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AUDNZD Building the trade idea.Hey Traders, Today I wanted to run through Australian dollar and New Zealand dollar trade idea. My whole thought process and how it's currently planning out. Then, what opportunity I can see forming to potentially give us around a 70 Pip profit trade, if not further, heading up for the 200 pip mark. Keep an eye on it and let me know what you think. First thing we noticed when building this trade idea was the trendline break, which we can see happened with a fair bit of force on AUDNZD as we broke that at number one on the chart, you can see we push through quite strong, which indicates we may have a turn in trend or at least a push back up to the local supply in which created the downtrend in the first place. Part 2 we were looking for confirmation that we did have the bullish power that managed to break that trend and be able to continue and turn the price action, which is what we witnessed when we had that local break of structure on the four hour at number 2 on the chart. As you can see, it was very near the tops of the move that created the breakthrough the trendline, however, it was strong enough to push through, regroup a little there in that area of supply and then push higher, setting a higher high for the first time in fair few days. Part 3 we are looking to identify some new demand where the price has come back, sit for a little bit and then gave us an indication that that is where we're going to start pushing from, a fair price where buyers come into the market. You can see at #3 this is where we dipped in, although we broke a lower low technically on the chart there, I was looking and expecting a bigger pull back than what we saw at #2 solely because of the gratitude of the move of #1. As we pulled back, regrouped and then went higher, we can see that we have formed a nice demand area there which could be a great turning point for the price in the future. Part 4 is arguably the most important one because it verifies the new localized demand area, which was just formed, and that's breaking a higher high set by Part 2. Once we broke the structure. As you can see, it's happened quite recently. It's indicating that there is enough demand and orders in that area to be able to push prices higher now and potentially into the future. Now as the trading plan is coming together and we've seen many areas of price action which we want to see, there's still a little bit more that we need to observe. First thing is we want to see a pull back into the area of demand. We want a nice steady downtrend pull back on the lower time frames into our demand area, so we can start looking for entry triggers and confirmations that we can head higher. Part 6 is still a while away yet, we need part 5 to confirm everything so we can build a plan. But if we do get to part 6, it's going to start looking for an entry signal with a break of trend, very similar to what we're looking at right now on a lower time frame. I will keep you up to date to see if this price can come back down and give us what we want to see. I hope you enjoyed this analysis. If you trade like this or you have any questions about it, please comment below or if you just like the whole run through like the idea, it helps a lot with future content. Good luck traders.
Long
by the5erstrading
6
GBPCHF 2-3 (Continued)Hi Traders, Firstly, here on the four hour chart as our previous drawing indicated we wanted to see a break of that recent high and then they push back into the zone and all the way down to the local demand. Now we had this quite quickly, as you can see, we just taped up above the most recent high. It printed some orders there and then was followed by a very steep turn to the downside and a quick rush down to where the demand zone is. Usually this would indicate that there's a lot of selling power, which is true indicate. However, having that really powerful pull back into such a strong demand zone is giving me confidence that it can bounce in a way that we want it to bounce. Secondly, once we've established that we do have the pullback were looking for on the four hour, we're going to dive into the one hour and start identifying a trend. As you can see, we've got a very steep trendline there, which doesn't give me an abundance of confidence. I prefer to see a steady trend line on the move down (looking at the 15 minute, you can see it is a very nice steady trend on the way down but on the one hour it is quite steep). We've already seen a dip inside to the demand area. We're going to look for a break in this trendline and hopefully a convincing break. Unfortunately, a convincing break is going to be hard to identify given how steep the trendline is. Then finally, once we have seen a break in trendline and that dip into the demand zone (we can still come further into the demand zone), we're going to move over to the 15 minute chart and look for a break in structure. So, we're going to look at the recent highs on the 15 minute and see if we can get above them to confirm that there is bullish power and we can start moving this chart back up to the top side with a target around the 1.24. we can go further but I think I'll be happy taking at around 1.24 maybe less. If you enjoyed this analytical run through and have any questions, please use the comment sections and leave a like! Lets see how this one plays out.
