How To: See Which Stocks Are Exploding In The Pre-Market Just as a bit of an addon to my WallStreetBets Stonks video, this is a view of how you can see which stocks are moving up most aggressively in the pre-market.
Trading Psychology
Day Trading Bullish Wolfe Wave ExampleUsing Wolfe Waves can be done, on any time frames and type of trading.
Why? Candlestick AnalysisCandlestick Analysis is the trading language used to understand trading Forex:
Cutting Through The Candlestick Hype-
The use of indicators will not increase the reliability of candles.
There are no advanced candlestick patterns, but there is a deeper understanding of price movements.
Why Use Candlesticks?
Provides a visual picture of what is occurring.
Gives visual insights into others’thoughts and expectations.
Gives visual confirmation signals of support and resistance.
Can visually align your thoughts with the market.
Can visually point to potential reversal points.
Candle Language Produces Thoughts-
Proper trading is said to be proper thinking, but how do we know what to think?
Pattern recognition is a recurring arrangement of price bars that suggests the future movement of prices, which guides our thoughts.
These patterns communicate how traders have acted and what their beliefs (expectations) are in that time frame, at the moment.
Candles provide a picture of those expectations on an ongoing basis.
Those pictures speak to us in “Candle Language”and are the basis for our continuous thoughts and trading decisions.
Miscellaneous Thoughts on Candlesticks: Attempting to define accuracy of candle names or patterns without considering the trend, support and resistance is useless.There are a least 50 different candle patterns, bullish and bearish. Some memorize them, but you will see this is completely unnecessary. While candles are very good at visually showing reversal signals, the signals that do Not work are often the most powerful! All that is needed is a chart of price bars --all else is secondary. While other analysis tools may add additional information, they can only follow existing price action.
How to Determine Market Direction Using Multiple time frameIn this video I try to explain the best way to determine market direction.
Define a uptrend--- Series of higher highs and higher lows
In an uptrend your goal is to buy from a support and form a new higher high
In order for you to buy from a support, your lower timeframe must be in a downtrend
Define a downtrend--- Series of lower highs and lower lows
In an downtrend your goal is to sell from a resistance and form a new lower low
In order for you to sell from a resistance, your lower timeframe must be in an uptrend
Avoid using historical levels to fight market direction
If you can keep these rules, you will always be safe. Few is always more
Thank you and trade safe
The Number 1 Secret To Forex Trading Success? is...The number 1 Secret To Forex Trading Success? (IT IS THIS!)
What is the secret to forex trading success? Is it the trading strategy or is it rick management? Well, all of these are important... But What I think the real secret is this: doing the exact opposite of what most traders do.
If you believe in this ration that 95% of forex traders fail and only 5% achieve forex success, then you need to understand what factors or behaviors case these 95% of traders to fail and what do you do?
Do the exact opposite of what these 95% of forex traders do. Take narrow, less traveled path, it leads to success. Take the wide path, and it leads to destruction. This is the key to success in forex trading.
What Do 95% Of Forex Traders Do Wrong?
1) inadequate funding 2) lack of proper risk management 3) over trading 4) revenge trading 5) lack of emotional control 6) no patience to wait for proper trading setups 7) no trading plan 8) get rich quick mentality 9) counting pips instead of focusing on account growth over a long period 10) cannot accept trading loses as part of the process (Note) Sure you can add a few in your mind but you get the point...
Forex Trading Success Is Very Easy Yet Very Hard To Achieve:
Sometimes I just do not understand myself. I know what to do and yet I do the opposite thing. We all know what we need to do to be successful in FX trading because we have read books, we have traded money ourselves and we know from experience what we did wrong. Yes, next trade repeat same mistakes.
Success in Forex Is To Get Your Mindset Right. Mark Douglas (books/PDFs) and FX you tube has information about trading psychology.
Trade Smarter Not Harder!!!On this GBPCAD 4 hour chart what do you see?
I see largest moves from 2 a.m. to 10 a.m. ( 8 hours) per day. * This is 4th and 5th- 4 hour candle on chart- you could go to hourly to set entries on any trades.
You need to ask yourself how can I catch the daily trend and make 40 pips to 80 pips daily on this pair? Break it down, risk management, lot size, etc...
