Get started

Trading Psychology

The Importance Of Back-Testing Part 1When it comes to trading the financial markets (any market), back-testing your strategies is an absolute must. Although past performance does not guarantee future results, back-testing your strategy cannot be skipped or rushed if you wish to be a consistently profitable trader. Back-testing can be done many different ways today. There are many good software’s & trading platforms with available back-testing tools however, I personally prefer to use a spreadsheet as they are fully customizable & require you to fully understand the operation and function of the data you compile and your strategies performance. In my personal experience, I have found that traders who use software’s as opposed to manually back-testing each trade one by one, have a much more difficult time remaining consistently profitable. One of the effective benefits of manually back-testing your strategies is that you will be training your eyes to spot your specific Conditions & Criteria’s for entry along with getting a feel for the characteristics & movements of the market you are trading. You can manually back-test your strategies by going to your chart and scrolling as far to the left as you would like. Next you will slowly scroll one candle at a time to the right, until you see your setup. Once you see your setup, you should stop and enter the details of the trade into your back-testing tool. After you have entered the details of the trade into your spreadsheet, you should continue scrolling to see the results of the trade. Enter the results of the trade and continue scrolling right until you see your next setup. Your trading timeframe will determine how far back in time you can go for your back-testing. For example if you are using the 60 min chart as your trading timeframe, you should be able to test several years of trades whereas if you are using the 5 min chart as your trading timeframe, you may only be able to test several months of trades. I mainly trade using the 4hr and 60 min charts therefore I personally start my back-testing process by testing 1 years worth of trades. If I am happy with the results of the 1 years worth of tested trades, then I will typically restart the process of back-testing that strategy- going as far back In time as possible. I like to have 3+ years of back-tested trades before I will begin forward testing the strategy & then ultimately trading the strategy live. If you are unsure about the amount of time that you should back-test for your strategy, you can safely make this decision using the amount of trades instead- For example, I recommend back-testing AT LEAST 100 trades. I personally will not begin forward testing a strategy with any less. If the strategy proves profitable after 100 trades, I like to back-test as many as possible. There is no such thing as to much back-testing.  It is very important that we do not cheat during this process. Do your absolute best to scroll slowly as you proceed to avoid seeing the results of the trade before you have made the decision to enter. We must be honest in our approach to testing a strategy, in order to get the most accurate data & results possible. It is easy to see what happens next by accident & convince ourselves why we would or would not have taken that specific trade anyway. Be sure to follow your detailed conditions & criteria’s for entry as this will eliminate making discretional decisions. The purpose of pre-defined conditions and criteria’s for entry is to minimize the decision making process as much as possible. Please understand that cheating during this process is ultimately skewing the results of the strategy as well as cheating yourself! Back-testing serves many purposes to a professional trader & takes up a large portion of their work week as we are always looking for ways to improve our existing strategies and/or develop new, more efficient ones. This stage is also crucial to your confidence in your strategy which ultimately leads to being disciplined and following your set guidelines for the strategy you are using. Your confidence and discipline to your strategy will come into play during periods of “Drawdown" What Is Drawdown? Drawdown is an extended period of time that a traders account experiences loss or no increase in account balance. In other words, drawdown is a losing streak OR a period of time that the account makes no gain or loss. No matter how good a strategy is, it will eventually experience a losing streak. It is extremely important that we measure the severity of these drawdowns otherwise known as "Max Drawdown". Drawdowns can vary from strategy to strategy however as an example, my strategy typically experiences 1-2 drawdowns per year and the average length of these drawdowns are around 30-40 days long. Back-testing can really help maintain emotional stability & psychological logic during these prolonged periods of drawdown. If you begin to feel doubt while these periods of time are occurring, you may go back to your back-testing results to reassure yourself that it is normal for the strategy to not achieve a profit OR even lose a certain amount of money over the course of however long your results show on average. After we have completed 3 years worth of back-testing or at least 100 trades, you will be able to go back and see periods of time (typically 1-2 months) that the account made no money at all or even lost money. As an example- the strategy shown below carries an 11% Max Drawdown over the course of 3 years worth of trading, meaning that at some point during 3 years worth of trading, my account may experience a 11% loss from its current value at that time. This period of time is normal and as long as we do not exceed this Max Drawdown by more than 1 or 2%, we should continue trading our strategy without taking a further look to evaluate