Get started

Growth

Mastering the Mental Game of Trading-THIS ONE FOR THE BOYZTrading is 99.98% mental and 1% physical. Stay focused, disciplined, and immune to the influence of FUD and FOMO to maximize your trading success. Trading is not for the faint of heart! It requires a strong mindset, unwavering discipline, and the ability to navigate the treacherous waters of FUD (fear, uncertainty, doubt) and FOMO (fear of missing out). Here are some key insights to help you master the mental game of trading and stay on top of your game! 💪 1️⃣ Stick to Your Plan: A well-defined trading plan is your guiding light in the chaos of the market. It helps you make rational decisions and avoid impulsive moves driven by emotions. Trust your plan and resist the temptation to deviate from it. 2️⃣ Manage Your Emotions: Emotions can cloud judgment and lead to irrational decisions. Stay calm, composed, and unswayed by the market noise. Don't let FUD and FOMO derail your trading strategy. Embrace a disciplined approach and separate emotions from your trading decisions. 3️⃣ Timing is Key: Recognize that there are different trading opportunities in different market conditions. Some days are meant for day trading, while others are for accumulating positions. Be mindful of key levels and choose your entry and exit points wisely. Patience and timing are crucial. 4️⃣ Mind Over Bag: Trading is a marathon, not a sprint. Focus on long-term gains and building a strong position rather than chasing quick profits. Avoid being swayed by influencers or external factors that can disrupt your game plan. Keep your eye on the bigger picture. 5️⃣ Stop Loss Strategy: While stop losses are essential risk management tools, they need to be used judiciously. Tight stop losses at critical levels may lead to premature liquidation. Assess the market conditions and adjust your stop losses accordingly. Let your trades breathe within reasonable risk parameters. Remember, success in trading stems from a disciplined mindset, adherence to your plan, and the ability to overcome emotional impulses. Build your skills, stay focused, and enjoy the journey of becoming a master trader! 🚀💰
Education
by bagboybillionaire
Understanding Economics: Exploring Micro and Macro ConceptsWelcome to my first ever post! Starting today, I will be embarking on a journey to try and spread the knowledge about the world of economics. As a 16-year-old student who is undertaking their A-Levels, I want to share some of the knowledge I am getting and I am excited to share my knowledge and insights on micro and macro economics over the next year and a half. Through this journey, we will delve into essential topics such as Individuals, Firms, Markets, and Market Failure. We will explore the fundamental concepts of supply and demand, market structures, and the consequences of government interventions. Together, we will develop a solid foundation in microeconomic principles. In the second phase of our exploration, we will turn our attention to the macroeconomy. I will guide you through the intricacies of the circular flow of income, aggregate demand, and aggregate supply analysis. We will unravel the complexities of fiscal policy, monetary policy, inflation, unemployment, and their impact on the macroeconomic landscape. Whether you are a student, a professional, or someone simply seeking to enhance your understanding of economics, this blog aims to provide valuable insights and practical knowledge. I encourage you to actively participate by sharing your suggestions and questions as we embark on this educational endeavor together. Join me as we dive into the world of economics and unravel its mysteries. Stay tuned for regular updates on my blog, where we will explore various economic concepts and their real-world applications. If you wish the take a look at what I will be going through, I will list them down below, but apart from that Good luck! MICRO 4.1 Individuals, frms, markets and market failure 4.1.2 Individual economic decision making 4.1.3 Price determination in a competitive market 4.1.4 Production, costs and revenue 4.1.5 Perfect competition, imperfectly competitive markets and monopoly 4.1.6 The labour market 4.1.7 The distribution of income and wealth: poverty and inequality 4.1.8 The market mechanism, market failure and government intervention 4.2.1 The measurement of macroeconomic performance Macro 4.2.2 How the macroeconomy works: the circular flow of income, aggregate demand/aggregate supply analysis and related concepts 4.2.3 Economic performance 4.2.5 Fiscal policy and supply-side policies 4.2.6 The international economy
Education
by CosmosTradingGroup
What is Non-Farm Payroll and How to Trade It? 📚 Hey traders, This week, on Friday, we are expecting Non-Farm Payroll Report. In this educational article, I will try to explain to you why that fundamental data is so important and I will share with you the insights how to trade it. Non-Farm Payroll is one of the most important indicators for forex and stock markets in the economic calendar. Being released on the first Friday of each month by the Bureau of Labor Statistics (BLS), it shows the number of new jobs created by the US economy during the previous month, excluding farm sector, government and not for profit organizations. NFP accounts for 80% of the US gross domestic product work force. The non-farm payroll is used by analysts to determine the current state of the economy and to predict the future activity levels. For that reason, its release usually triggers volatile movements across all Us Dollar related financial instruments. Being crucially important, remember that NFP is not the only figure released by the Bureau of Labor Statistics. NFP is the part of the Employment Situation Report that also contains: Unemployment rate, Average hourly earnings, Labor participation rate, Average workweek. The main reason, why newbie traders fail in trading NFP release is the fact that they completely neglect the figures of the Employment Situation Report. Here are some tips how to properly interpret the figures in the report: 1) Non-farm payroll numbers. It reflects the new jobs' creation pace. Higher than predicted rate is usually positive for the US stock market, while the weak rate usually affects that negatively. 2) Unemployment rate. It reflects the number of unemployed people in relation to a total workforce. Low unemployment rate is usually very positive for US Dollar, while higher than expected unemployment quite negatively affects on USD. 3) Average hourly earnings. It reflects the change of the labor cost. The fast increase in the labor cost is usually positive for US Dollar, while the slowing increase is considered to be a bearish indicator for USD. 4) Average weekly hours. It reflects the average amount of paid working hours. The increase in average weekly hours is considered to be a very positive factor for US stock market, while its decrease is considered to be a negative one. Trading NFP report, the one should consider all the figures from the Employment Situation Report. All the numbers should be weighed properly and only then the predictions should be made. Remember that volatility is higher than usual in the hours of news release, for that reason, be careful and never forget to set a stop loss.
