Get started

Risk Management

Risk Management Basics | Retest Trading 💡 Hey traders, Being breakout traders we have two options for trade entries: when the breakout is confirmed we can either open a trading position aggressively once the candle closes above/below the structure or we can be conservative and wait for a retest of the broken structure first. What is peculiar about the second option is the fact that the majority of pro traders prefer the retest entries. In this article, we will discuss the pros and cons of retest trading. ✔️First, let's discuss whether the retest is guaranteed. NO. How often do we see that? Around 50-55% of the time. Does it mean that 45-50% of breakout trades will be missed? YES. The main disadvantage of retest trading is that a lot of trading opportunities will be missed. Occasionally the breakout triggers a strong market rally not letting the price return back to the broken structure. So what is the point to wait for a retest then? Why let the market go without us in case if there is no retest? ✔️Most of the time the breakout candle closes quite far from a broken level. Opening the trading position once the candle closes and setting a stop loss below/above the broken structure, one can get a very big stop loss. Such a big stop that its pip value exceeds or equals the potential return. 🖼️In the picture, I drew a classic channel breakout trade. The aggressive trader opened a long position as the candle closed above the channel's resistance. His stop loss is lying below the lower low of the channel. Analyzing his risk to reward ratio, we can see that his reward equals his risk. On the right side is the position of the conservative trader. His stop loss in lying on the same level. However, instead of opening a trading position on a breakout candle, he decided to wait for a retest of the broken resistance of the channel. Just a slight adjustment of his entry-level gives him a completely different risk to reward ratio. ❗️Patience pays in trading. Missing some trades a retest trader will outperform the aggressive trader in the long run. Trading is about weighting your potential gains & losses. Paying commissions and swaps for every trade, it is much better for us to trade less but pick the setups that give us a decent potential reward. What type of trading do you prefer? ❤️Please, support this idea with like and comment!❤️
Education
by VasilyTrader
30
3 Things I Wish I Was Told Before Becoming A TraderTrader Jamal… Hey, Finn—What you doing here… Are you here to wind me up? No, Jam! Shucks—Just heard you’re rich now. Trading stole our red-collar boy. How has it being though? Tough!… I won’t even lie to you man. It’s being real tough. I even told my story here to people. You know what they said, “I told you so”. I mean all I wanted was “financial freedom”. Pfft—I don’t even know what I was thinking. I’m broke man! Everything I’ve done has really messed me up, Finn. I’ve lost close to $70,000 in total. Mistakes, hesitations, personality problems, and fear. I think… I might just quit—Maybe trading isn’t for me man… Came to get some food. We’ll talk later Finn—Bye! “As a trader, the key is to learn more about yourself”… Huh! What do you mean sir?—Are you talking to me? Yes, Forgive me son—I overheard your complaints to your friend. 43 years ago—I was exactly like you son. If I may ask, how long have you been trading? Umm, 2 years sir. It really hasn’t being that long. Then why are you complaining? … I’ve been in the game for 43 years and I didn’t achieve consistency—until after 10 years of trials and lots of errors. So, don’t give up yet! Erg! sir… —I just don’t know what I’ve been doing wrong. I can’t tell. The Old Trader tale Everything I’ve done has been a total fail. You know, I went to school of candles Pretoria—Nothing has happened, so far. Tell me sir, what else should I do? All right Jamon… … It’s Jamal sir Jamal, can I tell you my story… I’ll appreciate that sir. November 3, 1850, I became a trader—A friend introduced me to trading, when I was at my lowest. A short story… What do you mean sir? I don’t understand… I’m going to let you in—on my secret. But, you have to make sure, you’re patient enough to listen. On January 5, 1849 I graduated with a first class honors in Business and Finance. It was the greatest day for me—Cos’ I could finally become the Businessman/Banker I’ve always wanted to be. I thought to myself, “Isn’t this great?” So I started job hunting, I focused more on the banking sector… I searched and foraged around Beverly hills but—It was total disappointment. Until, I finally got it. Hey! guess which bank came through—It’s The First Republic Bank. They took me in. Good pay and all; it was my dream job. I mean you must be asking, “why quit and become a trader?” Simple! it wasn’t the life I pictured. I know I wanted to be in the financial sector—Wanted that classy business guy life—But, the idea of sitting in a spot to make money… wasn’t what I imagined. Two words, “It’s Boring”! Why Quit Your Job Trader The questions I asked myself was, “Is this where you really see yourself in 5 years?”… That was the only bank that offered me a great job—I knew that per fas et nefas, I am definitely going to have my financial freedom. So, I started my search again. This time I was specific—No bosses, anywhere in the world and My own time. You should know what that means, right Jamal? Oh! Yes sir I do… Just curious to how trading met you… Sir, you graduated with a first class honors in finance yet, you spent 10 years in becoming a consistent trader What happened? Don’t worry I’m getting there. Most traders don’t know this yet but, “It’s really mind over market; EQ over IQ” here. You’ll think that, because I came out with such good grades—I’ll be a market wiz in a short period. That’s not how trading works! You know, my friend Victor once said, “The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading… Ergo—the single most important reason that people lose money in the trading is because—they become too emotional, in denial, and cannot control these emotions”. That’s why Jamal, Trading is really not about your IQ; It’s more or less about you as a person. Your mindset, beliefs, character—everything about you would be tested. As a trader , you are really playing against yourself. It’s you versus you! I Discovered The Art Of Trading! Before I continue my story, I’ll ask you a question—Do you understand your personality? Shucks, well… Yes! I do. But, the change hasn’t been easy sir. I realized that my character flaws gets in the way of my progress. Exactly! Jamal… Back to my story. I wasn’t happy with my job; even though it felt like it was my dream job. After working there for a year and reflecting—I realized, “No! man this isn’t what I expected”. It’s a bore! Most people are like you Jamal. They’d ask, “Why spend 10 years in figuring out trading, if you graduated with a—first class Honors”. It’s because… trading is more than IQ! In trading, the intelligent also encounter problems, if not more—in trading. You know… You and I. That’s why I used victor’s quotes. Now, I was looking for my dream job, which was, making money whilst at the comfort of my home. My degree couldn’t give me that. I needed to have a skill. But, I’ll let you on a secret Jamal–-“A degree without skill is just nothing more than, a unit of angle measurements”. Something happened—on the 15 September, 1850, there was a seminar. The bank made sure every of its staff were in attendance—Most grumbled, some happy, others indifferent. I actually wanted to reject the offer… until I saw the topic of the seminar. It read, “Your missing key to financial freedom”. Of course I went. That’s what I wanted! Ugh… That seminar alone changed my view of the finance industry and I discovered the art of trading. A beautiful art I must say; The best! Immediately, I saw a reflection, I imagined what it would feel like—If I became a trader. Self-Reflection The moderator said something, he said, “What kind of life do you want to live? A 9-5 till your 60 or an anytime you want till your 30”. You see, I pondered on that quote for the longest time. I don’t think I’ve ever had to think so hard. Anyway, I made a choice! I have to know how to trade! That’s what I said to myself. But, I didn’t quit my job just yet. I needed that job at least, till—I was great at the art of trading. Damn! I probably shouldn’t have quit my job right? Heh! Listen, what’s already done shouldn’t be spoken about. You made a decision that was best for you at that time. Jamal you’re still young and there’s still time to make better decisions. As a trader, allow yourself make mistakes; if not, you’ll avoid them only to meet them at the finish line. Do you understand!… Yes sir. When I told myself that, I started looking. I searched for articles, books and listened to colleagues. We had no YouTube then—all we had were newspapers and the lying broadcast. But, I didn’t give up! Working in the bank kind of gave me an upper hand—because I had access to financial data. Jimmy was our foreign exchange (forex) wiz. I needed Jimmy to be my friend. I had to become a trader! Becoming a trader, gave room to a lot of challenges—I encountered… The first was putting up with old Jimmy’s attitude. Jimmy wasn’t a friendly person but, Jimmy had what I needed. Did that stop me? No! I had a goal. “I had to become a Trader!”… Old Jimmy wasn’t going to be a hindrance to that plan. Secondly, I had to be patient because I knew Old Jimmy might say—The words I dreaded the most, “No!”