Why Trading Sessions Matter in Forex: Key OverlapsThe Forex market is open 24 hours a day during the weekdays, allowing traders flexibility to trade at any time. However, understanding the best times to trade is essential for effective trading. The market is divided into four main sessions: Sydney, Tokyo, London, and New York, each corresponding to peak activity in key financial centers. Using a Forex Market Time Zone Converter can help traders determine which sessions are active in their local time, making it easier to plan around high-liquidity periods.
Although the market is technically always open, not all trading times are equally profitable. Higher trading volume, which generally occurs during session overlaps, creates ideal conditions for traders. For example, the overlap of the London and New York sessions sees the highest volume, with more than 50% of daily trades occurring in these two centers. Trading at this time, especially with currency pairs like GBP/USD, can lead to tighter spreads and quicker order execution, reducing slippage and increasing the likelihood of profitable trades. Similarly, trading AUD/JPY during the Asian session, when the Tokyo market is active, is advantageous due to higher trading activity for these currencies.
Conversely, trading during times when only one session is active, such as during the Sydney session alone, can result in wider spreads and less market movement, making it harder to achieve profitable trades. Planning trades around high-activity sessions and overlaps is key to effective forex trading.
Tradingtips
How to Use Exponential Moving Averages?The Exponential Moving Average (EMA) is one of the most popular technical indicators for traders, known for its sensitivity to recent price changes and ability to reveal trends in real-time. This is certainly not a 100% grail or a super indicator! But I would recommend not to ignore EMA during backtests
What is the Exponential Moving Average (EMA)?
The EMA is a moving average that gives more weight to recent prices, allowing it to react faster to price changes compared to the SMA. This quality makes EMA especially valuable in volatile markets like cryptocurrencies, forex, and stocks. Typically, traders use the EMA to smooth price data, making it easier to spot trends and reversals.
Key EMA Timeframes:
Short-Term: 10-20 EMA (for quick trades and scalping)
Medium-Term: 50 EMA (commonly used to gauge trend direction)
Long-Term: 100-200 EMA (used to assess overall market sentiment)
Why Use EMA in Trading?
The EMA helps traders identify the trend direction, evaluate market momentum, and recognize possible reversal points. Because the EMA adjusts quickly to price changes, it is effective for day trading, intraday trading, and even longer-term investing. Its responsiveness is particularly useful for:
Trend Confirmation: The EMA helps traders confirm if a trend is upward or downward. Multiple EMAs used in combination can highlight potential crossovers that signal trend shifts.
Entry and Exit Signals: EMA crossovers and support/resistance levels can serve as effective entry and exit points.
Momentum Assessment: Short-term EMAs provide insight into current momentum, while longer-term EMAs reveal broader market sentiment.
Pros and Cons of Using EMA in Trading
Pros:
Reactiveness: EMA adjusts quickly to new price movements, helping identify trends sooner than SMA.
Versatility: Suitable for various timeframes, from scalping to swing trading.
Clear Signals: Effective in trending markets for capturing entry and exit points.
Cons:
Sensitivity to Noise: EMA is more susceptible to market “noise” or erratic price swings, leading to potential false signals in choppy markets.
Not Ideal for Ranging Markets: EMA is less effective in sideways or consolidating markets.
Tips for Trading with EMA
Use EMA in Trending Markets: EMA performs best when there is a clear trend. In ranging markets, signals are less reliable.
Combine EMA with Other Indicators: Use indicators like RSI or MACD to confirm EMA signals and reduce the chances of false breakouts.
Stick to Risk Management Rules: EMAs, while effective, are not foolproof. Always set stop-loss levels and use proper position sizing to manage risk effectively.
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✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes.
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Learn How to Avoid Margin Call in Trading
Hey traders,
In this educational article, I will share with you 5 simple tips that will help you not to blow your trading and avoid margin call.
1️⃣ Always Use Stop Loss.
Let's start with the obvious - with the stop loss order.
Never ever trade without that. Before you open your trade, plan in advance its placement, stick to it once the position becomes active and never remove it.
2️⃣ Manage Your Position Sizes
I know that most of you are trading with a fixed lot. That is a bad habit. You should measure the lot size for each trading position you take. You should define in advance the risk percentage you are willing to lose per trade and calculate the lot sizes for your trades accordingly, then.
3️⃣ Avoid Taking Too Many Positions
Remember that in trading, quantity does not imply quality. The more trades you take, the harder it is to manage each position individually. I would suggest opening maximum 5 trades per day and holding no more than 8 trades simultaneously.
4️⃣ Avoid Trading Too Many Markets
The wider is your watch list, the harder it is to focus on each individual element inside. Do not try to control as many markets as possible, instead, narrow your watch list and concentrate your attention on your favorite trading instruments.
5️⃣ Remember About Volatility
The more volatile is the market that you trade, the harder it is to trade it and the bigger stop losses you need to keep your positions safe. Remember, that the volatility is the double-edged sword. It can bring substantial profits, but it can also blow your entire account in a blink of an eye.
Following these 5 simple rules, you will make your trading much safer. Study them and add them in your trading plan.
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Mastering the "IF-THEN" Mindset: The Key to Stress-Free TradingIn this video, I’ll share how using IF-THEN statements helps me stay balanced in my trading. It’s simple: IF the price does this, THEN I’ll do that. Having a plan like this keeps me from getting caught up in emotions and helps me react to what’s actually happening in the market – not what I wish would happen.
This mindset keeps things smooth, makes trade management easier, and keeps me consistent. It’s all about staying ready for whatever the market throws your way.
If this vibe clicks with you, drop a comment, like, or follow – I’ve got plenty more insights to share!
Mindbloome Trading
Trade What You See
Find Your Trading Style: What Type Of Trader Are You ? Good morning, trading family! Ever feel overwhelmed by all the different trading strategies out there? You're not alone, and today we’re here to help you figure out exactly which trading style suits you. In this video, we’ll explore the four main types of trading—Scalping, Day Trading, Swing Trading, and Position Trading—and give you real-life examples so you can see which one fits your personality and goals best.
Whether you’re someone who thrives on fast-paced, high-energy trades or prefers to take a step back and play the long game, this video will give you the clarity you need to trade with confidence. My goal is to help you tailor your strategy so it feels natural and aligns with how you want to trade.
If you find this valuable, please comment below and tell me which type of trader you think you are! Don’t forget to like or share this video so other traders can benefit from it too. Your feedback can make a huge difference for someone else in our trading family!
Happy Trading
Mindbloome Trader
OvertradingI want to talk about overtrading in trading
Looking at social media traders, it seems like everyone is trading perfectly! In reality, everyone has their own demons that we fight every day! Overtrading is not gambling, but it is also not good! Yes, of course, we must have a trading strategy and if we do not stick to the strategy, and more importantly, risk management! The number of open trades does not equal profit!
