The Forex Trader: A Mirror Reflection of Your Soul
Do you agree with my "text"? Do you believe you are only as rich as you make yourself. I promise that only makes sense if you read it 5 times. I was dancing through my notes and I thought about this one great topic. Because I remember looking a very clear mirror and I could see every pore on my face. The thing about mirrors are: They never lie! What you see is basically what you get.
I'm about to dive into the intriguing concept that a forex trader might just be a mirror reflection of their soul.
Picture this: you're sitting in front of your computer screen, sipping on your favorite coffee, analyzing currency pairs, and making those split-second decisions that could either boost your account balance or send it plummeting. It's a rollercoaster of emotions – excitement, fear, elation, frustration – all bundled into a few moments. But have you ever considered that your reactions to these market movements might reveal something deeper about who you are?
Just like the forex market, life is a series of ups and downs. Your ability to weather through drawdowns and stick to your trading strategy reflects your resilience in the face of adversity. If you're quick to jump ship at the first sign of trouble, you might be reflecting a tendency to avoid challenges in your personal life as well. Hmm, The real question is, Are you?
Let me scrabble through more points:
Risk Appetite: How much risk are you comfortable taking? Do you prefer the adrenaline rush of high-stakes trading, or do you opt for a more conservative approach? Your risk tolerance in trading can be a reflection of your general outlook on life – are you a risk-taker or someone who prefers the safe path?
Emotional Control: Ah, emotions – the heart and soul of every forex trade. How you manage your feelings when a trade goes south or when a huge profit lands in your lap mirrors your emotional regulation in other life situations. Can you keep your cool, or do you tend to let your emotions dictate your decisions? Little secret, It's the later for me. I'm working on it though.
Adaptability: The forex market is known for its unpredictability. Successful traders know how to adapt to changing circumstances and switch strategies when needed. This ability to pivot can mirror your openness to change and innovation in your personal life.
Self-Reflection: Every trade offers a lesson, whether it ends in profit or loss. Traders who take the time to analyze their decisions and learn from their mistakes are likely to be reflective individuals outside of trading as well. This introspective nature can lead to personal growth and development.
In the end, forex trading can be seen as a microcosm of life itself (everyone says this). The way you navigate the market's highs and lows, your risk management strategies, and your emotional responses are all windows into your character. Just like a mirror reflects your physical appearance, your trading behavior might be revealing more about your inner self than you realize.
So, the next time you are analyzing charts and making trading decisions, take a moment to reflect on what your trading style might say about you. Are you a bold risk-taker, a patient strategist, or something entirely different? Embrace the journey of self-discovery that forex trading offers – after all, the market might just be reflecting your soul back at you. Happy soul-searching! Haha..
Forextrading
The Metaphorical Part Of Forex Trading
Hey there, I saw a cool picture on google and thought I share. PS: It has nothing to do with this post. Unless of cos', You see me as a friend. Today, I'm diving into the exhilarating world of forex trading, where currencies dance to the rhythm of global markets. Now, you might be wondering, what in the world does forex trading have to do with life? Well, my curious friend, let's embark on a metaphorical journey that will unveil the uncanny similarities between trading currencies and the art of navigating our own lives.
Imagine life as a grand voyage, and within this voyage, we're all explorers seeking to make the most of our experiences. Just like forex traders, we're confronted with an array of choices, decisions, and opportunities that mirror the fluctuating exchange rates of various currencies. So, grab your compass of curiosity and let's set sail!
In the forex realm, currencies are the heartbeats of trade. Similarly, relationships are the currencies of our lives. Just as we assess the potential of a currency pair, we evaluate relationships to determine their value and potential for growth. Like trading, some relationships might yield high returns, while others may not pan out as expected. Learning when to hold on and when to let go becomes a critical skill in both markets.
Forex markets are notorious for their volatility, swinging wildly with the ebb and flow of economic news. Our lives are no strangers to volatility either – unexpected challenges, surprises, and opportunities can come at any time. Just as traders develop resilience to market fluctuations, we learn to adapt and thrive amidst life's unpredictability.
Forex traders are masters of risk management, carefully calculating their exposure to potential losses. In life, we also juggle risks – the risk of stepping out of our comfort zones, of pursuing dreams, of investing in ourselves. Both forex and life teach us that taking calculated risks, while daunting, can lead to incredible rewards.
Forex traders pore over charts and patterns to predict price movements. Similarly, we can engage in introspective "technical analysis" to evaluate our past choices, identify patterns, and make informed decisions for the future. Recognizing personal trends and behaviors can be as valuable as spotting trends in the market.
This is my all time favourite, The forex market rewards patience and timing. Similarly, life's opportunities often come to those who wait and seize the right moment. Just as traders wait for the perfect entry point, we wait for the right chances to unfold before taking action.Successful forex traders keep their eyes on the long-term horizon rather than getting caught up in short-term gains or losses. Likewise, we should focus on our life's big picture and values, rather than being bogged down by temporary setbacks or momentary victories.
So, there you have it, whether you're delving into forex trading or navigating the intricate pathways of life, remember this metaphor: just like in the forex market, we must equip ourselves with knowledge, resilience, and a willingness to learn . As we trade our way through life's currencies – relationships, opportunities, challenges – let's embrace the journey, grow from our experiences, and craft a life portfolio that reflects the richness of our existence. Happy new week. Let's kill it!
Forex Trading Guide: Lot Size and Pip Value Mastery 💰📈
In the fast-paced world of forex trading, understanding the concepts of lot size and pip value is crucial for success. These fundamental elements serve as building blocks for effective risk management, precise position sizing, and ultimately, maximizing profit potential. In this article, we will delve deep into the concepts of lot size and pip value, providing you with a clear understanding of their significance in the forex market.
Lot Size Demystified
Lot size refers to the quantity of currency units a trader is buying or selling in a single trade. It plays a pivotal role in determining the risk exposure and potential gains of a trade. There are three main types of lot sizes:
Standard Lots : A standard lot represents 100,000 units of the base currency. For example, if you're trading EUR/USD, a standard lot would be 100,000 euros.
Mini Lots: A mini lot is one-tenth the size of a standard lot, equating to 10,000 units of the base currency.
Micro Lots : A micro lot is one-tenth the size of a mini lot, amounting to 1,000 units of the base currency.
Choosing the appropriate lot size depends on your risk tolerance, account balance, and trading strategy. Traders with larger accounts might opt for standard lots, while those looking to minimize risk might lean towards mini or micro lots.
Crucial Role of Pip Value
A pip, short for "percentage in point," is the smallest price move that a given exchange rate can make based on market convention. Pip value is the monetary worth of a single pip movement in a specific lot size. Calculating pip value helps traders determine potential gains or losses per trade.
The formula to calculate pip value is:
Pip Value = (Pip in Decimal Places / Current Exchange Rate) x Lot Size
For example, let's consider a trade involving the EUR/USD currency pair with a position size of 1 standard lot and an exchange rate of 1.1800. If the price moves by one pip, the pip value would be:
(0.0001 / 1.1800) x 100,000 = $8.47
Examples:
In the dynamic world of forex trading, mastering lot size and pip value is essential for effective risk management and potential profitability. By understanding these concepts and incorporating them into your trading strategy, you can make informed decisions, optimize position sizing, and navigate the market with confidence.
Remember, the path to success in forex trading begins with a solid grasp of the basics. With the right knowledge and a strategic approach, you can navigate the markets and make educated trading choices. 💪📊🌐
Do you like this post? Do you want more articles like that?
Forex Trading Basics: Charting Your Way to SuccessIntroduction
Forex trading is the practice of buying and selling different currencies to profit from market fluctuations. This financial market is the largest in the world, with an average daily trading volume of $6.6 trillion, making it an attractive arena for traders. In this article, we'll cover some fundamental principles of forex trading, and show you where charts can help you understand and apply these principles.
Forex Trading Principles
Understanding Forex Market:
The Forex market is a decentralized global marketplace where participants buy, sell, exchange, and speculate on the value of different currencies. Currency pairs are traded, such as EUR/USD (Euro/US Dollar) or USD/JPY (US Dollar/Japanese Yen). The first currency in the pair is the base currency, and the second is the quote currency. Understanding how currency pairs are quoted and the concept of exchange rates is essential for Forex trading. Factors that influence the Forex market include economic indicators, geopolitical events, interest rates, inflation, and market sentiment. Traders need to keep abreast of these factors to make informed trading decisions.
Trading Strategy:
A Forex trading strategy provides a systematic approach to navigate the complexities of the market. It helps traders identify entry and exit points, manage trades, and minimize emotional decision-making. Different trading styles, such as day trading (short-term), swing trading (mid-term), and position trading (long-term), require distinct strategies. Some popular Forex trading strategies include trend following, breakout trading, range trading, and carry trading. Traders must align their chosen strategy with their risk tolerance, available time for trading, and personal financial goals.
Risk Management:
Effective risk management is vital to protect your capital and survive in the Forex market. It involves determining the appropriate position size based on your account balance and risk appetite. Setting stop-loss orders is crucial to limit potential losses if a trade goes against you. Additionally, traders should consider setting profit targets to secure gains and practice sound money management principles. Risk management ensures that no single trade or a series of losses can wipe out a substantial portion of your trading account.