. Which he did—severally! Each time I got home, I’d tick my trading boxes. Each time, I realized how far I was—from becoming this trader. But, I stayed. Months passed, days tripled and I finally got a demo account. Trader Jimmy, Here—I Come… Jimmy insisted I start with the demo. His words, “You need to get familiar with the system”. So, I started practicing what I’ve learnt and I was doing surprisingly well. Also started making paper trading cash—I became obsessed with the reality that—it could all be mine. I assumed, “Maybe that’s all I need from learning”. So, I quit! Left the bank, told my colleagues, “bye”… I was out! Hmm… thought to myself, “Hey, Trader …here I come”. Months passed and I finally invested 50% of my salary into—a live account. I was ready or—I thought I was. The first few trades were great; an account of $50,000 tripled. “Woah! I can’t believe that worked—what have I been doing in the bank since?”, “Could have been earning twice my salary in a day”, I mulled. It’s a Friday morning. Hurrah! NFP… “the best time to get the bag”, that’s the phrase Jimmy would use. Wham! I opened several positions and… Sighs, it ate my equity. Damn! it’s all gone. As if that wasn’t enough—I added more money. Told myself, “You can’t give up now” This is all you have! In my bank account, $70,000 was left. Hmm… “well, it’s all or nothing” I exclaimed. Dialed the broker and added $30,000… left $40,000 for emergency reasons. Cos’ if I could lose $50,000—then it’s possible to lose more of that. Wasn’t going to be foolish twice! But, it was actually worse… For 9 horrible years of my life… I couldn’t figure it out. This Trader became miserable, broke and hurt. Until, I realized… One thing the demo does for the trader is, it reveals to you all you can achieve if—you didn’t have emotions. But, you’re human! We all have emotions—that’s actually a problem. After my years of failing and picking myself up from the fence, I understood the market was trying to teach me something. Jamal, I’m going to share with you 3 lessons I learnt from my Chi-Fu called, “market”. These lessons all come with sacrifices… It should help you pick up your art and become its master. The first… As A Trader Become A Great Loser Jamal, can you think of a trader who actually boasted about his losses? Most people don’t like to show the black eye and swollen lips—they show you the beauty marks and glittering veneers. Obsessions over something makes you have less of it. To be a good winner; you have to be a good loser. Huh! what does that mean sir? You have to come to terms with losing. In-fact, losing should be an opportunity for you to learn something new about—yourself and the markets. Learn to appreciate your losses. Why sir? It hurts! That’s my hard-earned money… Jamal cries. Exactly, Jamal! It should. Life is all about lessons and so is the market. Have you ever received something without giving? Uh… Not that I can remember. Exactly! It’s because you haven’t. In everything, there’s a relationship. Now—this relationship can either be mutualistic or parasitic. Trading is only parasitic if the lessons aren’t fully digested. Listen, If I gave you $500 and you misplaced it; you became careless—It got missing. What will you do? Err, I probably look for it Sir. “What if you don’t find it, remember it’s not your money”, The man responds. “I’ll probably cry Sir. How else would I replace it”, Jamal interjects. Okay great, You know that “crying” doesn’t bring the money back right? That’s exactly what happens in the market. We fail to learn from our mistakes, we let our emotions take over, instead of listening to the actual lesson. The next time someone gives you $500—I know for a fact—Jamal, that you’ll be more careful. You know why? Because there’s being a loss before. Now, you either learn to protect it or become careless again. What will you choose? I’ll learn to protect it Sir. Good! That’s the first lesson. In the market however, you might keep losing this $500—Each time there’s a loss, there’s a lesson. Right? Which brings me to my next lesson. It’s a question first; then after the question—comes the lesson. Are you ready for it Jamal? Heh, yes sir! Haha! Nice, you want to take down notes. Interesting… Will You Allow The Market Bully You? Have you ever been bullied in life? Either a childhood school bully or a boss… “Oh, my God—Yes sir!”, Heh!… okay, That was a fast response—seems you can’t forget that one. It was bad huh? Bad! Anyway, bullies’ have power—only when they feel superior. It’s just like a Cat and Mice, the cat seems very powerful when ever he sees a mice—Cos’ he’s bigger. But, most times—The mice is smaller and wiser. A mice that isn’t wise gets trampled upon. So, If that school bully comes now and tries to bully you, will you allow it?… Of course not. I’m probably a lot bigger now and It ain’t possible anymore. Exactly, Jamal. You got better! If you’re that kid that got bullied in school, You know it’s no different from the market. The market is that childhood bully, that boss at work—but this time around, I want you to see the market as “Jimmy”. Yeah, he would bully you but—you should allow him: to gain from him. Try to come to terms with his agreement. Now, you have to be friends with this bully… What!… Why, I mean how do you get a bully to be your friend? “You don’t force the bully to be your friend Jamal, he doesn’t have to like you—but you have to like him.”, The man responds. The reason you allow this bully (market) to get to you—is because, you get to gain from him (the bully). The bully is a tough nut to crack but, knowing that each pain becomes an experience is the goal. Have you ever lost something valuable before Jamal. “Uh… Yeah” Jamal stutters, while answering. Okay, great—how did you feel? Not a pleasant emotion, right?… but, what happens—you learn from the experience. Two choices: you either decide to move on or avoid it right? What do you do Jamal? “Run away—I guess. Cos’ I really don’t want to feel that pain again. It’s horrible so why try to experience it twice?”, Says Jamal. Trading should a pleasurable pain—like a woman who just lost her virginity. A bittersweet experience… I thought you will say that. Listen Jamal—the bully is going to keep hurting you, as long as, you still in that school. Likewise, you’ll probably encounter more losses—as long as, you decide trading is what you want to do. Listen, in life change or experiences just don’t happen—they only happen when they become a necessity. You decide you want to change; when you know that beating becomes unbearable. It’s not something you run from. Don’t be a wuss Jamal! Face it!…You’ll need to actually face it. Most traders are wimps—looking for the nearest rat… because, the elephant becomes too big for them to handle. So, are you a wimp or are you valorous? The more you learn from the experience—the better you become. But, the more bruises.. Until, you become so good that—you no longer fear the bully and you might even learn to face this bully. Do you get it? I’ll give you some time to digest that before the last and final lesson. Try to know the other side “I’m ready sir!” Great! A wise man once said, “Certainty is the only illusion a trader has.” Do you know what that means? … I’ll take that as a “no”. Anyway, have you ever seen a coin before? Heh—who am I kidding, you probably have some in you pockets now. So, a little exercise—shall we? Now, look at the front of the coin you’re holding—carefully study it, Now—tell me what’s at the back of it? Eh… I have no idea sir—I’ll have to flip it. Exactly, most traders don’t actually flip this coin—you see. They don’t even want to know what’s on the other side. You know why? It’s because they love their comfort zone. These are the wuss traders; the ones who run from the bullies. We call them, “routine traders”. There are always two sides to a coin but most times, until you flip it… you’ll have no idea what the other side looks like. I won’t even lie—we always like the safe route to things. If something is safe for you, you might just tell yourself, “uh, well—I like it here. Why stress to know what’s on the other side?”. But, in trading—there’s no safe route. Don’t hold strong opinions about things you don’t truly understand. You have got to take that risk. No shorts to this cut, Jamal. There are two sides to a trader: the one who runs from the bullies—because the pain become unbearable and the ones who face the pain—knowing that the end to that tunnel is great. The question is, what side are you on? Most traders quit because they prefer the latter—“I like it here tommy, don’t pull me out yet—I can’t face the world”, They’ll say. My final lesson is; have an open mind. The strong willed—don’t always will lots of bucks here. Try not to have a strong opinion in your trading decision. Be the trader who adapts to the changes of the market—not the one controlled by it. Remember, be the lame kid who takes the blow. Painful but, worth it. Now You Know… What Next? You know Jamal—I tell people, “those who have strong opinions about the markets are either knowledge-able or totally ignorant”. The only strong opinion you should have about trading, Jamal, is—you shouldn’t be married to an opinion. A dangerous thing about trading is that—it isn’t really a game for spectators. If you ask me, the most dangerous sport out there is—trading. Traders are also the most dangerous people on planet… where-ever you breathe right now. You know why? These guys take crazy risk, without any form of medication in place. The number of heart breaks a trader has in a day/week will be enough to make him never believe in love. Haha! Nah trading is actually fun but—don’t let anyone deceive you into thinking, it’s all roses and sunshines. It’s really not! It’s a mental game—about emotions. Where the emotional ones get kicked out; The heartless/ruthless ones always make it far. Simple!, they really “don’t care”. My friend Scott will say, “i’m suspicious of people who have strong opinions on complicated stuffs”. Heh! people who sugar-coat things—they don’t tell you what you should hear. They’re also the ones who post for the media sake. Now most traders try so hard to understand the market that—they actually fail to make money. Don’t lose yourself in trying to beat the market… You can’t! She’s way smarter and richer. You’re a pauper! Stick to management cos’, this one’s a thief. She’ll dig you of all your diamonds if you think you can beat her. Probably the smartest woman out there! Anyway, Jamal, I think with this few lessons of mine—you should never, ever, think you’re the worst trader on earth. The fact that you even lost means you tried. Well, it’s a good thing you met me. Hey! i’m Trader Steve—the worst trader on earth.
