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3 Best Trading Opportunities to Maximize Profit Potential Hey traders, In the today's article, we will discuss 3 types of incredibly accurate setups that you can apply for trading financial markets. 1. Trend Line Breakout and Retest The first setup is a classic trend line breakout. Please, note that such a setup will be accurate if the trend line is based on at least 3 consequent bullish or bearish moves. If the market bounces from a trend line, it is a vertical support. If the market drops from a trend line, it is a vertical resistance. The breakout of the trend line - vertical support is a candle close below that. After a breakout, it turns into a safe point to sell the market from. The breakout of the trend line - vertical resistance is a candle close above that. After a breakout, it turns into a safe point to buy the market from. Take a look at the example. On GBPJPY, the market was growing steadily, respecting a rising trend line that was a vertical support. A candle close below that confirmed its bearish violation. It turned into a vertical resistance . Its retest was a perfect point to sell the market from. 2. Horizontal Structure Breakout and Retest The second setup is a breakout of a horizontal key level. The breakout of a horizontal support and a candle close below that is a strong bearish signal. After a breakout, a support turns into a resistance. Its retest is a safe point to sell the market from. The breakout of a horizontal resistance and a candle close above that is a strong bullish signal. After a breakout, a resistance turns into a support. Its retest if a safe point to buy the market from. Here is the example. WTI Crude Oil broke a key daily structure resistance. A candle close above confirmed the violation. After a breakout, the broken resistance turned into a support. Its test was a perfect point to buy the market from. 3. Buying / Selling the Market After Pullbacks The third option is to trade the market after pullbacks. However, remember that the market should be strictly in a trend . In a bullish trend, the market corrects itself after it sets new higher highs. The higher lows usually respect the rising trend lines. Buying the market from such a trend line, you open a safe trend-following trade. In a bearish trend, after the price sets lower lows, the correctional movements initiate. The lower highs quite often respect the falling trend lines. Selling the market from such a trend line, you open a safe trend-following trade. On the chart above, we can see EURAUD pair trading in a bullish trend. After the price sets new highs, it retraces to a rising trend line. Once the trend line is reached, trend-following movements initiate. What I like about these 3 setups is the fact that they work on every market and on every time frame. So no matter what you trade and what is your trading style, you can apply them for making nice profits. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
2
Mastering Risk Management in Trading: The Ultimate GuideMastering Risk Management in Trading: The Ultimate Guide In the world of trading, success isn’t measured only by big wins but by how well you protect your capital from unnecessary losses. Risk management isn’t just a safety net—it’s the backbone of sustainable trading. In this comprehensive guide, we’ll break down the principles and strategies you need to safeguard your account while still maximizing your profit potential. --- 1. Risk-Reward Ratio: The Foundation of Every Trade - What it is: The risk-reward ratio is the cornerstone of every trade. It tells you how much potential reward you’re targeting compared to the risk you’re willing to take. For instance, if you risk $100 and aim to make $200, your risk-reward ratio is 1:2—a commonly accepted standard in trading. - How to use it: - Always predefine your risk-reward ratio before entering a trade. - For swing traders, aim for a minimum of 1:2 or 1:3 to justify holding overnight. --- 2. Position Sizing: The Key to Survival - Why position sizing matters: Position sizing ensures you don’t over-leverage your account or lose too much in a single trade. Many traders fail because they bet too big and get wiped out after just a few losing trades. - How to calculate position size: - Use this formula: Position Size = (Account Risk $ ÷ (Entry Price - Stop-Loss Price)). - For example, if you’re risking $100 per trade and the difference between your entry and stop-loss is $5, your position size should be 20 units (100 ÷ 5). --- 3. Stop-Loss Orders: Your Safety Net - What is a stop-loss? A stop-loss is your emergency brake. It’s an order you set in advance to sell your position if the price moves against you by a specified amount. - How to set stop-losses: - Use technical analysis to place your stop-loss below support levels for long trades or above resistance levels for short trades. - Avoid placing stop-losses too close to your entry point, as small fluctuations might trigger them unnecessarily. Here you can see my ratio is on the low side so i can place a tactical TP and SL in relation to liquidity lines. --- 4. The Art of Diversification: Spreading Risk - Why diversification works: Putting all your capital into a single trade or instrument increases your risk. Diversification spreads that risk across multiple trades or markets, reducing the impact of any single loss. - How to diversify effectively: - Trade across multiple sectors or currency pairs. - Avoid overexposure to correlated assets (e.g., don’t trade EUR/USD and GBP/USD simultaneously). --- 5. Emotional Discipline: Winning the Mental Game - Why it matters: Even the best trading strategy can fail if emotions like fear or greed take over. Emotional trading leads to impulsive decisions, revenge trading, and overtrading. - How to maintain discipline: - Stick to your trading plan, no matter what. - Use tools like meditation, journaling, or physical exercise to manage stress. --- 6. Dynamic Risk Management: Adapting to Changing Markets - Adjusting your strategy: Markets are dynamic, and your risk management should adapt. Volatility can change quickly, requiring you to adjust your stop-loss distance or position size. - Use ATR (Average True Range): The ATR is a great tool to measure market volatility and decide how much room to give your stop-loss. --- 7. Tracking and Reviewing Your Trades - The power of a trading journal: Every trade is a learning opportunity. Keep detailed records of your trades, including your reasoning, execution, and results. - What to include in your journal: - Entry and exit points. - Risk-reward ratio. - Mistakes or deviations from the plan. - Lessons learned. --- Conclusion: Plan the Trade, Trade the Plan Risk management isn’t just a skill—it’s a habit. By understanding your risk-reward ratio, managing position sizes, using stop-losses effectively, and staying emotionally disciplined, you can protect your capital and increase your chances of long-term success. Take a moment to reflect: How do you manage risk in your trading? Are there areas you could improve? Start implementing these strategies today, and watch how they transform your trading results.
