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Understanding the Differences between Traders and Investors Trading and investing are two approaches to the financial markets, each with distinct characteristics and objectives. While both involve buying and selling financial instruments, understanding the differences between traders and investors is crucial for anyone looking to navigate the markets effectively. This article will provide an in-depth comparison between traders and investors, highlighting their key differences, strategies, and goals. 1. Time Horizon: Traders: Traders aim to profit from short-term price fluctuations. They closely monitor market trends and frequently execute orders within hours, days, or weeks. Investors: Investors focus on long-term growth and may hold their investments for years or even decades. 2. Risk Tolerance: Traders: Traders are often comfortable with higher levels of risk, as they aim to profit from short-term market volatility. Investors: Investors tend to have a more conservative risk appetite. They prioritize capital preservation and are willing to ride out short-term market fluctuations for potential long-term gains. 3. Trading Strategies: Traders: Traders utilize a variety of strategies such as day trading, swing trading, and scalping. They rely on technical analysis, charts, indicators, and patterns to make rapid buy and sell decisions. Investors: Investors typically adopt a buy-and-hold strategy, focusing on long-term trends and the fundamental analysis of companies or assets. 4. Market Focus: Traders: Traders often concentrate on specific markets or asset classes, such as stocks, currencies, commodities, or derivatives. Investors: Investors have a broader focus, investing in diverse asset classes such as stocks, bonds, real estate, or mutual funds. Their goal is to create a well-diversified portfolio for long-term growth and income generation. 5. Profit Objectives: Traders: Traders aim to generate regular, short-term profits. They capitalize on market inefficiencies, fluctuations, and price movements to execute trades and make profits from both rising and falling markets. Investors: Investors are primarily focused on long-term capital appreciation and income generation. They typically seek to benefit from the overall growth of their investment portfolio over a more extended period. 6. Emotional Factors: Traders: Traders usually need to stay emotionally detached from their trades, as rapid decision-making and swift actions are often required. They often practice disciplined risk management and maintain strict control over emotions like fear and greed. Investors: Investors have a more relaxed approach and can afford to take a long-term perspective. While they still need to manage emotions during market downturns, their investment decisions are less driven by short-term market fluctuations. Conclusion: Understanding the differences between traders and investors is crucial when deciding which approach aligns best with your financial goals, risk tolerance, and time commitment. Both trading and investing have their merits, and individuals may choose to adopt either approach or a combination of both. By considering factors such as time horizons, risk tolerance, strategies, and goals, individuals can effectively navigate the financial markets and work towards achieving their desired outcomes. What do you want to learn in the next post?
TVC:GOLDEducation
by UnitedSignals
10
THIS IS THE REASON YOUR STRATEGY DOESN'T WORKThe title is brash, I know. But before you click away, answer these two questions: 1) How many strategies have you tried? 2) How many strategies have you backtested through several years and thousands of trades? If you have tried more strategies than you've backtested rigorously, then stick around because that's probably the reason why you're losing money. Imagine this. Florence is a novice trader. He's seen the thousands of dollars in profit a kid 10 years younger than him can generate. He's seen the kid flexing his Lambo on Instagram. The kid mentions RSI a few times, so Florence assumes the RSI indicator is the secret to insane profits. Florence is chomping at the bits and loads up a fresh Webull account with $3,000. Every time the RSI is above 70 on a stock, he shorts that stock. Lo and behold, after 5 trades, Florence's account now sits at $2,300. He concludes the indicator does not work. Florence perseveres and is determined to find the secret strategy to quick profits. He scraps the RSI and studies "support and resistance" trading from a few youtube mentors. He reloads his Webull account back up to $3,000. With a refreshed vision, he shorts anytime a stock is at resistance and longs anytime a stock hits support. Sadly, after 10 trades, his account is down again, this time to $2,600. Florence is flabbergasted. The story goes on. He attempts implementing strategy after strategy and continues to lose money. Unfortunately, many of us are Florence. We did what he did. We got into the game without a blueprint or game plan. And this is why my title is brashly stated, "If you don't read this you are going to lose money," because it's true. If you resemble Florence even in the slightest, basing the success of your trading strategy on a handful of trades, then how do you expect to know what strategy is actually successful? I don't blame you for approaching trading like Florence. In today's age, we are seeing the market oversaturated with traders and trading coaches, or even worse, "trading influencers". As with any influx of the masses, we are going to get the scumbags trying to get you to buy their image and product by falsifying the simplicity and ease of trading. If you are jumping between strategies without quantifying its success and failure rates over thousands of scenarios, then stop trading right now because you are going to continue losing money. Find a backtesting service or at the least log every single trade you take. Whatever it is, slow down and find proof of failure before declaring failure. I don't want you to fall into a never-ending hole of searching for the "right" indicator/strategy. The truth is, most of the strategies you've thrown away probably work and you don't even know it.
