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Tradingpsyhology

Ninja Talks EP 28: Don't fall for the sub!I often talk about awareness being the cornerstone to any success, wether it be financial, physical or mental - but how many actually do it? For a whole week the western world was infatuated with a missing make-shift submarine lost at sea on its journey to explore the Titanic.  Is it beneficial to us? Who decided that's what we should be all focusing on? It's irrelevant news. Yet the loose attention span of Bambi's throughout the world was so apparent to see, because when you don't refine your awareness daily - you give that power to someone else. Many didn't turn it into content. Many didn't see how they could profit from it. But most importantly many didn't even consider that there attention was being manipulated in real time to focus on irrelevancy and negativity. It doesn't empower or fill you with drive, so why do it? Awareness of my surroundings is the "cheat code" I've been using for years and the results speak for themselves, I work for myself and by myself taking trades and pumping content from the comfort of my own phone no matter where I end up in the world, if I have an internet connection, I'm good to go! How many of you can say the same?  Truly. Not to diminish your current state, but how fluid are you in your life? When you desire to do something, can you? Or are you continually restricted by outside circumstances? Just questions. Keep your blades sharp Ninja!
NASDAQ:TSLAEducation
by NinjaTradingServices
Ninja Talks EP 26: Shocking Success Revelation of a Feline Earlier this morn, I was perched upright on my cozy outdoor chair in my garden enjoying a well earned Cuban. With the sun kissing my skin and the great release of energy I felt with every exhale of my cigar I was content, lost in thought, happy - still, but then to my surprise I was startled by a subtle movement off to my left on the bright green grass I cut days prior.  It was my Persian cat Leo, the feline was in hunt mode, completely oblivious to my onlooking observations, but it didn't matter he was zen.  Even though the sun was shining bright white there was a slight breeze that would brush the also bright white fur of Leo, rustle the trees and cascade noisy dried up leaves down the path - he was aware of it all, ears twitching and eyes wide, he missed nothing but, he was looking for a target and by golly he saw one down in the foot of a tree 6ft away from him. A Robin red breast collecting dried plant matter to blanket its young back at the nest. The Persian nustled down deep into the ground, making itself a flat fluffy invisible killing machine - as the Robin danced just outside of reach Leo didn't move, completely still, not even for an instant showing his intention. After a quick back and fourth of daring bravery on one hand and simple cunning on the other the Robin flew off, to which Leo - not at all dejected or defeated - reset, raising his body higher, leaving hunt mode and entering back into listening mode. This is an elite level trader personified. Silent. Ready. Prepared.  When the trade is close (just like the Robin), but it does not qualify totally and completely to your strategy, you do not pounce, you wait. Make sense? You stop. Reset. And start the hunt again. The hunt is what's enjoyable, not necessarily the prize. Think about that the next time you "see the Robin" in your own trading. Ninja out. Follow for more Ninja Talks.
AMEX:SPYEducation
by NinjaTradingServices
A Good Trader?It's fascinating to hear about your journey as a content creator and now as a trader. It seems like you have a strong understanding of personal finance and the importance of stability in achieving your goals. Building a stable income and meeting your basic needs is indeed crucial before diving into trading full-time. - You make an important point about the misconception many beginners have regarding trading, expecting high returns and win rates right from the start. It's essential to have realistic expectations and focus on consistent progress rather than aiming for extraordinary gains immediately. - Understanding the role of capital is also significant. While a smaller account may require higher returns to meet income goals, there are options like prop firms that allow for more substantial capital and lower return targets. Managing risk and being consistent are key factors in trading success. - You emphasize the importance of continuous learning and improvement, which is an excellent mindset to have. Learning from failures and applying those lessons to other areas of life can lead to personal growth and development. - You also touch on the significance of personal finance in trading. Getting your personal finance in order, paying off debts, ensuring consistent cash flow, and having savings are crucial steps before embarking on a trading journey. - Achieving consistency in trading takes time and effort, and it's encouraging to hear that you have made progress in that regard. It's great that you focus on risk management, trade management, and trade psychology, as these are all fundamental aspects of successful trading. Overall, your journey and insights provide valuable lessons for aspiring traders. It's important to approach trading with a realistic mindset, prioritize personal finance, and continuously strive for improvement. Thank you for sharing your experiences, and I wish you continued success on your trading journey.
AMEX:SPY
by A1TradingHub
The Psychology Of Trading: How To Manage Your Emotions.The significance of psychology in trading cannot be overstated, as it serves as a cornerstone for achieving success. Failure to acknowledge its importance can have disastrous consequences. A notable example is the case of Nick Leeson, who single-handedly caused the downfall of the venerable 200-year-old Barings Bank, a financial institution of such stature that even Queen Elizabeth II entrusted her funds to it. The losses incurred amounted to a staggering 2 million pounds, highlighting how the lack of emotional control in trading can lead to catastrophic outcomes. Understanding and managing one's psychological state is crucial for traders at every level, without any exceptions. It holds true for beginners who may be working with a modest capital of a few hundred dollars, as well as for seasoned professionals who operate with million-dollar deposits. The ability to control emotions, maintain a disciplined mindset, and make rational decisions amidst market fluctuations are vital components for long-term success in trading. By recognizing the impact of psychology and taking steps to develop a strong mental framework, traders can navigate the complexities of the financial markets with greater resilience and achieve their desired outcomes. What Is Trading Psychology? Trading psychology encompasses the behavioral aspects that shape an individual's actions within the realm of financial markets. These actions range from identifying optimal entry points to executing profitable trades. Renowned trader and fund manager William Eckhardt once remarked that intelligence is largely unrelated to success in trading. Based on his observations, individuals of average intelligence, yet diligent in their approach and possessing discipline and self-control, consistently achieved trading success. This observation underscores the crucial role of psychology in trading. Only through complete control over one's actions can traders earn stable profits, rather than relying on occasional wins. The development of trading psychology is a process that unfolds over time. Beginners often find themselves prone to making repetitive mistakes, but with a focus on self-control, they can cultivate these necessary qualities. The key lies in the ability to learn from one's own mistakes and grow from them. By recognizing and addressing psychological factors such as fear, greed, and impatience, traders can enhance their decision-making abilities and gain a deeper understanding of market dynamics. Through continuous self-reflection and a commitment to personal growth, individuals can refine their trading psychology, leading to more consistent and successful outcomes. How Do I Handle My Emotions As A Trader? Indeed, while constant practice and self-control are essential components of addressing psychological challenges in trading, a more detailed approach is necessary for effectively resolving these issues. Below are some key strategies that can contribute to overcoming psychological obstacles in trading: 1) Self-awareness: Develop a deep understanding of your own psychological tendencies, strengths, and weaknesses as a trader. Recognize the emotions and biases that may influence your decision-making process. 2) Journaling: Maintain a trading journal to record your thoughts, emotions, and actions during trades. This practice can help you identify patterns, errors, and areas for improvement. Regularly review and reflect on your journal entries to gain valuable insights into your psychological state while trading. 3) Emotional regulation: Learn to manage emotions such as fear, greed, and impatience. Implement techniques like deep breathing exercises, meditation, or mindfulness practices to cultivate emotional stability and prevent impulsive decision-making. 4) Risk management: Establish and adhere to a well-defined risk management plan. Determine the maximum acceptable level of risk for each trade and set stop-loss orders accordingly. This approach can help mitigate the negative impact of emotional decision-making during turbulent market conditions. 5) Positive reinforcement: Celebrate your trading successes, regardless of their magnitude. Acknowledge and reward yourself for following your trading plan and executing disciplined trades. This positive reinforcement can strengthen your confidence and reinforce desirable trading behaviors. 6) Continuous education: Invest in expanding your knowledge and skills through ongoing education. Attend trading workshops, webinars, and seminars to enhance your understanding of both technical and psychological aspects of trading. Engaging with a community of traders can provide valuable support and insights. 7) Seeking support: Consider joining trading forums or finding a mentor who can provide guidance and support. Discussing challenges and sharing experiences with fellow traders can offer fresh perspectives and encourage personal growth. Remember, addressing psychological challenges in trading is an ongoing process that requires dedication and perseverance. By implementing these strategies and adapting them to your individual needs, you can develop a robust psychological toolkit to navigate the complexities of the market and enhance your trading performance. Learn To Rest Trading is undoubtedly associated with stress, and it is crucial to find effective ways to alleviate psychological pressure. No one can sustain constant worry about open trades or missed opportunities without experiencing negative consequences. Just as athletes prioritize physical and mental preparation before important games or competitions, traders can benefit from a similar approach. Taking care of both physiology and psychology is essential in achieving a balanced state of mind. To effectively manage stress in trading, consider the following recommendations: Establish a routine: Create a structured daily schedule that includes not only trading activities but also time for physical exercise, relaxation, and leisure. This routine helps maintain a sense of balance and prevents trading from becoming the sole focus of your life. Physical activity: Incorporate regular exercise into your routine. Engaging in activities such as going to the gym, taking walks, or participating in sports can help reduce stress, improve overall well-being, and promote mental clarity. Healthy lifestyle: Pay attention to your diet, sleep patterns, and overall self-care. Eating nutritious meals, getting sufficient sleep, and practicing relaxation techniques like meditation or deep breathing exercises contribute to a healthier physiological state, which in turn positively impacts your psychological well-being. Maintain social connections: Engage with friends, family, and fellow traders to maintain a support network. Sharing experiences, discussing challenges, and seeking advice from trusted individuals can alleviate feelings of isolation and provide valuable perspectives. Take breaks: Allow yourself regular breaks from trading to recharge and rejuvenate. Stepping away from the screen, engaging in hobbies, or spending time in nature can help reduce stress levels and provide a fresh perspective when you return to the market. Mindfulness and stress management techniques: Incorporate mindfulness practices into your daily routine. Techniques such as meditation, deep breathing exercises, or visualization can help calm the mind, increase self-awareness, and improve resilience in the face of stress. Remember, trading should be a part of your life, not the sole focus. By nurturing a well-rounded lifestyle that includes physical activity, relaxation, and maintaining social connections, you can effectively manage stress, enhance your psychological well-being, and ultimately improve your trading performance. Don't Focus On The Problem And Find Unconventional Solutions Trading is inherently dynamic, and challenges are bound to arise. Profitable strategies can lose their effectiveness over time, and market conditions evolve, rendering old analytical methods obsolete. It is important to recognize the risk of becoming fixated on a specific problem without finding a guaranteed solution. One common example is the endless pursuit of optimizing a trading strategy. Traders may dedicate days or even weeks attempting to fine-tune a strategy, only to find their efforts in vain. In such situations, it is crucial for traders to possess the ability to recognize when to let go and seek alternative approaches. If attempts to optimize an existing strategy prove futile, it may be time to explore new strategies or even consider a shift in trading style altogether. Adaptability and the willingness to embrace change are essential qualities for traders. Instead of becoming overly attached to a single approach, being open to non-standard solutions can be immensely valuable. This might involve exploring different trading methodologies, incorporating new indicators, or even considering alternative markets. Finding a new strategy or adjusting one's trading style requires a combination of self-reflection, continuous learning, and experimentation. Being proactive in seeking innovative solutions ensures that traders can navigate evolving market conditions and maintain a competitive edge. Remember, trading is a dynamic endeavor, and the ability to adapt and explore new possibilities is key to long-term success. By embracing change and being open to new strategies, traders can navigate the challenges that arise and continue to thrive in the ever-changing landscape of the financial markets. Fearless Analysis Brett Steenbarger's analogy between trading analysis and the principles of Alcoholics Anonymous highlights an important aspect of personal growth and development in trading. Just as it takes courage for individuals to admit their problems and seek help in recovery programs like Alcoholics Anonymous, traders must also be willing to acknowledge their mistakes and take responsibility for their actions. In the trading world, it is common for individuals to deflect blame onto external factors such as the market, market