Get started

Learntotrade

Learn to Read Candlestick Strength | Trading Basics Hey traders, In this educational article, we will discuss how to objectively measure the market momentum with candlesticks. Please, note that the concepts that will be covered in this article can be applied on any time frame, however, higher is the time frame, more trustworthy are the candles. Also, remember, that each individual candle is assessed in relation to other candles on the chart. There are three types of candles depending on its direction: 🟢Bullish candle Such a candle has a closing price higher than the opening price. 🔴Bearish candle Such a candle has a closing price lower than the opening price. 🟡Neutral candle Such a candle has equal or close to equal opening and closing price. There are three categories of the strength of the candle. Please, note, the measurement of the strength of the candle is applicable only to bullish/bearish candles. Neutral candle has no strength by definition. It signifies the absolute equilibrium between buyers and sellers. 1️⃣Strong candle Strong bullish candle signifies strong buying volumes and dominance of buyers without sellers resistance. Strong bearish candle means significant selling volumes and high bearish pressure without buyers resistance. Usually, a strong bullish/bearish candle has a relatively big body and tiny wicks. 2️⃣Medium candle Medium bullish candle signifies a dominance of buyers with a rising resistance of sellers. Medium bearish candle means a prevailing strength of sellers with a growing pressure of bulls. Usually, a medium bullish/bearish candle has its range (based on a wick) 2 times bigger than the body of the candle. 3️⃣Weak candle Weak bullish candle signifies the exhaustion of buyers and a substantial resistance of sellers. Weak bearish candle signifies the exhaustion of sellers and a considerable bullish pressure. Usually, such a candle has a relatively small body and a big wick. Knowing how to read the strength of the candlestick, one can quite accurately spot the initiate of new waves, market reversals and consolidations. Watch how the price acts, follow the candlesticks and try to spot the change of momentum by yourself. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
7
Learn Pros & Cons of Trading on Demo Account Hey traders, In this article, we will discuss demo account trading. We will discuss its importance for newbie traders and its flaws. ➕Pros: Demo account is the best tool to get familiar with the financial markets. It gives you instant access to hundreds of different financial instruments. With a demo account, you can learn how the trading terminal works. You can execute the trading orders freely and get familiar with its types. You can get acquainted with leverage, spreads and volatility. Trading on paper money, you do not incur any risks, while you can see the real impact of your actions on your account balance. Demo account is the best instrument for developing and testing a trading strategy, not risking any penny. The absence of risk makes demo trading absolutely stress-free. ➖Cons: The incurred losses have no real impact, not causing real emotions and pressure, which you always experience trading on a real account. Your performance (positive or negative) does not influence your future decisions. Real market conditions are tougher. Demo accounts execute the orders a bit differently than the real ones. That is clearly felt during the moments of high volatility, with the order slippage occurring less often and trade execution being longer. Trading with paper money allows you to trade with the sums being unaffordable in a real life, misrepresenting your real potential gains and providing a false confidence in success. Even though we spotted multiple negative elements of demo trading, I want you to realize that it still remains the essential part of your trading journey and one of the main training tools. You should spend as much time on demo trading as you need to build confidence in your actions, only then you can gradually switch to real account trading. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
3
4 Signs that Say You’re Ready for Full-Time Trading For forex traders, nothing embodies freedom more than those who trade full-time. After all, full-time traders enjoy freedom from their box-type offices, freedom of time, and freedom to choose which trading opportunities to take. Unfortunately, this brand of independence isn’t for everyone. Just like too much freedom can do more harm than good for some economies, not all traders are ready to trade full-time. So how do you know when you’re ready for full-time trading? From what we’ve seen from online forex communities, we can narrow it down to four signs: 1. You have enough capital Trading full time means that you’ll be quitting your job, your primary source of income. And, because you’re realistic, you know that you probably won’t be making any serious trading money in your first few months. 2. You have tried and tested other methods and strategies Not only do you need to have a strategy that has proven to be profitable for you, but you also have to have other equally qualified methods that would work for other trading conditions. After all, you never know when and for how long the market trends will shift! 3. You have spent a considerable amount of time trading LIVE Trading a live account brings forth trading psychology hurdles that you wouldn’t get from trading demo accounts. In addition, you have to have a fairly good grasp of your trading strengths and weaknesses, and, more importantly, you should know how to stick to a trading plan before you make trading your full-time job. 4. Trading is your passion Trading currencies is what motivates you to get up and get busy every morning. Remember that while full-time trading would provide you more opportunities to catch market movements, you don’t need to be a full-time trader to be consistently profitable. What do you want to learn in the next post?
