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VRVP and Fixed range profiles.In this post I wanted to do a breakdown of how to combine two profiles, so we had this big fall away from the VRVP, we had declining sized bars, we had less orders in leymans terms, so we can use a fixed range profile of the fall away to get a better reading of the orders in detail in the fall, remember VRVP gives a big scope, fixed gives a narrow scope, so price entered an area of Low volume which I labelled in the chart. So we now look at the fixed range profile we see the largest bar of the fall, which I have labelled with the green chequered line, so price is miles away from fair value on the VPVR, it naturally wants to return here as shorts close their positions, and buyers find value in the currency, so we wait for the fixed profile to break chequered line and we aim back to the volume build up, and I want you to start calling this 'fair price', see how simple and easy that was? So when price leaves the main VRVP use a fixed range on the down move to find the POC (Point of Control) AKA green chequered line, and aim back to the fair price, this is how you find value when trading! Now when you see these crazy moves, I want you to break them down in a sensible and logical approach, treat trading like a business! become a master of finding Value! More to come! ZenFlo
Education
by ZenFlo
Volume Profile and why you need it.Volume profile is an underused and quintessential part of trading, it tells you build up of orders, it tells you fair price, and it tells you where the majority of the liquidity is. You can see in this chart, I have taken it apart piece by piece to show you the basic mechanics and why price moves the way it does, now be honest, how many of you rushed into selling GU last minute because the price was collapsing? Well the funny thing is despite not being alone in doing so in the retail trading world, big banks and instituitions were already two steps ahead as expected, check the Volume profile, notice how it declined on a massively falling currency, what this is telling you is that the amount of exchanges is very low, as the shorters pushed price down they began to close positions, also what would have happened is the amount of retail money and money that isnt associated to high end firms would have started to see negative positions so what do they do? they have to close these sells with buys! so not only are the big banks taking profit, they are also using you as rocket fuel! as the masses of small money becomes negative/trapped/stoplosses, price reacts in an equal and opposite reaction, price rallies. So where is price heading too? it is heading back to an area where it can happily trade, and this is shown by larger bars on the VP, price wants to be happy, to be happy it needs to transact alot! So two takeaways... One, dont rush into falling or rising currencies! as they are heading into areas of low volume and will use mean reversion to run you over... Two, Utilise the fact price has low VP build up to your advantage! use price action and catch moves like that GU rally back to an area of more transactions! and a final little trick, use the VP to tell you if your orderblock is real or a figment of your imagination! feel free to drop some questions below, I may have to make more posts on VP for it to make sense. Maybe I will also make some posts on examples of trading using it, and what to do and not to do. Thinking about it, there is more posts to do, I need to show how to trade mean reversion and 'mountain to mountain' tactics. Hope you find this post interesting, as I take a journey of taking back the layers of many traditional strategies, indicators and the deeper world of maths, I am doing this to try help new traders actually get somewhere! So please give me a like and a follow, I want to expand my reach here on tradingview :) All the best ZenFlo.
Education
by ZenFlo
5
Time ManagementHow long and when I should trade? These are the main questions beginner traders have. In other words, what kind of time management should you have? Unlike stock market that is strictly tied to a schedule, the currency market works round the clock. That's why many newbie traders start to have a 24-hour life when they stare at the charts all day. They don't have a slightest clue when it's better to work and when to rest. Most traders, especially beginners, trade in their free time. This is understandable, because it's extremely difficult to combine work and trading. However, some people are lucky enough to look at charts right in their workplace. Professional traders who work from home don't sit at charts all the time. They work in a certain trading session, make forecasts, open positions and go away from the charts. Trading sessions Although forex market is open 24 hours a day, traders who live in different time zones need to rest and sleep, just like all normal people. That's why price movements in the markets depend on the trading sessions. By the time an amateur trader living in the U.S. finishes his job, the Asian markets have almost closed; the European markets will also close soon, and the American market has a few hours left. As a result, the trader's main resource; time is limited. So, what to do with it? Nothing complicated. Adapt our habits and trading methods to make the best use of the time available to us. If you have limited time to trade, you have to make the best of it. On the one hand, if you have the whole day to trade, it gives you a lot of opportunities, but on the other hand, it increases the risk of "overtrading". After all, no one has ever gotten healthier from hours and hours of continuous looking at charts. Time management rules Now let's figure out how to manage our time, which is just as important as risk and money management. In forex trading we have 24 hours a day and that's good. However, most of us have a job to do, which means we have only a few hours left for trading, which is not good. So, the first thing to do is to decide exactly when you trade. When to trade Trade only when you have dedicated time to do so. Trading is impossible without concentration, without the ability to fully immerse yourself in the world of charts. You can't help the kids to do their homework and wash the dishes, while opening trades at the same time. It will instantly turn into an ordinary game of chance. Ask yourself a simple question, say "when do I have free time"? Think of trading as a job that is done in a clearly allocated period of time. Let’s just say, if you trade from 9 to 11 p.m. That’s great. This is your trading time. Now make sure no one disturbs you during this time. Finish all your work before this trading period. Free it entirely for trading only. Consistency is the key to success. If you trade when you have a free then you're just gambling. And it will end up, as it always ends, with the loss of capital. Therefore, you need to understand at once that you cannot trade on the opening of all markets at any given time. You should focus on one specific market, which at this time shows exact pattern that you need. For example, higher volatility for trend strategies or lower volatility for consolidation strategies. Free up your time to trade Let's say you trade from 9 to 11 p.m. This period is your only chance to make money. If you miss it, you're left with ultra-risky trading. That's why all your business ends before 9 p.m. Turn off your social media. From 9 to 11, it's just you and the charts. Turn off everything that will bother you. If you miss even this small amount of time, spending it on chores or browsing on the Internet, you’re not going to be a professional trader. Trading is a business; it is potentially your new full-time job. Treat it responsibly. If not then after a couple of months you'll give it up after losing a certain amount of money. Preparing for trading