makers, or indicators, rather than accepting their own errors. However, true progress can only be achieved when traders are mentally capable of saying to themselves, "I made mistakes, and that's why I lost money. The external factors played a minimal role." By embracing this mindset, traders can take ownership of their actions and begin the process of self-improvement. Accepting personal responsibility for mistakes allows for self-reflection and learning from past experiences. It enables traders to identify areas for improvement, refine their strategies, and develop a more disciplined and effective approach to trading. Acknowledging the problem is indeed the first step toward finding a solution. This fundamental principle holds true not only in trading but in all aspects of life. By confronting our shortcomings, we open the door to personal growth and development. It empowers us to make necessary changes, learn from our mistakes, and ultimately enhance our trading performance. In summary, having the courage to admit mistakes, taking responsibility for one's actions, and acknowledging the role of personal accountability are crucial steps in the journey toward becoming a successful trader. Evaluation Of Hypothetical Scenarios Being prepared for all possible scenarios is a crucial aspect of successful trading. Relying solely on one scenario and assuming a 100% guarantee is unrealistic and leaves traders vulnerable to unexpected market movements. For instance, in the case of a well-established downtrend where a currency pair consistently breaks through support levels, it may appear likely that the trend will continue. However, it is important to acknowledge that no outcome can be guaranteed with absolute certainty. While the probability of a reversal might be relatively low, it is still essential for traders to evaluate this scenario and consider potential levels where the downward movement could potentially halt, as well as identify potential targets in case of a reversal. By considering multiple scenarios, traders are prepared for different market outcomes. If one scenario fails to materialize, they can quickly shift to their backup plan of action. This approach avoids panic and ensures a clear understanding of the unfolding market conditions. It benefits traders both emotionally, by maintaining a composed mindset, and practically, by helping to recover from any potential drawdowns. If losses occur according to the first scenario, the backup plan allows for swift recovery and helps compensate for the incurred loss. Having multiple scenarios and contingency plans not only provides traders with a more comprehensive approach but also fosters adaptability and resilience in navigating various market conditions. It enables traders to effectively manage risk and make informed decisions based on evolving market dynamics. In summary, a trader's ability to embrace multiple scenarios and swiftly switch to alternative plans when necessary contributes to emotional stability, risk management, and the potential for recovering from losses. Being prepared for all possibilities strengthens a trader's overall strategy and increases the chances of achieving consistent profitability. Detached Attitude To Trading In the world of trading, the psychology of the quiet trader refers to the ability to approach trading with a calm and detached mindset, devoid of intense emotional reactions. While it may be unlikely to experience intense emotions in a typical day job, achieving a similar state of detachment and routine in trading is a valuable skill to develop. At the beginning of their trading journey, it is natural for traders to experience a range of emotions that can interfere with decision-making. However, with consistent practice and experience, the trading process can become more routine and automatic. Placing orders and managing positions should become a habitual process that no longer elicits strong emotional reactions. Larry Hite, a renowned trader featured in Jack Schwager's book "Stock Market Wizards," highlighted the importance of trading being utterly boring. Hite's trades were devoid of captivating stories that interested his colleagues. This perspective underscores the idea that successful trading involves striving for consistency and routine in every trade. The art of trading lies in developing a disciplined approach where all trades become similar to each other. This means treating each trade as part of a well-defined strategy, adhering to predetermined rules, and executing trades without being swayed by emotional highs or lows. By cultivating this mindset, traders can maintain a calm and objective perspective, making sound decisions based on analysis and strategy rather than being influenced by fleeting emotions. It is important to note that achieving the psychology of the quiet trader requires ongoing practice and self-awareness. Emotions may still arise, especially during challenging market conditions, but the goal is to minimize their impact on trading decisions. Through continuous learning, self-reflection, and discipline, traders can strive for a state of emotional detachment and routine in their trading activities. In summary, the psychology of the quiet trader emphasizes the importance of approaching trading with a calm and detached mindset. By striving for routine and consistency, traders can reduce the influence of emotions and make objective decisions based on their trading strategy. Developing this skill requires practice, self-awareness, and a commitment to ongoing improvement. Keeping Track Of Your Actions Keeping a trader's journal is often overlooked by many beginners in the trading world. It may initially appear unnecessary, as the signals and trades seem clear in the moment, leaving no room for the perceived time wastage of jotting down notes. However, this approach ultimately deprives traders of a valuable foundation for future trade analysis and improvement. While trading reports can be downloaded from the trading terminal, they are not an adequate substitute for a trader's journal. Trading reports typically only include basic information such as trade details (entry and exit times), closed position results, and expenses incurred. On the other hand, a trader's journal goes beyond these raw data points, allowing traders to record the reasons behind their trading decisions and evaluate their emotional state during each trade. By maintaining a journal, traders can gain insights into their decision-making processes and learn from past experiences. It provides an opportunity to review trades and analyze the effectiveness of their strategies. Additionally, tracking emotional states throughout trades helps traders identify patterns and better understand how emotions can impact their performance. In addition to the journal, it is recommended that beginners create a checklist to ensure the adherence to their trading rules. Writing down and assessing the filters used to evaluate trade signals on a sheet of paper, assigning points to each filter, and evaluating entry points can be effective techniques. Over time, traders may become adept at mentally checking these criteria, but the act of physically documenting them helps reinforce consistency and discipline. Both the trader's journal and checklist serve as valuable tools for self-assessment and improvement. They provide a structured framework for traders to reflect on their trades, identify strengths and weaknesses, and refine their trading strategies. By consistently using these techniques, beginners can develop a deeper understanding of their trading approach and enhance their overall performance over time. In summary, while it may seem unnecessary at first, maintaining a trader's journal and utilizing a checklist can greatly contribute to a trader's growth and improvement. These practices offer valuable insights into decision-making processes, emotional states, and the adherence to trading rules. By incorporating these techniques into their routine, traders can refine their strategies and make informed adjustments to achieve greater trading success. Regular Practice As mentioned earlier, taking breaks in trading is important for maintaining a balanced approach and managing stress. However, it is crucial to clarify that taking breaks does not mean completely giving up trading for an extended period. Consistency and regular practice are key to developing and refining trading skills. In the event of a challenging period or a losing streak, it is necessary to pause and take time to normalize one's psychological state. This break allows traders to step back, reassess their approach, and work on addressing any mistakes or weaknesses. Taking the time to reflect and learn from past experiences can contribute to personal growth and improvement as a trader. However, it is essential to emphasize that the break should not transform into a long-term avoidance of trading. Once the trader has regained their psychological equilibrium and made necessary adjustments, it is important to resume trading. Consistent practice is vital for maintaining trading skills and staying in shape, similar to how weightlifters need regular training to retain their form. Drawing a parallel to sports, just as weightlifters would lose their physical form without regular practice, traders need consistent engagement in the markets to hone their skills and adapt to changing conditions. By regularly participating in trading activities, traders can stay sharp, stay updated with market dynamics, and refine their strategies. In summary, while breaks are valuable for maintaining psychological well-being and addressing trading challenges, it is important not to abandon trading for an extended period. Regular practice and engagement in the markets are necessary for traders to stay in shape and continuously improve their trading skills. By striking a balance between taking breaks when needed and consistent practice, traders can navigate the markets effectively and increase their chances of success. Trading Will Be Unprofitable From Time To Time Indeed, it is crucial for beginners to understand that not every trade will be profitable. It is unrealistic to expect a 100% success rate in trading, and even the most successful traders experience losses along the way. What matters is the overall statistics and performance of their trading strategy. Successful trading is not about winning every single trade, but rather about having a strategy that generates a greater number of profitable trades and/or profits that exceed the losses. Traders should focus on the bigger picture and assess the effectiveness of their strategy based on the cumulative results over a period of time, such as a day, week, or month. Instead of fixating on the outcome of each individual trade, it is more important for traders to pay attention to whether their trades adhere to their predetermined rules. If a trade is closed based on the application of a stop-loss order, and the decision was in line with their strategy, then it can be considered a successful trade, regardless of the actual outcome. By shifting the focus from the outcome of each trade to the consistency and adherence to the trading plan, traders can maintain discipline and objectivity in their decision-making. It allows them to evaluate the effectiveness of their strategy based on a broader perspective and make informed adjustments as needed. In summary, it is crucial for beginners to understand that not every trade will be profitable. The key to successful trading lies in the overall performance of the strategy, with a focus on the compliance with predetermined rules rather than the outcome of individual trades. By adopting this mindset, traders can maintain discipline, manage risk effectively, and increase their chances of long-term profitability. Possible Failure Is Not Related To Your Personal Qualities Absolutely, the outcome of the first attempt in trading does not define a person's intelligence or talent. It is important for beginners to recognize that initial failures are a common part of the learning process. In fact, even intellectually developed individuals may face challenges in trading, and there is no direct correlation between intellectual capacity and trading success. Famous traders have observed that intellectually developed individuals may find trading more difficult. This could be due to various factors such as overanalysis, overthinking, or struggling to detach emotions from their decision-making process. However, it is crucial to remember that trading skills can be developed through discipline, persistence, and a willingness to learn from mistakes. Mistakes are not a disaster but rather opportunities for growth and improvement. They serve as valuable lessons that can be used to refine decision-making methods and trading strategies. With dedication and a commitment to learning, traders can make corrections and progress in their trading journey. Success in trading relies more on discipline and persistence than innate talent or intelligence. Developing the ability to stick to a trading plan, manage risk effectively, and maintain emotional control are critical factors in achieving long-term success. By cultivating these qualities and learning from mistakes, traders can enhance their trading skills and increase their chances of success in the markets. In summary, the outcome of the first attempt in trading does not determine a person's intelligence or talent. Mistakes and challenges are part of the learning process, and success in trading is not solely dependent on innate abilities. By emphasizing discipline, persistence, and a commitment to continuous improvement, traders can overcome obstacles, learn from mistakes, and increase their chances of achieving trading success. Conclusion Losing a trading deposit does not indicate a lack of intelligence or suggest that trading is not suitable for an individual. It is important to understand that losses are a natural part of the trading journey and can provide valuable lessons for personal growth and improvement. Instead of viewing a lost deposit as a failure, it should be seen as an opportunity to learn from mistakes, gain experience, and continue working towards success. Learning from other people's mistakes is indeed beneficial in trading. By studying the experiences and insights of successful traders, one can gain valuable knowledge and avoid making similar errors. However, personal experiences and mistakes also play a crucial role in the learning process. Analyzing one's own trades, identifying what went wrong, and drawing conclusions from those experiences can lead to valuable insights and improvements in future trading decisions. It is essential to approach trading with a growth mindset, understanding that setbacks and losses are temporary and can be stepping stones to success. Rather than being discouraged by mistakes, it is important to embrace them as opportunities for growth and development. By learning from both personal and others' mistakes, traders can refine their strategies, strengthen their decision-making skills, and increase their chances of achieving success in the markets. In summary, a lost trading deposit does not determine an individual's intelligence or suitability for trading. It is a chance to learn, grow, and refine one's approach to trading. By utilizing personal experiences and drawing lessons from both personal and others' mistakes, traders can enhance their knowledge, skills, and ultimately increase their potential for success in the world of trading.
