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Smart Money Concept: A Focus on Liquidity and Trade ExecutionSmart Money Concepts (SMC) empower traders to understand the invisible hand of institutional players ("smart money") in markets. By analyzing liquidity, the lifeblood of price movements, SMC equips you to anticipate potential breakouts and identify high-probability entry points. Let's dive into key concepts: Liquidity Types: ● ERL (External Range Liquidity) : Areas of past significant price swings (highs and lows), attracting orders and potentially acting as support/resistance. Look at Previous Day/Week/Month H/Ls and Previous Trading Sessions H/Ls (Aisa, London, & NY) ● IRL (Internal Range Liquidity) : Areas within the current trading range where the price paused or reversed, indicating potential order clusters, like FVGs. Price moves from one Liquidity Zone (ERL) to the other (IRL) & vice versa! Price Zones: ● Premium/Discount Array : Based on the recent price leg, calculate the 50% midpoint (fair value) and extend 50% above and below to create a high-probability trading zone in regards to where the price should be going next, for example, if the price is in the lower part of the recent leg, then we should expect a move back into the Premium Array. Highs & Lows: ● LTH/LTL (Long Term High/Low) : Turning points over longer timeframes, often acting as strong magnets for price. ● ITH/ITL (Intermediary Term High/Low): Significant swing points, usually highest / lowest point when the price reaches an imbalance zone. ● STH/STL (Short Term High/Low): Recent swing points within the current trading range, acting as potential pivots, you will find those on both sides of the ITL/L. Identifying Imbalances: ● Gaps: Unfilled price spaces suggest imbalanced supply/demand, potentially leading to price retracements to fill the gap. ● FVG (Fair Value Gaps): Areas where price gapped through support/resistance, leaving an "unfair" imbalance, attracting corrective moves to rebalance price. Trade Execution: ● OTE (Optimal Trade Entry): Look for confluences of various SMC elements (liquidity zones, imbalances, price patterns) for high-probability entry points that match the 61.8 / 70 Fibonacci levels. ● Kill Zones: Increased volatility during major market openings (London, New York) can offer high-risk, high-reward opportunities. This is when you should be trading! Remember: ● SMC is a complex framework, master each element before combining them for strategic analysis. ● Backtest and paper trade your SMC strategies to build confidence before risking real capital. ● Market dynamics are fluid, adapt your analysis and trade execution based on evolving price action. By understanding these SMC concepts and their interplay with liquidity, you'll gain a good understanding of market movements and improve your trade execution. Remember, practice, patience, and disciplined risk management are crucial for success in any trading strategy.
OANDA:XAUUSDEducation
by financialflagship
IRM ENERGY 240 MINS TIME FRAMEThe Structure looks good to us, waiting for this instrument to correct and then give us these opportunities as shown on this instrument (Price Chart). Note: Its my view only and its for educational purpose only. Only who has got knowledge about this strategy, will understand what to be done on this setup. its purely based on my technical analysis only (strategies). we don't focus on the short term moves, we look for only for Bullish or Bearish Impulsive moves on the setups after a good price action is formed as per the strategy. we never get into corrective moves. because it will test our patience and also it will be a bullish or a bearish trap. and try trade the big moves. we do not get into bullish or bearish traps. We anticipate and get into only big bullish or bearish moves (Impulsive Moves). Just ride the Bullish or Bearish Impulsive Move. Learn & Know the Complete Market Cycle. Buy Low and Sell High Concept. Buy at Cheaper Price and Sell at Expensive Price. Keep it simple, keep it Unique. please keep your comments useful & respectful. Thanks for your support.... Tradelikemee Academy
NSE:IRMENERGYLong
by Tradelikemee
1
[EDU] 3 quick tips when to cut your losses short in tradingHello fellow traders , my regular and new friends! Welcome and thanks for dropping by my post. We all don't like or don't want to have a losing trade. But this is inevitable in trading, we have to face it. And, Letting your winning run and cutting your losers short has always been the mantra for profitable trading. This is where I wanted to share 3 ways that you can go about doing this. When market structure that you anticipated for the setup is violated. So what it meant over here is that ,for example, you have a trade entered upon the crossover of a particular pair of EMA, e.g. 50 and 100. Once the crossover flips, you should look to exit the trade. Or, when your pre-determined stop-loss is hit, and, you should never pull your stoploss. This is quite self-explanatory because the pulling of stoploss level can get you lucky a few times but making it a habit can have disastrous impact to your trading. Thirdly, Negative price action. This happens when the price action has consistently moved against your trade, meaning to say that constantly you are in the red (losing money). This could be an indication for you to re-evaluate your setup and move on by cutting your losses small if need be. This is especially true if you have noticed that trades that you are in green often validate your entry almost immediately and have positive price actions. Hope these pointers help you better evaluate the trades you are in and make the best decisions out of it! Do check out my stream video for the week to have more explanation in place. Do Like and Boost if you have learnt something and enjoyed the content, thank you! -- Get the right tools and an experienced Guide, you WILL navigate your way out of this "Dangerous Jungle"! -- ********************************************************************* Disclaimers: The analysis shared through this channel are purely for educational and entertainment purposes only. They are by no means professional advice for individual/s to enter trades for investment or trading purposes. *********************************************************************
Education
by Shadowing_The_Big_Boys
[EDU] 4 Numbers You should Know so to be Profitable in FX Hello fellow traders , my regular and new friends! Welcome and thanks for dropping by my post. Here are 4 numbers you should know so that you can become profitable in FX Trading: *Check out the Formula in the Chart picture* Position Size Determine the appropriate position size based on your risk tolerance, account equity, and the distance to your stop-loss level. Ensures that you are risking a consistent percentage of your trading capital on each trade. Risk and Reward Ratio Helps you assess the potential reward relative to the risk in a trade. Margin Level This Represents the ratio of account equity to used margin, expressed as a percentage. It helps you assess the health of your trading account and whether you have sufficient margin to cover your positions. Pip Value (in USD Terms) Its represents the monetary value of a single pip movement in the currency pair. Understanding the potential profit or loss in a trade and is dependent on the position size, pip increment, and exchange rate. These calculations provide essential insights into risk management, trade analysis, and account performance. Do check out my stream video for the week to have more explanation in place. Do Like and Boost if you have learnt something and enjoyed the content, thank you! -- Get the right tools and an experienced Guide, you WILL navigate your way out of this "Dangerous Jungle"! -- ********************************************************************* Disclaimers: The analysis shared through this channel are purely for educational and entertainment purposes only. They are by no means professional advice for individual/s to enter trades for investment or trading purposes. *********************************************************************
Education
by Shadowing_The_Big_Boys
What is the best XAUUSD trading strategy?When it comes to trading XAUUSD (Gold/US Dollar), there’s no one-size-fits-all strategy. The “best” approach is highly individual, depending on your trading style, risk tolerance, and personal preferences. In this article, we will explore four popular trading strategies for XAUUSD: Trend Trading Breakout and Retest Trading Swing Trading Scalp Day Trading We will consider strategy pros and cons, trader personality factors, highest potential yield, stop losses and other lifestyle factors. 📈 Trend Trading The concept of this strategy involves identifying and following the prevailing trend in the XAUUSD market. Traders buy when the trend is upward (bullish) and sell or short-sell during a downward (bearish) trend. The main focus is to capture gains through large movements rather than small fluctuations. Trend Trading uses technical indicators like moving averages, trendlines, or MACD to identify trends and enter trades. Pros: Following the dominant trend in XAUUSD can lead to significant profits, especially in strong, sustained market movements. It’s relatively easier to identify and follow trends, making it suitable for both beginners and experienced traders. By trading with the trend, traders potentially reduce their risk exposure. Cons: Trend traders might enter a trade after a trend has been established, potentially missing early profits. Misidentifying a trend can lead to losses, especially in volatile markets. This strategy requires patience, as holding positions for longer periods can lead to substantial drawdowns during retracements. Suited personality: Ideal for patient individuals who are comfortable with holding XAUUSD positions for longer durations. 