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Psychology

CALL ME CRAZY: BITCOIN COULD HIT $30,000 IN 2 YEARS.In this screencast I make out the argument for Bitcoin getting to $30,000 USD in 2 years. This is not a prediction. My speculative projection is based on geopolitical, macroeconomic issues and market psychology. No fundamentals involved. Have a listen. If you have alternative ideas do share by commenting or PM. Let's share and learn together. DISCLAIMER : This educational post is speculative. Opinions expressed here are not intended as 'advice' even if so construed. DYOR! Your decisions in the markets are your own. If you make decisions based on this post and you lose money, you are totally responsible for your losses .
BITFINEX:BTCUSDLong
by Captain_Walker
8
FOR THE LOVE OF GOD STOP DRAWING THIS OBVIOUS EFFING WEDGE.Scroll down. Take a look at all of these "ideas." I collected these off of the FIRST TWO PAGES of tradingview ideas for TRX. Let me take a wild guess where your stop loss is... Did I guess correctly? Now let's say I want to fill a 20 million dollar bag of TRX, and I know where ALLLL of your stop losses are. What should I do? I'd push the price down right to where your all of your stops are, scooping up all your liquidity! Well what do you know, I've filled my bag of TRX! Time to push price up again! This is where you blame your losses on "volatility." I hope you weren't leveraged. Why don't you try placing your buy order where you'd place your stop loss, eh? Don't be a predictable trader.
by DadShark
3
What is "Price Action"? What about indicators?There is no one clear definition of price action. It can be as simple as "Every tick on any given chart, of any given market." However this definition is too broad and does not adequately describe the term. A better definition is "The collective result of buyers and sellers entering the market for any logical reason, which together create reoccurring patterns that can be analyzed and capitalized." Price action is based on humans behaving rationally, logically, and similarly in similar situations over time, and is the cumulative effect of institutional trading. It has been, and always will remain fundamentally unchanged. If you compare a chart from 100 years ago (such as the crash of 1929) with one of today with the time scales removed, you will not be able to tell the difference between the two. It does not matter if you compare a yearly, monthly, daily, or even 1 minute chart with any other chart of a different time frame. Price action appears the same and works the same in every market, and on every time frame. The institutions cannot hide what they are doing; price action is their foot print. Price action can be used to invest long term, or day trade any market. It allows a trader or investor to identify opportunities without the use of any indicators. In fact, all indicators are a derivative of price action in one form or another. Interestingly, the patterns which repeat as well as trend tendencies can be observed on different charts, even outside of markets. Can you tell a difference between these two charts? The first is a daily chart of CSX. The second is a 5 minute chart of the MES (micro s&p). All markets and charts look the same, and behave similarly. Once you understand the information within, you can understand what the institutions are doing at any given time.
TSX:ACB
by tradersmentality
HEXO Bull Profit Taking HEXO reversed down from a nested parabolic wedge, larger wedge and large low 2. The follow through selling has been good. The bears will likely get a second leg down before taking profits and before the bulls will look to buy again. This market is still in a bull trend, but wedges often lead to two legs sideways to down, convert the market into a trading range (atleast temporarily), and sometimes reverse the market into a bear trend. The bulls will look to form a double bottom or higher low around the $5 low. They will need to keep the bull breakout gap open in order to defend the strength of the bull trend. Otherwise prices are more likely to convert into a bull flag trading range. If you found this helpful, please like and share! Feel free to comment or ask questions.
TSX:TLRY
by tradersmentality
3
I was just trading Bitcoin all along...D'OH! The more you look at charts (and social networks), the more you see infinity repeating patterns. The more you recognize infinity repeating patterns, the more you understand the crowd mentality. The more you understand the crowd mentality the better decisions you make. My tactics are all about front running the herd. Selling before they sell or buying before they buy. You have to put in the time to see this. Those that do not, the "fx lifestyle trade from my laptop the market is an atm just look for chart patterns and indicators" morons, the "hodl moonboys ignore the news noise its just fud", are the ones we frontrunning, and the ones that end up losing all their money (ended in my pockets). No way around it. Well at least they get to be right 99% of the time thought ("right"), and without much effort. I prefer making money. Oh and it is just 1 piece of the puzzle obv...
by MrRenev
1
$ACB Weekly AnalysisThe past few weeks have been sideways to down from a lower high, but weak selling pressure. The bears want the lower high to hold and to test the double bottom around $5. Prices are currently in a converging triangle and bull flag trading range as both sides fight for control. If this week closes on its high, it would be a wedge bull flag, double bottom pullback, and also a double bottom with the previous failed bear reversal. If the bulls are able to form a wedge flag soon and keep the 5.25 bull gap open, they will increase the probability of a test of the all time high. Although there will probably be some profit taking at the new high since a trading range. The bears need strong consecutive bear bars and a breakout below the double bottom before the market is clearly no longer controlled by the bulls. If you found this helpful, please like! Feel free to comment or ask questions.