Long
by the5erstrading
4
TRAILING STOPWhat is trailing stop? A trailing stop is a modification of a typical stop order that can be set to a specific percentage or dollar amount of the current market price. A trailing stop is designed to protect profits by allowing the trade to remain open and continue to make a profit as long as the price moves in the investor's favor. The order closes the trade if the price changes direction by the specified percentage or dollar amount. Understanding the trailing stop Trailing stops only move in one direction because they are designed to lock in profits or limit losses. If a trailing stop loss of 10% is added to a long position, a sell trade will be placed if the price drops 10% from its post-buy peak price. The trailing stop moves up only after a new high has been established. Once a trailing stop has moved up, it cannot go back down. A trailing stop is more flexible than a fixed stop loss because it automatically tracks the direction of a stock's price and does not require manual reset like a fixed stop loss. Trailing Stop Trading The key to successfully using a trailing stop is to set it at a level that is neither too narrow nor too wide. Setting a trailing stop loss that is too tight can mean that the trailing stop is triggered by normal daily market movement, and thus there is no room for the trade to move in the trader's direction. A stop loss that is too short will usually result in a losing trade, albeit a small one. A trailing stop that is too large does not work in normal market movements, but it means that the trader is taking on the risk of unnecessarily large losses or forgoing more profit than he needs. Although trailing stops lock in profits and limit losses, setting the ideal trailing stop distance is difficult. There is no perfect distance because markets and the way stocks move are constantly changing. Despite this, trailing stops are effective tools and, like every other method, there are pros and cons here. Real world example Let's say you bought Alphabet Inc. (historically pulls back 5-8% before moving up again). These previous moves can help set the percentage level that will be used for the trailing stop. Choosing 3% or even 5% can be too difficult. Even minor retracements tend to move more, meaning the trade is likely to be stopped out by a trailing stop before the price can move higher. Choosing a trailing stop of 20% is overkill. Based on recent trends, the average pullback is around 6%, with larger ones around 8%. A trailing stop loss of 10% to 12% is better. This gives the trading space room to move, but also quickly takes the trader out if the price drops more than 12%. A 10% to 12% drop is larger than a typical retracement, which means something more significant could be happening – basically, it could be a trend reversal, not just a pullback. Using a trailing stop of 10%, your broker will execute a sell order if the price drops 10% below your buy price. It's 900 dollars. If the price never rises above $1,000 after buying, your stop loss will remain at $900. If the price hits $1,010, your stop loss will move to $909, 10% below $1,010. If the share price rises to $1,250, your broker will execute a sell order if the price drops to $1,125. If the price starts to fall from $1250 and doesn't come back up, your trailing stop order remains at $1125 and if the price drops to that price the broker will place a sell order on your behalf. The ideal trailing stop loss will change over time. In more volatile periods, it is better to use a wider trailing stop. During quieter times or when the stock is very stable, a tighter trailing stop loss may be effective. However, once a trailing stop loss is set for an individual trade, it should be left as is. A common trading mistake is to increase the risk of a trade one time to avoid losses. This is called loss aversion and can quickly take a trading account down. Results Trailing stop is a very useful tool if you know how to use it. The tool can help you keep your profits on days when you can't follow the price and move the normal stop yourself. Adding such a useful tool will help improve your strategy and increase your profits. But do not forget about the correct setting of the trailing stop, the values ​​of which will be different for each instrument. To more accurately determine the values ​​for the trailing stop, it is worth knowing the average daily movement of the instrument, as in the example above. Good luck! 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
5
FOREX TIMEFRAMESMost technical traders have come across the concept of multiple time frame analysis in their market education. However, it is a well established chart reader. Many market participants miss the larger trend, miss clear support and resistance levels, and miss entry and stop levels because they don't analyze the higher timeframes. Multiple Time Frame Analysis Multiple time frame analysis involves monitoring the same currency pair on different time frames. As a general rule, using three different periods gives a fairly broad view of the market, while using fewer can result in significant loss of data, and using more often provides overanalysis. When choosing three time frames, a simple strategy might be to follow the "rule of four". This means that you should first determine the medium-term period in which the trader is going to trade. From here, a shorter time frame should be chosen, which should be at least one-fourth of the interim period. Using the same calculation, the long-term timeframe must be at least four times larger than the intermediate one. In the long term, the current trend will be determined, in the short term, the ideal entry point, and the medium term will indicate how long you can hold the position and where the targets are. When choosing a range of three periods, be sure to select the correct timeframe. A long-term trader does not need to follow a minute chart, and a short-term trader does not need to follow a monthly one. Long term time frames With this method of studying charts, it is generally best to start with long-term time frames and move on to more detailed frequencies. Looking at the long term time frame, a dominant trend is established. Long-term price movement is influenced by fundamental data that a long-term trader should take into account in the analysis. It is important to consider interest rates, which are a major component in the pricing of exchange rates. Medium term time frames This is the most versatile of the three because at this level one can gain insight into both short and long term time frames. In fact, this level should be the most commonly used chart when planning a trade when a trade is active and when a position is approaching either its target profit or stop loss. Short term time frame As the smaller price action swings become clearer, the trader can better choose an attractive entry for a position whose direction is already determined by the higher frequency charts. Another consideration for this period is that the fundamentals again have a strong influence on the price movement on these charts, although in a very different way than for the higher time frames. Fundamental trends are no longer visible when the charts are below the four hour frequency. Instead, short-term time frames will react with increased volatility to the news. Often these jerky movements last for a very short time and as such are sometimes described as noise. Putting it all together When all three timeframes are combined to evaluate a currency pair, a trader will easily increase the chances of success for a trade, regardless of other rules applied to the strategy. Performing a downward analysis helps to trade with the trend. This alone reduces risk as there is a higher chance that the price action will eventually continue in the direction of the longer trend. Applying this theory, the level of confidence in a trade should be measured by how the time frames match up. For example, if the larger trend is up and the medium and short-term trends are moving down, cautious shorts should be entered with reasonable profit targets and stops. Alternatively, a trader can wait until the bearish wave ends on the smaller charts and try to go long at a good level when the three timeframes realign. Another obvious benefit of including multiple timeframes in trade analysis is the ability to identify support and resistance values, as well as strong entry and exit levels. The chances of a trade being successful are increased when it is tracked on a short-term chart due to the trader's ability to avoid bad entry prices, misplaced stops, and/or unreasonable targets. essence Using multiple timeframe analysis can greatly increase the chances of a successful trade. Unfortunately, many traders ignore the usefulness of this method when they start trading. As we have shown in this article, it may be time for many novice traders to return to this method, because it is the easiest way to know the direction of the trend and not go against it.