Education
by Louigi_24
29
Master the Market with These 5 Wave Trading RulesHello, In any business, rules are the backbone of success, providing the structure and discipline needed to thrive. Trading and investing are no exceptions—they must be treated with the same seriousness and rigor as any entrepreneurial venture. As a wave trader, I rely on a refined set of rules that blend technical analysis with Wave Theory to understand market behavior. Wave trading is a powerful strategy that analyzes price patterns to uncover the cyclical nature of market trends, enabling traders to predict future movements and seize profitable opportunities. Understanding Wave Trading Markets don’t move randomly—they ebb and flow in predictable waves. According to Elliott Wave Theory (a type of wave theory), trends unfold in a series of five waves (known as impulses) followed by three waves (corrections). Mastering this rhythm allows you to anticipate where the market is headed next, giving you a strategic edge. Our Trading Rules Here’s a breakdown of the essential rules I follow as a wave trader, designed to guide you through the process with clarity and precision: Identify Impulse & Correction Impulse: A robust, directional price surge made up of five sub-waves, signaling the dominant trend. Correction: A smaller, counter-trend move consisting of three sub-waves, acting as a pause or pullback. Recognizing these phases reveals the market’s underlying structure. For example, spotting a five-wave impulse upward suggests a bullish trend, while a three-wave correction might signal a temporary dip—perfect for planning your next move. Identify the Pattern Formations Look for patterns that can help you anticipate the next moves e.g. the expanding triangle, Bullish flag or even reversal patterns. Identify Entry Points Timing is everything. Pinpoint the perfect moment to enter a trade based on your wave and pattern analysis. Wait for confirmations like a breakout above a flag pattern or a signal from indicators such as moving averages or MACD that align with your wave count. Look for Targets Set clear profit targets to stay disciplined and secure gains. Wave projections, like the expected end of wave 5 in an impulse. Look for Exits in Case the Trade Doesn’t Go Your Way Not every trade is a winner, and that’s okay. Protect your capital with stop-losses placed at logical levels. Where to set them: Choose points that invalidate your analysis—like below a key support level or a wave pattern’s critical threshold. If the market breaks that level, your trade idea’s likely wrong, so exit calmly. This removes emotion from the equation, safeguarding your account for the long haul. The Power of Discipline These rules aren’t just guidelines—they’re your shield against the emotional rollercoaster of trading. Write them down, pin them up, or keep them handy on your trading desk. Reviewing them before every trade reinforces your commitment to a systematic, objective approach. Discipline turns good strategies into great results. Wishing you success on your trading journey! Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
Education
by thesharkke
A powerful vote for a recessionEvery day people thank me for my educating them, reporting each exact pivot from LOD to HOD to down to the minute, never have I upset so many people as I did when I tried to educate the to the technical damage that they do, when they "act the pawn" by assisting paper in taking down bitcoin as an alternate economy. in 2000 when the dot.com bubble burst, I wanted to know for sure, before everyone else that a recession is comming. From extensive research I learned the signs of a BEAR market comming. one the flight to quality, traders fearing to buy stocks rush into the 1 year T bill, gold, REITS, sin stocks that never go down in a Recession. Two the technicl indicator? The 50 day EMA crossing down and going under the 200 EMA, look at this chart, see the 50 Day EMA pale blue, crossing under the 200 EMA. The more often this happens and the longer the duration the closer we are to the next recession. massive submission to Paper Selling byh shorting can cause technical damage to bitcoin and the economy. These are simple facts, I'm not interested in justifications or excuses as to why you would short L6 driving it down to L7 today, L6 used to be an imaginary level as the pivots only included L5 to H5. Remember when TSLA and NVDA used to be two of the best stocks in America and the world. Remember when TSLA had amazing earnings quarter after quarter buty weren't as out of this universe as expected, and TSLA was seriously damaged, leading to 3 months of selling. The 50 EM went under the 200 indicating technical damage. I short too, at night when the market corrects and sets up for a rally the next day as bitty did before Trump_A_dump. it is extremely naive to believe the market is a fair exchange seeking the real worth of an index or a stock.. Shorting at L6 is dangerous and damaging to bitty. this chart shows how it creates recession like state, and shows how by shorting the extreme lows one becomes a "pawn" or a "tool" for paper, playing into the Billionaire's hands as they take your bitcoin super cheap. One final proof of concept is look at order flow next time this happens, all the shorts are retail traders,all the longs are Bull Whales, you can clearly see the size of the greater than $1 Million dollar longs, and you can tell if they were pulled or traded by looking at a 1" chart. If $5M or 10M get's filled price goes up on a 1" chart.
BITSTAMP:BTCUSDEducation
by dryanhawley
2
What Are the Inner Circle Trading Concepts? What Are the Inner Circle Trading Concepts? Inner Circle Trading (ICT) offers a sophisticated lens through which traders can view and interpret market movements, providing traders with insights that go beyond conventional technical analysis. This article explores key ICT concepts, aiming to equip traders with a thorough understanding of how these insights can be applied to enhance their trading decisions. Introduction to the Inner Circle Trading Methodology Inner Circle Trading (ICT) methodology is a sophisticated approach to financial markets that zeroes in on the behaviours of large institutional traders. Unlike conventional trading methods, ICT is not merely about recognising patterns in price movements but involves understanding the intentions behind those movements. It is part of the broader Smart Money Concept (SMC), which analyses how major players influence the market. Key Inner Circle Trading Concepts Within the ICT methodology, there are many concepts to learn. Below, we’ve explained the most fundamental ideas central to ICT trading. Structure Understanding the structure of a market is fundamental to effectively employing the ICT methodology. In the context of ICT, market structure is defined by the identification of trends through specific patterns of highs and lows. Market Structure A market trend is typically characterised by a series of higher highs and higher lows in an uptrend, or lower highs and lower lows in a downtrend. This sequential pattern provides a visual representation of market sentiment and momentum. Importantly, market trends are fractal, replicating similar patterns at different scales or timeframes. For example, what appears as a bearish trend on a short timeframe might merely be a corrective phase within a larger bullish trend. By understanding this fractal nature, traders can better align their strategies with the prevailing trend at different trading intervals. Break of Structure (BOS) A Break of Structure occurs when there is a clear deviation from these established patterns of highs and lows. In an uptrend, a BOS is signalled by prices exceeding a previous high without falling below the most recent higher low, confirming the strength and continuation of the uptrend. Conversely, in a downtrend, a BOS is indicated when prices drop below a previous low without breaching the prior lower high, signifying that the downtrend remains strong. Identifying a BOS gives traders valuable clues about the continuation of the current market direction. Change of Character (CHoCH) The Change of Character in a market happens when there is a noticeable alteration in the behaviour of price movements, suggesting a potential reversal of a given trend. This might be seen in an uptrend where the price fails to reach a new high and then breaks below a recent higher low, indicating that the buying momentum is waning and a bearish reversal is possible. Identifying a CHoCH helps traders recognise when the market momentum is shifting, which is critical for adjusting positions to capitalise on or protect against a new trend. Market Structure Shift (MSS) A Market Structure Shift is a significant change in the market that can disrupt the existing trend. This specific type of CHoCH is typically marked by a price moving sharply (a displacement) through a key structural level, such as a higher low in an uptrend or a lower high in a downtrend. These shifts can signal a profound change in market dynamics, with the sharp move often preceding a new sustained trend. Recognising an MSS allows traders to reevaluate their current bias and adapt to a new trend, given its clear signal. Order Blocks Order blocks are a central component of ICT trading, providing crucial insights into potential areas where the price may react strongly due to significant buy or sell interests from large market participants. Regular Order Blocks A regular order block is an area on the price chart representing a concentration of buying (demand zone) or selling (supply zone) activity. In an uptrend, a bullish order block is identified during a downward price movement and marks the last area of selling before a substantial upward price movement occurs. Conversely, a bearish order block forms in an uptrend where the last buying action appears before a significant downward price shift. In the ICT trading strategy, order blocks are seen as reversal areas. So, if the price revisits a bullish order block following a BOS higher, it’s assumed that the block will hold and prompt a reversal that produces a new higher high. Breaker Blocks Breaker blocks play a crucial role in identifying trend reversals. They are typically formed when the price makes a BOS before reversing and breaking beyond an order block that should hold if the established market structure is to be maintained. This formation indicates that liquidity has been taken. For instance, in an uptrend, if the price creates a new high but then reverses below the previous higher low, the bullish order block above the low becomes a breaker block. A breaker block can be an area that prompts a reversal as the new trend unfolds; it’s a similar concept to support becoming resistance and vice versa. Mitigation Blocks Mitigation blocks are similar to breaker blocks, except they occur after a failure swing, where the price attempts but fails to surpass a previous peak in an uptrend or a previous