Time is set, all chores are done so that nothing gets in the way. You need to get ready for the trading. If you’re hungry, eat something. Prepare your body and mind. You have to activate your brain. A beer that you drink in the evening will have exactly the opposite effect. You only have two hours. Be prepared. Just 5–10 minutes of exercise, and that's enough to spot market patterns with a keen, tenacious eye. Specialization Pick 1or 2 your favorite assets, say EUR/USD and GBP/JPY. Another option is to go through 10-20 assets at once in search of the ones that will show the behavior you need during those 2 trading hours. If you run through a bunch of assets, your attention is immediately scattered, you get tired quickly. Even one asset is difficult to analyze, and you want to complicate your trading tenfold. Start small, with 1-2 currency pairs or indices. Who earns the most in any profession? The one who specializes in something one, who is an expert in his field. No overtrading For profits and losses, you need to set clear limits. This is extremely important. Beginners very often overestimate their strength and, forget about money management, try to "win back" after a series of failures. Time does not matter to them at all. They often overtrade and don’t notice how: • Fatigue has accumulated • the market has changed • concentration is broken • they lost more than they earned Stop Trading Most novice traders find it extremely difficult to stop. They will not follow the rules described here. And they will realize their mistake only after some time. They will understand that: • You can't trade when you're tired, it's a self-destructive practice; • You can't trade when you're not ready for it; • You can't open random trades when you only have five minutes. When your allotted time to trade is over, just stop. Take a steady, deep breath. Step away from the chart for at least 5 minutes. Try to put everything out of your mind and think about what you will do tomorrow. That's it for today. You have done all you can, no matter how it went. Write down your conclusions about the past trading hours in your trading diary. Time limit Such rules allow to set up trading for people who are extremely limited in time due to office work. Another option is known to forex traders is to work with large timeframes (usually daily). It is possible to come to work in the morning, to open positions and check them a couple of times, in the afternoon or in the evening after work. So, don’t rush. The markets will not go anywhere. Calm down, put everything in its place and you will see how positively it will affect the results.
Education
by DeGRAM
8
Traders’ common psychological mistakesA beginner trader inevitably faces a number of mistakes that will cost him/her a lot of money. Many deposits will be lost as well as nerve cells through the trading journey. We usually pay for our trading mistakes with money and mental health. Don't you think the price is too high for that? If you try to avoid common trading mistakes, you’re going to have a good chance to save your money and your mental health. Not adapting to market conditions One of the most common mistakes is the psychological attempt to "force" the market to adapt to the trading strategy or system. How does this happen? A novice trader finds a trading strategy which seems to him profitable and effective. That moment trader immediately will be imprisoned by his own illusions, and he’ll lose any idea about the market in general. As we all know trading is a fight, a war. To be a consistently profitable trader you have to adapt to market conditions, not otherwise. Let's say the RSI didn't work out in a particular trade? If your indicator leads to losing trades before opening another trade just stop for the moment and instead look at the big picture and understand this: • Do you need it at all? • In what market conditions does your indicator work? • When is the best time to use it? • What systems and strategies does it work best with, but with which it is not? You need to be flexible and adapt continuously. The market in trend and consolidation are two different markets, and approaches to them should also be different as well. Adaptation and creating a flexible trading system is the right path to trading success. A constant search for the best strategy We get caught in the endless loop of searching for that magic system that will bring us a lot of money. And we lose so much time and energy trying to find next the best strategy. Do you know why strategies work for some people and not for others? The answer is experience. That's all. Without a trading experience, in the first days of using any strategy, you only have theory of probability, which is against you. Searching for the best strategy is always useless because you can't suddenly get the experience that was invested during the building of the strategy. Only with a set of experience can you get consistent results. That is how by using only two moving averages, some people can make a fortune in the markets, but a beginner trader doesn't have the slightest chance. In any business, only professionals earn good money. And in trading most people for some reason decided that they do not need to work and study. Find one strategy which suits your personality and backtest it. Make it your own. Don't avoid your mistakes It hurts like hell to continually lose money, doesn't it? But that's what happens in trading, all the time. Especially in the first months, when there are so many losses that after six months there are only a few left. The pain from losses is so great that people ignore mistakes and do not even want to look into them. And that is a fatal mistake. You've paid a money for a negative experience. So, to take the time to sort out the reasons why the trade didn't work out. Do it, or else this mistake will happen again and again! Until you lose it all. You should not be ashamed or think you are a stupid trader or something like that. You have to calmly admit the mistake and learn from the losing trades. Write and break it down in a diary, make some conclusions, and remember them. Stop making Excel spreadsheets with projected profits You're sitting there thinking like: "So, how much money am I going to earn if I let's say will make 100$ a day? It will be $500 in the week. If increase the lot size, a month will be so much, and after 1 year I am going to be a millionaire”. It's only on paper, but we somehow manage to spend that money that doesn’t exist. When traders create those types of spreadsheets, they do not take into account the psychological factor at all. Factors such as: • fear • greed • the stress of losing money. There is none of this in the spreadsheets. There's just a bare, primitive exponential curve, based on the assumption that the market will steadily give you profits. The market is not a bank with guaranteed interest on a deposit. Reality will be so different from your spreadsheet that you will throw it in the trash very quickly. Spreadsheets with imaginary income bring only harm. Conclusion Trading can be a source of stable income, but "stable" just means positive deposit growth over a period of time. It is really possible to close each month with profits. But it may be, for example, from 0.01% of the capital at the beginning of the month to 100% or possibly more. And the first one will be more realistic than the second one. The art of the professional trader is to manage this percentage and increasing a positive mathematical expectation of each trade. Do not set yourself goals in specific amounts; it will break you when you face your first failures, because there will be beautiful hypothetical figures in the spreadsheet, while the actual deposit will decrease, and this cognitive dissonance will destroy a beginner trader, because millions on the paper will never coincide with reality.
