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7 Things to Consider Before Trading Full-TimeFor many traders, the dream of full-time trading represents the ultimate freedom. Full-time traders have the ability to choose their own hours, trade from anywhere, and select which opportunities to pursue. However, not all traders are ready to make the leap to full-time trading. Just as too much freedom can harm some economies, not everyone is prepared for the challenges of full-time trading. So, how do you know if you're ready to trade full-time? Here are some signs to consider: 1. You have sufficient capital: Trading full-time means quitting your current job and relying on your trading income as your primary source of income. Be realistic about the fact that you may not make significant profits in your first few months. 2. You have tried and tested various methods and strategies: It's important to have a strategy that has proven profitable for you, as well as other strategies that are suitable for different market conditions. You never know when and for how long market trends may shift. 3. You have spent a significant amount of time trading live accounts: Trading live accounts bring about psychological challenges that you may not encounter when trading demo accounts. It's important to have a good understanding of your trading strengths and weaknesses and to be able to stick to a trading plan before committing to full-time trading. 4. Trading is your passion: If trading is what motivates you to get up and start each day, it may be a sign that you're ready to trade full-time. 5. You have a solid risk management plan: Full-time trading requires a steady stream of income, so it's crucial to have a risk management plan in place to protect your capital and ensure that you can continue trading in the long term. This includes setting stop-loss orders, properly sizing your trades, and having a plan for handling losing trades. 6. You have a support system: Trading full-time can be isolating, so it's important to have a network of friends, family, or other traders to talk to and share ideas with. It can also be helpful to have someone who can hold you accountable for your trading plan and help you stay disciplined. 7. You have a plan for your non-trading time: Full-time traders often spend a lot of time in front of their computers, so it's important to have a plan for how you'll spend your time outside of trading. This could include exercise, hobbies, and social activities to help maintain a healthy work-life balance. Making the decision to become a full-time trader shouldn't be taken lightly. It requires a significant commitment of time and capital, and it may not be right for everyone. By considering these factors and being honest with yourself about your readiness, you can make an informed decision about whether full-time trading is the right path for you. We hope you found this post valuable and informative.
Education
by ROBINHOODLAB
1
10 things you need to know about Cryptocurrency1. Introduction: Cryptocurrency is a relatively new concept that has gained a lot of attention in recent years. But what exactly is it, and how did it become so popular? Definition of cryptocurrency: At its most basic, cryptocurrency is a digital or virtual currency that uses cryptography for security. Cryptocurrency is decentralized, meaning it is not controlled by any government or financial institution. This decentralization makes it possible for users to make secure, direct transactions with each other without the need for intermediaries. A brief overview of the popularity and growth of cryptocurrency: The first and most well-known cryptocurrency is Bitcoin, which was created in 2009. Since then, the popularity and value of cryptocurrency have exploded. As of 2023, there are over 21,844 different cryptocurrencies in existence with a total market value of over $859 Billion. The increasing adoption of cryptocurrency by merchants, investors, and consumers has led to its mainstream acceptance and the establishment of a thriving cryptocurrency market. However, despite its growing popularity and mainstream acceptance, cryptocurrency is still a controversial and misunderstood topic. In this blog, we will explore the basics of cryptocurrency, how it works, and its potential future impact. 2. Cryptocurrency is a digital currency: Cryptocurrency is a digital or virtual currency that uses cryptography for security. This means that it exists purely in electronic form and is not tied to any physical asset or currency. Instead of being printed or minted like traditional fiat currency, cryptocurrency is created through a process called mining. How cryptocurrency is created and stored: Mining is the process of verifying and adding transactions to the blockchain, a public ledger of all cryptocurrency transactions. Miners use powerful computers to solve complex mathematical problems and are rewarded with a certain amount of cryptocurrency for their efforts. The process of mining helps to secure the blockchain and prevent fraud. Once it is created, cryptocurrency is stored in a digital wallet, which is a software program that stores the user's public and private keys. These keys are used to access and make transactions with the user's cryptocurrency. Digital wallets can be stored on a user's computer or in the cloud, and they can be accessed from anywhere with an internet connection. The differences between cryptocurrency and traditional fiat currency: There are several key differences between cryptocurrency and traditional fiat currency, such as the U.S. dollar or the euro. One of the main differences is that cryptocurrency is decentralized and not controlled by any government or financial institution. This means that it is not subject to the same regulations and is not backed by any physical assets. Another difference is that cryptocurrency is not physical. It exists purely in digital form and is stored in digital wallets. In contrast, traditional fiat currency is physical and can be stored in a physical wallet or bank account. Finally, cryptocurrency is subject to high levels of volatility, meaning its value can fluctuate significantly over short periods of time. In contrast, the value of traditional fiat currency is generally more stable. Overall, while cryptocurrency shares some similarities with traditional fiat currency, it is a unique and distinct type of currency with its own set of characteristics and features. 