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Why do I need a stop loss and how to set it?📈 ❗️A stop loss is a limit order that protects you from further losses when the price moves against your position. Correctly used stop loss: 🟢Allows you not to lose the entire deposit in one transaction. 🟢Liquidates losses and frees margin for new transactions. 🟢Minimizes possible losses. ✅Trading with a stop loss limits your losses and saves your trading deposit from a sudden price movement that is not in your favor. You can perceive a stop loss as a kind of insurance. You have to constantly pay small premiums, but insurance will protect you from large monetary losses in case of sudden market movements against your position. ✅The rules for setting a stop loss are often misunderstood in conventional retail. However, it should be clear that you can never enter a trade without a stop loss. Not only because you risk losing too much on one trade, but you also easily fall victim to emotional trading mistakes. ✅When you know where your stop loss is (and why you are placing it there), you will feel less tempted to break your stop loss rules and are more likely to stick to your original plan. 🟡What are the ways of setting stops? There are three ways to set stop losses that can be used in trading: 1️⃣Volatility based stop loss. 2️⃣Time based stop loss. 3️⃣Structure based stop loss. 1️⃣Volatility based stop loss. The volatility stop loss takes into account the current price volatility in the market. The indicator that measures volatility is the average true range or the ATR indicator. You need to determine the current ATR value and multiply it by the coefficient of your choice. 2️⃣Time based stop loss The time stop determines when to exit the trade depending on the time that has passed since the start of the position opening. Instead of exiting the market depending on the value of the price, you exit after a certain amount of time has passed. 3️⃣Structure based stop loss. The structural stop loss takes into account the current state of the market relative to the levels. For example, the price usually reverses from the support level and goes up. Therefore, the stop loss can be placed under the support level. In this method, you know exactly when you will be wrong if the market structure is broken. On the other hand, if the levels are far apart, you will need a fairly large stop loss. Therefore, you will have to reduce the position size in order to maintain the current level of risk. ⚠️Stop losses should not be used in situations where the reasons for the transaction are exclusively fundamental. The price should have the opportunity to "take a walk" before the idea is implemented. Risk management is carried out by selecting the optimal share of the portfolio allocated to the transaction. Often, stop-losses are not used in long-term portfolio investment based on an unambiguous fundamental approach. ❗️Stop losses should be used in transactions where there are clear technical grounds for its placement. In such strategies, many adhere to the tactic that the potential profit exceeds the possible loss in a ratio of at least 2 to 1 or 3 to 1 (this is individual). Stop-losses are necessary for speculative trades with large "shoulders" and/or trades with a small movement potential, where the filigree execution of entry and exit is important. ❤️ Please, support our work with like & comment! ❤️
BITSTAMP:BTCUSDEducation
by UnitedSignals
9
Trader comfort zone journey 🥴➡️😊Let's end the week on a thoughtful note. On the chart is a visual I see the other day that I feel relates to trading massively. It's called the comfort zone map. This can be applied to many situations in a person's life as a generic visual map. But I really do think it represents the journey every trader must take in order to become successful. COMFORT ZONE It's where we all start any journey Sat in the comfort zone not wanting to leave as we dont want to fail or get hurt. Some will stay in this zone forever but will never progress. If you are on TradingView looking at this idea then chances are leaving this zone is already being explored. We all like this zone put you have to take the leap of faith in order to progress. As traders we all have to leave our comfort zone in order to start our trading journey. FEAR ZONE This is the worse zone for any human on any sort of journey but more so for traders. Things are really uncomfortable in this zone and pain will be felt. Mistakes will made, as traders money well be lost but key bit is learn from those mistakes. Plenty of people will turn their backs at this point and jump back into the comfort zone. Those who carry on trying to achieve will have other people questioning what are they doing. Don't let opinions sway you and find a way to find your feet in this zone. You will lack knowledge, You will lack skills at the start but traction comes with hard work and persistence. LEARNING ZONE The traction gained and hurdles overcome in the fear zone leads you to this zone. Once in this zone it's now all in the eye of the beholder. This is now the new comfort zone but don't drop the ball you can end up dropping back in this zone. Now's the time in this zone to really kick on but it can take time. You are now laying the foundations of an exciting future. Take the base knowledge gained and gain even more in this zone. Problems are no longer holding you back as you are able to overcome. You enjoy the challenges and tackle them head on while still learning. Putting the time in here takes you to the next step but also stands you in good stead for rest of lives hurdles. GROWTH ZONE This where the fruits of your labour are felt but not just in trading profits. Mindset and contentment are on point. Due to the above continued learning never stops. Objectives are now smashed. Purpose and fresh identic is now found within yourself. Continued Personal growth as well as financial growth is now a element of life. In this zone the end game is infinite but shouldn't be taken for granted. Hard work has got you here but don't get complacent. Treat everyday as an opportunity to fulfil your life even more in many ways not just money. You earnt the right to be in this zone so enjoy. But be grateful in this zone and take nothing for granted. Stay level headed and with the right mindset this becomes your new comfort zone to enjoy forever. Enjoy the weekend folks and see you next week 👍 Darren✌️