📈 Breakout and Retest Trading For breakout and retesting, traders look for moments when XAUUSD price breaks out of its typical trading range or surpasses a significant resistance or support level. This strategy capitalizes on the momentum that follows a breakout. A retest phase, where the price returns to the breakout point, often serves as the entry point. Breakout and retest trading use chart patterns and volume indicators to identify potential breakouts and confirm their strength. Pros: Traders can capitalize on new trends early, potentially increasing profits. This strategy provides clear signals for entry (breakout) and exit (retest failure). It works well in various market conditions, especially during high volatility periods. Cons: Traders may encounter false signals, leading to premature entries and losses. This strategy demands rapid responses to market changes, which can be stressful. Setting stop-losses can be challenging, particularly in volatile markets. Suited personality: Breakout and retest trading is best for decisive traders who can act quickly and are comfortable with a higher level of risk and uncertainty with Gold. 📈 Swing Trading Swing traders hold positions in the XAUUSD market for several days or weeks to capture gains from short- to medium-term price movements or “swings.” This approach balances between the longer-term view of trend trading and the short-term nature of day trading. Swing trading uses a combination of technical analysis and a basic understanding of market fundamentals to identify potential swing opportunities. Pros: Requires less screen time than day trading, allowing for a more balanced lifestyle. Swing traders take advantage of market “swings” or short-term trends, often leading to substantial gains. Allows for diversification of trades over different time frames and assets. Cons: Positions might have to be held through periods of adverse market movements. This strategy needs a good understanding of market fundamentals and technical analysis. Holding positions overnight can expose traders to unexpected market events. Suited personality: Ideal for gold traders who have the patience to wait for the right opportunity, and are comfortable with holding positions for several days. 📈 Scalp Trading Scalping involves making numerous, rapid trades on small price changes in the XAUUSD market, accumulating profit from these minor fluctuations. Scalp trades are held for a very short duration, often just minutes, and require quick decision-making and execution. This strategy has a strong focus on liquidity, volatility, and using smaller time-frames like one-minute to fifteen-minute charts for precise entry and exit points. Pros: Scalpers can make numerous trades in a day, accumulating profits from small price movements. Short holding periods reduce exposure to large market movements. Offers an engaging and dynamic trading experience Cons: Requires constant market monitoring and quick decision-making throughout your trading period, however your trading period could be as little as 1 hour a day. Risk to reward per trade are typically smaller as many scalping strategies aim for a 1:1 to 1:3 risk to reward Suited personality: Scalping is best suited for people who can make quick, decisive moves. It’s most suitable for personalities who like to do highly focused work in small burst time periods and for traders who don’t want to hold positions overnight. Which XAUUSD Strategy Gives The Highest Yield? Determining which XAUUSD trading strategy can provide the highest yield and profits is a complex question and highly dependent on market conditions, the trader’s skill level, risk management, and the ability to consistently execute the strategy. However, we can explore theoretical scenarios for each trading style using a $10,000 trading account over a 6-month period, with each trade risking 1% from a stop loss. We will also consider the compounding effects of growing a trading account and trading Gold exclusively. 📈 Trend Trading Yield Potential: Moderate to High Trend trading can yield substantial returns over time, especially in strong, consistent market trends. Scenario Example: Assuming a conservative estimate of 3% profit per successful trade. With 10 good trend-following trades over 6 months and compounding gains, the overall profit could be substantial. However, the growth rate would be slower compared to scalp trading due to fewer trades and a longer holding period. 📈 Breakout and Retest Trading Yield Potential: Moderate This strategy can be profitable in volatile markets, but it may offer lower compounding effects due to fewer trades compared to scalping. Scenario Example: Assuming an average profit of 2% per successful trade and around 15 trades over 6 months. The compounding effect would be present but less dramatic than scalping due to fewer trades and potentially more varied outcomes. 📈 Swing Trading Yield Potential: Moderate Swing trading can offer good returns, especially if large swings are captured, but the compounding effect is less pronounced due to the longer duration of trades. Scenario Example: With an average of 4% gain per successful trade and about 8 trades over 6 months. The compounding effect would contribute to growth, but the overall yield would be less compared to scalp trading due to the lower number of trades and slower turnover of capital. 📈 Scalp Trading Yield Potential: Very High Scalping, with its high frequency and quick profit opportunities, offers the highest yield potential, especially when compounded. Scenario Example: Assume an average gain of 1.5% per trade, with 2 trades each day. Trading 20 days a month, this results in 40 trades per month. With compounding, each win adds more to the account balance, which then increases the amount risked (and potentially gained) in each subsequent trade. Over 6 months, this compounding effect, coupled with a consistent win rate, could significantly amplify the initial $10,000 investment, potentially doubling it or more, depending on the exact win rate and consistency of the trader. Considering all of the above strategies, scalp trading shows the highest potential for compounded yield due to its high frequency, larger per-trade gains and ongoing compounding effects. It also requires a high level of skill and consistency. Each XAUUSD trading style has its own risk-reward balance and compounding potential, and the choice should align with the trader’s capabilities, risk tolerance, and trading goals. Stop Loss Considerations for XAUUSD Trading Strategies These trading styles each have its unique characteristics that can influence the likelihood of hitting a stop loss. When a stop loss is hit, your current position is closed instantly, ending the trade, resulting a loss. Understanding these following factors is crucial for effective risk management and XAUUSD strategy selection. 📈 Trend Trading Delayed Entry Trend traders often enter a trade after a trend is established, which can increase the risk of a reversal hitting the stop loss. Length of Trends If a trend unexpectedly shortens or reverses, stop losses may be hit more frequently, especially in highly volatile markets. Drawdowns During Retracements Trends often have retracements. If the XAUUSD retracement is deeper than expected, it might hit the stop loss before resuming the trend. 📈 Breakout and Retest Trading False Breakouts A common risk in breakout trading is the occurrence of false breakouts, where the price breaks a key level but then quickly reverses, often hitting the stop loss. Volatility Spikes Around breakout points, volatility can spike, which can cause prices to fluctuate rapidly and hit stop losses unexpectedly. Re-test Failure If the price fails to re-test successfully and instead reverses quickly, it can lead to hitting the stop loss. 📈 Swing Trading Overnight and Weekend Risk XAUUSD swing trades are often held for several days, exposing them to overnight and weekend risks where gaps can occur, potentially hitting stop losses. Market News and Events Swing traders might be more exposed to the impact of scheduled economic events or unexpected news, which can cause sudden market moves. Changing Market Sentiment As swing trading involves a longer time frame, a shift in market sentiment or trend can lead to stop losses being hit before the anticipated move materializes. 📈 Scalp Trading Rapid Price Fluctuations Given the short time frame of XAUUSD scalp trades, rapid and unexpected price movements can easily hit tight stop losses. Spread and Slippage In scalp trading, the cost of the spread and potential slippage can be significant relative to the trade size, increasing the likelihood of hitting the stop loss. It’s important to trade with a broker with low spreads Market Noise Scalp trading is often affected by market noise (random price fluctuations), which can trigger stop losses more frequently compared to other styles. Each trading style has its specific factors that can lead to the triggering of stop losses. Understanding these can help in refining stop loss placement, strategy selection, and overall risk management. Best XAUUSD Strategies Based On The Trader So we’ve finally made it to our key breakdowns and suggestions based on trader preferences. Based on the various aspects of XAUUSD trading strategies we’ve explored above, here are some suggestions tailored to different types of traders and objectives. 👤 What is the best XAUUSD trading strategy for beginners? Trend trading is generally the most suitable for beginners. This style’s relative simplicity in identifying trends and its emphasis on patience and discipline provide a solid foundation for new traders. It allows beginners to understand market dynamics without the pressure of making rapid decisions. This is not to say that beginner traders can’t start their trading journey with other strategies. 👤 What is the best XAUUSD trading strategy for advanced traders? Scalp Trading is the most suited gold trading style for advanced traders. It requires quick decision-making, an in-depth understanding of market movements, and the ability to handle high-stress situations effectively. Advanced traders are typically better equipped to handle the fast movements of scalp trading, including the rigorous discipline and risk management it entails. Scalp trading XAUUSD often becomes the natural progression of a gold trader. 