Education
by DeGRAM
8
movement of the price (educational) 📖💡The price is based on the tendency of the market participant the price changes are based on the supply and demand power when the tendency of the groups changes, the supply and demand will Chang too the gaining and dumping of the price are based on the group tendency in fact, the price is the decision of the participant in the market to buy and sell the one concept so the movement of the price is based on the direct decision of the every participant of the market too some traders are use technical analysis for their decision some of them using the fundamental and some use the stars or their luck, but the most important point is that this is the people who make the decision even in bot trading this is the human decision for making this program and gaining profit or loss in simple word, every single trader open position based on their beliefs and their point of view about the market trend When the every single participant have a tendency and believe in rasing and gaining trend and market and open their positions, it makes others to believe on this scenario and open the long position and when the proper amount of these participants take part in the long position the whole market tendency become bullish and bullish candlesticks appear. Please, feel free to ask your question, write it in the comments below, and I will answer.🐋
Education
by MadWhale
6
Forex scalpingHi all! Today I want to talk about scalping. What is scalping? Scalping is the style of buying or selling currency pairs over a short period of time in an attempt to make a series of quick profits. A forex scalper aims to make a large number of trades using the small price movements that are common throughout the day. Understanding Forex scalping Forex scalpers usually use leverage, which allows them to open larger positions, so that a small price change equals a solid profit. Forex scalping risks Like all trading styles, Forex scalping comes with risks. Even if you risk a small amount on a trade, taking many trades can mean a significant drawdown if many of those trades end up losing money. This is a viable system, but sometimes a trader cannot exit due to a five pip loss. The market can drop through the stop loss point and they end up with a loss of 20 pips. Thus, they lose four times more than they expected. Some of these slippage scenarios can quickly deplete an account. Special Considerations Forex scalpers require a trading account with tight spreads, low commissions and the ability to place orders at any price. If the spread or commissions are too high, or the price at which a trader can trade is too limited, the chances of a forex scalper being successful are greatly reduced. Who is scalping for? Scalping may not be suitable for all traders. The profitability of each position opened by the scalper is usually small, and the profit is achieved by adding up the profit from each closed small position. The scalper must be able to wait until his labor brings profit. To become a successful Forex scalper, you need endurance, attentiveness and discipline. Scalping requires a lot more time and attention from the trader compared to other trading styles such as swing trading or trend following. A typical scalper opens and closes dozens of positions during a typical trading day. For some, this may be an overwhelming task, creating too much psychological stress. Advantages and disadvantages of scalping The main advantages of scalping The potential profitability of the strategy, both within one trading day and in the long term. There is no need to wait for the next trend to form in the market. You can scalp in any situation: with the trend, against the trend, in the sideways (Flat). More simplified market analysis. With the help of technical analysis and indicators, a short-term trend is assessed, fundamental factors are taken into account selectively. Suitable for trading on small deposits. Thanks to leverage, even on a small account, you can open significant positions and make a profit. The disadvantages of scalping are Difficulty in choosing the right broker. Scalping requires favorable trading conditions – minimum spreads and commissions, no critical slippage. Not every broker will be able to provide such conditions. Increased risk associated with the use of high leverage. When using leverage, even a small movement of the market against a trader can bring serious losses, so in order not to drain the deposit, it is necessary to apply risk control rules. Large expenditures of time and constant psycho-emotional stress during the trading day. The scalper makes a large number of transactions and this requires constant monitoring of the market. Such active trading consumes a lot of energy and is fraught with possible "burnout" of the trader. Limitation on the number of used trading instruments. Not all trading tools are suitable for scalping. To reduce costs with a large number of transactions, assets with minimal spreads are selected. conclusions Scalping is perhaps the most difficult type of trading that requires maximum concentration and self-control. This is because it is difficult to predict the future movement of the market, especially the Forex market. It is worth spending a lot of time to gain enough experience and trade steadily in the plus. Learn, try and you will succeed! Good luck! 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
11
The Short Education about Forex and the Players here Part 1Today i want to text some words about the main players in the Forex. Who is the main traders? Look.... We could categorize the major players in the market in some groups, but the main that is: 1. Commercial and invesment banks. It is very important part of all market and all players have to work with the investment banks to work on Forex, so Investment banks and commercial bank is the foundation of the Forex market. 2. Central banks. It is also the major participants but they are separated from commercials and investments, becouse of different goal they are after the exchanging. Their main goal is to influence the money supply within the country and control the imbalance associated with various situations within countries or geopolitical problems. 3. High-net-worth individuals It is a persons with hight net-worth. Al of them working with investment and commercial banks. In the American private banking business, such a person is defined as having investable assets of more than $1 million, which excludes his primary residence. There are also a few other groups, but these are the main ones that we are interested in and we can call them major players or almost big ones. Now let's get back to the techical part, all of these major players place stops in the double circled zone on the chart. So it is a bis SALE place. And the most important thing is that we have already reached it on this pair, even closed a few candles, so think for yourself.😉 Ask questions in the comments.
Education
by MiriamRapoport
Steps to invest successfully #2Hello everyone, During this video we are going to analyse the following subjects: - Look at the bigger picture. - Draw trend lines using the most significant lows/highs. - Look for support and resistance. - Look for candles. - Understand where the stock/coin sits now. - Reasonably predict where the stock/coin will be in the future. - Make sure you are using EMA lines. - When and why placing your stop loss is important. - Pivot point. Remember, you will never be right every time. However, the key factor is to limit your risk by buying close to support. Seb.
Education
by michael772
Nasdaq: An Idea for BuyingThis is a tutorial in how to enter a trade on the 1hr time frame. We expect a higher high followed by a lower high (ABC if you know Elliott Wave) and we buy the second dip, we set our stop a few points below our buy zone with a maximum of 1% loss. Here I just speculate were the buy could happen as the 200MA hourly often acts as resistance. So do not use this as an exact template of levels for buying this is only an idea. What we want to see is a bounce off the 50% RSI or the Stochastic moving out of oversold 20% upward. And more importantly the ABC pattern.