OANDA:XAUUSDEducation
by UnitedSignals
8
Learn How Candlesticks Are Formed A candlestick chart reflects a given time period and provides information on the price's open, high, low, and close during that time. Each candlestick symbolizes a different period. Here are the main 4 elements of a candlestick: Body The body is the major component of a candlestick, and it's easy to spot because it's usually large and colored. Within the interval, the body informs you of the opening and closing prices of the market. The open will be below on a green candle. The reverse is true for a red candle. The market declined during the time, thus the open is the top of the body and the close refers to the bottom of a candle. Wick The wick is the line that extends from the top to the bottom of the body of a candlestick. The upper wick emerges from the body's top and indicates the greatest price achieved throughout the time. The lower wick commonly referred to as the tail, is at the body's bottom, marking the lowest price. Open Price The initial price exchanged during the development of a new candle is represented as the open price. If the price begins to rise, the candle will become green and the candle will turn red if the price falls. Close Price The closing price is the most recent price exchanged during the trading phase. In most charting systems, if the closing price is lower than the open price, the candle will turn red by default. The candle will be green if the close price is higher than the open price. High Price The highest price exchanged throughout the time is shown by the upper wick or top shadow. Its absence indicates that the price at which the asset opened or closed is the highest traded price. Low Price The lowest price exchanged throughout the time is shown by the lower wick or low shadow. When there is no such lower wick or shadow, this indicates that the price at which the asset opened or closed is the lowest traded price. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
10
EYES ON EURUSD Sniper SetupTonight, I am looking at this setup on EURUSD. Once the algorithm presents its mode during Tokyo / Sydney, we will have more information on whether this a potential long or short opportunity. I have notice that the market tends to play between bank levels that are set during the previous sessions. I call these levels true support and true resistance. Most traders mark up from what is perceived to be places in the market where it bounces / rejects from multiple times but if deeper analysis is taken, one may find that these levels that the market is bouncing from may be session highs or session lows. Understand that these are the levels that are agreed upon as a premium or discount buy or sell zone and that the market switched algorithms at this points and places. If you would like to move with the banker's algorithm, you have a much better chance of catching the money train if you enter at the prices that they set as major areas of institutional interest.
by jefferytheartist
Forex Market: Who Trades Currencies & Why The foreign exchange or forex market is the largest financial market in the world – larger even than the stock market, with a daily volume of $6.6 trillion. The forex market not only has many players but many types of players. Here we go through some of the major types of institutions and traders in forex markets: Commercial & Investment Banks The greatest volume of currency is traded in the interbank market. This is where banks of all sizes trade currency with each other and through electronic networks. Big banks account for a large percentage of total currency volume trades. Central Banks Central banks, which represent their nation's government, are extremely important players in the forex market. Open market operations and interest rate policies of central banks influence currency rates to a very large extent. A central bank is responsible for fixing the price of its native currency on forex. This is the exchange rate regime by which its currency will trade in the open market. Exchange rate regimes are divided into floating, fixed and pegged types. Investment Managers and Hedge Funds Portfolio managers, pooled funds and hedge funds make up the second-biggest collection of players in the forex market next to banks and central banks. Investment managers trade currencies for large accounts such as pension funds and foundations. Multinational Corporations Firms engaged in importing and exporting conduct forex transactions to pay for goods and services. Individual Investors The volume of forex trades made by retail investors is extremely low compared to financial institutions and companies. However, it is growing rapidly in popularity. There is a reason why forex is the largest market in the world: It empowers everyone from central banks to retail investors to potentially see profits from currency fluctuations related to the global economy. What do you want to learn in the next post?