3. Cryptocurrency uses blockchain technology: One of the key technologies that make cryptocurrency possible is blockchain. Blockchain is a decentralized, digital ledger that records transactions on multiple computers, making it difficult for any single transaction to be altered or tampered with. Each block in the chain contains a record of multiple transactions, and once a block is added to the chain, the transactions it contains become part of the permanent record. Definition of blockchain: At its most basic, a blockchain is a series of blocks that are linked together using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. This structure makes it almost impossible to alter the data contained in any single block without altering all of the blocks that come after it, making the blockchain a secure and transparent record of all transactions. How blockchain works to secure and record cryptocurrency transactions: In the context of cryptocurrency, the blockchain is used to secure and record transactions. When a user wants to make a transaction with their cryptocurrency, they create a digital "message" that contains the details of the transaction, including the amount of cryptocurrency being sent and the recipient's digital wallet address. The message is then broadcast to the network of miners, who verify the transaction and add it to the blockchain. Once a transaction has been added to the blockchain, it becomes part of the permanent record and cannot be altered. This helps to prevent fraud and ensure that all transactions are transparent and secure. The role of miners in verifying and adding transactions to the blockchain: Miners play a crucial role in the process of adding transactions to the blockchain. They use powerful computers to solve complex mathematical problems and are responsible for verifying and adding transactions to the blockchain. When a miner successfully adds a block to the blockchain, they are rewarded with a certain amount of cryptocurrency. The process of mining helps to secure the blockchain and prevent fraud. It also ensures that there is no single point of failure in the system, as the blockchain is decentralized and spread across multiple computers. Overall, the role of miners in the cryptocurrency ecosystem is essential to maintaining the security and integrity of the blockchain. 4. Cryptocurrency is decentralized: One of the key features of cryptocurrency is that it is decentralized, meaning it is not controlled by any single authority or entity. This is in contrast to traditional financial systems, which are centralized and controlled by governments or financial institutions. What it means for a system to be decentralized: A decentralized system is one in which there is no central authority or point of control. Instead, the system is distributed and controlled by a network of users. This can be contrasted with a centralized system, which is controlled by a single authority or organization. The benefits and drawbacks of decentralization for cryptocurrency: There are both benefits and drawbacks to decentralization in the context of cryptocurrency. One of the main benefits is that it makes the system more secure and resistant to censorship. Because there is no central point of control, it is much more difficult for an attacker to compromise the system or for transactions to be blocked or censored. Another benefit of decentralization is that it can make the system more transparent and accountable. Because all transactions are recorded on the blockchain, they are publicly visible and cannot be altered. This can help to build trust and confidence in the system. However, decentralization also has its drawbacks. One of the main drawbacks is that it can make the system more complex and harder to understand. It can also make it more difficult to reach a consensus on important decisions or updates to the system. Overall, the decentralization of cryptocurrency is both a strength and a weakness. While it offers many benefits, it also comes with its own set of challenges and complexities. 5. Cryptocurrency can offer anonymity: One of the features of cryptocurrency that has attracted both praise and criticism is its potential for anonymity. While traditional financial transactions are linked to the identity of the user, cryptocurrency transactions can be anonymous, making it difficult to trace the identity of the sender and recipient. How cryptocurrency transactions can be anonymous: There are several ways in which cryptocurrency transactions can be made anonymously. One of the most common is the use of pseudonymous addresses. These are unique, randomly generated addresses that are used to send and receive cryptocurrency. Because they are not linked to any specific identity, it is difficult to trace the identity of the user associated with a particular address. Another way to increase anonymity is through the use of a virtual private network ( VPN ) or a privacy-focused browser like Tor. These tools can help to mask the user's IP address and make it more difficult to trace their online activity. The potential for cryptocurrency to be used for illegal activities: Because of its potential for anonymity, cryptocurrency has been associated with illegal activities, such as money laundering and the sale of illegal goods. While it is true that cryptocurrency can be used for these purposes, it is important to note that it is also possible to trace cryptocurrency transactions and identify the users involved. Law enforcement agencies have successfully used blockchain analysis to track and prosecute individuals involved in illegal activities using cryptocurrency. Overall, while cryptocurrency can offer a certain degree of anonymity, it is not completely untraceable. It is important for users to be aware of the risks and potential legal consequences of using cryptocurrency for illegal activities. 6. Cryptocurrency is subject to volatility: One of the key characteristics of cryptocurrency is that it is subject to high levels of volatility, meaning its value can fluctuate significantly over short periods of time. This volatility is due to a variety of factors, including market demand, investor sentiment, and regulatory developments. How the value of cryptocurrency can fluctuate: The value of cryptocurrency is determined by supply and demand in the market. When there is high demand for a particular cryptocurrency, its value will generally increase. Conversely, when demand is low, the value will generally decrease. In addition to market demand, the value of cryptocurrency can be influenced by investor sentiment and speculation. When investors are optimistic about the future of a particular cryptocurrency, they may be more likely to buy it, which can drive up its value. On the other hand, when investors are bearish or uncertain, they may be more likely to sell, which can drive down the value. Finally, regulatory developments can also impact the value of cryptocurrency. For example, if a government announces new regulations or restrictions on cryptocurrency, it could affect investor sentiment and demand for the asset. The potential