it only makes sense that we pay attention to what happens when they actually meet and make decisions. 4. Consumer and business sentiment reports Multiple organisations are constantly surveying consumers and business leaders to create sentiment reports. While the number of reports they produce is staggering, they all play their part in shaping the markets’ expectation for the future. 5. Purchasing manager index (PMI) Purchasing manager indices measure the prevailing direction of economic trends in a given industry, according to the view of its purchasing managers. They are used as an indicator of the overall health of a sector. Pay close attention to these fundamentals. They play a crutial role in trading.
OANDA:XAUUSDEducation
by UnitedSignals
12
Trading Psychology (Part 1)A philosophy I engage in when trading the markets - I am not self-employed as a trader. - The market is my boss and my trades are my employees. - I merely manage those employees. Traders often have to think fast and make quick decisions, darting in and out of positions on short notice. To accomplish this, you need a certain presence of mind. You need the discipline to stick with your own trading plans and know when to book profits and losses. Emotions simply can't get in the way. It’s NOT that winning traders formulate better trading strategies It’s NOT that winning traders are smarter It’s NOT that winning traders do better market analysis One personal characteristic that almost all winning traders share is that of self-confidence . Winning traders possess a firm, basic belief in their ability to BE winning traders.
OANDA:XAUUSDEducation
by JinDao_Tai
How you trade impacts how you feel 😀It's no secret that managing your trading psychology is the biggest challenge in your trading journey. Some say it counts for 80%+ of what's needed to be successful. I totally agree... However, there's a key factor in this for me. How you actually trade to start with! Correct trading psychology starts by realising you need a strategy. If you're guessing with no real plan or risk management surely you're going to be more stressed and overwhelmed than a trader who has a plan, has the data to support his strategy and manages his risk? So once you get your system/strategy nailed on, this in turn will help manage your fear. Greed is another factor, but this comes from your expectation. Expectations and reality need to be aligned with one another. Your expectations can come from your data and your testing. But if you've skipped this step you'll be chasing unrealistic expectations. Not just in terms of % gains, but in understanding your drawdown periods too. So in summary both are completely related. You give me a trader that's really struggling with his trading mindset and fear and within a month they won't be feeling the same way. Likewise, if give me a trader who is calm and in tune with his system and emotions, we'll quickly change this by getting him to trade randomly! No trading psychology means no trading strategy, No trading strategy means no trading psychology. These two elements are so intertwined. Thanks for looking at my idea. Darren 👍
Education
by pow_removetheguesswork
2
The reason you are not successful...Hello traders, All the below are based on my preferences, I don't give any financial recommendations and I have nothing to sell you with this article. I'm sharing content because I see a lot of traders being/becoming broke and I don't want you to be one of them. Yesterday, I posted an article about how to NOT overtrade when you're emotions are running high: Now, I'd like to flip the other side of that coin showing how "overtrading" can be beneficial for beginners to achieve their desired outcome. 🧵 I - Alex Hormozi I discovered this OUTCOME equation thanks to Alex Hormozi on Youtube. He helped me defining clearly with words how to get to the outcome I want. Props to him for being such a wonderful business/sales/marketing/thinker. II - The OUTCOME equation The equation is defined as: VOLUME x SKILL x TIME = OUTCOME VOLUME = number of repetitions SKILL = quality of each repetition TIME = total duration of practicing those repetitions Based in foundational principales The more we do.... the better we get The better we get.... the more we do The longer we do it....the better we get The better we get....the longer we do it The longer we do it...the more what we did compounds on itself (profit, reducing losses, etc) In this way, each of the three feed the others, but it all starts with doing . It's a virtuous wonderful cycle: imgur.com It works for any skill you want to acquire but let's focus on trading for now. After years of trading, any of my trade has a higher quality than my trades from my early days. Why? Because I spent an enormous amount of time trading intraday first with a demo account, and then with a live account trading with micro-lots/micro-pips. Once I got profitable CONSISTENTLY for a few weeks, I allowed myself to increase my lot size slightly. I repeated this cycle made of mini weekly cycles for more than 5 years until I'll reach a capital allowing me to trade the indices futures. III - Why 97% of traders fail at trading The majority of traders lose due to a lack of experience which can only come with taking a lot of trades during an extended period of time. There is no other way.... Forget about getting rich quickly, forget about your 100% automated bots - if such wonders existed, no one in their right mind would sell them and they'd invest everything they and their family own in those magical cashflow generating