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DON’T Look at a screen all day! - Here's whyStop Watching Your Trades All Day Have you ever found yourself glued to your screens, watching every tick of the market, and feeling the stress levels rise? If so, you’re not alone. You might find it productive and what is essential but it’s actually a more dangerous habit than you might think. Watching every tick will rise your cortisol (stress) levels. It might cause you to take impusive trades. And you might adjust your trading levels when you shouldn’t. And so in this piece of writing I’m going to show you why you should stop watching the screens all day. The Cortisol Rush Every time you check the market and see a fluctuation in your trades, your body responds by releasing cortisol, the stress hormone. While cortisol is useful in fight-or-flight situations, in trading, it can lead to quick and unnecessary decisions. And you’ll end up taking more lower probability trades than you should. It’s time you lead a more balanced, stress free and calmer trading life. Distraction from Higher Priorities Trading should be a part of your life, not the entirety of it. You shouldn’t obsess over every market movement. Your job is to wait for high probability trades to line up, take them and then let the market take over. Also, you the trick is to focus on other vital aspects of your life like: family, health, and even your full-time job if you have one. Balance is key to sustain success in both your personal and professional life. Now there are a number of benefits when NOT looking at a screen all day. Benefit #1: Beter Decision-Making When you’re not constantly reacting to market volatility, you have more time to analyze your strategies and make more informed decisions. This way you can priortise in what is absolutely needed to act on when you do trade. Benefit #2: Improved Quality of Life Life is NOT just about trading. So once you’ve taken a trade and reduced your screen time, you will be able to free up time for other activities that enhance your well-being. I’m talking about things like exercise, hobbies, and time with loved ones. A well-rounded life supports better mental health, which in turn can improve your trading performance. Benefit #3: Increased Productivity Believe it or not, spending less time watching your trades can actually make you more productive. You will also have the right amount of energy and focus to set specific times to check the market and stick to a trading plan. Time management is everything. This disciplined approach can lead to better outcomes than erratic, all-day monitoring. So how do you use your time for when you trade? ACTION #1: Use Alerts Wisely: Analyse and set up your trading alerts for specific price levels, when your strategy lines up or wait for my trading ideas where I do all the work for you. Let technology or a mentor help you t so you don’t have to watch the markets to do the monitoring for you. ACTION #2: Create a Balanced Schedule: You should also take the time to Incorporate other important activities into your daily schedule. This could include exercise, reading, or spending time on a hobby. It’s all about creating a healthy work-life balance. ACTION #3: Check and review your Trading Plan Regularly: When you review and check your trading track record and journal, this will tell you whether you’re on the right path to growing your portfolio. You need to base this time on looking at the stats, metrics, seeing the mistakes you made. And where you are with your trading in total. This only requires you to do this once a week or so. And it will reduce the time you think you need to constantly check the markets. FINAL WORDS: As I always like to say sometimes less is more. Drop the screen time and focus on what is important. Lower your stress and keep to a well-balanced trading life. This way you’ll be able to integrate trading in a more effective and profitable way. Trade well, build wealth.
JSE:J200Education
by Timonrosso
1
Why it PAYS to be a PATIENT trader - 5 ReasonsPatience isn’t just a virtue. Patience is your portfolio’s best friend. Now you might think that patience is just sitting on your hands and doing nothing. It’s not! It’s about taking the time to prepare, analyse and wait for when the moment arrives. And that’s why you have to keep your eyes peeled and ready to take on the big bad market. So here are 5 reasons why it pays to be a patient trade. 🚦 #1: Stops You From Making Impulsive Decisions Ever caught yourself hitting the ‘buy’ button for the sake of taking a trade? You’re not alone. Impulse is the enemy of reason, and in trading, it’s the fast track to a thinner wallet. Remember, the market will always be there tomorrow, but the same can’t be said for your capital. Impulsive decisions normally yields LOW probability trades. And that’s a reason in itself to STOP doing it. Why take the risk? 🔍 #2: Helps You Spot High Probability Trades The markets speak to those who listen. Patience gives you the superpower to cut through the noise and hone in on high-probability trades. It’s like having a financial crystal probability ball. Instead of predictive qualities, you’re armed with analysis, trends, and a likelihood of how a trade is more likely to play out. Remember, more trades from all types of markets don’t mean more wins. Often, they just mean more fees, more stress and more losses. 🤲 #3: Hold Onto Winners Got a winner in play? Cool… Patience says, “Hold it, let’s ride this wave a bit longer.” It’s the difference between a quick sprint and a marathon. Sure, locking in profits feels good and it looks promising on the portfolio. But in the medium to long run, it’s a traders kryptonite to defeat. Trading patience whispers in your ear, “There’s more to come,” and more often than not, it’s right. 🧠 #4: Takes Away Fixation Obsession is a trader’s Achilles heel. Patience frees you from the chains of market fixation. This will allow you to take a step back, focus on other things and not get hung up on every markets ticks. Stop fixating on your trades once you’re in. You have the strategy in play, you have risk and reward levels setup. Let them be and follow your strategy (regardless of whether it’s a winner or a loser). 🐆 #5: Wait for the Prey In the wild, the most successful predators are those that can wait, watch, and pounce at the perfect moment. A leopard will wait for hours in the tall grass. But when the probability is high and the leopard has done its instinctual calculations – it will pounce and WIN. You’re not chasing every gazelle; you’re waiting for the right one, the one that’s worth the energy. It’s about being proactive, not reactive. You set your terms, your entry, and exit points, and then you wait. The market will move; it always does. And when it moves into your crosshairs, that’s when you strike. So let’s sum up the reasons it pays to be a patient trader. 🚦 #1: Stops You From Making Impulsive Decisions 🔍 #2: Helps You Spot High Probability Trades 🤲 #3: Hold Onto Winners 🧠 #4: Takes Away Fixation 🐆 #5: Wait for the Prey
JSE:J200Education
by Timonrosso
EGO NO GO Traders’ Downfall: Six Actions to AvoidThere is NO place for ego and bravado with trading. If it falls under your personality, you have been warned. Do you know why? Because ego and emotion are traders’ kryptonite. In this piece, we’ll dive into the egotistical trader’s playbook and shine a light on six actions that could be crippling your trading game. EGO NO GO #1: Overtrade: More is Not Always More Overtrading is like trying to sprint a marathon; it’s unsustainable and a fast track to burnout. You need to pace yourself or you’re going to get a spasm or a stitch. As a trader, you’re not a machine-gun trader, firing rounds at every shadow. You need to only look and wait for the highest probability trades. Remember, it’s about the right trades, not just more trades. Solution: Quality Over Quantity as I always tell my MATI Traders! EGO NO GO #2: Revenge Trade: The Emotional Spiral After a loss, I know it feels tempting to jump straight back into the markets in order to recover your funds. But let’s face it… Revenge trading is about as effective as using a leaky bucket to bail water out of a sinking ship. Solution: Keep Cool and Carry On Clear your head. Take a walk, grab a beer – The market will always be there for you the next day. And it will probably dish out even better trades. Remember, the market doesn’t know you, and it certainly doesn’t owe you. Stick to your plan, not your pride. EGO NO GO #3: Ignore Risk Management: The Silent Killer If you ignore risk management, it’s like skydiving without checking your parachute. What if you jumped and instead of a parachute you’re wearing a backback? Don’t laugh, these things happen. With trading you need your risk management measures: Stop loss of less than 2% Drawdown management when the portfolio goes down. Risking money you can emotionally handle to lose. Making sure of your trade size. Checking your risk to rewards. Ensuring you’ve protected your positions. Solution: Plan Your Risk Decide on your risk parameters before you enter a trade, and then—this is key—stick to them. Your future self will thank you. EGO NO GO #4: Dismiss Market Analysis: Gut Feelings vs. Hard Data You also need to check the weather. By weather I mean, look at the news events coming out for the day and week. Is it NFP (Non Farm Payrolls)? – The day when you DON’T day trade. Is it CPI (Consumer Price Index)? – The day you DON’T Trade Is it FOMC where the federal committee talks and causes volatility? Solution: Check the news events and be vigilant. EGO NO GO #5: Blame Everything: The Pointless Game When trades go south. They look to blame. They point fingers to their mentors, their strategy, themselves. There is NO blame game with the markets. If you followed your rules, strategies, risk to reward and everything else – You did the best of your ability for that trade. Solution: Own your trade to Hone your trade It Accept responsibility, learn from your mistakes, and grow stronger. It’s the only way. EGO NO GO #6: Fail to Adapt: Evolve or Be Left Behind The market is a beast that’s always changing. I always say adapt or die. Feel the general market’s environment. Know whether it’s in a favourable or unfavourable period. Tweak your system to improve your metrics. Change the markets by adding or removing ones that aren’t working. Take ego out of the analysis. Solution: Stay Sharp, Stay Updated FINAL WORDS: I’m sure you already feel less egotistical when it comes to trading. And that means, this article has done it’s job. Whenever you feel ego creeping in, remember this article save it and store it. In fact go through all the articles that resonate, print them and store them in a file. It will be your guide to trading well! Let’s sum up the ego tendencies and how to avoid them… Avoid Overtrading: Less can be more. No Revenge Trading: Act with strategy, not emotion. Stick to Risk Management: It’s your safety net. Conduct Market Analysis: Never trade uninformed. Stop the Blame: Learn and move forward. Adapt to the Market: Evolve your strategy to stay relevant.