FX_IDC:XAGUSDEducation
by FOREXN1
23
Trading Mindfully: Letting Go of Revenge for Financial Success Sometimes the market can really wear us down mentally and emotionally. Imagine this scenario: you enter a trade feeling confident, having carefully considered and calculated everything. You're in a fantastic mood, already envisioning the profits. And then, unexpectedly, everything goes wrong. In moments like these, even if you have a solid system and strategy in place, anger and resentment can take over. You might feel the need to seek revenge on the market for what you perceive as an injustice, and impulsively open positions with the intention of punishing it. However, the outcome of such revenge trading is almost always regrettable, resulting in significant financial losses. Let's take a closer look at what revenge trading entails and why it is so dangerous. Revenge trading occurs when we believe that the market has taken "too much" from us or treated us unfairly. Instead of stepping back and regaining composure, traders act contrary to every rule and guideline, driven by anger and a desire to prove themselves. Fueled by a mixture of frustration and determination, traders tend to fall into one of two scenarios: they either open large positions that further amplify their losses, or they manage to recoup some of their losses if luck is on their side. However, the best course of action in such situations is actually to take a break and reflect on the situation at hand. Attempting to take revenge on a market that is infinitely more powerful than any individual trader is inherently irrational. Moreover, this type of trading has several other negative consequences. When you trade out of revenge, you are driven by emotion rather than logic and strategy. This approach is destined to fail and can result in even greater losses over time. At this point, you lose touch with reality, forgetting everything you know and have learned about the market. Your well-thought-out strategies and trading algorithms that used to bring you profits are abandoned. Effective money management and risk compliance become distant thoughts. You throw all your resources into the blazing fire of revenge. As a result, you find yourself trading based on intuition, which is no longer a disciplined approach but akin to gambling. How to Overcome the Urge for Market Revenge There is a simple yet crucial mechanism that can help traders overcome the desire to seek revenge on the market. The most challenging part, however, is remembering to apply it in practice. Here are some steps to follow: 1: Take a Step Back: When the desire for revenge arises, it's important to slow down your emotions and actions. Step away from the computer and engage in activities that involve fine motor skills, such as solving puzzles or engaging in a hobby. It's detrimental to continuously look at the screen that displays recent losses, as it only amplifies your emotional state. By diverting your attention to non-trading activities, you allow the frontal cortex of your brain, responsible for rational decision-making, to activate. Going for a walk or connecting with a friend can also be effective ways to shift your focus and regain composure. 2: Analyze the Situation: To regain a conscious state and process your emotions, conduct a written analysis of the situation. It's beneficial to do this manually on a plain sheet of paper, utilizing your fine motor skills once again. Describe the entire incident in detail, including your thoughts, emotions, and actions. By gaining a comprehensive understanding of what threw you off balance emotionally, you'll be better equipped to recognize and control those triggers in the future. 3: Evaluate Your Trading Strategy: Every trader relies on a specific algorithm or trading system to make decisions. Take the time to thoroughly examine your trading system and ask yourself some important questions: - Does your trading system genuinely work? - If you had followed your system entirely (which you didn't do when seeking revenge), would it have helped minimize losses? - Are the losses that angered you a result of system losses or a breach of the system's rules? In addition to studying your trading system, it's crucial to assess your money management rules and ensure you are effectively managing risks. Proper risk management acts as insurance, protecting you from substantial losses. Regardless of market fluctuations, you can confidently close trades when necessary. Effective risk management is what distinguishes profitable traders from those who suffer losses. Final Thoughts: To overcome the desire for revenge, it is essential to understand what triggers it and address the underlying reasons. When we view the market as a reflection of our self-image and attribute personal meaning to our trades, it often leads to an emotional storm. In such a state, we may disregard trading systems and risk management principles, making foolish mistakes that can devastate our trading accounts. It's important to remember that the market provides only factual information for analysis, and behind the price quotes lies nothing more than information.
Education
by FOREXN1
24
The AEM Framework: 3-Step Guide to Successful TradingToday, I'd like to introduce you to the 'AEM' framework – a three-step process to successful trading. This framework is designed for everyone, from beginners starting their journey to seasoned professionals looking to refine their strategies. It involves three fundamental steps: Analyze, Execute, and Manage. Let's break down each element: 🔍 'A' for Analyze The first step to becoming a successful trader is to understand yourself and find a trading style that suits your personality, risk tolerance, and financial goals. This includes your emotional comfort with taking risks, your patience levels, and your time commitment to trading. Once you've figured out your trading style, the next step is to analyze potential strategies. Whether you're inclined towards fundamental analysis, technical analysis, or a combination of both, you must thoroughly understand the strategies you want to apply. Finally, analyze your chosen strategies and yourself to create a robust trading plan. Your trading plan should include what you'll trade, when you'll enter and exit trades, and your criteria for decision-making. Remember, the goal isn't to make perfect predictions but to follow a consistent plan that can potentially yield positive results over the long term. 🎯 'E' for Execute The second phase is execution. You've made your plan, and now it's time to put it into action. Execute your trades according to your strategy, without letting emotions cloud your judgement. Remember, it's about sticking to your plan – not chasing profits or running from losses. But executing your plan isn't just about trading. It's about discipline and consistency, regularly reviewing your trading activity, making adjustments as necessary, and continuously learning from your experiences. 📊 'M' for Manage The final step in the AEM framework involves managing several aspects of your trading: Manage Yourself: Trading can be emotionally taxing. Maintain your physical and mental health to ensure you're always in the best shape to make rational decisions. Manage Your Risk: No strategy is bulletproof. Always use stop losses, position sizing, and diversification to manage your risk effectively. Manage Your Trades: Monitor your trades, keep records, and review them periodically to identify patterns, learn from your mistakes, and improve your strategy. Manage Your Money: Keep your capital safe. Never risk more than a small percentage of your trading capital on any single trade, and be sure to keep some funds in reserve for unexpected opportunities or setbacks. The AEM approach is a comprehensive method that can assist you at all levels in creating, executing, and managing a successful trading plan. It encourages introspection, disciplined execution, and careful management. Remember, the journey to trading success isn't always smooth, but the right approach and mindset can make it considerably more navigable.
