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Trading Psychology

The Quarters Theory (1 hour) Part 3-4The quarters theory on one hour time frame is great for both day trading and/or scalping. Make sure you put the quarter lines every 25 pips away from each other, just find the closes whole round number and start there with adding lines on charts. On noted GbpJpy chart the quarter lines are as follows: 150.750- yellow line 150.500- red line 150.250- yellow line 150.000- black line 149.750- yellow line These lines help with structure of price action, what has happened before at these lines? go left These lines help with entries, exits, stop losses, targets and risk management.
Education
by Anbat
The Quarters Theory (4 hour) Part 2-4Quarters Theory example on a 4 hour chart of AudJpy: What does chart show you? 1) Whole round numbers (black lines)- 100 pips away from next round whole number 2) Quarter numbers (yellow and red)- 25 pips away from next quarter number These lines make it a lot easier to trade any time frame, why? 1) You can set you enter and exits at these lines on charts 2) These quarter lines give you structure and informs you where price action swings had happen before 3) These quarter lines give you a great place to set your stop losses, on 1:1 or higher risk reward setups. 4) These define your trade, so you can set your risk management via quarter lines on charts Per attached chart you might know where I think price action will continue to today and/or tomorrow. Yes, you could do a 50 pip stop and 50 pip target on these 1:1 trades but you need a 60% or higher win rate if you only do 1:1 RR trades. But this is not hard to do if you have the knowledge. If you either day trade and/or scalp, I would strongly advise you to you tube and/or google The quarters theory and start using them to define your trades, lot size, entries, exits and targets. This will help you greatly in your trading.
Education
by Anbat
1
With Hardwork and Dedication, Anything Is Possible!This isn't our typical workshop or market breakdown. Just want to take some time to deliver this message to you all supporters and passionate traders out there. Talent isn't everything. In fact, hard work beats talent. If you're willing to dedicate 110% of your time and energy, you're moving towards your goals, and that's all you need to do. Remember, regardless of where you are, you can do it. Your closest ones may not be as supportive as your expected. But it's totally fine! It is not their responsibility to trust you or even have faith in you! Your journey to success takes time, sweat, and tear. Loneliness is part of the game. Remember this... Winners never quit and quitters never win. Think positive. You never lose, you either win or learn. So don't give up yet, keep hustling, stay humble, you'll get there. It might not be today or tomorrow, but someday! I'll be there supporting you all behind!
KRAKEN:BTCUSDEducation
by TraderNeoh
2
I Just Took a Big Proft - What Should I do?Hi Traders, welcome back to another workshop. This topic is often a big question mark within a lot of traders, wondering should they continue trading after getting a jackpot trade? When it comes to this, again, there's no right or wrong. It is all about your plan, mindset, and performance. Below I've summarized the 3 main highlights of this workshop 1. Identify whether it is a good win or bad win - If a winning trade is within your trading plan, something that you carefully planned and executed, then it is a good win. Because most likely it is something that is repeatable and duplicable, which can contribute a big part to your long-term consistency. - If a winning trade is not within your trading plan, then often it is categorized as a bad win. You took the trade based on impulsive behaviour, you jumped into the chart just start taking blind trades. Yes, it is still a winning trade, but as a professional trader we do not determine the quality of a trade based on the outcome. It all depends on the execution of the strategy and the quality of the setup itself. You can have the best setup where everything aligns but still lose money. Think about it. 2. Do a mindset checking - "Is my mindset still clear?" - Is your mindset still at at peak? If the answer is yes, then feel free to continue trading, because who knows it could be one of those good months? - But if the answer is no, then probably you should take a step back. You can either trade less size to track your performance or you could perhaps stop trading and focus on something else, then come back stronger. 3. Set a drawdown limit (Very important) - Always pay yourself first. Active trading is still considered a job. I understand the importance of compounding, but always take a small portion of the money and pay yourself first, then continue growing your account. - By setting a drawdown limit, it calms your mind as you secured portion of the profits. It always avoid you from performing poorly due to a different mindset approach then eventually give back all of them back to the markets. Let me know your thoughts in the comments below. If you enjoy the content, make sure you click the like button and share it with someone who need to read this.
