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Trading Psychology

Trade 3 Steps (Step #2 Enter Order)Entry orders are a valuable tool in Forex trading. Traders can have a great trading plan, but if they can’t execute that plan effectively, all their hard work might as well be thrown out the window. This is where setting up Forex entry orders comes into play. Entry orders allow traders to set price that they would like to buy or sell a currency ahead of time. Only be executed if that specific price is hit. There are several benefits to trading Forex using entry orders. WHAT IS AN ENTRY ORDER IN FOREX TRADING? A Forex entry order is an order that is placed at a specified price level for a currency pair. Once this price is reached, the order is then executed/filled. If the price never reaches the desired price level, the order will not execute. The type of order can vary as well, which should be taken into consideration prior to placing the Forex order. TOP 5 BENEFITS OF USING FOREX ENTRY ORDERS 1. Price Control- The first benefit of entry orders is the control they provide over price level. Traders can indicate their desired price level entry point at which the trade will execute. Having this ability to designate a level allows for ease of trading without having to constantly monitor the market. 2. Entry Orders Save Time-Forex entry orders are very useful for saving time. By setting one, traders do not need to be at a computer when a trend line is hit or when price breaks out of its price channel. Traders can very easily add an entry order to get in the trade if price behaves in the way he/she thinks it will. The order does the waiting and allows traders to focus on other things. 3. Better Money Management- Forex entry orders help to save money. To understand this better, consider how much time traders dedicate to trading each day. 4. Accountability-Forex entry orders (with stops and limits attached) also help keep traders accountable. This is because they eliminate the possibility of emotions getting in the way of reliable, profitable trades, and make sure traders are following the rules to the latter. 5. Support Trading on a Time Frame-Trading on a custom time frame can allow for more specified trades that could be in line with upcoming market news, political events or company results depending on what market is being traded. Traders can stipulate the expiry period for the entry order:
Education
by Anbat
Trade 3 Steps (Step #1 Stop-Loss Order)“Always use stop-loss orders.” -W.D. Gann, legendary investor/trader What is Stop Loss in Forex? Stop loss in Forex is a great way to minimize the amount of money you lose through trading. It is an exit plan in the event of a losing trade. Essentially, stop loss is a limit you set to minimize your risk that automatically exits you out of a trade if your currency pair dips below a level that is losing you money. Stop loss is a valuable mechanism that Forex traders must use if they want to make a living from Forex Trading. It is especially essential for beginner and inexperienced Forex traders who aren’t able to always make the best trade choices. Stop loss, while important for beginners, is also used by experienced traders. There’s no downside to protecting your trades- unexpected fluctuations of currency prices happens all the time, and it’s wise to safeguard your investing when you can. Stop loss also allows you to make trades and walk away from the computer for a while, instead of having to watch the currencies change. It also worth mentioning that stop loss can work against you. * I let the trade breath with stop loss but still look for 1:5 or higher risk reward setups. Let’s say your stop-loss is hit and you are automatically backed out of a trade, and after you’re exited from the trade the currency pair swings back other way exponentially? Not only did you just lose money on the trade, you missed out on a potentially big profit. This is why some Forex traders might have a disdain for stop loss since they view it as missing out on opportunities for major swings in a currency pair. While it depends on who you talk to, the majority of Forex traders will advise you to use stop loss, especially for beginners. It’s necessary to know about stop loss orders and how to calculate the proper limit to set it at. Figure out your stop-loss strategy and keep to it- it will save you in the long run. Nailing down a proper stop loss strategy before you start trading is one of the best ways you can ensure yourself from the always-changing Forex market.Choosing best stop loss strategy depends on your experience, skill level, bankroll, etc. There are so many different factors that will impact what the best stop loss strategy will be for you. As with everything in Forex, it’s best to educate yourself on Forex trading strategies to eventually get to the point where you’re making a consistent income through online trading.
