Hi Guys,
The reason why most traders loos traders lose more than wining, in my opinion are as follow:
1. Inability to see the bigger picture buy focusing on lower timeframe that has too much noise level. It is usually easy to get a better directional bias from the higher time frame than focusing so much on what the market is doing on the lower time frame that may be so noisy.
2. Lack of improper analysis and doing a proper top down analysis before sticking to a directional bias.
3. Inability to quickly recognize that sometime the market, due to certain fundamental or unforeseen circumstance has changed direction away from their bias and accepting on time that they are may be wrong whilst cutting their losses early.
4. Lack of proper trade management, FOMO (Fear Of Missing Out), improper risk management, greed, over leveraging and overtrading can also make a trader lose a seemingly wining trade.
In my AUSUSD analysis/example, I was able to see very clearly on the weekly chart that there is an unmitigated Rejection Block that price is likely to mitigate around 0.6840 - 0.6850 area for a possible strong sell to happen as well as a bullish order block as well as a very tiny Fair value Gap (FVG) that may later be mitigated.
In this particular scenario, there are two things that I can do as a trader:
1. Drill down to lower time and look for a possible buy entry that can be used to counter trade to the bigger picture sell zone which is the highlighted rejection zone; or
2. Refine the "REJECTION BLOCK" zone and look for a good sell entry using some chart patterns or institutional reference points within that zone to take a sell entry.
In either of these two scenarios, good level of patience is required to make money.
I hope you'd all find this interesting.
Please do let me know what you think based on market up. For me, I am looking forward to waiting and selling from the rejection zone as my overall bias is a sell in the medium term.
Trade safely and apply proper risk management.
Regards
The reason why most traders loos traders lose more than wining, in my opinion are as follow:
1. Inability to see the bigger picture buy focusing on lower timeframe that has too much noise level. It is usually easy to get a better directional bias from the higher time frame than focusing so much on what the market is doing on the lower time frame that may be so noisy.
2. Lack of improper analysis and doing a proper top down analysis before sticking to a directional bias.
3. Inability to quickly recognize that sometime the market, due to certain fundamental or unforeseen circumstance has changed direction away from their bias and accepting on time that they are may be wrong whilst cutting their losses early.
4. Lack of proper trade management, FOMO (Fear Of Missing Out), improper risk management, greed, over leveraging and overtrading can also make a trader lose a seemingly wining trade.
In my AUSUSD analysis/example, I was able to see very clearly on the weekly chart that there is an unmitigated Rejection Block that price is likely to mitigate around 0.6840 - 0.6850 area for a possible strong sell to happen as well as a bullish order block as well as a very tiny Fair value Gap (FVG) that may later be mitigated.
In this particular scenario, there are two things that I can do as a trader:
1. Drill down to lower time and look for a possible buy entry that can be used to counter trade to the bigger picture sell zone which is the highlighted rejection zone; or
2. Refine the "REJECTION BLOCK" zone and look for a good sell entry using some chart patterns or institutional reference points within that zone to take a sell entry.
In either of these two scenarios, good level of patience is required to make money.
I hope you'd all find this interesting.
Please do let me know what you think based on market up. For me, I am looking forward to waiting and selling from the rejection zone as my overall bias is a sell in the medium term.
Trade safely and apply proper risk management.
Regards
FINSPOT ACADEMY
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
FINSPOT ACADEMY
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.