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Regulated vs Unregulated Brokers: Understanding the Differences When it comes to choosing a broker for trading, one of the most important factors to consider is whether the broker is regulated or unregulated. While both types of brokers can offer trading services, there are some significant differences between them that traders should be aware of. Regulated brokers are licensed and monitored by regulatory authorities, such as the Financial Conduct Authority (FCA) in the UK or the Securities and Exchange Commission (SEC) in the US. These authorities set strict rules and standards that brokers must follow to protect investors and maintain market integrity. For example, regulated brokers are required to segregate client funds from their own operating funds, provide regular reports on their financial health, and maintain a certain level of capitalization. Unregulated brokers, on the other hand, are not licensed or monitored by any regulatory authority. This means that they are not subject to the same rules and standards as regulated brokers, and may not provide the same level of protection for investors. Unregulated brokers may also be more susceptible to fraud and scams, as there is no external oversight to ensure that they are operating in a fair and transparent manner. There are some potential advantages to using an unregulated broker, such as lower fees or more flexible trading conditions. However, these benefits may come at a higher risk to the investor, as unregulated brokers may not provide the same level of security and protection as regulated brokers. In summary, choosing between a regulated and unregulated broker is an important decision for any trader. While unregulated brokers may offer some advantages, such as lower fees, they also come with a higher risk of fraud and scams. Regulated brokers, on the other hand, are subject to strict rules and standards that help to protect investors and maintain market integrity. As such, it is important to carefully consider the reputation and regulatory status of any broker before entrusting them with your investments.
NEducation
by glorias3972
Mastering the Mindset: How to Handle Losses in Trading accordingTrading in the Zone by Mark Douglas is a classic book on the psychology of trading. In it, Douglas explores the importance of mindset and discipline when it comes to handling losses in trading. Here are some ideas from the book that can help traders deal with losses: Accepting losses as part of the game: Douglas emphasizes the importance of accepting losses as a natural part of the trading process. Rather than trying to avoid losses altogether, he suggests that traders should learn to accept them as part of the game. By doing so, traders can avoid getting emotionally attached to their trades and make more rational decisions. Understanding the probabilities: According to Douglas, traders should understand that trading is a game of probabilities. Even the best traders will experience losses from time to time, and this is just part of the probabilities of the market. By focusing on making good trades based on a solid strategy, traders can minimize their losses and maximize their gains over the long run. Managing risk: Douglas stresses the importance of managing risk in trading. He suggests that traders should always have a plan for managing their risk, such as using stop-loss orders or limiting the size of their positions. By doing so, traders can minimize the impact of losses on their portfolio and avoid making emotional decisions. Staying disciplined: Douglas argues that discipline is crucial for successful trading. This means sticking to a trading plan, avoiding impulsive decisions, and staying focused on the long-term goals. By maintaining discipline, traders can avoid making emotional decisions based on fear or greed, which can lead to losses. In summary, Trading in the Zone provides valuable insights on how to handle losses in trading. By accepting losses as part of the game, understanding the probabilities, managing risk, and staying disciplined, traders can minimize the impact of losses and improve their overall performance over time.
GEducation
by glorias3972
🚩Symmetrical Triangle🚩 #️⃣OKXIDEAS !!!👨‍🏫Hello, everyone!👋 (Reading time less than 7 minutes⏰). I’m here with another educational post to help you learners become super traders gradually. 🔅 As you know, various tools are usually used in any financial market to analyze all types of stocks, cryptocurrencies, and assets. Chart patterns are one of the essential tools used in technical analysis, and analysts evaluate the market movement and prepare to trade based on technical-fundamental studies. 🔅 The Symmetrical Triangle is one of the most used classic continuous patterns in the field, but it can sometimes turn into reversal patterns, as some analysts say. 🔷 So I’ll explain the following in this article: Defining the triangle pattern Getting to know the structure of a Symmetrical Triangle Types of Symmetrical Triangles How to trade using the Symmetrical Triangle pattern Price target after Symmetrical Triangle pattern The importance of trading volume in the Symmetrical Triangle pattern --------------------------------------------------------------------------------------------------------- Triangle Pattern: 🔅The triangle pattern is one of the most well-known patterns many traders spend time on. A triangle is a trend continuation pattern that can occur in upward or downward trends. This triangle pattern is formed when a stock, cryptocurrency, or whatever shrinks towards an uptrend or downtrend. The pattern represents a pause in the price trend, and the price consolidates in a range. 🔅 The triangle pattern consists of two converging lines with different slopes depending on the type. At least four major pivots are needed in the specific time frame to form a triangle pattern. Basically, to form a triangle, 45 to 60 candles are needed in the specific time frame. 🔅 The take-profit of this pattern is considered the distance from the first top to the first bottom inside the triangle. 🔷 According to research, 84% agree that the triangle pattern is a continuation pattern that is divided into three types as follows: Symmetrical triangle Ascending Triangle Descending Triangle --------------------------------------------------------------------------------------------------------- One of the types of triangles that can lead you to money is Symmetrical Triangle which I’ll explain here: Symmetrical Triangle Pattern in Upward Trends: Take a look at the picture below. You can see the price forms tops and bottoms after an upward trend and then forms lower tops and higher bottoms. 