Education
by pow_removetheguesswork
52
Not having a position is also a position - When trading is bad?Every day we start by choosing between long and short. Sometimes you wake up, look at the btc chart - and clearly see your setup. And sometimes you don't see it. But you still saw how many of your friends traded shorts successfully and decide to enter a hostile market. Bottom line: Lost profit, exhausted nerves, stress, a blow to self-esteem. Most traders forget that there is a third option - to stand aside. Let's discuss when such position can be useful and why most people use it so rarely. Pro traders can be split into 2 types: Bulls and bears. They trade for profit only in one direction, because they have a trained eye to see only their kind of setups. When a bull finds himself in a bear market, he either trades in the red or breakeven. The same true for the bear. And yet, even knowing this, the trader continues to trade unfriendly setups. Fueled by success that he carries from his market, he is sure that just a little more, a LITTLE LITTLE more, and he will be able to trade profitably in this market as well. "And if I can trade for profit in both directions, then I will become an absolute terminator and even Warren Buffett himself will personally beg me to share my market forecast with him!" I don’t know if you woke up with such thoughts in the morning, but I definitely had a couple of times. The answer to this phenomenon is GREED (for money or fame). And the easiest way to get rid of such incidents is to write the following rule in your trading algorithm (I hope you have it): • Trading during correction is prohibited. Just one sentence will save you a huge amount of money and help you increase your capital much faster. Instead of losing money trading corrections, it is better to: • Relax and spend part of your honestly earned profit on yourself and your loved ones. • Patiently wait for your market and return to the game. Do this - and trading will bring you much more pleasure, and you will earn even more and enjoy your life! If this article was useful to you, please like and leave a comment so that I understand that it has value to you and will continue to write educational material in the future✌️
Education
by Artem_Dishel
277
1-year special: Indexes and oscillatorsDear readers and TradingView, today, it has been one year since our first publication. Therefore, we would like to express our gratitude for your immense support. Additionally, we prepared an education topic on indexes and oscillators for you. Indexes Indexes are cumulative sums of data, like price, volume, etc., continuously measured over time. Indexes are not limited to the boundaries like oscillators are, showing absolute changes. The relationship between price trend and index trend is more relevant than the value of the index itself. Indexes' forecasting strength lies in spotting the divergence between price and index trends. Therefore, the use of indexes is suitable for analyzing trending markets. Oscillators Oscillators are limited to specific past periods, and unlike indexes, they tend to oscillate within certain boundaries. Although, oscillators without boundaries also exist. The opposing limits usually represent contrary conditions in the market. Therefore, an oscillator's value is relevant for technical analysis as it has interpretative meaning. As oscillators oscillate, they tend to reach upper and lower bound extremes, called overbought and oversold zones. These extremes are implied by the value of 70 for overbought and 30 for oversold conditions. Although, oscillators do not always have to reach extremes near their boundaries. The study of trendlines, channels and patterns is applicable to oscillators. In addition, oscillators can be used to spot the divergence between price trend and oscillator trend. Furthermore, oscillators can be used in both trending and non-trending markets. However, oscillators also tend to perform well in the trading range as they can indicate potential reversals. Illustration 1.01 The picture above shows the daily chart of PepsiCo stock. Additionally, the chart shows the Relative Strength Index (RSI), which is probably one of the most famous momentum oscillators. The general area between 30 and 70 has a purple background. Absolute extremes below 30 and beyond 70 have a white background. Overbought Overbought is the market condition when it, or a security, is being expensive to its relative past time. On a graph, it is illustrated as an upper zone. Oversold Oversold is the condition of a market or particular security when it is being cheap to its relative past period. In other words, it is the opposite of the overbought condition. On a chart, it is depicted as the lower zone. Overbought and oversold level readjustments Overbought and oversold levels should be readjusted according to the strength of a prevalent trend. In an unusually strong uptrend, the overbought zone can be readjusted from 70 to 80 as the oscillator tends to peak at a higher value in such instances. Similarly, the oversold zone can be readjusted from 30 to 40 because an oscillator tends to bottom at a lower value in a strong uptrend. In a powerful downtrend, the overbought level can be readjusted from 70 to 60 as the oscillator tends to reverse sooner. Again similarly, the oversold level can be readjusted from 30 