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The Right Goals in Trading Which You Must KnowAs I can see, tutorials are not so popular in TradingView if compare them with trading signals. But in spite of this fact, I want to keep sharing my ideas and experience about - How to trade properly in the financial markets. Of course, I can't teach you how to become successful in trading just write for you 10, 20, 30 such posts. Without your wish, you won't be able to become a good trader. Aslo, if you don't want to avoid mistakes reading my posts, it is only your choice. It is your money and how to use them depends on you. What I want - just to push you in the right direction. Show you the alternatives. And I hope for someone it will be the starting point of the proper trading. I will be grateful if you support my tutorials by your LIKEs and comments. It will keep my motivation to share my personal experience here. In my previous post, we talked about goals in trading in the format "Profitable Trading Vs Proper Trading". Get more details in the related ideas. Today, let's talk about goals in trading from another point of view. What is the main goal in trading? What is the 2nd goal in trading? What is the 3rd goal in trading? If I ask you these questions, what will you answer? If you are a novice trader, probably you will tell me that the main goal in trading is to make profit. As for other goals, there will be many different variants. It is logically, and of course, all traders want to use financial markets for making money. But don’t you think that this goal and more than 90% of losers can be related in trading? When you focus only on getting money, you forget or you don't have time to think about other, much more important things. How to protect your capital? How to manage your capital properly? How to trade? How to control emotions? Your main goal is - to make money, a lot of money. You want to become rich as soon as possible. You think only about how to reach this main goal. Become rich very quickly and without efforts. Such an approach can be a reason why many traders lose their money. From my experience, and believe I have a lot of examples, when a novice trader thinks only about profit, he or she is not far from blowing up the capital. As a result, we have more than 90% of failed traders. In order to avoid this situation, I suggest you to change the typical way of thinking. Stop focusing on profit. Start thinking about - how to protect your capital in every single trade. Focus on protecting your capital in the long run. What if you face with 10 wrong trades? What if you face with 20 or maybe 30 wrong trades in a raw? How will you protect your capital? Only after understanding how to do it and after becoming an expert in this field - you will have a chance to succeed. Trading is risky. There are no 100% reliable signals. It means that every trade you open can destroy your capital. That’s why risk and money management are so important in profitable trading. When you start using the right risk and money management strategies, the next step can be like - you need to think about profit. You need to focus on making small but stable profit. How to make 1USD, may be every day or every week? It does not matter. The main goal is to be in profit in the long run. With the right money management and with profitable trading, you will be able to increase the size of profit in the future. But for this period the size is not important. Yes, even 1USD every week, in the long run, must be much better for you than 100 000USD as one-time successful trade. After becoming profitable in the long run, you should think about how to get extra profit. Only after passing the previous steps you can search for very profitable trades, work with increased risk, interesting market conditions just in order to get more than your average profit. Such an approach will help you to manage your money not only properly but also effectively. But when you focus on super-profits from the beginning, you miss all the important steps and elements which must be in your trading. As a result, you do the best for becoming one of failed traders. My list of goals which I would like to recommend: The 1st Goal - Protect Your Capital The 2nd Goal - Make Small but Stable Profit The 3rd Goal - Think about Extra Profit Trading will be profitable for you with this approach. But you can test another one!