Overtrading is an excessive passion for buying or selling financial instruments, also known as tilt. In other words, having too many open positions or using a disproportionate amount in one trade. There are no laws or rules against overtrading for individual traders, but it can hurt your trading account or portfolio.
Trading style is an important component of your trading. This means that your preferred style should determine the frequency of your trades. For example, you are more comfortable trading swing positions with a stop loss of 3-4 percent with a little leverage! Perhaps you do not have the time or desire to sit during the day and monitor entry points! Therefore, if you have a trading style that is comfortable for you, stick to it! If you switch and make 3-5 trades during the day, you will simply burn out from emotions, good or bad! You can also feel problems when you do not trade enough! Sometimes you see positions, but fear overcomes you and you do not open positions, but just watch! Often, after a series of such missed trades, you open a trade on emotions! Therefore, always keep a balance in your trading style
The biggest reason for infrequent trading is the fear of losing money. But if you do not trade, you can miss good trading opportunities.
Reasons for overtrading
Excessive trading occurs when a trader does not adhere to the rules of his trading strategy. He is tempted to increase the frequency of trades without consulting a trading plan, which can lead to bad consequences. To prevent overtrading, you can change your trading plan at any time to be more restrictive and add stricter entry and exit criteria.
Avoid emotional trading: Distinguish between rational and emotional trading decisions and back up your decisions with clear market analysis. Diversify your portfolio: If you often open more than one position, you can minimize risk by spreading your investments across different asset classes. Use only what you have: Decide how much you want to risk, but never trade with more capital than you can afford to lose. When it comes to your trading plan, consider your goals and motivation, time and money, and market knowledge to manage risk.
Goals and Motivation
Describe what drives you to trade. Do you want to make a profit? Or do you simply want to learn more about how the financial markets work? It’s important to not only write down why you want to be a trader, but also what type of trader you want to be. There are four common trading styles: scalping, day trading, swing trading, and position trading.
Finally, you should write down your daily, weekly, monthly, and yearly goals.
Time and Money
Decide how much time and money you want to dedicate to trading. Remember to factor in preparation time, learn about the markets, analyze financial information, and practice on a demo account. Then decide how much of your own money you can dedicate to trading. Never risk more than you can afford to lose.
Risk Management
Decide how much risk you are willing to take. All financial assets carry risk, but it is up to you to decide how aggressive your trading strategy will be. Risk management includes determining your preferred stop losses, limit orders, and risk-reward ratio.
Market Knowledge
Before you begin trading, it is essential that you thoroughly understand the markets and trading. Assess your experience before you start trading, and keep a trading journal to learn from your past mistakes.
Overtrading and Risk Management
Managing risk when overtrading or tilting starts with a trading plan. Regardless of your experience level, type of trader, or the amount of money you have to spend, you need a well-thought-out trading plan. Once you have that plan, you can assess how much you are trading.
Calculate your maximum risk per trade
Choosing how much to risk on each trade is a personal choice. It can be anything from 1% to 10% for traders who can take a lot of risk. But if you risk up to 10%, it can take as few as five trades to lose 50% of your trading capital, so a lower percentage is usually recommended.
You should make sure that your risk percentage is sustainable and that you can still achieve your trading goals with the chosen percentage of risk you take
What Experienced Traders SayHey! In this post, I would like to share seven unexpected tips that can transform your trading approach and mindset.
These insights, collected from various sources and trader experiences, challenge conventional wisdom. Implementing these principles can significantly enhance your trading performance and decision-making .
7 UNEXPECTED TIPS
1️⃣ Trading More or Longer is Not Better: Quality over quantity should be your mantra; focus on high-value trades rather than increasing volume. Trade proven setups.
2️⃣ Trading is Not About the Market; It's About You: Your mindset, discipline, and emotional control play a pivotal role in your success. Don't gamble!
3️⃣ The Focus is Not on Winning; It's on Not Losing: Risk only what you can afford to lose. Protecting your capital should be your primary goal — profits will naturally follow.
4️⃣ Demanding Certainty is Not Productive: Think probabilistically. Embrace the uncertainty of the markets; flexibility is key to adapting your strategies.
5️⃣ A Trader Does Not Need to Be a Genius: Successful trading is about consistency and learning, not innate talent. Get smart.
6️⃣ The Harder You Try To Make Money, The Harder It Becomes:
LET IT GO! Sometimes, letting go of the need for immediate profits can lead to better results.
7️⃣ How Often You Win is Less Important Than You Think: Focus on your overall strategy and risk management rather than just win rates. You can be PROFITABLE with 33% win rate!
What do you think about these unexpected tips? Have you experienced any of these insights in your trading? I’d love to hear your thoughts and experiences — drop a comment below!
If you found these tips valuable, please give this post a like and follow for more insights!
Why we always widen our stop loss when DAY TRADINGVery important and basic rule with Day Trading.
Always increase the stop loss when going short (sell) above the original stop loss.
Always decrease the stop loss when going long (buying) below the original set stop loss.
Reason: When the index touches the ASK or BID price (regardless of it actually trading there), it will get you out of your trade and hit your stop loss.
So, don’t be afraid to increase the distance between the entry and stop loss.
As long as the Risk to Reward stays above 1:1.5 – It’s fine.
How much do I increase the distance between the entry and the stop loss?
Notice what the spread is on the contract when you place your stop loss.
So wherever you wanted to put your stop loss originally, add the spread on top of that and that is where you would place your NEW stop loss.
Maybe 20 – 30 points is safe.
But other times it could be up to 50 points
Forex Trade Management Strategies. Techniques For Beginners
I am going to reveal 4 trade management strategies that will change the way you trade forex.
These simple techniques are aimed to minimize your losses and maximize your gains.
1. Trading Without Take Profit
Once you spotted the market that is trading in a strong bullish or bearish trend, there is one tip that will help you to benefit from the entire movement.
If the market is bullish, and you buy it expecting a bullish trend continuation, consider trading WITHOUT take profit.
Take a look at USDJPY on an hourly time frame.
The market is trading in the bullish trend, and we see a strong trend-following signal - a bullish breakout of a current resistance .
After the violation, the price went up by more than 1000 pips, and of course, trading with a fixed target, most likely you would close the trade too soon.
The same trade management strategy can be applied in a bearish trend.
Above is a price action on GBPUSD. The pair is very bearish, and we see a strong bearish signal on an hourly time frame.
The market dropped by more than 1000 pips then, and of course, trading with the fixed take profit, you would miss that bearish rally, closing the trade earlier.
Even though the trends do not last forever, the markets may easily fall or grow sharply for weeks or even months and this technique will help you to cash out from the entire movement.
