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Trading Psychology

Unleashing the Power of Sentiment Indicators in TradingChapter 1: Introduction to Sentiment Indicators In the world of trading and investment, understanding market sentiment is essential for making informed decisions. Market sentiment refers to the overall attitude, emotions, and opinions of market participants towards a particular financial instrument, sector, or the market as a whole. It is a key factor that influences price movements and can provide valuable insights for traders. The role of emotions in trading is also crucial. Emotions such as fear, greed, optimism, and pessimism can significantly impact trading decisions and market behavior. Understanding and analyzing these emotions can help traders gauge market sentiment and identify potential trading opportunities. Sentiment analysis is the approach used to measure and quantify market sentiment. It involves extracting subjective information from various sources such as social media, news articles, and options markets to determine the prevailing sentiment. The goal is to understand and interpret the collective emotions of market participants. Sentiment indicators play a vital role in sentiment analysis. These indicators are tools and metrics that provide quantifiable measures of market sentiment. By incorporating sentiment indicators into their analysis, traders can gain a deeper understanding of market psychology and make more informed trading decisions. In the following chapters, we will explore different types of sentiment indicators and their applications in trading. We will delve into social media sentiment analysis, news sentiment analysis, options market sentiment, and more. Through real-life case studies and examples, we will demonstrate how traders can effectively leverage sentiment indicators to enhance their trading strategies and navigate the markets with greater confidence. So let's dive into the exciting world of sentiment indicators and discover how they can empower traders to make smarter trading decisions in various market conditions. Chapter 2: Social Media Sentiment Analysis Social media has become a powerful platform for expressing opinions and sharing information, making it an invaluable source for understanding market sentiment. Platforms such as Twitter, Facebook, and Reddit provide real-time insights into the thoughts and emotions of a wide range of market participants. Traders can harness the power of social media by analyzing sentiment expressed in posts, comments, and discussions related to financial instruments or markets. This can be done through the use of sentiment analysis tools and platforms. These tools employ natural language processing and machine learning algorithms to analyze and quantify sentiment. When analyzing social media sentiment, it is crucial to identify the influential platforms for each specific market. Different financial instruments and markets have unique social media platforms where participants share their views and opinions. For example, Twitter might be the primary platform for discussions related to cryptocurrencies, while LinkedIn could be more relevant for the stock market. By focusing on the platforms that hold more influence, traders can gain more accurate insights into market sentiment. Real-time sentiment analysis of social media involves monitoring conversations, identifying relevant keywords, and applying sentiment analysis algorithms. This process enables traders to gauge the sentiment as positive, negative, or neutral. By tracking sentiment shifts in real-time, traders can make timely trading decisions and take advantage of emerging trends or sentiment-driven price movements. To illustrate the effectiveness of social media sentiment analysis, let's explore some case studies. In one example, a trader monitors sentiment on Twitter for a particular cryptocurrency. By analyzing the sentiment expressed in tweets, the trader identifies a surge in positive sentiment accompanied by an increase in trading volume. This information serves as a signal to enter a long position, anticipating a price increase driven by bullish sentiment. The trader successfully profits from the sentiment-driven rally. In another case, a trader uses sentiment analysis of social media discussions to identify a sudden increase in negative sentiment towards a stock. Recognizing this shift in sentiment, the trader decides to exit their position or tighten their stop-loss level to protect their profits, anticipating a potential price decline. This proactive risk management based on sentiment analysis helps the trader avoid potential losses. By incorporating social media sentiment analysis into their trading strategies, traders can gain a deeper understanding of market sentiment and improve their decision-making process. However, it is important to remember that social media sentiment analysis should be used as one piece of the puzzle alongside other forms of analysis to build a comprehensive trading strategy. Chapter 3: News Sentiment Analysis News plays a significant role in shaping market sentiment. Positive news such as strong earnings reports, positive economic indicators, or favorable regulatory developments can create a bullish sentiment, leading to increased buying interest. Conversely, negative news such as poor economic data, geopolitical tensions, or negative corporate announcements can generate a bearish sentiment, resulting in selling pressure. News sentiment analysis involves analyzing the sentiment expressed in news articles, press releases, and other sources of financial news. The goal is to extract the overall sentiment conveyed by the news and understand its potential impact on market sentiment and price movements. There are various tools and techniques available for news sentiment analysis. These tools employ natural language processing and machine learning algorithms to analyze the sentiment of individual news pieces. They assign sentiment scores, such as positive, negative, or neutral, to quantify the sentiment expressed in the news. Financial news headlines are particularly important as they often convey the key sentiment of an article. Traders can focus on analyzing sentiment in news headlines to quickly gauge the overall sentiment without delving into the complete article. This allows for efficient scanning of multiple news sources and provides traders with timely insights into market sentiment. Incorporating news sentiment analysis into trading strategies can be done in several ways. Traders can use sentiment-triggered trade entries, where they initiate trades based on significant shifts in news sentiment. For example, a trader might enter a long position in response to overwhelmingly positive news sentiment regarding a particular stock, anticipating a price increase. Alternatively, news sentiment can serve as a confirming factor for technical analysis. If technical indicators suggest a bullish trend, positive news sentiment can provide additional confidence in the trade. Let's examine a case study to further illustrate the application of news sentiment analysis. Suppose a trader is analyzing the sentiment surrounding a company's earnings announcement. Through news sentiment analysis, the trader identifies a strong positive sentiment across various financial news sources. This positive sentiment indicates high market expectations for the company's earnings results. Based on this analysis, the trader decides to enter a long position before the earnings release, anticipating a favorable outcome. When the company exceeds expectations and reports stellar earnings, the positive sentiment is reinforced, resulting in a significant price increase. The trader profits from the sentiment-driven rally by making a well-timed trade based on news sentiment analysis. Chapter 4: Options Market Sentiment Options trading provides valuable insights into market sentiment as it reflects investors' expectations and sentiment towards the underlying asset. By analyzing options market sentiment, traders can gain a deeper understanding of market sentiment and potential price movements. One commonly used sentiment indicator in options trading is the put/call ratio. The put/call ratio compares the volume of put options, which give traders the right to sell an asset, to the volume of call options, which give traders the right to buy an asset. A high put/call ratio suggests bearish sentiment, indicating that more traders are betting on a price decline. Conversely, a low put/call ratio indicates bullish sentiment, with more traders anticipating a price increase. Another important indicator is implied volatility. Implied volatility is derived from options prices and reflects the market's expectation of future price volatility. Higher implied volatility suggests increased market uncertainty and potentially heightened bearish sentiment, while lower implied volatility indicates lower expected volatility and potential bullish sentiment. Traders can also analyze options-related metrics such as open interest, the skew index, and the volatility skew to gauge market sentiment. Open interest represents the total number of outstanding options contracts, providing insights into trader positioning and sentiment. The skew index measures the perceived risk of extreme price moves, while the volatility skew indicates the difference in implied volatility between options with different strike prices. To illustrate the application of options market sentiment, let's consider a case study. Suppose a trader observes a high put/call ratio in a particular stock, indicating bearish sentiment. This signals a potential price decline. The trader combines this information with other technical indicators pointing towards a bearish trend and decides to enter a short position. As the market sentiment unfolds, the stock experiences a significant price drop, validating the initial bearish sentiment and resulting in a profitable trade for the trader. Chapter 5: Fear and Greed Index The Fear and Greed Index is a sentiment indicator that measures market sentiment on a scale of extreme fear to extreme greed. It combines various factors, such as stock price momentum, market volatility, junk bond demand, and safe-haven flows, to gauge overall market sentiment. The components and calculation of the Fear and Greed Index can vary, but the index generally assigns a numerical value or category to represent the prevailing sentiment. Extreme fear levels suggest a highly pessimistic sentiment, often associated with market downturns or significant price declines. On the other hand, extreme greed levels indicate excessive optimism and potentially overbought conditions, signaling a potential market correction. Traders can incorporate the Fear and Greed Index into their trading strategies in several ways. It can serve as a confirming factor for technical analysis, where extreme fear or greed levels align with other indicators pointing towards a potential trend reversal. Additionally, contrarian traders may use extreme sentiment levels as a signal to consider taking opposite positions, capitalizing on potential market reversals. Let's explore a case study to demonstrate the practical application of the Fear and Greed Index. Suppose the Fear and Greed Index reaches an extreme greed level, indicating excessive optimism and potentially overbought conditions in the market. A trader who closely monitors the index recognizes this as a warning sign and starts analyzing other technical indicators. They observe overextended price levels, declining trading volume, and bearish divergence on oscillators. Taking all these factors into consideration, the trader decides to exit their long positions or initiate short positions, anticipating a potential market correction. As the market sentiment shifts from extreme greed to fear, the market experiences a significant decline, validating the trader's decision and resulting in profitable trades. Chapter 6: Conclusion and Future Outlook In conclusion, sentiment indicators provide valuable insights into market psychology and can significantly enhance trading decisions. By understanding market sentiment through sentiment analysis tools, traders can gain an edge in their strategies. Social media sentiment analysis allows traders to tap into the real-time opinions and emotions of market participants, while news sentiment analysis helps traders assess the impact of news events on market sentiment. Options market sentiment and sentiment indicators such as the Fear and Greed Index provide additional perspectives on investor expectations and sentiment towards the market. As technology and data analysis techniques continue to advance, sentiment analysis is expected to evolve further. Integration of artificial intelligence and machine learning algorithms can enhance sentiment predictions and improve the accuracy of sentiment analysis tools. This will empower traders with even more robust insights into market sentiment. To harness the power of sentiment indicators effectively, it is essential to integrate them with other forms of analysis, such as technical analysis and fundamental analysis. By combining multiple perspectives, traders can make well-informed trading decisions and increase their chances of success. In the ever-changing landscape of financial markets, sentiment indicators will continue to play a crucial role in understanding market dynamics. By staying abreast of emerging trends and advancements in sentiment analysis, traders can adapt their strategies and stay ahead of the curve. Ultimately, by leveraging sentiment indicators, traders can enhance their trading success and capitalize on market opportunities.