JSE:J200Education
by Timonrosso
6 INEVITABLE Stock Market DownturnsIn the world of stock trading, and crypto trading, volatility is as much a part of the landscape. Whether you’re a day trader or a long-term investor you’re bound to undergo different degrees of stock market downturns, drops and crashes. And each level of downturn has its own set of characteristics, challenges, and strategies for recovery. Let’s dive into the nuances of market downturns, so you can navigate these stormy waters with confidence and savvy. DOWNTURN #1: Down -2%: A Ripple of Volatility Think of a -2% drop in the stock market as your morning coffee spilling over a bit—it’s unpleasant but hardly the end of the world. This level of decline is typically seen as a blip of volatility, a common occurrence in the stock markets that often corrects itself in the short term. DOWNTURN #2: Down -5%: The Pullback Perspective When the market drops by 5%, it’s is often referred to as a pullback and, while it might cause a bit of concern. However, if you look at the bigger time frame, you’ll see it might not signify a long-term trend. DOWNTURN #3: Down -10%: Entering Correction Territory A 10% drop is a clear signal that the market is in a correction phase. This is where the uptrend will come to a temporary halt and the market will drop and correct itself. You’ll see moving averages will cross down and the medium term trend will be showing downside. You’ll also most likely look for shorts (sells) and take advantage of the correction. DOWNTURN #4: Down -20%: The Bear Market Looms Now we’re in the territory of the bear market. This is generally characterized by a 20% or more drop. It might be time to look into more defensive stocks or sectors, such as utilities or consumer staples, which tend to be less affected by economic downturns. DOWNTURN #5: Down -50%: The Market Crash Crisis A 50% plunge is the equivalent of a financial earthquake, causing widespread panic and uncertainty. It’s quite rare, but when it happens, it’s all hands on deck. We saw this in the financial crisis. We saw this during the tech bubble. We saw this with the oil crisis. Silver Linings: Even in the darkest times, opportunities can be found. And whenever we’ve had a crash with world markets, they have turned up, made a come-back and moved to all time highs. DOWNTURN #6: Prolonged downside: The Depression This one I don’t have a number for you. Unlike recessions, which are typically shorter and less severe, depressions are rare and can last for several years, causing long-term damage to a country’s economic health. The most famous example is the Great Depression of the 1930s, which started with the stock market crash in 1929 and lasted for about a decade in most countries. During this period, unemployment rates soared, reaching as high as 25% in the United States, while industrial production, prices, and incomes plummeted. Conclusion: Steady as She Goes As I like to say. It’s important to know that the downtrends, downturns and downside will come. We need to be clued up and prepare for these situations. That way we’ll take advantage as traders of what to do. With the right approach, you can not only survive these downturns but emerge stronger and thrive profitably on the other side.
TVC:SA40Education
by Timonrosso
Swing Trading - Using Market Side and Opening Range FiltersSwing trading is a short-term strategy where traders aim to capitalise on small price movements within a financial instrument over a specific period. The goal is to capture gains from these "swings" in the market rather than focusing on long-term trends. In this example, I am trading the GBP/JPY using the market side and the session opening range as filters to determine high probability trading direction: Market Side: This helps to identify the overall trend or sentiment in the market. Session Opening Range: This is the price range between the high and low during the initial period after the market opens. It is used to set reference points for potential entry and exit levels. Here's a simple breakdown: Below the Market Side and Opening Range: If the price is below both the market side indicator and the opening range, this signals a bearish sentiment, and you look for selling opportunities. Above the Market Side and Opening Range: If the price is above both the market side indicator and the opening range, this indicates a bullish sentiment, and you look for buying opportunities. I use the Charts247_WT Custom Indicator Candles for entries and exits, which provide specific signals to enter trades and exit existing positions. This combination of trend filters and entry signals helps improve your trades' accuracy and timing, aligning your actions with the broader market context.
Education
by Charts247TradingAcademy
Finding a section to start tradingHello, traders. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a nice day today. ------------------------------------- The BW indicator included in the TS - BW indicator is an indicator expressed by synthesizing the MACD, StochRSI, CCI, PVT, and superTrend indicators. When the BW indicator - records a high point, it is time to sell, and - When it records a low point, it is time to buy. The BW indicator in the price candle section is the same as the BW indicator included in the TS - BW indicator, but it is an indicator that is expressed in the price candle when a horizontal line is formed at the highest or lowest point. If you look at the position of the BW indicator expressed in the price candle section, you can know when to proceed with a trade. I think you can be confident about starting a trade by referring to the status of the MS-Signal (M-Signal on 1D, 1W, 1M charts) indicator that can confirm the trend. If you add the HA-Low, HA-High indicators here, you can create a more detailed trading strategy. Have a good time. Thank you. -------------------------------------------------- - ​​Big picture It is expected that a full-scale uptrend will start when it rises above 29K. The section that is expected to be touched in the next bull market is 81K-95K. #BTCUSD 12M 1st: 44234.54 2nd: 61383.23 3rd: 89126.41 101875.70-106275.10 (overshooting) 4th: 13401.28 151166.97-157451.83 (overshooting) 5th: 178910.15 These are points where resistance is likely to occur in the future. We need to check if these points can be broken upward. We need to check the movement when this section is touched because I think a new trend can be created in the overshooting section. #BTCUSD 1M If the major uptrend continues until 2025, it is expected to start forming a pull back pattern after rising to around 57014.33. 1st: 43833.05 2nd: 32992.55 -----------------
Education
by readCrypto
1
The Trading Matrix: 14 Vital Lessons DecodedThe Matrix is a movie where no matter what age you watch it, you’ll gain a different perspective from it. And there is a wealth of knowledge and ideas that you can unlock when you dig deep into the movie. A world where the line between reality and illusion blurs, much like the iconic film. The Matrix, with its deep philosophical underpinnings and action-packed storyline. It isn’t isn’t just a cult classic; it’s a treasure trove of lessons for traders. Let’s decode a few trading lessons you can learn from The Matrix. Building Confidence: The Neo Path Remember Neo’s metamorphosis? From Thomas Anderson, a man riddled with doubt, insecurity and worry. To Neo, the confident savior of humanity. This journey is similar to one that a trader takes. You begin with uncertainty, doubt and worry. You then develop greed and ego. The market disciplines and humbles you again and again and again. But then you develop the edge. You adapt to the trading world with gains, losses, drawdowns and different streaks. And then you develop self confidence and resilience as a trader. Like Neo, you might stumble, but remember, every setback is a setup for a comeback. Confirmation Bias: Dodging the Bullet Much like Neo’s iconic bullet-dodging scene, traders must learn to dodge the deadly bullet of confirmation bias. Neo created some form of movements and hand gestures in order to stop the bullets. But what he truly did was create confirmation bias that he was beyond the physics and laws of the universe. And this system is how he was able to go beyond the normal. Create or adopt a trading system that with Confirmation bias, you can identify high probability trades. And even though, you’re using some pseudo system that no one knows about. You’re simply turning chaos into financial order, to have a mechanical process involved – to grow a consistent account. Only by actively seeking diverse viewpoints can you dodge the bias bullet and make decisions that are truly informed. Take the Red Pill: Embrace Reality Taking the red pill is about confronting the brutal truths of the market. The trading world is not a bed of roses; it’s volatile, unpredictable, and sometimes harsh. Those traders who take the blue pill – Only look to win. Only look to build their portfolio with an insane win rate. Only look to go all in on certain positions. When you take the red pill, you take on the realities of trading. You acknowledge the risks. You prepare for the drawdowns. You know you’re going to take inevitable losses. You understand that your past trading does not indicate future results. Those oblivious traders – get