🔅 Now try to draw a resistance line at the top and a support line at the bottom. What do you see? Yeah! That’s a triangle. These two lines will make a tip called the triangle's apex. If the four pivots(at least), two tops and two bottoms, are connected with a line, you can say a Symmetrical Triangle pattern in an upward trend has occurred. 🔅 It’s noted that if the price breaks the support trend line and drops, you’ll see this as a reversal pattern or a Symmetrical Triangle in the downward trend. Not always; a Symmetrical Triangle is a continuous pattern. So Watch out! Here’s a picture of a reversal Symmetrical Triangle and how to trade while it is considered a reversal. How to trade on the Symmetrical Triangle in an upward trend: 1-After the pattern completes, you must wait for the pattern to give us the entry confirmation(the upper line of the Symmetrical Triangle). 2-Try to open a long position when the real breakout happens. That can make a good profit. The real breakout occurs when a green candle like the Marubozu candle closes above the upper line of the Symmetrical Triangle or the resistance line. 3-Don’t forget to put a stop-loss. That will be below the breakout candle or below the prior candle’s bottom. The distance between the first top and the first bottom in the triangle would be one of high risk-to-reward ratio take-profit points. The other way to take the profit is to draw a line from the first top facing the support trend line along. --------------------------------------------------------------------------------------------------------- Symmetrical Triangle Pattern in Downward Trends 🔅 Another trend that a Symmetrical Triangle can move is downward trend when the price continues downward after forming the pattern. 🔅 Luckily, one of the best tools that can help you earn lots of money is the Symmetrical Triangle because it supports two-sided markets. But the question is how this type of triangle forms. Stay with me. 🔅 Imagine you’re walking through the bushes for a long time, then you’ll get tired, and you don’t feel energetic in your feet to move on. So do buyers and sellers in the financial markets. 🔅 When the price of an asset enters a converging trend of lower tops and higher bottoms, buyers and sellers test how strong the trend is. The buyers make bottoms at a higher price as sellers prevent the creation of a higher top. 🔅 In this case, the sellers are mostly winners, so better to be a seller rather than a buyer. Like the pattern I already discussed, the Symmetrical Triangle pattern in a downward trend needs at least four significant pivots to be confirmed. 🔅 There's also a possibility of breaking the upper line of the Symmetrical Triangle on the top after the Symmetrical Triangle pattern formation. The reversal pattern has occurred in this case, and the long position is considered a plan. How to trade on the Symmetrical Triangle in a downward trend: 1-You have to wait for the candles to break the lower line of the Symmetrical Triangle. But the only key point is that if the breakout is valid. So if the breakout candle closes below the lower line of the Symmetrical Triangle, it’s time to open a short position. 2-The stop-loss will be above the last top. Therefore, in case of opening a short position on an asset, you can also place your stop-loss above the breakout candle for a higher risk-to-reward ratio. 3-The price targets will be 1) the distance between the first bottom and the first top, or 2) you can draw a line from the first bottom facing the resistance line. 🔷 Below, you can see a Symmetrical Triangle in a downward trend and how you can trade with it. --------------------------------------------------------------------------------------------------------- The Importance of Trading Volume in the Symmetrical Triangle Pattern 🔅 The asset chart is in correction as long as the price chart is inside the Symmetrical Triangle pattern. 🔅 The trading volume in the pattern process will be neutral as most traders are waiting for the follow-up movement of the asset. 🔅 The closer the chart gets to the apex of the triangle to depart from the pattern, the range of fluctuations and the trading volume become less and less. 🔅 The importance of trading volume in the Symmetrical Triangle pattern can be seen near the exit from the pattern. 🔅 If the previous trend of the chart was bullish, it is likely that the trading volume will increase dramatically if the pattern is broken. 🔅 Also, the trading volume will decrease near the triangle's apex, but it increases instantly after breaking out, whether it is an upward or downward trend. 🔅 For this purpose, examining the trading volume in different areas of the pattern can greatly help us better understand the trend and predict the future of the asset. 🔅 In a way, you always have to wait for the chart to go out of the pattern, and by checking the direction of the trend and trading volume, you can make a better decision about buying or selling your currencies. --------------------------------------------------------------------------------------------------------- Symmetrical Triangle in Elliott Theory The Symmetrical Triangle called the “Contracting Triangle,” is a basic pattern in Elliott Waves. Elliott triangles can be considered one of the stable consolidation patterns in the market, which can be divided into five waves. To return, each of these five waves carries three sub-waves. The waves of the triangle are named A, B, C, D, and E. The Symmetrical Triangle can often be seen as a continuation pattern that creates a pause in the trend and then resumes. In this pattern, wave A, which is the biggest wave in the pattern, can be a zigzag, double zigzag, triple zigzag, or a flat pattern, and wave B can only be a zigzag, double zigzag, or triple zigzag. Waves D and C can also move in their pattern by a zigzag pattern, and finally, an E wave is formed, which can be a zigzag, double zigzag, triple zigzag, and sometimes a triangle. In a Symmetrical Triangle, waves B, C, and D often cover 61.8% of the previous wave. Finally, by drawing this pattern's up-and-down trend lines, the lines get close to each other and cannot be parallel. --------------------------------------------------------------------------------------------------------- Conclusion: 🔔 In this article, you learned about the Symmetrical Triangle and how to trade using the pattern. You now know where to enter and exit the market to make a suitable profit. Don’t forget to follow your capital management to lower the trading risks.