CME_MINI:ES1!Education
by thetradedoc
GoldViewFX - Market UPDATEHey Everyone, We got the break above the channel and 1976 which followed with a nice push up during Tokyo session allowing us to take profit for 50pips. However, the full gap to 1993 was not complete and now open. Price has now dropped back into the channel breaking 1976 towards 1963. 1963 zone is also inline with the channel half-line and will likely provide support for a bounce. A break below the half line will see the channel bottom tested. We will keep these retracement levels in mind when buying dips inline with the overall Bullish trend. Managing a tight risk allows us to manage the swings to fall back into the wave. We will continue with our plans to buy dips and track the movement level to level using ema5 cross and lock on our Goldturn levels. Our long term projection still remains Bullish but bearish level targets are due for correctional retracements. BULLISH TARGETS 1963 - DONE EMA5 CROSS AND LOCK ABOVE 1963 WILL OPEN THE FOLLOWING BULLISH TARGETS 1976 - DONE AND POTENTIAL 1993 AT A PUSH. BEARISH TARGETS 1948 1936 EMA5 CROSS AND LOCK BELOW 1936 WILL OPEN THE SWING RANGE SWING RANGE 1917 As always, we will keep you all updated with regular updates throughout the week and how we manage the active ideas and setups. Please don't forget to like, comment and follow to support us, we really appreciate it! GoldViewFX XAUUSD TOP AUTHOR
OANDA:XAUUSD
by Goldviewfx
13
3 Best Market Trading Opportunities to Maximize Profit Potential Hey traders, In the today's article, we will discuss 3 types of incredibly accurate setups that you can apply for trading financial markets. 1. Trend Line Breakout and Retest The first setup is a classic trend line breakout. Please, note that such a setup will be accurate if the trend line is based on at least 3 consequent bullish or bearish moves. If the market bounces from a trend line, it is a vertical support. If the market drops from a trend line, it is a vertical resistance. The breakout of the trend line - vertical support is a candle close below that. After a breakout, it turns into a safe point to sell the market from. The breakout of the trend line - vertical resistance is a candle close above that. After a breakout, it turns into a safe point to buy the market from. Take a look at the example. On GBPJPY, the market was growing steadily, respecting a rising trend line that was a vertical support. A candle close below that confirmed its bearish violation. It turned into a vertical resistance. Its retest was a perfect point to sell the market from. 2. Horizontal Structure Breakout and Retest The second setup is a breakout of a horizontal key level. The breakout of a horizontal support and a candle close below that is a strong bearish signal. After a breakout, a support turns into a resistance. Its retest is a safe point to sell the market from. The breakout of a horizontal resistance and a candle close above that is a strong bullish signal. After a breakout, a resistance turns into a support. Its retest if a safe point to buy the market from. Here is the example. WTI Crude Oil broke a key daily structure resistance. A candle close above confirmed the violation. After a breakout, the broken resistance turned into a support. Its test was a perfect point to buy the market from. 3. Buying / Selling the Market After Pullbacks The third option is to trade the market after pullbacks. However, remember that the market should be strictly in a trend. In a bullish trend, the market corrects itself after it sets new higher highs. The higher lows usually respect the rising trend lines. Buying the market from such a trend line, you open a safe trend-following trade. In a bearish trend, after the price sets lower lows, the correctional movements initiate. The lower highs quite often respect the falling trend lines. Selling the market from such a trend line, you open a safe trend-following trade. On the chart above, we can see EURAUD pair trading in a bullish trend. After the price sets new highs, it retraces to a rising trend line. Once the trend line is reached, trend-following movements initiate. What I like about these 3 setups is the fact that they work on every market and on every time frame. So no matter what you trade and what is your trading style, you can apply them for making nice profits. Good luck!