KRAKEN:BTCUSDEducation
by TraderNeoh
4
What Type of Trader Are You? 🤔 Hey traders, In this post, I decided to make a comparative analysis of three main trading styles: scalping, day trading, and swing trading. We will go throw the main pros and cons of each approach and discuss common misconceptions. 🏃‍♀️🏃 Let's start with scalping. I guess many of us were impressed by videos on youtube showing how a guy makes thousands of dollars applying a simple scalping strategy. Some of these videos get millions of views and excitement from the audience. No surprise the majority of newbies start their trading journey with scalping strategies. Practicing some of them and trading on a real account, these traders suddenly realize that the youtube videos barely reflect the reality of scalping. Scalping requires being extremely reactive, making trading decisions quickly, and constantly staying focused. Moreover, it turns out that this trading style is extremely risky, and occasional losing streaks become an essential part of the process. A pro scalper usually opens dozens of trading positions per day and manages many of them simultaneously. Even though it is a fact that a solid scalping strategy is a true cash machine, the constant pressure and high level of stress make many traders leave that game blowing their trading account. A true scalper is a guy with iron nerves and a sharp mind. It takes many many years to become a person like that. 🚶‍♀️🚶Intraday trading is a bit simpler. While quite often scalping gives a trader just a couple of minutes to react and make a trading decision, intraday trading gives the hours. Such a trading style is slower, the intraday perspective is not that chaotic and irrational. It takes many hours for the trading setup to play out making the trade management process not that time-consuming. Moreover, intraday trader tends to open much fewer trading positions than a scalper. Analyzing primarily 4h/1h time frames less trading setups meet the entry conditions. That primarily affects the potential gains though. Lesser you trade, the less money you make. I consider myself to be an intraday trader. Trading full-time of course I was trying different scalping strategies, but I must admit that I can’t make the decisions that quickly, I can’t constantly hold so many active trading positions in my mind, I need some time to think, I need some time to do other things, I want more freedom. For that reason, intraday trading is my choice. And let me be frank right here: I am not trying to say that intraday trading is simple, it is SIMPLER than scalping still remaining extremely complicated to master. 🕴🕴 If you want trading to become your side income if you have a full-time job and just a couple of hours per day for charting, I believe that intraday trading/scalping are not appropriate for you. In your situation, I would consider swing trading. Swing trading is extremely slow. Being primarily focused on weekly/daily time frames a swing trader tends to hold trading positions for weeks, sometimes even months. Moreover, it takes many days for a swing trading setup to form and the market gives a trader much time for reflection. Of course, that primarily affects the potential gains: I believe that among the 3 trading styles that we discussed, swing trading generates the lowest returns. Swing trader is the best starter for newbie traders. Analyzing higher time frames they can constantly follow the market and don’t miss the major moves. Just 1-2 hours per day are enough to follow dozens of financial instruments. Only by becoming a consistently profitable swing trader, one can try himself in intraday trading. Working with hundreds of struggling traders from different parts of the world I realized that the majority has the inverted perception of scalping/intraday/swing trading. I hope that this article will shed a light on that topic. What trading style do you prefer? ❤️Please, support this idea with like and comment!❤️
OANDA:XAUUSDEducation
by VasilyTrader
38
Stopped Out - Is It Okay To Re-Enter?Hi Traders, welcome back to another workshop. I believe this is a very common struggle within our community as a Trader. Often when you take a loss on a particular setup, the urge of getting back into the market is intense, and that's human psychology. Do you realized how focused and how biased you are when you are hunting for a specific setup? - Get stopped out once, you'd still take it because it doesn't do any damage to your account - Get stopped out twice, you'd still arguably take it because you allow yourself for a re-entry - Get stopped out thrice, now your emotion is taking over your rational behaviour. Now all you're focusing is either "How can i make my money back?!" or "I MUST be correct" or "This cannot be ..." Familiar? Remember, trading is not so much about Yes or No. It's all about measuring the Risk-to-Reward VS Probability of Success. If a setup is so valuable that you cannot afford to miss it (assume it passed through your trade evaluation process), feel free to take it again and again. But if you're trading the P&L, then i'd suggest you to only allow yourself a maximum of 2 chance entries, meaning that if you're getting stopped out twice in a row in a similar setup, you should probably get some rest or trade the other markets. Most of the time, when a trader gets stop out multiple times in a row trading a similar setup, the emotion kicks in. Now their trading lens is no longer focusing on finding the best setups, but rather 'this must be it'. That's also how the over-trading and revenge trading behaviour pops out. Let me know your thoughts below. If you enjoy the content, make sure you follow my profile and give me a thumbs up for daily fx forecast & educational content.
KRAKEN:BTCUSDEducation
by TraderNeoh
1
Study the Logic Behind Price Patterns, Not by Memorizing!Hi Traders, I won't be doing any particular market breakdown today as I don't see any great opportunity around. But here's some gems to share. In the previous few analysis, I've been talking about the potential failures on UJ everytime price attempt to break above 115. If you've not watched the previous UJ analysis OR in case if you couldn't find it, I'll link it down below for your convenience, make sure you watch it. In my market breakdown videos, I often talk about continuation pattern. In yesterday's UJ breakdown, this was exactly what I was talking about, a continuation pattern. Price had a strong drive/ momentum into one direction (in this case bearish momentum), formed a tight consolidation giving us more information that sellers are attempting to squeeze price lower. This kind of flag-type pattern simply tells you how one side is bullying the opposition, eventually leads to further continuation into the initial direction. For whatever instruments you're trading, it'd still fall back to Price Action. Understanding the psychology behind candlestick movement is what's going to make you profits, not by blindly memorizing strategies or patterns. See you tomorrow for more breakdowns! Trade safe and manage your risk!