Use of Indicators:
Technical indicators are tools used to analyze price charts and identify potential trading opportunities. Fractals, for example, are indicators that highlight potential reversal points in the market. They consist of five consecutive bars, with the middle bar showing the highest (or lowest) price. Traders can use other indicators like Moving Averages, Relative Strength Index (RSI), MACD, and Bollinger Bands, among others. However, it's essential not to rely solely on indicators but to combine them with other forms of analysis and market context for more accurate decision-making.
Applying Charts in Forex Trading
Identifying Patterns:
Forex charts are instrumental in recognizing chart patterns, which are recurring formations that can indicate potential market movements. The 'head and shoulders' pattern showed on the chart below is just one example. Other common patterns include double tops and bottoms, wedges, flags, and pennants. Each pattern has its own implications for price direction and can help traders anticipate trend reversals or continuations. Understanding these patterns and incorporating them into your analysis can significantly improve your trading decisions.
Using Indicators:
Indicators are mathematical calculations based on historical price and volume data, providing additional insights into market trends and potential entry or exit points. Besides fractals, traders often use indicators like Moving Averages, Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Bollinger Bands. These indicators help traders identify overbought or oversold conditions, trend strength, and potential trend changes. However, it's important to use indicators wisely and not overload charts with too many indicators, as it can lead to conflicting signals and confusion.
Determining Entry and Exit Points:
Charts serve as a primary tool for determining optimal entry and exit points for trades. Technical analysis tools, along with support and resistance levels, can guide traders in identifying areas of potential buying or selling interest. By combining technical analysis with their trading strategy, traders can time their entries and exits more effectively, enhancing the risk-reward ratio of their trades.
Risk Management:
Effective risk management is critical in Forex trading, and charts play a significant role in this aspect. By visualizing price movements and key levels on the chart, traders can determine appropriate stop-loss levels to limit potential losses. They can also calculate the position size based on their risk tolerance and the distance between their entry point and stop-loss level. Charts allow traders to assess the risk-reward ratio of a trade before executing it, ensuring they only take trades with favorable risk-to-reward profiles.
Conclusion
In conclusion, achieving success as a Forex trader requires a holistic approach that encompasses several critical elements. Understanding the basic principles of the Forex market sets the foundation for making informed decisions. Recognizing the role of currency pairs, exchange rates, and the factors influencing the market provides a solid framework for effective trading.
Developing a robust trading strategy tailored to your trading style and risk tolerance is paramount. Whether you opt for day trading, swing trading, or position trading, having a well-defined plan will guide your actions and protect you from impulsive decisions driven by emotions.
Charts serve as indispensable tools in Forex trading, enabling traders to visualize market data and identify key patterns and trends. Mastering the art of chart analysis empowers traders to spot potential opportunities, determine entry and exit points, and manage risk effectively.
However, success in Forex trading is not solely reliant on theoretical knowledge and technical skills. Consistency and discipline play a crucial role. Maintaining consistency in your trading approach and adhering to your trading plan even during challenging market conditions can lead to long-term success.
Discipline is essential in curbing the temptation to deviate from your strategy due to fear or greed. Practicing patience and avoiding overtrading are equally vital aspects of maintaining discipline.
Moreover, the Forex market is dynamic and subject to constant change. Staying updated with market trends, economic events, and geopolitical developments is indispensable. Continually refining your trading strategies and adapting to evolving market conditions will keep you ahead of the curve.
Additionally, never forget the importance of risk management. Preserving your trading capital through proper position sizing, setting stop-loss orders, and managing risk prudently is the key to surviving in the Forex market over the long term.
In conclusion, the journey to becoming a successful Forex trader is a continuous process of learning, analyzing, and improving. Embrace a comprehensive approach that combines knowledge, strategy, chart analysis, consistency, discipline, and risk management. By doing so, you position yourself for success in the ever-changing and exciting world of Forex trading.
Mastering the Bearish Flag Pattern in Forex and Gold Trading
The bearish flag pattern is a powerful technical analysis tool used by traders to identify potential bearish trends in the foreign exchange (Forex) and gold markets. As a continuation pattern, it is typically formed after a strong downward move, indicating a short-term pause before the price continues its downward trend.
📚How Does the Bearish Flag Pattern Work?
The bearish flag pattern is formed when the price experiences a sharp decline (the flagpole) which is then followed by a short period of consolidation (the flag). During the consolidation phase, the price usually trades within a tight range, with lower volume, indicating a temporary balance between buying and selling pressures.
The pattern is confirmed when the price breaks below the support level of the flag. This indicates that the selling pressure has now become bullish, and traders can expect a continuation of the downward trend.
📉Trading the Bearish Flag Pattern
Traders can take advantage of the bearish flag pattern by entering a short position after the flag pattern has been confirmed. This means that the trader will be selling the asset in question, expecting it to continue its downward trend.
To increase the likelihood of success, traders can use other technical indicators, such as moving averages and oscillators, as well as fundamental analysis to identify potential price movements and market trends.
Here is the example of a bearish flag pattern that we spotted on Gold.
After a sharp bearish move, the market started to consolidate within a horizontal range - flag.
Its support breakout was the indicator that the market returns back to a bearish trend.
📈Bullish Flag Pattern
The bullish flag pattern is the exact opposite of the bearish flag pattern, indicating a temporary pause in an upward trend. It is formed when the price experiences a sharp upward move followed by a short period of consolidation before continuing its upward trend.
Trading the bullish flag pattern is similar to trading the bearish flag pattern, with traders entering a long position after the confirmation of the pattern.
Here is the example of a bullish flag. The signal to buy was a bullish breakout of its upper boundary.
Behold how quickly the market started to grow then.
In conclusion, mastering the bearish flag pattern is a valuable skill in Forex and gold trading, allowing traders to enter short positions with greater confidence and accuracy. By combining technical and fundamental analysis, traders can identify potential trading opportunities and reduce their risks. It is important to note that a similar strategy can be applied for trading the bullish flag pattern, which is equally useful in identifying potential profitable trades in an upward trend.
What do you want to learn in the next post?
Unveiling the Advantages of Trading a Single Currency Pair
Introduction:
In the world of foreign exchange (forex) trading, traders have an array of currency pairs to choose from. Among the various strategies employed by forex traders, a popular approach is to focus on trading a single currency pair. While some may argue that diversification across multiple currencies is more beneficial, trading one currency pair comes with its own set of advantages. In this article, we will explore these benefits and shed light on why concentrating on a single currency pair can maximize your trading potential.
1. Increased Specialization:
By focusing on a single currency pair, traders gain the boon of deep specialization. They can dedicate their time, energy, and resources to thoroughly studying and understanding the dynamics, trends, and drivers specific to that particular currency pair. In-depth knowledge allows traders to make more informed decisions, leading to higher chances of profitability.
2. Clarity in Market Analysis:
Trading a single currency pair enables traders to develop a comprehensive understanding of the factors driving that particular pair's movement. They can delve into technical analysis, monitor news releases, and study relevant economic indicators with greater precision and efficiency. This clarity in market analysis helps traders identify patterns and make accurate predictions, consequently enhancing their trading strategies.
3. Enhanced Risk Management:
Concentrating on one currency pair enables traders to manage risk more effectively. They can closely track and analyze historical data, volatility patterns, and overall market behavior.
4. Time Management Advantage:
Trading a single currency pair allows traders to manage their time more efficiently. Instead of spreading their attention across multiple pairs, which require continuous monitoring and analysis, traders can focus on one pair and streamline their research efforts. This time management advantage permits traders to conduct thorough analyses, develop effective trading strategies, and implement risk management techniques without being overwhelmed by the sheer volume of currency pairs.
5. Optimized Trade Execution:
Trading a single currency pair empowers traders to execute trades with greater precision and speed. Being highly specialized in a particular pair enables traders to spot opportunities promptly and take advantage of favorable trade setups.
Conclusion:
While diversification has its merits, trading a single currency pair offers unique advantages that can significantly impact a trader's success. Increased specialization, clarity in market analysis, enhanced risk management, time management advantage, optimized trade execution, and the potential for becoming an expert are some of the key benefits that traders can enjoy by focusing on one currency pair. As with any trading strategy, it is essential to conduct thorough research and practice disciplined risk management to realize the full potential of your trading endeavors
Please, like this post and subscribe to our tradingview page!👍
Mastering Engulfing Candle Trading
📚Engulfing candles are an essential feature of technical analysis in forex trading. An engulfing pattern happens when a larger candle engulfs the entire body of the previous candle, signaling a potential reversal of the current trend. Engulfing candles, which can be either bullish or bearish, are trusted by many traders for their reliability in predicting future price movements. However, to become an expert in engulfing candle trading, one needs to learn how to identify the best ones and leverage their body size effectively. In this article, we will look at the crucial steps to master this trading strategy.
🔎Identifying the Best Engulfing Candles
One of the key aspects of trading using engulfing candles is knowing how to spot the strongest signals. The best engulfing candles should be resistant to the noise and inconsistent movements that can often occur in the forex market. The first step towards identifying the best engulfing candles is to focus on the size of the preceding candles. Candles with small bodies and long wicks produce too much noise and can lead to false signals. Instead, seek engulfing candles that develop after a significant price move, ideally with a larger body and shorter wick. Higher timeframe charts - like the 4-hour and daily - offer better accuracy in identifying reliable engulfing patterns.
💪Leveraging Body Size for More Efficient Trading
The size of an engulfing candle’s body plays a crucial role in determining the strength of a trend. A larger body indicates more significant price movement and more active participation from traders. The size of the engulfing candle can also help ascertain the potential strength of the new trend. Bigger body sizes usually signal a stronger trend, whereas smaller bodies usually represent a more moderate price move. Traders can leverage body size to adjust their trading strategy – for instance, employing wider stop losses for more significant movements or using tighter take profit targets for moderate trends.
