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6 Rules of Successful Trading Once you become a trader. Once you think about trading every day. Once you have set your mind, soul, and heart into trading. There is no going back. You’ve reached the point of no return! And it’s thrilling and exhilarating once you’ve mastered this element to your life. So you might as well harness the true nature of what it takes to be successful. Here are 6 key rules every successful trader lives by. Always have a trading plan One hallmark of a successful trader is an effective trading plan. This is a self-journey and only you can endure it through different endeavours. Your trading plan acts as a roadmap and your game-plan, to guide you to your daily trading activities to help you make informed decisions. This plan should detail your system, risk and reward management along with your financial goals, risk tolerance, criteria for entering and exiting trades, and strategies for managing your trades. Every trade you execute should align with the objectives outlined in your plan. Also, evolve and adapt to your plan along with the ever evolving market world. Don’t procrastinate In the world of trading, timing and persistence is everything. Successful traders understand the im portance of making swift, decisive moves when the right opportunities arise. Procrastination, on the other hand, can lead to missed opportunities laziness and potential losses. So, get up, make your coffee and get to it. Also, remember to always keep a close eye on market trends, economic indicators, and relevant news events. This proactive approach will ensure you’re well-prepared to act promptly when your defined trading criteria are met. Remember, the market won’t wait for you, so you must be ready to seize opportunities when they present themselves. Be patient While it’s essential to act decisively. It’s also our goal to just….. WAIT. Be patient and only strike when you see that golden opportunity present itself. Sometimes, the best action is inaction. Sometimes, you have to just wait it out and stay out. Neutral is also a position. And you need to know when it is best to protect and preserve your portfolio. Successful traders don’t let impatience force them into suboptimal trades that fall outside their strategic plan. Just take the trade I’m seriously going to have a mug or a t-shirt saying. Trade well and just take the trade. When your plan indicates it’s time to trade, you need to overcome your hesitations and execute the trade. Traders must realize that not every trade will result in profit. So you might as well take the trade that lines up when it’s a high probability one. Even the best traders face losses. Even the best trades take losing weeks, months and even quarters! What matters most is your overall performance across many trades. As I always say, it’s not about the 1 trade but the hundreds of trades later. So, when the conditions of your trading plan are met, take the trade, and maintain your risk management strategies to limit potential losses. Keep learning and evolving Financial markets are dynamic and ever-evolving. As a trader, it’s crucial to keep learning and adapting to these changes. Stay updated with market trends, new trading strategies, and changes in regulations. Consider continual education a part of your trading plan. See what other successful traders are doing. See what other strategies they’re adapting to. See what new markets are available and what sectors are outperforming. Learn to earn. This ongoing learning process will keep you on top of your trading game and help you adapt your strategies as markets evolve. Don’t give up No matter what you do, remember. You only lose when you quit. Trading is a long-term game filled with ups and downs. The key is to view these setbacks as learning experiences, not reasons to quit. When faced with losses, successful traders analyze their decisions, identify mistakes, and learn from them. They maintain a positive mindset and understand that perseverance is crucial. Stay focused on your trading plan, refine your strategies, and remain resilient on your path to trading success. By incorporating these six rules into your trading routine, you’ll be well on your way to a profitable and sustainable trading career. Always have a trading plan Don’t procrastinate Be patient Just take the trade Keep learning and evolving Don’t give up
TVC:SA40Education
by Timonrosso
Cut out Useless Trading Data - 6 Points There is a curse of knowledge in the world of trading. And it comes a time where a new trader believes the way they can WIN is through… Knowing and applying as much info and data as possible. I’ve been there. In 2008, you should have seen my charts. They looked like Christmas Trees. Cut out the conflicting indicators. Cut out ANYTHING that does not make logical sense. Less is more with trading. Let’s explore some factors that can help you cut out the unnecessary data. Find One or Two Systems Only Trading systems are a collection of rules and parameters that traders use to determine their entry and exit points. With myriad trading systems available, it’s really tempting to dabble in different ones. And as a beginner trader, I understand it’s crucial for you to find yourself and your trading personality. However, once you find what system works for you. Once you find the ones that match your trading style, risk tolerance, and financial goals – Stick to them. Adapt, evolve, improve and optimise your strategy. When you absolutely master your strategy and your focus, you can gain deep expertise in those systems and utilize them more effectively. Minimize the Number of Markets Each market is unique, with its own set of rules, trends, and volatility. If you diversify into too many markets, it can dilute your focus and make it harder to understand the nuances of each market. Instead, find the markets that most definitely work you’re your strategy. Whether it be stocks, indices, Forex, commodities or crypto. Break them up into watchlists and the ones that don’t work with the system, well don’t include them obviously! Choose Only One or Two Time Frames Just as with trading systems and markets, time frames also require careful consideration. Whether you prefer day trading, swing trading, or position trading, it should tell you the time frames you should be focusing on. Select one or two time frames that align with your trading style and stick with them. I like daily for stocks, commodities and crypto. I like 15 minutes for Intraday trading indices and daily for identifying the Daily Bias. By doing so, you’ll avoid the confusion and contradiction that often comes from analysing multiple time frames simultaneously. Cut Out Unnecessary Indicators The year was 2008. I had 5 Moving Averages, 1 Bollinger Band, 1 MACD, 1 RSI, 1 Stochastics, 1 William %R, Volume, and even the ATR (Average True Range). The problem was. These signals were conflicting each other. Do you have any idea how difficult it is to back and forward test a strategy like this? And yes, all the information is at our fingertips. But it can also be the doom of our portfolios. Why? I realised one thing. Indicators, volume, price