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BID AND ASK BASICS📚 🔴In all markets, there is a price at which a market participant is willing to buy an asset and a price that suits the seller. At the same time, traders intend to carry out a purchase and sale transaction only within the amount that is profitable for them. ⚠️In the foreign exchange market, the ask line is the cost of buying an asset or the price that is set by the broker in the Buy order. ⚠️Bid - accordingly, the cost at which the broker opens a sell order when accepting an application for the sale of currency from a trader. ❗️The spread is the difference between ask and bid prices. To be more precise, the spread is the difference between the best bid and ask offers for a specific asset over a certain period. Thus, the spread is dynamic, changing over time. The spread value is formed by the initial value set by the broker, as well as due to the volatility of the currency. The spread can vary from 0.1 to 100 points. ✅In the market of physical goods, a similar example can be given: a seller and a buyer, haggling, narrow the difference between prices that satisfy them, bringing them to one at which they make a deal. ✅In the foreign exchange market, the spread between prices is the commission charged by the broker. It should be borne in mind that the broker takes a commission regardless of the volume of the transaction and its result. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by UnitedSignals
6
SUNPHARMA (Trade the Trend) - BullishSUNPHARMA - Sun Pharmaceutical Industries Ltd. NSE:SUNPHARMA After Q4 Results we saw a good sell-off in Sunpharma, yet the price hardly moved much Shanghvi stated "Our India business continues to grow faster than the market, leading to an increase in market share. We continue to focus on expanding our global specialty business, growing all our businesses, and improving operational efficiencies," stated. The company said its board has proposed a final dividend of Rs 3 per share for FY22. One can plan a long position between 835 to 840 with a strict SL of Rs 825 for short term trading (01 to 02 weeks) and SL if the price moves below 825 (Daily candle close) for long term swing trading (greater than 2 weeks) Short Term targets are up to - 886 Long Term Target is up to - 929 Risk Reward for this trade is very good #Learn&earn #Wealth #Editor's Choice #trending #Weathmagnet candlestick analysis, candlestick stock pattern Do Support by Liking and Commenting on our Post as it motivates us to post more such ideas The chart is for study purposes only!! Kindly consult your Financial Advisor before investing any money
NSE:SUNPHARMALong
by harshnisar45
5
4 Rules every successful trader should follow📈😎1. Trade according to the system. 2. Keep statistics. 3. Have strict risk management. 4. Adapt to the market. Trade according to the system When you trade without a system, it's gambling. Usually, when you ask a beginner why he has opened a position, he uncertainly begins to refer to the fact that someone gave him a signal, or that he thinks it's time for the coin to go in his direction. Trading is a job in which discipline is rewarded. That is why every trader has his own trading system, which he follows in every trade. It's like with the road rules, you can drive car without knowing them, but then you are almost guaranteed to get into an accident. Keep statistics Professional athletes constantly watch recordings of their performances and practice all the movements in front of a mirror, paying attention to every detail. It is vital to get better. For a trader, statistics is a riddle that helps him learn from his mistakes. You should write comments on each trade, filter them by reason of entry or closure, track the average risk, average profit, percentage of successful trades and analyze each trade in detail on a tradingview chart. Have strict risk management Sometimes the market goes against you and you feel the full range of emotions – hope, anger, disappointment, despair. On such days, you will lose all your money if you do not have clear rules. Set yourself a clear limit – no more than 3% of the deposit lost per day. For example, you have a deposit of $1000. You can't lose more than $30 a day. In this way, you no longer risk falling victim to a spiral of negative emotions, you will begin to be more responsible in the trades you open, and you will be able to create financial stability. Adapt to the market Institutional players are always coming up with new ways to entice young players to invest in their coins, and technicians are developing increasingly sophisticated robots. That is why our responsibility as traders is to develop faster than them and to not stand still. To do this, you need to monitor the market and watch which setups work best and which end up as traps. An obvious example: during a bull market, breakouts work upwards, and downward breakouts are usually false. The same is true for the bear market – downward breakouts are cool, upward breakouts are deception. In addition, you need to experiment with your trading algorithm and identify its weaknesses. Add new rules, test them, evaluate the difference. Follow these rules and I guarantee that you will earn much more from trading, and the process itself will give you more pleasure than ever. Good luck with your trades and see you in the DOM ✌️
Education
by Artem_Dishel
1
5 MUST READ TRADING BOOKS 📚 Hey traders, You frequently ask me to share a list of trading books that I personally recommend. In this post, I gathered 5 books every trader must-read. Please, note that in that list I included the books that changed my perception of trading. Most of them focus on the psychological aspects of trading and do not teach any particular trading strategy. 📕Trading in The Zone by Mark Douglas. Douglas uncovers the main fallacies of newbie traders. He focuses on the psychological aspect of trading and its tremendous role in this game. Relying on studies of the human psyche the author teaches readers to beat the ingrained mental habits. 📔The Black Swan by Nassim N. Taleb. Even though that book is not about trading, it uncovers the aspect of probabilities in life and our perception of them. Especially, Taleb focuses on very rare and extremely low probability events that humans frequently neglect in their predictions and the impact of their occurrence in our lives. 📘The Disciplined Trader by Mark Douglas. One more book from Douglas. This paper describes the mindset of a successful trader, useful habits and traits. It is looking for reasons why most of the traders fail. The author teaches how to properly react to losing and winning trades and changing market conditions. 📙Market Wizards: Interviews with Top Traders by Jack D. Schwager. Best traders of the entire world share useful insights of trading. Top experts in the industry talk about their journey, about their path to success and share their valuable experience. 📗Trend Following by Michael W. Covel Trend is our friend. That is the axiom no one doubts. The only problem is that it is not that simple to follow the trend. In this book, Covel describes a profitable and efficient trend-following trading strategy adopt. Of course, reading these 5 books does not guarantee that you will become a consistently profitable trader but I consider them to be very impactful. I always said that a proper mindset is one of the most important things in trading and these books will help you to build it. Did you read these books? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