to 20 because an oscillator tends to bottom out at a lower value. Illustration 1.02 Illustration 1.02 depicts the daily chart of American Airlines stock and 21-day Kaufman's Adaptive Moving Average. Leading and lagging indicators The latest era of advanced computerized technology allowed easy usage of indexes and oscillators. These tools are also often called indicators. Technical analysis differentiates between leading and lagging indicators. Leading indicators are observable variables that predict a change in another variable, like price, volatility, etc., with which they are correlated. Leading indicators are used for forecasting purposes. In contrast to leading indicators, lagging indicators exhibit change only after the change in another correlated variable has already occurred. In other words, they trail change in another variable with some latency. Therefore, lagging indicators are good to confirm the prevailing trend. Divergence When a trend is prevalent, and two indexes (or an index and price) are going simultaneously either up or down, they exhibit a positive correlation. However, when this correlation breaks and one index (or the price) keeps going up while another index reverses down, the divergence is said to occur. Technical analysts should pay attention to this instance as it can sometimes foreshadow an upcoming trend reversal. However, there are many instances when divergence occurs, and the reversal in price trend fails to materialize. For this reason, some analysts like to implement the concept of double divergence. Illustration 1.03 The illustration above depicts the daily chart of Coca-Cola stock in a weekly time frame. The divergence between the direction of price movement and the RSI movement is observable. Relationship between the price and the indicator Technical tools are often used to predict the next move in price. However, there are instances when this relationship reverses and price starts to precede the movement of a particular indicator. This phenomenon is called reversal (not to be interchanged with the reversal in trend). Crossover Crossover occurs when the oscillator crosses over a significant level or crosses another oscillator. Important values are often represented by numbers such as 0, 30, 50, and 70. Other significant values can be either in the middle of the scale or near the boundaries of an oscillator. A trend is typically bullish when the oscillator moves above 0. When the oscillator moves below 0, it is generally considered to be bearish. Mechanical traders favor crossovers because they are easily observed, and their implementation helps avoid emotions that could potentially interfere with the trader's decision-making. Illustration 1.04 The picture above shows the daily chart of Glencore stock and MACD. Bullish crossovers occurred when MACD passed through the midpoint indicated by the number 0. This was followed by the beginning of the rally. Utility of indexes and oscillators Technical tools such as indexes and oscillators can be used to analyze a large spectrum of assets. They apply to stocks, commodities, ETFs, futures, currencies, and even cryptocurrencies. DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
SP:SPXEducation
by Tradersweekly
What is Rising Wedge pattern and how to trade with that?The Rising Wedge (also known as the ascending wedge) pattern is a powerful consolidation price pattern formed when price is bound between two rising trend lines. It is considered a bearish chart formation which can indicate both reversal and continuation patterns – depending on location and trend bias. Regardless of where the rising wedge appears, traders should always maintain the guideline that this pattern is inherently bearish in nature (see image). HOW TO IDENTIFY A RISING WEDGE PATTERN ON CHARTS The rising wedge pattern is interpreted as both a bearish continuation and bearish reversal pattern which gives rise to some confusion in the identification of the pattern. Both scenarios contain a different set of observation dynamics which must be taken into consideration. Reversal Pattern: Established uptrend Rising wedge consolidation formation Linking higher highs and higher lows using a trend line assembling towards a narrowing point Look for break below support for short entry Continuation Pattern: Established downtrend Rising wedge consolidation formation Linking higher highs and higher lows using a trend line assembling towards a narrowing point Look for break below support for short entry How to trade with this: *Entry Point: Right after the candlestick breakout of the support. *Stop-Loss: At the highest resistance level of the Wedge pattern. *Take-Profit: From the entry point, the distance is equal to the maximum width ( H ) of the rising wedge pattern. This is the academic shape of this pattern, in the future we will publish Falling Wedge pattern 📚 . Please follow our page to be informed as soon as the materials are published. Thank you all for supporting our activity with Likes 👍 and Comments ❤️
Education
by NamchaTa
4