OANDA:XAUUSDEducation
by VasilyTrader
7
Best Passive income cryptocurrencyMany of us have crypto store money in our bank accounts. Many ventures are exploring passive income options. It doesn’t matter what approach you take, the goal is to put your spare funds to work for yourself. One way to do this is with crypto. Let’s look at the 10 possible ways you can use crypto. Let’s quickly say that you can makepassive income from cryptocurrencies in 10 different ways. You may not always succeed. High volatility in cryptocurrency investments is a risky investment. You can lose 100% of your investment even if there is no volatile market factor such as bearish or inflation. There are eight ways to generate passive income from crypto. Many of the most popular cryptocurrencies can be used to generate passive income. It is crucial to research thoroughly and speak with financial professionals before making any investment decision. Here are the top passive income cryptos. 1. Staking cryptocurrency 2. Yield farming 3. Proof Of Work. 4. A crypto interest account. 5.Lending Platform 6.Dividends Tokens. 7.Airdrops and Forks. 8.Affiliate program. 9.Masternode cryptocurrency. 10.Decentralized Finance (DeFi cryptocurrency):
Education
by carripayvideos1988
⚛️Review of the CryptoGPT(GPT) Project!!!⚛️Hello, today, let's review one of the cryptocurrency projects in the field of Artificial Intelligence(AI)🤖 from the fundamental point of view. The reason for choosing this field is people's high acceptance of artificial intelligence🤖 in the new year; cryptocurrency projects also use this opportunity, but always check any project before investing💎. Today's project name is ⚛️CryptoGPT(GPT)⚛️ . As I have said before, I evaluate crypto projects based on various factors.👇 I have already introduced each of these factors with a brief explanation, so today, I will be looking at CryptoGPT(GPT). 🔥Let’s get into it: 🔰🔰🔰🔰🔰🔰 ✅ Project Goals : CryptoGPT is introduced as a ZK Layer-2, allowing you to monetize your data with AI. Well, first of all, GPT stands for Generative Pre-Trained Transformer, which is basically how an AI language like ChatGPT gets massive databases pre-trained to enhance its services. So CryptoGPT is no more related to ChatGPT than being a rip-off chasing the hype around ChatGPT. Also, well-known L2s like Arbitrum and Optimism launched their tokens after their Mainnets were up and running when the users required governance control. Whereas CryptoGPT has launched its $GPT token already and states in its roadmap that the Layer-2 Mainnet Beta will launch in Q4 of 2023. So $GPT is currently no more than an ERC-20 token. The clout chasing done by this project has made our experts score the CryptoGPT project goals 2/10. ✅ Founders : There is little information about the founders of CryptoGPT. On their main website, Jamila Jelani is listed as part of the marketing team, whereas on some unofficial websites, she's introduced as the project's founder. CryptoGPT provides an AI language model called Alex, and when I asked Alex about the founders of CryptoGPT, I got the answer: "I'm sorry, but I don't have that information. However, you can visit the CryptoGPT website or do a quick online search to find the founders' names." The fact that there is no proper information about the project's founders and the website owner is using a service to hide their identity is a huge red flag, so I have scored CryptoGPT's founders 1/10. ✅ Github : The project claims to be an AI-to-earn just like the play-to-earn games that were hyped in the crypto space during the end of 2021. Basically, how this works, according to the CryptoGPT website, is that you can turn your daily activities into data using AI and then sell it as something they call "NFT Capsules". They claim to be the only sustainable "to-earn" crypto project while also being a ZK L2 on Ethereum. But as of now, the only thing that exists is the $GPT token on Ethereum and Binance Smart Chain (BSC). There isn't a GitHub respiratory available for the project, at least none our team could find. Therefore I have scored CryptoGPT's Github 1/10. ✅ Inflation Rate : The $GPT token has a maximum supply of 3,000,000,000 (3 billion) tokens; no information is available on the circulating supply. Since there is no necessity for a project with these goals to have a token in the first place, I have scored the Inflation Rate of CryptoGPT 1/10. ✅ Community : CryptoGPT's Twitter account has 240K followers, its Telegram channel has more than 90K members, and its Discord channel has 20K members. Even though these numbers seem good for a crypto project's community, you should keep in mind that these are newly created accounts. For example, the Twitter account for CryptoGPT was created in February 2023, and gaining 240K followers in a month seems shady. That's why I scored CryptoGPT's community 4/10. ✅ Whitepaper : CryptoGPT doesn't have a Whitepaper yet and only provides a Litepaper for the project. In this Litepaper, the team states their goals and compares daily active users with other L2s on Ethereum, like Optimism and Arbitrum. The question is, how can they compare their users when the CryptoGPT Mainnet does not even exist yet? The thing about crypto projects is that they can claim to be unique and solve many issues in their Whitepaper, but the real thing is what's happening in the backend and coding of the project. Since this project doesn't have a whitepaper, I have scored CryptoGPT's Litepaper 3/10. ✅ Developers : The team only introduces 3 people as developers on their website. Of the three, only one is a backend developer, Emanuel Junior from Brazil. According to his LinkedIn profile, Emmanuel is a computer science graduate from a University in Brazil with more than 5 years of work experience. But just one developer isn't sufficient for a ZK Layer-2 since other L2s have huge teams of skilled devs working to improve their protocols. Since I couldn't find information about other devs working on CryptoGPT, I scored the developers 2/10. ✅ Tokenomics : According to CryptoGPT's Litepaper, the $GPT token distribution is as follows: 20% goes to the Public, 20% is allocated to Liquidity, Staking, and Market Makers, 3% goes towards the project's Marketing, 25% is allocated towards Data Mining Incentives, 16% for the team, 6% for partners and advisors, and 10% is allocated to a Development Reserve. But according to etherscan, the top 10 wallet addresses hold more than 85% of the $GPT token supply, which is extremely shady. That's why I have scored CryptoGPT's tokenomics 3/10. ✅ Venture Capital Investors : CryptoGPT has not done any funding rounds yet and therefore doesn't have any VC investors. The team might have decided to fund the project by selling their $GPT tokens which again is another red flag for investing in the project. This is why I have scored CryptoGPT's VC investors 1/10. ✅ Competitor Comparison : Compared to other ZK rollups on Ethereum, like Starknet and zkSync, CryptoGPT is basically already dead. Since these projects have amazing teams working on improving their projects and overcoming milestones, but a project like CryptoGPT just seems to want to use the hype around AI and ZK technology simultaneously without any actual creativity. Therefore I have scored CryptoGPT compared to its comparison 1/10. 🔔 In conclusion , CryptoGPT obtained a total score of 1.9/10. Does this score mean that the $GPT price will never rally? Definitely not. The $GPT token price can rally, but that doesn't change the project's fundamentals. Investing in CryptoGPT is extremely risky, even compared to other cryptos like Bitcoin and Ethereum. That's why if you want to invest in this project, it's best only to put in an amount you're completely comfortable with losing.
Education
by pejman_zwin
12
How to use news and data reports to make transactions profitableFrom central bank interest rate resolutions, non-farm payrolls, PMI indexes, inflation rates and other data reports, to geopolitical developments, and even natural disasters, these are major news that foreign exchange investors cannot ignore.Because the trend of the currency is always guided by these major economic events and news developments, it is accompanied by trading opportunities. Of course, not all news is worth trading, so we must be familiar with how economic events will affect currency market trends.For major transaction news and data reports, we can follow the following three steps: 1. Select news events that will cause price fluctuations Foreign exchange traders tend to pay attention to certain key economic data that have an impact on interest rate speculation. These economic data include: central bank decisions and speeches, gross domestic product (GDP) data, employment data, inflation rate and trade balance. 2. Choose the right currency pair Generally speaking, we will choose currency pairs with high liquidity. There are mainly the following 8 pairs: EUR/USD, USD/¥, AUD/USD, GBP/¥, EUR/CHF, and CHF/¥.The sufficient liquidity of currency pairs is conducive to us to use lower transaction costs to win huge profits through greater volatility. 3. Pay attention to the news release time and forecast results We have to trade based on data expectations, that is, the actual announced results are compared with the predicted values.For example, if the non-farm payrolls report is better than expected, the dollar will generally rise, and EUR/USD may fall. In addition, before the data is released, we need to check the price movement of the short-term chart (5, 10, 15-minute chart), and use the closing price to decide whether to trade the current data report.After the price trend is confirmed, open a position and set a take profit and stop loss. In order to facilitate everyone to continue to follow up on my analysis and sharing, you can like and follow me; in addition, I will share the daily real-time strategy in the channel. If you can't follow up in real time, you may make operational errors.You can use the following methods to enter my channel for free to follow the latest news and follow up on market trends in real time.