action etc… Is all based on ONE constant. Historical data. The data and information you see is all based on the past. There are no predictions, no certainties only probabilities. So you need to cut out the unnecessary information. Don’t fall for “analysis paralysis,” where excessive data hampers your decision-making. Choose a few key indicators that provide the most valuable information for your trading strategy. Focus on One or Two Financial Instruments Diversification is a key principle in finance, but it’s possible to overdo it. When I say instruments I mean CFDs, Lots, Spread Betting, Options, Futures etc… You know what a schlepp it is to have different journals for different instruments, trading the same things? Ye… Choose 1 or maybe two instruments (if your one broker doesn’t offer some markets you wish to trade). But there is no benefit in trading a whole bunch of trading instruments at once. Also when you spread your capital too thinly across multiple financial instruments, you’ll find it can complicate your trading strategy, portfolio and risk management. And it will make it difficult to keep track of your investments. Only Have One or Two or Max Three Trading Accounts Managing multiple trading accounts can be a logistical nightmare. Similar to what I mentioned above. It can lead to unneeded complexity in tracking performance, managing tax liabilities, and maintaining a balanced portfolio. Instead, limit your trading accounts to 1, 2 or max 3. This is so you can monitor your trading performance across different markets. For example. Forex is a completely different ball game to stocks (in my opinion). And so, I like to have two different trading accounts for each. Final words. Let’s focus on less rather than more going forward. Cut out unnecessary and useless data when you trade. And remember these point which is what we have covered today… Find One or Two Systems Only Minimize the Number of Markets Choose Only One or Two Time Frames Cut Out Unnecessary Indicators Focus on One or Two Financial Instruments Only Have One or Two or Max Three Trading Accounts
TVC:SA40Education
by Timonrosso
Important Trading Terms YOU need to KnowSorry but the truth is… You can’t get away from the trading lingo. There are at least 7 terms you need to deal with a day. But fortunately, they repeat and before you know it – they’re second nature. Let’s start with the most important terms – you’ll face every day as a trader. Symbol – Name of market you want to trade: The symbol represents the unique identifier of a specific financial instrument or market. It is the special name that is given for each market. For example, in the stock market, symbols are typically a combination of letters that represent a particular company’s shares. In the forex market, symbols are currency pairs such as EUR/USD or GBP/JPY. In the commodity market each have their own symbol i.e. Gold = XAU/USD, GCI Go to TradingView head over to Symbol search and start searching and adding to your watch list. Side: Buy (go long) or Sell (go short): The “side” refers to the direction of your trade. Buying (going long) means you believe the price of the instrument will rise, and you aim to profit from the increase. Selling (going short) means you anticipate the price will fall, allowing you to profit from the downward movement. The choice of the side depends on your market analysis and trading strategy. Quantity: No. of CFDs or lots: The quantity represents the number of Contracts for Difference (CFDs) or lots you want to trade. This is all dependent on your risk profile and portfolio size. CFDs allow you to speculate on the price movements of an underlying asset without owning the asset itself. The quantity determines the exposure and potential profit or loss of your trade. It’s important to consider your risk tolerance and account size when determining the appropriate quantity to trade. Order type (Market or limit): The order type specifies how you want your trade to be executed. A market order is executed immediately at the most current market price. This type of order guarantees execution but does not guarantee a specific price. So there might be slippage (where you get in versus where you wanted to get in) which can interfere with your Risk to Reward. A limit order allows you to set a specific price at which you want the trade to be executed. So basically, you LIMIT The price you wish to enter. The order will be executed only if the market reaches or exceeds your specified price. Validity: How long to hold: Validity refers to the duration for which your order remains active. Common options include: GTC: “Good Till Cancelled” where the order remains active until you manually cancel it. FOK: Fill or Kill: This type of order requires immediate execution of the entire order quantity. If the full amount is not executed, it is then cancelled. GTD: “Good Till Date” (GTD), where you can specify a specific date until which the order is valid. MIT: Market if Touched: This order is triggered when the market price reaches a specified level (trigger price). It then becomes a market order and is executed at the best available price. LIT: Limit if Touched: If a Limit if Touched order is triggered when the market price reaches a trigger price. However, it becomes a limit order with a specified limit price and will only be executed at or better than the limit price. Levels: Entry, Stop loss, and Take profit: These levels are essential in managing your risk and potential profits. Entry Level: The price at which you enter the market by opening a trade. Stop Loss Level: A predetermined price level at which your trade will automatically close to limit potential losses if the market moves against you. Take Profit Level: A predetermined price level at which your trade will automatically close if the market moves in your favour. What trading term do you want to know more about and let us know if this was useful!
TVC:SA40Education
by Timonrosso
6 IMPORTANT Trading Orders You need To Know!DO YOU KNOW THE 6 TRADING ORDERS? There are many trading orders that a broker can offer. You’ll just need to confirm on the platform or give them a call, which ones they have. And it’s important to know which one suits your trading needs best. Before you buy or sell a trade, there is usually a setting that you can choose to execute your trade. Common options include: 1: GTC: “Good Till Cancelled” Where the order remains active until you manually cancel it. 2: FOK: “Fill or Kill” (Settle!) This type of order requires immediate execution of the entire order quantity. If the full amount is not executed, it is then cancelled. 3: GTD: “Good Till Date” Where you can specify a specific date until which the order is valid. 4: MIT: “Market if Touched” This order is triggered when the market price reaches a specified level (trigger price). It then becomes a market order and is executed at the best available price. 5: LIT: “Limit if Touched” If a Limit if Touched order is triggered when the market price reaches a chosen or trigger price. 6: GTC (Good Till Cancelled). This way you’ll know that your position (order) will stay in the market until you cancel it manually.
