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Psychology

Gamblers and a traders The difference between a gambler and a player, as well as the similarities between a player and a trader. The player and the gambler are very often confused; if we are talking about gambling itself, then this is a psychiatric problem. If you come across conditional roulette, then you will always catch the trigger, absolutely every time it will cause the same positive emotions that roulette caused you before and this will direct the Vector of your behavior and thinking towards trying to play again. That is, the only solution is to leave. If we are talking about players, that is, is the trader a professional gambler, I 100% agree with this. That is, a player is a person who wants to win, and for a gambler it’s a game for the sake of playing. When a person, so to speak, trades, he will form a certain technical picture in some market, he will see some specific situations that lead to a result that is understandable to him. Look for understandable patterns that lead to understandable, logical results! There will be a positive mathematical expectation and a negative one! Everyone remembers this story about 10 thousand hours! So, by analyzing charts and studying information, you can grow as a player and a trader, and if you just sit and look at the roulette wheel for 10 thousand hours where red and black appear, nothing will change, it will just be an accident! You also need to understand that there are gamblers in trading who open a trade for the sake of trading, in order to be in a position and feel some kind of emotion! This is already a problem! People who have lost regularly in casinos or sports betting will always deny that it was a problem for them! It’s the same in trading, if you open a thoughtless series of positions just to be in the market and feel emotions, this is already a problem, not gambling yet, but already a problem! Therefore, in trading, a large part of success is occupied by psychology and working on oneself! Mastering the technical side is much easier than defeating yourself! Therefore, it’s probably still self-analysis and the ability to critically evaluate one’s actions The results and actions that lead to these results are very important! In the game for the sake of playing it does not exist, the game is for the sake of the game, it is maintained due to emotional passion, in the moment only if you play longer and the moment stretches out, that’s all! Be attentive to your emotional state!
BITSTAMP:BTCUSDEducation
by Crypto4light
FOUR MARKET PHASESAll stocks go thru 4 stages, sometimes each stage can last months or even years, and it's not always easy to recognize like it is on this chart. Stage 1: Accumulation - buyers coming in stopping the down fall, and the stock starts trading sideways. (Wait) Stage 2: Markup - Bullish phase, where traders and institutions start buying the up trend. (Buy) Stage 3: Distribution - where institutions and traders start taking profits - selling. (Sell) Stage 4: Decline - shorts recognize this stage and start shorting the stock. (Avoid)
NYSE:SPOTLong
by tradepatiently
1
Influencers and trading Today I want to make a post about influencers and the crypto market.
 The most important thing for you to understand is that no one, absolutely no one can know the future. People who share ideas on any social media are ordinary people who analyze the market just like you. The only difference is they post it on social media. No one anywhere ever says and has never said that these people know more than you. A person who has 20 followers on X can have more correct ideas than someone who has 100,000 followers. And that's normal.
 You also don't need to listen to and believe everything that world magazines, excerpts and analysts tell you. Big hedge funds with billions in their accounts make wrong predictions and that's okay. It is important that at the distance you are in profit and not loss. This applies to both the investment portfolio and daily trades. Remember, all responsibility for YOUR money always belongs to YOU. All the actions you take or not take on the market, you do by yourself by pressing the buy or sell buttons or dont touching any button. If you give your funds to someone in trust management, it is only YOUR personal choice. If you follow and copy some trades of an influencer in copy trading, it is YOUR personal choice. No one is forcing you to follow anyone at all, copy their deals, or follow any signals. There is always a 50/50 probability of price movement in the market. All responsibility for your profit or your loss on YOU. Influencers are ordinary people who run their own blogs where they share ideas, to someone these ideas may be close to someone not, this does not mean that this ideas is bad or good. A person is simply sharing his ideas. No one is forcing you to watch videos or subscribe to channels or any accounts. All people can make correct and incorrect predictions by analyzing the market. The only question here is whether you have your own plan or not, because most likely the influencer has a plan for any result in the market. And he knows what he will do if the market goes down or up. If, after seeing an idea, you are not ready for a completely different scenario, this is your personal problem. Social media is free and people launch blog about training, cooking, painting, they share their experiences and ideas, so do traders share their experiences and ideas. 
No one influencer owes YOU anything. This is a person who runs his own blog, because social networks are a place to express his thoughts and ideas. If the influencer makes the correct forecast, he is well done, if not, everyone starts laughing at him. Everyone makes correct predictions and incorrect ones. This is normal. At least the influencer has his vision of the market, and if you don't have it at all, then the only loser in the market is you, because you don't know how to analyze the market at all, you don't know how to do it, and you watch dozens of bloggers to find out the Graal. I also noticed such a thing, if the forecast is correct and the idea worked, someone made money, for some reason no one writes the blogger, thank you for the idea, let me share % of the earnings with you, but if the idea turned out to be wrong, everyone blames the blogger for allegedly losing money because of him. This is the stupid nature of people who are always looking for people to blame for their mistakes in everything. No one owes you anything on the market. All your victories and defeats are solely your responsibility. Which influencers should definitely be avoided . Just an entertaining type of content where you are shown that trading is easy, no it is not easy. Trading is a profession and requires knowledge, skills, experience and daily analysis and work with oneself in terms of psychology. If an influencer simply posts every day “write 10 altcoins to buy now” “what you can buy $10,000 now shill me your tokens” this is just content for engagement. Many influencers earn more from referral links than from trading itself. Many exchanges offer conditions where traders conditionally trade with virtual funds and show their phenomenal trends, but these are not real funds, but simply luring new users to the platform, where the influencer will receive a % of each of your trades, whether it is successful or losing. It is good to be a partner with exchanges, because an influencer can help in case of blocking someone's account, can directly contact a representative of the exchange, help someone from the subscribers, has access to discounts and promotions on exchanges that give bonuses. It is important to understand that you do not need to follow a blogger just because he promises you some super discounts. It is not necessary to trust 100% of funds and believe in signal groups even if it is a free group. A person can simply give signals and they will be either true or false. All responsibility lies with YOU anyway. No need to pay for signal groups, no one is going to make YOU rich for $200 a month waiting for some signals. Do not be fooled by promises that in 2 weeks you will be able to trade in a profit. Avoid influencers who constantly send you some new tokens, always check the information yourself and do your own analysis. Very often, when a new token is created, an amount of money is allocated for marketing and scam projects pay influencers to advertise the token. It is possible that the influencer himself does not know the plans of the team, but be respectful and work on the power of the research in the future. Influencers and courses - The most valuable resource in life is time. There is no information in the world that you will not find in the public domain - this is a fact (well, we do not take various inside stories, very large connections, etc.). However, how long will it take you to obtain this information, find everything you need, gain experience, etc. I haven’t seen people who learn English from open sources; most go to a tutor. For what? You can open the Internet and learn a new language yourself. If a person values his time, he goes to study with a professional. Some may not succeed, some may not have two free years to fully study crypt, etc. Friends, it is normal to learn something. Buying training and courses if they are individual and personal is normal. But here, each person has his own approach. It’s easier for someone to learn everything on their own (for me its easier because I love learning something new by my own) , or it’s easier to learn information