Education
by Anbat
Don't Miss the Stock Market Boom By Fearing the Crash.It is absolutely normal to worry about the next stock market crash. You probably have a portion of your life savings wrapped up in your retirement fund, which is tied to the success of the stock market. Should You Fear The Next Crash? Except for the perma-bears out there, no one loves a stock market crash. But the fact is Governments, Central Banks and Economists are getting better at responding to existential financial disasters. The recovery from the Corona crash has been nothing short of impressive. This crash was the most violent and volatile of all crashes, yet has been handled very well. It had the potential to be as big as 2000 and 2008, yet the response curbed the brunt of the disaster. How Long Until Stock Markets Recover From A Crash? If we analyze the 6 major US stock market crashes of the last 100 years, we see that the average peak loss was 57%. Also, the average duration of the recovery is 9.8 years. This can be somewhat misleading, though. The 1929 crash was exceptional in its size and duration. Additionally, governments and central banks have realized that they can manage inflation and stimulate the economy to speed economic and stock market crash recovery. Over the last 20 years, we have had 3 major crashes, with an average loss of 62%, but with an average recovery time of 7 years. the last 2 crashes lasted only 5 years and under 1 year. The History Of Crashes Year Loss Years Recovery 1929 -89% 23 1973 -46% 10 1987 -35% 2 2000 -83% 16 2008 -54% 5 2020 -38% 1 Average -57% 9.8 Will There Be Another Crash? Yes, there will be another crash, probably due to a needed correction of the current boom we are in. What Will Cause the Next Crash? Historically speaking, my analysis shows that the most common causes of crashes are: - Equity Bubbles (1929,1987,2000) - Easy Access to Credit (1929,1987,2000) - Poor Institutional Risk Management (1929,1987,2000,2008) - Asset Bubbles (2008) Right now we are experiencing an Equity Bubble, Asset Bubble (Property), and Easy Access to Credit. The Crypto Bubble is also a major risk. When Will Be the Next Crash? My in-depth business cycle analysis indicates a high probability of a correction in 2022. This also coincides with potential increases in interest rates to begin cooling off the current boom. Don't Be Crippled By Fear. The markets are booming, now is not the time to be crippled by fear. If you miss out on these gains in the good times, what do you have to look forward to in the bad times? Crashes do not happen overnight, they usually take 2 to 3 years to fully hit bottom, so you will have time to react. Just enjoy the ride for now.
TVC:DJIEducation
by liberatedstocktrader
8
Continuation & Reversal Correction in price action structures In-depth look at Continuation & Reversal Correction in price action structures/patterns Hi everyone: Today I want to revisit the fundamental aspect of trading impulsive and corrective phases in Price Action Analysis. As you all know I focus on multi-time frame analysis and forecasting/anticipating the next impulsive move in the market. To me, the most important part of identifying the next impulsive phase of the market, is to understand how correction works. An impulse phase usually happens after a correction has finished correcting, so the key is to identify and understand how a corrections structure will complete so we anticipate the next impulsive move. You may have seen my videos on this topic, but today I will go more in detail on this, and explain the 2 types of correctional structure the market can create. The market can only be in 2 phases, impulsive phrase or corrective phrase. In addition, the corrective phrase can only be continuation, or reversal. So to fully have an edge in the market, is to understand what the correctional structure the price is currently making, whether a continuation/reversal, then forecast the possible price outlook, and go down to the lower time frames for possible entries. Now, it's important to understand that different traders/strategies/styles will call these patterns/structures in varies names. What they are called or identify isn't important, but the important aspect is to understand whether they are continuation, or they are reversal. In addition, simply seeing price action structures/patterns by itself, is not a good enough entry criteria for me. You want to combine multi- time frame analysis, top-down approach, and with multiples of these price actions all happening so it adds extra confluence for you to enter a particular trade. Seeing a H and S pattern, on a 5 minute chart, without considering the overall HTF and other factors, will not be a consistent move in the long run. Continuation Correctional Structure/Pattern Bullish/Bearish Flag Bullish/Bearish Pennant Parallel Channel Reversal Correctional Structure/Pattern Ascending/Descending Channel Rising/Falling Wedge Double Top/Bottom Head & Shoulder Pattern/Inverse H and S “M” and “W” style pattern Reversal Impulse Price Action I will forward all the price action structures/patterns videos I have made in the past to help you understand each of the structures more. Impulse VS Correction Multi-time frame analysis Identify a correction for the next impulse move in price action analysis Continuation Bull/Bear Flag Parallel Channel (Horizontal, Ascending, Descending) Reversal Ascending/Descending Channel Reversal Double Top/Bottom Reversal Head & Shoulder Pattern Reversal “M” and “W” style pattern Reversal Impulse Price Action Continuation/Reversal Expanding Structure/Pattern Any questions, comments or feedback please let me know. :) Thank you Jojo
Education
by jojofang0901
40