TVC:SA40Education
by Timonrosso
1
Real Example of a TRADING PLAN Revealed Hey traders, In this post, we will discuss 6 crucial things in your trade planning and the main elements of trade results assessment. 1️⃣ - Before you open a trading position, make sure that you analyzed the chart. You should identify a market trend and spot major key levels. Here on WTI Crude Oil I have analyzed key levels and came to the conclusion that the market is trading in sideways. 2️⃣ - Once the chart is analyzed, you should identify the safest trading areas for your strategy (preferably the zones of supply and demand). You should patiently wait until one of these zones is tested. Back to our example. The support that the market is approaching is a safe area to buy from. 3️⃣ - Once the zone is reached, you should look for a confirmation. You can either look for a reversal candlestick/price action pattern, some fundamental trigger, or some indicator. The point is that you should rely on a trigger that is backtested and that proved its accuracy. In our example, the confirmation pattern - the ascending triangle is spotted on lower time frames. 4️⃣ - Getting your confirmation, you should have a precise entry strategy. Some traders prefer aggressive entries on spot while others are waiting for a retest of some major/minor level. Trading Oil, the perfect entry point will be on a retest of a broken neckline of a triangle. 5️⃣ - You must set a stop loss. Remember that your stop-loss defines the point where you become wrong in your predictions. Be extremely careful on that step and give the market some space for fluctuations. Back to our example - our safe stop loss will be below the lows. 6️⃣ - Know your exact target level(s). Know the point where you start protection of your position, where you start profit-taking. Be very strict and don't let your greed and fear intervene. Returning to our trade, the Perfect target level is based on a closes strong resistance. Only then a trading position is opened. No matter what will be the end result of your trade, you should assess it: 1️⃣- You should journal the trade outlining its end result, trading instrument, and your entry reason. 2️⃣ - Note any peculiar thing about this trade that you noticed. 3️⃣ - Record your gain/loss percentage. 4️⃣ - Identify whether any mistake was made and if so, learn from that. Here is your minimum plan to follow. Of course, as you mature in trading your trade assessment plan will be more sophisticated. Do not underestimate its importance and treat it as the main element of your trading routine. Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
8
📉 Descending Broadening Wedge Identified on $RAYHey traders! Today, I want to discuss an intriguing chart pattern I've identified on $RAY. Let's explore the descending broadening wedge and its implications for potential price action. 📊💡 Pattern: Descending Broadening Wedge 📉🔽 Symbol: FWB:RAY 💰 Overview: A descending broadening wedge is a significant chart pattern characterized by expanding price swings within converging trendlines. This pattern suggests increased volatility and the potential for a reversal. Let's dive into the descending broadening wedge pattern on FWB:RAY and assess its significance. ⚡💹 Key Features of the Descending Broadening Wedge on FWB:RAY : Expanding Price Swings: Observe the widening price swings within the converging trendlines, creating the broadening pattern. This indicates growing volatility and potential market dynamics shift. 📈📉 Reversal Potential: Descending broadening wedges are often seen as reversal patterns, indicating a possible trend change. Monitor price action for confirmation. 🚀📈 Trading Strategy: Entry Point: Consider entering a position once FWB:RAY breaks out above the upper trendline of the descending broadening wedge. This breakout could signal a potential reversal and the start of an upward move. ⬆️💰 Stop-Loss: Implement a stop-loss order below the lower trendline to manage risk and protect against potential downside. ⛔️📉 Target Levels: Identify key resistance levels or previous swing highs as profit targets. Adjust your position size and take profits accordingly. 🎯📈 Risk Management: Maintain proper risk management techniques, including position sizing, setting stop-loss orders, and adhering to your trading plan. Be aware of the risks associated with trading cryptocurrencies like $RAY. ⚠️💼💡 Disclaimer: Trading cryptocurrencies carries risks, and it's essential to conduct thorough analysis and seek professional advice before making any investment decisions. #DescendingBroadeningWedge #RAY #Cryptocurrency #TrendReversal #TradingStrategy #TechnicalAnalysis #Volatility #RiskManagement In conclusion, the descending broadening wedge pattern identified on FWB:RAY suggests a potential reversal in the making. However, wait for a confirmed breakout above the upper trendline before considering any trades. Stay tuned for further updates on $RAY! 💹🚀 (Note: This post is for informational purposes only and should not be considered as financial advice.) 💡💼📚
Long
by STP_MrNodeItAll
2
📉 Descending Broadening Wedge Spotted on $DOTHey traders! Today, I want to share an exciting chart pattern I've identified on MIL:DOT (Polkadot). Let's explore the descending broadening wedge and its implications for potential price action. 📊💡 Pattern: Descending Broadening Wedge 📉🔽 Symbol: MIL:DOT 💰 Overview: A descending broadening wedge is a distinct chart pattern characterized by expanding price swings within converging trendlines. This pattern suggests increased volatility and the potential for a reversal. Let's dive into the descending broadening wedge pattern on MIL:DOT and assess its significance. ⚡💹 Key Features of the Descending Broadening Wedge on MIL:DOT : Expanding Price Swings: Notice the widening price swings within the converging trendlines, creating the broadening pattern. This indicates growing volatility and potential market dynamics shift. 📈📉 Reversal Potential: Descending broadening wedges are often considered as reversal patterns, indicating a possible trend change. It's crucial to monitor price action for confirmation. 🚀📈 Trading Strategy: Entry Point: Consider entering a position once MIL:DOT breaks out above the upper trendline of the descending broadening wedge. This breakout could signal a potential reversal and the beginning of an upward move. ⬆️💰 Stop-Loss: Implement a stop-loss order below the lower trendline to manage risk and protect against potential downside. ⛔️📉 Target Levels: Identify key resistance levels or previous swing highs as profit targets. Adjust your position size and take profits accordingly. 🎯📈 Risk Management: Maintain proper risk management techniques, including position sizing, setting stop-loss orders, and adhering to your trading plan. Be aware of the risks associated with trading cryptocurrencies like $DOT. ⚠️💼💡 Disclaimer: Trading cryptocurrencies involves risks, and it's essential to conduct thorough analysis and seek professional advice before making any investment decisions. #DescendingBroadeningWedge #DOT #Polkadot #Cryptocurrency #TrendReversal #TradingStrategy #TechnicalAnalysis #Volatility #RiskManagement In conclusion, the descending broadening wedge pattern identified on MIL:DOT indicates a potential reversal in the making. However, it's crucial to wait for a confirmed breakout above the upper trendline before considering any trades. Stay tuned for further updates on $DOT! 💹🚀 (Note: This post is for informational purposes only and should not be considered as financial advice.) 💡💼📚