I have collected couple of good engulfing candles that we were trading with our team.
Take a closer look at their body sizes and the previous candles.
Such candles alone can provide fantastics trading opportunities.
🔔Conclusion
Engulfing candles are an essential tool in forex trading, and their size can significantly help traders identify the best entry signals. Traders who master engulfing candle trading can develop a more accurate technical analysis strategy that yields high returns. By continually analyzing candlestick patterns and using other technical analysis tools, traders can build robust investment strategies that enable them to become profitable forex traders.
What do you want to learn in the next post?
5 Trades this week & +2.40% 😆 / Part 1In this Weekly Review I breakdown my thought process for my first 4 trades of the week. The video was cut short due to a 20 Minutes max length for tradingview. I just learned about this since I am new to video analyses on tradingview. I will be uploading the Part 2 for my final (5th) trade of the week at some point this weekend.
If you enjoyed the video, please leave a rocket or a comment 😁
I will be making more video analysis for the channel as I have been enjoying them myself. Anyways have a nice weekend.
Importance of a Stop Loss🔴 A stop-loss (SL) is a limit order that specifies how much loss you are willing to take on a trade. It prevents you from making additional losses on a trading position.
🟢 A take-profit (TP) works as the exact opposite of a stop-loss. It specifies the price to close out a position for profit. When you have a take-profit order, the trading platform you are using closes your position automatically when the price level is reached.
These tools are beginner friendly and are usually effective for short term trading.
The first thing a trader should consider is that the stop loss must be placed at a logical level. This means a level that will both inform the trader when their trade signal is no longer valid, and that actually makes sense in the surrounding market structure. There are several tips on how to exit a trade in the right way. The first one is to let the market hit the predefined stop loss that you placed when you entered the trade. Another method is to exit manually, because the price action has generated a signal against your position.
I advise you to use Stop Loss for EVERY trade that you open. Trading without a Stop Loss is a huge risk and it requires specific strategy and experience.
The Traders in Gold and Forex
The world of trading in gold and forex is a challenging and relentless arena where fortunes can be made or lost in a matter of seconds. Three of the most popular styles of trading in these markets include scalping, day trading, and swing trading. In this article, we will take a closer look at each of these trading styles and explore the differences between them.
✔️Scalping is a popular trading style in which traders aim to enter and exit trades quickly, usually within a few seconds or minutes. Scalpers are looking for small market movements and use technical analysis and chart patterns to identify opportunities. The profits from scalping trades are often small, but when done correctly and consistently, they can add up to significant profits. Scalping requires a high level of discipline, attention and focus, and the ability to make quick decisions.
✔️Day trading is another popular style of trading where traders hold positions for a day, opening and closing trades within the same trading session. Day traders use charts, technical indicators, and fundamental analysis to identify trends and price movements. They focus on generating profits by taking advantage of these short-term price changes. Day trading requires a lot of patience, discipline, and emotional control as there can be periods of volatility and unpredictability that can cause stress.
✔️Swing trading is a medium-term trading strategy in which traders hold positions for several days to a few weeks. Swing traders use a combination of technical and fundamental analysis to identify medium-term trends and then enter and exit trades based on these trends. Swing traders aim to capture larger price movements and hold their positions longer than day traders. Swing trading requires a lot of patience, discipline, and the ability to handle market fluctuations.
Please, take a look at the example of a day trade.
The trade was taken by our team on intraday time frames.
The order was executed on an hourly time frame and the trade was closed within the same trading day.
In comparison to the previous case, here is a swing trade.
It was taken on a daily time frame and we were holding that trade fore more than 2 weeks.
In conclusion, gold and forex trading require a lot of skill, discipline, and patience, and different trading styles suit different traders. Scalping, day trading, and swing trading are three popular styles of trading. Scalping is a fast-paced, high-risk trading style, while day trading requires a lot of discipline and emotional control. Swing trading is more patient and slow-paced but offers bigger profits if done correctly. Each style requires different skills, risk tolerance, and technical analysis. The key to successful trading in these markets is to find a style that works best for you and stick to it.
What do you want to learn in the next post?
Risk Reward Ratio ExpainedThe key to becoming successful as a Forex trader is to find the right balance between how much you risk per trade to achieve the desired profit you are aiming for. This balance needs to be realistic and relevant to the technical strategy you are applying. You need to combine risk reward with your strategy.
The risk-reward ratio is simply a calculation of how much you are willing to risk in a trade, versus how much you plan to aim for as a profit target. To keep it simple, if you were making a trade and you only wanted to set your stop loss at five pips and set your take profit at 20 pips, your risk reward ratio would be 5:20 or 1:4. You are risking five pips for the chance to gain 20 pips. The basic theory for the risk-reward ratio is to look for opportunities where the reward outweighs the risk. The greater the possible rewards, the more failed trades your account can withstand at a time. When it comes down to it, it is up to you as a trader to figure out what type of risk-reward ratio you want to use. You should try to avoid having your risk be bigger than your reward, particularly if you are a beginner, but there is no particular ratio that works for all traders. The important thing is that you use a ratio that makes sense for your trading style and for market conditions!
I recommend to use 1:2 risk reward ratio.
Have a great day 📊
Mastering Pro Forex and Gold Trading
As a professional forex and gold trader, it's essential to understand the anatomy of successful trading. From market analysis to risk management, there are specific body parts, or components, that make up a successful trader. Here's a breakdown of each component and its role in pro trading.
👁 Eyes - Market Analysis
Successful traders know that the markets are dynamic, and they must keep a keen eye on market trends and data. By scanning the markets, using technical analysis, and fundamentals-based analysis, traders can make informed trading decisions.
🧠 Brain - Discipline and Strategy
Traders must have the discipline to stick to their trading strategy and be ready to pivot when necessary. Having a clear trading plan and risk management strategy is essential, and traders must keep a cool head in the face of market volatility.
❤️ Heart - Risk Management
In trading, you need to know when to hold 'em and when to fold 'em. Successful traders must have a heart for risk management and know how to manage their trading capital effectively.
🙌 Hands - Execution
To execute good trades, you must have nimble hands that can take swift action when the opportunity presents itself. Traders must know how to enter and exit trades quickly and efficiently to maximize profits and minimize losses.
👂 Ears - Listening to the Market
Experienced traders know that the market can be unpredictable, so it's essential to actively listen and take in information from various sources to stay on top of trends and changes in market sentiment.
🦵 Feet - Adaptability
Successful traders must be able to pivot and adapt to sudden changes in the markets. Whether it's political unrest, natural disasters, or unexpected market moves, traders must be able to react quickly and adjust their trading strategy accordingly.
👄 Mouth - Community and Networking
Experienced traders know that trading is not a solitary endeavor and that community and networking are essential to successful trading. Sharing knowledge, joining trading communities, and networking with fellow traders can provide valuable insights and support when trading.
By understanding the anatomy of pro forex and gold trading, traders can develop the mindset and skills necessary to succeed in trading. From market analysis to risk management, each component plays a critical role in successful trading. Physical attributes like hands and feet can be developed with practice, but the heart and the brain are equally important, and they require discipline, strategy, and adaptability to thrive in the ever-changing world of trading.
Please, like this post and subscribe to our tradingview page!👍
Understanding and Utilizing the RSI Indicator in Forex and Gold
When it comes to trading gold and forex, technical analysis plays a vital role in predicting market trends and making informed trading decisions. One of the most popular technical indicators used by traders is the Relative Strength Index (RSI).
The RSI indicator is a momentum oscillator that measures the magnitude and velocity of price movements in a currency pair or gold. It oscillates between 0 to 100 and shows whether a currency pair or gold is overbought or oversold.
Here are some tips on how to use the RSI indicator in gold and forex trading:
1. Identify overbought and oversold levels: RSI values above 70 indicate overbought levels, while values below 30 indicate oversold levels.
2. Use divergence for trend reversal: Divergence forms when the price and RSI indicator move in opposite directions. It can signal a potential trend reversal.
3. Combine with other technical indicators: RSI can be used in conjunction with other technical indicators, such as moving averages, to confirm signals.
4. Look for RSI support and resistance levels: RSI support and resistance levels can give traders insights into potential price levels where a reversal might occur.
5. Use RSI for trade entry and exit: Traders may use RSI to identify entry and exit points for trades. For example, buying a currency pair when its RSI is below 30 and selling it when it rises above 70.
6. Remember to adjust for volatility: High volatility can lead to false RSI signals. Traders must adjust their RSI settings to accommodate increased volatility.
In conclusion, the RSI indicator is a widely used tool in technical analysis and can provide valuable insights into gold and forex trading. Remember to use it in conjunction with other tools and indicators and adjust your settings based on market volatility.
Please, like this post and subscribe to our tradingview page!👍
Discover Price Action Secrets for Successful Trading
📍Price action trading refers to the analysis of raw price movements in order to understand and predict future market trends and price movements. By focusing on price movements, traders gain a deeper understanding of market fluctuations and can make more informed trading decisions.
The strategy can be applied to trading gold and forex, two of the most popular trading instruments. In a market as dynamic as gold and forex, understanding price action secrets is crucial for successful trading.
✔️One of the secrets is to interpret price patterns that indicate potential market movements. This involves understanding key market terms such as support and resistance levels, chart patterns, and the role of market psychology.