TSX:ACB
by tradersmentality
1
The Art of the FlowThe Art of the Flow Anyone who has been in the trading world for very long has heard you must "flow" with the market. Many people say it, but do they actually understand what it means? Can they truly accomplish this in the market or are they just speaking figuratively? Anyone can look at a chart and say "do this or that" or X happened because of Y, or say "I would do this in that situation." This is all hypothetical, and means absolutely nothing! There is a reason why intellectuals or really smart people cannot make money in the markets. And that is because they think. They think they have to know. They think about this or that, and attempt to understand what prices are likely to do before it happens. In reality all that matters is what you do, the actions you take in the market. And the best actions do not require thought. In other words, the ability to flow with the market is what separates the winners from the contributes. The truth is, it is very hard to flow with the market. Our minds and thoughts are constantly fighting our actions. Internal struggle prevents us from being able to accomplish the necessary goal of flowing with the market. Emotions, fears, and pain prevent us from taking the best action at the right time. A Professional Trader seems to always know exactly what to do, and when to do it. He seems to enter and exit at the best possible times. But how? Is it because he can predict the future of prices? Does he have a better understanding of price action than everyone else? This helps sure, but is not the true answer. The reason he is able to do so is due to a special talent, but it has nothing to do with predicting price movements. It is his ability to act by doing what the market instructs him to do, without giving it any thought whatsoever. He does not resist the market, nor does he become fixated on what should or shouldn't be happening. He simply responds. Like when someone throws a ball at your face; you do not think "I should move my head" you just move your head to prevent from being hit with the ball! A Professional Trader knows there is a lot more to trading than being able to understand what prices are doing or might do at any given time. Of course he must understand price action and price tendencies. But he only uses this as a tool of understanding markets. He knows the key is within his mind, and keeping it clear and free of clutter in order to always stay with the market. He keeps his mind clear like a window, not a stained piece of glass. He sees the market and world for what it is. He does not see the world through a stain of what he wants, or how he thinks it ought to be. He works on cleansing his mind and thoughts of the internal fight and outward fight of resisting the market. He focuses on taking actions he believes is correct based on what the market tells him - and he is often right and therefore rewarded. If you found this helpful please like! Feel free to comment or ask questions
A
by tradersmentality
MOST IMPORTANT TRADE LESSONS!Lesson 9 Trading Psychology is Important When you look at the market you should see your self. The market is a collection of buyers and sellers. You are a participant in that marketplace, and therefore you are the market. How can you understand the market without understanding yourself? The mental landscape of a trader is extremely important and very valuable to a profitable trader. Those that do not understand this, are likely not making money in the market. Most people wanting to be traders never stop to consider this, and they think it is more knowledge about markets they need to make money. Most of the time it is what is going on in their mind that needs work. If you think you are going to wake up one day and be a profitable trader without working on your self, you are mistaken. If you think you are going to read a few books or watch 100 videos on trading and walk into the market the following week and make money, the traders who know the value of internal work will thank you for your money! Of course you must first understand markets, price action, the traders equation, and how to read a chart. But after that you must move on and dive into your trading psychology . It is not understanding markets that brings money into your account. It is your understanding of your perceptions of the market, awareness of your internal dialogue, thoughts, and emotions, along with your knowledge of the market. Ultimately it is your actions that are generated from these that dictate whether or not you will make money. If you do not understand what is happening within your mind at any given time, you are unlikely to achieve consistency long term. Sure you may pick a few good trades. Anyone can find themselves in a winning trade, even those who know nothing about markets. But will they continue to perform well over a month or a year? It is very unlikely. Trading psychology is vital to trading, whether you choose to accept it or not. The market is a paradox, a contradiction. If your mind is tied up and you are unaware, you will make poor actions in the market. Your mind must be free. Free