Long
by STP_MrNodeItAll
1
🔥📉 Falling Wedge Alert on $POLS! Bullish Reversal Brewing?Hey traders! Today, I want to bring your attention to an intriguing chart pattern on $POLS (Polkastarter). Let's dive into the falling wedge pattern and explore the potential for a bullish reversal. 📊💡 Pattern: Falling Wedge 📉🔽 Symbol: $POLS 💰 Overview: A falling wedge is a bullish chart pattern characterized by converging trendlines, with the upper trendline sloping downward and the lower trendline sloping upward. It often signals a potential trend reversal from bearish to bullish. Now, let's analyze the falling wedge pattern on $POLS in more detail. ⚡💹 Key Features of the Falling Wedge on $POLS: Converging Trendlines: Notice how the upper trendline connects lower highs, while the lower trendline connects higher lows. This pattern suggests a potential shift in market sentiment. 📈📉 Decreasing Volatility: Observe the gradual contraction of price range and declining trading volume as the pattern develops. These characteristics may indicate diminishing selling pressure. 📉🔻📈 Breakout Expectations: A falling wedge pattern often precedes a bullish breakout. Traders typically await a decisive move above the upper trendline for confirmation. However, exercise caution and wait for a clear breakout before initiating trades. 🚀📈 Trading Strategy: Entry Point: Consider entering a long position once $POLS breaks above the upper trendline of the falling wedge pattern. This breakout could signal a potential trend reversal and the start of a bullish move. ⬆️💰 Stop-Loss: Place a stop-loss order below the lower trendline to manage risk and protect against potential downside. ⛔️📉 Target Levels: Identify key resistance levels or previous swing highs as profit targets. Adjust your position size and take profits accordingly. 🎯📈 Risk Management: Implement proper risk management techniques, including position sizing, stop-loss orders, and adherence to your trading plan. Always be mindful of the inherent risks involved in trading cryptocurrencies like $POLS. ⚠️💼💡 Disclaimer: Trading cryptocurrencies carries risks, and it is essential to conduct thorough analysis and seek professional advice before making any investment decisions. #FallingWedge #POLS #Cryptocurrency #BullishReversal #TradingStrategy #TechnicalAnalysis #ProfitTargets #RiskManagement In conclusion, the falling wedge pattern identified on $POLS indicates the potential for a bullish reversal. However, exercise patience and wait for a confirmed breakout before making any trading decisions. Stay tuned for further updates on $POLS! 🚀📊 (Note: This post is for informational purposes only and should not be considered as financial advice.) 💡💼📚
PLong
by STP_MrNodeItAll
📉 Falling Wedge Alert on $HBAR! Potential Reversal Opportunity?Hey traders! Check out the falling wedge pattern I identified on CRYPTOCAP:HBAR (Hedera Hashgraph). Is a bullish reversal in the cards? Let's analyze and explore potential profit-taking levels! 📊💡 Pattern: Falling Wedge 📉🔽 Symbol: CRYPTOCAP:HBAR 💰 Overview: A falling wedge pattern on CRYPTOCAP:HBAR suggests a potential trend reversal from bearish to bullish. It forms when converging trendlines indicate decreasing volatility and selling pressure. Now, let's discuss potential profit-taking levels! ⚡💹 Key Features of the Falling Wedge on CRYPTOCAP:HBAR : Converging Trendlines: Upper trendline connects lower highs, while lower trendline connects higher lows, indicating a potential shift in sentiment. 📈📉 Decreasing Volume: Observe declining trading volume as the pattern develops, implying diminishing selling pressure. 📉🔻📈 Breakout Expectations: A bullish breakout from the falling wedge can be anticipated. Traders often await a decisive move above the upper trendline for confirmation. Exercise patience and confirm a clear breakout before executing trades. 🚀📈 Profit-Taking Levels: Take Profit 1: Consider booking partial profits as CRYPTOCAP:HBAR breaks above the upper trendline and reaches the first significant resistance level around $.07. 🎯💰 Take Profit 2: If the bullish momentum continues, look for the next resistance level around $0.10 as a potential profit target. Adjust your position accordingly. 🎯💰 Risk Management: Implement effective risk management techniques to protect your capital. Set appropriate stop-loss orders below the lower trendline to mitigate potential downside risk. Adapt your trading plan as market conditions evolve. ⚠️💼💡 Disclaimer: Trading cryptocurrencies carries risks. Conduct thorough analysis, seek professional advice, and take responsibility for your investment decisions. #FallingWedge #HBAR #Cryptocurrency #TradingOpportunity #TechnicalAnalysis #ProfitTakingLevels #BullishReversal #TradingStrategy In conclusion, the falling wedge pattern on CRYPTOCAP:HBAR indicates the potential for a bullish reversal. Monitor the breakout and adapt your strategy accordingly. Don't forget to implement proper risk management techniques. Good luck! 🚀📊 (Note: This post is for informational purposes only and should not be considered as financial advice.) 💡💼📚
Long
by STP_MrNodeItAll
4
Learn THE BEST Breakout Trading Strategy Hey traders, Breakout trading is one of the most popular trading strategies. Being quite simple in theory, it remains quite complex and complicated in practice. In this post, we will discuss 7 steps every breakout trader must follow. 💬And just in brief about a breakout trading itself: this method aims to spot a key level (it might be horizontal support/resistance or a trend line) and then to trade its occasional breakout, assuming that it will trigger an impulsive move. 1️⃣No surprise, the first task of a breakout trader is the identification of key levels. Preferably, these levels should be spotted on weekly/daily time frames. Here on US100, I executed structure analysis and identified key levels. 2️⃣Once key levels are spotted, a breakout trader should patiently wait for the test of one of those. His goal is to wait for a breakout. In that step, many traders fail. The problem is that in order to confirm the breakout, one should have strict & reliable rules to follow. The rules that describe a confirmed breakout. *I apply the following rule: the breakout of a level will be considered to be confirmed once the candle closes above/below the structure on the highest time frame where the structure is recognizable. In the picture above, we see a confirmed key level breakout. 3️⃣Once the breakout is confirmed, the next step is to wait for a retest of a broken level. Why retest? Simply because a retest gives a better risk to reward ratio for the trade. And even though there is no guarantee that the price will retest the broken level and because of that some trading opportunities will be missed, in the long run, retest trading produces higher gains. Following our example, the price has retested the broken level. 4️⃣Opening a trade on a retest, one should know the exact target levels. The levels where the profits will be taken. Again, newbies traders make a lot of mistakes on that step. Remember that your targets must be realistic, they must be based on closest strong structure levels, not on your desired returns. 5️⃣Also, a breakout trader should set a stop loss. And again, a stop-loss level must be safe, it must be set at least below/above a previous minor structure to protect you from stop-hunting. Stop-loss reflects the point where the trader becomes wrong in his predictions and where the trading setup becomes invalid. In our example, the safest stop loss will be below a local low. Take profit - next key resistance. 