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Forextrading

TRADING PULLBACKS WITH KELTNER CHANNELTrading Pullbacks with Keltner Channel Trading pullbacks successfully can only be done in the presence of a strong trend. Using the Keltner channel indicator we can study how the price behaves around the upper and lower envelopes to gauge the strength of the trend. As you already learned when the price hugs one of the two bands and crawls along the band, we have a case for a strong trending market. In the chart below we’ve highlighted small retracements while the price hugs the upper Keltner band. Notice that the price retrace to the area around the 20-EMA. It won’t give you an exact price, but a price zone from where the price can potentially bounce and the bullish trend can resume. This remains a good way to measure pullbacks in price. Successful trading doesn’t require catching the exact turning point. For a better timing of our trades we can use the Stochastic RSI indicator in combination with the Keltner indicator for more confluence. The trade trigger is simply to follow with this Keltner Channel pullback strategy. Pull the trigger when the price retraces to the middle band and the stochastic indicator develops a crossover from an oversold territory.
Education
by Tradingstrategyguides
Is Taking Small Profits Bad Habit In Trading?Answer is, it depends! ( no surprise here ;) ) So now let's talk about, it really depends on what factors. What does taking a small profit means? If we talk about Forex trading then, taking anything less than 5 pips of profit is generally considered as small profit where usually people target roughly 30+ pips of gain in normal circumstances ( or taking profit well below the so called risk/reward ratio in range of 1:2 at least or healthy 1:3). Why is it not good? Keep on taking tiny profits compared to the strategy's original profit objective is certainly a path of destruction, sooner or later. For example, your trade plan is to short EURUSD risking $50 and trying to make $100 ( 1:2 risk/ reward ). Here you enter short @1.1350 and expecting the downside of at least 1.12. Now suddenly trade starts moving in another direction and it goes up just near your stop-loss of 1.1400. But luckily trade survives and now it is trading around 1.1350, right where it all started and testing your patience. Now volatility dies down and it just stays there and in the excruciating moments of impatience and despair, you close the trade @1.1348 with great sigh of relief. Here the problem is that if you keep on trading this way then one day, your account will be empty for sure. Because, here taking 2 pips of profit and keeping 50 pips stop-loss guarantees that you are paving the path of ruining your account, unless, you are sure that you are never going to lose a trade in your life! Because simply, just one bad trade will ruin your accumulated profit from 25 trades. So in any scenario where your risk/reward is not optimized with trading strategy, you are never going to win the game. Not all tiny profits are created equal ! If a trade plan is to take 100 pip profit and you have entered the trade from multiple entry points and taking tiny profit whenever market is giving you a good chance to cover tiny positions while keeping the core position active then of course it is good way to keep making money. What's my take. All things which makes your trading rigid are problematic IMHO. Those rigidities can be from anything, e.g. your trade plan is not flexible enough to account for change in circumstances, fixed entries, fixed exits and fixed stop-loss are equally harmful. Especially in current atmosphere of very low volatility and lack of meaningful long lasting 1000 pip trends, it is imperative to take small profits and there is a way to do it!. My own trading style is neither purely positional nor quick technical trading, it is kind of combination of many things. One thing to keep in mind is that most important thing is the 'Strategy' and everything else should evolve around it and not vice-versa. Because if you decide that my stop-loss is just 30 pip fixed and bla bla bla then you lose the flexibility in trading. A strategy should be in accordance with your personality, so that it keeps you at peace and in rhythm. Everybody's risk tolerance and personality traits are different and so are the trading styles. Copying some so called pundit's advice ( who him/her-self is not making money from trading ) of ideal trade plan and all other nonsense is totally useless. These preachers have put on so much BS all around that the beginner trader is surely going to be lost. To be a better trader, listen to eveybody but copy nobody. Keep knocking different doors until you find that magic! My take is - One learns from one's own inner quest. Trading is transcendental. The more you know yourself, the better trader you become. Everyone can be a good trader but very few will because, few are ready, prepared and patient to toil to find the true depth :)
Education
by BombayBulls
KNOW WHAT TO LOOK FOR IN A RANGE PATTERNThe market is working a range pattern the majority of the time which is good news if you know what to look for. Range patterns are full of information that will help you anticipate what comes next, so you can trade. Here are 3 examples that will make you chart smarter! The first chart is my personal favorite range pattern. When you see a well established range, watch for price to "overshoot" your expected high or low. When that happens, get ready! As soon as it goes past the expected high or low, place pending orders to sell from the top or buy from the bottom. If price comes back to the range, it will come back fast! The 2nd chart is an example of past performance predicting future price movement. During a range pattern, look back 15 bars from the middle of the range, and anticipate the market moving that far in the opposite direction. In this example, the solid arrow is predictive of the dashed arrow. The last chart is an example of how the typical slow or no momentum you would expect is happening in the middle third, shaded in orange. To and from the outer edges of the range, momentum shows up.