to flow with the market, regardless of what you want or expected. You must be able to bring your mind back to the market and the necessary action right now. If not, you will be stuck within thoughts of what happened 5 minutes ago, or held by anger and frustration for what the market should be doing. If you do not devote time to understanding your mental landscape you will never grow, and never escape the mental turmoil which the market can cause, no matter how much time you devote to understanding what markets do.. For more information on how to develop this awareness or understand your self on a deeper level, see trading psychology. Lesson 10 Allow for windfall profits Many traders believe they must hold for a reward of twice their risk or believe they have high probability and so exit at one times the risk before the market takes it back. These concepts and ideas are more likely to hurt your performance than benefit it. The truth is, the market offers what it offers, and that's it. Sure sometimes its exactly 1x the risk or twice the risk. Other times it is much more. Cutting a winning trade just because it is reasonable, does not make it the best choice. In fact, when you are in a position with exceptional follow through, you must allow it to flourish. In other words, you must allow it to grow into a windfall profit. It only takes 1 out of 10 of these types of trades to create a positive net result. If you cut this 1 trade short because the market has gone to twice your risk, you are only hurting yourself and your numbers. This is like cutting a flower when it is just starting to bud. You do not allow the flower to bloom , and prevent the beauty which will soon appear. Instead you must nourish the plant, give it water, and allow it to grow into what it can be. Cutting a winning trade short is a self inflicted wound. This is often due to fear such as fear of a reversal, or fear of giving back profits. Thoughts of getting back what you previously lost, or hanging on to what you have right now is what leads to these poor actions. Being unwilling to allow for a pullback against the position which is necessary to allow it to grow. So how do you know when to hold and when to exit? That takes experience. What is important is your willingness to learn, and openness to allow a great trade to flourish. However there are signs which can help you identify which trades are likely to turn into a windfall profit, and those that you should take what the market offers you. For clarity and more information on this see Investing Guide. *If you find this analysis helpful please like! Feel free to comment or ask questions.
COINBASE:BTCUSDEducation
by tradersmentality
THE MOST IMPORTANT LESSONS! Lesson 9 Trading Psychology is Important When you look at the market you should see your self. The market is a collection of buyers and sellers. You are a participant in that marketplace, and therefore you are the market. How can you understand the market without understanding yourself? The mental landscape of a trader is extremely important and very valuable to a profitable trader. Those that do not understand this, are likely not making money in the market. Most people wanting to be traders never stop to consider this, and they think it is more knowledge about markets they need to make money. Most of the time it is what is going on in their mind that needs work. If you think you are going to wake up one day and be a profitable trader without working on your self, you are mistaken. If you think you are going to read a few books or watch 100 videos on trading and walk into the market the following week and make money, the traders who know the value of internal work will thank you for your money! Of course you must first understand markets, price action, the traders equation, and how to read a chart. But after that you must move on and dive into your trading psychology. It is not understanding markets that brings money into your account. It is your understanding of your perceptions of the market, awareness of your internal dialogue, thoughts, and emotions, along with your knowledge of the market. Ultimately it is your actions that are generated from these that dictate whether or not you will make money. If you do not understand what is happening within your mind at any given time, you are unlikely to achieve consistency long term. Sure you may pick a few good trades. Anyone can find themselves in a winning trade, even those who know nothing about markets. But will they continue to perform well over a month or a year? It is very unlikely. Trading psychology is vital to trading, whether you choose to accept it or not. The market is a paradox, a contradiction. If your mind is tied up and you are unaware, you will make poor actions in the market. Your mind must be free. Free to flow with the market, regardless of what you want or expected. You must be able to bring your mind back to the market and the necessary action right now. If not, you will be stuck within thoughts of what happened 5 minutes ago, or held by anger and frustration for what the market should be doing. If you do not devote time to understanding your