OANDA:NAS100USDEducation
by lazyluchi
2
HOW NOT TO LOSS OUR DIGITAL ASSETS PART twoHow to make a suitable portfolio? First of all, it should be noted that people who do not look at this market as a job and have come only for profit, do not involve more than 10 to 20% of their total capital in this market. In case of loss, their sentiment will not destroy their entire account and they will not have stress in dealing with different market conditions. We must first divide digital assets into safe assets and low safety assets. Safety is considered here in terms of value preservation. In Crypto, I consider BTC and ETH as safe assets. But certainly BTC's share of the portfolio is larger than ETH. Now let's move on to how to manage a portfolio: 1. Out of 100% of our total account, we should allocate about 40 to 50% to safe assets. Because in the event of a market downturn, these assets perform better and retain their value better. Of course, you should buy these assets in the right place, not in any market conditions. Not on top. 2. You can allocate about 10 to 15% of your account to major Altcoins. Major Altcoins are those with a market cap of $ 2 billion to $ 3 billion. You can roughly count the top 50 coins in the coinmarketcup.com 3.You can allocate about 10% of your account to middle Altcoins. middle Altcoins are those with a market cap of $ 300 million to $ 2 billion. 4.You can allocate about 10% of your account to minor Altcoins. minor Altcoins are those with a market cap blow of $ 300 million. These coins have a high risk but also a higher probability of profit. 5.We keep about 10 to 20% of the account tether, to buy in more suitable places or use it for short-term trade. Of course, in some situations, with changes in dominance and other things in mind, changes can be made to these percentages to work better, but this can be a major base in portfolio management. I hope you have a good year. Merry Christmas
Education
by Crypto_Scorpio
HOW NOT TO LOSS OUR DIGITAL ASSETS PART ONEThis is a tutorial post and is more suitable for investors and we are not talking about short-term traders. Friends, the crypto market is not like the Forex market and the stock market. You have to work hard to keep digital assets in this market because it is a wild market. Do not compare this market with other markets because this market is very volatile and shallow. There are big players in this market. In this market, fluctuations of 30% are normal. The crypto market gives you Fiat money, but it takes away your digital assets, and if you do not manage your portfolio, you lose your bitcoins.If you measure your assets based on bitcoins, with the manipulations you do, with the BUY in top and sales in bottom, your bitcoins will be at least halved, maybe $ 5X profit, but in the end you see your BTC are halved and you no longer know what to do. BTC never gives you the opportunity to buy in the right place. It breaks the support you are looking for or it does not reach you and leaves you and you can not buy it.Try to buy bitcoin by accumulation and distribution method, select the appropriate range to buy and enter in several steps, and do not wait for the top to sell and sell in several steps. Technical and fundamental analysis are good, but the most important part of investing is capital management, portfolio management and emotion management. Try to understand the nature of this market and be patient. Patience is very important in this market. In the next post, I will provide you with a suitable portfolio management method. I hope it is useful for you
Education
by Crypto_Scorpio
2
8 tips to keep you sharp over the weekend!Tomorrow is Christmas eve, the general markets will be closed, of course crypto will still be rocking and rolling, but the CFD markets will be shut. In day trading it is very easy to get rusty, a few days will do the trick, so with a 3 day weekend approaching we wanted to use this time to help you stay on track so you remain "hot" for the last trading week of 2021! For those of you who will be celebrating Christmas, you will be busy Friday and Saturday, but we're sure you can find a cheeky hour on Sunday to work on yourself, since the weekend is the perfect time to grind, and do things such as reviewing your trades, seeing which assets moved the most and why (so you can take advantage of these situations in the future). Today's blog topic will be guidance on what you could work on this weekend to keep yourself hot and not get rusty! "DO OR DO NOT, THERE IS NO TRY." - YODA 1. THINK HOW CAN YOU IMPROVE YOUR PATIENCE – Having patience as a day trader will help in many ways, one of them being better entries, since entries are directly connected to our PnL it is then a vital skill to acquire, think what you could do to become a more patient trader and create a plan for the new week and apply it on your first opportunity! 2. REVIEW THE MAIN MOVERS THIS WEEK/MONTH – Every successful person, whatever industry it may-be practices a lot, the best way we trades get to practice is to review the charts and see what you could have done to profit in the new week by learning what you missed the week before 3. REVIEW YOUR RULES (PROCESS / ENTRY / EXIT / WATCHLIST) – Always helpful to read over and reevaluate your trading rules, it is a very underrate process, and because the majority of traders do not review their rules and processes they generally do not know what they are nor do they apply them! 4. VISUALIZE SUCCESS AND CHALLENGES – Visualize yourself making good/great trades. see yourself going through different scenarios and achieving the profits you seek. From seeing the perfect setup to executing the trade to exiting the trade, every aspect of trading, see it and feel it. Then also review the challenges you face as a trader, I'm sure you can think of dozens of them! 5. THINK HOW CAN YOU MAKE ONE A+ TRADE AT A TIME - Work on your entry process and criteria, know what the BEST TRADES look like, write it up! So when they show up you can execute with a larger size and maybe bank a much bigger profit than normally. 6. TALK TO EXPERIENCED TRADERS – It is very helpful to get ideas and see what these traders are doing, there is always something for you to learn, even when you become a millionaire trader, you'll still have so much to learn! 7. HOW CAN YOU IMPROVE THE RETETION OF PROFITS – If you are up on the day, set a tighter stop loss to keep your profits, that could always be a solid idea right? There are many ways to retain profits, such as lowering your size after a strong winning streak in a day... but its also your job to think about how you could do this better! 8. WORK ON YOUR PREPARATION – Preparation is Key for success! If you fail to prepare, you prepare to fail! We prepare for a solid hour before we start to trade, there is value in this... so this weekend create your "preparation process" and put it to work! Ok we are done! Thanks for reading, but before we let you go we have a small request! If you come up with any good ideas that work for you, or have them already, please share them with us we'd love to learn from you too! Merry Christmas and all the best!