Education
by Tradingstrategyguides
TIPS FOR RANGE TRADINGRanges contain elements of certainty which are rare in a speculative industry. With previously established highs and lows, you can anticipate where the market is likely to hold, change direction or stop all together. 5 interesting facts about range patterns when charting price action. 1 - The range pattern is good for traders who are terrible at cutting their losses. The nature of a range is to not make progress in one direction, so this is the best pattern to trade if you don’t like taking your stops. If the market moves against your open trade during a range, your patience may be rewarded, because chances are price will swing back in your direction. 2 - Ranges contain areas where you can expect momentum. That sounds like a contradiction, right? It's not. You can expect the typical slow market condition in a range, but only in the middle third of the range space. Count on momentum showing up when it runs to and from the outer edges of the range. 3 - Past performance predicts future movement. You’ve heard it - you’ve probably even said it - “Past performance is no guarantee of future results.” However, when it comes to range patterns, I keep track of where price has been in the past 15 bars. Do the math because that’s exactly how far you can expect price to move in the opposite direction in the next 15 bars. 4 - After a trend, it only takes 7 bars of time in the range pattern to tell me which direction is coming next. Add the 50 simple moving average to your chart. If price crosses that line and stays below it for more than 7 bars, it’s probably not going to return to the trend any time soon. 5 - The best range trades happen when your expected high or low is suddenly obliterated. Huh? It's true, and this is my secret weapon in trading. If price breaks out of a well established range pattern, immediately place pending orders to trade in the opposite direction. If price fails the breakout (which it usually does), it comes barreling back through the range pattern, and those trades move into profit very quickly.
Education
by Tradingstrategyguides
2
Daytrading Leverage Strategy for Bigger Accounts on Forex[R:R 3]Hello everyone, Many of you wonder how it feels to trade bigger accounts, and keeping it short: stop thinking punctual. Whenever you think I'm buying HERE and getting out exactly THERE. Forget it, never again. There's simply not enough volume for your positions - so what you do? You break it up and you start thinking the final average price. You stop thinking on static numbers and you start considering regions for entry and exit. Larger institutions take WEEKS to close their positions, so I think you get my groove here. It's hard to think tops and bottoms when you need to buy and enter all over the place - the art of market making(but that's a whole other story). So when I started struggling with such a problem, all my strategies were basically at their maximum capital capacity. The main symptom was that my entry limit orders were being filled partially all the time. Since I'm a very thrill guy when it comes down to the strategies I like to have every single step very well written before I start opening positions. Not only entry and exit points but also position sizing are crucial for me. The solution was to break my position in smaller positions that I called ACU's. Let's say we have a 10% ACU, that means that each ACU that I buy that is equivalent of 1/10 of the total position size I initially wanted. The second step was changing my algorithms to things that triggered more often across a zone and not super price and solid signals that trigger only once. So now I'm buying a little bit here and there, with the goal of having a better final average price. Another secret factor for success here is being quick on or fingers or if you're tech savvy enough getting an execution bot for you. Which means you can further break your ACU's across a buying zone. Let's say your buy-zone goes from 1 to 2, you will spread your ACU close to what I'll explain next. Imagine something around 10% of 10% of your total position size, yes only 1% of total Because you will break your ACU in 10 smaller positions across the 1~2 range, similar to this Buy 10% ACU at 1 Buy 10% ACU at 1.1 Buy 10% ACU at 1.2 ... Buy 10% ACU at 2 I know it sucks and it takes time, but the more you break your position is better and I'll tell you why. BECAUSE IT GUARANTEES YOU THE BEST POSSIBLE ENTRY PRICE. The price hardly ever go all the way down to the bottom of the range and if does your avg price will be 1.5 But let's work with MOST of the times, that the lowest it goes on your buy-zone is around 1.3-1.7 It will always allow you to catch the best avg entry price, I know some of your limit orders won't be filled but this makes the risk a lot smaller for you, so be patient and master your greed. This also allows the usage of leverage since operating like this makes you REALLY hard to get liquidated, the tools and the settings I used on Spectro M2 are Xconf on aggressive mode(arrows above/under candles), Spectro Warnings on Moderate(gray warnings), Adaptative Fibonacci Levels( pivot levels) & Scalper Exhaust Reversal Tool(blue background). Also to make the stop-loss rules clear: If the price just touched #1 Target - Do nothing If the price just touched #2 Target - Move up one level If the price just touched #3 Target - Move up SL to #1 target If the price just touched #4 Target - Move up SL to #2 target if you think there will be a break-out otherwise close your position Let me know if you have any doubts!