Education
by DeGRAM
10
Average True Range... and BollingersATR is a great indicator designed to show you the previous ranges of the previous candles depending on the value chosen, in this example I have done 6 periods, so you can see in this chart I have highlighted when we have peaks and troughs and one thing to do is compare the times of day this activity happens, you can see at certain times the atr climbs, it stalls at others or can fall, so ATR is showing us previous candles range, so if you are in a trade you want the range to be growing usually so that your trade can head to TP, but the important thing to takeaway is the fact that price is moving alot, this is because it is experiencing higher level of trading activity price is trending, where as a falling ATR reading means typically things are slowing down or accumulating, remember this doensnt give direction though as price can still move up or down despite a falling range per candle. However what it can do is tell you good times to look for trades, you can filter down by time the best time to take trades based on your strategy winning or losing in the peaks of troughs. ATR can also be used to determine stop losses of TP, by taking the the reading and using a 2xreading stop loss or TP, the more volatile the market the bigger your stop losses and tp will be, but more volatility generally correlates well with that idea, not only does it offer greater protection it also prevents missing out on good moves. So 2nd part is Bollinger bands we can see how it works, it basically again is telling you the range of things, so Id like you to compare the reading on ATR to the Bollingers, and you can see when ATR falls and the Bollingers are squeezing tight we have very little to trade, energy is low and range is small, In crypto I have heard this term called the crab which I have to say... I do find quite amusing. When ATR is rising the Bollingers expand creating a wide cloud, so on the last box, where price falls despite ATR falling... what is the difference this time? That is right, Bollingers are not squeezed together, which tells us the ATR reading is acting like it is small and stuck in a squeezing formation but in fact we are just in an expansion of the Bollinger moving slowly. What do I want you to take away from this? Just a deeper thought about which market conditions are best for your strategy and how to avoid times which will not really offer a good trade yet ect, and have a look for patterns in how you trade around these volatility indicators! Happy trading... More to come
Education
by ZenFlo
All about the GBPUSDGBPUSD is one of the most popular and widely traded trading instruments on the Forex market. Due to its high liquidity and high volatility, it provides opportunities for daily or intraday trading. In this article we will look at GBPUSD and give valuable tips for successful trades. Currency Overview The British pound is the main currency pair representing the currencies of the two largest economies in the world. The quoted currency is the US dollar, and the base currency is the British pound. Interesting fact: Many currency traders refer to the GBPUSD pair as a "cable". Currencies are seriously affected by economic reports such as GDP, employment reports, inflation, etc. Nevertheless, the activity of the central bank is one of the most important factors of currency volatility and price direction. This applies both to decisions made by the Bank of England and to the units of the Federal Reserve System responsible for interest rate decisions. From a historical point of view, the GBP/USD pair has been trading since the early 1970s, when both the United Kingdom and the United States switched to floating exchange rates. The best time to trade The average daily volatility of the cable is large enough to take advantage of short-term price trends. In addition, the currency pair is very stable and suitable for technical and fundamental traders. The best time to trade GBP/USD is when the sessions in London and New York overlap. At this time, the maximum trading volume is observed. The spread during this period will be the narrowest, which means the least slippage in trading. The window for trading between the London and New York sessions is between 8:00 and 12:00 Eastern time. The second best time for trading is the opening time of the London session, that is, the interval from 3:00 to 4:00 Eastern time. Most European markets are trading at this time, so this pair has a large trading volume. Five economic data affecting the exchange rate: First of all, these are reports on the GDP of the United Kingdom and the United States. Usually, the initial estimates of GDP have the greatest impact on the price of currency pairs, because they are published earlier, giving traders a preliminary assessment of the economic state of the country. The second type of reporting is related to monetary policy. In particular, reports and decisions on interest rates published by the Bank of England and the US Federal Reserve System. Trade balance indicators. As a rule, the trade balance shows how much capital enters the country and how much is withdrawn from it. As a rule, an increase in the trade surplus is considered a sign of a healthy economy, while a trade deficit is considered not such a favorable event. GBP/USD traders should pay close attention to the unemployment rate in the US and Britain. Essentially, the unemployment rate measures the percentage of the total workforce that is unemployed but currently looking for work. Obviously, the higher the unemployment rate, the greater the harm to the entire economy. Inflation indicators. This includes the consumer price index and the producer price index. The consumer price index measures the inflation of a basket of goods and is considered an inflation index at the consumer level. The PPA measures inflation at the producer or wholesale price level. Both inflation indicators provide important information about potential long-term price trends. However, the producer price index is considered a leading indicator and therefore may