If I use 4 hour chart, can I catch the trend with a larger stop loss and higher target, make sure you have a 1:2 or higher risk reward set up. So, could be 20 pip stop vs 40 pip target or higher per trade.
If you look at any 4 hour pair, you will notice when they move and do not move- just wait for trend of daily- do not trade side ways (unless you do that).
Also, before trades look for four things:
1) right pair
2) right price
3) right session
4) right time
* If three or four of above align up, then think of setting up a new trade.
Becoming a Successful Trader is a Process of EliminationBecoming a trader is not a journey for the faint of heart. Becoming a successful trader is ultimately an act of determination . Not unlike the titular character of the John Wick trilogy (Quadrology? Pentology?), we traders have to be "a man of focus, commitment, sheer will." (and I'm certainly not being sexist... this goes for you female traders as well!) We have to get up early, stay up late, follow a routine, backtest, journal, rinse, and... repeat... and repeat ... and REPEAT .
Focus . Commitment . Sheer will .
Ultimately, the journey of becoming a successful trader is a process of elimination, not much unlike Michelangelo sculpting his great masterpiece, David, from a mediocre piece of marble . Reportedly, someone asked the artist how he made such a magnificent sculpture from the hulking slab of what was a previously abandoned project – literally a 'leftover' piece of marble. His reply was "Simple... I just chipped away all the parts that weren't David."
Likewise, the successful trader we want to be is inside us... we just have to chip away all the pieces that are "un-traderlike".
Early in my trading journey I had several friends, who career-wise, were in "high places", who tried to convince me that the road I was about to travel was a pathway to failure. One is a fund manager who oversees 8-figure retirement accounts for wealthy clients. Another friend is an industry recognized globetrotting auditor for Fortune-100 clients. Another friend was a nuclear engineer. (All smart cookies, right?) All three tried to sway me from my plans of becoming a trader by recounting stories of friend after friend who lost their homes, lost their fortunes, lost their marriages, lost their minds, etc. after losing their proverbial shorts in the markets. Their universal theme: "Trading is a path doomed for failure. It's legalized Gambling! Nobody makes money trading."
Well, friends, just watch the news... somebody is making money in the markets, and the secret to success is to do what successful people do. My motto: "Do what successful people do, get what successful people got." Just because you are a successful accountant, a successful investor, a successful nuclear engineer, it doesn't make you a successful trader, and it's hard to take advice from someone who you respect, but has no experience in the field they are pontificating on, saying, "you can't make money doing 'X' " if they themselves have never done it.
I'm not going to listen to my brother for financial advice... he's broke.
I'm not going to listen to my uncle for marriage advice... he's been divorced 3 times.
I'm not going to listen to my brother-in-law for business advice... he's started and shut down 10 businesses in 5 years.
Likewise, I wasn't about to listen to anyone, friends and family included, who have never traded tell me that I can't become a successful trader.
It is said that you are the average of the five people you spend the most time with . If we want to become successful at trading, we have to associate with successful traders ... and we have to simply do what they did to get what they've got . We not only need to take on certain new behaviors and attitudes... more importantly we have to stop doing certain activities and stop believing certain things to start heading in the direction we want to go in our trading, or any aspect of our lives for that matter. These are the things that are preventing us from being successful. We have to take away all the "bits that aren't trader-like" and become the magnificent trader we are destined to be.
This is a simple process of elimination.
Elimination Point 1: Eliminate or limit relationships that do not support you and your goals.
I had to 'eliminate' or limit some relationships (as mentioned above, people who never traded before trying to tell me that "nobody makes money trading"), and establish new relationships (those among the trading community who are successful at trading) and follow in the footsteps of the successful. One of my mottos as I alluded to before is: "If you do what successful people do ... you will get what successful people've got ."
Why spend time with or take advice from someone with literally zero experience in a field they feel qualified to pontificate about?) Just look at all our FaceBook "friends" who think they're qualified to give advice on immunology, virology, or geopolitics of the Middle East. Turn that noise off... Ain't nobody got time for that!
Elimination Point 2: Eliminate or limit activities that do not move you forward in your goals.