OANDA:XAUUSDEducation
by VasilyTrader
34
EUR/USD - technical analysis - 17/07hello, I would like to keep things as simple and clear as possible without too many stories! blue zone = demand zone - from where I expect it to grow or at least to have a reaction purple area - supply area - from where I expect the price to decrease or at least to have a reaction liquidation point = for the order flow to be respected, the price must take over that point protected point = if the price touches that point, it is possible to see a trend change liquidity = the price will take that liquidity (do not transact there) MARKET STRUCTURE at the finest level
by KronFX
2
Learn Why You Should Study Multiple Time Frame Analysis In my daily posts, I quite frequently use multiple time frame analysis. If you want to enhance your predictions and make more accurate decisions, this is the technique you need to master. In the today's post, we will discuss the crucial importance of multiple time frames analysis in trading the financial markets. 1️⃣ Trading on a single time frame, you may miss the important key levels that can be recognized on other time frames. Take a look at the chart above. Analyzing a daily time frame, we can spot a confirmed bullish breakout of a key daily resistance. That looks like a perfect buying opportunity. However, a weekly time frame analysis changes the entire picture, just a little bit above the daily resistance, there is a solid weekly resistance. From such a perspective, buying GBPUSD looks very risky. 2️⃣ The market trend on higher and lower time frames can be absolutely different. In the example above, Gold is trading in a bullish trend on a 4h time frame. It may appear for a newbie trader that buyers are dominating on the market. While a daily time frame analysis shows a completely different picture: the trend on a daily is bearish, and a bullish movement on a 4H is simply a local correctional move. 3️⃣ It may appear that the market has a big growth potential on one time frame while being heavily over-extended on other time frames. Take a look at GBPJPY: on a weekly time frame, the market is trading in a strong bullish trend. Checking a daily time frame, however, we can see that the bullish momentum is weakening: the double top pattern is formed and the market is consolidating. The sentiment is even changing to a bearish once we analyze a 4H time frame. We can spot a rising wedge pattern there and its support breakout - very bearish signal. 4️⃣ Higher time frame analysis may help you to set a safe stop loss. In the picture above, you can see that stop loss placement above a key daily resistance could help you to avoid stop hunting shorting the Dollar Index. Analyzing the market solely on 1H time frame, stop loss would have been placed lower and the position would have closed in a loss. Always check multiple time frame when you analyze the market. It is highly recommendable to apply the combination of at least 2 time frames to make your trading safer and more accurate. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
6
Three Effective Commodity CFD Trading Strategies Whether you're a seasoned trader or new to the world of commodities, understanding the various strategies that are available may play an important role in building a successful trading plan. In this article, we’ll explain three types of commodity CFD trading strategies and provide examples of each that you could get started with today. Commodity Trading Explained Commodity trading refers to the buying and selling of raw materials and industrial components in the financial markets. While Forex trading deals with currencies, commodities trading primarily deals with physical goods. Typically, commodities fall into four broad categories: energy, metals, agriculture, and livestock and meat. There are many reasons why people trade commodities. Some trade them as a way of hedging against inflation; this is particularly true of precious metals. Others might use them to take advantage of a booming economy, as demand for energy, metal, and food usually increases in times of economic growth. Commodities trading is a practice that dates back thousands of years. In the past, early civilisations had to buy and store these goods physically, but nowadays, there are many types of commodity trading available. In the 21st century, traders don’t need to buy and store goods; they can trade them as a contract for differences (CFDs). More about commodity CFD trading can be found on FXOpen. Also, traders can gain exposure to commodities through stock and exchange-traded fund CFDs, which you’ll also find on our platform. 