Classic Trend Reversal Patterns📚 ✅It is difficult to overestimate the importance of the classic continuation and reversal patterns. For a real trader trading on the Forex market, it is huge, because these patterns make it possible to predict the behaviour of the price. ⚠️If one of the trend continuation patterns appears in front of us on the chart, it means that the usual correction (rollback) is taking place. After its completion, it becomes possible to profitably enter the market at the existing rate. 📈📉Head & Shoulders 🟢The Head and shoulders pattern is a reversal pattern that is usually formed during a bullish trend and creates a top — the first shoulder. After the correction, the price creates a higher top — the head. After the next correction, the price creates a third top, which is below the head — the second shoulder. So, we have two shoulders and a head in the middle. 🟢Of course, the head and shoulders reversal pattern has its inverse equivalent, which turns bearish trends into bullish ones. This pattern is called the Inverted Head and Shoulders pattern. 🟢Confirmation of the pattern occurs when the price breaks the line that runs through two bases on either side of the head. This line is called the neckline. When the price overcomes the neck line, we get a reversal signal. 📊Double Top and Double Bottom 🟢A double top consists of two peaks on the chart. These peaks are either at the same resistance level, or the second peak is slightly lower. A sample of a double top usually looks like the letter "M". 🟢A double top has its opposite, which is called a double bottom. This model consists of two bases, which are either located at the same support level, or the second base is slightly higher. The double bottom pattern usually looks like the letter "W". 🟢Confirmation of the Double top pattern comes at the moment when the price breaks through the minimum between the two tops. This level is marked by a line on the chart and is called a signal line. 🟢The stop loss order should be placed directly above the second top. The minimum profit target is equal to the distance between the neck and the center line that connects the two tops. ❗️The double bottom looks and works exactly the same. 💎Diamond 🟢It is quite difficult to see this pattern on a real chart – it looks like a standard flat, but with unstable volatility. A diamond means, at least, medium-term market uncertainty, when the probability of movement in any direction is almost the same. But the longer it takes to form, the stronger the breakdown and the subsequent trend will be. ☕️Cup with Handle 🟢The cup with handle pattern is considered a bullish continuation pattern, so it is necessary to determine the previous uptrend. This can be done by analyzing price dynamics or technical indicators, such as moving averages. The cup should be more U-shaped, not V-shaped, and the upper points on both sides of the cup should be approximately at the same level. ❤️ Please, support our work with like & comment! ❤️
Education
by UnitedSignals
10
The Iceberg Illusion of Success in Trading 🏔️ When people see a consistently profitable trader they do not consider all the costs a successful trader has paid overtime (below the surface) to get to what they see (above the surface). So many things happen below the surface that nobody can see. Here are some of the below the surface things that compose the top of the iceberg that everyone sees: 🔰Dedication – you need to be loyal to your dream of becoming a pro trader. Your belief must be that strong so no one could dissuade you. You need an iron discipline to make it happen. 🔰Hard work – you should work day after day not letting yourself give up. Charts must be in front of you as much as it is possible. Trading terminal must become your best friend. 🔰Good habits – follow your trading plan, do not break your rules of risk management, avoid FOMO, etc. This is the set of habits that will be your satellite in your trading journey. Do them consistently and they will become a natural part of your life. 🔰Disappointment – it does not matter how hard you try. Occasionally things will fall apart anyway: you will face losing streaks and a strategy will refuse to work. It will hurt. "Stand up straight with your shoulders back". Treat disappointments as temporary things. 🔰Sacrifice – to become a consistently profitable trader you should pay the price. Losses, time, nerves. Your prosperous future will have a tremendous cost. 🔰Failure – while you are learning how to trade you will inevitably blow a couple of trading accounts, you will spend time on strategies and techniques that do not work. Occasionally you will fall. If so, stand up and keep going. 🔰Persistence – keep doing what you are doing no matter what. Do not let others persuade you that you can't make it. Even if things get tough, stay strong. 🔰Focus – always know what is your end goal, know where are you going, and what is your end destination. 🔰Flexibility – be prepared for sudden changes in the environment. Keep your focus on the goals that you set learning to adjust to the changing circumstances. 🔰Consistency – you will not get the desired results immediately. Be ready to do the same again and again, hundred times until the goal is achieved. Overnight success does not exist. If you want to become a consistently profitable trade be prepared for years of struggling and pain. And do not be afraid, it is worth it. ❤️Please, support this idea with like and comment!❤️
BITSTAMP:BTCUSDEducation
by VasilyTrader
15
Know When to Stop Trading⛔️ ✅Today we will talk about one of the most important things in trading, about what most traders around the world cannot do, even though they are well aware of the need for these actions. It will be about suspending and completely stopping their trading activities. ✅What to do if the trading system has failed, the market has changed, emotions fail or something has gone wrong. It is in this situation that the rules of action in extreme trading situations come to our aid. 1️⃣Three shots and you're dead — the rule of stopping trading within a day 🟢The main essence of this rule is contained in the title. And its essence is to stop trading if 3 consecutive losing trades were made during the trading session. No more deals are opened on this trading day. The trader has received a clear signal that something has gone wrong and the problem is either with the strategy or with the market or with the trader. 🟢Especially psychologically strong people who are sure that they will not be drawn to recoup, can continue to monitor the market, but it would be better to just close the trading platform and do something else, and after the trading session to analyze and find out what the problem was. 2️⃣Three volleys and you're dead — the rule of stopping trading for 2 days 🟢This rule is quite simple in formulation and just as complex in execution, in fact, as all the rules of risk management and capital management. 