be more useful for predicting the next price trend. Correlation GBPUSD can often move simultaneously with other major currencies, especially the Eurodollar pair, and can often depend on other major currencies in the opposite direction. The correlation can exist in different time frames, including four hours, eight hours, or the whole day. Moreover, these correlations are dynamic and can change over time. Trading Strategy The strategy is called the Big Ben strategy. In fact, this is a strategy for breaking the opening range of a currency pair. The logic of the strategy lies in the change in the volume of volatility, which tries to restore the initial price movement after the Japanese session. In particular, the trading volume of GBP/USD decreases significantly after the end of the New York session, and then during the Asian session. Therefore, most large institutional traders will not trade before the start of the European session. This usually leads to market fluctuations within the range of the GBP/USD currency pair during the night period. Therefore, when the currency pair begins to increase trading volume at the beginning of the European session, it is possible to trade on breaking the opening range. Given that interbank sellers create a range on both sides of the market during the opening period, a potential exit from the range usually leads to a trend phase at the beginning of the trading session. Rules for a long entry using a Big Ben set with five-minute candles: Plot the range of high and low prices between the Frankfurt Open Championship and the London Open Championship. This is defined as the opening range. The price action during this period should be limited to a range of Enter the breakout and close above the range extension level by 38%. The stop loss should be set in the middle of the opening range. The take profit will be equal to twice the length of the opening range measured from the breakout point. Rules for short entry using a Big Ben set with five-minute candles. Plot the high and low price range between the opening in Frankfurt and the opening in London. This is defined as the opening range. The price action during this period should appear to be limited by a range Enter the breakout and close below the range extension level by 38%. The stop loss should be set in the middle of the opening range. The take profit will be equal to twice the length of the opening range measured from the breakout point. resume Now you know what news you need to follow in order to trade GBPUSD profitably. In addition, you know the best time to trade and even the trading strategy. GBPUSD is a very volatile pair, with proper trading it can bring you a quick profit. But do not forget about the risks. Stick to the strategy! Good luck! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
4
What is a moving average and do they work?Moving average is an average of price closes over a certain amount of time, so at a base level they rise when price rises and fall when price falls, so why are they important? Because they give you a sense of the average direction of price over a certain amount of time, if you take the chart at face value you are not even witnessing one price close at that specific moment in time! unless you are then well done you lol, so the moving average is giving us data of maybe 89 or 50 or 200 ect, this overall analysis of the trend can defiantly aid your decision making, for example if you use two moving averages like the ma8 and ma89, what we can look at is the moving average MA8 reverting back to test the baseline which is the MA89 in this example, so price is now attempting to some extent to change trend, if it breaks lower than the baseline the line will start falling! MA89 will start declining as negative closes come in and alter the formula, that is why these areas can offer great buying opportunities or selling depending which side of the baseline you are, Price will test the baseline and bounce in strong trends before price will eventually break the baseline down the line. I will follow this post up with a post on moving averages being used on indicators now we have the first bit out the way.
Education
by ZenFlo
6
Pivots continued...So we continue on from the previous pivot post, I have now worked out all the levels and shown you the formula to do this for yourself. These levels like I said in previous post are great for when you are trading intraday, they can work as trade points or used to put stop losses the other side off. S3 and R3 are notoriously tough to break, you can watch price usually turn around at these levels and return back to the pivot and lower support or resistance levels. Pivots enable good risk reward when trading and offer good chances of safer trades... For example a sell just under the pivot you could use a stop loss just above the pivot and aim for S1, this has a good probability aswell as offering a nice reward for our risk. Happy trading :) more breakdowns and strategies coming soon. ZenFlo is out.
Education
by ZenFlo
How to generate more profitsTrading requires entries similar to how a computer would enter positions, what I mean by this is entries should be so disciplined it hurts, when you are sitting there bored in the early hours of the morning and you take sloppy trades this has an effect on your results! you should create enough discipline to be able to trade a specific time frame when your entry and exit system provides better returns. Adding rules for confirmation will also lead to better entries, things such as a Baseline, what this will do is create a layer of the bike lock, now you never take buys below the baselines, meaning you no longer take reversals, your winrate will improve and your profits improve. For GBPUSD it is wise to trade over the London session and you can see just how much the pair moved over this session, your trades have a better chance at delivering profits in this zone. You may find your strategy works well in other timezones, and I suggest following the path, dont be restricted if it works elsewhere, but get some good backtest results.