AMEX:SPYEducation
by Julien_Eche
Learn The Only Proven Way to Become Rich 1. Money mindset is everything You need to have a positive money mindset when it comes to creating wealth. Everyone carries a money story and it’s your job to understand what yours is and if it’s holding you back. Reframing your story to a millionaire’s mindset is essential for success because rich people think differently. How to get rich can’t be a passing phase in your life; it takes work and commitment. 2. Millionaires still budget Hard to believe, but it’s true. Even millionaires follow a budget. The biggest secret on how to get rich and stay rich is spending less than you bring in. There will always be wants that exceed budget limits, even for millionaires, because there is not an unlimited supply of money. 3. Money management is key Good money management is so important to get rich and stay rich. Money management is a behavior and habit. You need to be mindful of where you are investing and spending your money. There is a specific strategy to growing your wealth and maintaining it and you must follow it like you do a workout regime. 4. Invest your money for growth Investing in assets that will appreciate over time and provide you with a return on your investment such as dividend or interest payments is smart. The goal is to build your asset portfolio and make it so strong that you can live off the passive income in your retirement. 5. Build your business around your personal financial goals As a business owner you have more control over the money you make versus being an employee with a set salary. If you want more money in your pockets, you can increase your revenue and your profit margins to ensure you are taking home more money. The more profits you have in your business the more you can pay yourself a dividend or bonus, depending on the legal structure of your business. 6. Create multiple income streams Smart business owners create more than one income streamas it protects them from fluctuations in the market. That means if one source of revenue dries up due to market conditions, other sources of income can protect you from a loss. 7. CONCLUSION: The bottom line is that knowing how to get rich is something that is learned. There are no guarantees that if you start a business that you will get rich because even the best business ideas fail due to poor execution. But if you educate yourself and get help in making your business a success, you will increase your chances of success. Please, support my work with like and comment! Love you, my dear followers!👩‍💻🌸
Education
by AnabelSignals
4
Learn What Will Really Make You Profitable in Trading What brings the consistent profits in trading? Talking to hundreds of struggling traders from different parts of the globe, I realized that there are the common misconceptions concerning that subject. In this educational article, we will discuss what really will make you profitable in trading. 🔔The first thing that 99% of struggling traders are looking for is signals. Why damn learn if you can simply follow the trades of a pro trader and make money?! The truth is, however, is that in order to repeat the performance of a signal provider you have to open all your trading positions in the same exact moment he does. (And I would not even mention the fact that there will be a delay between the moment the provider opens the trade and the moment he sends you the signal) Because the signal can be sent at a random moment, quite often it will take time for you to reach your trading terminal and open the position. Just a 1-minute delay may dramatically change the risk to reward ration of the trade and, hence, the final result. 🤖The second thing that really attracts the struggling traders is trading robots (EA). The systems that trade automatically and aimed to generate consistent profits. You simply start the program and wait for the money. The main problem with EA is the fact that it requires constant monitoring. It can stop or freeze in a random moment and may require a reboot. Moreover, due to changing market conditions, the EA should be regularly updated. Without the updates, at some moment it may blow your account. Trading robot is the work: trading with the robots means their constant development, monitoring and improvement. And that work requires a high level of experience: both in coding and in trading. 📈The third thing that struggling traders are seeking is the "magic" indicator. The one that will accurately identify the safe points to buy and sell. You add the indicator on the chart, and you simply wait for the signal to open the trade. The fact is that magic indicators do not exist. Indicator is the tool that can be applied as the extra confirmation. It should be applied strictly in a combination with something else, and its proper application requires a high level of expertise in trading. 🍀The fourth thing that newbie traders seek is luck. They open the trade, and then they pray the God, Powell, Fed or someone else to move the market in their favor. And yes, occasionally, luck will be on your side. But relying on luck on a long-term basis, you are doomed to fail. But what will make you profitable then? What is the secret ingredient. Remember, that secret ingredient does not exist. In order to become a consistently profitable traders, you should rely on 4 crucial elements: trading plan, risk management, discipline and correct mindset. 🧠What is correct mindset in trading? It simply means setting REALISTIC goals and having REALISTIC expectations from the market and from your trading. 📝A trading plan is the set of rules and conditions that you apply for the search of a trading setup and the management of the opened position. Trading plan will be considered to be good if it is back tested on historical data and then tested on demo account for at least 3 consequent months. ✔️In order to follow the plan consistently, you need to be disciplined. You should be prepared for losing streaks, and you should be strong enough to not break once your trading account will be in a drawdown. 💰Risk management is one of the most important elements of your trading plan. It defines your risk per trade and your set of actions in case of losses. Even the best trading strategies may fail because of poor risk management. Combining these 4 elements, you will become a consistently profitable trader. Remember, that there is no easy way, no shortcut. Trading is a hard work to be done. ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
11
Choosing The Right Strategy To Trade And InvestYou have been studying the charts, watching YouTube and courses videos, and reading the content from BabyPips for a few weeks or even months now. You're getting lost with so much information out there in the Internet. You come across many different terms like smart money concept, ICT, Wyckoff, Elliott Wave and supply and demand. You have no idea on what you should be focusing on. You're deciding which method you should be using to trade. Some people tell you to avoid using any indicators, while others tell you to use indicators so that your trades will be mechanical and you will not let emotions get in the way of your trade. Unable to identify which method to use is detrimental to your trading and investing career. Technical analysis is the backbone of trading in every asset classes, be it stocks, forex, cryptocurrency and even options. What's worse is that you're using the wrong or inefficient methods to analyze the market. By trying to be involved in the financial market, you aim to grow your wealth and hopefully to retire earlier. Can you imagine how much money you can potentially earn from the financial market? You are able to travel anywhere sitting on the first class seats, and able to buy anything you want without any worries for your fundamental needs like food and shelter. Right Strategy, Wrong Implementation Without the right tools, not only will you lose your wealth, but you might also need to push back your retirement age by a few years. Do you want to work for a few more years of 9 - 5, or do you prefer to retire and have the option to not work anymore? I'd definitely prefer the latter. However, the most important thing you will lose is time. Precious time will be lost by using trading with the wrong strategies. Even worse if you are using the correct strategies wrongly. You might discard it away, thinking that it's not going to be a profitable strategy even when you've already discovered one. If you know of the right strategy, you could be earning and profiting from the financial market so much earlier. Don't forget the compounding power of your profits. The later you start to profit from the market, the longer you will see your capital start to compound. Finding The Holy Grail There is actually no "right strategy" in the financial market. Some strategies work better than others in certain market conditions. Take for example Wyckoff methodology is good for identifying change in character and signs of consolidation, accumulation, distribution and reversal on 1 time frame. When using the Wyckoff methodology on a trending market, you are essentially trying to catch a reversal which is relatively riskier compared to just trading with the trend. Of course we are not deep diving into the details on how do we use Wyckoff in trading, but this is an analogy that there are different tools to be used in different market conditions. You have to find out what works for you. Price Fractality Price will do what it needs to do. Read it again. Then read it again. You and me are probably not able to control where the price will move. You need millions of dollars in order to do that, and that is usually the order size of big institutional players like funds and banks. You might be able to influence the price of some meme coins if you are a whale with a few tens of thousands of dollars, but let's not go into that. Have you ever seen price moved differently on the 1-minute timeframe compared to the 15-minute and 1-hour timeframes? You can be looking at an uptrend on the 1-minute timeframe, but it's consolidating on the 15-minute timeframe and on a downtrend on the 1-hour timeframe. Why? Price moves in different fractal. There are many big institutional players trading at different timeframes. They can be positioning themselves for a huge move on the higher timeframes, or they can be scalping their way to profits on the lower timeframes. I have 2 charts below. Are you able to tell what timeframes are they in? Of course not! Let's say you have the following data from a strategy that you've backtested using Elliott Waves: Statistics Total Trades: 100 Average RR: 2.34R Win Rate: 37% Do you know that with this result, you're already on the way to profitability if you trade exactly like how you backtested? For reference, you need a risk to reward ratio of 1:2 and win rate of 33% to have a breakeven strategy. Finding a 37% win rate and 2.34R strategy is already better than majority of the traders out there. But Keeley, with an average of 2.34R strategy, when can I get a lambo? I want a strategy with an average of 20R so that I can show off my trades on social media. First, you need to wake up. Second, you need to stay awake. There are a lot of posts in the social media where you see people hitting 100RR trades and screenshots of their profits and even MetaTrader 4 and 5. There are people who constantly post all these screenshots to garner your attention. I’m pretty sure they have something to sell you. Be it signals, mentorship, copy trading or account management. What you don’t know is the truth behind many of these screenshots. They can be taken on a demo account using big lots and no risk management. With a demo account, anything is possible. If it’s a real account, you have no idea how many losses they encountered before hitting this homerun trade. Some even go as far as getting a white label and show you that the account is “live”, but in fact it’s a demo account since they own the “broker”.  