🟢If the three-shot rule has worked for three days in a row, then trading stops for 2 days. The principle is the same as in the previous rule, but in this case, the trader receives a signal that the problem is more serious than originally thought and it will not be possible to simply wait it out, serious measures need to be taken to analyze and correct the situation. 3️⃣The 30% trading capital rule 🟢If 30% of the trading capital was lost during trading, then trading stops completely until the moment when this loss is made up in any other way (of course legal). This rule will help to save your main working tool — trading capital and will allow you to relieve psychological stress because the trader will come out of a stressful state and realize that he has other ways of earning income, i.e. trading is not conducted with the last money. ❗️Observing these 3 simplest rules of stopping trading, you can be sure that you will never lose your deposit and even in the worst case scenario you will always be able to stop and beat the excitement that pushes many traders to return to the market again and again until zero remains on the account.However, all of the above is true only under one small condition — all three rules are strictly observed ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by UnitedSignals
7
HOW TO use asymmetric compounding 🧐📈The pair in question and four winning trades allows me to cover a subject I've wanted to touch on. That subject is asymmetric compounding. Asymmetric compounding is a money management strategy that can accelerate the equity curve of an account. But you need the right strategy and data available to back up using asymmetric compounding. Higher the win rate the more asymmetric will work wonders on that equity curve. In simple terms asymmetric compounding is best suited to strategies with higher win rates as you need consecutive wins to make it work. The main reason for using this NZDUSD chart is the four winners in a row make it easier to explain the concept of asymmetric compounding. You traders should know the full ins and outs of your own strategies and if this can be applied. It's not just win rate also RR along with max losing and max winning runs need to be factored in. For this example on the four winning trades I am explaining the concept basing it on risking 2% per trade on the initial trade. As this strategy is a 1:2 risk reward strategy risking 2% sees us gain a profit of 4% on one winning trade. This is where you can then use asymmetric compounding on your next trade. Instead of risking 2% again you now risk the 4% gained from the previous trade on this trade. If the trade goes on to win the 4% risked on that trade has just earned 8% in profit. At this point you go back to risking 2% on the next trade until you have a win and then risk the 4% gain from that winning trade. The chart shows four winning trades at 1:2 RR so lets test the concept in numbers. If we was to risk 2% per trade on a £1000 starting capital account the results are as followed. Trade one 2% risked 4% gained= £1040 capital. Trade two 2% risked 4% gained= £1081.60 capital Trade three 2% risked 4% gained= £1124.86 capital Trade four 2% risked 4% gained= £1169.85 capital Now if we apply asymmetric compounding to the same trade sequence staring back at original 2% risk after two winning trades Trade one 2% risked 4% gained= £1040 capital. Trade two 4% risked 8% gained= £1123.20 capital Trade three 2% risked 4% gained= £1168.13 capital Trade four 4% risked 8% gained= £1261.58 capital Using asymmetric compounding on these four trades see a capital increase of £91.73 more than just risking a flat 2%. Below is an example of using a 1:1 RR strategy risking 1% per trade. If trade is a winner then risk 2% on the next trade which is the profit and the risk from the previous trade. # If that trade wins go back to the intial 1% risk then risk 2% again if that trade wins. This is a great concept to grow small accounts or even pass funded challenges as with the trades shown on the idea chart you would pass most prop firm challenges in two trades using asymmetric compounding. However I can't stress enough you as the trader need to know you own risk appetite for this. You also need to factor in how good your win rates and how often your strategy has seen winning runs that would benefit this concept. One way to found out is to back test and forward test your strategy to see how asymmetric compounding could work for you. Thanks for taking time out your day to read over my idea. Ill see you on the next one 👍 Darren
Education
by pow_removetheguesswork
The study of the prism of vision 🎓Here an open mind opinion which will be very usefull if you are a beginner, if you are at research of profitable and regular results, if you research something working for you in this game, and for many others. I will not develop any strategies or analysis here (it would be too long), just show exemple of some with, in the end, some advice that you MUST read to perform in this trading. First I will explain why it came to my mind to make this post and secondly I will provide a deep speech for everyone of you. If you follow me, you know I provide notably updates on Bitcoin for the moment, my analysis, some explanations about what happen inside the market and some expectations for the future (and signal / trades when there is). Yesterday when I wrote the LDTP #11 (you can find it related to this idea), I explained many technical things and during I was writing the post, market made exactly what I was explaning for and what I usually develop. It gave this masterpiece from market like I called it in the initial post 👇 Here showing most of the knowledge I use in my strategy, you