Education
by Short-term-king
RISK MANAGEMENT STRATEGIES There are several risk management strategies that can be used to help mitigate potential losses and increase the chances of success in any investment or trading endeavor. Here are a few common risk management strategies: Diversification is an essential risk management strategy that involves spreading your investments across different markets, asset classes, and securities. The goal of diversification is to reduce the overall risk in your portfolio by minimizing the impact of any single investment or market on your portfolio. When you diversify your portfolio, you spread your investments across different asset classes such as stocks, bonds, and commodities. You also diversify across different markets, such as domestic and international markets, and across different sectors, such as healthcare, technology, and consumer goods. By diversifying across different asset classes, markets, and sectors, you can help balance out potential losses in any one area. For example, if you have all of your investments in the stock market, you are vulnerable to a significant loss if the stock market experiences a downturn. However, if you have some investments in bonds or commodities, those investments may perform well during a market downturn, helping to offset your losses in the stock market. Additionally, diversification can help you take advantage of opportunities in different markets and sectors. For example, if the stock market is experiencing a downturn, other markets, such as commodities or international markets, may be performing well. By diversifying your investments, you can take advantage of these opportunities and potentially improve your overall returns. It's important to note that diversification does not guarantee a profit or protect against loss, but it can help reduce the overall risk in your portfolio. However, diversification requires careful planning and ongoing management. You should regularly review your portfolio and make adjustments to ensure that your investments remain diversified and aligned with your goals and risk tolerance. Diversification is a critical risk management strategy that can help reduce the impact of any single investment or market on your portfolio. By spreading your investments across different markets, asset classes, and securities, you can help balance out potential losses and take advantage of opportunities in different areas. Setting stop losses is a vital risk management strategy that involves setting a predetermined price point at which you will sell a security to limit potential losses on any given trade. Stop losses are commonly used by day traders and other active investors to protect their portfolio from large drawdowns and minimize potential losses. The concept of a stop loss is relatively simple. When you buy a security, you set a price point at which you are willing to sell the security if the price drops to a certain level. This level is known as the stop loss level. If the security's price reaches the stop loss level, the security is sold automatically, limiting your potential losses. The main benefit of using stop losses is that they allow you to manage risk effectively. By setting a stop loss, you limit the amount of money you can potentially lose on any given trade. This can help prevent large drawdowns and protect your portfolio from significant losses. Stop losses are also valuable because they help you avoid emotional trading decisions. When you have a predetermined stop loss level, you can take the emotion out of trading decisions. This can help prevent you from holding onto losing trades for too long, which can result in even greater losses. However, it's important to note that setting stop losses is not foolproof. In fast-moving markets or markets with low liquidity, a stop loss order may not execute at the desired price, resulting in losses greater than expected. Additionally, setting stop losses too close to the market price may result in the order executing prematurely, potentially missing out on gains. Setting stop losses is an important risk management strategy that can help protect your portfolio from significant losses. By setting a predetermined price point at which you are willing to sell a security, you can limit potential losses and avoid emotional trading decisions. However, it's essential to use stop losses carefully and adjust them as needed to ensure that they are aligned with your goals and risk tolerance. Position sizing is an important risk management strategy that involves determining the appropriate amount of capital to allocate to each trade based on the level of risk involved. Position sizing is critical because it helps you manage the risk in your portfolio and avoid overexposure to high-risk positions. The idea behind position sizing is to ensure that the amount of capital you allocate to each trade is proportionate to the level of risk involved. For example, if you're taking on a high-risk trade, you'll want to allocate less capital to that trade to limit the potential losses. Conversely, if you're taking on a low-risk trade, you may allocate more capital to that trade. Position sizing can be calculated in various ways, but the most common method is to use a percentage of your account balance for each trade. For example, if you have a $100,000 account and you decide to risk 2% of your account on each trade, you would allocate $2,000 to each trade. By carefully managing position sizing, you can limit the impact of any single trade on your portfolio. If you allocate too much capital to a single trade, you run the risk of losing a significant portion of your portfolio if that trade goes wrong. On the other hand, if you allocate too little capital to a trade, you may miss out on potential gains. Position sizing is also essential for avoiding overexposure to high-risk positions. If you have too much capital allocated to high-risk trades, you run the risk of suffering significant losses if those trades go wrong. By carefully managing position sizing, you can ensure that you have a well-diversified portfolio with appropriate levels of risk. Position sizing is a critical risk management strategy that helps you manage the risk in your portfolio by determining the appropriate amount of capital to allocate to each trade based on the level of risk involved. By carefully managing position sizing, you can limit the impact of any single trade on your portfolio and avoid overexposure to high-risk positions. The risk-reward ratio is an important risk management tool that can help you make more informed trading decisions. The ratio measures the potential return on investment against the amount of risk involved in a particular trade. By focusing on trades with a favorable risk-reward ratio, you can increase your chances of success and limit potential losses. The risk-reward ratio is typically expressed as a ratio of the potential reward to the potential risk. For example, if you're considering a trade where the potential reward is $2,000 and the potential risk is $1,000, the risk-reward ratio would be 2:1. A favorable risk-reward ratio means that the potential reward is greater than the potential risk. By focusing on trades with a favorable risk-reward ratio, you can increase your chances of success. This is because you're only taking on trades where the potential reward outweighs the potential risk. This means that even if some trades don't work out, you can still make a profit if the majority of your trades have a favorable risk-reward ratio. One of the benefits of the risk-reward ratio is that it helps you avoid emotional trading decisions. By focusing on the potential reward relative to the potential risk, you can take the emotion out of trading decisions. This can help prevent you from taking on trades with too much risk or holding onto losing trades for too long. It's important to note that a favorable risk-reward ratio doesn't guarantee success. Even trades with a high potential reward relative to the potential risk can still result in losses. However, by focusing on trades with a favorable risk-reward ratio, you can limit potential losses and increase your chances of success over the long run. The risk-reward ratio is an essential risk management tool that measures the potential return on investment against the amount of risk involved. By focusing on trades with a favorable risk-reward ratio, you can increase your chances of success and limit potential losses. It's important to use the risk-reward ratio in conjunction with other risk management strategies to ensure that you have a well-diversified and balanced portfolio. Staying informed is an essential risk management strategy for day traders. It involves keeping up-to-date with the latest news and developments in the market, both on a macroeconomic level and for individual securities. By staying informed, traders can identify potential risks and opportunities and adjust their trading strategies accordingly. There are many ways to stay informed as a day trader. One of the most important is to keep an eye on financial news sources, such as Bloomberg, CNBC, and The Wall Street Journal. These sources can provide valuable insights into market trends, company news, and other factors that can impact your trades. Many day traders also use social media, such as Twitter and Reddit, to stay informed about the latest news and trends in the market. Staying informed also means staying up-to-date on changes in regulations, economic indicators, and other macroeconomic factors that can impact the market. For example, changes in interest rates, trade policies, or fiscal policy can have a significant impact on market performance. By staying informed about these factors, traders can adjust their trading strategies accordingly and make more informed trading decisions. In addition to staying informed about the market, traders should also stay informed about their individual securities. This means monitoring earnings reports, company news, and other developments that can impact the price of a particular security. By staying informed about individual securities, traders can make more informed decisions about when to buy, sell, or hold a particular security. Staying informed is an essential risk management strategy for day traders. By staying up-to-date on the latest news and developments in the market, traders can identify potential risks and opportunities and adjust their trading strategies accordingly. Staying informed involves monitoring financial news sources, social media, macroeconomic factors, and individual securities to make more informed trading decisions. Overall, effective risk management involves a combination of these and other strategies, as well as careful planning, discipline, and a commitment to a sound trading strategy. By using these techniques and remaining focused on your goals, you can better manage risk and increase your chances of success in any investment or trading endeavor. STAY GREEN