Yes, you can have an average of 20R strategy, but the higher R you're aiming, your win rate will logically be lower. If this is what you want, then you need to ensure your psychology and risk management is very very strong as you will face plenty of losses before the big win. I know many people can't wait for that 1 winning trade that covers the losses due to fear and doubt during a period of drawdown. Lifestyle Compatibility Another important concept of trading is lifestyle compatibility. Let's say you own a bicycle. A bicycle serves many purposes. It can be a mode of transport, it can be used for exercising, and it can also be used in cycling competitions. If you're travelling to work which will take you 45 minutes by train, will you choose to cycle to your workplace? I'm sure it's a no right? There is a time and place for everything. Similarly, if you resides in Asia and works at a 9 - 5 day job, does it make sense for you to be backtesting a strategy that involves scalping on the seconds or 1 minute timeframe in the Asian session when you're in office working? Coming back to the example, if you have a 37% win rate and 2.34R strategy, trade it in the live market. If this is a scalping strategy for the Asian session, you are not able to take all the opportunities that present themselves to you. You take trades half-heartedly. You lose trades. You start to cherry pick your trades. You then conclude that this is actually a losing strategy. You discard this strategy and proceed to find the next "holy grail". What if you actually stick to your strategy, but instead of trading on the 1-minute timeframe, you apply the strategy onto the 30-minute or even the 1-hour timeframe? Remember that price is fractal and most strategies work in multiple timeframes. Since you're unable to concentrate on trading on the 1-minute timeframe, you might get the same or better results on the higher timeframe. Make sure you backtest your system first! I was always on the lookout for the "holy grail" because I was making the mistake of not finding the strategy that fits my personality and lifestyle. I had a profitable system with a win rate of 12% with an average risk to reward ratio of 10R. However, it did not fit my personality at all as I need to experience a lot of drawdown before I see profits. This also did not sit well with my psychology, especially when I'm taking prop firm challenges. I would also need to be in front of the chart constantly which was not the freedom that I seek once I achieve financial freedom. So this was not sustainable at all. Before I had this system, I already have a profitable system with a win rate of 40%, averaging 2.5r per winning trade. Like many of you, I feel that even though this is profitable, it just wasn't enough. It was when I had a mindset shift and speaking to my mentor, I began to stick with my original strategy. From then, I started to see real results and my equity curve has been on a general uptrend since, with some periods of drawdown of course. This has also led me to getting my first payout with FTMO on a $10,000 account, with another payout of close to $1,000 coming in June 2023 from The Funded Trader. This $200 (post-profit split) is just a 2% profit. Imagine what my profit will be if that was a $100,000 account? Yes, it's all talk until it actually happen. It's just a matter of time when I accumulate more of these accounts to fund my personal account. Mentorship A mentor can really help to see the blind spots in your life. In driving lessons, you have a driving instructors guiding and providing you feedbacks on your driving. Sometimes, you discover things that you never knew before. You won't know how to park your vehicle properly, you won't know the technique when you need to hit the emergency break. You might know in theory, but you need someone to guide you with the practical. It cuts so much time and effort on your end with the trial-and-errors which you might not even find success in. There are a lot of scam artists out there claiming to be a trading mentor without delivering any results. Many aren't able to earn a decent profit from the market. A mentor must be able to objectively look at any strategy and tell you what's not working and what you should stop, not just forcing you to use his own strategy. He must be able to talk to you about his own mistakes and show you solid trading results via 3rd party verification such as Myfxbook or Fxblue, and not through screenshots or excel worksheet. He should walk you through development as a person outside of trading. Stay consistent. Stay safe. Success is just around the corner. If you enjoy such content, feel free to click the like button and subscribe for more. Let me know what are your thoughts and learning points in the comments below so others can learn from you too! Please let me know what kind of topic you would like to read next :) Happy weekend!
Education
by Keeleytwj
How to Trade the Pin Bar Pattern on Forex and Gold 🕯 The pin bar is a powerful price action setup that tells a fascinating story concerning price momentum and the possibility of an imminent reversal in price direction. A pin bar is a Japanese candlestick that has a long wick on one side and a small body. Understanding the story behind the pin bar is essential. 📚What does the pin bar candlestick pattern tell us about market psychology? 📉This pin bar followed a strong downward trend, and the presence of a long tail below the body tells us that the market rejected any attempt by overly exuberant sellers to move the price lower. The length of the tail speaks to the strength of the rejection. 📈The pin bar followed by a strong uptrend, and the presence of a long tail above the body tells us that the market rejected any attempt by overly exuberant buyers to move the price higher. The length of the tail speaks to the strength of the rejection. ⭐️The best pin bars are bearish pin bars that form at the top of an extended move up, and bullish pin bars that form at the bottom of an extended move down. ✅Entry and exit is very simple. If you are going short on a bearish pin bar, enter short when the next candle opens and ticks below the low of the bearish pin bar. If you are going long at your fx broker, enter long when the next candle opens and ticks above the high of the bullish pin bar. ❗️Keep in mind that these are general trading concepts that build on the collective experience of traders. Even though a lot of traders believe that these chart patterns have a bearing on the future direction of the price there are no guarantees in trading. Forex & gold trading is risky and you should never speculate with funds you cannot afford to lose. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
10
Top 8 Rules of a Pro Trader Hey traders, Consistently profitable traders have a lot of things in common. Watching how they act and following their ideas & thoughts we can spot a lot of commonalities among them. In this article, I have collected 8 trading habits that a trader should have to become successful. 1️⃣ - Continuous Learning 📚 The markets are infinitely deep in their nature. Trading & constant monitoring of the market always unveil new, uncharted elements and things. With 8 years of day trading, I can't help wondering how many new things I learn each and every day. With continuous learning you evolve, you become better and it improves your trading performance & results. 2️⃣- Emotional Stability 🙏 The market is a wild beast who always wants to bite us. And most of the time it manages to do that: drawdowns, losing streaks... Those who trade for at least 1 year know how unpredictable and unstable the market is. A perfectly looking trading setup can easily turn into a big losing trade. Of course, that is painful, of course with more and more losers, the anxiety will pursue us, the stress will overwhelm us. Only by remaining stable and calm, you will manage to overcome the negative periods. Learn to control your emotions, learn to take losses! 3️⃣ - Constant Practice 💪 Pro traders never stop, they always watch the charts, they always monitor the prices, and follow the market. Trading requires constant TRADING. Just spending one single week on a vacation without charts, you can not imagine how hard it is to return back. The trading skills must be constantly maintained. 4️⃣ - Trade Journaling 📝 Pro trders always assess their past performance & results. They track each and every trading position that they opened. Both losing trades and winning trades require analysis and observations. Only by studying the past results the trader can improve his trading performance and evolve. Only by identifying mistakes & peculiar commonalities, the trader learns to lose less than he makes. 5️⃣ - Anticipation of Different Outcomes 👁 Everything can happen in financial markets. Pro trader always reasons in probabilities. He knows that 100% chances do not exist. Accepting the probabilities the trader (even while opening the trade) is always ready for completely different outcomes and accepts each and every move of the market. 6️⃣ - Flexibility & Adaptivity 🕺 The markets are always changing. If you were trading before COVID crisis, I guess you feel how the reality among us shifted. With fundamental changes in our daily lives, the markets changed as well. It is hard to say what exactly has altered though, however, we all can feel it. In order to survive in a constantly changing environment, one should adapt . One should look for ways to be one step ahead. To beat an evolving market, the traders should constantly polish their trading strategies, drop the things that don't work anymore, and adopt the new, reliable ones. That is the only way to stay afloat. 7️⃣ - Selection of Right Markets 📈 The trader always knows what to trade and he always has a reason. He admits that some financial instruments are appropriate for his trading style while some are completely not. Pro trader does not wander around aimlessly from one market to another. He has a plan to follow and rules to rely on. 8️⃣ - Realistic Expectations ⭐️ Many newbie traders drop trading just because of wrong expectations. The desire to get rich quick, to catch 20/1 risk to reward trades without substantial losses is playing a dirty trick with them. The true trader is not greedy, in contrast, he is humble and the only thing that he wants is simply to win more than he loses and make that amount sufficient enough to have a good living. Adapting these 8 habits, you will see dramatic improvements in your trading. And even though most of them require a substantial effort and many years of practicing, trust me, it is worth it and it will help you in your daily life as well. Would you add some other habits to this list?🤓 Let me know in a comment section. Let me know, traders, what do you want to learn in the next educational post?
