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Trading Psychology

Becoming A Flexible TraderTo become a flexible Trader might sounds like an easy thing to do, but to become a consistently profitable Trader in the market takes lots of internal growth. In this video I'll be sharing some of my personal experiences and advice into becoming all-rounded 'good ' Trader. If you like the content make sure you click the like button and share it with anyone else who needs to watch this. Trade safe and take care. All the content I've posted are for educational purposes, please perform your own research and only take it as a reference.
OANDA:XAUUSDEducation
by TraderNeoh
7 Pains In Trading & How To Overcome Them 😈 Trading is not all fun and games. We do not make money every day and certainly not on every trade. It is not like other careers or jobs where you work and then get paid. Our pursuit is more like the life of an entrepreneur. Our idea may work or it may not. The stock we just bought may take off or it may fall. After many years of hard work we may have enough capital to pay off our house or lose $50,000 of our hard earned money. We may become a millionaire in a runaway bull market or waste five years of hard work with nothing to show for it. Here are 7 painful aspects of trading and what to do about them. The pain of losing money. Trade smaller so it is not painful, it is just an outcome. The pain of being wrong about a trade you were sure about You lost simply because the market was not conducive to your trading methodology, trend followers lose money in choppy markets, swing traders lose money in trending markets, it’s the market not you. The pain of a draw down in capital Even the world’s best money managers do not continually hit all time equity highs. Your path may look like this $10,000 to $20,000 to $15,000 to $25,000 to $20,000 to $30,000. Mine was rockier than most, and after blood, sweat and tears I am now able to trade with some size. Consecutive trading losses hurt. They make you doubt yourself, your method, and your system You need to remember your winning trades, your winning years, or your back-testing, or paper trading of the method. The pain of of admitting you were wrong Cut your loss and move on to the next trade, trade reality not your ego. You are following a guru and come to realize he truly is a salesman not a trader You stop following gurus and look to learn how to trade you yourself. You start trading a system that did amazing in back-testing and promptly lose -20% of your account You have to stick with it so it can win in the long term, you may need to make slight adjustments in position sizing or stops to account for volatility that you may have missed. Whatever the pain, just don’t quit, there is gold to be found in trading right over the long term. 😎 Thank To Steve Burns.
NYSE:BAEducation
by Zestiria
5
Learned helplessness in tradingBINANCE:BTCUSDT A classic situation for a trader is the fear of opening a position, dictated by the negative previous experience in an identical situation. How usually manifested after a series of failures (losing streak) and leads to ignoring further trading setups. Let's look at this case in more detail. The material will consist of three components: The biological component describes the possible mechanisms of the brain in the field of decision making, touching on the cognitive error described above. This cluster is of no practical use in the context direct solutions to the problem, but brings the understanding that not all mental processes can be felt at the objective level perception, but can latently contribute their own changes in behaviour patterns. And the psychological component describes the mechanisms problem in terms of psychology person. The release of adrenaline does not necessarily lead to reaction, according to the strength of the corresponding reaction “beat or run", but to some extent capable induce a general mobilization of organs and systems. This is manifested in an increase in heart rate and respiratory rate, dilated pupils and other reactions directed to fight stress. Similar episodes of stress are also recorded by the cortex hemispheres and hippocampus with the formation associations. In the future, these associations will intensify, if negative outcomes prevail over positive. Association cortex conditionally "compares" the number of positive behavioral patterns and positive emotions with quantity negative, preferring to slow down the launch behavior that led to stress. Learned helplessness is a state in which an individual does not attempts to improve his condition, although he has such an opportunity. The key factor causing this condition is imaginary inability to influence the situation, and lack of connection between actions and results. However, if the negative situation is repeated repeatedly, there is a feeling that there will be more only worse. To begin with, it is very important to understand that there is no magic a method that will restore confidence in one's own actions. One way or another, you have to do it on one's own. Psychology cannot solve your problems instead of you. It can only point out some points that worth considering in order to form the correct an approach to accept negative situations and help find a way to solution to this problem. So, what to do if it works for you psychological "feet" before making important decisions based on the previous negative experience? Here are some practical tips. Catch yourself by the hand every time thoughts visit about failures that are not related to a specific situation, but projected from the past. The brain accumulates sums up negative experiences, which is common cognitive error. Although due to feelings of learned helplessness in humans and may give the impression that his chances of success after a series of failures, much lower than it really is, In practice, they are not at all diminished by the fact that was earlier. Your chances of success in this particular moment are always static and depend only on the cold mind and clear calculation. While this may not be easy, it is necessary get rid of emotions and conduct a substantive assessment their results. At what point was your result positive and why was it so? And in what moments your result was negative and,Of course, just try to find out. Probably, if you analyze your failures, you can visually observe that between your failures there was no relationship, but the fact that they went in a row, or the fact that lately there are too many of them - not more than a coincidence. If you determine that the reason for your failures was specific (impulsive decisions/exceeding risks/ignoring your own rules), you you can learn from this experience and, in the future, avoid repetition of such situations. No matter how banal and paradoxical this may seem advice, but it really works in practice. Our the brain is designed in such a way that when we give in to problems, we lose faith in ourselves and our own success. This does not mean that one should act recklessly. However, if you objectively assess the situation and decide that acting now is a good option which fits within the framework of the strategy, do not ignore such possibility. In case of failure, you will gain experience, and afraid to try, you will only start stronger believe in your own helplessness. The problem is sometimes not the situation, but the loss of will and belief in the significance of their actions. The “act when you decide to act" allows you to save or regain a subjective sense of control over situation. If accumulated failures have undermined your faith in success, false beliefs about their abilities. Since it didn't work out before, will succeed in the future. In time, man pays more attention to the experience that confirms this assertion. It only focuses on negative results, ignoring exceptions when he did it all. These fears of failure kill future success. Due to the formed negative thinking patterns in the human imagination is drawn only sad turn of events. In such situations it is important to find special cases of your own success in past. If you lack self-confidence, remember when did you get it right? Think about these sensations. It is necessary to learn to see alternatives, positive developments that form a new self-image opportunity to influence what happens in positive key. In the end, I would like to say that failures happen with absolutely everyone. And it's up to us how we We respond to them and deal with them. Do you lose confidence in yourself and your abilities? or accept failure, analyze, learn from it experience and continue to work, developing on professional field, looking forward to the future success? 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"!
