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Bear market rally before the crash? We stated that since the price broke below the 200MA, that we entered and have remained in a bear market. And during bear trends, the market tends to zig zag along the way with strong downside pushes... Right now, the price is heading up to retest the most recent resistance. This is normally, where traders and retail traders will buy in and believe the market is heading up. But this is where we need to be cautious with our decisions. Yes we will see upside in many stocks, but we mustn't think this is the start of the bull market UNTIL we see the price go above the 200MA... The target for now remains at 56,483
JSE:J200Short
by Timonrosso
What is a REIT and how do they work?A. Let’s start with the basics: REITs stands for 'Real Estate Investment Trusts'. These are essentially property companies that are listed on the stock market which you'll find pretty much most of them on TradingView. So how do they work? Step 1: An individual decides to invest in a REIT company. Step 2: The money is then collected into a large pool (like all trusts). Step 3: The pooled money is then invested into the property that the company either owns, operates or finances. Step 4: Over time the company starts to make revenue and profit. Step 5: The profits are then accounted and collected. Step 6: The profits are then distributed in parts to the initial investors who helped finance the company through a REIT. Sounds great in theory… But in reality, there is always a catch… And that catch is timing. The Big five SA Reits have lost over R100bn in value since 2018. The BIG five REITs are: 1. Growthpoint 2. Redefine 3. Resilient 4. Vukile and 5. Hyprop. Of course, this could be seen as an opportunity but there are several other factors we need to consider before deciding the best time to trade this type of asset. A trick will be to overlay the five companies on a chart. See how they move and operate in conjunction to each other. And then we can decide which are buys or sells. Apples with apples.
TVC:SA40Education
by Timonrosso
Has the Twilight Zone with the World Markets ended? -DOWN we go!If you've just been a position (swint trader) with shares this year. You'll know it's been bvery difficult and challening. We've seen world markets move in a sideways motion which I like to call the Twilight Zone. FTSE 100 - UK- DAX 30 - Germany CAC 40 - France ASX 200 - Australia It breaks down, it goes back up into the range. It breaks up and it goes back down into the range. The only semblance of hope right now is that the price has broken BELOW the range and has remained below the 200MA Blue LIne. This means, the markets are more likely to be and stay in the downtrend for the next couple of weeks and months. And we might need to look to short (sell) more than we go long and buy. The overall trend is down right now, but for how long? We as traders can only react and anticipate based on what we see in front of our eyes. It's all we can do really with strict money management principles to preserve and protect.
TVC:SA40Short
by Timonrosso
Why It Pays to be a Patient Trader – 10 PointsPatience, passion and persistence. The three Ps of what it takes to make it as a trader. We like to say 5% is action and 95% is waiting. And that’s why I’ve written a complete guide to being a patient trader. Let’s start… No Impulsive Decisions Impulsive decisions are the bane of any trader. The market is known to be volatile, jumpy, fickle and are prone to make sudden swings. These swings can cause panic, fear and can lead to really poor trading choices. If you have the patience to wait for your setup, the right market environment and for your trade to play out – you’ll stop the impulsive and emotional decisions. Wait for the right and conducive market conditions Many trading systems are designed to work optimally under certain market conditions. For trend, momentum, and breakout traders – we need to let the market move and continue to move in the directions. Patient traders will need to continue taking their trades, when the system lines up. And only when the environment is right, will they make money. That’s why you need to learn to risk little with the losses. And when the winners kick in, they’ll make up for the dips and will help your portfolio flourish eventually. Spot only the high and medium probability trades Don’t be a rash trader. When you jump with every opportunity you can. There are low, medium and high probability setups. Wait for only the high and medium probability trades. Skip the low probability trades that align or risk very little (0.5%). Only trade those that align