Education
by TraderNeoh
Trading strategies, Part 1: First stepsWelcome to a series of videos called Trading Strategies. In the next couple of weeks, we'll talk about different strategies one can use to maximize gains: Market psychology, trading tools, trading styles, technical analysis. Today, the first steps: 1- Defining who you are: Are you an investor or a trader 2- Educating yourself: Knowledge is the best tool someone can have on the market 3- You can't win all the time 4- Don't be greedy Stay tuned for more content
BITSTAMP:BTCUSDEducation
by KairoiCapital
1
HOW PROFITABLE TRADING LOOKS LIKE ? (EDUCATION)Hello traders, I'm making this post in order to help the community, most of you focus to much in technical analysis but let's take back to basics a put things clear. Before continuing reading make sure to give a like this will help the community use proper risk management. Let's talk about simple math : This is simply a conceptual series of 10 trades, taken one after the other from abeginner perspective let's us act as a beginner: if at the beginning you risk more than expected then it will take you a lot of work to recover from that DD%. Make sure to have a proper risk modelling and follow the rules to survive. New traders execute trades with certainties " this loos good" "I will risk more" “ I can’t lose in this trade “ "I will risk more in this one because I need to recover my previous loss" . "I lost the previous one i will risk less" Here is where the problem occurs: When you modify parameters in your risk modeling it will have a strong impact in the outcome. This example was clear. Our dear Mr amateur risked more in the first trade end up losing more ( uncontrolled loss) , then took another normal loss , after that he has two winning trades but guess what? Mr emotional become greedy and risk more after having two profitables trades and guess what ? He just distributed all the money back. See how his biggest loses come after the biggest wins . After that big loss mr amateur is scarred to pull the trigger and of course he cut winners very quickly because he’s afraid to distribute back . Well for him trading becomes a nightmare . Markers are consuming his pocket and soul . Now Let us say for example that you took 10 trades with proper risk management ? With a probabilistic approach? the outcome is totally different. And guess what there is no magic trick . Profitable trading is a unemotional risk manager game , Chose wisely . Here is where the solution is : EVERY TRADE IS UNIQUE , ANYTHING CAN HAPPEN. MANAGE YOUR EXPOSURE OR YOU WILL HAVE NOTHING LEFT TO MANAGE. PRO traders understand that in order to have results they must adopt a series per trade approach Please do follow and comment your thoughts. let me know in the comment section what do you think about it .
Education
by AIRFOREXONE_
8
WHY 95% OF TRADERS FAIL | Top 6 Mistakes to Avoid 🙅‍♂️🙅‍♀️ Hey traders, That is the absolute fact: 95% of traders will fail. Working with hundreds of struggling traders from different parts of the world, studying their trades & following their reasoning I found a lot of commonalities. In this post, we will discuss the top 6 mistakes to avoid to succeed in trading. 🤖 Rather than studying the market structure, rather than learning price action, many traders are looking for a "secret indicator". The one that will accurately indicate when to buy or sell the market. Failing to find the one, they start looking for a set of indicators giving them magic profit formula. At some stage, they stop analyzing the chart at all. They become obsessed with the indicators. Remember, naked chart analysis always goes first. The indicator is the tool in your toolbox that is applied as one of the confirmations. 💫 The expectations & mindset play a very important role here as well. Many people come in trading with a desire to become rich quick. To buy a subscription to some signal service promising them thousands of pips monthly and quite their 9:5 job. Or to watch a couple of educational videos about trading and after a couple of days of practicing become a whale of Wallstreet making thousands of dollars with a single trade. Such a mindset is completely wrong. Instead, you must realize that trading is extremely hard. It will take many years and a lot of blown trading accounts before you get how to trade properly. Moreover, even once you mature, you won't make millions of dollars. Professional trading is simply about winning slightly more than you lose and then living on a margin. 📉 Poor risk management is the primary reason for blown trading accounts. And here I am not talking about some "advanced" risk management techniques. Many traders simply trade with oversized lots. Having high leverage & 1000$ deposit at hand the one can simply open a trading position with 1 standard lot and be kicked in by a spread. Or they open a trading position without a stop loss. Being wrong in their predictions instead of closing a losing position they keep holding it. And while the market keeps going against them they pray the God for a market reversal. At some moment they get the margin call. You must learn to calculate a lot size for all your trades. Instead of risking a huge portion of your trading account, learn to set a stop loss and risk no more than 1% of your deposit. 📝 Lastly, discipline plays a crucial role in your success in trading. Once you developed a trading strategy & backtested that you must learn to follow its rules no matter what. Usually, once traders catch a losing streak they start changing their rules, they start adjusting their trading strategy. Remember that losses are inevitable. The only correct way to stay afloat is to be consistent and don't break the rules. Avoiding these common mistakes your chances to succeed in trading will increase dramatically. I wish you be among 5% of traders who made it. Did you make these mistakes? ❤️Please, support this idea with like and comment!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
