Skill VS Luck - Becoming a Consistently Profitable TraderHi traders, here we are on another workshop. Today I'll be sharing some of the points on differentiating skill or luck trading. Majority of the traders have absolutely no clue on are they doing the right things or not? Here's a few key points:
Skill
1. Winners and Losers
- If you are a skilled trader, you're someone who understand the probable and possible in trading. There's no guarantee on any single trade whether it's a winner or loser. Remember, the short-term outcome in trading is completely random, what's more important is to come out being profitable in the long-term. Never judge your performance based on the short-term outcome, think long-term.
2. Good Risk Management
- Good traders always have effective risk management in place. Not any single trade is able cause damage on their capital, and they truly understand how to detach themselves from negative emotions.
3. Repeatable
- Good traders have a repeatable process, that allows them to tackle the market in the same way every single day.
4. Proper Planning
- Good traders rarely deviate from their initial plan, as they understand that a planned trade is a good trade regardless of the outcome. Any trade taken out of impulsive behaviour, is considered a bad trade regardless of the outcome.
5. Consistency
- Good traders have a set of routine and action plan. To achieve consistent results, you must have a consistent performance.
6. Execution
- Good traders have little to no hesitation when it comes to executing their trades. They execute their plan without second guessing or doubt.
Luck
1. No loser
- Most gurus' or lucky traders would promote themselves having 80% - 90% strike rates, which could never happen in reality. The only way you can achieve such a high win rate is to have a Profit Factor of less than 1. In fact, most of the best traders out there have a strike rate of 40-50%.
2. Excessive Risk Exposure
- Losing traders have no idea how to isolate themselves from a bad state of mind. They're constantly putting up a lot of risk on the table regardless of having no clue on what's going on in the markets. The sense of urgency is rushing them on taking unnecessary risk.
3. Unrepeatable
- Losing traders constantly take trades out of their trading plan, which is not duplicable. If you're taking trades that is unrepeatable, most likely it's a lucky trade and you shouldn't be happy about it even if it turns out to be a winning position.
4. Impulsive Behaviour
- Losing traders deviate from their initial plan due to uncontrolled emotion. They're taking trades they're not supposed to take, then regrets later on.
5. No routine
- Losing traders have no daily routine. They're always blind firing all over any 'seems' profitable position. Most of them possess of potential over-trading habits.
6. Hope & Praying
- Losing traders are constantly looking for the 'best trade' that'd give them an enormous return. Most of them have no trading plan and proper Risk Management in place, causing them to experience an emotional rollercoaster on any particular position when it gets out of hand.
"Chains of habit are too light to be felt until they are too heavy to be broken." - Warren Buffett
Let me know in the comment below what's your worst trading nightmare!
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EOS building a nice base to start the ramp higherEOSUSD is set to play catchup with other cryptocurrency pairs such as Bitcoin, Ethereum and Litecoin as price action builds a nice base. I expect that buyers will get more active with a move up through the 5.050 zone so watching to see how sellers react up at the level. The stage is set...just watching for the action to kick off.
JD.com Analysis 28.10.2021Hello Traders,
welcome to this free and educational analysis.
I am going to explain where I think this asset is going to go over the next few days and weeks and where I would look for trading opportunities.
If you have any questions or suggestions which asset I should analyse tomorrow, please leave a comment below.
If you enjoyed this analysis, I would definitely appreciate it, if you smash that like button.
Thank you for watching and I will see you tomorrow!
Stocks To Watch This WeekThe Market's longer term uptrend still intact. These names have shown good relative strength and accumulation volume and most are in the growth sector. This may give good risk/reward entries on some of the best names. Some of these charts still need to confirm their price action. This video is my watchlist. Most of these names are at or near all time highs or multi year highs. There are 20 total stocks on this list Many of these have IPO'd in the last few years and still have a growth story ahead of them. Know your time frame and risk tolerance. Know your earnings dates! I go through these quickly so grab a pencil and paper and jot down the names that look interesting to you and then make the trade your own. Good Luck!
Top 10 Cryptocurrencies & Their Real World UsesIn this video we explain the real world use cases of each of the top 10 cryptocurrencies. A lot of focus in crypto is focused on the price and the volatility of each coin without many people necessary understanding what their purposes are.
Bitcoin (BTC)
Digital Gold, a store of wealth and protection against inflation… this is because there’s a limited supply of BTC (21 Million) that will ever be mined. It’s supply cannot be inflated like FIAT currencies (Dollar, Pound, Euro etc) can simply be printed.
Collateral in DeFi, in many DeFi (Decentralised Finance) Bitcoin is used as collateral for you to borrow against the value of in return for a cryptocurrency loan for example. We will explain DeFi in a little more detail later.