mental landscape you will never grow, and never escape the mental turmoil which the market can cause, no matter how much time you devote to understanding what markets do.. For more information on how to develop this awareness or understand your self on a deeper level, see trading psychology. Lesson 10 Allow for windfall profits Many traders believe they must hold for a reward of twice their risk or believe they have high probability and so exit at one times the risk before the market takes it back. These concepts and ideas are more likely to hurt your performance than benefit it. The truth is, the market offers what it offers, and that's it. Sure sometimes its exactly 1x the risk or twice the risk. Other times it is much more. Cutting a winning trade just because it is reasonable, does not make it the best choice. In fact, when you are in a position with exceptional follow through, you must allow it to flourish. In other words, you must allow it to grow into a windfall profit. It only takes 1 out of 10 of these types of trades to create a positive net result. If you cut this 1 trade short because the market has gone to twice your risk, you are only hurting yourself and your numbers. This is like cutting a flower when it is just starting to bud. You do not allow the flower to bloom, and prevent the beauty which will soon appear. Instead you must nourish the plant, give it water, and allow it to grow into what it can be. Cutting a winning trade short is a self inflicted wound. This is often due to fear such as fear of a reversal, or fear of giving back profits. Thoughts of getting back what you previously lost, or hanging on to what you have right now is what leads to these poor actions. Being unwilling to allow for a pullback against the position which is necessary to allow it to grow. So how do you know when to hold and when to exit? That takes experience. What is important is your willingness to learn, and openness to allow a great trade to flourish. However there are signs which can help you identify which trades are likely to turn into a windfall profit, and those that you should take what the market offers you. For clarity and more information on this see Investing Guide. *If you find this analysis helpful please like! Feel free to comment or ask questions.
A
by tradersmentality
Lessons from an Experienced Trader #3Lesson 7 Trade Outcome is Random The outcome of any given trade is random, no matter how strong your edge is. It is impossible to predict whether a trade will result in a loss, decent profit, or a windfall profit. Contrary to what most Price Action traders and price analysts believe, you cannot and will never be able to predict the market. Most amateur traders fail to recognize this fact, or deny this reality altogether. They believe eventually, they will be able to avoid losing trades and pick winners. They do not understand the outcome of any given trade is random, and therefore impossible to know before hand. Consider weather prediction as an example. Meteorologists have highly sophisticated weather models and algorithms to predict weather behavior, just like traders and institutions in the market. Yet the weathermen cannot accurately predict what will occur. They can say "There is a 60% chance of rain today if you live in X." But they cannot say exactly when or where rain will fall. It is the same in the market. You may have a good idea of what may occur, and even be right! However, there is still a reasonable chance (usually around 40%) that you are wrong, and the exact opposite will occur. The market is always right. It does not matter what you think or believe should or will happen. All that matters is what is happening. Just because a trade looks good or an edge is strong, does not mean it will result in a profit. There is still an opposing probability that it will fail. The point is that you will never know beyond a reasonable doubt what the market will do next. You may have a hunch, or a strong edge, but that will only get you so far. Therefore the only thing to do is to always take your edge, because you never know if this will be the windfall profit you are looking for, a small profit, or a loss. And quite frankly, it does not matter! Lesson 8 Market Outcome Does Not Matter The outcome of any single trade does not matter. It is very common for traders to become attached to the outcome of this individual trade. This is what leads to emotions, anger and frustration with trading and the market. We get stuck in the mindset that we have to win X amount of profit like 2X risk on this trade, or have to make money every day to be a profitable trader. This is not the case at all. In fact you only have to win one 1 or 2 really good trades out of 10 to maintain a consistent performance. Any single trade is irrelevant to a trading system or strategy. It is the cumulative result over a series of trades that results in a profit. This is why it is so important to know and only trade your edge, otherwise you introduce randomness into your performance, and are unable to produce consistency. *If you find this analysis helpful please like! Feel free to comment or ask questions.