OANDA:XAUUSDEducation
by UnitedSignals
7
Learn How to Apply a Position Size Calculator Hey traders, In this educational article, I will teach you how to apply a position size calculator and calculate a lot size for your trades depending on a desired risk. First of all, let's briefly discuss why do you need a position size calculator. Even though, most of the newbie traders trade with the fixed lot, the truth is that fixed lot trading is considered to be very risky. Depending on the trading instrument, time frame and a desired stop loss, the risks from one trade to another are constantly floating. With the constant fluctuations of losses per trade, it is very complicated to control your risks and drawdowns. A lot size calculation, however, allows you to risk the desired percentage of your capital per trade, limiting the maximum you can potentially lose. A lot size is calculated with a position size calculator. It is integrated in some trading platforms like cTrader. If it is absent in yours, there are a lot of free ones available on the internet. Step 1: Measure a pip value of your stop loss. It is the distance from your entry level to your stop loss level. In the example on the picture, the stop loss is 290 pips. Step 2: Open a position size calculator Step 3: Fill the form. Inputs: Account currency, account balance, desired risk %, stop loss in pips, currency pair. In the example, we are trading with USD account. Its value is $20000. Trading instrument is EURUSD. Step 4: Calculate a lot size The system will calculate a lot size for your trade. 0.069 standard lot in our example. Taking a trade on EURUSD with $20000 deposit and 290 pips stop loss, you will need 0.069 lot size to risk 1% of your trading account. Learn to apply a position size calculator. That is the must-use tool for a proper risk management. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
5
Learn How to Trade Descending Triangle Pattern Descending triangle formation is a classic reversal pattern. It signifies the weakness of buyers in a bullish trend and bearish accumulation. ⭐️The pattern has a very peculiar price action structure: Trading in a bullish trend the price sets a higher high and retraces setting a higher low. Then the market starts growing again but does not manage to set a new high, setting a lower high instead. Then the price drops again perfectly respecting the level of the last higher low setting an equal low. After that one more bullish movement and one more consequent lower high, bearish move, and equal low. Based on the last three highs a trend line can be drawn. Based on the equal lows a horizontal neckline is spotted. ❗What is peculiar about such price action is the fact that a set of lower highs signifies a weakening bullish momentum: fewer and fewer buyers are willing to buy from horizontal support based on equal lows. 🔔 Such price action is called a bearish accumulation. Once the pattern is formed it is still not a trend reversal predictor though. Remember that the price may set many lower highs and equal lows within the pattern. The trigger that is applied to confirm a trend reversal is a bearish breakout of the neckline of the pattern. 📉Then a short position can be opened. For conservative trading, a retest entry is suggested. Safest stop is lying at least above the level of the last lower high. However, in case the levels of the lower highs are almost equal it is highly recommendable to set a stop loss above them all. 🎯For targets look for the closest strong structure support. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
5
Apt usdt short sell idea Greetings from Team : Trading The Tides. lets discuss a short sell oportunity on (APt usdt ) Target area for initiating short :5.4 DCA Limits : 5.5 TP :5,4.8,4.3 SL : 5.63 Hold Time : short- medium term Technical Chart Pattern: Almost at distribution zone , divergence on 30 min tf Posible liquidity area : 5.55-5.6 Exchange:Binance Rules : We use big capital with less leverage . Max leverage : 3x Better take trades with 1x. We only post the exact setup we are following for the trades . But DYOR . Not a Financial Advice ! From Team : Trading The Tides Like , Share ,Follow Thanks a lot and see you soon on the next trade .
Short
by xairuq
The Iceberg Illusion: The hidden logic of success We often get mesmerized by someone’s above the surface success and don’t factor in all the below the surface opportunity-costs they paid to achieve that success. This is the ‘iceberg illusion’. It’s been a fav analogy of mine for years. And yet, this just might be a better visual for sport than the ‘iceberg illusion’. You see… the hyper focus on outcomes is one of the biggest failings (or façades) that comes from social media. It creates a false impression of what leads to success. We see the success, but not the work that went into it… The unseen hours, necessary failures, setbacks, crises of confidence, the not-now’s (to the countless asks), the loneliness, the late nights and early mornings; and, all the wobbling that comes before the walking—much less running. There are no shortcuts. There are no overnight successes. The iceberg doesn’t move quickly. It’s not sped up. It just moves consistently; at often a barely discernible speed. What do you want to learn in the next post?