✔️Another important price action insight for gold and forex traders is the use of price action indicators. These can offer insights into market trends and trading signals. Some of the most popular indicators include moving averages, stochastic oscillators, and the relative strength index (RSI).
✔️Following a strict risk management strategy is another key price action secret. An effective approach is to always set stop-loss orders to limit losses in a trade, and to only trade with funds that can be afforded to lose in the event of a loss.
✔️In addition, an effective trading strategy should also incorporate a sound fundamental analysis. This refers to the interpretation of market news, announcements and events that may impact gold and forex prices.
Overall, price action secrets for gold and forex trading involve a combination of technical analysis, fundamental analysis and a sound risk-management strategy. Successful traders must remain alert to market trends, always adapt to new information, and be disciplined in their trading approach.
By understanding these secrets and implementing them in trading, traders can improve their chances of success in the fast-paced gold and forex markets.
Check the following example:
USDCAD pair was trading on a key level.
Price action, candlestick and indicators analysis could help you to accurately predict a bearish movement from that.
The price formed a double top pattern, was rejected from a key level and BB cloud.
These tiny clues are the main instrument of a pro price action trader.
Example number 2:
This time gold.
Important key level.
Again, watch the price action, candlestick patterns and indicators.
The price formed a doji candle testing the BB cloud and key level,
triple top pattern was formed.
The coming reversal was obvious here.
🔔In conclusion, price action trading offers a powerful approach to gold and forex trading for investors who are seeking consistent returns over time. By paying close attention to price action movements, following strict risk management strategies and staying current on market trends, traders can achieve success in these exciting trading arenas.
Please, like this post and subscribe to our tradingview page!👍
Step-by-Step Guide to Begin Forex and Gold Trading
Forex and gold trading have become immensely popular among investors as a great way to earn profits. However, starting with this venture can be quite overwhelming for beginners. Here is a step-by-step guide to help you begin your forex and gold trading journey:
1. Learn the Basic Concepts: Before investing your hard-earned money, it's important to get familiar with the key concepts of forex and gold trading.
2. Choose a Trading Platform: There are plenty of online trading platforms to choose from. Look for one that is user-friendly and offers competitive trading fees.
3. Identify Your Investment Goals: Decide on your investment objectives, as it will help you to make informed trading decisions.
4. Develop a Trading Plan: Create a trading plan to determine how much you're willing to invest, when you'll buy or sell, and which assets you'll trade.
5. Set a Budget: Determine how much money you intend to invest and set a budget accordingly. Remember, only invest an amount you're comfortable losing.
6. Practice on a Demo Account: Most trading platforms offer a demo account that simulates real trading conditions and helps you practice trading with virtual money.
7. Analyze the Market: Before making any trades, analyze the market through technical and fundamental analysis to identify trends and potential outcomes.
8. Monitor Your Investments: Keep track of your investments regularly and make necessary adjustments if needed.
9. Be Prepared for Risks: Understand that trading involves some risks, so be prepared to handle losses.
10. Keep Learning: Continuously educate yourself on market trends, economic indicators, and other factors that affect the forex and gold trading market.
11. Identify a Reliable Broker: Choose an experienced and licensed broker who can offer you guidance and support when starting.
12. Start Small: Begin with small investments and gradually build your portfolio as you gain more experience and confidence.
13. Diversify Your Portfolio: Spread your investments across different currencies and assets to reduce the risk of losses.
14. Be Realistic: It takes time and patience to become a profitable trader, so set realistic expectations and avoid making hasty decisions.
15. Stay Disciplined: Maintain discipline and stick with your trading plan to achieve your investment goals.
Here is the example of how exactly you should trade.
Imagine that you have a trading strategy for gold trading.
You trade key levels.
Once a key support is reached you buy and once a resistance reached you sell.
Taking the trade you risk fixed % of your trading account.
You know the exact entry reasons, your stop loss and target.
Ideal approach should work like clock.
In conclusion, starting forex and gold trading can be challenging, but with the right knowledge and preparation, you'll be on your way to making profitable trades. Just remember to keep learning, stay disciplined, and be patient.
The Secrets of Making Four Figures Through Trading. The secrets of making four figures through trading.
In this Trading view Post, we will explore the key strategies and considerations that can significantly enhance your swing trading results. As a forex coach specializing in this trading style, I'm excited to share valuable insights and empower you to achieve your financial goals.
Small Accounts are Out, Prop Firms are In
Problem : Insufficient Earnings with Small Accounts
Solution : If you aspire to make four figures, it is essential to trade with five figures. Turning $100 into $10,000 or $500 into $100,000 is much quicker and more feasible when you have a larger capital base. With a prop firm, you can afford to trade less frequently and prioritize quality over quantity, eliminating the struggle often associated with small account trading.
Implement a Proper Risk Management Strategy
Trade with Skill, Not Luck
To safeguard your capital and increase profitability, it is crucial to limit your risk on each trade to no more than 1%. This approach allows you to rely on your trading skills rather than luck. Remember, success in trading is a result of consistent and disciplined decision-making.
Consistency in Risk Allocation
Maintain a consistent 1% risk level as your account grows. As your balance increases, the amount of money you risk will grow proportionally. For example, if you start with a $100,000 account, you would risk $1,000 (1% of $100,000). As your account balance reaches $101,000, your risk would be $1,010 (1% of $101,000), and so on. Consistency in risk allocation ensures that your percentage risk remains the same while adapting to account growth and drawdown phases.
Leveraging Position Sizing Based on Account Size
Your position size, or lot size, plays a critical role in determining how much you value each pip movement. It is essential to find the right position size to prevent excessive drawdown or losses that can jeopardize your trading account. Position sizing calculations consider your account balance, percentage risk, and stop-loss levels.
For instance, if your stop loss is 30 pips and you have a $10,000 account, your position size would be $100 (1% risk) divided by 30 pips, resulting in $3.33 per pip. Your lot size will be 0.33 per pip . By maintaining consistent risk management practices, you can aim for profitable trades while preserving capital.
Focus on Higher Reward-to-Risk Opportunities
Problem: Losing Trades Depleting Capital
To sustain long-term profitability, it is essential to prioritize trades with a higher reward-to-risk (RR) ratio. Winning trades compensate for losing trades and help you overcome drawdown phases. Avoid subpar trades that you force or that fall below your minimum RR requirements.
Strategies to Achieve Higher RR:
Multiple Timeframe Analysis: Shorten Stop Loss
Analyze multiple timeframes to identify strong trade ideas. Once you've determined a suitable trade on a higher timeframe, drop down to lower timeframes to tighten your stop loss. This approach allows you to manage risk effectively and maximize your RR ratio.
Utilize Higher Timeframes or Tools: Extend Take Profit
When dropping down to lower timeframes, refrain from shrinking your take profit target. Instead, utilize higher timeframes or tools like Fibonacci to extend your take profit level. By setting reasonable profit targets, you increase the potential for achieving higher RR trades.
Main Talking Point 3: Quality Trades and 4-Figure Trade Planning
Problem: Inconsistent Trading Results
Solution: Trading with a focus on quality trades offers numerous benefits. By targeting high-quality opportunities and planning trades effectively, you can profit during trending markets, reduce mistakes, and avoid the need to chase after four-figure profits.
Commitment to Make 4 Figures & Stay Under Drawdown Limits
Plan Weekly and Allocate Resources
Plan your trades every Sunday to determine the potential profit or loss for each trade. Identify high-quality opportunities and allocate 1% of your capital to each trade. Assess if each opportunity meets your minimum RR requirements and if it brings you closer to achieving four-figure profits.
Example: $10,000 Account
Suppose you risk $100 on Trade 1 and make $333 (3.33% return), followed by risking $103.33 on Trade 2 to make $516.65 (5.16% return). After two trades, you have earned $849.65, representing an 8.49% increase in your account balance. Continuously monitor and adjust your trades to maintain profitability.
Is this possible? Yes!
Is this easy? No!
Why? Because you'll have to get out your own way and head to make this possible.
While achieving consistent four-figure profits through trading requires dedication and skill, implementing the strategies discussed in this post can significantly enhance your chances of success. By trading with a prop firm, implementing proper risk management strategies, focusing on higher RR opportunities, and prioritizing quality trades, you can navigate the dynamic world of trading with confidence and boost your financial growth. Remember, trading success comes from discipline, continuous learning, and a well-defined trading plan.
Best of luck on your journey to four-figure profits!
Shaquan
Hey! If you found this post valuable like the post and let me know below what was your takeaway❤️
Top 5 Tips to Increase Your Profits in Trading 📈
In this educational article, I will share with you very useful tips how to improve your profitability in trading the financial markets.
1. Decrease the number of financial instruments in your watch list. ⬇️
Remember that each individual instrument in your watch list requires attention. The more of them you monitor on a daily basics, the harder it is to keep focus on them.
In order to not miss early confirmation signals and triggers, it is highly recommendable to reduce the size of your watch list and pay closer attention to the remaining instruments.
2. Avoid taking too many positions. ❌
For some reason, newbie traders are convinced that they should constantly trade and keep many trading positions.
Firstly, I want to remind you that the management of an active position is a quite tedious process that requires time and attention.
Therefore, more positions are opened, more time and effort is required.
Secondly, if the newbies can not spot a good setup, they assume that they are obliged to open some positions and they start forcing the setups.
Remember, that in trading, the quality of the trading setup beats the quantity. I advise taking less trades, but the better ones.