whether the strategy is outdated and needs adjusting or if we made trading related errors. looking at the date in the top left (10/4/2018) & Date at bottom right (11/5/2018), we can see that the strategy produced little to no gain over the course of this 32 days. When first starting out as a trader, this can be extremely difficult to deal with. 32 days can feel like a very long time while it is occurring but DO NOT give up on your strategy if it has shown to be profitable throughout your back and forward testing period!! This is where most inexperienced traders begin making mistakes, breaking their rules or change up strategies thinking the one they are using doesn’t work when in fact, this is 100% normal for EVERY strategy. This is where discipline comes into play. If you do not remain disciplined and stick to your strategy/rules during these periods of time, your lack of discipline will lead to inconsistent results & ultimately failure. Lets look at what happened right after this drawdown was finished had you stayed discipline. (See Image Below) In the following 47 days, the strategy managed to produce nearly a 90% gain! I am not saying these are the same results you will get, the point I am trying to make is to not jump from strategy to strategy or start making irrational decisions because of these periods of time. I have seen to many new traders destroy themselves because of drawdown or throw away an amazing strategy because they were unaware and uninformed about these periods of drawdown or because they chose not to back-test a strategy before using it to trade with live money. It is crucial that you extensively test anything you wish to use in the markets before using it. Take the time to feel those losses as if they were real and they were occurring in real time. Don't take anyone's word or back-testing results as your own, simply put the time in to this process yourself & you will find that your perspective of trading changes dramatically. You will start to treat this as a business and you will be one step closer to consistently profitable trading. Note: Back-testing a strategy must be done for each market you plan to trade. For example, your strategy may be profitable on EUR/USD however that does not mean it is profitable on any other currency pair or in any market in general. Be sure to back-test the strategy for each market you wish to trade as strategy results may vary widely from market to market. As a consistently profitable trader for the better half of a decade, the best advice I can give and the one thing I want you to take away from this post is- Always be sure to extensively back-test any trading strategy you plan to use in the markets. Without this step, you are essentially trading blind & will have an extremely hard time with your trading psychology & consistency. The software's out there today have a purpose when used correctly but I highly recommend using a more manual approach. It forces you to understand your strategy while training your eyes to spot your setups. Some Data Points You May Want To Gather For Strategy Optimization- I hope this was helpful for you, please leave a comment and let us know what your back-testing process looks like, and how you go about optimizing your trading strategies.
BITSTAMP:BTCUSDEducation
by Alec40
9
BTC.D : A quick note on bitcoin dominance and altsCRYPTOCAP:BTC.D Hello everyone 😃 Before we start to discuss, I would be glad if your share your opinion on this post and hit the like button if you enjoyed it ! It is inevitable that at some points in the cycle, Bitcoin will outperform almost everything. With a few outliers of course. However, it's important that this doesn't change your game plan. Your game plan should already be set in motion. If you track your portfolio daily, both in USD and BTC, there are always fluctuations if you are holding a mixture of BTC, Alts and USD. It would be near impossible to maintain your portfolio's equivalent BTC value round the clock, unless of course you were all in BTC. I personally hold BTC as my base asset during bull runs (switching to USD at local tops or as near as I can) as well as moving to ETH as my base asset when ETHBTC looks set to out perform. However, it is inevitable that my alt coin holdings (spot) that I have accumulated will take a hit during a strong BTC run - so you may see your 'BTC worth' drop at times; However, I think of alt holdings like a coiled spring. When under pressure BTC, they bleed - and are suppressed. If you've accumulated at support, you need not to worry about the temporary drawdown in BTC, because in general alt coins out perform BTC in the right conditions, and so when bitcoin puts in a local top, altcoins regain their dominance and begin out performing. HOWEVER It is important not to be 'alt heavy' at times when the BTC dominance is at support. It is important to rotate the ratio of BTC:ALT:USD holdings to lessen the impact of alts bleeding at certain times in the market. For example, in January of this year, it was an amazing time to load up on altcoins given that BTC dominance was at resistance. We then saw astronomical gains in alts across Feb/March when BTC.D dropped like a rock. Then, in May when BTC.D hit support, the whole market tanked but alt coins got hit the hardest. Alts will lose value when BTC is volatile, in either direction. So it's important to balance the ratio of your holdings across BTC, alts and stables at certain times in the market. I pay attention to Bitcoin dominance more so for my spot holdings. For my trading account, every asset is simply a method of making a profit on percentage gains. So whether I'm trading BTC, ETH or alts - it doesn't matter as much. But for spot holdings, I generally want to cycle my ALT:BTC or ALT:USD holdings. When BTC.D is at support, I want to hold less alts. When BTC.D is at resistance, I want to load up on alts.