OANDA:XAUUSDEducation
by UnitedSignals
4
Learn How to Apply Multiple Time Frame Analysis Hey traders, In this article, we will discuss Multiple Time Frame Analysis. I will teach you how to apply different time frames and will share with you some useful tips. Firstly, let's briefly define the classification of time frames that we will discuss: There are 3 main categories of time frames: 1️⃣Higher time frames 2️⃣Trading time frames 3️⃣Lower time frames 1️⃣Higher time frames are used for identification of the market trend and global picture. Weekly and daily time frames belong to this category. The analysis of these time frames is the most important. On these time frames, we make predictions and forecast the future direction of the market with trend analysis and we identify the levels, the areas from where we will trade our predictions with structure analysis. 2️⃣Trading time frames are the time frames where the positions are opened. The analysis of these time frames initiates only after the market reaches the underlined trading levels, the areas on higher time frames. My trading time frames are 4h/1h. There I am looking for a confirmation of the strength of the structures that I spotted on higher time frames. There are multiple ways to confirm that. My confirmations are the reversal price action patterns. Once the confirmation is spotted, the position is opened. 3️⃣Lower time frames are 30/15 minutes charts. Even though these time frames are NOT applied for trading, occasionally they provide some extra clues. Also, these time frames can be applied by riskier traders for opening trading positions before the confirmation is spotted on trading time frames. Learn to apply these 3 categories of time frames in a combination. Start your analysis with the highest time frame and steadily go lower, identifying more and more clues. You will be impressed how efficient that strategy is. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
73
Gambler's Vision VS Pro Trader's Vision 👁 Hey traders, In this article, we will discuss the perception of trading by individuals. We will compare the vision of a professional trader and a beginner. The fact is, that most of the people perceive trading performance incorrectly. There is a common fallacy among them that win rate is the only true indicator of the efficiency of a trading strategy. Moreover, newbies are searching for a strategy producing close to 100% accuracy. Such a mindset determines their expectations. Especially it feels, when I share a wrong forecast in my channel. It immediately triggers resentment and negative reactions. Talking to these people personally and asking them about the reasons of their indignation, the common answer is: "If you are a pro, you can not be wrong". The truth is that the reality is absolutely different. Opening any position or making a forecast, a pro trader always realizes that there is no guarantee that the market will act as predicted. Pro trader admits that he deals with probabilities, and he is ready to take losses. He realizes that he may have negative trading days, even weeks and months, but at the end of the day his overall performance will be positive. Remember, that your success in trading is determined by your expectations and perception. Admit the reality of trading, set correct goals, and you will take losses more easily. I wish you luck and courage on a battlefield. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
7
10 Important Tips & Tricks To Improve Trading Skills In this article, we will discuss ten important tips and tricks that can enable you to improve your trading skills. A trading plan is a must Once you have tested the plan developed and it shows good results, that is the time to go full throttle investing in the stock market. Do not lose confidence Be a learner Be a learner and practice trading as a new entrant, even if it has been decades of trading for you. Look at trading as a classroom with much to offer and to be taken one thing at a time. Don't fall for rumours Treat it like a Business It is serious business here and requires precision, patience, commitment, in-depth analysis and cold-blooded research. A stop-loss is essential Have technology at your side Trader must be up-to-date on the happenings in the trading world and use technology to know about stock movements, new products, new trading schemes and pre-empt market movements. Defend your trading capital Take risks that you can afford It enables you to plan well and not overexpose yourself to the risks in share market trading. Be open to new strategies Never in trading should there be a time that you follow a trading plan that is outdated or rigid to change. What do you want to learn in the next post?