6️⃣Once the trading position is opened and stop-loss & take-profit are set, one should patiently wait. There is no guarantee that the price will start falling/growing sharply after the breakout. The market may start coiling for quite a long period of time before it starts acting. Breakout trader must be patient, not allowing his emotions to intervene. Returning to our example, after some time, the market easily reached the TP level and went much higher. 7️⃣Lastly, one should remember that his exit points are stop-loss/take-profit levels. Stop-loss adjustment in case of a position drawdown, preliminary profit-taking, and target extension are your worst enemies. Be disciplined, don't be greedy, and keep your emotions in check. Here is the example of a breakout trade that I took following the strategy: I spotted a confirmed breakout of a key resistance. The price formed a high momentum bullish candle and closed above the structure. Long position was opened on a retest. Target was based on the closest horizontal resistance. Stop loss was placed below the closest horizontal support. The market quickly reached the target. Of course, this 7-steps trading plan is not sufficient enough for profitable breakout trading. There are so many nuances on each step of the plan to consider. However, let this plan be your initial guideline: learn & follow that and with time, keep elaborating its rules until you become a consistently profitable trader. Are you a breakout trader? Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
12
Understanding and Utilizing the RSI Indicator in Forex and Gold When it comes to trading gold and forex, technical analysis plays a vital role in predicting market trends and making informed trading decisions. One of the most popular technical indicators used by traders is the Relative Strength Index (RSI). The RSI indicator is a momentum oscillator that measures the magnitude and velocity of price movements in a currency pair or gold. It oscillates between 0 to 100 and shows whether a currency pair or gold is overbought or oversold. Here are some tips on how to use the RSI indicator in gold and forex trading: 1. Identify overbought and oversold levels: RSI values above 70 indicate overbought levels, while values below 30 indicate oversold levels. 2. Use divergence for trend reversal: Divergence forms when the price and RSI indicator move in opposite directions. It can signal a potential trend reversal. 3. Combine with other technical indicators: RSI can be used in conjunction with other technical indicators, such as moving averages, to confirm signals. 4. Look for RSI support and resistance levels: RSI support and resistance levels can give traders insights into potential price levels where a reversal might occur. 5. Use RSI for trade entry and exit: Traders may use RSI to identify entry and exit points for trades. For example, buying a currency pair when its RSI is below 30 and selling it when it rises above 70. 6. Remember to adjust for volatility: High volatility can lead to false RSI signals. Traders must adjust their RSI settings to accommodate increased volatility. In conclusion, the RSI indicator is a widely used tool in technical analysis and can provide valuable insights into gold and forex trading. Remember to use it in conjunction with other tools and indicators and adjust your settings based on market volatility. Please, like this post and subscribe to our tradingview page!👍
BITSTAMP:BTCUSDEducation
by EliteTradingSignals
8
When to FEEL THRILL when Trading - It may surprise you!First let me tell you. NO you should not feel thrill when you take a profit. NO you should not feel thrill when you are on a winning streak. NO you should not feel thrill after a day, week or month of upside. But I’m not going to be a wet blanket. As a trader, including me, there are times to feel thrill. Trading is a process, it’s a lifestyle, it’s a game, it’s your control of your financial future. So let’s explore the times you should feel thrill. #1: Analyse the markets A major part of trading is assessing the current state of the markets and identifying potential opportunities. This involves creating your strategy, finding the indicators that work best and identifying the different systems (chart patterns, trend lines, Smart Money Concepts) etc… This process is super exciting part on the journey to becoming a trader. #2: Optimise your strategies Creating a strategy is one thing. But optimising and maximising your system is an ongoing thing. It’s crucial to continuously fine-tune your strategies and adapt to the ever-changing market conditions. When you identify areas for improvement and make changes that lead to better performance, the thrill of knowing that you’re on the path to success can be awesome. #3: Search for high probability trades One of the keys to success in trading is finding high probability trades. It’s these trades that will offer a favorable risk-reward ratio and a high chance of success (regardless whether they win or lose). The hunt for these opportunities is always fun and it’s almost like going on a daily treasure hunt. And spotting the highest probability trades, require a deep understanding of the markets and the ability to spot subtle patterns that others might miss. When you uncover a high probability trade and execute it successfully, the feeling of accomplishment is also a great feel. #4: Reading Fundamentals Sure your strategy might not comprise of fundamentals or news. But still learning about the markets, companies, indices and other micro and macro aspects, is interesting. A solid grasp of fundamental analysis is essential for any serious trader. This involves assessing the financial health of companies, industries, and economies to identify why markets move the way they do. When you can successfully combine technical and fundamental analysis to make informed decisions, the thrill of knowing you have an edge in the market is undeniable. #5: Monitor your results and stats As a trading boss… You need to track, analyse and assess your trading performance. You don’t get more power and thrill as a trader, when you have control of your financial markets. When you see your strategies paying off and your account balance growing, the thrill of your hard work and dedication materializing into tangible results is incredibly rewarding. Conversely, it’s also thrilling when you analyse your losses where you can gain valuable learning experiences. And this will help provide insights into areas for improvement and will motivate you to refine your approach. #6: Find new markets to trade Do you think I was looking at AI, VR, Metaverse type companies to trade 10 years ago? Nope! These markets weren’t in fruition with trading as they are today. So as a trader, this is always an exciting and thrilling venture with trading. To explore, adapt and add on new markets into your watch list. When you add and enter these new markets to your strategy, this can expose you to a whole new set of opportunities and challenges. And this will help broaden your horizons and deepen your understanding of the financial markets. So now you know when to embrace thrill as a trader. Use them to fuel and propel you toward achieving your goals. When else do you feel thrill?