30
Trade Entries VS Trade Exits - Do you still make these mistakes?Hi Traders, welcome back to another workshop. In today's workshop, I will be discussing the importance of taking of both Trade Entries and Trade Exits. Most traders put way too much attention into spotting the specific entry level. But the truth is, closing out a good position at the right time and at the right price make you money. You can have the best strategy and best entry, but if you don't know how to exit, you'd still end up losing money. Why majority focus so much on trade entries? Simply because the feeling of catching tops & bottoms give them a sense of gratification and achievement. Trading isn't about feeling good, it certainly isn't about ego. It's all about how can you organize your mind to control its performance, so you're consistently extracting profits from the markets, by doing the right thing. Stop aiming for profits, start focusing on the process. Do the right thing. Again, and again. That's how you make money from whatever you're doing in life. Comment down below what's your best and worst positions. Share with anyone you think he/she should be watching this.
KRAKEN:BTCUSDEducation
by TraderNeoh
1
How To Achieve Your Personal Success - VisionHi Traders. This workshop is something untypical, not really trading-related but more on life story in general. In this sharing, I'll be discussing why starting from zero is always the toughest. Trading, investing, and entrepreneurship in general tend to beat you up in the beginning when you first started. Everyone's fueled with passion and motivation in the beginning, most people give up in between. Ultimately, those who can withstand challenges and defeats will stand up firm and stronger. People who will succeed in life are those who are determined, persevere, and with ever-growing passion. For whatever challenges you're facing right now, remind yourself that it will not last forever. A bright shiny day comes after the rain, keep paddling. "Our greatest weakness lies in giving up. The most certain way to succeed is always to try just one more time." Comment down below what's your goals, and challenges you're currently facing. Share with anyone who need to watch this.
KRAKEN:BTCUSDEducation
by TraderNeoh
2
Why You Should Never Focus On The Outcome?Hi Traders, here come another workshop regarding " Why you should never focus on the outcome ." Along my own life journey, I've been through there and I've had encountered many people who are constantly comparing themselves to another or envying another. The way I see life is that everything has a fair return. The achievements in your later stage of life is the by-product of your earlier sacrifices. If you're unwilling to pay the suffers now, most likely you will live your life like the 90% of the ordinary. Everyone has a different progress and settle at a different pace. By focusing on the outcome, not only you're dragging yourself down, you're also directly stagnating your personal growth process. Things you should never do if you're currently in a transition into a better self 1. Never compare yourself to another - By comparing yourself, you're focusing on the dollars return (monetary return). Then, by doing so, you'd tend to forget your initial motivation - why did you started? 2. Never forget why you started - Why? In life, we all started something with an initial sparks and burning passion. But somehow the majority turns into the majority because they've forgotten their goals and motivation. Or they simply give up so easily that they're not taking their dream seriously. 3. Loss track of progress - By comparing to someone elses' life, you're not focusing on what your own dreams are. If someone else if making more money than you, remind yourself three main points A. They've got a different dream and goal B. Whatever amount they're making, it's their own progress, mind your own business! C. Everything settle at its own pace. Someone's making big money at their early age but go broke later one. Some busy planting seeds in the beginning but enjoy the fruition later. Comment down below what's your biggest aspiration. If you enjoy the content, make sure you follow my profile and give me a thumbs up for daily fx forecast & educational content.
Education
by TraderNeoh
Price Psychology what happening with in priceThis is meant to serve as a training guide into understanding how chart patterns are ultimately formed via prices bought and sold. This is where the focus of this video is. We are always wanting to know rather than the pattern that is forming, the prices that are being bought and sold on the chart. For this we use Quarters Theory, The segmenting on the chart into equal slices to understand where prices are at and where they could go. On my highest timeframe I like to stick to 1000 pip sections the value of these sections changes this system is universal and can be used on any asset for ease of understanding it was preformed on a stock chart. Within 1000 pips we have four sections Four $100 zones Four $50 zones Sixteen: $25 zones On a monthly chart we focus on 1000 pip sections, on a weekly is 100 and on a daily its 10. Segmenting the char in this nature allows for an understanding of how price has reacted on different time frames based up the price or zone that it is in. From this point of view we may then begin to see recognizably patterns happening at specific prices that would be attributed to bar chart or price action patterns.