2. Stop Loss to Breakeven
Once you open a trading position and the market starts going in the desired direction, there is a simple strategy that will help you to protect your position from a sudden reversal.
Above is the real trade that we took with my students in my trading academy. We spotted a very bearish pattern on USDCAD and opened short position.
Initially we were right, and the market was going to our target.
BUT because of the surprising release of negative Canadian fundamental news, the market reversed suddenly, not being able to reach the target.
And that could be a losing trade BUT we managed to save our money.
What we did: we moved our stop loss to entry level, or to breakeven, before the release of the fundamentals.
Trade was closed on entry level and we lost 0 dollars.
Moving stop loss to entry saved me tens of thousands of dollars.
It is one of the simplest trade management techniques that you must apply.
3. Trailing Stop Loss
Once you managed to catch a strong movement, do not keep your stop loss intact.
As we already discussed, your first step will be to protect your position and move your stop loss to entry.
But what you can do next, you can apply trailing stop loss.
Above is a trend-following trade that we took with my students on GBPCHF.
Once the market started moving in the desired direction, we moved stop loss to breakeven.
As the market kept setting new highs, we trailed the stop loss and set it below the supports based on new higher lows.
We kept trailing the stop loss till the market reached the target.
Application of a trailing stop will help you to protect your profits, in case of a sudden change in the market sentiment and reversal.
4. Partial Closing
The last tip can be applied for trading and investing.
Remember that once you correctly predicted a rally, you can book partial profits, once the price is approaching some important historical levels or ahead of important fundamental releases.
Imagine that you bought 1 Bitcoin for 17000$.
Once a bullish market started, you can sell the portion of your BTC, once the price reaches significant key levels.
For example, 0.2 BTC on each level.
With such trade management technique, you will book profits while remaining in your position.
Even though, these techniques are very simple, only the few apply them. Try these trade management strategies and increase your gains and avoid losses!
❤️Please, support my work with like, thank you!❤️
Serious psychological barriersSerious psychological barriers
1) Fear of missing out
The first thing you should define is your trading plan, trading method
You should remember the main factors of your setup formation (Time&Price). At what time this setup is formed, the presence of a sequence (context). If you do not know when your trading idea/setup can be formed, then most likely - you do not have a trading plan or a trading setup. Remember that trading is a game of probabilities, but trading is not a game.
Having a trading plan is the key, trading time, session, waiting for a possible setup to form, take notes based on what happens in each session, and in the future, some patterns can help you. Even if you miss some setup, you should not worry about it, since you know +- time when a new one will form
2) Fear of losing
You need to remember that there is not a single setup with 100% or even 70% accuracy of execution! In fact, there is no point in even such a setup or searching for it! The question is always only in your risk management! Fear of losing - arises from the lack of a plan.
3) Impatience
This occurs in young traders, even with a strategy, successful capital management. But, sometimes, we enter a position before we should. This requires a lot of attention, develop discipline, following the rules of your trading method. All this is due to the fact that you do not want to spend enough time on trading experience, since in most cases, when you achieve success or make a profitable decision, you will want to experience this rush of emotions as quickly as possible, so you can fix your profit ahead of time, or open a position before your setup is formed. Do not follow your emotional impulses, do not try to prove your case, just wait for the moment
4) Fear of not being a good enough trader
This is a side effect of being on social networks. Social networks are the problem of the 21st century! Everyone lives by the principle of Fake it till you make it. If you think you are not as fast a learner as the guy on Twitter, and even if he says that everything is fine - remember, in reality, it is not. Most people try to pretend and distinguish themselves as "the smartest in the room". Don't let this bore you too much or make you feel inferior
The most important thing is to study your statistics, your data over time, remember where you started and determine if you have achieved results since then.
5) Fear of losing streaks and drawdowns
This is directly related to money management. You do not have a process, a sequence of actions, when you have a losing streak or drawdown, you must understand how to reduce the risk, how to act in this situation. This is where your trading strategy will help you, where all the risk management is described. State everything about managing your deposit, when you stop trading, when you reduce risk or when you stop trading
6) Lack of discipline and rules
Listen to your inner voice that tells you: "Don't do this" but you continue anyway, you want to see what happens next. Do this outside the market, there must be clear discipline and rules that must be followed. Discipline is achieved by forcing yourself to follow a set of rules and these rules must be strict, short and detailed
Exploring Trading Basics: Expert Tips for New TradersWelcome to the thrilling world of trading, future market experts! If you’re stepping into this arena for the first time, it’s natural to feel both excited and a little overwhelmed. No worries — we’ve set up this nice value-packed TradingView Idea to make you feel at home. Read on for practical tips that will help you kick off your trading journey to a strong start. Ready, set, go? Let’s roll!
1. Get Yourself Familiarized
Action Step : Your first step as a fresh trader is to familiarize yourself with the market fundamentals. Start by getting a solid grasp of basic market concepts. Learn about different asset classes like stocks , forex , or crypto .
Understand how they work and what news or events influence prices across the board (spoiler: if you’re looking at the bigger picture and keep it high level, there aren’t too many things to consider — check the Economic Calendar Related Idea below). Spend an hour or two each week reading about market fundamentals. Knowledge of these basics will make you more confident in your trading approach and also help you see where you feel most comfortable putting your money. And don't forget about the trading psychology part .
2. Set Clear, Achievable Goals
Action Step : Write down your trading goals and stick them somewhere you can see them. Aim for specific, measurable targets like “Hit a 2% monthly return” or “Learn a new trading strategy weekly.” This keeps your efforts focused and on track.
But don’t stop there. Keep revisiting, updating, and refining your trading goals. Think of them as your compass or map that you need to follow in order to get where you want. In contrast, not having a goal or goals might throw you out in the open where you wander without a clear path or direction.
3. Stick to Your Budget
Action Step: Decide on your total trading capital and how much you’re willing to risk per trade. Use the 1-2% rule: never risk more than 1% or 2% of your total capital on a single trade. This will help you protect your account from total wipeout.
It’s easy to get swayed by some massive move in the market (yes, we know about Bitcoin BTC/USD ), but catching these waves is rarely an easy game. The better you are at sticking to a healthy level of risk exposure, the better your chances to stay in the game for as long as possible.
4. Stay Updated with Market News
Action Step : Dedicate 15 minutes each morning to checking financial news. Keeping tabs on major economic reports and events will give you an understanding of what investors regard as important so you can add it to your agenda too.
We’ve set up a nice and easygoing Top stories news stream that serves you only top-tier market-moving scoops, published daily and updated in real time. Make sure to frequent them so you can raise your level of knowing what’s happening in the markets.