CME_MINI:MNQ1!
by Sinex
5
NFP REPORTSHello traders! Today I want to share with you interesting information that can bring you profit. Let's talk about NFP What is Nonfarm Payrolls? Nonfarm Payrolls (NFP) is the number of new jobs in the non-farm sectors of the economy over the past month. The released figures show the dynamics of changes (increase, decrease) relative to the previous period. These statistics cover about 500 sectors of the economy: construction, trade, business services, transport, logistics, financial sector, medicine, tourism, and so on. The calculations do not take into account workers in the agricultural sector, non-profit organizations and self-employed citizens. A change in the NFP value of 100-200 thousand jobs will lead to strong volatility in the quotes of world currencies in pairs with the US dollar, gold and stock markets. Long-term reaction to the growth of non-farms is the weakening of the US dollar against a basket of major Forex currencies; The short-term reaction is unpredictable due to a sharp jump in the rate, leading to the triggering of many pending orders and an unpredictable exit and infusion of huge amounts of money into the markets in a short period of time. Position search An example of looking for a trade setup would be to use 30 pips. It is not unusual for the EUR/USD pair to advance 30 pips within the first few minutes of the release of the report. The larger the initial movement, the better for determining the direction of the pair's movement. After the initial big move, there is usually a price pullback that signals an entry point. Using one-minute price bars, traders draw a trendline from the high of the initial move to the high of the one-minute price retracement (if the initial move was up). They buy when the price breaks above the trend line. If the initial movement was downward, then a trend line is drawn from the low of the initial movement to the low of the price retracement using the same criteria. Traders enter into a short trade when the price breaks below the trend line. Some traders like to wait 5 price bars before plotting a trendline, while others may have experience telling them less or more is better. It also helps to place a stop loss in case the price bar chosen was not the actual price pullback low. If a trader is using the 5 price bar method, then a stop loss should be placed one pip below the low of that move if a long trade is taken. If a short trade was entered, then the stop loss should be placed one pip (plus the size of the spread) above the high formed on the movement of 5 price bars. Profit target To determine an exit position, or profit target, traders use the difference between the opening price and the initial move. The difference is divided in half. The target price is this number. For example, if the initial move was 115 pips, then the profit target would be 57.5 pips. Risk Only enter a trade if your profit potential is at least 1.5 times your trading risk. Ideally it should be 2x or more. In the examples above, the profit potential is about 3 times the trading risk. Don't forget about risk control. Do not risk more than 1% of your capital. Practice Before Using the Method It is impossible to describe how to trade all possible variations of the strategy that may arise. That is why it is recommended to use the strategy on a demo version before real trading. Understand the principles and the reasons why they exist, so that if conditions are slightly different on a given day, you can adapt and not be bombarded with questions. If a profit target seems too bold, use a 3:1 reward/risk ratio target. The goal is to place the target in a logical and reasonable place based on the trend and volatility. The profit target method helps with this, but it is only a guide and may need to be adjusted slightly depending on the conditions of the day. EUR/USD will not behave exactly the same after every NFP report, so it will take some practice to see how these trade setups play out and be fast enough to jump in and trade them. Practice the strategy on a demo account until you show total profit after trading at least five NFP reports. Only then can you consider trading this strategy with real money. conclusions News trading is not easy. During such a period, the price moves quickly. It is worth gaining enough experience to confidently trade on the news, so it is recommended to practice on a demo account. Control the risks, follow the strategy and the profit will come to you. Good luck!
Education
by DeGRAM
3
GOLD PRICEHello! In difficult times, investors become interested in gold, as has been done for a long time. But what factors affect the price of gold? Let's try to find out today. Reserves of the Central Bank Central banks hold fiat currency, but gold is also held in reserve. Ever since the US went off the gold standard, central banks have been building up their gold holdings. Overall, governments bought a total of 650 tons of gold in 2019, down from the 656 tons bought in 2018, and still at 50-year highs. US dollar value The strength of the dollar affects the price of gold. If the dollar is strong, then the price of gold is usually low. If the dollar is weak, the price of gold rises. As a result, gold is often seen as a hedge against inflation. As inflation rises, so does the price of gold. Global demand for jewelry and industry In 2019, jewelry accounted for more than half of the demand for gold, which was equal to 440 tons. In addition, 7.5% of demand is related to technology and industry, where gold is used to make equipment. These directions, their growth or decline, strongly influence the price of gold. Welfare Protection In times of crisis, gold has always been considered a "safe haven" for investors' funds. Time passes and gold is still being used, and even the arrival of bitcoin has not changed the situation much. When the expected or actual yields of bonds, stocks and real estate fall, interest in investing in gold may increase, causing its price to rise. In addition, it is believed that gold provides protection during periods of political instability. Investment demand In addition to the central bank, gold is owned by exchange-traded funds that issue shares available for purchase and sale to investors. SPDR Gold Trust (GLD) is the largest holding over 1,078 tons of gold in March 2021. In general, gold purchases from various investment vehicles in 2019 amounted to 1271.7 tons, which is more than 29%. of the total demand for gold. Gold production Major players in global gold mining include China, South Africa, the US, Australia, Russia and Peru. The production of gold in the world affects the price of gold, which is another example of supply and demand being met. The mine's gold production was approximately 3,260 tons in 2018, up from 2,500 in 2010. Every year it is more and more difficult to mine gold, and this also affects the price. conclusions Gold, after several centuries, is still used not only as jewelry, but also for investment. Every year, the price of production is growing, banks are accumulating gold in their reserves, crises and other factors are raising the price of gold. Using the data, you can predict the rise or fall of prices. In any case, nothing more expensive than information has yet been invented. Good luck! 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