👤 What is the best XAUUSD trading strategy for the highest potential yield? When executed effectively, scalp trading offers the highest potential yield. It capitalizes on small, frequent price movements, allowing skilled traders to accumulate gains rapidly. However, it’s important to note that this high potential yield comes with increased risk and requires a significant amount of skill, experience, and psychological fortitude. 👤 What is the best XAUUSD trading strategy for people who want structure in their day? Scalp trading can provide a structured trading day due to its high-frequency nature. It requires a trader to be active and focused during specific market hours. If you prefer a structured environment, and want to “work” only during certain hours and in short bursts, scalp trading offers this consistency. This can also provide freedom off the charts outside of your main scalping hours. 👤 Best XAUUSD trading strategy for people who want freedom away from screens? For individuals seeking more freedom and less time glued to the screen, swing trading is suitable. It doesn’t require constant market monitoring and allows for trades to be held over several days or weeks. This approach provides more flexibility and free time, fitting well for those who value a less intense trading lifestyle. The downside is that there are far less trades meaning you could experience weeks or months with no profits, and also illiquid access to any profits made. Scalping is a second alternative for freedom away from screens, especially for scalpers who aim to make 1 to 2 trades a day over a short time period then spend the rest of their day doing non-trading related activities. 📈 Best Overall XAUUSD Trading Strategy Scalp trading stands out to us as the best XAUUSD trading strategy for these reasons: Highest potential yield based on compounding gains Ideal for both advanced traders and beginners (who are committed to learning) Ideal for structure of your day and trading during specific hours Ideal for traders seeking freedom outside of their screens by not holding on to open positions while they are away from their screens Ideal for full-time job salary replacement in terms of liquid access to profits due to more frequent trades (Of course, this is performance dependent!) For traders who have the necessary skills, discipline, and experience, scalp trading can be extremely rewarding and profitable. It offers a dynamic trading environment and the potential for high returns. If you’re looking to scalp gold, it’s crucial that we emphasize that it requires a high level of education and mentorship before you commence scalping. Beginners are advised to start with the right foundations which we can teach you and provide a solid and stable learning curve to your scalping journey.
OANDA:XAUUSDEducation
by opes_trading_group
Navigating Markets with Gann Fans: A Step-by-Step GuideWelcome to our comprehensive tutorial on placing and utilizing Gann Fans. In this step-by-step guide, we'll dive into the practical aspects of Gann Fans, a powerful tool for assessing non-horizontal support in resistance for technical analysis. We will thoroughly explain how Gann Fans are placed and what pitfalls to avoid when placing them. Whether you're new to Gann Fans or looking to enhance your trading strategy, this video provides actionable insights and a real-world example to help you harness the potential of Gann Fans with confidence. Join us as we demystify Gann Fans and empower you to navigate market swings with precision and skill.
Education
by LeafAlgo
4
A New Year Special - 1hour Free Zoom SessionHello All, I will be holding a short, 1 hour sharing with Zack, a feng shui master , where we will be sharing on the mentioned in the flyer above. I will be covering some important things to take note of for your trading and sharing how I look for trades etc! Zack will be sharing his view on the outlook of the world in 2024 and some discussions on Zodiacs! Hope to have a Huat huat year ahead! Date: 31 Jan 2024 Time: 730pm SG time (GMT +8) Venue: Zoom If you are keen ,do sign up using the link below! forms.gle An email for the Zoom session will be sent to you. Thank you and see you!😬🥶😉
NYSE:BA
by Shadowing_The_Big_Boys
Trading BTC : Dunning Kruger Effect 🐸Hi Traders, Investors and Speculators 📈📉 Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Daytime job - Math Teacher. 👩🏫 Have you ever wondered what it takes to be a good and profitable trader? Have you wondered how long it will take before you would have mastered the art f trading? Myself and Dunning Kruger will let you in on a little secret - the journey of pretty much every person that has ever started trading is explained in the chart above. The Dunning-Kruger effect, in psychology, is a cognitive bias whereby people with limited knowledge (in a given intellectual or social domain) greatly overestimate their own knowledge or competence in that domain relative to objective criteria or to the performance of their peers or of people in general. This happens in trading all the time. In fact, we probably all started there if we're being honest . So - What causes the Dunning-Kruger effect? Confidence is so highly prized that many people would rather pretend to be smart or skilled than risk looking inadequate and losing face. Even smart people can be affected by the Dunning-Kruger effect because having intelligence isn’t the same thing as learning and developing a specific skill. Many individuals mistakenly believe that their experience and skills in one particular area are transferable to another. Many people would describe themselves as above average in intelligence, humor, and a variety of skills. They can’t accurately judge their own competence, because they lack metacognition, or the ability to step back and examine oneself objectively. In fact, those who are the least skilled are also the most likely to overestimate their abilities. This also relates to their ability to judge how well they are doing their work, hobbies, etc. The Dunning-Kruger effect results in what’s known as a double curse : Not only do people perform poorly, but they are not self-aware enough to judge themselves accurately—and are thus unlikely to learn and grow. So how can we prevent ourselves from falling into this trap? Here's a few things to keep in mind: To avoid falling prey to the Dunning-Kruger effect, you should honestly and routinely question your knowledge base and the conclusions you draw, rather than blindly accepting them. As David Dunning proposes, people can be their own devil’s advocates, by challenging themselves to probe how they might possibly be wrong. Individuals could also escape the trap by seeking others whose expertise can help cover their own blind spots, such as turning to a colleague or friend for advice or constructive criticism. Continuing to study a specific subject will also bring one’s capacity into a clearer focus. 💭Practice these habits to ultimately escape the double curse: - Continuous learning. This will keep your mindset open to new possibilities, whilst increasing your knowledge over time. - Pay attention to who's talking about what. Is the accountant talking about bodybuilding? - Don't be overconfident. This is self explanatory. I hope you enjoyed this post today! Please give us a thumbs up 👌 _______________________ 📢Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 💎Hit like & Follow 👍 We thank you for your support ! CryptoCheck
Education
by CryptoCheck-
58
Tips To Become A Better TraderBecoming the consistently successful trader you aspire to be requires the creation of a new version of yourself, akin to a sculptor crafting a model. The attainment of financial success is a byproduct of acquiring and mastering specific mental skills. Embracing the mantra "I am a consistently successful trader" entails prioritizing consistency over any other rationale for engaging in trading. To achieve this, it is crucial to recognize that the extent of your success is directly tied to your ability to minimize the assumption of future market movements. Seven key beliefs guide the path to consistency: 1. Objectively identifying edges. 2. Predefining the risk for each trade. 3. Accepting the risk or gracefully exiting trades. 4. Executing trades confidently based on identified edges. 5. Appropriately compensating oneself as profits materialize. 6. Continuously monitoring susceptibility to errors. 7. Recognizing the absolute necessity of consistent success principles and adhering to them unwaveringly. Trust in oneself is paramount, as susceptibility to errors rooted in rationalization, justification, hesitation, hope, and impatience can undermine success. A future projection of a successful trader necessitates growth into that role, recognizing and addressing common problems such as an unwillingness to create rules, failure to take responsibility, and addiction to random rewards. The development of a trader mindset unfolds in three stages: 1. Mechanical stage: Building self-trust, flawless execution of a trading system, thinking in probabilities, and fostering unshakeable belief in consistency. 2. Subjective stage: Utilizing learned market insights freely. 3. Intuitive stage: Operating on intuition. Trading involves meticulous steps: 1. Choosing a market. 2. Defining edge variables precisely. 3. Executing trades based on rigid system parameters. 4. Determining stop-loss exits based on market structure. 5. Selecting a consistent time frame for all signals. 6. Scaling out of winning positions with a favorable risk-to-reward ratio. 7. Rigorous testing of chosen variables for effectiveness. In summary, success in trading lies not only in mastering market knowledge but, more crucially, in cultivating a disciplined mindset and adhering to proven principles.