Education
by PrimedGroup
79
Breakout Trading | 7 Steps to Follow 📝 Hey traders, Breakout trading is one of the most popular trading strategies. Being quite simple in theory, it remains quite complex and complicated in practice. In this post, we will discuss 7 steps every breakout trader must follow. 💬And just in brief about a breakout trading itself: this method aims to spot a key level (it might be horizontal support/resistance or a trend line) and then to trade its occasional breakout assuming that it will trigger an impulsive move. 1️⃣No surprise, the first task of a breakout trader is the identification of key levels. Preferably these levels should be spotted on weekly/daily time frames. 2️⃣Once key levels are spotted, a breakout trader should patiently wait for the test of one of those. His goal is to wait for a breakout. In that step, many traders fail. The problem is that in order to confirm the breakout, one should have strict & reliable rules to follow. The rules that describe a confirmed breakout. *I apply the following rule: the breakout of a level will be considered to be confirmed once the candle closes above/below the structure on the highest time frame where the structure is recognizable. 3️⃣Once the breakout is confirmed, the next step is to wait for a retest of a broken level. Why retest? Simply because a retest gives a better risk to reward ratio for the trade. And even though there is no guarantee that the price will retest the broken level and because of that some trading opportunities will be missed, in the long run, retest trading produces higher gains. 4️⃣Opening a trade on a retest one should know the exact target levels. The levels where the profits will be taken. Again, newbies traders make a lot of mistakes on that step. Remember that your targets must be realistic, they must be based on closest strong structure levels, not on your desired returns. 5️⃣Also, a breakout trader should set a stop loss. And again, a stop-loss level must be safe, it must be set at least below/above a previous minor structure to protect you from stop-hunting. Stop-loss reflects the point where the trader becomes wrong in his predictions and where the trading setup becomes invalid. 6️⃣Once the trading position is opened and stop-loss & take-profit are set, one should patiently wait. There is no guarantee that the price will start falling/growing sharply after the breakout. The market may start coiling for a quite long period of time before it starts acting. Breakout trader must be patient not allowing his emotions to intervene. 7️⃣Lastly, one should remember that his exit points are stop-loss/take-profit levels. Stop-loss adjustment in case of a position drawdown, preliminary profit-taking, and target extension are your worst enemies. Be disciplined, don't be greedy, and keep your emotions in check. Of course, this 7-steps trading plan is not sufficient enough for profitable breakout trading. There are so many nuances on each step of the plan to consider. However, let this plan be your initial guideline: learn & follow that and with time, keep elaborating its rules until you become a consistently profitable trader. Are you a breakout trader? ❤️Please, support this idea with like and comment!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
19
Why Do Most Traders Lose Money?Hi Traders, welcome back to another workshop. In today's workshop, I'll be sharing some personal perspective on why do most short-term traders lose money. I've been trading for over 5 years, and yet I've seen these repeated traits happen in most losing traders. 1. Sense of Urgency - Most traders approach the market with an expectation of low risk high return. Just ask yourself, who doesn't want to achieve highest possible return in the shortest period of time? Everyone wants to make money, but the main thing is the process. - How do you extract money consistently from the markets? How do you differentiate yourself from the 95% of the losing traders? 2. Risk Management - Risk Management is one of the key element to make sure you stay in the business as long as you intend. - Without a proper Risk Management, there's no way you can come out the markets long-term being profitable. - It also directly reflect your patience level, patient traders always have a fixed risk per trade to pre-define their risk, simply because they understand that the outcome of any single trade is random. The eagerness to get-rich-quick will often blind yourself from protecting your capital. 3. Trading without an Edge - Often new traders neglect the importance of having an Edge. An Edge simply means you are being confidence in a sense that you'd always come out profitable in the long-term. The outcome of any single trade is completely random, so stop focusing on the short-term result, and never switch your trading system purposelessly. 4. Mindset - Above all comes down to this one final key element, which is the proper mindset. - Always think in terms of probability and possibility. Having a realistic mindset motivates you to put in the necessary hardwork to achieve your goals, not by day dreaming. Let me know your thoughts in the comments below. If you enjoy the content, make sure you click the like button and share it with someone who need to read this.
KRAKEN:BTCUSDEducation
by TraderNeoh
Why Traders Suffer From Analysis Paralysis In TradingAnalysis-Paralysis In Trading This is an article I’ve been avoiding. Maybe it’s cos’ I’m guilty of it. You know, A bunch of knowledge makes—jack cross the rubicon. It’s December 1, 1990. ugh… what a glorious day! I mean—I’m grateful I survived. Are you? (rhetorically—cos’ I talk to myself a lot). Anyway, I finally get to attend “School of Candles” in Pretoria. South Africa is a great country but, only because they have one of the best—Trading schools in the world. Hashtag “respectfully” . I mean—Finally! Heh… I’m here. The Oakland… miserable red-collar guy is here. Can you believe it? Considering all the blown accounts and failed trades—I finally left the country to… South Africa. Pfft… Don’t mind my excitement—at least—I’m not sitting on my a*s reading this article because I have a problem. You are! i’m pretty sure you haven’t travelled out yet and it’s cos’ you keep losing. You’re a loser! At least… someone had to tell you. Don’t worry that makes two of us. Yeah—you and uh… you! Ugh… duh… I know you are not here for my—school of candles story. You’re here cos—you are stuck! Am I right? Anyway, I’ll help I promise. But, you have to promise me that I won’t be wasting my time. Do you promise? Okay—Great. So… Analysis Paralysis In Trading (What Does That Even Mean?) Look at them… so peaceful. Quick question—Have you ever really stopped to watch kids play? The laughter, glee, ambience, passion—so peaceful; so serene! These guys literally have nothing to worry about. Don’t you miss that? When last did you laugh? No… like actually laugh. These days—we have to watch a funny illiterate online to… crack up. How miserable can one’s life be? So sad; so depressing and why’s that? I don’t know about you—but, I miss those days. Nothing to worry about. You’re probably wondering, “What’s he on about?”… I just had to remind you of what your life (hopefully you’re still breathing)… is supposed to feel like. Before… I tell you how it actually feels like. That’s why you’re here right. Shucks. Analysis paralysis—wonder who comes up with these names. In a lame man’s term, it’s basically being paralyzed (not literally) from over-thinking. over-researching and over-analyzing… Why do we do these things; why do we even do anything. Imagine the thought of—mentally paralyzing yourself… Do you love yourself at all? Of course not—Humans (you reading this now) think of the possible worst for—every situation. Imagine… You go out and a complete stranger gives you money, from nowhere; out of the blue. What’s the first thing that comes to your mind? Be honest, Don’t lie. That’s what I thought. Anyway, Being completely mind-paralyzed is bad. I mean … have you seen—how they have to literally drive paralyzed people everywhere… They become furnitures (not trying to be insensitive); they really can’t do anything… on their own. You’ll end up—A furniture trader! Analysis Paralysis In Trading (How Can You Tell?) In school (school of candles), I attended every class. Wyckoff 101, Fibonacci 203 (borrowed course), Way of the candles, Price-action 105, Order blocks and Market structures 103, Supply and Demand, Indicators not manipulators… Weird ones! I took all. Trust me —I was a diligent student. But, I had no direction. I practically learned everything and anything. I mean—I wanted to be a great trader (don’t we all). The next class (Final year) required… Mastery. I realized that—sticking to one thing was a problem. Oh! No, I can’t choose. I literally attended all classes—just to find out what was best for me—even after taking these classes… in my first year. Hello Jane, I know this is kind of awkward… But, what’s your major? Uh… Order blocks. Imagine! I couldn’t even come up with something. What the H-E-L-L do you want Jamal? You’re just going round in circles. I couldn’t choose. Wanted to take action but, how could I? No one gave me the memo. I don’t even know what making decisions feels like. “Making Decisions” suddenly sounds like the strangest word in—the dictionary. So, tell me have you been in this position. All you keep doing is learning—anything; everything. But, no actions! Two ways you can tell: Can’t seem to make a decision. Always looking for a better solution—without actions! For analysis paralysis in trading It’s not something you can cheat. As a trader, You can’t go over or under it—Dealing with it is… the only solution. You keep delaying actions—whilst over-analyzing every situation. For this trader—you keep imaging downsides… Always the negatives; never positives. Imagine taking a trade—but, you’ve already imagined—300 scenarios of your plan going badly. Pfft… heh—who does that? Uh! you. You’re literally mentally paralyzed. What other options do you have than over-thinking everything. Are You Asking The Right Questions? Ta-ta… I envy them so much. Anyway, You learn to be in the comfort zone because… Why stress your brain till it’s paralyzed. Your