with your system’s strength and exhibit strong, favourable signals. This will help boost your win rate and drop the chances of loss. Hold onto winners To grow your portfolio, you need to let your winners run. Let the great trades, run their course. Many traders, especially beginners, often exit winning trades too soon due to fear of a reversal. They also exit quickly as they don’t want to take the trade to turn into a loss. And as a result, they bank a measly gain. A patient trader understands that great profits are made when you ride the big trends. This will require you to resist the urge to close a winning position prematurely. Wait it out A trader must sometimes wait: Wait for a setup to come to fruition. Wait for the trade to play out. Wait for unfavourable trading periods to end. Emotional stability While you’re being patient. Cut out the emotions. That feeling of ants in your pants. Rather learn to maintain emotional stability, and avoid the emotional highs and lows. Your trading should not feel like an emotional rollercoaster. Just do your job and treat it as a job. Not as the lottery. Not as a gamble. Not as a be all and end all situation. Don’t let anything cloud your judgement that can lead you to trading bad. Master your trading strategy Just because you have a trading strategy and gameplan. Does not mean, you know how it works over the long haul. A patient trader takes time to master their trading strategy. Back, forward and real test the strategy carefully. Trade them on different markets. See how they work taking into account the costs (brokerages, daily interest charges and even spreads). Know how the game-plan works in all different situations and environments until you are consistent and have a proven and tested methodical execution. Avoid overtrading Patience helps traders avoid overtrading. This is a common pitfall where too many positions are taken. You have to stop revenge trading (to make up for losses). You have to stop over trading (to try make more gains in a day). Stick to high probability trades, a careful selection of markets and the best times to trade. Learn from mistakes The main time you’ll actually learn, adapt and grow as a trader – is through your mistakes. When you make a mistake, do not sweep it under the rug. Take the time to write them down, screenshot them and jot down a memo to yourself about these mistakes. When you learn from them, it will prevent you from making them again and you’ll even be able to refine your strategy to avoid them. Develop discipline into integration Patience cultivates discipline. That is trading well every single day or week. Once you adapt into a routine and you have the discipline to act accordingly. Then you will enter into a lifestyle integration. You won’t think twice. You won’t need anything to motivate you to trade. You will just trade well like you brush your teeth, sleep or eat everyday. Once you have integration, there’ll be no need for motivation. Summary Patience in trading is a trader’s virtue. It is an essential strategy for you, if you wish to attain long-term success in the financial markets. Here are the key points we mentioned in this complete patience guide. No Impulsive Decisions Wait for the right and conducive market conditions Spot only the high and medium probability trades Hold onto winners Wait it out Emotional stability Master your trading strategy Avoid overtrading Learn from mistakes Develop discipline into integration
TVC:SA40Education
by Timonrosso
Become a Trading Machine – 11 Ways!If you want to trade well and consistently. You have to be more mechanically orientated. I’ll be literally quick and brief. Saying “literally” was unnecessary and made it longer. Sorry. Here are the pointers: 1. Stay committed 2. Cultivate patience 3. Avoid herd mentality 4. Be long-term oriented 5. Stop crying over losers 6. Review your performance 7. Stop celebrating winners 8. Adapt to market conditions 9. Keep your emotions in check 10. Don’t think of quick success 11. Adapt and advance with technology Are there any ways you take to be a trading machine? Let me know!
TVC:SA40Education
by Timonrosso
Is the JSE ALSI forming a W Formation or is it darts to playIt's like throwing darts and guessing whether it's going up or down for the month... This is an intraday traders haven rather than a swing (position) traders environment... The best we can do is diversify and hedge different longs and shorts at the same time and risk a little... Only technical thing I can say is if the support holds and the price goes up, it could form a W Formation... This will be the only semblance of hope of upside to come. But we'll play it by ear as always.