trough in a downtrend. This pattern indicates a loss of momentum and potential reversal as the price fails to sustain its previous direction. For example, in an uptrend, if the price makes a lower high and then breaks the structure by dropping below the previous low, the order block formed at the previous low becomes a mitigation block. These blocks are critical for traders because they’re also expected to produce a reversal if a new trend has been set in motion. Liquidity Liquidity refers to areas on the price chart with a high concentration of trading activity, typically marked by stop orders from retail traders. Buy- and Sell-Side Liquidity Buy-side liquidity is found where there is a likely accumulation of short-selling traders' stop orders, typically above recent highs. Conversely, sell-side liquidity is located below recent lows, where bullish traders' stop orders accumulate. When prices touch these areas, activating stop orders can cause a reversal, presenting a potential level of support or resistance. Liquidity Grabs A liquidity grab occurs when the price quickly spikes into these high-density order areas, triggering stops and then reversing direction. In ICT theory, this action is often orchestrated by larger players aiming to capitalise on the flurry of orders to execute their large-volume trades with minimal slippage. It's a strategic move that temporarily shifts price momentum, usually just long enough to trigger the stops before the market direction reverses. Inducement An inducement is a specific type of liquidity grab that triggers stops and entices other traders to enter the market. It often appears as a peak or trough, typically into an area of liquidity, in a minor counter-trend within the larger market trend. Inducements are designed by smart money to create an illusion of a trend change, prompting an influx of retail trading in the wrong direction. Once the retail traders have committed, the price swiftly reverses, aligning back with the original major trend. Trending Movements In the Inner Circle Trading methodology, two specific types of sharp trending movements signal significant shifts in market dynamics: fair value gaps and displacements. Fair Value Gaps A fair value gap (FVG) occurs when there is a noticeable absence of trading within a price range, typically represented by a swift and substantial price move without retracement. This gap often forms between the wicks of two adjacent candles where no trading has occurred, signifying a strong directional push. Fair value gaps are important because they indicate areas on the chart where the price may return to "fill" the gap, usually before meeting an order block, offering potential trading opportunities as the market seeks to establish equilibrium. Displacements Displacements, also known as liquidity voids, are characterised by sudden, forceful price movements occurring between two chart levels and lacking the typical gradual trading activity observed in between. They are essentially amplified and more substantial versions of fair value gaps, often spanning multiple candles and FVGs, signalling a heightened imbalance between buy and sell orders. Other Components Beyond these ICT concepts, there are a few other niche components. Kill Zones Kill Zones refer to specific timeframes during the trading day when market activity significantly increases due to the opening or closing of major financial centres. These periods are crucial for traders as they often set the tone for price movements based on the increased volume and volatility: Optimal Trade Entry An optimal trade entry (OTE) is a type of Inner Circle trading strategy, found using Fibonacci retracement levels. After an inducement that prompts a displacement (leaving behind an FVG), traders use the Fibonacci retracement tool to pinpoint entry areas. The first point is set at the major high or low that prompts the displacement, while the second point is set at the next significant swing high or low that forms. In a bearish movement, for example, the initial point is set at the swing high before the displacement and the subsequent point at the new swing low. Traders often look to the 61.8% to 78.6% retracement level for entries. Balanced Price Range A balanced price range is observed when two opposing displacements create FVGs in a short timeframe, indicating a broad zone of price consolidation. During this period, prices typically test both extremes, attempting to fill the gaps. This scenario offers traders potential zones for trend reversals as the price seeks to establish a new equilibrium, as well as key levels to watch for a breakout. The Bottom Line Understanding ICT concepts gives traders the tools to decode complex market signals and align their strategies with the influential trends shaped by the largest market participants. For those looking to apply these sophisticated trading techniques practically, opening an FXOpen account can be a great step towards engaging with the markets through a robust platform designed to support advanced trading strategies. FAQs What Are ICT Concepts in Trading? ICT (Inner Circle Trading) concepts encompass a series of advanced trading principles that focus on replicating the strategies of large institutional players. These concepts include liquidity zones, order blocks, market structure shifts, and optimal trade entries, all aimed at understanding and anticipating significant market movements. What Is ICT in Trading? ICT in trading refers to the Inner Circle Trading methodology, a strategy developed to align smaller traders’ actions with those of more influential market participants. It utilises specific market phenomena, such as order blocks and liquidity patterns, to analyse price movements and improve trading outcomes. What Is ICT Trading? ICT trading is the application of concepts that seek to identify patterns and structures that indicate potential price changes driven by institutional activities, aiming to capitalise on these movements. What Is ICT Strategy? An ICT strategy combines market analysis techniques to identify where significant market players are likely to influence prices. This includes analysing price levels where large volumes of buy or sell orders are anticipated to occur and identifying key times when market moves are most likely. Is ICT Better Than SMC? Comparing ICT and SMC (Smart Money Concept) is challenging as ICT is essentially a subset of SMC. While SMC provides a broader overview of how institutional money influences the markets, ICT offers more specific techniques and terms like inducements and displacements. Whether one is better depends on the trader’s specific needs and alignment with these methodologies’ intricacies. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
Chaos to Clarity: Mastering the Discipline Mindset5min read Looking back on my journey as an investor, I can see how much my mindset shaped my path. When I first started, I was a mess—chasing every hot tip, jumping into trades without a plan, and letting my emotions call the shots. I’d feel a surge of excitement when price spiked, but the moment it dipped, I’d panic and sell, locking in losses. It was a chaotic rollercoaster, and I was losing more than I was gaining. I knew something had to change, but I wasn’t sure where to begin. One day, I took a step back and really looked at myself. I realized the market wasn’t my biggest problem—I was. I was reacting to every little fluctuation, letting fear and greed drive my decisions. I started paying close attention to how I felt when I made trades. Was I anxious? Overconfident? I began noticing patterns. When I was stressed, I’d make impulsive moves that almost never worked out. But when I was calm and focused, my choices were better, and I’d often come out ahead. That was my first big revelation: my state of mind was the key to everything. I decided to get serious about controlling my emotions. I started small, setting strict rules for myself. I’d only trade when I was in a good headspace—calm, clear, and ready to stick to my plan. If I felt off, I’d step away from the screen, no exceptions. It was tough at first. I’d catch myself itching to jump into a trade just because everyone else was talking about it. But I learned to pause, take a deep breath, and check in with myself. Over time, I got better at staying steady, even when the market was a whirlwind. I also realized how much my beliefs were holding me back. I used to think I had to be in the market constantly to make money. If I wasn’t trading, I felt like I was missing out. But that mindset just led to burnout and bad calls. I started to change my thinking—I told myself it was okay to sit on the sidelines if the conditions weren’t right. I began to see that success wasn’t about being the busiest; it was about being the smartest. I focused on quality over quantity, and that shift made a huge difference. My wins started to outnumber my losses, and I felt more in control than I ever had. One of the toughest lessons came when I stopped blaming external factors for my failures. If a trade went south, I’d point the finger at the market, the news, or even the system I was using. But deep down, I knew that wasn’t the whole truth. I had to take responsibility for my own actions. I started treating every loss as a chance to learn. What was I feeling when I made that trade? Was I following my rules, or did I let my emotions take over? By owning my mistakes, I began to grow. I became more disciplined, more aware of my own patterns, and better at sticking to what worked. I’m not going to pretend I’m perfect now—I still make mistakes, plenty of them. At the beginning of this week, I came into trading loaded with personal problems from real life. I didn’t even pause to clear my head; I just dove straight into the charts and started opening long positions without much thought. By Friday, I realized what I’d done—I’d let my distracted, emotional state drive my decisions. So, I closed all my positions except one, cutting my losses quickly and stepping back to reassess. That’s what’s changed: I recognize those mistakes almost immediately now. I don’t hang on to them or let them spiral. I catch myself, fix the problem fast, and move on without beating myself up. That ability to pivot quickly has been a game-changer. I’m not stuck in the past anymore—I’m focused on getting better with every step. Over time, I learned to tune out the noise and focus on what I could control. I stopped worrying about what other people were doing and started trusting my own process. I’d remind myself that investing isn’t just about the numbers—it’s about the person behind the trades. The more I worked on my mindset, the more consistent my results became. I learned to stay present, keep my emotions in check, and approach every decision with a clear head. That’s what turned me into the investor I am today—someone who’s not just chasing profits, but building a sustainable, successful approach to the markets, mistakes and all.