destroyed. Like Neo, when you choose the red pill, you choose to see the market for what it truly is, warts and all. There Is No Spoon: The Power of Perspective The “There is no spoon” scene teaches us the power of perspective. In trading, the market isn’t your enemy; it’s your perception that needs adjusting. Bend your mind, not the spoon. Adopt a system which has a flexible mindset. Be ready to pivot your strategies in response to market dynamics. Success comes not from forcing the market to your will, but from adapting your will to the market. Understand the Code – Understand the Matrix Trading involves deciphering patterns, much like understanding the Matrix’s code. The market moves up, down and sideways. Given. But with Price, Volume and probabilities – there is a proliferation of world of opportunities with each market. Develop the ability to read charts, trends, and indicators. Recognize that behind every market movement, there’s a code to be cracked. Agent Smith and Market Manipulators Just as Agent Smith represents a threat within the Matrix, market manipulators pose real dangers. Stay away from markets with: Too much volatility Too many gaps Unusual trading activity Stay vigilant, and don’t be swayed by pump-and-dump schemes or misinformation. They will disrupt your trading journey. Training Simulation: Practice Makes Perfect Remember the scene where Neo was practice fighting in simulations with Trinity and Morpheus? He was testing, improving, adapting and learning. You should do the same before you risk your hard earned money. Test, Test, Test, Forward Test and Real Test. Use demo accounts and simulations to hone your skills. Make mistakes where it’s safe to do so, and learn from them without risking your capital. Morpheus’s Faith: Belief in Yourself Morpheus believed in Neo before he believed in himself. Cultivate self-belief. Trust in your analysis, your strategy, and your decisions. Without belief, fear and doubt will cloud your judgment. The Architect’s Plan: Strategy is Key Understand the market’s architecture. Develop a trading plan and stick to it. Adjust as necessary, but always with the structure of your overall strategy in mind. Free Your Mind: Emotional Control Neo’s journey was as much about freeing his mind as it was about saving the world. In trading, emotional control is paramount. You need to learn to let go of Ego, Fear and Greed. These are your greatest enemies. You can do this by: Having a strong back tested track record to prepare for what is to come. Risk even less until you don’t feel the losses. Real trade with the smallest positions to get an idea on how the markets work and will operate when you incorporate costs. Train yourself to remain calm and objective, regardless of the market’s ups and downs. FINAL WORDS: The Path to Financial Awakening Trading, is much like deciphering the Matrix. It is an ongoing journey fraught with challenges, revelations, and the need for constant adaptation. The key points to remember with the Trading Matrix are: Building Confidence: The Neo Path Develop self-belief through education and resilience. Confirmation Bias: Dodging the Bullet Seek diverse viewpoints to make informed decisions. Take the Red Pill: Embrace Reality Embrace the reality of the markets with all its risks. There Is No Spoon: The Power of Perspective Adjust your perspective and adapt to market dynamics. Understand the Code – Understand the Matrix Understand the code behind market movements. Agent Smith and Market Manipulators Stay vigilant against market manipulation. Training Simulation: Practice Makes Perfect Use simulations to hone your trading skills. Morpheus’s Faith: Belief in Yourself Cultivate self-belief and trust in your decisions. The Architect’s Plan: Strategy is Key Develop and stick to a well-thought-out trading plan. Free Your Mind: Emotional Control Master your emotions to remain calm and objective.
TVC:SA40Education
by Timonrosso
Options Blueprint Series: Cost Efficient Skip Strike ButterflyUnderstanding Skip Strike Butterfly The Skip Strike Butterfly strategy is a unique and cost-effective options trading strategy that builds upon the traditional butterfly spread. This strategy involves buying and selling options at different strike prices to create a position with limited risk and potential for profit. Unlike the traditional butterfly spread, the Skip Strike Butterfly "skips" a strike price, which reduces the overall cost of the trade while maintaining a similar payoff profile. Benefits: Cost Efficiency: Lower upfront cost compared to traditional butterfly spreads. Limited Risk: The maximum risk is limited to the net premium paid for the strategy. Profit Potential: Potential for significant returns if the underlying asset moves within the expected range. Understanding the mechanics of the Skip Strike Butterfly strategy can provide traders with a versatile tool for navigating market conditions when trading Corn Futures. This strategy allows traders to participate in market movements with a well-defined risk and reward profile, making it an attractive option for those looking to optimize their trading costs. Strategy Setup Setting up the Skip Strike Butterfly strategy for Corn Futures involves selecting the appropriate strike prices and expiration dates. Here, we detail the steps to configure this strategy effectively. Steps to Set Up the Skip Strike Butterfly: 1. Select the Expiration Date: Choose an expiration date that aligns with your market outlook and trading plan. Ensure you select an expiration that provides enough time for the expected price movement to occur. 2. Determine the Strike Prices: Identify the current price of Corn Futures. Typically, use calls for bullish setups and puts for bearish setups. Buy one in-the-money (ITM) option. Sell two at-the-money (OTM) options using a strike located near to where the trade target price is. Skip one or multiple strikes and buy one further out-of-the-money (OTM) option. 3. Calculate the Cost: Calculate the net premium paid for the strategy by considering the premiums of each option involved. The net cost is generally lower due to the skipped strike price. 4. Establish the Payoff Structure: The maximum profit is realized if the price of Corn Futures closes at the middle strike at expiration. The maximum loss is limited to the net premium paid for the strategy. Application to Corn Futures Analyzing the current market conditions for Corn Futures is crucial before implementing the Skip Strike Butterfly strategy. Let's examine the market and set up a trade based on recent data and trends. Market Analysis: Current Price: Corn Futures are trading at 456'6 per contract. Market Trend: The market has shown moderate volatility with a tendency to hover around the 450 level. Technicals: Recently, buy UnFilled Orders (UFOs) have formed around the 450 level, indicating strong buying interest and potential support at this price. On the other hand, sell UFOs are positioned much higher, around the 490 level, suggesting limited selling pressure in the immediate range and opening the door for a directional move with a potentially strong reward-to-risk ratio. Setting Up the Trade: Based on our analysis, we will implement the Skip Strike Butterfly strategy as follows: Current Price of Corn Futures: 456'6 Expiration Date: 74 days from today. Strike Prices and Premiums: Buy 1 ITM Call: Strike Price 450, Premium 27.25 Sell 2 ATM Calls: Strike Price 480, Premium 16 each Buy 1 OTM Call: Strike Price 540, Premium 6 Net Premium Paid: 27.25 (buy) - 32 (sell) + 6 (buy) = 1.25 points = $62.5 (Point Value is $50/point) Source: Options chain available at www.tradingview.com Trade Execution: Entry Price: The trade is entered at 1.25 points, making it highly cost-efficient. Target Price: The optimal scenario is for Corn Futures to close at 480 at expiration, where the maximum profit is realized. Break-Even Points: Calculate the break-even points to ensure clarity on potential losses or gains. For this setup, the break-even points are 451.25 and 508.75. Risk: In the worst-case scenario, this trade could incur a loss of 31.25 points if Corn Futures surpasses the upper break-even point. Conversely, a minor loss of 1.25 points would occur if Corn Futures falls below the lower break-even point. Source: Risk profile graph available at www.tradingview.com Risk Management Risk management is a critical aspect of any trading strategy, and it is especially important when trading options like the Skip Strike Butterfly. Effective risk management helps protect against unexpected market movements and ensures that losses are minimized while maximizing potential gains. Importance of Risk Management: Limit Losses: By setting clear stop-loss levels, traders can limit the amount of capital at risk and prevent large losses. Preserve Capital: Protecting trading capital is essential for long-term success. Effective risk management allows traders to stay in the game even after a series of losing trades. Emotional Control: Having a risk management plan helps traders stick to their strategy and avoid emotional decisions driven by market volatility. Maximize Gains: Proper risk management enables traders to capitalize on profitable opportunities while keeping losses in check. Techniques for Managing Risk with Skip Strike Butterfly: 1. Stop-Loss Orders: Set stop-loss orders at predetermined price levels to automatically exit the trade if the market moves against you. 2. Position Sizing: Only allocate a small percentage of your trading capital to any single trade. This helps to mitigate the impact of any one trade on your overall portfolio. 