Education
by spectertrading
2
Secrets to Become a Successful TraderSecret #1: Stick to ONE strategy. Find a strategy that makes sense to you and stick to it and it alone like a faithful wife and master it. This is probably the single greatest secret in all of trading. Master ONE strategy. There are no “systems” only strategies that work if you master them. If you jump around from one to another you will never master anything and be forever locked in the sucker’s dream of “the system” or the “Holy Grail” of trading. The truth is, all strategies work for the ones using them if they will learn to master them. Secret #2: YOU are the main secret in trading. You are the greatest secret in trading. You have been gifted with the fastest computer known to man at your birth and you have the ability to learn, adapt and modify everything you see and come into contact with. The way you “see” things is very different than the way other’s “see” things. If you can master “you” and your emotions about trading (talked about in another of the “secrets), you WILL become successful. And that leads us to secret #3. Secret #3: Simpler is better. Simpler is always better. The more complex a strategy is, the harder to learn it will be and the easier it will be to make mistakes that will shake your confidence, slow you down and cost you, possibly, years in mastering trading. Anyone who says differently probably has a “system” to sell you. Secret #4: Accept the “numbers game” view of it. Mastering trading is not hard. It’s just an issue of accepting the “numbers game” of it all. All things have a “probability” ratio or a “numbers game” that creates the success of the effort. Whether it’s sports, industry, sales or trading, there is a “numbers game” behind it all. The more you can find an “edge” something you can exploit, the faster you will become will become consistent at your effort and that consistency leads to success. Secret #5: Master yourself, master your trading. Your own emotions are the only real “enemy” in all of trading. Brokers who manipulate price feeds cannot defeat you. Market makers who charge large spreads cannot defeat you. The news cannot defeat you. Changing markets cannot defeat you. Greed is extremely deceptive. It’s not wanting to have large accounts, it’s not wanting to be wealthy. In trading, greed is none of the normal things you are taught it is. In trading, it’s wanting to get that next point when the strategy says your done. It’s wanting 30 points when the strategy’s rules say 15 is enough. It’s wanting to swing for the fences on every single trade. Greed is not being willing to take it slow and allow it to grow. It’s not allowing compounding to work and wanting to have it “now.” Fear will kill your trading and add years to your effort of being successful. The rules of any strategy are designed to take the emotions out of your trading. Allowing yourself to “second guess” the rules is fear. Not taking a trade instantly on the signal is fear. Exiting a trade before the rules call for is fear. Anything that keeps you from following your rules is fear and it short circuits all of your efforts and all of your training and adds years to your trading and robs you of success. You must eliminate it from your trading. Revenge will destroy you as well. You are not the target of any great conspiracy and the market couldn’t care less about your trade or your position. The brokers may want you to be a victim, but trading out of a desire for revenge will skew your thought and twist what you “see” on the charts. It will defeat you as will greed and fear. Arrogance will destroy you just as fast as either of these others. Trading from the perspective of any emotion will kill your trading. Arrogance will do it just as fast as greed, fear or revenge. You are NOT mistake proof. Even IF you believe you have mastered a strategy, any strategy you will still make mistakes. Arrogance will lead you to even bigger mistakes, then to revenge to try to make up for it, then to greed to try to get “just a little more” so you can earn back what you lost. Complacency threatens to bite you after a few good trades. Suddenly you feel bulletproof, and the next thing you know you’ve made lazy mistakes, abandoned the rules that got you in those good trades, and you’re handing back the money you earned. Each trade has nothing to do with the one before and needs just as much attention, caution and care. Secret #6: There are no makeup trades. Trade each trade and each session as if it were the only one. Yesterday is gone and does not deserve to be remembered in trading. The only thing that exists in successful, consistent trading is the trade you are about to place. Make it the best on possible and forget the past so your emotions don’t have a place to take hold on you. Secret #7: Persistence and attitude will overcome everything. If you believe you can do this, you can. If you do not believe that, quit now. Nothing can stop or defeat you but you. That is true of everything in life, not just trading. It does however apply specifically to trading. Never ever listen to anyone who says you can’t trade. Secret #8: If it’s not boring, you are NOT trading correctly. People love excitement and things that are interesting. SOLID trading is exceptionally boring. One of the hardest battles you will fight is to just trade and not try to “fix it” or “improve it.” or worse, get impatient and “wing it”. Secret #9: Some days you just have bad days! Every single athlete of any sport in any age has faced the “gremlins” of a bad day when for no apparent reason, someone whose skill and physical prowess are not even close simply trashes them. There are no reasons, to rationales, no analysis that can stop it. It will happen, but you can limit it! Trading is no different. This is the reason for rules. They are to supersede your mind, instincts, emotions and all of your efforts to overcome it, which runs counter to everything we have ever been taught in life. STOP! Walk away when you start violating ANY rules, ESPECIALLY the 6 winning trades and STOP or the THREE LOSS and STOP rules! If you’re ever, ever, tempted to not set stop losses as you’re sure the market’s going your way, STOP TRADING AND WALK AWAY. If you have positions that are open without stops, close them immediately, even at a loss, and shutdown your computer. If you keep trading you will undo days, weeks of hard work in one session. LEARN to limit your arrogance and pride of how good you have become, or how good your strategy is. LEARN to limit your losses! Follow the RULES!