3 Examples of Commodity CFD Trading Systems Broadly speaking, commodities CFD trading strategies can be divided into two categories: fundamental, based on economic factors and news, and technical, based on past price movements and market trends. We’ll be looking at three technical strategies. If you’d like to follow along, you can use a risk-free demo account. Please note that given the wide spreads usually seen in commodities, it’s preferable to use at least 15-minute charts. 1. Trading Breakouts A breakout refers to the rapid price movements seen after an area of support or resistance is broken. However, breakout trading may be harder than it seems. A “fakeout” - a move beyond a support or resistance level that quickly reverses - may trap traders and put them in the red. Therefore, some traders prefer to wait for confirmation and enter with a stop-limit order. - Entry: Once an area of support or resistance has formed (A), price needs to break through and create a swing high or low (1). When the price returns to the level, an opposing high or low should form (2). Then, you may set a stop limit order at the previous high or low (1) to catch the confirmed breakout. - Stop Loss: The strategy suggests setting a stop above the swing high or low that creates the retest. - Take Profit: Traders may take profit at a level that gives them a 2:1 risk/reward ratio. Some prefer to trail their stop, while others might move it to breakeven and manually take profits at future areas of support and resistance. 2. Trading Trends Trend-following strategies have a potential to do well with commodities, given that their trends can last weeks, months, or even years. This specific strategy uses moving averages to confirm the direction of the trend with additional confluence from the Relative Strength Index (RSI). - Indicators: RSI (14), Exponential Moving Average (EMA) of 21 (grey) and 50 (orange). - Long Entry: When EMA 21 crosses above EMA 50 and RSI is above 50 (showing bullishness), the first retest of EMA 21 may be considered an entry point (2). - Short Entry: When EMA 21 crosses below EMA 50 and RSI is below 50 (showing bearishness), you may enter on the first retest of EMA 21 (1). - Stop Loss: For longs, you could set a stop just below EMA 50 and trail as the moving average moves up. For shorts, you could set a stop just above EMA 50 and trail as the moving average moves down. - Take Profit: Traders usually start taking profits at a level that gives them a 2:1 reward/ratio. Alternatively, you might take profits when RSI dips below 50 for a long trade or above 50 for a short trade. Trading Ranges While commodities can be highly volatile, like other assets, they also experience ranges. Range trading is another type of planning and trading of commodities. The use of volatility-based indicators, like Bollinger Bands, alongside an indicator that tells you whether price is trending or ranging, like the Average Directional Index (ADX), may be helpful when trading ranges in commodities. - Indicators: Bollinger Bands (20, 2), ADX (14, 14). - Entry: The theory suggests a trader goes long when ADX is below 20 and the price touches the lower Bollinger Band and goes short when ADX is below 20 but the price touches the upper band. - Stop Loss: There are a couple of ways to set a stop loss here. One way might be to use a set number of pips, or perhaps roughly half the size of the entry candle. Alternatively, a trader could set a standard deviation of the Bollinger Bands to 3 and use the newly-formed bands as a stop. - Take Profit: Since this is a range trading strategy, it’s expected that positions are closed on touching the opposing band, but a trader can choose to leave some in and move their stop at breakeven to potentially be involved when the range breaks out. Ready to Start Your Commodities CFD Trading Journey? Now that you have three potential strategies under your belt, you may start thinking about your next steps. If you’re thinking of testing these strategies on a live market, you may try the TickTrader platform. You’ll have the chance to gain valuable experience with these strategies and see what works best for you.