OANDA:XAUUSDEducation
by UnitedSignals
8
Overcome Fear of Missing Out 🤮MAIN TALKING POINTS: What is FOMO in trading? What characterises a FOMO Trader? Factors that can Trigger FOMO DailyFX analysts share their FOMO experiences Tips to overcome FOMO WHAT IS FOMO IN TRADING? FOMO in trading is the Fear of Missing Out on a big opportunity in the markets and is a common issue many traders will experience during their careers. FOMO can affect everyone, from new traders with retail accounts through to professional forex traders. In the modern age of social media, which gives us unprecedented access to the lives of others, FOMO is a common phenomenon. It stems from the feeling that other traders are more successful, and it can cause overly high expectations, a lack of long-term perspective, overconfidence/too little confidence and an unwillingness to wait. Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Common emotions in trading that can feed into FOMO include: Greed Fear Excitement Jealousy Impatience Anxiety WHAT CHARACTERIZES A FOMO TRADER? Traders who act on FOMO will likely share similar traits and be driven by a particular set of assumptions. WHAT FACTORS CAN TRIGGER FOMO TRADING? FOMO is an internal feeling, but one that can be caused by a range of situations. Some of the external factors that could lead to a trader experiencing FOMO are: Volatile markets. FOMO isn’t limited to bullish markets where people want to hop on a trend – it can creep into our psyche when there is market movement in any direction. No trader wants to miss out on a good opportunity Big winning streaks. Buoyed up by recent wins, it is easy to spot new opportunities and get caught up in them. And it’s fine, because everyone else is doing it, right? Unfortunately, winning streaks don’t last forever Repetitive losses. Traders can end up in a vicious cycle: entering a position, getting scared, closing out, then re-entering another trade as anxiety and disappointment arise about not holding out. This can eventually lead to bigger losses News and rumours. Hearing a rumour circulating can heighten the feeling of being left out –traders might feel like they’re out of the loop Social media, especially financial Twitter (#FinTwit). The mix of social media and trading can be toxic when it looks like everyone is winning trades. It’s important not to take social media content at face value, and to take the time to research influencers and evaluate posts. We recommend using the FinTwit hashtag for inspiration, not as a definitive planning tool. As well as affecting traders on an individual level, FOMO can have a direct bearing upon the markets. Moving markets might be emotionally driven – traders look for opportunities and seek out entry points as they perceive a new trend to be forming. DAILYFX ANALYSTS SHARE THEIR FOMO EXPERIENCES Traders of all levels of experience have dealt with FOMO, including our DailyFX analysts: “Trade according to your strategy, not your feelings” – Peter Hanks, Junior Analyst “Strategize. Execute. Stick to the plan and don’t be greedy. All types of traders make money; pigs get slaughtered” – Christopher Vecchio, Senior Strategist “Trade decisions are not binary, long vs. short. Sometimes doing nothing is the best trade you can make” - IIya Spivak, Senior Currency Strategist “If you don’t deal with and temper FOMO in trading – it will deal with you” – James Stanley, Technical Strategist “No one trade should make or break you. With that said, if you miss an opportunity there is always another one around the corner” – Paul Robinson, Currency Strategist TIPS TO OVERCOME FOMO Overcoming FOMO begins with greater self-awareness, and understanding the importance of discipline and risk management in trading. While there is no simple solution to preventing emotions from impacting trades and stopping FOMO in its tracks, there are various techniques that can help traders make informed decisions and trade more effectively. Here are some tips and reminders to help manage the fear factor: There will always be another trade. Trading opportunities are like buses – another one will always come along. This might not be immediate, but the right opportunities are worth the wait. Everyone is in the same position. Recognising this is a breakthrough moment for many traders, making the FOMO less intense. Join a DailyFX webinar and share experiences with other traders – this can be a useful first step in understanding and improving trading psychology. Stick to a trading plan. Every trader should know their strategy, create a trading plan, then stick to it. This is the way to achieve long-term success Taking the emotion out of trading is key. Learn to put emotions aside – a trading plan will help with this, improving trading confidence. Traders should only ever use capital they can afford to lose. They can also use a stop to minimise losses if the market moves unexpectedly. Knowing the markets is essential. Traders should conduct their own analysis and use this to inform trades, taking all information on board to be aware of every possible outcome. FOMO isn’t easily forgotten, but it can be controlled. The right strategies and approaches ensure traders can rise above FOMO. Keeping a trading journal helps with planning. It’s no coincidence that the most successful traders use a journal, drawing on personal experience to help them plan. Overcoming FOMO doesn’t happen overnight; it’s an ongoing process. This article has provided a good starting point, highlighting the importance of trading psychology and managing emotions to prevent FOMO from affecting decisions when placing a trade. TURN YOUR FOMO INTO JOMO Now you know how to spot and stop FOMO in its tracks, find out how to embrace JOMO in trading and change your mindset for greater success. Source: DailyFX