5. Keep a Trading Journal
Action Step : For every trade, jot down the details in a journal. Include entry and exit points, your reasons for the trade, and the outcome. Review your journal weekly to identify patterns and areas for improvement.
If you want to get an even more precise look at your trading performance, add more columns to it and include prospect trades, or a watchlist of positions you’re interested in. Mark your monthly performance, year-to-date returns, and even how much you paid in commissions.
6. Start Small and Scale Up
Action Step : Begin with small trades to minimize risk while you’re learning. For example, if you have $1,000, start with trades of $50-$100 and keep your stop tight around the 2% mark. That way, you’ll gain experience and see how you feel when you have an open trade.
Leave a trade overnight, watch it actively or let it run for a few days (provided you use a stop loss , more on it in the Stop Loss Related Idea below) — all these will help you ease into smoother trading and build better confidence. After that, you can gradually increase your trade size for bigger profits. And — most importantly — don’t rush it. The markets will be there tomorrow; but will you?
7. Use Stop-Loss Orders
Action Step : Always set a stop-loss order when placing a trade. For instance, if you buy a stock at $100, set a stop-loss at $95. This means your position will be automatically sold if the price drops to $95, limiting your loss to $5 per share.
The use of stop-loss orders, or simply stop losses, can’t be emphasized enough. No matter how confident you are on a trade, how much conviction you have to go big, always think of the downside, or how much you’re willing to lose.
8. Join a Trading Community
Action Step : If you’re reading this, then you’ve already nailed this step. TradingView is the world’s largest finance, markets, and charting platform, boasting more than 60 million monthly visitors — one big, big community .
This is the place where traders share tips and strategies, show off their charts, discoveries, patterns, price targets, and trading ideas. So, stick around, engage, ask questions, and learn from the experiences of others.
9. Diversify Your Portfolio
Action Step : Spread your investments across different sectors and asset classes. Don’t just buy big tech stocks ; consider some auto companies as well or the volatile corner of cryptocurrencies.
Diversifying your portfolio (learn about it in the Diversification Related Idea below) will help you balance your risk, ideally without reducing the potential for returns. You don’t have to go all-in on a trade and YOLO your entire life savings into a Solana meme coin. Think of the long term and tread carefully. Sometimes, you’re as good as your last trade.
10. Continuously Improve Your Skills
Action Step : Dedicate time each week to learning something new about trading. Watch educational videos , read books, or dive into financial podcasts where big market events get broken down or where traders and investors share their experience and what made them successful.
The markets renew each day, never resting, never ceasing to oscillate and presenting new trading opportunities. Always learn, never get complacent, and keep striving for more!
Share Your Thoughts!
So there you have it, folks! With these practical, actionable tips, you’re ready to jump into the trading game with some added confidence. Remember, every pro was once a newbie. Stay cool, stay informed, and most importantly, have fun with it (but also be smart). Happy trading! 🚀📈
Why it PAYS to be a PATIENT trader - 5 ReasonsPatience isn’t just a virtue.
Patience is your portfolio’s best friend.
Now you might think that patience is just sitting on your hands and doing nothing.
It’s not!
It’s about taking the time to prepare, analyse and wait for when the moment arrives.
And that’s why you have to keep your eyes peeled and ready to take on the big bad market.
So here are 5 reasons why it pays to be a patient trade.
🚦 #1: Stops You From Making Impulsive Decisions
Ever caught yourself hitting the ‘buy’ button for the sake of taking a trade?
You’re not alone.
Impulse is the enemy of reason, and in trading, it’s the fast track to a thinner wallet.
Remember, the market will always be there tomorrow, but the same can’t be said for your capital.
Impulsive decisions normally yields LOW probability trades. And that’s a reason in itself to STOP doing it.
Why take the risk?
🔍 #2: Helps You Spot High Probability Trades
The markets speak to those who listen.
Patience gives you the superpower to cut through the noise and hone in on high-probability trades.
It’s like having a financial crystal probability ball.
Instead of predictive qualities, you’re armed with analysis, trends, and a likelihood of how a trade is more likely to play out.
Remember, more trades from all types of markets don’t mean more wins.
Often, they just mean more fees, more stress and more losses.
🤲 #3: Hold Onto Winners
Got a winner in play?
Cool…
Patience says, “Hold it, let’s ride this wave a bit longer.”
It’s the difference between a quick sprint and a marathon.
Sure, locking in profits feels good and it looks promising on the portfolio.
But in the medium to long run, it’s a traders kryptonite to defeat.
Trading patience whispers in your ear,
“There’s more to come,” and more often than not, it’s right.
🧠 #4: Takes Away Fixation
Obsession is a trader’s Achilles heel.
Patience frees you from the chains of market fixation.
This will allow you to take a step back, focus on other things and not get hung up on every markets ticks.
Stop fixating on your trades once you’re in.
You have the strategy in play, you have risk and reward levels setup.
Let them be and follow your strategy (regardless of whether it’s a winner or a loser).
🐆 #5: Wait for the Prey
In the wild, the most successful predators are those that can wait, watch, and pounce at the perfect moment.
A leopard will wait for hours in the tall grass. But when the probability is high and the leopard has done its instinctual calculations – it will pounce and WIN.
You’re not chasing every gazelle; you’re waiting for the right one, the one that’s worth the energy.
It’s about being proactive, not reactive.
You set your terms, your entry, and exit points, and then you wait.
The market will move; it always does. And when it moves into your crosshairs, that’s when you strike.
So let’s sum up the reasons it pays to be a patient trader.
🚦 #1: Stops You From Making Impulsive Decisions
🔍 #2: Helps You Spot High Probability Trades
🤲 #3: Hold Onto Winners
🧠 #4: Takes Away Fixation
🐆 #5: Wait for the Prey
EGO NO GO Traders’ Downfall: Six Actions to AvoidThere is NO place for ego and bravado with trading.
If it falls under your personality, you have been warned.
Do you know why?
Because ego and emotion are traders’ kryptonite.
In this piece, we’ll dive into the egotistical trader’s playbook and shine a light on six actions that could be crippling your trading game.
EGO NO GO #1: Overtrade: More is Not Always More
Overtrading is like trying to sprint a marathon; it’s unsustainable and a fast track to burnout.
You need to pace yourself or you’re going to get a spasm or a stitch.
As a trader, you’re not a machine-gun trader, firing rounds at every shadow.
You need to only look and wait for the highest probability trades.
Remember, it’s about the right trades, not just more trades.
Solution: Quality Over Quantity as I always tell my MATI Traders!
EGO NO GO #2: Revenge Trade: The Emotional Spiral
After a loss, I know it feels tempting to jump straight back into the markets in order to recover your funds.
But let’s face it…
Revenge trading is about as effective as using a leaky bucket to bail water out of a sinking ship.