Education
by Crypto4light
Quick coin analysis before buyingBINANCE:BTCUSDT How to evaluate the tokenomics of the project? Below you will find the main questions that you need to ask yourself when analyzing the tokenomics of the project - this scheme will not predict the price of the token with an accuracy of a cent, but it will help to predict the dynamics and assess the prospects. 1. Supply Main question: based on supply alone, will the token be able to maintain/increase the price, or will it be eroded by inflation? General supply — How many tokens exist today? How many will there be in the future? Is there a supply limit? Emission rates Is the emission rate fixed or changing? — If it changes, what factors determine it? Allocations/vesting — How was supply originally distributed among investors, community, team? Are there any groups that own a significant share of the supply and could exert significant selling pressure after vesting ends? — What is the vesting schedule for the largest holders? 2. Demand Main question: why would anyone hold this token? ROI - Without taking into account the price increase, what income does a simple hold of a token bring (for example, due to staking)? — Is it possible to get additional profit through farming? — Are protocol revenues distributed among token holders? — Is there a rebase* as inflation progresses? * A rebase is similar to a stock split, when holding or staking a token allows the owner to increase its amount, thereby compensating for the impact of inflation (for example, a mechanism when the share of ownership of a supply remains unchanged). Community How active are Discord and Twitter of the project? — Is there an ecosystem fund? Grants? Hackathons? — How actively is the protocol working on community involvement? — Are there one-time or ongoing initiatives to create additional demand for the token? — Is there a token blocking program? If yes, how many awards are allocated to it and what are the requirements for receiving these awards? — What share of the total number of tokens in circulation is locked? — What additional selling pressure will arise after the expiration of locks? Are there non-monetary benefits from staking and locking tokens (e.g. increased voting power)? It is worth noting that even taking into account all these factors does not in itself guarantee the growth of the token or the success of the project, but is only one of the necessary aspects, in addition to the market phase, hype around a particular direction, and others. 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"!
Education
by Crypto4light
Never Try To Hide Your Mistakes By Making More MistakesOne of the common patterns amongst Traders that's really causing them to unable to achieve consistency, is the fact that they do not own up/ admit their mistakes. We're all humans, and we're bound to make errors every day, week, or month. There's nothing wrong with making mistakes, and certainly making mistakes don't make you look stupid. It is the way that you refuse to admit that you've made mistakes that makes you look stupid. Imagine today you've taken trades you're not supposed to take. During your self-reflection, you clearly knew you've over-traded, but you try to comfort yourself by putting the blame onto the markets, "the market condition was bad today, etc...". Look.. Now you've made two mistakes. 1. Over-traded 2. Not being honest to yourself that you over-traded Lying to yourself is one of the worst lies you can ever make. Overtime, It transforms and convinces you into accepting lies because it'd probably turned into a bad habit. It prevents you from growth, advance, and achieve. Some of you probably have experienced lying to others. Ask yourself honestly, how many lies do you have to make up afterwards JUST TO cover up the first lie? It's the same goes to yourself, your mind. The willingness to have complete transparency within your mind will boost your personal growth. Sometimes, if you're experiencing some horrible trading days or months, make it a habit of sharing your mistakes with someone else. Trust me, the more you're willing to own up your errors, the better you perform. Because now that you knew your problems, then you can always find solutions around it, if not, seek for help!
OANDA:XAUUSDEducation
by TraderNeoh
2
"Stop it, Picasso! Trading should be kept simple."Quick question: which of the two illustrations portrayed on the graph do you enjoy more? If your preference is the one on the right, then you should have definitely continued the legacy of the Renaissance era artists. On the contrary, if you prefer the one on the left-hand side of the screen, let’s become friends. Starting with the portrait (let’s put it that way) on the left, we can observe how everyhting is illustrated in a crystal clear way. Firstly, no indicators have been used, which makes it easier for us to read the chart. Second, it has been shown that with as few as 2-3 confluences, a trade has been executed. On the opposite side of the road, we have the portrait which is depicted on the right side of the screen. We can see how blurry, messed up and confusing it all looks. Two random EMA’s crossing each other, ABCD patterns, Elliott Waves, tens of thousands of Fibonacci retracement levels, random Support&Resistance levels and many other indicators have been added into the chart with zero purpose. Yes, indicators could and should be used as confluences. However, by adding tens of indicators into your charts, you are not beating the market. Just like in real life, everything should be utilised in moderation. The purpose of this idea is not trying to damage the reputation of indicator trading, but to show that pure price action will always be the king. Many beginning traders get tricked into believing that by adding multiple indicators into their charts, they will have a high win rate, a successful trading journey, long-term profitability. Little do they know that many indicators contradict to each other and perplex novices into entering random positions. Of course, as we always say, if it works for you, then go for it. Chart analysis is only a part of your trading plan. There is also psychology, risk management, discipline and so forth.