I love movies. One of the reasons (well, the primary reason) I built my home was that I could build my dream home theater in its massive bonus room. It has 2-tier seating, a 144" projection screen, an ear-splitting loveseat-pounding surround sound system, custom cabinetry, and so on... I would binge TV shows (7 seasons of 24, 5 seasons of Breaking Bad), I would have Movie Marathons (9 Star Wars films, 6 Middle Earth movies, 8 Fast & Furious films) and host monthly movie nights with our friends. Other hobbies included woodworking, writing, getting on the JetSki several times each week, not to mention all my other 'commitments'.
We live fast-paced, hectic lives full of 'good' things. However, our glasses are full . In order to add "developing my trading skills" to our glass we have to "empty" that glass of 'good' things in order to make room for 'better' things. This can be a very difficult thing for us to admit: We have to sacrifice the "good" for the "better." My movie routine is now simply Friday afternoons with friends and a twice-a-month movie "date night". I'm not on the lake as often as I'd 'want' to be but I'm still getting out on the 'ol SeaDoo. I haven't done a recreational woodworking project in a long while. Freeing up or reorganizing my time gave me the ability to spend at least four (and sometimes eight) hours per day to hone my trading skills and develop my own consistently profitable trading system...
Every day we need to focus on whittling away bad habits and building on good habits ... Every day we need to build our trading psychology from "I hope I can trade full time someday" to "By doing what these successful traders are doing I will get what I deserve after my consistent efforts in short order!" We need to change our commitment level from "I'll find time to fit in learning how to trade when I can" to "I'm committing the time to develop this skill in order to never be dependent on an employer, customers, on the economy, ever again!" And day by day I and my fellow traders who followed this philosophy alongside me were committed to build our trading performance from a 20% win rate, to a 40% win rate, to a 60% win rate... to where we now have a reliable, consistent income from the markets.
Elimination Point 3: Eliminate all education channels but one: Become an education minimalist.
One of the blessings of the internet today is the plethora of information available about trading. One of the curses however is you can easily find yourself "spinning plates" jumping from guru to guru, watching video after video, following technique after technique and six months later after spending hour after hour doing all that you find you are no farther ahead in your trading journey than when you started. (I speak from personal experience!) I one day decided to simplify : simply look at the trading styles of all my favorite traders and choose one single trading method which I thought would be the best fit for me. My goal was to turn my light bulb into a laser .
Fun fact: a 5-watt light bulb will barely keep a muffin warm. A 5-watt laser will cut through steel . If you focus all of your energy and efforts into one spot , you can literally burn through the barriers that have been holding you back from becoming the trader you want to be, the trader that you need to be.
What one technique do you know, which one mentor or trader do you respect, which one timeframe can you focus on, what one market will you trade over and over until you have the win rate you need to take your trading full time ?
Elimination Point 4: Excuses. Eliminate them!
It has been said that "Excuses are reasons wrapped up in a lie." We can all justify, give a 'reason' for why we can't wake up early, why we can't stay up late, why we can't carve out 90 minutes per day to develop our skill, why we can't commit that first $10K in capital, why we can't join that trading group...
You can make Money , or you can make excuses . You can't do both.
Find the reasons you can and will do what you need to do to get what you are committed to get. Put together a playlist of inspiring music. Put your alarm clock on the other side of the room. Read The Miracle Morning . (More importantly, don't just read it, DO the Miracle Morning!)
We don't have the time to do everything in the world that we want. But we do have the time to do everything that we need to do that is important . If you "don't have time" to trade or develop your skill to the next level then it's just not "important" enough. If you really want to be a successful trader, (the great) it has to be important enough that it will usurp the time previously committed (or squandered) on other activities (the good).
Take 15 minutes to look at what people, activities, excuses, you need to eliminate or limit, and what habits, routines, and relationships you will add or magnify in your life. Then put those items on the calendar and as the most successful ad campaign in history commands, "Just Do It!"
Trade Well!
These 4 Reversal Candlestick Patterns (Know Them)Please google, you tube or PDF all of these following FOUR candlestick reversal patterns, so you can win at trading Forex. (look at them on chart too)
1) Harami candlestick pattern- Bearish or a Bullish Harami, the pattern will contain two candles and the second will be smaller than the first. Harami actually means pregnant woman in Japanese, which makes sense when you consider this signal's shape: the second candle is enclosed within the body of the first. You can think of the second candle as the first candle's baby belly!