JSE:J200Long
by Timonrosso
Most difficult trading environment since 2011I've been trading since 2003. And if you're a position (swing trader , medium term) trader, you'll know there comes a time where the markets flow in a difficult range... There are two types of markets when it comes to strategies. Favourable and Unfavourable. Right now, I don't mean to speak for everyone else, but I believe the markets are in an unfavourable territory for medium term traders. Initially, I was blaming the JSE ALSI 40 (South African) index. I blamed the Load Shedding (cutting of electricity) Incompetency of the government providing sufficient water and services I blamed us being downgraded to grey (which has pushed out Foreign direct investments). I blamed the low liquidity and volume and the blame game kept going on... But then I realised something even more problematic. This horrible market environment has not only been for the JSE ALSI 40... It's been for the ASX (Australia), CAC40 (France), DAX (Germany) and even UK 100 (FTSE 100)... And I'm sure there are a lot more stock markets that have had this tight and ongoing range... So, what market environment are we in at the moment. It's not going up so it's not the Mark-up phase It's not going down so it's not the Mark-down phase We can either call it Accumulation or Distribution, but it's been moving in a sideways range for obver a year. So clearly we are in a larger market environment, which is known as the capitulation stage. The volumes are low worldwide, the prices are erratic and volatile. Many traders and investors are holding tight onto their money and not even dabbling into these markets at the moment. How long will this last? Well in 2011, it lasted two years. And right now, we are not seeing any strong signs of change yet... So what do we do? Well I don't have the holy grail nor some incredible points. But I can share what I'm doing during these timultuous times... 1. I've reduced my risk to 0.5% to 1% per trade (Instead of 2%). 2. I'm always hedging with Longs and Shorts 3. I'm trading other markets (Forex, Indices and intraday trades). 4. The drawdown isn't bad so I haven't halted trading 5. I've come to terms that this is the new normal for the next year or too. Expect disppointment and you'll never be disappointed. You learn a thing from Marvel Movies now and then... What are you doing and can you relate to these difficult trading conditions right now? What are your thoughts on the matter?
JSE:J200Long
by Timonrosso
PUT TO BED: Trading VS GamblingIt’s a big debate that runs the financial market. Is trading gambling? Well I’m going to try put it to bed in just a few sentences. There are two types of gambling. Gambling by chance and total randomness like slot machines, lotteries, Bingo, Wheel of Fortune and flipping coins. And strategic gambling which allows you elements of control of coming out with a probabilistic chance of winning. I believe trading is a form of strategic gambling. Let’s talk about the similarities between certain strategic gambling games and see how we can learn from them with trading. Game #1: Trading and Poker: Skill, Strategy, and a Bit of Luck In poker, each player gets a unique hand of cards. To win, players must devise a strategy based on their understanding of the game, their observation of their opponents, and their willingness to take risks. Players can choose to play, bet or fold. The same principles apply to trading. Traders have their ‘hand’ in the form of markets to choose to trade. To yield profit, they must understand market trends, observe competitors’ behaviours, and manage risks. In poker, one needs to know when to fold and when to bet aggressively. In trading we have stop losses to get us out of the trade. We have take profits to bank our wins. We have volume choices of how much to buy or sell. And we have the choice to stay out completely. Poker also teaches the importance of emotional control and patience, which are crucial in trading, where emotional decisions can lead to significant losses. Game #2: Trading and Roulette: Understanding Probabilities Roulette is largely a game of chance where players bet on numbers, colours, or sets of numbers. You choose whether you want to bet on red, black, even, odd, specific numbers and so on… Although the outcomes are random, players can use probability to guide their decisions. In trading, while certain market movements can’t be predicted with absolute certainty, we rely heavily on technical, fundamental, statistical analysis and probabilities to make trading decisions. Trading, much like roulette, is where you need to diversify your positions and bets. But instead of placing chips on certain numbers, we place deposits (margins) in the hopes of a probable outcome. Game #3: Trading and Blackjack: Playing Against the Market (House) Blackjack involves strategic decisions, where players decide to ‘hit’ or ‘stand’ based on their current hand and the dealer’s visible card. The main goal is to try and get the cards we’re dealt to hit 21, be close to 21 or be closer to 21 than our opponent’s hand. Bet too high past 21 and you burn. In trading, technical analysis serves a similar purpose by predicting future market movements based on past data. Bet too high with trading and you stand to lose a lot more. And if you can’t count with Black Jack, then you have a much bigger disadvantage to the game. If you don’t have strong and stringent money management principles, then good luck trying to maintain, preserve and protect your portfolio. Game #4: Trading and Horse Racing: Know your horse! Horse racing involves choosing the right horse based on its: Form Characteristics Conditions of the race Weather on the day and other factors. This is like trading. You need to understand each market you trade. It has its own personality, form, movements, and style. You also need to know which market is conducive for your trading portfolio. And you need to choose the right stock or asset to trade based on its performance history, current market conditions, and other factors. In horse racing, experienced bettors also diversify their bets across multiple races and horses to spread risk. With trading we diversify our portfolios over different accounts, markets, sectors, instruments and types. Game #5: Trading and Sports Betting: Predictive Analysis and Risk Sports betting also works similar to trading. You need to know how to analyse a team’s or player’s form, weather conditions, home and away records, and more to predict an outcome. Whether it’s football, rugby or cricket – you need to know your team players, strategy and likelihood of who is to win what game. Traders also conduct similar analyses, studying companies’ financial health, market trends, and technical indicators to predict market movements. And as always, there are both risks that need to be calculated and managed for high probability successful outcomes. So next time when someone tells you trading is just gambling. You tell them, they are right but it’s strategic gambling rather than gambling by chance.