JSE:J200Education
by Timonrosso
Chart Patterns: Mastering Price Patterns for Successful TradesChart patterns are powerful tools that allow traders to anticipate market movements and make informed trading decisions. This trading idea focuses on mastering various price patterns to enhance trading proficiency. By gaining expertise in recognizing and interpreting chart patterns, traders can identify high-probability trade setups, optimize entry and exit points, and increase their chances of success in the market. Objective: The objective of this trading idea is to equip traders with a comprehensive understanding of different price patterns and their significance in technical analysis. By mastering these patterns, traders can effectively analyze market trends, identify potential reversals or continuations, and make well-timed trading decisions. Key Components: Introduction to Price Patterns: Begin by understanding the fundamentals of price patterns and their importance in technical analysis. Learn about the types of patterns, including reversal patterns (such as head and shoulders, double tops/bottoms) and continuation patterns (such as flags, triangles, and rectangles). Gain insights into the characteristics and significance of each pattern in predicting future price movements. Reversal Patterns: Dive into studying popular reversal patterns that indicate potential trend reversals. Explore patterns such as head and shoulders, double tops/bottoms, and triple tops/bottoms. Understand how to identify these patterns, confirm their validity through volume analysis, and generate entry or exit signals. Analyze real-life examples to strengthen your pattern recognition skills. Continuation Patterns: Explore continuation patterns that suggest the resumption of existing trends. Study patterns like flags, triangles (ascending, descending, symmetrical), rectangles, and wedges. Learn how to interpret these patterns to validate trend direction, anticipate breakout or breakdown levels, and improve trade entries. Understand the importance of volume and other technical indicators in confirming continuation patterns. Complex Patterns: Delve into more advanced and complex patterns, such as the cup and handle, head and shoulders inverse, and ascending/descending triangles with multiple touches. Gain insights into the nuances of these patterns, their variations, and their potential impact on price movements. Understand how to incorporate these patterns into your trading strategies for enhanced accuracy. Pattern Confirmation: Learn techniques to confirm the validity of price patterns and reduce false signals. Explore additional tools and indicators such as trendlines, moving averages, Fibonacci retracements, and oscillators to validate and reinforce pattern signals. Understand the importance of multiple confirmations for higher-probability trades. Trade Management and Risk Control: Develop effective trade management techniques to maximize profits and minimize risks when trading price patterns. Learn how to set appropriate stop-loss levels based on pattern structures and support/resistance levels. Understand position sizing and risk-reward ratios to optimize risk management. Explore techniques for trailing stops and scaling out of positions to maximize gains. Backtesting and Paper Trading: Apply your knowledge by backtesting price patterns using historical market data. Utilize paper trading or demo accounts to practice trading based on your analysis without risking real capital. Evaluate the performance of your pattern-based strategies, identify strengths and weaknesses, and refine your trading approach. By mastering price patterns and effectively utilizing them in your trading approach, you can significantly improve your trading outcomes. This trading idea aims to provide you with the knowledge and skills necessary to navigate the markets with greater precision, identify high-probability trade setups, and achieve consistent trading success. Note: Trading carries a level of risk, and past performance is not indicative of future results. It is important to conduct thorough research, practice proper risk management, and consider personal circumstances before making any trading decisions.
NASDAQ:NVDAEducation
by LuminoAlgo
Enhance Your Trading Strategy with MACD and RSI ConvergenceIntroduction: Welcome, fellow traders! Today, I'm excited to present a step-by-step tutorial on how to enhance your trading strategy using a combination of two powerful technical indicators: Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) . Section 1: Understanding MACD and RSI - Exploring the Components MACD: The MACD consists of three components: MACD line : Represents the difference between two moving averages, typically the 12-day and 26-day exponential moving averages. Signal line : A 9-day exponential moving average of the MACD line. Histogram : Displays the difference between the MACD line and the signal line, providing visual cues about the momentum of the price movement. RSI: The RSI is an oscillator that measures the strength and speed of price movements on a scale from 0 to 100. Readings above 70 indicate overbought conditions, suggesting a potential price reversal. Readings below 30 indicate oversold conditions, suggesting a potential price bounce. Divergence between price and RSI can be a signal of a trend reversal. Section 2: The Idea Behind the Strategy - Combining MACD and RSI By aligning the signals of MACD and RSI , we aim to increase the reliability of our trading decisions. When both indicators provide signals in the same direction, it enhances the probability of a successful trade. The convergence of MACD and RSI helps filter out false signals and focus on high-probability trade setups. Section 3: Implementing the Strategy - Identifying Bullish and Bearish Signals Look for a bullish crossover: MACD line crossing above the signal line , indicating upward momentum. Confirm the bullish signal: Ensure the RSI reading is above a specific threshold, such as 50, indicating strength in the upward move. Consider additional confirming indicators, such as positive divergence or breakouts from key resistance levels. Identifying Bearish Signals: Identify a bearish crossover: MACD line crossing below the signal line , indicating downward momentum. Confirm the bearish signal: Ensure the RSI reading is below a specific threshold, such as 50, indicating weakness in the downward move. Consider additional confirming indicators, such as negative divergence or breakdowns from key support levels. Section 4: Backtesting and Refinement - Improving Performance and Accuracy The Importance of Backtesting: Gather historical price data for the desired trading instrument and timeframe. Apply the MACD and RSI convergence strategy to the historical data. Analyze the performance of the strategy, considering factors such as win rate, average gain/loss, and maximum drawdown. Adjust the threshold levels, timeframe, or other parameters to improve the strategy's performance. Refining the Strategy: Consider incorporating additional technical indicators, such as trend lines, Fibonacci levels, or volume analysis, to further confirm trade signals. Evaluate the strategy's performance across different timeframes and trading instruments to identify its strengths and weaknesses. Continuously monitor and adapt the strategy to changing market conditions and refine it based on your trading style and preferences. Section 5: Risk Management and Trade Execution Effective Risk Management: Determine appropriate position sizes based on your risk tolerance and account balance. Set stop-loss orders to limit potential losses if the trade goes against you. Establish profit targets to secure gains and exit the trade when the desired level is reached. Regularly review and adjust risk management parameters as needed. Conclusion: Congratulations! You've completed the tutorial on leveraging MACD and RSI convergence to enhance your trading strategy. By combining these powerful indicators, you now have a valuable tool in your trading arsenal. Remember to practice in a demo environment (aka. Paper Trading) before applying the strategy with real funds, and always adapt it to the evolving market conditions. Feel free to share your progress, ask questions, and discuss your experiences in the comments section. Let's learn from each other and continue refining this strategy together. Best of luck on your trading journey! Note: Trading involves risks, and this tutorial is for educational purposes only. Always conduct your own research, seek professional advice, and practice responsible risk management.