Education
by pejman_zwin
17
A beginner's guide to the foreign exchange marketForex trading, or foreign exchange trading, is the buying and selling of currencies in the global market. It is the largest financial market in the world, with an average daily turnover of over $5 trillion. Forex trading can be a profitable investment opportunity, but it is important to understand the market before diving in. The forex market is decentralized, which means that there is no central exchange where all trading takes place. Instead, trading occurs through a network of banks and brokers around the world. This makes forex trading accessible to anyone with an internet connection, 24 hours a day, five days a week. In forex trading, currencies are always traded in pairs. The first currency in the pair is called the base currency, and the second currency is the quote currency. For example, the EUR/USD pair represents the euro as the base currency and the US dollar as the quote currency. When trading, you are essentially betting on the direction of the exchange rate between the two currencies. There are two main types of analysis used in forex trading: fundamental analysis and technical analysis. Fundamental analysis involves looking at economic, political, and social factors that may affect currency prices, while technical analysis uses charts and indicators to identify trading opportunities based on past price movements. It is important to have a solid understanding of risk management when trading forex. This includes setting stop-loss orders to limit potential losses, diversifying your portfolio to spread risk across different currencies, and avoiding emotional trading decisions. In conclusion, forex trading can be a lucrative investment opportunity, but it is important to educate yourself on the market before getting started. Understanding the basics of currency pairs, analysis methods, and risk management strategies can help increase your chances of success in the forex market.
Education
by glorias3972
What is the Power in Buy and Sell WallsHello, dear @TradingView community! Welcome to another insightful educational topic focused on Buy and Sell Walls in the world of cryptocurrencies! Understanding buy and sell walls is critical for any trader or investor in the cryptocurrency market. It provides access to the order book and valuable insights into the market sentiment of specific cryptocurrencies. This understanding can help forecast future price movements and develop more effective trading strategies. In this article, we will delve into the concept of walls in crypto, explore how to identify and interpret buy and sell walls, and discuss their significance in the market. What is a Wall in Crypto? Understanding Buy Walls Understanding Sell Walls How to Identify Buy and Sell Walls How to Interpret Buy and Sell Walls What is a Wall in Crypto? A wall refers to a large limit order placed on a cryptocurrency trading platform, often depicted as a huge block on the order book. Market makers, institutional investors, as well as individual traders, utilize these large limit orders to buy or sell substantial quantities of a specific cryptocurrency at a predetermined price. Walls tend to have a significant market impact since they can influence the supply and demand levels of a specific cryptocurrency. These large limit orders, representing a considerable quantity of a cryptocurrency bought or sold at a specific price, have the potential to cause significant price fluctuations. Understanding Buy Walls Buy walls are substantial limit orders placed to purchase a specific amount of a cryptocurrency at a particular price or higher. They can be formed by large market makers, institutional investors, or individual traders seeking to buy a significant amount of a cryptocurrency at a specific price or lower. Buy walls can serve to profit from price movements or accumulate a large quantity of a cryptocurrency at a lower price. A buy wall indicates strong demand for a specific cryptocurrency at a certain price or higher, which can be seen as a positive sign for the market. It suggests that buyers are willing to pay the specified price or more, potentially leading to a price increase. Additionally, a buy wall may indicate that a large market maker or institutional investor has faith in the future price of a coin or a token. By investing a substantial sum, they express confidence that the cryptocurrency's price will rise in the future. Traders can utilize the presence of a buy wall to gauge market sentiment and identify potential buying opportunities. Buy walls can also serve as support levels and act as stop-loss points. Understanding Sell Walls Sell walls, on the other hand, consist of large limit orders placed to sell a specific amount of a cryptocurrency at a particular price or lower. Similar to buy walls, sell walls can be formed by market makers, institutional investors, or individual traders looking to sell a substantial amount of a cryptocurrency at a specific price or higher. These limit orders are utilized to profit from price movements or liquidate a large quantity of a cryptocurrency at a higher price. A sell wall indicates a strong supply of a specific cryptocurrency at a particular price or lower, which could suggest overvaluation. It signifies that sellers are willing to sell at the specified price or lower, potentially leading to a price decrease. Furthermore, a sell wall can indicate that a large market maker or institutional investor holds a bearish outlook on the future price of a cryptocurrency. By selling a significant sum, they imply their belief that the cryptocurrency's price will fall in the future. Traders can leverage the presence of a sell wall to assess market sentiment and identify potential selling opportunities. Sell walls can also act as resistance levels for a cryptocurrency and serve as target price points for profit-taking. How to Identify Buy and Sell Walls Buy and sell walls can typically be found in the depth chart of order book