TVC:SA40Education
by Timonrosso
The Mind of an Ego Trader – 10 ActionsWe always hear of the two most dangerous states of trading. Fear and greed. But I think there is one more state, that really drives a trader to financial collapse. EGO. Ego is thinking you’re always right where you ignore risk and caution. It’s the voice in your head that tells you to make risky choices because you believe you know better. To overcome being an ego trader, we need to go inside the mind of one. Let’s start… Ego traders overtrade One of the most common pitfalls of ego trading is overtrading. This is the act of buying and selling markets way more than you should. They believe that the more they trade, the more profits they will make. Solution: Adopt a well-defined trading strategy and stick to it. You need to know how and where to enter your trades with strict risk management. Remember, quality should always be prioritized over quantity. Ego traders like to revenge Trade Ego traders refuse to be wrong. They’ll take a trade in one direction, bank a loss. And then immediately get in again, but in the opposite direction – to make up for losses. Their goal is not to trade well but to recoup any losses ASAP. This behaviour is often driven by the ego’s inability to accept a loss. And this will drive them crazy until they blow a big portion of their account. Solution: Acceptance is key. Every trader is going to take losses. You need to take the loss (see it as the cost of trading), and come back the next day. Take a step back, analyse the situation objectively, and stick to your trading plan. Ego traders ignore risk management Egotistical traders think like this. “I want to grow rich quickly and refuse to only bank 3% to 4% of my portfolio per trade”. They instead risk 5%, 10% and sometimes go full port. They have this invincibility complex, that the more money they risk the more likely they’ll build their account quickly. But this is reckless and your portfolio won’t last long. This will often lead to disproportionate losses. Solution: I sound like a parrot by now. Always adhere to your risk management rules. Determine your risk tolerance, set risk-reward ratios for your trades, and never risk more than you’re willing to lose on a single trade. You know this! Dismiss Market Analysis Ego traders are emotional. They mainly trust their feelings, their jiminy cricket voices and their instincts over solid and proven market analysis. This will obviously lead to discretionary trading decisions, which will eventually lead them with no strategy, no discipline, no rules, and no portfolio. Solution: Become a trading machine. Think like a robot and always base your decisions on thorough market analysis. This includes both technical analysis (price trends, indicators, etc.) and fundamental analysis (economic, financial, and other qualitative and quantitative factors). Ego traders blame everything Ego traders often blame the market, their broker, their children, the media, or unexpected news for their losses. You need to grow up and take on the mature approach. Every financial decision and action you make, is solely your responsibility. Solution: Take responsibility for your actions. Understand that the market is unpredictable and losses are a part of trading. Don’t trade if you’re feeling distracted, Don’t trade if you’re feeling you’ll blame something or someone. Learn from your mistakes and learn to humble yourself before the market does. Ego trader are trend top and bottom pickers These are the guys that literally try to ‘predict’ bottoms or tops. They go against the current trend, and instead guess that the price will turn from here. They give you every reason why the market will turn. They know privy info that no one else does (even though all info is in the public domain). They know strategies and indicators that make these predictions (even though all indicators are based on past data). They see and feel out of their asses about change in trends. And when they’re wrong (which most times they are), they find every reason, news event and indicator to guess when the market will turn. This usually results in entering at a bad price and subsequently facing a huge loss. Solution: Leave the tops and bottoms. Seriously, ignore the first 10% of the bottom. Leave 10% of the top. Claim the 80% market move when the trend has confirmed and is showing strong momentum. Enjoy going with the trend not against it. Ego traders