2) Pinbar candlestick pattern- A pin bar pattern consists of one price bar, typically a candlestick price bar, which represents a sharp reversal and rejection of price. The pin bar reversal as it is sometimes called, is defined by a long tail, the tail is also referred to as a “shadow” or “wick”. The area between open and close of the pin bar is called its “real body”, and pin bars generally have small real bodies in comparison to their long tails. The tail of the pin bar shows the area of price that was rejected, and the implication is that price will continue to move opposite to the direction the tail points. Thus, a bearish pin bar signal is one that has a long upper tail, showing rejection of higher prices with the implication that price will fall in the near-term. A bullish pin bar signal has a long lower tail, showing rejection of lower prices with the implication that price will rise in the near-term.
3) Engulfing candlestick pattern- The engulfing candlestick patterns, bullish or bearish are one of the easiest of candlestick reversal patterns to identify. Because these candlestick patterns are two-candlestick patterns, they are more valid and are often looked upon as reversal patterns. As with any candlestick pattern, the bullish or bearish engulfing pattern takes more priority depending on the time frame that they are formed on.
4) Doji candlestick pattern- A Doji is a candlestick pattern that looks like a cross as the opening price and the closing prices are equal or almost the same.
When looked at in isolation, a Doji indicates that neither the buyers nor sellers are gaining – it’s a sign of indecision. There are different types of Doji candlestick patterns, namely the Common Doji, Gravestone Doji, Dragonfly Doji, and Long-Legged Doji. Before acting on any signals, including the Doji candlestick chart pattern, one should always consider other patterns and indicators.
All of these can not be traded ALONE, but need other confirmation too trade. Like at supply and demand, in golden zone of fib (50%-62% area), etc...
HOW TO: Trading the WallStreetBets Stonks with Cascading StopsHadn't seen any videos of anyone doing something as silly as this (which of course fits into the WSB philosophy) so thought I'd make a video of it and share it in case it amused or inspired anyone else.
Just something I have been having a bit of fun with over the last couple of weeks.
You could do this with any broker, but I REALLY like the simplicity of doing this all within TradingView and using TradeStation as the integrated brokerage free broker.
Note: You would not do this if you were paying brokerage.
What I do is:
1. Create a list of WSB type stocks.
2. Watch in the pre-market to see which ones are getting the attention.
3. Try and buy as early in the move as your broker allows.
4. Add a stop loss a bit below your buy price - eg 5% or so. Nice and tight.
5. As the stock price moves up, start to break down your stop loss into lots of mini stops.
Idea is that as the stock moves up, you are moving your stops up, BUT rather than one big stop that gets your whole holding exited, you can place lots of smaller stops (even place some ahead of the price) so that as volatility happens you auto exit some of your position hopefully taking profit along the way.
Rinse and repeat.
Definitely NOT trading advice. As before, it really is a silly idea, but hey its also a bit of fun for now and seems to work reasonably well for these kinds of stocks that spike big in one day and then start to equally quickly pull back.
Might be better to simply buy and hold them, but you never know when they will inevitably come crashing down, and more so which one is going to be the focus of the day.
Like and subscribe if you like it.
One of those videos you can skip through once you see the initial concept...
Some Rules To Improve Your TradingGuild lines For Forex Traders
In the following chart, listed some rules that can help investors improve their investment decisions. These guidelines come from experience and not necessarily based on new theories.
1) Know Yourself (scalping, day trading, swinging- what is your personality?)
2) Put Your Ego Aside (FX has a 6 trillion dollar per day rollover in money- it does not care about your ego, so leave it out of trading).
3) Hoping and Praying Do Not Guarantee Success. ( 50% of trading is from neck up other 50% of trading is preparation and planning)
4) Learn To Live With Losses (No system, plan, edge or strategy has a 100% win rate)- use risk engagement always when trading).
5) Never Double Losses( if trade is going wrong direction, do not keep moving stop loss further and further- just expect loss and move on)
6) Know Your Pain Level ( How large is your account? Using 1% or 5% per trade? What is a pip worth of movement? stop loss and target)
7) Diversify The Risk ( You could only trade one FX pair always, or maybe only around 100 ADRs (which I do)- around 8 to 10 per week)
8) Making Money By Trading Is Hard Labor/Work (You can slowly grow account, compounding, lot sizes, etc... but no Lambos without the hard work).