risks and rewards of investing in cryptocurrency: The high volatility of cryptocurrency can be both a risk and a reward for investors. On the one hand, the potential for significant price movements can make it a risky investment. On the other hand, the potential for significant price appreciation can also make it a potentially lucrative investment. It is important for investors to be aware of the risks and to carefully consider their investment strategies when it comes to cryptocurrency. It is also important to diversify investments and not invest more than you can afford to lose. 7. Cryptocurrency is not yet widely accepted: While cryptocurrency has gained a significant amount of mainstream attention in recent years, it is still not widely accepted by merchants and consumers. While some merchants have begun to accept cryptocurrency as a form of payment, the majority of transactions still take place using traditional fiat currency. The current level of adoption and acceptance of cryptocurrency by merchants and consumers: The adoption and acceptance of cryptocurrency by merchants and consumers vary depending on the location and the specific cryptocurrency in question. In some countries, cryptocurrency is more widely accepted than in others. For example, in countries with unstable or unreliable fiat currencies, cryptocurrency may be seen as a more stable and secure alternative. Overall, while the use of cryptocurrency is growing, it is still a relatively small part of the global economy. According to a 2021 survey, only around 5% of the global population has used cryptocurrency, and only a small fraction of merchants accept it as a form of payment. The potential for wider acceptance in the future: Despite the currently limited adoption of cryptocurrency, many experts believe that it has the potential to become more widely accepted in the future. As the technology continues to mature and more people become familiar with it, it is possible that cryptocurrency could become a more mainstream form of payment. In addition, the increasing use of cryptocurrency for cross-border payments and the potential for it to be used as a store of value could also drive wider adoption. As more merchants and consumers become aware of the benefits of cryptocurrency, it is likely that its use will continue to grow. 8. Cryptocurrency is not yet regulated: One of the challenges facing the cryptocurrency industry is the lack of clear and consistent regulation. Because cryptocurrency is a relatively new and decentralized asset class, there is currently a patchwork of regulations across different countries and jurisdictions. The current state of regulation around cryptocurrency: The current state of regulation around cryptocurrency varies widely depending on the location. In some countries, cryptocurrency is heavily regulated and treated like any other financial asset, while in others it is largely unregulated. In the United States, for example, the regulation of cryptocurrency is split between various federal agencies. The Internal Revenue Service ( IRS ) treats cryptocurrency as property for tax purposes, while the Commodity Futures Trading Commission (CFTC) regulates certain cryptocurrency derivatives. The Securities and Exchange Commission (SEC) also has authority over certain cryptocurrency offerings that are considered securities. In contrast, some countries have taken a more hands-off approach to cryptocurrency regulation. For example, Switzerland has a reputation for being a cryptocurrency-friendly jurisdiction, with relatively light regulation compared to other countries. The potential for future regulation: Despite the current patchwork of regulations, it is likely that cryptocurrency regulation will become more consistent and harmonized in the future. As the cryptocurrency industry continues to grow and mature, there is increasing pressure on governments and regulatory bodies to provide clarity and guidance on how to handle cryptocurrency. In particular, there is a growing consensus that there is a need for better consumer protection and regulatory oversight to ensure that the cryptocurrency market is fair and transparent. It is possible that we will see more countries adopt cryptocurrency regulations that are similar to those that currently exist for traditional financial assets. However, it is also important to note that the decentralized nature of cryptocurrency means that it is difficult to regulate in the same way as traditional assets. There is a risk that too much regulation could stifle innovation and limit the potential of cryptocurrency. Overall, the future of cryptocurrency regulation is uncertain and it is likely that it will continue to evolve as the industry matures. It is important for governments, regulatory bodies, and industry participants to work together to find a balance between protecting consumers and promoting innovation. 9. There are many different types of cryptocurrency: While Bitcoin is the most well-known and widely used cryptocurrency, it is far from the only one. As of 2023, there are over 21,844 different cryptocurrencies in existence with a total market value of over $859 Billion. These cryptocurrencies differ in a number of ways, including their underlying technology, use cases, and market value. The most well-known and widely used cryptocurrencies: Some of the most well-known and widely used cryptocurrencies include Bitcoin, Ethereum, and Litecoin. Bitcoin: Bitcoin was the first and is still the most well-known cryptocurrency. It was created in 2009 and has the largest market capitalization of any cryptocurrency. Bitcoin is decentralized and uses a proof-of-work consensus mechanism to secure the blockchain and validate transactions. Ethereum: Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud, or third-party interference. These smart contracts are powered by Ethereum's native cryptocurrency, Ether. Litecoin: Litecoin is a cryptocurrency that was created as a lighter and faster alternative to Bitcoin. It uses a different proof-of-work algorithm and has a faster block time, making it more efficient for small transactions. The differences between the various types of cryptocurrency: While all cryptocurrencies use blockchain technology and share some similarities, there are also significant differences between the various types. Some cryptocurrencies, like Bitcoin and Litecoin, are primarily used for peer-to-peer transactions and are designed to be a store of value. Others, like Ethereum, are designed to support smart contracts and decentralized applications. Cryptocurrencies also differ in terms of their underlying technology, such as the proof-of-work algorithm they use, their block times, and their block sizes. These technical differences can impact the performance and scalability of the