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Why every trader need money management?Almost every trader, at some point in their career, wonders if they need money management. The answer is a resounding yes! Having the proper business mindset is essential to success in trading. This includes having the right attitude, being disciplined, and knowing how to manage your emotions. Without these things, it is very difficult to be successful in the markets. In this article, we will discuss why every trader needs money management. We will talk about the importance of having the proper business mindset, and we will also discuss some of the key components of an effective money management plan. By the end of this article, you will have a better understanding of why money management is so important for traders, and you will be able to start implementing some of these concepts into your own trading strategy. Business mindset Trading is a difficult business. It requires long hours, dedication, and a lot of hard work. But even with all of that, most traders still fail. Why is that? The answer is simple: they don't have the proper mindset. In order to be a successful trader, it is important to have the proper mindset. This means having the right attitude, being disciplined, and knowing how to manage your emotions. If you can master these things, you will be well on your way to success in the markets. Attitude is everything in trading. You have to be positive and believe in yourself, even when things are tough. Discipline is also key. You need to be able to stick to your trading plan, even when you are losing money. And finally, you must be able to control your emotions. Fear and greed are two of the biggest enemies of traders, so you must learn how to control them. If you can develop the proper mindset, you will be well on your way to success in trading. So what are you waiting for? Start working on developing the right attitude today! Manage losses When trading, it is essential to have a well-defined money management plan in place. This plan should include setting stop-loss orders and taking profits at predetermined levels. By having a plan in place, you can help keep your emotions in check and make more informed decisions about when to enter and exit trades. Stop-loss orders are placed with a broker in order to limit losses on a trade. When the price of the security reaches the stop-loss price, the trade is automatically sold. This type of order can be very helpful in managing risk, as it takes the emotion out of the decision of when to sell. Taking profits at predetermined levels is also important in money management. By doing this, you can take some emotion out of the decision of when to sell and lock in profits. It is important to remember that no one knows where the market will go in the future, so it is important to take profits when they are available. It is also essential to have a risk management strategy in place. This strategy should define how much capital you are willing to risk on each trade. It is important to remember that even the best traders lose money on some trades, so it is important not to risk more than you are comfortable with losing. By having a well-defined money management plan, you can help keep your emotions in check and make more informed decisions about when to enter and exit trades. This can ultimately help you improve your overall success as a trader. Confidence and self-control Confidence is key for any successful trader. A clear understanding of the market and your personal trading strategy is essential to maintaining a level head and making sound decisions. Being mindful of your successes as well as your failures allows you to learn from your mistakes and build upon your strengths. Practicing in a simulated environment gives you the opportunity to become more comfortable with the decision-making process before putting real money on the line. Self-control is another important aspect of trading. Emotions such as fear and greed can cloud your judgement and lead to poor decision making if left unchecked. Having a plan in place and sticking to it can help you stay focused on your goals even when things get tough. Diversifying your portfolio is also crucial in managing risk and ensuring that you don't put all of your eggs in one basket. By developing confidence and self-control, traders can set themselves up for success. These qualities can help them make sound decisions, manage risk, and stay calm in the face of market volatility. Keeping emotions out of trading When it comes to trading, one of the most important things that you can do is keep your emotions in check. This can be difficult to do, but it is essential for success. One of the best ways to keep your emotions in check is to have a system or strategy in place that you stick to no matter what. This will help take the emotion out of the decision-making process. Additionally, it is important to know when to walk away from a trade. If you are feeling emotional about a trade, it is often best to just step away and take a break. It is also important to have the discipline to stick to your system or strategy even when it might not seem like the best thing to do in the moment. By keeping your emotions out of trading, you will be more likely to make sound decisions and be successful in the long run. Decision making Traders need to be aware of their goals if they want to be successful. This means having a clear understanding of the risks and rewards involved in each decision. It is also important to have a plan for how to execute each decision, as well as being prepared to accept the consequences of those decisions. Making sound decisions is crucial for traders. What are your goals? Are you looking to make a quick profit or build your portfolio over the long term? Once you know, you can develop a plan that takes into account the potential risks and rewards involved in each decision. For example, if you are looking to make a quick profit, you might be more willing to take on more risk. On the other hand, if you want to build your portfolio over the long term, you might be more conservative with your trades. It is also important for traders to identify when they are making an emotionally-based decision. Emotions can cloud our judgment and lead us to make poor decisions. If you find yourself getting emotional about a trade, walk away and come back later with a clear head. Additionally, it is crucial to have the discipline stick to your system or strategy even when it might not seem like the best thing to do in the moment. Making sound decisions requires traders have a clear understanding of their goals, the risks and rewards involved in each decision, and how emotions can impact their ability make rational decisions. By having plan and sticking it, traders increase their chances success in the markets. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
12
WAVES/USD Main trend. Accumulation and distribution zones. Logarithm. Main trend. Time frame 1 month. Are you scared in the market right now? If yes, then rejoice and change your fear into a positive. After all, if you're scared, then other market participants are similarly scared, and this is an understanding of the surrender zone. Linear schedule . 1 month. Accumulation and distribution. The average price of recruitment and resetting. In this trading idea, I will describe how a big player works and manipulates the price of an asset. You need to understand the mechanism of market play according to cycles and the psychology of people's behavior in the market in different phases of the cycle. The big player in the asset accumulation zone "makes volatility," allowing you to earn locally (he buys into you). On pamp, you sell coins with a profit of +50%, +100% +200% is not particularly important. After all, the point is for you to sell coins at a profit or a loss. The less liquid the instrument, the wider the range, and vice versa. Then the same coin is sold to you or others like you in the next cycle, but at a profit of +10,000% or more. For a major player, the % monopoly on coins of the total market turnover is important. A large percentage of the total turnover gives an opportunity to influence the price in its favor, in other words, to control the price of the cryptocurrency. As a rule, most do not buy in accumulation, they are afraid. They wait for those who are supposed to sell to them to say, "Fools, it's time to buy in triple-dollars." Accumulation. You make a lot of money not on the pump but in the growth of the price in a strong trend. It takes time, sometimes a very long time, to accumulate a position in a certain range. On some liquid U.S. stocks, it takes a year or more to gain a position. On cryptocurrencies, this process is much faster, but sometimes this stage of the process is time-consuming. Most market participants, who are doomed to lose all the time, do the opposite. Projecting into trading what they are in real life. Anything that has to do with money reinforces this effect. Buy expensive (aimed at buying), sell cheap (aimed at selling). Do not inherit this tendency. Distribution of coins (sale of coins). Similarly, it takes a long time to reset a large position in an acceptable price range as well. This example of working on this cryptocurrency illustrates this creative process well. It is a creative process because it is work according to the plan, but from the situation that develops, you need to inspire the mice to willingly crawl into the mousetrap with a smile on their face. We need to keep the price (price level range) and let them earn +30%, +100% +200% is necessary to get everyone used to super-highs. Make a substitution in the concept of “super highs” and “bottom”. And simultaneously, you gradually unloaded your position. Believing hamsters will willingly buy "from the bottom" thereby you will not burn a lot of money to keep the “faith level”. You have to understand the mindset of the majority and their desires. Most people can't think for themselves, they pass off other people's insinuating thoughts as their own. Such is the psychology of the lower classes. Destructive desires, low intelligence and ideological significance. They do their thing. Intelligence in the crowd evaporates, herd cloning thinking is turned on. It's contagious... After about 60-70% of the position is sold out in an acceptable range, the dumping of the rest of the asset begins. By moving the price down to the desired new set of positions, you gradually "kill the faith" of the lazy hamster in a bright future. As a rule, the crowd is drained at the very bottom, when it was told to sell, or correctly said, instilled with the idea to get rid of the “unpromising”. You must know in advance where and at what % of the allocated sum you will fill the position and under what conditions. There should be discipline in everything, and you should determine in advance your future actions according to your trading algorithm, rather than an emotional component. Closer to the main position set zone-another price increase (optional) to unload another 10-20% of the position. In this coin this was done in the last cycle. Often you can see that this is done differently. Imitation of the accumulation channel, when the remaining extra part of the position is unloaded (not all of it). This method allows deceiving not completely stupid people, namely traders who analyze only price charts and understand the internal processes. People see an imitation of accumulation. This, by the way, is difficult to understand. After all, skillful work always hides "traces of the crime" in the buying/selling lane. And only experience allows you to determine that. For example, I once got into such a situation due to my inattention, but a timely exit upon confirmation of a breakdown of channel support partially leveled the situation. Unsuccessful experience is also extremely important, you need to make the right conclusions and continue to develop in this area as a player or even as an operator. In the next cycle of accumulation-pumping-dumping-accumulation, the process naturally repeats itself, if the organizers have enough rationality to support the project. A fool is not a mammoth, he will not go extinct. That's why this market makes super profits. It's very simple. I copied the entire text from my educational article 2020 , on the same coin. Profit over +500% since publication. Maximums as shown +12,300% or $60.66 WAVES/USD Main Trend. What "fuel" doesn't see. Process . Now there are problems with the USDN Stablecoin near the surrender zone Importantly, you have to understand that this is DEX WAVES Stablecoin, which is the point of "untethering." Amazingly, I haven't come across anywhere in the comments disgruntled and understanding why this is being done. Is the market to blame, as in LUNA-UST? All accidents of this magnitude are not. On the Internet, in the comments of victims encountered only negative (gave up, anger at losing money, “killed faith”) or conversely positive (the desire to save your money). Any trader understands the essence of cheating. Any stabelcoin is an altcoin whose stability depends on people's belief in its stability, and the willingness of its creators to maintain that belief in stability. WAVES/USD Secondary trend. Wedge. Capitulation. Locally. Time frame 1 day. Locally. Time frame 1 day.