Banking the unbanked, in many struggling economies (El Salvador for example) Bitcoin is a useful way for communities to gain access to banking facilities. While in many of those regions economies are still largely cash-driven and people cannot afford to pay for transportation to visit banks for registration, the number of those who have access to or own mobile phones is increasing. Thus, using digital wallets to transfer Bitcoin independent of traditional banks may provide a viable alternative for people without a bank account to participate in finance and to create a store of value.
Ethereum (ETH)
Smart contracts, In essence, smart contracts are created to automatically execute and complete processes, such as a payment process, in digitised form. This is the key to Ethereum’s success and its core use case. It enables developers to create complex applications powered by Ethereum’s platform.
DeFi applications, The largest category of smart contracts on Ethereum’s platform is in the form of Decentralised Finance applications.
With DeFi, you can do most of the things that banks support — earn interest, borrow, lend, buy insurance, trade derivatives, trade assets, and more — but it’s faster and doesn’t require paperwork or a third party. As with crypto generally, DeFi is global, peer-to-peer (meaning directly between two people, not routed through a centralized system), and open to all.
NFTs, an emerging use case for Ethereum is in the form of payment for NFTs… you will find that most NFT’s prices are denominated in ETH. NFTs for anyone that isn’t aware are essentially digital art that its authenticity is confirmed in blockchain data.
Think of it as a version of the Twitter blue tick for limited edition digital art.
Cardano (ADA)
Store of Value & Smart Contracts - The Cardano coin can be used as a transfer of value in a similar way that cash is currently used. This is not very different from other cryptocurrencies such as Ethereum and Bitcoin, but ADA has other uses as well.
One of the core principles of Cardano is its PoS blockchain protocol where ADA is staked to the blockchain to successfully verify transactions on the blockchain. This is where Cardano crypto comes in handy. Those who stake their ADA to the blockchain are rewarded for their efforts with more Cardano crypto in return. This staking system helps maintain security throughout the blockchain.
There is also the use of ADA in voting. In Cardano, unlike other blockchain projects, it is not miners who vote and decide on changes to the protocol, it is token holders. Therefore, when a new change or development is proposed to the Cardano blockchain, Cardano crypto holders use their ADA to vote on these proposals. This way, everyone who owns the cryptocurrency has a say in its development.
ADA also can be used to power the smart contract platform on the Cardano blockchain. Developers utilise ADA to create smart contracts and applications that run on the secure, decentralised Cardano blockchain.
In the case of running smart contracts it is cheaper in transaction fees than Ethereum.
Tether (USDT)
Stablecoin - Backed by US dollars and value is pegged to always be at-or very close to £1 per 1 USDT
Transferring Crypto - Lots of people will use Tether as a middleman when transferring money from one cryptocurrency to another without paying the fees associated either between each crypto or back and forth into Fiat currencies.
Generating a Yield - Some tether users also simply hold their funds in Tether because it generates a higher yield or interest rate than their money would in a bank for example.
Binance Coin (BNB)
Binance Coin is the cryptocurrency issued by the Binance exchange and trades with the BNB symbol.
BNB was initially based on the Ethereum network but is now the native currency of Binance's own blockchain, the Binance chain.
Every quarter, Binance uses one-fifth of its profits to repurchase and permanently destroy, or "burn," Binance coins held in its treasury.
Binance was created as a utility token for discounted trading fees in 2017, but its uses have expanded to numerous applications, including payments for transaction fees (on the Binance Chain), travel bookings, entertainment, online services, and financial services.
Ripple (XRP)
Very quick & cheap cross border payments
,
The primary use case for XRP is intended to be for transfer of other currencies (or indeed commodities or assets such as gold or oil) over the Ripple network. Each time a money (or asset) transferring organisation such as a bank uses the network to conduct a transfer and settlement, the cost is deducted in a small amount of XRP.
Cross-border payments between banks and organisations currently run on a system called SWIFT… a system created in 1973. This is essentially what Ripple and its coin XRP could replace with a much quicker and cheaper system.
Solana (SOL)
Smart Contracts platform.
Much in the same way that both Ethereum & Cardano is used on a day to day basis as developers who make applications on the Solana blockchain pay SOL coins for the processing / transaction fees.
Large numbers of NFTs are also available on the Solana blockchain.
Polkadot (DOT)
Interoperability - Allow different blockchains to talk to each other and share data / features between each other. This is useful for developers when making new blockchains, as they are able to use sections of features from different chains without the need to create them from scratch each time.