cryptocurrency. Overall, there are many different types of cryptocurrency, each with its own unique features and characteristics. It is important for users to understand the differences between these cryptocurrencies in order to make informed decisions about which ones to use or invest in. 10. Conclusion: Cryptocurrency is a digital or virtual currency that uses cryptography for security. It is created through a process called mining, in which powerful computers solve complex mathematical problems to verify and add transactions to the blockchain. Cryptocurrency is stored in a digital wallet and can be used to make transactions online. One of the key features of cryptocurrency is that it is decentralized, meaning it is not controlled by any single authority or entity. This decentralization can make it more secure and resistant to censorship, but it also makes it more complex and harder to understand. Cryptocurrency can offer anonymity, as transactions can be made using pseudonymous addresses that are not linked to any specific identity. However, it is also possible to trace cryptocurrency transactions, and the use of cryptocurrency for illegal activities carries legal risks. Cryptocurrency is subject to high levels of volatility, meaning its value can fluctuate significantly over short periods of time. This volatility can be both a risk and a reward for investors, and it is important for investors to be aware of the risks and to carefully consider their investment strategies. Cryptocurrency is not yet widely accepted by merchants and consumers, and the regulation of cryptocurrency varies widely depending on the location. However, it is likely that cryptocurrency will become more widely accepted and regulated in the future. There are many different types of cryptocurrency, each with its own unique features and characteristics. It is important for users to understand the differences between these cryptocurrencies in order to make informed decisions about which ones to use or invest in. The future potential of cryptocurrency: Despite the challenges and uncertainties facing the cryptocurrency industry, many experts believe that it has a bright future. As technology continues to mature and more people become familiar with it, it is possible that cryptocurrency will become a more mainstream form of payment. In addition, the increasing use of cryptocurrency for cross-border payments and the potential for it to be used as a store of value could also drive wider adoption. As more merchants and consumers become aware of the benefits of cryptocurrency, it is likely that its use will continue to grow. Some experts also predict that cryptocurrency could have significant implications for the way in which financial systems operate, potentially disrupting traditional financial institutions and changing the way we think about money. Overall, while there are many challenges and uncertainties surrounding cryptocurrency, it is clear that it has the potential to transform the way we think about and use money. It will be interesting to see how the industry evolves in the coming years and what the future holds for cryptocurrency. We hope you found this post valuable and informative.
Education
by ROBINHOODLAB
2
7 main mistakes of new traders List of deadly crimes committed by new traders So far, you have created a new account, purchased your first Bitcoin. You are now prepared to become a trader in cryptocurrencies. You frequently trade on an exchange where the price of the first coin you purchase increases by 10% before you sell it. Self-satisfied that you did it. Using the ingenious "Buy Low, Sell High" method, you are advancing: a Twitter account. There is already a crowd of new employees awaiting your calls. It was going so well until you committed one of the following rookie errors. 1 - Waiting Pump and Dump Observing a green candle that rockets up into the sky is one of the most beautiful sights a trader can see - if they purchased at the bottom. However, without a horse to race, envy might be overwhelming. You will experience lapsed profit syndrome and attempt to wager your entire bankroll. Occasionally it will pay off, but more often than not it will place you in an awkward situation. A quick price swing in cryptocurrency is not always indicative of a pump-and-dump scam. Positive news or a major influencer's promotion might also result in exponential growth. Before purchasing a coin, it is essential to comprehend why its value is soaring. If not, you risk failure. Many inexperienced cryptocurrency traders try with pump-and-dump organizations that guarantee rapid gains with minimal effort. Failure once or twice will be sufficient to learn the lesson and pursue more intelligent trading tactics. 2 - Buying in illiquid markets For your coin to continue increasing, someone else must want to purchase it. The issue with numerous developing altcoins and numerous tiny exchanges is that they have a dearth of orders. You can be certain that Sprouts (SPRTS) is the future of crypto, but if a sufficient number of traders disagree, you risk focusing on a currency that no one wants to purchase, or at least not at a price that you are willing to pay. There is nothing wrong with long-term investment in a coin whose fundamentals you respect. However, these "undiscovered diamonds" are prone to a lack of liquidity in the short run. Traders who have grown weary of waiting for a coin's price to rise may be compelled to sell drastically below their desired price. 3 - Set the incorrect price Raise your hand If you've ever missed a zero on a trade setup and your coins surged, set your sell order 10 times lower. This is easy to accomplish when dealing with altcoins that are priced in fractions of Bitcoin: you think you're making an order to sell 0.0000457 BTC, but you've actually placed an order to sell 0.00000457 BTC. The majority of exchanges will rise to the maximum rate. However, services like Etherdelta are not as user-friendly as others. Always double-check the buy or sell price before pressing the execute button. 4 - Transferring the incorrect coin to an exchange's wallet or use wrong chain If you sent Bitcoin Cash to a Bitcoin wallet by accident, do not expect the exchange to bail you out. However, the larger exchanges are unlikely to be of assistance. You must exercise caution before sending funds to the wallet, as errors are nearly impossible to rectify. Sending Ethereum tokens to an Ethereum exchange wallet or requesting a mining pool payout directly to an exchange wallet are other rookie errors. Avoid doing that. The greater your trading motivation, the better you will become. 