OTC:PUBGYEducation
by RobinhoodFX
COMPOUND INTEREST. Time is on your side📚 ❗️As it turned out, not all traders are familiar with such an important concept as compound interest. Meanwhile, the use of compound interest in trading can be a very effective tool for making a profit. In short, compound interest is the accrual of interest on interest, and if in detail, then read on. ✅The formula for calculating compound interest has the form: Compound percentage = (P (1 + g)^ n) – P, where P – the amount originally invested; r – interest rate; n is the investment period. Let's say you invested an amount of $ 10,000, every year the interest received is added to the principal amount, and new interest is accrued for a larger amount. If the investment period is 5 years, and the interest rate is 10% per annum, then after the specified period, taking into account the compound interest, you will receive a profit in the amount of: (10000(1+0.10)^5)-10000=6105.1$ And without taking into account the compound interest, the profit for the same period will be: 10000*5*0,10-10000=5000$ As you can see, using compound interest (or in other words reinvesting profits) brought additional income in the amount of: 6105.1-5000 = 1105.1 $. ✅It seems that the figures presented above are not impressive, but the use of compound interest in trading can truly work wonders. In what way? Let's take another look at the compound interest formula described above. It is obvious from the formula that you can increase profit by increasing any of its components. Let's not touch the amount originally invested, but play with the value of the investment period and the interest rate. To begin with, let's imagine that we will reinvest the profit not every year, but every month. Then the investment period will be 12 *5 = 60 months. The interest rate corresponding to this investment period will be equal to: 10%/12=0.833%. Let's substitute these values into the formula for calculating the compound percentage: (10000(1+0.00833)^60)-10000=6449,8$ As you can see, under the same conditions, but with monthly reinvestment of profits, the income will already be $ 6449.8- $6105.1 =$344.7 more. Well, if the trader's income is not 0.833% per month, but, for example, 5% monthly, then under the same conditions and for the same period, the profit will already be: (10000(1+0.05)^60)-10000=176791,86$ Felt the difference, impressive, isn't it? And what if you reinvest profits not monthly, but daily? Let's figure it out. With an average yield of 5% per month, the average daily yield will be 5%/21= 0.238% (here 21 is the number of working days in a month). The investment period will be 5*360=1800 days. Let's substitute the data into the compound interest formula: (10000(1+0.00238)^1800)-10000=711617,5$ This is already 711617.5-176791.86 = 534826 $ more than with monthly reinvestment of profits. More than half a million dollars (and this with an initial investment of only ten thousand)! That's impressive. That's what compound interest is in action. ⚠️This is about theory. In practice, it is impossible to achieve a constant percentage of profit every day. Some days a trader inevitably ends up with a loss, some with a profit, and the size of these losses and profits is always different. So it is unlikely to substitute the value of the percentage of profit per day in the above formula. However, the very essence of compound interest, clearly shown above in figures, gives the trader a fairly powerful tool for earning. A trader can and should use compound interest when creating his own money management system. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by UnitedSignals
6
Be Prepared - In control of the Survival ModeHI Traders, here come another workshop on being prepared for any possible outcomes in trading. Whether you're a new or experienced traders, at one point, you'd definitely face some obstacles completely out of your comfort zone, where you're just stumbling without any clue on how to solve it. Here sums up 4 key elements on how to be in-control of any possible outcome 1. Flexible - Successful traders have extremely good flexibility. Regardless of what's put infront of their face, they adapt. - Market conditions vary from day by day, so when the ordinary things/ setups aren't working well, what's wrong? Most likely either the market condition has changed, or your mindset is changing. - This is why having multiple strategies to trade across different market conditions are so important. If you're only focusing on a specific market condition (eg. Trend Trader), then knowing how to identify when the market is in a non-trending condition is crucial to prevent yourself from making unusual decisions or taking unnecessary risks. 2. In control of the Survival Mode - The Fight-or-Flight response refers to how humans have high tendency of making impulsive decision based on unknown fear. - By managing the Survival Mode , you're truly able to avoid yourself from making irrational decision due to any unusual market condition, such as a sudden volatility spike. - When you're in a deep drawdowns, ONLY think in-terms of probability and possibility . Question yourself: "If I continue trading, would it lead to a snowfall effect?" OR "If I stop trading, would it affect my long-term expectancy?" 3. Emotional-detachment - Great traders always have a Poker face, not because they're inhuman, but because they've been humbled by the markets way too many time. - Sharpen the ability to spot where you have a high tendency to deviate from your plan, then prevent yourself from making impulsive decisions. - Losing traders are in the blue moon when they've got a good position running, and being extremely negative when they're having drawdowns. - If you're overly attached to the results or outcome on any particular trades, it basically hints you that you should probably stop trading and focus on your reflective process. 4. Problem-solver - Avoid being too harsh on yourself. - Trading is a marathon, not a sprint. So stop excessively blaming yourself based on any particular decision, give yourself a pat in the shoulder, and ask yourself "how can i do it better next time?" - Being positive is one huge element in becoming a successful trader. You don't want to get so beaten up until a point where you're nervous clicking the bid & ask buttons. Build up the necessary confidence to understand that you may not win this trade, but in the long-term I will always come out as a winner. Let me know in the comment below what's your worst trading experience! Hope all of you have a good trading week, take care and trade safe. If you enjoy the content, make sure you follow my profile and give me a thumbs up for daily fx forecast & educational content.