Unlimited Supply - Unlike most other cryptocurrencies, DOT isn’t limited in supply. This is designed to incentivise the network and dynamically adjust according to participation rates of users.
Dogecoin (DOGE)
Meme coin which was originally created as a joke or parody of the crypto world.
Now however has gained massive popularity and even is considered for payments as a real world use. This is still to be widely accepted however.
USDC (USDC)
Stablecoin, backed by US dollars and value is pegged to always be at-or very close to £1 per 1 USDT. Not as popular or widely used by the market than Tether.
Apple Analysis 14.10.2021Hello Traders,
welcome to this free and educational analysis.
I am going to explain where I think this asset is going to go over the next days/weeks and where I would look for trading opportunities.
If you have any questions or suggestions which asset I should analyse tomorrow, please leave a comment below.
I would also appreciate, if you would smash that like button and help me to create more free analysis like that.
Thank you for watching and I will see you tomorrow!
When/How to move SL to BE and to profit in a running trade ?Hello everyone:
Today I want to discuss a topic in Risk Management, specifically on when and how to move your STOP LOSS to BREAKEVEN or in PROFIT when you have a running profit trade/position.
In an impulsive phase of the market, we want to make sure to protect our entry as well as secure profits.
In this example of EURUSD, I managed to get 2 entries in, and manage it to my best ability and secure profits
Trade close down for +7.9% profit
Original Trade Forecast and Analysis:
This is a topic that will have various answers across traders, as this is certainly up to each individual trader’s strategy, style, and management approach.
So understand there is no right or wrong, “holy grail” kind of decision.
It's up to you individually as a trader. I will share my management, and why I choose to go with these types of approaches, and you can certainly use them to your advantage to tweak/modify them to fit your strategy.
Few things to keep in minds are:
1. Moving the SL to BE or/and in profit is a way to protect your entry, as well as secure profit.
2. Sometimes moving the SL too early may “choke” the price, and you can get stopped out for BE or small profit. Then watch the price take off in your desired direction, which can create negative emotion.
3. Whereas sometimes if you don't move SL to BE or in profit, you can watch a trade that hits 3:1 RR or more, end up reversing down, passing your entry point and to your actual SL of -1%, which can also create negative emotion.
4. No perfect scenario or management when it comes to the aspect of trading, as every trade is unique, and different outcomes may happen, since the market itself is not perfect, and can do whatever it wants to do.
Now, I will explain my own management when it comes to moving SL to BE or/and in profit.
Certainly this is NOT the only way, nor it will be the best way, but over the years of backtesting & chartwork have given me reassurance on these types of management ways.
I will then show some real live examples on the trades that I closed down, and how I manage them as well.
CADJPY -
Original Trade Forecast and Analysis:
GBPJPY -
Original Trade Forecast and Analysis:
CHFJPY -
Original Trade Forecast and Analysis:
NASDAQ -
AUDNZD -
Original Trade Forecast and Analysis:
First, a general rule of thumb for me. IF the price has hit about 1:1 RR or so, and has broken past the previous recent lows,
I will move my SL to BE. There is no exception in this rule.
Again, I explained earlier that sometimes this will help you to protect your entry when price reverses, and sometimes it will choke the price.
In this case, I would rather take a BE first, and re-look for entry again in the same position, as long as the bias and the price action is still valid on both the higher time frame and lower time frame.
Second, once the entry is in some profit, say 2:1 or higher, I generally will move the SL up to about +0.5% profit or so.
Just want to secure a little profit while not choking the price entirely.
Third, once the entry is in 3:1 profit, then I will move my SL to +1% profit.
This is where I generally will decide whether I should take full profit here, or hold the trade for a mid-long term if the higher time frame has given me the bias.
Fourth, since the trade has already been in 3:1 profit or higher, generally we can expect a continuation correction to form now after the impulse phase.
If it's a smaller correction and price isn't reversing up sharply right away, I will move my SL to about +1.5% profit, set my alert above the continuation correction and observe the development of the correction.
This is generally a point where I can decide to hold the trade longer, or if it reverses up from the continuation correction, then exit the trade for profit.
Fifth, if we start to see a possible reversal development, then I will move down my SL to the recent swing highs/lows,
or just above the reversal correctional structure, and will let the trade tag me out for profit if it reverses.
Any questions, comments or feedback welcome to let me know :)
If you enjoy these contents, and the educational lessons are helpful, please press like, subscribe and follow for more.
Jojo
TA 101: How to Draw Support and Resistance Lines Like a PRO!Support and resistance lines represent a concentration of demand and supply sufficient to halt a price move, at least temporarily.
They are risky areas to buy or sell for beginners, but give clues about reversal in conjunction with other indicators.