AMEX:SPYEducation
by UnknownUnicorn37963351
Non-farm payrolls data is about to bearish the gold market!Today, the U.S. February quarter-adjusted non-farm payrolls data will be released. Everyone knows that this data will play a key role in the gold market, because the performance of non-farm payrolls will directly affect the fundamental sentiment, which will determine the direction of the gold market in a short period of time.Does the non-farm payrolls data to be released today benefit the gold market or suppress the gold market?Let us make a bold prediction. On Wednesday, the announced value of ADP employment in the United States in February was 242,000, the previous value was 119,000, and the forecast value was 200,000, while the actual announced value of 242,000 was much higher than the previous value and the forecast value. To a certain extent, it shows that the U.S. economy is strong and supports the dollar, thereby suppressing the gold market. On Tuesday, Fed Chairman Powell's hawkish speech suppressed the gold market. However, after Fed Chairman Powell mentioned on Wednesday that the rate of interest rate increases in March depends on the data, the number of initial jobless claims in the United States released on Thursday was 210,000, higher than the previous value of 190,000 and the forecast value of 195,000, reflecting that the tight job market in the United States has still not eased, causing the market's expectations of the Federal Reserve raising interest rates by 50 basis points in March to cool down, US bond yields fell sharply, and the dollar was dragged down, which benefited the gold market. And today's non-farm payrolls data show that the market expects the number of new jobs to be 205,000, compared with the previous value of 517,000. Judging from the ADP data guidance, the non-farm payrolls data show that the market expects the number of new jobs to be higher than the expected value of 205,000, and the number of initial jobless claims in February remained at a comparable level. Although the number of people applying for unemployment benefits at the beginning of the week was as high as 210,000, overall, the number of new jobs in the month will not have much impact, so I think the non-farm payrolls released today will be higher than the expectation of 205,000, thereby suppressing the gold market. It should also be noted that the position of SPDR, the world's largest gold ETF, decreased by 3.47 tons to 903.15 tons on Thursday, a new low since the end of January 2020, suggesting that institutional and professional investors are still inclined to bearish the gold market. It can also be seen from the trend of gold. Although gold has recorded a strong rise in the short term, the strong pressure above still exists. Therefore, the early rise of gold is most likely to be to prepare for non-farm payrolls data and reserve room for the decline of the gold market.Then everyone thinks that the non-farm payrolls data to be released today will benefit the gold market or suppress the gold market?Everyone is welcome to come and discuss. In order to facilitate everyone to continue to follow up on my analysis and sharing, you can like and follow me; in addition, I will share the daily real-time strategy in the channel. If you can't follow up in real time, you may make operational errors.You can use the following methods to enter my channel for free to follow the latest news and follow up on market trends in real time.
OANDA:XAUUSDEducation
by Blessed_V
3
The Seven Major Factors Affecting Gold.Firstly, the demand for gold commodities affects the price. In addition to its use as a daily decorative item, gold plays an important role in industry, occupying an irreplaceable position in industries such as dentistry, electronics, and others. As a hedge tool, the price of gold is influenced by demand, and the supply and demand relationship directly affects the price of gold. Changes in production will also affect the gold price, such as the demand for teeth in Japan and the demand for jewelry in India, both of which directly affect the monthly price trend of gold each year. Secondly, the gold output determines the supply-demand balance of gold. The production of gold-producing countries directly affects the supply-demand balance of gold. Currently, China has the largest gold production, followed by South Africa. Any unexpected event, such as strikes and other special situations, will have an impact on the gold price. Thirdly, international interest rates and exchange rates directly affect the gold price. Interest rates and exchange rates have a direct impact on the gold price, especially the trend of the US dollar. The international status of the US gold price directly determines the status of the country's international finance, and the price of the US dollar also directly affects the price of gold. As the US dollar, which also has investment functions like gold, it directly affects the gold price. If the investment trend of the US dollar is strong, gold investment will be relatively less, while the opposite is true for the US dollar in a weak investment market, where the role of gold as a reserve asset and a hedge will be stronger. Fourthly, inflation stimulates the gold price. When the consumer price index rises and inflation affects investments, gold is no exception. When the price fluctuation of a country is severe, and the inflation rate is high, and the price fluctuation is severe, people's panic will intensify. When purchasing power declines, people will worry about future security and choose to buy gold to hedge, which will cause the gold price to continue to rise. Although the current role of gold in fighting inflation is not as significant as before, high inflation will still stimulate the gold price. Fifthly, political situations such as wars can stimulate the gold price. Political instability promotes the rise of the gold price, and war causes a rise in commodity prices, leading to a rise in gold prices. Similarly, as a critical strategic material, the price of gold has a remarkable correlation with the price of oil. When the price of oil rises, the gold price rises as well. Conversely, when the price of oil falls, the gold price also falls. Sixth, as a safe-haven demand, gold is the first choice Due to the small total reserves, the price of gold is relatively stable, and because it has served as a currency, it is an excellent tool for hedging and hedging. As an important hedging tool, gold has strong political sensitivity. Jewelry in prosperous times, gold in troubled times, when the economy is in recession, investment will favor gold more, and it will also directly affect the price of gold. 7. Investors’ psychological expectations The psychological expectations of investors are an important factor affecting the price of gold, but they usually do not act alone. Instead, they often change in conjunction with the variations in the aforementioned factors, amplifying or reducing the expected value of gold and causing significant differences in its price. Following the footsteps of the market, respecting the market, and aweing the market is to follow the market Pay attention to me and you will discover that trading is so simple and enjoyable!
FXOPEN:XAUUSDEducation
by Ice_and_Fire1
How to double your small ($250) trading account trading Bitcoin How to Double your Small ($250) Trading Account Trading Bitcoin I started a degen account with $250 and almost doubled it in 4 days making about 6 trades. This strategy is not Financial advice and I'm only illustrating what I have learnt trading this way. This is the first video in the series and I'll be continuing the series , updating you on progress, winners, losses, my trading journal and some live trading, so make sure to Sub, like comment and share. I show you how I entered my current trade, where I am looking to take profits and show you my pnl on Bybit. Not Financial Advice. DYOR. Papertrade before trading with real money. Hope you have a profitable trading day! Shawn
BYBIT:BTCUSD.PEducation
by zartraderguy
2
January EffectHello guys! Have you ever heard of the "January effect"? It's a pattern that has been observed in financial markets where the prices of small cap stocks tend to go up in the month of January. Some people think this happens because of tax-loss selling (when investors sell stocks that aren't doing well in order to reduce their tax burden) or because more people are interested in buying small cap stocks at the start of a new year. It's important to remember that the January effect isn't a sure thing and shouldn't be the only reason you make investment decisions. What do you think about this effect?