11
📌WHY RISK MANAGMENT❓❗📛✅ Traders heard to consider risk management but aren't given good enough reasons for this risk management rule. We'll explain the the psychology and biology behind our frenzy of buying any stuff in bullish market or depression after our thoughtless, recklessness decisions ... ⚪⚫🔴🔵 🆗Anyone who has taken a risk understands its visceral feeling. Dr. John Coates puts it beautifully, “Risk engages our entire being,” and his book The Hour Between Dog and Wolf: Risk Taking, Gut Feelings, and the Biology of Boom and Bust explores how risky wins and losses can change us “Jekyll-and-Hyde-like beyond all recognition.” Running the derivatives trading desk for Goldman Sachs and later Deutsche Bank in New York, Dr. Coates witnessed first-hand this biology of risk-taking and its effects in the financial markets. During the dot-com bubble and bust, he observed cocky and unreasonable behavior when traders were on a winning streak, and the extreme opposite after huge losses. Looking to bring biology to the story of overconfidence and irrationality in our financial market instability, he retired from Wall Street and returned to the University of Cambridge in 2004 to study neuroscience and endocrinology, in order to understand how risk-taking affects our bodies. Dr. Coates’ research found that hormones are at work during risk-taking: testosterone is likely to rise in a bull market, while cortisol is likely to rise in a bear market. Moreover, these hormones and signals from the body not only influence risk-taking among financial traders, but they also have wider implications beyond the markets. In the John Coates Book, That winning feeling The ancient Greeks believed that we were visited by gods during defining moments in our lives, such as winning battles, love, and childbearing. Those instants felt extra vivid and powerful, but Dr. Coates discovered that these feelings are really induced by our hormones, not Olympian gods. Testosterone fuels the “winner effect.” It affects the brain, increasing confidence and appetite for risk, but after an extended winning streak, testosterone also causes overconfidence, unreasonable exuberance, and obliviousness to danger. 🔸🔹🔶🔷◾ ✅SO doing the Risk Management Techniques for Active Traders is vital : 0)Planning Your Trades "Every battle is won before it is fought." This phrase implies that planning and strategy—not the battles—win wars. successful traders commonly quote the phrase: "Plan the trade and trade the plan." Just like in war, planning ahead can often mean the difference between success and failure. ⬛ 1)Consider the One-Percent or 2% Rule Although this rule mostly depends on your trading strategy and your market ,but this rule of thumb suggests that you should never put more than 1% of your capital or your trading account into a single trade. This strategy is common for traders who have accounts of less than $100,000—some even go as high as 2% or even more if they can afford it. ⬜ 2)Setting Stop-Loss and Take-Profit Points The points are designed to prevent the "it will come back" mentality and limit losses before they escalate. For example, if a stock breaks below a key support level, traders often sell as soon as possible. On the other hand, a take-profit point is the price at which a trader will sell a stock and take a profit on the trade. This is when the additional upside is limited given the risks. ⬛3)buying or selling in several steps this rule also called "averaging down or up". In this case assume you aim to invest in an asset but haven't any accurate strategy to determine a good entry point an exit , but you know the general trend of a market , and by allocation of your fund in different steps you can lower your risk of buying or selling , for example you want to buy bitcoin but you haven't any specific strategy so by regarding of your capital you can buy it after any drop or regular period of time for instance at each month. ⬜4)Diversify and Hedge Making sure you make the most of your trading means never putting your eggs in one basket. Whatever your asset is your challenge is to pick If you put all your money in one stock or one kind of an asset , you're setting yourself up for a big loss. So remember to diversify your investments—across both industry sector as well as market capitalization and geographic region. Not only does this help you manage your risk, but it also opens you up to more opportunities. ⬛5)Downside Put Options If you are approved for options trading, buying a downside put option, sometimes known as a protective put, can also be used as a hedge to stem losses from a trade that turns sour. A put option gives you the right, but not the obligation, to sell the underlying stock at a specified priced at or before the option expires
Education
by PRO_SMART_Trader
Multiple Time Frames - How to React Quicker & ConfirmationsIf you are trading the 1 Hour chart, you can use the 3 minute chart, for instance, to your advantage. You can either SHORT the Blue Line on the 1 hour chart, or if you are feeling unsure, you can wait for a breakdown in the lower time frames to confirm and enter. Let's say you are SHORTING ETH, but missed the Blue Line Short. On the 3 minute chart, price didn't reach the Blue Line. HOWEVER, if you are watching Bitcoin, which you should pretty much all of the time, you'll see a rejection on the 3 minute and a red candle pointing downwards on BTC. Because BITCOIN affects the market so much, it's safe to say ETH was never going to reach the Blue Line, especially since ETH/BTC was weak at the time. So shorting at this level on either ETH or BTC would have been safe and would have resulted in good profits. Of course, all of this is much more stress! BUT if you want to spend more time trading and increase your win percentage, watching the LOWER time frames is important. Otherwise, feel free to take trades at the Blue Line and set a stop/loss accordingly. Your win rate will still be high, just not as high.