BITSTAMP:BTCUSDEducation
by Investroy
47
Self-Reflection Is The Key To GrowthHi Traders, in the previous mindset sharing I talked about the simple equation that has helped me to progress faster "Pain + Reflection = Process" But you could be thinking "How do i reflect?" OR "I do reflect a lot, but I don't see myself going anywhere." I believe it all comes down to the way you perform your self-reflection & self-reviewing process. If you're not digging into the root of problems, you'll never get rid of it. Let's assume today you've taken 5 trades. Now the market has closed, you're performing your daily reflection. First thing first, is to write down a list of what you think you've done right, and what you've done wrong. Maybe your entry was perfect, but you did not manage the trade well, whether you size in too big/ aggressively or you did not manage your exits well. Be very real to yourself when you're doing your self-reflection, do not try to hide things or blame things just because it makes you feel good. I've seen quite some numbers of Traders not admitting their own mistakes, trying to put the blame to the market or any external factors. Being true to yourself is the first step to changes, if you can't even be honest to yourself, there's no way you can improve. After you've written down the list, now question yourself: "Is there anything that could be improved?" OR "Is there anything that I could eliminate because they're impeding your overall performance?" Most of the times, Traders are not achieving consistency mainly because of the ONE mistake that they've been repeating, and it turned into a habit. After you've performed your self-reflection, make sure you write down your conclusion and make sure you do not repeat the same mistakes again tomorrow. One step at a time, repeat this process every day.
OANDA:XAUUSDEducation
by TraderNeoh
2
Trading Sessions in Forex | Trading Basics 🕰🌎 Hey traders, In this post, we will discuss trading sessions in Forex. Let's start with the definition: Trading session is daytime trading hours in a certain location. The opening and closing hours match with business hours. For that reason, trading hours are varying in different countries because of contrasting timezones. ❗️Please, note that different markets may have different trading hours. Also, some markets have pre-market and after-hours trading sessions. In this post, we are discussing only forex trading hours. The forex market opens on Sunday at 21:00 GMT and closes on Friday at 21:00 pm GMT. There are 4 main trading sessions in Forex: 🇦🇺 Australian (Sydney) Session Opens at 21:00 GMT and closes at 06:00 GMT 🇯🇵 Asian (Tokyo) Session Opens at 12:00 GMT and closes at 9:00 GMT. 🇬🇧 UK (London) Session Opens at 7:00 GMT and closes at 16:00 GMT. 🇺🇸 US (New York) Session Opens at 12:00 GMT and closes at 21:00 GMT. Asian trading session is usually categorized by low trading volumes while UK and US sessions are categorized by high trading volumes. Personally, I trade the entire UK session and US opening and usually skip Australian and Asian sessions. What trading sessions do you trade? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
2
Pain + Reflection = ProgressHi Traders, welcome back to another mindset sharing video. Whenever I go through some obstacles or failures, I always go back to this simple equation by Ray Dalio, "Pain + Reflection = Progress" In life, the only way to not experience any failures is to avoid them, which could be very detrimental to your personal growth. To grow, one need to experience certain levels of pain. To transform, one need to have a high pain threshold and tolerance. For whatever you're going through right now, just remind yourself to not give up, and things will eventually come.
OANDA:XAUUSDEducation
by TraderNeoh
18
EXIT STRATEGIES: Money ManagementHey traders, Today I wanted to dive into exit strategies. A lot of you will already have a very clear understanding of what an exit strategy is and how you usually go about it. Most of you are probably automatically thinking of stop losses and take profits, which is fair enough. Today however, I wanted to dive into some more advanced techniques. I want to have a look at what you need to be thinking about prior to entering a trade, during the trade, and then finally when it's time to get out. Yes, we use stop losses. Yes, we use take profits. But I know from my experience personally, it's very rare that I actually get my full stop loss hit. I'm usually out of the position prior to those levels. This all falls under money management, which is by far the most important aspect of your trading ability that you need to understand. We are money managers as traders. When we are risk on, we have money live in the markets. It is our job to manage it accordingly. Win or lose, the success comes down to if we are managing position and risk correctly. Now, this blog is a little bit more directed to our day traders or people who are constantly having positions with the whole idea of set stop losses and take profits. For investors, it does differ a little bit and I'll touch on that now. When it comes to buying a stuck or an asset, it is very easy come up with a trade idea. You find the idea, you buy, simple. What makes it really difficult is actually finding the appropriate time to sell. That's what actually makes the good investors. Because equity, yes, it is still extra cash in your pocket, but you don't get that cash actually in your pocket until you have hit that sold button and realized your profits. My biggest outlay to anyone in any type of investing is have an exit plan prior to entry. Have a minimum requirement, have a maximum requirement, and what to do in those scenarios. I've seen it many many times before, especially with the recent cryptocurrency boom that people just get in expecting it to go up with no exit strategy, so they never exit because it's constantly moving up. Then, Unsurprisingly, the market pulls it back in and they lose all of their equity profit. They find themselves trying to close out of their position before it's a big loss. Always have an exit plan. Now lets dive back into more of the day trading market. When it comes down to exits of the market. Most people use stop loss orders or take profit orders. These are orders you can set on your brokerage platform, which essentially, when that asset reaches a certain price, the server will read that and automatically pull your position at your requested price. These are the most common ways to manage risk. It's a very beginner friendly. It's very easy to find an area where to put your stop loss, put your stop loss, put your take profit, walk away and let the trade unfold. However, today, let's get a little bit more advanced. There are a few questions you need to ask yourself prior to entering a position. Regardless of looking at the profit potential (which is the biggest pull). Start associating yourself with the risk you are taking in order to open this position. The first question I want you to ask yourself is, how much are you willing to