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Losses

JOURNEY SOUTH?The most important part of trading - especially with true trend-following - is stalking your prey very very carefully. The next is controlling loss. Trend followers suffer heavier controlled losses - but also enjoy far greater gains - than those who rely on targets-based methods of trading. It is certainly not for 'everybody'. Only about 20% of all traders are true trend followers. Trend continuity trading is not trend-following. Of high importance with 'stalking' any particular trend - because losses can be heavier - is the entry point. For example the ideal entry point in the chart snapshot would have been close to 26000. Anything much lower than that means risking heavier losses. I'm often asked if A, B, or C instrument is heading north or south. Most traders when they ask this sort of question are not thinking in terms of time frame. They're mainly looking at price and thinking R:R ratio. In trend following all you can do is control the loss. You do not know how much you may eventually gain. That's why it's very scary! But this is not a tutorial on trend following techniques or strategy. Overall though, one just has to pick a trend control loss and follow on that chosen time frame. It could be a lowly 1 min trend to a higher 1H trend - whatever you want so long as you can take the loss without flinching. I almost never get involved with higher than 1H trends these days. For those new to trend-following, from my experience, a simple 5 min trend can take up to about 2 days before it reverses. A 15 min trend can last several days. 1H trends can last a couple weeks. Of course, they can be very short lived too. Trend followers will also use harmonic patterns and other methods to assess key entry points. So 'we' don't have a problem with other methodologies. We'll use anything to get a pound of flesh out of the markets. But following the trend is the big thing. Disclaimers : This is not advice or encouragement to trade securities. No predictions and no guarantees supplied or implied. Heavy losses can be expected. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
FOREXCOM:US30Education
by Captain_Walker
<Education> A PRIMITIVE Reason To Your ID Losses...Hi traders, let's look at a fact so simple you probably never took it into consideration! Most of the traders with at least some experience will acknowledge the key to profit is psychology rather than a magical pattern. Time plays a big role in our thought process. Let's combine time with basic math: Each stock has it's own "tempo" which of course varies, but we can eyeball it. Let's say it moves 1 dollar every hour. Your SL is 50c and you are using 2:1 RRR. See the point? If it hits your SL, it will be much quicker than if you are right but have to endure the hour-long journey to your Profit Target. This is one of the reasons after a few losses you get the feeling "The market is after me!! Every time I enter it kicks me right out!". Thank you for your attention and I hope this little piece helps you rationalize some of your fears. Tom | FINEIGHT
AMEX:SPYEducation
by Fineight
Unethical trading representations (educational)This topic has not to my knowledge been covered on Tradingview before now. I specifically explore ' unethical trading representations' and explain in the limited time what that means as a concept. To be absolutely clear, I am not asserting that every paid-for service or representation is unethical or illegal. What I am saying is that new traders and the inexperienced are like 'fresh meat' for these schemes, that aim for a small percentage of them. The impact assessment - whether or not new traders pay for 'inner circle' access in these things, is of real importance. Nothing said in this post refers to any identifiable individual, group or entity. New traders especially need to be hyper-vigilant and cautious before parting with their money. But even if not parting with money, the potential negative impact is of importance. I declare a personal bias, that I have been stung by three of these early in my trading career.
Education
by Captain_Walker
SPX [TECHNICALS & FUNDAMENTALS] rally to Feb 15 at $2800TECHNICALS - Gann fans and Fib retracements show us going on one more run. On an Eliot count, we can still be working on the 5th wave up. And take a closer look at the top 10 largest stocks... they all have room to go on one more run. Also, we didn't get a sharp dip from the 618 ($2720), suggesting we have room to keep going. Stoch is overbought, RSI is overbought (almost...), but if we stay flat on Tuesday Feb 5 we can work some of this off, and gap higher Wednesday at open. When we finally hit the 2800-28200 fib level, expect to see an impulse touch and sharp fall - similar to how Amazon touched the 618 at $1730 before consolidating. FUNDAMENTALS - Trump state of the union will be boring... why would he declare a national emergency? That's his last card. He will wait until Feb 15 to do that. Dems have no rush to make a deal bc they want to secure the 2020 election by driving Trumps into defeat. Feb 15 checks all the boxes on the technical projections. I think the Mueller subpoena is supposed to be around Feb 15 too. The jobs report was good, J Powell's dovishness was good. The general public still believes we will keep on rallying in this bull market. Sucker in the last few on this rally to $2800, and drop it hard. Side note- I also look at crypto as a leading indicator to market drops since it is a high-risk sector. BTC looks primed to jump to the top of the ascending triangle before falling as well. We are on thin ice right now though, and the stock market is starting to look (technicals) and feel overstretched. Consider or simply disregard my collection of thoughts here... but definitely proceed with caution.