Editors' picks
BLACKBULL:US30Education
by m_maia14
10
ECONOMIC CYCLE & INTEREST RATESHello traders and future traders! The state of an economy can be either growing or shrinking. When an economy is growing, it typically leads to improved conditions for individuals and businesses. Conversely, when an economy is shrinking or experiencing a recession, it can have negative consequences. The central bank works to maintain a stable level of inflation and support moderate economic growth through the management of interest rates. What is an economic cycle? An economic cycle refers to the fluctuations or ups and downs in economic activity over a period of time. These cycles are typically characterized by periods of economic growth and expansion, followed by periods of contraction or recession. Economic cycles are often measured by changes in gross domestic product (GDP) and other economic indicators, such as employment, consumer spending, and business investment. Economic cycles can be caused by a variety of factors, including changes in monetary and fiscal policy, shifts in consumer and business confidence, and changes in global economic conditions. Economic cycles can also be influenced by external events, such as natural disasters or political instability. Understanding economic cycles is important for businesses, governments, and individuals, as it helps them anticipate and prepare for changes in the economy and make informed decisions about investment, hiring, and other economic activities. How is an economic cycle related to interest rates? Interest rates can be an important factor in the economic cycle . During a period of economic expansion, demand for credit typically increases, as businesses and consumers borrow money to make investments and purchases. As a result, interest rates may rise to control the demand for credit and prevent the economy from overheating. Higher interest rates can also encourage saving, which can help to balance out the increased spending that often occurs during an economic expansion. On the other hand, during a period of economic contraction or recession, demand for credit tends to decline, as businesses and consumers become more cautious about borrowing and spending. In response, central banks may lower interest rates to stimulate demand for credit and encourage economic activity. Lower interest rates can also make borrowing cheaper and more attractive, which can help to boost spending and support economic growth. Overall, the relationship between interest rates and the economic cycle can be complex and dynamic, and the direction and magnitude of changes in interest rates can depend on a variety of factors, including economic conditions, inflation expectations, and the goals and objectives of central banks and other policy makers. I hope you leant something new today!
Education
by m_maia14
Fall of USD as Global Reserve CurrencyIf you give someone a button to print money, they will press it 1,400 years ago the Roman republic inflated its currency until its empire collapsed USD used to be backed by gold, but that ended in 1971 This allowed governments to print endless money Hyperinflation is just a matter of time The US government learned to overspend and print the difference The debt is now $31 trillion and $100 trillion in liabilities The only way out is printing more money But destroying the savings and hard-earned tax money of citizens Global reserve currencies change every 90 years So, Monetary Switch is inevitable Checkout Venezuela's 2013- mid-2020 Inflation data The paper that is used to print a dollar is not actually worth a dollar. The paper does not have value, it simply represents the value. It is not money because it holds no individual value. To take it a step further, dollars are actually the OPPOSITE of value. Dollars are debt. A dollar is a PROMISE to pay back debt. The U.S. is over a trillion dollars in debt. A trillion is “1” followed by 12 zeros. It’s a thousand billion. A trillion seconds is 32,000 years. A stack of $1 bills would be 68,000 miles high. So how do we pay back such monumental debt? Taxes. It’s painful, but it’s obvious. So, the dollar is the PROMISE of the U.S. government to pay back over a trillion dollars of debt by taxing its citizens. And, to kick you while you are down, the debt is still growing. The dollar is actually debt. That is why the smart rich don’t work for dollars, they work for assets like BTC and GOLD Thank You for Reading. Like and Share!
Education
by FortuneAI
2
How to Pick the next Winners? CAN-SLIMA successful trading strategy starts with sound stock selection criteria. Our JS-TechTrading strategy combines the timeless and success proven principles of Mark Minervini's SEPA (R) analysis and William O'Neils' CAN-SLIM (R) methodology. This tutorial describes the CAN-SLIM (R) methodology in detail: CAN-SLIM refers to the acronym developed by the American stock research and education company Investor's Business Daily (IBD). IBD claims CAN-SLIM represents the seven characteristics that top-performing stocks often share before making their biggest price gains. It was developed in the 1950s by Investor's Business Daily founder William O'Neil. The method was named the top-performing investment strategy from 1998-2009 by the American Association of Individual Investors. CAN-SLIM is a growth stock investing strategy formulated from a study of stock market winners dating back to 1953 in the book How to Make Money in Stocks: A Winning System In Good Times or Bad. This strategy involves implementation of both technical analysis and fundamental analysis. The objective of the strategy is to discover leading stocks before they make major price advances. These pre-advance periods are "buy points" for stocks as they emerge from price consolidation areas (or "bases"), most often in the form of a "cup-with-handle" chart pattern, of at least 7 weeks on weekly price charts. The strategy is one that strongly encourages cutting all losses at no more than 7% or 8% below the buy point, with no exceptions, to minimize losses and to preserve gains. It is stated in the book, that buying stocks of solid companies should generally lessen chances of having to cut losses, since a strong company (good current quarterly earnings-per-share growth, annual growth rate, and other strong fundamentals) will usually shoot up—in bull markets—rather than descend. Some investors have criticized the strategy when they didn't use the stop-loss criterion; O'Neil has replied that you have to use the whole strategy and not just the parts you like. O'Neil has stated that the CANSLIM strategy is not momentum investing, but that the system identifies companies with strong fundamentals—big sales and earnings increases which is a result of unique new products or services—and encourages buying their stock when they emerge from price consolidation periods (or "bases") and before they advance dramatically in price. The seven parts of the acronym are as follows: 1. C stands for Current quarterly earnings. Per share, current earnings should be up at least 25% in the most recent financial quarter, compared to the same quarter the previous year. Additionally, if earnings are accelerating in recent quarters, this is a positive prognostic sign. 2. A stands for Annual earnings growth, which should be up 25% or more over the last three years. Annual returns on equity should be 17% or more 3. N stands for New product or service, which refers to the idea that a company should have continuing development and innovation. This is what allows the stock to emerge from a proper chart pattern and achieve a new price. A notable example of this is Apple's iPhone. 4. S stands for Supply and demand. A gauge of a stock's demand can be seen in the trading volume of the stock, particularly during price increases. 5. L stands for Leader or laggard? O'Neil suggests buying "the leading stock in a leading industry." This somewhat qualitative measurement can be more objectively measured by the Relative Price Strength Rating of the stock, designed to measure the price performance of a stock over the past 12 months in comparison to the rest of the market based on the S&P 500 (or the S&P/TSX Composite Index for Canadian stock listings) over a set period of time. 6. I stands for Institutional sponsorship, which refers to the ownership of the stock by mutual funds, banks and other large institutions, particularly in recent quarters. A quantitative measure here is the Accumulation/Distribution Rating, which is a gauge of institutional activity in a particular stock. 7. M stands for Market Direction, which is categorized into three - Market in Confirmed Uptrend, Market Uptrend Under Pressure, and Market in Correction. The S&P 500 and NASDAQ are studied to determine the market direction. During the time of investment, O'Neil prefers investing during times of definite uptrends of these indexes, as three out of four stocks tend to follow the general market direction.