6
COMPOUND INTEREST | Time is on your side📚 ❗️As it turned out, not all traders are familiar with such an important concept as compound interest. Meanwhile, the use of compound interest in trading can be a very effective tool for making a profit. In short, compound interest is the accrual of interest on interest, and if in detail, then read on. ✅The formula for calculating compound interest has the form: Compound percentage = (P (1 + g)^ n) – P, where P – the amount originally invested; r – interest rate; n is the investment period. Let's say you invested an amount of $ 10,000, every year the interest received is added to the principal amount, and new interest is accrued for a larger amount. If the investment period is 5 years, and the interest rate is 10% per annum , then after the specified period, taking into account the compound interest, you will receive a profit in the amount of: (10000(1+0.10)^5)-10000=6105.1$ And without taking into account the compound interest, the profit for the same period will be: 1000050,10-10000=5000$ As you can see, using compound interest (or in other words reinvesting profits) brought additional income in the amount of: 6105.1-5000 = 1105.1 $. ✅It seems that the figures presented above are not impressive, but the use of compound interest in trading can truly work wonders. In what way? Let's take another look at the compound interest formula described above. It is obvious from the formula that you can increase profit by increasing any of its components. Let's not touch the amount originally invested, but play with the value of the investment period and the interest rate. To begin with, let's imagine that we will reinvest the profit not every year, but every month. Then the investment period will be 12 5 = 60 months. The interest rate corresponding to this investment period will be equal to: 10%/12=0.833%. Let's substitute these values into the formula for calculating the compound percentage: (10000(1+0.00833)^60)-10000=6449,8$ As you can see, under the same conditions, but with monthly reinvestment of profits, the income will already be $ 6449.8- $6105.1 =$344.7 more. Well, if the trader's income is not 0.833% per month, but, for example, 5% monthly, then under the same conditions and for the same period, the profit will already be: (10000(1+0. 05 )^60)-10000=176791,86$ Felt the difference, impressive, isn't it? And what if you reinvest profits not monthly, but daily? Let's figure it out. With an average yield of 5% per month, the average daily yield will be 5%/21= 0.238% (here 21 is the number of working days in a month). The investment period will be 5360=1800 days. Let's substitute the data into the compound interest formula: (10000(1+0.00238)^1800)-10000=711617,5$ This is already 711617.5-176791.86 = 534826 $ more than with monthly reinvestment of profits. More than half a million dollars (and this with an initial investment of only ten thousand)! That's impressive. That's what compound interest is in action. ⚠️This is about theory. In practice, it is impossible to achieve a constant percentage of profit every day. Some days a trader inevitably ends up with a loss, some with a profit, and the size of these losses and profits is always different. So it is unlikely to substitute the value of the percentage of profit per day in the above formula. However, the very essence of compound interest, clearly shown above in figures, gives the trader a fairly powerful tool for earning. A trader can and should use compound interest when creating his own money management system. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by UnitedSignals
6
How to not loose your life savings? Risk management☠️You've probably heard statistic that 90% of traders lose their deposit in the first 3 months. Sometimes it's pocket money, sometimes salary, and sometimes life savings. Once I saw a message in a traders group from a frustrated 55 year old man who had lost all of his savings of the last 20 years of working as a security guard in a supermarket just in ONE MONTH by trading crypto. There are plenty of stories like that, and I give you my word that most of them happen due to a lack of risk management . What is risk management? Risk management is the collection of rules that prevent you from losing substantial part of the deposit in a single day or week. Where there are no rules, there is chaos; where there are rules, there is order. When a trader has no rules, he's just gambling. That's what happens to most beginners - they hear that there's some cool coin worth buying, and in a month they'll be driving a Lambo and moving to a mansion on the Côte d'Azur. Such a newcomer may indeed be lucky at first, and he will attract dozens of other hodlers with his success, but there is a problem with such a strategy: Math There is never a 100% guarantee that any asset will grow; there is always a chance of failure. Question for you: if there is a 10% chance of losing, is it worth risking your entire deposit to double it with a 90% chance? In a vacuum Yes, but let's imagine that the same opportunity happens again. Would you take that risk? What about the next one? This is how we come to the rake that almost all beginners step on. Even if the chance of losing money is negligible, repeat this situation over and over again and you will once fail 100%. Go to Reddit WallStreetBets and you can easily find dozens of stories of people who were lucky in the beginning when they only had $20,000, and then they lost everything they gained in one day (sometimes it was millions of dollars). Even the smartest person gets dizzy from a huge sum, and without strict rules such a person will 100% lose his deposit in trading. What happens after a trader loses his deposit? In such a situation a trader experiences the “ 7 stages of accepting death ”. Let's take the example of, say, Joe (name changed). Joe got interested in crypto a month ago when his brother told him at a family dinner that he managed to buy himself a new car with bitcoin profits. He told Joe how to sign up for an exchange and helped him make his first deposit of $1,000. A month later Joe figured out how to open positions on Binance and learned how to use free trading ideas from TradingView. With their help he managed to double in the first week by buying a coin in the game and, believing in himself, he decided to play big, pouring the $10000 of family's savings into his account, of course, in secret from his wife. 1-2. Shock and Denial. Joe gets up in the morning, and, as usual, first thing in the morning he takes out his phone and checks his portfolio on Binance. It turns out that overnight his main asset, Luna, collapsed from $80 to $5. He has lost half of his deposit, but decides it's no big deal and it's a great opportunity to average out his position. He quickly decides to borrow money from relatives, promising to pay it all back in a week. After all, if the price goes back up, he'll be a millionaire. 