3. Let winners run if the market is going in the desired direction. 📈
Once you caught a good trade and the market is moving where you predicted, do not let your emotions close the trade preliminary.
Try to get maximum from your trade, closing that only after the desired level is reached.
4. Open a trade after multiple confirmations.✅
Analyzing a certain setup remember, that more confirmations you spot, higher is the accuracy of the trade that you take. In order to increase your win rate, it is recommendable to wait for at least 2 confirmations.
5. Don't trade on your cellphone. 📱
A good trade always requires a sophisticated analysis that is impossible to execute on the small screen of the cellphone.
A lot of elements and nuances simply will not be noticed. For that reason, trade only from a computer with a wide screen.
Relying on these tips, you will substantially increase your profits.
Take them into the consideration and good luck to you in your trading journey.
❤️Please, support my work with like, thank you!❤️
Who Moves the Forex Market | Forex Market Players
Forex is the largest market in the world, with the tremendous daily trading volumes and millions of market participants.
In this educational article, we will discuss who moves that market and who are its 6 the most significant players.
1. Governments
Governments tend to set economic goals and influence the markets with their political decision. They define the course of their nations, issuing policies and imposing regulations.
2. Central banks
Central banks implement the decisions of the governments, applying multiple instruments:
Central banks control the emission of the money, shifting the supply and demand.
They control interest rates and define the credit policies.
Central banks control the international trade and sustain the exchange rates of the national currencies by interventions and handling the foreign currencies and gold reserves.
3. Commercial banks
Commercial banks handle the international transactions.
Over 70% of total Forex Market transactions directly refers to the actives of commercial banks.
Commercial banks are also involved in speculation activities, benefiting from market fluctuations by relying on various strategies.
4. Corporations
Corporation is the business that operates in multiple countries.
With the constant capital flow between its branches and counterparts, corporations are permanently involved in a currency exchange.
Also, corporations usually hedge currency risks, storing their liquidity in particular currencies.
5. Investment funds
By investment funds, we imply the international or domestic professional money management companies. Dealing with hundreds of millions of investments, they quite often are operating on Forex market, buying foreign assets, speculating and hedging.
6. Retail traders
The main goal of retails traders and speculators is to make short terms profits from their transactions on the market.
Typically, the activities of traders constitute a relatively small portion of total trading volumes.
Knowing which forces move the forex market, you can better understand how it works. The spot prices that you see on the charts reflect the sentiment of all the above-mentioned participants.
❤️Please, support my work with like, thank you!❤️
Top Tips For Beginner TradersTrading can be a lucrative and exciting venture, but it can also be overwhelming and risky for new traders. Whether you are interested in stocks, forex, or other markets, there are some important tips to keep in mind as you begin your journey as a trader. Let's outline some of the top tips for new traders.
Start with a solid education
The first step to becoming a successful trader is to gain a solid education on the markets you are interested in trading. This can involve reading books, taking courses, attending seminars, and researching online. By understanding the fundamentals of trading, you can avoid many common mistakes and develop a strong foundation for your trading career.
Develop a trading plan
Before making any trades, it is essential to develop a trading plan that outlines your strategy, risk management approach, and goals. Your plan should also include details such as the types of trades you will make, the timeframes you will trade on, and the tools and indicators you will use to analyze the markets.
Practice with a demo account
Many brokers offer demo accounts that allow you to practice trading without risking real money. This is a valuable way to test out your trading strategies and get a feel for the markets before committing to real trades. Practice trading on a demo account until you feel comfortable with your approach and have a solid understanding of the markets.
What I love about Trading view is that you can demo trade without a broker. You can save the headache of having to find a broker later in your trading journey when you're ready to trade live.
Manage your risk
One of the most important aspects of successful trading is managing your risk. This involves setting stop-loss orders to limit your losses and using proper position sizing to ensure that you do not risk more than you can afford to lose. Never trade with money that you cannot afford to lose, and always be mindful of the risks involved in each trade.
Think of each trade as it's own idea that gets a portion of your capital. That makes it easier to trade in size instead of betting everything in 1 or 2 trades.
Keep a trading journal
Keeping a trading journal is a great way to track your progress and identify areas for improvement. Record your trades, the reasons behind them, and the outcomes. Analyze your trades regularly to identify patterns, mistakes, and successes, and adjust your trading plan accordingly.
Your journal will differ from other trader's journal so be mindful you're keeping dated records of everything you do.
Be patient and disciplined
Successful trading requires patience and discipline. Avoid the temptation to make impulsive trades based on emotions or rumors, and stick to your trading plan. Remember that trading is a long-term endeavor, and focus on making consistent gains over time rather than trying to get rich quick.
If you add stress to your journey, the road to being a profitable trader will not be enjoyable. Being patient and disciplined can reserve your mental and physical capacity as a trader.
Stay informed
Finally, it is important to stay informed about the markets you are trading in. I'm big on not following every trader's advice or suggestions because then, you'll trade their journey. While their journey may be great yours could suffer if they decide to stop trading and you can't hold your own.
To get the best results, stay up to date with current price movement. If you are a fundamental trader, stay up to date on what economical data is moving the market. be sure you understand what you do for yourself and not based on what others have to say about the market.
In conclusion, trading can be a rewarding and profitable venture, but it requires dedication, discipline, and a solid education. By following these top tips for new traders, you can avoid many common mistakes and develop a strong foundation for your trading career. Remember to stay patient, manage your risk, and stay informed, and you will be on your way to success in the world of trading.
I'll be live-streaming here on Trading view tomorrow at 1:00 pm EST. to give more tips to help the beginner trader.
I hope to see you there and I hope you enjoyed these tips.
What Trading Consolidation Looks Like?Should you trade consolidation? Well, the real question is are you a consolidation trader? If so, what does consolidation trading look like to you?
Not all traders will have the same answer because no trader knows when consolidation will form until it happens. What you will do when it happens is solely based on what you believe to be true based on your beliefs about trading and your trading strategy.
What is a market condition?
A market condition is a type of way the market moves. Much like the weather outside, you dress based upon the temperature outside and you choose your style of clothing.
You can't control the weather, but you can control what you do. Much like you can't control how price moves, but you can control how you trade it.
The way price moves determines the strategy you choose to trade it based on your trading style.
When consolidation begins forming you may notice a few things such as:
1. Its hard to gauge the price direction
2. Price moves sideways between an extreme high and low for an extended amount of time
3. You may be stopped out more often or have to wait longer before placing a trade if you are a trend or breakout trader
4. You may trade well within the ranges of crazy price movement in between the extreme high and low prices.
The bigger question to ask yourself when you notice consolation forming is do you do well in this type of market?
If so, what are the steps to trading this type of condition?
Do you look place horizontal trend lines?
Do you look for patterns such as wedges or flags.
If no, the current currency pair or asset will be best to ignore til it begins to trend again in your favor. What will that look like?
Is it a break out of the horizontal trend lines?
Is it a break out of your pattern?
Either way, as a trader, it's best you determine what consolidation looks like to you and decide to trade it or not to trade it. Construct steps around how you trade it and position your risk size according to this type of condition.
For me myself personally, I do not trade consolidation. I am a trend trader and my motto is, if I'm not in the trade before consolidation forms, I'm not trading at all.
I also don't create consolidation strategies. Thats just me personally. It helps with me mental capacity and keeps me focused on what works for me.
I'd like to know, do you trade consolidation and if so, whats your best strategy.
Lastly, thank you for reading my post. Be sure to like it. It lets me know you enjoy reading what I love talking about in my free time, trading. ❤️
7 Reasons why Elite Traders Crush the CompetitionHello TradingView world,
I have been trading for almost 15 years and have learned some serious lessons about trading and the markets. I have also been fortunate enough to interact with many great traders over that time that have helped me tremendously, however I still struggled for a long while and wondered why I wasn’t making the progress I desperately wanted to make.
I thought just like everyone else, that if I found the perfect trading strategy, all of my problems would vanish and profits would rain down from the sky like salt bae letting salt drip down off his forearm.
Well guess what happened? I ACTUALLY DID FIND IT.
In fact, my analysis in the market was so damn good that in 2013 I was invited to speak on a worldwide webinar hosted by Daily-FX which was then owned by FXCM.
I’d have a 50 pip stop with a 500+ pip price target and I was nailing the trades left and right, so this was the reason I was invited on. I was working at the Federal Reserve Bank of New York during this time and I ended up leaving that job to trade full time that same year.
Things went smoothly for a while. I partied… A LOT. Did all kinds of reckless and stupid things with my time and money and I ultimately lost it all by 2015. I pondered for a long time about what happened and once I removed my ego and stubbornness, I figured out that what makes a trader great has nothing to do with the outside and has everything to do with the inside.
This is the TRUE secret of trading success. It’s all about YOU and how YOU approach trading. There is so much more to the story but without further hesitation, based on what I have learned from other great traders and have personally learned through brutal hard lessons, this is why Elite traders crush everyone else in the market and if you begin employing these lessons in your own trading, I can guarantee that you will see a dramatic change in your results.
#1 - ELITE TRADERS ARE LEAGUES ABOVE YOU IN PATIENCE
Everyone gets into trading for one thing and one thing only; to make money and to make as much of it as possible. One thing that the majority of traders do is that they also want to do it in the FASTEST way possible. This is where they screw up but is it any surprise that this is the case? I mean look all around you in terms of social media (Facebook, Instagram, YouTube, etc.) it’s all over the place with people touting “Watch me turn $1,000 into $10,000 in just a few days!” … This gets views, it gets attention and it encourages other traders to continuously take on massive risks in order to achieve this.