from a teacher, or it’s better to learn from books, or it’s better to learn from video lessons. Some need to take training offline, some need individual classes, and some need group classes. Before you buy any training again, analyze why you are buying it, what YOU need it for, and think about who you would like to get trained with. Now everyone want to be a coach so double check what courses you looking to join. Indicators . The indicators are a tool and not a charming money button. Standard tools and original products such as writing code, focusing on evidence and analytics. Indicators are the greatest additional tool for a trader because indicators can analyze data on different time frames in real time, providing more information for analysis and decision-making. The indicators does not carry the emotion of, they just show a picture of what is going on in the market now. The indicator cannot predict a new posts in media that can appear at any moment, the indicators cannot predict what Jerome Powell or Elon Musk will say in twitter next moment, the indicator is an excellent tool that you can successfully integrate into your trading strategy. On backtest you can find more confirmation from the indicators of your trading strategy and significantly improve the success of your trading. It show you wider picture and data to confirm or deny your technical analysis. Therefore, with proper use of indicators, they will become your reliable assistant, if not a charmer. The deposit amount is yours and that of the influencer. Don’t think that an influencer posts great PNL and great earnings numbers, he trades better than you, or know something better than you 100%. You can simply buy a token at an early stage and earn your first capital. Main thing is not the size of the deposit, but discipline and trading at a distance. There is a lot of stories when people bought for example by luck or randomly Shiba Inu or Pepe, took away hundreds of thousands of dollars in profits, and then the traders lost the entire deposit. If you have a deposit of 1000 dollars and in whom there is absolutely no difference between you and 100 thousand, there is no need to be jealous of yourself and think that you are not successful. As soon as you earn your % from 1000 dollars and work systematically following your strategy, you doing everything correctly. Then you can simply scale your income and improve your skills and strategy. What is important at a distance is the percentage of winning trades and not the one time income. A person with a 100 thousand deposit can spend all the money if the risk management and self-esteem are not protected. Moreover, when the numbers are higher, your emotional and psychological state does not suffer. You are doing everything right. Don’t let social media and “luxury” lifestyle spill into your path as a trader. Filter your news feed and maintain hygiene on social media. Continue to practice and improve your knowledge, skills and trading strategy. If you like the thoughts, ideas, and market dynamics of any influencer, you can follow him, looking for new ideas and a different look at the market that can give you new information for your analysis. But always DYOR and take 100% responsibility for your actions Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
1
The Timeless Abyss of Trading: The Greatest Trap Of All-timeI am here with a unique topic. It is about a psychological trading trap called the cycle of doom. What got me interested in this psychological topic? Well, there are very few articles about it. You can count them on one hand, and more than 90% of traders are losing money. Most traders find their method of trading. What stops them from becoming profitable traders? Tradingview platform is one of the biggest charting platforms that provide an educational section and editorial peak for traders to sharpen their knowledge related to technical analysis, trading methodology, trading psychology, etc. As a trader, we are making market memories by improving screen time, practicing technical analysis, analyzing option data(if applicable), and a lot more. Why do we still fall short in applying in real time? What stops us from becoming a profitable trader? Something looks missing out! I would like to draw your attention to the psychological trap cycle of doom, a topic discussed by only a few traders. Let me be clear, I do believe that this topic is universally applicable! The cycle of doom is made up of three phases: The search The Action The Blame "Sun Tzu said Know the enemy and know yourself in a hundred battles you will never be in peril." In order to exit from the loop of the cycle, we have to understand the parts of the cycle. 1) The Search: Probably, it's the first phase of the cycle. Just recall your initial stages of trading. You were finding a trading strategy to make money out of the money. You may have asked to friend, watched a YouTube video, read an article on Tradingview, bought a book or course or indicators, or purchased the strategy. At that time, you were entered into the cycle. Additionally, we should never trade for enjoyment but treat it as a business. The statement does not apply to the initial stages. Trader explores new methods, theories, and systems. Postulate, Trader A uses X theory to do their day trading for a living, and you were impressed and took it to put your money on it, or you found the method by yourself. The trader will switch his next position after finding a system that is convenient for his trading and trusts that he can take minimal risks to achieve expected returns. 2) The Action: The Action phase is the second phase of the cycle. Now, you have a trading system that will make your money grow to expected returns. This phase can be super exciting for traders as they believe he has an edge and is most likely a key to opening a present of unrealistic returns. Issues arise when a trader employs their strategy without supporting evidence, like backtesting results. Your heart may be pounding, and your fingers may be trembling like a child, but it doesn't mean you should directly trade the strategy without checking the results, failure, and performance of the system. Just five percent of traders actually test a trading system before putting it into action. You might discover that the trading system performs well for a prolonged period. Suddenly, a drawdown appeared! At a certain point, everything may seem bleak. While profits might flow in initially, eventually, the losing trades start to accumulate. It's a red signal for traders that their trading system is now on oxygen. I don't think traders can trust the system after a big streak of losing traders. You have entered into the blame phase. 3) The Blame: The Blame is the final stage of the cycle. As we discussed, the trader has lost their trust in his trading system, which was a holy grail for him at the initial stage. The Red portfolio hurts more than a break-up. The trader is not happy with the system as it has wiped out the gain + trading capital, and the trading system is the only cause that affected the profit and wants to remove the system and search for a new strategy. 4) Loop of the cycle: As can be seen, the trader again finds a new strategy and makes an effort and action on it, then blames the system. The cycle repeats and traps the trader in this way. How to get out of the cycle? 1. Modification is the only way to survival & Trust the system: Traders should modify their strategy according to market conditions, instruments, and trading style. Maybe not everything works for everyone. Therefore, traders should do this according to him. For example, I use Elliott wave theory as the first base and price action as a confirmation tool along with different indicators according to the situation. I do modify Elliott and price action as per my observation of price moves and wavelength. 2. Backtesting is the holy grail: Choosing trading theory also depends on traders' mindset, risk-aptitude, and expected return. Scalpers will never check the PE, P/S, or EV/EBITDA ratio of the firm just because of their duration and risk-reward calculation. After choosing an appropriate trading strategy, traders should backtest their trading strategy before doing real-market transaction. We have the advantage of backtesting tools, algo, and virtual account, which was not available for pit traders. 3. Risk management: Already many ideas are available on this topic. The trading system should be giving proper returns as per the taken risk unless it is nothing more than Drilling a well in the desert. I need more time to write a full idea on the escape of the cycle of doom. Thank you! @Money_Dictators
BITSTAMP:BTCUSDEducation
by Money_Dictators
14