KRAKEN:BTCUSDEducation
by TraderNeoh
Why Do You Need a Trading Journal? 📝 Hey traders, 📖 Trading Journal is a crucial element in your trading education. Even though the majority tends to neglect it, in fact, it is considered to be the essential part of a daily routine of a professional trader. In this post, we will discuss why you should keep a trading journal & how it enhances your trading performance. Let's start with the obvious: ✍️ Trading journal is applied for recording your trading positions: winning and losing ones. With that, you can monitor your current performance, identify the mistakes that were made and examine your decisions. ❌ Analyzing the errors you learn your weaknesses & the situations when it is preferable not to trade. You adjust your trading strategy accordingly in order to avoid similar mistakes in future. 💪 Examining the winning trades you learn about your strengths. You identify the trading instruments, the trading setups where your strategy reaches the highest accuracy. ⚖️ Working with the numbers you can measure your investing exposure and calculate your account drawdowns. You can analyze your losing streaks & your long-term/mid-term/short-term account statistics. 📈 Analyzing the figures you can measure your progress over time by comparing your current results with the old ones. 😡 Keeping the record of your emotions, you can measure & quantify the psychological element of your trading. You may calculate the percentage of emotional decisions being made and their effect. 🌟 Consistent journaling makes you disciplined. It teaches you to strictly follow the rules of your trading plan & constantly learn from your mistakes in order to hasten the path towards a more disciplined and profitable trading career. A trading journal should be simple and tailored to your specific trading style and the goals you would like to achieve. I hope that my words will inspire you to keep a trading journal! Do you have the one already? ❤️Please, support this idea with like and comment!❤️
OANDA:XAUUSDEducation
by VasilyTrader
102
Trading Success Isn't As Smooth As You Imagined!Hi traders, here we are on another workshop. In this workshop, I will be elaborating my personal trading journey with my sincerest opinion. Here are 5 stages you will go through becoming a Consistently Profitable trader Phase 1 - Constantly losing big • This phase is where your trading journey begin. You're filled with passion, your subconscious & conscious mind are blinded by the imagination of trading success. • You believed that trading isn't that difficult, and you're one of the top 10% that will achieve consistent profitability within a short period of time. Most of my students and members approached me during their first year of trading, fueled with passion, and thought that they should be achieving their trading goals with limited effort. But the ugly truth is, 80% - 90% of them got smashed by the markets pretty harsh, and left trading later on. • You have no idea what you're doing, you have little to no knowledge and experience. - If this is you, what you should be doing now, is to absorb information like a sponge and keep striving. Phase 2 - Losing less • This is when you come to a realization that you're no different than most of the traders. You're probably scared by the markets, you begin stepping back a little bit. • You realized if you keep doing what you're currently doing, it's just the matter of time you will blow up more accounts again, and again. You clearly know what you're not supposed to do and what you're supposed to do, but with a lack of direction. You absorb everything and you test out whatever information you received. You jumped from strategy to strategy, courses to courses, and webinars to webinars. - If this is you, you should be focusing on identifying your strength & weakness, and stop confusing yourself with overloaded information. Spend more time on reading yourself, and admit your mistakes. Phase 3 - Breakeven • Most traders at this stage have a clear goal and understand what they're doing wrong. But most of them have no clear direction and resources on where and how to begin with. • You probably have a proper trading plan, money management skill, and a healthy mindset, but you just need guidance. - If this is you, I'd suggest you to find mentorship to fast-pace your learning curve. List out all your strategies to examine which one works best by reviewing your journal. Phase 4 - Inconsistent wins • If you're able to achieve this phase, you are one of the very top traders. • Traders at this stage should have a proper trading plan, a specific trading system/ style, with an unbeatable mindset. Remember to NEVER distract yourself again with excess information. - If this is you, you should be working on refinement and improvement. Focus on the details such as the probability of success on each setup, breaking them down into various parts, such as entry timing, effective Trade Management (Scale-in & Scale-Out), exits, etc... - If you are at this stage, remember to NEVER distract yourself again with excess information. Focus. Phase 5 - Consistently profitable • Successful traders 'dance' with the market. Trading has become a systematic process with little to no emotion attached. - What you need to do now, is to focus on scaling up your trading size. You can either compound your account slowly, or start building a solid track records and start finding potential investors. Good traders always trade big, because the ultimate goal of trading is to make money. Do not have the misperception that once you've reached the consistently profitable phase, you should be making a lot of money. Good traders are those who never deviate from their trading plan, with consistency and full of motivation. It's always fine to step back a little bit, as long as you're progressing. Comment down below where are you at in your trading journey! Do not forget to like if you enjoy the sharing. Trade safe and take care.