on a cryptocurrency trading platform. They are often represented as conspicuous, large blocks, easily identifiable by traders. While some trading platforms provide graphical representations of the order book, this feature is not available on all platforms. When identifying buy and sell walls, it's crucial to consider the context surrounding them, including current market conditions and the specific cryptocurrency being traded. Market conditions can change rapidly, so staying updated and understanding the current market environment is essential for making informed decisions. It's worth noting that larger buy or sell walls tend to have a greater impact on the market compared to smaller ones. A large wall could indicate the involvement of a significant market maker or institutional investor, which can potentially influence the price of a specific cryptocurrency more significantly. How to Interpret Buy and Sell Walls By examining both buy and sell walls, traders can gain insights into the supply and demand levels for a specific cryptocurrency. A large buy wall suggests strong demand, while a large sell wall indicates substantial supply. When used together, these walls provide a comprehensive view of market sentiment and the supply-demand dynamics of a cryptocurrency. Combining buy and sell walls can also help identify potential buying or selling opportunities. For example, if there is a significant sell wall and a large buy wall at the same price level, it may indicate a state of equilibrium in the market, presenting an opportunity for traders to enter or exit positions. The presence of a buy wall typically indicates a bullish sentiment, while a sell wall suggests a bearish sentiment. A market with more buy walls than sell walls tends to exhibit bullish market sentiment, while a market with more sell walls than buy walls suggests a bearish sentiment. It's important to note that the absence of buy or sell walls may indicate a lack of market activity or market uncertainty. It can also imply a period of consolidation or a lack of liquidity, which can impact trading conditions and market volatility. Buy and sell walls can serve as potential entry and exit points for trades as well. A buy wall at a specific price can be seen as an opportunity to enter a long position, while a sell wall at a particular price may indicate a suitable exit point for a short position. Conclusion Buy and sell walls represent significant limit orders placed on cryptocurrency trading platforms, offering insights into the supply and demand levels for a specific cryptocurrency. They are used by market makers, institutional investors, and individual traders to profit from price movements or accumulate/liquidate substantial amounts of a cryptocurrency. Understanding buy and sell walls is instrumental in making informed buying and selling decisions, as they display supply and demand levels and provide insights into market sentiment, which can serve as a reliable predictor of market trends. Analysing the impact of buy and sell walls on the market can help traders develop effective trading strategies, identify potential opportunities, determine entry and exit points, and assess market sentiment accurately. By mastering the concept of buy and sell walls, traders can enhance their ability to navigate the cryptocurrency market with greater precision and confidence. We put a lot of effort into researching and writing this piece, and we would love to hear your thoughts and feedback. Have you found the information in the article helpful and informative? Did it provide you with valuable insights into understanding market sentiment and trading strategies? Is there anything you would like to expand upon or clarify further? Your feedback is greatly appreciated and will help us improve future articles. Thank you in advance for taking the time to read and share your thoughts. Happy trading! @Vestinda
Education
by Vestinda
Volume Indicators: Using Indicators to Analyze VolumeIn our last post we discussed how volume plays a crucial role in financial trading, providing insights into the strength of price movements and overall market sentiment. Volume indicators are essential tools for traders, helping them make informed decisions based on market activity. In this blog post, we will dive deep into the world of volume indicators, discussing their importance and exploring the best indicators available for analyzing volume in day trading. We will also provide practical examples of how these indicators can be used to enhance trading strategies. The Importance of Volume Indicators Volume indicators can reveal the level of interest in a financial instrument, showing how many shares, contracts, or lots are being bought or sold within a specific time frame . By analyzing volume, traders can better understand the market's momentum and identify potential breakouts, reversals, and areas of support or resistance. Volume indicators can also help traders detect bullish or bearish divergences, where price movements and volume are not aligned, indicating a possible trend reversal. Top Volume Indicators a. Volume-Weighted Average Price (VWAP) VWAP is a popular volume indicator that calculates the average price of a financial instrument, weighted by volume. It is often used as a benchmark by institutional traders to gauge the efficiency of their trades. VWAP can help traders identify trends and potential entry and exit points, particularly for intraday trading. b. Volume-Weighted Moving Average (VWMA) Like VWAP, VWMA assigns more importance to periods with higher volume by calculating a moving average that incorporates volume data. VWMA can be used to confirm trends, as a rising VWMA in an uptrend or a declining VWMA in a downtrend shows that volume is supporting the price movement. c. Money Flow Index (MFI) MFI is an oscillator that measures the inflow and outflow of money into a financial instrument over a specific time frame. It combines both price and volume data, providing insights into buying and