Education
by TheFxAce
13
Important principles for tradingThese trade setups encompass various important principles for successful trading. Here's a summary of each point: 1. A bad trade or a series of bad trades shouldn't discourage you. It's important to focus on the long-term performance rather than individual trades. 2. Don't let the outcome of your previous trade influence your decision-making for the next trade. Each trade is independent, and past results should not cloud your judgment. 3. Always stick to your trading plan, regardless of market conditions. Consistency is key to long-term success. 4. Concentrate on trading one specific pair to develop a deeper understanding of its dynamics and improve your effectiveness. 5. Accept that losses are a part of trading and learn to manage and mitigate risks. Reducing anxiety and stress will help you make better decisions. 6. Understand your trading style and choose a trading discipline that aligns with your strengths. Whether you are better suited for short-term, swing, or intraday trading depends on your reaction time and preferences. 7. Trading without a plan, failing to use stop-loss orders, or overusing your account balance can have detrimental effects. Stick to your plan and implement risk management strategies. 8. Recognize that trading is based on probabilities, not certainties. Let go of the need for perfection and focus on reliable trading models and risk management. 9. Keep your ego in check and avoid making emotional decisions. Objectivity and rationality are essential in trading. 10. While day traders focus on smaller timeframes, it's important to consider long-term charts for a comprehensive view of the market. 11. Set realistic expectations and avoid setting overly ambitious goals that can lead to impulsive and unsuccessful trades. Deviating from your plan due to unrealistic goals is counterproductive. 12. Consistency and adherence to risk management and trading plans are more important than the size of your trading positions. Even with a small capital, you can achieve remarkable results through discipline and compounding profits. 13. Avoid unnecessary complexity in your trading approach. A simple system with proper risk management is more profitable and less stressful. Embrace the occasional losses as part of your system. 14. If your trading system consistently fails to yield positive results, investigate the underlying causes and identify your weaknesses. Adapt and refine your approach accordingly. 15. Trading should not consume all your free time. Focus on specific trading hours aligned with the economic calendar and maintain a healthy work-life balance. 16. Overtrading is detrimental to your trading performance. Stick to the setups defined in your trading strategy and trust that new opportunities will arise. Be patient and realistic. 17. Avoid trading when you're not in the right mindset or experiencing negative emotions. Emotional trading can lead to impulsive and irrational decisions. Take breaks and ensure a clear state of mind before trading. 18. Maintaining a trading journal is crucial for tracking trades, analyzing performance, and managing emotions. It promotes organization and discipline, and helps you learn from past experiences. 19. Approach your trading terminal with a calm and focused mindset, similar to how a skilled locksmith approaches their work. Automate your actions through experience and eliminate emotional influences. 20. A professional trader embodies the traits of an analyst, a trader, and avoids the mindset of a gambler. Listen to your analytical side and make informed decisions rather than relying on luck or chance. By integrating these trade setups into your trading approach, you can improve your decision-making, manage emotions effectively, and enhance your overall trading performance. ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
Emotions It is impossible to have a prejudice every day. However, it is possible to designate rules, models and criteria in order to exclude decision-making on an emotional basis. Notice, research and record everything that happens before, after and during each of your trades. Pay attention to the time period when errors occur and analyze all the details: triggers, thoughts, emotions, behavior, actions, changes in decision making, changes in the perception of the market, opportunities or current positions, trading failures. Before opening the next trade, remember your previous experience. This will help you avoid repeating old mistakes. The moments after the completion of transactions provide an excellent opportunity to track exactly how you came to this and what thoughts, emotions manifested in the moment. The recording process itself can also help to defuse the emotional state. Your first goal is to reach a level of complete detail in your trading strategy. Continue to map out your behavior pattern in as much detail as possible until you identify the initial trigger and analyze it as part of your trading preparation. During a trading session, try to write down new details. After, combine and analyze your notes to better prepare for the next session. Once you have identified the details associated with your trades, look for the early triggers that come before each one. You may be able to spot smaller errors or notice subtle changes in market perception. For example: you spend too much time on informational noise or make a trade that does not meet all the criteria of your trading plan. Create a working day schedule taking into account the instrument sessions. Set up a timer so that it fires at regular intervals during your scheduled break and doesn't disrupt your work. During this time, take a few minutes to become aware of your thought process and understand how you feel. If there are signs of a problem, write them down. Understand the intensity of the emotions. You may think that anger and frustration are two different emotions, but anger is just heightened frustration. Understanding how an emotion intensifies will help you recognize the details of your behavior pattern, including the original trigger. .... Have you ever faced a situation where, despite having a well-designed trading plan and a carefully crafted trading strategy, your actual trading day turned out to be completely unpredictable? In such instances, your actions deviate from the original plan, and momentary weakness casts doubt on the effectiveness of the entire trading session. These unexpected emotions can catch you off guard. One of the reasons for this is a lack of recognition of what is happening. Emotions often arise as immediate reactions or reflexes triggered by certain events, which traders often misinterpret as problems. Let's consider the example of a loss from a trade. Many traders may become furious and enter positions without following proper trading patterns. However, this doesn't happen to everyone. Instead of expressing anger, some traders easily cope with failures, instinctively understanding the situation and turning it into opportunities. Therefore, a crucial aspect of developing a trading plan is identifying and addressing your own internal struggles, which serve as the underlying cause of the problem. It's important to note that in many cases, the initial trigger for these emotions is subtle and barely perceptible consciously, yet it already impacts your mental stability and your habitual interaction with the market. Even if the trading day starts off on the wrong foot, by regaining composure at the right moment and avoiding impulsive reactions, you can prevent basic mistakes and maintain control over your psychological state, ultimately improving your performance. The secondary arousal occurs when a trader becomes aware of or reacts to the impulses, thoughts, and actions that occurred initially. In simple terms, the mind and thoughts amplify the emotions that have already emerged. In everyday life, people often don't differentiate between these experiences. However, if the source of the reflex is not identified, along with the secondary causes, finding a solution to the situation becomes challenging. Triggers will continue to generate more and more emotions that need to be managed. Awareness of the initial impulse and the subsequent reaction are the two starting points that enable progress. After all, stressful situations can accumulate and overlap, creating a precedent for a cumulative effect. Trading is a business, not a game of chance. This is where it is important to keep a professional mindset while following the trading plan. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
The Secrets of Making Four Figures Through Trading. The secrets of making four figures through trading. In this Trading view Post, we will explore the key strategies and considerations that can significantly enhance your swing trading results. As a forex coach specializing in this trading style, I'm excited to share valuable insights and empower you to achieve your financial goals. Small Accounts are Out, Prop Firms are In Problem : Insufficient Earnings with Small Accounts Solution : If you aspire to make four figures, it is essential to trade with five figures. Turning $100 into $10,000 or $500 into $100,000 is much quicker and more feasible when you have a larger capital base. With a prop firm, you can afford to trade less frequently and prioritize quality over quantity, eliminating the struggle often associated with small account trading. Implement a Proper Risk Management Strategy Trade with Skill, Not Luck To safeguard your capital and increase profitability, it is crucial to limit your risk on each trade to no more than 1%. This approach allows you to rely on your trading skills rather than luck. Remember, success in trading is a result of consistent and disciplined decision-making. Consistency in Risk Allocation Maintain a consistent 1% risk level as your account grows. As your balance increases, the amount of money you risk will grow proportionally. For example, if you start with a $100,000 account, you would risk $1,000 (1% of $100,000). As your account balance reaches $101,000, your risk would be $1,010 (1% of $101,000), and so on. Consistency in risk allocation ensures that your percentage risk remains the same while adapting to account growth and drawdown phases. Leveraging Position Sizing Based on Account Size Your position size, or lot size, plays a critical role in determining how much you value each pip movement. It is essential to find the right position size to prevent excessive drawdown or losses that can jeopardize your trading account. Position sizing calculations consider your account balance, percentage risk, and stop-loss levels. For instance, if your stop loss is 30 pips and you have a $10,000 account, your position size would be $100 (1% risk) divided by 30 pips, resulting in $3.33 per pip. Your lot size will be 0.33 per pip . By maintaining consistent risk management practices, you can aim for profitable trades while preserving capital. Focus on Higher Reward-to-Risk Opportunities Problem: Losing Trades Depleting Capital To sustain long-term profitability, it is essential to prioritize trades with a higher reward-to-risk (RR) ratio. Winning trades compensate for losing trades and help you overcome drawdown phases. Avoid subpar trades that you force or that fall below your minimum RR requirements. Strategies to Achieve Higher RR: Multiple Timeframe Analysis: Shorten Stop Loss Analyze multiple timeframes to identify strong trade ideas. Once you've determined a suitable trade on a higher timeframe, drop down to lower timeframes to tighten your stop loss. This approach allows you to manage risk effectively and maximize your RR ratio. Utilize Higher Timeframes or Tools: Extend Take Profit When dropping down to lower timeframes, refrain from shrinking your take profit target. Instead, utilize higher timeframes or tools like Fibonacci to extend your take profit level. By setting reasonable profit targets, you increase the potential for achieving higher RR trades. Main Talking Point 3: Quality Trades and 4-Figure Trade Planning Problem: Inconsistent Trading Results Solution: Trading with a focus on quality trades offers numerous benefits. By targeting high-quality opportunities and planning trades effectively, you can profit during trending markets, reduce mistakes, and avoid the need to chase after four-figure profits. Commitment to Make 4 Figures & Stay Under Drawdown Limits Plan Weekly and Allocate Resources Plan your trades every Sunday to determine the potential profit or loss for each trade. Identify high-quality opportunities and allocate 1% of your capital to each trade. Assess if each opportunity meets your minimum RR requirements and if it brings you closer to achieving four-figure profits. Example: $10,000 Account Suppose you risk $100 on Trade 1 and make $333 (3.33% return), followed by risking $103.33 on Trade 2 to make $516.65 (5.16% return). After two trades, you have earned $849.65, representing an 8.49% increase in your account balance. Continuously monitor and adjust your trades to maintain profitability. Is this possible? Yes! Is this easy? No! Why? Because you'll have to get out your own way and head to make this possible. While achieving consistent four-figure profits through trading requires dedication and skill, implementing the strategies discussed in this post can significantly enhance your chances of success. By trading with a prop firm, implementing proper risk management strategies, focusing on higher RR opportunities, and prioritizing quality trades, you can navigate the dynamic world of trading with confidence and boost your financial growth. Remember, trading success comes from discipline, continuous learning, and a well-defined trading plan. Best of luck on your journey to four-figure profits! Shaquan Hey! If you found this post valuable like the post and let me know below what was your takeaway❤️
Education
by ShaquanLopez
3
How To Strategically Plan Your TradesBy dedicating just a minute per pair you trade, we can ensure that you're well-prepared for the upcoming market opportunities. So, let's dive in!" 1. Start with the goal- to make money, lose no money at all, or lose a small portion of your trading account Set yourself up for all 3 * this is based on the opportunity - currency pair with the right market condition- don’t trade when the market is quiet - What Timeframe has your money- focus on the timeframe you vibe with - How long will it be before you enter the trade and exit the trade- everything is an estimation. Don’t stress forcing the trade. Let the money come to you 2. Prepare for trade planning: overview - Sunday before the market opens- wake up, spend time with God, family, and then your charts - Assess the past weeks performance and plan how you’ll trade for the upcoming week- - Allocate 1 minute per pair to effectively strategize without spending excessive time over analyzing- be a quick decision maker How to review the previous week price movement: 1. Analyze each trade you entered and note what trades were successful and what were not successful 2. Note if you made any mistakes. All losses are not mistakes. 3. Note if any of your pairs made new highs or new lows or consolidated 3. Strategize based on your edge- what you are good and fast at? - Focus on the 1 or 2 strategies do you understand and can articulate well Prioritize these strategies because they increase the likelihood of success and maintaining a clear plan. - Focus on the currency pair that has the right market conditions to trade your methods There are 6 market conditions - conditions are environments like calm or violent weather - focus on which conditions your strategy thrives best in. * if the condition isn’t there, don’t trade that pair 4. Currency pair selection - Don’t overwhelm your week trading ever pair on your watchlist if you trade more than 3. - Focus on the pair that provides the favorable setup when everything aligns - * trend, market condition, and the profitability 5. Setting entry and exit points - your entry and exit go back to how well you can understand and articulate your strategy. - My TMP strategy, the first step , T(trend) is designed to automatically show you where you’ll take profit and place your stop loss. - Consider the steps you take to identify the trend and simultaneously plot your take profit and stop loss - Consider then estimating where you’ll enter your trade - My TMP strategy, M(market structure), is designed to automatically show you where you’ll enter your trade. - Then place a pending order or know the exact candlestick you enter your trades on Mindset shift really quick - risk management is a way to protect your capital and optimize your profits - Write what you’re protecting your capital from? * your families financial peace * Your financial peace * Failing as a business 6. Journal your plan - Trading view allows you to video your trades and publish them privately or publicly - You can use an excel spreadsheet or notion - Or a good old fashion notebook and pen Congratulations! You've now learned a strategic approach to plan your trades every week, leveraging your edge and focusing on your two best strategies in favorable market conditions. Remember, dedicating less than a minute per pair can significantly enhance your trading preparation. By implementing these steps consistently, you'll be well-positioned for success. Best of luck in your forex trading journey! Like and share the post if you found this valuable and would like more written content like this. Shaquan
Education
by ShaquanLopez
27
Dealing with trading losses... before they occurLosses are part of this business. People do not react well to losses. Badly handled losses in trading can trigger bigger losses. Furthermore, these have the dangerous potential of wiping out entire accounts. If you want to make it as a trader you need to have a solid psychological approach to accept and handle losses. Lots of internet articles are suggesting that the way to prevent debilitating losses in trading is to follow risk management rules. What are those rules about? Basically, they are simple thresholds indicating the maximum $ /percentage you should risk per trade, day, month etc. Having such rules is a must but it’s not enough. You can still lose much if your mind is not actually prepared to implement them. That’s why many traders set rules only to break them in the most inappropriate moments. People do not follow their own risk management rules because they are not psychologically prepared to accept losses. They are not prepared for the pain caused by a loss or a series of losses. The single most efficient way to handle losses is to accept them consciously and unconsciously. One of the most dangerous ways to react to losses is “revenge” or “on tilt” trading. This happens when the pain caused by a loss is so high that the trader looses his / her rationality and only wants his / her money back, disregarding most of the things he / she actually knows about the market. The brain cannot accept the emotional discomfort and the fastest solution is to quickly find a trade to make the money back. Most of the time, the quickest trade is in the same instrument (FX pair, stock, etc) that generated the initial loss, by averaging down/up or flipping. Some of the most experienced traders can work their way out but the vast majority will only make things worse. In order to prevent this kind of psychological slippage you need to prepare your mind to consciously and unconsciously accept losses BEFORE they occur. With the help of a psychotherapist or by yourself you can perform visual exercises where you will imagine yourself being in a losing position and reacting the right way. This would desensitize yourself, if done right. The technique I always use each time I open a position is to do that desensitization process “on the fly”. I watch the market and I see an opportunity. BEFORE opening the position, I imagine myself in the posture of facing that trade ending in a loss. After that, I imagine that trade going the way I want. I might even go back and forth (in my mind) a few times between losing and winning. This way, I prepare my unconscious mind. If I cannot imagine myself easily handling the loss (or the win) I will simply reduce size. Pay attention though, I am not recommending here to imagine yourself constantly losing because this would do more harm than good. This would be a separate topic about the power of visualization exercises.