Psychographic Analysis - Life Cycle of InvestorImagine an investment as a journey with twists and turns. Knowing its different stages is like having a map for investors. It helps them decide if they want a thrilling ride with big potential rewards or a smoother path with steady stability, based on their comfort with risk. For investors, understanding the life cycle is crucial because it directly impacts the investor's risk appetite. ✨Personality characteristics of investors ✨Risk/Return Trade-Offs for Investors: 🔸 Risk/reward trade-offs are related to the relationship that exists between the degree of risk an investor takes and the potential reward for the investment. larger-risk investments have the potential for greater returns, but they also have the potential for greater losses as well. Lower-risk investments, on the other hand, have the potential for lower profits, but also for fewer losses. 🔸 The risk tolerance and investment objectives of investors will change over time. Younger investors who are just starting out are more likely to be on the risk/reward spectrum, willing to take on more risk in exchange for the chance of larger profits. This is because they have a longer time horizon with which to invest and recoup from losses. Investors may grow more risk-averse and migrate to the left side of the spectrum as they near retirement. They may need to start withdrawing from their assets to fund their retirement, so they want to protect their money and avoid large losses. ✨Phases of the Investment Life Cycle: ↪️ Here is a breakdown of the investment life cycle and how risk/reward trade-offs may change at each stage: 1️⃣ Accumulation Phase In the initial stage, known as the accumulation phase, individuals find themselves with a modest net worth relative to their liabilities. Their investment portfolio tends to be limited and less diversified. Goals often include funding education, purchasing a home, and laying the groundwork for future financial independence. With a long time horizon and potential income growth, investors in this phase can afford to explore high-return, high-risk capital gain-oriented investments. 2️⃣ Consolidation Phase As individuals progress through their mid-to-late careers, they enter the consolidation phase. Characterized by income surpassing expenses, this period, although still distant from retirement, prompts a shift towards capital preservation. Investors start balancing high capital gain investments with lower-risk assets, creating a more stable and resilient portfolio. 3️⃣ Spending Phase The spending phase marks a transition when living expenses are no longer sustained by earned income but by accumulated assets, such as investments and retirement funds. With a decreased likelihood of returning to work, stability becomes paramount in the investment portfolio. Preferences shift towards investments generating steady income through dividends, interest, and rentals. Despite the reduced time horizon, some growth-focused investments are retained to hedge against inflation. 4️⃣ Gifting Phase In the final phase, the gifting phase, investors realize an abundance of assets beyond personal needs. At this juncture, the purpose of investments may evolve, focusing on leaving a lasting legacy or supporting charitable causes. 📊 Importance: It's like having a guide for your financial journey when you understand the investor life cycle. It assists you in choosing, depending on your comfort level with danger, between an exhilarating, high-risk ride and a more steady, smooth road. Understanding the various investment phases is essential as it influences your willingness to accept risk. It's similar to changing your game plan as you move through different stages of life, such as the exuberant early years and the more measured approach as you near retirement. Put simply, understanding the investor life cycle assists you at every stage in reaching your financial objectives and making wise decisions. By @Money_Dictators on @TradingView Platform
NASDAQ:MSFTEducation
by Money_Dictators
1
OvertradingOvertrading is a common issue in trading and can lead to significant losses. It occurs when a trader excessively opens and manages positions, often due to psychological and emotional factors. To avoid overtrading, consider the following strategies: Establish a Solid Trading Plan: Having a well-defined trading plan is crucial. Your plan should outline entry and exit strategies, risk management rules, and criteria for position sizing. Stick to this plan and avoid deviating from it due to emotional impulses. Risk Management: Limit the amount of capital you risk on each trade. A common guideline is not to risk more than 1-2% of your total trading capital on a single trade. This approach helps protect your capital from significant losses. Diversify Your Portfolio: Avoid putting all your capital into a single trade or asset. Diversifying your investments across different assets can help spread risk and reduce the temptation to overtrade a single asset. Set Trading Hours: Define specific trading hours or sessions during which you'll be actively trading. Outside of these hours, avoid opening new positions or making impulsive decisions. This approach can help maintain discipline. Emotional Control: Recognize the emotional triggers that lead to overtrading, such as desperation, overconfidence, or impatience. When you feel these emotions, take a step back from trading, focus on your trading plan, and practice mindfulness techniques to manage emotions. Monitor Your Trading Frequency: Keep track of the number of trades you execute in a day or week. If you notice you're trading excessively, it's a warning sign of overtrading. Review your trading activities and identify what drove you to make those trades. Limit the Number of Open Positions: Setting a maximum number of concurrent open positions can prevent overtrading. This restriction forces you to be selective and prioritize quality over quantity. Use Stop-Loss and Take-Profit Orders: Implementing stop-loss and take-profit orders can automate your exit strategy. This reduces the temptation to constantly monitor and adjust trades, which can lead to overtrading. Trade Size: Be mindful of your position size relative to your account balance. Avoid increasing position sizes disproportionately after a series of wins. Stick to a consistent position sizing strategy that aligns with your risk tolerance. Take Regular Breaks: Trading for extended periods can lead to fatigue and emotional decision-making. Schedule breaks to clear your mind and refocus your trading strategy. Remember, trading is a long-term endeavor, and success is not determined by individual trades but by your overall performance. Avoid the allure of quick profits and stay disciplined in following your trading plan to mitigate the risks associated with overtrading. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
The psychology of tradingThe psychology of trading presents one of the most significant challenges, especially for day traders. Initially, when individuals enter the world of trading, they primarily focus on profit. Their thoughts are consumed by calculating how much they can earn. This focus on profit is entirely valid, as trading is, ultimately, a means to make money. However, the real trick lies in developing the mindset of a speculator. Over time, traders must shift their focus from profit to potential risk. The "Risk/Reward" calculator should be constantly running in their minds. If the potential for profit in a particular trade is low, then it's usually best to avoid it. However, for beginners, it often doesn't work this way. Their unaccustomed brains are constantly bombarded by new emotions, with the primary culprits being greed and fear. These emotions lead to continuous, uncontrollable reactions. To become a professional trader, one must learn to set aside these emotions. This is easier said than done. Everyone emphasises removing emotions from trading, but the reality is that emotions are deeply rooted in the subconscious, often overriding conscious efforts. To address this problem, a deeper understanding is needed, looking at the fundamental aspects. Fear: Fear arises when confronted with the unknown. Take the example of children's fear of the dark. Darkness was a historic human adversary because it harbored predators that could potentially harm people. For a long time, human civilization lacked the technological means to repel these predators. In our instincts, fear equates to death. This explains the intense reaction generated by fear. In modern times, cities are illuminated day and night, and predators are scarce. However, fear persists as if it's programmed into us. Why aren't adults afraid of the dark? They know there is nothing there. They are familiar with the situation, and this knowledge breeds confidence, mitigating fear. Greed: Understanding the roots of greed is a more intricate task. In essence, greed can be traced back to a form of fear. Imagine that our ancestors spent hundreds of thousands of years in conditions of resource scarcity. Food, clothing, warmth, and more were essential for survival. Life depended on securing these resources. If you couldn't feed yourself, you'd perish; if you were cold, you'd die. Death, in this context, is equated with fear. To save your life, you needed more resources. To ensure an abundance of resources, you had to strive tirelessly. Over millennia, for the sake of practicality and daily life, humanity introduced money as a means to acquire these resources. That's when greed became linked to money. In modern times, there is no resource shortage, but this deeply rooted emotion persists as part of our nature. Excessive greed typically leads to impulsive actions. While impulsiveness can be advantageous in some areas, it is detrimental in trading, where it often results in errors and losses. So, what can traders do to address these challenges? As previously discussed, it all boils down to fear, which can be conquered through familiarity. Familiarity, in this context, refers to understanding the relationships between different trading actions and their corresponding outcomes. Our field is entwined with probabilities. Mathematics underpins virtually every aspect of trading. To be profitable, traders must strive for more positive outcomes. Therefore, the key is to identify the chain of actions and consequences that leads to favorable results.