5 - Revenge of trader You are unhappy because you refused to purchase a coin at the last minute, and then it flew to the moon. Or you purchased a worthless certificate - a sure loser - and it failed. Infuriated, you wager your entire fortune on the next green coin and attempt to ride this train to Profitville. In doing so, you overestimate your abilities and enter a market you have not yet explored. Where do you enter and exit the market? Why is the coin's value increasing? You are ignorant because you act based on your feelings. Revenge trading is analogous to capturing your partner in the arms of another person and then grabbing the first item you discover. Nine times out of ten, it will end in tears. The greater your ability to detach your emotions from your trade, the more successful you will become. 6 - Overactivity Too many chefs will destroy the broth, and too many traders will diminish your earnings. This is a simple trap to fall into, and every new trader does it. The day after purchasing a coin, you check to see if its value has increased by 20%. Isn't it preferable to sell and earn a profit? Not required Cut off your losses and let your winners run, as the adage goes. A basic trading approach that can deprive you of some of your greatest rewards is selling assets for the sake of profit. There is nothing more disheartening than selling a coin for a tiny profit only to discover that someone else paid 10 times as much. Additionally, excessive activity for minimal income will result in an increase in assets conserved through exchange costs. In certain ways, hyperactivity that generates tiny earnings is advantageous, but these profits will be consumed by commissions on any exchange. You comprehend the outcomes yourself. 7 - Self-confidence Intuitively, you purchase a coin and observe its value double over the next week. You repeat the procedure with a second coin and the same result occurs. You are fantastic. You are a man. You convert everything you touch into gold. You are staking your next decision on boldness, which may feel like flying to the moon. Then... one loses everything. What occurred? You are impudent, that is what. A little self-assurance is wonderful; it's what enables traders to go against the grain and make their own conclusions. Conversely, over confidence is a formula for disaster. When you disregard warning flags while feeling invincible. Eliminating these seven fatal errors does not qualify you as a professional trader; years of expertise, late hours and early mornings spent watching two monitors and creating charts are still required. Nevertheless, if you eliminate your rookie errors, you may survive long enough to become a pro. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
5 Reasons why others trade VS why I tradeIn the last 20 years, I always love asking this one question. “Why do you want to trade?” Have you ever written down the reasons why you want to become a trader and what your true motivations are? When you answer this question, only then you’ll become more clear with the goals you wish to achieve and how to achieve them. Here’s one clichéd answer, I don’t want you to write down… “I want to make money”. This answer is lazy, impersonal and it tells you and me nothing about who you are truly, deeply and emotionally. If you think trading only teaches you one aspect of your life… I believe your eyes are still yet to be opened with the incredible possibilities that trading will bring you. And so, in this article I’m going to share a few reasons for why people want to trade. And then, I’ll share a few reasons why I trade… Here are 5 reasons why people want to trade… Reason #1: Diversification “I want to diverse my portfolio with different asset classes. This way I can produce a stream of income through long-term investing via stocks and property, short term trading with Premium MATI Trader and medium term investing through index ETFs.” Reason #2: Hobby “I have spare time and money. And what better way than to spend my time trading and making an extra income while doing something I love?” Reason #3: Monetizing my ‘down-time’ “I’ve earned the same income for the last seven years and now I want to earn an extra income during my off-hours too. For the first time in my life, trading has helped me make money while I’m watching Netflix and spending time with my wife”. Reason #4: Invest for my family and kids “Most people depend on portfolio managers and hedge funds to invest their money for their family. I’ve decided to trade the funds I have for my kids instead and take control of the growth of their inheritance through trading.” Reason #5: Keeps me sharp and well-informed “Trading might not be making me super rich yet, but I got to tell you this. It is keeping my brain sharp, well-informed and helps with my skills with decision making.” These are some of the reasons I’ve heard, which have stuck. Now I want to share with you five extra reasons why I trade… 5 Reasons why I trade! My reason #1: FREEDOM – Earn your own income when you want I want the freedom to trade and build an income stream on my own terms, times and conditions. My reason #2: Independence – Be your own boss Trading gives me the platform where I am responsible for my own trading results. This gives me full independence where I take pride with my own financial decisions. It gives me the place where I can grow my portfolio in a way that suits my personality and risk profile to a T. My reason #3: Extremely fun – New career Trading is not a job… This means, you don’t have to do it… But rather it’s an extremely productive and fun hobby to make your free time work for you. This hobby is not like sports or gym where your reward is more on the physical side. Trading is where you gain many different mental skills and bank a consistent income once you get it right. My reason #4: Mind control – Control your emotions Trading well means you have to lose at times. and when you do, you need to be able to cut out the ego and ‘baby tantrum throwing side’ away. You learn to grow up, develop a thicker skin and become a mature trader. This is one of the greatest benefits to learning to trade. It gets to the point where, after you’ve taken hundreds of trades, whether you take a loss or bank a profit, you’ll stay content. You embrace failure with open arms, because you know that it’s one step towards winning. My reason #5: Life skills – You learn risk, rewards and probabilities Once you have mastered the four elements to trading success (Markets, Methods, Money and Mind) you develop a very strong understanding of concepts like: Risk & reward management and probabilities. This won’t only apply to trading but to almost every aspect in your life. You start taking accountability of events into your life. Predictions turn into probabilities. Risk evolves into calculated acceptance. And you start to see things as they are, rather than what you want them to be… SO WHY DO YOU WANT TO TRADE?