brain is literally “yours truly”—It would always try to keep your safe. It will protect you, which is good. But, you become safe and unsuccessful. In trading, which do you prefer? Actually making a decision irrespective of the outcome or… staying out and avoiding everything. I mean if we’re being honest—the second option looks safe and comfortable. Will you choose that though? Remember you want to be rich; you want financial freedom. Even if you go through hell—do it without hesitations. Yup—That quote is a reference to the previous sentence. Eh… your lack of decision making will only make you—miss out on a million market opportunities. So, are you asking the right questions? When you literally ask yourself the right questions… It gives room for a clearer thought process and faster decision-making. Honestly though—Let’s blame google. An increase in options; an increase in choice. The fear of making the wrong choice arises. Then you become mentally paralyzed. Most traders today are stuck. I remember meeting a guy (Joe)—In one of my trading communities—in school. This guy found it hard to make a decision. Heh… So he buys and sells at the same time. Analysis paralysis in trading can make you a fan of gambling. But, there’s a solution… You can start by answering the right questions. What are the right questions? Is it worth the risk? Will it matter in 5 minutes? What was my first choice? Can you answer these questions? Make it a habit to answer these questions before—you take a trade. Not just trading—anything at all… Train that brain of yours. Is It Worth The Risk? You know some-times the best way to eliminate choices is to—know the risk attached to each choice. Imagine having a $50 account (your only money) and trying to take a trade. You’ll probably over-think every thing because—you just can’t lose that money. I mean… Heh—that’s all you have right? So, the first question should be… “If I take this trade, is it worth the risk”. Note that… you might lose—but, the keyword here is “risk”. How much are you willing to let go of?… That should be the first thought. Try this exercise and you have to be truthful—always!… If I was given $50 and I was told to give someone $5 (out of your $50)… Would I be okay with that? If you will, then you can decide to risk 10% of that account—knowing that you won’t feel bad if you lose. Ergo, You’ve just made a decision—because you eliminated your options. I mean losing 10% of $50 is better than losing all. Now what next? you need to eliminate all trades that will make you lose more than 10%. See, No mulling— just progress. Note that… Not all trades are negatives. But, we should always consider the risk. Will It Matter In 5 Minutes? Now you know the risk you’re willing to take, the next question is—Will it matter in 5 minutes? Ever heard of the “5 by 5 rule”? Well, the 5 by 5 rule states that—if you come across an issue take a moment to think—whether or not it will matter in 5 years. If it won’t, don’t spend more than 5 minutes stressing out about it. Forget the “5 years”—My own 5 by 5 rules is… don’t waste 5 seconds pondering over it, if it won’t matter in 5 minutes. Mine works right? I mean… 5 years is a pretty long period you know. By the way, the market waits for no man. The fact of the matter is, there are some problems that do not need your full attention. Why stress over some money you’re okay losing. If after 5 seconds you’re cool with it then—go ahead! Do me a favor. Let’s practice… Um—can you remember what you just did 5 seconds ago? If you can, it matters; If you can’t, “It’s irrelevant and doesn’t matter. There, fixed right! What Was My First Choice? The human mind is like a sick computer virus. It’s basically, randomly, just processing relevant and irrelevant informations and thoughts. You tend to have all these choices, thoughts and feelings all mixed up—especially during pressure. I was listening to Roger Khoury the other day and he said, “When driving a car in a—calm state—you’re basically just following the rules of the road right? But, what happens when you’re late for a meeting—You find yourself breaking all these rules.” Similarly… same applies to the market. You don’t have time; you’re supposed to make a decision—If not, the market leaves you. Then if you’re like me that attended all classes in—Pretoria, you probably don’t have a particular strategy. Different options; different opinions. What happens? You become paralyzed! All this can be avoided if you remember your first choice. Many traders fail to understand that our gut feelings, our instincts—matter. Where do instincts come from? In as much as the brain behaves sick sometimes—It also stores useful informations… knowingly or unknowingly. These useful informations are usually processed when needed. Do you ever know something and wonder—how you know that thing? It’s cos’ you probably already came across that stuff but, you ignored it. Cos’—It didn’t matter. But, look who wasn’t ignorant “your brain” yeah, remember… “Yours truly” loves you. Those first choices… are thought of for a reason. So, make them your last resort—always! Havoc Of Analysis Paralysis In Trading Hey guys, my name is Jamal and I’m a victim of Analysis Paralysis in trading … “Hey Jamal”… Sounds familiar. Yeah, group home. My encounter with Analysis Paralysis in trading wasn’t a great one. There were consequences. Each with its own baggage. After I narrowly graduated from the School of Candles, Pretoria. I mean I’ve learnt everything—I was ready for the market. On Tuesday, May 3, 1994, I deposited $50,000 to my trading account. As a graduate of School of Candles—what was the next thing? To get into the real world of trading . A nasty encounter in the market occurred. I found a GJ (gbp/jpy) trade, the daily had a bearish head and shoulder, the—4 hour, a double bottom. On my chart, I had Bollinger bands, Moving averages, Relative strength index… Name it. Yeah —I was that confused. Didn’t know if to—buy or sell. Oh! No, a clash of interest. My indicators… some gave me buy signals; others sell signals. Oh my God! What now? What’s the direction—Now I’m exhausted, tired, I can’t think straight! The market decides to buy… Yeah, I guess I’ll go long now. The sound your phone makes when you just placed a trade. Greedy old Jamal, used 2 standards for US30 on a $50,000 account. I was more than confident. The market does it thing. What! no… no… n0—Why is there a sell taking place now? No! The Havoc That’s it… That was so easy I lost it all. Everything! “What was the point of school then?” I thought. Useless! You’re so useless Jamal. You can’t get anything right. I couldn’t make a decision… My brain said, “Pause”. I was paralyzed and I failed. Three things happened to me: My trading performance reduced Creativity was gone. Couldn’t decide on a strategy and all patterns became useless. Lost my willpower. I couldn’t make a decision—too many options. Thank you for listening! “Thanks for sharing Jamal”. How To Overcome—Final Words Don’t ask me what I went to a group home to do. Analysis paralysis in trading affects you mentally—It builds into a habit and you become the hesitant trader. Do you remember him? That guy who couldn’t make decisions, that insecure coward. Yeah—that was who I became. June 23, 1994, I was in bed. Thinking, crying, staring—”What went wrong?”, I thought. How come… I mean i’ve gone to one of the best schools, learnt everything there is to learn, and graduated with a 2:1. So, what exactly is the problem. I discover that—I was. “Jamal you are the problem”—I discovered 6 things. These 6 things I’m going to tell you are very important. I’m telling you because—I love you. You shouldn’t follow my past; you shouldn’t make my mistakes. My mom’s teaching helped. Remember when she gave me the trading elements and principles… Steps To Overcoming This Nuisance. This is the truth; this is my truth. After a month I discovered that: You need to trust you. No one else opinion matters in the business of trading. It’s your business—You should mind it. Limit the amount of research (information you consume) you do. It’s called “learn and earn” for a reason—Not “Learn and continue learning”. Talk to someone. If you think you’re stagnant, you need to pour out all those information—on someone. Teach them! Perfection isn’t the key. Progress is! Know your end goal always. Notice every thoughts and emotions. If possible, write them down. If you follow this manual, you should never have reason to be stuck or mentally paralyzed. Remember sharing is caring! Tell someone about this article. Most traders have no idea what analysis paralysis in trading is.
OANDA:NAS100USDEducation
by lazyluchi
2
The Quarters Theory (15 minute) Part 4-4If you use the 15 minute time frame for entries, exits, stop losses and targets, I would strongly suggest you use the quarters theory- BUT- it is actually the eighth theory (place these lines every 12.5 pips away from each other). Example 15 minute chart of GbpJpy pair today: (Place lines every 12.5 pips away from each other)- if you are scalping and or day trading. These will define your trades and structure. 150.500 150.375 150.250 150.125 150.000 149.875 149.750 What do you see about price action at these different price action line levels? Does PA go right thru them without any issues? Does price action stop and reverse? Does price action reverse at these lines? What pair are you trading- What price is on chart now? What session(s) are open now? What Time is it? Look left on all charts and put these either quarter lines on them above 1 hour or eighth lines on time frames below one hour time frame.
Education
by Anbat
1
The Quarters Theory (1 hour) Part 3-4The quarters theory on one hour time frame is great for both day trading and/or scalping. Make sure you put the quarter lines every 25 pips away from each other, just find the closes whole round number and start there with adding lines on charts. On noted GbpJpy chart the quarter lines are as follows: 150.750- yellow line 150.500- red line 150.250- yellow line 150.000- black line 149.750- yellow line These lines help with structure of price action, what has happened before at these lines? go left These lines help with entries, exits, stop losses, targets and risk management.