How to manage & deal with consecutive losses in trading ? Trading Psychology: How to manage & deal with losses/consecutive losses in trading ? Hi everyone: Today I want to go over a very key trading psychology lesson on how to deal with losses, especially consecutive losses. This is bound to happen to any traders, whether you are new or experienced. ITs something all professional traders will have to deal with on a regular basis. Understand that, dealing with losses psychologically is the key factor in the success of a trader. This is because losses are inevitable, and trading is a probability, which trades that you take will end up both in wins and losses. However, traders usually can not accept losses, due to their ego, greed and other emotional factors. Aside from having a good risk management, trading plan, and trading strategies, traders can still experience the psychological emotions of losing. This is due to the fact that we are humans and we are an “emotional” animal. We don't want to be wrong, at all. Taking a loss is like getting slapped in the face by the market, which we have egos to fight against. What ends up after taking losses or consecutive losses, it puts traders at a disadvantage where their emotion is high, and likely to “revenage” trade to chase back losses, which end up in a deeper hole. To deal with such psychological phenomena, take a step back and observe your situation: First, did you follow your trading plan/strategy on how to enter, set SL/TP, and management ? Second, did you take an emotional trade due to greed or fear of missing out ? Third, have you journal down your losses and review them to make sure they are trades you really want to risk your capitals on ? By now you will see why we need to review these. Trading is a probability, not right or wrong. It's a random variable that you are putting your $ at risk. So if you understand the rules and plans that you follow and execute a trade accordingly, then there should NOT be any negative emotions towards the outcome of the trades, whether they are winners or losers. When I discuss the trades I entered every week in my trade recaps videos, I am always happy to enter a position, even if it goes to a loss. This is because I have done enough backtesting, chart work, and plan to enter a position. I understand strictly from a probability point of view, I could have a higher strike rate, and more often the trades will end up as a winner rather than a loser. However, I also understand and acknowledge that some trades will end up in a loss, disregard mine technical analysis or other’s fundamental analysis. It is what trading is all about. When I have consecutive losses, I will always review the 3 points I mentioned above and make sure they are all valid for me. Then I simply will take 1 day off from the market, chart, phone, and just get your mind clear. Come back strong after 1-2 days of rest, and have a positive mindset. What traders often do when they have consecutive losses is to right away re-enter back into the market and try to chase back their losses. This has always been the downfall of losing and it creates anxiety in traders’ minds. Such a negative experience is going to stay in the traders’ mind longer and deeper, compared to consecutive winners. So wise we understand that is the case how our brain is "programmed” into thinking, then it's up to us to do the opposite, and fight the urge to “revenge” our losses. At the end of the day, no one is trading your trading account, except yourself. Taking ownership of your account, learning to control our emotions, understanding the probability side of trading, and learning to let go, drop our ego will help us in the long run in this industry. I hope these pointers can help some traders who are still struggling with this concept. It's impossible not to take losses, but professional traders deal with it on a regular basis and still remain consistent in the long run. Thank you I will forward some Trading Psychology educational videos below on some of the topics explained today. Trading Psychology: Revenge Trading Trading Psychology: Fear Of Missing Out Trading Psychology: Over Leveraged Trading Trading Psychology: Is there Stop Loss Hunting in Trading ? How to deal with it ?
BITSTAMP:BTCUSDEducation
by jojofang0901
58
PSYCHOLOGY OF A TRADER | MASTER EMOTIONS & MASTER THE MARKET The market is driven by people. The crowds are always behind strong market rallies. What the majority fails to recognize is the fact, that being chaotics in its nature, the markets are always trading in predictable patterns. Believe it or now, but the market participants are driven by the same emotional impulses. It does not really depend on how wealthy is the person. With the core motive being to make a ton of money with a little risk possible, we can derive a universal archetype. Every asset, every financial instrument has an element of a "potential value". Being 100% subjective, an attempt to calculate the future value drives the market. Depending on the current expectation of the crowd and its emotions it is necessary for a professional trader to learn to play with its behavior. With many years of constant observations, the cyclic psychological curve was derived to explain the relationships between our emotions and market cycles. On the chart, I have drawn 9 main stages of trader's psychology: 😶INDIFFERENCE - No opportunities are spotted, searching for the right pick. 🙂OPTIMISM – Positive outlook leading us to buy a certain asset 😃EXCITEMENT – Being initially right in our pick, we feel excited as bulls push the market to the new highs The moment of happiness and feeling of being "a true investor" 🤑GREED – Being thrilled we start to ignore warning signs and add more and more cash to the market believing that the market will never stop. 😕ANXIETY – The market starts taking our gains back. Being biased and nihilistic we keep holding the position, thinking that it is just a pullback. 😩PANIC – Tremor. We are frozen. Emotions are draining our power. We are clueless and helpless. We totally lose the sense of control. 😭DEPRESSION – Position is closed. Money is lost. Considering trading & investment industry to be a scam. 🤔HOPE – The dawn. The market returns back to its normal state. Aspiration & desire to start again. 😆RELIEF – Again we start to believe in our strength. We return and the cycle repeats. Do you recognize yourself in these stages? Please, support our work with like and comment. It really helps.