W
by SpartaBTC
28
Simple ways to improve trading disciplineIn order to be successful in any market, it is essential to have trading discipline. This blog post will discuss what trading discipline is, why it is important, and how to improve it. Having self esteem and a positive outlook are crucial for any trader, as well as being able to stick to your trading plan. There are no shortcuts to success, so traders need to be patient and handle losses in order to achieve their goals. The importance of trading discipline Trading discipline is key to success in any market. This blog will explore what trading discipline is, why it is important, and some tips on how to improve it. What is trading discipline? Trading discipline is the ability to stick to a plan and not let emotions get in the way- one of the most important factors for success in any market. A lack of discipline is often one of the main reasons why traders fail. Why is trading discipline important? Having a trading plan that you can stick to is crucial, and this plan should be based on sound analysis. Once you have a plan, you need to be disciplined enough to follow it; however, this can be difficult as there are often temptations to enter trades that are not in line with your plan. Additionally, it is easy to let emotions get in the way of your decisions- which can lead to bad trades. How do I improve my trading discipline? To be successful, traders need to be patient and handle losses well in order to achieve their goals. Some tips on how to improve your trading discipline include being selective with your trades- only taking trades that meet your criteria, and waiting for the right opportunities rather than taking every trade that comes along. In conclusion, trading discipline is essential for success in any market and there are no shortcuts to success. By following these tips, you can improve your trading discipline and increase your chances of success. Why having self esteem is key to being a successful trader? Self esteem is incredibly important for traders, as it is key to success. Traders with high self esteem are more likely to take responsibility for their own success or failure, believe in their own ability to succeed, take risks, handle losses, and stick to their trading plan. Conversely, traders with low self esteem are more likely to second guess themselves, give up after a loss, take too much risk in an attempt to recoup losses, or abandon their trading plan. Self esteem is not something that can be faked – it’s either there or it isn’t. And it’s not something that can be built overnight. It takes time, effort and patience to develop self esteem. However, it is worth the investment, as traders with high self esteem are more likely to be successful in the long run. There are a few things that traders can do to build their self esteem. Firstly, they need to have realistic expectations. They need to understand that there will be ups and downs in the market and that they will make losses as well as profits. Secondly, they need to develop a positive mindset. This means looking at the positives even in tough times and believing in themselves even when things are tough. Lastly, they need to take small steps and celebrate each victory, no matter how small. Building self esteem takes time and effort but it is worth it for traders who want to be successful in the long term. How your personal life can affect your trading discipline? Your personal life can have a big impact on your trading discipline. For example, if you’re going through a divorce or have a sick family member, you may be more likely to take risks in your trading. That’s why it’s important to be aware of how your personal life can influence your trading. If you have any major life changes, it’s important to reassess your risk tolerance. And make sure that you stick to your rules and discipline. Don’t let emotions get in the way of making rational decisions. It can be helpful to keep a journal of your trades. This can help you track your progress and reflect on your successes and failures. By doing this, you can identify any patterns in your trading that may be influenced by your personal life. Making small tweaks to your trading strategy can also help you stay disciplined. For example, if you find that you tend to take more risks when you’re stressed, try setting stricter limits on how much risk you’re willing to take. Or if you find that you tend to impulsively buy or sell when the market is volatile, consider using stop-loss orders. The bottom line is that being aware of how your personal life can affect your trading is crucial to success. There are no shortcuts to success—traders need to be patient and handle losses as well as wins. But by sticking to your rules and being disciplined, you increase your chances of success in the long run. There are no shortcuts to success There are no shortcuts to success. You need to put in the work, be willing to sacrifice, and be persistent and consistent. Luck is also a factor in success. You need to be willing to put in the work if you want to be successful. This means being disciplined and sticking to your trading plan. It also means being patient and not giving up when things get tough. You need to be willing to sacrifice your time and energy if you want to be successful. This means making trading a priority and not letting other commitments get in the way. Luck is also a factor in success. While there are things that you can do to increase your chances of success, there is no guarantee that you will be successful. The markets are unpredictable and anything can happen. The bottom line is that there are no shortcuts to success. If you want to be successful, you need to put in the work and be willing to sacrifice. You also needto be persistent and consistent. Luck is also a factor, but there are things that you can do to increase your chances of success. Writing down your rules and being strict with yourself Many traders are not successful because they do not have well-defined rules, which are important because they help to keep you disciplined and focused. Without rules, it is easy to get sidetracked or to make impulsive decisions. Having a set of rules that you strictly adhere to can help you to avoid these pitfalls. It is also important to be flexible and adaptable in your application of the rules. The market is constantly changing and evolving, so your rules need to be able to change with it. Reviewing your rules on a regular basis will ensure that they are still relevant and effective. There are no shortcuts to success in trading; you need to be disciplined, put in the work, and be willing to sacrifice. Luck is also a factor but there are things you can do to increase your chances of success--writing down your rules and being strict with yourself is one of them. Being patient and handling losses Successful trading requires patience and the ability to handle losses. It is important to be patient when looking for the right opportunity to enter a trade. You also need to accept that losses are part of the process and not let them get to you emotionally. Finally, you must have realistic expectations about the market and understand that there are no guarantees you will make money.
OANDA:XAUUSDEducation
by Lingrid
8
WHAT DOES “TRADE WHAT YOU SEE” MEAN?🔵 As a forex trader, you've probably heard about how important it is to keep your emotions under control and follow reason and objective rather than acting on impulses fueled by greed, hope, or fear. But knowing not to trade emotionally is one thing; understanding HOW NOT to trade emotionally and putting that information into practice is quite another. Because of the prehistoric "fight or flight" reflexes that have guided our existence as a species for thousands of years, the human brain is designed to operate against us in the market. The majority of traders, regrettably, are unable to perform to their full capacity on the market due to the same causes. The more rational and objective frontal lobe of the brain, which is the newest section of the human brain and allows us to plan, reason, and make sense of complicated ideas, must thus be used to design a strategy if you want to become a consistently profitable trader. We may ensure that we act on reason and objectivity rather than emotion by learning to trade in what we see rather than what we think. The following information will help you to better understand why it is important to trade what you see rather than simply what you think as well as how to make sure you do so. 🔲 Stop trying to "outsmart" the market Trying to guess what the market will do next, with no real basis or trading setup, is like gambling on a slot machine or a roulette wheel. Yet every day, novice traders, as well as unsuccessful experienced traders, make exactly this emotional trading mistake. Instead of looking at the price chart and checking it against their forex trading plan to see if any price action setups are present, many traders simply "manifest" some idea of what price "should" be doing. When you are not trading on obvious and visible price events or according to a pre-designed trading strategy, you are simply acting on emotions and feelings rather than objective analysis of price movement. Many traders trade emotionally after a losing trade or after a winning trade because they succumb to the feelings of revenge that a losing trade causes, or the greed that a winning trade often causes. It is in these moments that traders stop trading based on what they see on the chart and start trading based on what they "think" or feel, and it is these moments that separate consistently profitable traders from unsuccessful amateurs. 🔲 Don't marry a trade It is important to understand that just because you "think" that something will happen in the market, it does not mean that it will. Similarly, even if you find a very obvious and "perfect" at first glance setup, you must always remember that the Forex market is a dynamic and constantly changing arena where anything can happen at any moment, so do not bet on the farm just because you think you have spotted the "right thing", because that does not happen in Forex, or in any market in general. Instead of allowing yourself to get emotionally attached to any trade or any idea of what the market might do, you need to learn to trade emotionally detached from your trades. Allow price action to light your way through the noise and confusion of the market, while remembering that you must constantly manage your risk even when trading setups look "perfect." Always make sure you are trading according to the concepts of your forex trading strategy and not just on a "whim", if you are trading on price action, then follow the tracks left by price, instead of going astray and succumbing to what you think the market "should" do or "might" do. 🔲 Learn to control yourself One obvious but often overlooked fact about Forex trading is that the market simply does not care whether you win or lose money, it is unaware of your existence and has no emotional reactions to you. However, most traders react emotionally to their trades and to the market, thereby allowing an inanimate being to control their behavior instead of controlling it itself. You won't be able to consistently make money in the market until you learn to control your emotions and reactions to the market. Once you learn to trade only what you see on the price chart and not what you think, you will be on your way to becoming a consistently profitable trader, because trading what you see and not only what you think means that you control yourself, not the market. The key is to consistently trade only what you see, not what you think or feel. This will help you avoid succumbing to the emotions of revenge or greed after a losing or winning trade. Traders who consistently trade only what they see on the price chart and not what they think "might happen," along with effective risk management, are the traders who make money in forex. When you learn how to trade with a high probability of price events while controlling your emotions and risk, you will find yourself in an even better position to make money in the forex market. 🔲 Ask questions before opening a trade Advice on how to ensure that you only trade what you can see, not what you can think. To truly make sure you only trade what you see and not what you think is quite another from simply understanding why you should. Here are some practical suggestions you may use to make sure you only trade what you can see and avoid giving in to emotion. Take the time to consider the following questions before entering into any trade: "Am I doing according to my plan?" "Where is my setup and does it meet the requirement?" "Is the market controlling me?" and "Am I acting logically or emotionally?" "Is it only my imagination, or do you have a bad attitude?". It's a good idea to ask yourself all of these questions before starting any trade. You'll be forced to think through your choices more carefully and decide whether your trade is reasonable or simply motivated by emotion. If you are trading a particular trading strategy, such as price action, make sure that every trade you make is consistent with the concepts you learned in the trading course or study material. Ask yourself any or all of the above questions before every trade you make, until trading only what you see becomes second nature. Eventually, you will develop a sophisticated discretionary trading perspective that allows you to look at the price chart almost instantly and identify price setups. Trading only obvious price action trading setups that are already formed and are not just "possible" setups provides us with a kind of "control and balance" to make sure we are not trading on emotion.