OANDA:XAUUSDEducation
by opes_trading_group
3
DAY TRADING WHILE HOLDING A 9-5 JOBDAY TRADING WHILE HOLDING A 9-5 JOB Embarking on the exciting journey of day trading while managing the demands of a full-time job is indeed a challenging yet achievable endeavor. Thanks to the rise of user-friendly mobile applications offered by trading platforms, individuals now have the power to execute trades seamlessly from various locations. This creates an opportunity for those with traditional 9-5 jobs to actively participate in the dynamic world of day trading. Let's explore the practical aspects of day trading while maintaining a 9-5 job, discovering strategies and considerations that can enhance your ability to strike a harmonious balance between your professional life and the enticing financial markets. Day Trading With A 9-5 Job: Engaging in day trading while juggling a full-time job is not only feasible but also a thrilling adventure. The availability of robust mobile applications has made it possible to trade conveniently from different locations, allowing individuals with office hours to participate in the excitement of day trading. Several factors contribute to the viability of day trading alongside a regular job. Firstly, the accessibility of markets on a 24/7 basis provides flexibility. The forex market operates continuously from Monday to Friday, enabling individuals with office hours to trade after work. Additionally, cryptocurrencies trade around the clock, and some platforms have introduced extended stock trading hours from Monday to Friday. Strategies like swing trading and position trading offer alternatives for individuals unable to actively day trade. These approaches involve setting predetermined Stop Loss and Take Profit levels, allowing traders to initiate trades and await favorable outcomes over longer periods. For stock traders, focusing on pre-market and extended-hours trading is a viable strategy. The pre-market session, beginning at 4 AM ET, extends until the regular session commences at 9 AM, and extended-hours trading continues beyond the regular session. Why You Should Not Day Trade At Work: While day trading with a full-time job is plausible, certain pitfalls make it less than ideal. Successful day trading demands substantial time, concentration, and dedication, aspects often hindered by professional commitments. The need for consistent market analysis, risk evaluation, and timely trade execution can be challenging to fulfill amidst the demands of a 9-5 job. Engaging in day trading during working hours may also impact productivity and mental well-being. Maintaining a high level of workplace productivity and a positive demeanor is crucial for professionals, and day trading disruptions, especially in the face of losses, can adversely affect these aspects. Mental fatigue, stress, and depression are significant concerns for day traders. The demanding nature of the activity, coupled with potential losses, can contribute to a negative impact on one's mental health. This, in turn, may lead to reduced workplace productivity and strained personal relationships. Furthermore, the comprehensive research required for effective day trading, including technical and fundamental analysis, and sentimental and price action analysis, may be challenging to undertake alongside a demanding job. Professions such as healthcare, finance, and real estate may leave little room for the in-depth analysis needed for successful day trading. Best Strategies For Day Trading With A 9-5 Job Successfully managing day trading alongside a 9-5 job requires a strategic approach to ensure optimal results without compromising professional responsibilities. Here are some effective strategies for individuals seeking to seamlessly integrate day trading into their daily work routine: After-Hours Trading: Leverage the extended trading hours available in the evenings after the regular workday. Focus on markets like cryptocurrencies, which operate 24/7, or utilize platforms offering extended stock trading hours. Swing Trading: Embrace the swing trading strategy that allows traders to capture short to medium-term price movements. This approach requires less frequent monitoring, making it suitable for those with limited time during the workday. Algorithmic Trading: Explore algorithmic trading using automated systems or expert advisors. While demanding thorough testing, these systems can execute trades on your behalf, freeing you from constant market monitoring. Pre-Market and Extended Hours Focus: Concentrate on pre-market and extended-hours trading, especially if dealing with stocks. This allows you to engage in market activities before and after regular working hours. Strategic Breaks: Schedule breaks during the workday for brief market check-ins. Use this time to assess market conditions, manage existing trades, and stay informed about potential opportunities. Set Clear Trading Goals: Establish realistic trading goals that align with your work schedule. Define specific time frames for market analysis, trade execution, and review to maintain a disciplined and organized approach. Utilize Limit Orders: Reduce the need for constant monitoring by implementing limit orders. Set predetermined entry and exit points, allowing trades to execute automatically when market conditions align with your strategy. By incorporating these strategies, individuals can strike a balance between day trading and a 9-5 job, optimizing opportunities while minimizing the impact on professional responsibilities. In conclusion.. In the intricate dance between day trading and the demands of a 9-5 job, finding equilibrium is an art. Technological strides have offered a bridge, enabling individuals to traverse the realms of financial markets while anchored in full-time employment. Yet, the fragility of this balance necessitates a nuanced understanding of its implications. The potential trade-offs — be it in productivity, mental well-being, or the relentless demand for in-depth research — underscore the gravity of this endeavor. As we navigate the dual responsibilities of day trading and professional life, thoughtful consideration and strategic planning emerge as our guiding lights. In this dynamic landscape, success lies not just in seizing market opportunities but in orchestrating a harmonious symphony between financial aspirations and the structured cadence of a 9-5 routine. I hope this article will give you some nice thoughts before opening your charts while you are working. Happy trading!