FXOPEN:XAUUSDEducation
by FXOpen
Unveiling the Advantages of Trading a Single Currency Pair Introduction: In the world of foreign exchange (forex) trading, traders have an array of currency pairs to choose from. Among the various strategies employed by forex traders, a popular approach is to focus on trading a single currency pair. While some may argue that diversification across multiple currencies is more beneficial, trading one currency pair comes with its own set of advantages. In this article, we will explore these benefits and shed light on why concentrating on a single currency pair can maximize your trading potential. 1. Increased Specialization: By focusing on a single currency pair, traders gain the boon of deep specialization. They can dedicate their time, energy, and resources to thoroughly studying and understanding the dynamics, trends, and drivers specific to that particular currency pair. In-depth knowledge allows traders to make more informed decisions, leading to higher chances of profitability. 2. Clarity in Market Analysis: Trading a single currency pair enables traders to develop a comprehensive understanding of the factors driving that particular pair's movement. They can delve into technical analysis, monitor news releases, and study relevant economic indicators with greater precision and efficiency. This clarity in market analysis helps traders identify patterns and make accurate predictions, consequently enhancing their trading strategies. 3. Enhanced Risk Management: Concentrating on one currency pair enables traders to manage risk more effectively. They can closely track and analyze historical data, volatility patterns, and overall market behavior. 4. Time Management Advantage: Trading a single currency pair allows traders to manage their time more efficiently. Instead of spreading their attention across multiple pairs, which require continuous monitoring and analysis, traders can focus on one pair and streamline their research efforts. This time management advantage permits traders to conduct thorough analyses, develop effective trading strategies, and implement risk management techniques without being overwhelmed by the sheer volume of currency pairs. 5. Optimized Trade Execution: Trading a single currency pair empowers traders to execute trades with greater precision and speed. Being highly specialized in a particular pair enables traders to spot opportunities promptly and take advantage of favorable trade setups. Conclusion: While diversification has its merits, trading a single currency pair offers unique advantages that can significantly impact a trader's success. Increased specialization, clarity in market analysis, enhanced risk management, time management advantage, optimized trade execution, and the potential for becoming an expert are some of the key benefits that traders can enjoy by focusing on one currency pair. As with any trading strategy, it is essential to conduct thorough research and practice disciplined risk management to realize the full potential of your trading endeavors Please, like this post and subscribe to our tradingview page!👍
BITSTAMP:BTCUSDEducation
by EliteTradingSignals
12
XAGUSD (SILVER) ____ INCOMING BEARISH MOVEHello Traders, XAGUSD (Silver) still has some bearish moves to deliver. This can be confirmed by the bullish view of the dollar index (inserted below). While price retraces to the weekly order block, I will be waiting. Once price enters the order block, I will be looking for a continuation of the bearish move by looking for a CHOCH on the 1-hour timeframe. Follow me for more analysis like this. US DOLLAR INDEX ANALYSIS USDCHF ANALYSIS USDSGD ANALYSIS Cheers, Jabari
FOREXCOM:XAGUSDShort
by jabariofafrica
USDSGD ____ INCOMING BULLISH RALLYHello Guys, As I had previously published, the dollar index seems to be setting up for a bullish rally (analysis inserted below) and USDSGD which is correlated with the dollar index is aligning accordingly. You will also notice that the price has buy-side liquidity to hunt. I have set an alert to know when price trades into the daily order block from which I will be looking out for a CHOCH on the 1-hour timeframe to go long. Also, USDCHF is aligning for this long (analysis inserted below) Follow me for more updates. US DOLLAR INDEX ANALYSIS USDCHF ANALYSIS Cheers, Jabari
Long
by jabariofafrica
USDCHF ____ INCOMING BULLISH RALLYHello Traders, I'd keep this simple... Price traded into a strong demand level and on the weekly timeframe, a CHOCH is evident (look at your weekly timeframe). Last week, the price hunted the trendline sell-side liquidity and I speculate that the price could trade to the daily order block just below sell-side liquidity (equal lows). Also, the dollar index also gives a view that the dollar will rally which supports the view on USDCHF. Follow me for more updates. US DOLLAR INDEX ANALYSIS Cheers, Jabari
Long
by jabariofafrica
US DOLLAR INDEX ____ INCOMING BULLISH RALLYHello Guys, As I have stated most times that at some point, the dollar will rally and reach higher prices. I suspect we have gotten to that period. I will insert my previous analysis for this. With this view of the dollar rally, I would be looking out for USD pairs that have a good structure in alignment with the dollar rally. Pairs like: USDCHF, USDSGD & XAGUSD have very interesting price structures. I advise you to monitor them. Follow me for more updates. US DOLLAR INDEX (Previous analysis) Cheers, Jabari
FX:USDOLLARLong
by jabariofafrica
AUDNZD ____ INCOMING BULLISH RALLYHello Guys, You would recall that at a certain point, I was looking for a short on this pair (inserted below) this short was to form the retracement to go long long-term. However, I was unable to join the bearish move as I was stopped out at breakeven. Since then, I have kept AUDNZD on my radar and right now, It is approaching a weekly order block which could generate the much-needed demand for it to commence the bullish rally. I would suggest you monitor this pair also when it trades into the weekly order block. You can also notice that I have set an alert on my chart to know when price trades into the order block. Follow me for more updates like this. AUDNZD (Previous analysis) Cheers, Jabari
Long
by jabariofafrica