Education
by DeGRAM
10
ELEMENTS OF A TRADING JOURNALA trading journal is an important tool for any trader. It allows you to track your progress and learn from your mistakes. In this blog post, we will discuss the different elements that should be included in a trading journal. These elements include the date and time, the traded instrument, the entry and exit price levels, the position size, and the trade results. Date and Time The date and time when a trade is made is important for a number of reasons. Firstly, it allows you to track your progress as a trader. You can look back at your journal and see how your trades have changed over time. This information can be invaluable in helping you to improve your trading strategy. Secondly, the date and time can be used to help you learn from your mistakes. If you notice that you tend to make losing trades at a certain time of day, or on certain days of the week, you can adjust your strategy accordingly. Finally, the time zone in which the trade is made is important to consider if you are trading in multiple time zones. If you are not aware of the time zone differences, you could end up making trades at the wrong time and missing out on profitable opportunities. Traded Instrument Different types of instruments can be traded on the market, each with their own set of benefits and risks. It is important for traders to understand the instrument they are trading before making any trades. The most common type of instrument traded are stocks. A stock is a share in the ownership of a public company. When you buy a stock, you become a partial owner of the company. The value of stocks can go up or down, depending on a number of factors such as the company's performance, the overall health of the economy, and political factors. Another type of instrument that can be traded are options. An option is a contract that gives the holder the right to buy or sell an underlying asset at a specific price within a certain time period. Options are often used by investors as a way to hedge against losses in the stock market. ETFs, or exchange-traded funds, are another type of instrument that can be traded. ETFs are similar to mutual funds in that they offer diversification and professional management, but they trade like stocks on an exchange. ETFs can be made up of stocks, bonds, commodities, or other assets. Futures contracts are another type of instrument that can be traded. A futures contract is an agreement to buy or sell an underlying asset at a specific price at a specific time in the future. Futures contracts are often used by investors to speculate on the future price movements of an asset. Entry Exit Price Levels Entry and exit price levels are important to track in a trading journal for a number of reasons. Firstly, they allow you to see how well you timed your trades. Secondly, they can help you identify support and resistance levels in the market. Finally, they can be used to help you improve your trading strategy. When it comes to identifying entry and exit price levels, there are a few things that you need to keep in mind. Firstly, you need to make sure that you are using a reliable source of data. secondly, you need to take into account the time frame that you are looking at. And finally, you need to make sure that you are using the correct indicators. There are a few different ways that you can use entry and exit price levels to your advantage. One way is to use them to confirm your trades. Another way is to use them to set stop-loss and take-profit orders. And finally, you can use them to exited positions early if the market turns against you. In conclusion, entry and exit price levels are important elements of a trading journal. They can be used to track your progress as a trader, identify support and resistance levels, and improve your trading strategy. Position Size Position size is an important element of a trading journal. It can be used to track your progress as a trader, identify support and resistance levels, and improve your trading strategy. When identifying position size, it is important to use a reliable source of data, take into account the time frame, and use the correct indicators. Position size can be used to confirm trades, set stop-loss and take-profit orders, and exit positions early. There are a few different methods that can be used to calculate position size. The first method is to use a fixed percentage of your account balance. For example, you could risk 2% of your account balance on each trade. The second method is to use a fixed dollar amount. For example, you could risk $100 on each trade. The third method is to use a fixed number of shares or contracts. For example, you could risk 10 shares or contracts on each trade. The risk and reward potential of different position sizes should also be considered when making trades. A larger position size will have a higher potential profit, but it will also have a higher potential loss. A smaller position size will have a lower potential profit, but it will also have a lower potential loss. There is no right or wrong answer when it comes to position size. It all depends on your individual trading strategy and risk tolerance. Some traders may be willing to risk more money in order to make a larger profit, while others may only be willing to risk a small amount in order to limit their losses. Ultimately, it is up to each individual trader to decide what position size they are comfortable with. Trade Results When it comes to trading, the results of each trade are important. This is because they can show you how much money was made or lost, the percentage return on the trade, and what could have been done better. By looking at the results of your trades, you can learn lessons that will help you improve your trading strategy. One of the most important things to look at when evaluating the results of a trade is the percentage return. This is because it can show you how profitable the trade was. If you are only looking at the dollar amount made or lost, you may not be getting an accurate picture. For example, a trade that made $100 but had a 100% return is more profitable than a trade that made $200 but only had a 50% return. It is also important to look at what could have been done better in each trade. This includes things like entry and exit points, position size, and risk management. By looking at what went wrong in each trade, you can learn from your mistakes and make adjustments to your trading strategy. Finally, it is also important to take into account the lessons learned from each trade. These lessons can be used to improve your trading strategy and make more profitable trades in the future.