Education
by TheFalconTraderOfficial
1
GBPAUD potential Head and shoulder pattern GBPAUD May give us a great sell opportunity if the price break the Head and shoulder neck line. for who don't know what is the Head and shoulder Pattern it is > One of the most popular Chart Pattern. This pattern appears on all times frames and can therefore you can use it if you are a swing trader or a Daily trader. Formation of the pattern 1. Up trend 2. It is formed by a peak (shoulder), followed by a higher peak (head), and then another lower peak (shoulder). 3. The neckline is drawn by connecting the lowest of the two troughs Entering: when the price break the neckline Stop loss: above the right shoulder Target: calculate a target by measuring the high point of the head to the neckline.This distance is approximately how far the price will move after it breaks the neckline. Don't Forget to follow and Like if this article have any value for you. Good Luck
Education
by IhabMax
The Secrets to Successful TradingSecret #1: Stick to ONE strategy. Find a strategy that makes sense to you and stick to it and it alone like a faithful wife and master it. This is probably the single greatest secret in all of trading. Master ONE strategy. There are no “systems” only strategies that work if you master them. If you jump around from one to another you will never master anything and be forever locked in the sucker's dream of “the system” or the “Holy Grail” of trading. The truth is, all strategies work for the ones using them if they will learn to master them. Secret #2: YOU are the main secret in trading. You are the greatest secret in trading. You have been gifted with the fastest computer known to man at your birth and you have the ability to learn, adapt and modify everything you see and come into contact with. The way you “see” things is very different than the way other's “see” things. If you can master “you” and your emotions about trading (talked about in another of the “secrets), you WILL become successful. And that leads us to secret #3. Secret #3: Simpler is better. Simpler is always better. The more complex a strategy is, the harder to learn it will be and the easier it will be to make mistakes that will shake your confidence, slow you down and cost you, possibly, years in mastering trading. Anyone who says differently probably has a “system” to sell you. Secret #4: Accept the “numbers game” view of it. Mastering trading is not hard. It's just an issue of accepting the “numbers game” of it all. All things have a “probability” ratio or a “numbers game” that creates the success of the effort. Whether it's sports, industry, sales or trading, there is a “numbers game” behind it all. The more you can find an “edge” something you can exploit, the faster you will become will become consistent at your effort and that consistency leads to success. Secret #5: Master yourself, master your trading. Your own emotions are the only real “enemy” in all of trading. Brokers who manipulate price feeds cannot defeat you. Market makers who charge large spreads cannot defeat you. The news cannot defeat you. Changing markets cannot defeat you. Greed is extremely deceptive. It's not wanting to have large accounts, it's not wanting to be wealthy. In trading, greed is none of the normal things you are taught it is. In trading, it's wanting to get that next point when the strategy says your done. It's wanting 30 points when the strategy's rules say 15 is enough. It's wanting to swing for the fences on every single trade. Greed is not being willing to take it slow and allow it to grow. It's not allowing compounding to work and wanting to have it “now.” Fear will kill your trading and add years to your effort of being successful. The rules of any strategy are designed to take the emotions out of your trading. Allowing yourself to “second guess” the rules is fear. Not taking a trade instantly on the signal is fear. Exiting a trade before the rules call for is fear. Anything that keeps you from following your rules is fear and it short circuits all of your efforts and all of your training and adds years to your trading and robs you of success. You must eliminate it from your trading. Revenge will destroy you as well. You are not the target of any great conspiracy and the market couldn't care less about your trade or your position. The brokers may want you to be a victim, but trading out of a desire for revenge will skew your thought and twist what you “see” on the charts. It will defeat you as will greed and fear. Arrogance will destroy you just as fast as either of these others. Trading from the perspective of any emotion will kill your trading. Arrogance will do it just as fast as greed, fear or revenge. You are NOT mistake proof. Even IF you believe you have mastered a strategy, any strategy you will still make mistakes. Arrogance will lead you to even bigger mistakes, then to revenge to try to make up for it, then to greed to try to get “just a little more” so you can earn back what you lost. Complacency threatens to bite you after a few good trades. Suddenly you feel bulletproof, and the next thing you know you've made lazy mistakes, abandoned the rules that got you in those good trades, and you're handing back the money you earned. Each trade has nothing to do with the one before and needs just as much attention, caution and care. Secret #6: There are no makeup trades. Trade each trade and