Education
by ZenFlo
5 PHASES OF TRADE ANALYSISHello everyone! Trading is hard mental and emotional work. The market is a dangerous place that will show all your disadvantages. Without strategy and control, it's not even worth trying to beat the market. Today I want to talk about the five phases that a good trader must go through when trading on the market. PHASE 1 The first step for a good deal is to choose the right instrument. To do this, you must be able to understand stocks, currencies, indices. You must understand the specifics of each tool, be able to understand the data of reports and news, and use the information correctly. The big mistake of beginners is trading all instruments indiscriminately and without preparation. You should understand that, although there are similarities between the markets, they still have differences. YOU should understand that the bankruptcy of a small company will not affect the market, but Google's problems can. An increase in the interest rate in a third world country does not have much impact on the world, unlike the actions of the US central bank. Study the specifics of the market and follow the news, then make a choice what you will trade. PHASE 2 After you have selected a suitable instrument for trading, you must open a position. To do this, you must have a strategy prepared in advance, in which the entry conditions will be prescribed. This topic is a separate article because the issue of opening a deal is very important. You will be able to know where to open a position and where not to do it only when you try existing entry strategies, analyze the results and do something of your own. After finding a suitable entry strategy and waiting for the right conditions, open a deal. PHASE 3 After opening a deal, all you have to do is follow the market and the news. But don't overdo it. Beginners often sit in front of the screen monitor for a long time and monitor every price movement, which eventually leads to fatigue, and this leads to mistakes. Of course, if you are engaged in scalping, for example, you will follow the movement, your trading style also decides how much you will be behind the monitor screen, but do not overdo it. Open a position, watch how the price reaches important levels, but do not overdo it. PHASE 4 Then you have to close the position. The strategy of closing a deal is also important and there are many styles of closing deals. You have to choose your strategy and close the position according to it with profit or loss. The main thing is not to deviate from the rule and not to forget about the stop loss. PHASE 5 Beginners, as a rule, after closing a deal, go further for a new position and this is a big mistake. The resulting profit is maddening, and newcomers think they have understood the market. Losses spoil the mood and you don't want to remember them, so beginners quickly run on. Not performing an analysis of the completed transaction is the biggest loss. You lose the most at this stage, because by analyzing the transaction, you will avoid losses in the future and get even more profit, without doing the analysis you will continue to trade poorly. Therefore, at the end of the day or week, allocate time to analyze all transactions, draw conclusions and make no more mistakes. conclusion As you can see, it is not enough just to open a position and close it, you need to prepare, and then analyze everything. These steps will help you reach a new level as a trader, if you haven't started trading like this yet. Good luck!
Education
by DeGRAM
3
How to Calculate a Pivot point.In this quick tutorial I have shown how you can take the formula (high+low+close)/3 to create a dynamic support and resistance level, which you can use to make trading decisions, only buy above pivot and sell below. Now it is handy to have an indicator to do this manually for you everyday, as every day a new pivot is generated. This pivot will filter down possible bad entries by putting you the right side of the trend, wait for breaks of this level to tell you potential trend changes... If anyone is interested I could do a tutorial on how to create the Support 1, 2, 3 and Resistance 1,2,3 levels... at the end of the day nothing wrong with learning the mechanics of your trading system! Pivots can work extremely well on an intraday timeframe, 1m,5m,15m charts will often see trades appear around these levels.. Keep strong and prosper. ZenFlo
Education
by ZenFlo
How to use EMA8 and EMA89 in your trading.Here I have shown how the EMA8 and EMA89 can lead to good results by using the EMA89 as a baseline and applying the rule, buys above the average and sells below. To find entries look for pullbacks to the average of breakdown and breakout of order blocks, things like inside bar to find momentum should also find results, you could experiment with oscillators in order to find these pullbacks easier. However most of the entries will usually give some good price action and this is important to keep an eye when using this strategy, you want likely reversals so use candles to enter that typically have a higher % chance of changing direction, things like engulfing candles and pinbars, not only will this keep the risk low, it will enable better rewards and consistency. Hope someone out there can find some use of this post :)
Education
by ZenFlo
Consistent Profitability, how long does it take?How long does it take to become consistently profitable as a trader? This is one of the most searched questions in the Internet when it comes to trading and the beauty is there's no right answer. When you do receive an answer, it's miss leading to beginners and everyone gets confused. There's a solid chance that you've looked at this before, or perhaps you just seen the title of this post and clicked on it. How long this is going to take you to master the arts of the market. There's a good chance you sat there and questioned, "what am I doing? how long are we going for? What should I be goal setting in terms of time with trading?" if you see yourself in this position or you've seen it previously, I finally have the answer you need to hear. How long does it take you to become consistent and profitable trading? As long as it takes. There's so many different sources which claim so many different time limits that it takes to master Forex trading or crypto trading or industry, trade, whatever it might be your embarking on. All of them say the same around two to three years to become a consistent and experienced professional. Yet, where are they getting this data from? I know traders that master trading within six months. I also know other traders that traded for six years and couldn't get the look of it. There's no time frame to put on trading in terms of success and consistency. It isn't a university course, we don't sit down and do all the course procedures and even if we do, the bare minimum, still graduate in three years. That's not how trading works. The question you should be asking isn't how long is this going to take me to master, but rather how many hours are you going to put into it. Day in, day out, how much work are you going to do? That is what will determine how long it takes you to become successful in this industry. There's so many people that will see 2 and a half years to become successful trader, then they trade half heartedly as if it is a hobby. They don't concentrate too much. They just trade here in there. Two and a half years pass and they'll call themselves seasoned professionals because they have been in the market for 2 1/2 years. Yet they couldn't show a single piece of consistency within their trading. Then there's other traders that put in hard work. I'm talking 8 hours a day of pure grueling backtesting, trade management, risk management, analyzing everything, and they put an exponential amount of work in and in six months they can outperform anyone else who's ever step foot in the market. Time is not an important factor. The amount of work you are putting in is the important factor. Yes, time will tell whether or not you can be successful in this industry, but if you're measuring time based off of when you've been interested or when you've been trading a little bit and rather than the actual hard, grueling hours that you're putting into trading. Then you will never get to that level you want to get too. You have to put in the hard yards. This industry is very advertised as easy, simple and the money making machine. There's a number of different factors in which we can blame for that, but we're not going to dive into that today. What I want to share with you is this is not easy. This is actually one of the hardest professions you could ever do, because work doesn't just stop, we don't just clock off and get paid the same amount every week. It's all dependent on the amount of time and effort you put into the market. Do you want to be profitable and consistent in trading? Then put in the hard work. Stop Googling how long it's going to take. Stop having a look at other people's success stories. Knuckle down and put in the hard work. Then in two years, three years, six years, 10 years, whatever it's going to take. Look back and be proud. When someone asks you how long did it take you? Don't answer about six years or two years, be honest. How many hours did you have to invest? How hard was the work?