Solution: Keep Cool and Carry On
Clear your head.
Take a walk, grab a beer – The market will always be there for you the next day.
And it will probably dish out even better trades.
Remember, the market doesn’t know you, and it certainly doesn’t owe you. Stick to your plan, not your pride.
EGO NO GO #3: Ignore Risk Management: The Silent Killer
If you ignore risk management, it’s like skydiving without checking your parachute.
What if you jumped and instead of a parachute you’re wearing a backback?
Don’t laugh, these things happen.
With trading you need your risk management measures:
Stop loss of less than 2%
Drawdown management when the portfolio goes down.
Risking money you can emotionally handle to lose.
Making sure of your trade size.
Checking your risk to rewards.
Ensuring you’ve protected your positions.
Solution: Plan Your Risk
Decide on your risk parameters before you enter a trade, and then—this is key—stick to them.
Your future self will thank you.
EGO NO GO #4: Dismiss Market Analysis: Gut Feelings vs. Hard Data
You also need to check the weather.
By weather I mean, look at the news events coming out for the day and week.
Is it NFP (Non Farm Payrolls)? – The day when you DON’T day trade.
Is it CPI (Consumer Price Index)? – The day you DON’T Trade
Is it FOMC where the federal committee talks and causes volatility?
Solution: Check the news events and be vigilant.
EGO NO GO #5: Blame Everything: The Pointless Game
When trades go south.
They look to blame.
They point fingers to their mentors, their strategy, themselves.
There is NO blame game with the markets.
If you followed your rules, strategies, risk to reward and everything else – You did the best of your ability for that trade.
Solution: Own your trade to Hone your trade It
Accept responsibility, learn from your mistakes, and grow stronger. It’s the only way.
EGO NO GO #6: Fail to Adapt: Evolve or Be Left Behind
The market is a beast that’s always changing.
I always say adapt or die.
Feel the general market’s environment.
Know whether it’s in a favourable or unfavourable period.
Tweak your system to improve your metrics.
Change the markets by adding or removing ones that aren’t working.
Take ego out of the analysis.
Solution: Stay Sharp, Stay Updated
FINAL WORDS:
I’m sure you already feel less egotistical when it comes to trading. And that means, this article has done it’s job.
Whenever you feel ego creeping in, remember this article save it and store it.
In fact go through all the articles that resonate, print them and store them in a file.
It will be your guide to trading well!
Let’s sum up the ego tendencies and how to avoid them…
Avoid Overtrading: Less can be more.
No Revenge Trading: Act with strategy, not emotion.
Stick to Risk Management: It’s your safety net.
Conduct Market Analysis: Never trade uninformed.
Stop the Blame: Learn and move forward.
Adapt to the Market: Evolve your strategy to stay relevant.
Recommendations for new tradersNo matter the size of your deposit, begin trading with small amounts: $10, $100. As you gain experience, you can increase your deposit, but be ready to lose it. This will help you understand market participant behavior.
- Trade only with funds you can afford to lose; losing them shouldn't affect your quality of life.
- Don't rush to leave your main job; let trading be a hobby initially. It might turn into something more over time, but that's not guaranteed.
- More trades don't equal more profit. Sometimes fewer trades can be more profitable than many daily trades. Without experience, it can be challenging to know when to stay out of the market.
- Traders spend 90% of their time analyzing instruments and circumstances. Forget rushing; opportunities appear and disappear daily. Learn to wait. Begin with paper trading to get accustomed to the process.
- Note the time spent as well as profit or loss. Regardless of your preferred timeframes, start with longer ones like monthly, weekly, and daily charts for an overall view.
- Markets are cyclical; they don't rise or fall indefinitely. Reversals often happen unexpectedly. Base decisions on a well-thought-out plan, not emotions.
- Develop your own strategy based on your data and temperament. Don't ask others where to buy or sell; they don't know. If an instrument has risen several hundred percent from the bottom, entering without stops is irrational.
- If it has gained several thousand percent, avoid entering without waiting for a significant pullback. Even if indicators suggest a specific direction, always consider a 1% chance of the opposite happening to avoid significant losses. Always manage risks.
- Regularly withdraw a portion of your profits. Understand why you're investing your time. Ideally, withdraw all your initial investment over time to make operating the deposit easier psychologically.
- There are no universal strategies. Your strategy should be proven but flexible to market conditions. What works in a rising market may not work in a falling one, and vice versa. Adapt quickly and manage risks skillfully to make money.
Seeing others make profitable trades can lead to envyFor new traders, market decisions are often driven by emotions like fear and greed, rather than well-established trading strategies. While much has been written about this, there are other significant factors that influence traders' decisions:
Social Pressure: Traders often make trades based on the opinions and actions of others, rather than their own strategies and the real market situation. This social influence can come from chat rooms, online communities, or social media, where opinions are frequently voiced by other inexperienced traders.
Envy: Seeing others make profitable trades can lead to envy. This emotion pushes traders to make impulsive decisions, such as entering trades without proper analysis, hoping to replicate others' successes. Instead of waiting for their own signals, they act on impulse and lose control.
Common Mistakes Among New Traders:
Reacting to News and Opinions: Rather than following their own trading vehicle (strategy), novice traders often react to news or opinions from others. This leads to decisions that are not grounded in their own analysis.
Overactivity: Many mistakes stem from the feeling of needing to always be active in the market. New traders see others trading successfully and feel pressured to do the same. This can result in excessive trading and taking positions without proper signals.
Paralysis from Fear: When a genuinely good opportunity arises, traders who have been overly active may be too paralyzed by fear to act. Their energy is wasted on meaningless transactions, and negative emotions cloud their judgment.
Impact on Trading Performance:
Wasted Energy: Excessive, impulsive transactions deplete a trader’s energy and focus, leading to poor decision-making when real opportunities present themselves.
Negative Emotions: Constantly reacting to others and not following a personal strategy can result in frustration and dissatisfaction, which negatively impact self-esteem and confidence in one’s trading vehicle.
Loss of Control: Acting out of fear, greed, social pressure, or envy leads to a loss of control over trading decisions, causing more losses and missed opportunities.
Key Takeaways for New Traders:
Develop a Personal Strategy: Rely on your own trading plan and analysis.
Stay Patient: Wait for your entries and avoid impulsive trading.
Manage Emotions: Keep emotions like fear, greed, envy, and social pressure in check to maintain control over your trading decisions.
Focus on Long-Term Success: Avoid excessive trading and focus on making informed, strategic trades.
By being aware of these psychological factors and actively working to mitigate their impact, new traders can make more informed and rational trading decisions.
✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes.