selling pressure. MFI can help traders identify overbought or oversold conditions, as well as potential trend reversals. d. Accumulation and Distribution Indicator This indicator measures the cumulative flow of money into and out of a financial instrument, helping traders identify accumulation (buying) and distribution (selling) phases. A rising Accumulation and Distribution indicator suggests strong buying pressure, while a falling indicator signals strong selling pressure. e. Klinger Oscillator The Klinger Oscillator is a volume-based indicator designed to predict long-term trends by comparing short-term and long-term volume flows. It can help traders confirm price movements and detect potential trend reversals. f. On-Balance Volume (OBV) OBV is a simple but effective volume indicator that calculates the cumulative volume, adding the day's volume when the price closes higher and subtracting it when the price closes lower. OBV can help traders identify trends and potential breakouts by comparing price movements with volume data. Applying Volume Indicators in Trading When using volume indicators, it is important to remember that they should be used in conjunction with other technical analysis tools and price action analysis. By combining volume indicators with other technical indicators and chart patterns, traders can develop comprehensive strategies for trading breakouts, reversals, and identifying areas of support and resistance. Conclusion Understanding volume and incorporating volume indicators into trading strategies is essential for traders looking to make informed decisions in the financial markets. By using a combination of indicators such as VWAP, VWMA, MFI, Accumulation and Distribution, Klinger Oscillator, and OBV, traders can better analyze market activity and develop effective trading strategies. If you like our content don't forget to give us a boost and follow our page @LeafAlgo!
Education
by LeafAlgo
Practical Insights into the Risk ManagementHey there, amazing @TradingView community! It's @Vestinda, and we're on a mission to deliver content that truly makes a difference. 👉 To become a successful crypto trader, it's essential to have a solid understanding of trade and risk management concepts, such as stop losses, position sizing, and scaling. In this article, we'll explore these key concepts in-depth to help you minimize your risks and maximize your gains in the cryptocurrency market. Four Risk Management Concepts Every Crypto Trader Should Understand To effectively manage the risk associated with trading, it is essential to first develop a comprehensive trade management and risk management strategy. Before committing your capital to any position, it's critical to have a clear plan in place to minimize potential losses and optimize your overall trading performance. Successful market speculation requires effective risk management to preserve capital, which is the primary objective. By minimizing losses and maximizing gains through a comprehensive trade and risk management strategy, traders can achieve long-term success in the market. One of the key strategies employed by the most successful traders is to minimize their losses while allowing their profitable trades to run. This approach is essential for avoiding disastrous scenarios, such as allowing profitable trades to turn into losers or allowing a single bad trade to wipe out an entire account. By focusing on risk management and trade management, traders can increase their chances of success and protect their capital over the long term. It's true that implementing the "cut losses quickly and let profitable trades ride" strategy can be challenging, especially for discretionary traders who need to constantly evaluate changes in fundamentals and market sentiment against price movements. However, there are trade and risk management ("TRM") tools and methods available that can help simplify this process. While these tools and methods may seem complex at first, they are quite accessible and easy to learn. With the right TRM strategies in place, traders can effectively manage risk and optimize their performance in any market condition. Before diving into trading, it's crucial to understand four key concepts in trade and risk management: Stop losses: Stop losses are predetermined exit points designed to limit potential losses on a trade. By setting a stop loss, traders can automatically close a position if the market moves against them beyond a certain point, minimizing their losses. Traders may use price action signals, technical indicator signals, fundamental analysis, or a combination of all three to determine the appropriate level for a stop-loss order. This helps to limit potential losses on trade and is a crucial component of effective risk management. Position sizing: Position sizing refers to the amount of capital allocated to a specific trade. By properly sizing positions based on risk tolerance and market conditions, traders can optimize their overall risk management strategy and minimize the impact of potential losses. Position sizing refers to the process of determining the quantity of cryptocurrency to long or short based on the maximum amount of value a trader is willing to lose if the trade fails, also known as "max risk." For novice traders, it is recommended that the maximum risk should not exceed 1-2% of their portfolio for short-term transactions and 5% for longer-term positions. For example, if a trader has a cryptocurrency account with $ 1,000 and wishes to purchase a token with a market price of $ 10.0 per token, they would need to determine the appropriate position size to maintain their desired level of risk. If their analysis indicates that they should place a stop loss at $ 5.0 per token to limit their maximum risk to 2% of their account, or $ 20.0, then the appropriate position size would be 4 units (40$ position size). This way, if the token's value drops by $ 5.0, the resulting loss of $ 20.0 would equal 2% of the trader's account. Scaling: Scaling involves adjusting position sizes based on the performance of a trade or the overall market conditions. By scaling into or out of positions based on market conditions, traders can adjust their risk exposure and optimize their potential for gains while minimizing potential losses. Scaling refers to the practice of dividing entries and exits into two or more orders around a trader's intended entry/exit area to reduce the likelihood of setting an entry too low or too high. This is particularly important because it is nearly impossible to predict the exact price or time at which the market's direction or volatility levels will change. For example, if a trader intends to buy a token for $ 10.0 but their analysis indicates that it may drop as low as $ 8.0 before sentiment entirely flips bullish, they should consider dividing their entry/exit orders into multiple price levels. This way, they can enter the trade with a partial position if the token's price does not drop below $10.0, but if it drops to $ 8.0, they can scale into a lower average price of $ 8.75. By using scaling and position sizing in conjunction with a maximum stop loss level, traders can effectively manage their risk and reduce the likelihood of incurring significant losses. While these concepts are relatively simple, understanding and applying them correctly can help traders avoid significant risks in the cryptocurrency market. Leverage: Trading with leverage involves taking positions that exceed the account's total capital, which can be done through crypto exchanges (CEXs) offering margin trading or some DeFi protocols providing advanced borrowing mechanisms. For instance, assume you have $ 100 in your account, and you want to purchase 1 unit of XYZ token worth $ 100, creating an open position valued at $ 100. Margin trading offered by a CEX may only require a 10% margin, meaning you only need to invest $ 10 instead of the entire $ 100. You can then utilize the remaining $ 90 to open additional positions, which can be tempting for many traders. With a 10% margin requirement and a $ 100 account, you can open a position size of 10 XYZ tokens, having a notional value of $ 1000 ($ 100 x 10 units), with the CEX holding the $ 100 in your account as a margin for the trades. This would make you leveraged 10x, which is considered an extremely high amount of leverage. If the token increases in value by 10% in a short period, the position value would grow from $ 1000 to $ 1100, which means you could double your account value from $ 100 to $ 200 (i.e., $ 100 profit + $ 100 margin). Alternatively, if the token rises by 20% to $ 1200, you would triple your account to $ 300 in value. Although the potential for high profits may sound exciting, it is crucial to remember the risks associated with trading with leverage, and it is advisable to exercise caution and not get carried away by the prospect of quick and easy gains. Many traders are lured by the potential profits of leveraged trading, but it's important to remember that leverage can be just as dangerous as it is rewarding. If a trader opens a position with 10x leverage and the position loses just 5%, that would be a loss of $ 50, which is 50% of their $ 100 account. Additionally, if the position were to lose 10%, resulting in a $ 100 loss, the trader would receive a margin call and would need to deposit more money to keep their trades open. If they are unable to do so, the CEX will close all positions, also known as being "liquidated". The CEX will use the margin that the trader had provided to cover the $ 100 loss, which means that the trader's account balance would be reduced to $ 0. It's essential to be aware of the risks of leveraged trading, as you could potentially lose everything you've invested. It's important to remember that leverage in crypto trading is a double-edged sword that can either grow your account or quickly deplete it. While it's possible to make significant profits with leverage, it's equally possible to suffer substantial losses. As a new trader, it's important to acknowledge that trading with leverage requires expertise and a sound risk management strategy, which can be challenging to implement successfully. Therefore, it's wise to approach leverage with caution and focus on developing your skills and knowledge before considering this tool. Here are some recommendations that can help you navigate the exciting but risky world of crypto trading: First, it's important to be conservative with your risk-taking and to only invest in your very best trade ideas. Limiting your total exposure to the crypto sector to a small percentage of your total liquid capital, starting at 1%, is a good way to minimize your risk. You should also limit your exposure to a specific crypto asset to a small percentage of your total crypto portfolio, with a 1% to 2% max risk on short-term trades and a max of 5% risk on longer-term positions. Using a stop loss with every position is also crucial to limit potential losses. Remember, perfect timing is near impossible, so consider scaling into trading positions or "dollar cost averaging" into longer-term investments. Take profits along the way if a trade goes your way. And most importantly, avoid using leverage, which can be a double-edged sword and lead to substantial losses. Lastly, only invest your capital in your very best ideas, which should be low-risk/high-reward setups on high-probability ideas. Don't force trades when there are no compelling opportunities, and remember that "no position" is a perfectly fine position when you don't see any good opportunities. Calling all traders! Are you ready to take your skills to the next level? Join our community of like-minded traders and stay up to date with the latest market trends and insights. Hit that follow button and show your support by giving this article a big thumbs up. Together, we'll navigate the markets with ease and achieve financial success. Don't miss out on this opportunity to grow and learn with us. Let's do this!