OANDA:XAUUSDEducation
by UnitedSignals
29
PSYCHOLOGY OF A TRADER | MASTER EMOTIONS & MASTER THE MARKET The market is driven by people. The crowds are always behind strong market rallies. What the majority fails to recognize is the fact, that being chaotics in its nature, the markets are always trading in predictable patterns . Believe it or now, but the market participants are driven by the same emotional impulses . It does not really depend on how wealthy is the person. With the core motive being to make a ton of money with a little risk possible, we can derive a universal archetype . Every asset, every financial instrument has an element of a "potential value" . Being 100% subjective, an attempt to calculate the future value drives the market. Depending on the current expectation of the crowd and its emotions it is necessary for a professional trader to learn to play with its behavior. With many years of constant observations, the cyclic psychological curve was derived to explain the relationships between our emotions and market cycles. On the chart, I have drawn 9 main stages of trader's psychology: 😶 INDIFFERENCE - No opportunities are spotted, searching for the right pick. 🙂 OPTIMISM – Positive outlook leading us to buy a certain asset 😃 EXCITEMENT – Being initially right in our pick, we feel excited as bulls push the market to the new highs The moment of happiness and feeling of being "a true investor" 🤑 GREED – Being thrilled we start to ignore warning signs and add more and more cash to the market believing that the market will never stop. 😕 ANXIETY – The market starts taking our gains back. Being biased and nihilistic we keep holding the position, thinking that it is just a pullback. 😩 PANIC – Tremor. We are frozen. Emotions are draining our power. We are clueless and helpless. We totally lose the sense of control. 😭 DEPRESSION – Position is closed. Money is lost. Considering trading & investment industry to be a scam. 🤔 HOPE – The dawn. The market returns back to its normal state. Aspiration & desire to start again. 😆 RELIEF – Again we start to believe in our strength. We return and the cycle repeats. Do you recognize yourself in these stages? Please, support our work with like and comment. It really helps.
OANDA:XAUUSDEducation
by UnitedSignals
26
TOXIC TRADERS ☠️📌 Both optimism and pessimism is the worst thing to happen to a trader. ⚠️ Please do not believe in a chart or have a faith for that... 📍 Being realistic and trade based on reasonable facts is the best way of trading. Always make decision based on facts and DO NOT TRUST YOUR HEART NOT EVEN ONCE. ⚠️ Set your risk by considering your character; are you willing enough to take risks as dangerous as completely losing all your money? ⚠️ As I wanna mention it again: NEVER BELIEVE IN CHART. Just see it as a potential oppurtunity. 📍 Trading is a game of numbers, mathemtics, algorithms, cycles, supply and demand, economics, etc. One of the most strict majors in the human history. ⚠️ Do not include your emotions and or you belief or faith in this game. This is not a financial advice, I just am willing to share my own experiece with you guys With y'all a very happy and profitable lifestyle
NASDAQ:AAPLEducation
by C_EWAVE13
5
It always works the same way...Human-sheep hybrids psychology. No matter where I look I see the same flaws manifest in different ways A quote By 1998, Yahoo was the beneficiary of a de facto Ponzi scheme. Investors were excited about the Internet. One reason they were excited was Yahoo's revenue growth. So they invested in new Internet startups. The startups then used the money to buy ads on Yahoo to get traffic. Which caused yet more revenue growth for Yahoo, and further convinced investors the Internet was worth investing in. When I realized this one day, sitting in my cubicle, I jumped up like Archimedes in his bathtub, except instead of "Eureka!" I was shouting "Sell!" The majority just ends up becoming bagholders one way or another. Here are comments on the housing bubble from 2006 " Since the early seventies, our economic expansions have really been credit bubbles in disguise, and they have been paid for by inflating the money supply. The net result each time has been a reduction in the middle class standard of living. In the sixties, the family could easily make due on one income; do the math today…dual incomes aren’t enough now. " thehousingbubbleblog.com The lucky investors are the ones whose invetment falls like a rock and goes all the way to zero because they panic sell. The unlucky one are the ones for who the price slowly falls and keeps giving them copium. Virtually no one manages to make money trading, but they all manage to reach their primary goal which is to feel like a trader. Technically humans are less able to adapt to gradual change than frogs, so the expression boiling frog is not that accurate. Humans are huge bagholders with herd mentality. Some are bigger bagholders and more easilly enslaves. Funny how it's impossible to find any useful tangible info on the subject on the internet you just get drowned in a sea of ideology propaganda. The Milgram's experiments on obedience to authority are also interesting to read about. The vast majority complied with it, and even 65% went all the way to the final 450 volt death sentence. What's great about the Milgram's experiences is they were used to criticize the holocaust (for stupid people that want to report me: I'm obviously not saying criticizing it is a bad thing), and they fall in line with the western ideology, so we can find plenty on the subject and read about it. That's their greatest quality: we can actually freely read about them. You can't read (In Germany and France at least) anti LGBT research, articles, stats. That is illegal and incitation to hatred. Spitting on a religion and printing drawings of the prophet sodomizing a sheep, which directly incites to hatred both in the arab world and in the west where people's head are cut off, is legally NOT incitation to hatred . I'm just saying... You're in China you won't read about Tiananmen Square. The west used writtings and research by Gustave Le Bon and other guys I forgot the names of, that did a great job on herd mentality, propaganda, compliance, etc, and good luck finding much about it... Anyone that talks about it won't go to jail but will be a "crazy conspiracy theorist" and the herd believes it (they literally use the tactics they are accused of to silence critics it's hilarous). With herd mentality did you know you could move a guided robot that looks like a sheep and the whole herd will come running? It is also possible to use this to remote control fish in an aquarium? It is very fun. It works the same way from humans but slighlty harder or more subtle. For example the vast majority in urban areas will walk by someone dying on the ground, but if 1 person stops to help then the crowd stops too. For example in a crowded area if people see 2-3 people run for their lives the whole crowd will follow, in that case the crowd might have to even the non-sheep. In open concerts you start with a few weirdoes dancing and once the trend starts the crowd quickly dances and befor you know it the people not dancing are the weirdoes. Bitcoin investors were considered idiots by "normies" or sheeple if you prefer, and somewhere between 2012 and 2017 investing in BTC became the norm and the skeptics are the idiots. These herd trends look like the growth of a bacteria population (or viral pandemic), also appear in markets, but this is a story for another time.