Education
by JS_TechTrading
How to use Fundamental Analysis in FX.Fundamental analysis is something that's not overly spoken about when it comes to FX trading. Now, a lot of educators and gurus out there recommend you check the FX calendar and you understand when different news events are due as it is important to be risk off during these times. But very few of them actually speak about how you can utilize different aspects of fundamental analysis to actually gain a confirmation bias in trading. When I'm trading the one hour or 4 hour charts, I like to have some kind of definition or reason behind what I'm actually investing in. Do not forget, we are buying an asset when we're trading, so you are investing into an asset with an expectation of the value going up or down. Now, while some people play the game of probability based on technical analysis, when I am trading these higher timeframes, I do like to have some reason or at least a good idea on why I want to invest in these certain asset. That is where fundamental analysis comes into it. Fundamental analysis doesn't change very often, it flips and turns once every two to three weeks. However, you do notice a trend after a while of picking what you think is the week and what you think is the strong currencies at the time. Movements on the chart tend end up playing out along those lines, so you can increase your win rate by only taking positions that have the same correlation with your fundamental analysis. In terms of undergoing fundamental analysis there is a wide range of ways to do it. You can read news and you can get an understanding of what experts are saying about different currencies, what the economic conditions are and even factor into the side of where you are based and understand how the businesses are running in your country. You can be more short term bias and you can have a look at what the news has been forecasted over the next week, which can give you an indication in these different news events whether or not experts are forecasting growth or shrinking. Usually, these forecasts are pretty good. Once you've read through a number of different articles and you start actually reading what different news means, you will start to generate a bit of a picture on whether or not the economy is going strong, whether the economy is shrinking, or whether we actually just sitting neutral kind of cruising. From here you can determine which pairs you want to be bullish on, which pairs you want to be bearish on, and which pairs you just not really looking to trade over the next week. Then you can dive into your technical analysis on those pairs. There are multiple benefits to fundamental analysis, not only increasing win rate when you get it right, but also increasing your emotional state while in the trade. I know personally when I'm holding onto trades, if I have that fundamental push behind me as well, I tend to hold on a little bit longer and let profits run as compared to what I do if I'm only using technical analysis. Using fundamental analysis can bring you an extra edge. It can turn odds into your favor as a trader, don't sleep on it is massively impressive on the results you can generate from using fundamental analysis.
Education
by the5erstrading
Etherum 2.0 is COMING... More DetailsHello friends So finally we will ee ETH 2.0 as soon as posibble. I want to explain more details about MERGE upgrade and launch day. then have a look at some NEWS about ETH 2.0. lets see again whats Etherum 2.0 and MERGE upgrade? Ethereum will move from a proof-of-work consensus mechanism to a proof-of-stake blockchain known as MERGE Right now Ethereum uses the same consensus mechanism as Bitcoin known as proof of work. This requires miners to validate transactions and keep the network secure. It is slow, costly, and uses large amounts of energy by design. Proof of stake is different because it gets rid of miners altogether and uses validators (people who “stake”—or lock-up—Ethereum to keep the network secure and running). After the upgrade the only way to create new ETH will be to stake pre-existing ETH on the network which analysts expect could have a deflationary impact on the cryptocurrency. Moving to proof of stake will then make Ethereum “99% more energy efficient. Ethereum Merge expected between 10 and 20 September. Now lets check some HOT news about this happening: 22 August 2022: CME Group to launch Ethereum options prior to ETH 2.0 Merge 17 August 2022: Coinbase pausing ETH deposits during Merge is ‘not significant’ 12 August 2022: Ethereum Merge to take place 15/16 September after Goerli success I hope this upgrade be successful and after that Vitalik can go ahead SHARDING mechanism... More incredible things will be happpen... just BE patient... Share me your opinion about this article. are you like this type of atticles??? so let me know.. thanks
CRYPTOCAP:ETHEducation
by TraderAmin-KZ
4
Observations on Technical Verses Fundamental Analysis:Trend Following and Growth Investing In Technical Analysis (TA), trend following is the equivalent of growth investing in Fundamental Analysis (FA). Further, in TA, mean reversion analysis ("overbought" and "oversold") is the equivalent of valuation ("overvalued" & "undervalued") in FA. In both trend following and growth investing, the focus is on finding the best trends (price in TA, revenues in FA), without regard to "value". Therefore, a trend follower will hold onto a trending stock, regardless of how "overbought" it gets, much like a growth investor will hold onto a growth stock, regardless of how "overvalued" it gets. Conversely, a mean reversion investor will buy stocks that are very "oversold" relative to some anchor, such as the 200-day average or 52-week high, regardless of the direction of the trend, while a value manager will buy stocks that are "undervalued" relative to some anchor, such as earnings or book value, regardless of current fundamental performance. In other words, both mean reversion and value investors are making the case that the trends (price or earnings) have simply gone too far and are unjustified. Understandably, we can see why trend following and mean reversion don't "work" at the same time, just as growth and value don't "work" at the same time. In the end, the line in the sand between TA and FA is ego. A pure TA investor accepts the verdict of the market in terms of what it deems fundamentally "attractive" visa vie the existence of either a positive price trend in a timeframe that is driven by fundamental trends (as opposed to short term trends and noise) or a magnitude of "oversold" momentum that overlaps with historical valuation measures. A FA investor, on the other hand, invests perhaps hundreds of hours developing a personal opinion of what is "attractive", and often finds him/herself at odds with the market's verdict. Since we can never make money until the market agrees with us, we can see then how a more holistic investor who has the wisdom to unite the strengths of trend following with growth investing (or mean reversion with value investing) is better off than those who use only one of those inputs. By leaning on trend, a growth investor will know when the market agrees with his/her painstakingly curated fundamental view, particularly when things are changing, most importantly from good to bad. Behavioral bias may prevent a growth investor from seeing the change in fundamentals that is being depicted by the change in price trend. Indeed, it is in this very moment (former highflying, expensive growth stock that breaks price trend in a meaningful timeframe) when "overbought and overvalued" conditions finally start to matter. David Lundgren, CMT CFA Chief Market Strategist Co-Host "Fill the Gap" podcast Shared content and posted charts are intended to be used for informational and educational purposes only. The CMT Association does not offer, and this information shall not be understood or construed as, financial advice or investment recommendations. The information provided is not a substitute for advice from an investment professional. The CMT Association does not accept liability for any financial loss or damage our audience may incur.
Editors' picks
AMEX:IWYEducation
by CMT_Association
13
Using BTC Dominance With Current Bitcoin PriceSome people monitor bitcoin price along with bitcoin dominance to help them make trading decisions. Although they are not iron laws, here are some potential outcomes that various combinations of BTC price and dominance may be indicative of. 1. When the price and dominance of BTC are rising, it could signal a potential bitcoin bull market. 2. When the price of BTC is rising but BTC dominance is falling, it could signal a potential altcoin bull market. 3. When the price of BTC is falling but BTC dominance is rising, it could signal a potential altcoin bear market. 4. When the price and dominance of BTC are falling, it could signal a potential bear trend for the entire crypto market. 5. While these two factors do not imply a definite bull or bear market, historical observations suggest a correlation.
CRYPTOCAP:BTC.DEducation
by yaser_rahmati
1
What Is Market Capitalization? 1. Definition A. For a cryptocurrency like Bitcoin, market capitalization (or market cap) is the total value of all the coins that have been mined. B. It’s calculated by multiplying the number of coins in circulation by the current market price of a single coin. 2. How is it measured? C. Market Cap = Price × Circulating Supply 3. What can you do with market cap? D. Market cap allows you to compare the total value of one cryptocurrency with another so you can make more informed investment decisions. E. Cryptocurrencies are classified by their market cap into three categories (Large-cap , Mid-cap , Small-cap) 4. Large-cap cryptocurrencies F. Including Bitcoin and Ethereum, have a market cap of more than $10 billion. G. Investors consider them to be lower risk investments because they have a demonstrated track-record of growth and often have higher liquidity. H. They can withstand a higher volume of people cashing out without the price being dramatically impacted. 5. Mid-cap cryptocurrencies I. Have market caps between $1 billion and $10 billion. J. They generally are considered to have more untapped potential upside but also higher risk. 6. Small-cap cryptocurrencies K. Have a market cap of less than $1 billion and are most susceptible to dramatic swings based on market sentiment.