Education
by FOREXN1
2
2024 Investment OutlookIntroduction The current economic landscape is marked by higher interest rates and increased volatility, a departure from the stability observed in the decade following the global financial crisis. Unlike before, central banks face challenges in stabilizing economies due to production constraints and tougher trade-offs in addressing inflation versus supporting growth. The evolving economic environment is shaped by structural factors such as shrinking workforces, geopolitical fragmentation, and the low-carbon transition. The prevailing uncertainty has led to a disconnect between cyclical narratives and structural realities, contributing to market volatility. Despite apparent U.S. economic growth, it reflects a recovery from the pandemic shock rather than robust expansion. The key implication is persistently higher interest rates and tighter financial conditions, prompting a need for a more active portfolio approach. In this new regime, macro insights are expected to be valuable, with greater volatility and return dispersion creating opportunities for investment expertise. Context is everything In 2023, hopes for a soft landing in the U.S. economy have been fueled by robust growth in the third quarter, a significant decline in core inflation, and the creation of nearly 7 million jobs since January 2022. However, taking a broader perspective reveals that the economy is still recovering from the pandemic, with job gains largely recouping those lost during the initial impact. Despite strong job growth, overall economic activity has been below pre-pandemic expectations, averaging less than 1.8% annual growth since the pandemic. The key insight is that a structural change has occurred, leading to a weaker growth path accompanied by higher inflation, increased interest rates, and elevated debt levels. The advice for investors is to focus on how the economy and markets are adjusting to this new regime rather than relying on a typical cyclical playbook, as the traditional approach may be misguided. Managing Macro Risk Investors are advised to neutralize macro exposures or, with high conviction, deliberately choose exposures. Analyst estimates for S&P 500 equity earnings show increased dispersion, emphasizing the potential rewards for macro insight. Despite the adjustment to structurally higher inflation and policy rates, markets vary in their response. The uneven adjustment is highlighted by factors such as surging U.S. 10-year yields compared to relatively unchanged DM equity earnings yields. This adjustment is considered more critical than the possibility of a technical recession, warranting caution on broad exposures. The long-term risk of higher inflation increases if borrowing costs remain elevated, potentially surpassing spending on Medicare in the future. A rise in term premium and expectations of increased yield volatility led to a tactical neutral stance and a strategic underweight position in long-term U.S. Treasuries. The preferred strategic overweight is in inflation-linked bonds. Harnessing mega forces The concept of mega forces offers a strategic approach to steering portfolios, focusing on building blocks that go beyond traditional asset classes. These forces, seen as independent drivers of corporate profits, provide potential opportunities that may be uncorrelated with macro cycles. Mega forces, such as digital disruption and artificial intelligence (AI), are already reshaping markets, as demonstrated by the outperformance of U.S. tech compared to the broader market. The winners and losers in the mega forces landscape can influence tactical views, impacting stances on developed market equities even in less favorable macroeconomic conditions. Embracing mega forces is presented as a means for investors to outperform static allocations, leveraging the far-reaching consequences that create new investment opportunities. Examples include private credit filling the lending void due to capital pressures on banks, demographic shifts shaping production and growth limitations, and the emergence of climate resilience as an investment theme within the low-carbon transition. AI intelligence revolution Advances in computing hardware and deep learning have marked an inflection point for Artificial Intelligence (AI) since late 2022, with expectations of exponential progress in innovation. While tracking AI investment opportunities across geographies and sectors involves high uncertainty, a technology "stack" approach is suggested to assess these opportunities. The stack includes cloud infrastructure and chips as the foundational layer, followed by models, data, and data infrastructure, and finally, applications that harness innovation. The tech industry, particularly led by major tech firms, is seen pivoting toward AI, indicating the potential for an intelligence revolution. The current position is perceived to be between the first and second layers of the technology stack, with the last layer anticipated to follow. This shift has implications beyond near-term productivity gains. Early research suggests a positive correlation between increased AI patents and broad earnings growth, indicating rising economic value attributed to these patents. Despite uncertainties surrounding the future value of AI patents and their translation into profitable enterprises, there is an overweight recommendation on the AI theme in developed market stocks for the next six to twelve months. The tech sector's earnings resilience is expected to persist, serving as a significant driver of overall U.S. corporate profit growth in 2024. Investing in climate resilience The emphasis of this chapter is on helping investors navigate the risks and opportunities associated with the energy transition. Beyond renewables, traditional energy companies can also outperform, especially during supply-demand mismatches. While the energy transition often dominates headlines, a related and crucial investment theme is climate resilience. This involves preparing for, adapting to, and withstanding climate hazards, as well as rebuilding after climate damage. Climate resilience encompasses various solutions like early monitoring systems, air conditioning to address heatwaves, and retrofitting buildings for better weather resistance. Given the anticipated increase in climate damages, significant investment is required to enhance society's resilience. The economic impact of climate damages is growing rapidly, and there is a rising demand for products and services that contribute to climate resilience. This theme is identified as potentially becoming a mainstream investment theme over time. The three sub-themes within climate resilience—assessing and quantifying risks, managing risk, and rebuilding physical infrastructure—create a framework to identify opportunities across sectors (such as industrials and technology) and asset classes. Deepening fragmentation Cascading crises have accelerated global fragmentation and the emergence of competing geopolitical and economic blocs. Countries like Vietnam, Mexico, the Gulf states, India, and Brazil are seen as potential beneficiaries of supply chain diversification, establishing ties with multiple blocs, and possessing valuable resources. In this more competitive global landscape, a surge of investment in strategic sectors such as technology, energy, defense, and infrastructure is expected. Opportunities also exist in firms specializing in managing and reducing cybersecurity risks. Increased geopolitical risks stemming from conflicts in the Middle East, Russia-Ukraine tensions, and structural competition between the U.S. and China are acknowledged. The current global situation is characterized by the highest number of volatile situations in decades, according to the UN. The year 2024 is anticipated to be the biggest election year in history, with the U.S. and Taiwan elections deemed particularly significant. Navigating this new world order requires holistic portfolio strategies that aim to both seize opportunities and mitigate risks, rather than focusing solely on avoiding risks or positioning for specific events. Conclusion Our core conviction is that investors need to be more dynamic with portfolios in the new regime. The outlook for 2024 suggests that investors should take a proactive stance, avoiding autopilot investing. The advice is to be intentional in managing portfolio risk, with an expectation of deploying more risk over the next year.
NASDAQ:QQQ
by financialflagship
TA vs FA - Do price forecasts offer value for traders? This came up in a conversation I had recently with a client, who asked if I agreed with the view that we’re in for another good year for equities based on the current median forecast of 4832 (source Bloomberg), with the range of 19 analyst calls set between 4200 to 5200. For starters let’s revisit the 2023-year-end call on the S&P500 made back in Dec 2022, where the median forecast was 4075 – 17% below the actual closing level in Dec 2023 of 4769.83. There was only one analyst – Tom Lee (Fundstrat) - who was anywhere near the final closing level, and at the time he was widely ridiculed for his uber-bullish call. We can also take the early forecast by Soc Gen, who had a 3650 call on the S&P500 by year-end. This proved to be wildly incorrect, but the call was ultimately revised higher throughout the year, and after tweaking the forecast to 4750 on 9 November, now looks like a hero. I'm not in the business of mocking bad calls, and understand most analysts are loath to make these forecasts but are required to do so. It's clearly very hard to do, and requires some degree of luck, where a lot needs to go right to be on the money. The math behind an index price target The basic logic for creating a year-end forecast is to firstly model a forward price to earnings (P/E) multiple that is deemed to be fair – we do this by forecasting factors such as where US bond yields will be at year-end, as well as the potential level of ERP (equity risk premium). We then need to model our earnings-per-share (EPS) assumptions for year-end. In 2023 the median estimate was for S&P500 earnings at $210, which actually wasn’t terrible a call. We can then multiply our EPS forecast by the fair forward PE multiple and you have a price target. As it stands, the median fair future PE ratio is 20.7x and the 2024 EPS assumption at $232.2 – so the median consensus is around 4813. Sound complicated? It certainly needs some study, but in many ways, this is the crux of many fundamental models which attempt to model a ‘fair value’ and hope the market can move towards that price over time. Perhaps the buy-and-hold investor crowd can find some value from targets, but then you have a plethora of sell-side analysts to follow – choosing one often plays into one’s own directional bias, where the thesis for getting to that endpoint reinforces one’s own belief systems. Some will also consider the analyst's pedigree and form in prior years and feel they are reading the tea leaves well. Forecasts can also be useful for multi-asset investors who look at expected returns. Where expected returns often dictate one’s portfolio composition and whether they’re underweight or overweight a specific asset class or sector. Where these models typically fall down is that they rarely account for human behaviour, emotion and structural flows. For traders, the analyst’s thesis (behind the forecast) can be helpful, as some of the trends and risks expressed can help us identify the future trading environment and event risks of note. However, I don’t know of any trader who has made money using forecasts. Not only is a year an eternity for traders, but it’s the price (P) element of the PE ratio that has driven equity markets through 2023. Where multiple expansion (a rising PE ratio without earnings growth) has been driven by funds happy to pay an ever-higher price, with active managers chasing returns, a more compelling perception of central bank liquidity, as well as bullish structural flows derived from options dealers hedging their gamma exposure, volatility-targeting funds, and CTAs (Commodity Trading Advisors) reacting to the one-way rally in price. Technical vs fundamental analysis? This is where technical analysis (TA) is often far superior for traders, as the principle is premised on reacting to flows and the aggregation of all decisions being made within a timeframe. While TA is a broad practice, at its heart it’s less about prediction, but offers key insights and understanding of how market participants feel at any one time. TA and price action is the best barometer of sentiment, and it helps us understand the distribution of outcomes for price. We can partly explain much of the rally in US equity from late October on the fall in US real rates, increased rate cut expectations and resilient US growth dynamics. But what really propelled the various equity indices to see some incredible returns was falling realized volatility, options hedging flows – made even more prevalent through the rise and rise of 0DTE options – and CTAs going max long in S&P500 and NAS100 futures. Few fundamental models account for this. At the end of the day, it's what works for you, and if you’ve made money following price targets then ignore everything I’ve said – it’s simply my observations. Yet, while a lot of these flows are quite opaque, we can see them front and centre in the price action – that – in so many ways it tells you all you need to know.