3-4. Disappointment and Depression. All day long Joe stares at the screen and watches the price, but it is not going up. Moreover, it plunges and is already trading at $1 apiece. Toward evening, the veil finally falls from his eyes, and he begins to understand the reality of the situation: - His and his friends' life savings are lost. - Undermined trust of relatives. - An almost guaranteed divorce after the woman learns about the lost funds. - Years of work down the drain. He cannot help but cry under the weight of the real facts, though he has not done so for years. A woman leaves him, taking his children with her. His parents and friends stop communicating with him. He is left alone, without any support and with huge debts behind his back. 5-7. Experiment, solution, acceptance. Weeks, perhaps months, pass. Joe gets used to his new life. He made a mistake, paid for it, and will be paying for it for years to come. He realizes he has no choice, so he just accepts reality. All he can do now is learn from his mistakes and not make them in the future. What proper risk management looks like: Ten years later, Joe has paid off all his debts and is much wiser, as evidenced by his decision to take professional training in trading before doing it again. There he learns what risk management is and lays out his plan: - Risk per trade is 1%. You have to misjudge 100 trading situations in a row to lose your deposit, which is almost impossible. - The minimum ratio of risk to profit is 1:3. This means that every time he is right, he earns 3% to the deposit, and it is enough for him to be right in only one out of three cases, to be at breakeven. - You cannot lose more than 3% in a day. It forces you to choose trades more responsibly and levels out the possibility of tilt, having lost money due to emotionalism. - You must not lose more than 9% in a week. If the market is not going your way for a couple of days in a row, then the problem is with you and your inability to adapt. It's better to take a break and come back later with a fresh perspective. With this approach, Joe trades responsibly and learns from his mistakes effectively. In a couple of months he becomes a profitable trader and celebrates his first victories. Subsequently, he will become a successful trader and someday teach someone else the miracle of risk management 😉
Education
by Artem_Dishel
4
PRICE ACTION TRADING | THREE TYPES OF TRIANGLES YOU MUST KNOW 📐 Hey traders, In this post, we will discuss 3 simple and profitable types of a triangle pattern. 1️⃣The first type of triangle is called a descending triangle. It is a reversal price action pattern that quite accurately indicates the exhaustion of a bullish trend. Setting a new higher high the market retraces and sets a higher low, then bulls start pushing again but are not able to retest a current high and instead the price sets a lower high and drops to the level of the last higher low setting an equal low. The price keeps trading in such a manner setting lower highs and equal lows till the price sets a new lower low. Most of the time it gives a very accurate signal of a coming bearish move. Please, note that a triangle formation by itself does not give an accurate short signal. The trigger that you should wait for is a formation of a new lower low. 2️⃣The second type of triangle is called a symmetrical triangle. It is a classic indecision pattern. It can be formed in a bullish, bearish trend, or sideways market. The price action starts contracting within a narrowing range setting lower highs and higher lows. Based on them, two trend lines can be drawn. Breakout of one of the trend lines with a quite high probability indicates a future direction of the market. 3️⃣The third type of triangle is called an ascending triangle. It is a reversal price action pattern that quite accurately indicates the exhaustion of a bearish trend. Setting a new lower low the market retraces and sets a lower high, then bears start pushing again but are not able to retest a current low and instead the price sets a higher low and bounces to the level of the last lower high setting an equal high. The price keeps trading in such a manner setting higher lows and equal highs till the price sets a new higher high. Most of the time it gives a very accurate signal of a coming bullish move. 📍Please, note that a triangle formation by itself does not give an accurate long signal. The trigger that you should wait for is a formation of a new higher high. Learn to recognize such triangles and you will see how accurate they are. Let me know what pattern do you want to learn in the next post? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
4
4 H chart ETH/USDT Binance Deep analysis of the past. I have missed good entries because I have not checked ETH for a long time. Actually, I have not traded on the low time frame for a while, but it is time to return and synchronise myself with the market. I always use two types of charts simultaneously: Japanese Candlesticks and Lines. I think that a line chart shows you the truth and the accurate past price. 1) The price is under 100 EMA and MA, and that means we are in the downtrend on ETH - rule number one Do Not Trade Against Trend . 2) Between EMA and MA, we have a nice area of opportunities for the opening position. 3) The red line is a strong resistance level - rule number two Support and Resistance levels are your best friend . p.s. The more times a price touches those levels, the more value they have. 4) RSI and MACD indicators show classic divergency - rule number three Indicators are the tools that help to measure the market's pulse, temperature, blood pressure, etc., like in the living organism . 5) EFI and Elder Impulse show where the price acceleration loses strength. 6) Bollinger Bands shows where price could change or continue its direction - only take signals in the order of the overall trend . 7) Candlestick wick is the battlefield between bulls and bears. It is not just a signal of rejection; it can actually foreshadow a breakout, too - rule number four Analyse wicks on the lower time frames to get more information . Always Do your own research May the profit be with you!