INDEX:BTCUSDEducation
by Vestinda
1
Trader ⚔️VS⚔️ Analyst !!!(Differences)Hi, everyone👋. Do you like surfing or guiding surfers? In this article, I will talk about how analysis differs from trading. A good analyst is not necessarily a good trader📉. Do you know what the point is❗️❓ The point is that analysts talk about all aspects, so they always tell the truth and explain what really happens on the market, but the traders ride the waves. Financial markets include high and low waves, so if a trader makes a mistake in measuring its depth, speed, and height may drown in the sea. If you are a trader, don’t be proud of yourself because the financial market sea is very cruel or a beast. —------------------------------------------------------------------------------------------------------------------ There are four trading keys in financial markets: Trading Strategy Capital Management Market Psychology Trader Psychology These keys are like four legs of a chair🪑 which should be sat on carefully and calmly. Although by removing one of the legs, it’s possible to sit on the chair, safety has to be considered. I’ll explain all the trading keys in the market in other posts later, but for now, let me dig into the differences between Analysis📈 and Trading💰 . What is considered in the analysis are the price targets in both rising🟢 and falling🔴 markets, the probability of its occurrence and non-occurrence, and the necessary conditions for both. Considering the subtlety of an analyst's words and the mentality of the people studying - who are mainly looking for confirmation of their position - generally, the analyst will always be right unless he has declared only one direction decisively, which is not an analysis, but a signal and prediction. Declaring an upward↗️ or downward↘️ trend in only one direction is not an analysis but a prediction. It’s noted that any prediction can be wrong. But in the comprehensive analysis of both sides, the necessary conditions for their occurrence and their probability are stated, so whatever happens, the analyst is right, and you will hear the famous saying "as predicted." 🔷 A successful trader can take the following steps: Comprehensive analysis of the market situation in which he wants to trade: The technical analysis must be prepared before opening a trade position. A wrong analysis does not always lead to a wrong trade, and vice versa, a correct analysis does not lead to a correct trade because you have to see whether the position trigger is activated or not. Find useful trading strategies to achieve profitable trading: A trading strategy can be a system that includes a combination of different indicators and oscillators, which can finally indicate the entry and exit points as well as profit and stop loss while trading. This system makes you behave like a robot; after understanding and analyzing the market, you’ll wait for the entry and exit points to appear. Trusting this trading strategy is one of the critical keys to successful trading. All the points mentioned so far are related to the technical analysis aspects; otherwise, in the Fundamental field, a daily checklist of various factors affecting the market is needed, which is vital for Fundamental analysis. Find your own timeframe: Chart analysis and trading can be viewed from the 1-second time frame(short-term) to several years(long-term), but every trader should have his own time frame based on his trading strategy. The time frame is important because: The trading strategy should help traders find the entry and exit signals in the same time frame. The Stop Loss(SL) should be determined based on entry points in the same time frame. The time required to reach profitability is estimated based on the same time frame. You can't analyze on a daily time frame and expect to get a very good profit immediately after entering the position. After determining the time frame and with the help of the trading strategy, the following tasks should be done. Studying market analysis to identify market trends, the state of market movement waves, and daily, weekly, and monthly support and resistance zones. Determining the Entry Points(EP) based on the strategy Determining the Stop Loss(SL) based on the strategy Determining the Take Profits(TP) based on the strategy All the above must be done before entering the market, and the only thing done after entering the market is the last step—changing the exit point based on the variable stop loss to increase profit. —------------------------------------------------------------------------------------------------------------------ 🔷 Conclusion: According to the explanations given, it can be understood that analysis and trading have a significant differences. It should be noted that every wrong analysis published on social networks does not indicate that the analyst does not trade well and vice versa. So, to profit from the financial markets, you must be trained in the first step. Become an analyst and then trade. For this, you have to go step by step, don't be greedy, don't rush, so that you can stay in the financial markets and earn profit every day until you get a continuous profit one day.
Education
by pejman_zwin
20
EURUSD: Part 1 funny story!I. Not proficient unconsciously. When you enter the market and start trading, you may think that it's a great way to make money because you hear a lot about it and know of people who have made a lot of money from Forex. However, it's important to note that this is just the first stage and, like when you first learn to drive, it may seem easy at first but can be challenging as you continue to learn. Prices in the market can fluctuate wildly, adding to the complexity of Forex trading. When you're new to trading, it can be overwhelming and confusing. You may find yourself unsure of what to do when you see the prices fluctuate in the market. Without proper knowledge, you may take risks that could potentially harm your trades. You may even fall into a cycle of increasing your trading volume when you feel confident, only to end up losing capital in the long run. This is a common stage for beginners that typically lasts a few months to a year before moving on to the next phase. Continue ... I will release the next part tomorrow, stay tuned.