PEPPERSTONE:US500
by Pepperstone
Educational: A case for low volatility 🔹 INTRODUCTION A prevalent saying in the trading world is that you need high volatility to make money in the markets. However, this statement needs to be more accurate. While high volatility is, in fact, necessary, it is very much based on perspective, and there are many cases where an extremely volatile market will be your downfall. 🔹 UNDERSTANDING THE ISSUE The image above is an example of what a highly volatile market looks like. There are substantial moves and constant reversals. If you trade using traditional methods such as trend following, the majority will struggle to earn, executing in highly volatile markets. In highly volatile markets, the odds of reaching your profit target drop significantly, and this is because the market could reverse at any time. You will also often hear that scalpers strive in these kinds of markets, which is very much possible, but this is because scalpers often trade at a negative risk ratio and take small gains from the markets. As a result, they can capitalize on those significant moves. See the image below. However, what is happening within that highly volatile candle? One would be surprised to know that the market is not volatile within that candle on a lower timeframe. The market was very smooth and very consistent in its behavior. Notice how the trend was very clear on the lower timeframe? Moreover, there are rarely any large spikes. Well, that is also low volatility, which brings us to another misconception between high and low volatility. Many people are under the assumption that low volatility means the market is not moving much. This is not the case. The market could be moving a lot; however, due to each move being consistent, it is considered low volatility. In other words, there is little variability in the movements. Each candle is within the same range of percentage change. Notice how there are usually no large spikes in the low volatility charts? As long as that does not happen, trending markets can also be considered low volatility. 🔹SOLUTION So, with all this understanding, how does one use high and low volatility to one's advantage? Well, at this point, it is clear. What anyone wants to do is use high volatility to enter the market is going to trend. So, we want to establish high volatility from a much higher timeframe. By doing this, we ensure that the market will trend significantly on a lower timeframe. What we then do is go to a much lower timeframe and execute within that volatility to catch extremely large moves in the market. Often, this will be within a single highly volatile candle. See the image below.
COINBASE:ETHUSDEducation
by ChristopherDownie
13
The Four Market phasesAccumulation: Makers accumulate assets before most investors. Range 6 months and higher after decline. This phase is usually marked by flat movement. Accumulation occurs in a gradual manner to avoid significant price changes. Advancing: The Market begins to grow upwards. A trend is formed, which gradually attracts more and more new investors, which subsequently leads to an increase in demand. As the market moves upward, other investors are encouraged to enter the market. As a result, the excitement affects more people who want to participate. During such a period, demand is much higher than supply. Distribution: Sellers sell their profitable positions to those who enter the market at a late stage. As a rule, the distribution phase is marked by a flat movement, which absorbs demand until it is exhausted. 4th stage - Decline At this stage, supply dominates and the price goes down almost nonstop. In other words, after a significant portion of stocks are sold, the market begins to move downward. Eventually, supply becomes much greater than demand, and a downtrend sets in.
BINANCE:LINKUSD
by Nxgencrypto
2
Diamond Pattern: How To GuideThe Diamond pattern, an often-overlooked gem in technical analysis, holds the potential for substantial profits. 💜 If you appreciate our guides, support us with boost button 💜 Despite its rarity, this unique pattern can be a valuable asset for traders. In this article, we'll explore the essentials of the Diamond pattern, from its formation principles to practical trading strategies. Understanding the Diamond Pattern: The Diamond pattern, a reversal pattern, takes shape at the top of an uptrend or the bottom of a downtrend. Recognized by its diamond shape, the pattern signifies a period of decreased volatility, with market participants positioning themselves for the next significant move. Diamond Pattern Formation: Top of Uptrend: Starts with an expanding triangle, followed by a converging triangle. The second wave of players triggers a rapid price decline, forming the Diamond pattern. Bottom of Downtrend: Bears induce a sideways movement, and the second wave of traders, motivated by greed, initiates active selling. Profit-taking by the first wave of sellers leads to the formation of the Diamond pattern. Trading Strategies: Opening a Selling Position: Sell when the price breaks the lower right support line and the candlestick closes below it. Place a Stop Loss behind the nearest high. Potential profit: 60-80% of the Diamond's height. Alternative Selling Approach: Enter at the breakaway of the Diamond's low for a conservative approach. Place Stop Loss behind the nearest low or Diamond's high. Opening a Buying Position: Buy when the price breaks the upper right resistance line, and the candlestick closes above it. Place a Stop Loss behind the nearest low. Potential profit: 60-80% of the Diamond pattern size. Alternative Buying Approach: Enter at the breakaway of the Diamond's high for a conservative option. Place Stop Loss behind the nearest low or Diamond's low. Closing Thoughts: Mastering the Diamond pattern requires patience, technical analysis skills, and disciplined risk management. Despite its infrequency on larger timeframes, the potential for significant profits makes the Diamond pattern a valuable tool in a trader's toolkit. Traders should exercise caution, ensuring the pattern is complete, and adhere to risk management rules, especially with larger stop-loss sizes on larger timeframes.
Education
by Vestinda
of Fibonacci RetracementsIn this article, we delve into the intricacies of the Springboard Effect of Fibonacci Retracements , drawing parallels between the trading world and the physics of a springboard. 💜 If you appreciate our guides, support us with boost button 💜 The Springboard Analogy: Imagine a scenario with four different springboards, each with varying degrees of stiffness. Now, drop an identical weight from the same height onto each board. The resulting bounce illustrates the concept of retracement and extension in the context of momentum trading. Barely Any Springs (0.236 Retracement): A bounce at the 0.236 retracement level is seen as a potential trend failure. Buyers may step in, but the bounce is likely weak. Traders shift focus to shorter-term scalping opportunities, targeting other fib levels within the retracement as potential resistance. Few Springs (0.328 Retracement): Here, the bounce on the 0.328% retracement is viewed with caution. While a good bounce may occur, traders remain vigilant about a potential double top, closely monitoring candlestick reactions and utilizing the CCI to identify divergence if momentum falters. Moderate Springs (0.5 Retracement): A bounce at the 0.5 retracement level signifies continued bullish momentum. Buyers are willing to enter at a relatively lower point, maintaining optimism. Targeting the 1.272 extension, traders consider this a bullish signal. Aligning with nearby resistance or front-running the level becomes a strategic move. Lots of Springs (0.618 Retracement): This scenario represents a strong market extension. A bounce at the 38.2% retracement level indicates a plethora of buyers eager to enter the market promptly. This serves as a positive sign, suggesting a robust extension. The target? The 1.618 extension, potentially aligned with a nearby resistance level. The Springboard Effect provides traders with a tangible framework for interpreting retracements and anticipating market extensions. By aligning retracement levels with the stiffness of a springboard, traders gain insights into the potential strength or weakness of a continuation. Whether aiming for robust extensions or preparing for short-term scalps, understanding the nuances of the Springboard Effect adds value to a trader's toolkit. Embrace this strategy, and may your trades be propelled to new heights.