JSE:J200Education
by Timonrosso
1
20 Checklist Items in 2023 for YOUR TradingI wish you all the health and happiness, this year has to offer. To kick you off this year on a strong note, I’ve prepared a quick 20 item checklist which you can use for your trading. Save this as a guide for 2023. Let’s go… 1. Save and deposit a portion of your money every month, into your trading account to grow it faster. 2. Cut down on social media and save 15 minutes of no distractions a day to trade. 3. Re-look and evaluate your watchlist, which fits your strategy. 4. Don’t let the news, your friends or anyone interfere with your trading signals. 5. Never extend your stop loss in a trade where you can lose more money. 6. Be more mindful and accept when market trends change. 7. Never miss a trading idea that lines up according to your strategy 8. Celebrate taking each trade that lines up according to your proven strategy. 9. Ask trading questions so you’re never left in wonder. 10. Journal and jot down every trade that comes your way to build your trading track record. 11. Screenshot and save every trading setup, to remind you on how your strategy works live. 12. Find the best time that suits your trading personality and system. 13. Stop overthinking everything, once you’re in your trade. Let it be. 14. Watch every reputable trading stream and lesson on TradingView you can, to boost your knowledge. 15. Don’t fall for scams, get-rich-quick schemes and sensationalised marketing copy or posts on social media. 16. Trust and enjoy the process, week by week. 17. Persist and persevere through your own trading time-line and don’t compare yourself to others. 18. Only take trades when your trading strategy gives you signals 19. Only do what you love and love what you do – don’t waste your time on anything else. 20. Remember to say this when you’re feeling down. “YOU CAN ONLY GET BETTER”. I trust these resolutions will help you through the year.
JSE:J200Education
by Timonrosso
53 Important Trading Acronyms and AbbreviationsHere are 53 trading acronyms and abbreviations to remember and apply to your trading. I’ve also listed them in alphabetical order to make it easier to spot! ATH - All Time High ATM – At the Money ATR – Average True Range BB – Bollinger Bands B/O - Breakout Be - Bearish BE - Break even BOS - Break of Structure Bu - Bullish CFD – Contract for Difference DD – Drawdown DMA – Direct Market Access EMA – Exponential Moving Average E/R - Earnings Report ETF – Exchange Traded Fund FA - Fundamental Analysis FOMC – Federal Open Market Committee FOK – Fill Or Kill FX – Foreign Exchange (Forex) GTC – Good ‘Til Cancelled HH - Higher High HL - Higher Low HOD - High of Day HFT – High Frequency Trading HTF - Higher Time Frame ICO – Initial Coin Offering IPO – Initial Public Offering ITM – In the Money JBTD – Just Buy the Dip LH - Lower High LL - Lower Low LOD - Low of Day L/S – Long or Short LTF - Lower Time Frame MA – Moving Average MACD – Moving Average Convergence Divergence MS - Market Structure OI – Open Interest O/N - Overnight OTC – Over the Counter OTM – Out The Money NFP - Non Farm Payrolls P&L – Profit and Loss PIP – Percentage In Point PRE - Pre Market R/R - Risk / Reward RSI – Relative Strength Index S/R - Support and Resistance SL - Stop loss TA - Technical analysis TF - Time Frame TP - Take profit YTD - Year To Date Can you think of anymore? Let me know in the comments. Trade well, live free. Timon (Financial trader since 2003)
JSE:J200Education
by Timonrosso
1
Don't lose a part of yourself when taking a lossLosing a part of yourself with a loss is a common experience for many traders. When you're in a trade it's easy to get caught up with emotions. When it's going your way, you almost feel like you've banked a winner. When it's going against you it feels like you're a failure and have lost already. You got to work on it and stop both feelings from taking over your trading. There is financial loss but more important emotional loss. Take the financial loss as a simple cost of running a business. But NEVER get caught up with the emotional cost of failure. Rather drop your risk per trade even more, until the point of losing or gaining has no significance to your emotions. Achieve that and you'll know your risk profile and where you are right now as a trader. Work on it and it gets easier over time. Trade well, live free. Timon (Financial trader since 2003)
JSE:J200Education
by Timonrosso
1
BEFORE and AFTER Each Trading Day you shouldA game-plan is a must, to see a potential goal, dream or vision. You got to have a proper POA (Plan Of Action) and execute. Whether it’s selling property, building a business, playing a sport or growing your wealth. You need a BEFORE plan and AFTER plan. Same with trading. You need to have a trading plan BEFORE and AFTER each trading day. BEFORE Each Trading Day: 1. Know the main market’s trend direction The first thing I want to know is, what the main market’s trend direction is. Plot the resistance (ceiling) and support (floor) levels, so you know whether they are in an up, down or sideways trend. If up – look for longs (buys) If down – look for shorts (sells) If sideways – look for potential breakout levels. 2. Scan through your watchlist Once you know the main market’s trend direction, have a quick scan through your watch list (markets you trade). Orientate yourself with where the markets are heading and whether trades are lining up. This way, you won’t go into the trading day blindly. 3. Write down high probability trade setups You know the main market’s trend direction, and have an idea of where the markets are heading – now you can plot your trade ideas. Go through the watch list again, and write down any potential trade setups (with your written entry, stop loss, take profit and reasons for entering the trade). 4. Choose your TRADES for the day Just because you have written down trade setups, doesn’t mean you need to take every one of them. Instead, look at which ones which will yield a better probability at working out and has a better chance at winning. All done before the trading day has even begun… AFTER Each Trading Day 1. Journal every trade When the markets’ have closed, and you have time to breathe, go to your trading journal and jot down the trade/s you took for the day. Each entry should have the (Market name, date, type, margin, entry, stop loss, take profit and reason for entry). 2. Outline lessons of the day If you’re just starting out or you’ve been in the markets for less than five years, I suggest this extremely useful step. Write down any market lessons you learn for the day. Here are some lessons you can write down: How the market reacted to a news event How you felt taking a trade or holding onto current trades Mistakes of the day you learnt or made Trading lessons that you want to incorporate into your trading… Write these lessons down, as they will forever be part of your experiences to become a successful trader. 3. Re-check & confirm your open trades This is extremely NB*. Make sure your entry, stop loss and take profit levels are still in the trading platform with all open trades, at the end of the day… Sometimes, brokers have certain glitches in their systems, that can remove your trading levels (automatically). It happens on a continuous basis and it’s our job, to make sure everything is running smoothly and our levels are still in place. 4. Quick scan your watch list & look for potential trades for tomorrow Last action you can take for the day, is preparing for tomorrow. Go through your watch list, look for the next batch of trade setups and write them down. This is so you know what to do for the next day… Trade well, live free. Timon