each session as if it were the only one. Yesterday is gone and does not deserve to be remembered in trading. The only thing that exists in successful, consistent trading is the trade you are about to place. Make it the best on possible and forget the past so your emotions don't have a place to take hold on you. Secret #7: Persistence and attitude will overcome everything. If you believe you can do this, you can. If you do not believe that, quit now. Nothing can stop or defeat you but you. That is true of everything in life, not just trading. It does however apply specifically to trading. Never ever listen to anyone who says you can't trade. Secret #8: If it's not boring, you are NOT trading correctly. People love excitement and things that are interesting. SOLID trading is exceptionally boring. One of the hardest battles you will fight is to just trade and not try to “fix it” or “improve it.” or worse, get impatient and “wing it”. Secret #9: Some days you just have bad days! Every single athlete of any sport in any age has faced the “gremlins” of a bad day when for no apparent reason, someone whose skill and physical prowess are not even close simply trashes them. There are no reasons, to rationales, no analysis that can stop it. It will happen, but you can limit it! Trading is no different. This is the reason for rules. They are to supersede your mind, instincts, emotions and all of your efforts to overcome it, which runs counter to everything we have ever been taught in life. STOP! Walk away when you start violating ANY rules, ESPECIALLY the 6 winning trades and STOP or the THREE LOSS and STOP rules! If you're ever, ever, tempted to not set stop losses as you're sure the market's going your way, STOP TRADING AND WALK AWAY. If you have positions that are open without stops, close them immediately, even at a loss, and shutdown your computer. If you keep trading you will undo days, weeks of hard work in one session. LEARN to limit your arrogance and pride of how good you have become, or how good your strategy is. LEARN to limit your losses! Follow the RULES!
Education
by TheFalconTraderOfficial
FOREX: Considering the exchange ratioThe last few days has brought home some important insights about of currency pairs. The pair is a ratio of demand of one currency over another. I couldn't go into every aspect of this in the video in just 10 min. Based on my observations (which are not rules): 1. All pairs quoted in US-Dollars are vulnerable, as the Dollar heads south around this time. 2. Pairs with a ratio of less than 1, quoted in US-Dollars eg. AUDUSD and NZDUSD are more vulnerable due to serious fluctuations of the US-Dollar. 3. Pairs with a ratio of >1 are less vulnerable to the US-Dollar. 4. USDCAD is problematic for anyone wishing to go long at this time because USD is heading south, price of oil is heading north (which tends to push CAD up). So the ratio is expected to come under bearish pressure around now. 5. Pairs based on EUR are under bearish pressure. But EURJPY is heading north around now because the Yen weakened largely due to recent stock market moves north. 6. Pairs quoted in Yen are likely to be pretty volatile as stockmarkets bounce around. The above observations are bound to be correct, as they are just my broad observations limited to the last week and probably the next two weeks . I'm not interested in correlations.
Education
by Captain_Walker
The Secrets to TradingSecret #1: Stick to ONE strategy. Find a strategy that makes sense to you and stick to it and it alone like a faithful wife and master it. This is probably the single greatest secret in all of trading. Master ONE strategy. There are no “systems” only strategies that work if you master them. If you jump around from one to another you will never master anything and be forever locked in the sucker's dream of “the system” or the “Holy Grail” of trading. The truth is, all strategies work for the ones using them if they will learn to master them. Secret #2: YOU are the main secret in trading. You are the greatest secret in trading. You have been gifted with the fastest computer known to man at your birth and you have the ability to learn, adapt and modify everything you see and come into contact with. The way you “see” things is very different than the way other's “see” things. If you can master “you” and your emotions about trading (talked about in another of the “secrets), you WILL become successful. And that leads us to secret #3. Secret #3: Simpler is better. Simpler is always better. The more complex a strategy is, the harder to learn it will be and the easier it will be to make mistakes that will shake your confidence, slow you down and cost you, possibly, years in mastering trading. Anyone who says differently probably has a “system” to sell you. Secret #4: Accept the “numbers game” view of it. Mastering trading is not hard. It's just an issue of accepting the “numbers game” of it all. All things have a “probability” ratio or a “numbers game” that creates the success of the effort. Whether it's sports, industry, sales or trading, there is a “numbers game” behind it all. The more you can find an “edge” something you can exploit, the faster you will become will become consistent at your effort and that consistency leads to success. Secret #5: Master yourself, master your trading. Your own emotions are the only real “enemy” in all of trading. Brokers who manipulate price