CRYPTOCAP:BTC.DEducation
by Helical_Trades
17
Box Breakouts On Daily, 4 hour & HourlyYes, you should try them yourself: Why? Makes Forex trading a lot simpler to do I add boxes on daily of: DAILY BOXES: 100 pip boxes - vertical lines every Monday and horizontal lines every price action number ending in .000 (psychological #) 4 HOUR BOXES: 50 pip boxes- vertical lines every day after session opens and horizontal lines every .000 & .500 critical price action numbers. 1 HOUR BOXES: 25 pip boxes- vertical lines every 4 hours after session opens and horizontal lines every .000, .250, .500 & .000 price action numbers. If you try this, you will like it. Why? because this will give entry price, stop loss price and 1st and 2nd targets. If your win rate can hit 70% or higher on these 1:1 or 1:2 risk reward setups- then you know exactly what and what you are doing when trading Forex. Risk management is always #1. You can have confluence with support and resistance, pivot points, RSI, BB, etc... before doing this box strategy. If you can use round numbers and quarter numbers in your trading you will be more profitable. Trading Forex is about PRICE and TIME of session going on now.
Education
by Anbat
So You Wanna Trade Full Time... Is it Possible? A Good Idea?I walk you through my thoughts on the dream that most traders have: doing it full-time! I give you my personal experience and how I've tried things in the past. What I'm doing now and what works for me. Key takeaways: - The trifecta: access to capital, good strategy, cost-of-living. You have to solve for 2 / 3 of these! - You can't buy peace of mind. Have other income streams to mitigate the risk from your trading not going well for periods of time.
BITFINEX:XRPUSDEducation
by ImreSG
3
TRADING HIERARCHY | KNOW WHAT MATTERS THE MOST ⚠️❗ Hey traders, I vividly remember how I started to trade 8 years ago, how I was learning, and the things that I was doing. Contemplating my old self, I notice a dramatic shift in my mindset in regards to trading. Staring at the charts and desiring to make money on price action, I wanted to become a consistently profitable trader. Making the priorities, I decided to sacrifice my time on studying technical analysis totally neglecting trading psychology and risk management. Learning different trading strategies I always came to the same result: the account went blown and nothing seemed to work. Strategies of fancy traders on YouTube, strategies from best-selling books on Amazon, nothing could produce any penny. Not giving up and pursuing my ultimate goal I came to the conclusion that I set my priorities absolutely incorrectly. To be honest, I always thought that trading psychology (like psychology in general) is s*cks. Moreover, I considered risk management to be kind of obvious, banal topic not deserving much attention. Learning risk management techniques, applying them in day trading I finally saw a glimmer of hope. Reading dozen of books on trading psychology, contemplating my mistakes, and observing my behavior I noticed so many wrong, incorrect things that I did on a daily basis. With time and practice, my mindset shifted. I realized that most of the strategies that I applied and that seemed losing to me, in fact, were decent. It turned out that mastery of technical analysis is not enough for profitable trading. Instead, that is just a tiny part of what must be learned. Now, when my students ask me about the most important things to learn & study in trading, I always say: trading psychology and risk management go first, technical analysis is the secondary. ❗ Do not neglect these topics and give them due attention. They are an essential part of your success in trading. 🤔 Do you agree with the pyramid that I drew? ❤️Please, support this idea with like and comment!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
44
SINPER CONFLUENCE TRADING OANDA:GBPUSD confluence trading is just multiple reasons stacking up in your favour to take the trade. you should always have some sort of validation to take a trade... my trading style consist of fibonacci levels, psychological levels, support resistance, trend line bounces and much more. one thing to remember is the more confluences you have the more confident you should be in taking the trade. in this example ive shown how you could plot your confluences for you to find a perfect entry with minimal drawdown. take your time to backtest and practice. get your eyes used to seeing these set ups occurring.