BITSTAMP:BTCUSDEducation
by DLavrov
37
Proper Trading Vs Profitable TradingIf I ask you what type of trading you would like to reach, I guess that the majority will pick the profitable trading as the main goal. And it will be not so good. Let’s think together why and discuss it in comments below this post. What does it mean profitable trading? It means that you trade for making money. It sounds like a good goal, of course, but for reaching it, you need to have knowledge and experience or a piece of luck. Novice traders don't want to spend time getting knowledge and experience. They want to start making money as soon as possible. That's why profitable trading as a goal is good for them. Yes, everyone can make a profit in trading. Even without knowledge, even without experience, even without trading plan and trading strategies. You need just a piece of luck for this. Everyone can make profitable trading. But what about making profit day by day, week by week, month by month and year by year? In this case, relying on luck is not a good idea at all. Just one day without luck can destroy all your profit and get all your money. Profitable trading as a goal is not so good if you don't have enough knowledge and experience and very risky without them. What about proper trading? Proper trading means you do the right steps in trading. It means you have the proven trading plan included tested trading strategies, the proper money management strategies. Your work is to follow your trading plan day by day. With such an approach, you will be able to avoid mistakes. You won’t need luck for making profit as your profit will depend only on your trading plan and how you will follow it. It is absolutely another picture, and you can expect stable and profitable trading in the long run - day by day, week by week, month by month. For this, you just need to do the right steps = follow your trading plan. That’s why when we talk about goals in trading, I would like to recommend set the right goals. Learn how to trade properly is one of them. Focus not on profit but focus on your trading. If you do the right steps, profit will come, and it will be stable income in the long run. If you rely on luck in trading, you will fail. It is just the question of time.
BITFINEX:BTCUSDEducation
by DLavrov
10
Forex Education: Stop Repeating Trading MistakesLet's relate our mistakes to Forex education. First things first, it's common sense that mistakes can turn into a positive learning experience. And also, they can help develop our skills while performing a task given to us. But in reality, it appears that learning from errors is hard to achieve because traders do not usually learn from their mistakes. Instead, they just keep on repeating them all over again. Now, for instance, a trader is starting to lose at the day trade, and the trader decided to widen stop loss. However, the trader knows that the decision made was a mistake. But still, the trader continues out of panic and results in doubling the risk. Nevertheless, the trader will go on and will adjust. After that, the trader might add more funds to sustain it longer in the later stage. In the initial journey on the trading industry, this type of dilemma happens frequently. And many traders get trapped in this situation. If a trader can't properly handle emotional stress, and clueless on managing a critical moment, this might result in committing the same mistakes and wrong decisions. The problem is, making mistakes does not happen once. But why do traders keep on repeating them? The answer is simple, and it's the way brain responses to errors. Brain's Responses Furthermore, in Forex Education, one type of response mind does is when making a mistake, in trading or not, is the wake-up call. In here, the problem-solving skills are awakened. Usually, it will process every single detail on what happened and the factors that caused the unwanted situation. Also, in connection to that, there is a phenomenon called post-error slowing. In here, attention sharpens, resulting in a long time to come up with the next step or a solution. Another possible response is the complete opposite of the first one. The brain shuts down completely because it perceives the error as a threat. And to prevent the discomfort feeling the mistake gives, the mind creates its own escape strategy. Usually, this happens to traders who focus more on positive feedback. Now, if you think a brain responded this way, try to rationalize, justify, or selectively omit information that shows something is wrong by attributing the result to external factors. Record Sheet The last topic of this Forex Education is all about noting every mistake. Start by creating a trading error record sheet. Then, make this as a part of a trading journal and jot down every unfortunate event the occurred. But always remember that dwelling in the previous mistakes will never improve a person as a trader. Instead, practicing on how to nurture a higher awareness of inner workings and precise planning is where the improvement starts. Learn everything about the trading market with ProfitStar Forex Trading Online Education. Join us and be a part of our pro-trader team!