JSE:J200Education
by Timonrosso
Are you prepared to lose? (and what to do if you are not)A new trader, let's call her Sarah, has just started trading in the crypto market. She has been reading articles and watching videos about trading, but hasn't taken the time to develop a solid trading plan, or to gain a good understanding of the markets and underlying assets she is trading. Sarah sees bitcoin's value is going up, she doesn't do any further research or analysis, she doesn't set a stop loss or take profit level, she just buys bitcoin, with the expectation that she will make a quick profit. Unfortunately, the value of bitcoin doesn't perform as well as Sarah had hoped, and instead of going up, it starts to go down. Sarah gets anxious and starts checking the bitcoin's value frequently, and since she didn't set a stop loss, she watches as her position continues to lose value. Eventually, the bitcoin loses so much value that Sarah is forced to sell it at a large loss. Feeling disheartened, Sarah starts to second-guess herself and her abilities as a trader. She didn't have a plan or a strategy, didn't manage her risk properly, and didn't have a clear understanding of the markets and the underlying asset. She didn't prepare for the possibility of losses and didn't have a plan for exiting losing positions. 😭😖😞Unfortunately, the story above is very common in trading, so how can we prepare for losing trades? ☝🏽 Preparing for the possibility of losses is an important part of risk management and can help traders to minimize the impact of losses on their trading capital. Some ways to prepare for the possibility of losses include: 1️⃣ Setting realistic trading goals: Traders should set realistic goals that take into account the inherent risks of trading and the potential for losses. By setting realistic goals, traders will be better prepared to handle losses when they do occur. 2️⃣ Establishing a risk management plan: This includes determining the appropriate size of each trade, placing stop-loss orders, and evaluating the potential reward relative to the potential risk. This can help to limit potential losses and protect trading capital. 3️⃣ Maintaining a proper risk-reward ratio: This means that the potential reward of a trade should be greater than the potential loss. This helps ensure that the potential reward justifies the potential risk. 4️⃣ Diversifying the portfolio: By spreading capital across a variety of different markets and instruments, traders can reduce overall portfolio risk and minimize the impact of losses in any one market or instrument. 5️⃣ Building a trading cushion: This means keeping a reserve of capital that can be used to absorb losses and maintain the trader's ability to continue trading. This cushion should be large enough to withstand a series of losses, but not so large that it affects the trader's ability to trade effectively. 6️⃣ Emotionally preparing for losses: It's important to remember that losses are a normal part of trading and to not let them affect you emotionally. By preparing emotionally for the possibility of losses, traders will be better able to handle them when they occur. 7️⃣ Have a plan for exiting losing positions: Having a plan for exiting losing positions will help to minimize the impact of losses on the portfolio. This could include setting a stop loss or taking profits at predetermined targets. ⚠️ Remember, it's important to accept that losses are a normal part of trading and that they are not a reflection of the trader's ability. By preparing for the possibility of losses and implementing a solid risk management plan, traders can minimize the impact of losses and increase the chances of long-term success. I hope this has been informative to you, and if it was, please leave a like or a comment below. 👇🏽👇🏽👇🏽 Thanks for your visit!
Editors' picks
BITSTAMP:BTCUSDEducation
by Nico.Muselle
34
3Cs of trading - Must readI call it the 3 Cs of trading Trading the financial markets can be a challenging and rewarding endeavor. One of the keys to success in trading is making informed... Choices - Choose the markets you want to trade, the strategy, the time frame, choose your mentor and choose your times and plans... Next you need to take calculated: Chances - Take a chance to execute, to deposit money in your account, to set up your trades and lineups. And then be willing to adapt and make. Changes - Changes to your strategy, journal, system and whatever you need to evolve with the current market conditions and environments. Did you find this helpful? I'd love to hear your feedback Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
Success is a self-introspection journey!You and I both know that financial trading the markets is an exciting and most definitely a lucrative venture for those who actually take the time and energy to get it right and trade well. But! Big But... If you want to become a successful trader, it's not just about analyzing market trends and making informed decisions – it is also about self-introspection and personal growth. This journey is one big self-discovery. And you'll find it's not only beneficial to trading but with life, love, work and even your true identity. Aas traders must know our own motivations, behaviors, and beliefs in order to truly excel. This means taking an honest look at our strengths and weaknesses, and being willing to make the necessary changes to become a more disciplined and effective trader. Do this and you WILL develop a strong sense of self-awareness in order to make better decisions under pressure. Trade well, live free. I'm off to bed. Timon MATI Trader (Financial trader since 2003)
JSE:J200Education
by Timonrosso
1
