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3 Simple Rules of Psychological Risk ManagementIn trading, psychological traps lie in wait for us at every corner, it is a revenge trade or an irrepressible attempt to win back. To help ourselves, we need an analogue of money management, only from the psychological point of view. It is created and adapted to ourselves, that's why I will describe my variant: 1.Stop trading for a few hours/days after 2-3 unsuccessful trades in a row. 2.Then 1-2 positive trades on a demo account or chart. 3.Return to real trading. The rules are simple. They are also extremely effective. But you have no idea how difficult it is for most people to follow them. Unbearably anxious to get back lost money What does a beginner who has lost money in three or four unsuccessful trades in a row do? Ask yourself, what will you do? You are hurt, mentally bad from the loss of money. You're already short of it, and you've lost even more. It's suffocating, it's such a nasty, disgusting feeling. How do you get rid of it, quickly? Immediately, right now? That's right it’s REVENGE TRADE. You start taking the trading as a game. Now tell me this: you've been wrong three times in a row. You don't understand the market phase. What makes you think your next trades will be successful? How do you know? You're not sure. You're just emotionally unhappy. The child inside you is crying and wants his toy back. You want the numbers back on the deposit. That's all your motivation. The only chance of salvation in this situation is to stop, to stop this psychological masochism and strictly forbid yourself to lose even more. If you can’t do this then the market has won. Professionals know how to deal with losses. Amateurs do not. Psychological Stop Loss. When the price goes against your forecast and reaches a certain level, the trade is closed. That's it. You are in a loss. Having lost a part of the capital, you have saved the rest. After 2-3 losses in a row, you need to stop. Most do not know how to do this. But this is what distinguishes a professional from a beginner. A pro knows that everyone loses in the market. Always. Even if you have 10 years’ experience, you still lose money, you just learn to accept it and use your skills to make more money than you lost. That's the job of the market professional to pull the mathematical expectation of the trades in your favor. Losses are always followed by profits, losses again, and so on in a circle. And if you are losing, it is important to make the losing streak stop. A psychological stop loss gives you that opportunity. After 2 to 3 failures in a row you: - Stop trading for at least a few hours. - Stay away from the chart for a couple of hours, to calm down emotionally - Take apart your mistakes and put them in a trader's diary. - After a few hours make some forecasts by the chart - and only after 1-2 successful predictions in a row you switch to the real capital. This is a universal, powerful rule. But it's hard to follow because you have to accept the loss. However, you have no chance of doing that if you haven't learned to accept the simple fact that you are not smarter than the market and losses will happen regularly. You can come up with your own variations, but stopping a trade (psychological stop loss) is a must, without exception. That's the whole point of "risk prevention" you stop when things get bad so they don't get worse. Much worse. For failure to follow these rules not only kills your capital, but also your faith in yourself. Risk and money management is the only thing that stands guard over your capital. The tight union of risk and money management will allow you to pacify your greed and emotions. Save your capital at all costs The saving of capital is the main, key task of a trader. And not at all to make money, as beginners think. It is impossible to do without the correct risk, money and time management. Following of the rules you have created yourself will lead to forgetting what it is like to lose your whole capital on emotions. After all, it's not difficult to stop losing money. You just need to get away from the chart and the terminal. It would seem, what there is difficult? But people who have confused speculative markets with casinos, keep on "winning back" and lose everything. Take care of your money. Use the tools that are designed to do the job. Only then you can make a qualitative leap forward and enjoy all the pleasures of compound interest when profit piles up on the capital you've saved, new profit piles up on it.
Education
by DeGRAM
4
CORRECT AND INCORRECT RISK MANAGEMENTHello everyone! Today I want to remind you about the risks! Risk management is very important in every trade , but most traders are too lazy to act according to the rules, so I decided to remind the basic rules. They look simple, but following them will greatly reduce losses and increase the win rate. Let's go! Correct calculation of possible losses Beginners are AFRAID to think about losses. And even more so to count them! But it must be done, otherwise you will lose much more than you should. Even BEFORE opening a position, you should know how much you are willing to lose under unfavorable conditions. Cut losses and let your profits grow It's strange, but people are ready to quickly fix a profit, but not fix a loss. Premature profit-taking is a normal phenomenon, as is overexposure of unprofitable transactions. why? Because traders are afraid of losing profits and hope that the loss will decrease and even turn into profit. Don't move your stop loss If you followed the first advice and calculated the stop loss, and after placing it you started moving, then you did not understand the essence! Stop loss is very important and it is important not to move it. In each trade, you risk a certain percentage and should not increase this indicator by moving the stop loss. Monitor your drawdowns It's unpleasant to lose, it's unpleasant to analyze your losses, but you have to do it. Without loss analysis, you will not get better as a trader. You have to keep track of losses, you have to analyze trades to improve your trading and not repeat mistakes. Opening positions without risk management Most traders don't think about risk at all, much less risk management. Most of them open trades without risk management and therefore most of them lose all their money. Trading without stop losses The fear of losses and the fear of being wrong leads to the fact that the trader does not set a stop loss. If you do not set a stop loss, know that the stop loss is still set, how? It's simple, in this case your stop loss will be equal to your capital. The position will close when your account is 0. Is it easier this way? Let the losses run Why don't traders close unprofitable positions? As mentioned above, it's all about hope . do you think that the price will sooner or later go in your direction? Perhaps. But by that time, most likely you will already be closed by margin call. Ignoring drawdowns and other important indicators of risk management Ignoring is a favorite thing of novchikov. They think that they have understood everything, they think that the market will spare them. Unfortunately, the market doesn't work that way. Risk management was invented long before you and will be and will be used after you. And all because it works and without it YOU CANNOT BECOME a SUCCESSFUL PROFESSIONAL TRADER . And then it's up to you who you want to be. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
18
QNT//USDT Simple rules of risk management and trading strategiesCoin in the Coinmarket: Quant This coin is for work as an example no more, now there are many similar ones with similar trading situations. On the chart showed the trend, the figures that are formed, the support / resistance levels. The figures show the potential entry points in case of a breakthrough or holding the support/resistance zones depending on your trading strategy. I cannot know how you trade or what strategy you use. You have to adapt my information to your trading strategy and first of all to your risk management. Some simple tips for your work: 1) I advise you not to be like everyone else and not to expect super target. The target must be adequate. The smaller you set target, the more you will earn at a distance. When the price of a coin is rising through most of the volume, it is advisable to work locally up to +80%, so you will always have money to re-buy from the profits. 2) Complex % (using volatility) does its job. It can be used (the principle) not only on one coin (accumulation), but also on several coins without paying attention to the name of the coin (to accumulate profits from coin to coin). They should not be very many. 3) Remember—the level is not a line, but a zone. It is rational to work with a grid of orders. 4) If possible, protect your profits with a trivial stop loss. But do not place it too close to the main intraday volatility zone. 5) Do not work with a large number of coins, there is no need, they are all the same. Their rise in price depends primarily on the general situation on the market and in the world. 6) Take into account the phases of the market, including local character. Creators of individual crypto-funds will not raise the price against the general trend if people are afraid to buy at that time. Playing against the trend is more the exception to the rule. There is a time to buy, a time to sell, and a time to watch. The third phase should take you the longest. Most people are only in phase one, regardless of the overall trend. Don't be like that… 7) Trade with your thought-out algorithms (trading strategy + risk management + experience), not with emotions. Those who lose money in the market—trade with emotions and ill-considered fantasies – desires. The basis of your profit is your trading strategy and compliance with risk management based on your experience Recommendations for trading strategies: 1) If you work in shorts, be sure to put stops and use adequate minimum leverage. Margin trading is a nightmare for an inexperienced and very greedy market participant. 2) When working in the spot on medium liquid coins, it is more rational to wait for a breakthrough in the downtrend and on the pullback after the momentum with a significant (important) buyer volume to enter the market. It's better to buy a bit more expensive, but with more confidence that the trend has changed. But, it is not a panacea, can after a breakthrough and holding the price a certain time—the continuation of the downtrend. Options for solving the problem: a) stop loss. b) Money cushion. c) The first and second options in place. 3) If you really want to buy some crypto-coin before the break of a trend (you are afraid of not having enough time or you "know the exact future”), then don't buy with all the amount allocated to this coin. The first purchase (especially before a trend break) should not have a big % of the main planned volume. a) If the price goes against your initial purchase and decreases—work martingale from the specified levels (in addition to the position) to average the average purchase. b) If the price rises strongly by impulse, and you bought a small planned amount, then there are two options in this case: 1) Wait for a pullback and on the pullback to finish (but still not for the whole amount, you should have at least 20-30% cache at any pumping). 2) the second option, if the price has strongly increased and there is no substantial rollback—work with the volume, that is, and the rest of the money allocated to similar coins, which have not had time to grow in price.