CRYPTOCAP:TOTALEducation
by vagada
ICT Concepts for FX and GOLD traders: 2025 edition🔍 ICT (Inner Circle Trader) is a trading methodology developed by Michael J. Huddleston. It focuses on market structure, smart money concepts (SMC), and how institutions manipulate liquidity to trap retail traders. 📚 It's not about indicators or over-complication — it's about reading the price action like a pro, understanding where liquidity is, and trading with the banks, not against them. 📐 1. Market Structure Understand Highs & Lows: Identify break of structure (BOS) and change of character (CHOCH) Follow the macro to micro flow: D1 > H4 > M15 for precision entries 🧱 2. Order Blocks (OBs) An order block is the last bullish or bearish candle before a major price move. Banks and institutions place large orders here. Smart traders look for price to return to these areas (mitigation), then enter with tight stop losses. 👉 Think of OBs as institutional footprints on the chart. 💧 3. Liquidity Zones Equal highs/lows, trendline touches, support/resistance — these are liquidity traps. ICT teaches that price often hunts liquidity before reversing. That’s why many retail traders get stopped out. Learn to trade into liquidity, not off it. 🔄 4. Fair Value Gaps (FVGs) Also called imbalances — when price moves too fast and leaves gaps. Price often retraces to "fill the gap" — a key entry point for ICT traders. 🥇 ICT for Gold & Forex in 2025 💰 Why It Works for XAUUSD & Majors: Gold is a highly manipulated asset, perfect for ICT-style trading. It responds beautifully to liquidity grabs, order blocks, and Asian–London–New York session transitions. Forex majors (EUR/USD, GBP/USD, etc.) are also ideal since they’re heavily influenced by institutional flow and news-driven liquidity hunts. 🕐 Timing Is Everything Trade Killzones: 📍 London Killzone: 2AM–5AM EST 📍 New York Killzone: 7AM–10AM EST These are high-volume sessions where institutions make their moves. 📈 Typical ICT Setup ▪️Spot liquidity zone above or below recent price ▪️Wait for liquidity sweep (stop hunt) ▪️Identify nearby order block or FVG ▪️Enter on a pullback into OB/FVG ▪️Set tight SL just past the recent swing Target internal range, opposing OB, or next liquidity level 👨‍💻 Why FX/GOLD Traders Love ICT ✅ It’s clean, no indicators, and highly logical ✅ Great for part-time trading — 1 or 2 trades a day ✅ Feels like "leveling up" your understanding of the market ✅ Perfect for backtesting and journaling on platforms like TradingView or SmartCharts ✅ Easy to integrate into algo-based systems or EAs for semi-automation If you’re tired of indicators and guessing, and want to trade like the institutions, ICT is a game changer. In 2025, more prop firms and traders are applying ICT concepts to dominate markets like gold, forex, and even crypto. 🧭 Master the method. Understand the logic. Ride with the smart money. 🔥 Welcome to the next level of trading.
Education
by ProjectSyndicate
10
Convexity-based trade scenario using LOAR stock and the April 17Yo traders - Let’s map out a convexity-based trade scenario using LOAR stock and the April 17, 2025 $75 Call option — currently trading at $1.00, with the stock at $65.97 and only 18 days to expiry. 🔍 Step-by-Step Breakdown: 🧠 1. Basic Structure You’re buying the LOAR Apr17 $75 call at $1.00. This is a deep OTM bet (~13.7% above current price). You’re betting on a short-term move to $75+, meaning volatility spike or news catalyst. ⚙️ 2. Convexity Setup Convexity means: Small risk, asymmetric reward If LOAR stays flat or dips → you lose $1 per contract If LOAR rips to $80+ → this option could return 5x to 10x+ LOAR Price at Expiry Option Intrinsic Value Profit/Loss $66 (flat) $0 -$1.00 $70 $0 -$1.00 $75 (strike) $0 -$1.00 $77 $2.00 +$1.00 $80 $5.00 +$4.00 (5x) $85 $10.00 +$9.00 (9x) 🧾 3. Chart + Sentiment Setup Looking at the TradingView chart: Price Action: LOAR is basing around $66 after a steep downtrend — potential reversal pattern Volume is light, but some buy pressure is visible MACD: Appears to be flattening and potentially crossing bullish RSI: ~40s: Oversold-to-neutral zone. Could support upward bounce. Earnings coming up (E icon): Strong potential for a catalyst move This setup enhances convexity, because earnings can produce gap moves that DOTM options profit from disproportionately. 🔮 4. Convexity Scenario Thesis (Narrative) "LOAR has pulled back hard and is showing signs of base-building. Earnings are in 2–3 weeks. If guidance surprises to the upside — or macro tailwinds hit the sector — a short squeeze or re-rating toward $75–80 could occur. I’m risking $1 per contract for a shot at $5–10. If it doesn’t move, I accept the full loss." This is a classic event-driven convexity play. ⚠️ 5. Risks & Considerations Time decay is brutal: With only 18 days left, theta decay accelerates daily IV Crush post-earnings could hurt even if the stock moves You need a fast, strong move, ideally before or at earnings Position sizing is critical: This is a "lottery ticket" — don’t over-allocate ✅ 6. Ideal for Your Strategy If: You're making many small bets like this across tickers/catalysts You’re not trying to be “right” often, but “big” occasionally You have capital discipline and uncorrelated base assets 🧮 Position Size: Option price = $1.00 per contract You buy 100 contracts of the $75 call Total risk = $100 Each $1.00 move above $75 = $100 profit per $1, since 100 contracts × 100 shares/contract = 10,000 shares exposure 📈 Upside Payoff Table LOAR Price at Expiry Intrinsic Value Total Payoff Net P&L Return on $100 $65–$74.99 $0.00 $0 -$100 -100% $76 $1.00 $1 × 10,000 = $10,000 +$9,900 +9,900% $77 $2.00 $20,000 +$19,900 +19,900% $80 $5.00 $50,000 +$49,900 +49,900% $85 $10.00 $100,000 +$99,900 +99,900% $90 $15.00 $150,000 +$149,900 +149,900% $100 $25.00 $250,000 +$249,900 +249,900% 🧠 Interpretation Max Loss: $100 (fixed, regardless of LOAR's move down or sideways) Breakeven at Expiry: LOAR must hit $76.00 10x return if LOAR trades just $1 above strike Massive asymmetry — you risk $100 for a shot at $10k–250k if LOAR rips on earnings or news. 📌 Real-World Considerations: You might exit early if the option spikes in value before expiry (e.g., stock runs to $72 with 5 days left). Liquidity may limit large size fills. Volatility matters: IV spike pre-earnings or a big gap post-earnings increases your chance of profit. 📊 Convex Payoff Table for LOAR Apr17 $75 Call (100 Contracts, $100 Risk) LOAR Price at Expiry % Move from $65.97 Intrinsic Value Total Payoff Net P&L Return on $100 $65–$74.99 0% to +13.6% $0.00 $0 -$100 -100% $76 +15.2% $1.00 $10,000 +$9,900 +9,900% $77 +17.0% $2.00 $20,000 +$19,900 +19,900% $80 +21.3% $5.00 $50,000 +$49,900 +49,900% $85 +28.9% $10.00 $100,000 +$99,900 +99,900% $90 +36.4% $15.00 $150,000 +$149,900 +149,900% $100 +51.6% $25.00 $250,000 +$249,900 +249,900% 🧠 Takeaway: Even a 15% move turns your $100 into $10,000 — this is why convex trades are so powerful. But the trade-off is probability: the odds of a 15–50%+ move in 18 days are low, which is why risk is capped and position sizing matters.