AEducation
by tradersmentality
2
Lessons from an Experienced Trader #3Lesson 7 Trade Outcome is Random The outcome of any given trade is random, no matter how strong your edge is. It is impossible to predict whether a trade will result in a loss, decent profit, or a windfall profit. Contrary to what most Price Action traders and price analysts believe, you cannot and will never be able to predict the market. Most amateur traders fail to recognize this fact, or deny this reality altogether. They believe eventually, they will be able to avoid losing trades and pick winners. They do not understand the outcome of any given trade is random, and therefore impossible to know before hand. Consider weather prediction as an example. Meteorologists have highly sophisticated weather models and algorithms to predict weather behavior, just like traders and institutions in the market. Yet the weathermen cannot accurately predict what will occur. They can say "There is a 60% chance of rain today if you live in X." But they cannot say exactly when or where rain will fall. It is the same in the market. You may have a good idea of what may occur, and even be right! However, there is still a reasonable chance (usually around 40%) that you are wrong, and the exact opposite will occur. The market is always right. It does not matter what you think or believe should or will happen. All that matters is what is happening. Just because a trade looks good or an edge is strong, does not mean it will result in a profit. There is still an opposing probability that it will fail. The point is that you will never know beyond a reasonable doubt what the market will do next. You may have a hunch, or a strong edge, but that will only get you so far. Therefore the only thing to do is to always take your edge, because you never know if this will be the windfall profit you are looking for, a small profit, or a loss. And quite frankly, it does not matter! Lesson 8 Market Outcome Does Not Matter The outcome of any single trade does not matter. It is very common for traders to become attached to the outcome of this individual trade. This is what leads to emotions, anger and frustration with trading and the market. We get stuck in the mindset that we have to win X amount of profit like 2X risk on this trade, or have to make money every day to be a profitable trader. This is not the case at all. In fact you only have to win one 1 or 2 really good trades out of 10 to maintain a consistent performance. Any single trade is irrelevant to a trading system or strategy. It is the cumulative result over a series of trades that results in a profit. This is why it is so important to know and only trade your edge, otherwise you introduce randomness into your performance, and are unable to produce consistency. *If you find this analysis helpful please like! Feel free to comment or ask questions.
Education
by tradersmentality
Overcoming Emotions and Zen TradingOvercoming Emotions Most traders want to "overcome" their emotions. They view thoughts and emotions as the enemy which prevents them from succeeding in the market. This is a false perception. Yes emotions and thoughts can lead to actions in the market, but they are impossible to remove. So long as you are human you will have emotions and thoughts. There is an alternative to removing them, and that is to use them to your advantage in the market. By practicing mindfulness, which is awareness of thoughts, emotions, and perceptions, you can learn to recognize how these affect your trading performance. By recognizing and being aware of them, you have a chance to change the outcome. For instance if you consistently enter poor trades due to fear of missing out. When you become aware of this fear you can learn to stop yourself from entering and avoid the poor trades that hurt your performance. There is a direct correlation between how you feel about yourself or the market, and how you perform. If you are worried about money you will overly focus on risk or prices going against your position even if only slightly, and likely make a mistake by exiting too soon. Or you do not want to take the loss and will hold the trade too long, hoping the market will let you off the hook with a smaller loss. What is Zen Trading about? Zen trading is a mindset of flowing with the market without hesitation, being aware of and trading along side emotions, and making actions intuitively rather than forcefully. A Zen trader remains in a relaxed, effortless state of mind; without any internal struggle. He does not attach his self worth to his performance at any given time, and is unhindered by market outcomes. He acts on his edge when it is present without hesitating, and takes what the market gives him when it is time to do so. He trusts himself, his strategy, and the market to provide him with a consistent performance over time; whether or not he makes money on this trade, today, or this week. He is aware of the bigger picture; the Tao or life, and knows there is more to life than trading or money. Trading is not his life. It is simply something he does to earn a living, and he seeks to maintain a Zen spirit in his trading and actions in the market. *If you find this analysis helpful please like! Feel free to comment or ask questions.
COINBASE:BTCUSDEducation
by tradersmentality
Overcoming Emotions and Zen TradingOvercoming Emotions Most traders want to "overcome" their emotions. They view thoughts and emotions as the enemy which prevents them from succeeding in the market. This is a false perception. Yes emotions and thoughts can lead to actions in the market, but they are impossible to remove. So long as you are human you will have emotions and thoughts. There is an alternative to removing them, and that is to use them to your advantage in the market. By practicing mindfulness, which is awareness of thoughts, emotions, and perceptions, you can learn to recognize how these affect your trading performance. By recognizing and being aware of them, you have a chance to change the outcome. For instance if you consistently enter poor trades due to fear of missing out. When you become aware of this fear you can learn to stop yourself from entering and avoid the poor trades that hurt your performance. There is a direct correlation between how you feel about yourself or the market, and how you perform. If you are worried about money you will overly focus on risk or prices going against your position even if only slightly, and likely make a mistake by exiting too soon. Or you do not want to take the loss and will hold the trade too long, hoping the market will let you off the hook with a smaller loss. What is Zen Trading about? Zen trading is a mindset of flowing with the market without hesitation, being aware of and trading along side emotions, and making actions intuitively rather than forcefully. A Zen trader remains in a relaxed, effortless state of mind; without any internal struggle. He does not attach his self worth to his performance at any given time, and is unhindered by market outcomes. He acts on his edge when it is present without hesitating, and takes what the market gives him when it is time to do so. He trusts himself, his strategy, and the market to provide him with a consistent performance over time; whether or not he makes money on this trade, today, or this week. He is aware of the bigger picture; the Tao or life, and knows there is more to life than trading or money. Trading is not his life. It is simply something he does to earn a living, and he seeks to maintain a Zen spirit in his trading and actions in the market. *If you find this analysis helpful please like! Feel free to comment or ask questions.