Education
by the5erstrading
74
EUR/USD most popular currency in the world!A little history… The euro is a new currency that was born in 1999. It was created on the basis of the "European monetary unit", which replaced (abolished) the entire national currency of the countries of the European Union. Therefore, the peculiarity of the euro is that it is sensitive not only to the macroeconomics of the entire EU, but also to the individual economies of France and Germany. It is the most popular currency pair in the world, representing the two largest economies in the world. The euro was created to facilitate international trade between European trading partners. The pair has experienced significant fluctuations since its founding in 1999, caused by many global events, such as the technology boom that led to the real estate price bubble and the European debt crisis. The European Central Bank (ECB) plays the role of the issuer and regulator of the pan-European currency. The main support for its creation in 1998 is the banking system, which is based in Frankfurt am Main, and its fund was created on the basis of the participation of all representatives of EU countries. In addition to its issuing, supervisory and monitoring activities, the ECB charter is responsible for maintaining the financial stability of the eurozone. General technical specifications More than a third of the total volume of transactions in the foreign exchange market fall on a pair of euros to the dollar. This is due to the economic scale of the countries. The base currency is the euro, the dollar is the quoted currency. In other words, the euro-dollar exchange rate shows how many dollars you will have to pay for one euro. If there is positive news in the US and you predict a rise in the dollar, then you should sell. If you predict the growth of European currencies against the dollar, then you should buy quotes. What factors do the euro dollar exchange rate depend on? The main factors contributing to the change in the euro-dollar price revolve around the monetary policy of the United States. There are several levers that can help the Fed regulate and change cash flows in various ways: Open Market Interventions; Increase or decrease of the discount rate; Managing the level of reserve requirements. The Federal Reserve Board may immediately change the terms of the reserve and the discount rate. By changing one of the three factors, the Fed affects the amount of funds and ultimately changes the real ratio of the dollar to other currencies (including the euro). Thus, the Fed's decision is a long-term priority factor for the euro currency pair. The main factor affecting the euro/dollar exchange rate is the interest rate of the Federal Reserve System. This indicator represents the daily payment of interest on loans by credit institutions (banks). When it is necessary to tighten or weaken the national currency, US financial regulators will change interest rates. Traditionally, these measures have had a significant impact on both the foreign exchange and the stock market. Euro to Dollar exchange rate The European Central Bank regulates the monetary policy of the EU countries. The main decision on the European exchange rate is made by the Governing Council, consisting of representatives of national banks of the EU countries. The main objective of the ECB's work is financial stability and full response to the consequences of the global financial crisis of 2008. Serious economic problems of all EU countries can have a negative impact on the euro exchange rate. This is evident from the dynamics of euro prices during the economic crises in Greece and Spain. Macroeconomic emissions are also a very important factor influencing the strengthening or weakening of the euro. The most important news is from Germany. This is due to the fact that Germany is the largest economy in the European Union. The most important information is the state of GDP, the theoretical and real inflation index, the growth or decline rates of industrial production, as well as unemployment figures. It is important to take into account the deficit and the effectiveness of current measures to combat the economic downturn of the economy. Techniques for making a profit There is a strong inverse correlation between the values of EUR/USD and USD/CHF, which shows an approximate relationship between the euro and the franc. This is due to the fact that Switzerland's economic situation largely depends on the economic and political development of the EU. In most cases, after the euro falls against the dollar, the euro/franc currency pair immediately falls. Given the correlation between the British pound and the euro, the pound/dollar pair has a significant correlation. Euro Dollar chart To make money in euro dollars, traders need some skills. Fast trading in 15 minutes or even 5 minutes can allow you to make a significant profit. The frequent volatility of this quote allows you to implement the most daring and risky trading strategies. A moving average or a combined indicator (for example, MACD) will be able to give a fairly accurate entry point. Exit from the position can traditionally be based on a breakout of the price channel. When using the chart for 1 day or more, the deviation and reversal of the position can also be based on the intersection of the moving average. Conclusion EUR/USD has a relatively small history, but in this short time the pair has become popular with many. High volatility creates many opportunities for earnings, but do not forget about the risks. The pair is dangerous for untrained traders. Good luck!