NYSE:LOAREducation
by TheHouseofTrade
My market direction guide with extended-hour. Work best for >+1 day till expiration contract. (SWING) Personal Interpretation of Indicator: 5MA=yellow(scalp trend) 20MA=orange(pullback of a larger timeframe’s 5MA trend) I read how previous candles are behaving around 1hr 20MA and use pullback test rejection for direction signal. (Trade Planning, knowing the MA are align with larger timeframes like 4hr or day) Then, I use 15min 20MA pullback test with wick rejection to find cheaper price entry.
NASDAQ:QQQEducation
by FIBivanSPY
Eternal Sunshine of the Spotless MindHere you have Charles Thomas Munger, the permanent vice president of one of the most successful companies in the world, Berkshire Hathaway. He was not at the origins of this business, but it was Charles, together with Warren Buffett, who turned a dying enterprise into a star of the world stock market. It didn't take a Master's degree in Business Administration or incredible luck. As Mr. Munger said, to succeed you don't necessarily have to strive to be the smartest, you just have to be not stupid and avoid the standard ways of failure. He worked as a meteorologist, then a lawyer, and finally as someone we know well - an investor who inspired many to take a smart approach to business and their own lives. “I don’t think you should become president or a billionaire because the odds are too great against you. It is much better to set achievable goals. I didn't set out to become rich, I set out to be independent. I just went a little overboard”, Charles joked. Wake up every morning, work hard, be disciplined and surprisingly, everything will work out very well. This commandment sounds a little archaic in times of rapid rise and easy money. However, for anyone who thinks years and decades ahead, it is difficult to come up with something better. Speaking to students at his hometown University of Michigan, Mr. Munger said the most important decision you make in life is not your business career, but your marriage. It will do more good or bad for you than anything else. He attached such great importance to human relationships. This correlates strongly with a study of human happiness that has been ongoing for over 85 years under the auspices of Harvard University. The scientists' main conclusion was that everything we build (portfolios, businesses, strategies) is worthless if there is no person in our lives to whom we can say a simple “I'm here”. Or “Thank you”. Or “I love you”. The healthiest and happiest in old age were not those subjects who earned the most. And those who have maintained good, trusting relationships. Marital. Friendly. Related. And in this light, Charles Munger's words about caution, moderation and common-sense sound quite different. It's not about money. It's about a life that can be lived with the feeling that you have enough. That you don't have to be a hero. That you can just be a reasonable person. Loving. Healthy. Calm. Perhaps this is the main secret of Mr. Munger's success in the stock market? In the long run, the one who has already won achieves a positive result. November 28th, 2023, was the last day of the cheerful Charlie's life. There were 34 days left until his 100th birthday.
NYSE:BRK.AEducation
by Be_Capy
Mastering Compulsiveness: Volatile Coins Like TRUMP Are a Trap My Take on Dealing with Compulsiveness in Trading: Lessons with TRUMPUSDT.P Estimated Reading Time: Approximately 5 minutes I chose to focus on TRUMPUSDT.P for this idea because its extreme volatility makes it a perfect example of how compulsive trading can spiral out of control. TRUMPUSDT.P, a perpetual futures contract tied to the TRUMP token, often swings 20-30% in a day, driven by political news and social media hype, which can easily tempt traders into impulsive decisions and overtrading. After years of trading and studying trading psychology, I’ve learned how dangerous compulsiveness can be in the markets. I used to think being a good trader meant always being in the game, but I’ve seen how that mindset can lead to disaster. Compulsiveness is when you’re driven by the need to act—chasing the thrill of trading instead of focusing on steady profits. It’s a trap that can lead to overtrading, emotional exhaustion, and serious financial losses, not to mention the strain it puts on your life outside of trading. From my experience, compulsiveness often unfolds in three stages. First, you get a taste of winning, and it makes you feel unstoppable, so you keep pushing for more action. Then, when losses start piling up, you enter a losing phase where you trade recklessly to get back what you lost. Before you know it, you’re in a desperation phase, completely consumed by the need to recover, which often leads to even bigger losses. I’ve been through this cycle myself, and it’s a tough one to break. One thing that really helped me was learning how to spot compulsive behavior. I came across a set of questions from Gambler’s Anonymous that can help you figure out if you’re showing signs of compulsiveness—like feeling the urge to trade after a loss or letting trading take over other parts of your life. It’s a simple way to check in with yourself and see if you’re heading down a risky path. Over time, I’ve picked up some strategies to keep compulsiveness in check and build better discipline. The biggest one is to only trade when I have a clear, logical reason—like a price reaching a key support or resistance level on the daily chart of TRUMPUSDT.P—otherwise, I stay out of the market, no matter how much I feel the itch to jump in. I’ve also learned to pay attention to my emotional state and recognize when I’m trading out of impulse rather than focus. Shifting my mindset to care more about the process of trading well, rather than the excitement of being in a trade, has made a huge difference. I make sure to take breaks when I feel the urge to overtrade, set strict limits on how much I’m willing to risk, and always take time to reflect on why I’m making a trade in the first place. What I’ve come to understand is that trading isn’t about constant action—it’s about mastering your mind. Compulsiveness can ruin your trading if you let it take over, especially with a volatile ticker like TRUMPUSDT.P, but with self-awareness and discipline, you can get past it. For me, it’s all about trading with intention, keeping my emotions in check, and focusing on long-term consistency instead of short-term thrills. If you found this helpful, keep following me for more educational materials on the psychology of trading. I’ll be sharing more insights and strategies to help you master your mindset and become a more disciplined trader.