by tradersmentality
1
OGI Weekly AnalysisOGI is starting to turn down from a nested wedge this week. So far this week is a strong bear bar near its low and is close to filling the 9.75 bull gap. This gap is likely to be filled as it is more likely an exhaustion gap than measuring gap. The bulls have reached a leg 1 = leg 2 measured move up which has led to some profit taking (tails above bars). If this week closes on its low, it would be a large low 2 reversal and nested wedge, making it a reasonable place for bulls to get out and wait for two legs sideways to down before the bulls are likely to return. *If you find this analysis helpful please like! Feel free to comment or ask questions.
O
by tradersmentality
Hope for the best, prepare for the worstHey everyone. It's been a while since I posted, I don't feel like I can live up to the quality of my last BTC analysis, which was PERFECT. If you haven't seen it, check it out. But today I was thinking "There's no way this market is going to keep going up, because CNBC is talking about it, and everyone else is talking about it." You see, in trading 90% of participants have to lose. So if more than 10% of people are thinking the same thing, they are probably wrong. So I busted out my chart to try to anticipate what might actually happen. I figure for the next few weeks or months the market could stay flat, while all of the bulls BTFD (buy the f*cking dip). And then, just when everyone is feeling hopeful, the market might start sliding. People will HODL thinking it will still make higher lows, but sadly for them the market will keep on tanking until it makes lower lows. It's at this point people will say "Okay I was wrong" and they will capitulate. The market will rise, they will sell, and then the market will keep rising while they slap themselves for selling so low. Of course, there's no way to know what's going to happen. It's literally impossible to be sure. But trader psychology is a great way to try to predict what might happen, because one thing is for sure in trading, it's not easy and most people will lose money. That's all for now, please consider sharing if you got value out of this analysis. And don't forget to leave a thumbs up and follow. I do technical analysis as a hobby. I like to learn more about markets and share my ideas with other people. But when it comes to real trading decisions I trust my trading algorithms more than my chart analysis. See my signature for more info. Cheers!
BITSTAMP:BTCUSDShort
by Nitra_Bots
1
Lessons from an Experienced Trader #2Lesson 4 Know what you want in the market Contrary to what most believe, successful traders do not actually trade constantly. Attempting to trade constantly leads to increased commission costs, random trading, and compound mistakes. In fact, successful traders spend most of their time doing absolutely nothing! How long does it take to enter an order? A click of the button. A few seconds. Maybe a few minutes at most to create bracket orders. So what do Professional Traders do the rest of the time? They wait. They wait until the market offers what they want or are looking for. Then after entering they wait some more to see if they are right. They wait for the market to provide them with the information to either hold, or exit. They allow themselves to Be, the trade to Be, the market to Be and do what it is going to do. They do not force actions or attempt to make the market do what they want. They wait until the action comes about on its own, until it is natural, a reflex. If you do not know what it is in the market that you are looking for, you will fold under pressure and confusion. A Professional Trader knows exactly what he wants (not just to make money), he knows what he is looking for in the market, and is willingness to wait for it to arrive. By doing so, he is rewarded and paid by the market for his patience and willing to do nothing. Even if this means not trading for hours, days, or even weeks depending on the time frame. It is far better to do nothing and avoid unnecessary losses, than to try and create tensions, forced actions, and lose money. You have to ask yourself "What is more important? The actual act of trading, or making money?" Lesson 5 Define your edge An edge is what you have defined as being what you want from the market in the previous lesson. This can be anything from a specific setup, to just plain context like a strong market. If you do not know what your edge is, you will struggle to perform consistently due to randomness. Many new traders, especially those who follow price action, believe they should be able to trade the market no matter what the context is. If you think you are just going to walk in to the market, trade based on whatever the market is doing and make money; you are fooling yourself. Doing so will lead you to trade randomly, entering willy nilly at the market, and make many mistakes which will cost you your profitability. Do you walk into Walmart or Aldi's without knowing what you want to buy until you get there? No, you have a list of items, or at least an idea of what you need before you go. Do you start a business because you woke up this morning and thought it would be nice to own a car wash? Hopefully not. You first