3. Diversification: Diversify your trading strategies and instruments to spread risk across different markets and reduce the impact of adverse movements in any one asset. 4. Hedging: Use other options strategies to hedge your positions. For example, buying protective puts can limit downside risk if the market moves significantly against your position. 5. Regular Monitoring: Continuously monitor the market and your positions. Be prepared to adjust your strategy or exit the trade if market conditions change. Conclusion The Skip Strike Butterfly strategy offers a cost-efficient and flexible approach for trading Corn Futures. By strategically setting up options at different strike prices while skipping an intermediate strike, traders can reduce the cost of the trade while maintaining a similar payoff structure to a traditional butterfly spread. This strategy is particularly useful in markets exhibiting limited price movements, making it ideal for the current conditions in Corn Futures. Key Takeaways: Cost Efficiency: The Skip Strike Butterfly reduces the upfront cost of entering a trade, providing a significant advantage over traditional butterfly spreads. Limited Risk: With a well-defined risk profile, this strategy ensures that losses are capped at the net premium paid. Profit Potential: Although the maximum profit is achieved if the underlying asset closes at the middle strike price, the strategy still offers substantial profit opportunities within a specific price range. Risk Management: Implementing robust risk management techniques is essential for success. Utilizing stop-loss orders, managing position sizes, diversifying strategies, and regular market monitoring can help protect trading capital and maximize gains. When trading options and employing strategies like the Skip Strike Butterfly, it is crucial to stay disciplined and adhere to your trading plan. Always ensure that your risk management measures are in place to navigate market uncertainties effectively. When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies. General Disclaimer: The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
CBOT:ZC2!Education
by traddictiv
Is trading really gambling? Yes and no!I know why you’re NOT trading. You think trading is nothing more than gambling. I get emails every day from members saying things like. “Timon trading seems like going to the casino”. “Timon I don’t want to put money into something that’s gambling” “Timon thanks but I don’t gamble” So you’re not trading because you think it’s like gambling. Well, before you send me another email like this – Please make sure you read this carefully. Let’s dive into the heated debate and let’s see if I agree whether trading is just gambling. Does Timon think trading is just gambling? YES! I do believe trading is a form of gambling. BUT – hold on… Gambling exists in two realms. Chance vs. Strategy There is chance gambling and strategic gambling. Chance gambling is similar to playing slot machines, lotteries, and coin tosses. It’s 50/50. And it’s all up to chance. Have you ever heard of a professional slots player or coin flipper? I don’t think so. Then in the other realm of gambling is known as strategic gambling. The strategic domain is where skill, knowledge, risk management, methodology, probabilities and decision-making play crucial roles. And that my friend, is why I believe trading is a form of strategic gambling. You do get professional and successful poker and black jack players, sports bettors and of course traders. Right? And that’s because you need skill, strategies and the right techniques to WIN as oppose to mere luck. So before you quit trading because you think it’s nothing more than gambling, allow me to go one step further. Let’s talk about the similarities between certain strategic gambling games and see how we can learn from them with trading. Strategic Game #1: Trading and Poker – The art of strategy and risk management Poker and trading share a few similarities. They both emphasize skill, strategy, and a sprinkle of luck. But you need a deep understanding of the rules. You need keen observation of the competitors. You need adeptness at risk, reward and money management. Poker players and traders alike must know when to hold their ground and when to fold. Poker players put their cards down when the probability is low. Traders either don’t take the trade, risk little in medium probability trades and use tools like stop losses to risk little. Poker also teaches the importance of emotional control and patience. And these as I have written many times before, are crucial in trading. Because emotional decisions can lead to significant losses with both poker and with trading. Next game… Game #2: Trading and Roulette Playing the probabilities It may seem at first that roulette leans more towards chance. Red or black, odd or even etc… But the fact that you have a choice, means that it offers you some form of probability. A fundamental concept in trading are probabilities. Traders, like professional roulette players, use statistical analysis to help make informed and better decisions. It is unpredictable what the ball will land on. Just like it is unpredictable which way the market will go. But if you have a sound system, proven track record and winning strategy – you will be able to base the probabilities and tilt the odds in your favour – over time. In trading, while certain market movements can’t be predicted with absolute certainty, we rely heavily on technical, fundamental, statistical analysis and probabilities to make trading decisions. Trading, much like roulette, is where you need to diversify your positions and bets. And you can WIN in the long run if you follow your high probability strategy. Game #3: Trading and Blackjack How a maths boffon can win overtime In blackjack, players make strategic decisions to outmaneuver the dealer. The main goal is to try and get the cards we’re dealt to hit 21, be close to 21 or be closer to 21 than our opponent’s hand. Bet too high past 21 and you burn (lose). This is similar to trading. You need to be able to analyse the marker conditions. You need to be able to calculate your position sizes and risk management according to your trade line up. Both games need you to have a balance of risk, strategy, and knowledge to succeed. Game #4: Trading and Horse Racing Know your horse! Now this is a game that has turned many statisticians into multi millionaires. Horse racing is where you need to know and choose the right horse that will win based on its: Form Characteristics Conditions of the race Weather on the day and other factors. They study the characteristics, and race conditions to a T. They calculate based on past performance on which horse has the higher probability of winning. Traders need to know their horses (markets) too. Every market you choose to trade, has its own personality, form, movements, and style. You need to check to see if the chosen market has worked for your trading system and portfolio over time. And you need to choose the right time, market environment and other factors – before you take on the trade. In horse racing, experienced bettors also diversify their bets across multiple races and horses to spread risk. With trading we diversify our portfolios over different accounts, markets, sectors, instruments and types. Finally let’s talk about the last game: Game #5: Trading and Sports Betting The power of predictive analysis Sports betting, much like trading, relies on predictive analysis to almost see potential outcomes. If you understand a team’s performance, strategy, and conditions – You will be able to make better betting decisions for the next game. As a sports bettor you definitely need to know how to analyse a team’s or player’s form, weather conditions, past scores and more to predict an outcome. Whether it’s football, rugby or cricket – you need to have your winning game plan to increase your chances of winning the bet. Traders do the same. They have different markets like sports bettors have different games. Traders also conduct similar technical, fundamental, sentimental, volume analyses to help predict potential market movements. Both activities involve calculated risk-taking, aiming for high-probability successes based on thorough research and analysis. Final words: So, as you can see trading is MORE than just gambling. Unlike games of pure chance, trading is a disciplined, analytical pursuit that shares more in common with skill-based gambling. It does require you however to have the right knowledge, strategy, and strong risk, reward and money management. Let’s sum up the games and sports vs trading so you can remember what we’ve covered today: Game #1: Trading and Poker – The art of strategy and risk management Game #2: Trading and Roulette – Playing the probabilities Game #3: Trading and Blackjack – How a maths boffon can win overtime Game #4: Trading and Horse Racing – Know your horse! Game #5: Trading and Sports Betting – The power of predictive analysis DO YOU THINK TRADING IS LIKE GAMBLING?