CRYPTOCAP:TOTALEducation
by yaser_rahmati
THE MOST IMPORTANT FOREX FUNDAMENTALS 📰 Hey traders, Even though I am a pure technician and I rely only on technical analysis when I trade, we can not deny the fact that fundamentals are the main driver of the financial markets. In this post, we will discuss the most important fundamentals that affect forex market. 📍Unemployment rate. Unemployment rate reflects the percentage of people without a job in a selected country or region. Rising unemployment rate usually signifies an unhealthy state of the economy and negatively affects the currency strength. 📍Housing prices. Housing prices reflect people's demand for housing. Rising rate reflects a healthy state of the economy, strengthening purchasing power of the individuals and their confidence in the future. Growing demand for housing is considered to be one of the most important drivers in the economy. 📍Inflation. Inflation reflects the purchasing power of a currency. It is usually measured by evaluation of the price of the selected basket of goods or services over some period. High inflation is usually the primary indicator of the weakness of the currency and the unhealthy state of the economy. 📍Monetary policy. Monetary policy is the actions of central banks related to money supply in the economy. There are two main levers: interests rates and bank reserve requirements. Higher interest rates suppress the economy, making the currency stronger. Lower interests rates increase the money supply, making the economy grow but devaluing the national currency. 📍Political discourse. Political discourse is the social, economical and geopolitical policies of the national government. Political ideology determines the set of priorities for the ruling party that directly impacts the state of the economy. 📍Payrolls and earnings. Payroll reports reflect the dynamic of the creation of new jobs by the economy, while average earnings show the increase or decrease of the earnings of the individuals. Growing earnings and payrolls positively affect the value of a national currency and signify the expansion of the economy. Pay closes attention to these fundamentals and monitor how the market reacts to that data. What fundamentals do you consider to be the most important? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
5
How to Invest in the S&P 500 [FOR DUMMIES]In the investment world everybody expects you to know exactly how to buy into an Index Fund, which makes it very hard to find a good detailed non-outdated resource to learn from. While it’s easy to do once your set up, learning how to from nothing was difficult (at least for me). Before you even think about investing into the S&P 500 you need to know WHY. Because if you don't know WHY your investing into this you will panic sell when its the best time to be buying. Now while this part can be answered by a YouTube video I put some of the main reasons below. - The s&p 500 is a diverse Index Fund. (The term index fund means a portfolio set up for you to invest in.) - The s&p 500 holds the top 500 USA companies. (The diversity in big companies makes it a safe investment in the long term.) - The s&p 500, over a 15-year period, beat nearly 90% of actively managed investment funds. (Meaning us noobies can beat the pros!) - The S&P 500 has always recovered, there are lost decades which the market has stayed down for 10 years but in those 10 years you could be buying every single month! (Dollar Cost Averaging) - With the power of compounding your money will grow exponentially. Now what is Dollar Cost Averaging..? Dollar Cost Averaging is buying roughly equal amounts of an asset per month. Doesn't have to be equal but nothing to different, for example you don't want to buy $500 worth's one month and $1000 worth's another (only spend what you know you can be consistent with in the future). Dollar-cost averaging is a great investing strategy because, in the long term, it can protect the investor (you) from market volatility (up and down movement) and reduce the amount you'll spend buying shares. So, over time, you will end up investing in more assets for less. Now what is compounding..? Compounding is re-investing both your capital gains and dividends in order to get a higher payout the next time around again and again and again.. till your rich. Although with compounding comes a catch; if you panic sell before your desired target you've fell into your own trap, because compounding depends on time, and you just smashed the watch. Plus, you should never panic sell when the market crashes; be happy you’re getting everything on a sale! Now we have reviewed why you should invest into the S&P 500, what dollar cost averaging is, what compounding is, and why panic selling is stupid. But how do you buy it?!? I started by trying a brokerage called Vanguard. (a brokerage company is pretty much a middleman that connects buyers and sellers). I wanted to use Vanguard because I knew that I wanted low purchase fees; low purchase fees are good because in the long term it impacts how much you’re actually investing (less fees = more invested long term). Now let me tell you this, vanguard SUCKS, their customer service is terrible, the website is terrible, and they wouldn't even let me open an account for god’s sake because "their website was down". The only thing good about them is their index funds and low fees. What took me a while to learn was that I can purchase the SAME index funds but with a different broker. Now I do recommend you get an account with Charles Schwab they have real branches you can go to and ask questions in (not just a phone number like Vanguard) plus if you do want to call their wait time isn't over an hour like Vanguard, and their website is user friendly. How to make an account with Charles Schwab..? Search up "Charles Schwab", click on their website, Open an Account, and decide what type of brokerage account you want (if your just one person pick individual), then continue with the steps. If you’re below the age of 18 search up "create a custodial account Charles Schwab" and start from there, you will need your parents SSN, and other info. Now that you have a basic account set up your ready to invest; but wait there's more. You currently have a brokerage account which means your eligible to invest however much you want per year, although once you pull the money out you will be taxed on it based off your tax bracket. Along with your brokerage account you should set up a Roth IRA account. A Roth IRA account is a retirement account in short, your allowed to invest up to $6000 per year into it and once your 50 you can pull it out TAX FREE. (if you pull it out any sooner it will act as a brokerage account and tax you, so don't do that). Making a Roth IRA account requires paperwork which you fill in and then go to one of the many "Charles Schwab Branches" to turn in. You can ask customer support to send you the paperwork to your email which you must print out. This account pretty much assures you will be a millionaire at retirement. Ok I have both accounts.. now how to buy? Click on "trade", make sure you’re on the "Stocks & ETFs" Tab, click the "symbol search bar", and type "VOO" (Vanguard S&P 500 ETF). Now decide on how many shares you want (you can check the price here on trading view). It will have an option to turn on auto-reinvest dividends make sure to click that, & make sure you select "Market Order" so you get filled in immediately then click "order". Always invest the maximum of 6K into your Roth IRA and invest as much as you can into your brokerage account. Every 3 months re-invest your capital gains on both accounts. You can see how much your projected to earn in the future. Search up "compounding calculator" put in how much you’re going to be investing per month, how long, and at a 10% average rate of return. I hope this helps, comment and like. :)
AMEX:VOOEducation
by pastworks
3