OANDA:XAUUSDEducation
by Lingrid
5
The Market TrendsHello, Let us talk about 'Market Trends.' On this chart: We will read about what they are, how they work, and how they help us. Market trends refer to the general direction or movement of a particular market or industry over time. These trends are often driven by several factors, including consumer behavior, economic conditions, technological advances, and changes in government regulations. One of the current market trends is the spread of electronic commerce and online shopping. As more and more consumers shop online, companies are switching to digital marketing and sales channels. This development was accelerated by the COVID-19 pandemic, which forced many people to stay at home and rely on online shopping. Another trend is the growing demand for durable and environmentally friendly products. Consumers are increasingly aware of the environmental influence of their purchases and are looking for products manufactured and packaged in an environmentally friendly manner. This trend forces companies to adopt sustainable practices and incorporate sustainability into their product offerings. There are several types of market trends, including: 1. Upward Trend: An uptrend, also known as a bull market, is characterized by a general increase in the price of a particular asset or market over time. This development is often driven by a strong economy, positive investment sentiment, and increasing demand for assets or markets. 2. Downward Trend: A downtrend, also known as a bear market, is characterized by a general decline in the price of a particular asset or market over time. This trend is often the result of a weak economy, negative investment sentiment, and reduced demand for assets or markets. 3. Sideways Trend: A lateral trend, also known as a range-bound market, is characterized by the fact that the price of a particular asset or market does not change significantly over time. This trend is often driven by market uncertainty, as buyers and sellers become more cautious. 4. Volatility: Volatility refers to the extent to which the price of a particular asset or market fluctuates over time. High volatility may indicate increased uncertainty and risk, while low volatility may indicate a more stable market environment. 5. Seasonal Trends: Some markets may exhibit seasonal trends, such as demand for specific products or services at certain times of the year (such as the Christmas shopping season). 6. Technology Trends: Technology trends refer to the direction and amount of innovation in a particular industry or market. These trends can significantly affect the overall performance of individual companies and markets. Understanding market trends can help investors, traders, and companies make informed decisions about buying, selling, and investing in different markets and assets. To identify an uptrend in the cryptocurrency market, it is necessary to analyze prices and market data to determine if the value of cryptocurrencies has consistently increased over a while. Here are some steps to identify an uptrend in the cryptocurrency market: 1. Look for a consistent rise in the price of cryptocurrencies over a while. This can be detected by analyzing prices and looking for a consistent pattern of higher and lower prices. 2. Check trading volumes to see if the number of trades and overall trading activity in the market has increased. Continued growth in trading volume could indicate increased demand and interest in cryptocurrencies, which could contribute to the rally. 3. Follow market sentiments and news about the cryptocurrency market. Positive news, such as the adoption of cryptocurrencies by large institutions or regulatory clarity, can help the market rise. 4. Check technical indicators such as moving averages, RSI and MACD to confirm an uptrend. These indicators can help identify market momentum and provide additional information about market direction. It is important to note that the cryptocurrency market can be very volatile and subject to sudden price changes. So, it is essential to consider other factors, such as risk tolerance, investment goals, and diversification, when making investment decisions. Researching and consulting with a financial advisor before investing in cryptocurrencies or other financial assets is also essential. There are various tools and indicators available to identify trends in financial markets, including the following: Moving averages: A moving average is a trend-following indicator that smooths out price data by averaging prices over a specific period. Traders often use moving averages to identify the direction and strength of a trend. Relative Strength Index (RSI): The RSI is a momentum indicator that compares the volume of recent gains to recent losses in an attempt to resolve the overbought and oversold conditions of an asset. The RSI can be used to identify potential trend reversals or continuations. MACD: The Moving Average Convergence Divergence (MACD) indicator is a trend-following momentum indicator that shows the relationship between two moving averages of an asset's price. Traders use the MACD to identify potential trend direction, momentum, and strength changes. Bollinger Bands : Bollinger Bands are a volatility indicator that uses standard deviations of an asset's price to create upper and lower bands. Traders often use Bollinger Bands to identify potential breakouts or breakdowns of price trends. Fibonacci retracements: Fibonacci retracements are technical levels indicating potential support or resistance areas. Traders use Fibonacci retracements to identify potential levels where a trend may reverse or continue. Volume: Trading volume is the amount of an asset traded over a given period. Traders use volume to confirm price trends and to identify potential trend reversals. Price action: Price action studies an asset's price movement over time. Traders use price action to identify potential trends, reversals, and key support and resistance levels. It's important to note that no single tool or indicator can accurately predict future market trends. Traders often use a combination of tools and indicators, along with fundamental analysis and market news, to make informed trading decisions. You can also see different educational ideas about market trends and tools to identify them on this chart below: Many TradingView experts have taken the time to publish great ideas, and they shared most of them below this idea. Make sure you take a look at them too. Thank you for your time.
Education
by ShawnMCR
14
Limit and Market orders, cognitive & behavioral reviewWe assume a spot market for this article purely on the result of TRADES' interaction with no market making effect from the broker or exchange. You can only profit from buying at a lower price and selling at a higher price. So, there is no short in here. And we assume that you already know the basics of market and limit orders. As you can see the table on the chart for the whole idea, we want to talk a bit deeper. Limit Orders Limit Order is like a Wall, it makes liquidity on the order book to fill the market orders and that is why it is called MAKER. In limit order, the price is more important than the time. Limit order makes the market less volatile. Market Orders Market Order is like a Wrecking Ball, it takes liquidity from the order book and is filled from limit orders and that is why it is called TAKER. In market order, the time is more important than the price. Market order makes the market more volatile. Now for both of these order types we have Buyers and Sellers. Buyers always want to buy at lower price, and sellers always want to sell at higher price, so every limit buy should be lower than the current price and every limit sell should be higher than the current price. If you put a buy limit order higher than the current price or a sell limit order lower than the current price, it will act as a TAKER order not a maker order. If there is a buy market order at the same time with another sell market order, the buy market order is filled with the lowest sell limit order on the order book and the sell market order is filled with the highest buy limit order on the order book. So, in every trade that is executed on the order book, one of the buyers or the sellers should be a market order and the other one should be a limit order. It's either the buyer is maker, and the seller is taker, or the buyer is taker, and the seller is maker. That's how the price moves! Selling market orders push the price to go lower and buying market orders push the price to move higher. Selling limit orders pull the price from going higher and buying limit orders pull the price from going lower. Selling limit orders are more spread above the resistances BUT buying limit orders are more concrete at the support price. Now let's talk about a few facts from Behavioral Finance ! 1- Confirmation Bias : the tendency to interpret new evidence as confirmation of one's existing beliefs or theories (like when the price is inside the ichimoku cloud). So, if I buy at any price, till a long time I will think that it will go higher! and this may be why a lot of people have big losses over time and do not commit to their stop loss. 2- Loss aversion or Prospect Theory : the tendency to prefer avoiding losses to acquiring equivalent gains. losses are twice as powerful, psychologically, as gains (like the urge feeling for revenge trading when you have lost in your last trade). This may be why people use Market orders for exiting from a position instead of Limit orders. A graph of perceived value of gain or loss vs. strict numerical value of gain or loss. 3- Risk aversion : a preference for a sure outcome over a gamble with higher or equal expected value (like when you can enter at a better price but you rather to confirm your analysis sacrificing your potential profit). This may be why people (or maybe it is better to say good traders) use Limit Orders for entering at a position instead of market orders. Now if someone buys at a high price and gets in loss, there is a conflict between Confirmation Bias and Loss aversion. If confirmation bias wins (which is for most of the people with lower experience), you just stay in the loss in the hope of a pivot point to sell at break even and that creates an additional sell pressure on a price point near resistance which was seen before (something like Double TOP pattern). But if Loss aversion wins, you commit to your stop loss and get out faster which creates a selling pressure force in a price point under the main support areas which is the result of triggering domino like stop losses. I try to explain few different concepts together in a structured way. I would be glad to hear your opinion.
Education
by NoaTrader
2
How to Be a Successful Beginner TraderWhen it comes to trading, many people think that it is an easy way to make quick money. However, the reality is that it takes time, effort, and patience to be a successful trader. In this blog post, we will discuss some of the key things that beginners need to do in order to be successful. Set realistic goals Setting realistic goals is important for any beginner trader. Without a plan and actionable steps, it can be easy to get discouraged or become overwhelmed. Trying to make too much money too quickly can also lead to losses. It's important to start small and work your way up. Don't try to go for the big win right away. Set a goal that is achievable and focus on that. Do not strive for perfection. Remember that trading is not a get-rich-quick scheme and you need to be patient in order to be successful. Keep things simple and defined It's important to keep your trading strategy simple and defined. Too many indicators and too many rules can make your strategy too complicated and difficult to follow. Backtesting your strategy on historical data can help you optimize it, but don't over-optimize or you'll risk ruining your strategy. Paper trading is a good way to test your strategy before using real money. When you're just starting out as a trader, it's tempting to try to find the perfect system. You might think that if you just use the right combination of indicators, you'll be able to beat the market. Unfortunately, it's not that easy. There are two problems with trying to find the perfect system. First, the market is constantly changing and what worked yesterday might not work today. Second, even if you do find a system that works, there's a danger of over-optimizing it. Over-optimization is when you keep tweaking your system, trying to get ever-better results. The problem is that when you do this, you're usually just fitting your system to past data. That