Education
by Vestinda
2
[EDU]Doing this will Massively improve your Trading!Hello fellow traders , my regular and new friends! Welcome and thanks for dropping by my post. DRC stands for Daily Report Card To be all transparent I adopted this from smb capital. Credits and Kudos to them. I used it and did some modifications to suit my purpose. So you can do the same to what I have over here and modify according to your requirements. The purpose of the daily report card is to help you keep track of your whole trading day. If you do have a day job or what not, you can adjust the DRC to be cater for a week or few days. It's up to the individuals. So, this Daily report card of mine basically looks something like this as shown above in the charting space. And let me give some details on each of this sections. Daily Analysis In this section, you should start off with how you have felt in the morning. Do you feel refreshed and pumped up, or grouchy as you have had not enough sleep? Or are you feeling miserable or unhappy over the big lost you had yesterday? You can put it down over here. Then continue on for how you would prepare your trading day by first analysing the market that you are trading on. Goal This will be link with the goals that you have set fore for yourself. Try to put a goal that you wanted to achieve by end of the week, month or quarter. This doesn’t necessarily be the big goal you have. It can be subset of the big goal you have. Some examples can be, to increase my position size from 1% to 2%. Or to be able to hold my trades longer, sticking to pre-defined exit strategies and improving my risk to reward ratio etc. This goals does not necessarily needs to be monetary. Reminders / general truth or principle You can put some reminders and principles for yourself here. You can start off with things like focus on your goals and not the PNL, focus on your trading as required and remove any distractions (e.g. social media). These are just some examples of the many and I will leave that for you to fill them up. What I learned/improved upon today? To this, you can write something that you find interesting or learn about the market. For example, if you are day trading, GBP could have a particular time that you have observed where it reverses it trend. OR it could just be that you come to realize some interesting trading setups using a particular indicator etc. Important trade, if any Over here, you should document down trades you find it important for your to remember or refer back to later on in the week or future. This can be trade that you have did well or a trade that you performed badly. Jot it down so that in the future you can revisit and learn from it again. Change need to be made from today? Here are some things that you felt that you should act on it immediately for example, if you lost yourself and be emotional on losses. Put it over here and evaluate what has happened and act upon it. Or you have entered a trade haphazardly ,in fear of FOMO etc. Overview Just a 1-2 sentence to sum up your day.Nothing in particular but jotting down your thoughts of the day. Finally take a look at the top left hand corner of the table I had for you. There is a X /5 which denotes the score you gave yourself on that day (if you are doing it on a daily basis). Over here, have your own scoring system to give yourself score and hold yourself accountable for it. You can do something like, giving a score of 1 for daily analysis section, 2 for goal and 1 or important trade etc. Just to evaluate how you have done for each of these section is a quick way. It's the year end and if you have yet to evaluate your trading performance and not sure how to go about starting, do check out the link i provided below for the post i have put up recently. Do Like and Boost if you have learnt something and enjoyed the content, thank you! -- Get the right tools and an experienced Guide, you WILL navigate your way out of this "Dangerous Jungle"! -- ********************************************************************* Disclaimers: The analysis shared through this channel are purely for educational and entertainment purposes only. They are by no means professional advice for individual/s to enter trades for investment or trading purposes. *********************************************************************
NYSE:BRK.AEducation
by Shadowing_The_Big_Boys
1
6 Practical Tips for Futures TradingIn derivatives trading, achieving success can lead to substantial profits, but it's crucial to trade carefully to avoid costly mistakes. 💜 If you appreciate our guides, support us with boost button 💜 Here are six simple and practical tips to help develop a strategy for successful futures trading. 1. Craft a Clear Trade Plan Before jumping into the market, take the time to plan your trades thoroughly. This involves setting not only profit goals but also establishing an exit plan in case the trade doesn't go as expected. A well-thought-out trading plan, including risk-management tools like stop-loss orders, can protect you from making impulsive decisions based on emotions like fear and greed. 2. Safeguard Your Positions Protect your investments by committing to an exit strategy. Instead of relying on mental stops, use stop-loss orders to set a predetermined point at which you will exit the trade. Consider using One-Triggers-Other (OTO) orders to automate the process, triggering a protective stop when your primary order executes. 3. Focus Wisely Avoid spreading yourself too thin by trying to trade too many markets. It's essential to concentrate on a few markets and dedicate time to studying charts, reading market commentary, and staying informed. However, don't put all your eggs in one basket either—diversification in futures trading can offer advantages. 4. Take It Slow If you're new to futures trading, start with a cautious approach. Avoid trading large quantities at the beginning, as this could lead to significant losses. Begin with one or two contracts, develop your trading methodology, and only increase your order size when you feel confident. 5. Think Both Ways Be open to trading opportunities in both rising and falling markets. While it's natural to want to go long, don't overlook the potential benefits of going short. This flexibility can broaden your trading opportunities and enhance your overall strategy. 6. Learn from Margin Calls A margin call may signal that you've become emotionally attached to a losing position. Instead of adding more funds or reducing positions to meet the call, consider it a wake-up call. Cut your losses, learn from the experience, and move on to the next trading opportunity. By incorporating these practical tips into your trading approach, you can navigate the futures market more confidently and increase your chances of success. Remember, a well-thought-out strategy and disciplined execution are key to achieving profitable results in futures trading.