HOW TO use asymmetric compounding 🧐📈The pair in question and four winning trades allows me to cover a subject I've wanted to touch on. That subject is asymmetric compounding. Asymmetric compounding is a money management strategy that can accelerate the equity curve of an account. But you need the right strategy and data available to back up using asymmetric compounding. Higher the win rate the more asymmetric will work wonders on that equity curve. In simple terms asymmetric compounding is best suited to strategies with higher win rates as you need consecutive wins to make it work. The main reason for using this NZDUSD chart is the four winners in a row make it easier to explain the concept of asymmetric compounding. You traders should know the full ins and outs of your own strategies and if this can be applied. It's not just win rate also RR along with max losing and max winning runs need to be factored in. For this example on the four winning trades I am explaining the concept basing it on risking 2% per trade on the initial trade. As this strategy is a 1:2 risk reward strategy risking 2% sees us gain a profit of 4% on one winning trade. This is where you can then use asymmetric compounding on your next trade. Instead of risking 2% again you now risk the 4% gained from the previous trade on this trade. If the trade goes on to win the 4% risked on that trade has just earned 8% in profit. At this point you go back to risking 2% on the next trade until you have a win and then risk the 4% gain from that winning trade. The chart shows four winning trades at 1:2 RR so lets test the concept in numbers. If we was to risk 2% per trade on a £1000 starting capital account the results are as followed. Trade one 2% risked 4% gained= £1040 capital. Trade two 2% risked 4% gained= £1081.60 capital Trade three 2% risked 4% gained= £1124.86 capital Trade four 2% risked 4% gained= £1169.85 capital Now if we apply asymmetric compounding to the same trade sequence staring back at original 2% risk after two winning trades Trade one 2% risked 4% gained= £1040 capital. Trade two 4% risked 8% gained= £1123.20 capital Trade three 2% risked 4% gained= £1168.13 capital Trade four 4% risked 8% gained= £1261.58 capital Using asymmetric compounding on these four trades see a capital increase of £91.73 more than just risking a flat 2%. Below is an example of using a 1:1 RR strategy risking 1% per trade. If trade is a winner then risk 2% on the next trade which is the profit and the risk from the previous trade. # If that trade wins go back to the intial 1% risk then risk 2% again if that trade wins. This is a great concept to grow small accounts or even pass funded challenges as with the trades shown on the idea chart you would pass most prop firm challenges in two trades using asymmetric compounding. However I can't stress enough you as the trader need to know you own risk appetite for this. You also need to factor in how good your win rates and how often your strategy has seen winning runs that would benefit this concept. One way to found out is to back test and forward test your strategy to see how asymmetric compounding could work for you. Thanks for taking time out your day to read over my idea. Ill see you on the next one 👍 Darren
Education
by pow_removetheguesswork
80/20 P2How often have you heard “90% of traders fail while only about 10% make consistent money”? Often, I am willing to bet. Whilst the exact ratio of traders who make money vs. those who lose money is obviously almost impossible to pinpoint, it probably is somewhere between 80/20 and 95/5. Have you ever thought to yourself “why is trading apparently so difficult that 80 or 90% of people fail at it?” I’m willing to bet you have, and here is my answer to this pervasive question: Trading is the ultimate “less is more” profession, but it’s also extremely difficult for most people to accepting the following: 80% of trading should be simple and almost effortless, 20% is more difficult 80% of profits come from 20% of trades 80% of the time the market is not worth trading, 20% it is 80% of the time you should not be in a trade, 20% you can be 80% of trades should be on the daily chart time frame, 20% can be other time frames 80% of trading success is a direct result of trading psychology and money management, 20% is from strategy / system 80% Simple, 20% Difficult This one is easy. Most of what we do as traders is sit in front of our computers and look at prices going up or down or sideways. This is not by anyone’s standards “hard” to do. The point is this; determining market direction and finding trades is not hard, people make it hard. The difficult part of trading is controlling yourself via not over-trading, not risking too much per trade, not jumping back into the market on emotion after a big win or a loss, etc. In short, controlling your own behaviour and mindset, as well as properly managing your money are the hardest parts of trading, and traders tend to spend less of their time & focus on these more difficult aspects of trading, probably about 20%, when they should be spending about 80% of their time on them. 80% of profits come from 20% of trades It’s absolutely true that most trading profits come from a small percentage of trades. for example if you keep your losing trades contained below a certain 1R dollar value that you are comfortable with, and you see what you consider an “obvious” price action signal with a lot of confluence behind it, You will go in strong or add to the initial position and make a nice chunk of change on the trade if the trade goes in your favour. The winning trades are typically double or triple the 1R risk you give up on any of losing trade. This way, even if you lose more trades than you win, You can still make a very nice return at year’s end. 80% of the time the market is not worth trading, 20% it is Do you see the connection between the fact that most traders lose money (around 80%) and about the same amount of time the market is really not worth trading? Markets chop around a lot, and a lot of the time the price action is simply meaningless. As a price action trader, your job is to analyze the price action and have the discipline to not trade during the choppy (meaningless) price action and wait for the 20% or so market conditions that are worth trading. This point is the most important: The main thing that separates the professionals from the amateurs in this business is patience and not over-trading. Traders tend to negate their trading edge by trading during the 80% of the time when the market is not worth trading. Instead of waiting for the 20% of the time when it is worth trading, they simply trade 80% to 100% of the time with very little discretion or self-control, like a drunk guy at a casino. Don’t let this be you, remember the 80/20 rule ESPECIALLY as it pertains to trading vs. not trading. If you think you are trading about 80% of the time, you need to evaluate your trading habits and make it more in-line with trading only 20% of the time and 80% of the time should be spent observing and keeping your hands in your pockets (not trading). 80% daily chart trades, 20% other time frames The daily chart time frame chart supposedly is the “weapon of choice” as far as chart time frames are concerned. I would say it’s pretty accurate and won’t get into all the reasons why the daily chart to be specific as I do love my good'ol 15m/1h /4h charts, however it is worth pointing out that there is also a direct connection between the fact that most traders get caught up trading lower time frame charts and lose money. This fits well with the 80/20 rule in that probably only about 20% of traders really focus on higher time frame charts like the daily chart and somewhere around 20% to 10% of traders actually make consistent money. People tend to be drawn to the “play by play” action on the lower time frame charts, almost like they are mesmerized by the moving numbers and flashing colours…unfortunately, this turns into somewhat of a trading addiction for many traders, that quickly destroys their trading accounts. 80% of trading success is psychology and money management, 20% is strategy In the previous idea I wrote a mini case study of random entry and risk reward, I showed how it is possible to make money simply through the power of money management and risk reward. To be clear, I was not and am not saying that you can make a full-time living as a trader without an effective trading strategy. I am simply saying that money management and controlling your mindset is far more important than finding some “perfect, Holy-Grail” trading system that simply does not exist. You should be focusing about 80% of your trading efforts on money management and controlling yourself / being disciplined (psychology), and about 20% on actually analyzing the charts and trading. If you do this consistently, I can guarantee you that you will see a very positive change to your trading. Using an effective trading method that is also easy to understand and implement will give you the mental clarity and time to focus 80% on money management and discipline whilst only needing about 20% of your mental energy for analyzing the markets and finding trades. A lot of traders never even get to this point because they are still trying to figure out how the heck to make sense of their trading system. The implication here is that you can eliminate about 80% of your losses and be profitable come end of year of being consistent. The first step to trading with an ‘80/20 mindset’ is to master a simple trading strategy like a price action strategy . As I said earlier, if you do this it will give you the foundation you need to focus more of your time on the real “money makers” in trading, which are money management and your own mental state. Thus, the 80/20 rule in trading is best applied by combining a simple trading strategy and a strong focus on money management and psychology, the synergy of this combination is a very potent force for making money in the market. Rob Booker has a great well rounded video on Youtube on the topic also just search: THE 80/20 RULE FOR TRADERS (15:25) BINANCE:BTCUSD 👍
Education
by AdamsLibrary
1