feeds cannot defeat you. Market makers who charge large spreads cannot defeat you. The news cannot defeat you. Changing markets cannot defeat you. Greed is extremely deceptive. It's not wanting to have large accounts, it's not wanting to be wealthy. In trading, greed is none of the normal things you are taught it is. In trading, it's wanting to get that next point when the strategy says your done. It's wanting 30 points when the strategy's rules say 15 is enough. It's wanting to swing for the fences on every single trade. Greed is not being willing to take it slow and allow it to grow. It's not allowing compounding to work and wanting to have it “now.” Fear will kill your trading and add years to your effort of being successful. The rules of any strategy are designed to take the emotions out of your trading. Allowing yourself to “second guess” the rules is fear. Not taking a trade instantly on the signal is fear. Exiting a trade before the rules call for is fear. Anything that keeps you from following your rules is fear and it short circuits all of your efforts and all of your training and adds years to your trading and robs you of success. You must eliminate it from your trading. Revenge will destroy you as well. You are not the target of any great conspiracy and the market couldn't care less about your trade or your position. The brokers may want you to be a victim, but trading out of a desire for revenge will skew your thought and twist what you “see” on the charts. It will defeat you as will greed and fear. Arrogance will destroy you just as fast as either of these others. Trading from the perspective of any emotion will kill your trading. Arrogance will do it just as fast as greed, fear or revenge. You are NOT mistake proof. Even IF you believe you have mastered a strategy, any strategy you will still make mistakes. Arrogance will lead you to even bigger mistakes, then to revenge to try to make up for it, then to greed to try to get “just a little more” so you can earn back what you lost. Complacency threatens to bite you after a few good trades. Suddenly you feel bulletproof, and the next thing you know you've made lazy mistakes, abandoned the rules that got you in those good trades, and you're handing back the money you earned. Each trade has nothing to do with the one before and needs just as much attention, caution and care. Secret #6: There are no makeup trades. Trade each trade and each session as if it were the only one. Yesterday is gone and does not deserve to be remembered in trading. The only thing that exists in successful, consistent trading is the trade you are about to place. Make it the best on possible and forget the past so your emotions don't have a place to take hold on you. Secret #7: Persistence and attitude will overcome everything. If you believe you can do this, you can. If you do not believe that, quit now. Nothing can stop or defeat you but you. That is true of everything in life, not just trading. It does however apply specifically to trading. Never ever listen to anyone who says you can't trade. Secret #8: If it's not boring, you are NOT trading correctly. People love excitement and things that are interesting. SOLID trading is exceptionally boring. One of the hardest battles you will fight is to just trade and not try to “fix it” or “improve it.” or worse, get impatient and “wing it”. Secret #9: Some days you just have bad days! Every single athlete of any sport in any age has faced the “gremlins” of a bad day when for no apparent reason, someone whose skill and physical prowess are not even close simply trashes them. There are no reasons, to rationales, no analysis that can stop it. It will happen, but you can limit it! Trading is no different. This is the reason for rules. They are to supersede your mind, instincts, emotions and all of your efforts to overcome it, which runs counter to everything we have ever been taught in life. STOP! Walk away when you start violating ANY rules, ESPECIALLY the 6 winning trades and STOP or the THREE LOSS and STOP rules! If you're ever, ever, tempted to not set stop losses as you're sure the market's going your way, STOP TRADING AND WALK AWAY. If you have positions that are open without stops, close them immediately, even at a loss, and shutdown your computer. If you keep trading you will undo days, weeks of hard work in one session. LEARN to limit your arrogance and pride of how good you have become, or how good your strategy is. LEARN to limit your losses! Follow the RULES! IF YOU'RE LOOKING TO GET STARTED IN MASTERING THE FOREX THEN START WITH MY FREE COURSE: falcon-trading-academy.teachable.com
Education
by ajwadsaleem
Education post 9/100 – How to trade double top pattern?The double top pattern is one of the most common technical patterns used by Forex traders. It’s certainly one of my go-to methods of identifying a potential top. Just as the name implies, this price action pattern involves the formation of two highs at a critical resistance level. The idea that the market was rejected from this level not once, but twice, is an indication that the level is likely to hold. However, as simple as that may sound, there are a few critical things that must be present for this topping pattern to be useful (and profitable). By the time you finish with this lesson, you will know exactly how to identify a double top as well as how to enter and exit the pattern to maximize profits.