will find on this chart Volume analysis, Volume Profile analysis, Wyckoff Pattern analysis, Resistance / Support analysis, Candlestick analysis, Supply / Demand analysis but it's not what I want to develop here. When I cleared my chart, I said to myself : " How beginner cannot be lost when we see this obvious triangle that probably others people develop, exploit, trade for and claimed as THE solution in trading ? Which one say true, is it the Wyckoff pattern with the spring or is it the triangle ? " And so I developped this triangle, and others technics, always taking a blank chart arguying around differents technics. Here the result (I don't present it as working strategies, just as other setup, reading and visions) : Using Support / Resistances, Chartism analysis, Volumes 👇 Using Supply / Demand, Candlestick analysis 👇 Using Harmonic pattern 👇 Using Fibonacci retracements & extensions 👇 Or just using the Tradingview Bollinger Bands strategy 👇 And so, looking to that, I was asking myself : "How peoples can determined which content could be usefull for them when everybody say differents things, claiming for differents technics / strategies, speaking of a same chart ? Who say the truth ? Is this game a big coin flip party ? ". I believe some beginners have already wondered about it. How don't think that when you start here and you see many traders, revendicating as professionnals, saying the exact opposite of the others for some reasons that all seams technically viable. 🔰 So here my answer that you need to read : 🔰 In trading, nobody say true but nobody say wrong also, because there will be always a moment where they will have reason. No strategy say true but no strategy say wrong too, because there will be always a moment where they will have reason. Same as indicators, same as technics, same as ... In the end only market have reason. Don't search to control the market, search to understand it. Don't search to be rich, search to be profitable. Don't search to always have reason / always win trades, but most of the time. ▶️ Don't believe others ! Find usefull content, learn from them, learn from you, but learn. You will never win money by following naively what someone say even more if you don't understand what he say and why he say that. Look at all technics, at all approch, at all strategies you can find in trading, search on these, learn on these, until you find one which will fit with you. You will never win money by applying painfully the strategy of another person. Your mind, your personnality have to show through your strategy. Like there is thousand of assets to trade on, there is thousand way to trade them. ▶️ Grind the market until you apply your strategy/knowledges unconsciously ! Here how your brain work or how you have to make it work : You are unconsciously incompetent, then you do research to experiment new approch of understanding. You find it so you become consciously incompetent, then you learn about it to become better. You force yourself to apply it so you become consciously competent, then you grind it everyday, everyweek, everymonth as long you need for integrate it. When you are finally able to do it naturally you become inconsciously competent, then you can restart with another unconsciously incompetent aspect of you. ▶️ Don't avoid failure, you will fail ! Every trader already failed, at different scales, but this is a fact. This is how work your brain, you learn, then you apply, then you fail, then you learn from it to apply better and to avoid future mistakes. And failure will became less important but you will continue to fail, and you will continue to learn from them. This is how you become profitable. You can block yourself in a state where you don't want to fail, but you will never progress. Failure help to question ourselves, it's an essential step to progress. If you are not able to take a step back from your results, from how you apply your strategy and your knowledges, you will run into a wall, you will loose time and failure will became harder than never. ▶️ Become mathematically reliable ! Today you have the opportunity to test strategies for free, abuse of it. Use virtual money accounts and train for days, weeks, months, years until your strategy became mathematically reliable. By using virtual money and not your own, it will able you to fail, as much you need it. But you will also work on your strategy out of any emotions. Because when you trade with real money you are impacted by emotions, and as you are, your strategy will, and is profitability with it. If you don't do that step of learning and applying far from real money you will lose your time to blame your emotions like the reason why you are loosing money but it's just that your strategy isn't' profitable on long term. ▶️ Work on yourself ! As you have to work on your knowledges to improve yourself, you will have to work on your personnality to win money in trading. You will experience emotions and you will have to learn to control them. If you cannot you will have to learn to don't trade when you feel emotions. Emotions will make you overtrade, deviate from your strategy and so from your profitability in trading. Emotions will blind yourself from your true value, making you better than you are or worse than you are. Emotions will cause moments of intense joy as well as moments of deep sorrow. Frustration, revenge, confidence, motivation, patience, mistakes, pain, sadness, happyness I could quote decades that you will have to deal with, you will fail because of them, you will tilt, and you will have to learn about it again. Speaking of pacience, this is the major mistake of beginner for me, if you are not able to put your ass in a chair and look at market without taking a single trade during a full day, you don't trade for the good reason : you trade to feel emotions and not to win money. You are not looking the