9) Intuition versus Execution of a trading concept/strategy (Demo versus Real trading is 100% different. Why? you have real money).
10) The importance of a trading plan (Keep your trading plan and edge simple- put it all on one 4 x 4 note card)- Simple works in FX trading)
11) Feel comfortable with your trading strategy (back test any strategy at-least 100 times on TV or a FX simulator program)
12) Nothing is more important than discipline (In life discipline and patience will get you further then wanting everything today or yesterday).
13) Value your trading concept (You need to be confident your strategy works even after a string of losses)
Remember the following four items before entering any new trades: Right pair, Right price, Right Session & Right Time. Also, win big, win small, lose small but never ever lose BIG.
The Curve -watch as Price bounces to set up for a bullish moveThe Curve is a visual representation of Wyckoff method although not designed with Wyckoff in mind it was made over a 9 month period of watching the market and making a ruleset that supports everything I saw in the market. There are 5 stages. Each stage bounces from Bollinger band top to bottom. Except stage 4 which is a continuation of 3 at the midpoint of a curve....usually in Re-accumulation. Price action will hug the upper bb a few candles before dropping to hit the bottom Bollinger Band for stage 5, also called The Spring/Launch. This then goes for a New high if retail is cooperating. it is also the lowest volume part of the curve. In this chart you can see institutional buying setting up to make a very bullish run as it fullfills each stage in just about 5 candles. Why else would it do this if not to full fill each stage and be on stage 5 going to stage 1 for the new high. Of course each stage breaks down into something else in wyckoff method. Which is usually:
1. Buyers Climax
2. Major sign of weakness
3/4. Into Up Thrust After Distribution
5. to Spring or final dip into liquidity
Finally back into
1. Which is the free ride up to create a new higher high.
All my ideas have the Curve represented or are part of the the analysis regardless if stated or not. It is the fundamental basis of how I trade.
As I never looked at any other teachings until 2 months ago when I found wyckoff as I was curious as to what the logical explanation of what I saw was.
Thank you.
if you like ideas like this or want to see more of these please comment below, like, subscribe, and share. As its the only way I can tell if you are actually into this or not.
by iCantw84it
06.08.2021
Two Different Trading StylesShort Term
Daily/Hourly/Min profits
Get in and out quickly
Heavily Technical
Use Indicators
News are important
Price Action is important
Loss and Wins
Retail Traders
Long Term
Monthly,Weekly profits
Cant’s get in and Out quickly
Heavily Fundamentals
Use Indicators …haha
News are important
Create Price Action
Only Wins
Institutional Traders
Time frame differentiates us. And also " How Much Money You Have"
4 dangerous states of a trader. Obsessive Compulsive Trading1. I must always be right
"The key to dealing with probabilities is good money management"
Unfortunately, many traders are unable to admit their own mistake. This is an internal attitude to one's own unconditional righteousness. In this case, they will blame anyone and anything for their loss, up to the forces of nature. Any market is a system of probabilities. This means that even the best trade can be a loss.
2. I must know everything
"Reduce unwanted psychological stress when making decisions"
Some traders believe that they can gain a very significant advantage by studying and considering literally every aspect of trading. News, economics, political background and indicators of all indicators. However, this is too much information, and it will lead to severe psychological stress.
Ultimately, this approach will provoke a phenomenon known as "analytical paralysis", when, due to a large amount of conflicting facts, a person falls into a stupor and is unable to make a final decision. Rely on what you understand and understand well enough.
3. I have to control everything
“Microcontrolling” the market in general and open positions in particular is very dangerous. It leads to overly emotional trading.
And this is already a direct road to impulsive deals, disruptions to the trading plan, ill-considered decisions and irrational reactions. This is a direct result of the inability to psychologically “disconnect” from the market. First of all, you need to believe in your trading system and trust it. And only then invest real money in it. Remember if you have a hobby or an interesting activity outside the market? Switch your attention to any topic not related to trading.
4. I constantly have to be in the market
"It is very easy to become addicted to the market and let it control your thoughts and emotions. When the market is the only thing you can think about, that is very bad"
Such dependence on the market, in its essence, is not much different from any other dependence, and this is already an extremely dangerous situation.