TVC:USOILEducation
by VasilyTrader
9
Unpopular trading advice: fall in LOVE with one pair ONLYIn a world where you can love anyone and anything your heart desires, fall in love with ONE currency pair ONLY. The notion of "the more pairs I trade, the more money I will make" is false. If you wanna be a consistently profitable trader, it is more beneficial to focus on a small selection of securities and master them, and there is a concrete reason for that. Concentrating on one or two currency pairs instead of trading every single major, minor, and exotic pair will be more efficient, less confusing, and more profitable. When you study every single movement of any given pair, you get more experienced at trading it and you make more rational decisions and analyses. Looking at the chart illustration, we might observe the trading log of all transactions we executed in April and May so far. With 8 trade entries and all of them being EUR/GBP, a total return of +9.6% has been generated constituting an approximate win rate percentage of 70%. Obviously, not every trade resulted in being profitable as we encountered 2 losses and a breakeven closure. Nevertheless, as we always indicate, trading is a game of big numbers and probabilities. Instead of trading 10 securities, we have only been focusing on one single currency pair recently. One crucial thing that needs to be noted is the following: not always will the one specific currency pair of your choice provide you with clear swing opportunities as the example of EUR/GBP portrayed on the graph. Periods of long and dull consolidations, indecisions, and some other moments will take place and make a derivative unlikeable and less efficient to trade for a period of time. Therefore, always have one or two other trades on the radar to eventually monitor and analyse along with the currency pair of your preference. Love will save the world. Investroy.
Education
by Investroy
72
Big non-farm data is coming, are you ready? The monthly nonfarm payroll data is coming soon. Do you know how it will affect gold prices? The "nonfarm" data is released by the US Department of Labor on the first Friday of each month. It consists of three values: nonfarm employment, employment rate, and unemployment rate, which reflect the development and growth of the manufacturing and service industries. A decrease in these numbers represents a reduction in production by businesses and an economic downturn. Therefore, the following basic rules apply to the price trends of gold: 1. A decrease in nonfarm values indicates an economic downturn, a reduction in production by businesses, and a weakening of the US dollar, which is favorable for gold. 2. An increase in nonfarm values indicates a healthy economic condition, which is favorable for increasing interest rates, strengthening the US dollar, and unfavorable for gold. In general, if the overall economic data in the United States is weak and the ADP employment data is favorable for spot gold before the nonfarm data is released, the market may start to show a bullish trend for gold prices on Thursday and Friday. On the other hand, if there are signs of economic recovery in the United States before the release of the nonfarm data and the economy is strong, it will be bearish for gold prices, and investors can take advantage of short positions. Therefore, if the newly added nonfarm data exceeds the market's expectations, the Federal Reserve's expectation of raising interest rates may rise again. However, the uncertain global economic recovery has led to continued expectations of monetary easing by central banks, and the combined effects of these factors have led to extreme fluctuations in gold prices during nonfarm data releases. As a gold investor, you can actively pay attention to the nonfarm market, but there is no need to demand excessive profits from the market. Instead, it is essential to understand the impact of this data on gold price movements. I will provide analysis and trading strategies for gold and crude oil every day. Please click to follow, maintain your reading habits, and create opportunities for yourself. If you agree with my views, please click the rocket to support me. COMEX:GC1! MCX:GOLD1! BIST:XAUUSD1!
FX:XAUUSDEducation
by investmentMr-X
35
How To Become A Millionaire | 2 Proven Ways Seeing people announce their net worth on social media may have you asking yourself, "How do I become a millionaire?" Yet "millionaire" can feel like a huge, unobtainable word. However, the good news is that becoming one is actually more realistic than you might think. The fast-track method of becoming rich in your twenties is to start a high-growth, high-return business with a plan to exit within five years or so. But, of course, there's absolutely no guarantee you'll even make a penny, and the risk can often outweigh your other options for building a long-term income. It's important to have a well-researched idea and a solid business plan before you start, as well as a clear picture of how you'll support yourself when there's no money coming in. Having said all this, there may never be a better time to start in business than as a graduate. Your responsibilities are minimal and even if it all goes wrong, you've got a wealth of experience to build on and take forward. With your business, you should either identify a need and fill it or find a problem and solve it. Solving for customer needs and exceeding expectations along the way drives business growth. A customer need is a motive that prompts a customer to buy a product or service. Ultimately, the need is the driver of the customer's purchase decision. Learning to solve the problems of people, you can make a huge wealth on that. Just look around and look for the things to solve. What do you want to learn in the next post?
TVC:GOLDEducation
by UnitedSignals
3
⌛ It's Just A Matter Of Time📍Journey Of a Successful Trader No one started as a good trader. Every profitable trader was once a newbie. The journey of a successful trader is filled with challenges, hard work, and perseverance. It begins with a strong desire to learn and a commitment to become an expert in the markets they are trading. 📍The Right Path To Reach The Top 🔹Learn the basics of Trading 🔹Pick a Strategy that you fully understand 🔹Trading plan customized to your lifestyle 🔹Back Testing your strategy and plan 🔹Review your Trades, calculate your expectancy 🔹Demo Trading to build basic knowledge 🔹Live Trading, Manage your risk and emotions 🔹Professional Trader 📍Summary The first step in the journey is to acquire the necessary knowledge and skills. This includes learning about the financial markets, technical analysis, risk management, and trading psychology. Successful traders also develop a trading strategy that fits their personality and trading style. Once they have acquired the necessary knowledge and skills, successful traders spend countless hours studying the markets, analyzing charts, and monitoring news events that may impact their trades. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
4
The Breakout Trading Strategy of Trendlines | OKXIDEAS Hello traders, In this post i am just showing you a very simple and easy trading strategy especially for beginners, in this strategy i am just using two basic things trendlines and 50 simple moving average which is you can also see in the charts above. What you will be doing in this strategy just simply go to the 1hr timeframe see the clear trend draw the trendline wait for the breakout when breakout happen now wait for price to retest or just place a buy limit or sell limit order. I hope you like the strategy this is the trendlines breakout trading strategy. The one good thing about this strategy is the risk to reward ratio because in this strategy you will have potential to have around 1/3 risk to reward ratio so this means if you placed 10 trades and you lose 7 trades out of 10 and you just won 3 trades out of 10, you will be still profitable so meanwhile you just need to have a 30% wining ratio to be profitable in a long run. I just advise you that try the strategy open the chart and back-test your chart and trade it on demo live market condition at least for one month and see the results ask the question to yourself can you be profitable? if the answer is yes so probably you know that what to do next but if the answer is no then look it your one month data that you have, make sure to journal your one month data record and try to analyze what mistakes you do what wining ratio you have can you have a little deference to between 30% see your taken trades you will be seeing some bad trades and you don't wanted to trade next time avoid those trades in the next month and just repeat the process be patient one day you will be consistently profitable but if not then don't lose the hope and just try again again and again learn from your mistakes come back and don't do that mistakes again, remember every strategy is good if you practice and managed it. Just find the strategy that you suit and start the process. I hope you liked the post, i wish you good luck and good trading.