Education
by DeGRAM
2
The reason for the stagnation in tradingMany times people trying to reach a new level face an invisible obstacle in their business. At that moment, life turned into a routine. It seems to us that there are no changes in life and there is no way forward. This is quite unpleasant. In those periods when it seems to us that our development has stopped, we become unhappy, because, after all, progress is the key to happiness. There are three reasons why we feel like we're marking time, and sometimes it's a combination of these three reasons: 1. Your physical condition Poor physical condition can increase negative emotions. Sports activities cause positive emotions. When you are physically active, you change your mental state and destroy your negative model. Thus, maintaining a good physical condition will cause positive emotions, which is one of the key ways to get out of stagnation. Develop a positive state of mind and get rid of all the negative by changing your physical condition. 2. Time limit One of the reasons we think we are stuck in one place is excessive attention to the past or the future. But constant thoughts about the future or the past will not change anything. As you know, the past cannot be changed, and the future is unknown, so there is no point in worrying about them. We have the right to change only the present, that's what we need to focus on. Stop flying in the clouds of the future, stop suffering because of the past, get busy with the present. 3. Sitting on the plateau Why do some people make breakthroughs that take them to the next level, while others can't? What is the difference between a master and an amateur, a creator and a speaker? The first dig deep to find an answer that will help them overcome stagnation, they do not stop fighting and searching and eventually achieve goals, reaching a new level. 5 signs that bring you closer to a breakthrough 1. Routine. You're tired of everything. You are tired of your financial problems, tired of your boring job, tired of carrying an extra 20 kilograms. Everything annoys you and you want to change something. 2. Unsatisfied. Whatever you do, it doesn't work for you anymore. Maybe it is unprofitable or uninteresting. Or maybe you are tired of the lack of energy, which, in your opinion, is necessary to achieve the desired result. Perhaps your current method has been successful in the past, but it is not suitable for your current conditions. 3. Border. This is the moment when change is needed. If you are on the verge of bankruptcy or, for example, if you have serious health problems. This is the point of no return, you are on the edge of the abyss and all you have left is to take a step, make an effort to become better and reach a new level. 4. Insight. You are illuminated by an idea or a deep understanding of something that opens up a new world for you. You begin to see the world in a new way, you have found a goal that can help you get out, your eyes are burning. 5. Open the door. The door opened... You enter it. At this stage, you will feel a surge of strength, realize that everything is not in vain, and you will want to move forward with great enthusiasm. Do not give up, do not stop, study. Good luck! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
12
Methods to improve your tradingAny professional trader should monitor his daily routine. Traders make a schedule, follow it and remove from life what is unproductive. Beginners don't spend enough time making plans. A typical trading day for beginners can consist of constant monitoring of price movement, even during lunch. Today we will talk about how to make your trading day calm and productive. 1. Sleep Sleep is still an important part of any person. Do not neglect sleep, because sooner or later the body will require rest, without which it is simply impossible to trade calmly and in a disciplined manner. Needless to say, your attempts to trade, analyze the market and stick to your trading plan with a lack of sleep simply will not succeed. Perhaps the first and most important way to ensure a proper trading regime is to provide yourself with a good, full night's sleep for at least 7 hours a day. • Do not drink coffee or other caffeinated beverages during the day. Try drinking herbal tea instead; • Do not go to bed late thinking that you can sleep off the next day. Research proves that our body functions as productively as possible when we go to bed at sunset and wake up at dawn. This means that you need to go to bed early and wake up early; • Create a proper sleeping environment. As a rule, this means that your bedroom should be cool (i.e. not too hot), dark and quiet. 2. Healthy breakfast It has long been known that breakfast is the most important meal of the day. After sleep, the body needs a boost of energy. Find time for a healthy breakfast every morning: take the necessary amount of protein, whole grains and some fruits. As soon as you wake up, drink a huge glass of water. Most people don't do that. Drinking water saturates your body and also helps to control appetite between meals, and since your body mainly consists of water, it is necessary, first of all, to drink water rather than any other drink. 3. Physical exercises Regular exercise is the main key to your motivation, attention and focus on everything in your life, including trading. Physical exercise gives us a good feeling physically and mentally, and this is very important for the development of proper trading habits and productivity. Regular physical training will keep you focused at the highest level, it will also help you sleep soundly at night, which, as noted above, is an extremely important factor for the proper functioning of cognitive activity, which is obviously crucial for success in trading. 4. Hobbies and entertainment You definitely don't want to turn into a trading hermit. You don't want to turn into a guy who sits in his underwear in front of the charts in the hope that his positions are moving in his favor, and allowing every victory or defeat to affect his happiness. Trading is a way to potentially improve your life, but it doesn't have to be your life. To succeed in trading, you need to have outside interests so that you are distracted from excessive market analysis and so that you feel happy and confident. If you still don't have any hobby, then find some. Even if your hobby is just spending time with your family, that's fine, just don't be the "guy" who sits in front of charts all day long, because, I assure you, it's not good for you and your trading. 5. Plan your day Make sure that you plan the key levels of the chart during or at the beginning of the week. Take some notes about the trend, your trading advantage, potential trading signals that you see. The easiest way to do the analysis is when the market is closed, so you will avoid the pressure caused by the price movement. Make a plan for the week and every day and follow it without paying attention to the noise. The famous French microbiologist Louis Pasteur once said: "Chance favors a pre-prepared thought." 6. Practice your trading strategy This may seem obvious, but if you haven't mastered your trading strategy yet, or if you don't have a trading strategy at all, you won't be able to develop a trading regime. Many traders start in the wrong direction because they don't really have a clear trading method yet, but, instead, they have a vinaigrette of different methods and trading "tips" that they read here and there, mixed everything into one pile, "thinking" that they got, thus, your trading strategy. You need a trading strategy that you can learn and master and that makes sense and is simple. 7. Discipline and consistency Discipline, routine and patience are things that people usually consider "boring" or uninteresting, but they should not be perceived in this way at all, especially with regard to trade. You have to understand and accept these things as the ones with which you make money in the market. After you review them in the light that "discipline and everyday life are beneficial and useful," they will take on a different meaning for you. Remember - trading should not be some random event without a structure or a firm approach and without an underlying regime, and if that is the case, you will end up wasting all your money by giving it to the market. You need to develop your own trading program that would fit your schedule and your personality, and then stick to your trading regime, maintaining cold discipline so that you can see how it works in your favor over a long period of trading and that it brings you income.