by PaulSnow
2
Three pillars of trading success 📈💲It's time for my mid week educational post. Today I want to talk about the three pillars needed by all traders for success in the markets. This isn't just the forex market either this applies to trading all financial markets. Be it forex, crypto or stocks, so lets get into the the three pillars of success. PILLAR NUMER ONE- STRATEGY You MUST have an edge before entering the markets. When will you enter the market? When will you close? What % per trade will you risk? What pairs will you trade? What timeframes will you trade? If you don't have any answers to the above you are entering the markets blind and it will end in tears. In trading, edge is your ability to select trades that perform better than random. You can think of edge as the process used to generate and execute entry and exit signals. Do not enter the markets until you are working a strategy with a proven edge. The stronger your edge, the more profitable you’ll be. PILLAR NUMBER TWO- RISK MANAGEMENT We can't avoid the white elephant in the room on average 80% of trader lose money or fail in the markets. Some say its even more and you will become one of the stats if risk management isn't applied to your trading. Some of the reasons losses like these exist in trading is down to the fact that aspiring traders don’t put any thought into their risk management tolerance. We only ever see the upside when we start out and many never do anything to protect themselves from potential losses. If you never made any money as a trader before or entered the markets before ask yourself the question below before starting out. How much money am I comfortable losing? Your first priority with trading is to stay in the game So manage your risk per trade and total risk at anyone time. Understand probability and ensure you are comfortable with your maximum exposure at any one time. Understand the maximal draw down in your testing when finding your edge. That way it will help you see what a potential losing run you could experience. PILLAR NUMBER THREE- TRADING PSYCHOLOGY We need good trading psychology to keep a balanced mind whilst trading, this stops your emotions leading the trade. The trade outcome cannot be controlled and you MUST detah yourself from each trade outcome. You will know when your trading emotions are nailed on when you do not 'FEEL ' anything when trading. If you have 'emtions' with your trades or when trading simply reduce your risk further. Two emotions that need particular attention are GREED and FEAR. You need discipline in controlling these two emotions or you are going to end up making losses as a trader. We all been there we make a few profits confidence kicks in and then greed before you know it your in whole world of pain. We all be there at some point with fear to and not executing trades due to a fear being in our trading game say from a poor run of form. Emotions will always be there we are emotional beings, but they will need controlling in order for you to be a successful trader. Practice developing the emotional control needed to trade successfully. FINAL THOUHGHTS Trading requires 100% commitment most see it as a hobby to start with but this can be costly hobby if commitment to trading is lacking. The sole reason most get into trading is to make money. One purpose of a business is to make money. Treat trading as a business at the end of the day it's your personal money that's on the line. Every trader needs to have a disciplined approach to the markets. Following these three steps will help you. In order to be a successful trader and run a profitable account, it is essential that you have these three pillars in your trading. Thanks for taking the time to read my idea. Darren 👍
Education
by pow_removetheguesswork
1
I’m not optimistic for the cable…I do not think the cable can hold its position for much longer. I’m expecting a lot of choppiness whilst the cost of living crunch is in focus and inflation is such a focal point. With an expected “EU Law Bonfire” and the Northern Ireland debacle, I don’t see any positivity anytime soon. I appreciate you reading and please, help me increase my reputation so I can talk with you all. This is an incredibly messy chart that has some merit, but a clean chart is always preferable. The candles always speak louder than any indicator.
by Letsskim
2
4️⃣ Trading habits that have to go 👋We've all done it. At some point in your trading journeys bad habits set in. Here is my four trading habits you've got to kick in order to stay profitable. 1. Overtrading We all been there with this one. We think we have to be in the market all the time. We don't and its okay to be flat at times. No strategy should have excessive trade volume. More time in the markets the more chance of catching a cold. Overtrading can happen when we also start revenge trading. You've caught some losses and your trying to get it all back. Don't overtrading combined with revenge trading is a no no. Take a break. Trading with no strategy or system Should never be in the markets with out a plan or system. More importantly no trader should be entering markets with out a proven edge. Back test and forward test your strategy and make sure you are entering markets with a proven plan. Psychology wise it makes trading so much easier to deal with. No plan will lead to nothing but stress and losses. No stop loss Trading with no stop loss is biggest sin of all. It's just not worth risking huge amounts of your trading capital on the line. One big crazy move in this uncertain world could do damage. Plus how can you develop a proven plan if stop loss is not included. Also moving your stop loss should not be part of your trading. As you've just altered any strategy being trading into the unknown category. No risk management So I've mentioned stop loss but that is only one element of risk management and it doesn't stop there. Risk management includes many aspects you'll need to consider. That includes position sizing relative to your capital size. The psychology behind losing runs and how they are factored into your trading plan. Work to set and proven trading rules as part of your risk management. Be sure not to add to losing positions. Know when you are wrong and move on to the next. Failure to follow risk management means you will essentially be gambling. Be realistic in expected returns is a big factor in risk management. Sticking to all of the above and not allowing these habits to enter your trading will ensure you keep that trading account growing. Thanks for taking the time to read my idea. Darren 👍
Education
by pow_removetheguesswork
1