Education
by TheLoserMan
1
Practical Insights into the Risk ManagementHey there, amazing @TradingView community! It's @Vestinda, and we're on a mission to deliver content that truly makes a difference. 👉 To become a successful crypto trader, it's essential to have a solid understanding of trade and risk management concepts, such as stop losses, position sizing, and scaling. In this article, we'll explore these key concepts in-depth to help you minimize your risks and maximize your gains in the cryptocurrency market. Four Risk Management Concepts Every Crypto Trader Should Understand To effectively manage the risk associated with trading, it is essential to first develop a comprehensive trade management and risk management strategy. Before committing your capital to any position, it's critical to have a clear plan in place to minimize potential losses and optimize your overall trading performance. Successful market speculation requires effective risk management to preserve capital, which is the primary objective. By minimizing losses and maximizing gains through a comprehensive trade and risk management strategy, traders can achieve long-term success in the market. One of the key strategies employed by the most successful traders is to minimize their losses while allowing their profitable trades to run. This approach is essential for avoiding disastrous scenarios, such as allowing profitable trades to turn into losers or allowing a single bad trade to wipe out an entire account. By focusing on risk management and trade management, traders can increase their chances of success and protect their capital over the long term. It's true that implementing the "cut losses quickly and let profitable trades ride" strategy can be challenging, especially for discretionary traders who need to constantly evaluate changes in fundamentals and market sentiment against price movements. However, there are trade and risk management ("TRM") tools and methods available that can help simplify this process. While these tools and methods may seem complex at first, they are quite accessible and easy to learn. With the right TRM strategies in place, traders can effectively manage risk and optimize their performance in any market condition. Before diving into trading, it's crucial to understand four key concepts in trade and risk management: Stop losses: Stop losses are predetermined exit points designed to limit potential losses on a trade. By setting a stop loss, traders can automatically close a position if the market moves against them beyond a certain point, minimizing their losses. Traders may use price action signals, technical indicator signals, fundamental analysis, or a combination of all three to determine the appropriate level for a stop-loss order. This helps to limit potential losses on trade and is a crucial component of effective risk management. Position sizing: Position sizing refers to the amount of capital allocated to a specific trade. By properly sizing positions based on risk tolerance and market conditions, traders can optimize their overall risk management strategy and minimize the impact of potential losses. Position sizing refers to the process of determining the quantity of cryptocurrency to long or short based on the maximum amount of value a trader is willing to lose if the trade fails, also known as "max risk." For novice traders, it is recommended that the maximum risk should not exceed 1-2% of their portfolio for short-term transactions and 5% for longer-term positions. For example, if a trader has a cryptocurrency account with $ 1,000 and wishes to purchase a token with a market price of $ 10.0 per token, they would need to determine the appropriate position size to maintain their desired level of risk. If their analysis indicates that they should place a stop loss at $ 5.0 per token to limit their maximum risk to 2% of their account, or $ 20.0, then the appropriate position size would be 4 units (40$ position size). This way, if the token's value drops by $ 5.0, the resulting loss of $ 20.0 would equal 2% of the trader's account. Scaling: Scaling involves adjusting position sizes based on the performance of a trade or the overall market conditions. By scaling into or out of positions based on market conditions, traders can adjust their risk exposure and optimize their potential for gains while minimizing potential losses. Scaling refers to the practice of dividing entries and exits into two or more orders around a trader's intended entry/exit area to reduce the likelihood of setting an entry too low or too high. This is particularly important because it is nearly impossible to predict the exact price or time at which the market's direction or volatility levels will change. For example, if a trader intends to buy a token for $ 10.0 but their analysis indicates that it may drop as low as $ 8.0 before sentiment entirely flips bullish, they should consider dividing their entry/exit orders into multiple price levels. This way, they can enter the trade with a partial position if the token's price does not drop below $10.0, but if it drops to $ 8.0, they can scale into a lower average price of $ 8.75. By using scaling and position sizing in conjunction with a maximum stop loss level, traders can effectively manage their risk and reduce the likelihood of incurring significant losses. While these concepts are relatively simple, understanding and applying them correctly can help traders avoid significant risks in the cryptocurrency market. Leverage: Trading with leverage involves taking positions that exceed the account's total capital, which can be done through crypto exchanges (CEXs) offering margin trading or some DeFi protocols providing advanced borrowing mechanisms. For instance, assume you have $ 100 in your account, and you want to purchase 1 unit of XYZ token worth $ 100, creating an open position valued at $ 100. Margin trading offered by a CEX may only require a 10% margin, meaning you only need to invest $ 10 instead of the entire $ 100. You can then utilize the remaining $ 90 to open additional positions, which can be tempting for many traders. With a 10% margin requirement and a $ 100 account, you can open a position size of 10 XYZ tokens, having a notional value of $ 1000 ($ 100 x 10 units), with the CEX holding the $ 100 in your account as a margin for the trades. This would make you leveraged 10x, which is considered an extremely high amount of leverage. If the token increases in value by 10% in a short period, the position value would grow from $ 1000 to $ 1100, which means you could double your account value from $ 100 to $ 200 (i.e., $ 100 profit + $ 100 margin). Alternatively, if the token rises by 20% to $ 1200, you would triple your account to $ 300 in value. Although the potential for high profits may sound exciting, it is crucial to remember the risks associated with trading with leverage, and it is advisable to exercise caution and not get carried away by the prospect of quick and easy gains. Many traders are lured by the potential profits of leveraged trading, but it's important to remember that leverage can be just as dangerous as it is rewarding. If a trader opens a position with 10x leverage and the position loses just 5%, that would be a loss of $ 50, which is 50% of their $ 100 account. Additionally, if the position were to lose 10%, resulting in a $ 100 loss, the trader would receive a margin call and would need to deposit more money to keep their trades open. If they are unable to do so, the CEX will close all positions, also known as being "liquidated". The CEX will use the margin that the trader had provided to cover the $ 100 loss, which means that the trader's account balance would be reduced to $ 0. It's essential to be aware of the risks of leveraged trading, as you could potentially lose everything you've invested. It's important to remember that leverage in crypto trading is a double-edged sword that can either grow your account or quickly deplete it. While it's possible to make significant profits with leverage, it's equally possible to suffer substantial losses. As a new trader, it's important to acknowledge that trading with leverage requires expertise and a sound risk management strategy, which can be challenging to implement successfully. Therefore, it's wise to approach leverage with caution and focus on developing your skills and knowledge before considering this tool. Here are some recommendations that can help you navigate the exciting but risky world of crypto trading: First, it's important to be conservative with your risk-taking and to only invest in your very best trade ideas. Limiting your total exposure to the crypto sector to a small percentage of your total liquid capital, starting at 1%, is a good way to minimize your risk. You should also limit your exposure to a specific crypto asset to a small percentage of your total crypto portfolio, with a 1% to 2% max risk on short-term trades and a max of 5% risk on longer-term positions. Using a stop loss with every position is also crucial to limit potential losses. Remember, perfect timing is near impossible, so consider scaling into trading positions or "dollar cost averaging" into longer-term investments. Take profits along the way if a trade goes your way. And most importantly, avoid using leverage, which can be a double-edged sword and lead to substantial losses. Lastly, only invest your capital in your very best ideas, which should be low-risk/high-reward setups on high-probability ideas. Don't force trades when there are no compelling opportunities, and remember that "no position" is a perfectly fine position when you don't see any good opportunities. Calling all traders! Are you ready to take your skills to the next level? Join our community of like-minded traders and stay up to date with the latest market trends and insights. Hit that follow button and show your support by giving this article a big thumbs up. Together, we'll navigate the markets with ease and achieve financial success. Don't miss out on this opportunity to grow and learn with us. Let's do this!
INDEX:BTCUSDEducation
by Vestinda
1
Trader ⚔️VS⚔️ Analyst !!!(Differences)Hi, everyone👋. Do you like surfing or guiding surfers? In this article, I will talk about how analysis differs from trading. A good analyst is not necessarily a good trader📉. Do you know what the point is❗️❓ The point is that analysts talk about all aspects, so they always tell the truth and explain what really happens on the market, but the traders ride the waves. Financial markets include high and low waves, so if a trader makes a mistake in measuring its depth, speed, and height may drown in the sea. If you are a trader, don’t be proud of yourself because the financial market sea is very cruel or a beast. —------------------------------------------------------------------------------------------------------------------ There are four trading keys in financial markets: Trading Strategy Capital Management Market Psychology Trader Psychology These keys are like four legs of a chair🪑 which should be sat on carefully and calmly. Although by removing one of the legs, it’s possible to sit on the chair, safety has to be considered. I’ll explain all the trading keys in the market in other posts later, but for now, let me dig into the differences between Analysis📈 and Trading💰 . What is considered in the analysis are the price targets in both rising🟢 and falling🔴 markets, the probability of its occurrence and non-occurrence, and the necessary conditions for both. Considering the subtlety of an analyst's words and the mentality of the people studying - who are mainly looking for confirmation of their position - generally, the analyst will always be right unless he has declared only one direction decisively, which is not an analysis, but a signal and prediction. Declaring an upward↗️ or downward↘️ trend in only one direction is not an analysis but a prediction. It’s noted that any prediction can be wrong. But in the comprehensive analysis of both sides, the necessary conditions for their occurrence and their probability are stated, so whatever happens, the analyst is right, and you will hear the famous saying "as predicted." 🔷 A successful trader can take the following steps: Comprehensive analysis of the market situation in which he wants to trade: The technical analysis must be prepared before opening a trade position. A wrong analysis does not always lead to a wrong trade, and vice versa, a correct analysis does not lead to a correct trade because you have to see whether the position trigger is activated or not. Find useful trading strategies to achieve profitable trading: A trading strategy can be a system that includes a combination of different indicators and oscillators, which can finally indicate the entry and exit points as well as profit and stop loss while trading. This system makes you behave like a robot; after understanding and analyzing the market, you’ll wait for the entry and exit points to appear. Trusting this trading strategy is one of the critical keys to successful trading. All the points mentioned so far are related to the technical analysis aspects; otherwise, in the Fundamental field, a daily checklist of various factors affecting the market is needed, which is vital for Fundamental analysis. Find your own timeframe: Chart analysis and trading can be viewed from the 1-second time frame(short-term) to several years(long-term), but every trader should have his own time frame based on his trading strategy. The time frame is important because: The trading strategy should help traders find the entry and exit signals in the same time frame. The Stop Loss(SL) should be determined based on entry points in the same time frame. The time required to reach profitability is estimated based on the same time frame. You can't analyze on a daily time frame and expect to get a very good profit immediately after entering the position. After determining the time frame and with the help of the trading strategy, the following tasks should be done. Studying market analysis to identify market trends, the state of market movement waves, and daily, weekly, and monthly support and resistance zones. Determining the Entry Points(EP) based on the strategy Determining the Stop Loss(SL) based on the strategy Determining the Take Profits(TP) based on the strategy All the above must be done before entering the market, and the only thing done after entering the market is the last step—changing the exit point based on the variable stop loss to increase profit. —------------------------------------------------------------------------------------------------------------------ 🔷 Conclusion: According to the explanations given, it can be understood that analysis and trading have a significant differences. It should be noted that every wrong analysis published on social networks does not indicate that the analyst does not trade well and vice versa. So, to profit from the financial markets, you must be trained in the first step. Become an analyst and then trade. For this, you have to go step by step, don't be greedy, don't rush, so that you can stay in the financial markets and earn profit every day until you get a continuous profit one day.