Education
by romailfx
The importance of sticking to the plan 👊👌As traders we are our own worst enemies! A common theory with trading is as follows. 10% is having a good strategy, 30% is having good risk management and the final 60% is psychology. If we as traders fail to address the final psychology part of the sentence above then we as traders will fail in the markets. The chart shown in this idea is EURGBP working the 30 minute time frame. The strategy is a rules based mechanical approach working a 1:1 RR to fixed stop loss and take profit targets. I know I have a proven edge with this strategy as with all my ideas the built strategy tester report is at the foot of this idea shows the strategies credentials. Position sizing is correct I trade this strategy on a stand alone account for this pair and I'm happy to risk 2% per trade of my capital from said account. So where does the psychology part come in to all this? The emojis on screen show the emotions I would of been feeling with this trade once upon a time! An emotional roller coaster! The chart shows three trades. A short which hit TP followed by a long which hit SL. Then the trade I'm using for this idea which lasted a full 13 days! But this is where sticking to the plan and the rules I set help remove that emotional roller coaster. Not sticking to that plan could of created many outcomes. I could of closed for less profit than intended as part of the plan or worse still could of cut my losses only for the trade to go on and hit TP target. The above would of then led to more emotions thus effecting my future trading decisions and choices. With each trade I enter I am comfortable with said outcome whatever that maybe. That comes from trading a proven strategy, having correct risk management and then by sticking to the rules of the trading plan for the strategy. Sticking to a plan removes any subjectivity and helps take care of the psychological side of trading. I even automate my strategies now and not checking trades every minute of the day has helped removed all those up and down feelings the emojis on the chart represent. I'll end with one final thought patience has to be part of your plan. The markets take from the impatient and give to the patient ones among us. ------------------------------------------ I try and share as many ideas as I can as and when I have time. My trades are automated so I am not sat in front of a screen daily. Jumping on random trade ideas 'willy-nilly' on Trading View trying to find that one trade that you can retire from is not a sustainable way to trade. You might get lucky, but it will always end one way. ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. The stats for this pair are shown below too. Thank you. Darren
Education
by pow_removetheguesswork
38
Insanity... the thing most traders do (intro)This is a short intro to a major problem traders face... in a longer video, coming out tomorrow most likely, I will explain more on how to stop being an "insane" trader and take control of your trading results by working on the most important person in (your) "room", which is YOU! Just how important are YOU to yourself? take any picture where you are with the people you love the most and look at it, the person you will first search in the picture is you... so I rest my case. Anyway, this video might wake you up a little, if it doesn't the full version will!
OANDA:US30USDEducation
by PrimedGroup
Trading psychology WHAT IS TRADING PSYCHOLOGY? Trading psychology is a broad term that includes all the emotions and feelings that a typical trader will encounter when trading. Some of these emotions are helpful and should be embraced while others like fear, greed, nervousness and anxiety should be contained. The psychology of trading is complex and takes time to fully master. In reality, many traders experience the negative effects of trading psychology more than the positive aspects. Instances of this can appear in the form of closing losing trades prematurely, as the fear of loss gets too much, or simply doubling down on losing positions when the fear of realizing a loss turns to greed. One of the most treacherous emotions prevalent in financial markets is the fear of missing out, or FOMO as it is known. Parabolic rises entice traders to buy after the move has peaked, leading to huge emotional stress when the market reverses and moves in the opposite direction. Traders that manage to benefit from the positive aspects of psychology, while managing the bad aspects, are better placed to handle the volatility of the financial markets and become a better trader.