Education
by MrRenev
2
Risk Management in Price Action TradingRisk Management in Price Action Trading Risk management in price action trading is much like risk management in any other style of trading; the same basic rules apply: 1. Know your maximum risk tolerance, i.e. the loss you are willing to take on each trade, before you place the trade. A common rule is that traders will not put more than 2% of their funds in the market at a time. 2. Understand correlation between assets, and to what extent you would like to be diversified. 3. Know when you will exit before you enter. 4. Know your reward/risk ratio. 5. Identify what you expect to happen and why, and what price point negates that expectation. This is the price point at which you should put your stop. Of course, with risk management, techniques are important, but, ultimately, it is up to the trader to ensure they are psychologically prepared for all that is involved. Even if a trader is using a fully automated system, he/she must still have confidence in the system, and must know when any losing streak experienced is just a temporary losing streak versus a more fundamental problem suggesting the system is no longer valid. In terms of actual techniques, there are a few concepts traders can bear in mind: 1. Enter at support/resistance levels, or levels that suggest turning points in the market 2. Put your stop loss between such levels, or at points where there is no real signs of a force that will cause a change of direction in the market. Basically, traders want to enter at turning points. Levels between turning points, “empty zones,” of sorts, are where stops can be put as they are where ideas are often disproved. For example, if you entered a trade at a support level expecting price to rally, you could place your stop at a level sufficiently below the support level you entered at, provided it was not a support level as well.
Education
by Anbat
The Lack of Knowledge in Forex - How to succeed in this businessThere is a big lack of knowledge in this forex industry. Retail Trader always forget that we are in the Champion League here and that we need to have a lot of knowledge in order to succeed. Key Elements are - Trading Plan - Strategy - Money and Risk Management Predicting the right direction of the forex pairs is not to 100% possible and not even necessary. The key is to understand how to react to the new changes within the market. It is like in life. Hopefully I could help you with this video. Tell me your feedback What do you think?
Education
by DariusFxTrading
4
Quotes of a winning traderHi everybody! today we gonna focus on what is the mindset of a winning trader. what does he think and what differentiates him from a looser based on his way of thinking. We gonna check a non-exhaustive list of several quotes that may be interesting to know and remind. These quotes are all written on my notepad, I advice you to do the same: have a notepad with all the trading knowledge learn over the years. let's go ! 1)Trade what you see : its important to not have bias on trading, technical analysis allow you to have an idea of where the price may be heading and allow you to make a quick decision based on it. Your bias will only make you more confuse and may make you miss plenty of opportunities (as well as leading you to ruin). When you are going to analyse the market, dont forget to let your emotions behind you. 2)Plan your trade and trade your plan : as simple as it sounds. just draw a chart and trade it, if you dont have a plan you dont have rules and if you dont have rules you wont win money. 3)Trend is your friend + dont fight the FED : setups that follow the trend have more probabilities to be winners, therefore its better to favor bullish setups when trend is bullish and bearish setups when trend is bearish. Trend reversal setups are pleasing( a good ego booster) but keep it exceptional. also the "don't fight the fed" part correspond to stock market, when you know there is economical measures like Q.E just follow the movement. dont expect to be the top shorter, you'll need a lot of luck. 4)Trading is 80% psychology and 20% technical analysis : you surely listened to that one somewhere, its very famous. The winning trader have adquired strong rules of psychology and a solid mindset(they respect it) that brought them to become winners. these rules make them confident and peasible, they feel safe when working because they know odds are at their side as long they respect the rules. 5)Buy low and sell high : Buy low, sell high is a strategy where you buy stocks or securities at a low price and sell them at a higher price. This strategy can be difficult as prices reflect emotions and psychology and are difficult to predict. Traders, thus, use other tactics, such as moving averages, the business cycle, and consumer sentiment to help decide on when to buy and sell. 6)Cut your losses, let run the profit : The basic idea behind this particular saying is to encourage traders to get out of losing positions quickly, but have the patience to stay in winning trades and resist the tendency to sell winning positions early. Assuming the trader follows a sound trading strategy that has an edge over time, following this rule allows profits to accumulate over time, while drawdowns are kept at a minimum – resulting in a much more enjoyable trading experience. 7)Patience is key : One of the best cardinal rules and day trading advice is to be patient. Patience is key, during the day, there may be many opportunities. It is best to wait for the right opportunity pursuant to your specific rules and trading plan. Sometimes you won't make any trade at all, that's why it's not always easy being patient. Most of the time you will find yourself in profitable trades as long as your patient and vigilante. 8)Good trading habits + good trading plan + good trading rules : i think its clear, there is no need for more explnation to this one 9)Set and forget : is whereby you open a position with a pre-defined stop loss, take profit and entry location, and once the trade is activated, you let it go with no trade management. This means you let the trade run until it hits your take profit, or your stop loss. Hence the name ‘set and forget‘. you have an entry, an SL and a target so just let the price fluctuate, it'll give you a result at the end (loss or profit) there is no need to interact since you already have the parameters. 10)Trading is a game of probabilities : know your probabilities by heart. every winning trade know very well how to play with probabilities in order to achieve his goal of becoming successful. Thats all, I wish you the best. Have a nice week !