BEducation
by LuminoAlgo
6
Gym Well - Trade Well!When you gym well, it’s like trading well. You gym to tone, to lose weight to build muscle and to build discipline. With trading you trade to build your portfolio, build confidence, create a secured financial future and work on your mindset for life. Both pursuits require consistent effort, perseverance, and a strategic approach. Gym is an important element in my life and so I want to explore the similarities between trading and gymming, and how each can lead to success in their respective domains. You Put in the Work Every Day: Gymming and Trading Like a regular gym routine, successful trading requires dedication and consistency. You can’t expect to see results overnight – you need to put in the work every day. As a trader you must constantly educate yourself on market trends, stay informed about global events, and analyze past performance to make informed decisions. Just as gym-goers must adhere to their workout schedules, traders should establish a daily routine that involves researching and analyzing the market. You Pick Up the Portfolio (Weights) as You Make More Money When you gym, you gradually increase the weights you’re lifting to build strength and endurance. Similarly, as you become more experienced and successful in trading, you can gradually increase your investment portfolio. As your confidence and financial gains grow, you may choose to diversify your portfolio and take on a variety of different assets to spread risk, lower risk, optimise and maximize your returns. Don’t Overtrain – Don’t Overtrade Overtraining at the gym can lead to injury and burnout. And if you over trade in the market, it can result in financial losses and emotional exhaustion. It’s essential to strike a balance between staying active and giving yourself time to rest and recover. In trading, this might mean you: Set your limits on the number of trades you make each day or week Identify the goldilocks zone risk per trade Know when to hault trading or lower risks during a drawdown period. And most importantly. Remember, trading is a marathon, not a sprint. So pace yourself accordingly which is crucial to long-term success. It’s a Forever Process (Takes Time) Both gymming and trading are long-term commitments. You won’t see immediate results in either pursuit. It takes time and dedication to achieve your goals and to identify your trading risk and personality. In the gym, you can expect to see gradual improvements in your strength, endurance, and overall fitness. In trading, you’ll gain experience, knowledge, and a more refined strategy as time goes on. So stay dedicated, and you’ll be well on your way to achieving your goals. Let me know if you gym and if it helps your trading :)
JSE:J200Education
by Timonrosso
2
Step-by-Step Guide to Begin Forex and Gold Trading Forex and gold trading have become immensely popular among investors as a great way to earn profits. However, starting with this venture can be quite overwhelming for beginners. Here is a step-by-step guide to help you begin your forex and gold trading journey: 1. Learn the Basic Concepts: Before investing your hard-earned money, it's important to get familiar with the key concepts of forex and gold trading. 2. Choose a Trading Platform: There are plenty of online trading platforms to choose from. Look for one that is user-friendly and offers competitive trading fees. 3. Identify Your Investment Goals: Decide on your investment objectives, as it will help you to make informed trading decisions. 4. Develop a Trading Plan: Create a trading plan to determine how much you're willing to invest, when you'll buy or sell, and which assets you'll trade. 5. Set a Budget: Determine how much money you intend to invest and set a budget accordingly. Remember, only invest an amount you're comfortable losing. 6. Practice on a Demo Account: Most trading platforms offer a demo account that simulates real trading conditions and helps you practice trading with virtual money. 7. Analyze the Market: Before making any trades, analyze the market through technical and fundamental analysis to identify trends and potential outcomes. 8. Monitor Your Investments: Keep track of your investments regularly and make necessary adjustments if needed. 9. Be Prepared for Risks: Understand that trading involves some risks, so be prepared to handle losses. 10. Keep Learning: Continuously educate yourself on market trends, economic indicators, and other factors that affect the forex and gold trading market. 11. Identify a Reliable Broker: Choose an experienced and licensed broker who can offer you guidance and support when starting. 12. Start Small: Begin with small investments and gradually build your portfolio as you gain more experience and confidence. 13. Diversify Your Portfolio: Spread your investments across different currencies and assets to reduce the risk of losses. 14. Be Realistic: It takes time and patience to become a profitable trader, so set realistic expectations and avoid making hasty decisions. 15. Stay Disciplined: Maintain discipline and stick with your trading plan to achieve your investment goals. Here is the example of how exactly you should trade. Imagine that you have a trading strategy for gold trading. You trade key levels. Once a key support is reached you buy and once a resistance reached you sell. Taking the trade you risk fixed % of your trading account. You know the exact entry reasons, your stop loss and target. Ideal approach should work like clock. In conclusion, starting forex and gold trading can be challenging, but with the right knowledge and preparation, you'll be on your way to making profitable trades. Just remember to keep learning, stay disciplined, and be patient.