risk on this trade? Risk is an important factor when investing right to determine your risk level. You need to understand what is not going to affect or hurt you, but still generate enough profits to make it worthwhile in your eyes. Finding that medium balance of what you can handle when you go and drawdowns is going to be highly beneficial to risk the right amount and not go emotionally insane every time you're in a position. Once you understand what dollar value you're willing to risk, then you just position size accordingly and have a stop loss on your chart and there you will know your maximum risk. That is what you are going to lose if all goes against you on this position. Once you have the basic understanding of how much you're risking per position, you want to try and avoid hitting that stop loss at all costs. So while you're managing your position (this is something I like to do personally) if everything is going against you, it's usually a sign that it's going to continue that way. Yes, statistically, there's going to be sometimes it may be reverses. That's the beauty in backtesting your strategy so you have an in-depth understanding on what it is capable of. I look to start scaling out of my position, which means selling off my position size as we move towards the stop loss. As I mentioned above, it's very rare that I actually hit my Max loss stop loss statistically. Looking back at my journal, I've actually scaled more than 75% of my position out prior to hitting a full stop loss if not all of the position. This is giving me an incredible advantage when it comes down to statistics, because while I can still hit a full take profit and a full position in profits. But I am not hitting a full loss, so my risk to reward has actually rapidly increased, even though it's still very similar when I'm entering the trade. The second question I want you to ask yourself is, where do you want to get out? Where is your take profit? Where is your stop loss? But also look within those areas where realistically are key indications on where this price is going to move. Do you have to get through four or five support levels to reach your take profit? Should you start looking at scaling out some of the position in the profits around those levels? The more you have to go through, the harder it is going to be to actually achieve the profit. Have an exit plan. Where are the levels you want out? And finally, and this is probably the biggest one, how long you are planning on being in the trade? If you're trading down on the five minute chart, do you really want to hold this trade for two days? If it takes that long, do you only want to be trading during this market hours? Where do you want to cut this trade? This is really important because most people, especially the set and forget traders, they don't have a time limit on their trades. They allow it to just run over multiple sessions. But The thing is, the longer it runs, the less than analysis becomes true. Have a look at the time frame you're trading. If you're investing, look at the yearly outlook. How long do you really want to be holding this stock before it actually does something? I know we're not options traders. Some of you, maybe, but it is a good idea to have kind of a time scheme that you don't want to be holding any longer than. I personally look to start scaling out of the position, taking risk off the longer the trade takes, especially if I'm trying to trade on volatility. These are three questions to ask yourself and a little bit of tips and tricks when it comes down to scaling an managing risk on a more advanced level. Remember, as traders and investors, we are risk managers. We are money management specialists. Our job is to not lose money. When we stop losing money, profits will come in. Focus on your risk, focus on what you can afford to lose, and then focus on your positions and try and stop yourself from ever hitting that Max stop loss that you give yourself. I wish you all success! -Jordon Mellor
Education
by the5erstrading
8
Technical Analysis Vocabulary!!!BINANCE:CRVUSDTPERP Hello guys these are some of the trading terms/concepts I apply when trading; 1. BOS : Break of Structure - when price continues to break previous structure and at the same time continues the current trend. A line drawn from recent structure to the current breakout denotes the BOS. 2. CHoCH : Change of Character - when price changes its trend. A line drawn from the last high (for downtrends) or low (for uptrends) of the previous trend all the way to current price action identifies the CHoCH. 3. Liquidity : The buildup of stop orders residing on a trendline of equal highs, lows, trends, or wicks. This is money that can be taken out. 4. Bullish Order Block/Supply Zone : An area of the market where price fell from - highlighting the last bullish candle before the drop in price. 5. Bearish Order Block/Demand Zone : An area of the market where price rose from - highlighting the last bearish candle before the rise in price. 6. Consolidation : An area of the market where prices were oscillating in a corridor - highlighting indecisiveness in the market for that period of time. - Joel. Please like and follow to get more ideas/tutorials like this, I'd also love to know what you think about my idea😃.
Education
by Jo3elll
2
This is why patient traders are profitable and consistent"Cut the losers only, let the winners run". One of the quotes that are pretty popular among beginning and experienced traders. Sounds pretty simple, but let's take a look at it in practice. On the left-hand side, we have illustrated the recent trading history of a patient trader, and on the right side, that of an impatient one. Taking a close look at the recent trades of the patient trader, we can observe that he has a solid trading plan, rock-solid psychology and discipline, and a very good risk management plan. Out of 5 trades, he has only won 3 of them. But due to the fact that he risks only 1% of his trading capital per trade and sets realistically-positive Take Profit levels that vary depending on the market, he makes really appetising returns. On the contrary, the impatient trader has everything to fail. If we take a look at the recent trade history, we can notice that this trader neither has a well-defined risk management strategy nor any discipline or patience (well, the name says it all). There is a common misconception in the world of trading that states: "the higher your win rate is, the more profitable you will be in the markets". This statement is absurd and totally incorrect. No matter how high your win rate is, if you are not risk tolerant and you put all of your eggs in the same basket, you will be far away from reaching the doors of consistency and profitability. To add, patience and a strong psychology are heavily linked and cannot exist without each other. Hence, once you teach your mental state the importance of the ability of sitting on your hands and waiting, your trading journey will head towards the correct direction. Enjoy the read! Investroy.