OANDA:XAUUSDEducation
by Hsan_BenAhmed
2
TRADING - TRUTH VS LIE 📉📈 A financial background can be useful for understanding how forex and other markets work. However, more beneficial are skills in math, engineering and hard sciences, which better prepare traders for analyzing and acting on economic factors and chart patterns. It doesn’t matter how much awareness you have about financial markets – if you can’t process new data quickly, methodically and in a focused manner, those same markets you thought you knew so well can eat you alive. ANSWER: LIE EXPERT TIP: To prepare for trading, focus on developing analytical skills rather than boning up on financial knowledge. Trading is like running a business. In order to be successful, you need to learn from mistakes and have rules in place to help protect your capital. Like a business, it’s crucial to have appropriate strategies on hand for varying market conditions. Setting up a business is easy, and similarly, trading is easy too. Developing successful strategies and making money? That’s the hard part. ANSWER: TRUTH EXPERT TIP: It will seem easy if your early trades go well, but long-term profitability is a different matter altogether. Make your life easier by researching your trades, using the right position size, setting stops and keeping a handle on your emotions. Can you be successful with a small trading account? It depends on your definition of successful. An account needs to be large enough to accommodate proper risk parameters. But success is relative; a high rate of return is based on percentages and not on monetary amounts. For example, a 20% return is a 20% return regardless of the account size. However, if your 20% return isn’t worth enough in hard cash, it might be hard to incentivize yourself to improve as a trader. ANSWER: IT DEPENDS EXPERT TIP: Your account size will depend on your goals and your prior success. Naturally, experienced traders will have a larger account but to begin with, concentrate on that rate of return percentage. Bragging rights be damned: the number of trades you win is irrelevant. Profitable traders simply make more money than they lose. Say you win five trades and make $5,000, but lose one trade and lose $6,000 – you have won more trades than you have lost but are still down overall. Profitable traders will set rigid risk-reward parameters for a trade – for example they might risk $500 to make $1,000, a risk-reward ratio of 1:2. If a trader makes five trades using this method, loses three of them and wins two of them, the trader is still $500 in profit ($2,000 profit-$1,500 loss). Don’t be afraid of taking a few hits: if your process is sound, one big winning trade can reverse your fortunes. ANSWER: LIE EXPERT TIP: Many successful traders will be losing more trades than they win, but oftentimes it won’t bother them. Focus on getting the right setups rather than worrying about the ones that got away. How much time you spend trading, and monitoring trades, will depend on your trading style. Those employing a scalping strategy, for instance, will make a large number of transactions per day, entering and exiting many positions, and will need to pay close attention to their trades on the shortest timeframes. However, position traders won’t need to spend as much time monitoring, as their transactions may last weeks, months or even longer – meaning long-term analysis will account for short-term fluctuations. ANSWER: IT DEPENDS EXPERT TIP: Ask yourself what type of trader you are. Shorter timeframes will mean monitoring and analyzing constantly – being ‘always on’. If you favor a more relaxed approach you may be suited better for position trading. Some traders advocate a ‘mental stop loss’ when the market gets tough – that is, relying on oneself rather than a computer to set a level at which to exit a losing position. The problem is, a ‘mental stop loss’ is just a number that makes you worried about the money you’re losing. You may fret about the direction of the market - but you won’t necessarily be compelled to exit your trade. A fixed forex stop loss is completely different – if your stop loss price trades you are out of the position, no ifs or buts. Exercising proper money and risk management means setting solid stops. Period. Answer: TRUTH EXPERT TIP: It can be so easy to neglect your stop loss. When a trade is going your way, the dollar signs can blind you - but you should protect yourself against the market turning. Spreads may represent the primary cost of trading, but they aren’t the be-all-end-all when it comes to choosing your market. You may find an asset that has a wide spread but represents a strong opportunity due to its volatility. Similarly, you may find an asset with high liquidity and a tight spread, but that isn’t showing much trading potential. Above all, you should let your trading decisions be governed by setups presented by the market, not the size of the spread. Answer: LIE EXPERT TIP: The spread can represent a significant cost to traders – but don’t let it be the sole factor dictating your choice of asset. The economic analysis key to a fundamental approach helps give traders a broader view of the market. Sound knowledge of the underlying forces of the economy, industries and even individual companies can enable a trader to forecast future prices and developments. This is different to technical analysis, which helps to identify key price levels and historical patterns, and provides conviction for entering/exiting a trade. It’s true to say that expertise in economic analysis is important. However, so too is expertise in the technicals. Many successful traders will look to combine fundamental and technical analysis so as to be in a position to draw on as wide a range of data as possible. Answer: TRUTH EXPERT TIP: It may