Candlestick Action | How Candles Are Formed🕯 ❗️Japanese candlesticks as a technical analysis tool were invented earlier than others, but they were not widely used immediately. By the name, it is easy to guess that Japan became the "homeland": local rice traders used this method already in the 18th century. However, due to the geographical remoteness and closeness of the country from external "visitors", this type of chart gained popularity much later, when exchange life was already actively boiling in Europe and the USA. ✅What is hidden behind the candlestick chart? 🟢A candle is formed from 4 prices: opening, closing, high and low for a certain period of time. If we take a timeframe of a minute, then each candle will indicate the price movement within this minute, if an hour is inside an hour, if a day is inside a day. The distance between the opening and closing price is the "body" of the candle, and the tails show to what lows and highs the price reached. If the opening price was higher than the closing price, then the candle will be black; and vice versa: if the opening price is lower than the closing price, then the candle will be white. It turns out that candles are, in fact, the psychology of the market, they most accurately reflect the fears and hopes of its participants. 🟢The charts of Japanese candlesticks themselves are valuable for analysis: the resulting models are interpreted as models of reversal or continuation of the trend. It is also important to understand: each individual candle or a combination of candles is just a way of depicting the actions and moods of all bidders for the period we have chosen (day/week/ month, etc.). The fact is that human behavior is quite formulaic in the same situations, and that is why various methods of chart analysis are so popular with investors and traders. 🟢Looking at only one or several candlesticks, a "savvy" viewer can easily understand whether the market is set to rise or fall, change the current trend or its continuation, increase the momentum of movement or its attenuation. ⚠️It is important to understand that the behavior of individual bidders develops into a general market movement, which can be "read" using charts of Japanese candlesticks and their basic models. Therefore, your optimal investment decisions will be supported by the most effective moments of entry or exit from the position, which will significantly improve the financial result. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by UnitedSignals
15
BankNifty Intraday Trade Setup for 17th May 22The market is likely to go sideways in the First half today, Not Expecting any Big moves The Red Zone is the supply Zone and the Green Zone is the Demand Zone, I plan to buy in the Demand Zone (But not sure), so be active on this post to see my live positions and Trades Do Support by Liking and Commenting on our Post as it motivates us to post more such ideas The chart is for study purposes only!! NSE:BANKNIFTY NSE:BANKNIFTY1! . . . bank nifty option trading strategy NIFTY TRADING STRATEGY, intraday, intraday strategy, simple intraday strategy, Share Trading Strategies, BANK NIFTY TRADING STRATEGIES, bank nifty today, nifty prediction today, volume profile in Hindi, trading with volume profile, intraday, mcx , crude oil , crude, crude oil trading tricks, open interest analysis, options trading, options trading strategies, Emotion in Investing, markets scientist, candlestick pattern, candlestick , candlestick analysis, candlestick stock pattern, trusted spots, cool brains, learn and earn, trending, profits How to find stocks for intraday, how to buy and sell in Zerodha kite, Zerodha trading tutorial in Hindi, bracket order, daily income plan, emotions, Unsuccessful Investor, share trading course, share market course. day trading, best strategy on intraday trading, Candlestick types, Candle types, Candlestick analysis in Hindi, Candlestick Body, Japanese Candlestick , Rakesh Jhunjhunwala, share market, stock market for beginners tutorial, how to enter the stock market for beginners, stock market guide, Share market basics for beginners
NSE:BANKNIFTY
by harshnisar45
The Rule of 72 😃📈Time for a educational post from me. At some point as traders we have all had the thought of how long will it take to double my account. The rule of 72 is the easiest way to work that one out. The rule of 72 is a handy mathematical rule that helps in estimating approximately how many years it will take for an investment to double in value at a specified rate of return. Rule of 72: If 72 is divided by an interest rate, the result is the approximate number of years needed to double the investment. For example, at a 1% rate of return, an investment will double in approximately 72 years; at a 10% rate of return it will take 7.2 years. But the example above is based on a 10% return per year. We as traders have the chance if our strategy is consistent and profitable to return good percentages on capital in a matter of weeks. Time for more examples. Some traders can return 6% a month So 72/6 = 12 months to double the invested capital in your account. Lets say a trader returns 4% month on month 72/4 = 18 months to double your investment. The rule of 72 servers two purposes to us as traders. 1. I personally feel it helps to keep us grounded as traders. To many enter this game thinking they will flip 1000 into 10000 in a matter of weeks A 4% return per month is a good return and from the equation above it would take 18 months to turn 1000 into 2000! So I would like to think the rule of 72 acts as reminder of the challenges we face when it comes to expectations. 2. Having said the above the rule of 72 also serves as a reminder that as traders who do or potentially can go on and achieve consistent profits especially monthly we can make way more returns than what a instructional bank or establishment would offer to you as an investor. The rule of 72 then becomes an inspiration to take control of your own money game and aim for growth that no one else can offer you. Thanks for taking time to look at my idea. Darren 👍
Education
by pow_removetheguesswork
Morning Star Pattern: how to trade?🌟 ❗️The Morning Star pattern is a market reversal pattern consisting of three candlesticks that indicate bullish superiority. This pattern warns us about the weakness of the ongoing downtrend, which, in turn, suggests the beginning of an uptrend. ⚠️Traders observe the formation of the "Morning Star" pattern on the price chart, and then confirm with the help of other technical tools on the Forex currency market. ✅Morning Star pattern: Three forming candles ⏺Big Bearish Candle ⏺A small bullish or bearish candle ⏺Big Bullish Candle The most important thing to remember is always that the market must be in a downtrend in order to trade according to the "Morning Star" pattern. In order to confirm the downtrend, mark the lowest lows and the lowest highs. 1️⃣The big bearish candle is the first part of the Morning Star reversal pattern. This candle indicates that the bears are in full control of the market, which means that sellers continue to pressure the market. At the moment, you should only look for sale deals, since there are no signs of a reversal yet. Here the Morning Star pattern is just beginning its formation. 