JSE:J200Education
by Timonrosso
Trend lines are also lagging(?)Hello, traders. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a nice day today. ------------------------------------- I think trend lines are drawn to find out the trend that appears when candles are formed. Therefore, since they are drawn after candles are formed, they can be called lagging. However, since there is a characteristic of moving along a trend that has been formed unless there is a special issue, chart analysis is done by referring to trend lines. To draw trend lines, you need to understand the arrangement of candles. If not, there is a high possibility that it will be a meaningless line, so you need to study candles in advance to draw trend lines. The point to use as a reference when drawing trend lines may vary depending on your investment style. When drawing a trend line, I draw it according to the following rules. 1. Connect the opening price of the falling candle among the price candles corresponding to the high point of the StochRSI indicator (indicated by the blue line) 2. Connect the low point of the price candles corresponding to the low point of the StochRSI indicator (indicated by the light green (#00FF00) line) The setting values ​​of the StochRSI indicator are 3, 3, 14, 7 (K, D, RSI, Stoch). However, the source value is the value of the Heikin-Ashi candle (Open + Close) / 2. The difference can be confirmed by the StochRSI indicator and the Stoch RSI indicator of the TS - BW indicator on the chart. 1. Use the high point formed when the StochRSI indicator rises above 80, 2. Use the low point formed when the StochRSI indicator falls below 20. Exclude any low or high points formed other than these. The trend line connecting the low points can be connected by connecting the low points of the price candles. However, the trend line connecting the high points must connect the opening price of the falling candle among the price candles, so when the price candle where the high point of the StochRSI indicator is formed is an upward candle, the opening price of the first falling candle among the right candles is specified and used. Therefore, since there is a difference between the StochRSI indicator of the TS -BW indicator and the general StochRSI indicator, it is recommended to use the StochRSI indicator formula of the TS - BW indicator if possible. When the StochRSI indicator entered the oversold zone and formed two low points, the trend line was not drawn by connecting the two low points. Therefore, the trend line is drawn as shown on the chart. Both the most recently drawn trend lines (1) and (2) are down, so it seems likely that a change in trend will occur. However, since it is virtually impossible to know with just the trend line, it is recommended to comprehensively evaluate by adding auxiliary indicators. Therefore, it is recommended to refer to the BW indicator, which displays MACD, StochRSI, CCI, PVT, and SuperTrend indicators. If the BW indicator is rising from the 0 point, it means that the trend is rising. On the contrary, if it is falling from the 0 point, it means that the trend is falling. Since the BW indicator is currently above the 0 point, we can see that the trend is rising. Therefore, when looking at the trend line and the BW indicator comprehensively, we can respond by selling when it falls from the recently drawn trend lines (1) and (2). However, since the BW indicator is in an upward trend, it is recommended to respond with a split sell rather than a 100% sell. It is still difficult to determine the timing of trading with the trend line alone. Therefore, it is recommended to select the timing of trading by indicating the support and resistance points. In that sense, it is a good idea to add HA-Low, HA-High indicators and use them to select the trading period. Even if you do not use HA-Low, HA-High indicators, you should draw support and resistance lines according to the arrangement of candles on the 1M, 1W, and 1D charts and mark them on the chart to select the trading period. The good thing about using indicators that indicate support and resistance points is that the support and resistance points do not change depending on your psychological state. When you start trading, your psychological state may become unstable due to price volatility, and if you are in an unstable psychological state, you may draw a line incorrectly, which may result in an unreliable line. Have a good time. Thank you. -------------------------------------------------- - ​​Big picture It is expected that a full-scale uptrend will begin when it rises above 29K. The next expected range to touch is 81K-95K. #BTCUSD 12M 1st: 44234.54 2nd: 61383.23 3rd: 89126.41 101875.70-106275.10 (overshooting) 4th: 13401.28 151166.97-157451.83 (overshooting) 5th: 178910.15 These are points that are likely to receive resistance in the future. We need to check if these points can be broken upward. We need to check the movement when this range is touched because it is thought that a new trend can be created in the overshooting range. #BTCUSD 1M If the major uptrend continues until 2025, it is expected to start forming a pull back pattern after rising to around 57014.33. 1st: 43833.05 2nd: 32992.55 -----------------
Education
by readCrypto
Introducing another way to display volume profile sectionsHello traders! If you "Follow" us, you can always get new information quickly. Please also click “Boost”. Have a good day. ------------------------------------- The indicators activated in the settings are those created by trading volume. Therefore, this indicator represents the volume profile section. The indicator that the arrow points to is the indicator I mentioned earlier. By looking at this indicator together with volume candles, you can more clearly identify the volume profile section and support and resistance sections. In addition, you can verify the start of trading by checking the movement of the BW indicator, which consists of five indicators, namely MACD, StochRSI, CCI, PVT, and superTrend indicators. BW-MACD, BW-StochRSI, BW-CCI, BW-PVT, and BW-superTrend indicators are displayed separately to help you understand the indicators. Once your trading timing has been selected, you need to create a trading strategy that suits your investment style. What is important in creating a trading strategy that suits your investment style is the investment period and investment size. Once the investment period and investment size have been decided, you must create a trading method and profit realization method using the information obtained from chart analysis. Trading methods include buying, selling, and stop loss methods. The purchase method should focus on how to lower the average purchase price by purchasing in installments. At that time, when the price falls below the stop loss point and shows resistance, you need to think about how to proceed with selling. When taking a stop loss, you must proceed according to the investment period you have set. For example, if you decide to trade within one wave as a short-term trade and proceed with the trade, but the price falls below the stop loss point, you should be able to sell 100% and then watch the situation. If the price rises after purchasing, you must proceed with selling according to the selling method. The selling method must also be carried out according to the investment period. However, the method of increasing the number of coins (tokens) corresponding to profit by selling the amount equal to the purchase amount can be continued into mid- to long-term trading even if the transaction was done through day trading or short-term trading. The reason is that the average purchase price of coins (tokens) corresponding to profits is 0. If you add other indicators to help you conduct split transactions based on price fluctuations, the chart will look like the one above. If the chart is unfamiliar to your eyes, It is recommended to view only the HA-Low, HA-High indicators and the M-Signal indicators of the 1D, 1W, and 1M charts. Have a good time. thank you -------------------------------------------------- - The big picture A full-fledged upward trend is expected to begin when the price rises above 29K. This is the section expected to be touched in the next bull market, 81K-95K. #BTCUSD 12M 1st: 44234.54 2nd: 61383.23 3rd: 89126.41 101875.70-106275.10 (when overshooting) 4th: 13401.28 151166.97-157451.83 (when overshooting) 5th: 178910.15 These are points that are likely to encounter resistance in the future. We need to see if we can break through these points upward. Since it is thought that a new trend can be created in the overshooting zone, you should check the movement when this zone is touched. #BTCUSD 1M If the general upward trend continues until 2025, it is expected to rise to around 57014.33 and then create a pull back pattern. 1st: 43833.05 2nd: 32992.55 -----------------
Education
by readCrypto
Establish a trading strategy that suits your investment styleHello traders! If you "Follow" us, you can always get new information quickly. Please also click “Boost”. Have a good day. ------------------------------------- (QIUSDT 1M chart) The key is whether it can receive support and rise around 0.01550-0.01939. If not, it is highly likely that the flow is to create a middle section in the form of a bottom. (1W chart) Since the HA-High indicator is formed at the 0.02464 point, it is highly likely that the price will continue its upward trend if it rises above 0.02464 and maintains the price. However, since a psychological volume profile section has been formed up to the 0.03732 point, a full-fledged upward trend is expected to begin only when it rises above this point. If it falls below 0.01550 and shows resistance, it is likely to fall near the HA-Low indicator. Currently, the HA-Low indicator is formed at 0.00736. However, as the price falls, there is a possibility that a new HA-Low indicator will be created, so support near the HA-Low indicator is important. (1D chart) The HA-Low indicator is formed at 0.01560. Accordingly, the key is whether it can receive support and rise in the important area around 0.01550-0.01939. If the price falls below the HA-Low indicator and shows resistance, there is a high possibility of a cascading decline, so a countermeasure is needed. Since a volume profile section is formed at the 0.0122 point, you need to check whether you can receive support around this area. The HA-High indicator is formed at 0.02715. Since the HA-High indicator on the 1W chart is formed at the 0.02464 point, the 0.02464-0.02715 section is likely to be a resistance zone. If it receives support in the 0.02464-0.02715 range and rises, it is likely that an upward trend will begin. However, since the 0.03549-0.03732 section may again serve as a resistance section, a countermeasure is needed. -------------------------------------------------- ---- To trade by looking at this chart, you need to choose what is most important to you and decide on an appropriate investment period. If the investment period does not suit your investment style, it is better not to trade. The reason is that once you start trading, your psychological influence is likely to have a big impact on your trading. In day trading or short-term trading, it is recommended to buy when support is confirmed in the 0.01550-0.01939 range and sell around 0.02464-0.02715, the first split selling range. At this time, you must decide whether to sell 100% and receive a cash profit, or whether to sell the purchase principal amount and leave the number of coins (tokens) corresponding to the profit. For medium to long term trading, I don't think it's time to trade yet. The reason is that, as mentioned earlier, if it falls below 0.01550-0.01939, there is a high possibility of creating an intermediate section in the form of a bottom. Therefore, it is recommended to proceed with a split purchase when support appears near the HA-Low indicator of the 1M chart or the HA-Low indicator of the 1W chart. Therefore, it is most important to create a trading strategy that suits your investment style. 