Education
by OrangeOptimist
6
📚 Leveraged & Margin Trading Guide + Examples ⚖️ Leveraged trading allows even small retail traders to make money trading different financial markets. With a borrowed capital from your broker, you can empower your trading positions. The broker gives you a multiplier x10, x50, x100 (or other) referring to the number of times your trading positions are enhanced. Brokers offer leverage at a cost based on the amount of borrowed funds you’re using and they charge you per each day that you maintain a leveraged position open. For example, let's take EURUSD pair. Let's buy Euro against the Dollar with the hope that the exchange rate will rise . Buying that on spot with 1.195 ask price and selling that on 1.23 price we can make a profit by selling the same amount of EURUSD back to the broker. With x50 leverage , our return will be 50 times scaled . With the leverage, we can benefit even on small price fluctuations not having a huge margin. ❗️Remember that leverage will also multiply the potential downside risk in case if the trade does not play out. In case of a bearish continuation on EURUSD, the leveraged loss will be paid from our margin to the broker. For that reason, it is so important to set a stop loss and calculate the risks before the trading position is opened. ❤️Please, support this idea with a like and comment!❤️
OANDA:XAUUSDEducation
by VasilyTrader
14
Order Types (How To Set Up)Order Types: Market Order- Placed at market price Limit Order- Entry or exit order placed above or below market Stop Order- Entry or exit order placed above or below market. Rules for Placing Forward Orders: above current price: BAS: Buy Above is a Stop Order SAL: Sell Above is a Limit Order below current price: BBL: Buy Below is a Limit Order SBS: Sell Below is a Stop Order *YOU need to know this prior to trading Forex- always use a entry, stop and target order when entering any new trades. Risk management.
Education
by Anbat
Fighting the need to be right in the marketsIn most industrial countries the educational system was created not to truly teach students, but to generate good workers for factories and other companies. Yes, we want these highly trained individuals to be able to think critically and generate new ideas. However, we want them to be excellent employees who follow the boss's instructions. So, how do we do that? We do it through our educational process where children learn that the teacher is always right. Children attend school for 12 to 16 years, and it is often reinforced that the instructor is always correct. For example, as a student, you are required to take tests. You learned that if you get fewer than 70% of the questions correct, you are a failure. "Why didn't you receive 100?" your father asks when you show it to him. So, your father expected you to be correct as well. As a result, we have a strong desire to be correct. If you don't get it correctly at least 70% of the time, you're labeled a failure. However, you want to be correct 100% of the time so that your father does not criticize you. As a result, you begin to criticize yourself first in order to solve the problem before your dad does. Let's take that and apply it to the stock market, futures market, or any other investment you could make. You want to be correct, and that to you means making money. Let's assume you buy a stock for $100 and know how to establish a stop loss: if it drops below $95 per share, you'll sell. Let's assume the price falls to $95 per share. You really want to be right, so you'd be wrong if you got out, or at least feel like you were. Your mind races with ideas such as, "It's simply a temporary setback." "Analysts expect a significant boost in earnings this quarter; I'm reluctant to sell at this time." "What if a few traders are manipulating the downturn?" So you hang onto the stock and watch it fall even further. It drops to $90. Now you have a 2R loss. If it was hard to take a 1R loss, it’s even harder to take a 2R loss. And all the same, arguments apply. Thus, you hold onto your stock. Now the stock drops to $85 and you have a 3R loss. You know you really should get out, but now your portfolio is down $4k and you can really write off $3k in losses, so you’d better keep this stock. You know it will turn around. Now you know why a psychologist and an economist won the Nobel Prize in economics for basically showing that it was very hard for people to take losses. People according to those Nobel prize winners become much more “tolerant of risk” when they are behind. The Nobel winners also showed that people tend to tolerate little risk when they are ahead, making it difficult to let profits run. People tolerate risk more when they are behind (i.e won’t cut their losses) and tolerate risk less when they are ahead (i.e they won’t let their profits run). So what can you do about your need to be right? Instead of focusing on being right, focus on not making any mistakes, whereas a mistake occurs when you don’t follow your rules. Your rules should be the golden rules of trading (previous article material). If you consider breaking these rules as being wrong (i.e., making a mistake), you’ll find that suddenly you can make money in the stock market or any other investment field. In short, you must think in terms of probabilities and statistics. As a result, you can pay attention to just following your system, and making as few mistakes as possible, because when you do that, you “know” what your results will be in the long run (knowing the expectancy of your system). Trade with care. If you like our content, please feel free to support our page with a like, comment & subscribe for future educational ideas and trading setups.