Education
by Anbat
The Quarters Theory (4 hour) Part 2-4Quarters Theory example on a 4 hour chart of AudJpy: What does chart show you? 1) Whole round numbers (black lines)- 100 pips away from next round whole number 2) Quarter numbers (yellow and red)- 25 pips away from next quarter number These lines make it a lot easier to trade any time frame, why? 1) You can set you enter and exits at these lines on charts 2) These quarter lines give you structure and informs you where price action swings had happen before 3) These quarter lines give you a great place to set your stop losses, on 1:1 or higher risk reward setups. 4) These define your trade, so you can set your risk management via quarter lines on charts Per attached chart you might know where I think price action will continue to today and/or tomorrow. Yes, you could do a 50 pip stop and 50 pip target on these 1:1 trades but you need a 60% or higher win rate if you only do 1:1 RR trades. But this is not hard to do if you have the knowledge. If you either day trade and/or scalp, I would strongly advise you to you tube and/or google The quarters theory and start using them to define your trades, lot size, entries, exits and targets. This will help you greatly in your trading.
Education
by Anbat
1
The Quarters Theory (Daily) Part 1-4On example daily chart of EurAud (on this article)- what do you see related to the quarters theory? support and resistance? trading edge? I see 100 pip round whole numbers (black lines) divided into four equal parts of 25 pips apiece (red and yellow lines)- If you did trade with 100 pip stop losses- this would be a great way to trade either position, swing or daily charts- from whole round numbers to next whole round number. Those would be 100 pip stop losses vs 100 pip targets or 1:1 Risk Reward setups- you would need to have a win rate of 60% or more to make a profit with this type of trading, or you could set a 100 pip stop loss and let trade run for either a couple, few or many more days and have a higher Risk Reward setup. The quarters theory started with 1000 pip areas, like example from 1.6000 to 1.7000 would be 1000 pips, break this down into four equal parts or as follows: 1.6000- major round number- 1.6250- minor number-250 pip area 1.6500- minor half number- 250 pip area 1.6750- minor number- 250 pip area 1.7000- major round number This can be done on any charts from monthly down to 1 minute and should be done for knowing possible entries, exits and risk reward (lot sizes)- on every trade you make. I use the quarters theory for scalping, it will give you a trading edge and control your trades within a certain structure of the market.
Education
by Anbat
1
I Just Took a Big Proft - What Should I do?Hi Traders, welcome back to another workshop. This topic is often a big question mark within a lot of traders, wondering should they continue trading after getting a jackpot trade? When it comes to this, again, there's no right or wrong. It is all about your plan, mindset, and performance. Below I've summarized the 3 main highlights of this workshop 1. Identify whether it is a good win or bad win - If a winning trade is within your trading plan, something that you carefully planned and executed, then it is a good win. Because most likely it is something that is repeatable and duplicable, which can contribute a big part to your long-term consistency. - If a winning trade is not within your trading plan, then often it is categorized as a bad win. You took the trade based on impulsive behaviour, you jumped into the chart just start taking blind trades. Yes, it is still a winning trade, but as a professional trader we do not determine the quality of a trade based on the outcome. It all depends on the execution of the strategy and the quality of the setup itself. You can have the best setup where everything aligns but still lose money. Think about it. 2. Do a mindset checking - "Is my mindset still clear?" - Is your mindset still at at peak? If the answer is yes, then feel free to continue trading, because who knows it could be one of those good months? - But if the answer is no, then probably you should take a step back. You can either trade less size to track your performance or you could perhaps stop trading and focus on something else, then come back stronger. 3. Set a drawdown limit (Very important) - Always pay yourself first. Active trading is still considered a job. I understand the importance of compounding, but always take a small portion of the money and pay yourself first, then continue growing your account. - By setting a drawdown limit, it calms your mind as you secured portion of the profits. It always avoid you from performing poorly due to a different mindset approach then eventually give back all of them back to the markets. Let me know your thoughts in the comments below. If you enjoy the content, make sure you click the like button and share it with someone who need to read this.
KRAKEN:BTCUSDEducation
by TraderNeoh
4
What Type of Trader Are You? 🤔 Hey traders, In this post, I decided to make a comparative analysis of three main trading styles: scalping, day trading, and swing trading. We will go throw the main pros and cons of each approach and discuss common misconceptions. 🏃‍♀️🏃 Let's start with scalping. I guess many of us were impressed by videos on youtube showing how a guy makes thousands of dollars applying a simple scalping strategy. Some of these videos get millions of views and excitement from the audience. No surprise the majority of newbies start their trading journey with scalping strategies. Practicing some of them and trading on a real account, these traders suddenly realize that the youtube videos barely reflect the reality of scalping. Scalping requires being extremely reactive, making trading decisions quickly, and constantly staying focused. Moreover, it turns out that this trading style is extremely risky, and occasional losing streaks become an essential part of the process. A pro scalper usually opens dozens of trading positions per day and manages many of them simultaneously. Even though it is a fact that a solid scalping strategy is a true cash machine, the constant pressure and high level of stress make many traders leave that game blowing their trading account. A true scalper is a guy with iron nerves and a sharp mind. It takes many many years to become a person like that. 🚶‍♀️🚶Intraday trading is a bit simpler. While quite often scalping gives a trader just a couple of minutes to react and make a trading decision, intraday trading gives the hours. Such a trading style is slower, the intraday perspective is not that chaotic and irrational. It takes many hours for the trading setup to play out making the trade management process not that time-consuming. Moreover, intraday trader tends to open much fewer trading positions than a scalper. Analyzing primarily 4h/1h time frames less trading setups meet the entry conditions. That primarily affects the potential gains though. Lesser you trade, the less money you make. I consider myself to be an intraday trader. Trading full-time of course I was trying different scalping strategies, but I must admit that I can’t make the decisions that quickly, I can’t constantly hold so many active trading positions in my mind, I need some time to think, I need some time to do other things, I want more freedom. For that reason, intraday trading is my choice. And let me be frank right here: I am not trying to say that intraday trading is simple, it is SIMPLER than scalping still remaining extremely complicated to master. 🕴🕴 If you want trading to become your side income if you have a full-time job and just a couple of hours per day for charting, I believe that intraday trading/scalping are not appropriate for you. In your situation, I would consider swing trading. Swing trading is extremely slow. Being primarily focused on weekly/daily time frames a swing trader tends to hold trading positions for weeks, sometimes even months. Moreover, it takes many days for a swing trading setup to form and the market gives a trader much time for reflection. Of course, that primarily affects the potential gains: I believe that among the 3 trading styles that we discussed, swing trading generates the lowest returns. Swing trader is the best starter for newbie traders. Analyzing higher time frames they can constantly follow the market and don’t miss the major moves. Just 1-2 hours per day are enough to follow dozens of financial instruments. Only by becoming a consistently profitable swing trader, one can try himself in intraday trading. Working with hundreds of struggling traders from different parts of the world I realized that the majority has the inverted perception of scalping/intraday/swing trading. I hope that this article will shed a light on that topic. What trading style do you prefer? ❤️Please, support this idea with like and comment!❤️
OANDA:XAUUSDEducation
by VasilyTrader
38
Stopped Out - Is It Okay To Re-Enter?Hi Traders, welcome back to another workshop. I believe this is a very common struggle within our community as a Trader. Often when you take a loss on a particular setup, the urge of getting back into the market is intense, and that's human psychology. Do you realized how focused and how biased you are when you are hunting for a specific setup? - Get stopped out once, you'd still take it because it doesn't do any damage to your account - Get stopped out twice, you'd still arguably take it because you allow yourself for a re-entry - Get stopped out thrice, now your emotion is taking over your rational behaviour. Now all you're focusing is either "How can i make my money back?!" or "I MUST be correct" or "This cannot be ..." Familiar? Remember, trading is not so much about Yes or No. It's all about measuring the Risk-to-Reward VS Probability of Success. If a setup is so valuable that you cannot afford to miss it (assume it passed through your trade evaluation process), feel free to take it again and again. But if you're trading the P&L, then i'd suggest you to only allow yourself a maximum of 2 chance entries, meaning that if you're getting stopped out twice in a row in a similar setup, you should probably get some rest or trade the other markets. Most of the time, when a trader gets stop out multiple times in a row trading a similar setup, the emotion kicks in. Now their trading lens is no longer focusing on finding the best setups, but rather 'this must be it'. That's also how the over-trading and revenge trading behaviour pops out. Let me know your thoughts below. If you enjoy the content, make sure you follow my profile and give me a thumbs up for daily fx forecast & educational content.