KRAKEN:BTCUSDEducation
by TraderNeoh
1
Skill VS Luck - Becoming a Consistently Profitable TraderHi traders, here we are on another workshop. Today I'll be sharing some of the points on differentiating skill or luck trading. Majority of the traders have absolutely no clue on are they doing the right things or not? Here's a few key points: Skill 1. Winners and Losers - If you are a skilled trader, you're someone who understand the probable and possible in trading. There's no guarantee on any single trade whether it's a winner or loser. Remember, the short-term outcome in trading is completely random, what's more important is to come out being profitable in the long-term. Never judge your performance based on the short-term outcome, think long-term. 2. Good Risk Management - Good traders always have effective risk management in place. Not any single trade is able cause damage on their capital, and they truly understand how to detach themselves from negative emotions. 3. Repeatable - Good traders have a repeatable process, that allows them to tackle the market in the same way every single day. 4. Proper Planning - Good traders rarely deviate from their initial plan, as they understand that a planned trade is a good trade regardless of the outcome. Any trade taken out of impulsive behaviour, is considered a bad trade regardless of the outcome. 5. Consistency - Good traders have a set of routine and action plan. To achieve consistent results, you must have a consistent performance. 6. Execution - Good traders have little to no hesitation when it comes to executing their trades. They execute their plan without second guessing or doubt. Luck 1. No loser - Most gurus' or lucky traders would promote themselves having 80% - 90% strike rates, which could never happen in reality. The only way you can achieve such a high win rate is to have a Profit Factor of less than 1. In fact, most of the best traders out there have a strike rate of 40-50%. 2. Excessive Risk Exposure - Losing traders have no idea how to isolate themselves from a bad state of mind. They're constantly putting up a lot of risk on the table regardless of having no clue on what's going on in the markets. The sense of urgency is rushing them on taking unnecessary risk. 3. Unrepeatable - Losing traders constantly take trades out of their trading plan, which is not duplicable. If you're taking trades that is unrepeatable, most likely it's a lucky trade and you shouldn't be happy about it even if it turns out to be a winning position. 4. Impulsive Behaviour - Losing traders deviate from their initial plan due to uncontrolled emotion. They're taking trades they're not supposed to take, then regrets later on. 5. No routine - Losing traders have no daily routine. They're always blind firing all over any 'seems' profitable position. Most of them possess of potential over-trading habits. 6. Hope & Praying - Losing traders are constantly looking for the 'best trade' that'd give them an enormous return. Most of them have no trading plan and proper Risk Management in place, causing them to experience an emotional rollercoaster on any particular position when it gets out of hand. "Chains of habit are too light to be felt until they are too heavy to be broken." - Warren Buffett Let me know in the comment below what's your worst trading nightmare! If you enjoy the content, make sure you follow my profile and give me a thumbs up for daily fx forecast & educational content.