Education
by SpartaBTC
17
HOW TO IDENTIFY POTENTIAL SUPPORT AND RESISTANCE 1️⃣ Previous Lows and Highs The highs and lows act as potential support or resistance levels. The highs, in general, are extremely important because many market participants are constantly staring at them, entering the market either at or near the high. The human psychology is a funny to observe when the price goes against them. People do not take a loss and do not close a position but keep it and hold on, because psychologically it hurts less, than when you have closed the position and fully realized the money is lost. Accordingly, when the price returns to the previous maximum, those who bought at this level have an irresistible desire to close the position and get to zero, and begin to close their positions frantically. Those who bought below it usually want to take profits at the old maximum, because they understand it psychologically. Any prices higher than the maximum seem to be too expensive to potential buyers, and people get upset and leave such a market. When the price accelerates and falls to the previous minimum, these low prices begin to attract buyers. At the end of the day, they missed the first price return to that level and are now grateful for a new chance. For the same reason, sellers are extremely reluctant to part with their money when the price returns to the previous low, because they have seen a pullback from that low before! And so, they think, "why don't the price bounce again?Unfortunately, there's no way to tell in advance which level will be support and which will be resistance, and there's no way to say with certainty that it will work out the way we want it to. That's why any levels are just areas of interest where we expect a potential, temporary reversal. Accordingly, we will need help from other indicators, say oscillators. 2️⃣ The magic of round numbers Support and resistance love to form around round numbers. The reason is clear, all these 10, 50 and 100 are the simplest psychological markers on which traders justify their decisions. In the 1970s, the Dow Jones Industrial could not get broke the 1,000 level. Gold in the 1980s and mid-1990s was always hanging around the magic $400 level, and so on. The round level is a potential pivot point that we are interested in 3️⃣ Trend lines and moving averages are dynamic support and resistance levels A good trend line always reflects the underlying trend. One of the simplest rules for determining the significance of a line is how often price has touched or approached it. The more, the better. If price keeps coming back to a low, that level becomes a strong support zone. A similar rule works for trendlines and moving averages. Every time price returns to a trendline or rising moving average and bounces back from it, the line or moving average becomes a dynamic resistance level. The same works for downtrend lines and moving averages. Therefore, when price returns to an uptrend line, the buy option becomes interesting and the sell option becomes interesting if price touches the descending line or moving average. In this case, an excellent low-risk stop loss can be placed under the line or the sliding line. The principle is the same as if we were building a house and increased the thickness of the roof. The same principle works when the moving average and the trend line are at the same level, they trivially double the strength of the resistance level (or support, if the price goes up). 4️⃣ Emotional zones on the chart indicate possible support/resistance levels An emotional zone is a place on a chart where the price, going in a strong steady trend, encounters an abrupt, literally explosive reversal on the formation of the next candle/bar. Gaps are another example of emotional zones. Gaps are formed when buyers or sellers react so emotionally to news that an empty space aka a "gap" forms on the chart. 5️⃣ Proportional movements and pullbacks If we paraphrase one of the laws of dynamics, we find that for every action there is a counteraction. Prices formed in financial markets reflect nothing less than the psychology of the crowd in motion, so the laws of dynamics apply to them in full measure. As a result: It is the changing emotional state of the crowd that we often see in proportional price movements. Perhaps the most famous principle of proportionality is called the 50% rule. For instance, many bear markets, if followed through the DJIA index, lost half their value. In 1901-1903, 1907, 1919-1921, 1937-1938 markets fell by 46, 49, 47 and 50%, respectively. The first phase of the 1929-1932 bear market decline ended in October 1929 at 195, which was exactly half of the September high. Past the halfway mark often serves as a balancing act, often hinting at further price movement or an important reversal ahead.
Education
by DeGRAM
12
What is the Triple Top Pattern❓ 🟢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. Thank you for reading! Please give a Thumbs UP and Leave Comment👍🏻
BITSTAMP:BTCUSDEducation
by SignalProvider
8
Bitcoin reached the bottom?Hello everyone! Today I want to analyze the Bitcoin chart to determine the long-term direction of price movement. I took a weekly chart from 2012 to 2017 (left) and from 2019 to the present (right). 2013 Divergence The first peak was formed on April 8, 2013 . The price at that moment reached $266 . It is from this point that we begin to monitor the price movement and find patterns. The oscillator readings also indicate the formation of a peak and so far there is nothing unusual - the chart and the price show the same indicators. The next peak was formed on November 25, 2013 . The peak was $1,242 . The price updated all the previous maxims, went up very much. And if you look at the oscillator graph, you can see that the readings of the graph do not correspond to the readings of the main graph, because the oscillator has not updated the previous maximum. This is a divergence, and a very strong one, because the price went above the first maxim by 360% ! And this distance was covered in 231 days . Fall After such a strong divergence, the price began a long decline, which lasted 630 days . The drop was equal to 88% , the price decreased almost 10 times! Bottom In September and October, many shouted that the bottom had been reached. Many opened positions and lost millions. As we can see, the price found the bottom only at the moment when the level from the first peak was reached. It was in this area that the formation of a double top began, which is a bullish pattern. Height After reaching a significant level of the first peak, the price began to grow aggressively. During the same 630 days , the price updated the maximum ($1,242) and showed an incredible 660% profit! As we know, the price went well above $1,242... 2019 Divergence On January 24, 2019 , the price formed the top of $13,870 , in addition, the oscillator also showed a new peak. The price and the indicator worked the same. After that, as many as two vertices were formed: the first vertex - April 12, 2021 64898$ ; the second vertex - November 8, 2021 68997$ . the price has risen from the first peak of 2019 by as much as 376% ! Both peaks, according to the oscillator, were lower than the first peak of January 24, 2019. This is the divergence. Fall After the last peak, the price is still in a strong downtrend. At the moment, the drop is more than 70% . The peak of 2019 has not yet been reached. It is now September and many analysts again claim that bitcoin has reached the bottom. Is it so? Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
INDEX:BTCUSD
by Lingrid
29