Education
by GroundStoneHoldings
Three things Mark Douglas taught me. (Pt2) Risk & Money Management Risk management, in my opinion, is equal in importance to psychology because it allows your trading strategy/edge to play out by keeping you in the market equity wise. There really isn’t much to risk management other than its number one rule, never risk more than 1% per trade. Risking one percent per trade allows your trading system to take losses and have drawdowns but not enough to the point that you won’t be able to get out of it. I’m actually not a big fan of risk so I place trades using less than 1% of my capital. A lot of traders would think risking .75% per trade based off of my trading strategy is ludicrous but to me, it makes a lot of sense. As a trend follower, I take multiple small losses and few big winners that make double, triple, or quadruple, the loss. Trend following is very difficult because of the multiple small losses but definitely pays off because it lets your winners run. Big winners and small losses are definitely a trader’s best friend because it allows you to have a high risk reward ratio. If you risk $1 per trade, your goal is to make at least $4 back. If you constantly trade looking for 4x your risk all you need to do is win more than 20% of the time to be profitable. (Ex: Win 1 trade=$4 Lose 4=$4=0) .To be profitable you have to win more than 1/5 trades or 20%. With that being said, risk management gets even better when you use money management. As you can tell from the title, money management and risk management are two different things in my opinion. This wasn’t always true though. The old me would've said risk management and money management are the same exact thing but now that I know what I know now, I completely disagree. Money management to me is where you spread your risk to give yourself an even bigger edge. To illustrate, let’s look at the example shown here. According to my trading strategy my risk would be .75% of my equity on this trade but I would "spread the .75%" by taking it and dividing it into six trades instead of placing it on one. Let’s say I have $1000 in my trading account with .75% of $1k being $7.5. I would take the $7.5 and divide it into six or $1.25 per trade. My trading system would've told me to take buy limit trades at 1.66308 and 1.66815 at .005 lots (possible through Oanda) at 25 pips stop loss. Unfortunately the trades would’ve been a loss of $2.50 total or -.25% but because I'm spreading the risk I would still be able to enter four more trades. The remaining four would be a buy stop at 1.6654, 1.67068, and two at 1.67980 in anticipation of price closing at 1.68300 for us to take profit. If we were to follow our trading plan and disregarded negative psychological energy, our end profit would be as follows: -$1.25, -$1.25, +8.73, $5.90= Total profit $12.13 or 1.2% gain.
Education
by ElieTheForexTraitor
5
Three things Mark Douglas taught me. (Pt1)Psychology Psychology, like anything in life, plays a big role on how humans function. It affects the way we think, act, talk, and so on but when it comes to trading it affects us, oddly enough, in only one way and that’s through our emotions. Any experienced (or shall I say inexperienced) trader knows and understands the waves of overwhelming emotions that resonates based off of a trade that’s a loser. These emotions range from sadness, depression, anger, and the list goes on. The reason for this, if I’m not mistaken, is because of the pure fact that the money we use to trade with is hard earned and even when it’s not it’s something that rightfully belongs to us. Human nature is something that’s extremely difficult to change because it's part of our genetic make-up that has allowed us to stay for so long by encouraging us to stay away from things that we don’t understand or that will hurt us. Trading psychology is definitely the hardest thing to master when it comes to trading because your psyche works against you when you're being hurt mentally (losing trades) and works for you when you're euphoric (winning trades). As if this couldn’t get any worse, a hurting mentality will tap you into a pool of past failures or misfortunes that have happened to you in life and convince you to think you're not any good as a trader and that your strategy is useless. This baffled me when I learned this from Mark Douglas because it wasn’t something that I realized. This fact is very important because it means you and only you alone are able to break this cycle of assuming a bad trade means a bad setup. A losing trade has absolutely no correlation to you as a person so you shouldn’t assume that you're the reason why you have a losing trade. According to Mark Douglas, it only takes one person around the world to negate your edge. This basically means that when you're buying, someone around the world is selling. When there are more bears (sellers) than buyers (bulls) you're long trade is no longer able to be profitable and stops you out depending on your risk. The markets are full of newcomers and unprofitable traders that agree on the wrong thing together and thus makes the impossible or improbable possible. This gets even more tricky because it makes you, the person on the other side of the trade, feel unsuccessful. This is not true! A losing trade does not represent a bad setup but because our phycology wants to protect us from losing money (what hurts us) it tricks us into thinking that we are unsuccessful as traders. The solution to this is to simply accept the risk of the trade by trading a strategy or setup that is profitable through backtesting. Mr Douglas implored that back testing should be done through 20 trade sample size to give accurate results. When I first started trading back in late 2016 I would always hear profitable traders talk about trading psychology and not trading strategies. I never knew why until I tool Mark Douglas’ principals into consideration and for that I am grateful. (see pt2)
Education
by ElieTheForexTraitor
"BULL FLAG"Hello! I start my EDUCATION Lessons with a "Bull Flag" chart pattern! A flag pattern is a trend continuation pattern, appropriately named after it’s visual similarity to a flag on a flagpole. A “flag” is composed of an explosive strong price move that forms the flagpole, followed by an orderly and diagonally symmetrical pullback, which forms the flag. When the trendline resistance on the flag breaks, it triggers the next leg of the trend move and the stock proceeds ahead. What separates the flag from a typical breakout or breakdown is the pole formation representing almost a vertical and parabolic initial price move. Flag patterns can be bullish or bearish . This pattern starts with a strong almost vertical price spike that takes the short-sellers completely off-guard as they cover in a frenzy as more buyers come in off the fence (Flagpole). Eventually, the price peaks and forms an orderly pullback where the highs and lows are literally parallel to each other, forming a tilted rectangle . Upper and lower trendlines are plotted to reflect the parallel diagonal nature. The breakout forms when the upper resistance trend line breaks again as prices surge back towards the high of the formation and explode through to trigger another breakout and uptrend move. The sharper the spike on the flagpole, the more powerful the bull flag can be. Additionally, this consolidation will retrace a small portion of the previous uptrend. If the retracement becomes deeper than 50%, it may not be a flag pattern . Ideally, we’ll see the retracement be less than 38%. Since this is a continuation pattern, we look for prices to break higher with a length equal to the size of the flagpole. The tighter the flag - the more powerful it is! Don't forget to SHARE this, hit the LIKE and the FOLLOW button if you feel this topic deserves it! That's the best way to support me and help to push this analysis to other users. Best regards!