1. Investment period 2. Investment size 3. Trading method and profit realization method You need to create a trading strategy based on 1-3 above. Numbers 1 and 2 are to determine the investment period and investment size according to your investment style, so you can make your decision by analyzing charts and checking other coin ecosystems. Number 3 is to decide on the detailed trading method when you decide to trade, so you must select the buying, selling, and stop-loss method and decide how to realize profits accordingly. It is useful when conducting mid- to long-term transactions to reserve the number of coins (tokens) corresponding to profit rather than 100% selling. This is because the purchase price of the coin (token) corresponding to profit is 0. Have a good time. thank you -------------------------------------------------- - The big picture A full-fledged upward trend is expected to begin when the price rises above 29K. This is the section expected to be touched in the next bull market, 81K-95K. #BTCUSD 12M 1st: 44234.54 2nd: 61383.23 3rd: 89126.41 101875.70-106275.10 (when overshooting) 4th: 13401.28 151166.97-157451.83 (when overshooting) 5th: 178910.15 These are points that are likely to encounter resistance in the future. We need to see if we can break through these points upward. Since it is thought that a new trend can be created in the overshooting zone, you should check the movement when this zone is touched. #BTCUSD 1M If the general upward trend continues until 2025, it is expected to rise to around 57014.33 and then create a pull back pattern. 1st: 43833.05 2nd: 32992.55 -----------------
Education
by readCrypto
STOP Overtrading with these easy stepsDo you ever get caught in the whirlwind of overtrading? You’re taking a ton of trades because you’re bored, to make up for losses, for the sake of trading and to maybe feel productive. It’s like Netflix really. You’re watching your favorite TV series; before you know it, you’ve devoured the whole season in one sitting. Time lost and you get deep withdrawal symptoms. Well, you need to seriously stop overtrading. It’s one of the BAD habits that you can find yourself repeating. And over time, it will lead to a ton of losses, a blown account and you looking for the “next” best thing. Let’s get into it. Recognize when you’re overtrading and then simply – STOP! TO put it blunt. Overtrading refers to the excessive buying and selling of financial markets that are often driven by emotional decision-making rather than a strategic approach. This leads to low returns and increased risk. First off, it’s crucial to recognize when you’re overtrading. There are a couple of times when you could find yourself overtrading: Chasing losses This is where you try to recover from a losing streak by getting into more lower probability trades. The gamblers overconfidence The opposite can happen. You might feel invincible and the king of the trading world, after a series of successful trades. And this could get you to take on more trades, without proper analysis. And it could lead to you losing all your wins for the day. Market FOMO (Fear of Missing Out) You might see a NEWS event come out. Your buddy might have taken an enticing trade. Or you just feel there is more profits you believe you can take off the table. And so, you jumping into more trades due to the fear of missing a profit opportunity. Boredom Fever Your trader and time is passing and, you are getting bored. In fact, you’re probably feeling unproductive just seeing on your hands. And so you get into other positions to pass time or for the excitement. And you disregard, your sound market analysis. Attempting to meet unrealistic profit goals Most traders have a maximum loss per day, before they stop trading. The dangerous players try to have a minimum goal of a % win they want to achieve per day. This is dangerous. And this can lead to overtrading and more loss taking. Peer pressure Like I said, you might hear from a buddy who’s taking trades. You might hear from some economist or analyst who’s diving in. And you’ll feel peer pressure if they get you to the point to follow them. You have your own strategy, system and risk management analysis. You don’t need anything else! Got it? Top of Form So what do you do when you feel the sense of overtrading? Here are some ideas. How to stop overtrading with easy steps Take a break It’s like stepping away from a heated argument to cool off. It helps clear your head. Pick your best times and days to trade Not all hours are created equal. Know the market rhythms and dance to the beat that suits you best. Keep to your plan only Your trading plan is your roadmap. If your plan is to follow a mentor – so be it. If your plan is to follow your own strategy – Go for it. If your plan is to intraday trade, day trade, position trade or core trade – Just follow it. Don’t venture off into uncharted territory. Quality over quantity Focus on making a few high-quality trades rather than a bunch of haphazard ones. Think of it as choosing a super healthy meal over a fast-food binge. Engage in other activities Go enjoy other aspects of life. Trading isn’t EVERYTHING. Go for a walk. Play with your dog or cat. Do other business. Distract yourself with hobbies or exercise when you feel the urge to overtrade. You’ll thank yourself for not taking any unnecessary trades. Because you won’t set that dangerous precedent, which can continue at a later stage. Final words: Overtrading is doing exactly that. Taking too many trades without following your sound principles, strategy and analyses. This can lead to taking low probability trades, increasing your losses and destroying your mechanical mindset and trading strategy. Let’s sum up WHAT causes you to over trade. Chasing losses: The gamblers overconfidence: Market FOMO (Fear of Missing Out) Boredom fever Attempting to meet unrealistic profit goals Peer pressure And we covered ways to STOP overtrading by things like: Take a break Pick your best times and days to trade Keep to your plan only Quality over quantity Engage in other activities Now you know what to do to STOP OVERTRADING. Go and don’t do it!
JSE:J200Education
by Timonrosso
Intuitive chart: Volume Candles chartHello traders! If you "Follow" us, you can always get new information quickly. Please also click “Boost”. Have a good day. ------------------------------------- (Candles chart and Volume Candles chart) Usually, you see price and volume displayed separately on the chart. Displaying it this way has the advantage of showing the overall flow, but since it must be viewed separately, it may be difficult to interpret when a quick judgment is required. In order to trade based on movements in real time, you need to be able to quickly interpret charts. Therefore, I think it is best to check charts intuitively. TradingView Charts finally supports Volume Chandles charts. We combined trading volume with price movements to make it more intuitive and faster to check. When trading volume is high, the candles appear thick, and when trading volume is low, the candles appear thin. (Volume Candles chart) If you add indicators to your chart, you will notice that support and resistance points are more clearly visible. Starting tomorrow, we will set it up according to the Volume Candles chart and publish it. Have a good time. thank you --------------------------------------------------
Education
by readCrypto
4 Golden Trading Lessons: Your Roadmap to SuccessAre your ready to elevate your trading game? You’ll need these 4 golden tickets to have a chance. You might have two or three of them, but it’s important to make sure so that you’re set for the rest of your trading career. Have a read and let’s refine your trading skills. Lesson 1: Follow a Proven Strategy and Never Deviate Ever heard me say, “A rolling stone gathers no moss”? That’s your trading strategy in a nutshell! The key to success isn’t just having a strategy; it’s about taking every high probability trader, weathering through all environments and sticking to it. Why? Consistency is king. Markets move up (You profit) Markets move sideways (You lose) Markets move down (You profit). So you might as well enjoy the full journey and trading process you’re your one and only strategy. So, stay the course! Lesson 2: Only Risk What You Can Afford to Lose Here’s a tough love moment: Can you afford to lose what you’re risking? Can you take the money – cut it up – throw it to the ground and you’ll be fine? GOOD! Then you know that emotions and emergency life savings is NOT going to make the cut (no pun intended). If you are feeling highly attached to the money, step back. By only risking what you can afford, you keep emotions in check – win or lose. It’s not about fear; it’s about smart, sustainable trading. Remember, it’s a game of patience and discipline. Lesson 3: Adhere to Strict Money Management Rules This is your financial seatbelt. What are your rules? Here are some: Risk MAX 2% per trade Know where to place your stop loss and never move it when you’re losing Halt trading when the drawdown is over 20% down Never expose more than 20% of your overall portfolio Always have a plan to deposit more money to grow more money Lesson 4: Have a ‘Worst-Case-Scenario’ Plan What’s your plan when the market throws a curveball? Having a worst-case scenario plan isn’t pessimism; it’s smart trading. You know you’re going to be in drawdown around 4 months a year. You know there are consecutive losses to come with any trading strategy. You know the market environments are not always to your favour. So you need that umbrella to know when to halt trading. Whether it’s diversifying, hedging, risking less or having a cash reserve, be ready for when the market isn’t your friend. This isn’t about fear; it’s about being prepared. FINAL WORDS: These 4 Golden Trading Lessons are more than tips; they’re the pillars of successful trading. It’s about building a trading practice that’s not just profitable, but sustainable and resilient. Here are your 4 golden trading lessons. Lesson 1: Follow a Proven Strategy and Never Deviate Lesson 2: Only Risk What You Can Afford to Lose Lesson 3: Adhere to Strict Money Management Rules Lesson 4: Have a ‘Worst-Case-Scenario’ Plan
TVC:SA40Education
by Timonrosso
Trading is execution - USD/JPY Live trading exampleThis is a short mentoring/educational session. The USD/JPY is the pair we are trading this evening, I analyse this based on the mtf wave structure. I explained the importance of the secondary trend, as a determinant tool or information for what may happen in the future. I also shared one of my waves of success strategy using the DMI and the VMP for trade execution. Finally, after taking the trade, I explained late Mark Douglas probabilistic principles which acts as a solid foundation of our behaviour and interaction with the market.