KRAKEN:BTCUSDEducation
by TraderNeoh
1
Study the Logic Behind Price Patterns, Not by Memorizing!Hi Traders, I won't be doing any particular market breakdown today as I don't see any great opportunity around. But here's some gems to share. In the previous few analysis, I've been talking about the potential failures on UJ everytime price attempt to break above 115. If you've not watched the previous UJ analysis OR in case if you couldn't find it, I'll link it down below for your convenience, make sure you watch it. In my market breakdown videos, I often talk about continuation pattern. In yesterday's UJ breakdown, this was exactly what I was talking about, a continuation pattern. Price had a strong drive/ momentum into one direction (in this case bearish momentum), formed a tight consolidation giving us more information that sellers are attempting to squeeze price lower. This kind of flag-type pattern simply tells you how one side is bullying the opposition, eventually leads to further continuation into the initial direction. For whatever instruments you're trading, it'd still fall back to Price Action. Understanding the psychology behind candlestick movement is what's going to make you profits, not by blindly memorizing strategies or patterns. See you tomorrow for more breakdowns! Trade safe and manage your risk!
Education
by TraderNeoh
HOW PROFITABLE TRADING LOOKS LIKE ? (EDUCATION)Hello traders, I'm making this post in order to help the community, most of you focus to much in technical analysis but let's take back to basics a put things clear. Before continuing reading make sure to give a like this will help the community use proper risk management. Let's talk about simple math : This is simply a conceptual series of 10 trades, taken one after the other from abeginner perspective let's us act as a beginner: if at the beginning you risk more than expected then it will take you a lot of work to recover from that DD%. Make sure to have a proper risk modelling and follow the rules to survive. New traders execute trades with certainties " this loos good" "I will risk more" “ I can’t lose in this trade “ "I will risk more in this one because I need to recover my previous loss" . "I lost the previous one i will risk less" Here is where the problem occurs: When you modify parameters in your risk modeling it will have a strong impact in the outcome. This example was clear. Our dear Mr amateur risked more in the first trade end up losing more ( uncontrolled loss) , then took another normal loss , after that he has two winning trades but guess what? Mr emotional become greedy and risk more after having two profitables trades and guess what ? He just distributed all the money back. See how his biggest loses come after the biggest wins . After that big loss mr amateur is scarred to pull the trigger and of course he cut winners very quickly because he’s afraid to distribute back . Well for him trading becomes a nightmare . Markers are consuming his pocket and soul . Now Let us say for example that you took 10 trades with proper risk management ? With a probabilistic approach? the outcome is totally different. And guess what there is no magic trick . Profitable trading is a unemotional risk manager game , Chose wisely . Here is where the solution is : EVERY TRADE IS UNIQUE , ANYTHING CAN HAPPEN. MANAGE YOUR EXPOSURE OR YOU WILL HAVE NOTHING LEFT TO MANAGE. PRO traders understand that in order to have results they must adopt a series per trade approach Please do follow and comment your thoughts. let me know in the comment section what do you think about it .
Education
by AIRFOREXONE_
8
Forex Signals Providers - Scam? Points you should keep an eye onForex Signals Providers - Scam? Points you should keep an eye on before buying. Points: - Trading Strategy - Trade Management / Timing - Risk Management / Risk Rewards - Broker - Result Trading Strategy: Well we never know what these traders are really doing. We may see the analysis but we do not have their rules (Trading Plan). So you would need to understand their Price Action Confirmation and many more. How to act in certain scenarios and which is the best approach in these scenarios in order to get the maximum out of it. As we all know forex is a business of probabilities. With the right approach we can minimize our losses and maximize our wins. This part is completely missing. When price hits SL you do not know why and how to take the counter trade or when you can simply reenter. This is the procedure of evaluation. Trade Management/Timing: We need to catch every single trade in order to make the same profit like them. This may be very difficult. Especially if you are working at your 9-5 job. Signals may be better for full time traders. But full time traders do not need Signals obviously. You can not make time management as you are depending to your Signal Provider. At the end it will be necessary to take it as a 9-5job. Otherwise you will miss too many trades. This should not be your approach as a trader. You need to only attach in certain scenarios this is how you ensure high concentration and you can increase your win rate. Risk Management / Risk Rewards: Here I see the biggest problem. The majority provider use multiple TP Take Profit Levels like TP1 TP2 TP3 TP4. This does not work properly. It is simply an illusion that they make so much percentage. The only thing what they do is pips. But not the real ROI. This is what will gain you the percentages on your trading account and not pips. Of course there is a Risk Management system with pips but there you have big disadvantages as you can not scale your wins. With a percentage method you minimize your risk/losses and you maximize your wins to the fullest. Broker: Every broker has different spreads. Therefore you may not get involved in some positions or you will get stopped out. This point is only important for Signal Services where the SL are super tight. Result: Here the majority are just faking and they are claiming big results. So you need to check it. This is very difficult. You need here proven results. When they will show you their 6th Tp level hit then you know that this Channel is just giving you unreal results Recommendation: What I suggest is to learn Forex by yourself and from others that are already there where you want to be. Join a community with the same goal. The community should not be too big. Otherwise it will be difficult to interact and also the mentors can not really help you individually. You need to commit yourself for at least 3years nonstop in order to really understand how this business works. It is like in any other business or 9to5 job. You will not just start from the beginning and you will understand everything. No you go to the school, seminars, .... It will just take time my friends. But I promise you with CONSISTENCY you will reach it. "Give a man a fish and you feed him for a day teach a man to fish and you feed him for a lifetime" This is my approach for this industry.
COINBASE:BTCUSDEducation
by DariusFxTrading
2
WHY 95% OF TRADERS FAIL | Top 6 Mistakes to Avoid 🙅‍♂️🙅‍♀️ Hey traders, That is the absolute fact: 95% of traders will fail. Working with hundreds of struggling traders from different parts of the world, studying their trades & following their reasoning I found a lot of commonalities. In this post, we will discuss the top 6 mistakes to avoid to succeed in trading. 🤖 Rather than studying the market structure, rather than learning price action, many traders are looking for a "secret indicator". The one that will accurately indicate when to buy or sell the market. Failing to find the one, they start looking for a set of indicators giving them magic profit formula. At some stage, they stop analyzing the chart at all. They become obsessed with the indicators. Remember, naked chart analysis always goes first. The indicator is the tool in your toolbox that is applied as one of the confirmations. 💫 The expectations & mindset play a very important role here as well. Many people come in trading with a desire to become rich quick. To buy a subscription to some signal service promising them thousands of pips monthly and quite their 9:5 job. Or to watch a couple of educational videos about trading and after a couple of days of practicing become a whale of Wallstreet making thousands of dollars with a single trade. Such a mindset is completely wrong. Instead, you must realize that trading is extremely hard. It will take many years and a lot of blown trading accounts before you get how to trade properly. Moreover, even once you mature, you won't make millions of dollars. Professional trading is simply about winning slightly more than you lose and then living on a margin. 📉 Poor risk management is the primary reason for blown trading accounts. And here I am not talking about some "advanced" risk management techniques. Many traders simply trade with oversized lots. Having high leverage & 1000$ deposit at hand the one can simply open a trading position with 1 standard lot and be kicked in by a spread. Or they open a trading position without a stop loss. Being wrong in their predictions instead of closing a losing position they keep holding it. And while the market keeps going against them they pray the God for a market reversal. At some moment they get the margin call. You must learn to calculate a lot size for all your trades. Instead of risking a huge portion of your trading account, learn to set a stop loss and risk no more than 1% of your deposit. 📝 Lastly, discipline plays a crucial role in your success in trading. Once you developed a trading strategy & backtested that you must learn to follow its rules no matter what. Usually, once traders catch a losing streak they start changing their rules, they start adjusting their trading strategy. Remember that losses are inevitable. The only correct way to stay afloat is to be consistent and don't break the rules. Avoiding these common mistakes your chances to succeed in trading will increase dramatically. I wish you be among 5% of traders who made it. Did you make these mistakes? ❤️Please, support this idea with like and comment!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
30
Trade Entries VS Trade Exits - Do you still make these mistakes?Hi Traders, welcome back to another workshop. In today's workshop, I will be discussing the importance of taking of both Trade Entries and Trade Exits. Most traders put way too much attention into spotting the specific entry level. But the truth is, closing out a good position at the right time and at the right price make you money. You can have the best strategy and best entry, but if you don't know how to exit, you'd still end up losing money. Why majority focus so much on trade entries? Simply because the feeling of catching tops & bottoms give them a sense of gratification and achievement. Trading isn't about feeling good, it certainly isn't about ego. It's all about how can you organize your mind to control its performance, so you're consistently extracting profits from the markets, by doing the right thing. Stop aiming for profits, start focusing on the process. Do the right thing. Again, and again. That's how you make money from whatever you're doing in life. Comment down below what's your best and worst positions. Share with anyone you think he/she should be watching this.