Steps to draw support or resistance line:
Find the correct time frame
Include 300 - 600 bars
Find major and minor support lines:
How to identify major support or resistance lines:
They connect more than 3 high or lows.
Increase with number of times they are tested
How far back in time they act as a major support or resistance line
The volume of exchange in those levels.
How to identify minor support or resistance lines:
Minor support/resistance lines include the previous lows and highs.
Other factors that are considered as support or resistance levels include:
Remember the rule of Round Numbers.
Remember the importance of moving averages.
Gaps are not always filled, sometimes they work as a support or resistance.
Fibonacci levels are also important areas for forming support or resistance lines.
General rules:
Lines with higher significance break only under higher volumes.
Once a line is broken it reverse its role. Support turns into a resistance and vice versa.
Stocks To Watch This WeekThe Market's longer term uptrend still intact. Interest rates are driving the market.. These names have shown good relative strength and accumulation volume and most are in the growth sector. This may give good risk/reward entries on some of the best names. Some of these charts still need to confirm their price action. This video is my watchlist. Most of these names are at or near all time highs or multi year highs. There are 21 total stocks on this list Many of these have IPO'd in the last few years and still have a growth story ahead of them. Know your time frame and risk tolerance. Know your earnings dates! I go through these quickly so grab a pencil and paper and jot down the names that look interesting to you and then make the trade your own. Good Luck!
How Does Implied Volatility Effect Premium Selling Strategies?In this video I address a question from a member of my social media. I wanted to answer this for them and educate others on why paying attention to Implied Volatility is important to your probability of success and your strategy returns if you are employing Premium Selling Strategies (Iron Condors, Credit Spreads, Straddles, Strangles, Butterflies, etc.)
How to Backtest a Trading StrategyBacktesting is a manual or systematic method of determining whether a trading strategy or trading setup has been profitable in the past.
A trader should backtest a strategy to help determine if a trading strategy is likely a waste of time and money, or if it shows promise and profitability in a variety of markets.
While you can get software that does systematic backtesting… we prefer manual backtesting as it can be carried out by any type of trader,
It is a key component in developing an effective trading strategy. There are infinite possibilities for strategies, and any slight alteration will change the results. This is why backtesting is important, as it shows whether certain parameters will work better than others.
What Do I Backtest?
The first thing to note is that you don’t need a full trading strategy in order to start backtesting.
For example I personally am always looking at new trading setups and candlestick formation and then backtesting them to see how effective they are.
You can test small parts of a trading strategy before putting them all together.
And of course you can and SHOULD backtest your whole trading strategy in a number of different trading situations.
How to Backtest
1) You need data to use in testing… if you are testing short term strategies on small timeframes then use at least a few weeks of trading data.
If you are using higher timeframes then you should be using years of trading data.
2. Define the strategy parameters. Entry conditions, exit conditions etc. Include as many “If X happens then I will do Y” scenarios as possible so that your strategy is repeatable.
Its essential to include risk management in these parameters too. So decide on if you are risking a percentage of your account equally on each trade, what is that percentage. If you are managing your risk in another method, clearly define it as something you are able to measure.
ALL OF THESE PARAMETERS ARE WHAT YOU ARE MEASURING AND TESTING. THESE ARE THE ELEMENTS THAT YOU CAN CHANGE TO SEE WHICH ARE MORE OR LESS PROFITABLE.
3. Use the TradingView rewind tool to go back in time and remove the predictive nature of knowing where the chart will be headed.
You could go back in time and look for trades from a year, a month or a week in the past, depending on how far back you wish to look.
4. Analyse price charts for entry and exit signals. This can be done until all trades on the chart up to the current time have been located and marked or written down
(be aware that it can take some time and be prepared that you are unlikely to be able to do all of this backtesting in one session… it could take you a few sessions of backtesting and recording the trade outcomes to fully test a strategy.)
5. Once you have competed this process, then you can start to total all of the trade results up to see how profitable or unprofitable your trading strategy / setup has been over time.
What Goes Wrong in Backtesting
Typically the pitfalls and the ways that people fail at backtesting are based around not being through enough.
That could mean that people haven’t included enough data in the backtest.
It could mean that they left too many unknowns in the strategy so when using it in a live trading situation the strategy isn’t usable or realistic.
Also it could be that people don’t back test for long enough to see if the strategy is profitable or not. If you only have a small sample size of trade then even a short losing or winning streak of trades would dramatically affect the results. You need enough trades to show winning streaks, losing streaks and all between so that you can be confident that your strategy will be able to withstand those situations in live trading.