means it will probably work well in the short term but not in the long term. A better approach is to keep things simple and defined. That way, you're less likely to over-optimize and more likely to be able to adapt as the market changes. One way to keep things simple is to use just a few indicators. It's often better to use fewer indicators that give clear signals than lots of indicators that give conflicting signals. You should also have well-defined rules for entry and exit points so that you know exactly when to buy and sell. Backtesting can help you optimize your strategy by seeing how it would have performed in the past. However, it's important not to over-optimize or you'll end up with a system that only works on paper but not in real life. Once you've got a system that looks promising, paper trade it for a while before using real money. Get a mentor A mentor can play an integral role in your success as a beginner trader. A good mentor will provide guidance and support, help you learn from their own experiences, hold you accountable to your goals, and keep you motivated throughout your journey. Finding a mentor can be tricky, but there are a few avenues you can explore. First, see if any of your friends or family members trade. If they do, ask if they would be willing to mentor you. If not, there are plenty of online resources available, like forums and chat rooms dedicated to trading. LinkedIn is also a great place to look for potential mentors. Once you've found a potential mentor, set up a meeting to get to know them better and see if they're a good fit for you. Be sure to come prepared with questions about their experiences trading and what they think makes someone successful. Also, be sure to let them know what your goals are and what you're hoping to get out of the mentorship relationship. If everything goes well, then congratulations! You've just taken an important step towards becoming a successful trader. Trading is not a get-rich-quick scheme Trading is not a get-rich-quick scheme. You will not become a millionaire overnight. You will have to be patient and handle a few losses along the way. Trading is a long-term game. The key to success in trading is to set realistic goals and take them one step at a time. Trying to make too much money too quickly can lead to losses. Focus on achievable goals, and don't strive for perfection. Remember that trading is a long-term game and you need to be patient to be successful. Another important key to success is to keep everything simple and defined. This has to do with your analysis, trading strategy, and trading plan. Over-optimizing your strategy can lead to ruined results. Backtesting can help you optimize your strategy, but don't over-do it. Paper trading is a good way to test your strategy before using real money. In order to be successful, it is also important to find a mentor who can provide guidance, support, and advice based on their own experiences. A mentor can help you learn from their mistakes so that you don't have to make them yourself. You can find potential mentors through friends and family, online resources. When meeting with a potential mentor, come prepared with questions and let them know your goals. Trading is not a get-rich-quick scheme - it takes time and patience to be successful. By following these tips, you'll be on your way to becoming a successful trader. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
18
4 important trade tips on price actionWhen it comes to trading, there are a few key things you need to keep in mind in order to be successful. In this blog post, we'll cover four important trade tips that focus on price action. By keeping these tips in mind, you'll be better equipped to make profitable trade decisions going forward. №1: Identifying the current market structure The first step to take when trying to identify the current market structure is to examine the overall market trend. This will give you a good idea of whether the market is trending up, down, or sideways. You can use a variety of tools to help you with this, such as trend lines, moving averages, and price action. Once you have a good idea of the overall market trend, you can then start to look for areas of value. These areas could be support or resistance levels, depending on the market trend. For example, if the market is trending downward, you would look for areas where the price has bounced off of support in the past. If the market is trending upward, you would look for areas where the price has bounced off of resistance in the past. It's also important to watch out for price volatility when trying to identify the current market structure. This will help you understand if the market is on the move or consolidating. Price volatility can be caused by a number of factors, such as news events, economic data releases, and even just changes in investor sentiment. Finally, pay attention to chart patterns and breakout levels. These can be important clues for future market direction. Some common chart patterns include head and shoulders, triangles, and double tops/bottoms. №2: Identifying major areas of value In order to identify major areas of value, traders should: 1) First take a look at the overall market trend to get an idea of whether the market is moving up, down, or sideways. 2) Identify potential support and resistance levels. 3) Watch out for price volatility to better understand if the market is on the move or consolidating. 4) Monitor chart patterns and breakout levels, as they can provide important clues for future market direction. №3: Watching for price volatility Price volatility can be defined as sudden changes in prices. These changes can be either up or down, and they often happen very quickly. Price volatility is a normal part of the market, and it happens for a variety of reasons. Some of the most common causes of price volatility include news events, economic data releases, and central bank decisions. One of the most important things that traders need to do is to watch for price volatility. By monitoring price movements, traders can take advantage of market swings to make profits. There are a few different ways to do this. One way is to use technical indicators, such as Bollinger Bands or the Average True Range indicator. Another way is to simply pay attention to price action and look for signs of a potential breakout. When it comes to identifying when the market is volatile, there are a few different things that traders can look for. First, they can look at the overall level of market activity. If there is a lot of activity, it is likely that prices will start to move around more. Second, traders can look at the size of the candlesticks on a price chart. If they are getting bigger or smaller, it could be an indication that prices are starting to move more aggressively. Finally, traders can also listen to news reports and economic data releases for clues about potential market moves. There are a few different techniques that traders can use to monitor price volatility. One way is to set up alerts on their trading platform so that they are notified whenever there is a sudden change in prices. Another way is to check in on the markets regularly throughout the day so that they can spot any potential changes as they happen. №4: Chart patterns and breakout levels One of the most important things for traders to know is how to identify chart patterns and breakout levels. This knowledge can help them take advantage of market swings to make profits. There are many different types of chart patterns that traders can use to their advantage. Some of the most common include head and shoulders, double tops and bottoms, triangles, and flag and pennant patterns. Each of these patterns can give traders clues about future market direction. Head and shoulders patterns, for example, often form at the end of an uptrend and can signal that the market is about to reverse course. Double top and bottom patterns can also be used to predict market reversals. Triangles typically form during periods of consolidation and can be used to trade both breakout and continuation setups. Flag and pennant patterns often form during periods of consolidation and can also be used to trade breakout setups. When it comes to trading breakouts, it is important for traders to wait for multiple confirmations before taking a trade. This means that they should look for other signs that the market is about to move in the direction they are anticipating before entering a trade. Some things traders can look for include a sharp increase in volume, a break above or below key resistance or support levels, or a strong move in price away from the pattern itself. By knowing how to identify chart patterns and breakout levels, traders can take advantage of market swings to make profits. These techniques are some of the most important tools in a trader's toolbox and can help them become more successful in the markets. Conclusion The conclusion of the article should cover the four important trade tips on price action. These tips are designed to help traders make better decisions and maximize their profits. By following these tips, traders will be able to better navigate the market and make more informed decisions that can lead to successful trades. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
11
COMMON TRADER BIASES🔴 Let's talk about the typical biases in trading that many traders experience on a regular basis. These biases are some of the most common ones we encounter in trading, and if you don't recognize them, they may be the cause of your failure in forex. It will be lot simpler for you to deal with them and comprehend why giving in to them can harm your results if you are able to think probabilistically. ▶️ Recency Bias It is a common mental tendency where people tend to focus more on what's happening now, rather than what happened in the past. This is known as a cognitive bias, and it affects traders. People who have had success in the past are more likely to be overconfident in their next trades, expecting things to go their way again. However, each trade is unpredictable and has no connection to the ones that have come before or after it. Knowing this can help you manage your emotions while trading. ▶️ Loss Aversion Bias Some people have a tendency to feel the effects of losses more than they do of wins of equal magnitude. This can often lead to lower performance. Traders are focused only on avoiding losses will miss out on big opportunities for gains and lose their positive edge. Remember each trade is just one data point in a larger distribution. There will be losses. Don't avoid trades out of fear because you can't avoid them - embrace them as part of the process. Don't let past losses make you doubt yourself if you have a positive edge. If you win more when you win than when you lose. The Law of Large Numbers is working in your favor. Instead of thinking about things emotionally, think probabilistically. This means thinking about the likelihood of something happening, rather than just assuming it will happen. This can help you make better decisions and avoid losing trades. ▶️ Confirmation Bias Absorbing information only that supports your views. It is seductive to look on your past conviction favorably because it feels good, but doing so increases the risk of missing crucial information that could help you get your conviction overturned. With objective rules, you can determine whether your advantage is present. Without appropriate rules, you'll start to see only what you want to see. To prevent this bias, it is crucial to have a positive statistical advantage and strict rules to follow. ▶️ Bandwagon Bias In general, this is entering trades that everyone else is in because you don't want to miss out. The latest hottest trade is often referred to as FOMO (Fear of Missing Out). By doing this, you are giving in to your emotions and going along with the crowd rather than following your own well-defined and positive edge. Forget about the others and simply focus on yourself and your competitive advantage. All other information is noise. ✅ Conclusion These biases, as you can see, are of a temporary. Which, as we have discovered, is extremely risky for our trading because it is a long-term game in which we allow our edge to develop gradually. We are aware that in order to succeed in trading, we must take the long view and trust the probability. You will ruin your trading and your trading account if you fall to these biases in the short run. But by becoming aware of them, you can take some action to change your frame of reference in the present and prevent these biases from ruining your trading performance.