machines instead... New traders think only a few weeks of practicing is required to learn about themselves and about the markets. Your favorite influencers won't tell you this: trading is very hard, most lose all their money, lose their family, lose their home, lose themselves in the process. The only hedge you have is your WORK.... you can't cheat the GAME.... you have to take a lot of trades for an extended period of time..... And then, at some point, you'll be able to capture more opportunity per trade, to lose less whenever your Stop Loss is hit, to not get frustrated when the price is leaving without you All those skills cannot be acquired in weeks .... One cannot develop character traits required to be a good trader in a short timeframe - talking about patience, discipline and motivated. Motivated too because it's hard to keep one's dopamine level high after some consecutive days of losing Don't cheat the game, it's impossible If you're not profitable yet, forget about leverage please please please please. How many times do you have to get margin called to understand that leverage wasn't invented for you to make money but to depart from it faster. IV - True Effort When learning a new skill at the beginning, everyone sucks. I certainly sucked at it and you will too. THAT IS FINE, THIS IS OKAY, THERE IS NOTHING WRONG How could you not expect to suck at a skill you don't know yet. What I'm saying is unpleasant because everyone wants to get rich quick (me included) My only guarantee to YOU guys is that if you can afford to follow this process with a decent trading strategy and stay consistent, your gains are going to be tiny at the beginning and then PARABOLIC after some time. As the desired OUTCOME is to become richer and/or live off your trading again, this is the ONLY way It's IMPOSSIBLE to suck at trading after taking thousands and thousands of trades. As it's impossible to suck at anything after months and months of constant practice and effort. And you can learn with a DEMO account (risk-free) or with betting pennies per every trade using CFDs or other similar product. If you want to learn how to play piano, if you follow some tutorials on Youtube every day and practice 2-3 hours a day for years, I guarantee you that you'll have an excellent playing level. Stop being lazy, stop cheating the game, stop searching for the way to get rich quick. Accept the magic pill doesn't exist BUT another way that no one is doing will allow you be DIRECTIONALLY RIGHT and eventually reaching your desired OUTCOME. Conclusion I wanted to post this content because this outcome equation is dear to my heart and changed my life for the better I'm literally kicking ass because I outworked everyone I know And now that I'm more skilled than them, I can put off my foot from the accelerator working less than them, making more $$ than them Thank you for reading by dear followers PS To all those in the comments about to tell me they have a magical bot printing $$ for them and their community, I invite you to show me your track records and bank account statements and any proof I could believe you didn't use photoshop on to sugarcoat what the reality is...
Education
by Daveatt
44
Candlestick Analysis - A Classic Way Of Using Candlesticks An overview of Candlesticks A candle represents the changes in price over an interval of time, such as 1 day or 1 minute. The main body of the candle illustrates the opening price at the start of the time interval and the price when the market closed at the end of the interval. The head and tail represent the highest and lowest prices during the interval. If the price closed at a price above the opening price, then the candle is referred to as a 'bullish' candle and if the price closed below the opening price, then the candle is referred to as a 'bearish' candle. The length of the shadows shows how much the price has moved up and down with respect to a candlestick within a specific duration. The size of the candlestick body shows the difference between the opening and closing price and it tells us a lot about the strength of buyers or sellers. Below, the most important characteristics of the analysis of the candlestick body are listed. A long candlestick body, that leads to quickly rising prices, indicates more buying interest and a strong price move. If the size of the candlestick bodies increases over a period, then the price trend accelerates and a trend is intensified. When the size of the bodies shrinks, this can mean that a prevailing trend comes to an end, owing to an increasingly balanced strength ratio between the buyers and the sellers. Candlestick bodies that remain constant confirm a stable trend. If the market suddenly shifts from long rising candlesticks to long falling candlesticks, it indicates a sudden change in trend and highlights strong market forces.
OANDA:XAUUSDEducation
by TopTradingSignals
9
The 12 Days of Effective Trading Learning Hey traders, In this article, we gathered for you 1 2-days intensive trading learning marathon. We hope that it will help. 1 Day: Practice placing support and resistance lines. 2 Day: Perfect placing trend lines. 3 Day: Study candlestick patterns. 4 Day: Review chart patterns. 5 Day: Practice placing fibonacci retracements. 6 Day: Learn about moving average. 7 Day: Master market structure. 8 Day: Watch videos on momentum oscillators. 9 Day: Learn about divergence. 10 Day: Study risk managment. 11 Day: Review fundamental literature. 12 Day: Create a trading plan. Let us know if such a marathon helped you in your journey.