Imagine for example in your backtesting your strategy didn’t lose more than 2 trades in a row but when you start using it in live trading you get 5 losses in a row. This is a situation that hasn’t been tested so could show a different result.
The goal is to backtest for long enough and through enough so that nothing in live trading hasn’t been tested previously. While it may not be possible to fully achieve this… it should be the goal and you should feel confident enough that you have done everything possible to ensure this is the case.
Classic Chart Patterns That You Need To KnowHello everyone, as we all know the market action discounts everything :)
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In today’s video, we are going to learn the Classic reversal and continuation chart patterns, How to identify them and when to enter a trade, and how to use stop loss and take profit with these patterns.
These patterns can be found in candlestick, bar and line charts.
Anyone who is interested in analyzing any market and trading in general should know these so if u don’t know them have no worries after you watch this video you will.
NOTE: you should always wait for confirmation when trading with these patterns. Confirmation in all of them is breaking the pattern and the market closing above or below it.
Chart Patterns are divided into 2 categories :
Reversal Patterns : They indicate a high probability that the existing trend has come to an end and that there is good chance of the trend reversing direction.
Continuation Patterns : They indicate a high probability that the existing trend is still active and that there is a good chance of the trend continuing in the same direction.
There are 2 types of these patterns :
Bearish : it means that the market is going down.
Bullish : It means that the market is going up
Let's Start with the Bearish Reversal Patterns :
1) Double Top (75.01%) :
The double top is one of the most common reversal price patterns. The double top is defined by two nearly equal highs with some space between the touches, The pattern is complete when price breaks below the swing low point created after the first high.
The pattern is considered a success when price covers the same distance following the breakout as the distance from the double high to the recent swing low point
2) Triple Top (79.33%) :
The triple top is defined by three nearly equal highs with some space between the touches, The pattern is complete when price breaks below the swing low points created between the highs.
The pattern is considered a success when price covers the same distance after the breakout as the distance from the triple high to the furthest swing low point
3) Head and Shoulder (83.04%) :
The head and shoulders patterns are statistically the most accurate of the price action patterns. The regular head and shoulders pattern is defined by two swing highs (the shoulders) with a higher high (the head) between them.
The two outer swing highs/lows don't have to be at the same price, but the closer they are to the same area the stronger the pattern generally becomes.
The pattern is complete when price breaks through the "neckline" created by the two swing low points.
4) Rising Wedge (73.03%) :
A wedge pattern represents a tightening price movement between the support and resistance lines.
the price is hypothesized to break through the support. This means the wedge is a reversal pattern as the breakout is opposite to the general trend.
Rising Wedge serves as a reversal if appeared during an uptrend .
Now let's Talk about the Bullish Reversal Chart patterns :
1) Double Bottom (78.55%) :
The double bottom is one of the most common reversal price patterns. The double bottom is created from two nearly equal lows, The pattern is complete when price breaks above the swing high point created by the first low.
The pattern is considered a success when price covers the same distance following the breakout as the distance from the double low to the recent swing high.
2) Triple Bottom (79.33%) :
he triple bottom is another variation of reversal price patterns. the triple bottom is created from three nearly equal lows, The pattern is complete when price breaks above the swing high points created between the lows.
The pattern is considered a success when price covers the same distance after the breakout as the distance from the triple low to furthest swing high.
3) Inverted Head and Shoulder (83.44%) :
The head and shoulders patterns are statistically the most accurate of the price action patterns, The inverted head and shoulders pattern has two swing lows with a lower low between them. The two outer swing lows don't have to be at the same price, but the closer they are to the same area the stronger the pattern generally becomes.
The pattern is complete when price breaks through the "neckline" created by the two swing high points .
4) Falling Wedge (72.88%) :
A wedge pattern represents a tightening price movement between the support and resistance lines.
the price is hypothesized to break through the support. This means the wedge is a reversal pattern as the breakout is opposite to the general trend.
Failing Wedge serves as a reversal if appeared during a downtrend
Let's move on now and start talking about Bearish Continuation patterns :
1) Rising Wedge (73.03%) :
The Rising Wedge in the downtrend indicates a continuation of the previous trend.
It is formed when the prices are making Higher Highs and Higher Lows compared to the previous price movements.
2) Bearish Flag (67.72%) :
The flag is a continuation pattern that can occur after a strong trending move. It consists of a strong bearish trending move followed by a rapid series of higher lows and higher highs, These patterns are small hesitations in strong trends.
The flag pattern appears as a small rectangle that is usually tilted against the prevailing trend in price. The best flag patterns have two features: 1) a very strong run in price (near vertical) prior to the setting up of the flag and 2) a tight flag that occurs right on the upper (or lower) edge of that run.