BITSTAMP:BTCUSDEducation
by Investroy
29
Mastering Psychology In Trading. 🤠Mastering your emotions and ego are an essential part of profitable trading as the trader is the weakest part of any trading system. The three things needed for profitable trading is a quantified system with an edge, proper risk management for implementing that system, and the right trading psychology for executing the system with discipline and perseverance consistently. Why is psychology so important in trading? Without self control and discipline no trading system will work over the long term as emotions and ego will cause the trader to trade too big, over trade, or abandon the strategy altogether during a losing streak. Trading systems are easier to create and backtest than they are to execute with real money during open market hours as losses and wins can create issues with fear and greed. Trading mindset The proper thinking pattern for traders is similar to a business owner thinking in terms of executing systems not becoming personally moved emotionally by outcomes of trades. Each trade should be a business transaction inside the parameters of a system not a an attempt to prove you are right about an opinion or prediction about an unknowable future. A trader should know the expectancy of their system and what losing streaks and drawdowns to expect with realistic expectations not trying to get rich quick. Managing trading emotions The quickest and most simple way to manage emotions for a trader is to trade a position size that doesn’t effect their ability to execute their trading plan without emotions becoming too loud and stress being too high. A trade should be both meaningful but manageable. If proper position size is right and losses are managed then each trade should only be one of the next 100 and not create a disproportionate need to be right. Managing ego in trading A trader needs faith in the positive expectancy of their trading system and faith in their self to execute it with discipline. They should not have faith in any individual trade outcome as many of them can be random in nature in the short term. A trading edge comes primarily from minimizing losses and maximizing gains not being right every time. A trader should be open to the fact that anything can happen at any time and go with the flow of the price action not try to prove anything about your own ability to predict or be right on every trade. The only goal should be profitable trading. Source Steve Burns.
Education
by Zestiria
7
Does Trading More = More Profits?Seems like most of the Traders think that by trading more = more profits. The answer to this can be two-dimensional. Yes, theoretically the more you trade means you could make more money. If we simply do the math, day trader should be making more than swing trader/ long-term investor right? But why the failure rate of short-term Trader is much higher than swing Trader & long-term value investors? The key element here is emotions. Let me share some examples here: • Trader A is a swing Trader. On average he takes about maximum 5-10 positions per month • Trader B is a day Trader. On average he takes about 5-10 positions per day In this case, let's put performance asides, but who do you think will have less emotions involved in their decision making process? Definitely Trader A. When you're taking less trades, means each time before you get involved in any position, you spend more time on your planning process, you are aiming for quality rather than quantity. When you have more involvement in the market, you have a higher probability of over-trading, over-thinking, and over-reacting. I'm not here trying to blast daytrading isn't profitable, it is in fact profitable. But most retail Traders take large numbers of unnecessary trades which elevate their risks, causing them not able to achieve profitability over the long-run. When you lose a trade, you have a tendency of revenge trading. The more trades you lose, your irrational thoughts creates hope and ego, believing that you cannot be wrong. The devil behind all these bad trading habits is purely illusion, the illusion of "This is going to be the best trade" OR "What if i don't take this and it turns out to be a winning trade?" CEOs', Hedge Fund Manager, etc... They are all paid generously to make a small quantity of quality decisions, not to take large numbers of poor decisions. The same goes to trading, market will reward Traders who understand Risk Control and Trade Management. The lesson here is to never rely on luck & hope in your trading. Instead, put more focus on your discipline and planning process. The more you are able to disregard the market noises, the better you perform.