BITSTAMP:BTCUSDEducation
by Crypto4light
10 Proven Tips for TradersIn the fast-paced world of day trading, staying ahead of the curve is essential. If you appreciate our charts, give us a quick 💜💜 Here are ten time-tested strategies to guide your journey towards trading success: 1. Craft a Concrete Plan: A meticulously planned strategy is your foundation. Clearly define what, how much, and when you will trade. Rushing into trades without a plan can lead to costly mistakes. 2. Prioritize Risk Management: Risk management is paramount. Establish a robust strategy, including stop-loss levels and trusted brokers. Safeguarding your capital ensures longevity in the trading game. 3. Leverage Technology: Embrace cutting-edge tools. Utilize charting platforms for market analysis and backtest your strategies against historical data. Mobile apps offer real-time market access, empowering you to make informed decisions. 4. Embrace Continuous Learning: Stay nimble by staying informed. Keep up with news, trading literature, and emerging market trends. Adaptability is key in evolving markets like cryptocurrencies. 5. Rely on Facts, Not Emotions: Base your decisions on cold, hard facts. Emotional impulses can cloud your judgment. Trust your data-backed strategies, preventing impulsive and regrettable actions. 6. Set Entry and Exit Rules: Discipline is your ally. Stick unwaveringly to your predefined entry and exit points. Deviating from your plan risks unnecessary losses. 7. Strategy Over Money: Focus on strategy execution, not profits. Concentrating solely on money can lead to hasty, ill-informed decisions. Trust your strategy; profits will naturally follow. 8. Own Your Decisions: Accept responsibility for both wins and losses. Learn from mistakes constructively. Pinpoint errors, adjust your approach, and fortify your strategy for future trades. 9. Maintain a Detailed Trade Journal: Record every trade meticulously. Modern software simplifies this process, offering insights into your past trades. A trading journal is your compass, guiding you towards informed decisions. 10. Recognize When to Pause: Acknowledge when your strategy falters. Avoid chasing losses; instead, recalibrate your approach. Knowing when to step back is a hallmark of a seasoned trader. Continuously refining your skills with these principles can elevate your day trading prowess. Stay disciplined, adapt to the markets, and success will undoubtedly follow. Happy trading! 💜
Education
by Vestinda
Market narrativesWhen analyzing the crypto market, we often use the concept of a "market narrative." However, it's essential to understand that these narratives are not solely shaped by price movements and chart manipulations but are also influenced by external factors. In the world of cryptocurrencies, this market is significantly different from traditional financial markets. It is particularly susceptible to a wide range of influences from various sources, including news, social media, online communities, and the development trajectories of Tier-1 projects. Event-Driven Influence: The crypto market's relatively low liquidity makes it prone to sudden changes in prices triggered by various events. These events encompass exchange hacks, regulatory alterations, technical updates, and other news that significantly influence market narratives and participant activity. Social Media Impact: Popular social media platforms play a pivotal role in shaping market narratives. These platforms enable the formation of communities where opinions are shared, rumors spread, and public sentiment is influenced. Notably, the initiation of verbal battles and provocations within comment sections can manipulate public opinion. These conversations often seek to confirm existing beliefs and reinforce the primary narrative, sometimes even at a subconscious level. Media and Blogs: Thematic news websites and blogs, along with influencers, can wield considerable influence over market narratives through articles, reviews, research publications, interviews, and commentary. It's worth noting that some individuals and companies conduct paid PR campaigns for projects, and these campaigns may sometimes involve deceitful practices. Institutional Participation: Actions taken by significant players, such as institutional investors, cryptocurrency companies, funds, and media figures, can escalate interest in the information sphere. For instance, news of a major investor or fund purchasing tokens from a specific project can lead to increased interest, heightened volatility, and price fluctuations. Narratives surrounding developments like ETF adoption or Bakkt can serve as hype builders, even though underlying issues within the industry may still loom large. Guidelines for Interacting with Market Narratives: Research and Verification: Avoid accepting information at face value. Conduct thorough research and cross-verify news from multiple sources before making any decisions. Risk Assessment: Acknowledge the extreme volatility in the crypto market and objectively calculate risk-reward ratios. The size of positions should be determined based on an assessment of fundamental indicators and project metrics. Never risk more than you can afford to lose. Develop Your Investment Strategy: Define an investment strategy that aligns with your goals, timeframes, and risk tolerance. Understanding the fundamental aspects of blockchain projects and technology is vital, as it goes beyond market narratives and can be the key to informed investment decisions. Connect with Like-Minded Individuals: Given the vastness of the industry, it's challenging to track every change and update by yourself. Engage with a community of peers to quickly access necessary information and learn from the experiences of others, which can directly impact your investment strategy. Embrace Long-Term Goals: Instead of trying to predict short-term price changes or immediate hype-driven surges, adopt a long-term perspective of the crypto market. Long-term plans and strategies are less susceptible to volatility and associated risks. Understanding a project's fundamentals and metrics can provide insights into its long-term potential, which often provides more valuable information than short-term market fluctuations after a listing on a cryptocurrency exchange. In summary, to navigate the crypto market effectively, it's vital to be cautious, well-informed, and maintain a long-term perspective, all while actively participating in the crypto community to stay updated and share experiences. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
20 trading rules1. A bad trade or a string of bad trades doesn't mean anything. 2. Don't focus on the last deal: it has nothing to do with the next one. 3. Always follow the trading plan: in good and bad times. 4. Focus on one trading pair. 5. In this business, losses are inevitable: in order to succeed in trading, you need to learn to accept risks. Reducing risks will help eliminate anxiety and a source of stress. 6. You need to understand what kind of trader you are: which trading discipline is best for you. If you are slow to react to price movements, then short-term or swing trading may be better for you. If you are able to quickly respond to price movements, intraday trading is probably suitable for you. 7. Trading without a plan and without using a protective stop loss order, excessive use of a deposit - all this can bury you as a trader. 8. Never make anything absolute in trading - we work with probabilities. Every transaction must be considered in terms of probabilities. Nobody knows where the price will go. Give up perfection in trading. You can't be right all the time. If we have a sound trading model and the ability to manage risk, the outcome of a trade should not weigh so heavily on our psyche. 9. You need to leave your ego out of the market. 10. Lower time frames narrow the picture and create a misleading picture of the current state of the market, so you should focus on long-term charts even if you are a day trader. 11. Expectations should be down to earth: there is no need to set inflated goals, this can lead to rash decisions and unsuccessful transactions. If you cannot achieve an inflated goal within a week , then this may cause a deviation from the plan and force events. 12. Success in trading requires consistency, not large trading positions. Even with a small starting capital, you can achieve amazing results if you: follow the rules of risk management , act according to a trading plan, reinvest income (compound interest method). 13. Do not complicate the work process using different approaches and strategies. The simple system makes trading less stressful and more profitable. Any strategy will have losing trades, but when those losses are within acceptable expectations for your system, the law of averages will guide you through the drawdown periods and you will make money. 14. If the system does not show results in the long term, then it is worth looking for the reason. You need to find your weaknesses and bad habits. 15. Trading should not take up all your free time. Presence is only required at specific times, which are coordinated with the economic calendar . Relax and mind your own business. Avoid addiction to trading. 16. Excessive trading does not lead to anything good. Limit yourself only to those models that are specified in your trading strategy . Understand that the market will provide new opportunities and setups. Relax and remember to have realistic expectations. 17. You should not be in front of charts during periods when you are not feeling the best or are in a bad mood. This may result in a desire to take out your anger on the market. This approach is fatal for a trader. Take a break and rest. 18. It is necessary to keep a trading journal and record in it not only transactions, but also your experiences at the time of entering and exiting a transaction. Another reason to keep a trading journal is to try to stay organized and disciplined. Following a trading plan is much more difficult than it seems. 19. A professional trader should open a trading terminal like a 6th grade mechanic approaches the machine - calmly, without emotions, clearly knowing what he will be doing for the next few hours, when all actions are brought to automaticity. 20. Every professional speculator hides three psychotypes of personality: analyst, trader and gambler. A trader will be successful by ignoring the gambler and listening to the analyst. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
Unlocking The Trader's PyramidIn the realm of trading, success isn't solely derived from intricate technical analysis. Surprisingly, the key to triumph lies in an unconventional ratio: 20% technical analysis and a staggering 80% blend of emotions, discipline, psychology, risk management, and money management. If you appreciate our charts, give us a quick 💜💜 The 20%: Technical Expertise Yes, technical analysis is crucial, comprising the foundational 20% of your crypto trading journey. This segment encompasses chart patterns, indicators, and market trends. However, it's not the sole determinant of your success. The 80%: The Pillars of Triumph The real magic happens within the 80%. Embracing your emotions, mastering discipline, understanding market psychology, and implementing astute risk and money management techniques form the cornerstone of your success. Emotional intelligence allows you to navigate market highs and lows, discipline ensures you stick to your strategies, and psychological resilience helps you stay steady amidst volatility. Effective risk and money management safeguard your capital and nurture your profits. This symbiotic blend of technical expertise and emotional intelligence propels you towards trading mastery. By allocating your focus and energy according to this pyramid, you're not just trading; you're sculpting success . Let this balanced approach be your guiding light in the trading journey! Happy trading! 💜