Education
by vagada
2
Title: How to Spot Potential Price Reversals: Part 2A subject within technical analysis that many find difficult to apply to their day-to-day trading is the ability to spot reversals in price. Yesterday we posted part 1 of this 2 part educational series, where we used GBPUSD as an example of how you could identify and trade a Head and Shoulders/Reversed Head and Shoulders pattern. In today’s post we discuss a Double Top/Double Bottom, using a recent US 100 example. Our intention is to help you understand why price activity is reversing and highlight how knowledge of this may be applied within your own individual trading strategies. The Double Top Reversal: The Double Top, is formed by 2 distinct price highs. This pattern highlights the potential, • reversal of a previous uptrend in price, into a phase of price weakness • reversal of a previous downtrend in price into a more prolonged period of price strength. In this example, we are going to talk about a bearish reversal in price called a Double Top. Points to Note: A Double Top • An uptrend in price must be in place for the pattern to form. • A Double Top pattern is made up of 2 clear highs and one low, forming a letter ‘M’ shape on a price chart. • This pattern reflects an inability of buyers to push price activity above a previous peak in price, potentially highlighting a negative shift in sentiment and sellers gaining the upper hand. This is regarded as a ‘weak test’ of a previous price failure high and leaves 2 price peaks at, or very close to each other. • A horizontal trendline is drawn at the low between the 2 peaks, which highlights the neckline of the pattern. If this is broken on a closing basis, the pattern is completed, reflecting a negative sentiment shift and the potential of further price weakness. Point to Note: To understand a bullish reversal, known as a ‘Double Bottom’ please simply follow the opposite analysis of what is highlighted above. US 100 Example: In the chart below, we look at the US 100 index and the formation of a Double Top pattern from earlier in 2025. As with any bearish reversal in price, a clear uptrend and extended price advance must have been seen for the reversal pattern to be valid. On the chart above, this was reflected by the advance from the August 5th 2024 low up into the December 16th price high. The Double Top pattern is made up of 2 price highs close or at the same level as each other, with a low trade in the middle, which forms a letter ‘M’ on the chart (see below). In this example above, the highs are marked by 22142, the December 16th and 22226, the February 18th highs, with the 20477 level posted on January 13th represents the low traded in the middle, which helps to form the ‘M’. The Neckline of the pattern is drawn using a horizontal line at the 20477 January 13th low, with the Double Top pattern completed on closes below this level. Potential then turns towards a more extended phase of price weakness to reverse the previous uptrend, even opening the possibility a new downtrend in price being formed. Does the Double Top Pattern Suggest a Potential Price Objective? Yes, it does. This can be done by measuring the height of the 2nd peak in price down to the Neckline level at that time, this distance is projected lower from the point the neckline was broken, suggesting a possible minimum objective for any future price decline. In the example above, the 2nd high was at 22226, posted on February 18th 2025, with the Neckline at 20477, meaning the height of the pattern was 1749 (points). On February 27th the Neckline of the pattern was broken on a closing basis. This means… 20477 – 1749 = 18728 as a minimum potential price objective for the Double Top pattern. Of course, as with any technical pattern, completion is not a guarantee of a significant phase of price movement, with much still dependent on future sentiment and price trends. Therefore, if initiating a trade based on a Double Top pattern, you must ALWAYS place a stop loss to protect against any unforeseen event or price movement. This stop loss should initially be placed just above the level of the 2nd price high, as any break negates the pattern, meaning we were wrong to class the pattern as we did. Hopefully, as prices fall after completion of the pattern, you can consider moving your stop loss lower, keeping it just above lower resistance levels to protect your position and lock in potential gains. While both the Head and Shoulders and Double Top/Bottom patterns can take a prolonged period to form and we must be patient to wait for completion, they reflect important signals indicating potential changes in price sentiment and direction. By understanding how and why these patterns form can offer an important insight to potential price activity that can help to support day to day decision making when deciding on trading strategies. The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research, we will not seek to take any advantage before providing it to our clients. Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.
PEPPERSTONE:NAS100Education
by Pepperstone
Trading Minest. Welcome to the most difficult game in the worldUnfortunately, you will be playing against some of the sharpest, fastest, smartest, most intelligent, well-informed, irrational, and, in many cases, unethical intellects in the world. You are fighting a computer that reacts faster than you. A trader who has more experience than you. A fund that has more money than you. An insider who has more information than you. Others who misinform you. An inner voice that will do everything it can to stop you. So, give up your dreams of making a quick and easy buck. Your first goal is survival. Your first absolute goal is to learn how to stay in the game. You can only do this by marking your territory. By understanding how the competition thinks and acts. By having a clear game plan. And by choosing your attacks very, very carefully. I've been sharing my knowledge on TradingView for years, but I'm sure this post will help you, too. I want to talk about Trading Minest. After I set up a trading firm, I realized that this is the knowledge that most traders lack. 1. Survive at all costs The higher your survival rate, the better trader you'll be. If you disagree with that, you better give your money to me. You don't have a survival instinct. A strong survival instinct is an essential personal quality you must possess. It teaches you to jump out of losing deals and hold on to winning ones with a dead grip. That's what your inner attitude should be. It's essential because trading is all about survival. It's also the essence of our lives. 2. You must be constantly afraid You have to evaluate the opponent. If he is a stone, be water; if he is water, I will be a stone. Maximize objective assessment of your opponent and adapt to him, but most people lack enough fear. And if we don't have fear, we can open any trade. And we won't use stop losses. We're gonna do everything wrong. And lose. I want you to be afraid. Example: If you are not afraid to lose, and we have the same trade, who will choose the more defensive tactic? Whoever thinks I'm not afraid of all this nonsense, I have plenty of money. With that attitude, you will lose. But if I am scared to death, I will use stops, watch what is happening in the market, and calculate my actions. But if a person has no fear, he will act recklessly, and then all of a sudden, bam, bam, and disaster will happen. Many traders have lost money and committed suicide because they had no fear. 3.The ability to win when things aren't going well for you The most essential quality of an athlete is the ability to score points when they need to catch up. You should be able to win when you fall behind or have four losing trades; that is the difference between good traders and bad traders. You say to yourself, "I'm behind; I'm not doing well." And you have a choice to throw up the white flag and give up. Or you can say, "To hell with it. I'm just gonna grit my teeth and get back in the ring and give it my best." That's what your inner attitude should be. You have to be able to win when you're behind. You have to learn how to win when you're in a losing position. That's how you have to set yourself up. Otherwise, you will be in big trouble because no one can avoid losses in market trading. And at some point, you are guaranteed to have a losing trade. Only optimists can trade. You're all so damn optimistic. Because you think you can win a game, many people believe it's impossible. Many people say how much they lost in the market, but if they failed, someone made millions of dollars every year waiting for me to take money from the dealing. You're donating money to people who don't know the basic rules. 4. Use only proven methods Do what works and don't do what doesn't work. Reinforce the strong. Best Regards, EXCAVO _____________________ Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:BTCUSDEducation
by EXCAVO
18