over leverage It confounds me that traders want more leverage. They show off about 20 times, 50 times up to 500 times. You know what that means right? You can lose 20, 50 or 500 times the money you put in. Leverage is a double-edged sword. You desire the big wins and only think of the big wins. When then you are wrong (and you will be), you end up losing a colossal amount. Solution: Use leverage responsibly. Lower the leverage, the better you can manage your risk and reward management. Ego traders disregard stop losses Stop losses are designed to limit a trader’s loss on a position. However, there are two types of ego traders. The ones that trade naked (without a stop loss) and the trade goes heavily against them where they lose their hat. Then there are the ones that put in their stop loss. But then they move their stop loss FURTHER away where they can risk more. Once this happens, they marry into their trade. And they’ll keep moving the stop loss away again and again and again and then BOOK. Gone. Solution: First rule – Always set a stop loss. Second rule – NEVER move your stop loss where you can risk more. Super important. Ego traders dismiss discipline They have major commitment issues. They choose their days and times. They trade now and then when they feel like it. And this dismisses the discipline of taking every trade, one needs to take to build a consistent portfolio. Solution: See trading as a business. See trading as a job. See your trading strategy as your boss. Work accordingly like your life and livelihood depends on it. Discipline is key in trading. Maintain your discipline and eventually it’ll turn into integration. Then you’re sorted. Ego traders fail to adapt The market is constantly changing. There are always new markets. There are always new platforms. There are always new brokers. There are always new innovations and features. And yet ego traders, stay put. You need to learn to adapt to market changes. You need to constantly update yourself as a trader, your strategy, your watchlist and stay with the times. With discipline, a clear plan, and a bit of humility, traders can better navigate the markets and improve their chances of success. Let’s sum up the Mind of an Ego trader so you know how to overcome it. Ego traders overtrade Ego traders like to revenge Trade Ego traders ignore risk management Dismiss Market Analysis Ego traders blame everything Ego trader are trend top and bottom pickers Ego traders over leverage Ego traders disregard stop losses Ego traders dismiss discipline Ego traders fail to adapt
TVC:SA40Education
by Timonrosso
20 Trading Checklist in 2024In just two months, we are coming to the end of 2023. If it's been a year of learning to trade and getting to grips with everything. Then I have a 20 Trading Checklist for you to kickstart 2024. Print it, save it and repeat this whenever you need a Jimney Cricket by your trading side. You go this! Love what you do Trust the process Never miss a trade Don't fall for scams Ask trading questions Don't allow distractions RE-evaluate your watchlist YOU CAN ONLY GET BETTER Celebrate taking each trade Never extend your stop loss Stop overthinking everything Save 15 minutes a day to trade Boost your trading knowledge Screenshot every trading setup Find the best time that suits you Only follow your trading signals Journal and jot down every trade Follow your own trading time-line Accept when market trends change Deposit money to trade every month Let me know if this helps. T
TVC:SA40Education
by Timonrosso
JSE ALSI fools us again - New target up to 74,748?Once again the imfamous Mr Market JSE has fooled us again... After the 1 year twilight zone of going no where, the price broke below and entered into a BEAR MARKET... However, it lasted literally 7 days before jumping right back into the range... It's not only broken above the downtrend line, the price is testing the support, which could form potentially a right shoulder... If this plays out, it will break above the neckline and will continue up to 74,748. I am heavily invested in longs and shorts. And the balance of finding what works in the market is a challenge but at least, we are not losing a lot of funds.... It's crucial to preserve and protect what you have during uncertainty and not to focus on making money but looking after what you have by means of diversification and hedging... This can last as long as it needs to. I'm bullish on the JSE right now.