INTRADAY FOREX TRADINGGreetings everyone. Today we are going to talk about such a difficult topic as intraday forex trading. The tips below will be helpful to any intraday traders. 🔷 Don't chase the number of trades. Select the most obvious setups. You have opened a chart. There are no setups. You zoom in the picture, change the timeframes, looking for some reason to enter the market. Does this situation sound familiar? The fact that you, following the stereotype "intraday trading is a lot of deals, almost every minute", really want to open a trade, and then some more. Only this is not trading based on the system, but trading at random. What does it lead to? I think you've guessed it. Enter only when you see a clear, text book setup. Enter the market only when you see clear setups. Ignore confusing, unclear situations. Just wait for clear entry signals. 🔷 Limit the Number of Traded Instruments Intraday trading requires quick and clear actions. There is no time for long thinking. So, a large number of trading pairs will only confuse and distract you. You don't need 20 charts when trading intraday; limit your portfolio to two or three instruments, no more. In the beginning, I would advise to trade no more than one pair. 🔷 Risk no more than 1% of your deposit in each trade The psychological pressure is very high when trading intraday. It is very easy to get enraged by a couple of losing trades and start making more and more mistakes trying to win back. It is very hard to stay calm, risking 5-10% of deposit in every trade, because we open trades quite often during the day, and there is just no time to calm down, to assess the situation thoughtfully and without emotions. So, the best variant is to risk only a small part of your capital. That in case of a string of losses you will stay morally steady and be able to continue trading in order to recover these losses later. Try to aim not to earn much at first, but to earn steadily. 🔷 Monitor the news The release of important economic data can easily turn the market in either direction. And while this factor is neutralized by the timeframe size when trading on daily charts, in intraday trading you have to pay attention to news releases. Do not trade half an hour before and after the news release. If you see some kind of Price Action setup, but half an hour later the news comes out just wait. After the news release, if the market moves in the direction indicated by the setup, you can enter the market. But not before the news release. 🔷 Watch the higher timeframe Forex charts of the same currency pair can be completely different. It all depends on the timeframe, on the selected timeframe. And if you trade, for example, on H1, then it will be useful to look at the higher timeframe like H4. But we have to do it wisely considering the stage of the event on the higher timeframe. 🔷 Limit your profits / losses for 1 day First, never set yourself a goal: to make N points in one day. This leads to looking for non-existent points to enter the trade, feeling angry at the market, and in the end, there are just quiet days when it's hard to extract your N pips even in theory, let alone in practice. I'm talking specifically about setting limits. A kind of total take profit and stop loss on trades within one day. It may seem silly at first sight, but this approach helps a lot in maintaining the discipline which is so important in intraday trading. 🔷 Consider the daily volatility of the traded pair Let's assume you know that the average distance from the High point to the Low point of the daily candlestick for pair X is 100 pips. If your profit on a trade opened during intraday trading was about 70-80 pips, then it would be logical to close the position, because the potential for movement is almost exhausted. Likewise, if the price has already gone 70 pips in the trend, and a new pattern appears in the same direction, it would be quite stupid to open a new trade, because the price is about to "run out of fuel". 🔷 Do not leave the position for the next day A serious error of beginners is to leave open positions overnight. Think about it: why should the set up that you found intraday be valid tomorrow? The market has long forgotten about it. The traders have a lot of new data, signals, someone has opened positions on higher timeframes, and so on. So why should your position hold? By leaving open positions overnight you are simply playing roulette, trying your luck. And luck has no place in Forex. So, in order to avoid unnecessary losses, if at the end of the American session you have open positions, no matter what just close them.
Education
by DeGRAM
20
How to Read A Price Chart▶️ How Does the Market Move? At any given point in time, the market is likely to be moving in one of three directions: up, down, or sideways. Which direction is up? Which direction is down? And which way is sideways? When the market is moving up or down, it is said to be in a trend. When the market is moving sideways, it is typically in a period of consolidation. There are two types of trends that markets can be in: a bullish trend continuation trend or a bearish continuation trend. ▶️ Bullish Trend Continuation: Buyers can control price action when the market is in a bullish trend. This market identified by price action that has started at an Initial Low and continued to rise up, achieving a New High when it breaks and closes above the previous high. As the market retraces, price action will continue to fail to break and close below the most recent structure lows. This will create a Higher Low. As the process repeats itself, we see a pattern of new highs and higher lows being created. This pattern reflects the changing dynamics of the market, and provides insight into the market's future movements. When price action is presenting this type of pattern, trend continuation traders should look for opportunities to buy in the market. ▶️ Bearish Trend Continuation: A bearish trend continuation pattern indicates that the current downtrend is likely to continue. The sellers have taken control of the market and are looking to drive prices lower. This process is identified by price action starting at an initial high and then moving downward. This creates a new low as it breaks and closes below the previous structure lows when looking left. As the market pullbacks, price action fails to break and close above the most recent highs. This has created a Lower High. As the process repeats itself, we see a pattern of new levels being created, followed by decreases in the level of the old level. If you're a trend continuation trader, be on the lookout for selling opportunities in the market. ▶️ Consolidation: When the market is in a period of consolidation, it is difficult to tell whether it is heading in a bearish or bullish direction. Instead, price action is “choppy” as there is no clear directional movement. During the period of consolidation, trend continuation traders should be careful when looking for trading opportunities. ▶️ Support and Resistance After the formation of a New High, the market will retrace and create a higher low. When a movement occurs, the now-forming area of resistance is an indication that something important is happening. As price action pushes up from the newly created higher lows, that resistance level becomes the last line of defense for sellers to try and stop the buyers from rallying. Failure to break through the resistance level could indicate an uptrend period or reversal. If the price moves past the resistance level, this means that the trend is continuing. Remember the previous NH that turned into resistance after the retrace? Well, once this resistance level is broken, it becomes support. If price action retraces back down from our recent highs, this structure level should support the overall trend. ▶️ Forming Structure: To create a valid new structure high or low, we need to watch for the market to break and close above/below the previous structure. When a trend is bullish, the market can create a "Higher High" near or above the highest point reached in the trend. When a trend is bearish, the market can create a "Lower Low" by trading near or below the lowest point reached in the trend. In order to have a valid Higher High, Higher Close, we need a candlestick that breaks and closes above the previous candles' all-time highs. It is only after we have generated a new structure that is highly formed that we can consider it to be a valid one. If you are looking for a bearish trend, simply use the opposite. ▶️ Why Is Structure Important? Structure is important because it can help you predict where price action is likely to go. Previous support and resistance levels in the market act like a magnet, pulling price action towards them. When price action reaches high levels that have been hit multiple times in the past, it is considered to be a major structure level. It is important to pay attention to the main structural levels, because it is likely that the price action will be related to these levels. Smaller ebbs and flows of a trend can be detected inside minor structure levels. These levels serve as both support and resistance, although they lack the strength of the primary structure levels indicated above.