BITSTAMP:BTCUSDEducation
by Mihai_Iacob
17
Mindset Monday's: Sphere of Rationality Hey there, so in today's mindset series, we going to be talking about a topic that has the potential to change the way you enter, manage and exit your positions. By watching this weeks video you will: - Learn how to get into a trade with the best frame of mind, allowing you to mange the trade in the best way possible leaving you to maximise your overall returns. - Gain a distinct advantage by learning how to control your emotions instead of ignoring them, which means less emotional pain and more financial gain.
by DeanMuller
How To Win, By Learning How To Lose Hey there, so today I would like to introduce the first episode in what I would like start calling Mindset Mondays. So in this session we going to: - Learn how to overcome the fear of losing so you can trade with confidence and fearlessness - Discover how to leverage your losses and maximise your returns resulting in consistent and sustainable equity growth - Learn how to use your emotions as a signal to identify shortfalls and weaknesses in your overall trading approach which means refining your understanding about the markets and yourself, ultimately allowing you to trade with a carefree state of mind. So, be sure to watch all the way through if you want to learn how to win by learning how to lose.
by DeanMuller
25 Trading Rules for Guaranteed Success!Hi traders! Before we dive into the 25 trading rules that can lead you to success, let's take a moment to reflect on this three things that are key to successful trading: First, there's " content. " This is all the information that traders use to make decisions, both from the market and from their own gut. It's really important to have access to reliable and up-to-date info, so you can avoid making costly mistakes. The second thing is " mechanics. " This is all about how you actually trade: the tools you use, the strategies you employ, and so on. It's crucial to master these mechanics before you can hope to make any money. Finally, there's " discipline. " This might be the most important of all. You need to be disciplined in your approach to trading, making smart decisions every time and sticking to your plan. It can be tough, but it's absolutely essential for long-term success. To help with this, you might consider reviewing a set of trading discipline rules every day to keep you on track. To improve your trading discipline, it's important to consistently reinforce good habits. Consider reviewing these 25 rules of trading discipline daily before beginning your trading session. It only takes three minutes, and it can help remind you how to conduct yourself throughout the day. Think of it as a helpful routine, like saying a prayer or setting intentions for the day ahead. #1 - DISCIPLINE PAYS OFF: MAXIMIZING PROFITS IN THE MARKET When it comes to trading, being disciplined pays off. If you can maintain discipline, you're more likely to make profits and avoid losses. The market rewards traders who can stay focused and make rational decisions. Remember, discipline equals increased profits. #2 - STAY DISCIPLINED EVERY DAY AND THE MARKET WILL REWARD YOU, BUT DON'T CLAIM TO BE DISCIPLINED IF YOU ARE NOT 100% OF THE TIME. It's crucial to be disciplined in trading, but it's not a part-time commitment, like saying you quit smoking but still sneaking a cigarette. If you're only disciplined in nine out of ten trades, you can't consider yourself a disciplined trader. It's the one undisciplined trade that can seriously harm your overall performance. Discipline must be practiced in every trade, every day, and only then will the market reward you. #3 - ADJUST YOUR TRADE SIZE WHEN TRADING POORLY Many successful traders abide by this rule. Instead of continuing to lose money on multiple contracts per trade, why not lower your trade size to just one contract on the next trade and save yourself some cash? Personally, I lower my trade size to one contract after two consecutive losing trades. Once I have two profitable trades, I increase my trade size back to its original amount. Think of it like a baseball player who has struck out twice. The next time at bat, he adjusts his grip on the bat and shortens his swing to make contact. Similarly, in trading, adjusting your trade size and aiming for just a small profit or a break-even trade can help turn your losing streak around. Once you've got two consecutive winning trades under your belt, you can increase your trade size again. #4 - NEVER TURN A WINNER TRADE INTO A LOSER ONE We've all been tempted to break this rule before, but we should aim to avoid it in the future. The root of the problem is greed. The market moved in our favor and gave us a profit, but we weren't satisfied with a small gain. Instead, we held onto the trade hoping for a bigger profit, only to watch the market turn against us. We hesitated and the trade turned into a significant loss. There's no need to be greedy. It's just one trade. You'll have many more opportunities throughout the day and in future trading sessions. The market always offers opportunities. Remember that one trade shouldn't make or break your performance for the day. Don't let greed ruin your trades. #5 - DON'T LET YOUR BIGGEST LOSS EXCEED YOUR BIGGEST WIN It's a good idea to keep track of all your trades during a session. By doing so, you'll have a better understanding of your performance and be able to make better decisions. Let's say your biggest win so far in the day is 30 Pips on EUR/USD. If you have a losing trade, make sure it doesn't exceed those 30 Pips. If you let a loss go beyond your biggest win, then when you calculate your total gains and losses, you'll end up with a net loss. That's definitely not what you want, so be careful and stick to your plan. #6 - DEVELOP A CONSISTENT METHODOLOGY AND STICK TO IT: AVOID CHANGING STRATEGIES DAILY To be a successful trader, it's important to have a solid game plan. This means writing down the specific market setups or prerequisites that need to happen for you to enter a trade. Your methodology doesn't have to be anything fancy, but you should have a clear set of rules or price action that you follow in order to make trades. If you're using a proven methodology and it doesn't seem to be working in a particular trading session, don't try to come up with a completely new strategy overnight. Instead, stick with what works and has been successful for you in at least half of your trading sessions. Having a consistent methodology will help you make more informed and confident trading decisions. #7 - BE YOURSELF. DON’T TRY TO BE SOMEONE ELSE. In trading, it's important to be yourself and not try to be someone else. It can be tempting to try and emulate successful traders or follow their strategies, but ultimately, you need to find what works for you. Everyone has their own unique personality, risk tolerance, and trading style. Embrace your strengths and weaknesses and develop your own approach. Don't compare yourself to others or try to be someone you're not. The most successful traders are those who stay true to themselves and their own strategies. Remember, you are the only one who knows what's best for you and your trading journey. #8 - ALWAYS PRESERVE YOUR CAPITAL: PROTECT YOUR ABILITY TO TRADE ANOTHER DAY Always prioritize protecting your capital in trading. It's important to never risk more than you can afford to lose, as the consequences can be devastating. One of the worst feelings in trading is not being able to continue because your account equity has dipped too low. To avoid this, I suggest setting a daily loss limit that you stick to, such as $500. If you hit that limit, it's time to turn off your computer and call it a day. Remember, you can always come back tomorrow with a fresh mindset and a new opportunity to trade. #9 - EARN THE RIGHT TO TRADE WITH BIGGER SIZE To earn the right to trade with bigger size, it's important to prove that you can consistently generate profits with smaller trades. Traders who rush into larger trades without sufficient experience and success are putting themselves at risk of significant losses. By demonstrating discipline, patience, and a solid track record of profitable trades, traders can gradually increase their position size and take on more risk as their skills and confidence grow. Remember, trading with bigger size is a privilege that must be earned through diligent practice, hard work, and a commitment to continuous improvement. #10 - HOW TO CUT YOUR LOSSES IN TRADING It's important to remember that having a losing trade doesn't make you a "loser." However, if you don't exit the trade once you realize it's not working out, then you're not making smart decisions as a trader. Trust your gut - if you have a feeling the trade is no good, it probably isn't. It's better to exit the trade and cut your losses rather than risk losing even more money. Every trader experiences losing trades throughout the day, including myself. On average, I have about one-third of my trades as losers, one-third as break-even trades, and one-third as winners. But the key is to exit losing trades quickly so they don't end up costing you too much. By doing this, even though I have more losing and break-even trades than winners, I still end up going home with a profit. #11 - THE BENEFITS OF TAKING A SMALL LOSS EARLY IN TRADING Sometimes traders in the pit will joke around and say things like "You're not a loser until you get out" or "Not to worry, it'll come back." But in reality, these phrases are just affirmations that it's time to exit a trade when it's not working out. Once you recognize that a trade is no good, the best thing to do is to exit immediately. Don't wait and hope that it will turn around. It's never a good idea to let losses pile up - cutting your losses early is a smart move that can help protect your capital and keep you in the game for the long run. #12 - WHY HOPING AND PRAYING IN TRADING IS NOT A WINNING STRATEGY As a new and undisciplined trader, I used to pray to the "Bond god" whenever I found myself in a tough trade position. I hoped for some sort of divine intervention to save me, but it never came. I eventually learned that praying to any "futures god" was a waste of time. The best thing to do is to just get out of a bad trade and cut your losses. Trusting in your own trading plan and strategy is much more effective than relying on luck or divine intervention. #13 - WHY TRADERS SHOULDN'T WORRY TOO MUCH ABOUT NEWS IN THE MARKET. IT'S JUST HISTORY... As a trader, it can be tempting to constantly monitor news and events in the market. However, it's important to remember that news is just history. By the time it reaches the public, it has already been factored into the price of assets. So, worrying too much about news can actually be detrimental to your trading strategy. While it's important to be aware of major news events, such as economic reports or geopolitical developments, it's not necessary to react to every piece of news that comes out. Instead, focus on developing a solid trading plan based on technical analysis and risk management strategies. Stick to your plan and don't let emotions or external events dictate your trades. Ultimately, successful trading is about making informed decisions based on market data, not reacting impulsively to the latest news headline. So, don't worry too much about news in the market. Remember that it's just history, and focus on developing a disciplined and informed trading approach. #14 - DON'T SPECULATE , IF YOU DO, YOU WILL LOOSE Speculating in the financial markets can be tempting, especially when you see others making big profits. However, it's important to remember that speculation is risky and can often lead to losses. When you speculate, you are essentially making a bet on the future direction of a particular asset or market, without having a clear understanding of the underlying fundamentals. The problem with speculation is that it's based on assumptions and predictions, which are often influenced by emotions and biased opinions. This can lead to overconfidence and a false sense of security, which can quickly evaporate when the market turns against you. Instead of speculating, it's important to focus on sound trading principles such as risk management, discipline, and a solid trading plan. By following these principles, you can reduce your exposure to risk and increase your chances of success in the long run. So, if you want to avoid losses and build a sustainable trading career, avoid the temptation to speculate and focus on the fundamentals. #15 - EMBRACE LOSING TRADES: LOVE TO CUT YOUR LOSSES "What do you mean by love to lose money? Are you crazy?" Well, no, I'm not crazy. What I mean is that you should accept the fact that losing trades are part of the game in trading. The key is to get out of your losing trades quickly and love doing it. By doing so, you can save a lot of your trading capital and become a better trader in the long run. So, don't be afraid of losing, embrace it and learn from it. #16 - WHEN TO EXIT A TRADE: SIGNS IT'S NOT GOING ANYWHERE Have you ever noticed when the market is just not moving? It's like everyone is content with the current prices, and no one is really interested in buying or selling. Well, when this happens, it's time to take a step back and wait for the market to heat up again. There's no point in wasting your time, energy, and money in a stagnant market. It's better to wait for the right opportunity to place your trades and make some profit. Trust me, it'll be worth the wait. #17 - BIG LOSSES: THE DAY KILLER When you suffer big losses, they can ruin an entire day's worth of hard work in