Education
by Vestinda
6
Fear Fear is a natural human response to potential threats, serving as a vital psychological mechanism that safeguards us from danger. This reaction shouldn't be a source of shame, yet it's also crucial not to let fear dominate every aspect of life. Excessive worry about potential outcomes can lead to a diminished quality of life. However, fear can also be a valuable tool that keeps us attentive in specific situations. Fear can be referred to by various names, such as apprehension, unease, concern, or tension. When an individual perceives a threat, one of these emotions comes into play. It's simple: no threat, no fear. This emotional and physical sensation should be recognized as having its limits, and the key is knowing how to manage it effectively. Now, how does fear manifest in the realm of trading? In trading, fear is a common experience for every trader. It's universal! However, some traders learn to master it, while others are overcome by it. One of the most significant fears in trading is the fear of initiating a trade. The thoughts and emotions that urge you to enter a position can be forceful enough to sow doubt in your trading setup. This can be due to a lack of chart data, the fear of financial losses, or the simple fear of making an error. Pervasive self-doubt won't lead to favorable outcomes in the long run. Overcoming this fear is essential, and having a well-defined trading strategy is pivotal. It's a place where elements like risk management, trading timing, factors, timeframes, triggers, tools, and the rules you must adhere to are clearly outlined. If any of these components are absent from your setup, then what's the point of continuing? Why establish a trading strategy if you don't intend to follow it? It's essential to set clear boundaries and acceptable losses, fully understand them, and accept them. When a 1% loss of your capital no longer feels emotionally burdensome, you'll be in a better position to analyze situations rationally and make informed decisions. Another common fear among beginners is the trepidation of trading with real money. This fear is essentially the fear of losing. While practicing on a demo account is beneficial for gaining experience and refining your trading style, it's crucial to recognize that a demo account can't fully prepare you for real trading. Don't be afraid to transition to real money trading. Some traders profit, while others pay with time. Consider your long-term prospects and where you envision yourself in one, five, or ten years. Challenge yourself to step out of your comfort zone. Control your emotions, including fear. Make confident and well-informed decisions, and consistently adhere to the rules you've established. Remember, every journey starts with that initial step. • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
COINBASE:BTCUSDEducation
by Crypto4light
AUDIO/USDT Psychology. Accumulation. Distribution. Local fractalOne of many such cryptocurrencies whose price makes a huge profit from early accumulation. If you want to earn from a distance—buy and accumulate positions before the "promising crowd hype" or when working on similar instruments skillfully limit your potential losses. Coin Market: Audius AUDIO It's worth noting that a local fractal (the smart ones sell to the stupid ones) is forming in the distribution zone, which could potentially work (repeat). To sell it is necessary to make an "interest to earn" (to attract the less clever "traders"), in other words, waves to the growth of +500% on the secondary trends to attract attention. It is possible to make money on this, but with the condition of limiting potential losses. On such coins and at such values, it is rational to use stops, even at the "bottom" of the channel, if the price falls there. It's worth noting that you shouldn't trade marginally (including shorting) on such coins with such liquidity and price. The liquidity allows you to manipulate both ways making margin calls. Locally, this potential reversal zone looks as follows (the marker shows the direction of price movement) . Coin as an example. There are many of these. As a rule, people notice such coins when investors need to get rid of them rather than buy them. Greed and people's cloned mental behavior do the trick. New market entrants buy, old market entrants sell and then buy at a higher price (typical hamster behavior) or wait for even higher profits. Since people sometimes write to me asking me to consider such hamster coins when HYIP (the news "diarrhea" phase for selling promising coins) is going on, I decided to consider. Again, make money on this by "trading local price movements". One must work as a trader and not buy because of news background, promising super profits in distribution and expecting "cosmic targets". You need to limit your losses from the start and not be greedy. Coin as an example. The name of the crypto coin and the legend from the creators doesn't matter much. It's all the same and created for the same thing (earning from speculation). Always when trading an old/new instrument, you need to understand where the accumulation is, where the distribution is. And also, where the price is in the main trend.
by SpartaBTC
18
Trading Psychology : 5 Questions to Ask your self Before TradingWhen it comes to trading, it's often said that success is not just about having a winning strategy; it's equally, if not more, about mastering the psychological aspects of trading. when i started trading , I struggled with this concept, and it led to blown accounts, financial losses, and a destruction my mental health. However, through perseverance, reading books , and self-improvement, I managed to get my expectations and psychology in check, and the transformation in my trading results was remarkable. In this article, I'll share the five crucial questions I ask myself before making any trade. These questions have helped me develop a disciplined and resilient trading mindset, and I believe they can do the same for you. 1. Does this trade fit my trading plan? Before even considering a trade, it's vital to have a well-defined trading plan. Ask yourself if the trade aligns with your plan's criteria. This question reminds you to stick to your strategy and avoid impulsive decisions driven by market noise. 2. Am I mentally and financially ready to accept the risk of the trade? Trading is a risky activity , its important to know if you are mentally able to handle potential losses and also it's crucial to assess whether you are mentally prepared to trade , if you are not feeling good mentally don't trade period. , Additionally, ensure that you have the necessary financial resources to accept the risk involved in the trade. Trading should never jeopardize your financial stability. 3. Am I trading based on FOMO (Fear of Missing Out) or a well-thought-out plan? FOMO can be a trader's worst enemy. Ask yourself if you are entering a trade out of fear that you might miss out on an opportunity. A well-thought-out plan should drive your decisions, not emotions. always remember that EVERY SINGLE DAY there are new and better opportunities in the market . 4. Am I experiencing overconfidence (euphoria)? FOMO can be a trader's worst enemy. Ask yourself if you're entering a trade out of the fear of missing out on an opportunity. A well-thought-out plan should be the driving force behind your decisions, not emotional impulses. Overconfidence can lead to reckless trading. Evaluate your current state of mind. Are you feeling overly confident, perhaps due to recent successes? Remember that the market can be unpredictable, and overconfidence can cloud your judgment. remember that EVERY SINGLE DAY there are new and better opportunities in the market you are not missing out on anything you are just waiting for the best opportunity that fits your trading rules and strategy . 5. Am I in the present moment (mindful)? Trading, as Mark Douglas beautifully emphasizes in "Trading in the Zone," demands a state of mindfulness. Are you fully immersed in the present trade, or do your thoughts wander elsewhere? Staying in the zone of mindfulness enables you to make grounded and rational decisions while responding adeptly to dynamic market shifts. ask yourself Are you fully engaged in the trade at hand, or are your thoughts scattered? Staying in the present moment allows you to make more rational decisions and react effectively to market changes.
BITSTAMP:BTCUSDEducation
by xAB777
Meditations for the Modern TraderDrawing inspiration from the timeless wisdom of Marcus Aurelius, this guide distills ancient Stoic principles into modern trading strategies. Dive in to discover how to strengthen your trading mindset and unlock your unique edge. 1. On Emotion and the Markets Remember: The markets are indifferent to your emotions. Anxiety, joy, desperation – these are constructs of your own mind and have no bearing on the ebb and flow of currencies or stocks. Allow your decision-making to be guided not by the heat of the moment, but by calculated, unbiased reasoning. 2. The Impermanence of Success and Failure Today you may rejoice in your gains, yet tomorrow, you might lament your losses. Both states are transient, just as day turns to night. Strive, then, not for constant triumph, but for a balanced mind that remains unperturbed by these shifts. 3. Humility in Profit, Acceptance in Loss Each transaction in the market offers an opportunity to learn humility and acceptance. When you profit, do not let arrogance cloud your judgment. When you lose, do not fall into the abyss of self-pity. Recognize that both are integral aspects of the trader's journey. 4. The Futility of Prediction Remember that no man can predict the movements of the market with unerring accuracy. Do not let fear of the unknown cripple your actions. Instead, make educated decisions based on research and your understanding of the market, accepting the inherent uncertainty of the trade. 5. On Overindulgence Excessive trading is akin to overindulgence in food or drink - it may bring temporary satisfaction but can lead to long-term harm. Moderation is key. Know when to act and when to remain still. 6. The Trap of Comparisons Comparing oneself to others is a distraction and an invitation to distress. Your path in trading is your own and must not be dictated by another’s success or failure. Seek to better yourself and not simply to surpass others. 7. Learning From Mistakes Each mistake is an opportunity for growth. Instead of fearing errors, embrace them as teachers. Learn from them, adjust your strategies, and forge ahead with newfound knowledge. 8. Acceptance of Market Forces Just as one must accept the changing of the seasons, accept the cycles of the market. There will be times of plenty and times of scarcity. In both, stay steadfast and remember that this, too, shall pass. 9. The Power of Patience Do not expect instant success in your trading endeavors. Mastery comes with time and experience. Be patient with your progress and do not rush the journey. The fruit of patience is often sweet. 10. The Mind as the Trader's Greatest Asset Your greatest tool in trading is not a strategy or algorithm, but your mind. Cultivate it with knowledge, exercise it with practice, and keep it balanced with mindfulness. In a balanced mind, reasoned decision-making thrives. Trade with wisdom, patience, and acceptance, and let not the waves of market tides disturb your inner peace. Embrace the journey with all its ups and downs, for this is the path of the enlightened trader. Which Stoic principle resonates most with your trading approach?