BINANCE:BTCUSDEducation
by financialflagship
30
Bitcoin SyndromeBitcoin Syndrome Also known as Obsessive Bitcoin Disorder By Dr. Pumpeet Upderr - New Journal of Rekt Medicine, 2023 According to the DSM-13, Bitcoin Syndrome (BS) is “a mental disorder characterized by continuous, obsessive, or intrusive thoughts about the price of Bitcoin.” Many BS sufferers obsess over the price of Bitcoin for the majority of their waking hours, causing disruptions like loss of focus, poor job performance, decreased motivation, relationship problems, and substance abuse disorders. Those with BS are known to check the price of Bitcoin up to 100 times per hour. Similar to those with gambling disorders, Bitcoin traders are known to consume alcohol and smoke cannabis to alleviate the symptoms of Bitcoin Syndrome. Some BS sufferers reported dreaming about Bitcoin price movements, most often during turbulent market conditions. We note the highest spike in reports of Bitcoin Syndrome immediately following a price increase or decline of 10 percent. The physiological effects of Bitcoin Syndrome are similar to anxiety, depression, and panic disorder: fear, uneasiness restlessness elevated heart rate irregular heartbeat (palpitations) muscle tension hyperventilation perspiration insomnia brain fog substance abuse (alcohol, cannabis, stimulants, psychedelics) intensely avoiding either Bitcoin bulls or bears who hold opposing views on the market Overall, our researchers noted four broad categories of secondary psychological affects developed by those investing, trading, or analyzing cryptocurrencies and blockchain tokens. Amongst our study participants, the worst BS symptoms were experienced by Group 1 and Group 2, while the least severe symptoms were observed in Group 4. Group 1 – The Icarus Newcoiners: New participants to the market who experience significant portfolio gains during a bull cycle. Icarus Bitcoiners are known for developing a sense of overconfidence that leads to reckless decision making and gambling behaviour. Common symptoms: narcissistic personality disorder gambling disorder substance abuse risky sexual behaviour Notable examples: Elon Musk, Michael Saylor, your Zoomer relative that won’t stop talking about Bitcoin at family events. Group 2 – The Late Buyers: Latecomers to the market who buy blockchain tokens near the top of the cycle and only experience portfolio declines, often leading to irrational villainization and scapegoating (Elon Musk followers that bought Dogecoin). Many in Group 2 develop sudden depressive disorder and a loss of personal confidence during market downturns. Common symptoms include: Depression Insomnia Anxiety Loss of focus Substance abuse Decline in sexual activity Notable examples: Kevin O’Leary, Marc Cuban, Elon Musk cultists Group 3: Non-participants: Also referred to by the Bitcoin community as “Nocoiners,” these people follow Bitcoin price movements while holding casual contempt for participants who invest in blockchain technology. We were not able to collect sufficient data from the Nocoiners. Common symptoms include: Emotional outbursts Anger Antisocial behaviour towards those with opposing viewpoints Notable examples: Peter Brandt, Jamie Dimon, Donald Trump Group 4: OG-Crypto This group includes market participants who have experienced at least one complete markup phase (bull market) and one complete markdown phase (bear market). The experiences of our Group 4 participants varied wildly; the only commonality gleaned from our data was recreational cannabis use and a philosophically-driven “buy and hold” strategy. Common traits exhibited in Group 4 include: High testosterone Increased muscle mass Enlarged pen Notable examples: Andres Antonopoulos, Arthur Hayes, Charlie Lee Note: There is no known treatment available for Bitcoin Syndrome, but early experiments show promise from charting abstinence, regular exercise, and mindfulness meditation. If you know somebody suffering from Bitcoin Syndrome, contact your healthcare provider.