Education
by Charts247TradingAcademy
Draining Trading Habits: The Pitfalls to Avoid for Market SuccesYou know that trading is a mental game. And if you play it wrong, it can be very draining on the mind and the soul. Your aim is to make trading effortless and not overstressing. And to do this, you need to avoid making these draining trading habits. That’s what we’ll cover in this piece. Personalise Losses: The Emotional Pitfall Ever felt like the market is out to get you? Go look at any chart and you’ll see there were times where you would have won and would have lost. It’s a common trap. Losses are not personal attacks. And winners are not personal appraisals. They’re part and parcel of the trading game. Remember, the market is as impersonal as it gets. When you personalize losses, you cloud your judgment, making it harder to learn from mistakes. Instead you need to: Shift Your Perspective: View losses as the trading costs of doing business. And if you’re still learning, then you can see losses as tuition fees for your trading education. Keep a Trading Journal: Document your trades and reflect on your overall track record. This way you’ll see both losses and gains as part of the process. Cling to Long-term Trades: The Hope Trap Ah, the classic ‘hold and hope’ strategy. It’s easy to fall in love with a trade. It’s also easy to marry a trade or even an investment. But as a trader, you must NOT get married to a trade. See them as short term conquests where you take one – lose one win one. But know that the next one is on the way. So, how do you break free? Set Clear Exit Strategies: Before your enter a trade, know your exit points for both profit and loss. Practice Detachment: Treat each trade as just another business transaction. Or like I said – Conquest. Always checking your trades: The Anxiety Generator Checking your trades every five minutes? ‘ This can turn into an obsession. I must say. This is not a good for your stress levels and your trading performance. This habit can turn trading into a nerve-wracking obsession. So instead: Set Alerts: Use technology to your advantage. Set alerts for price movements. Schedule Check-ins: Limit how often you check your trades. Discipline is key! Overstress about trades: The Health Hazard Stress is the silent killer in trading. It not only harms your health but also impairs your decision-making abilities. So, how do we keep our cool in the heat of the market? Practice Mindfulness: Meditation and mindfulness can work wonders for stress management. Maybe even self-hypnosis at night to manage your worries, stress and to compartmentalize them. Physical Activity: Regular exercise helps in reducing stress and improving focus. You’ll be surprised what a simple walk, exercise or even punching the old bag can do to calm your mind. The complaint department: Trading’s Emotional Baggage Complaining about trades is like carrying around a bag of emotional bricks. It’s exhausting! It’s heavy on you! And it’s just plain unnecessary. This habit breeds negativity and affects your mindset. Focus on Solutions: Instead of complaining, channel your energy into finding solutions through your track record and money management strategies. Seek Constructive Feedback: Engage with a trading community for support and advice. FINAL WORDS: Your job is to manage stress, worry and to make trading as effortless and as easy as possible. This requires some physical and mental activities. And not just once off. On an ongoing basis… Let’s sum up the draining trading habits so you know what NOT to do. Personalise Losses: The Emotional Pitfall Cling to Long-term Trades: The Hope Trap Always checking your trades: The Anxiety Generator Overstress about trades: The Health Hazard The complaint department: Trading’s Emotional Baggage
JSE:J200Education
by Timonrosso
5 Hidden Dangers of Trading with FOMOIn the previous TradingView article we spoke about FOMO (Fear of Missing Out). And why it is really not necessary to deal with. There is always the next trade coming. There is always another opportunity coming your way. There is always time to take the next one. No we are going to unpack the five hidden dangers of trading with FOMO and how to sidestep them like a pro. The Emotional Rollercoaster: Stress & Anxiety Remember when I said. “Trading is not just a financial challenge, but an emotional marathon”? That’s never more true than when FOMO kicks in. When you miss a trade, I know that you could feel stress and anxiety creeping in. You feel like you’ve missed the most important trade of the year. Well guess what, you might have missed one trade – but that’s it. Success is based on 1,000s of trades not just one. So the key is to remember this, so you eradicate the feelings of stress and anxiety next time you miss a trade. The Short-Term Mirage: Losing Sight of Long-Term Goals FOMO pushes you to focus on short-term gains. Yes it’s important to try and spot high probability trades on a daily basis. But, if you miss the trade – just go on and look for another. There is bound to be more ready for you to execute or at least prepare for. And while you’re at it, remember these are lessons to help you to be more punctual and vivid with your trades. Following the Herd: The Danger of Sheep Behaviour Ever heard the saying, “If your friend jumps off a bridge, would you do it too?” That’s FOMO in a nutshell. YOUR job is NOT to take a trade based on what your friend, foe, analyst or stranger tells you to buy or sell. Your job is to either follow your own trading plan and strategy or your mentor’s. Resist the urge to follow the flock and rather, trust your own research, strategy and instincts. You’ll form Bad Habits Each time you give in to FOMO and you take a trade for the sake of it, you’re not just making a bad trade. You’re also cultivating bad habits for the future. And once the bad habit forms, it then cultivates and becomes harder to escape from it. Break the cycle by sticking to your disciplined trading routine. You’re better than that! Ignored analysis When you have that FOMO you want to then take impulse trades. And all your hard work and analyses and discipline is thrown out of the window. It’s like trying to navigate yourself without a map or GPS. And you’re depending on your instincts or your “memory”. It’s a very risky gamble and it could take a LOT longer to find your way. Don’t go against the strategy. Don’t take trades for the sake of it. Don’t have FOMO because you missed one or two trades. Just keep to your strategy and move on. It’s your trading compass for a reason. FINAL WORDS 🚀🌟: Trading with FOMO is like sailing in stormy seas – it’s risky, stressful, and often leads to nowhere good. Let’s go other the 5 danger of trading FOMO Stress & Anxiety: Keep emotions in check and stick to your trading plan. Short-Term Focus: Remember your long-term goals and don’t get distracted by short-lived trends. Sheep Behaviour: Be an independent thinker, not a follower. Bad Habits: Avoid developing harmful trading habits by maintaining discipline. Ignored Analysis: Trust in your research and analysis; they are your best tools for successful trading.
JSE:J200Education
by Timonrosso
The Anti: A Super Powerful 1:1 SetupIn this video, I discuss The Anti a trade first mentioned by Linda Raschke in her 1996 book Street Smarts. Her version used a Stoch indicator but, I prefer a modified MACD indicator. To take this setup, you first need an indication of market reversal. In our case that will be climatic activity. So this trade has 4 parts: Climatic activity or other indication of possible market reversal First leg MACD or Stoch slow line change of trend MACD or Stoch fast line hooking back into the slow line (against the trend)
GEducation
by JoeRodTrades
3
No FOMO when you trade - 5 ReasonsSo you missed a trade. Or you are you often gripped by the fear of missing out (FOMO) in the trading world? It’s a common feeling. But let me tell you. You might miss a train, but the next one is always on the way. And the stock market will always be there for you to pump out more profit opportunities for you. Today, I want you to not worry to much about FOMO. And I don’t want you to kick yourself and here’s why… Impulsive Decisions: The Enemy of Rational Trading Ever jumped into a trade just because it ‘felt right’? It’s like grabbing a chocolate bar at the checkout – it’s tempting, but not always a good idea. You need to get rid of the idea of wanting to impulse trade (trade for the sake of it). Rather have your trading plan and stick to it by all means. If you miss a trade – LOOK for the next one. Not a low probability trade. Wait for the next high chance of success trade and you’ll be happy you did so. Research: Your Secret Weapon Trading without research is like driving with your eyes closed. You might get lucky and not crash, but it’s a risky gamble. You need to put in the time to research and analyse the markets accordingly. Understand the why behind your trades. Research is your crystal ball in the trading world. Chasing the Market: A Fool’s Errand Ever seen a stock skyrocket and felt like you’re missing the party? You might feel the same with Bitcoin or a stock that has underperformed in a while. The worse you can do, is try to chase the market. If you missed the trade. Move on and find the next perfect trade that is linin up. Patience is your ally. Precision analysis is also the key. Remember, markets move in cycles. Wait for your moment. Big Risks: Big Rewards or Big Regrets? It’s like betting all your chips on red. It can pay off, but it’s a rollercoaster ride. So you need to remember that risk and money management is key. Balance optimism with realism. Use stop-loss orders, adjust with trailing stop losses – get out with time stop losses. And most importantly – Protect your capital – it’s your trading lifeline. High Emotions: The Trader’s Kryptonite The infamous emotional rollercoaster might make you take the wrong trades. It will result in you making rash, quick and irresponsible decisions. So try to keep emotions at bay, stay calm to trade. Develop a mindset that is calm and collected. Remember, the market doesn’t care about your feelings. Final words: So you know that FOMO is another dangerous habit to develop as a trader. Rather, say to yourself this mantra. There is always another and better trade on the way, and I don’t have to catch every single trade that presents itself. Let’s sum up the reasons why FOMO is dangerous. Impulsive Decisions: The Enemy of Rational Trading Research: Your Secret Weapon Chasing the Market: A Fool’s Errand Big Risks: Big Rewards or Big Regrets? High Emotions: The Trader’s Kryptonite
JSE:J200Education
by Timonrosso