Education
by pejman_zwin
20
EURUSD: Part 1 funny story!I. Not proficient unconsciously. When you enter the market and start trading, you may think that it's a great way to make money because you hear a lot about it and know of people who have made a lot of money from Forex. However, it's important to note that this is just the first stage and, like when you first learn to drive, it may seem easy at first but can be challenging as you continue to learn. Prices in the market can fluctuate wildly, adding to the complexity of Forex trading. When you're new to trading, it can be overwhelming and confusing. You may find yourself unsure of what to do when you see the prices fluctuate in the market. Without proper knowledge, you may take risks that could potentially harm your trades. You may even fall into a cycle of increasing your trading volume when you feel confident, only to end up losing capital in the long run. This is a common stage for beginners that typically lasts a few months to a year before moving on to the next phase. Continue ... I will release the next part tomorrow, stay tuned.
Education
by Sphyn-Trader
Why 90% Of Traders Lose Money? Trading is a tough business and most people who start in the business lose money. And these numbers aren't small at all, really. In fact, they might even be scary to look at. Therefore, in this article, we will look at some of the most popular reasons why more than 90% of new traders will lose their money in trading. ____ The most common reason why many traders lose money is simply that they want to become professional traders without learning more about it first. They trade without even learning the differences between assets and how trading works. Other people start trading after seeing the hyped stories of millionaire traders on television. ____ Some traders just follow the recommendations of others and do not conduct technical analyses of their own. Traders should review the prices, analyze the volume, check the prior trends and analyze other technical indicators before placing their intraday orders. Rushing just to place buy or sell orders is one of the biggest mistakes intraday traders make. One should conduct proper technical analysis and then start trading. ____ The phrase- “Trend is your best friend” always works in the market. Not following the trend is another biggest mistake that day traders make. Unless a trader has many years of experience and understanding of the market, traders should try to avoid going against the trend. If the market is in a strong uptrend, then one should try to trade in the up direction only unless there is any strong resistance or chart pattern breakout. ____ Some traders follow rumors and recommendations which are spread by the media houses and brokers. This is another big mistake that intraday traders make. One should not blindly follow the intraday trading tips and rumors without their own analysis. Going by these recommendations without conducting your own analysis can cause huge losses. As we have discussed above traders should conduct proper research before following any recommendations or intraday tips. As we all know that the intraday trading is a mixed bag of losses and gains. Not every trade goes right or is profitable. Thus traders should put a stop loss of their trades when doing intraday trading to protect their capital from losses. Please, like this post and subscribe to our tradingview page!👍
OANDA:BTCUSDEducation
by EliteTradingSignals
5
The Story of a Failed Trader | OKXIDEASOnce upon a time there was a man who was a very poor and he belong to a middle class family but he had the ability to dream it. He was 20 years old and he also think that he spend all of had 20 years doing nothing, he was a dreamer. He wanted to become a rich man, he finding ways to become a rich man, he tried almost every thing but failed. One day he watched a video about trading on YouTube and he decided to become a trader, become a rich with trading and fulfill all of had dreams. He started to learn trading, he watched all of educational videos about trading on YouTube and spend had 15 hours every day just watching videos, now he knows about the basic trading he shifted to the analysis part of trading, he started to practice and learn the technical analysis. He find the method that he can trade with, he combined some technical indicator signals and created strategy for himself. Now he had very passionate about trading, wanted to open a real account and start trading with real account. He had some saving money around 500 dollar he deposited that money in the real account and start trading with that money. He started dreaming from the first day of trading and created some trading rules for himself like he had to take 10% risk per trade and don't take that trade which is below 1/1 risk to reward ratio. On the first day he had taken almost 3 trades and win all of them, now he was more excited for trading he had made $192 profit means something around 38% profit on 500 dollar account. He wanted to trade more but he was a little bit smarter one, he think that i am in profit and my wining ratio is 100% so why i just damage my wining ratio and why i just risk my today profit so he had decided to come back tomorrow. On the second day he had $692 total balance in the account, he had to play a little bit more smarter than a previous day and he decided to take 10% risk per trade of the current total balance $692 in the account rather than the starting balance which is $500. On the second day he take almost 4 trades and he won 2 trades out of 4 trades, now the account condition had almost break-even no loss & no profit, he decided to try again and trade more, he finding the reason to trade more and then he calculate today and yesterday total taken trades which is 7 trades, he think that i won 5 trades out of 7 trades so my wining ratio is almost around 70% which is good and i can trade more because my wining ratio is still above 50% so i am still in positive side. He trade almost 3 trades again and he lose all of them, now he had very sad and almost broken, he decided to step back and come back later. He sturdy himself and come back on the third day, now he had facing a little bit draw-down on the third day the total account balance is around 484 dollar, he started looking for the trades opportunity and at the end of the day he took almost 5 trades with the 10% risk per trade but the third day results had also again bad and he lose 4 trades out of 5 and just win 1 trade, he had very shameful from himself, he closed the laptop goes to outdoor and talk to himself. He analysis the current situation of the account, it that point the total account balance is around 276 dollar he almost around 45% in draw-down and the wining ratio had below 50% so now he entered to the negative side. On the fourth day morning he traded 2 trades and he lose both of them now he almost lose the hope and the account condition had around 72% in draw-down and he left only 138 dollar in the account. At the time he give up and he just decided to depend on just one trade, he just waiting for the best opportunity of the day and finally he got the trade but at the end he lose that trade again and he almost blow out had account. After that all he had stressful and sad from almost one week, he decided to leave the trading and move on to the next thing and he looking to find other things that suitable for him because he think that trading is not suitable for him. One month later he just scrolling on the internet and he see the FAQ that 90% of traders lose and only 10% had succeed, now he had a little bit shock and he think that its pretty normal every trader in the 90% had facing that stage which stage that i faced. He decided to come back to trading and start from the zero, he started to modify had strategy and created new rules for had strategy like he set this time risk to reward ratio for had trades is minimum 1/2 and he decided to risk only 2% of the total account also he decided to take only 2 trades per day, this time he opened the demo account rather than the real account and start trading with demo account, he decided to journal had journey and after one month of consistency he hadn't break any rules and when he see the results after month he had profitable, now he feel like stronger and he continue the journey with that same demo account after three months he had similar results and still profitable. In that time he think that i don't have much money and in trading it's required a lot of money to earn a lot of profits, he started to search for that how he had to prove himself to big investors and raise money for himself to trade. One day he searching and he knows about prop firms trading now he had interested in that and wanted to know more about prop firms, he think that this is the big opportunity for himself to become succeed quickly, now he decided to trade with prop firms and buy the challenge from the prop firms, he adjusted had strategy rules and trading plan according to the prop firms requirement, now but the only problem is that he don't have money to actually buy the prop firms challenge. By the way he was dropout from the school after completing had secondary education and so he just setting at the home, he don't have much money to buy the challenge, the pocket money of him had just depend on him father and he hadn't want to say to father to give me extra money because of him father was very poor and he work as a taxi driver, so then he had decided to get the any kind of job for himself and try to earn some money in the form of salary and buy the challenge with that money, he worked hard and after one month he got the salary and then he just swift to the prop firm website and buy the $50000 account challenge for himself, now he started trading with challenge account phase one, on the phase one he decided to risk only 1% per trade, take only 2 trades a day and the every trade risk to reward ratio had to minimum 1/2 after one month of consistency he gained +8% profit, he was in profit but he hadn't achieved the prop firm required profit target which is +10% in that case prop firm gives traders free retake so then he take the challenge again with the new account and new month from zero and he think that my wining ratio for the previous month is almost around 40% with minimum 1/2 risk to reward ratio and my daily limit is 2 trades so i need to increase my daily limit from 2 to 3 because if i traded with the same rule 2 trades a day then i hadn't pass with 40% wining ratio. He calculate some numbers like he think, if i take 3 trades per day so then at the end of the month my all trades had to be 60 trades per month and if i maintain my 40% wining ratio then i can easily pass the challenge with that mindset he started the challenge and strictly follow the rules after month he hadn't maintain the 40% wining ratio and he end up with some loss and failed the challenge, this time he almost faced big depression after some days left he realized had mistake and he think i made mistake that i increase my daily trades limit because of this my wining accuracy goes down, i just forced myself to take 3 trades per day and get trapped into the normal trades. At that time he hadn't left any pathway he almost try everything but at the end he faced failure, him father had now getting older and he decided to step back again he start going to the normal job and start saving 30% of had salary, he do that job for almost one year and after one year later he had some saved money in the bank account to buy multiple 10x challenges, he come back to the trading but this time he hadn't leave the job and he do trading like part time thing. He started had journey again he decided to hadn't give up and repeat the process so then he started buying challenges after one by one in some challenges he failed in phase one in some he failed in phase two in some he almost pass the challenge and got the live funded account but hadn't get payout and lose the account in the first month. The journey had started goes on and he just repeating the process and doing try again and again. Will be continued..... Some lessons from the story > Never open real account in the start, try to learn first on demo account. > Don't try to be smart in the front of the market. > Don't lose hope in draw-downs just repeat the process of your trading plan. > Take every trade with the hope of wining. > Never depend on a single trade. > Don't leave too fast stay in the market. > Give yourself enough time to create the solid proven strategy that works at least for you. > Respect your trading limits. > Don't depend on just trading and never leave your job, consider trading like part-time thing in the starting. > Learn from your mistakes and improve your performance. > Make mistakes but don't repeat that mistakes again. > Never depend on small capital always look for an opportunity. > Journal your journey, record your trading performance and improve next time. > Don't fear from failure. > Be patient, market is here not going anywhere. > Don't force yourself to take normal trades wait for good opportunity always. > Don't count the numbers, you need to count the percentage. > Don't try to be rich quickly. > Step back, if you damaged from market then simply step back and come back stronger don't try to fight. If you learned any other lessons from the story, let me know in the comments. What you feel about one day he will be succeed or just the failure always, also let me know in the comments. I hope you enjoyed the story, appreciate my work with like comments and share. I wish you good luck in trading.