Is it possible to do? YES, because many traders (Including myself) have done it but what does it also do? It creates detrimental habits that keep you in this mindset of turning a small account into a large account quickly and then that one day comes when you take on massive risk on a trade that looks “good” but ends up going violently against you for a huge loss or COMPLETE destruction of your account.
Another factor is that the majority of traders want to be in the market ALL of the time. They can’t resist staying out and staying flat during times of uncertainty or when the charts aren’t clear enough to validate putting their capital at risk. Elite traders can wait hours, days and even WEEKS before putting on another trade because they understand, their trading opportunity is not yet clear and they rather wait as long as possible in order to enter the market at the most optimal time and conditions.
Think about it; do you want to be in the market on a consistent basis? Are you able to wait a few days or a few weeks before putting on a new trade? It’s a very difficult thing for many traders to do while Elite traders have mastered the game of patience to their advantage. It’s not a matter of how long is the next trade going to take to develop? Rather, I’ll take the next trade when the optimal conditions are met regardless of how long it takes.
#2 - ELITE TRADERS KNOW THEIR OWN WEAKNESSES
Everyone has weaknesses whether we like to admit it or not. Some traders are severely impatient, some have a problem with risk management, some have a problem with making impulsive trades and become reckless, some have a problem with over analyzing their charts or trying to look at multiple markets at the same time, etc. Most traders either try to suppress them or choose to ignore them completely and this causes many to struggle and stay frustrated.
Have you ever thought to yourself, “Shit, why did I do that!?” or “Why did I get out when I should have stayed in” or “Why did I chase it! I knew I should have stayed out” … There is a weakness there that you have not learned to master or work on improving it. Even if you finally acknowledge it and try to write it down or post it on your wall by your trading desk… You STILL end up making that mistake and frustration takes over.
Elite traders through trial and error have learned to master their INTERNAL trading character. They know what triggers them and have found a way to stop it in its tracks so that mistakes are kept under control. They also understand that when these weaknesses start to creep up on them, they can identify WHY it’s happening and talk themselves out of it.
For example, if the market is rising and it looks like it’s going to get away from them, they understand that by chasing after it, the market could turn around and leave them with an unnecessary loss or trap them in a position that they should have not gotten into in the first place. Their attitude is “The market did not give me the optimal trading opportunity that I wanted therefore I will wait. Let the market do whatever it’s going to do, I don’t care. I only care about my optimal trading opportunities” This tie’s in with reason #1 (Patience). They will not let ANYTHING force them into trades they shouldn’t be in.
#3 - ELITE TRADERS FOCUS ON ONE MARKET/PAIR/SECTOR
This is not only true of trading but life in general, focusing on one thing and mastering that one thing to become great at it. There are a multitude of instruments and markets to trade and it gives us traders the freedom to choose where we’d like to put our capital to work but as many of us know, too much choice can actually be a bad thing. When it comes to the Forex market, we have many pairs we can work with and that can actually be a problem.
Everyone has a watch-list of pairs that they want to trade but is that causing you more trading struggles for you or keeping you confused? Whether the answer is yes or no, why are you doing that? And the answer is most likely because you believe it presents more trading opportunities but that is not always the right way to go about things. Each pair moves and reacts differently during certain market conditions and what works well on the EUR/USD may not work on the GBP/JPY. While the EUR/USD moves at a more stable pace and a big day would be considered a 1% move, the GBP/JPY can become wildly explosive and relentless when it comes to market volatility.
Elite traders know this and they stick to ONE thing and become a master at it. I personally stick to the EUR/USD and that is MORE than enough to make profitable trades on. Elite traders do not divert to other markets or other pairs to try and make more profits but they lock down and focus on that one pair and crush it. It’s not common for the majority of traders to do this because they feel that they will be missing out on other trading opportunities but are they really? Or are they just finding multiple ways to take losses?
In order to trade this way, it would require the ability to stay incredibly patient but it would allow for you to stay away from multiple charts and remain disciplined while not putting your capital at risk and avoiding impulse/emotional trades.
This is not common but then again… this is why Elite traders do it and the majority does not.
#4 - ELITE TRADERS PREFER A LONGER TERM OUTLOOK
Just look at the screenshots of charts scattered on trading forums, social media or any other discussion outlet, more times than not everyone’s looking at the 1 Minute all through the 4 Hour time frames. You’ll find a few daily charts here and there and even less Weekly+ charts. Most traders want to be in the market every day and this is why Day trading is so enticing, it gives them a reason to log in, open up their charts and look for trading opportunities to make money. That’s a Mistake.
You’re probably noticing that the previous 3 reasons tie into this reason and that’s because this is just another manifestation of lack of patience or inability to focus on one thing. Short term charts give the impression that there will be more moves to get in and out and not staying in a position overnight. Yes, I get that some traders out there prefer to just get into the market and then be done with it at the end of the day but more times than not, you’ll end up making impulsive trades that creates a string of losses if you don’t have your emotions in check.
Elite traders like to look at the “whole picture” and prefer looking at the daily charts and up. Since longer time frames take time to develop, this is perfectly fine for them as it gives them more time to prepare for the upcoming trade and analyze the levels, they want to take a position and take profit. Once they enter a position, they set their stop and let the market work for them.
They don’t need to check their positions multiple times per day since they know the market will take its time doing what it’s going to do and therefore have time for other activities in their lives or businesses.
#5 - ELITE TRADERS VIEW TRADING FROM A BUSINESS PERSPECTIVE
“How much can I make per day”, “How much can I make per week” or “How much can I make per month” … This is what you’ll usually hear from the majority of traders but how many times have you heard “We’ll see how performance looks at the end of the Quarter”? I’m willing to bet, not many. There is a lot of hype about how much can be made in one day or week but trading is not about just one day, one week or one month, it’s about the long game and how results look over time.
Some Elite traders even go as far as looking at profit-loss on a yearly basis but because market conditions change throughout the year, reviewing how performance looks like at the end of the quarter is preferable. There is no rush to try to make a gain at the end of the day, week or month. Spacing out P/L review allows opportunities to both develop and play out especially if the market is trending.
Elite traders don’t mess around in the market either, this is not a game or hobby for them while many amateurs in the market don’t take it as seriously as you would think. They know that the market is a battlefield and the other side of the trade won’t hesitate for a Nano-second to take their money. They understand that trading should be treated with the same care as running a business and properly deploying their capital out into the market is essential in bringing back even more capital for future trading opportunities that yield larger profits.
Although trading is now offered to the masses and anyone can pretty much open a brokerage account and begin to trade, there are millions of traders that are misinformed and approach the market incorrectly and unprofessionally. “But, I’m not looking to trade professionally, I just want to trade casually” sure, that is completely fine however guess who’s going to eat you alive in the markets? That’s right, the Elite traders who do take things seriously and professionally.
#6 - ELITE TRADERS PROTECT THEIR CAPITAL AT ALL TIMES
In the boxing world, what is one of the warnings referees issue to the fighter’s right before the fight begins? “Keep your hands up and Protect yourself at all times!” and for good reason, right? So that they do not put their hands down and get a crushing hard punch to the head that knocks them out cold. It doesn’t matter how well you trained or for how long you’ve trained because one lazy mistake can cost you the fight, in some cases brutally.
If you’ve been in the trading scene for any length of time, you have read or heard it countless times “manage your risk, manage your risk, manage your risk!” but how many traders ACTUALLY do it? You’d be surprised at how many do not do it at all because it’s painful to do. Painful? How so?... Well, it requires one to make small gains over time instead of putting the pedal to the metal and use high leverage on one single trade. That’s very difficult for the majority of traders to do because that means no “Account Flips” or trying to hit a homerun trade every single time and let’s face it, everyone is trying to get “rich” quickly.
Elite traders know that just one mistake of not practicing sound money management by either not using a stop loss or using too much leverage can be extremely dangerous to their account and they know that it’s just not worth it. On another note, they understand that following risk control is instilling good and strong habits for their subconscious mind and it will carry along for the rest of their careers if they just stick to that simple principle.
If there’s one major reason the majority of traders fail while a small percentage of traders make money consistently, it’s a lack of risk management and account/capital protection.
Before you step into the unforgiving arena (Forex) be sure to protect your account at ALL times! Keep your "Guard" up and play defense!
#7 - ELITE TRADERS AVOID DISTRACTIONS AND NOISE
This is a pretty interesting and controversial one. It can be difficult to ignore the distractions and noise because us traders want to be part of a group or community so that we can share ideas and forecasts along with everyone else but sometimes, you’ve got to be careful with this. You may have an idea or outlook that goes against what others think is going to happen and it could get you off track. You may have experienced this a few times where you believe the market is going to go in one direction and others share the complete opposite view which then causes you to doubt your analysis. You end up cutting the position too early for fear of being wrong and ultimately the market goes in the direction you thought it would and you’re left frustrated.
Distractions can also come in the form of upcoming economic data such as the Federal Reserve coming out with Interest Rates or its chairman Jerome Powell talking about certain economic projections. Volatility spikes up and it sucks you into the hype but if you have a sound trading strategy and rules, you may have noticed that even during high volatility, the market still respects order on the charts. It just moves as a faster pace.
I have personally experienced this through my years of trading, in fact a recent memory comes to mind in 2020. I was invited by an online friend to a private Meta trading group and I wanted to offer some help and insight into what I knew, so I shared a screenshot of my outlook of the EUR/USD going forward.