identify an opportunity, and then create a business model after a lot of research. Then finally you open the business. Of course everyone thinks or says "well so and so does this and that, and he seems to be making money." Sure, maybe he is, maybe not. If he is, he has defined his edge and is simply employing it. What someone else does has absolutely nothing to do with what you should be doing. Once you have defined your edge, you must wait for it to arrive. If the market is not offering what you want or what your edge calls for, you do nothing until it is. If your edge is a trend trading method and the market is in a trading range, you do not trade until the market is trending. If you have not clearly defined your edge, you should not trade. If you do not know what it is in the market you want and are looking for, you have no business in the market. Simple as that. If you chose to do so, you are putting yourself at unnecessary risk and trading randomly. Yes this sounds harsh, but it is the reality of the market. The market will not give you anything, especially if you don't even know what it is that you want!
COINBASE:BTCUSDEducation
by tradersmentality
TSLA Weekly AnalysisBear breakout of TSLA, but increased and climactic selling last week and gap down this week. Likely a sell vacuum test of the $180 low. The $240 gap above will likely get filled over the next few weeks to months. The bears need a strong breakout below 180 and 140. Otherwise bears will start to take profits and bulls will re-establish long positions. What happens when strong bears and strong bulls buy? The market can only go up. Unless the bears can demonstrate significant strength here, the bulls are more likely to take back control within the coming weeks. Therefore the next few weeks are important for both sides, and will likely determine the direction of the coming months or even years.
NASDAQ:TSLA
by tradersmentality
IMPORTANT Understand How BITCOIN-WHALES Think! First down, then up, then down again and then up?? WTF? Did You See It? What Just Happened? Whales, guys! One of the biggest advantages of being a whale, is also their disadvantage. Yes, they can manipulate the market, but try to make 100% ROI on 50m USD in the Crypto Market!? Its obviously way easier to double your money if you start with 100 bucks. Because the whale has a lot of money, they also need other traders (collectively) in the market with a lot of money, otherwise there will be no trade. That is not always easy - and its not at every price point people want to trade. Example We have more people trading at (liquidity) around 10,000 USD than 7128 USD. And THAT, guys, is also why Whales always try to steer the market in a direction with high liquidity. How A Whale Make Money A part of a Whales strategy to make money is STOP HUNTING. They will try to liquidate you, or make you hit your Stop Loss because it will work as a sell or a buy, which will move the price in their desired direction. How Whales Stop Hunt? The most efficient way to liquidate people - both shorts and longs at the same time - is to make a sudden move first in one direction (through a key price point for instance 8,000 USD), and THEN back again through the same price point. Why Is That? The reason is simple - look at my chart. People usually place LONGS and SHORT around key support and resistance price points. And what about the Stop Loss? Yes, we typically put that on the opposite side of the resistance or support price point. I have given some examples on how LONGS and SHORTS could be placed on either side of 8,000 USD, and also the stop losses on the opposite side. IF a WHALE manage to come from an uptrend and quickly go through 8k, and turn around and go back again through 8,000 USD he has NOW liquidated both the SHORTS and the LONGS. Short Squeeze Party The way our family made money on was just by swimming with the whales. I had figured out their plan. Due to the Disproportion between Shorts and Longs, the whales decided just buy up big, and make huge buy walls to induce the normal traders, and then just continue again and again, so we went all they way from 5k to 8,4k. Notice that this Stop Hunt ONLY killed Shorts. Watch out for Key Levels as 8k Here we have hugeliquidity, and the whales will try again and again to stop hunt espeically in this area, because its easy for them to make money on. You should ALWAYS be extra careful especially when you are trading on BitMEX or Bitfinex with leverage trading (margin trading). Use it as an advantage I have been studying psychology - I have been National Master in Chess and been a pro pokerplayer, so I have a pretty high interpersonal intelligence, which makes it pretty easy for me to figure out, what, why and how the Whales want to play, and what they are thinking. When Im doing my TA, I always put the Whale mindset into my equation before I weigh all the information I have about the market, and then choose a direction! PROOF My Family knows this. Yesterday I gave them the signal, and told them that we would see a STOP HUNT down to kill the LONGS. And it happend. Today, I still believe we will go further down, and we might see another STOP HUNT. Follow My Blue LINE to Understand how Whales operates. D4 Please give a LIKE!