Education
by Profit_star
EURGBP, A short trade explained. Price action & Technicals.Ok, going to throw in a little education from a trade I got on earlier. Nothing overly special from this trade. 30 pip move (and counting hopefully, the trade is still running). First of all, I always draw my Fibonacci tool from top to bottom, never bottom to top but I appreciate there are people who do otherwise. So drawing from swing high(0.90517) on the 1H chart, to swing low(0.89571).The fib tool I use is custom if wondering, only 3 levels included. I monitored the price waiting for a strong price action signal for a sell(large pin bar on candle in a down trend) The price moved through the .382 level once before dipping slightly and moving through to the 0.5 level. Notice I did not take the trade when it rejected on the first occasion as there was no strong price action candles. I took the trade on when the candle bar which is circled was closed. Always wait for the right price action!. The risk to reward ratio for this was very good, very little risk. Anything that went through the red highlighted area would have stopped me out, a 15pip stop loss for what I hope to be a 50+ pip move. This may have not been explained well but I will try do better in future, but in summary: 1. Price action - Personally the most important signal when trading. Wait for the correct signal - There are 1000s of trades to take. 2. Technical analysis - In this trade I used the fibonacci tool to identify an area that the price respected and rejected. 3. Money management/Risk reward ratio - Always respect this with every trade. Do not take on trades without ratio being in your favour. When combining the 3 of the above to your advantage you give yourself a chance at gaining from the markets. Thanks!
Education
by Craven64
2
AUDNZD Is Ready for next Move.AUDNZD is in Down channel pattern were in the lower time frame we bet Rising wedge pattern we need to wait for break down the pattern so that we can take them as per the market move everything was mention on the chart. Note one think the market can go further more upside till Down channel pattern resistance line there is really Big Stop loss but if market break downside then it will continue the trend. Note: This is only for Educational Purpose this is not Investment advice. Please support the setup with your likes, comments and by following on Trading View. Share Our Chart on All Social Media. Thanks Adil Khan
Education
by Make_Money_Guru_Bitcoin
7
USING MATH TRICKS ON YOUR CHARTS You can't count cards in casinos, but you can count bars in price action. No matter what pattern you trade, I would bet that if it falls out of of the pattern in less than 5 bars, it's not going to happen, so don't waste your time. Come back to it later. But, if it holds the pattern for 10 bars, it's probably going to continue in the pattern for 20 to 30 more bars. This little trick enables you to estimate how much time to expect your trading pattern to continue which is very useful when you're deciding whether or not you want to take the trade. For example, if you're looking for a range pattern to trade on a short-time frame chart, look for one that has been working the range for 10 bars and you can expect at least 10 to 20 more bars of similar price action. The MACD (Moving Average Convergence Divergence) is another math-hound I love on my charts. It looks at historical prices and gives you a picture of current momentum and direction. MACD crunches numbers on 4 different levels, and that might be hard to do in your head. But, have a look when the MACD line crosses zero, changing from positive to negative polarity, and you'll know the math is telling you something new is happening in the market right now. How does it take historical price numbers and tell us what's happening now or even be predictive of what's going to happen next? Mathematically, of course, it can compare what was happening awhile ago with what the price numbers are doing now, and detect change in the algorithmic patterns. When "change" is viewed as momentum starting to build, that math makes you smarter with your trade entries and exits.
Education
by Tradingstrategyguides
CAN MOVING AVERAGE GIVE CONTEXT TO PRICE MOVEMENTConsider the common situation in Forex when price makes a move for 50 or more pips in one direction. It could be a sudden move covering a large distance in just one or two bars, or it could move steadily over many days. Whether the move surprises you or steadily makes tracks in one direction, it happens that you notice this market might be trending. Will it continue? Or, should you expect it to suddenly reverse? How do you know? Trading is a speculative venture without absolute assurance of timing or direction for the market’s next move, but there is something you can do to stack the odds in your favor. Plotting a moving average gives context to changes in price, and provides a template for planning trades with expectations about what the market will do next. Look at these 2 charts. The first one, without any technical indicators, is a picture of rapid change in price. It would be impossible to know if it’s random, if it’s expected to continue going down, or if it might swing back in the opposite direction. In the second picture, two moving averages give context to that same price action. In the midst of a choppy market where price is jumping up and down over a period of time, the moving averages show me that price is holding to one side, giving me the information I need to know this market is in a down-trend and will be looking for lower lows. Going short is a good bet in spite of the volatility. Moving averages are guides, providing context and making the world of price action look a lot less random.
Education
by Tradingstrategyguides