It was a powerful chart pattern I had seen countless times on the weekly chart and the EUR/USD was trading around 1.0850. Once I shared my screenshot calling for the Euro to make a strong 1000+ pip move and trend towards 1.2000 to 1.2200, some other group member immediately called my analysis a joke and that chart patterns were garbage and useless.
I was going to retaliate back but I thought to myself, this is childish, unprofessional and really unproductive, so I immediately left that group. My friend apologized and said the other guy had a chip on his shoulder because he was former banker for a massive global investment bank (I won’t say which one but I can guarantee you, everyone knows it). I appreciated the apology and left it at that. I the end, all that mattered to me was that as the months went by, the EUR/USD did in fact trend towards the exact projected price levels. That was a lesson for me to avoid detrimental opinions from others.
Elite traders know about this type of noise and are sure to remove any of that from their trading. This is why many stay “undercover” and you don’t really hear about them. They stay under the radar and just do what they do and do it well.
The overall lesson here is that a community should be about helping others and uplifting them, even when they’re wrong. No matter how great a trader is, he/she still deals with losses and nobody is ever correct 100% of the time. Trading is already difficult, so by encouraging and helping others become better at trading the markets, everyone improves as a whole.
Conclusion
There you have it, just some of the basics of what Elite traders do and what has transformed my own trading results tremendously. We all know that there are a variety of ways to approach the market but if there is one takeaway from all of this is that, Top Level traders have learned to master themselves and how they mentally approach trading. It’s actually quite simple and straight forward however it can be hard to implement in real time but that doesn’t mean that it cannot be done and transform your own trading. I wish you the best in your trading journey. I personally know it can be VERY tough but it's well worth it. Keep at it and never give up.
AUDNZD. one of the best book ever you gona read on trading.book notes my faviourit trading book.
youtu.be
all was looking for parallelisms of behavior learning read the tap.
all I knew was the arithmetic of it it was a matter of fact mine was the ideal way to operate in a bucket shop.
being right by using your head if I was right when I tested
it was one man's business to anyhow it was my head wasn't it prices either were going the way doped them out help from friends or partners or they are going other way and nobody could stop them out kindness to me.
in od day whenever a bucket shop was found loaded with too many bulls on certain stock it was common practice to some broker wash down the price of that particular far enough to wipe out all the customers that were long of it
whenever was an unexplained sharp drop which was followed by instant recovery the newspapers
2 if my order is big my own sales would tend future to press the price
when you know what not to do in order to not to lose money. you begin learn what to do in order to win . you begin to learn.
if the stock doesn't act right don't touch it being unable to wrong you cannot tell which way it is going no diagnosis no prognosis no profit.
i had to study what was going to happen to anticipate stock movements
it was the change in my own attitude toward the game that was of supreme to me it taught me little by essential difference between betting on fluctuations and anticipating inevitable advances in declines between gambling and speculating I had to go further than an hour in my studies of the market which was something I never would have learned to do in the biggest bucket shop in the world I interested my self in trade reports and railroad earning and financial commercial statistics
they call me the boy plunger . i like to study the moves, I never thought that anything was irksome if it help me to trade more intelligently.
before I solve a problem I must state it my myself, when I think I have found a solution I must prove I'm right. i know how to prove it and that is with my own money.
there is much to learn from partial victory as from a defeat
don't be a sucker, this semi sucker he loves to buy on declines he waits he measures his bargains by the number of points sold off from the top, big bull markets the plain unadulterated sucker utterly ignorant of rules and precedence buys blindly because he hopes blindly he makes most of the money until the one of the healthy reactions takes it away from him at one fell swoop but the careful mic sucker does what I did when I through I was playing the game intelligently according to the intelligent of others
big money is was not in the individual fluctuations but in the main movements that not reading the tap.but sizing up the entire market and its trend
it all was my sitting got that my sitting tight its no trick at all to be right on the market you all ways earily bulls and bulls earily bears and bear markets I know many man who was buying and selling as price as very level which is how the greatest profit and their experience invariably match mine that is they made no real money out of it.
men who can both be right and sit tight are uncommon I found it one o the hardest things to learn but it is only after a stock operator has firmly grasped this that he can make big money . its easy to millions will come to traders after he knows how to trade than hundreds did in the days of ignorance
the reason is that a man may see straight and clearly and become impatient or doubtful when the market takes its time about doing as he figured it must do that's why who all are not all in Wallstreet not in the soccer class not even third grade never the less lose money.the market does not beat them they beat themselves because though they have brains they cannot sit tight.
old turkey was dead right is doing and saying what he did and had not only the courage of his convictions but intelligent patience to sit tight.
you must study of general conditions and not tips or general factors affecting individual stocks then get out of you all your stocks wait until yous see or if you prefer until you see the turn of the market the beginning of the reveal of the general conditions have to use your brains and your visions to do this.
trade less unintelligently was that my initial operation seldom showed me a loss that naturally made me decide to start big it gave confidence my own judgment before I allowed it to be vitiated by the advice.of others or even by my own impatience at times without faith in his own judgment, no man can go very far in this game. that's all I earn to study general conditions to take a position and stick to it. i can wait without a twinge of impatience I can see a set mack without being shaken knowing that it is only temporary.
i watch the market with to look quotation board and to read the signs is one process union process going up, price is high but the stock as acted as accumulated I watched a couple of days without trading in it the more I watched it the more convinced i became that it was being bought on balance by somebody who was no somebody who not only had big bank roll but knew what was why very clever accumulation I through. as soon as I was sure this I naturally began to buy it 160. I kept on buying it 500 share at clip the more I bought stronger it got and I was feeling very comfortable I couldn't stop that stock go up a great deal more not what I read on the tape .
my tape reading simply told me someone manipulated by the insiders made the tape tell a story.
I belive competed for my education as a trader .it all I need to learn was not to take tips but follow my inclination it was that I gained confidence in my self and I was shake off the old method of trading that seratoga expirance was my last haphazard hit .
buying stock comfortable way know its not so much to buy as cheap as possible or go shorted at top prices buy.
buying and sell the right time, when I bearish and I sell a stock each sale mut be lower level. the previous sale , when I buying reverse is true I must buying in rising scale I don't buy a long stock on scale down I buy on scale-up let example I buy 200 share at no the stock goes up ill after I by it at least temporarily right in my operation because its point hier it show me profit I'm right I go and buy 2000 shares if market is rising I buy a third lot of 2000 shares say the price goes to 114 I think enough to time being for the time
I all was try to buy effectively in such a way as to help my side of the market when it comes to selling stocks its plain nobody can sell unless somebody wants those stocks if you operate large scale you will have to bear that in mind all the time a man studies conditions plans his operations carefully and proceeds to act well that man cant sell at will you cant expect the market to absorb 50,000 shares one stock easily as it does one hundred he will have to wait until he has a market there to take it there comes to time the requisite buying power there .
that opportunity comes he sees it as rule he will have been waiting for it he has to sell when he can not when he wants to learn the time he has to watch and test it's no trick to tell when the market can take what you give it.
starting movement its unwise to take on your full line unless you are convinced that conditions are exactly right to remember stocks are never too high for to begin buying or are too low to begin selling after the initial transaction don't make a second unless the first shows you a profit wait and watch that is where your tape reading cones in to enable you to decide as the proper time for beginning . at the exactly right time, it took me years to realize the importance of this it also cost some hundreds of thousands of dollars
500 stock don't buy all together if he is merely gambling the only advice I have to give him is don't .
i realize big money must necessarily be in the big swing whatever might seem to give a big swing its initial impulse the fact is that its continuance is not the result of manipulation by pools or artifice by financiers but depends upon basic conditions and no matter who opposes it the swing inevitably run as fast and as long as the impelling forces determine.
the man is not limited in his trading he could buy or sell an entire list in certain stocks a short line is dangerous after a man sells more than a certain percentage of the capital stock the amount depends upon how where and by whom the stock is but he could sell a million shares of the general list if he had the price without the danger or being squeezed.
man must study general conditions to size them so as to anticipate probabilities.
in the long run commodity prices are governed but by one law the economic law of demand and supply the business of the trader in commodity is simply to get facts about the demand and supply presence and perspective he does not indulge in guesses about a dozen things as he does in stocks
the massage of the tape is same that will be perfectly plain to anyone who will take the trouble to think he will find if he asks himself questions and considers conditions that answer will supply them self directly
the object is reading the tape is to ascertain first how next when to trade that is whether its wiser to buy than to sell it works exactly for stocks cotten weed or oats.
you watch the market that course of prices as recorded by the tape with one object to determine the direction that is the price tendency
price we know move up or down according to the resistance they encounter for purposes of easy explanation say like everything move along line of least resistance, therefore, they will go up is less resistance to advance than to a decline and vice versa.