Education
by Sphyn-Trader
Trading ETHUSDT with Elliot WavesHi Traders, Investors and Speculators of the Charts 📈📉 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. In today's analysis, I'd like to present an easy-to-follow guide on using Elliot Waves for trading. Elliott Wave theory will require looking for a pattern of five consecutive waves before making a trading decision. Elliott Wave theory begins by identifying two different types of waves. Impulsive waves : Move in the same direction as the overall trend, 12345 Corrective waves : On the contrary, move against the overall trend. ABC Elliot Wave strategy needs to follow and abide by some strict rules in order to validate the 5 wave move. The three basic rules are : Wave 2 never retraces more than 100% of Wave 1. Typically, the retracement is between 50% and 61.8% of wave 1. Wave 4 never retraces more than 100% of wave 3. Typically, declines between 38.2% and 50% of wave 3. Wave 3 always travels beyond the end of wave 1 and it’s never the shortest one; Wave 3 will normally extend 161.8 x wave ❗ as above, A is close to Wave 4 There are also cycles within cycles. Think of it as a broccoli stem, where each flower head is composed up of many tiny smaller flower heads: Elliott Wave theory will require looking for a pattern of five consecutive waves before making a trading decision. Impulsive waves and corrective waves are perfect opposites. The most important thing is to observe the Macro trend before using Elliot Waves in other words, is the price in a bullish cycle or bearish cycle? Here are the basic steps to follow when trading with Elliott Waves: Step 1: Learn the Theory The first step is to familiarize yourself with the Elliott Wave Theory, which is based on the idea that financial markets move in predictable patterns. The theory suggests that market prices move in waves, with each wave representing a specific part of the overall trend. The theory identifies two types of waves: impulsive and corrective. An impulsive wave consists of five smaller waves, which move in the direction of the trend. A corrective wave, on the other hand, consists of three smaller waves, which move against the trend. Understanding the basics of Elliott Wave theory is crucial to trading with Elliott Waves. Step 2: Identify the Trend The next step is to identify the trend in the market you want to trade. This can be done by analyzing the price action on the chart. To identify the trend, look for a series of higher highs and higher lows for an uptrend, or lower lows and lower highs for a downtrend. Step 3: Look for Wave Patterns Once you've identified the trend, you need to look for wave patterns within the trend. An impulsive wave is made up of five smaller waves, and a corrective wave is made up of three smaller waves . These waves can be identified by analyzing the price action on the chart. Step 4: Use Indicators to Confirm the Wave Patterns While identifying wave patterns on the chart is important, it's also a good idea to use indicators to confirm the patterns. Some of my favorites include the Relative Strength Index (RSI) , Moving Averages (MA) and CryptoCheck START v3. Step 5: Enter and Exit Trades Once you've identified the trend and wave patterns, and confirmed them with indicators, you can enter a trade. You can use the wave patterns to identify potential entry and exit points. For example, you may want to enter a long position at the start of an impulsive wave and exit when the corrective wave begins. Step 6: Manage Risk 💭 Finally, it's important to manage risk when trading with Elliott Waves. This can be done by placing stop-loss orders to limit losses if the trade goes against you. It's also a good idea to use proper position sizing to ensure that you're not risking more than you can afford to lose. On the chart I have wave 4-5 hanging in the air atm, let's get to wave 3 first and then we can re-asses where 4-5 may be. Important to note that is is a longer term trading plan. _______________________ 📢 Show us some LOVE 🧡 Follow for daily updates and trade ideas on Crypto , Stocks , Forex and Commodities 💎 We thank you for your support ! CryptoCheck
Long
by CryptoCheck-
19
Advantages of Trading with Prop FirmsProprietary (prop) trading firms offer traders the opportunity to trade with the firm's capital, rather than their own, in exchange for a share of the profits. Here are some of the advantages and benefits of trading a prop fund account: Access to More Capital: Prop trading firms typically provide traders with access to significantly more capital than they would have if they were trading with their own funds. This allows traders to take larger positions and potentially earn greater profits. Lower Costs: Prop firms often provide their traders with access to discounted commissions, lower borrowing costs, and other benefits that can help reduce trading costs. Training and Support: Many prop trading firms offer training and support to their traders, which can be especially beneficial for those who are new to trading or who want to improve their skills. Shared Risk: Because prop trading firms are providing the capital, they share in the risk of the trades. This can be beneficial for traders who want to take larger positions but don't want to risk losing all of their own capital. Performance-Based Compensation: Prop firms typically offer traders performance-based compensation, meaning that traders are only paid a portion of the profits they generate. This incentivizes traders to focus on making profitable trades and can help align their interests with those of the firm. Overall, trading a prop fund account can offer traders access to more capital, lower costs, training and support, shared risk, and performance-based compensation. To find out about my favourite prop firms, comment below
COINBASE:BTCUSDEducation
by opes_trading_group
8