be worthwhile to devise a strategy accounting for the nuances of both technical and fundamental analysis. News can create big moves in the market, but that doesn’t mean trading the news leads to the biggest opportunities. For a start, the volatility of important news events often makes spreads wider, in turn increasing trading costs and hitting your bottom line. Slippage, or when you get filled at a different price than you intended, can also hit your profitability in volatile markets. On top of these drawbacks, traders could get locked out, making them helpless to correct a trade that moves against them. ANSWER: LIE EXPERT TIP: ‘Trading the news’ can seem like a fashionable thing to do, but market movements can be unpredictable at the time of major releases. It’s often best to steer clear during such high volatility. Excluding emotions from trading is an impossible endeavor. It can lead to more internal conflict than benefits, which is why managing emotions is a better way of looking at it. You have negative emotions like fear and greed that need to be managed without suppressing positive ones like conviction that help drive you towards the best opportunities. Answer: TRUTH EXPERT TIP: Even the most experienced traders feel emotion in the heat of the markets, but how they harness that emotion makes all the difference. Source: DailyFX
OANDA:XAUUSDEducation
by Hsan_BenAhmed
2
The path to becoming a good trader When a beginner learns to trade, they progress through stages as they develop their mindset. The most commonly used learning model for trading is an adaptation of the 3 stages of competence model. 1. Unprofitable trader This is the first stage that a trader goes through and they do not know that they have a lack of knowledge. In this stage, beginner traders will take their first few steps by downloading a platform, opening an account and begin to place trades. However, they are influenced by emotion – usually lured by the thought of making a great deal of money in a short period of time. Either one of two things are likely to happen for traders in this stage: The trades turns against the trader immediately. They simply lack the experience to deal with the market environment. New traders take large risks without a basic knowledge of risk management and they wipe out all previous profits and more. 2. Boom and bust trader Boom and bust traders will realise that successful trading comes down to the psychology of the trader and their approach to the markets. A basic understanding that you will never be able to predict what will happen in the markets, starts to form. You begin to realise that making money is based on a series of trades that incorporate winners and losers, and that it takes discipline to stick to a system, cut losses short and let profits run. A trader in this stage will begin to enter and exit the markets whenever their system tells them to, without judgement and despite the emotion they are feeling. 3. Profitable trader A trader is said to have reached the stage of unconscious competence once they have traded with so much practice that they are able to trade in an almost automatic mindset. A disciplined approach requires very little effort and has become second nature. At what stage are you at the moment?
OANDA:XAUUSDEducation
by UnitedSignals
7
How to Blow Your Account | Step-By-Step Guide 💰 to 🪙 Hey traders, In this article, we will discuss the set of actions, habits and beliefs that will blow your account. 1. Trades are based on emotional decisions Behind each trading position must be a reason. The entry reason of a professional trader is based on a very strict and objective conditions, while an unprofitable trader follows emotions and intuition. 2. Stop loss placement is for losers A lot of traders consistently neglect placing a stop loss. Remember, just one single trade without that may blow your entire account. 3. Set unrealistic goals There is a common misconception concerning trading: that the equity size is not proportional to potential gains. Such a reasoning leads to various false conclusions. One who is trading with 100$ account and expecting to buy lambo, will inevitably blow the account. 4. No time for trade journaling Why to even bother yourself with trade journaling?! It is just waste of time. Remember, that trading journal is one of that best tools for learning. Constantly assessing your past decisions, you identify the flaws of your strategy and fix that, increasing your future gains. 5. Trading plan is for fools I know a lot of traders who trade without a plan. Remember, that the trading plan is your roadmap. Without that, it is impossible to become a consistently profitable trader. 6. Blindly following other's view While you are learning how to trade, your task is to learn the reasoning behind the trades of the pro's in the industry. Following them without reflections, you are not learning and, moreover, you are becoming dependent. Losing, you put the responsibility on their shoulders instead of yours. Such an approach will lead you to failure. Learn to become responsible in your trading decisions and execute your own analysis before you follow any other trader. 7. Who needs economic data As we discussed many times, fundamentals are the driver of the market. Neglecting the trends and global situation, not studying the news, you will unavoidably be fooled by the market. 8. Indicators are the magic pill I know a lot of traders, who spend thousands of dollars looking for a magic indicator - the instrument that will make tons of money. The fact is that indicators are just a tool in your toolbox. Its goal is to provide some minor additional clues to your analysis. Overestimating the importance of indicators, you will most likely blow your account. 