SP:SPXEducation
by warrenbudget
2
Trend is your friend -[A lesson](NEVER GO AGAINST THE MARKET)EURAUD I learnt a lesson for lifetime here: I closed my short early around the 4th LL(MY TP had reached) : Now i wanted more so kept my longs but extinguished my Shorts. I had long positions buildup on every lower low considering the EUR to overpower AUD fundamentally. But it never occurred as you can see I did exit my longs during the Asian session as I saw the LL break but it was a fakeout for the session. In the End the fake move turned out to be the original move. How biased I became doing TA to justify My Longs and over 400$ in draw down(Wiping off all my gains for today and yesterday.) I made an A symmetric triangle for tend reversal then searched the web and realized it was a continuation pattern my mind played tricks on me. As soon as the Triangle broke I got out of the trade as I couldnt see my gains go to -ve.(So now im neutral for the week. All hardwork gone just cause i kept adding to my loosing position ) I even made a Inv H&S as you can see to justify that my long position was valid and shouldnt have closed em in loss. But thankgod I did Finally, friends be careful out there never go against the trend. So my holiday starts much sooner gonna take a breather here and start back again from monday. I Had my analysis of downtrend did take the trade. in-spite of that my mind kept playing tricks on me to add counter trend positions and IDK what I need to do to not make the same mistake again(Read more psychology books?) Any help would be wonderful.
Education
by blankz369
It's a loser's game - officiallyThis post is modified and re-posted after it was banned (a matter of fact and the truth). Why? I was said to be promoting a broker's website seemingly because by I identified the source of quotation and said that they were being honest. I have now substituted the name the broker with a fictitious ABCXYZ (which is not the name of any broker as far as I am aware). The rest of the post is the same. I promote nobody - not even myself. ESMA is not a broker. The quotation is directly from an email I received today from ABCXYZ.com ABCXYZ.com has been fully transparent on the risk of losing money on it's platform. Nothing in this educational post is to suggest that people avoid trading. The sole intention of this post is for new and season traders to better understand the risks, and to realise the amount of effort, discipline, training and sacrifice that are needed to become consistently profitable. As a new trader your chances are very very slim, for making consistent profits over months or years. Some people think that it's all about following a set or rules. Well, if it was that simple then 80% of people would just follow rules and be millionaires. That's not going to happen! For novices, the high probability of losing money is nothing to do with any particular broker. It must be something else! I'm afraid the most important factor is hardly ever discussed in forums. What's that? It's about 'trader psychology'. It's that unseen thing - the elephant in the room - that causes the problems. I say, it does not matter what system you use to tackle the markets with, the underlying obstacle is 'your psychology'. It is not about mastering the charts. It's all about self-mastery. Any dissenting opinions? Have your say now. For the avoidance of doubt or suspicion, I am 100% committed to helping other traders develop for absolutely no pecuniary or other advantage to me - ever! In other words, I'll never take you to some site that sells tips, signals, or courses - where you'd start of at free but then have to pay to learn from some 'inner circle'.
BITSTAMP:BTCUSDEducation
by Captain_Walker
HOW TO BECOME SUCCESSFUL IN TRADINGHi everyone. I just wanted to share little bit of my knowledge and learning in the forex market with you all so you can benefit from it too. I started learning trading 3 year ago. Fundamentals and News trading were what I started with. As a news trader you need to watch the market news on fundamentals (such as central bank decision makings on bank interest rates) and sentiments (such as short term news like geopolitical concerns in certain countries which moves the market for a short term only).... But it did not work out for me, so I moved on to a different strategy. The next was support and resistance strategy which I am sure most of you are familiar with. It made me some winning trades but in the long term I was in loss. Next I moved to a strategy called EW (Elliot Waves), I tried to master counting waves 1,2,3,4,5 it helped me a bit but it was also a failed strategy for me, I am not sure if it worked for anybody but it did not work for me. Till 9 months ago I came across learning a concept called IMPULSE AND CORRECTION. When I started removing all the lines and indicators from my chart and just tried to look at the charts from a bigger perspective, I realised that price forms 2 moves only. 1. IMPULSE (a sharp move to upside or downside with long candles) 2. CORRECTION (a pattern which forms before an impulse occurs) So to cut the story short, this is what I have been focusing on in the past 9 months and to be honest it has been making me money with proper risk management and PATIENCE. I will go into details in my next educational posts about this strategy and how to identify corrective patterns so you can catch the next impulse. For the time being please look at the above chart to learn something new from my experience so far. Thank you for taking the time to read this as I know many of you are still struggling to make it happen in trading. Hope you learn something new from my posts and wishing you all good luck in this business.
Education
by AlanTradesFX