Is There the Best Time to Trade Forex in the UK?Is There the Best Time to Trade Forex in the UK? Grasping the nuances of forex market hours is essential for traders aiming to optimise their strategies. Operating continuously from Sunday evening to Friday night, the currency market accommodates participants across various time zones without being anchored to a singular physical location. For those in the UK, recognising when to engage can dramatically influence outcomes. This FXOpen article discusses the pivotal currency trading sessions that may be optimal for UK-based traders. Understanding Forex Market Hours Understanding currency exchange market hours is crucial for anyone involved in the global foreign exchange market. Although you may already know this, let us remind you. The forex market operates on a 24/5 basis, opening during weekdays and closing at weekends. This round-the-clock trading is possible because it’s not tied to a physical location; instead, it relies on a decentralised network of banks, businesses, and individuals exchanging currencies across different time zones. For traders in the UK, knowing the best forex trading hours can be key to effective trading. The currency market is broadly divided into four main 9-hour-long windows, each starting at different times to cater to traders across the globe. The forex session times UK traders need to be aware of are: - Sydney Session: 9:00 PM GMT - 6:00 AM GMT - Tokyo Session: 11:00 PM GMT - 8:00 AM GMT - London Session: 8:00 AM GMT - 5:00 PM GMT - New York Session: 1:00 PM GMT - 10:00 PM GMT Note that during British Summer Time (BST), some of these times are shifted forward by one hour. These forex market trading times are essential to know, as they indicate when liquidity and volatility are likely to increase, potentially offering favourable market conditions. The Optimal Times to Trade Forex in the UK In navigating currency trading, UK-based traders should be aware of two key sessions: London and New York. These periods are optimal forex market hours in the UK, offering greater volumes, volatility, and liquidity. They’re also the periods that see the most releases for three of the major economies: the UK, Eurozone, and the US. The core forex trading times in the UK are anchored around the London session, which is central to global forex market operations due to London's key position in the financial world. The London trading session time in the UK commences at 8:00 AM GMT (winter time). This period, ending at 5:00 PM GMT (winter time), is pivotal as it accounts for roughly half of the forex transactions globally, making it a prime trading time due to the high liquidity and the potential for more pronounced price movements. Likewise, the London-New York trading session time in the UK can be especially advantageous. It’s a crucial overlapping window occurring from 1:00 PM to 5:00 PM GMT (winter time), offering an avenue for traders seeking to maximise their potential returns due to the surge in activity and high-profile economic releases from the US. During this window, the US stock market opens at 2:30 PM GMT. This secondary opening can also have a notable effect on US dollar-based pairs. Economic Releases and the Impact on Trading Times for UK Traders Economic releases and central bank announcements significantly influence UK forex trading times, often driving prices higher or lower. Many UK economic releases—affecting GBP currency pairs—are scheduled around 7:00 AM GMT. This timing offers traders opportunities to engage in trends post-release during the early hours of the London open. However, some UK data and plenty of Eurozone data are released between 8:00 AM GMT and 10:00 AM GMT, periods typically characterised by increased liquidity and volatility, providing fertile ground for traders. Likewise, many high-profile US economic announcements—non-farm payrolls, inflation statistics and employment data— are made between 1:00 PM GMT and 3:00 PM GMT. Given the US dollar's dominance on the world stage, these releases can present significant trading opportunities. Although activity tends to quiet down after London closes, the late hours of the New York session still offer potential entries, albeit with generally lower volatility and volume. Notably, Federal Reserve interest rate decisions are announced at 7:00 PM GMT with a press conference held after that can cause outsized price movements. The same can be said for the Bank of England and European Central Bank’s interest rate decisions at 12:00 PM GMT and 1:15 PM GMT, respectively, and their subsequent press conferences. The Worst Time to Trade Forex in the UK The worst times to trade forex in the UK often occur after 8:00 PM GMT, during the tail end of New York’s hours, when liquidity and volume significantly decrease. This reduction in activity can lead to less favourable trading conditions, including wider spreads and slower execution times. Additionally, while the Asian session forex time in the UK, partially overlapping with the Sydney session, runs from 11:00 PM to 8:00 AM GMT, it presents challenges for UK traders. Despite offering trading opportunities, especially in Japanese yen, Australian dollar, and New Zealand dollar-based pairs, the volumes during this period are substantially lower compared to the London and New York sessions. The Tokyo session forex time in the UK accounts for particularly unsociable hours anyway, so many UK traders are unlikely to engage in currency trading during this period. Trading the London Session: A Strategy The Asian-London Breakout Strategy leverages the unique dynamics between the calmer Asian session and the volatile London session. It involves setting buy/sell stop orders at the high and low points of the Asian period’s range, aiming to capture movements as London opens at 8:00 AM GMT. With stop-loss orders placed above or below the range and a strategic approach to take profit – either at the end of the London session or by trailing a stop loss during the day – traders can potentially capitalise on the surge in activity. To delve deeper into this strategy and other session-based setups, consider exploring FXOpen’s 3-session trading system article. The Bottom Line Understanding forex trading hours and leveraging optimal times are pivotal for achieving favourable outcomes in currency trading. Luckily, UK-based traders are well placed to take advantage of the many opportunities the currency market presents, given their ability to trade both the London and New York sessions. For UK traders seeking to navigate the complexities of markets with a trusted broker, opening an FXOpen account can provide all of the tools and insights necessary for effective trading. FAQs When Do the Forex Markets Open in the UK? Forex opening times in the UK start at 8:00 AM GMT (winter time) and at 7:00 AM GMT (summer time) when the London session begins, marking the start of significant trading activity due to London's central role in the global currency arena. What Time Does the Forex Market Open on Sunday in the UK? The forex market opens on Sunday at 9:00 PM GMT (winter time) and at 10:00 PM GMT (summer time) in the UK, coinciding with Sydney’s opening and marking the beginning of the trading week. What Time Does the Forex Market Close on Friday in the UK? The forex market closes at 10:00 PM GMT (winter time) and at 9:00 PM GMT (summer time) on Friday in the UK, concluding with the end of the New York session and wrapping up the trading week. Can You Trade Forex on Weekends? Currency trading on weekends is not possible as the market is closed. Trading resumes with the opening of the Sydney session on Sunday at 9:00 PM GMT (winter time) and at 10:00 PM GMT (summer time). This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
US Cash Market Goes 'Flippant'. Understanding Revenge in TradingFirst of all, revenge trading is a destructive pattern of behavior in trading where individuals make impulsive and emotionally-driven decisions in an attempt to recoup previous losses. This practice is not limited to novice traders; even experienced traders can fall prey to it. The primary emotions driving revenge trading include anger, frustration, greed, fear, and shame, which cloud judgment and lead to irrational decision-making. Causes of Revenge Trading Emotional Response: Traders often react emotionally to significant losses, feeling compelled to immediately recover their losses without adequate analysis or strategy. Lack of Discipline: Deviating from established trading plans and risk management principles is common in revenge trading. Psychological Triggers: Feelings of injustice, anger, or a desire for vengeance against the market can trigger revenge trading. Consequences of Revenge Trading Financial Losses: Revenge trading often results in larger losses due to riskier trades and poor timing. Emotional Burnout: The stress and frustration from repeated losses can lead to emotional exhaustion and decreased trading performance. Career Impact: Persistent revenge trading can erode confidence and lead to a trader questioning their abilities. Real-Life Examples of Revenge Trading Increasing Position Size: A trader experiences a significant loss and decides to double or triple their position size in the next trade, hoping to quickly recover their losses. This action disregards risk management principles and often leads to even greater losses. Ignoring Stop-Loss Orders: After a loss, a trader might hold onto a losing position longer than planned, hoping it will turn around. This behavior ignores established stop-loss orders and can result in further financial damage. Chasing Trades: A trader feels compelled to enter trades without proper analysis, driven by the urge to recoup losses quickly. This impulsive behavior can lead to a series of poor trading decisions. Market Reversal Scenario: A trader suffers a loss due to a sudden market reversal. In an attempt to recover, they enter a trade in the opposite direction without thorough analysis, which can exacerbate their losses. Wish more examples? Watch recent one below 👇👇 How to Avoid Revenge Trading To avoid revenge trading, traders should focus on maintaining discipline and adhering to their trading strategies. This includes: Taking Breaks: After a loss, taking time to reassess the market and calm emotions can help prevent impulsive decisions. Sticking to Plans: Adhering to established trading plans and risk management principles is crucial. Emotional Awareness: Recognizing emotional triggers and taking steps to manage them can help prevent revenge trading. In conclusion, revenge trading is a HARMFUL AND DANGEROUS practice that can lead to significant financial and emotional consequences. Understanding its causes and recognizing its signs are essential steps in avoiding this behavior and maintaining a successful trading career. -- Best wishes, @PandorraResearch Team 😎
CME_MINI:NQM2025Education
by PandorraResearch