6 Thinking Hats for a TraderIf you don’t know the 6 Thinking Hats by now, I have to ask. How do you solve problems, deal with arguments or make decisions? I do forgive you though, as these strategies are not ones we learn in school. In fact, when I first read about this strategy, I got to say every aspect of my life changed (including trading). I hope this article will change your life too. Let’s start with the main man himself. The Author of The Six Thinking Hats Edward de Bono is a world-renown lateral thinker, writer and philosopher. In fact, he was the first person to use the term ‘Lateral Thinking’. Born in 1933, in Malta, Edward has achieved a number of degrees and has published over 85 books (mostly on thinking and the use of language). But out of all his works of art, there is one of the most popular techniques that changed the world and changed the way we think. It’s called The Six Thinking Hats or 6TH. Here’s how it works There are six different imaginary hats, with each having a different colour. Each time you put on a hat, you change the way you think about something. It also helps you see with better clarity and with a different perspective. Whether you’re having an argument, making a decision, solving a problem, building a business or creating a trading strategy – the 6 Thinking Hats will help streamline the process. If you’re with more people, make sure everyone is wearing the same hat at a time, to avoid conflict. Let’s now get into the inner workings of the 6 Thinking Hats, and how it can apply to your trading and other aspects in life. HAT #1: WHITE NEUTRAL VIEW This is the hat that contains all of the information, facts, data, figures, metrics and statistics. When it comes to trading there are certain facts that you need to have considered including: The broker you choose The affordability The costs involved What equipment you have to trade Back testing, forward testing and real testing data and statistics with your strategy. HAT #2: RED EMOTIONAL VIEW The second hat you’ll put on is the RED HAT. When you put this hat on, come to terms with what you feel. I’m talking about your intuition, your fear, your greed and your gut feeling. Then when it comes to trading ask yourself these questions… · Can you handle risking money you have? · Do you feel you have the discipline to pursue trading on a weekly basis? · Do you enjoy the idea of trading? · How much money do you think you can easily deposit into your trading account? · How much money do you think you can psychologically handle losing, if you take 10 losing trades in a row? · Do you think you can sleep easily at night knowing you have your money tied up in the markets? Once you go through all the feelings and you answer the questions, then you can move to the third hat. HAT #3: YELLOW POSITIVE VIEW This is the hat you’ll find is the one, you want to leave on when you think. It’s the hat that contains all the benefits and rewards. When you put this hat, you’ll think of the following with trading: What are the benefits to trade? How much money do you want to make a year trading? Why will your trading strategy work? What are your goals as a trader? Why is trading the best decision for your financial future? Feeling good? Well you’re supposed to when you put on the yellow hat. But we still have three more hats to go… HAT #4: GREEN CREATIVE VIEW With every decision comes extra out of the box thinking. And that’s where the green hat comes in. When you put on the green hat, this is where your imagination should help you with brainstorming, new ideas and add-ons to the think tank process. With trading, there are just so many different ways to be creative. And you’ll find that with ever evolving markets, you’ll need to adapt and adjust course. Here are some ideas to think of when you put on the green hat. How can I let my winners run further systematically? How can I increase my win/rate i.e. Trailing stop loss What indicator can I use for peripheral vision to help with my confirmation on each trade? I should create and print a few psychology sticky notes to help with my trading. I should name my system to be more personal with it I should find ways to tweak my system which will help with the performance I should have a trading consultation with Timon to help build and optimise my trading strategy better J. HAT #5: BLUE HAT PROCESS VIEW When you put on the blue hat you should think of three main things… Systems, criteria and planning. This is where you’ll choose the criteria you’ll follow with your trading strategy. What indicators are you using? What parameter’s are you using with the indicators? What time frame works best? What calculators do you need whenever you trade? This is where you’ll find the main work takes place once all the planning is done… And one where you’ll eventually marry a strategy to help grow your portfolio. HAT #6: BLACK HAT NEGATIVE VIEW When you put on the black hat, four things should arise instantly. Difficulties, problems, weaknesses and risks… I saved this hat for last, because it’s the only hat that will most likely help you decide whether trading is for you or not. But you can re-arrange the hats according to your won preference. The main things to ask when you put on the black hat, with trading is: What are the dangers of trading, risks, financial risks and time risks? What if the system stops working? Why are you sceptical about trading? What if the current markets go into an unfavourable territory? What if the market drops to zero when I’m in a long trade? FINAL WORDS: How awesome! You now have The Six Thinking Hats to your every decision making process. You’ll find that it will force you out of the mono-lateral way of thinking which you’ve habitually had your entire life. You’ll see things with new perspectives and compartmentalize issues in new ways… It might even pro-long your marriage or improve your relationships… If you enjoyed this article, I would love to hear your thoughts Trade well, live free. Timon MATI TRader (Established 2003)
JSE:J200Education
by Timonrosso
LEAVE ME ALONE! LEAVE ME ALONE! Once you have entered a trade and set your trade levels (such as stop-loss and take-profit), LEAVE IT ALONE. It is important to let the market play out and not interfere with the trade. This way you'll follow your trading plan and not be swayed by emotions or external factors. Also, if you leave it alone it will also stop you from taking impulsive decisions in the future, which can be super dangerous in the long term. Once you've done your bit and left the trade to do its thing, once it hits your stop loss or take profit - you'll be able to track, record, evaluate and monitor your trading results. This cuts out the subjective feelings, emotions and opinions. It's the play of patience that will help you to learn how to trade well for your financial future.
JSE:J200Education
by Timonrosso
1