Education
by reiiss7
8 MYTHS ABOUT TECHNICAL ANALYSISThere are many people and many opinions in the market. There are those who criticize technical analysis, calling it superficial and even useless. There are those who consider technical analysis (TA) the holy grail that can bring huge profits. Today we will try to debunk 8 myths about technical analysis. myths 1. TA is for short-term trading or day trading only. Many people think that TA is only suitable for short-term and computer-driven trading, such as day trading and high frequency trades. The history of TA actually goes back long before computers were invented, and many famous and profitable traders use it for long-term trading. Technical analysis is used by traders on all timeframes, from minutes to weeks and months. 2. Only individual traders use technical analysis. In fact, investment banks have dedicated trading teams that use technical analysis. High-frequency trading, which covers a significant portion of the trading volume of stock exchanges, relies heavily on technical concepts. 3. TA has a low success rate. To debunk this myth, all you have to do is read Masters of the Market: Interviews with Top Traders by Jack D. Schwager, which quotes many traders who profit solely from technical analysis. Traders with many years of experience have been making profits using technical analysis for more than a century. 4. Technical analysis is fast and easy. Novice traders open trades based on a simple TA, but this is not enough to be profitable at a distance. Success depends on continued study, practice, good money management and discipline. Technical analysis is just a tool, just one piece of the puzzle. 5. Ready-made technical analysis software can help traders make money easily. There are a lot of advertisements on the Internet that promise to give you a program for a small amount that will do everything for you and bring you profit - in fact, this is a scam. There are programs and indicators that can help you trade, but no program will give you guaranteed profits. 6. Technical indicators can be applied to all markets. Most often, yes, TA can be applied in all markets, but there are exceptions. Different asset classes move in their own way, with their own characteristics, and a trader must be able to adjust his TA for a particular asset. Don't make the mistake of applying technical indicators designed for one asset class to another. 7. Technical analysis can give very accurate price predictions. Beginning traders expect to see 100% accurate signals and accurate profit prices, reversals and so on from TA. This is simply impossible. Most often, TA helps to find the zone where the price can go, where it can reverse from and this is not a specific point, this is a zone and experienced traders understand this. 8. The winning percentage in technical analysis should be higher. If the first trader out of 5 made 4 profitable trades, and the second trader out of 5 made 1, who is more successful? You need to get more information to give an answer, it may be that the first trader earned $ 10 in 4 trades, but at the same time he lost $ 80 in one and then he will be in the red, and the second trader lost $ 40 in 4 trades , while in one transaction he earned $ 100. The right trading structure ensures profitability even with a small number of winners. It is not necessary to have many profitable trades, it is enough that the profit covers losses and something else remains, and sometimes one trade is enough for this. essence Technical analysis is not the holy grail, it will not give you 100% profit. It does not suit everyone and you need to study it before you understand whether it suits you or not. You need to gain enough experience to learn how to use technical analysis correctly. When used correctly, TA can give you a real opportunity for trading success. Good luck!
Education
by DeGRAM
7
How to avoid getting Rekt with Heikin Ashi + Winning Trades1) Use Volume divergences to your advantage 2) Use Heikin Ashi weak green candles to find high points to short 3) Use dynamic trendlines by finding high + low points of volume to find "Volume breakouts" Usually volume breakouts can happen before price, and you can predict price trends before they happen. When to close Long BUY trades with small loss or small profit? 1) Weakness in Heikin Ashi candles upwards 2) Bear Divergences 3) Bear Volume increasing 4) RSI falling underneath the MA and retesting the MA When to close SHORT SELL trades with small loss or small profit? 1) Bull Divergences 2) Bear Volume decreasing + Big Green Heikin Ashi candle with high volume Also ^ switch back to normal candles and see if candle is Bull engulfing 3) RSI breaking out over the top of MA When to Take Profit? Use the reactive trendline: When you are short and it turns Green after Shorting, take Profit on Short When you are long and it turns Red after Buying, take Profit on Long
Education
by reiiss7
Forex Fundamental AnalysisHello! Today I want to talk about a topic that is rarely discussed, but important at the same time - fundamental analysis of the forex market. News, GDP, interest rates - all this affects the market and everyone needs to be able to understand this. What is fundamental analysis Forex fundamental analysis is a way of analyzing a currency, making predictions based on data that is not directly related to price charts. There are two types of influence of fundamental indicators on the price : Short term. Fundamental information has an impact on the market within minutes or hours. Long term. Fundamental factors, the impact of which on currencies lasts from 3-6 months. Used for strategic positions. Several basic levels are used for conducting FA. The level of the national economy. Comprehensive analytics of economic and political indicators of the country. Industry. The volumes of supply and demand, prices, technologies, as well as production parameters are studied. Individual currency level. Financial statements, management technologies, business strategies, competitive environment are assessed. The classical scheme of fundamental analysis looks like this : An analysis of global financial markets, the presence of signs of a crisis and force majeure events, an examination of the situation in the economy and politics of the leading world powers is carried out. Economic indicators and the general level of stability of the region (industry), the analyzed currency or other instrument are assessed. The degree of influence of regional and world economic indicators on the dynamics of the selected financial instrument in the short and medium term is determined. Main fundamental factors When using FA directly to open trading positions, the following points will be decisive (in descending order of importance) : Interest rates of central banks (CB). Macroeconomic indicators. Force majeure situations, market rumors, news. Central bank rates According to the theory of macroeconomics, increasing interest rates cause currencies to rise in price, while falling interest rates make them cheaper. However, there are situations in the Forex market in which a decrease in the rate becomes the reason for the strengthening of the currency. Foreign exchange market interventions Currency interventions are an important tool in the analysis. Central Banks resort to such a measure very rarely, but you should not ignore this phenomenon. Macroeconomic indicators For any country without exception, there are data of constant importance: the level of GDP; inflation rate; trade balance. These reports are expected by the market. The approach of their publication dates gives rise to a lot of rumors that fuel the trading frenzy. Such an environment often creates situations in which the release of specific numbers does not cause almost any reaction, since the market has already beaten them in advance. However, as FA practice shows, this happens only when the existing trend is not subject to change. In the case when the published data differ significantly from the forecast, the market response can be very violent. This is especially true of the moment of the general reversal of the current trend. Important macroeconomic indicators In simple words, a macroeconomic indicator is expected news, showing up-to-date data on the main indices of the financial and economic state of the state. The advantage is that each trader can know in advance the moment of release of any data from the economic calendar. These indicators affect the rate in the short term and are suitable for trading on medium and short term timeframes. Types of macroeconomic indicators Trade balance. This indicator reflects the volume of exported goods to imported ones. A positive balance is called when exports are higher than