TVC:DXYEducation
by natron
What is FOMO? Syndrome of lost profit in tradingFOMO is the lost profit syndrome. Now it is especially common due to the popularity of smartphones and social networks. Many are simultaneously afraid of social isolation and worried about lost opportunities. A similar situation is possible in trading. As soon as traders see a bullish trend, they start opening trades and buying those assets that match their analysis. In addition, a lot of information, thoughts and impressions are concentrated around us, which only aggravates the situation. Let's figure out how to deal with such an obsessive fear. The syndrome of lost benefit is a strong fear of missing an important event or a profitable opportunity. This fear is especially pronounced against the background of the bright life of friends and acquaintances. After all, then there is a feeling that you are wasting time in vain. SUVs are directly related to dissatisfaction with personal life, and social networks only increase the unpleasant state. The greater the dissatisfaction, the greater the desire to find others. And the need for new information turns into intrusive thoughts. FOMO is distinguished by the following features: -Frequent fear of missing something important; -Constant use of language turns like "everything but me"; -The desire to delve into all forms of social communication (attend all the parties, go to concerts, etc.); -Obsessive desire to always be liked by others, accept praise and be available for communication; -The need to constantly update the feed on Facebook, Instagram and other social networks. How to get rid of lost profit syndrome? -Constantly responding to messages and checking the crypto rate every 2 minutes, you waste a lot of time. Therefore, you should establish clear rules for using a PC and a smartphone: -remove unnecessary programs and turn off pop-up messages in programs that are not of great importance; -leave groups and unsubscribe from accounts that are not useful to you; -refuse unnecessary e-mails; -check news and stock quotes no more than twice a day (for example, in the morning and in the evening); -do not take your smartphone to bed and do not sit on the Internet before falling asleep; make two separate schedules - for working with personal and business messages. Five tips — how to avoid the FOMO syndrome as an investor Instead of succumbing to the fear of missing out, you can change your life for the better and find success in the cryptocurrency field. Here are our 5 tips on how to avoid FOMO affecting your investing. 1. Forget about the past What has already happened in the market is irrelevant from FOMO's point of view. There are not many investors who look at past quotes. Successful investors always take the time to analyze when opening a trade: they look at the current state of assets and assess their prospects in the future based on past price charts. The idea that the chance can be one for a lifetime is completely false. There are always and always will be profitable opportunities, just as the market always was and always will be. Charts will never tell you what an asset will be like in a year, two or five years. They simply provide information about events and possible future probabilities. Therefore, competent long-term investors understand that it is never too late to buy assets, it is important to navigate them and make balanced decisions. 2. Buy when everyone is selling and sell when everyone else is buying There is an opinion that on the stock exchange it is necessary to go against the trend. Of course, it is easy to talk about it, but to translate all this into reality is much more difficult. After all, the effect of the lost profit syndrome only increases when you do not invest in an asset that is growing. The "anti-cyclical" behavior is explained as follows: the most successful purchases with possible high returns occur during a fall in the rate and general panic, and sales - during a rise in value, when everyone is eager to buy bitcoin or another crypto as soon as possible. However, this tactic does not at all mean a ban on buying tokens in an uptrend. It is inextricably linked to the next tip, so it should be taken in the same context. 3. Set clear goals Remember the chosen strategy and determine the goals when buying this or that cryptocurrency. One possible option is target cost. If the stock price has reached your indicator, feel free to sell the asset and lock in the profit, or set a stop loss, with the hope that the trend will continue. Many traders use a simple rule - it is better to receive 4 thousand dollars 10 times than to wait six months for 50 pieces. If the deal in a short period of time brings 50% profit or more, it is better to close it. And this should become a proven mechanism. Usually, when the value of a cryptocurrency starts to increase rapidly, many market participants buy it. You can understand this in time and, having sold the asset, watch the further growth that is already taking place by inertia. The growth will stop only when the rest finally realizes that the coin is "overheated" and no longer has the potential for growth. Conclusion: While most buy the coin on the rise due to FOMO, you sell the crypto and get your profit. As for purchases at a reduced price, not everything is so smooth either. After all, not everything will be so profitable that it has become cheaper. Here it is necessary to look at the reasons for the price drop on the chart. If unforeseen circumstances have occurred, for example, a lawsuit by the state regulator in court, then you need to determine what value of the asset will become the most attractive for you in the current period, or how critical the situation with the lawsuit is. Of course, I mentioned isolated cases here. In order to analyze all possible situations in the market, you need to publish an entire online almanac. Each case has a common feature — the psychology of human behavior. Therefore, do not give in to general panic or joy. 4. If there are no investment ideas, wait The famous stock speculator and Wall Street investor Jesse Livermore used to say the following: "Big money doesn't buy or sell, big money waits"! It is true, because one day you will not be able to find more interesting coins to invest. There will be very few of them, and the crypto market will continue to conquer new heights. 5. Your strategy is the main thing If you managed to accumulate knowledge in some area of trading, learned SmartMoney analysis, know how to set goals and evaluate the potential of a particular token, it will bear fruit, but continue to develop further, because there are no limits to perfection! :) New trading tools, technologies and new tokens appear every day that promise to bring significant profits and make cryptocurrency trading as convenient as possible. Do not follow the tricks of speculators. Become the best in your field. Keep a clear mind and don't be influenced by the masses. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
8
80/20 - The Pareto Principle Created by an economist in the 19th century, the Pareto Principle has found its way into all different areas of life and is still used to this day. The basic idea is that for many systems, 80% of the effects come from 20% of the causes. In other words, a small number of factors have a large impact on the results. This post will go into further depth on this principle and will also explain how this concept can be applied to trading in a number of ways, making for more efficient and effective use of your productivity, time, and energy. What is the Pareto Principle? This was developed during the 19th century by an Italian economist named Vilfredo Pareto. He noted during the course of his studies that 80% of the land in Italy belonged to about 20% of the population. The 80/20 ratio even became prevalent in his life, and he also noticed that around 20% of the pea pods in his garden yielded around 80% of the peas. This has been found to be true in key aspects of life and is even famously known as the '80/20 rule'. Other examples of this are that 80% of a company's sales are produced by 20% of their products or services, and 80% of news coverage is based on 20% of world events, etc. So how can this idea be applied in the trading world? 80/20: The Pareto Principle In Trading In trading, the Pareto Principle can be applied in several ways. There is a general understanding that in the markets, on average, around 80% of our profits come from around 20% of trades. Therefore, it is important to focus on making a small number of high-quality trades rather than a large number of low-quality trades. By doing this, you can achieve better results with less effort. It is very easy to get caught up in the day-to-day grind of monitoring the markets, placing trades, and managing positions. However, this can quickly consume more time than needed if you let it. Using an effective trading method that is also very easy to understand and implement will give you the mental clarity and time to focus 80% on money management and discipline (we will get to these points later) while only needing about 20% of your mental energy for analysing the markets and finding trades. A lot of traders never even get to this point because they are constantly trying to figure out how to make sense of their trading system due to their current system being unnecessarily complicated. Time Management The 80/20 rule can also be applied to time management in trading. One way to do this as a trader is to spend the most time optimising the 20% of activities that generate 80% of your results. For example, if you spend a lot of time analysing data and know that it has a big impact on your results, you may want to focus on making sure that you spend enough time doing this activity. On the other hand, if you find that you spend a lot of time on activities that don’t have a big impact on your results, you may want to cut back on these activities and focus on the ones that do. To apply the 80/20 rule in this way, it can be helpful to