achieving small wins. Not only that, but they can also take a toll on your psyche and emotions, leaving you feeling defeated and demoralized. It can take a significant amount of time to regain the confidence that you once had before the big loss. It's important to keep this in mind and manage your risk appropriately to avoid such setbacks. #18 - THE POWER OF CONSISTENCY IN TRADING: DIGGING YOUR WAY TO SUCCESS Consistency is key when it comes to successful trading. Making a little bit every day and consistently digging your way towards success is much more effective than taking big risks and filling in your progress with losses. By focusing on consistency, traders can build a solid foundation for long-term success in the market. It takes discipline, patience, and a willingness to stick to a well-defined strategy, but the rewards can be significant. So dig your ditches and don't fill them in, and with time and effort, you'll see the power of consistency in action. #19 - CONSISTENCY BUILDS CONFIDENCE AND CONTROL And Again...Consistency is a key component in achieving success in any area of life, including trading. When you consistently follow a trading plan, execute your trades with discipline, and manage your risk effectively, you build confidence in your abilities and gain control over your emotions. This confidence and control can help you navigate the ups and downs of the market with a clear head, and ultimately lead to greater success in your trading endeavors. #20 - LEARN TO SCALE OUT YOUR WINNERS Scaling out winners means taking partial profits on a winning trade instead of closing the entire position at once. This approach helps traders lock in profits and reduce risk by allowing them to ride the remaining portion of the trade with less pressure. Learning to scale out your winners requires discipline and a solid understanding of your trading plan, but it can be an effective strategy for maximizing gains while minimizing losses. #21 - MAKE THE SAME TRADES OVER AND OVER AGAIN Making the same trades repeatedly might seem boring, but it's an essential strategy for successful trading. By mastering a few reliable setups, you can gain a deeper understanding of the market and become more confident in your decision-making. Remember, consistency is key, and repetition is the foundation of mastery. #22 - DON'T ANALYZE, PROCRASTINATE OR HESITATE Over-analyzing, procrastinating, and hesitating are common pitfalls that many traders fall into. However, these behaviors can lead to missed opportunities and ultimately, losses. It's important to have a clear plan and execute it without hesitation. Don't let analysis paralysis get in the way of taking action in the market. Remember, in trading, time is money, and every second counts. #23 - STARTING AT ZERO: THE BEHAVIORAL KEYS TO TRADING SUCCESS Every trading day is a fresh start for everyone, with each of us beginning at the same level playing field. But as soon as the market opens, it's our actions and mindset that determine our success or failure. Adhering to the 25 Rules can lead to profitability, while neglecting them can result in poor performance. So, it's up to us to approach each trading day with discipline and focus to achieve the desired outcome. #24 - THE MARKET: THE ULTIMATE JUDGE The market is the ultimate judge and jury in the world of trading. No matter how good a trader you think you are, it is the market itself that determines your success or failure. Respect the power of the market and learn to adapt your strategies accordingly. #25 - STICK TO YOUR PLAN: THE FINAL RULE OF TRADING The last and most important rule in trading is to repeat your trading process every day and focus solely on your own trading plan. Avoid following others' ideas and stick to your own strategy. Consistency is key, and by repeating your process every day, you will build discipline and increase your chances of success in the market. Thanks
PEPPERSTONE:XAUUSDEducation
by FOREXN1
12
Learn What is Confirmation Bias | Trading Psychology 🧠 In this educational article, we will discuss one of the most common cognitive errors of newbie traders - a confirmation bias. In order to better understand that term, I want to start with the example: Let's say that after doing some research, you are highly convinced that Bitcoin is bullish and that it is a decent investment. You decide to buy that from 50.000 level, expecting the exponential growth. Instead of growing, however, the market starts falling rapidly. Rather than closing your position in loss, you decide to do a new research and execute the analysis, you start looking for the proof of your pre-existing beliefs. You completely neglect the voices of Bitcoin sceptics and ignore bearish clues on the price chart. You consider only the facts that support a bullish outlook, not letting you accept the other point of view. You become a victim of a confirmation bias. Unfortunately, such a psychological trap frequently prevents a closing of a trading position in time, leading to substantial losses. Confirmation bias is a common psychological error that makes a subject overvalue the information that upholds his existing beliefs and undervalue the opposing one. Here are the most common symptoms of that trap: 1️⃣One is neglecting the objective facts. 2️⃣One is interpreting information in a way to support the existing beliefs. 3️⃣One is considering only the facts that conform with his point of view. 4️⃣One is completely ignoring the information that challenges his beliefs. The only way to beat a confirmation bias in trading, is to learn to analyze the market from sellers' and from buyers' perspective. Your task is to compare the view of the 2 sides, and pick the one that is stronger, holding in mind the fact that everything can change. You should always remember of the changing nature of financial markets and be ready to always reassess your views. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
13
The 3 Dimension Trading / Investing 3D Investing or Trading = Technical Analysis + Depth Analysis Depth Analysis: • Macro analysis or / and • Micro analysis or / and • Other analysis See the following video "3rd Dimension Analysis" link for other analysis. Many use either technical or fundamental analysis alone in their research work, I observed they likely to struggle with confidence to make the entry judgement call. We can develop a greater confidence in how we time the market by combining TA + FA. 3 types of gold for trading: • COMEX Gold 0.10 per troy ounce = $10.00 • E-mini Gold 0.25 per troy ounce = $12.50 • Micro Gold 0.10 per troy ounce = $1.00 Disclaimer: • What presented here is not a recommendation, please consult your licensed broker. • Our mission is to create lateral thinking skills for every investor and trader, knowing when to take a calculated risk with market uncertainty and a bolder risk when opportunity arises. CME Real-time Market Data help identify trading set-ups in real-time and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
COMEX:GC1!Long
by konhow
Why are only 10% of traders successful?Why are only 10% of traders successful? The popularity of exchange trading is growing rapidly today, but experience shows that only 10% of those who come to trade end up making a profit. Barrier N°1 Laziness and unwillingness to learn. Frankly, most people who want to profit from stock trading do not want to learn this. They feel sorry for the time to master the base, to practice. Having earned a couple of times on a demo account, they immediately go to trade for real money. And for this category of traders, failures are predetermined by their own attitude to the trading process. Barrier N°2 Greed and haste. "Exchange trading will make me a millionaire in just a week" - completely wrong expectations. Instead of trades with a profitability of 3-5% and a success rate of 70%, many traders are interested in trades with a profitability of 70% and a success rate of 3-5%. There is nothing surprising in the fact that such transactions do not end well. At the same time, +10% per month will increase capital very quickly if you trade systematically and do not chase fast super-profits, which always turn into losses. Barrier N°3 Mismanagement of finances. Even in the absence of a large risk of each particular trade, there is a danger of losing the profits of many previous trades by making one trade for too much. Equal lots that do not exceed 1% of the deposit are a guarantee of security. Barrier N°4 Too complicated strategy. A simple and transparent strategy is better than a complex one. It is worth striving for a yield of 60-70%, this is quite enough to consistently make a profit. The search for a "super strategy" with a 90% return is usually unsuccessful, and overly complex systems do not work very well. Barrier N°5 Wrongly organized trade. "Professional burnout" and the failures associated with it often haunt those traders who give a lot of time to work. It is advised to trade no more than 5 hours a day and conclude no more than 1-2 transactions. This will save energy and a positive attitude. Trading without drawdowns and with a stable income - exactly what you should strive for. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
28
Higher Rewards For Less RiskI've changed my reward-to-risk ratio from 1:1 to 2:1. You heard me right! They have changed. I wasn't a stickler about my ratios, but I am now. I want to make more money and do less trading. How is this possible, you may be asking? It's simple when you look into the details. So let's take a look at the losses first. What do my losses look like? Each time I lose a trade, I recently exited a previous winner or wasn't in a trade on that currency pair before I lost. Let me explain because these are two different things. When I win a trade, I give back my profits on losing trades and may not enter the next trade due to my emotions being everywhere. I noticed that I was stopped out, and the price flowed my way. But, honestly, I can do nothing to prevent this from happening. You may say, "well, can't you change your stop loss?" I could, but to what? I never know when I'll be stopped out or how big the wicks will be to get me out of the trade. This means every trade is unique, and I'm making a mistake if I don't follow my rules. Being stopped out isn't the problem. Trading my system too much with almost the same reward to risk is the problem. Question to myself, what if you could hold the trade longer(I'm a swing trader, so this fits) and increase your reward significantly, so you don't have to keep entering multiple trades unless the reward was worth it? So now, if I am stopped, my winning trades will make up for my losses and more. What do my winning trades look like? My winning trades look more significant than my losses. My focus is and will always be higher timeframes. I like to trade when markets are trending. So per the daily, weekly, or monthly timeframe, I'm trading if my currency pairs are trending. My goal is to get the best entry that fits my rules and hold to my long-term targets, and any trade under a 2:1 reward-to-risk ratio will not be traded. I'm also ok with not being triggered into trades set by my pending orders. I'm also ok with losing trades. That's part of the business. In Summary I seek to hold trades longer to receive bigger rewards and let the small losses be small. I've not changed my trading strategy. It works, and I am working on it. We go well together. My belief is as long as the market is trending, I can hold my trade. I pray this blessed you, Shaquan Remember, you don't trade the markets. You trade what you believe about the markets. "Van Tharp"
Education
by ShaquanLopez
What I Do After I Lose A TradeI noticed I’m still in AUDNZD, which is in good profit. Price made a new high, and my first action was to move the trade to break even. At the same time, I noticed I lost a trade on NZDCHF which I set a pending order for this morning. What I did next was a reaction to the loss. I immediately sought a trade on a currency pair that was not on my list. Once I did that, I heard a voice saying, STOP DOING THAT! This is a repeated action I do when I lose a trade. Instead of feeling the loss, I try to medicate it by looking for something else to do. As soon as I realized this, I wrote that down as a limiting belief and then wrote down what I believe about the market. Limiting Belief: Losing a trade makes me feel like I need to look for a trade on another pair to make my money back. Action to take: take a slight loss. It’s better than letting a losing trade run. Belief: Small losses tell you the price has reversed and to be patient to wait for the following setup on the same currency pair. Belief: The market changes. I have to adapt quickly because the price movement will change, which means every trade is unique. Belief: Make trading a fun puzzle to figure out. It will become overwhelming if I work on too many puzzles simultaneously. What I noticed last was how I felt. Usually, I feel a tight pinch in my chest before I get on my charts. Its anxiety. I didn’t feel it this morning. I felt relaxed. After dealing with years of anxiety I can feel it decreasing the more I write out my thoughts and beliefs and see how they are what I trade. Experiencing today's lose I had no feeling just a reaction I will work hard to not do again. What reactions do you have when you lose a trade. What are thoughts and feelings? If negative what can you now begin doing that will help you adapt to price movement with a clear mind and well thought out actions? If you found value in this shared moment of my trading journey please like this post and comment. You're not alone in this trading world. Let's talk it out.