Education
by DeGRAM
8
Ready to start trading?If you're thinking about getting into forex trading, then you'll need to take some steps to get started. In this blog post, we'll walk you through seven of the most important things you need to do before you start trading forex. From choosing a broker to building a winning trading strategy, we've got you covered. So read on to find out everything you need to know before getting started in the exciting world of forex trading! Choose a forex broker When you're ready to start trading forex, the first step is to choose a broker. With so many brokers out there, it can be tough to know where to start. Here are a few things to look for in a good forex broker: -Regulation by a major financial institution. This ensures that your broker is held to high standards of financial responsibility. -A demo account. This will allow you to test out the broker's platform and see if it's a good fit for you. -Competitive spreads. This refers to the difference between the bid and ask price of a currency pair. A tight spread means that you can trade at more favorable prices. -Customer service. You should be able to reach customer service easily if you have any questions or problems. Once you've found a broker that meets these criteria, the next step is to open a demo account. This will allow you to get familiar with the broker's platform and try out your trading strategy before putting any real money on the line. Open a demo account Opening a demo account with a forex broker is a straightforward process. You will need to provide some personal information to the broker, such as your name and email address. The broker will then send you an activation link. Once you click on that link, your demo account will be activated. You will be able to choose the amount of money you want to deposit into your demo account. Once you have made your deposit, you will be able to start trading! Build a winning trading strategy Building a winning trading strategy is essential for anyone looking to profit from the forex market. There are a few key steps that all traders should follow in order to increase their chances of success. The first step is to understand the markets. A trader needs to know what drives the prices in the market. The second step is to tailor the trading strategy to the trader's goals and risk tolerance. The third step is to test the trading strategy on historical data. The fourth step is to have a plan for managing trades. The fifth step is to stick to the plan. By following these steps, traders can develop a winning strategy that suits their individual needs and goals. Make your trading calendar A trading calendar is a schedule that outlines the times of day and days of the week when a trader will trade. The purpose of a trading calendar is to help traders plan their trading activities around their other commitments. When deciding what times of day to trade, it is important to consider the following factors: market volatility, liquidity, and spreads. Market volatility is the amount by which the price of a security, currency, or commodity moves up or down. Liquidity is the degree to which an asset can be bought or sold without having a significant impact on the price. Spreads are the difference between the bid and ask prices of a security, currency, or commodity. It is also important to consider how many days of the week to trade. Many traders choose to trade five days a week, as this leaves weekends free for family and other commitments. However, some traders may choose to trade six or seven days a week if they feel they can commit the time required. When choosing currency pairs to trade, it is important to consider which pairs are most liquid and have tight spreads. Liquidity is measured by the volume of trades that take place in a given period of time. The more trades that take place, the more liquid a pair is said to be. Spreads are measured by the difference between the bid and ask prices of a currency pair. The smaller the difference, the tighter the spread. Once you have decided what times of day and how many days per week you will trade, it is time to open a demo account with a broker. A demo account allows you to practice trading with virtual money before you risk any real money. This is an important step, as it allows you to test your trading strategy without risking any capital. Once you have opened a demo account, it is time to backtest your trading strategy. Backtesting involves testing a trading strategy on historical data to see how it would have performed in past market conditions. This is an important step as it allows you to see if your strategy has any potential flaws that could cause problems in live trading conditions. By following these steps, you can create a trading calendar that suits your needs and helps you plan your trading activities around your other commitments Open real account When you're ready to start trading forex for real, the first step is to find a good broker. Most brokers offer a demo account which is a great way to test out their platform and see if it's a good fit for you. Once you have found a broker you like, the next step is to open a real account. To do this, you will need to provide some personal information and documents. After your account is opened, you can start trading! In order to find a reputable forex broker, there are a few things you should look for. First, make sure the broker is registered with the National Futures Association or another regulatory body. Second, check to see if the broker offers a demo account so you can try out their platform before committing to an account. Third, compare the spreads offered by different brokers to make sure you're getting competitive rates. Fourth, read online reviews of the broker to get an idea of their customer service and overall reputation. Once you've found a broker that meets all of these criteria, you can open an account and start trading! Follow the rules of your trading strategy When it comes to trading forex, it is essential that you follow the rules of your trading strategy consistently. This means having a detailed journal or diary of all your trades so that you can review and improve your strategy. Adhering to your risk management rules is also crucial for success. If you don't have a consistent approach to trading, it will be very difficult to profit from the forex market. You may find that you make some good trades but then lose money on others because you didn't stick to your strategy. This is why it is so important to have a well-defined strategy and to follow it religiously. It can be helpful to think of your trading strategy as a set of rules that you must follow in order to be successful. These rules should cover every aspect of your trading, from entry and exit points to risk management. By following these rules consistently, you will increase your chances of making profits in the forex market. Of course, even the best trading strategy will not always result in profits. There will be times when the market moves against you and you make losses. However, if you stick to your strategy and follow the rules, over time you should see more winning trades than losing ones. Keep a trader's diary A trader's diary is a valuable tool that can help you review your performance and spot any patterns or areas that need improvement. To keep a trader's diary, find a comfortable and quiet place to sit down and write. Date each entry, and include the time of day. Be as specific as possible when recording entries, including things like what the market was doing at the time. Also note down your emotions and thoughts while trading. Finally, review your diary periodically to look for any patterns or areas that need improvement. Keeping a trader's diary can be beneficial for a number of reasons. First, it can help you track your progress over time. By looking back at previous entries, you can see how far you've come and what areas you still need to work on. Second, it can help you identify patterns in your trading behavior. For instance, you might notice that you tend to make impulsive decisions when the market is volatile. By being aware of this pattern, you can work on changing it. Third, it can provide valuable insights into your thought process while trading. By reviewing your entries, you might realize that you need to take more time to analyze situations before making decisions. Overall, keeping a trader's diary is a helpful way to reflect on your trades and identify areas for improvement. By taking the time to write down your thoughts and emotions while trading, you can gain valuable insights into your trading behavior. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
12
TWO TAPES OF FOREX TRADINGThe two tapes of forex trading are a recording of your past performance and a recording of your current live performance. Many traders focus on the first tape, which is full of emotions and can be misleading. The second tape is a more accurate representation of your trading skills and should be given more attention. Letting the first tape influence your decisions can lead to suboptimal results. No strategy vs. systematic strategy Some people believe that the best way to trade forex is with no strategy, while others believe that a systematic approach is best. Back-tested data can be used to improve and optimize a trading strategy, but some traders believe that live trading data is more reliable. Journals can help traders learn from their mistakes and improve their trading strategies. A long-term mindset is key to success in forex trading. There are pros and cons to both approaches. Some traders find that a systematic approach helps to take the emotion out of trading and leads to more consistent profits. On the other hand, others believe that no strategy is the best approach, as it allows for more flexibility. Let's explore both sides of the argument in more detail. Systematic approach: Advantages: 1) A systematic approach can help to take the emotion out of trading and lead to more consistent profits. This is because you are following a set of predetermined rules, rather than making decisions based on your emotions. 2) Back-tested data can be used to improve and optimize a trading strategy. This means that you can test out different strategies before implementing them in live trading. 3) Journals can help traders learn from their mistakes and improve their trading strategies. This is because you can track your progress and see which areas need improvement. Disadvantages: 1) A systematic approach can be inflexible, as you are following a set of rules rather than making decisions based on market conditions. This means that you may miss out on profitable opportunities. 2) Back-tested data may not be accurate, as it does not reflect real-world conditions. This means that your strategy may not work as well in live trading as it did in backtesting. 3) Journals can be time-consuming to keep, and you may not always have time to review them properly. This means that you could miss important information about your progress or about areas where you need improvement Back-tested data What is back-testing? Back-testing is the process of using historical data to test a hypothesis or strategy. This can be done with real data from the markets, or simulated data that mimics market conditions. Back-testing is useful for traders because it can help take emotion out of trading decisions, test different market conditions, and fine-tune strategies. There are some drawbacks to back-testing, however. Data accuracy may be an issue, as historical data doesn't always reflect current market conditions. Additionally, back-tested data can sometimes produce false positives, leading traders to believe a strategy is more successful than it actually is. Despite these limitations, back-testing remains a valuable tool for forex traders. Journaling trades Journals can help traders learn from their mistakes, reflect on their emotions during trades, and improve their trading strategies. For example, if a trader made a mistake that led to a loss, they could reflect on that trade in their journal and figure out what they did wrong. This would help them avoid making the same mistake in the future. Similarly, if a trader journaled their emotions during a trade, they might be able to identify certain triggers that led to bad decisions. For example, if they always seem to make impulsive decisions when they're feeling angry, they can then try to avoid trading when they're in that emotional state. Finally, by keeping a journal of their trades, traders can track their progress and see if their trading strategies are actually working. If they find that they're not making as much progress as they'd like, they can then adjust their strategies accordingly. Overall, journals can be incredibly helpful for traders who want to improve their performance. By taking the time to reflect on past trades and track their progress, traders can make more informed decisions and avoid making costly mistakes. Emotionless trading In this section, we'll be discussing the importance of trading objectively, without letting emotions get in the way. We'll also talk about how losses are simply expenses, and not a reflection of personal ability. Finally, we'll stress the importance of having a long-term mindset in forex trading. It's important to remember that forex trading is a business, and should be treated as such. This means that decisions should be made based on what will make the most money, not on emotion. If a trade doesn't go well, it's important to be able to take the loss and move on. Losses are simply expenses, and they happen to everyone. The key is to not let them get in the way of making profitable trades. Another important aspect of forex trading is having a long-term mindset. Many people want to get rich quick, but this simply isn't possible. Successful traders focus on making small, consistent profits over time. This takes discipline and patience, but it is much more likely to lead to success than trying to make a fortune overnight. Long-term mindset Many people enter the world of forex trading with the intention of making a quick profit. However, this is seldom the reality. In order to be successful in forex trading, it is necessary to have a long-term mindset. This means being patient and disciplined, sticking to a trading plan, and not letting emotions get in the way. Here are a few tips for developing and maintaining a long-term mindset: 1. Have realistic expectations Don't expect to make millions of dollars overnight. Forex trading is a marathon, not a sprint. It takes time, patience, and discipline to be successful. 