Education
by DeGRAM
70
Advantages of trading on the daily chartHello everyone! Today I want to discuss with you the advantages of trading on the daily chart. Not all traders understand why daily timeframes are so attractive, but professionals trade on them. Let's figure it out! But first, let's recall the words of Ed Seikota: Constantly looking at the charts is like playing roulette. You'll end up spending the whole day playing. I check my charts only once a day after the market closes. You are learning patience Patience is a key quality that is necessary for success in trading. If you trade on daily charts, you will have to learn patience, because you will have to wait for the right signal for several days, or even weeks. But don't be afraid, it will only increase your chances of success and allow you to use only the most reliable and profitable entry points. Free all day In trading, you will have to sacrifice not only your time, but also put some of your money at risk. When you trade on daily charts, you have a whole free day to go about your business and earn money. This will allow you not to rely only on trading and diversify your income. You automatically filter the market noise A variety of events can occur during the day that will affect the price movement. The daily chart allows you to filter intraday volatility spikes and focus only on the closing price of the trading session, without being distracted by anything else. The technical signals and patterns that appear on these higher timeframes are much more reliable than the patterns you encounter on lower timeframes. In many cases, the price movement on lower timeframes is simply market noise. Reliability The closing price level, which is the result of a whole day of struggle between buyers and sellers, is a reliable signal about the current state of the market. When making your trading decisions, you should always pay attention to signals from higher timeframes. Many novice traders who come to the financial markets tend to short-term trading on intraday timeframes. These traders believe that by trading on lower timeframes, they have more trading opportunities, and thus they can get more profit in the long run. Although theoretically this type of thinking may sound logical, in fact it is just a myth. You should realize the fact that support and resistance levels, chart patterns, price action patterns, indicator signals are much more reliable on higher timeframes. You avoid over-trading Over—trading is one of the main problems faced by traders. When you use a daily timeframe, you focus on the global picture of the market, and you do not need to constantly open new deals. You can choose only the best setups. Some traders are addicted to trading and have a psychological need to constantly enter and exit the market. It's like an adrenaline rush, which they constantly need. Obviously, this can be counterproductive and even lead to the drain of the entire deposit. There is another type of traders who tend to constantly monitor their positions and analyze charts. These traders are very active, and it can be very difficult for them to make a deal. They are also usually emotionally traders, inclined to act on intuition. The best advice I can give to any trader who has difficulty controlling his emotions in the market is to analyze the market only once a day. You find the strongest trends In trading, you should always try to follow the path of least resistance. This means that if the market is moving in a certain direction, the price is likely to continue its movement in this direction until there are factors indicating a reversal. The trends on the daily chart are very strong and you will rarely fall into the trap if you use the daily chart. You will only need 15-30 minutes to analyze the market You don't have to spend whole trading sessions in front of the monitor and analyze the market in robot mode, which usually leads to its reanalysis. You can safely look at the chart and determine whether there is a signal to enter the market or not, and then place an order to open a deal. Possible risks are reduced Every trader should have a detailed risk management plan. As part of this risk management plan, you should take into account factors such as the average risk per trade, the risk-to-profit ratio, how you will handle drawdowns, as well as the maximum amount of leverage that you will use. Some novice traders believe that they cannot trade on daily charts because they would have to place a stop loss at a relatively large distance in points compared to a smaller timeframe. They think they will take too much risk regarding the size of their small account. However, this assumption is completely wrong. Even if the average daily range of a trading instrument is much higher than the hourly or four—hour range, the only thing a trader needs to do in this case is to reduce the size of the position in order to adapt to a potentially larger stop loss. And thus you will actually reduce your leverage, which in turn will reduce your overall exposure to risk. You have a lot of time left to enjoy life Isn't that why we started trading? It is foolish to deny the fact that almost everyone comes to the stock exchange for money and financial independence. And chaining yourself to the monitor screen for 8 hours can take away from you what you have been striving for. In order to be an effective trader, you do not need to spend a whole working day analyzing charts. In fact, rarer and more selective trading can lead to better results. And as an added bonus, you can also keep your day job so that you always have an additional source of income. Conclusion Day trading provides many advantages, frees up your day and helps you avoid trading on false signals. You will become disciplined, your capital will not jump sharply up and down, you will become a professional! Good luck! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
9