KRAKEN:BTCUSDEducation
by TraderNeoh
60
8 Trading Habits of Successful TradersConsistently profitable traders have a lot of things in common. Watching how they act and following their ideas & thoughts we can spot a lot of commonalities among them. In this post, I have collected 8 trading habits that a trader should have to become successful. 1️⃣ - Realistic Expectation & Vision Many traders, most often beginners, commonly fall for the trap of wishful thinking. When analysing the charts, they usually only view the market from one bias and only perceive price heading in one direction. And this is typically the one that their own analysis is pointing towards. However, going into each trade with a realistic expectation that the market doesn't care what you think may happen, and being prepared for a trade to go wrong will help keep you level headed. 2️⃣ - Anticipation of Different Outcomes Anything can happen in financial markets and for this reason, professional traders always justify their decisions in probabilities. They understand that 100% chances do not exist so looking at all possible probabilities before entering any trades, the trader is always ready for completely different outcomes and accepts each and every move given by the market. 3️⃣ - Emotional Stability The market is a wild beast who always wants to bite us and most of the time it manages to do that e.g. drawdowns & losing streaks... Those who trade for at least 1 year know how unpredictable and unstable the market can be. A perfectly looking trading setup can easily turn into a big losing trade. Of course, that is painful and of course with more & more losses, the anxiety will begin to chase us, the stress will overwhelm us and you may begin to start second guessing yourself. Only by remaining stable and calm, you will manage to overcome the negative periods. Learn to control your emotions, learn to take losses! 4️⃣ - Continuous Learning The markets are infinitely deep in their nature. Trading & constant monitoring of the market always unveil new, uncharted elements and things. Throughout all my years of day trading, I can't help wondering how many new things I learn each and every day. With continuous learning you evolve, you become better and it improves your trading performance & results. 5️⃣ - Flexibility & Adaptivity The markets are always changing. If you were trading before COVID crisis, I guess you feel how the reality among us shifted. With fundamental changes in our daily lives, the markets changed as well. It is hard to say what exactly has altered though, however, we all can feel it. In order to survive in a constantly changing environment we must always be adapting and never stagnant. 6️⃣ - Trade Journaling Pro traders always assess their past performance & results. They track each and every trading position that they opened. Both losing trades and winning trades require analysis and observations. Only by studying the past results the trader can improve his trading performance and evolve. Only by identifying mistakes & peculiar commonalities, the trader learns to lose less than he makes. 7️⃣ - Risk Management 90% of traders lose 90% of their funds within 90 days and under 90 trades . This is a well known statistic in the trading industry and aside from psychological factors, it mainly boils down to incorrect risk management. If you're looking to survive in this game and have a long, prosperous career in trading. You must have your risk management locked down. One beneficial risk management habit to develop is to not enter any trades unless they have a risk:reward ratio of at least 1:3+ . 8️⃣ - Trading Plan Sticking to your trading plan is one way of promoting long-term success throughout your trading journey. Undoubtedly, you will go through many psychological ups & downs, mental battles and periods of low confidence. Abiding by your own trading plan will help assist in ensuring that you don't step out of line from your own trading rules and allow you to stop yourself from developing bad habits overtime. 9️⃣ - Constant Practice Professional traders never stop, they always watch the charts, they always monitor the prices, and follow the market. Trading requires constant TRADING. Just spending one single week on a vacation without charts, you can not imagine how hard it is to return back. The trading skills must be constantly maintained.
Education
by NimmoCapital
3 Types of Traders: Which Are You?3 Types of Traders: Which Are you? There are many different approaches of trading the financial markets that has provoked countless methods and strategies to be created over the decades. One popular way to simplify & view this is to break it down into 3 types of traders which is categorised by two main factors which include the trading frequency & timeframes used by each one of the trading types. 1️⃣ Scalper The large majority of beginner traders end up starting out with this type of trading because of numerous reasons. But mainly, this is due to the fast pace that the market moves, presenting many trading opportunities and giving off the perception of an opportunity to get rich quick. Ironically, this trading style is then considered as one of the most easiest and successful ways of trading by beginner traders, while being stated by professional traders to be one of the most difficult. Scalpers often have dozens of trading positions open at a time during multiple trading sessions and need to be in front of the charts at all times. Therefore, paying huge commissions to their broker due to spreads also making this type of trading have a high cost to it. Not to mention the chaos in lower timeframe analysis that eventually results in the majority to stop trading. This is not to say that you cannot be successful with scalping. However, the main obstacle alongside many other with scalping, is the level of constant focus & rapid-decision making required which can have massive negative effects on your overall trading psychology if not kept in check. 2️⃣ Intraday Intraday or day trading is the most popular type of trading amongst retail traders and is what I prefer the most myself. Staying relatively active, the market gives some time for the trader to reflect & think upon their analysis on the pairs they are analysing. Opening and managing on average ~1-2 positions per trading session, the intraday approach offers a degree of freedom. But does come at a cost due to the declining amount of volume and volatility, intraday traders may experience low risk:reward setups because of the average daily range of many pairs on the market. 3️⃣ Swing Swing trading is the best choice for individuals who want to pursue trading while having a full-time occupation outside of trading. This is possible due to this type of trading primarily focusing on the higher timeframes such as daily/weekly for a large proportion of their analysis. Thus, swing trading is not demanding when being combined with an individuals typical daily routine and trading psychology since they aim to catch mid/long-term market movements. With an average trade holding length of 2 weeks and only 1-2 positions being placed per week. Swing trading is regarded to be one of the least emotional approaches and involves low cost of trading with great risk:reward setups. Though, the main problem with swing trading is the degree of patience required when holding out for long period of times. Often resulting in the trader closing their positions too early and not having the ability to allow the positions to reach their final targets. Which type of trading do you prefer?
Education
by NimmoCapital
1