OANDA:XAUUSDEducation
by UnitedSignals
9
How to stop overtrading and get rid of your trading addictionHello traders, All the below are based on my preferences, I don't give any financial recommendations and I have nothing to sell you with this article. I'm sharing content because I see a lot of traders being/becoming broke and I don't want you to be one of them. Here's how to stop overtrading and get rid of your trading addiction:🧵 I - Define a set of rules The first key to stop overtrading is establishing a set of rules Create a set of rules so you know when you SHOULD stop over-trading. It can be based on $ gain/loss or just the amount of trades taken. Either way, there needs to be a written list you can follow. For example, let's say I want to make X dollars per month with equates to X/20 (give or take) dollars to make in average per trading day. Once for a given day I've reached that goal, I'm stopping myself from trading more. Why? Who here kept trading after making a decent amount of money and ended up losing all the gains? The reason being, we're humans and not naturally wired to trade. After making some money, we all tend to become greedy, taking more risks, also not seeing obvious signs we usually see when we're focused. II - Find a hobby The second key is having a hobby. Something you can do once you've stopped trading It could be... - Working out (I'm working out twice a day for health benefits but also to meditate and to stop thinking about my trades) Of course, as an intraday trader, I'm going to workout whenever with 0 opened intraday trade When I'm invested in SWING trading, I'm taking trades with big enough timeframes so that it's totally fine if I'm not checking the charts for multiple hours in a row - Doing chores Could also be cooking for yourself or your family - Talking to a friend Trading is a passion and if you're passionate about it, your friends will likely want to hear your thoughts about the markets, the trades Of course, don't give them any financial advice :) You don't want to be in a position of recommending or not recommending an action as they may blame you for their losses. Stay neutral, only share what you're doing and why you love doing it - Writing Writing or Journaling helps me clearing As long as you have SOMETHING you can do everyday after trading It should help you out Mine is after 3 consecutive intraday losses, I stop for the session (morning or afternoon) and head to working out, walking, doing anything else other than trading III - Find a buddy I would also suggest getting a trading buddy A trading buddy is simply another trader (or non-trader) that you can talk to throughout the trading day I'm trading with my father and a community of traders, we're talking often, exchanging ideas on whether a setup looks great or not. Not to talk about trades, but more as a mental coach Someone who you can text when you're feeling emotional. And they will tell you to get off the computer. Sometimes we just need to hear it from someone else to actually execute IV - Turn off your computer Lastly, I would recommend turning off the screens. Like literally shutting your computer/monitor off and walking away. You need to PHYSICALLY set yourself apart from the trading scene. Doing this will allow your brain to think about doing something else, rather than trading. Conclusion To summarise: - Have a set of trading rules - Have a hobby - Find a trading buddy - Physically constrain yourself to stop trading after your daily gains or losses have been reached
Education
by Daveatt
137
Probability Is The Name Of The GameHaving a probabilistic mind and approach to trading is one of the hardest skills to master. It goes against our human nature. We're used to having to know what must (or will) happen in any environment to get the outcome we want. If we don't get it, we're able to force new ways to create the results wanted, and usually, we succeed in doing that. To a point where we can replicate the same method used over and over again to succeed in that particular thing. But in trading, that's not possible. We could trade the same strategy that had proved to be profitable for 10 years but still lose money. Which is so damn painful. But for professional traders (like me) it isn't. Because we understand that every trader influences the market price. Every trader's buy and sell order forms a candle pattern on the chart that starts or ends a trend. For example, if 5 traders take sell trades in a downtrend, and 10 traders take buy trades in that trend, a bullish candle pattern usually shows up. It may signal a short pullback before the continuation of the trend or the end of it. We see these as lower lows and lower highs. Being aware of those price movements allows a trader to adapt to market changes. But that's only possible with a probabilistic mind. You can start building it by always looking for "what if scenarios" or "IF and Then scenarios." When analyzing the charts, look for 2-3 different ways that the price will use to tell you when to enter and not. Understand how the bulls and bears will behave; not one of them. Then when planning for the trade, write an IF and Then statement that will tell you what to do. For example, if you're looking for a buy trade at a support level, you write: IF the price bounces off the support level with a bullish engulfing candle pattern, THEN I should buy. You can apply the same strategy in situations where you want to tell yourself to sit on your hands. Once you start applying the IF and THEN strategies, your trading performance will improve. You'll engage with uncertainty flawlessly. Your equity curve will turn from trending down to rallying to the moon. And you'll be much happier and more grateful for being a trader.
Education
by Doji-2k1
The Psychology of The Market Cycle Explained The market cycles can be explained from the psychology side of the average investor. Throughout the various stages that develop in the market, the investor's emotions are also cyclical according to the "mood" of the market. Market movements are explained by the investor when often hope and fear motivate his thoughts and actions and can predict his future actions. Throughout the various stages that develop in the market, the investor's emotions are also cyclical according to the "mood" of the market. The range of emotions ranges from despair to euphoria, and investors usually drive the wrong actions. Awareness of the psychological side of the masses helps to avoid the effects of negative or positive sentiment and remain feckless on the market. In addition, we can also identify a stage or strengthen our position on the state of the market, explaining investors' feelings. Once you understand this chart, you can control your emotions and deal without your hurt and with only your mind. As this market cycle chart is repeating all the time, if you understand where you are located in the graph at any moment, you can take a cold decision of buy or sell a particular asset to maximize gains.
OANDA:XAUUSDEducation
by TopTradingSignals
3