market to find entry, you are waiting the market to give you an entry : weigh the meaning of these words. And if you had doubts about it, you won't be rich tomorrow from trading because you read this words, but it can give you answer to achieve your goals. ▶️ Open your mind ! Like I showed there is many technics in trading, explore them ! That don't mean that you have to use them but you have to understand what exist, why some can be usefull in some case and not in other ... Also open your mind to other's plans, admit that you could say wrong and that you could think wrong. Another mistake that some do : don't explore only one way, don't think because this indicator say "..." that market can go only here "...". Take a step back, create scenarios that the market could follow and search in these which one you could exploit. Market cannot surprise you if you do this job, become proactive and stop being reactive. You will see that the emotional charge will be less important. But don't confuse, that don't mean you anticipate the market, you just imagine what he can do. Never anticipate the market, or you will lose money. ⚠️ To finish, I made a statement in one of my past ideas that I want to reiterate : "Whatever your strategy, whatever your indicators, whatever your amount of knowledges, if it is mathematically reliable it doesn't lie but premiums scams lie. Doesn't matter who you want to follow, who you want to support, who you want to believe, always verify that he doesn't provide public payable services where your person serv his own interest. That probably the best advice I can give you. You will need to surround yourself to progress in trading, that a fact, but don't be the food of this guys." Saying all that, I hope you understand now that trading isn't a question of "this indicator is better than this one", or "this strategy is the best way to ...", no it's just how you use it, how much you trained for, how much you grind to handle it. If you had to remenber only a sentence, use this one : "Making money in trading is math and respect of strategy, so never let your emotions guide you in uncomfortable positions" If you arrived to these final words I think it's because you want to improve yourself and I promise you that you will succeed if you put the amount of work necessary. It will not be an easy path but nobody said that it will be simple, except those who earn money from you. There was so much things to say that I probably forgot sometimes what I wanted to say, and there is always at least as much to say. Maybe one day I will do another chapter but for the moment : Like, follow or comment* if you like, I need it to continue ! *Speaking of comments, come ask questions, come share your point of view, come debate, I need it to feel that my without counterpart work is usefull for some !
Education
by Kentg
3
5 Important Candle Patterns You Need to Know📚 🟢Candlestick patterns and models in technical analysis can be used to predict future price movement. ⚠️There are many different candle patterns. Not all of them work equally well and often their form is quite subjective. Therefore, it is not necessary to make trading decisions based on patterns alone. It would be best to combine them with support and resistance levels, moving averages or other technical analysis indicators that strengthen signals to enter the market. ❗️Remembering a lot of different candle patterns is not as useful as understanding what is really behind their appearance, and who is currently controlling the situation in the market — bulls or bears. Let's look at the most popular and easiest to define patterns. ✅Bearish Engulfing It is formed during the upward momentum of the price at the local highs of the chart. The first small green candle of the pattern indicates that the bulls are already tired and they need a break. The large red candle that appeared next, swallowing the green one with its body, indicates that the bears took advantage of the situation and actively moved into a counteroffensive. Further movement of quotations downwards leads to the beginning of a downward correction. Confirmation of the beginning of the downward movement will be the price falling below the minimum of the second, large bearish candle pattern. ✅Bullish Engulfing It is formed during the downward movement at the local minima of the price chart. The first small red candle of the pattern shows that the bears' strength is already running out, after which a large green candle appears, completely absorbing the body of the first one. This suggests that the bulls felt the weakness of the bears and actively went on the offensive. Further upward movement of the price leads to the beginning of an upward correction. Confirmation of its beginning is the growth of quotations above the maximum of the second, large bullish candle pattern. ✅Doji In fact, doji can be one of the most important patterns in combination with other technical analysis tools. It shows indecision in the market and at its breakdown - it is possible to draw conclusions about the further probable price movement. ✅Shooting Star A clear sign of the dominance of sellers. After the opening of the candle, prices moved towards growth, but at the closing of the candle, sellers began to dominate buyers and the price closes near or below the opening price. The tail of this candle shows that it was in it that sellers began to "Crush" buyers. With such a pattern, there is a possibility of further decline. ✅Pin bar A clear sign of the dominance of buyers. After the opening of the candle, prices moved downward, but at the close of the candle, buyers began to dominate sellers and the price closes near or above the opening price. The tail of this candle shows that it was in it that buyers began to "crush" sellers. With such a pattern, there is a possibility of further growth. ❤️ Please, support our work with like & comment! ❤️