Education
by VaidoVeek
7
The "Scalping Pro" strategy Shows the price reversal point BTCHi Friends ! I decided to show how my strategy works on large timeframes and crypto-pairs . Quite well shows the turning point of the price, you can make both short and long transactions . The strategy consists of three indicators. ""Scalping Pro 1,2,3" can be run on the free version of the site . below are screenshots with more detailed recommendations . Entry point. false signal as to act. Anyone interested in my strategies, write me a private message, I will tell you how to get a strategy " Scalping Pro" I also conduct training and advice on trading .
BITFINEX:BTCUSDEducation
by Andreev_Mikhail
4
Strategy for Binary options and Forex 70-80% of positive tradesScalping strategy working timeframe not lower 5M (15M,30M) gives 20-25 signals per working day on average. is in currency pairs EUR-USD , GBP-USD , USD-JPY ,EUR-NZD, BTC-USD . and other currency pairs Expiration time 5 min (1 candle) in more detail in the description of the script. Wishing to test strategy write in personal messages. below is an example for 5m Statistics for the week 58+ 18- =40+ profit. 26.03 27.03 28.03 29 03 30.03
Education
by Andreev_Mikhail
2
Working strategy for Binary options.Forex . statistics for weekScalping strategy working timeframe 5M gives 20-25 signals per working day on average. is in currency pairs EUR-USD, GBP-USD , USD-JPY , BTC-USD . and other currency pairs Expiration time 5 min (1 candle) in more detail in the description of the script. Wishing to test strategy write in personal messages. below is an example for 5m Statistics for the week 58+ 18- =40+ profit. 26.03 27.03 28.03 29 03 30.03
Education
by Andreev_Mikhail
1
Top 5 Risk Management RulesTop 5 Risk Management Rules: 1. Only Trade with Risk Capital -Risk Capital is the amount of money you are willing to lose and do not include your living capital into your trading account! 2. 2% Risk Management -The 2% Rule prohibits you from risking more than 2% of your account equity on each trade you are entering. 3. 6% Risk Management -The 6% Rule prohibits you from opening any new trades when your current open risks in your open trades reach 6% of your account equity. 4. 10% Risk Management -The 10% Rule prohibits you from opening any new trades for the rest of the month when the sum of your losses for the current month and the risks in open trades reach 10% of your account equity. 5. Risk to Reward Ratio -Only take the trades which provide you at least 1:2 Risk to Reward Ratio
AMEX:SPYEducation
by YongLiang
Top 10 Trading Psychology RulesTop 10 Trading Psychology Rules: 1. Plan the Trade & Trade the Plan -Plan all the potential trades beforehand, and trade accordingly with your plans 2. Always be Disciplined -Do not create excuses to break your own trading rules 3. Expect Losses -Do not take a trade unless you are willing to accept the risk 4. Emotion Management -Always analyze your trade objectively and with a neutral of mindset 5. Focus on Trading Well -As a trader, your focus is on making the good trades, not focus on making the money 6. Patient, Patient and Patient!!! -Patient to wait for the Best Setups to trade, do not trade when there are no good setups 7. Trade What You See, Not What You Think -Concern with the effects, not concern about the reasons behind of what are happening. Everything is on your charts! 8. The Trend is Always Your Good Friend -The easiest money is made trading with the trend 9. Trading Evaluation -Record down your trades, why are you entry and why are you exit, continuously improve yourself 10. Trading is a Marathon, not a Sprint! -Be realistic, trading takes time to build experience
AMEX:SPYEducation
by YongLiang