Education
by TheLoserMan
1
Common Fears in Trading and How to Overcome Them As we discussed many types, psychology plans a crucial role in trading. Even the best strategy in the world, can be screwed by emotional decisions. In this educational articles, we will discuss 5 common fears in trading and the ways to overcome them. 1️⃣Fear of the Unknown. Lack of experience make many traders face "unusual" situations on the market: the setups, patterns, fluctuations and formation that they have never seen before. Such events cause inaction and paralyze. Not knowing how to deal with such situations, newbies make irrational decisions that most of the time incur losses. ✔️Solution: The best way to beat the fear of the unknown is to keep learning: reading the books, watching the charts, studying the historical data will help you to be prepared for various situations. Also, your mindset plays an important role here: your adaptability, your willingness to accept the changing nature of the market are essential for your success in trading. 2️⃣Fear of Being Wrong. Testing multiple strategies and trading techniques, the only way for the newbie traders to prove their efficiency is to try them, try them on real market. And of course, the majority of the stuff that you will try won't work. In trading, each mistake costs money, hence, losses will be inevitable. The fear to make a mistake will be chasing you. ✔️Solution: The best way to overcome the fear of being wrong is to build a confidence in your actions. After trying multiple strategies, you will certainly find the one that works. More you will trade with that, more winning trades you will catch, more confident you will become in your system. 3️⃣FOMO - Fear of Missing Out There are thousands of instruments to trade. Many markets are opened 24 hours a day. Of course, you can not monitor them all, and even if you have a fixed watch list of the instruments that you trade, you can not monitor them 24/7. Some opportunities will always be missed. Some trading setups will form while you are sleeping, and accurate patterns will form on the instruments that are not in your watch list. Realizing the fact, that something will always be missed, is painful. For that reason, newbie traders are trying to be present everywhere at anytime. But the paradox is that more options breed more confusion. ✔️Solution: Always remember the fact that patience always pays. Opportunities will always come, but in order to catch them, you need focus. And fewer instruments you have in your watch list, more attention you pay to them. 4️⃣Fear of Losing Money The biggest risk in trading is the fact that your entire trading account can be blown in a glimpse of an eye. Moreover, trading can be learned only by trading. And losses are inevitable, no matter how good you are. That makes newbie traders be scared of opening just one single position. ✔️Solution: I always give my students the recommendation to trade with the amount that they can afford themselves to lose. Consider your trading account as an investment. With each single trade, you are investing in your skills, in your knowledge. You pay the market to teach you. 5️⃣Fear of Not Taking Profit at the Right Time Imagine you opened a trade and the market suddenly starts moving in the direction that you expected. It is coming closer and closer to your target... A few seconds after, however, the market rolls over. You see how your profits start evaporation. Probably you chose incorrect take profit level? Maybe it is the moment to close the trade manually? You are scared that all the profits will be gone. ✔️Solution: Take profit level selection is a very hard element of each trading strategy. The only way to not let your emotions intervene is to build the solid system that proved its efficiency and learn to be disciplined to follow that no matter what. Always remember that no one can teach you how to deal with yourself. How to deal with your emotions. You should go through all these fears by your own and find the way to beat these dragons. The solutions that I shared helped me to beat my dragons, I hope that they will help you to beat yours! ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
5
Dealing With Confirmation Bias In TradingConfirmation bias is a self defeating attempt to impose one's own bias on the market. This most often results in pre-trade chart blindness. When we analyze the market with a preset bias, we will only see confluences, patterns, price action, and setups that confirm our bias. This is the human flaw of needing to be correct. The need to be correct will cause traders to subconsciously ignore chart information that would prove us wrong. Confirmation bias results is the inability to objectively analyze the market. Have you ever noticed that you see a setup and you feel confident before entering the trade that it will work out in your favor based on your analysis. But as you re-assess after entering the trade, you notice multiple confluences that indicate that you may have picked the wrong direction. This is pre-trade chart blindness. You can't see the obstacles to your trade because you have only found the confirmations that support your need to be correct. It is better to allow the market to determine the bias for us. Price leaves us clues to it's direction and intent. It is our job as traders to objectively weigh the evidence for a buy or a sell. Just as a detective collects evidence that will either prove innocence or guilt in a court of law, we must put our trade setups on trial. We must weigh the evidence impartially and without bias to determine if our setups are innocent (valid) or guilty (invalid), without being attached to proving ourselves right or wrong. Realizing that you have subconsciously ignored an important piece of evidence after the trade has been executed is too late. There are 3 ways of dealing with confirmation bias: 1. Remain objective and unbiased in your analysis. Don't tell price what it should do, listen to what price is telling you. Your trade setup is on trial and it will give a confession, but you have to be willing to listen and accept that confession. Warning: Your trade setup may lie under oath (manipulation) so be prepared to always follow the strongest evidence. 2. Take the trade on demo first to quickly move past your pre-trade chart blindness and allow yourself to see clearly what you may have missed due to confirmation bias. If the trade setup is still valid after entering the trade on demo, then take it for real. This will also help with patience and prevent you from getting in too early. 3. Play devil's advocate. For example, if you believe based on the evidence that the trade is a buy, try to find all the reasons that it would be a sell. Weigh the evidence for a buy against the evidence for a sell to identify which has a higher probability. As a bonus you can make the comparison of the risk to reward of the buy and sell setups as another determining factor for which trade to take. Recognize that confirmation bias exists and anyone can be a victim to it. Being self aware of your potential for confirmation bias and taking steps to mitigate your own bias should be a part of your pre-analysis and pre-trade routine.
Education
by MartialChartsFX
Steps to Becoming a Profitable Trader This is a roadmap to becoming a profitable trader. Follow these steps to avoid wasting time and bouncing around from idea to idea. We start with a basic strategy idea we like, then build off it. We MAKE it profitable by following the steps outlined. 1. Focus on One Idea or Strategy Focus on one specific idea. An idea is not “price action” or “technical analysis”. That is too broad. But you could start with the idea of day trading an 8 and 21-period moving average crossover. Or MACD signal crossovers on a 1-minute chart. Or the rounded top or bottom or pattern, or triangles, or Keltner channel bounces off the center line in strong trends. Basically, you need an idea and a time frame (1-minute chart, daily chart, etc). 2. Define the Strategy Since you have your idea, you already know the basic concept of the strategy. If you don’t have a strategy yet, that’s where a bit of research comes in: finding something you like the idea of. There are loads of free strategy articles on this site, in the courses offered, and from other sources such as books, Youtube, etc. Whatever strategy you decide on, it needs to include these key components: A trade setup. The trade setup is what needs to happen for us to even consider a trade. It could be a specific chart pattern, moving average crossover, price action signal, etc. Where, when, and why we enter A trade trigger is a precise event that tells us to get into the trade. When the “trigger” event occurs, it turns a possible trade setup into an actual trade. Where, when, and why we exit profitable trades Where, when, and why we exit losing trades If and how we trail a stop loss. 3. Polish Your Strategy Keep practicing. Keep improving your strategy. Try that on different markets, under different circumstances. Make it better and better till it starts making money. Keep it simple and focused on one trading idea. Get better and better at that idea. Keep refining and building your confidence in the method. We gain confidence by seeing something work and being able to implement it. And that’s what all these steps are about. Please, like this post and subscribe to our tradingview page!👍
OANDA:BTCUSDEducation
by EliteTradingSignals
6
Avoiding and Managing Margin Calls Trading on margin offers a variety of potential benefits, as well as some additional risks, including margin calls. This lesson explains margin calls, your obligations, and what you can do to help avoid them. A margin call is a demand from your brokerage firm to increase the amount of equity in your account. You can do this by depositing cash or marginable securities to your account or by liquidating existing positions to generate cash. To avoid margin calls, you need to understand fully what triggers a margin call, along with the steps you can take to minimize the risk of a margin sellout. Margin calls can be a stressful experience with serious financial implications. Your brokerage firm may sell securities you own—without notifying you and without regard to tax consequences—in order to increase the equity in your account. Therefore, consider these suggestions to minimize the odds of experiencing a margin call: Prepare for volatility: Leave a considerable cash cushion in your account that protects you from a sudden drop in the value of your loan collateral. Set a personal trigger point: Keep additional liquid resources at the ready in case you need to add money or securities to your margin account. Monitor your account daily: Consider setting up alerts to notify you when the value of your positions declines significantly. If you fail to understand the concept of margin or not knowing what to do when faced with a margin call from your broker, you will definitely experience the shock of your trading account blow up. What do you want to learn in the next post?