Education
by Vestinda
1
AB ⚡️ CD — Harmonic Patterns 🟣The AB⚡️CD pattern is a highly effective tool utilized in trading to identify potential opportunities across diverse markets, including forex, stocks, cryptocurrencies, and futures. 💜 If you appreciate our guides, support us with boost button 💜 This pattern takes the form of a visual and geometric arrangement, characterized by three consecutive price swings or trends. When observed on a price chart, the ABCD pattern exhibits a striking resemblance to a lightning bolt ⚡️ or a distinctive zig-zag pattern. Importance of the ABCD Pattern The significance of the ABCD pattern lies in its ability to identify trading opportunities across different markets, timeframes, and market conditions. Whether the market is bullish, bearish, or range-bound, the ABCD pattern remains a reliable tool. By recognizing the completion of the pattern at point D, you can get a perspective trade entries. Furthermore, the ABCD pattern helps you determine the risk-to-reward ratio before initiating a trade. When multiple patterns converge within the same timeframe or across different timeframes, it strengthens the trade signal and increases the likelihood of a profitable outcome. Finding an ABCD Pattern The ABCD pattern has both a bullish and bearish version. Bullish patterns indicate higher probability opportunities to buy or go long, while bearish patterns suggest opportunities to sell or go short. To identify an ABCD pattern, it is essential to locate significant highs or lows on a price chart, represented by points A, B, C, and D. These points define the three consecutive price swings or legs of the pattern: the AB leg, the BC leg, and the CD leg. Trading is not an exact science, so traders often employ Fibonacci ratios to determine the relationship between the AB and CD legs in terms of both time and price. This approximation assists in locating the potential completion of the ABCD pattern. When patterns converge, it increases the probability of successful trades and enables you to make more accurate decisions regarding entries and exits. Types of ABCD Patterns There are three types of ABCD patterns, each having both a bullish and bearish version. To validate an ABCD pattern, specific criteria and characteristics must be met. Here are the characteristics of the bullish and bearish ABCD patterns: 📈 Bullish ABCD Pattern Characteristics (buy at point D): To effectively trade the bullish ABCD pattern, you might consider the following characteristics: 1. Find AB: Identify point A as a significant high and point B as a significant low. During the move from A to B, ensure that there are no highs above point A and no lows below point B. 2. After AB, then find BC: Point C should be lower than point A. In the move from B up to C, there should be no lows below point B and no highs above point C. Ideally, point C will be around 61.8% or 78.6% of the length of AB. However, in strongly trending markets, BC may only be 38.2% or 50% of AB. 3. After BC, then draw CD: Point D, which marks the completion of the pattern, must be lower than point B, indicating that the market has successfully achieved a new low. During the move from C down to D, there should be no highs above point C. 4.1 Determine where D may complete (price): To determine the price level at which point D may complete, Fibonacci and ABCD tools can be utilized. CD may equal AB in price, or it may be 127.2% or 161.8% of AB in price. Alternatively, CD can be 127.2% or 161.8% of BC in price. 4.2 Determine when point D may complete (time) for additional confirmation: For additional confirmation, you can analyze the time aspect of the pattern. CD may equal AB in time, or it may be around 61.8% or 78.6% of the time it took for AB to form. Additionally, CD can be 127.2% or 161.8% of the time it took for AB to form. 5. Look for Fibonacci, pattern, trend convergence: Convergence of Fibonacci levels, pattern formations, and overall trend can strengthen the trade signal. Therefore, you should look for instances where these elements align. 6. Watch for price gaps and/or wide-ranging candles in the CD leg: As the market approaches point D, it is important to monitor for any price gaps or wide-ranging candles in the CD leg. These may indicate a potential strongly trending market, and you might expect to see price extensions of 127.2% or 161.8%. 📉 Bearish ABCD Pattern Characteristics (sell at point D): To effectively trade the bearish ABCD pattern, you might consider the following characteristics: 1. Find AB: Identify point A as a significant low and point B as a significant high. During the move from A up to B, ensure that there are no lows below point A and no highs above point B. 2. After AB, then find BC: Point C should be higher than point A. In the move from B down to C, there should be no highs above point B and no lows below point C. Ideally, point C will be around 61.8% or 78.6% of the length of AB. However, in strongly trending markets, BC may only be 38.2% or 50% of AB. 3. After BC, then draw CD: Point D, which marks the completion of the pattern, must be higher than point B, indicating that the market has successfully achieved a new high. During the move from C up to D, there should be no lows below point C and no highs above point D. 4.1 Determine where D may complete (price): To determine the price level at which point D may complete, Fibonacci and ABCD tools can be utilized. CD may equal AB in price, or it may be 127.2% or 161.8% of AB in price. Alternatively, CD can be 127.2% or 161.8% of BC in price. 4.2 Determine when point D may complete (time) for additional confirmation: For additional confirmation, you can analyze the time aspect of the pattern. CD may equal AB in time, or it may be around 61.8% or 78.6% of the time it took for AB to form. Additionally, CD can be 127.2% or 161.8% of the time it took for AB to form. 5. Look for Fibonacci, pattern, trend convergence: Convergence of Fibonacci levels, pattern formations, and overall trend can strengthen the trade signal. Therefore, you should look for instances where these elements align. 6. Watch for price gaps and/or wide-ranging bars/candles in the CD leg: As the market approaches point D, it is important to monitor for any price gaps or wide-ranging bars/candles in the CD leg. These may indicate a potential strongly trending market, and you might expect to see price extensions of 127.2% or 161.8%. 💜 We're eager to hear from you! ⚡️Did the ABCD pattern article hit the mark for you? We're all about delivering content that's useful and easy for traders like yourself. Your feedback means a lot—it guides us in enhancing our articles to better serve you. Take a moment to let us know what you think. Did we cover the topic thoroughly? Were our explanations crystal clear? Is there something you wish we'd delve into more? Your time and thoughts are truly appreciated. Thanks for being a cherished reader, and we can't wait to hear your feedback!
Education
by Vestinda
6
How To Read Currency PairsHere's a quick and comprehensive guide on how you can read currency pairs as a forex trader! As usual my objective is to simplify all aspects of trading, so that even someone who has never seen a chart before, can make sense of the topic at hand. Let's get into it - Currency pairs are a combination of 2 different currencies and we can trade them based on how they are compared to each other in terms of price (weighted against each other). How can we use this to make money? 1. Understand the Exchange Rate Let's assume that the current exchange rate for EURUSD is 1.10, that means of €1 is valued at $1.10. 2. Buy Euros If you start with $1000 and you believe the exchange rate may increase in the future, it would be a good idea to convert your Dollars into Euros at the current rate. $1000 / 1.10 (exchange rate) = €909.09 3. Wait for Appreciation Now, let's assume the exchange rate increases to 1.15. This means that €1 is now worth $1.15. 4. Exchange Back to Dollars With your 909.09 Euros, you can convert them back into Dollars at the new exchange rate. €909.09 x 1.15 (new exchange rate) = $1045.45 So, in this example, you've potentially made a profit of $45.45 by anticipating and benefiting from a favorable change in the exchange rate. Major Currency pairs CAPITALCOM:EURUSD CAPITALCOM:GBPUSD FX:USDJPY OANDA:USDCHF OANDA:AUDUSD OANDA:NZDUSD FX:USDCAD Minor Currency Pairs FX:EURGBP OANDA:EURAUD FOREXCOM:GBPJPY OANDA:AUDJPY OANDA:NZDJPY FX:EURJPY OANDA:GBPAUD FX:AUDNZD OANDA:EURCAD FX:GBPCAD That's a mouthful to take in so I'll leave you there. Hope this post helps and as usual... Happy Hunting Predators 🦁🐯🦈
Education
by Apexfx_Alpha
[EDU]What has happened to USDJPY?More downside ?Here's my PlanHello fellow traders , my regular and new friends! Welcome and thanks for dropping by my post. In short, here are some key takeaways from the news on Thursday from the BOJ: asia.nikkei.com - The JPY strengthened by over 5 yen against the dollar in response to comments by Bank of Japan Governor Kazuo Ueda hinting at a potential exit from the bank's negative interest rate policy . - BOJ Deputy Gov. Ryozo Himino's statement that exiting the negative-rate policy would have limited impact fueled speculation of a policy shift, contributing to yen appreciation. - Market briefly hit $141 then settled at $143. - The BOJ is set to hold its final policy meeting of the year on Dec. 18 and Dec. 19. Speculation grows about potential modifications to policy, including ending negative interest rates or adjusting the yield curve control policy. My thoughts: From the pointers above, it is obvious what has led to the sudden strong buying of the JPY (USDJPY goes down). Firstly, ever since Japan's stance on continuing the monetary easing in Japan as compared to other major countries it can be obvious from Chart that JPY has depreciated greatly. Now that there is hint of removing this easing, JPY spiked up sharply. From this event, we can also witness that how a 'few words' from key stakeholders in the Forex market can led to huge volatility in the Forex markets. If you have short positions, most likely you got profits, what if you are on LONG and without stoploss ? So, always manage your position, put stoploss! Moving forward: I feel this effect will be in play till BOJ's last meeting on 18-19 Dec. So from now till then, I would be looking to go short on USDJPY. Looking at the charts (refer to charts): Weekly = Potential double top forming Daily and H4 = Trendline broke with Lower Lows and Lower highs. On H4,I am watching the blue zone for turning points.,namely 145 and 146 levels. Are after 18-19Dec, let's see what speech will be delivered and plan our trade accordingly from there. Do Like and Boost if you have learnt something and enjoyed the content, thank you! -- Get the right tools and an experienced Guide, you WILL navigate your way out of this "Dangerous Jungle"! -- ********************************************************************* Disclaimers: The analysis shared through this channel are purely for educational and entertainment purposes only. They are by no means professional advice for individual/s to enter trades for investment or trading purposes. *********************************************************************
by Shadowing_The_Big_Boys