9. Not investing in education Many traders are spending their money not on education but on fancy tools, signal services, robots and indicators. However, the fact is that only knowledge gives freedom, only skills can make you independent. 10. Back testing is pointless Trying different strategies, many traders intentionally skip the back testing part. Remember, that back testing is the most proven way to verify the efficiency of a strategy, allowing you to save time and money simultaneously. 11. Paper trading does not make any sense Same thing with paper trading. For some reason, the majority of the traders skip demo trading, quickly opening a real account. However, the fact is that demo trading is the best, risk-free tool for learning how the market works. Unfortunately, these 11 fallacies and misconceptions are very common. Analyze your trading and make sure that you are not making these classic mistakes. What would you add in that list? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
55
WHAT ARE GAPS? TRIGGERS AND TIPS TO SPOT & TRADE THEM Gaps are important parts of the financial market, especially in stocks and currencies. They happen when an asset opens at a significantly lower or higher price than where it closed at. Gap is a situation where a currency or any other asset opens sharply lower or higher than where it closed the previous day. Such a gap happens when there is a major event or news when the markets are closed. It usually represents an area where there is no trading taking place. There are three main scenarios that happen after a gap in the market forms. First, an asset price can continue moving in the direction of the gap. For example, when a bullish gap forms, an asset’s price can continue with that trend. Second, a gap can be filled within a few days or months. Finally, a gap can be followed by a long period of consolidation as traders focus on the next major moves. In all these, it is always good to focus on the asset’s volume. The most common strategy of gap trading is when you decide to enter a trade in the opposite direction of the gap. In this case, you will be betting that the asset will reverse after forming a gap. Ideally, one way of doing this is to check the trends of volume after the gap happens. Still, the risk of doing this is that the asset will either consolidate or resume the gap trend.
OANDA:XAUUSDEducation
by UnitedSignals
4
Learn Paralysis By Analysis | Trading Psychology Hey traders, In this article, we will discuss a very important term in trading psychology - paralysis by analysis. Paralysis by analysis occurs when the trader is overwhelmed by a complexity of the data that he is working with. Most of the time, it happens when one is relying on wide spectra of non correlated metrics. That can be various trading indicators, different news outlets and analytical articles and multiple technical tools. Relying on such a mixed basket, one will inevitably be stuck with the contradictory data. For example, the technical indicators may show very bearish clues while the fundamental data is very bullish. Or it can be even worse, when the traders have dozens of indicators on his chart and half of them dictates to open a long position, while another half dictates to sell. As a result, the one becomes paralyzed, not being able to make a decision. Moreover, each attempt to comprehend the data leads to deeper and deeper overthinking, driving into a vicious circle. The paralysis breeds the inaction that necessarily means the missed trading opportunities and profits. How to deal with that? The best option is to limit the number of data sources used for a decision-making. The rule here is simple - the fewer indicators you use, the easier it is to make a decision. There is a common fallacy among traders, that complexity breeds the profit. With so many years of trading, I realized, however, that the opposite is true... Keep the things simple, and you will be impressed how accurate your predictions will become. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
16
Mastering and Understanding Candlesticks Patterns An overview of Candlesticks A candle represents the changes in price over an interval of time, such as 1 day or 1 minute. The main body of the candle illustrates the opening price at the start of the time interval and the price when the market closed at the end of the interval. The length of the shadows shows how much the price has moved up and down with respect to a candlestick within a specific duration. The candlestick body describes the difference between the opening and closing prices for the corresponding time period. THe market is a battleftield between buyers and sellers. If one side is stronger than the other, the financial markets will see the following trends emerging: If there are more buyers than sellers, or more buying interest than selling interest, the buyers do not have anyone they can buy from. The prices then increase until the price becomes so high that the sellers once again find it attractive to get involved. At the same time, the price is eventually too high for the buyers to keep buying. However, if there are more sellers than buyers, prices will fall until a balance is restored and more buyers enter the market. The greater the imbalance between these two market players, the faster the movement of the market in one direction. However, if there is only a slight overhang, prices tend to change more slowly. When the buying and selling interests are in equilibrium, there is no reason for the price to change. Both parties are satisfied with the current price and there is a market balance. Analysis aims at comparing the strength ratio of the two sides to evaluate which market players are stronger and in which direction the price is, therefore, more likely to move.
OANDA:XAUUSDEducation
by TopTradingSignals
12