TVC:GOLDEducation
by UnitedSignals
5
Breaking these habits could be the key to unlocking your successTrading is quite different from usual 9 to 5 job. It includes a lot of psychology, a lot of stress and of course a lot of money. We interact with the invisible soulless entity called the market. How do we treat it? How do we expose ourselfs to the market? Do we behave in the way that brings us wealth and joy? How are your everyday habits holding you back from trading profits? Here's a list of 6 habits to watch out for. 1. Working hard In a simple world you can dig a deeper hole by digging 12 hours instead of 6 hours. Putting in extra hours at work or taking on additional shifts could lead to increased income. This is how we used to get results and money in a regular world. However, the market doesn't reward you for simply spending more time in front of the screen watching price movements. In fact, trying to make more trades or working long hours in trading can be counterproductive. In terms of trading less is more. “Riches, when they come in huge quantities, are never the result of hard work! Riches come, if they come at all, in response to definite demands, based upon the application of definite principles, and not by chance or luck.” —Napoleon Hill, "Think and grow rich" 2. Being aggressive While this behavior may work to intimidate street punks and take their money without harm, it is impossible to scare the market. Being aggressive and pushing too hard can lead to significant losses in trading. Adding to losing positions or using excessive leverage may lead to disaster. The market is vast and indifferent; it does not care about your aggression. Market is your sensai. If you approach the market with an aggressive attitude, you will likely be quickly defeated. Zen-like calmness and discipline are crucial in successful trading. 3. Being needy When shit hits the fan and i am in a loosing trade, i begin to act like a baby. Why the market went against me? It must do what i am expecting! I am crying and i am looking at my deposit, and somehow it still isn't growing. That's confusing! When i was a baby and i was crying parents were feeding me and giving me things. Some adults are still used to be noisy and needy to get what their want. Their strategy called "the louder wheel gets the grease" and in fact that works on a daily basis, because to people around it's easier to get rid of such "loud wheels" by fulfilling their needs. No one will fulfill your needs on the market, and you can't call the CEO of Bitcoin to move the price in your direction. The composite man, who controls the market, doesn't care about your personal needs or desires. Being needy in trading is a surefire way to lose money and miss out on profitable opportunities. 4. Being brave Every attempt to be brave trading cost me a lot. Like really A LOT. Because of markets uncertainty we have to make finance decisions which will affect our lives. Money equals your ability to get resources. Loosing money means being cut off from resources. This is scary! When we are scared, we want to act RIGHT NOW! So instead of getting skills during the time we may decide that we can fix this by being brave in the moment. Bravery alone is not enough. Everytime i didn't use a stop-loss or put my Take Profit way too high - i am trying to brave without a skill. Some wise general once said: "I don't need dead heroes, i need alive soldiers to win"! You don't want to be a dead "hero", you want to be alive and wealthy. “The secret is to make peace with walking around in a world where we recognize that we are not sure and that’s okay. As we learn more about how our brains operate, we recognize that we don’t perceive the world objectively. But our goal should be to try.” ― Annie Duke, "Thinking in Bets: Making Smarter Decisions When You Don't Have All the Facts" 5. Being authentic As a lover of poetry, I value the art of finding unique ways to express ideas and perspectives. However, when it comes to trading, trying to be too original or unique can be a costly mistake. The market operates in a binary way, with winners (composite man) and losers(retail traders). To be a winner, you need to follow the strategies and techniques that have been proven to work, such as Wyckoff, Elliot Waves, and Dow Theory. It's not about reinventing the wheel or being different, but about aligning yourself with the Composite Man and going with the crowd. Don't let the desire to be authentic lead you down the wrong path in trading. 6. Being stuck to your bias Winners always look solid in their beliefs and decisions. Knowing what's good for you and being able to defend it that's what makes a man a great leader in our eyes. This image is a static picture in our brain and we don't see the process behind it. But as a newbie trader i wasn’t able to make a high quality decision simply because of lack of experience. There were no point to stick too hard to my own bias. Now when i am much more experienced it has much more sense to stick to my plan and i have less doubts. Markets are fluctuating. Life goes on. Everything is changing. Bears got over bulls and vica versa. To be a winner it is better to always inventories own beliefs and question if it is still making me feel good? If it is not i must move on. Imagine being stuck in love with a girl you fell love with in the 5th grade, while she already got married, has 3 kids and lives in Kansas. What really improves your trading: -Finding a reputable teacher with real trading experience and a track record of success to learn from, and investing time into obtaining a proper trading education. -Working less and focusing on being in a relaxed and comfortable state of mind. -Experimenting with your working environment to find your optimal trading flow. -Using common techniques that have been proven over time by professional traders, such as Wyckoff Schematics, Elliot Waves, and Dow Theory. -Analyzing the market with an open mind and being willing to adjust your perspective and biases as needed. -Focusing on executing each trade flawlessly, as a positive trading dynamic will take care of the money (as stated by Mark Douglas, author of "The Disciplined Trader") It's important to shift your mindset towards pursuing success. This involves seeking out ideas, methods, and goals that will lead you towards the life you want to live. In my next article, we will discuss what makes a better trader. Make sure to follow me for updates, and let's discuss your trading upds and downs in the comments.
Education
by ijustcoin
Investment Risk Scale When investing funds in any format, you need to understand the investment approach and risk involved in the planning you undertake. Example investment risk categories when investing capital or income are as follows: 1-2 Lowest Risk Very Cautious Risk You are not prepared to accept any exposure to investment loss although you are aware that any investment has some possibility of loss, for example if a bank holding your money was to collapse. The value of your money may also fall in real terms if inflation exceeds the return that your investment achieves. You accept that the returns from your investments are likely to be low compared to the potential returns from investments that have a higher risk rating. 3-4 Cautious Risk You are prepared to accept a higher risk of capital loss in return for the opportunity to earn more than from deposits and low risk type investments but do not wish to take as much risk as with a medium risk strategy. While there can be no guarantee, investments in this category are not likely to fluctuate in value as sharply or as quickly as a portfolio largely made up of equity investments. 5-6 Balanced Risk You are prepared to accept that the value of your investments will fluctuate with the aim of achieving higher returns in the medium to long term. You accept that there is an increased risk of capital loss over investing in more low risk investments. Medium risk investments can fluctuate in value more rapidly and quickly over a short periods of time than more low risk investments. 7-8 Adventurous Risk You are prepared to accept fairly high levels of risk with your investments, with the aim of achieving higher investment returns in the longer term. You accept that this may mean that the value of your investments may fluctuate considerably over a short periods of time and that there is an increased risk of capital loss compared with a lower risk investment strategy. Therefore, you may consider investments mainly in equities/shares and is likely to involve investment in various overseas markets as well as UK markets. This increases risk because of currency fluctuations as well as investment risk. Risk can be reduced by diversifying your investments across sectors and markets 9-10 Highest Risk Very Adventurous Risk You are prepared to accept high levels of risk with your investments, with the aim of achieving higher investment returns in the longer term. You accept that this may mean that the value of your investments may fluctuate significantly over a very short periods of time and you could lose a significant proportion (possibly all) of your investment. Please, like this post and subscribe to our tradingview page!👍
OANDA:BTCUSDEducation
by EliteTradingSignals
6
⚠️ Risk Management Examples Showcase📍What Is the Risk/Reward Ratio? The risk/reward ratio marks the prospective reward an investor can earn for every dollar they risk on an investment. Many investors use risk/reward ratios to compare the expected returns of an investment with the amount of risk they must undertake to earn these returns. A lower risk/return ratio is often preferable as it signals less risk for an equivalent potential gain. 📍Consider the showcased example: An investment with a risk-reward ratio of 1:3 suggests that an investor is willing to risk $100, for the prospect of earning $300. Alternatively, a risk/reward ratio of 1:4 signals that an investor should expect to invest $100, for the prospect of earning $300 on their investment. Traders often use this approach to plan which trades to take, and the ratio is calculated by dividing the amount a trader stands to lose if the price of an asset moves in an unexpected direction (the risk) by the amount of profit the trader expects to have made when the position is closed (the reward). It is very important to calculate your R:R before entering a trade. Sometimes the trade might not be worth the amount you're risking vs the reward you can get. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
2