track how you spend your time and the results that you achieve from each activity. This will allow you to identify which 20% of your activities are the most productive and focus your efforts on these activities. By optimising your time management processes, you can use your time more effectively and free up more time to focus on the most important aspects of your trading, which will ultimately achieve better results. A popular misconception, especially among beginner traders, is that trading more and having high activity in the markets is good, which is in fact the opposite. Having high activity in the markets is not only potentially costly due to the transaction costs you need to pay your broker or exchange provider, but high activity in the markets can also cause the trader to overtrade, which leads to the trader taking many trade setups to the extent that he or she loses their market edge. That's due to the trader doing less research on each position and getting clouded judgement as a result of too much screen time. While there is no exact number for how much time you should spend trading, the 80/20 rule can be a helpful guide. For example, if you want to cut back on your trading work-life balance, you may want to focus on only trading during the 20% of the day that is most active. This approach can help you effectively manage your time and focus your efforts on the most important part of the trading process. By only trading for a few hours each day, you can free up more time to focus on other aspects of your life. Less is More, More is Less Another way to apply the Pareto Principle to trading, for example, in Forex trading, is to focus on the 20% of currency pairs that generate 80% of the results. This means that you would only trade a few select currency pairs rather than trying to trade all of them. There are many forex pairs to choose from, and unfortunately, traders make the mistake of trying to trade too many pairs instead of choosing a handful of pairs at most to learn and really get familiar with those pairs as much as possible. Consistency in trading comes from consistent trial and error with the same few products over and over again, and this is very difficult to do if you decide to trade random pairs constantly. Another example of applying the 80/20 rule when choosing your assets is to focus on the 20% of assets that are most correlated with your trading strategy. For example, if you have a long-term trend-following strategy, you may want to focus on pairs that have a strong historical correlation with long-term trends. The Pareto Principle is helpful for many traders who want to improve their trading performance. There are many other ways to apply it to trading. The important thing is to find the trading method that works best for you and your own trading style. Here are some simple examples of how you can use the Pareto Rule in trading: Trending Markets Occur Roughly Only 20% of the Time Strong market trends tend to occur slightly more than 20% of the time, leaving the markets moving sideways nearly 80% of the time. If you are a trend trader, it is very important to know and understand this, as you will adjust your strategy and manage your risks to mitigate that 80%, capitalising on the 20% trend period where (hopefully) you can generate more profits than losses from fewer trades. Knowing and understanding this will also help you not force trades that aren't there. One of the main reasons why traders (especially trend traders) lose money is that they lose patience and trade looking for a big move to happen while the market is just consolidating sideways and not doing anything. 80% Losses 20% Wins That's right. What if I told you that you can be profitable by winning only 20% of your trades and going through times where you can experience at least five losing trades in a row? You are probably reading this, and when I say it is possible, you do not believe me (especially if you are new to trading), and I completely understand (don't worry, there will be proof of this). Another area where the 80/20 rule can be applied in trading is risk and money management. Unfortunately, not enough traders understand how important risk and money management are in trading and that you must have a strict and disciplined approach to them. Trading is not about just being right or wrong; it is about how much money you take from the market when you are right and how much money you give back to the market when you are wrong. As mentioned previously above, around 80% of our profits come from around 20% of trades, so when you really think about it, this should not sound so surprising to you. Still don't believe me? No worries! Let's see together that you can be right only 20% of the time and still make money. As you can see above, there was still a 4.83% increase in account balance after only two trades were won out of ten. The art of trading is to run your profits and cut your losses, hence why the 80/20 rule works if you use it to your advantage. 80% Psychology 20% Trading Method This is another example of the 80/20 principle. You should spend 80% of your time and energy on learning psychological control and capital management skills. For the remaining 20%, you can spend it on chart analysis and trading. If you trust and persevere with this, you will see significant changes in the way you trade. You will feel more comfortable, more confident, and safer, and ultimately see more consistency in your trading. Many traders, unfortunately, never realise this. The reason is that they go all in trying to find a 'holy grail' strategy that will help them earn riches quickly and easily. And if the current method does not help them earn money, they will find another method, and the never-ending circle just keeps repeating until the trader quits for good. The Pareto Principle is a powerful tool that can be used in many different areas of trading. Focus your energy and mind on the things that earn you money (the 20%, not the other 80%). It is great to work hard, but you must also work smart. What you need is a simple trading strategy and method. This is to eliminate the emotional effects as much as possible by not spending too much time in front of your screen. By applying the 80/20 rule to your trading skills, strategy, risk management, asset selection, and time management, you can drastically improve your trading performance and achieve better results. BluetonaFX
Education
by BluetonaFX
2
HOW TO Overcome the CYBERFOMO. Life as a Chart.Hello Friends! In the midst of volatile market periods like the present, I pen these words with a deep understanding of their significance. Today, numerous coins have soared by +100%, leaving many behind in their meteoric rise. Perhaps you were among those who went "short" and faced losses. The emotional turmoil in such situations is palpable, and I wish to address it. Maybe I will be able to help you get over the FOMO or the stress of a loss. At the end of this article, I'll share specific methods for interacting with your psyche, but for now - I'll break down how it works. --------------------- Part 1. Intro --------------------- Every trader is familiar with the chart that constantly flickers before them. But have you ever pondered its deeper meaning? What if this chart was more than just numbers and trends? What if it mirrored life itself? Before we delve deeper, I invite you to watch this video . It beautifully encapsulates an individual's growth journey. We all aim for the pinnacle, but the path is rarely straightforward. A swift ascent demands immense strength, critical mass and momentum. Without these, the rise is short-lived, much like an airplane without the necessary thrust. Don't get me wrong, you can jump out with a parachute during the plane crash, if you have time. And if you have your parachute ready. But you'll still land. Just softer. Anyways. What's my point? --------------------- Part 2. The Chart of Life --------------------- You can witness life by looking at a trading chart. I won't go into the details of the fundamentals of market relationships and how it relates to evolution today. Just think of a chart as the ascent of a person. A birth. All of us have different initial conditions. Somebody's born into a famous family. A lot of people know about you instantly. You get a lot of attention. You feel loved, cared for. Large sums of money are deposited for your future, university, etc. Everyone gives you gifts. Others are born into ordinary families, or poor families. And not many people worry about these children. Mostly only their parents believe in them. And even that, not always. Then the child grows up. At first he can not take responsibility for himself, so adults support him so far. From time to time he faces difficulties, but he is helped and supported. Or not. In this case, the child falls, and less and less believes in himself, forming complexes. Passing such life lessons, he becomes an adult. He already knows how to deduce his own lessons and decide in which direction he will go. He makes friends, is noticed at work, paid money, trusted. But a crisis happens inevitably, sometimes without a single visible hint. Difficult relationships, family problems, loss of loved ones, loss of money. He falls into darkness. Sometimes he manages to get out, briefly feeling better for a while, but soon the realization comes that it was not yet the end of the darkness. Falling again. And again. And again. And now he's at his lowest point, Nadir. Almost no one believes in him. Except.. Except those who have seen in him something that lies beyond his appearance. Those who have seen the light within him. Still dim, but so pure. Those who have seen his very essence. Sometimes they can help him see his light. Sometimes they just watch, entrusting him with the burden, knowing he can handle it. Only by turning his mule into a foundation he is now able to push off. They begin to talk about him. About what they actually see in him. Other people begin to show their interest too. Stories start to be told