2️⃣A small bullish/bearish candle is the second candle that starts with a bearish gap down. This candle indicates that sellers are unable to lower the price, despite very great efforts. The price action ends with the formation of a rather small bullish/bearish candle (Doji candle). If this candle is bullish, then we have an early sign of a trend reversal. 3️⃣A large bullish candle is the third candle that has the greatest significance, because here the real pressure of buyers is manifested. If the candle starts with a break, and buyers can push prices up by closing the candle even above the first red candle, this is a clear sign of a trend reversal. ✅Morning star: how to trade this pattern on Forex? As we already know, the Morning Star pattern is a reversal pattern. As a rule, it indicates that bulls are capturing the trend, and bears are losing control. Most beginners trade using the "Morning Star" pattern on their own, without using technical tools, or at least tips from more professional traders. We do not recommend doing this — it is not as reliable as it may seem. Always connect this pattern with other reliable indicators, support and resistance levels, as well as trend lines. So, in this strategy, we combined the Morning Star pattern with volume. Volume plays an important role in the formation of the model. If the first red candle shows a low volume, then this is a good sign for us. Then, if the second candle is green and the volume is growing, this indicates buyer pressure. After all, the volume of the third long green candle should be high. The large volume of the last candle indicates the confirmation of the upcoming trend and the entrances to purchase transactions. If the third bullish candle has a low volume, do not pay attention to the fact that the Morning Star is forming. This volume does not indicate a bullish reversal. To sum up: do you observe the closing of the third candle with a large volume? Open buy positions and move along with the uptrend until there are signs of a reversal. ✅Morning Star pattern: entry, take profit and stop loss We have to open a deal when the next green candle closes. There are many ways to lock in profits. We can close a position in any resistance zone or supply-demand zone. In this deal, we hold our positions because we have opened a deal since the beginning of a new trend. You can also close your positions when the price approaches a significant resistance level on the higher timeframe. ⚠️Combining this pattern with volumes makes trading more reliable. Therefore, you need to place a stop loss just below the second candle. ❤️ Please, support our work with like & comment! ❤️
BITSTAMP:BTCUSDEducation
by UnitedSignals
10
What is a Gap in Trading? | Different Types of Gaps Explained 📚 Hey traders, In this article, we will discuss a very common pattern that is called gap. In technical analysis, the gap is the difference between the closing price of the previous candlestick and the opening price of the next candlestick. 📈Gap up represents a situation when the price bounces up sharply at the moment of a transition from one candlestick to another. The price gap that appears between them is called gap up. 📉Gap down represents a situation when the price drops sharply at the moment of a transition from one candlestick to another, the price gap between the closing price of the previous candle and the opening price of the next candle is called a gap down. From my experience, I realized that with a high probability the gap tends to be filled. For that reason, once you see a gap, consider trading opportunities around that. Depending on the market conditions where the gap appears, there are several types of a gap to know: 1️⃣Common gap appears in a weak, calm market. When the trading volumes are low and the market participants are waiting for some trigger, or the asset reached a fair value price. 2️⃣Breakaway gap appears in a situation when the price suddenly breaks a structure (support or resistance) in a form of a gap. Such a gap usually confirms a structure breakout. 3️⃣Runaway gap usually appears when the market is growing or falling sharply. It signifies the dominance of buyers/sellers and highly probable continuation. Usually, such gaps are not filled. 4️⃣Exhaustion gap is, in contrast, appears around major key levels and signifies a highly probable reversal. The exhaustion gap is usually confirmed by a consequent strong opposite movement that fills the gap. Learn to recognize gaps on a chart and learn to interpret them. It will increase the accuracy of your technical analysis. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
BITSTAMP:BTCUSDEducation
by VasilyTrader
9
Support & Resistance Levels | Trading Basis📚 ❗️The concepts of support and resistance are fundamental concepts of technical analysis of financial markets. They are applicable to almost any market, be it stocks, Forex, gold or cryptocurrency. ❗️And although these concepts are easy to understand, in practice they are quite difficult to master, since the definition of levels is completely subjective, and their behavior depends on many conditions. So first of all it is important to learn to distinguish their types. To do this, you will have to familiarize yourself with a lot of graphs, and this guide will help you. ✅What is support and resistance? 🟢At the most basic level, support and resistance are simple concepts. To determine them, the maximum and minimum price indicators are displayed, acting as a kind of barrier. At the same time, the lower values of the chart represent the support level, and the upper values represent the resistance level. In fact, the level of support can be viewed from the point of view of demand, and the level of resistance – from the point of view of supply. 🟢Despite the fact that support and resistance levels are usually denoted by lines, in reality they usually look different. It should be borne in mind that markets are not governed by any physical law that does not allow indicators to go beyond a certain level. Therefore, it is more appropriate to consider support and resistance levels as areas. You can imagine these areas as ranges on the price chart, the approach to which is likely to cause increased activity of traders. ✅How Traders Use Support and Resistance levels 🟢Technical analysts use support and resistance levels to identify areas of interest on the price chart. At these levels, the main trend is likely to change its direction. 🟢Market psychology plays an important role in the formation of support and resistance levels. Traders and investors are guided by price levels that previously caused increased interest and trading activity. These areas will contribute to increased liquidity as many traders will be tracking the same price levels. Often, support and resistance zones create ideal conditions for entry or exit from a position for large traders. 