OANDA:XAUUSDEducation
by TopTradingSignals
11
STOP Impulse Trading at once – 5 Actions to takeOne of the most dangerous traits a trader can adopt is… Impulse Trading. This is where they take trades mainly on emotions and gut rather than sound financial analysis. This means, more risk, more irrational choices and that can lead to steering away from what works. Your proven trading strategy! And the end result, you’ll lose in the long term and end up with less confidence for your future endeavours as a trader. So let’s come up with certain ways for you to STOP the impulse trading. ACTION #1: Give it an hour When you feel the urge to make a trade based on emotions, it can be helpful to step back and take a break. One great way is to wait for an hour before you make any decisions. Go get something to eat, grab a beer, go walk your crocodile or go do something other than trading. Close your computer if you feel you’re about to impulse trade. This break can help you regain a sense of perspective and avoid making impulsive decisions that you may later regret. ACTION #2: Remember your long term goal I always say… Financial trading is a long-term game. You need to have a clear and specific long-term goal in mind that guides your decisions. When you feel the urge to make an impulsive trade, take a moment remember your trading record, journal and what works. Also, remember it’s not about the one trade but the hundreds of trades later… Ask yourself whether this trade aligns with your overall strategy or whether it’s just a momentary impulse. This can help you stay focused and disciplined in your trading. ACTION #3: Revisit your journal Your journal is pretty much your game-plan. It foretells of the most probable outcome when you follow it. And it should include a record of all your trades, your thoughts and feelings at the time of the trade, and the results of the trade. When you feel the urge to make an impulsive trade, take some time to revisit your journal. Look at your past trades and the results they produced. My favourite… Go look at your drawdowns. Go look at your biggest drawdowns. Then go see how you came out of the drawdowns and your portfolio headed to NEW all time highs. There is no better feeling than that. Do this and I doubt you’ll want to take any impulse trades again. ACTION #4: Read more trading psychology Mind is everything with trading. It’s a great way to develop your discipline and avoid impulse trading. Either go read trading books, articles, watch YouTubes or just save this article. I can almost guarantee… If you read this article, when you feel like taking an impulse trade – You will stop that primitive way of thinking. You’ll stop that inner conscience from trying to ruin your trading performance. ACTION #5: Avoid Overtrading If you find you take MANY trades at a time… You’ll be more inclined of taking impulse trades, because you feel you need to take more. Try and have a cap when it comes to the number of trades you hold. I used to never hold more than 5 trades. But over time, with adopting into new markets and evolved markets – that number gone up. Now I make sure I never have more than 12 trades opened at any one time. Remember to give yourself time to reflect, keep your long-term goals in mind, revisit your journal, and read more about trading psychology. Let’s bring back the 5 actions to avoid taking any impulse trades. ACTION #1: Give it an hour ACTION #2: Remember your long term goal ACTION #3: Revisit your journal ACTION #4: Read more trading psychology ACTION #5: Avoid Overtrading Let me know if this was useful in the comments.
JSE:J200Education
by Timonrosso
7
Learn The Main Elements of The Trading Strategy There are hundreds of different trading strategies based on fundamental and technical analysis. These strategies combine different tools and trading techniques. And even though, they are so different, they all have a very similar structure. In this educational article, we will discuss 4 important elements every trading strategy should have. 1️⃣ The first compontent of a trading strategy is the list of the instruments that you trade. You should know in advance what assets should be in your watch list. For example, if you are a forex trader, your strategy should define the currency pairs that you are trading. 2️⃣ The second element of any trading strategy is the entry reasons. Entry reasons define the exact set of market conditions that you look for to execute the trade. For example, trading key levels with confirmation, you should wait for a test of a key level first and then look for some kind of confirmation like a formation of price action pattern before you open a trade. 3️⃣ The third component of a trading strategy is the position size of your trades. Your trading strategy should define in advance the rules for calculating the lot of size of your trades. For example, with my trading strategy, I risk 1% of my trading account per trade. When I am planning the trading position, I calculate a lot size accordingly. 4️⃣ The fourth element of any trading strategy is trade management rules. By trade management, I mean the exact conditions for closing the trade in a loss, taking the profit and trailing stop loss. Trade management defines your actions when the trading position becomes active. Here is the example. I took a trade on Friday, following my top-down trading strategy. I was trading Dollar Index (the instrument that is in my trading list). Entry reason was a test of a key level on a daily and a formation of a horizontal range on 1H time frame. The position was opened on a retest of its broken neckline. Position size of this trade was based on 1% of my trading deposit. Stop loss and targets were structure based. Make sure that your trading strategy includes these 4 elements. Of course, your strategy might be more sophisticated and involve more components, but these 4 elements are the core, the foundation of any strategy.
FOREXCOM:XAUUSDEducation
by VasilyTrader
5
Don't listen to your inner NINNY! I can't swear on TV :(Traders have 1 JOB!. To just take the trade. All the other stuff is semantics. But most times you’ll find your inner B I mean Ninny takes over. And it tells you: ~ Don’t take the trade. ~ You’ll lose money. ~ The stars are not aligned! ~ Blah blah fish paste! You need to stop listening to your inner F - inny, or it will destroy your chances of success. So let’s talk about the 4 common excuses traders make and how to overcome them. Excuse #1: I’m not in the mood The markets are awake with or without you. People are making money and doing things in this world. Others are taking ice baths, cold showers, hitting the gym twice a day. They are doing the hard. You need to stop the excuses of not in the mood, get off the couch and take action for your life. You are in control of your life, what you do and what you make. Do what you need to. Create a schedule that includes time for exercise, meditation, and of course trading. Excuse #2: External news event kicked in Financial markets are subject to external events that can impact trading decisions. These events can include political developments, natural disasters, or major economic announcements. The problem is. These events come daily. Every day there are new news announcements, GDP numbers, employment and jobs reports, Interest rates, inflation rates etc…If you’re not taking a trade because of one of these announcements, I’m sorry but. That’s just an excuse! If you must. Write down a few IMPORTANT news announcements that you want to watch for when you trade. Maybe interest rates in America. Maybe NFP reports, Maybe during FOMC meetings. But do the research and find out what news events are worthy to NOT take a trade. I’ve been in the markets for 20 years and I haven’t found one worthy news announcement other than NFP for Forex trading. Excuse #3: Market doesn’t feel right To you it doesn’t feel right. To you, you think the market is some sentimental machine that feels healthy or sick. To me, I see prices, risks and probabilities. I see a robot and mechanical processes with billions of dollars streaming in and out at any one second, the market is opened. You need to develop an objective criteria for assessing market conditions. Have tunnel vision and stop trying to predict the temperature of the market. It’s not human. There is buying. There is selling. There is a repetition of that every day. Market doesn’t feel right, is an excuse. Excuse #4: System lined up but it’s not perfect Ok so you have a system good. You have a strict strategy to follow, great. But the system lined up and it’s not perfect. As I mentioned before. You need to write down the rules and criteria that you can use to identify opportunities and risks. There are only three types of trades in this world. HIGH probability trade – Market lined up perfectly according to the system. MEDIUM probability trade – Market almost lined up perfectly but I will still take the trade and risk a little less. NO trade – Market did NOT line up and therefore I’m not taking a trade. So, are you going to continue to listen to your inner Busy Ninny or are you going to start making money the right way?
TVC:SA40Education
by Timonrosso