How to Spot Potential Price Reversals - Part 1: GBPUSD ExampleA subject within technical analysis that many traders find difficult to apply to their day-to-day trading is the ability to spot reversals in price. The misreading of price activity when a reversal is materialising can often lead to incorrect decisions, such as entering a trade too early, which can result in being stopped out of a potentially successful trade before price activity moves in the intended direction. In this piece today, and part 2 tomorrow, we want to look at 2 types of reversal in price – the Head and Shoulders/Reversed Head and Shoulders and the Double Top/Double Bottom. The intention is to help you understand why price activity is reversing and highlight how knowledge of this may be applied within your own individual trading strategies. The Head and Shoulders Pattern This pattern highlights the potential, • reversal of a previous downtrend in price into a more prolonged period of upside strength • reversal of a previous uptrend in price into a phase of weakness In this example, we are going to outline in more detail a bullish reversal in price, which is called a ‘Reversed Head and Shoulders’. Points to Note: Reversed Head and Shoulders • A downtrend in price must have been in place. • A Reversed Head and Shoulders is made up of 3 clear troughs on a price chart. • The middle trough (called the Head) is lower than the 2 outer price troughs (called the Left Hand Shoulder and the Right Hand Shoulder). • The 3rd low in price (Right Hand Shoulder) being higher than the Head, reflects the inability of sellers to be able to break under a previous low in price. This is regarded as a ‘weak test’ of a previous price extreme, suggesting buyers may be gaining the upper hand, readying for a potential positive sentiment shift and price strength. • A trendline connecting highs in price that mark the upper extremes of the Head is drawn. This highlights the Neckline of the pattern, which if broken on a closing basis, completes the reversal, to represent a positive shift in sentiment and the potential of further price strength. Point to Note: To understand a bearish reversal, known as a ‘Head and Shoulders Top’ please simply follow the opposite analysis of what is highlighted above. GBPUSD Example: In the chart below, we look at the recent activity of GBPUSD, which formed a bullish Reversed Head and Shoulders Pattern between December 20th 2024 and February 13th 2025, when the pattern was completed. As with any bullish reversal in price, a clear downtrend and extended price decline must have been seen previously, for the reversal pattern to be valid. On the chart above, this was reflected by the decline from the September 20th 2024 high at 1.3434, into the January 13th price low at 1.2100. The Head and Shoulders pattern is made up of 3 troughs in price and in this example, these are marked by the period between December 30th 2024 to January 7th 2025 which forms the Left Hand Shoulder , between January 7th to February 5th 2025 which was the Head developing , and between February 5th to February 13th 2025, which then formed the Right Hand Shoulder . The Neckline of the pattern is drawn connecting the December 30th 2024 high and the February 5th 2025 highs, which was broken on a closing basis on February 13th 2025. It was on this day, the Reversed Head and Shoulders Pattern was completed with potential then turning towards a more extended phase of price strength. Does the Head and Shoulders offer an Insight into a Potential Price Objective? Yes, it does, by measuring the height from the bottom of the Head to the level of the Neckline at the time that low was posted, we can project this distance higher from the point the neckline was broken. This suggests a possible minimum objective for any future price strength. In the example above, a low of 1.2100 was registered on January 13th 2025, at which time the Neckline stood at 1.2576. This means the height of the Head was 0.0476 (476 pips). On February 13th when the Neckline was broken on a closing basis, the Neckline stood at 1.2529. As such… 1.2529 + 0.0476 = 1.3005, which would be the minimum potential price objective for the Reversed Head and Shoulders. This level was in fact achieved on March 18th 2025. Of course, while the Head and Shoulders pattern is regarded as one of the most reliable patterns within technical analysis, it is not a guarantee of a significant price movement, as much will still depend on future sentiment and price trends. Therefore, if initiating a trade based on a Reversed Head and Shoulders pattern, you must ALWAYS place a stop loss to protect against any unforeseen event or price movement. The stop loss should initially be placed just under the level of the Right Hand Shoulder, as any break of this point negates the pattern, meaning we were wrong to class the pattern as we did. However, if prices rise after completion of the pattern, you can consider moving a stop loss higher, keeping it just under higher support levels to protect your position. We highlighted the formation of the potential GBPUSD reversed Head and Shoulders pattern on February 13th 2025, so please take a look at our timeline for further details. Remember to watch out for tomorrow’s Part 2 post The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research, we will not seek to take any advantage before providing it to our clients. Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.
Education
by Pepperstone
Five powerful trading psychology tips to help youHere are five powerful trading psychology tips to help you cope with losses and stay in the game without giving up: 1. Accept Losses as Part of the Game Losses are inevitable in trading—even the best traders lose. Instead of fearing them, see losses as the cost of doing business and a learning opportunity. Keep a trading journal to analyze your mistakes and improve over time. 2. Control Your Emotions & Stick to the Plan Emotions like fear and greed lead to revenge trading and overleveraging. Set clear rules for stop-losses, position sizing, and risk per trade. Never move your stop loss out of desperation—respect your trading plan. 3. Manage Your Risk Like a Pro Follow the 1-2% risk per trade rule to protect your capital. If you lose small, you can always come back. A good risk-to-reward ratio (at least 1:2 or 1:3) ensures that even a 40% win rate can still be profitable in the long run. 4. Take Breaks & Maintain a Strong Mindset If you experience a streak of losses, step away from the charts for a while. Clear your mind, do something unrelated to trading, and return with a fresh perspective. Trading with a stressed or emotional mindset leads to bad decisions. 5. Focus on the Long-Term Vision Trading success doesn't happen overnight. Many traders blow their accounts because they want quick riches. Instead, focus on consistency, discipline, and skill-building. If you trust the process and stay patient, the results will come. Below is an example of a trading checklist that I follow before I take any trade, this helps me stay disciplined, manage risk, and avoid emotional decisions: ✅ Trading Psychology Checklist 🔹 Before Entering a Trade: ☐ Did I follow my trading plan? (No random trades, only high-probability setups) ☐ Am I trading based on logic, not emotions? (No FOMO, revenge trading, or overconfidence) ☐ Is my risk properly managed? (1-2% risk per trade, proper lot size) ☐ Does this trade have a good risk-to-reward ratio? (At least 1:2 or 1:3) ☐ Did I place my stop loss and take profit before executing the trade? 🔹 While in a Trade: ☐ Am I sticking to my original plan? (No moving stop losses or take profit out of emotions) ☐ Am I avoiding overtrading? (Only taking quality setups, not forcing trades) ☐ Am I managing my emotions? (Staying calm, not panicking over small fluctuations) 🔹 After Closing a Trade: ☐ Did I journal my trade? (Win or lose, record entry, exit, and emotions during the trade) ☐ Did I review what went right or wrong? (Learn from mistakes and improve) ☐ Am I sticking to my daily trading limit? (No excessive trading after wins or losses) ☐ Am I taking breaks and staying mentally refreshed? (Not glued to charts 24/7) Feel free to copy. But remember to support this with a boost if you enjoyed reading it.
TVC:GOLDEducation
by AmaWina
Think Like a Pro: Trade with Discipline, Not Emotion **Taming Greed: The Secret to Long-Term Trading Success** Trading is a battlefield of emotions—**excitement, fear, hope, and greed**. Among them, **greed is the silent killer**, pushing traders to overtrade, overleverage, and chase the market, ultimately leading to disaster. As the saying goes: 📉 **“Bulls make money, bears make money, but pigs get slaughtered.”** **Why Greed is Your Worst Enemy** Fear may hold you back, but **greed pushes you into reckless decisions**. It makes you **ignore your trading plan, risk too much, and hold losing trades for too long**—all in pursuit of bigger gains. But here’s the truth: **The market rewards patience, not desperation.** **How to Keep Greed in Check & Trade Like a Pro** 🔥 **Follow a Strict Trading Plan** A well-defined **plan is your shield against impulsive decisions**. Know your entry, exit, and risk before placing a trade. **Discipline beats greed—every time.** 📊 **Master Risk Management** Avoid the temptation to **bet big for quick gains**. A strong **risk strategy protects your capital** and ensures survival in the long run. The goal isn’t just to win—it’s to stay in the game. ⏳ **Say No to Overtrading** More trades don’t mean more profits—**it usually means more losses**. Trade **with precision, not emotion**. If you’re trading just for the thrill, **you’re gambling, not investing**. **Success = Patience + Discipline** Greed is an illusion—it promises wealth but delivers ruin. The real path to trading mastery lies in **consistency, control, and calculated risks**. 💡 **Trade smart. Stay disciplined. Build wealth the right way.**
FOREXCOM:XAUUSDEducation
by elitetrader9090