Education
by DeGRAM
8
COMMON CAUSES FOR OVERTRADING👋 Hello, fellow Forex traders! Overtrading is the most common problem, especially for traders trading on lower timeframes. It can arise for a number of reasons, so if you don't know what the main purpose of your trading is - i.e., what instruments you trade on, how you trade, what your trading strategy is, your motivations, personal styles and your trading and personal history I will give some explanations why traders become addicted to trading and give some possible solutions to this problem, hoping that among them you find your own solution. In order to determine when you become overly active, you need to have some basic criterion with which you can build off and thus be able to determine the amount of deviation from this value - it could be, for example, the number of trades made or your trading volume. Of course, there can be situations where a high trading frequency is acceptable, such as when markets are volatile and there are significantly more trading opportunities than usual. 1️⃣ Emotional Trading This happens when a trader trades forex, transfixed by feelings of excitement and pleasure, rather than for profit. Just like most people who play in a casino. If your goal is solely to have fun and get emotionally excited, then you must also realize that in the long run you are likely to develop an addiction to trading, and you are unlikely to profit. If you want to profit from your trading, then you need to change your goals, forget the fun and excitement, and move to a more professional and structured approach whose desired result would be trading productivity expressed in monetary or percentage terms. 2️⃣ Lack of trading strategy When a trader does not have a rule-based strategy and, therefore, any parameters for determining when to trade and when not to trade, any price movement in the market tempts him. In this situation traders are very prone to chase trends and often find themselves buying when the trend is down and selling when the trend is up. They get the impression as if they are doing everything in vain, as if the market is watching their actions. Do you know this situation? The most important thing you can focus on is developing your trading strategy, which clearly identifies whether there is a particular trading opportunity, fundamental data, technical analysis or a combination of both. This will help you become more selective in your trading. 3️⃣ Boredom In a quiet market where traders spend most of their time in front of their computer screens, there will be times when there are weak or no trading opportunities. It’s time when traders can get bored. These are natural periods in trading. For some traders, this can be very challenging especially for beginners, traders whose trading activity is based on emotional excitement, who work on enthusiasm. An important question you should ask yourself is the following: "Am I trading to relieve boredom or to make money?" 4️⃣ You need the money This is one of the worst situations in trading. It is a strong and powerful state, but it will not contribute to good trading overall if your decision-making is focused solely on making money and not on your trading strategy. Evaluating your financial needs and the effectiveness of your trading is very important. And you don't have to adjust your search for entry signals with what you don't have enough for beer. Any action you can take to alleviate your acute need for money will be a big step forward for you. 5️⃣ Enthusiasm in Trading Novice traders are full of enthusiasm. Traders who are entering new markets and using new trading methodologies also tend to be more enthusiastic and passionate. While this enthusiasm is undoubtedly a positive quality, there is also a dark side to it, seeing it as excessive enthusiasm and looking for any opportunity to open a trading position. Maintain your enthusiasm, but channel it into developing your trading strategy and discipline. If you have certain trading considerations, practice them on a simulator/demo account, where costs are obviously much lower. 6️⃣ Lack of Patience Traders who suffer from a lack of patience become addicted to trading because they will take opportunities that are not part of their trading strategy, and thus they will naturally make more trades than necessary. Develop patience in yourself, look for opportunities to analyze the markets, and take the time to just look at them rather than act on them. You might want to try practicing self-awareness to help identify and work with overcoming the desire to alleviate feelings of impatience. 7️⃣ Revenge Trading This is when traders have lost money in losing positions, making mistakes or accidentally opening positions, etc. and are usually eager to "get their money back". Despite the fact that the goal of such behavior/thought is positive, the subsequent behavior usually is not. Simply put, a desire to "get even". Traders chasing their losses will deviate from their trading strategy by opening positions that are probably profitable, whether they are consistent with their trading strategy or not, for, according to their psychological mindset, their goal now will be to make money, not to stick to their trading strategy. If you have incurred major losses or lost a large amount of money in a number of trades, you should generally take a time out. This timeout will allow you time to redirect your trading state and refocus, and most importantly, it will break the "losing money → feeling angry → wanting your money back" behavioral pattern. Time out breaks this behavioral pattern and allows you to refocus - use breathing and relaxation techniques or take a slow walk that will help you dilute your emotions and reduce your desire for revenge trading. 8️⃣ Fatigue When you are tired, physically or mentally, your brain does not have enough energy to function at full capacity, and with low "fuel" your work will have low levels of self-control. It is self-control, not a trading strategy, that is needed to engage the brake in your brain to stop your trading, and that requires a source of energy. When you are tired and your fuel level is low, your self-control will also be low, there will be more chances for excessive and unreasonable trading. Rest and glucose (which we get with food and sweets) are the two main factors in optimizing brain function on the energy level. When you trade, you must be firmly convinced that you are awake and full of energy. ✅ Thus, there are several reasons why traders overtrade, and I have provided you with some possible solutions to help you overcome them. Analyze which one might be most appropriate to your situation, test them out and write about them in the comments.
Education
by DeGRAM
8
Will Credit Suisse repeat the fate of Lehman Brothers?Information has appeared on the Internet that the Swiss bank Credit Suisse is highly unstable. Recall that Credit Suisse is the second largest Swiss financial conglomerate after UBS. This bank covers a large volume of the banking market around the world and if Credit Suisse has problems, the entire world economy will feel it. The bankruptcy of such a financial institution may also have a negative impact on the cryptocurrency market, since when banks liquidate unprofitable leverage positions, they primarily cut over risky assets, to which the crypt belongs. A Twitter user under the nickname Alex Good analyzed in detail the future financial results and compared the current situation at Credit Suisse with the bankruptcy of Lehman Brothers: twitter.com Some conclusions: 1. CDS (credit default swaps) - a credit instrument that allows you to hedge the risk of bankruptcy, Credit Suisse bank has exceeded 250 points, which is higher than the maximum of 2009 (the previous financial crisis) 2. Bonds nevertheless show a yield of only 6.4%, which is not significant and does not indicate bankruptcy (yet). 3. CET1 capital adequacy is an indicator of comparing a bank's capital with its risk-weighted assets to determine its ability to withstand financial difficulties. Credit Suisse has 13.5% (against 10% of Swiss claims, 8% of international claims), at the height of the crisis of 2008-2009 - this indicator was often 5% for banks. 4. The bank has several sources of influence on future financial results: A) money management fees for rich clients B) losses of an investment bank that lost substantially during the bankruptcy of Bill Hwang from Archegos C) penalties for losses from point B D) unprofitable fund "All Funds" 5. The fall in the price of Credit Suisse shares reflects the forecast of the financial result (-70% to profit) of the bank 6. The bank profits from the increase in rates in the markets, focused on large Chinese clients, after finishing work with the Russian market 7. Asian clients, despite falling markets, make 3 times more transactions than American clients. 8. Several transactions related to the issue of bonds can bring a significant loss to the bank, including a loss from investments in the European leverage index of loans, which generates up to $245M of loss. 9. Also on the horizon is the problem of losing $600M from holding the debt of Citrix. 10. The litigation concerns the corporate culture of Credit Suisse bank, an ex-employee managed to bring a loss of $1.27B to one of the clients and successfully hid it. And here the question arises - is Credit Suisse and the entire market in danger of repeating the history of Lehman and have we lost sight of the new black swan? An incident of this scale can bring a financial tsunami to the most risky markets of technology stocks and cryptocurrencies, and the current level of BTC $19K can become the level of $6K BTC in 2018 (it is worth recalling that at the beginning of 2018, bitcoin dropped to $6K, and when the whole Twitter thought that here it is super-large and from here only up - BTC abruptly went to the $3K area (just at the peak of the quantitative tightening program from the Fed). Another news came out today: Credit Suisse $CS has stepped up efforts in recent days to sell or reduce stakes in key companies as part of a planned restructuring to remake the bank – WSJ. By the way, the name of the chairman of the Board of directors of Credit Suisse - Axel P. Lehmann - is nothing but a smile of fate. What do you think about the future of the global economy? Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
by Lingrid
7
VET/BTC Expanding Triangle Clamping the price before the impulseLocal trend. Time frame 1 day. Expanding triangle. Coinmarketcap: VeChain Price squeeze during “market doubt”. A zone of price squeezing in a narrow range at the moment of uncertainty (doubt) of the market in general. Clamped by large orders in the required buy/sell range on liquid exchanges. The range is spammed with orders, basically a bot is triggered to make the trades visible and to “protect” the large orders (so as not to “grizzly”, but if they gnaw—"go down steam"). Small exchanges themselves will “pull up” in price over time. It works the same way (first of all) in pairs also to dollar, but the step is bigger (it is more difficult to hold a range). In pairs to bitcoin, it's easier to do due to smaller % of step (crypto price). The lower the price in satoshi, the more effective step clamping (range holding) is done. Unfortunately, here on the site it is impossible to show the order stack, it would be more obvious, the chart is a consequence, not the root cause. The meaning of the action—before a strong impulse up/down price movement, does not matter. You, unlike hamsters (those who are constantly losing money) cannot know exactly in which direction the market will locally go. The impulse (exit) is made under the general market trend (direction of movement). There are exceptions, but it is more about low liquid altcoins during the so-called “market window” (it is now). It helps a lot to move the price impulsively at such moments (decoupling): 1) stops (“market fuel”) 2) scalpers of course 3) oppositely tuned (in most cases, but not always) crowd (the main market participants) at the moment, that is the cloned behavior of people. This is what the expanding triangle area looks like on a line chart. This is what this "price squeeze" looks like locally. On a linear to understand the without the "market noise". The graph is a consequence of the sense of action in the glass.