This pattern is considered successful when it breaks the lower trendline and then proceeds to cover the same distance as the prior trending move starting from the outer edge of the pattern.
3) Bearish Pennant (55.19%) :
The pennant often occurs in high momentum markets after a strong trending move, but the tight price formation that occurs can lead to breakouts against the preceding trend almost as often as we get continuation.
The slight difference in the price pattern formation between flags and pennants is an important distinction that can make a big difference in your trading results so it's well worth being aware of while watching the market develop during your trading day.
4) Descending Triangle (72.93%) :
The triangle pattern usually occurs in trends and acts as a continuation pattern. It's defined by a bearish trending move followed by two or more equal lows with a series of lower highs.
The pattern is complete when price breaks below the horizontal support area and the pattern is considered successful if price extends beyond the breakout point for at least the same distance as the pattern width
And finally we have the Bullish Continuation patterns :
1) Falling Wedge (72.88%) :
The Falling Wedge in the downtrend indicates a continuation of the previous trend.
It is formed when the prices are making lower Highs and lower Lows compared to the previous price movements.
2) Bullish Flag (67.13%) :
The flag is a continuation pattern that can occur after a strong trending move. It consists of a strong bullish trending move followed by a rapid series of lower highs and lower lows, These patterns are small hesitations in strong trends.
The flag pattern appears as a small rectangle that is usually tilted against the prevailing trend in price. The best flag patterns have two features: 1) a very strong run in price (near vertical) prior to the setting up of the flag and 2) a tight flag that occurs right on the upper (or lower) edge of that run.
This pattern is considered successful when it breaks the upper trendline and then proceeds to cover the same distance as the prior trending move starting from the outer edge of the pattern.
3) Bullish Pennant (54.87%) :
The pennant often occurs in high momentum markets after a strong trending move, but the tight price formation that occurs can lead to breakouts against the preceding trend almost as often as we get continuation.
The slight difference in the price pattern formation between flags and pennants is an important distinction that can make a big difference in your trading results so it's well worth being aware of while watching the market develop during your trading day.
4) Ascending Triangle (72.77%) :
The triangle pattern usually occurs in trends and acts as a continuation pattern. It's defined by a bullish trending move followed by two or more equal highs and a series of higher lows
The pattern is complete when price breaks above the horizontal support area and the pattern is considered successful if price extends beyond the breakout point for at least the same distance as the pattern width
5 Rules To Always Follow
I hope that I was able to help you understand Classic Continuation and Reversal Patterns better and if you have any more questions don't hesitate to ask.
This is not Financial Advice its a pure Educational video.
Hit that like if you found this helpful and check out my other video about the Moving Average, Stochastic oscillator, The Dow Jones Theory, How To Trade Breakouts, The RSI , The MACD , The Bollinger Bands , The Different Types Of Trading Strategies, Candlestick Charts Part 1 & 2 and 3 links will be bellow
Futures Levels | Are Rates Ready To Breakout? (ZN, ZB, ZF)Rates look poised for another attempt at a breakout. Can TINA remain our favorite gal if the 10Y gets above 1.5?
Crude looks good, while the Gold blemish continues.
Fed speak after the FOMC with Yellen & Powell testimony this week. The debt ceiling and an infrastructure bill are on tap for Congress. BTC & ETH are holding up, off the lows from last week.
Improving Consistency In TradingThis is always one of the biggest challenges to becoming a full time profitable trader.
Almost all traders will have a battle against becoming consistent.
Its something that I definitely struggled with when starting out in my trading journey.
I would go through weeks of profitable trades and building my account and then equally go through losing streaks and essentially wiping out my wins. Or simply from one week to the next my trading results would fluctuate like crazy…
This will inevitably have a detrimental effect on your trading results but more importantly it will have a major negative effect on your mentality and well being as you become more and more frustrated with inconsistent trading results.
So today I wanted to sit down and go through this in topic to explain some ways to combat this problem and improve your consistency.
Expectations
Firstly its important to define the goal… what does consistent trading look like FOR YOU?
Because believe it or not, the answer to that question is different for different people.
So, are you looking to be consistent over the course of each day? Over the course of each week?… Define a time period that is realistic for you to determine your consistency and make sure it has enough time to measure enough trades to account for wins and losses.
Are you looking to be consistent in terms of profit over this period of time? Or are you looking to be consistent in terms of percentage of trades won and loss?
Secondly its important to know that you WONT win every trade.. so any goal that sets out to do so won’t be realistic and won’t be achievable.
Winning 80% of your trades is a VERY consistent win rate percentage.