JSE:J200Long
by Timonrosso
When You Should NOT Trade! 11 Reasons to Take a Step BackYou have two choices each day you open your trading platform. To trade or not to trade. There are circumstances that will rise where you won’t trade for that day. Then there are times where you should NOT trade at all. And then there are situations where you need to avoid trading. You know when to trade. Now here are a couple of 11 reasons to take a step back with trading. After a bunch of knocks After you take a couple of losses, it might feel natural to want to jump right back in. You don’t want to lose. You want to recoup your losses. You want to ride the prominent trend. You have to learn to resist this temptation. Whether you buy or sell, if the market is in a bad state or environment – you’re likely to lose your positions. So take a step back and come back tomorrow. The peril of revenge and impulse trading tendencies I’ve told you many times. Any occurrence where you are NOT following your proven strategy is deadly. Revenge and impulse trading (to try and make up for any losses) is a dangerous path. Not only for the day. But it scars and sets a precedent for you to do it in the future. In the medium term, it’s a surefire way to harm your portfolio. Learn to recognize and control these tendencies. Rather take a step back and come back, the next day, with a more rational and logical approach. The absence of clear setups If you don’t have any high probability trades that have lined up, forget trying to take a trade. This is like sailing with a destination in mind without a compass. Trades will come. The markets will always be there for you tomorrow. So wait them out… Emotional instability Emotions when trading are a dangerous trait to have. Anxiety, excitement, ego, fear, greed or distress can cloud your judgment. If you’re emotionally unstable, you need to take a step back and learn to control your emotions. Drop your risk, ‘till you no longer feel a loser or winner. Continue backtesting until you regain your confidence. Refrain from trading until you learn to balance your emotions. Can’t afford it – forget it! If the funds you’re using for trading are essential for your survival or well-being, this is a red flag. You are going to be highly dependent and emotionally attached to your funds. I say it over and over… Do not trade with money you can’t afford to lose. It creates an unhealthy pressure that can influence your trading decisions. Don’t know it – Don’t trade it. If you lack a solid understanding of markets, methods or money management – you’re not ready to trade. You need to understand the above along with the market dynamics, the costs and process of instruments and how your trading and charting platform works. Education is key here. Learn, learn, learn. When you have less questions and more answers, then it might be a better time to take the trade. Low probability setups When the market is moving nowhere slowly. Or the markets are moving wildly with high volatility – this might be a time to not trade. The risk and uncertainty of the market is high. And this will result in only low probability trade setups lining up. If you really want to trade them, because you have nothing better to do – fine. But at least risk LESS. Risk between 0.5% to 1% of your portfolio instead of the full 2%. When exhausted, ill or mentally unstable Physical well-being also plays an important role. Your mental state affects your trading performance. If you’re not in the right mindset, consider taking a break. Avoid trading if you’re not feeling well, exhausted, angry, or you’re feeling unstable. Get your mind right, recover and see the markets with healthier and happier eyes. That made sense to me :/ No clear setup Sometimes, you might analyse the markets. And you’ll see nothing. Then, you’ll re-analyse and look EXTRA carefully. You’ll look and look and look until, somehow a trade presents itself. I’m telling you now, this is a dangerous time to take the trade. A trade should stick out like a sore thumb (according to your strategy). If it doesn’t, then you’re trying to see something that most likely is NOT There. Trade based on sound, proven and strong analyses, not via imagination and hope. During major economic announcements This point is more related and significant to Forex traders. If you see a high impact economic announcement, report, meeting etc… It might be a good idea to take a step back, and skip trading for the day. I’m talking about NFP, Unemployment, GDP, FOMC, Interest and Inflation rates etc… Without a trading plan A well-crafted trading plan is your roadmap. It’s your game-plan to make a probability prediction on a potential outcome. You need to eat, breath, shower and sleep with your trading strategy. If you don’t have one, don’t trade until you develop a plan and are ready to stick to it. Right so, now you now when to take a step back and NOT trade. I’ll sum them up here for you… After a bunch of knocks The peril of revenge and impulse trading tendencies The absence of clear setups Emotional instability Can’t afford it – forget it! Don’t know it – Don’t trade it. Low probability setups When exhausted, ill or mentally unstable No clear setup During major economic announcements Without a trading plan
JSE:J200Education
by Timonrosso
21
The World is your Trading Oyster! Trade it!The world is your trading oyster Any market with a ton of volume, is going to move in one of three ways. Up, down or sideways. Stocks, indices, Forex, commodities or crypto currencies, They all move the same, they all act the same. We need to remember to diversify different markets into our trading. When some are in bad market envrionments, others will be in good trading conditions to help balance and hedge the portfolios... Be open to the markets available and do your research to see which will comply and will be compatible with your strategies.