2. Develop a trading plan A trading plan should include your investment goals, risk tolerance, time horizon, and entry and exit points for trades. Having a plan will help you stay on track and make rational decisions when emotions start to take over. 3. Keep a journal A journal can be a helpful tool for reflecting on your trades and learning from your mistakes. Every trader makes mistakes – it's part of the learning process. By keeping a journal, you can identify patterns in your behavior that lead to losses and work on avoiding them in the future. 4. Stick to your plan It can be tempting to deviate from your plan when things are going well or badly. However, it is important to stick to your plan and not let emotions dictate your trades. Doing so will help you stay disciplined and focused on your long-term goals. 5. Take breaks It's important to take breaks from trading from time to time – both mental and physical ones. Staring at charts all day can lead to decision fatigue, which can lead to poor judgement and bad trades. Taking regular breaks will help you refresh your mind and come back with fresh perspective Obsesses with every loss Losses are an inherent part of forex trading. It is essential to accept this fact and use it to your advantage. Every loss presents an opportunity to learn and grow as a trader. By taking the time to journal and reflect on past trades, you can improve your chances of success in the future. obsessing over losses will only lead to more losses in the future. It is crucial to have a long-term mindset if you want to be successful in forex trading. This means having patience, discipline, and emotional control. If you can develop these qualities, you will be well on your way to becoming a successful forex trader. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
11
FOREX MARKET PLAYERSWhen it comes to the forex market, there are a number of different players that play a role in its overall functioning. From central banks and commercial banks to individual investors and brokers, each one plays a part in keeping the market ticking. In this article, we take a closer look at each of these groups and their role in the forex market. Central banks Central banks play a vital role in the foreign exchange market. They are responsible for setting monetary policy, which can have a big impact on the banking system and the economy as a whole. When it comes to setting monetary policy, central banks have two main objectives: ensuring price stability and achieving full employment. In order to achieve these objectives, central banks use a variety of tools, such as interest rates, quantitative easing, and open market operations. The monetary policy set by central banks can have a big impact on the banking system. For example, if central banks raise interest rates, it will become more expensive for banks to borrow money. This can lead to higher lending rates and reduced lending activity, which can in turn slow down economic growth. The economy is also affected by the monetary policy set by central banks. For instance, if interest rates are lowered, it can encourage spending and boost economic growth. On the other hand, if interest rates are raised, it can lead to slower economic growth. Institutional investors Institutional investors are usually large organizations, such as hedge funds or insurance companies, that don't trade frequently. Instead, they have a long-term orientation and are concerned about the overall health of the market. For these investors, the foreign exchange market provides an opportunity to make profits by buying and selling currencies. Most institutional investors use a professional currency trader to buy and sell currencies on their behalf. These traders have access to information and resources that individual investors don't have. They also have the experience and expertise to make informed decisions about when to buy and sell currencies. When institutional investors buy a currency, they are betting that it will appreciate in value relative to other currencies. If their bet pays off, they will make a profit. On the other hand, if the currency depreciates in value, they will incur a loss. The foreign exchange market is risky, but it can be profitable for those who know what they're doing. Institutional investors often have an advantage over individual investors because they have access to more information and resources. They also tend to be more experienced and knowledgeable about the market. Individual investors Individual investors play an important role in the foreign exchange market. They provide the market with much-needed liquidity and can profit from currency movements. Most individual investors are small-scale investors, but there are also large-scale investors, such as hedge funds and insurance companies. The different investment strategies used by individual investors may include buying and holding currencies, day trading, and carrying out technical analysis. Some individual investors choose to buy and hold currencies for the long term. They believe that over time, the currency will appreciate in value. This strategy requires patience and a willingness to accept gradual gains. Other individual investors opt for a more active approach, day trading currencies. This involves buying and selling currencies within the same day in order to take advantage of short-term price movements. Day trading can be a risky strategy, but it can also lead to quick profits. Many individual investors carry out technical analysis when making decisions about when to buy and sell currencies. Technical analysis is a method of predicting future price movements based on past price data. Commercial banks Commercial banks are an important part of the economy. They are responsible for taking deposits from individuals and companies and lending money to borrowers. Commercial banks play a vital role in the economy by acting as a conduit for funds between savers and borrowers. The largest commercial banks in the world are Citigroup, JPMorgan Chase, HSBC, Bank of America and Wells Fargo. These banks have a significant impact on the forex market. They buy and sell currencies on a daily basis in order to facilitate transactions between businesses and consumers. Most commercial banks use professional currency traders to buy and sell currencies on their behalf. These traders have access to information and resources that individual investors don't have. They also have the experience and expertise to make informed decisions about when to buy and sell currencies. When commercial banks buy a currency, they are betting that it will appreciate in value relative to other currencies. If their bet pays off, they will make a profit. On the other hand, if the currency depreciates in value, they will incur a loss. Brokers Most retail brokers in the foreign exchange market are what is called market makers. This means that they essentially act as a middleman between the buyer and seller of a currency pair. For example, if you wanted to buy Euros using US dollars, the broker would find someone who wanted to sell Euros and match you up with them. The broker would then charge a commission on the transaction. Market makers make money by charging a spread, which is the difference between the bid price and the ask price of a currency pair. For example, if the bid price of EUR/USD is 1.20 and the ask price is 1.21, the spread would be 1 pip. Market makers typically add 3-5 pips to the spread in order to make a profit. Another way that some brokers make money is through what is called slippage. Slippage occurs when an order is filled at a worse price than expected due to market conditions. For example, if you placed an order to buy EUR/USD at 1.20 and the market was very volatile, your order might be filled at 1.19 instead. In this case, the broker would keep the 1 pip difference as profit. Some brokers also charge fees for making deposits or withdrawals from your account. These fees can vary depending on the method used (e.g., wire transfer, credit card) and can add up over time if you're frequently making deposits or withdrawals Companies When it comes to foreign exchange, companies have a few different options available to them. They can use foreign exchange to hedge currency risk, speculate on currency movements, or invest in currency as an asset class. Currency ETFs are also an option for companies looking for active currency management. Hedging currency risk is important for companies that have exposure to foreign currencies. For example, a company that exports goods to Europe might want to hedge against the risk of a decline in the value of the Euro. To do this, the company would enter into a currency forward contract. This contract locks in the exchange rate between two currencies for a future date. So, if the value of the Euro does decline, the company's export revenue will not be affected. Speculating on currency movements can be a risky proposition, but it can also be profitable. Companies that speculate on currencies typically use financial instruments like futures contracts or options. These contracts allow them to bet on the direction of a currency's movements without actually having to buy or sell any currency. Of course, if they guess wrong about which way the market will move, they can lose money. Investing in currency as an asset class is another option for companies. This can be done by buying foreign currencies with the intention of holding them for investment purposes. For example, a company might buy Japanese Yen because it expects the Yen to appreciate in value relative to other currencies. If this happens and the company sells its Yen at a higher price than it bought them for, it will make a profit. Currency ETFs are another tool that companies can use for active currency management. These funds trade on exchanges just like stocks and can be bought and sold through brokers. Currency ETFs track baskets of currencies or individualcurrency pairs and can be used to gain exposure to foreign exchange markets without having to trade directly in those markets. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
11
The Five-Step Process For Resolving Any Trading Problem ▶️ There are five steps you can take to fix problems with your trading. First, you need to understand what caused the problem. Second, you need to find a solution. Third, you need to put the solution into action. Fourth, you need to monitor and check the results. Fifth, you need to repeat the process if necessary. 1. Realizing 2. Understanding 3. Embrace 4. Action 5. Consistency 1️⃣ Realizing a trading issue before attempting to solve it is the first step. However, being aware can just mean being able to identify the initial issues with your trading, such as when you are aware that you are trading without using effective risk management. You have the groundwork to build on with this awareness of the issue, so you can proceed to the next phase. 2️⃣ Understanding why you have the problem is the next step after becoming aware of it. Examining it deeply to determine its underlying causes and the reasons behind your behavior. As previously stated, this can be the result of a deep-seated conviction that you don't want to make mistakes or be incorrect. How did you come up with this notion? Perhaps from family; perhaps they reprimanded you for making mistakes? Maybe it dates back to your time in school? Etc. All of this will depend on the trader personally and require some thought and reflection. 3️⃣ The next phase in the process is to embrace them when you have identified their roots and why they occur. In other words, you should acknowledge that these opinions, flaws, or whatever you choose to call them, are a part of you. You can't necessarily get rid of them, but with your improved knowledge and comprehension of them, you will be able to drain their energy. However, once you've accepted them and come to terms with them, you may start taking steps to control them. It results in the following move. 4️⃣ Once the previous steps are finished, you can go on and start putting concrete measures in place to stop them from sabotaging you. You must identify your triggers and when they occur in order to put corrective measures into place. You'll need to learn what triggers your sabotaging behavior and when they happen, and then create a plan to address them. This is where writing can be very helpful, as it will help you track your progress. 5️⃣ Consistency is the process's last phase overall. You must continually monitor your progress and assess if you are following through. You can maintain control by keeping a journal, creating goals, and reviewing frequently. ✔️ Describing the 5 Step Process: 1. Do I know the nature of the issue? 2. Do I understand the root of my problem? 3. Do I admit that I have this issue? 4. Develop a viable plan to stop them. 5. Analyse daily, weekly, and monthly to ensure that I am sticking to my strategy.