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Mastering the Trader Skillset: Building a Strong PyramidIn the dynamic world of trading, success hinges on a robust skillset. Imagine this skillset as a pyramid, with each level representing a crucial component that traders must master to achieve consistent profitability. At the base, we have Technical Analysis, followed by Risk Management in the middle, and Discipline and Patience at the top. Additionally, Automation plays a pivotal role, integrating seamlessly across the entire structure. Let's delve into each of these elements and understand how they contribute to a trader's success.
The Base: Technical Analysis
The foundation of the trader's pyramid is Technical Analysis. This involves studying price charts, patterns, and various indicators to make informed trading decisions. Mastering technical analysis is crucial because it:
1. Identifies Trends and Patterns: Recognizing market trends and chart patterns allows traders to predict future price movements, making it easier to enter and exit trades at optimal times.
2. Utilizes Indicators: Tools like moving averages, RSI (Relative Strength Index), MACD (Moving Average Convergence Divergence), and Bollinger Bands provide insights into market momentum, volatility, and potential reversals.
3. Supports Strategy Development: Technical analysis forms the basis for creating and refining trading strategies, whether they are short-term or long-term.
The Middle: Risk Management
Sitting at the middle of the pyramid is Risk Management, a critical component that ensures long-term survival in the market. Effective risk management includes:
1. Position Sizin: Determining the appropriate size for each trade to limit exposure and avoid catastrophic losses.
2. Stop-Loss Orders: Implementing stop-loss orders to automatically close losing positions before they can significantly impact the trading account.
3. Diversification: Spreading investments across different assets or markets to reduce risk.
By prioritizing risk management, traders can protect their capital and remain in the game, even during periods of market volatility.
The Peak: Discipline and Patience
At the pinnacle of the pyramid are Discipline and Patience, the traits that distinguish successful traders from the rest. These qualities are essential for:
1. Adhering to Strategies: Sticking to predetermined trading plans and strategies, even in the face of emotional challenges and market noise.
2. Avoiding Overtrading: Exercising restraint to prevent impulsive decisions and overtrading, which can erode profits and increase risk.
3. Waiting for the Right Opportunities: Having the patience to wait for high-probability setups, rather than forcing trades.
Discipline and patience ensure that traders remain consistent and rational, avoiding the pitfalls of emotional trading.
The Integrative Element: Automation
Automation in trading acts as an integrative element that enhances every level of the pyramid. It involves using algorithms and trading bots to execute trades based on predefined criteria. Automation benefits traders by:
1. Eliminating Emotional Bias: Automated systems follow strategies without being influenced by fear or greed, ensuring objective decision-making.
2. Enhancing Efficiency: Automation can analyze vast amounts of data quickly and execute trades with precision, improving overall trading efficiency.
3. Consistence: Automated strategies maintain consistency in trading, sticking to the plan without deviation.
By incorporating automation, traders can optimize their technical analysis, streamline risk management, and uphold discipline and patience.
The trader skillset pyramid provides a comprehensive framework for achieving trading success. Technical Analysis forms the sturdy base, enabling traders to understand market behavior and develop strategies. Risk Management, positioned in the middle, safeguards their capital and ensures longevity. Discipline and Patience, at the top, are the hallmarks of professional trading, allowing traders to execute their plans effectively. Automation, interwoven throughout, enhances each component, providing a modern edge in the fast-paced trading environment.
By mastering each level of this pyramid, traders can build a resilient and profitable trading career, equipped to navigate the complexities of financial markets with confidence.
Mastering Risk: Stop Loss in TradingTypes of Stop Loss
Money Stop
Definition: A trader sets a fixed amount they are willing to lose on a trade, for example, £20.
Issue: This approach often leads to larger losses because it doesn’t align with market movements.
Advice: Avoid using the money stop.
Time Stop
Definition: Used mainly by scalpers, this involves closing a trade if it doesn't move in the expected direction within a set time frame (e.g., 4-8 bars).
Key Point: It requires discipline to adhere to the set time limit.
Advice: Suitable for scalpers.
Technical Stop Loss
Definition: Based on price movements and market structure, this is the most effective stop loss for technical traders.
Types:
Initial Stop Loss: Set at the entry of a new position, usually at a momentum high or low. The trade remains valid as long as the price doesn't reach this point.
Technical Trailing Stop: Used to protect gains on a winning trade. As the price moves in your favor, adjust the stop to a new structure point that, if reached, invalidates the trade.
27 Articles That Helps You to Avoid MONEYGONE PatternAre you tired of feeling like your money disappears into thin air? Say goodbye to the ' MONEYGONE ' pattern with our collection of 27 articles packed with tips and tricks to keep your finances on track.
In #VestindaTips we've put together this big guide all about how prices move and patterns in trading.
Whether you're new to trading or you've been doing it for a while, we want to give you helpful info to understand the ups and downs of the financial world. So, let's learn together and get ready to navigate those tricky markets!
Dynamics of Bull Market Cycles:
Understanding the ebbs and flows of bull markets is essential for capitalizing on upward trends. Dive into the intricacies of bull market cycles to identify opportunities and optimize your trading strategies.
Dynamics of Bear Market Cycles:
Conversely, bear markets present unique challenges and opportunities.
Explore the dynamics of bear market cycles to mitigate risks and maximize profits during downward trends.
Diamond Pattern: How-To Guide:
Uncover the secrets of the diamond pattern and learn how to recognize and interpret this rare yet powerful formation in trading.
Drawing Trendlines: A Practical Guide:
Master the art of drawing trendlines with precision and accuracy. This practical guide offers valuable tips and techniques to identify trends and make informed trading decisions.
Think You Know Candlestick Patterns?
Delve deeper into the realm of candlestick patterns and refine your understanding of these fundamental tools for technical analysis.
What is a Bearish Pennant Pattern?
Decode the mysteries of the bearish pennant pattern and discover how to spot this bearish continuation formation in the market.
Market Gaps: Strategies, Types, Fills, and Crypto:
Explore the phenomenon of market gaps and uncover effective strategies for navigating these price discontinuities across various asset classes, including cryptocurrencies.
Three White Soldiers:
Learn to recognize and interpret the significance of the three white soldiers pattern, a bullish reversal formation that signals a potential shift in market sentiment.
Bullish Pennant Pattern:
Gain insights into the bullish pennant pattern and harness its predictive power to identify lucrative trading opportunities in the market.
How to Island Reversal Pattern:
Navigate the waters of the island reversal pattern and understand its implications for trend reversal and market sentiment.
The Triangles: With Real-Life Examples:
Explore the various types of triangle patterns, including symmetrical, ascending, and descending triangles, with real-life examples illustrating their significance in technical analysis.
Cracking the Short Squeeze:
Demystify the phenomenon of short squeezes and learn how to capitalize on these explosive market dynamics for potentially substantial gains.