Education
by Nas_Luthando
FOMO (Fear of Missing Out) Biggest problem with beginner tradersHi Everyone, today I wanted to ramble a little more on something that I struggled a lot with and still do to this day, that is the fear of missing that one big trade that your one hundred percent sure that this is the one that will make you a millionaire. This is where the problem comes in many people think of trading as such a simple thing but also over complicate it at the same time. When you ask another trader they may be using ten different indicators on their chart at once they will tell you that it helps them time the market better and is their way of approaching the market, this approach is perfectly fine if that your personal style. But, on the flip side if you ask that same trader if they are willing to create a simple trading plan to make sure that their emotions are in check before taking the trade and this is the trade they really want to be taking. A simple trading plan can really make a difference in anyone's trading career but this is not the main focus for today, I will be posting more on a strict trading plan to do exactly that, keep you in check and allow for your edge in the market to really reveal itself. Fear of missing out, this is something that many of us have personally struggled with whether we like it or not some of us including myself even struggle with it to this day. This is when you are looking at the chart and without doing a full analysis on the pair you go into it already having a bias on the pair and this will only allow you to see the market in one single way. This causes you to think there is a good trade but in reality there is nothing really even going in your favor, but you think oh no I know for a fact this thing is going down and I need to get in now for a better risk to reward ratio. This causes you to be blinded to what is actually happening in the market and leads you to taking a stupid trade that could have easily been avoided. Some of you may be following me already and have already seen some of my analysis and post these previous few weeks, while a lot of them went against my initial analysis I did not take half of the trades on my account. For me to take a trade I want to have confirmation which would be a close above the zone of recent highs or lows and after that close confirming that there is more momentum in my favor, only then will I actually take the trade. I have this "Rule" in place to allow for better trades and try to limit me to my stupid trades due to my fear of missing out. I even started to literally sit on my hands or not even look at the charts for a while waiting to see if my trade that I would want actually lines up or if it is a false breakout, waiting for that confirmation has allowed for me to take a lot less losing trades and this is something that I would highly suggest doing in your own trading strategy as well. You should be able to close your eyes and imagine your perfect setup right now, and that is the only conditions you should take a trade under. If you are taking trades based on emotions that is never going to go well, so many different things can happen in someone's life that can effect their personal trading routines and overall psychology. It is very very very important to have rules set in place to help better your trading and help you along that journey of becoming a break even trader and even a future profitable trader. While this will allow for a person's strategy to really thrive, risk management and the proper set up rules will really improve any trading strategy no matter how good or bad it may be. Thank you all for the support the trading community has already showed me while I have been trying to share my trades for my own personal benefit and the benefit to whoever may take a peek at my information. Hope you all had an amazing trading week and I will be posting more about suggested topics or whatever I feel like writing about that day, hope you had a good day. Thanks again, KeySlot
BITFINEX:XRPUSDEducation
by KeySlot
Trading PillarsFirst pillar: learning to trade is hard work, but it can be taught. 1) The successful trader can be modeled and taught to other people. 2) Learning to operate requires as much education as any other profession. Second pillar: Know yourself. 3) You need to find a trading system that suits your needs 4) To achieve that, you need to know yourself: a) Your values b) Your strengths c) Your weaknesses d) Meaningful beliefs (Spiritual, yourself, market, system) e) Advantages f) Trading weaknesses 5) You can only exchange your beliefs about the markets, not the market itself. Know and understand your beliefs. 6) The development of the system is 100% psychological: beliefs, mental states and strategies. 7) You must know your personal criteria in order to operate with a trust system. Third pillar: Errors 8) A mistake means not following rules. 9) you are responsible for everything that happens to you. When you understand this, you can correct your mistakes. 10) Avoid repeating the same mistake. Self-sabotage. 11) An operator who comments 10 erroneous operations has an efficiency of 90%; But that 10% drop in efficiency might be enough to make you a losing trader. Follow your trading plan. Fourth pillar: Position size objectives and strategies. 12) 50% of system development consists of thinking carefully and clearly defining a set of written goals: desired profit, maximum acceptable reduction, and how important each is. 13) Meet your goals through position size strategies. 14) Can you perform 10 operations without errors? 15) You must know your mission / purpose in life and incorporate it into your trading. 16) You need to know your financial freedom number (Passive income per month minus expenses) Fifth pillar: Probability and risk / reward. 17) Never open a position and know the initial risk. 18) Define your success as multiples of your initial risk: Risk / Reward → R:R 19)% constant losses. All operations must have the same price. 20) Make sure the earnings on average are more than 1R. 21) Never trade unless the R:R of this trade is 1: 2 22) Your performance has to do with controlling risk and managing positions through exits. Sixth pillar: Market systems and types. 23) Understand how your trading plan works in each type of market: a) Volatile bullish, quiet bullish, laterally volatile, laterally calm, volatile bearish, silent bearish. 24) For each type of markup, create a large sample size to estimate what the plan will be, i.e .: Entry, exit, and profit-taking strategy.
Education
by Ed_Ale
Improving Consistency In TradingThis is always one of the biggest challenges to becoming a full time profitable trader. Almost all traders will have a battle against becoming consistent. Its something that I definitely struggled with when starting out in my trading journey. 
I would go through weeks of profitable trades and building my account and then equally go through losing streaks and essentially wiping out my wins. Or simply from one week to the next my trading results would fluctuate like crazy… This will inevitably have a detrimental effect on your trading results but more importantly it will have a major negative effect on your mentality and well being as you become more and more frustrated with inconsistent trading results. So today I wanted to sit down and go through this in topic to explain some ways to combat this problem and improve your consistency. Expectations Firstly its important to define the goal… what does consistent trading look like FOR YOU? Because believe it or not, the answer to that question is different for different people. 