BITSTAMP:BTCUSDEducation
by bluedog360
4
Is swing trading more profitable than long-term investment?Look at the image below. Let me give you a small example. This is the real chart of the State Bank of India. I have coded swing trader in black and long-term investor in blue for your easy understanding. In the first scenario, both the swing trader and the long-term investor bought SBI at the same level. After a month the swing trader sold his holdings and made 60% on his capital of 1 lakh. Now he has 1 lakh 60 thousand. But the long-term investor didn’t sell. Again the prices of the stock went down and the swing trader got an opportunity to buy in dip. The swing trader sold his positions and made 36% this time. Now he has (1 lakh 60 thousand) + 36% that is 2 lakh 17 thousand. This time the long-term investor sold his holdings and made 64% total. He has now 1 lakh 64 thousand. Everybody trades the swings. Nobody buys in dip and sells in the dip. That is just foolishness. Some people trade the larger time frames and some people smaller time frames.
NSE:SBINEducation
by BarunMohanty
1
Add Tweets To Your ChartYou can now add tweets to your chart! The process is simple and we'll walk you through each step: Step 1 - Find a tweet you're interested in and copy its link. The Twitter link will look something like this: twitter.com Step 2 - Open your chart and then paste the tweet. The tweet will automatically attach to the exact timestamp on the chart. You can sit back and let our platform do the work for you. Pro tip: this tool works on any time frame or chart type. So you can view it on a daily chart or a 30-minute chart, a candlestick chart or a line chart. Step 3 - Once you've copied and pasted the tweet to your chart, you can drag it up or down to place it where you need it to go. Pro tip: adjust your price scale or time scale by clicking, holding, and dragging the scales to extend them. This will help you fit the tweet to your chart. The chart in the example above shows the market cap of Dogecoin with four tweets from Elon Musk. Each tweet was copied and pasted on the chart using the steps outlined in this post. It's fast, easy, and snaps right to the exact timeframe where price and tweet meet. We hope you enjoy this new tool. Please let us know if you have any questions or comments. Thanks for being a member of TradingView.
CRYPTOCAP:DOGEEducation
by TradingView
102
Long or Short Entry Checklist? Understanding The DifferencesHi Traders, today we'll be discussing about a topic regarding " Should you have a long or short entry checklist? - Advantages & Disadvantages ". Majority's always thinking about having a long checklist to ensure they stick to their trading plan. But do you know that being too picky to your setups aren't always the best thing to do? Sometimes less is more. Below are some of the pros' and cons' Long Checklist Advantages - Great filters - It allows you to identify high probability setups and filter out lower quality trades by having strict approach to the market - Systematic approach - Having a longer checklist systematize your trading approach. It eliminates some of your negative emotion by abiding to the checklist and ticking the boxes - Multiple confluences - A longer checklist allows you to strictly lines up multiple confirmation to each setup, which will improve your overall trading confidence Disadvantages - Delayed action - By adding more filters to each trade, it tightens your criteria to each setup, which might cause you to be late to some trades - Missing out & hesitation - As you're constantly waiting for more confirmation to your trade, it might negatively turn you into an overly conservative or fearful Trader. You're always hesitating to pull the trigger due to the over-complicated checklist - Overthink - Some of the setups or opportunity happens to be simple and impromptu, if you're imposing overly strict criteria to each position, you might end up losing some of the simple great runners Short checklist Advantages - Simplicity - Less is more, by simplifying your trading system, it allows you to have less opinion in the market which leads to better clarity - Increased opportunities - By loosen or eliminate some 'unnecessary criteria', it increases the amount of opportunities presenting to you as you're not looking for the perfect trade - Flexibility & Reactivity - This is one of the most important traits I find in most successful Traders. Being resilient and reactive to various market condition is crucial to your long-term trading success Disadvantages - Fear of Missing Out (FOMO) - Understanding the difference between simplifying your process (having an edge in the market) AND having no clue of what you are doing. FOMO usually appears when you are merely trading the market to make money (outcome-oriented), rather than having a fixed process to beat the market consistently - Revenge trading & Over-trading - Both these negative traits usually appear after FOMO, where your subconscious & conscious mind are out of control. You are chasing the market, your ego has taken over your brain, it's convincing you that whatever you're doing MUST be correct. When these signs appear, you must take a step and calm down your mind to prevent some self-sabotaging effect - Instinct-trading/ gambling - If you're a newer Trader, an overly simplify checklist might not work for you as what you need the most is the discipline to stick to your process. The major difference between a Trader and a Gambler is that Trader never hope and pray. If you're constantly enforcing your personal will and expectation into the market (hoping & praying), this is something you should reflect upon now. - Closing out trades early - If you do not have a systematic process, often your Caveman brain will cause you to close out your trades earlier (both winning & losing positions) due to uncertainty and fear. Your subconsciousness will always convince your to secure your profits as soon as possible, which is not the best thing to do in the long-term. Consistently profitable Traders cut their losers and ride their winners, by taking off your winners too soon you are ruining your own probability of success in this business. Comment down below what's your worst unrealistic expectations in the market! "A Trader looks for consistency, the Gambler looks for a quick profit." Trade safe as usual. Do follow my profile for daily fx forecast & educational content.
KRAKEN:BTCUSDEducation
by TraderNeoh
3