imports. Assumes a strengthening of the exchange rate, due to the fact that rising exports increase the demand for the national currency of the exporting region. Discount rate of the National Bank. On its basis, interest rates on deposits and loans are formed. When the national bank rate rises, the currency strengthens; when it falls, it weakens. Gross domestic product. The volume of GDP is obtained by summing up the entire range of services and goods that were produced in the country per capita. However, an increase in GDP always leads to the strengthening of the national currency against other currencies. Inflation. The growth of this indicator leads to the depreciation of the national currency. Unemployment Rate. As a rule, an increase in the indicator is followed by a decrease in output, an increase in inflation and a negative change in the trade balance. For this reason, the data on unemployment has a strong pressure on currencies, and an increase in the figure causes a depreciation. Macroeconomic indicators One of the most common mistakes in trading is trying to trade on weak news. Therefore, you need to understand which data pertains to you. Macroeconomic indicators One of the most common mistakes in trading is trying to trade on weak news. Therefore, you need to understand which of the data are important. Important market data includes : money supply; balance of payments deficit (Balance of Payment Deficit); trade balance deficit (Balance of Trade Deficit); unemployment rate (Unemployment Rate); a significant fall or rise in the rate of inflation (Rate of Inflation); fluctuations in the volume of GDP; change in key rates; emergencies (natural disasters, unexpected events in politics or Second stage of analysis An assessment of the numbers predicted in the calendar for future data. Analysis of the market reaction to this event. This is done in order to understand the price behavior at the news release. For example, when the exchange rate of a currency dependent on news is growing steadily even before the release of figures and at the same time positive data is predicted, one should not expect sharp fluctuations in the exchange rate at the time of the release of the information. And if the forecast turns out to be wrong, then the market can react with a powerful reversal of the current trend. Decision-making. There are two options for entering a trade. The first is to use the situation to open an order on the current trend before the release of the news with constant trailing stops to protect the position. The second is to wait for the release of the data and make trading decisions according to the situation. Results Fundamental indicators certainly affect the price, but each in its own way. It is worth remembering this and not running to open a position just by seeing some news. Analyze, try to understand the possible reaction of the market to the news. Use all the information, be objective and then you will be better than most. Good luck! 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
45
The Only Proven Way To Success in Trading 🥇 Hey traders, Like any discipline, consistently profitable trading requires many years of practice. In this post, we will discuss the only proven way to become successful in trading. 🔰First, let's start with the axiom: there are no inborn traders, trading is a skill, a skill that can be learned. Though talent may help you in some manner it does not guarantee your success. One more axiom that is logically derived from the first one is the fact that trading is a complex skill. The one that can be split into dozens of subskills. Making that statement we may assume that our success in trading directly depends on mastering each subskill, each domain that it consists of. But how do we master these skills?🤔 The only way to do that is to practice. Practice means doing something regularly in order to be able to do it better. With your first attempts, you are doomed to fail. Inevitable you will suffer and you will feel miserable because of your incompetence. Trying and doing the same thing again and again, at some moment you will feel the progress and growth. Your perseverance will bear fruit. Knock, and it shall be opened to you. And as a consequence, with some attempt, you will feel that finally the skill is mastered, that one more stage in your journey is passed. Polishing the entire set of subskills and learning to apply that as a single unit will make you a consistently profitable trader. Just stipulate the domains properly, name them and be ready to work hard. ❤️Please, support this idea with like and comment!❤️
BITSTAMP:BTCUSDEducation
by VasilyTrader
20
ACCELERATION OF A SMALL DEPOSITToday I want to talk about a topic that every novice trader has to face. Most beginner traders save up money to make the first deposit and very often this amount is too small for trading, but the broker gives you the opportunity to trade anyway, why is that? The fact is that the smaller the deposit, the easier it is to lose them, and the broker knows this. Therefore, for calm trading, you need an amount greater than $100 or $500. The optimal amount to start trading is $1000 What is the danger of a small deposit? Beginners can be anyone from a student to a businessman. And very often the initial funds will be small, because the reason people come to the market is to make money! A person invests $10, not because he is greedy, but because there are simply no more free funds. At the same time, the trader is already dreaming of millions, and his head begins to spin from such thoughts. As a result, deals are opened for $1, then for $2, and in the end all the money is lost. The market does not bring quick profits. It is also impossible to deposit the last money or money borrowed. All this will only lead to the drain of the deposit. 1000$? Why $1000 is considered the best start? This question can be answered by the rules of money management. Everyone remembers the rules of risk, let's say you decide not to risk more than 5% on each trade. When trading intraday, the position size is 20-50 pp., that is, when trading micro-lots of 0.01, the risk per trade will be $2-$5. Such a risk is acceptable for a $100 account, since then it will be 5%. When trading on daily timeframes, the average risk is even higher: 50-100 pp. (5-10 pp.). In this case, the account must be at least $200. As you can see, money management clearly indicates the minimum deposit size. This is when trading micro-lots. As a rule, traders use standard lots because they want to make quick money and it is very risky. Therefore, you should not start trading with $10 or $200. It is better to save and collect the required amount, or at least $500, and then it will be easier to trade. But what if you can't wait? How to disperse the deposit? There are a couple of rules: A trader must have a working trading strategy that has proven itself well on a demo account and on a real account; Comply with risk management rules; Provide a deposit amount of $200-$400. Subject to these conditions, you can “softly” disperse the deposit. Overclocking With a quick acceleration of the deposit, the risks increase, you must understand this. Here are three principles that make it possible: The risk per trade is set higher than in the classic MM, and can reach 10%; If the trade is unprofitable, the risks are not doubled; When the deposit is broken up to the set limit (for example, from $200 to $500), the trader returns to the previous risk of 5% and trades for several months in compliance with Money Management rules. Then you can repeat the "acceleration". pyramiding A popular way to accelerate a deposit is Pyramiding, the meaning of which is to add positions. Here's how it goes: You determine the main trend on the daily timeframe and open a position following the trend. Then wait for another signal indicating the continuation of the trend. If there is a signal, open another position along the trend. The protective stop-loss order of the first order is transferred to the opening level of the second order, that is, to breakeven. The size of the take profit on the second trade should be small, because the trend can change direction at any time. It is important to remember that this strategy only works if there is a trend, so a flat or correction should be avoided. Outcome Trading this way is very risky. The best way is to raise an amount equal to or greater than $1,000. Then trading will become less dangerous for you, since you can use the standard money management rules. Before dispersing the deposit, you must set yourself a goal, after reaching which, be ready to use the standard risk rules. Big risks are rewarded, but even they need to be taken with intelligence and control. Good luck!