JSE:J200Education
by Timonrosso
1
Bla Bla Bla Excuses to NOT trade Bla Bla BlaWhat is your biggest trading excuse? 1. Not enough money - Then paper trade! 2. Not enough time - 15 Minutes is enough 3. Not enough education - Learn it's FREE 4. Not the right time - It IS the right time 5. Not the best market environment - Let's get into them... #1: I don’t have enough money to trade Open an account and start demo-trading then! TradingView gives you everything you need. Start back testing and kick off your trading on the right note. #2: I don’t have any time to trade Seriously? Do you have time to watch Netflix? Do you have time to walk your dog for 15 minutes? Do you have time to read a book? If so… You have time to analyse for 5 minutes, 2 minutes to place a trade signals and then leave it up for the market. 15 minutes a day or at worse, 15 minutes a week – that’s all you need. #3: I don’t know how to trade What do you think TradingView tutorials are here for? #4: I’m waiting for the right time This is the biggest excuse for people to take action in life. Not just with trading. With a new hobby, with opening a business, with learning to cook… You’re not waiting for the right time, because the only time is NOW. You’re just afraid of failing and too scared to start. Prove me wrong… #5: The world and the markets are in a bad state Hello! With trading, we don’t care whether the markets move up or down. If it goes up we profit. If it goes down we profit… That’s the whole point of trading. Or else I would just do the passive income (which I don’t believe exists) approach and just buy and hold forever in hope. #6: I don’t know what to trade Why choose? A chart is a chart. Any market with a ton of volume, is going to move in one of three ways. Up, down or sideways. Stocks, indices, forex, commodities or crypto currencies. They all move the same, they all act the same. So, diversify your trading and trade all high volume traded markets. #7: Trading is complicated Everything seems complicated in the beginning. But as you repeat the process on a daily basis, it gets easier… This isn’t programming, you don’t need to know maths or science. All you need to know is where to type in your prices. Market Buy Or Sell Volume (CFDs) Entry (Where to get in) Stop loss (Where to place your risk level) Take profit (Where to place your reward level) Trade (Enter) The rest, we show you via videos or in the Premium membership step by step processes EACH TIME. Say less, do more… If this motivation helped give the kick you need, let me know by replying back. What is your excuse?