by ShaquanLopez
1
Psychological state in tradingThe important point is to describe your psychological state in two cases: When you are not in a trade. When you are in a trade. In the first case, the common problem is missed profit. Often, novices take this very painfully and think about the missed opportunity that could have brought them potential profit. However, the market, especially the cryptocurrency market which operates 24/7 without breaks, has many trading ideas and opportunities, so there is no need to fixate on it or torment yourself with it. Therefore, when you are not in a trade, try to describe your psychological state, what you feel at that moment, whether it's the fear of potential loss from missing a trade or something else. In the second case, when you are in a trade, you need to describe your state, what worries you. It could be greed to fixate profit or fear of losses. In both states, you need to fully describe yourself, the trading setups that cause such emotions. To avoid these emotional swings, you should have a clear plan for taking profit and an approximate loss in case of failure before entering a trade. When you do not have such a plan, you will swing back and forth, and the outcome may be negative. Therefore, when you are in a trade, describe your state in detail and document it in a journal related to your psychology, as psychology is 80% of successful trading. All these aspects will help you learn more about yourself and your psychology, which will enable you to build your trading strategy, as psychology accounts for 80% of successful trading. That's why soulless machines, neural networks, and AI are so good at trading compared to humans with their emotional instincts. Because many people want more profit here and now, they are not willing to bear losses, develop, or understand themselves. Due to this incorrect psychological mindset, people often lose money and then blame trading for being a casino. Of course, it's a casino for ludomaniacs who, without a strategy, listen to "experts on Instagram" and are already turning to the 30th leverage for a short. I hope you understand why this aspect is necessary. Nevertheless, in subsequent articles, we will try to describe more about psychology in trading. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
Top 15 mistakes and solutions in trading TOP 15 Trader's Mistakes 1 - Lack of knowledge of market operation, technical and fundamental analysis, mass psychology and market cycles In the boom period, when a large number of new participants enter the market, many people believe themselves to be the "god of trading" and the "master of the markets." Beginners are satisfied with a 10-20% profit during the expansion phase, whereas quotes for liquid cryptocurrencies show a gain of 30/50/150%. Everything is contrary to the logic of the majority, which is how markets function. Sadly or luckily, the majority of individuals make common errors and are unable, due to a lack of understanding, to differentiate the fine line when an uptrend is replaced by a downturn and the distribution phase is replaced by a prolonged decline. At the moment of trend reversal, a psychological trap and a sequence of catastrophic events are established for the majority of participants, and a number of concomitant circumstances and lack of experience make it impossible to see the situation objectively. When the market is at its "bottom," the majority loses faith in growth: some sell out and abandon the market, while others wait even lower, do not purchase, and begin shopping only when everything has increased by hundreds of percent. Solution Study theory. Dow Jones theory, the fundamentals of technical and fundamental analysis, and any information regarding market cycles will be of great use. Examining the graph using large timescales, such as days, weeks, and months. You may find a wealth of material about the fundamentals of trading in the public domain or in the trading part of our website. 2 - Covetousness resembles a psychological trap Trading greed presents itself in numerous ways. Many are attracted to the cryptocurrency market by the idea of quick money, but the majority's problem is a lack of understanding of the mechanisms that move the market and how it functions. In order to arouse greed, pampas are constructed with a single "stick to the sky." Everyone sees a growth of 1000%, and as a result, earnings of 20/40/50 and even 200% no longer appear so promising, people do not sell, they are waiting for more, and the price falls into the red. Purchasing a full deposit's worth of cryptocurrencies in a single transaction is also greedy. The typical justification for such a "tactic" is that 10% of the overall deposit is greater than 10% of the portion of the deposit. Yet, when the price declines, the trader incurs losses and cannot cut the average entry price at lower values. Another example is missed opportunity syndrome, or FOMO. The price of the item has climbed by an inadequate amount over the course of one or more candles. Seeing this process, a novice decides to purchase the asset because he believes the price will continue to rise, resulting in losses. Many make the mistake of wanting to gain a lot of money quickly, but this is impossible. Fear and greed are particularly harmful emotions for traders. Solution The market requires a sensible strategy. Greed stems from inexperience and the fear of being late. Refrain from making decisions based on emotions and haste. It is essential to recognize that chances arise and disappear regularly on the market. Before initiating a trade, you should assess and justify your motives for doing so. 3 - Trading in emotional instability and excitement Any emotion in trading is detrimental. The decision to enter or exit a transaction must be calculated beforehand, devoid of emotion and haste. Emotions make it difficult to appraise the situation accurately, and you run the danger of making a mistake that may result in losses. Yet, since emotions are innate, it is impossible to eradicate them entirely; however, they can be managed. If emotions prevail, it is time to close the trading terminal and go on to other tasks. If you wake up at night to check bitcoin prices or are unable to fall asleep, this indicates that you have already made key errors in your risk management system, or that you do not have one. And this requires immediate action and, as much as possible, a "cool" head. Solution Take a break from the trading terminal, spend time with loved ones, or go for a stroll; you need emotional relief and rest from time to time. Sports are effective stress reducers. If you have already reached the point of insomnia and emotional breakdowns, you must conduct a thorough analysis of your risk management strategy and take sometimes difficult measures. If you have executed a number of unproductive transactions or one with an insufficient loss and you have the impression of "winning back," close the trading terminal immediately and do not trade on this day. Do not treat trading as a game of chance; in this emotional condition, you have no chance of success. 4 - leveraged trading Margin instruments can be effective in the hands of a competent trader, though not always and only under certain conditions. This is simply an unmanageable machine for liquidating a deposit in the hands of a novice. Futures and margin are verboten for rookie traders, since you face the risk of not having time to develop experience, but losing your deposit instantly. The average daily volatility of liquid instruments in a sideways movement can reach 3 to 10%, which indicates that squeezes may exceed adequacy when utilizing the 10th leverage - movements by 30 to 100% - on low-liquid pairs. When utilizing such leverage, setting a stop-loss is already problematic, as a stop-loss that is too far away would result in enormous losses in the event that it is triggered, and in nine out of ten situations it will be eliminated by an acceptable percentage. In addition, you will pay a commission for financing, taking into account leverage and transaction commissions. Exchanges will gladly offer you with as much leverage as you like, but this is no longer trading; with this strategy, you have a greater chance of winning money at a casino. Solution Study the fundamentals of trading, master numerous techniques, develop your own trading strategy, and gain real-world trading experience on the spot market by physically purchasing and selling various assets. You will eventually comprehend how the market operates. Under certain circumstances, success on the spot market can be enhanced with margin. 5 - Uselessness of stops Stops in trading are a substantial issue; stop-loss orders are covered in a different article. Stop-loss orders are frequently used irrationally or ignored by novice traders. Traders can be roughly divided into two groups: those who always use stops and those who prefer to operate without them. However, these are extremes. A stop positioned too closely is liable to be obliterated, while the absence of a stop under certain conditions can result in enormous losses. It is irrational to use stops during the accumulation phase because, in about eight out of ten instances, stops are eliminated precisely at those levels when there is a substantial accumulation of them, following which the price reverses and moves in the opposite direction. And when a significant upswing is established after a period of accumulation, a knockout almost always comes; it would be a shame to watch the price rise without participating. Yet there is a tight line here; you must be certain for a large percentage that this is the accumulation period, and you need also have a plan for price averaging, i.e. fiat in reserve. It is irrational to work in the distribution phase without stopping, just as it is crazy to labor in the accumulation phase with a pause. This is significant because many people lose in these situations due to lack of expertise. Eventually, the distribution is finished and a decline occurs, frequently abruptly and by a substantial percentage. Stopping dramatically minimizes the loss. If you have already opened a position and the price moves significantly in your favor, it becomes sense to place a stop-loss to safeguard profits so that if the price reverses, you will still make a profit and not a loss. While dealing with margin instruments, stops are required! Solution If you have no trading experience, we recommend that you constantly utilize stops until you understand how they operate. If the fundamentals are understood, they should be applied sensibly to the circumstance. Similarly, if you were stopped out by a stop, you do not need to re-enter the trade, pause trading, identify what went wrong, and then determine the next entry point. 6 - Non-fixing losses incurred when the price moves against you but you do not close your position If a trader becomes an investor owing to circumstances rather than his own volition, he is a poor trader. The "HODL strategy" is an explanation for a trader's insolvency and their own faults. Long-term asset freezing is the worst thing that can happen to a trader - "I'll wait out the crypto winter and still sell for a profit" is not a trader's behavior model. It does not matter to a trader what the current trend is; he must have effective strategies for any scenario. Waiting out losses is a waste of resources since there is volatility at every price level, and volatility is an opportunity to make money. Trading on financial markets necessitates the presence of lost deals; it's just the nature of the business. No trader has 100 percent profitable trades, and this is typical. Profitable trades must cover bad trades, and losses must be contained. If you are unwilling to recover losses when the price moves against you, you lose control of the situation and become a victim of circumstances. Solution Before entering a trade, you should have a contingency plan in place in the event that the price moves against you. In certain circumstances, this may involve deliberate averaging, while in others, it may include fixing losses. Recognize that losing transactions are a normal part of the process. 