Overcoming this addiction can be very challenging. Development of your own trading system, which you completely trust, can help in this. And besides, a clear understanding of their actions in the market, drawing up a trading plan and its implementation. To some, such recommendations may seem trivial and sore. Perhaps I agree. But they still will not lose their relevance. Successful trading!
Power of compounding interest, but why do traders still fail ?
Hello everyone:
Welcome to this quick educational video on Compounding interest in trading.
Today I want to break down the benefits of compounding a trading account while keeping good risk management at bay.
The reason why compounding interest is so lucrative is due to investing interest on top of interest, and your trading account can grow much faster than traditional investment returns.
The important note is that, by having strict risk management rules, proper trading plan, the account can grow over time. But why do many traders fail to do so ?
Let's take a deeper look into this:
Many new/beginner traders often get involved in trading due to its profitable potential.
However, most of them do not learn about risk management, trading psychology on mindset and emotions.
They tend to over trade, over leverage their accounts in hope to double it in a short period of time.
This almost always leads to traders to blow their accounts, and re-deposit more money to “chase/revenge” their losses, and the cycle continues.
The truth is, growing the account by compounding can eventually double a trading account, but only in time and with strict risk management rules.
However, the greed, emotion and mindset often become the tread stone for the traders’ success.
It's important to understand that having a consistent, sustainable approach in trading can lead to profits and growth over time, but it's not something that is instantaneous, which is what most new/beginner traders often misunderstood.
This can be due to social media, and lots of typical trading “guru” out there promising guaranteed results and easy money.
Take a step back and think about compounding interest in time and scale. 5-7.5% return per month may not seem much for a small trading account, but it is sustainable and consistent by not over-risking and over-trading.
In time when the account is at a larger scale, a few % return with compound effect in a year can generate very sizable return and growth.
In today’s trading industry, there are many prop firms out there that allow you to trade their funds, if you can be consistent and sustainable.
Understand these firms are not looking for traders to double their larger capital, rather, to have consistent return and proper risk management.
When you can prove you can be consistent to compound a small account, then when you actually do trade a larger account, the % return would be the same.
Last Note:
Build up the right habits from the start. Your job in the beginning of trading is not to make massive returns, rather to focus on risk management, control emotion, and understand trading psychology.
Once all these are checked, then you will be miles ahead of other traders who are still struggling to understand the concept.
Any questions, comments or feedback welcome to let me know.
Thank you
Jojo
BASICS OF SAVING & INVESTMENT | RULES YOU SHOULD NEVER BREAK
Debt and living on credit is a universal norm .
While the "wisest" among us are trying to persuade themselves how they "hack" the system buying on credit card smartly, the richest among us keep following totally different commandments .
You must remember that debt makes you dependent , it makes you submissive to the system.
To become truly free and wealthy, here are the simple rules that will change your life if you follow them:
1 - Spend less than you make
2 - Do not save what is left after spending, but spend what is left after saving
3 - Invest the rest in the industries that you understand
4 - Never borrow to invest
5 - Stop trying to get rich quick
6 - Never let your emotions intervene
7 - Patience pays
The rules by themselves are very easy and straightforward, however, most of us are not disciplined enough to follow.
Learn them, try them, practice them and one day you will become free!
❤️ Please, support my work with like and lovely comment !❤️
It truly helps!
Thank you!
BASICS OF SAVING & INVESTMENT | RULES YOU SHOULD NEVER BREAK
Debt and living on credit is a universal norm.
While the "wisest" among us are trying to persuade themselves how they "hack" the system buying on credit card smartly, the richest among us keep following totally different commandments .
You must remember that debt makes you dependent , it makes you submissive to the system.
To become truly free and wealthy, here are the simple rules that will change your life if you follow them:
1 - Spend less than you make
2 - Do not save what is left after spending, but spend what is left after saving
3 - Invest the rest in the industries that you understand
4 - Never borrow to invest
5 - Stop trying to get rich quick
6 - Never let your emotions intervene
7 - Patience pays
The rules by themselves are very easy and straightforward, however, most of us are not disciplined enough to follow.
Learn them, try them, practice them and one day you will become free!
❤️Please, support my work with like and lovely comment!❤️
It truly helps!
Thank you!