🟢The concepts of support and resistance levels are key to effective risk management. Your trading opportunities may depend on your ability to consistently identify these zones. Usually, after the price reaches the support or resistance area, two possible events are possible. It either bounces off this area, or breaks through it and continues moving in the direction of the trend to the next potential support or resistance area. 🟢It is best to enter a trade when the price is near the support or resistance level, mainly because of its relative proximity to the cancellation point, where a stop loss order is usually placed. In case of a breakthrough of the area and invalidation of the transaction, traders will be able to reduce their losses, because the further the entry is from the supply or demand zone, the further the point of invalidation of the transaction. 🟢At the same time, you need to understand how these levels will change depending on changes in the situation on the chart. As a rule, a breakdown in the support area can turn it into a resistance area. Conversely, a broken resistance area may turn into a support area when it is retested. This pattern is called the support-resistance flip. ⚠️How to draw support levels correctly? ⏺Reduce the timeframe of your charts so that you can see the bigger picture. ⏺Draw the most obvious levels that tend to have the strongest price bounces. ⏺Adjust your levels to get the maximum number of touches. ❤️ Please, support our work with like & comment! ❤️
Education
by UnitedSignals
10
Four trading fears you will have to overcome 😱The stats for retail traders are not pretty. It's no secret around 80% of all retails traders lose money. The reason most fail is the four fears not being overcome. Fear of being wrong! We are emotional creatures and lets be honest none of us like being wrong. This trait shows in some more than others but there is no place in trading for this trait. It's impossible to 100% right all the time it's not even possible being 90% or 80% right all the time. Once the reality sets in your not going to be right all the time we then as traders have fear of being wrong when seeking our trades or strategies. Fear of losing money We all suffer this fear at some point. What we need to understand is all accounts suffer periods of drawdown. I firmly believe the 80% of all retail traders stat is so high due to people losing money and quitting. The reason money is lost is due to poor strategy or no strategy. Once in a whole the fear of losing more will push people away from trading. Fear of missing out It's probably the fear of missing out that led you here in the first place. You see all the lambo's on social media and the life style and fear of missing out is already in play. Then comes seeing what everyone else has profit wise. Then comes paying attention to everyone else and full blown FOMO instead of sticking to your own game. Fear of leaving money on the table. No better feeling than seeing your trades run in profit. The screen is lit up blue and your loving it. But now comes the fear of letting them trades play out. Your leaving money on the table and it's now a fear you'll lose that money. It's one of the biggest mistakes a trader makes! Cutting winning trades to soon and letting losers run for to long. So how to overcome these fears? There's many elements to overcoming the four fears . There's so may and then even sub elements of those. Hence why this idea had the two brainstorm bubbles on the chart of what fears haunt us as traders. Followed by the bubble of all the thoughts you need to take in to consideration as a trader. It's imperative as traders we build a robust tested plan. Sticking to your own plan and lane is crucial. Just avoid others that blur your plan. Losses are a part of trading quicker you accept this as a cost of business quicker that fear of losing money disappears. There is many more on the chart drawing but quicker these behaviours are followed as a trader the quicker the four fears will disappear. Here's to a good rest of the week🥂 Thanks for looking at my Idea Darren 👍
Education
by pow_removetheguesswork
7
How to win over greed?🎃1. Greed is the problem Many beginners and even experienced traders face greed. It's a feeling that makes you believe in your superiority over the market: • Opening a lot of trades, breaking risk management • Continuing to trade after incurring a loss • Refusing to take profits, hoping to earn more • Averaging losing trades, because everything is about to change. • Believing in the reliability of your pattern, although no pattern or indicator always works out 100%. 2. Why does greed take over? We all have our own desires and goals. Society teaches us that we shouldn't deny ourselves comfort. This leads the vast majority to take out loans for new clothes, iPhones, Cars.. This is how people get used to greed's superiority and put it before discipline, getting accustomed to being able to live beyond their means. What do you think happens to such people when they come into trading? God forbid, such a person immediately learns about futures, then he will lose everything in a month at most. This is exactly the 95% who lose money in the market. They suddenly see an opportunity to make a million out of $10,000 in a month, and, inspired by the stories of dogecoin millionaires from YouTube and Reddit, start to long bitcoin with x125 leverage. There is another type. They do not rush to make money, they act more cautiously. They set themselves up right away that "trading is a long game and there is no hurry". They develop steadily and study pattern after pattern. However, their game pays off very slowly, and under the influence of their expertise they allow themselves more and more "experiments". They are like King Theoden from Lord of the Rings, who was slowly losing his mind under the watchful eye of Wormtongue. 3. How do you get around greed and start using it to your advantage? Change your perspective. Instead of being greedy for money, become greedy for your professional growth . Ironically, if you stop focusing on money, they will come. Create a journal and start analyzing your trades: • What were your reasons for entering? • Did you need to open that trade or was it suboptimal? • Did you act under the influence of emotions, and if so, which one and why? Develop, grow, and reward yourself when you get better, even if your trading results are unchanged. Your brain needs to get used to the fact that the most important thing now is discipline and small improvements. Step by step, you will become a profitable trader and, when you do, withdraw your honestly earned profits into fiat to reward yourself for your fortitude and persistence. You will succeed, because unlike all casino players, you will have the backbone and endurance! Good luck on your journey! If you have any questions, feel free to ask them in the comments, I always check and answer them. Leave a like so you can enjoy the trader psychology posts in the future as well, and thanks for reading to the end. You are the best!