OANDA:XAUUSDEducation
by TraderNeoh
2
10 things every trader should knowBINANCE:BTCUSDT 1. There is no general approach to trading. Most traders believe that there is a formula that can be used to predict market fluctuations. But in reality, not only is there no such formula, but it is not even possible to develop a general model of markets, since patterns are constantly changing. There are numerous styles and approaches (which sometimes contradict each other) used by traders, perfectly demonstrate the huge opportunities that stock trading provides. That is, there are a large number of ways to become a successful trader. But in order to find your way, you need to work hard. 2. Look for the style of trading that best suits your preferences. Each trader for successful trading must develop his own method that will correspond to his ideas about the market. A trading approach that is profitable for one trader can lead to losses for another trader if he does not adapt the method to his abilities and ideas. As O'Shea said: "If I try to teach you what I know myself, you will fail, because you are not me." Failure can befall a trader even if he stands behind a successful trader and closely observes everything he does. Such training will allow you to adopt some good habits, but no more. Indeed, in the future there will be many moments when the second trader will want to do something completely different than the first trader. This does not mean that trading one may be less successful than trading the other, but they will certainly operate differently. A trader for successful trading needs to learn to be himself. 3. Trading should not make you feel uncomfortable. In the event that the open trading position is very large, traders often exit trades during minor corrections in which they could make a significant profit. This happens because of the fear that prevails over the mind. This means that the size of positions must be reduced until fear no longer prevails over reason. Even if the market is moving in the right direction, using only a fraction of your capital to trade may end up being more profitable than if you were to invest all of your capital. 4. A good trader must adapt quickly. If trading were so simple that a trader could find one pattern and exploit it for a living, then everyone would be successful. But life is much more complicated: markets change all the time, and a pattern that was profitable can suddenly stop working. This is what a good trader should always be ready for: even the most reliable approach can stop making a profit and start bringing continuous losses. 5. Don't confuse winning/losing trades with good/bad trades. The thing is, there are good trades that make losses and bad trades that make profits. After all, the most wonderful and profitable trading strategy has a certain percentage of losing trades, but this does not make it bad. It is impossible to understand in advance whether a transaction will bring a loss or profit. But if trades are made in accordance with a trading system that has a positive mathematical expectation, then they will be good and correct, regardless of the amount of profit or loss. This is explained by the fact that trading with a positive mathematical expectation makes a profit over a long period of time. If transactions are made randomly, then regardless of the amount of profit or loss, they will be bad, because over a long period of time they are guaranteed to bring a loss to the trader. 6. Focus on methods that work and spend less time on methods that don't work. This advice from Clark is very commonplace, but many traders do not follow it. Very often you can find cases when a trader manages to find a successful trading style, but he gets bored and begins to make extraneous transactions, not quite understanding what he is doing. As a result, the overall performance decreases. In order to make a profit, a trader must focus on what he is good at and concentrate on those trades. 7. On the way to success, you need to make a lot of mistakes. Dalio argues that all your mistakes need to be studied and carefully analyzed - only this will help to achieve progress and achieve success. After all, each discovered and worked out error will improve your trading approach or find weaknesses in it. The trader will only benefit if he writes down on paper each of his mistakes, draws a conclusion in writing and writes down what adjustments he made to trading after that. You should not rely in such a business as trading, only on memory. Periodic review of the records will allow you to consolidate the acquired skills and prevent these mistakes in the future. It is impossible to completely avoid mistakes in trading. But the success of a trader is determined It is not the absence of errors, but their low frequency. 8. Make only those trades that you are sure of. A trader needs to have a considerable amount of patience in order to wait for trades that he is sure of. This increases the number of profitable trades. For example, a good trader is not bothered by having to do nothing for long periods of time. He does not make trades until he sees that it is possible to make a trade that suits his trading strategy. 9. Don't trade on a wave of euphoria. A good trader should not fall under the influence of euphoria or stock market hysteria. In general, excessive euphoria in the market is the first sign of an approaching trend reversal. 10. Watch how the markets react to the news. Market reactions to news may be more important than the content of the news. According to Piatt, during one of the transactions there was an endless stream of bad news. He expected that this position would close with a loss after every bad news, but the price, despite expectations, did not fall. As a result, Piatt decided that this (the fact that the market does not react to the news) confirms his trading idea, and increased the size of his position four times. This deal brought him one of the largest profits in the history of his work. Studying the markets, you immediately understand the huge scale of exchange trading. The main thing is that trading is equally accessible to everyone. One click - and you are on the stock exchange in New York, the second click - and you are already in Tokyo. These exciting journeys can bring not only pleasure, but also money.
COINBASE:BTCUSDEducation
by Crypto4light
Unraveling the bitter truth about compounding in trading"I'll start with $100 and flip it to $10k" is one of the lies we tell ourselves when we first start trading. Although compounding can do some wonders, without realistic expectations and targets, you will not reach your goal. Illustrated on the chart, we can see a sincere and a deceitful statistical representation of a compounding system based on a year-long tracking. All numbers depicted in percentage-based returns are for example purposes. For both cases, we will have a $5000 beginning capital to work with. Looking at the left hand-side of the screen where the realistic statistics are, we can observe that the ROE (return on investment) numbers differ from one month to another. Some months result in a small loss, some are in deep profits and so on. Just like every single trade, every single month should result in the following: - A big win - A small win - A small loss - A breakeven On the contrary, looking at the table portrayed on the right side of the screen, we can see a blurry image of compounding. Expecting to make a fixed return of 10% every single month is nice, but unrealistic. No matter how well-backtested your trading strategy is, in the world of business and finance, nothing is 100%. Plus, there are several factors influencing our trading life: changing market conditions, negative impact of the surrounding environment on our everyday lives and so on. What we are trying to emphasise is that mentally and psychologically, it is impossible to make huge returns consistently on a monthly basis. The bottom line: have a trading plan that fits your lifestyle the most, be disciplined, risk-tolerant, cold-blooded. And most importantly do not rush the process, as good things come to those who wait.
BITSTAMP:BTCUSDEducation
by Investroy
122
The Fine Line Between Trading VS Gambling - Important LessonHi Traders. This is the video edition of yesterday's workshop. I genuinely believe this is one of the very important topic that we MUST all learn - identifying the distinct differences between trading VS gambling. Recap Most Traders put way too much attention on indicators. Indicators are supposed to assist us with our decision making process, but if at any point you feel like some of the indicators are burdening OR paralyzing the way you make effective decision, then its probably time for you to eliminate them, At certain of your trading journey, you'll need to focus on subtraction, rather than addition. Novice Traders come into the market with the mindset of "I want to learn and know as many things as possible" , all they're trying to do is to absorb like a sponge. Experienced Traders understand that less is more. The more you know what's not for you, the better you perform, and the better you're at avoiding distractions. Do you really think anyone can be successful purely through knowledge and experience? and does knowing more means you're more knowledgeable? What is the true definition of knowledge? The way i define a wise person is when they understand what's good for them and what's bad for them. The secret of trading success lies in Principles. The way you create a plan, rules and principles, then execute them relentlessly. Remember: The fine line between a Gambler and a Trader, is a plan. Gamblers gamble without a plan, while Traders gamble (anticipate the future) by having frameworks, plans, rules, and principles.