about him, turn into legends, he grows in stature, they re-invest in him. From now on, they have seen how he has met his challenges on his own. From now on, no matter where he falls in future, no matter what will happen in the world - they will believe in him, believe that he can and he will do his best to get up again and again until his last hour comes. --------------------- Part 3. Spotting Potential --------------------- If you've overlooked an opportunity or been deceived, Rejoice. Just be glad that it succeeded! After all, it's an indicator that anything is possible! All you have to do is watch others more closely. There are tons of such personalities, i.e. projects in the world – from offline businesses to the realms of web3, blockchain, NFTs, games. Learn to discern the genuine from the counterfeit. Learn to see the light, the hidden potential. Understand how projects navigate failures, and you'll begin to spot the diamonds amidst the ordinary.. And don't be upset if you missed a diamond or if it turns out to be fake. After all, at that particular moment, you may find YOURSELF entering into the complex game of establishing a personality through a fall. By already knowing the possibilities of rising from the ashes, by keeping it in your mind, you can also rise as a phoenix. In the grand scheme of life, every setback is a lesson, every challenge an opportunity. Believe in yourself. Find your foundation. Become your support. Turn it into a foundation. And work your way back up by doing your best. And rise, time and again. --------------------- Part 4. Practice. Stress relief --------------------- If you ever find yourself at a low point, remember: Breathe: Engage in breathwork like the Wim Hof method. ˜20 mins Embrace the Cold: A cold shower or ice bath can rejuvenate you. Don't forget to breath. ˜5-10 mins Meditate: Focuse on your body, your emotions, and then your psycho-emotional background. Observe it all without judgment. Practice Hatha Yoga: Delve into its spiritual depths. Educate Yourself: Listen to enlightening lectures, such as those by Jordan Peterson. (Personality series as well as his Bible lecture series. You will discover many new things). Seek Therapy: Discuss and understand your emotions. Empower with Knowledge: Educate yourself. Make informed decisions and act when you're ready. --------------------- Hope you could find this helpful. Yours truly, 👁️ A.I.Vision
Education
by A_I_Vision
Mastering Drawdowns: Strategies for Resilient TradingEvery trader, novice or seasoned, knows the sting of drawdowns. While they're inevitable, managing them effectively is key to trading success. Even the most renowned traders face drawdowns. Consider Richard Dennis, the legendary Turtle Trader, who transformed a mere $1,600 into over $200 million. Surprisingly, he experienced drawdowns of over 80% at times so I've read :). This might seem outlandish to some but perfectly normal to others. His approach worked well for his personal trades, but when he tried managing others' money via a hedge fund, it was a different story look it up its a good story for your mindset. Ultimately, it isn't the magnitude of the drawdown that's critical. It's your psychological response to it that dictates your success in handling it. Here's how I've personally navigated through drawdowns over the past 14 years: Focus on the Percentage, NOT the Amount: Previously, seeing the monetary loss during drawdowns sent me spiraling into panic and fear. The root problem? Focusing on the dollar amount, leading to emotionally charged decisions. Shifting focus to the percentage value changed everything. A 10% drawdown is more digestible mentally than a $10,000 one. This shift minimizes negative emotions and consequential mistakes. Confidence in Your Trading System: The depth of drawdown you can stomach ties directly to your trust in your trading system. If you know your metrics and trust your approach, you'll be more resilient. Confidence-building measures include thorough backtesting, simulation trading, and initiating with smaller live trades. Diversify Trading Accounts Based on Risk: I've always maintained three types of accounts: low-risk (60% capital, <10% drawdowns), moderate-risk (30% capital, <20% drawdowns), and aggressive (10% capital, high drawdown limits). This structure is possible thanks to the faith I have in my trading approach. Prioritize Mental & Physical Wellbeing: Trading is grueling, both mentally and physically. To stay sharp, you must be in peak condition. Regular exercise, like my 12-year practice of Muay Thai, offers stress relief. Meditation, another tool in my arsenal, helps maintain calm and focus. Trading is a journey, with its fair share of ups and downs. What I've shared is my compass through the stormy seas. Hopefully, it lights up your path too. Happy trading!
Education
by TheFxAce
16
Support and Resistance- Flipping Roles⚡In simple terms, support is a level where demand overcomes supply, while resistance is a level where supply overcomes demand. In the market, different types of traders participate, and I have broadly categorized them into four groups based on their behavior. ⚡You may have heard that once a support level is broken, it tends to act as a resistance level, and vice versa. This phenomenon occurs because the roles of support and resistance flip, influenced by the psychology of traders at these levels. ⚡Let's illustrate this with an example. Consider Group A, a set of buyers who bought a stock at 80. The stock price rises to 100 but faces some resistance. At this point, Group B, consisting of short sellers, enters the market and starts selling the stock near 100, with their stop-loss orders placed just above 100. Thus, there is supply present at this level. ⚡The price consolidates within a narrow range and eventually breaks out above 100. Group A is delighted as they bought at a good price, but Group B becomes unhappy. Some members of Group B exit the trade as their stop-loss orders get triggered, while others continue to hold in hope of a favorable outcome. ⚡Now, another group of traders, Group C, known as breakout traders, becomes active above 100. Their buy orders, combined with the buy-stop orders from Group B, add momentum to the upward movement, pushing the price up to 110. ⚡As the buying pressure eases, and short-term traders take profits, the market starts to pull back, eventually reaching the old resistance area around 100. ⚡Many pullback traders look for buying opportunities near this level. Additionally, members of Group B, who shorted at 100, realize their mistake and start buying to close their short positions at breakeven. Some of them also reverse their positions. Other buyers who were waiting on the sidelines also start entering the market. All these buy orders create a strong demand. ⚡Notice that once there was significant supply at 100 and now there is significant demand. If this demand is substantial enough, the price resumes its upward movement, illustrating how changes in market sentiment impact a participant's psychology and consequently affect the nature of support and resistance levels. ⚡The reverse is true for how a support level, once broken down, turns into a resistance level. ⚡I hope you found this tutorial helpful. Please stay tuned for more educational content in the future. Feel free to show your support by liking this post. Disclaimer: Practical knowledge
NSE:NIFTYEducation
by Bravetotrade
10
REN/USD Main trend. Accumulation 637. Distribution 637.Logarithm. Time frame 1 week. The main trend. The psychology of accumulation and distribution zones. The graph shows and describes the logic of work in the accumulation and distribution zones of large and small market participants (fuel). Coin as an example. It's always the same. But, always those who are “market fuel” are sure: "This time it will be different. But, no miracle happens. It's always the same. “Market fuel” changes cycle after cycle. Most people's memories are short. Many people think they're special, or the timing is wrong... but it's always the same. In distribution, they willingly buy expensive. In the accumulation on the contrary, afraid, waiting lower, lower and so on... Project and News Ren is an open protocol that allows value to move between blockchains. RIP-000-018: Financing Ren 2.0 and the Ren Foundation Early last year, Alameda acquired Ren in partnership with Ren's previous management to provide long-term development funding. Also, after the story with Alameda (scam, trial) in the network REN 1 will be shut down (waiting for the right moment according to the general market trend), the new network REN 2 will be launched. Read more on the project website itself (read between the lines). ICO price 02 2018 ICO: 17200 REN = 1 ETH. Now the price of ETH is about $ 1200, therefore, the price of the ICO in conversion to USD will be REN 0.069, which is slightly lower than the current price of 0.063 Linear graph Secondary trend. Time Frame, 3 days. The secondary trend is distinctly downward. A downward wedge is forming. From the peak, the price decreased by -95% at the moment. This is very much, but if you consider the inadequate pumping of +11,000%, it is normal. Think about it, the distribution has been 1.76 years. Many people got used to the “stable” price for such a long time and over time were no longer afraid to buy “cheap” because from the support of the distribution pumped by a significant % repeatedly. Also note that the accumulation and distribution over time of duration are identical. I showed the maximum local pumping from the key support zones when the wedge is broken, i.e. the exit from the downtrend. Let me remind you that at the moment the trend has a pronounced downtrend. You can work positional trading from the average buy/sell price of the medium/long term, or you can wait for the price to exit a downtrend, that is, to exit a wedge with significant buyer volume. In order to understand further work, and the potential, figure out what manipulation REN1 - REN2 coin holders want to do.
R
by SpartaBTC
34