JSE:J200Education
by Timonrosso
3 Dangerous States of a Trader“To err is human” It comes from Alexander Pope’s poem, “An Essay on Criticism.” This popular saying reminds us that making mistakes and feeling emotions are a common part of the human experience. In the high-stakes arena of financial trading, most people run their trading through three main emotional states. You might not be able to eradicate them completely but we can learn to keep them in check for superior trading performance. Let’s go through these three powerful states. State #1: Fear in Trading Fear is the emotional state that: Stops traders from actioning trades. Letting losses run (as they refuse to take a loss) Cutting winners too short (as they don’t want to lose their profits) When fear dominates, traders may freeze, act too soon, act too late or not act at all. How to Overcome Fear in Trading A well-structured trading plan is a trader’s best defense against fear. You need to think like the market. You need to trade like the market. You need to remove fear from your actions. That’s why you need to limit your risks per trade, where the loss does not affect you emotionally. You need to be strict with your trading plan, to avoid any discretionary and impulse trading decisions. And it’s important to start thinking with a more mechanical and rational approach rather than fear-driven ones. Practice mindfulness and stress management techniques can also keep your fear under control. State #2: Greed in Trading Greed drives traders to chase profits. This often compels them to take on excessive risk for the chance at bigger returns. They either increase their risk per trade, knowing that the reward will be bigger. Or because they want more, they will hold onto positions for too long. Having greed overtake the mind, will also result in overtrading and using up too much of their portfolios per position. How to Keep Greed at Bay in Trading Understand that trading is a long-term game. Consistency with small gains will build up a portfolio. Be content with 3% – 4% winners. Keep to this and greed will fall away and you’ll have a better chance of longevity when trading. State #3: Ego in Trading Ego is one state I never see anyone talk about. All you hear is fear and greed and greed and fear. But EGO. Ego is probably the most stubborn enemy. “Ego gets you inches but it doesn’t get you impact.” – Cameron Sinclair It convinces traders that they’re right, even when the market says otherwise. An inflated ego can lead to overconfidence, over trading, revenge trading and it can cause traders to disregard their strategy, risk and they’ll end up making irrational and dangerous trading decisions. How to Check Ego in Trading Even the most successful traders suffer losses. So you need to humble yourself and adopt amore mindful approach to realistic trading. Each small loss is a contribution and a trading cost to one step to success. You’ll also learn more from your losses than your gains. Which will give you an opportunity to learn and improve. So go back to your trading journal and review, monitor and analyse the true essence of what it takes to build your portfolio. This will help keep your ego in check. Conclusion Fear, greed, and ego are integral parts of the human experience. But there is NO need and use for it to succeed as a trader. When you learn to recognise these states and, you’ll be able to manage them better. And this will drastically improve your trading performance. Remember, successful trading is less about conquering the market and more about mastering your emotions.
JSE:J200Education
by Timonrosso
10 Black Swan Events that Shook the marketsBlack Swans are highly unpredictable events that go beyond what is usually expected of a situation. One definition I like is this. A Black Swan is where an event can cause the market to move 10 standard deviations away from the norm. When this happens they could potentially have severe and wide-reaching consequences. You’ll see the market will jump erratically and even cause a halt in trading activity completely. So when you spot a Black Swan. Just take it easy from trading the markets that can be affected. Here are 10 Black Swan Events that I can think of that had an impact on the markets. 2008 Global Financial Crisis Triggered by the collapse of the US housing market, it led to a worldwide banking crisis and severe global economic downturn. COVID-19 Pandemic An unprecedented global health crisis that had significant repercussions on global economies and markets in 2020. Dotcom Bubble Burst (2000) The dramatic rise (due to greed and optimism) and fall (due to fear and panic) of internet companies in the late 1990s led to a severe market correction. Brexit (2016) Britain’s unexpected decision to leave the EU had immediate impacts on global markets. Japanese Asset Price Bubble Burst (1992) This led to a lost decade of economic stagnation in Japan. (Have you seen the Nikkei! And can you imagine holding stocks from 1992?) Swiss Franc Unpegging (2015) The Swiss National Bank’s sudden decision to remove the cap on the Franc’s value against the Euro led to extreme currency volatility. (Forex trading was a nightmare seeing some prices drop hundreds of pips). September 11 Attacks (2001) The terrorist attacks had immediate and long-term effects on global economies and markets. (I was too young to worry so I missed this one.) Fukushima Nuclear Disaster (2011) Triggered by a massive earthquake and tsunami, it had significant impacts on global energy markets. (I remember holding oil stocks while driving. And I came home to R120,000 loss). Flash Crash (2010) The US stock market crash, triggered by a high-frequency trading algorithm, sent a financial shockwave around the world. (Fat fingers caused by unknown factors). Oil Price Negative (2020) For the first time in history, the price of US oil turned negative due to low demand during the COVID-19 pandemic. Which Black Swan event affected you the most?
JSE:J200Education
by Timonrosso