OANDA:XAUUSDEducation
by TraderNeoh
3
Bear Market RallyBINANCE:BTCUSDT Bear market rally Prior to anything else, it's critical to realize that we are currently in one of them. Bear market rallies are brutal because it's difficult to predict how long they'll last, how strong they'll be, and how long they'll last. It is challenging for most individuals to comprehend this because they lack patience and think in terms of the most minute time frame. Rallies that periodically occur inside the downward macrotrend create a downward trend with lower highs on high periods (from 3 days to 1 week). Some of them result from cutting short positions in order to profit and start new short positions at higher levels. Ultimately, a redistribution takes place after several weeks of growth of 30–50% (or possibly twice that, depending on the market's structure). Before they pull the rug out from under people, they need to think that the macro trend has altered. The market's function is to take money. Although he is capable of giving in, movements usually happen when traders are not around. The price rises if everyone is short. Down if they are long. Although it seems strange, it is true. The market is an evil steed. You are forced to buy when prices increase. Moving lower encourages selling. You must act because of the price. Keep in mind the feelings you have as you move up or down. There won't be much market share lost if the price declines uniformly. However, the availability of rebounding enables powerful players to profit from movements in both directions while also taking the most money possible from you. Months of decline, followed by a recovery. You don't believe it at first, but it keeps getting stronger. When you finally give up and put your chips back on the table, they again take them away from you. Before you declare that a fresh bear market has started, consider how long downtrends often persist. You should expect downtrends of one to two years and possibly a year of unpleasant sideways movement. Both in the cryptocurrency market and the stock market, there are a ton of historical examples of this. Look at the numbers and consider whether the extra funding can sustain the FDV of a sector whose overall valuation has increased 7 times. Do we have a sudden increase in users? new currency The levels of BTC , ETH, ADA, and SOL as of today were marked to the nearest dollar six months ago. These are merely precursors to a bearish comeback and nothing more, as the primary macroeconomic issues still exist. There will be multiple chances over the coming weeks to sell the rise and rebuy lower. After that, the decline will likely continue or there will be a long flat. If someone tells you there will be a new bull market but doesn't know how or why we got here, don't believe them. Any powerful move up will inevitably be met with a countermove below. You'll now start to wonder why you didn't take advantage of the opportunity to make a profit. Don't be frightened to simply progress upward gently. Protect your capital to survive. Unknown are the scope and length of the current era. However, given the background, it is likely that the trend will last for some time. There will be multiple chances over the coming weeks to sell the rise and rebuy lower. After that, the decline will likely continue or there will be a long flat. If someone tells you there will be a new bull market but doesn't know how or why we got here, don't believe them. Any powerful move up will inevitably be met with a countermove below. You'll now start to wonder why you didn't take advantage of the opportunity to make a profit. Don't be frightened to simply progress upward gently. Protect your capital to survive. Unknown are the scope and length of the current era. However, given the background, it is likely that the trend will last for some time. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch!
COINBASE:BTCUSDEducation
by Crypto4light
The Fine Line Between Trading VS GamblingMost Traders put way too much attention on indicators. Indicators are supposed to assist us with our decision making process, but if at any point you feel like some of the indicators are burdening OR paralyzing the way you make effective decision, then its probably time for you to eliminate them, At certain of your trading journey, you'll need to focus on subtraction, rather than addition. Novice Traders come into the market with the mindset of "I want to learn and know as many things as possible" , all they're trying to do is to absorb like a sponge. Experienced Traders understand that less is more. The more you know what's not for you, the better you perform, and the better you're at avoiding distractions. Do you really think anyone can be successful purely through knowledge and experience? and does knowing more means you're more knowledgeable? What is the true definition of knowledge? The way i define a wise person is when they understand what's good for them and what's bad for them. The secret of trading success lies in Principles. The way you create a plan, rules and principles, then execute them relentlessly. Remember: The fine line between a Gambler and a Trader, is a plan. Gamblers gamble without a plan, while Traders gamble (anticipate the future) by having frameworks, plans, rules, and principles.