Education
by Artem_Dishel
8
10 Trading Commandments of a Successful Trader 📜 Hey traders, In this post, we will discuss 10 divine rules that every trader must obey: 1️⃣ - Accept that risk and losses are a necessary part of trading. Even though most of the traders are looking for a holy grail, for a system that produces 100% win rate, in fact, losses are inevitable, they are part of the game. No matter how good you are as a trader, occasionally, the market will outsmart you. 2️⃣ - Have a proven trading system. Trade only with a trading strategy that you backtested, that proved its accuracy and efficiency. 3️⃣ - Concentrate on the risk, not the reward. Cut losses, and control your risk. Remember about risk management and never neglect that. 4️⃣ - Never trade without stop loss. Some traders say that they can easily control losses without stop loss. Don't listen to them. Always set a stop loss once you are in a trade. 5️⃣ - Have an attainable target. Setting a stop loss remember to know where to close your trade in profit. Follow strict rules and do not let your greed take you under control. 6️⃣ - Take your emotions under control. No matter whether you are losing, winning, or do not see any trading setups to trade, your emotions will always try to distract you. Be cold-hearted. 7️⃣ - Always stick to your trading plan. Never break your rules, follow your system, and do not deviate. Your trading plan is your only map. 8️⃣ - Limit your losses, never limit your profits. While your gains can be scalable, your risks and losses must be fixed. 9️⃣ - Treat your trading as a business. Trading should be treated with the same discipline as a business. Every business has a solid business plan which entails how the day-to-day running of the business is done, and this also guides the decision-making process. 🔟 - Always journal your trades. Always keep a trading journal. Record your winners and losers, entry reasons, mistakes, failures etc. Revise and learn from your mistakes. Of course, that list can be extended and more commandments and rules can be added. However, these 10 in my view are the most important. Print this list and let it guide you in your trading journey. What would you add to that list? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
BITSTAMP:BTCUSDEducation
by VasilyTrader
9
The myth of risk management - Hack it :) I speak to a lot of traders, new and veteran. It's surprising to see how so many are not sure how risk is calculated and what the exposure really means in terms of P&L. This obviously is a major block in the road on the way to gaining confidence necessary to avoid losses. So let's break it down - *P&L is calculated by lot size * movement. Example: If you have 100 ounces of Gold (1 lot) - That's $100 in P&L (Profit/loss) for each $1 Gold moves in value, so if the price 1890 and you are buying 1 lot , price moves by $5 higher - That's a $500 profit ($100*$) , same thing in reverse, if it would drop by $5 that's a negative of -$500 in open P&L. Leverage decides what you are technically able to open in terms of margin used. So if your leverage on Gold is 1:100 - The value of a 1 lot trade is the price of Gold multiplied by the amount of ounces , so let's say 1890*100 = $189,000 value trade, but your leverage is 1:100, so you would only need $1,890 of used margin (189,000:100) to open the trade. But if you have 1:20 as leverage, you would need 5 times more used margin to open the trade. So a common misconception is that your risk is your leverage. That's not true. Your risk is your lot size. But if you have very high leverage , than you can open very high lot size with a small account - Which is extremely dangerous and not advised. So what does an experienced , smart trader do? No matter what his leverage is, he understands the short-term and the long-term range of movement, and opens a lot size that fits the size of his account considering the range of movement. If the account size is $100,000 , and you are buying 1 lot of Gold: The weekly range is 1840-2,000 , the short-term range is 1880-1910 - Price is 1890 So the exposure is ~$1,000 in the short-term (1%) back to the short-term support 1880 , compared to $2,000 on the short-term resistance (2%) of 1910. The long-term exposure is to 1840, meaning a $5,000 exposure 5% ($100*$50) from 1890 - but 2,000 is the top of the weekly range, meaning - $110 up ($110*100) = $11,000 (11%). So didn't really matter what the leverage is 1:20 or 1:100, what matters here is the range and the lot size. Thank you for reading! ----------------------------------------------------------------------------------------------------------------------------------- If you liked my educational idea please like and follow! It would mean the world to me! I promise to answer all comments/questions - I encourage you to communicate :) Thank you so much for reading - Looking forward to reaching as many of you guys as I can :D -----------------------------------------------------------------------------------------------------------------------------------
BITSTAMP:BTCUSDEducation
by Exactus
Keep your trading charts clean!🧹 ✅Keeping Charts Clean: Since a trader's charting platform is his or her portal to the markets, it is important that charts improve rather than hinder a trader's market analysis. Easy-to-read charts and workspaces (the entire screen, including charts, news feeds, order entry windows, etc.) can improve a trader's situational awareness, allowing him to quickly decipher market activity and react to it. Most trading platforms allow you to largely customize the color and design of the chart, from the background color, style and color of the moving average to the size, color and font of the words that appear on the chart. Setting up clean and visually appealing charts and workspaces helps traders use indicators effectively. ✅Information overload: Many modern traders use multiple monitors to display multiple charts and order entry windows. Even if six monitors are used, you should not consider every square inch of the screen as technical indicators. Information overload occurs when a trader tries to interpret so much data that in fact they are all lost. Some people call this analytical paralysis; if too much information is presented, the trader will most likely not be able to respond. One way to avoid information overload is to exclude any extraneous indicators from the workspace; if you don't use it, lose it – this will help reduce clutter. Traders can also view charts to make sure they are not burdened with multicollinearity; if multiple indicators of the same type are present on the same chart, one or more indicators can be deleted. ✅Tips for organizing: Creating a well–organized workspace using only relevant analysis tools is a process. The set of technical indicators that a trader uses may change from time to time depending on market conditions, strategies used and trading style. ❗️On the other hand, charts can be saved if they are configured in a user-friendly form. There is no need to reformat the charts every time the trading platform closes and reopens. Trading symbols can be changed together with any technical indicators without disturbing the color scheme and layout of the workspace. ✅Recommendations for creating easy-to-read diagrams and workspaces include: ⏺Colors. The colors should be easy to view and provide great contrast so that all data can be easily viewed. In addition, one background color can be used for order entry charts (the chart that is used to enter and exit a trade), and a different background color can be used for all other charts of the same symbol. If more than one symbol is traded, you can use a different background color for each symbol to simplify data isolation. ⏺Layout. Having more than one monitor helps to create a comfortable workspace. One monitor can be used for entering orders, and the other for price charts. If the same indicator is used on several charts, it is recommended to place similar indicators in one place on each chart using the same colors. This makes it easier to find and interpret market activity on individual charts. ⏺Sizes and fonts. Bold and clear font makes it easier for traders to read numbers and words. Like colors and layout, font style is a preference, and traders can experiment with different styles and sizes to find a combination that creates the most visually pleasing result. Once convenient labels are found, fonts of the same style and size can be used on all diagrams to ensure continuity. ⚠️It is important to note that technical analysis deals with probabilities, not certainty. There is no combination of indicators that accurately predicts market movements in 100% of cases. While too many indicators or improper use of indicators can blur a trader's view of the markets, traders who use technical indicators carefully and effectively can more accurately determine trading attitudes with high probability, increasing their chances of success in the markets. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by UnitedSignals
24