So, are you looking to be consistent over the course of each day? Over the course of each week?… Define a time period that is realistic for you to determine your consistency and make sure it has enough time to measure enough trades to account for wins and losses. Are you looking to be consistent in terms of profit over this period of time? Or are you looking to be consistent in terms of percentage of trades won and loss? Secondly its important to know that you WONT win every trade.. so any goal that sets out to do so won’t be realistic and won’t be achievable. 

Winning 80% of your trades is a VERY consistent win rate percentage. 
 No Silver Bullet The honest truth is that there’s no secret formula or special sauce that will turn an inconsistent trader into a consistently profitable one overnight.

As with everything it will take gradual steps of improvement but I can share with you some methods and insights to help speed that process up. 
 Consistent Results Come From Consistent Processes
 The main reason behind inconsistent results is that traders are using an inconsistent process for each trade they place. 

If one trade is placed based on one strategy and then you are not using that same strategy on the next trade then you can expect any trading results will reflect that. 

Its important to understand your strategy in trading intimately… you should have the confidence in your strategy that if you were to lose a trade, you are confident that over time your strategy will work out. 

Typically this scattergun approach where traders jump from one strategy to the next is the main cause of why their results are inconsistent. 
 Review Your Strategy Finally you must of course have a very robust strategy to use in the first place… if the strategy you are using isn’t robust and doesn’t provide an ‘edge’ on the market… if you haven’t done the research and backtesting necessary to know your edge on the market then you can be sure that any result from using that strategy will be inconsistent.
OANDA:XAUUSDEducation
by JoelWarby
81
Pyschology Tip of the dayHi guys, I haven't posted anything but analysis of the trades I may take in the upcoming week but I have not really covered pyschology maybe as much as I should be. I think this a huge part of trading that a lot of newer members may just skip or may not pay as much attention as they should to the subject. Being angry at something in your life or being upset will effect your trading and will blow your account if you cannot control your emotions. You need to have a risk management system in place that will limit your losses and give you that edge in the market in the long run. I know its super typical for people to say but trading is only a small percentage of the job, the real job is the pyschology and being able to control your self and be smart about your decisions. For example, today I had a hard time thinking if I should take my NZD / USD trade or not, I was thinking that it is what my setup would need for me to take but the only thing is there is no clear trend but there was a rejection of the beginning of a uptrend in my mind. Since, I am still feeling a little off about this trade I am going to lower my risk for this single trade and I will require a lot more confirmation before taking this trade. If the trade goes in my direction I can always go and add more to make a full percent or even more if you move your original trade to breakeven. Do not be afraid of missing out and try risking one or two more percent the single second the trade goes in your direction, the market will always be their and there will always be a trade for you to take. If not, the hardest thing for a trader to do... is not trading, sometimes being patient and waiting for your perfect setup is better than having three losses before taking a profitable trade, this is only going to loose money in the long run and will maybe make you a breakeven trader. If you guys want to see an analysis that I do for every pair that I am interested in take a look at the link below, this will be my most current analysis at the time. Thanks again, Keyslot
Education
by KeySlot
1
AUTOMATED TRADING BOTS: How to profit with Tezos.Tezos is one of the best token for our robot. Our robot mainly uses the DCA (dollar cost averaging) trading method. If the price drops, instead of the Stop loss order, we have a Buy limit order. This will also cause the Take profit value to drop and approach the current price. If the price falls and falls, the robot buys and buys. This keeps the Take Profit lower and lower. After that, the price of the token rises and our trade ends with Take profit, which is not far from us thanks to constant and precisely predefined purchases. The XTZ / USDT currency pair is suitable for our demonstration. You see very high volatility. It is through volatility that our robot can be profitable. If the price still went in one direction without frequent fluctuations and without "waves", the robot would earn very little. We need great volatility for big profits. Volatility in the TradingView platform will be helped by the Historical Volatility indicator. This indicator often (on this time frame) intersects the value of 50.00, which is rarely affected for low-volatile currency pairs. For example, you would look for Bitcoin very bad around 50.00 on this time frame. The key to our profitable trading bot is volatility! At a time of market colapse, when almost everyone is going through and positions in the Futures markets are being liquidated on a large scale, we are EXTREMLY profitable thanks to our robots. Of course, it is very important that you know how big the position is and how often, or at what intervals it is necessary for the robot to buy more. In no case is every setting of the robot profitable, on the contrary, setting up a profitable robot is not easy. You will learn how to set up a robot to be constantly profitable in our Academy. PS: One of the best things about trading with robots is that you remove all emotions and decisions. We wish you a nice day. UCT team.