speculator profit from rise or fall from whtever he maybe speculating line of least reisitance at the moment of trading and what he should wait for is the moment that line defines its selfs becuse that is his singnal to get busy
reading the tape see 130 has been stronger than buying and reaction in the price logically followed up to the point where the selling prevaild over the buying superficial students of the tape may conclude that the price is not going to stop short of 150 and they buy after reaction begins they hold on or sell out small loss or they go short talk bearish
the public whipswed that one marvels at ther persistance not learnning there lession eventily something happens increase the power of either the upward or the downward force and the point of greatest resistance moves up or down buy for 130 will for the first time be stronger than the selling at 120 be stronger tha the buying
price will break old barrier or movement limit and go on as rule is always a crowded traders who re short at 120. becuse it looks aweek or long at 130 becuse it looks so strong when the market goes against them they are forced after while either to change their minds and turn or close out more cleariy the line of least resistance
thus interligent trader who has patiently waitted to detrmine this line will enlist the aid of fundamental trade conditions and also force of the trading of that part of the community that happennened to guess wrrong and must now rectifying mistakes such corrections tend to push prices along the line of least of resistance
narrow market when prices not getting anywhere speak of but move with a narrow range there is no sense to trying to anticipate what the next big movement is going to be up or down thing s to do watch the market read the tape determine the limits of the get nowhere prices and make up your mind that you will not take and price breaks throught the limit either direction
a speculator must concern himself with making money out of the market and not insisting that tape must agree with him never ask it reasons explanations
speculative guns that is waitting for the linee of least resistance defines it self and begin buying only when the tape said up or selling only only said down . he should accumulate his line on the way up let him buy one fifth of his full line if that if that doesnot show him a profit he must not increase his holdings he has obviousely begun wrrong he is wrong tempororily and there is no profit in being wrong anytime.
man can spend years at onething and not acquire a habitual attitude towards it quite unlike average beginner the diffarence distinguishedes the professional from the amature it is the man way a looks at things that makes or loses money for him in the speculative markets
you have to get out you have a market that absorb your entire line failure to grasp the opertunitunity to get out maycost you millions you cannot hesitste if you do your lost nether neather runs like the price the bears by means of competitive buying for you may thereby reduce the absorbing capacity and i want to tell you that perceving your opportunity is not as easy it sounds
a man must be on the look out so alertly when his chance sticks in its head at his door he must grap it.
i get my pleasure out of matching my brains against the brains of othere traders men whom i never seen and never talked to and never advised to buy or sell and never expect to eet or know when i make money i make it backing my own opinions i dont sell them or capitalize them if i maid any way i would imagaine i had not earned it.your propostion does not intrest me im intrested in game only as i play it for my self and in y own way .
speculator has a host of enemies maney of whom successfully bore from within i had in mind my many mistakes i have learned that a man may possess an original mind and life long habit of independent thinking and with all be vulnerable to attacks by the persuasive personality
im fairly immune from the commoner speculative ailments such as greed and fear and hope but being ordinary man i find i can heir with great ease i ought to have been on my guard at this particular time bacuse not long before that i had an experience that proved how easily a man may be talked into doing something against his judgment and even against his wishes .
i learn my self that i could not trust my self to remain equally unaffected by men and misfortunes . all times .
man know himself thoroughly if he is going to make a good job out of trading in the speculative markets to know what i was capable of in the line of folly was a long educational step .
a trader studying basic conditions remanbering market precedence and keeping in mind the psyshology of the public as well as the limitations of his brokers must also know himself and provide against his own weaknesses
i have studied and reckoned on my own reactions to given impulses or to the inverable temptations of an active market quite in same mood and spirit as i have considered crop condtions anylyize reports of earnnings so day after day broke and enxiouse resume trading i sat in front of quation board in another brokers office where i couldnt buy or share one share of stock studying the market not not missing a single trasaction on the tape . watching the psychological moment to ring full speed ahead bell by reason of condition whole world.
than one day entire market become quite weak and prices all stock begain to fall i had a profilt of least four point in each and evry one of the 12 stocks that i was short of i knew that i was right the tape told me it was now safe to be bearish so i promptly doubled up i had my postion i was short of stocks in a market that now was plainly bear market there wasnt any need for me to push things along the market was bound to go my way and knowing that i could afford to wait after i double up i dint make long trade for long time .
when something happens on which you did not count when you maid your plans it behooves you to utilze the opertunitiey that a kindly fate offers you for one thing on a bad break like that you have big market one that you can turn arround in and that is the time to turn your paper profits in to real money , even bear market a man cannot 120,000 share stock without putting price on himself he must wait for the market that will allow him to buy that much at no damage to his profit as it stands him on paper .
my expirance 30 years of trader is that such accident are usally along the line of least resistance which i base my postion in the market another thing bear in mind is never try to sell at the top it isnt wise sell sell after reaction if there is no rally
as i said before man doesnot have to marry one side of the market death do them part.
honesty is a best practice the big money was in being square and not in welshing , i never throught it good business to play any game in any place necessary keep an eye on the dealer becuse he was likely cheat if unwatched.
but against the whining welsher the decent man is powerless fair play is a fair play i could tell you a dozen instance where i been the victim own belief in the sacredness of the pladged word or of the inviobility gentlemen agreement.
life it self from the cradle to the grave is gamble.
expirance has taught me that a man can aways find an opportunity to make his profit real and that opportunity usually coes at the end of the move . that inst tape reading or hunch.
you can transmi knowlage that is your particular card index facts. but not expirance a man may know what to do and lose money if he doesnt do quicly enough onservation expirance and mathamtics these are thr sucessful trader must depend on.
he must not observe accurately but reemanber at all times he has obserb he cannot bet un reasonable or unexpected how ever personal convection maybe about mans unreasonabaleness he must bet on probabitilites try to anticipate them years of practice of the game consitance study of always remanbering enable the trader to act the instant when te unexpected happens as well as when the expected come to pass
after years of the game it become habit to keep posted he acts almost automatically he acquires the invalauble professional attitude and that enables him to beat the game at times this diffrents between the professional and the amature or accasional trader cannot be overmphased .
i find instance menory and mathamtics help me very much. wall street makes money on mahamtics basis it makes money facts and figures
when i said trader ha to keep posted to the minute and that he must take professional attitude toward all developments im merely
expirance trader act so quckly that he has all kind of reson to give advance but never the good and sufficient reasons becuse they are based on facts collected by him years of working and thinking and seeng things from the angle of the proffesional
professional attitide i keep track of all commedites allways ints habit of years figures and condition yield mathamtics
expirance has tought me that the way a market behaves excellent guide for an operator to follow its like a taking a patient temperature and pulse or nothing the clour of the eye balls and the coating of the tought.
buying ten thousand , fifteen tousand bushels instesd taking two or 3 trasaction price went down and quarter cent on my selling now i need not waste time the way market took my weat and the desproportion decline on my selling told me there is no buying power there such being the case what is only thing to do of course sell lot more
i found expirance that abto be a steady dividend pay in this game. and observation gives you best tips for all. you need to observe the stocks .
vision without money means heartaches with money it means achivements that means power and that means money that means achivement
the majority of cases the object of manipulation is sell stock to the public at the best possible price its not question of alone selling its distributing .
i sell stock on balance if the demand is what it ought to be it will absorb more than the amount of stock i was compelled accumulate in the earily stages of manipulation when this happens i sell the stock short that is tecnically in othere words i sell more stock i actually hold it is perfafectily safe for me to do so since im really selling against my costs ofcox demnd from the public slackens stock try to be advance than i wait i see stock become advance weekday entire market maybe develope rectionary tendancy or some sharp traders may precive there no buying orders are no buying to speak my stocks and he sells it. and his fellows follow what ever resons maybe my stocks go down , i begin to buy it i give it the support that a stock i have if its good order own sponsers and more im able to to support it without accumlating it that is without increasing it the amount i shall have to sell later on observe that i do this without decreasing my finceal resources ofcox i i sold short at higher coving prices when the demand rom the public or fro the traders or from borth enabled me to do it
sometimes stocks get waterlogged as were it doesnt go up that is a time to sellthe price naturally will go down on your selling rather futher thn you wish but you genarally nurse it back as long as the stock that im maipulating goes up on my buying i know im hunky and i need be i buy it with confidence use my own money without fear priceisely as i would anyothere stocks that acts the same way its line of least resistance .
when the price line of least resistance is established i follow it not im manipulating that particular stocks at particular moment becuse im a stock operator at all times when my buying doesnot put stock up i stop buying and then proceed to sell it down and that also is exacitly what i would do with same stock if i did not happen to be manipulating
the principal marketing of the stock as you know i done on the way down its perfactily astonishing how much stock a man can get rid of a decline i repeate at no time during the manipulation do i forget to be a stock trader my problems as manipulator after all are same that conforont me as an operator all manipulation comes to end when the manipulator cannot make a stock do what he wants it to do when the stock maanipulating doesnt act as it should quit dont argue with the tape do not seek to lure the profit back quit while the quitting is good and cheap .
you dont sell and bulk on the advance you cant big selling is done on the way down from the top . i canot put your stock to 125 or 130 i like to but it cant be done so you have to begin your selling to from this level my opinion all stocks are going down and petrolume products isnt going to be the one excepttion its better for go down now on the pool selling than for it to break next month on selling by someone else it will go down anyhow .
value making information kept from public while the now tacit term prominent insiders go to the market and buy all the cheap stocks they can lay their hands on as this well informed but unostentatious buying keeps on the stocks raises finacial reporters knowing that the insiders ought to know reason to the rise ask questions the unanimously anonymous insiders unanimously declare that they have no news to give out they do not know that there is any warrant for the rise continues and there comes a happy day when those who know have all the stock they want and can carry street at once begin to hear all kind of bullish rumors the tickers ell the traders on good authority that the companey has definitly turn the corner
trend is know down ward just as they brought without any flourish or trumpets when the compneys business term for better they now silentily sell inside selling the stock naturally decline then the public begins to get the familier explanations a leading insider asserts that everything is ok and decline is merly the result of selling by bears who are trying to affeted the genral market