7 - Transaction concluded too quickly We touched on this topic briefly at the beginning of the article. The scenario is typical: a trader enters a position and the price begins to move in his favor. The trader takes profit at the predetermined level, but the price continues to rise. In itoge, fixed profit represents a modest proportion of the whole movement. The circumstance is representative of a powerful trend. It would be a stretch to call this a mistake because the profit is fixed; however, in the case of a trading strategy with a limited number of assets, it can take a very long time to wait for the price to roll back below the exit point, in some cases an entire year, and in other instances, the quote may not return to its previous levels. Solution 8 - Depending on your trading approach, there are a variety of solutions, including: The gradual sale of a previously acquired asset at varying prices. Selling of a portion of the asset to remove the invested funds from the transaction and earn a little return, reserving the remaining position (conditionally free asset) for longer-term objectives. Profit protection with a stop-loss order and its progressive approach to the quote, but not too close so as not to be eliminated prematurely. Deviation from the strategy or vice versa - lack of action flexibility Confusion, agitation, and swinging between extremes are certain indicators of a lack of a trading strategy or an indication that it was constructed wrong. Planned action eliminates the possibility of unanticipated situations and makes risks manageable. The plan must account for both potential profits and losses. Frequent strategy adjustments during the trading process are typically detrimental. The contrary is also true: a trading strategy must be adaptable to the current market environment. For instance, you are in a position and the price is moving in your favor, everything is going as planned, you are almost at your goals, but then you learn that the project whose coin you are trading was hacked. In such a circumstance, you will have very little time to make a choice. In such a circumstance, blind adherence to the strategy will definitely result in losses. Solution Your activities must be automated, and you must have a well-thought-out trading plan that takes into consideration all possible eventualities. In the event of a force majeure, it is vital to make swift decisions and build market-specific flexibility. 9 - "Finding knives." Investing a major portion of the deposit in the purchase of an asset amid a severe price decline is a bad choice. It is known as "catching knives" in business parlance. No one can accurately predict where the price will stop fluctuating and begin to consolidate. Before making a decision based on a thorough analysis of the situation, it is vital to comprehend the core cause of such a decline. You cannot make purchases after the upcoming autumn without comprehending the market's overall condition. After distribution at the peaks, the value of altcoins can decrease by 70 to 99 percent. To clarify, an asset in a bear market can lose 50% in a day, 50% in price, another 50% in a day, and another 50% in a day dozens of times before reaching its ultimate bottom. In addition, it is not a certainty that he would recover after this, particularly if it is an illiquid asset, of which there are thousands. Solution If you continue to employ this technique in your trading strategy, you should limit your exposure by allocating a smaller portion of your entire deposit and bear in mind that this "bottom" may not be the last one. With this strategy, it is crucial to master the fundamentals of technical analysis and how to construct horizontal levels and trend lines. 10 - Absence of system, algorithm, and subjective opinion You must know beforehand where you are buying and selling, what portion of your deposit you are working on, the permissible losses, and the rationale for these activities at the same levels. All of this is a trading strategy. In acts, there should be no spontaneity, excessive self-assurance, or hesitancy. You should not take the subjective opinion of another as the truth. The more confident words and assertions sound, the more confidence they inspire on a psychological level, directly into the subconscious, and you begin to feel that these are your own thoughts. The bitcoin market is rife with numerous types of manipulation; therefore, every information must be double-checked. The situation is compounded by the fact that newcomers are frequently directed by their own expectations and desires rather than by objective data. For instance, a break in a trend or a breakdown of a horizontal level is objective evidence, whereas an item that is overbought or oversold is merely an opinion. Solution Incorporating risk management and financial management into your own trading strategy. Use objective knowledge, not the opinion of others, for analysis. If you consume a great deal of information regarding the crypto sector, you need carefully select your sources and listen to opposing viewpoints on the situation. 11 - Ineffective financial management Money management should be the default inclusion in your trading plan. This entails splitting both the deposit and the assigned amount to join the asset, as for different trading techniques. It is not suggested to purchase the entire anticipated quantity of cryptocurrencies in a single transaction, since it will be unable to equalize the entry price in the event of a price decline. Beginners frequently make this error while purchasing something with their entire deposit. In addition, money management covers the distribution of trading and storage locations for assets. We do not encourage trading on a single exchange; use many exchanges. If your bitcoin is sitting idle on an exchange, withdraw it to a cold wallet or hardware wallet. Solution 12 - Money management must be an important component of your trading plan Too slothful to retain records No professional trader would conduct business without keeping transactional statistics and records. It is impossible to comprehend one's own efficiency without this. Some exchanges provide account analytics at a high level, while others do not; however, all statistics are maintained for a specified time frame. After a while, you will forget the prices at which you acquired your own investment portfolio. It will be unusual to sell an item without knowing if you are making a profit or a loss. A trading journal will educate you more than a dozen trading books combined. Record the purchase price, date, exchange, reasons for entry, feelings during the transaction, and similar information. After a period of time, you will be able to study and comprehend the causes of past errors and successful transactions. Solution 13 - Notepad, pen, and a methodical approach. Overestimated dangers Regardless of the size of the deposit, restrict the allocated funds for high-risk strategies to a specific amount or percentage. In the event of a loss, continue trading with the current balance without replenishing it. If a profit is made and the balance increases, transfer a portion of the money to less risky methods or withdraw them to fiat. Elevated risks include x5+ leverage, starting a trade with the full deposit or a substantial portion, entering an asset with a single order without averaging, and trading illiquid assets. Solution 14 - A methodical approach to risk management. Do everything and you will fail There are various methods for constructing working portfolios. Someone trades many specific altcoins, someone trades simply bitcoin, and someone trades circumstances without reference to particular assets; however, success is the most important factor. The enormous number of active cryptocurrencies is one of the primary obstacles for newbies. To handle the situation, it is required to comprehend a variety of project-related aspects, including fundamental analysis, technical analysis, order book status, transaction history, project-related news, price, etc. It is physically impossible to control more than five assets simultaneously without the assistance of a team of analysts. By working with many cryptocurrencies, you run the danger of losing focus and overlooking crucial nuances that will effect the outcome. Solution Initially, do not trade more than three assets; if you can keep track of a larger number, you may gradually increase the quantity. 15 - Inability to withdraw from the market and await suitable conditions. Staying out of the market is one of the most difficult aspects of trading for most novices. There are times when the wisest course of action is to monitor the market. It is not true that the more transactions there are, the greater the profit. You can conduct dozens of transactions per day and incur a loss in a month, or you can conduct two or three transactions per month and earn a profit. It is easier to work during the growth phase, and without theory and experience, it is nearly difficult to earn a profit during the flat and downturn phases. If it were possible to make money during the growing phase, the ideal course of action during the turning point would be to take a vacation or limit the trading portion of the initial deposit in order to get expertise trading with little sums. The remaining 99% of a trader's time is spent on self-development, market analysis, hunting for opportunities, and waiting for advantageous entry points into trades. Solution Utilize the time while you are out of the market to your advantage. Instead of mimicking a monkey's actions, participate in self-education: read foundational literature on trading, discover new trading tactics, and study the assets you're interested in as thoroughly as possible. In this way, at the moment when a beneficial situation occurs on the market, you will be ready for it. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
1
Traders balance between intellect and emotionsHow can traders create a balance between intellect and emotion? In trading, rationality and passion are two sides of the same coin. Rationality helps us make educated and reasonable trading decisions, but unbridled emotions may be harmful. How do traders strike a balance between these two factors? - Understand your emotions and their influence on your trading is the first step. For instance, if you experience panic when you lose, you may terminate the deal early than necessary. If you are excited about winning, you may hang onto a position longer than required. Understanding your emotions and their influence on your trade can enable you to exert greater control over them. - Create a trading strategy based on facts and data, not on your emotions. This will assist you in making more educated trading selections and avoiding emotional mistakes. Create a risk management compliance system that will assist you in minimizing losses and maximizing profits. - Practice yoga and meditation to enhance your emotional control. This can help you become calmer and more concentrated, which will allow you to make better trading judgments. - In conclusion, the equilibrium between intellect and emotion in trading is crucial for success. By understanding your emotions, adopting a sensible trading plan, and practicing strategies for emotion regulation, you may reach incredible harmony and balance, as well as make better educated trading judgments. Throughout the trading process, you must practice and continually evaluate your psychological condition. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
Best advice for achieving success in trading!✅Here's the deal, guys. If you want to make this year a successful year in trading, you got to have an edge. It doesn't have to be rocket science, just a solid strategy. There are plenty of resources out there, so don't be shy to do your research. Once you got a strategy, test it out with a small account or paper money before committing fully. And when you commit, commit fully. Don't be that person that changes their mind after one loss. Ignore the noise on social media and focus on your own system and 'PnL. It's none of your concern how other people are trading. Don't buy the hype. You're not going to turn chump change into a fortune overnight. Trading has its ups and downs. So, don't be caught off guard and expect the unexpected. And always be ready for the ride. And here's the truth, not every trade will be a winner. But there will be a select few that'll make up for the majority of your 'PnL increase. Just make sure you have enough capital to cover 'bills, taxes, and other boring stuff. And don't be dumb and emotional. Risk management and trading psychology are crucial. If you're having panic attacks before executing a trade, it's a sign you're either not suitable for trading or you're taking excessive risks. Take a step back and assess your current financial situation and the amount of money you're putting in. Embrace failure as fuel. It's not a setback, but a lesson in disguise. Realize that success is not a straight path, but a journey full of ups and downs. And lastly, come prepared. Write down a plan for each day, whether it's a simple excel sheet or a written plan. It'll help you stay focused and aware of what's happening in the markets. And remember, trading is hard. Don't fall for the social media hype that makes it seem easy. Happy trading!
COINBASE:BTCUSDEducation
by TradingEdgeHQ