No Silver Bullet
The honest truth is that there’s no secret formula or special sauce that will turn an inconsistent trader into a consistently profitable one overnight.
As with everything it will take gradual steps of improvement but I can share with you some methods and insights to help speed that process up.
Consistent Results Come From Consistent Processes
The main reason behind inconsistent results is that traders are using an inconsistent process for each trade they place.
If one trade is placed based on one strategy and then you are not using that same strategy on the next trade then you can expect any trading results will reflect that.
Its important to understand your strategy in trading intimately… you should have the confidence in your strategy that if you were to lose a trade, you are confident that over time your strategy will work out.
Typically this scattergun approach where traders jump from one strategy to the next is the main cause of why their results are inconsistent.
Review Your Strategy
Finally you must of course have a very robust strategy to use in the first place… if the strategy you are using isn’t robust and doesn’t provide an ‘edge’ on the market… if you haven’t done the research and backtesting necessary to know your edge on the market then you can be sure that any result from using that strategy will be inconsistent.
Candlestick Charts Part 3: ContinuationHello everyone, as we all know the market action discounts everything :)
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NOTE: some pattern could be reversal and continuation patterns depending if its in an uptrend or downtrend.
Today's video will be about the Candlestick Chart : Continuation Patterns.
Continuation Patterns are candlestick patterns that tend to resolve in the same direction as the prevailing trend.
So lets start by talking about the different types of Patterns :
Bullish Continuation Patterns
Bearish Continuation Patterns
And they are divided into 3 groups :
Weak Patterns
Reliable Patterns
Strong Patterns
We Start with the Strong Continuation Patterns :
1) Rising Three Methods :
is a five candlestick bullish continuation pattern. The first candlestick is a large bullish candlestick that takes place during an uptrend. Then a group of two to four small body candlesticks (either bullish or bearish) retreat within the price range established by the first day’s real body bullish candlestick. The final candlestick of the pattern is another large bullish candlestick that closes above the first day’s closing price.
2) Falling Three Methods :
is a five candlestick bearish continuation pattern. The first candlestick is a large bearish candlestick that takes place during a downtrend. Then a group of two to four small body candlesticks (either bullish or bearish) slowly ascend within the price range established by the first day’s real body bearish candlestick. The final candlestick of the pattern is another large bearish candlestick that closes below the first day’s closing price.
3) Deliberation in an uptrend :
A deliberation structure is comprised of three Japanese candlesticks. All three are bullish (green). The first is a candlestick with a small body followed by a large full candlestick. Finally, the last candlestick also has a small body and forms a star.
4) Concealing Baby Swallow in an uptrend :
The Concealing Baby Swallow is a four-line candlestick pattern, which appears so rarely. Two Black Marubozu candles appearing one after the other are very uncommon situation on the candlestick charts what limits the appearance of this pattern.
Now Lets Talk about the Reliable Continuation Patterns :
1) Bullish Separating Lines :
Bullish separating lines pattern is a two-candle bullish continuation candlestick pattern that comes up in the middle of a bullish trend. It indicates that the current bullish trend is about to continue after a temporary pullback.
2) Bearish Separating Lines :
The bearish separating line is known as a bearish continuation pattern. The first line is a white candle that comes up as a long line in a downtrend. The second line is made up of a black candle that comes up as a long line. Both bars will open at the same price, and then the prices are separating.
3) Bullish Matching High :
This pattern involves two or more matching highs. On a lower timeframe chart this pattern will look like a support or resistance being broken.
Breakouts are used by traders a trigger to enter the market with the momentum of the breakout signaling a new leg of a trend.
4) Bearish Matching Low :
This pattern involves two or more matching lows which if broken is a signal that there will be a resumption of the current trend.
5) Upside Tasuki Gap :
It is a bullish continuation candlestick pattern which is formed in an ongoing uptrend.
This candlestick pattern consists of three candles, the first candlestick is a long-bodied bullish candlestick, and the second candlestick is also a bullish candlestick formed after a gap up.
The third candlestick is a bearish candle that closes in the gap formed between these first two bullish candles.
6) Downside Tasuki Gap :
Downside Tasuki Gap is a bearish continuation pattern that forms in the middle of a downtrend. The first candle is bearish, and is followed by a negative gap and another bearish candle. The third candle is bullish and closes right in the gap between the first two bars.
And Last but not least The Weak Continuation Patterns :
1) Advance Block :
The advance block is a three bar pattern. The pattern appears as a block of three white, rising candlesticks, each with a shorter body than the last.
The candles should not have overly long shadows as these can sometimes develop into other pattern types such shooting stars and hanging men.