BITMEX:BTCUSD.PShort
by D4rkEnergY
42
Bitcoin Daily Chart AnalysisBull breakout this week, second leg up; risky place to initiate longs (high risk, low probability). Bears trying for micro double top and double top bear flag with July 25 swing high, and parabolic wedge. If bears get strong close on low today, prices will likely test the bull gap from May 10th. The bulls need to generate strong follow through above 8500. Upside currently limited by resistance. If bulls get above 8500, the next target is the 11670 start of the bear channel where a large trading range is likely to form. However there has been strong buying pressure since the parabolic wedge reversal. The bulls will likely get a larger second leg up but pullback likely first. They will try to form a double bottom or higher low around 5000.
CME:BTC1!
by tradersmentality
Lessons from an Experienced Trader #2Lesson 4     Know what you want in the market  Contrary to what most believe, successful traders do not actually trade constantly.  Attempting to trade constantly leads to increased commission costs, random trading, and compound mistakes.  In fact, successful traders spend most of their time doing absolutely nothing!  How long does it take to enter an order?  A click of the button.  A few seconds.  Maybe a few minutes at most to create bracket orders.  So what do Professional Traders do the rest of the time?  They wait.  They wait until the market offers what they want or are looking for. Then after entering they wait some more to see if they are right.  They wait for the market to provide them with the information to either hold, or exit. They allow themselves to Be, the trade to Be, the market to Be and do what it is going to do.  They do not force actions or attempt to make the market do what they want.  They wait until the action comes about on its own, until it is natural, a reflex.   If you do not know what it is in the market that you are looking for, you will fold under pressure and confusion.  A Professional Trader knows exactly what he wants (not just to make money), he knows what he is looking for in the market, and is willingness to wait for it to arrive.  By doing so, he is rewarded and paid by the market for his patience and willing to do nothing.  Even if this means not trading for hours, days, or even weeks depending on the time frame.   It is far better to do nothing and avoid unnecessary losses, than to try and create tensions, forced actions, and lose money.  You have to ask yourself "What is more important?  The actual act of trading, or making money?" Lesson 5    Define your edge An edge is what you have defined as being what you want from the market in the previous lesson.  This can be anything from a specific setup, to just plain context like a strong market.  If you do not know what your edge is, you will struggle to perform consistently due to randomness. Many new traders, especially those who follow price action, believe they should be able to trade the market no matter what the context is.  If you think you are just going to walk in to the market, trade based on whatever the market is doing and make money; you are fooling yourself.  Doing so will lead you to trade randomly, entering willy nilly at the market, and make many mistakes which will cost you your profitability.   Do you walk into Walmart or Aldi's without knowing what you want to buy until you get there?  No, you have a list of items, or at least an idea of what you need before you go.  Do you start a business because you woke up this morning and thought it would be nice to own a car wash?  Hopefully not.  You first identify an opportunity, and then create a business model after a lot of research.  Then finally you open the business. Of course everyone thinks or says  "well so and so does this and that, and he seems to be making money."  Sure, maybe he is, maybe not.  If he is, he has defined his edge and is simply employing it.  What someone else does has absolutely nothing to do with what you should be doing.   Once you have defined your edge, you must wait for it to arrive.  If the market is not offering what you want or what your edge calls for, you do nothing until it is.  If your edge is a trend trading method and the market is in a trading range, you do not trade until the market is trending.   If you have not clearly defined your edge, you should not trade.  If you do not know what it is in the market you want and are looking for, you have no business in the market.  Simple as that.  If you chose to do so, you are putting yourself at unnecessary risk and trading randomly. Yes this sounds harsh, but it is the reality of the market.  The market will not give you anything, especially if you don't even know what it is that you want!
by tradersmentality