Education
by DeGRAM
7
How to choose a broker?Hello everyone! We discuss many different topics in our training articles and today we will touch on a very important topic that everyone avoids. Forex trading is becoming increasingly popular among individual traders due to its immense potential for generating profits. However, with hundreds of different brokers available in the market, it can be quite a daunting task for traders to choose the right one. Choosing the right forex broker can be a crucial factor in your success as a trader. Here are some tips on how to select a suitable forex broker: 1. Look for the Reputation : It is important to conduct thorough research into the different brokers before settling on one. The internet provides a wealth of information on a wide range of brokers. Do not just go for the first broker that you come across but read through customer reviews and opinions to get an understanding of their services. This can be invaluable in assessing their level of reliability and trustworthiness. 2. Analyse Regulatory Framework : Many brokers have obtained authorization from governing bodies in their countries. Before signing up with any broker, make sure to check out the broker’s regulations. In this way, you can rest assured that your money will be safe and secure. 3. Consider Trading Costs : It is essential to find out the fees and charges associated with a particular broker before selecting one. The cost of trading can differ from one broker to another, so make sure to compare the various services to determine which is most cost-effective for your needs. 4. Look for Trade Execution and Trading Platforms : The quality of the trading platform can be another critical factor in selecting a suitable broker. It is advisable to select one that offers an easy to use platform with fast trade execution speeds. Furthermore, check the availability of different trading tools such as charting and analysis options. 5. Check the Quality of Support : It is also necessary to determine the quality of the customer service provided by the broker. Contact the support team directly to assess how helpful and efficient they are in addressing your queries. By following the above tips, you can select the right forex broker and benefit from their services. Investing in forex requires thorough research, understanding, and due diligence in order to increase your chances of success. It is recommended to select a broker that offers competitive spreads and fees, a user-friendly platform, and reliable customer support. Doing so will go a long way towards helping you become a successful forex trader. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
9
HOW DOES THE FED PUSH THE MARKET?Hello everyone! Today I want to discuss with you a very important and interesting topic. This topic relates to fundamental analysis and it will be useful to every trader. Let's go! The US Dollar and the whole world As we know, after the Second World War, the dollar became the main reserve currency. The US economy has grown and become the largest on the planet. The impact of the US dollar on the world seems to have no boundaries. All central banks of all countries are forced to hold large amounts of funds in dollars. Because it is the dollar that makes it possible to make monetary transactions between countries without any problems. Thanks to the growing US economy, it is profitable for countries to invest in US bonds and in American companies. Based on the above, the whole world depends on the US Dollar. The Fed and the interest rate The Fed has one of the most important instruments of influence on the economy – the interest rate. The whole world is watching what the Fed decides on the interest rate. Why? Everything is simple. The interest rate is the interest at which loans are issued to banks. If the interest rate is high, it is expensive to take out a loan and therefore there are fewer loans. If the interest rate is low, it is inexpensive to take loans, and therefore companies happily take cheap loans. How does this affect the market? As you know, companies need funds for growth, one of the sources of funds is credit. If the interest rate is low, it is easy for companies to take out loans and direct funds for development – the company is growing. When companies grow, the stock market grows, people invest in stocks, the market grows even more. On the other hand, if the interest rate is high, it is expensive to take out a loan and companies do not grow because of this, people do not invest in them. And where to invest in such moments? In bonds. The lower the interest rate, the higher the yield on the bonds. Remember this. People still need to invest their funds somewhere, and they choose a less dangerous option than stocks, which will help save their funds, and at this moment many choose bonds, the demand for them has lost, the yield is growing. Interest rate data pushes the market, forces huge amounts of funds to flow from bonds to stocks, big banks take loans or vice versa, all this affects the American economy, on which the whole world depends. That is why it is so important to monitor the Fed data, understand how they affect the market and the ability to correctly interpret the data can ultimately bring you a lot of profit. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSD
by Lingrid
18
QML pattern Quasimodo | SMART MONEY CONCEPTHello all. Today we will talk about the reversal pattern "Quasimodo" or QML. Schematically it looks like this: The price moves in the trend, in POI the structure breaks and after that, the price can not update the previous HH and the downward movement continues (consider a schematic example). In this example, after the breakdown of the structure, the price reverses to soften and remove internal liquidity, after which a reversal occurs. This is done in order to close a losing position at the expense of those who put their stop losses behind the maximum of the substructure. There are many names for this pattern, such as three tap setup, but I'm more accustomed to calling it quasimodo. If you like, it's a reworked version of the "head and shoulders" pattern, but in this case you're focusing on the price action instead of the picture. Criteria for QML formation 1. Use it in HTF POI 2. Watch HTF POI 3.Watch the price action. 4. Premium or Discount zone To use the pattern effectively, you must analyze the chart of all TFs. And use the pattern as an entry model. For example, the daily TF is bearish. The price is in the premium zone, as well as on the H1 TF began an uptrend, a full of bullish trend in the lower TF, after which we see that the substructure (red) has changed from a rising to a descending. And thus, we expect a continuation of the downtrend. Important Don't use this pattern in terms of "drawing". They can draw anything on the chart. I recommend to look for POI in POI of higher TFs. An additional factor could be substructure fluctuations before FWG or OB. You need to see how the price behaves after their update. Where to put a stop loss The first option is a stop-loss for a local FVG/OB The second - above swing high of substrucutre Third - above the HTF point of interest, if your RR allows it EXAMPLE After updating the all-time high, the daily structure was broken. Then price consolidated, it was worth waiting for the manipulation. It was possible to enter from HTF POI - aggressive entry, but it was possible to wait for confirmation on the LTF (as I do). I'm expect bullish OF on 4H chart to HTF POI (2D ob) This "entry into position" is shown as an example, so that you can form an understanding of how to act in this or that situation. In conclusion, the more factors you take into account in your analysis, the higher the probability of working out of the pattern. Also, it's up to you to choose what kind of stop loss you will use. There is no right and wrong, everything depends on your strategy and money management. The position was opened after the second liquidity raid in the premium market. I hope it was helpful to you. Thank you for your attention
Education
by Patronofbargain
DOUBLE BOTTOMHello everyone! It's time to repeat the most popular patterns in trading. One of these patterns is a DOUBLE BOTTOM. Forming There are several factors that you should pay attention to. First, a new minimum appears. This breakthrough is accompanied by increased volumes. Such volumes are fixed by the indicator at this point, because there were a lot of stop orders here and the market absorbed them. After this breakdown, the price begins a correction. Nowhere without correction. The correction is usually made to the breakout level, which used to be support, and now is resistance. Having reached the level, the price turns down again. And here is an important point. If this breakdown is strong, then the price should go to update the lows further. In theory, you can open short positions in the rebound area in the hope of continuing the trend. Then we see the formation of the second bottom. One of the main factors that the price will not fall further is the declining volumes. This is a divergence. From this we understand that forces are shifting to the other side and the trend may change. In addition, we see that the price could not gain a foothold below the first bottom, which tells us about the weakness of sellers. results A double bottom is often found on the chart and serves as a signal for closing short positions and possibly opening long positions. With a proper understanding of this pattern, you can get a lot of profit from trading. The main thing is not to forget to monitor volumes, divergence and candlesticks that indicate the strength or weakness of the trend. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
OANDA:XAUUSDEducation
by Lingrid
23
Learn a Triple Top Pattern | Classic Reversal Pattern You Must 🟢What is the Triple Top Pattern? A triple top chart pattern is a bearish reversal chart pattern that is formed after an uptrend. This pattern is formed with three peaks above a support level/neckline. The first peak is formed after a strong uptrend and then retrace back to the neckline. The formation of this pattern is completed when the prices move back to the neckline after forming the third peak. When the prices break through the neckline or the support level after forming three peaks then the bearish trend reversal is confirmed. 🟢Trading the Triple Top There are some rules when trading the Triple Top chart pattern. ✔️Firstly one should identify the market phase whether it is in uptrend or downtrend. As the triple top is formed at the end of an uptrend, the prior trend should be an uptrend. ✔️Traders should spot if three rounding tops are forming. ✔️Traders should only enter the short position when the price breaks out from the support level or the neckline. 🟢Stop Loss In the case of a Triple Top chart pattern, the stop loss should be placed at the third top of the pattern. 🟢Price Target The price target should be equal to the distance between the neckline and the tops, also taking into the account the key levels below. Like, comment and subscribe to boost your trading! Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
11