by SpartaBTC
16
DOUBLE TOPS/BOTTOMS🔵The double top and double bottom are a pattern that can be used to find a counter-trend trading opportunity. This pattern can also be used as an entry technique in the markets. When this pattern is seen, the market is signaling to traders that a particular level of structure is important because price action is refusing to break and close above or below it. A double top and bottom are a sign that the market is failing to break through previous levels. When identifying a trend continuation pattern in bullish market, the trader is looking for a new high in a price action, followed by a pullback, followed by the market again hitting a new high. In cases of a double top, the market does not rally high enough or close above the previous top, indicating that the price action does not have strength to break through the previous level. 🔵 Filters Although it is possible to trade the double top and bottom successfully as mentioned above, I have added a few filters to eliminate some of the false signals and to be sure that I take only the high probability trades. There are many different filters that you can use when trading, but the main one I use is the Relative Strength Index (RSI). I look for overbought and oversold conditions as well as divergence to help me make decisions. When identifying this pattern, I first look for the RSI to be overbought for double top and oversold for double bottom. If this happens, then I have a valid trigger bar. After price action retests the trigger bar, I look for divergence. 🔵 Divergence: A divergence between the RSI and price is formed when the two send contradictory signals. If price is producing repeated high and lows, the RSI should also be trending up. Divergence occurs when price is producing higher highs and higher lows, yet the RSI shows a higher high, then a lower high. In the case of a double top, as price action gives us an initial high (trigger bar), followed by an equal high (the retest), the RSI usually prints a lower high, suggesting that the trend may be losing momentum. 🔔 The best place to put stop loss is above or below double top/bottom. As with any trading technique, your stops for this pattern will ultimately be up to you and I would advise that during your back testing you test out multiple areas, but here are some common rules that I use for this pattern. When placing a stop on a double top and bottom, I will take 1-2 ATR way and put it above or below the high and low of the pattern.
Education
by DeGRAM
8
Bites Of Trading Knowledge For New TOP Traders #16 (short read)Bites Of Trading Knowledge For New TOP Traders #16 ---------------------------------------------------------------- What is liquidity and what is its significance? - Liquidity refers to the availability of a product and ensures market participants have the ability to buy and sell easily. A liquid market increases the likelihood for finding a counterparty when entering or exiting a trade. What is volume a measurement of in trading? - Volume in trading refers to the total number of contracts exchanged between buyers and sellers of a market during trading hours over a given period. Higher trading volumes are considered more positive than lower trading volumes because they indicate the availability of orders in the market allowing better order execution during the trading session. What is open interest in the derivatives market? - Open interest is the total number of outstanding derivative contracts, such as options or futures that have not been settled for an asset. Open interest equals the total number of bought or sold contracts, not the total of both added together. Increasing open interest represents new or additional money coming into the market while decreasing open interest indicates money flowing out of the market. RISKS AND OPPORTUNITIES FOR CORPORATES AND INDIVIDUAL INVESTORS - Common application of financial market instruments for managing risk and opportunities. Diversification: Futures Spreads with Currency Futures A futures spread is usually created when one futures contract is sold simultaneously to the buying of a second related futures contract in order to capitalize on a discrepancy in price. Currency futures spreads combine the use of different currencies usually paired to the U.S. Dollar with the same contract month to express a relationship between the two currencies usually taking into account their strength or weakness relative to each other. For example, the Singapore Dollar (USDSGD) may be seen to be strengthening (price movement is downward) while the Chinese Yuan (USDCNY) may be seen as being very weak (price movement is upward). To take advantage of this observation, we would want to buy Singapore Dollar (sell the USDCNY future) and sell the Chinese Yuan (buy the USDCNY future) and as a result eliminate the U.S. Dollar. However, it must be noted that not all currencies are quoted in the same way like the Australian Dollar futures is quoted “AUDUSD”. It means then that to take advantage of a strong Australian Dollar and a weak Chinese Yuan quoted as “USDCNY”, an investor would need to buy both the AUDUSD future and the USDCNY future. TRADDICTIV · Research Team -------- Disclaimer: We do not provide investment advice, nor provide any personalized investment recommendations and/or advice in making a decision to trade. Before you start trading, please make sure you have considered your entire financial situation, including financial commitments and you understand that trading is highly speculative and that you could sustain significant losses.