Hammer of Trend Change:
Discover the hammer candlestick pattern and its role as a potent signal for trend reversal, providing traders with valuable insights into market dynamics.
Basics of Elliott Wave Theory:
Unlock the foundational principles of Elliott Wave Theory and leverage this powerful tool for predicting market cycles and trends.
The Core Confirmations Every Trader Must Know:
Equip yourself with essential trading confirmations to validate your analysis and make well-informed trading decisions with confidence.
What are Tweezer Top and Bottom Patterns?
Unravel the mysteries of tweezer top and bottom patterns and learn how to interpret these candlestick formations for identifying potential trend reversals.
How to Altseason Cycle || Cheat Sheet || Bitcoin Dominance:
Navigate the altseason cycle with ease using this comprehensive cheat sheet, complete with insights into Bitcoin dominance and its implications for the broader cryptocurrency market.
Rising and Falling Wedges Explained:
Understand the characteristics of rising and falling wedges and learn how to effectively trade these patterns for profit.
How to Head and Shoulders:
Master the head and shoulders pattern, a classic reversal formation that can provide valuable insights into market trends and potential trend reversals.
Double Top vs. Double Bottom Patterns:
Distinguish between double top and double bottom patterns and learn how to identify and trade these reversal formations effectively.
Triple Top vs. Triple Bottom Patterns:
Explore the nuances of triple top and triple bottom patterns and their implications for market trends and price action.
DIVERGENCE CHEATSHEET:
Decode divergence patterns with this comprehensive cheat sheet, providing invaluable insights into market dynamics and potential trend reversals.
Supply and Demand Zones: Buying Low, Selling High:
Master the art of identifying supply and demand zones to capitalize on optimal entry and exit points in the market.
Ascending Channels: The Guide:
Navigate ascending channels with confidence using this comprehensive guide, complete with strategies for trading within these bullish formations.
Wyckoff Accumulation & Distribution:
Unlock the secrets of Wyckoff accumulation and distribution phases and learn how to spot these market manipulation tactics for profitable trading opportunities.
The Cup and Handle Pattern in Trading:
Discover the cup and handle pattern, a classic bullish continuation formation that can signal significant uptrends in the market.
The ABCD Pattern: from A to D:
Explore the ABCD pattern and its role in identifying potential entry and exit points in the market, providing traders with a structured approach to trading.
With all the cool stuff you've learned from our guide on price action and patterns, you'll be ready to tackle the twists and turns of the financial world like a pro! It doesn't matter if you're just starting out or you've been at it for a while, getting the hang of these basic ideas is super important for making good trades and winning big. So, go ahead and dive in! Happy trading, everyone!
Top-5 tips for Top-Down Multiple Time Frame Analysis Trading
I am trading multiple time frame analysis for many years. After reviewing trading ideas from various traders on Tradingview, I noticed that many traders are applying that incorrectly
In this article, I will share with you 5 essential tips , that will help you improve your multiple time frame analysis and top-down trading.
The Order of Analysis Matters
Multiple time frame analysis is also called top-down analysis for a reason. When you trade with that, you should strictly start your analysis with higher time frames and then dive lower, investigating shorter-term time frames.
Unfortunately, most of the traders do the opposite. They start from a lower time frame and finish on a higher one.
Above are 3 time frames of EURGBP pair: daily, 4h, 1h.
To execute multiple time frames analysis properly, start with a daily, then check a 4h and only then the hourly time frame.
Limit the Number of Time Frames
Executing multiple time frame analysis, many traders analyse a lot of time frames.
They may start from a weekly and finish on 5 minute time frame, going through 5-8 time frames.
Remember that is it completely wrong. For execution of a multiple time frame analysis, it is more than enough to analyse 3 or even 2 time frames. Adding more time frames will overwhelm your analysis and make it too complex.
Analyse Particular Time Frames
Your multiple time frame analysis should be consistent and rule-based. It means that you should strictly define the time frames that you analyse.
For example, for day trading, my main trading time frames are daily, 4h, 1h. I consistently analyse ONLY these trading time frames and I look for day trades only analysing this combination of time frames.
Higher is the time frame, stronger the signal in provides
Trading with multiple time frame analysis, very often you will encounter controversial signals: you may see a very bullish pattern on a daily and a very bearish confirmation on 30 minutes time frame.
Always remember that the higher time frames confirmations are always stronger, and their accuracy is probability is always higher.
Above there are 2 patterns:
a head and shoulders pattern on a daily time frame with a confirmed neckline breakout, and an inverted head and shoulders pattern on a 4h time frame with a confirmed neckline breakout.
2 patterns give 2 controversial signals:
the pattern on a daily is very bullish and the pattern on a 4h is very bearish.
The signal on a daily time frame will be always stronger ,
so it is reasonable to be on a bearish side here.
You can see that the price dropped after a retest of a neckline of a head and shoulders on a daily, completely neglecting a bullish pattern on a 4H.
Each Time Frame Should Have Its Purpose
You should analyse any particular time frame for a reason.
You should know exactly what you are looking for there and what is the purpose of your analysis.
For example, for day trading, I analyse 3 time frames.
On a daily, I analyse the market trend and key levels.
On a 4H time frame, I analyse candlesticks.
On an hourly time frame, I look for a price action pattern as a confirmation.
On GBPAUD on a daily, I see a test of a key horizontal resistance.
On a 4H time frame, the price formed a doji candle.
On an hourly, I spotted a double top, giving me a bearish confirmation.
These trading tips will increase the accuracy of your multiple time frame analysis. Study them carefully and adopt them in your trading.
❤️Please, support my work with like, thank you!❤️
Dynamics of Bull Market CyclesBull markets are the epitome of investor optimism and economic growth, characterized by rising asset prices and increasing investor confidence. However, within every bull market, there lies a cyclical pattern composed of distinct phases: Discovery, Momentum, and Blow-off. Understanding these phases is crucial for investors to navigate the market efficiently and capitalize on opportunities while mitigating risks.
🟣 Discovery Phase:
👉 Accumulation: During the accumulation phase, institutional investors and smart money recognize undervalued assets and begin quietly accumulating positions. This often occurs when the broader market sentiment is still pessimistic or uncertain, presenting attractive buying opportunities.
👉 Trend Emergence: As accumulation continues, subtle shifts in market dynamics become apparent. Prices begin to exhibit higher highs and higher lows, indicating the emergence of an uptrend. Technical indicators such as moving averages may start to show bullish crossovers, further confirming the trend.
🟣 Momentum Phase:
👉 Shake-out: The shake-out phase is characterized by short-term price declines or corrections that test investor resolve. Weak-handed investors, who bought near the end of the accumulation phase or are driven by fear, panic sell their positions. This phase often creates volatility and uncertainty but also offers opportunities for long-term investors to accumulate quality assets at discounted prices.