Education
by DeGRAM
3
DROP IN TRADINGHello! Today I want to talk about drawdown in trading. This topic is very important because it is directly related to the possible loss of all capital. What is a drawdown? When trading, you can make profits as well as take losses. When you lose too much and the account decreases significantly, this is called a drawdown. Losses in trading are normal and should not be feared. But you should not lose too much, a minus of 15-20% is considered a moderate minus value, and these losses must be controlled. Drawdown (DrawDown, DD, drawdown) in the foreign exchange market is a temporary decrease in funds in the trading account as a result of opening a losing trade. In simple words, a drawdown is a trader's floating or real loss. Drawdown types In the Forex currency market, it is customary to classify the following types of drawdown: The current drawdown is a temporary drawdown associated with an open position, which is now in the red. The size of the initial deposit does not change until the position is closed. As a result, the position itself can be closed even in a plus, but if the position goes into a minus, you should think about the rules of money-management. Because a position not closed in time may end up with a margin call. A fixed drawdown is a position closed with a loss. This type of drawdown negatively affects the size of the deposit, reducing it. If money management is not used correctly, such transactions can significantly reduce your deposit, which is not recommended. Maximum drawdown - the maximum value of deposit losses for the entire trading period. It is calculated each time from the previous maximum deposit amount, and the largest value is selected. For example, there were three big minuses on the account: $300 with a $1000 deposit, $450 with a $2000 deposit and $200 with a $2500 deposit. The maximum drawdown here will be $450. Relative drawdown - the maximum decrease in the account relative to the initial deposit, expressed as a percentage. It is often used when analyzing a trading strategy in order to understand after what losses a trader should think about changing the strategy. For example, if the relative drawdown is 20%, then with an initial deposit of $1000, the speculator will understand that it is necessary to close deals and modify tactics when the current drawdown reaches $200. The absolute drawdown shows how much the balance has decreased relative to the initial value. These data are similar to the relative drawdown, but are expressed in the deposit currency. Why analyze losses? Each trader should know how much he is ready to lose and at what value he needs to change the strategy and start trading a little differently. The percentage of allowed drawdown is different for each trader, conservative traders try to minimize the maximum drawdown, more aggressive traders take risks much more often and in large volumes. Large companies keep the maximum loss in the region of 15-20%. Optimal drawdown size The optimal drawdown size varies depending on many factors: the type of strategy, the amount of the deposit, the psychology of the trader, the timeframe, and so on. Drawdown can be divided into three types: A drawdown of 15-20% is working and quite normal. It can be restored, and it does not make strong adjustments to the trading strategy. A drawdown of 21-35% is a dangerous level of losses that will require a reduction in the volume of the trade and recovery can be difficult. Closer to the 30% mark, it is important to think about modifying the trading strategy and review it for errors in the risk management system. A drawdown of 36-55% is an actual harbinger of a loss of a deposit. It is better to close orders and think about what led to such a drawdown, which was not closed forcibly earlier. Drawdown reduction Setting a stop loss - and its size should not exceed 5% of the total amount on the trader's account. Optimal leverage - the use of a large amount of leverage can lead not only to drawdowns, but also to draining the trader's deposit to almost zero. Refraining from trading in an unstable market - very often a trader, observing even the first two conditions, still manages to lose almost half of his own funds during one session. Therefore, if you have made several unsuccessful transactions in a row, then it is better to give up trading for today and do something else. Correct assessment of probable profit - one should not be greedy when placing a take profit, its size should always correspond to the market dynamics. conclusions Every trader who wants to consistently earn money in the market must understand how much he is ready to lose, while the trader must do everything not to lose all his capital. You can lose 15% per month and it will not be scary for a trader who follows a trading strategy, money management and monitor losses. As a result, such a trader can return the lost next month. But those who do not follow these rules, do not think about a drawdown, do not know how much they are ready to lose and how much they cannot lose, as a result, everyone loses. Losses are inevitable, but don't let the market take everything. Good luck! 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
10