ICESG:SDX1!Education
by traddictiv
HOW TO SPOT A REVERSALLet's see how the characteristics of a reversal and a pullback differ. 📈 A pullback: - Usually occurs after a strong price movement; - It does not last long; - The fundamental (macroeconomic) data does not change; - In an uptrend there are hints of its continuation, similarly for a downtrend. 📉 Reversal: - Can occur at any time; - Long term; - The fundamental data is changing it is often the reason for the reversal; - In an uptrend there is no hint to its continuation, the buyers' strength decreases (and vice versa for a downtrend). Unfortunately, there are of course no guaranteed methods to determine where there is a pullback and where there is a trend. I would buy this one for any money, and everyone would buy it. That is why it is determined by a number of different instruments, from a simple multiframe analysis and trend lines to various systems. 🔴 Reversal: Fibonacci Levels Although I myself am not a fan of Fibonacci levels and its many counterparts, it seems that everyone uses them but me. Let's listen to the practitioners of this tool, since the market likes it so much. According to them, statistically, pullbacks most often occur at levels 38.2%, 50% and 61.8% those Fibonacci retracement levels. If price broke through those levels, it could very well be a trend reversal. But technical analysis is not science, so we will always deal with probabilities. In the case of Fibonacci, pullbacks are identified like this: As you can see, each pullback tests a certain level before reversing further along the trend. And this repeats itself. But if price were to confidently break through these levels one after the other, that would indicate a long-term reversal. 🔴 Reversal: Pivot Points Another method of determining the reversal is the use of the pivot points. In an uptrend, the lower support points (S1, S2 and S3) will act as conventional levels, breakout of which can indicate a change of trend, but not a reversal. And vice versa for resistance points (R1, R2 and R3). Breakdown of these levels is another hint to a reversal. 🔴 Reversal: Trend Lines Trend lines are generally an elementary method of determining if a trend has changed or if it is a pullback. If you combine trend lines with candlestick combinations and price action patterns, you can get really impressive results. 🔴 Reversal: Price Highs and Lows Finally, my favorite method for identifying pullbacks and reversals is to use the basis of Dow theory: price lows and highs. The simplest technique for this is described by Martin Pring. Pring gives the simplest explanation that improves the basic understanding of any market. 📊 Market condition of price As you can see, using simple techniques, we can build up practical decision options for determining whether price is reversing or going further along the trend. Trends, pullbacks, and consolidation are the three pillars of any market. I also advise you to be extremely attentive to candlestick combinations in reversal zones, whether it be trend lines , pivots , or other tools. Study them. Keep screenshots. Look for them on the history. Do not be lazy. This is the only way to learn, over time, to better identify price behavior. At some point, you will feel it on an intuitive level. But this is just a continuation of your trading practice, which has moved, after many months of practice, to a new level. Experienced drivers don't think about when to squeeze the clutch and when to change the gear stick. Not only that: they can even feel the dimensions of the car. Seemingly unbelievable thing: you are inside and you feel that there is 5 cm from the bumper to the sidewalk. In trading, you just have to reach a similar level of intuitive perception based on hours of theory and practice. Therefore, the specific instrument is not so important. Much more relevant is your level of proficiency in it.
Education
by DeGRAM
6
do NOT do this !a very obvious visual but necessary to share, I don't want any of you to fall into this madness of praying for a trade to work this is a reminder to not fall into FOMO trading to counter this, you need to remind yourself about the type of trades you are into, are you in an intraday swing, are you on a big swing that could take weeks or months to happen ? then, lower your expectations and place a partial TP at 50% of your expectations and then, move stop loss to stop gain This will make a big difference in your PNL, in your trading perfomance That's what proper trade management is
BITSTAMP:BTCUSDEducation
by kaiju_crypto
American Trading SessionThe American trading session is considered the largest in terms of volume and strength of market movements. All this is connected with the American economy, which is larger and stronger than the economies of other countries. The ability to correctly identify and use market fluctuations in the American session will help everyone earn a lot and quickly. The opening hours of the American trading session in New York are from 8:00 to 17:00. The largest financial platforms in New York and Chicago create the main activity of the American trading session. Trading sessions At 9 o'clock in New York, the largest market in the world opens - the New York Stock Exchange. At this time, the giants of the financial world come into play and the market is gaining momentum. An hour later, another major exchange opens, which is called the commodity exchange, the Chicago Mercantile Exchange. Due to the overlap of the two sessions of London and America, there is a lot of activity and a lot of volume at the beginning of trading. High activity is observed almost throughout the entire session and stops when the offices of financial giants close in New York. After about one hour, the offices in Chicago also close, marking the end of the session. Assets With the opening of the American trading session, trading begins on large platforms in the USA, Mexico, Brazil, Canada. In Canada, during the American trading session, trading opens on the TSE and CSE exchanges in Toronto, ME in Montreal. At the same time, trading starts on the Mexican Stock Exchange BMV. During the American trading session, the largest Brazilian exchanges also begin trading: Bovespa in Sao Paulo, as well as BVRJ in Rio de Janeiro. During this period, key indices are traded: NASDAQ is a group of stock indices of five thousand companies listed on the exchange of the same name. XAX is an index traded on AMEX and reflects the dynamics of stock prices and depositary receipts of all companies traded on the exchange. The Dow Jones is one of the largest indices in the United States, including securities of organizations in almost all industries, except transport and utilities. The S&P 500 is the stock index of the 500 largest companies on the NYSE and NASDAQ. S&P/TSX is an index of high–capitalization companies whose securities are traded on the TSE. Mex IPC is a Mexican stock index that includes securities of 35 large companies traded on the Mexican BMV. BOVESPA is a Brazilian index based on the securities of 71 large companies traded on the exchange of the same name. Thus, the American trading session takes place during the work of the world's largest exchanges, where most of the most significant stock indices are traded. Currency pairs The pairs that include the currency of one of the countries of this session have the greatest volatility during the American session: Pairs with the US dollar: AUD/USD, EUR/ USD, GBP/ USD, NZD/ USD, USD/BGN, USD/CAD, USD/CHF, USD/CZK, USD/DKK, USD/HKD, USD/HUF, USD/ILS, USD/JPY, USD/MXN, USD/NOK, USD/PLN, USD/RON, USD/RUB, USD/SEK, USD/SGD, USD/TRY, USD/ZAR Pairs with the Canadian dollar: CADJPY, CADCHF The volatility of the euro–Mexican peso pair is also increasing. Features By right, the American trading session is considered the most active session among others. The main reason is the large economies of London and America, which are trading simultaneously at this time. As you have already understood, the high volatility that is observed during the American session is capable of destroying any trader's account. It will be extremely difficult and dangerous for beginners to trade at this time. The beginning of trading is considered an excellent time for scalpers, because during these hours there are strong price jumps, since strong movements can literally earn a decent profit in minutes. After 11:00, sharp unexpected jumps may occur in the market caused by the actions of large American players, often working together and trying to get maximum profit by reducing the number of players in the market after the closing of European trading. Before the weekend, during the American trading session, there is usually a pullback on the main trends, since Japanese investors do not trade, European investors leave for the weekend, and American investors try to lock in profits and not leave positions for the next week. Conclusion The American trading session is the most volatile part of the entire trading period. During this period, it is worth making transactions with caution, since powerful movements caused by large players are not uncommon. This session is best suited for scalpers due to fairly strong fluctuations within the day, when a fairly large movement can be taken in a short period. The most careful approach should be taken to assets related to the US dollar in one way or another, and, accordingly, follow the US news published mainly at the beginning of the session.