What LOSER Traders Say – 6 PhrasesI like to say… Go where winners thrive and excuse givers die! If you’ve ever uttered the following phrases below – I urge you to stop saying them from today. And when you do utter these below phrases, you’re going to manifest losing, despair and hopelessness. But it’s not your fault. It’s the conditions and echo of amateur traders – that other traders listen to. I don’t believe for one second you want the loser mentality. I believe you want to embrace the mindset of a true trading champion. So let’s stop saying the below: The Market is Wrong: A Blame Game for the Weak Newsflash: the market isn’t out to get you. Another newsflash, the market is NEVER wrong. It goes up, down and sideways. What you’re seeing in the charts is HISTORICAL. So, what comes out in the future is untold but the truth. There should be NO ego for ever saying – The market is wrong. Take control of what the market is currently doing and what it has done and analyze your approach. I Suck at Trading: The Pity Party Pitfall Negative self-talk is the fastest route to trading mediocrity. We are ALL bad at something when we start. We continue to be bad at something if we don’t practice hard, work at it and have persistence. If you’re convinced you suck at trading, it’s time to silence that inner critic. Trading is no different from picking up another skill, vocation, endeavour and hobby. Maybe I Should Just Give Up: The Quitters’ Anthem Throwing in the towel is the easy way out. In fact, I don’t believe traders lose. They simply quit. But winners persevere. If thoughts of giving up dance in your mind, consider this: Success often comes to those who refuse to quit. Risk less. Tweak your strategy. Have your game plan with a solid back tested journal. Reassess your goals. Take a deep breath and remember that every setback is a setup for a comeback. Damn, This is a Slow Process: Impatience, the Silent Killer Trading success is not a sprint; it’s a marathon. Complaining about the slow process won’t expedite your journey to financial triumph. Whether you’re holding gold and waiting for the market to rally to new highs – It will come – you just need patience. Winners understand that patience is a trader’s virtue. So either you run the marathon, or give up trying knowing it’s going to be a long road. I Can’t Do It Your mind is a powerful tool. And when there are challenges and doubts, you’ll find that you’ll keep telling yourself – you can’t do it. Think of thoughts as tiny branches of a tree. The more you think a certain way, the bigger the tree becomes. And this will set yourself up for failure. Random thought: This is why when a woman says I’m fat 1,000 times. No matter how thin she is, you can’t convince her that she is thin. Because of the tree she has build in her mind about her self-image. Same with trading. Stop saying negative thoughts. Be kinder to yourself and who you are. Winners replace “I can’t” with “I will.” Winners replace Should, Would, Could with DO! Cultivate a positive trading mindset, believe in your abilities, and watch how your confidence transforms your trading outcomes. I’ll Start Tomorrow Procrastination is the biggest thief of success. Tomorrow is the favorite day of the loser. If you constantly push your trading plans to the next day, you’re delaying your success. You’re delaying profit opportunities. You’re delaying your learning process. Winners take action today. Start now, stick to your plan, and relish the progress you’ll make. Tomorrow’s victories are earned through today’s actions. FINAL WORDS: So from today, say and manifest a more optimistic and positive mindset. Don’t say any more loser phrases. And let’s cultivate a winning mentality and tree of positive branches to your mind. Let’s sum up the phrases you must NOT say: The Market is Wrong: A Blame Game for the Weak I Suck at Trading: The Pity Party Pitfall Maybe I Should Just Give Up: The Quitters’ Anthem Damn, This is a Slow Process: Impatience, the Silent Killer I Can’t Do It I’ll Start Tomorrow
TVC:SA40Education
by Timonrosso
6 More Trading Time WastersWith trading, time is money. And every wasted moment is a missed opportunity. Every day you skip. Every high probability trade you miss on whatever market you’re trading. Even every loss you take according to your strategy, is one step closer you’re missing to success. I wrote about time wasting in the previous article. And I can’t stress enough how important it is to get yourself into gear. It’s time to take control of your time and trading actions. Here are 6 more trading time wasters. #1. Chasing the News Turn on Bloomberg, CNN or BBC. Flicking lights. Loud sounds. Entertaining drama, drama, drama. It’s like watching Netflix. And if you become obsessed, it’s easy to fall into the trap of chasing the latest news headlines. Breaking news is inevitable. And staying informed is great. But it’s NOT necessary to adapt the news into your trading strategy. In fact, the hyped up news will lead to impulsive and emotional decisions. Don’t fall for the news mania. Save that for AFTER your trading. And watch it for entertainment and education. Nothing else. #2. Checking the Portfolio Often Ahhh! The Perils of perpetual monitoring. Listen… Your portfolio is not a ticking time bomb that requires constant supervision. As a young trader I get that it’s tempting to check your gains and losses every few minutes. But this is a long term game. So if you adopt this checking bad habit, you’ll see it can breed anxiety and cloud your judgment. Maybe check your portfolios once a day. Or even every few days. But lose the obsession please. You’re wasting precious time and energy on unnecessary stuff. #3. Analysis Paralysis Another mistake is drowning yourself in data. Too much analysis can lead to paralysis. Endless charts, intricate patterns, and an abundance of indicators might make you feel like a trading virtuoso. But you’ll quickly learn that, it won’t necessarily translate to profits. Rather stick to the K.I.S.S – Keep It Simple Stupid. Simplify your approach, focus on key factors. And please make decisions based on a clear understanding rather than drowning in a sea of data. #4. Procrastination Procrastination is the silent killer of trading success. To leave it to tomorrow. As they say. Tomorrow never comes. All you have is NOW. So, if you want to trade – Get a coffee and sit down and take action. Delaying decisions can mean missing out on lucrative opportunities. Set clear goals, establish a solid plan, and execute it without succumbing to the siren call of procrastination. Time wasted is money lost in the dynamic world of trading. #5. Overcomplicating – Don’t be a trading jack of all trades! Trading doesn’t need to be a convoluted puzzle. It doesn’t take a rocket scientist to trade well. You don’t need a degree or even a complicated strategy. In fact, if you overcomplicate your trading, it will lead to more confusion and poor decision-making. Be a master of a few effective markets, time frames, strategies, money management and techniques. #6. Fear of Taking Action This my friend is the stagnation trap. Inaction out of fear is a formidable enemy for traders. You need to remember that fortune favors the bold in the world of trading. Those who: Deposit money. Learn all about trading well. Practice with a demo account. Adapt a winning trading strategy. Keep persistent with their trading. Are the ones that will win…’ FINAL WORDS: So stop wasting time and start doing more to achieve your trading dreams. Let’s sum up the 6 trading time wasters. #1. Chasing the News #2. Checking the Portfolio Often #3. Analysis Paralysis #4. Procrastination #5. Overcomplicating – Don’t be a trading jack of all trades! #6. Fear of Taking Action
TVC:SA40Education
by Timonrosso
Powerful Fibonacci Trading Strategy For Beginners I am going to reveal a powerful fibonacci trading strategy that I learned many years ago. It combines structure analysis, fibonacci retracement and extension levels and candlestick analysis. Step 1 Find a trending market - the market that is trading in a bullish or in a bearish trend on a daily time frame. AUDUSD is trading in a bullish trend on a daily. Step 2 Execute structure analysis - identify key horizontal and vertical structures on a daily time frame. Take a look at key structures that I spotted on AUDUSD. Step 3 Draw fibonacci retracement levels. Here are the important ratios you should look for: 382, 50, 618, 786. In a bearish trend, draw fibonacci retracement levels from the high of the trend to current low based on wicks. In a bullish trend, You should apply fibonacci retracement from the low of the trend to a current high based on wicks. Take a look how I draw the retracement levels, I took the low of the trend and the high of the trend. Step 4 Find confluence. Look for fibonacci numbers that match - lie within key structures that you identified. Support 1 matches with 382 retracement. Support 2 matches with 786 retracement. Remove other ratios from the chart. Step 5 Wait for a test of one of the fibonacci levels that match with key structure The price perfectly tested 382 retracement level. Step 6 Wait for a confirmation on a 4h time frame. Our confirmation will be a formation of an engulfing candle - a strong candle that completely engulfs the entire range of a previous candle with its body. In a bearish trend, we will look for a formation of a bearish engulfing candle. Bearish engulfing candle indicates a strong selling pressure and the strength of the sellers. In a bullish trend, we will look for a bullish engulfing candle. It indicates a strong buying reaction and imbalance. Have a look at a bullish engulfing candle that was formed on AUDUSD on a 4H time frame after a test of 382 retracement. Step 7 Open a trading position, set stop loss and choose the target. After you spotted an engulfing candle, open a trading position. Open short after a formation of a bearish engulfing candle and open long after a formation of a bullish engulfing candle. If you sell, your safest stop loss will be 1.272 extension of the last bullish impulse on a 4H. If you buy, your stop loss will be 1.272 extension of the last bearish impulse on a 4H. In our example, our stop loss will be 1.272 extension of a bearish impulse leg on a 4H time frame. The extension is based on high and low of the impulse. If you short, your take profit will be the closest key structure support on a daily. If you buy, your take profit will be the closes key structure resistance on a daily. Here is our take profit level. Being applied properly, the strategy should generate 60%+ winning rate. Always remember to check your reward to risk ratio before you open the trade. It should be at least 1.1/1. Also, before you place a trade, always make sure that you trade WITH the trend and take only trend-following trades. The strategy works perfectly on Forex, Gold, Silver, Oil, Indexes. Good luck in your trading. ❤️Please, support my work with like, thank you!❤️
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OANDA:XAUUSDEducation
by VasilyTrader
31