👉 Momentum Building: Following the shake-out, momentum begins to build as the broader market recognizes the strength of the uptrend. More investors start participating in the rally, driving prices higher. Positive news catalysts and strong earnings reports further fuel the momentum, attracting even more investors.
👉 First Sentiment: As the bull market gains momentum, investor sentiment shifts from cautious optimism to moderate confidence. Market participants start to believe in the sustainability of the uptrend, leading to increased buying activity. However, skepticism may still linger, especially among contrarian investors who remain wary of potential overvaluation.
🟣 Blow-off Phase:
👉 Renewed Optimism: In the blow-off phase, optimism reignites as investors regain confidence in the market's upward trajectory. Corrections or pullbacks are viewed as buying opportunities rather than signals of impending reversal. Institutional investors and retail traders alike re-enter the market, driving prices to new highs.
👉 FOMO (Fear of Missing Out): Fear of Missing Out becomes prevalent as investors fear being left behind in the rally. Social media, financial news outlets, and word-of-mouth recommendations amplify the sense of urgency to buy, further fueling price appreciation. This FOMO-driven buying frenzy can lead to exaggerated price moves and irrational exuberance.
👉 Euphoria: Euphoria marks the peak of the bull market cycle. Investors become irrationally exuberant, believing that the current uptrend will continue indefinitely. Risk management takes a backseat as greed overrides caution. Valuation metrics may reach extreme levels, signaling frothiness in the market.
Understanding the cyclical nature of bull market cycles is essential for investors to navigate the market successfully. By recognizing the distinct phases of Discovery, Momentum, and Blow-off, investors can make informed decisions, capitalize on opportunities, and protect their portfolios from potential downturns. While bull markets are synonymous with optimism and prosperity, prudent risk management and a keen awareness of market dynamics are critical for long-term investment success.
Trading Tips - 5 Simple tricks1) Look for trend - Trend is Friend
2) Enter small size position - Start small
3) Ride the trend - Up or Down
4) Set your exit plan - Take profits or Cut loss
5) Higher highs & Lower lows - Can be your exit strategy
Timeframe Tango: Finding Your Trading RhythmWelcome to the thrilling world of timeframes—a place where every minute counts and every candlestick tells a story. You've probably asked yourself a million times, "What's the best timeframe to trade?" Well, buckle up because we're about to dive deep into the mesmerizing world of timeframes and trading strategies!
Picture this: timeframes are like puzzle pieces. Lower timeframes, such as the 100 or 500-piece puzzles, are intricate and require patience. Think of them as the fast and furious lanes of trading where every tick matters. Conversely, higher timeframes resemble those 10 or 20-piece puzzles—quicker to solve and offer a broader market perspective.
Now, let's talk strategy. It's all about how fast and efficiently you piece those puzzles together. Whether crafting your unique strategy or borrowing a page from the pros, the goal remains: wait for the market to paint your perfect setup.
But here's the kicker: you've got to be strategic with your timeframes. Let's break it down with some juicy details!
Imagine you're a 9-5 warrior or a student hustling through classes. Your time is precious. So, let's talk hours. How many trade opportunities can you snag in an hour?
If you thrive on adrenaline and lightning-fast decisions, the 1- and 5-minute timeframes might be your playground. You're in for a wild ride with 60 to 12 candlesticks printed each hour! Scalping and day trading become your middle names as you seize opportunities left and right. When analyzed correctly, you could see 1-3 opportunities within an hour.
But if you've got more wiggle room in your schedule, let's talk swing trading. Picture the 15-minute to minutes—a sweet spot for those seeking a balance between action and analysis. With 4 and 2 candlesticks printed each hour, you've got time to breathe and plan your moves.
Now, let's zoom out a bit. Say hello to the 1 and 4-hour timeframes—the realm of short-term swing trading. Here, you're not watching the clock; you're watching the trend unfold over hours and days. With 24 to 6 candlesticks printed in a day, you've got ample opportunities to spot those juicy setups. Think 3-4 trade opportunities a week on the 1-hour timeframe and 1-2 on the 4-hour timeframe. It's the sweet spot between day trading and short-swing trading!
Finally, we arrive at the granddaddy of timeframes—the daily chart. Here, we're talking about long-term swings and big-picture analysis. With three to four great opportunities a month, you have time to breathe, plan, and execute precisely. It's like watching the market paint its masterpiece, one candlestick at a time.
So, what's your trading style? Are you a scalping sensation, a swing trading maverick, or a long-term visionary? Find the timeframe that fits your schedule like a glove, and let's embark on this epic trading journey together!
Catch you on the charts,
Shaquan
TradingView is Everything You Need to Start Trading
If you are planning to start Forex and Gold trading, I prepared for you a list of 6 essential things that you will need for a successful start.
1 - Charting Software
Obviously, if you want to trade, you should analyze the charts.
Most of the beginners apply metatrader 4 or 5 for that.
Even though meta trader is good as a trading terminal, from charting perspective it is already outdated.
My recommendation to you is to apply TradingView for chart analysis.
It is very user-friendly, it offers all popular trading instruments, and it has a wonderful community where you can check ideas and forecasts of experienced traders.
2 - Set up Your Watch List
There are hundreds of different trading instruments for Forex traders:
major and minor pairs, exotic pairs, cfds on gold, silver, oil, etc...
Your task as a beginner is to focus on a very narrow list of trading assets.
Build a trading list of maximum 8 instruments , learn to trade them and expand the list as you mature in trading.
Here is the example of a watch list for beginners: 7 major USD forex pairs.
3 - Make a Trading Plan
There are hundreds of different trading strategies and techniques in Forex trading. And obviously, you can not trade them all.
Pick a strategy that you like, that makes sense to you.
Focus on that and practice, practice, practice.
4 - Economic Calendar
Even if you decide to trade only technical analysis, you should not forget to check fundamentals in the economic calendar and learn their impact on the markets.
You need an economic calendar for that.
There is an economic calendar on TradingView, it is very reliable and you can find the important news there
Pay attention to important 3-star news, and preferably don't trade ahead of the releases while you are learning.
5 - Demo Account
Trading education is a long journey.
While you are studying trading basics and trying different trading strategies, you should strictly trade on a demo account.
I recommend paper trading on TradingView, so that you could have the analysis and the trades on the same chart.
6 - Position Size Calculator
You should learn to calculate lot size for your trades from the beginning. You should always know how much is your risk per trade. For that reason, placing the trades on a demo account, you should measure lot sizes for your trades.
If you demo trade on TradingView, it offers a default position size calculator when you can set the lot size according to a desired risk.
Good luck in your journey and be prepared to work hard!