BITSTAMP:BTCUSDEducation
by UnitedSignals
3
Why Do You Need a Trading Plan?📝 If you want to become a consistently profitable trader you have two choices: 1️⃣strictly follow your trading plan or 2️⃣fail. Trading plan is essential for achieving your financial goals. It is a set of actions to follow for making trading decisions guiding you on how to react to certain events. It reflects your personality and characteristics. Moreover, its entire structure and content are primarily based on them. Your way to success will be full of obstacles. A lot of things will come in your way: losses, drawdowns, and losing streaks; mistakes, scams, and emotional decisions. Only your trading plan will show you a correct path, it ensures you will stay on track on your journey to your desired destination. When you make a wrong turn, it knows to make adjustments, and it points you back in the right direction. It is your guard from making any hurried decisions you could later regret. Trading without a trading plan wouldn’t be a smart idea. You wouldn’t know how to get to your destination and it’s highly likely that you get lost. Most importantly, if you suck at trading (and you certainly will in the beginning), you will know it is down to one of only two reasons: either there’s a problem in your trading plan or you are not sticking to your trading plan. Stick to your plan traders. "If you fail to plan, you plan to fail". ❤️Please, support this idea with like and comment!❤️
BITSTAMP:BTCUSDEducation
by VasilyTrader
23
VECHAIN VETUSDT CHART UPDATE In profits still holding vet nowhere near rally on the upside still imminent and vet as a project still way to under valued for the enormous utility use cases and all the multiple solutions they offer that's invaluable Novice as I am not only am I long on vet but am An aspiring Whale for this token and the cutting edge ecosystem vet has managed to gradually build over the period chasing not price but ensuring service offering and centric only to end user experience this is a Blockchain project that's gonna stand counted over the long term watch the space am still a Newbie Novice Thou I thank you Chosi Asibonge. locl
Long
by CrypT0Mntu
Being a weekend trading warriorYour results on Monday will be influenced by the work that you do on the weekend, specifically Sunday. As an intraday trader I constantly think about my trading. Here are a few points which every trader should focus on, 1 - Mapping our mental weaknesses We all have mental challenges, some of us have a lot of FOMO, while others oversize and over trade, you know what is holding you back as a trader... FIND IT AND WORK ON IT! 2 - Reviewing trades (winners & losers) Search for the plays where you can add size, search for patterns that you can exploit next week, review your best trades. What trades worked best for you? more of these on Monday. What trades are not working for you? Eliminate them. 3 - Checking for key levels & patterns The best in every industry practice and train... yet probably 90% of traders never really do any kind of practice, they search for a strategy and then cannot wait to apply it to the markets... real traders work on their trading hence they create REAL SKILLS!
BITSTAMP:BTCUSDEducation
by PrimedGroup
5
Japanese Candlesticks: learning to read and understand🕯 ✅Japanese candlesticks are the most popular way to read the price movement on charts. They are visual, easy to learn and the main thing is that they work. ✅The first mention of candle patterns can be found in the Japanese rice trader Homma Munehisa in the 1700s. Almost 300 years later, candles were rediscovered by Steve Neeson in his book titled "Japanese Candles. Graphical analysis of financial markets". ✅Candlestick charts provide much more information compared to linear charts and are currently the preferred market analysis tool for traders and investors. What are Japanese candles? 🟢Each of the candles tells us four facts about itself: the opening price, the maximum price movement, the closing price, and the minimum price movement. ⏺A bullish candle is formed when the price rises. In financial markets, the term bullish means a long position or a buy. ⏺A bearish candle is formed when the price falls. In financial markets, the term bearish refers to a short position or sale. ❗️The body of the candle is the space between the opening and closing of the candle. If the body is green, it means that the closing price of the candle is higher than the opening price. If the color is red, it means the closing price is lower than the opening price of the candle. ❗️Candle wicks represent the highest or lowest points that the candle has reached. 🟢Each candle represents a selected time frame or time interval during which it opens and closes. For example, on a 4-hour chart, candlesticks open and close every 4 hours. 🟢If we line up several candlesticks, we can compare them with a linear chart. Candle wicks also show price fluctuations. Thus, we immediately get the maximum information that we need for effective market analysis. ⚠️A trader who knows how to analyze and interpret candlestick patterns or patterns already understands the actions of financial market participants a little better. ❤️ Please, support our work with like & comment! ❤️
BITSTAMP:BTCUSDEducation
by UnitedSignals
14
CADJPY Daily Pitchfork ShortFOREXCOM:CADJPY I marked the pitchfork from the pivots on the weekly chart from June, September, and October. Confirmed with the Daily RSI and the Daily chart. It's very slight but there appears to be a bearish divergence on the RSI. I've only started dabbling in RSI divergences so I wouldn't consider this a confirmation, but it's worth noting. After looking at the 30M chart I am confident entering a short position. The Daily RSI is not what I like to see so my stop loss will be tight, probably only risk 0.5-1% with the TP at the median line.
Short
by UnknownUnicorn2349278