Education
by UltimateCryptoTrader
FX Compounding Calculator (Do You Want To Be A Millionaire?) Only one way to grow a small account into a large account. That is by treating Forex trading as a marathon race not a sprint race. Do you have 2 to 5 years? You can use the compounding calculator to calculate profits. This allows you to understand better, how your trading account will grow over time. One of the most interesting facts about compounding is, that even a moderate monthly gain turns your initial capital into a serious amount of money over time. A Forex compounding calculator is useful to simulate how compounding the initial equity and the profitable trades, with a set gain percentage, can make a trading account grow over time. It works by simulating the compounding and the reinvesting of the same chosen gain percentage of the account's total equity. With this calculator traders can input the settings in order to accurately calculate the compounding results of a set of winning trades over a period of time. The use of this calculator can demonstrate traders how powerful gains compounding can be, and, that even a moderate gain percentage of 2% (for example) per trade, can turn an account’s initial capital into a substantial amount of capital over time. You will be surprised how powerful compounding can be. My goal is profit at least 1% per trade and/or 1% per session/day. Look at chart: You Can Do It- by letting your account grow with compounding profits < this is the holy grail of building your account. Albert Einstein said,"“Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”
Education
by Anbat
1
YOUR SUCCESS IN TRADING | Expectations VS Reality 💰🤔☠️ Hey traders, Being a full-time trader & running a coaching program for the last three years, I met hundreds of struggling traders from different parts of the globe. Guess why the majority of them could not make it? What was the main reason for their bad luck? It wasn't their trading strategy, nor their technical analysis. The source of their failure was the expectations. Trying different trading strategies, following the signals of different signal providers, these traders expected quick gains and exponential account growth. They were actually in a state of a constant search of a holy grail, of a magic wand that will open Pandora's box to them. Just a single losing trade made them skeptical while the first losing streak made them drop the strategy and return back to the search. They keep spending thousands of dollars on trading strategies promising them close to 100% win rate. There is this common mantra, the stereotype about a pro trader: a guy with 4 screens making a quick buck on each and every market rally, driving Lambo, and living in a mansion. Unfortunately, the reality is different. Ahead you will encounter loneliness, losses, pain, and disapproval. The road to success in this game is long and dangerous. Get ready to see the skepticism in the eyes of your relatives and friends. Many years and tons of money must be spent in order to make it. But even mastering the system, becoming a consistently profitable trader you will not constantly beat the market. Your wins will just slightly outperform your losses giving you the means for living. If you are ready for that if you are courageous enough to start and to proceed no matter what, you are already one step ahead of the majority. Be prepared to work hard and practice much, set a correct goal, and sacrifice your presence for the sake of an independent and prosperous future. Are you ready? ❤️Please, support this post with a like and comment!❤️
Education
by VasilyTrader
145
Retail vs Institutional InvestorsRetail ✔️Retail Traders are individual traders who buy or sell stocks, securities, or assets from their personal accounts. ✔️Retail Investors mostly focus on technical analysis, price patterns, and Indicators. ✔️Because of low volume, orders submitted by a retail trader cannot affect the price of an asset. ✔️Retail traders can come out of trades or their positions easily at any time with minimum slippage. ✔️Retails investors have more quality of life as they don't have to trade on a regular basis and can take a break whenever they want. Institutions ✔️Institutional traders are highly skilled individuals who have a degree in finance, economy, or math and are employed by large institutions to do the trading. ✔️Institutional traders carry out the most trades over any major exchanges and greatly influence the price of a security, commodity, stock, or cryptocurrency. ✔️Institutional Traders have access to a large amount of capital and exotic products. They also have early access to the latest news and buzz as they have the ability to pay a good amount to various media outlets. ✔️Institutional Traders manage accounts for larger groups or institutions, banks, hedge funds to buy and sell stocks. ✔️Because of large volume orders, institutional traders can greatly impact the prices of a security ✔️Institutional traders focus on fundamentals, sentiments, and trading psychology. What kind of trader are you? And let us know more differences between these two in the comments box below. Follow us for more educational ideas, analyses, and scripts. Happy Trading!
Education
by Tuned_Official