OANDA:XAUUSDEducation
by TraderNeoh
3
What is Forex and How Big It Is?💱 Forex - foreign exchange market, is a location where international currencies are bought and sold by economic participants at various exchange rates. Forex market is the biggest market in the world, reaching on average 6 trillion dollars trading volumes daily. Forex market is a vital element for a global economy because it provides capital exchanges between the countries. The main market participants of forex market are central banks, commercial banks, commercial companies, hedge funds and investors. 🕰In order to grasp how big is that market, take a look what is happening on that just in 60 seconds: 📎Total transactions value reaches 3.52 billion US dollars. 📎 1.15 billion dollars of spot transactions. 📎 1.65 billion dollar of exchange swaps. 📎 Total transactions value involving USD reaches 3 billion US dollars. 📎 Total transactions value involving EURO reaches 1.1 billion US dollars. 📎 Just one single EUR/USD pair accumulates 812 million US dollars transactions value. It is hard to imagine how such big amounts are rolling with such a frequency and how insignificant are the orders of individual 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
6
Become a better trader by just answering these questions!Hey Traders! Most people think that trading success is found within a system... yet a successful trading system could be something as simple as 2 or 3 basic combinations, knowledge of price action and a sprinkle of instinct. To me successful trading is a completely different path, I believe that real trading success falls into one sentence which is "Constant and never-ending improvement", self-improvement that is, and in today's post, since it is the weekend, I want to go over this core improvement process with you so you too can become a better trader next week! First to make it clear, I believe that out of the 100% required for trading success the system part falls into the low 10%, while the other 90%+ is within you, it is your knowledge, knowhow, instinct, mindset and everything else that makes you... you. The system is something you learn once and all you have to do is follow it forever with consistency and focus, sounds simple right? It kind of is but we humans tend to make it complicated. Anyway, its Saturday the 9th of July and I want to give you 6 questions that if you answer will make you better by at least 1% right away, but if you continue to answer these questions each time you will, guaranteed no matter what (as long as you are honest) get better by 1% each time, how much better you become in entirely up to you, and by that I mean how honest you are and how consistent you are in answering these questions! So, without anymore delays, here are the 6 questions that can make you a better trader: What was my biggest loss and why? What was my biggest profit and how? What was the best thing I did this week? What am I most excited about for the upcoming week? Did I follow my system on every trade? Was I in control of my trading, mentally, every time I traded? BONUS QUESTIONS: What prevented me from doing better? What motivated me most? What will I not repeat next week? What will I repeat next week? What do I want to remember it for? What is the best highlight? What do I regret not doing? Do you have any of your own questions that could help other traders? - Do share in the comments!
BITSTAMP:BTCUSDEducation
by PrimedGroup
SEVEN GUILTS IN TRADING PSYCHOLOGY1. Confirmation Bias: People pay close attention to information that confirms their beliefs and ignores information that contradicts it. How to avoid: While preparing to execute the order, we try to find support reasons for the opposite direction. The second consideration can not be too careful. 2. The illusion of Control: The illusion of control is the tendency for people to overestimate their ability to control events. It occurs when someone uses a lot of market indicators/TA's method and places the truth on as many as possible. How to avoid: Remember that "Simple is the best". The good-enough trading system on a simple level with a good-enough winning probability will help to exist in the full lying market. 3. Mental-Accounting Bias: The investor has 1000 USD initial capital and 200 USD profit. The psychology of investors usually tries to keep the capital of 1000 USD, while 200 USD will take away more risky investments with the thought that if they lose, they will only lose profits. However, in essence, 200 USD or 1000 USD are all our assets. How to avoid: - Convert the profit to hard assets, if the profit is enough big. - Withdraw the profit periodically, only trade with the initial capital. We can review and reinvest into the capital every month/year. 4. Recency Bias: People analyze a stock that has good fundamentals, and now has a low valuation, but the market trend over the last few weeks is down. Most of them will be more inclined to the negative side and think that this is no longer an attractive investment. However, with experienced analysts, they will see the other long-term factors and see the decline as a temporary correction, even an opportunity to buy shares cheaply. How to avoid: Let's see things from a wider perspective. 5. Herd Mentality: - FOMO: Fear of missing out when seeing nearby someone get a lot of money. - Be panicked when the market sharply decreases. How to avoid: - For short-term trading, be patient, do not chase the price. There are a lot of chances for the next trading. - For long-term trading, make out some major support areas, and early enter orders with sufficient volume in order to avoid FOMO. - For the problem of strongly competing for sales in the plunging market, stay away from illiquid assets. 6. Loss Aversion: Loss aversion refers to people’s tendency to prefer suffering huge losses with the expectation that the price will come back. How to avoid: Make a plan for managing the capital. Everything is just probability, don't hesitate to cut your losses when guessing wrong. Leave room for mistakes. 7. Overconfidence: The psychological problem occurs when an investor wins continuously, they will be more subjective and less disciplined. How to avoid: Always keep a balanced mind! For example, a good psychological investor usually set minimum and maximum profit targets by period (week, month, year). If the lowest goal hasn't been reached, confidence is superfluous. If the highest goal has been reached, the rest should be taken into account. Of course, goal setting must be consistent with the strategy and not overwhelming, it is impossible to set a 100% profit in a week.
HOSE:VNINDEXEducation
by vumaikhanh1991
149
Boredom Trading Could Be a Killer To Your ProfitabilityMost of the retail Traders are mainly day trading. And one of the trickiest part about short-term trading, is the amount of screen time we're putting in VS the amount of action we're taking. On most days, i spend about 12-15 hours everyday sitting infront of the chart. only 15 - 30 mins of them are spent on clicking the buy & sell buttons. So if you do the math 30mins/ 720mins = 4.2% Only 4.2% of my time is spent on taking action, the rest of 95.8% are spent on waiting, planning, testing, reviewing, assessing, studying, etc... So now ask yourself a few questions: 1. How much of a portion of your time is spent on taking action? 2. How often do you over-trade OR revenge-trade? 3. How does impulsive trades affect your consistency? I believe the best Traders have the highest ability to sit with their hands. The ability to look at a high volatility market environment and say "no", and yet only focus on your plan should be the end goal of us as a day trader. There are countless of market opportunities everyday, but how many of them are meant for you?
KRAKEN:BTCUSDEducation
by TraderNeoh
2