2) Stick Sandwich :
The stick sandwich candlestick pattern can occur in both bull and bear markets. The stick sandwich candlestick pattern consists of three candlesticks, where one candlestick has an opposite colored candlestick on both sides. The closing prices of the two candlesticks that surround the opposite colored candlestick must be same.
3) Bullish Side by Side White Lines :
– It occurs during an Uptrend; confirmation is required by the candles that follow the Pattern.
– The First Candle is white.
– Then there is a Gap Up between the First and Second Candle.
– The Second and Third Candle are white, their Real Bodies have the same length; moreover they have the Open at the same level (More or less) and is above the Real Body of the First Candle.
4) Bearish Side by Side White Lines :
– It occurs during a Downtrend; confirmation is required by the candles that follow the Pattern.
– The First Candle is black.
– Then there is a Gap Down between the First and Second Candle.
– The Second and Third Candle are white, their Real Bodies have the same length; moreover they have the Open at the same level (More or less) and is below the Real Body of the First Candle.
5) Bullish On Neck Line:
The on neck candlestick is a continuation pattern. In an on neck pattern, the first candle is Bullish and the second one is Bearish. The first candle’s body is long while the second one is shorter. The second candle closes near the first one or close to the first candle. The pattern gets its name because at the point where the closing prices of the two are nearly the same or same, it forms a horizontal line which looks like a neck or a neckline.
6) Bearish On Neck line :
The on neck candlestick is a continuation pattern. In an on neck pattern, the first candle is bearish and the second one is bullish. The first candle’s body is long while the second one is shorter. The second candle closes near the first one or close to the first candle. The pattern gets its name because at the point where the closing prices of the two are nearly the same or same, it forms a horizontal line which looks like a neck or a neckline.
I hope that I was able to help you understand Continuation Patterns in Candlestick Charts better and if you have any more questions don't hesitate to ask.
Hit that like if you found this helpful and check out my other video about the Moving Average, Stochastic oscillator, The Dow Jones Theory, How To Trade Breakouts, The RSI , The MACD , The Bollinger Bands , The Different Types Of Trading Strategies, Candlestick Charts Part 1 & 2 links will be bellow
How To: Combine Technicals & Fundamentals To Find Great StocksWith the markets taking a bit of a battering, I thought I'd show you some more of TradingViews advanced tools to perhaps help you find better quality stocks that might be more resilient to these corrections by combining both Technical Analysis indicators along with some really easy to understand at a glance Fundamental Analysis metrics.
In this video I will cover:
1. How to use the TradingView Screener to find good stocks which didn't pull back much or even went up against the overall market pull back.
2. How to use Moving Averages to find stocks with lower volatility that might be better for buy and hold type investors.
3. How to use the TradingView Income Statement summary tool to quickly identify and help shortlist stocks with better overall fundamentals.
4. How to see using the TradingView Post Market data which stocks are already being bought back into AFTER the market has closed.
5. How to flag the ones you like and then save them into a TradingView Watchlist you can then review later.
6. How to save your TradingView Screener set up, and have any new stocks matching your criteria to be automatically emailed to you.
Stocks To WatchThe Market's longer term uptrend still intact. Breadth is deteriorating again. These names have shown good relative strength and accumulation volume and most are in the growth sector. This may give good risk/reward entries on some of the best names. Some of these charts still need to confirm their price action. This video is my watchlist. Most of these names are at or near all time highs or multi year highs. There are 26 total stocks on this list Many of these have IPO'd in the last few years and still have a growth story ahead of them. Know your time frame and risk tolerance. Know your earnings dates! I go through these quickly so grab a pencil and paper and jot down the names that look interesting to you and then make the trade your own. Good Luck!
How To: Build Your Own Private Signals Service Using TradingViewMany traders - especially beginners - rely on others to tell them what stocks to trade and when to place their entries and their exits.
What I want to show you is not so much how to trade or what strategy to use, but once you have found a strategy that YOU like, how to set up this strategy in TradingView and get automated alerts when a stock meets your criteria.
This video covers:
How to setup your TradingView Chart
How to add built-in or custom TradingView Indicators to your chart
How to customise those indicators
How to find stocks that match your criteria using the TradingView Screener
How to save your set up
How to set up a TradingView Alert
How to get alerts sent to your phone or email or screen
How to check TradingView News to see what catalyst might have caused the alert
How to use TradingView Text Notes
Hope the video was useful.
Weekly Watchlist 12 September [Stock]In this video I break down my thoughts on the stock market as well as share with you guys my watchlist for this week. If you like this video, please make sure you like and subscribe, I really do appreciate it. Also please note that this is not financial advice. Good Luck!
My Watchlist:
www.tradingview.com