KRAKEN:BTCUSDEducation
by TraderNeoh
1
Melody.Finance is a smart contract-based investment Dapp writtenSince its launch in September 2020 as a parallel platform by Binance, Binance Smart Chain (BSC) has been making its presence felt in multiple financial technology markets. With its low transaction fees, fast processing speeds, and compatibility with Ethereum Virtual Machine, it is offering an unbeatable user experience to NFT, Dapp, and DeFi developers. Taking all these attributes into account, BSC has revolutionized trading through its exchange with new and exciting Dapps getting launched every day. Melody.Finance is a yield farming Dapp on BSC. The goal is to make the most of the Binance Smart Chain without having to spend too much time and/or resources. What is Melody.Finance? Melody.Finance is a smart contract-based investment Dapp written on the Binance Smart Chain. It became live in early November 2021 and since then, it has seen drastic growth. Benefitting from Melody.Finance Melody.Finance lets the investors generate stable daily returns from 7.8% to 17% on their investment. To get started, the smart contract offers the opportunity to invest as little as 0.001 BNB. The investors can withdraw the generated BNB at any time from their Dapp. Highlights Following are the key features of Melody.Finance: Strong security: The safety of the smart contract comes first and foremost, and Melody.Finance has been audited by HazeCrypto. No vulnerabilities, backdoors, or scam scripts were found in the Melody.Finance Smart Contract. High ROI: With radical growth since its inception, Melody.Finance is on its journey to becoming one of the highest ROI programs amongst the yield farms on BSC. Between the deposit period of 7 and 30 days, the investors can get a 119% to 239% return on their investment. The longer the deposit period, the bigger the reward. Referral Program Melody.Finance pays an 11.5% commission over 5 levels of referral programs. The investors can share their referral links and allow their friends to join in while making additional profits. Closing Thoughts Melody.Finance is grabbing a lot of attention in the crypto industry given its clean and simple interface, and easy functionality. The smart contract has been experiencing constant growth in terms of user base with its attractive returns and referral levels that offer a wide scope of earnings to its investors. To get more information about melody.finance, head to their website.
BINANCE:BNBUSDEducation
by purga1977
1
Emotional Control in InvestmentWarren Buffett famously said, “Be greedy when the market is fearful, be fearful when the market is greedy.” Knowing fear and greed in investing is therefore a good thing. Our ancestors in the past, thanks to fear, knew how to run away from predators so as not to be killed. And also because of greedier than other animals, people know how to cultivate, store food, and then build a prosperous society like today. However, it is no coincidence that the EQ index argues that the more able a person is to control his emotions, the more likely he is to succeed in life. The same is true in stock investing. Even the skill of mastering emotions is also put on the top by experts, which is a decisive factor in winning - losing, gaining - losing. So what should we do to control emotions in investing, so that the actions of "fear" and "greed" appear at the right time and in the right place? How do emotions affect investment decisions? Let's analyze the characteristics of an investor's work. Every day, when the stock market opens, we begin to sit in front of a price list, with the numbers flashing green and red and changing every second, every minute. Looking at the boring price list, we turn our eyes to other investors, groups - group chats on social networks, to see what people are buying, selling, what is the target price, holding this code or that code for a while. How long,... Then when the price list was off, even the night had fallen, we were still thinking, lost in the discussion and analysis. And emotional trading also emerges from here. For example, if we are happy, we are blind to the risks. If we are afraid, we miss good opportunities. If we're angry, we're willing to take great risks to try to undo the consequences (revenge trading). Living in that variable environment, if we do not have enough bravery and knowledge, it is easy to buy and sell irrationally and lack discipline. And so the account also "exploded" itself. If we do not have enough bravery and knowledge, it is easy to trade irrationally and lack discipline. How to control emotions in investing? Shaping an investment method for yourself When investing in stocks, in many cases, you have to make decisions continuously, and you have to decide quickly. But to make quick and accurate decisions, it is necessary to analyze and process information, set investment goals, plan allocations, etc. There is a lot of work to do, to make a decision. good. To make things simpler, you need to have an investment system, or investment method. This helps you to perform actions according to a pre-programmed logic sequence. It will be the directional compass, so that every time you need to make a decision, you just need to check the conditions of the system and follow it. For example, you can stick to a periodic investment plan (SIP - Systematic investment plan). By continuously investing small amounts, you take advantage of long-term cost averaging (DCA). Thanks to the habit of investing periodically over a long period of time in familiar assets, you will be more prudent in risky speculative decisions. Have yourself an investment system that helps you perform actions according to a pre-programmed logic sequence Building investment knowledge After reading the above idea, many of you will probably think: "I don't know anything about investing, how can I build my own investment method?" That leads to the second element that you need to focus on developing, which is building investment knowledge. Referring to investment knowledge, you will probably think of PE, EPS, valuation methods, ... (if according to fundamental analysis), or MA, RSI, technical indicators, wave counting ,... (if according to technical analysis). This is not wrong, but if you don't look at the investment method, the above knowledge can become a fragment of knowledge. Such knowledge must be systematized from the perspective of a specific investment method and way of thinking. You can find these knowledge in the section To make things easier, you can look to investment advisors, brokers, even fund managers who you know for sure have their own investment systems. However, when receiving investment advice, no matter what method it is, be sure to learn from an expert the important components of an investment method: Clear, objective (non-emotional) logic to make buying/selling decisions. Investment history follows the above logic, applied in Vietnam market. Principles of portfolio allocation, appropriate investment size. Risk management principles should clearly state what we will do when a risk occurs. In addition, investment knowledge is not only professional knowledge but also general understanding. For example, you should know in advance that no method is all-encompassing; a potentially high-return opportunity also carries a high degree of risk; It's not like businesses and the whole economy can grow by tens of percent per year, but you just invested in stocks and want to earn 5 times 10 times,... Don't stand on this mountain looking at that mountain 16 years of experience in the stock market gives me the opportunity to meet a lot of people. Many of my clients confided to me: “I just need to make a steady profit of a few dozen percent per year.” However, they weren't happy when they only held a 35% increase, while a certain X doubled. But there are also lucky people, who bought the correct X code and doubled it, but still regretted: "If I know that, I will buy more". In this case, instead of comparing the actual profit with the original target, they compare it with someone else's profit, or the profit it could have been. No matter how much they say, they will have a reason to regret anyway. The solution to not falling into this situation is to return to your own investment goals and methods. If this still isn't strong enough, try linking that goal to the important things in your life. In software development, there is a concept called user story, written in the format: “Is…, I want… to……”. I love this style of writing because it focuses on the subject and the goal. Applying investment, for example, we can write the following: “As a father, I want to invest to have money for my daughter to study abroad at the age of 18.” I believe if you always remember this , you will be less emotional, less reckless and stick to your investment plan more, because you know this determines your daughter's future.As a father, you cannot bring your child's future to life. can bet. As another example, we could write: “As the breadwinner of the family, I want to invest to have a sustainable passive income source, so that my family doesn't have to worry about finances when I get old.” If you develop If you can express this, you must have remembered your responsibilities, your goal of financial peace of mind.Emotional decisions make you insecure, so there is no chance to dominate. Enjoy the emotions of investing in a controlled manner. Conclude Having emotions is a natural mechanism of all living things, including humans. Therefore, if emotions become too dominant, we should not reject them to the extreme, but should only moderate and control them to an appropriate intensity to facilitate work. Experiencing the emotions of investing is like climbing to the top of Fansipan. Climbing to the top may not be fun, if we don't experience the cold, the slippery pain when climbing the slope, the times we have to struggle with the mud, we have to swing into each bamboo grove to go. Investment is similar. Accept and enjoy emotions, but don't let them hinder us from reaching our destination, let them overwhelm our goals, and erase our motivation.
HOSE:APHEducation
by fxtactix