Education
by Lingrid
12
S&P 500 - Deep Analysis and Trade PlanHey traders, I figured I'd share my ideas for swinging and day trading the SP500 over the next several days / weeks. I'm using the continues SP500 futures chart but this analysis should work on SPX and SPY as well with few (if any) differences. I'm going to do my best to make this post valuable even when this market structure is rendered broken by price action. My goal is to make this educational and hope to help people learn how to think their way through a trade, from planning to execution. MARKET STRUCTURE (Daily Chart) The market has been trapped beneath 4327 for quite some time and have, thus far, respected a high and a low of the range. Recent consolidation in the range during the last leg down has formed a small supply zone which could prevent prices from revising the high in the current structure. On the bullish side of the coin, a demand zone dating back to the front side of the trend has been propping up prices. Over the last several days this demand zone has been successful in holding up the current price action, forming a reliable support in which to day trade from. PRICE CAN ONLY DO ONE OF TWO THINGS No need to overcomplicate the analysis at this stage. We just need to recognize that it can only do one of two things. I can respect support and move up or it can violate it and move down. So far we have seen consolidation on support and no real burst of aggression from buyers, making one wonder if there are enough buyers to hold off the sellers at this level. It's important not to predict but one could make the argument that fighting for position at this level is worthwhile, whether bullish or bearish. My thoughts are that, based on this chart and information, it is too early to execute a trade and pick a side. I'm rather conservative in these scenarios and would prefer to see additional confirmation of a side beginning to dominate the other. IDENTIFYING THE OPPORTUNITY ZONES A couple of parallel channels set to the recent highs and lows of this consolidation makes for an easy way to identify zones of opportunity and further develop trading plans. I say "plans" because I am planning for both bearish and bullish movements for a swing trade as well as interactions with these levels for day trading opportunities. It is prudent to react to what the market is doing rather than trying to impose our individual will upon it. If it goes up, we trade up. If it goes down, we trade down. No reason to overcomplicate things. At this stage we are simply looking for price to show us a sign of some form between the pair of orange lines at the top or bottom with no real preference. In lower time frames this could be useful for day trading and overnight trading setups. We are also looking for price to make it's move to the top or bottom side of the extremes, preferably with rising volume, spiking ATR, or a retest of that support or resistance level without breaking it. HUNTING FOR A TRIGGER These are some examples of potential setups and triggers on the hourly chart. Of course this is not an exhaustive list of possibilities but just an idea of some things we might see again at these extremes if the market were to continue to bounce around in this range. Our plan, should the market stay inside of this range, is simply buy low, sell high or short high and cover low. IT WILL BREAK OUT.... Eventually. When it does we should be looking at our volume, oscillators, ATR, or whatever your favorite flavor of confirmation is. Personally, I watch the ATR, RSI, and price action. I want to see a retest of old resistance become support or old support become resistance. When that happens, I look for my entry, trigger, and targets. DIRECTIONAL BIAS - STICK A FORK IN IT Now I'm ready to pick a side to lean toward. Team Bulls or Team Bears? In my opinion there is no finer tool in all of technical analysis for establishing directional bias and studying the geometry of the market than the Andrews Pitchfork. In the above picture we can see that the market has very clearly respected the top and center of the pitchfork. Based upon that, I would expect the market to continue to respect these levels until proven otherwise. BEARISH TRADE PLAN Our two parallel channels from the daily chart conveniently bracket the low of a recent swing in the market and intersect with the upper boundary of the pitchfork. If the market is kind to me, I'll get a nice trigger or bearish pattern at or near this area. From there, trade management would be relatively simple. Target the recent low and potentially beyond or exit the trade should the market fail to hold a down trending structure. My first price target would be the recent lows and the second price target would be the centerline of the pitchfork. My thesis of a bearish move in the market is due to several factors: 1) There is a prevailing down trend prior to this range forming. 2) The market has shown weakness when approaching the upper extreme 3) The economic data continues to be unimpressive and talk of recession is rising 4) The geometry of the pitchfork has been respected and it is pointing down 5) Recent surging volume led to increasing prices, but prices have failed to break higher with any significant follow-through. In my opinion this shows weakness in the market. BULLISH TRADE PLAN Sometimes we just do not get the market or analysis right. Sometimes we do everything right and the market does what it wants anyway. It's important to understand that our analysis does not control the markets and therefore we need a backup plan. I see two possible scenarios based upon the data we have on this chart. 1) Prices pullback to the bullish opportunity zone and respect / confirm support and proceed upward 2) Prices move up from current levels and break out of this geometry of the market, push through the center of our parallel channels, and test the upper extreme. In either scenario I would need a very clear trigger and indication of buying pressure. I personally feel as though this would be counter to the dominant trend and has a bit lower probability of success than our bearish theory. We can, however, make money on a bullish move and should be prepared to do so if the market dictates that prices should move up from here. Surging volume on support recently gives indication that there could be strong buying pressure at the recent lows and that sellers might not have the power to push through the area. Joining these buyers could lead to entry early in a trend reversal, if even in the short or intermediate term. CONCLUSION Hopefully you enjoyed this read and my take on the current SP500 chart. I also hope that you find value in this post. Please remember that this is not financial or trading advice but rather an attempt at sharing my thought process with the community. Good luck with your trading!
CME_MINI:ES1!
by TradingTacticsPro
1
How The 80/20 Rule Applies To Forex TradingToday's article will be entirely devoted to reflections on such wonderful topics as: psychology, risk, workspace management, and analysis. 20% effort gives 80% results Many people probably heard about Pareto's law, the so-called 20/80 principle. Whether you agree with it or not, let us project this statement to the approach to trading as a technical analyst. What is the 80% result obtained with 20% of effort? I believe that only with the right psychological approach and attitude trading will give 80% of the result with 20% of effort. Hence the simple truth even a child can be taught to trade. But it doesn't mean that he/she will bring a stable and guaranteed income in the long run. I mean technically trading is a very simple thing, if not complicated. Is it difficult to find the trends according to Dow's theory? Find the right patterns on the chart according to Steve Nisson or price action methods? To delve into Elliot waves or swings to apply them in practice? All these things may scare only a beginner trader. But this article is not for beginners, it is for people who have some experience in trading. Thus, the bare technical aspect gives only 20% of the result and the rest will fall on your shoulders. The obstacle to successful trading is the trader We all can agree that the main obstacle to successful trading is the trader himself. You can distinguish an implication in favor of algorithmic trading, and a bold disadvantage in the manual trading. I would not say so, for the simple reason that it is easier for a trader to adjust to the current market situation and the process that is not included in the logic of the algorithm. But for this it must be developed a sixth sense: intuition, NOT your technical skills. By intuition and a sixth sense I mean, of course, only experience and knowledge, embedded at a subconscious level, rather than trading at random. And what are non-technical skills? It is clear that these are such basics as risk and money management, because this is the root cause of all troubles and misfortunes for a trader if he doesn't follow them. Often, during active trading, most traders have words like discipline, willpower in their minds and of course excitement, greed and pursuit of money. These are the exceptional, aggressive emotions that lead to the draining. I can't teach you how to deal with it, everyone's character is different, but you need to break down these emotions. It's impossible to make a million in a month, six or a year out of a thousand. No matter how you look at it, if you break the rules your MM you’ll get a guaranteed loss. But if you work systematically and according to the rules, you can have stability and turn over a profit. The small things we miss. It's no secret that life consists of the little things, put together in large formations. If you leave them out, in an instant they will all pile up and collapse like a snowball at the most inopportune moment. One of these little things is the workspace. The ergonomics of things in your room (chair, desk, device, color of curtains, view out the window) to the color of the bull candle on the chart. The little things that are subconsciously perceived every day. And it's up to you whether they will help, or vice versa, press and aggravate. Is it possible to trade successfully when there are screaming children, an un-walked dog, or an uncomfortable chair? You're staring blankly at a poisonously colorful schedule and trying to trade. It may well be that everyone has their own view of cozy and comfortable work, but what I see in this picture is a lack of focus on all levels. We need to remove all outside triggers so that nothing distracts from seeing the essence. Make hours of silence in the house so no one bothers you during that time. So, here's what gets you 80% of the results: order, discipline, deliberate action, motivation. It's not as much effort as charting. It comes to the aid of a variety of types of organization and management, once you radically put order in yourself, in your life, and you will do it always and then the results of trading will noticeably improve.
Education
by DeGRAM
8
EUR/USD Down may we continue...The USD continues to be favourable among other currencies during these questionable times, the Euro not looking half as weak as the pound, but I am still expecting to see new lows here this week. Entry was taken at 0.96650 looking for 100 pips and fresh lows. Bare in mind though people, there was a huge down move on Friday. Trading early in the week would not be my best advice, sit still until the moment arrives. I am staying away from GBP right now as we are very much in unknown territory. It will be interesting to see whether these lows can hold, however with the way the economy is going here in the UK, nothing would surprise me. Best wishes Jake
Short
by jmw2000
2
How To Remove Doubts in TradingHave you ever wondered why do you feel uncomfortable when you enter a trade, doubt your prediction and then look at it and realize, if you had entered, here or here, everything would have worked out, but damn, something kept you from doing it? So, what could it be, why would there be such doubts before entering the trade? In my opinion these doubts may be caused by the following: ▶️ The absence as such a trading system, at least some (where and under what conditions entries are made). ▶️ No trading plan, looking at which it will be easier to work before trading, there will be past examples of successful entries, which may well affect the next one. Size of the trade. Psychologically it is easier to trade with a smaller amount risk than with a larger one. Say, you never risk not more than 3% of your capital, but you still do not feel comfortable. You should feel comfortable with the size of the trade. For example, if you have $50 000, but $500 is too much for you and it is hard to part with it? In that case work on the minimum, which is, say $100. Gradually, once again, gradually increasing its size. You trade with $100-200 per trade, move on to $300-400 risk per trade. When you trade with $100-200 per trade, the stake is small, you not afraid to lose this amount but when you increase the risk, then the problems begin, doubts begin to plague you. ✅ Doubt is the worst enemy of the human mind. So how to deal with all of this? Trade an amount that you can afford to lose comfortably, gradually increasing it as confidence grows. Sum that you are afraid to lose can lead to a lost capital, because there will be a great desire to restore the figures on the screen. There is a concept in trading - "Turtle trader" - which implies that you have to grow slowly in trading. Believe in yourself and in your trading system. Make notes on previous trades, where it is better to enter and where it is undesirable, history repeats itself. An important point, do not trade when you are upset about something, or just not in the mood, when you are tired. When you trade, you should not have extraneous thoughts, especially negative ones. Read a book on psychology, for instance, relax, or trade on a demo if you really want to trade. To sum up When you experience self-doubt, don't make the situation worse. Everyone experiences doubts. This is normal when trading in such chaotic markets. If you are a novice trader, take comfort in the fact that your doubts will subside once you have honed your trading skills and gained trading experience. If you're an experienced trader, it may be helpful to remind yourself that everyone has slumps sometimes. You'll regain your strength if you keep trading. The key to success is to remember that insecurity usually leads to stagnation.
Education
by DeGRAM
6
European Trading SessionHello everyone! Today we continue the review of trading sessions on the forex market. The European Trading session is next in line. Let's get started! The European trading session is considered the most volatile of all. The main reasons for high volatility are the coincidences of the opening of the session with the work of the Asian session, in addition, the European session closes during the opening of the American stock exchange. It is at this time that 5 major financial platforms are operating – the exchanges of London, Frankfurt, Paris, Luxembourg and Zurich. Trading sessions Zurich, Frankfurt, Paris, Luxembourg are three major trading platforms that open at 2:00 New York time, while the London Stock Exchange, the main trading center, opens at 3:00. The opening time of trading in Europe is considered to be from the beginning of work in London, since it is on the London site that 30% of all transactions are made. The largest companies and banks enter trading on the London Stock Exchange at about 4:00 New York time, so at this time there is the greatest volatility. Opening hours The period of such activity lasts about 2 hours, after which the activity of traders decreases and it is lunchtime in the offices. With the opening of trading in America at 9 o'clock, a new momentum of volatility begins in the European trading session. The activity will last about two hours, after which it will gradually fade due to the closure of the Frankfurt, Zurich, Paris and Luxembourg exchanges. Stock Market assets With the opening of the European session, trading begins on the largest exchanges in Europe: the London LSE, the Austrian WBAG, the Berlin, Munich and Hamburg stock Exchanges in Germany, the Irish Stock Exchange, the Italian ISE, the Spanish BM in Madrid, the Swiss SWX, the Stockholm Stock Exchange in Sweden, as well as groups of pan-European exchanges Euronext and OMX. During the work of the largest exchanges in the European session, the fundamental European indices are traded: Euro Stoxx is a group of indices of 600 companies of different capitalization levels located in 18 Eurozone countries. FTSE – index of securities of the 100 largest companies traded on the London Stock Exchange CAC 40 – Euronext Paris Blue Chip Index DAX – index of securities of 30 companies with high capitalization of the Frankfurt Stock Exchange IBEX 35 – blue chip index of the BM exchange FTSE MIB – index based on quotations of 40 largest companies on ISE OMX STKH30 – Swedish index of securities of 30 companies with the largest capitalization traded on the Stockholm Stock Exchange SMI – stock index of the 20 most liquid companies of the Swiss Stock Exchange The MOSBIRZHI Index is a Russian index of shares of 50 companies belonging to the blue chips of the Moscow Exchange, calculated in rubles. RTSI is an index of shares of the 50 largest companies on the Moscow Stock Exchange, calculated in US dollars. Currency pairs of the European trading session During the European session, currency pairs of countries whose exchanges are active at this time have the greatest volatility. Currency pairs with euro: EUR/USD, EUR/JPY, EUR/GBP, EUR/AUD, EUR/CAD, EUR/CHF, EUR/NZD, EUR/TRY, EUR/SEK, EUR/NOK, EUR/HUF Currency pairs with the pound: GBP/USD, GBP/AUD, GBP/BGN, GBP/CAD, GBP/CHF, GBP/CZK, GBP/DKK, GBP/HKD, GBP/HUF, GBP/JPY, GBP/NOK, GBP/NZD, GBP/PLN, GBP/RON, GBP/SEK, GBP/SGD, GBP/TRY, GBP/ZAR Swiss Franc pairs: AUD/CHF, CAD/CHF, CHF/BGN, CHF/JPY, CHF/RON, CHF/TRY, NZD/CHF, USD/CHF It is also necessary to pay attention to the currency pairs of the US dollar with the Swedish, Czech, Danish krona, as well as the Hungarian forint, the volatility of which also increases slightly during the European session, especially in its last hours, when the European session intersects with the American one. Features Intersecting with two sessions at once: the Asian and the American, the European session becomes very volatile during the hours of intersection. It is at this time that scalpers come into play, who earn on fast movements and sharp trend changes. Due to such high volatility, beginners are not advised to trade at this time or should at least be very careful, because one move in the European session can destroy all capital. A distinctive feature of the European Session is powerful movements and rapid change of quotes. The lion's share of movement and trends is formed when the European Trading Session comes into play. This session also features a lot of manipulations – false breakouts, probing levels and collecting stop losses. That is why it is very important to be attentive during this session and not risk a large percentage of capital. Conclusion The European trading session itself is very volatile, because it is at this time that financial centers around the world turn on. However, during the intersection of sessions, volatility increases significantly, which creates large jumps and price movements. It will be very difficult for beginners to trade at this time, because strong movements will often reach stop losses, there will be a lot of false breakouts after which they will turn around sharply. At the same time, professional traders who are able to analyze a large amount of information and are able to make quick decisions will be able to earn a lot of money. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
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