Is Forex Trading a Good Career?For anyone interested in beginning a forex trading career, it's important to thoroughly evaluate the advantages and disadvantages listed above. If the cons of forex outweigh the pros for you, then it may be better to search for a more suitable line of work.
However, it is possible that people could build a career in the foreign exchange market. The freedom to conduct forex trading autonomously and remotely is truly life-changing for those up to the challenge. Given adequate risk capital, connectivity and a solid forex brokerage service, it is possible to make a good living trading major, minor, or exotic currency pairs.
So, is forex trading a good career? The answer to that question depends upon one's resources, aptitude and interest. If you have the three Ds―desire, discipline and dedication―then yes, forex trading can be a profitable and gratifying way to make a living.
Forextrading
Can You Trade Forex And Have A Day Job?For many, working a full-time job is a non-negotiable part of life. Sustaining an existence, no matter how meager or lavish, often requires the dedication of most of our waking hours. Expenses such as rent, a mortgage, utilities, food and transportation are obligations that must be satisfied. While there are exceptions, meeting these challenges typically requires securing full-time employment, Monday through Friday.
Regardless of one's chosen profession, working hours typically represent a major portion of our lives. For those who secure employment in the financial markets, the scenario is certainly no different. However, the extent of time spent at work does vary depending upon location, culture and industry.
Therein lies one of the biggest advantages to trading currencies on the forex: flexibility. No matter where one lives, or what one does for a living, it is possible to trade the forex. The only prerequisites to trade on a full or part-time basis is desire, an internet connection, computing power and a broker. If you have these assets, then you can become a forex trader.
Market Orders 📉📉📉🎯 In the financial market the orders are on two categories.
✅ Market Execution orders LONG - BUY SHORT - SELL meaning that you are ok with the price on the certain asset and you would like to short or long it on the other side there is
✅ Pending Orders - meaning you are not ok with the actual price and you would like to buy/sell it later in time I use pending orders when i am out of my trading office so i dont miss trading opportunities
Power of Consistency 📉📉📉Consistency Power
🔰 Don't focus on short term results when trading, it's a marathon not a sprint. You can't become elite traders overnight
🔰 Don't care about short term results and single trade outcome, only look at the weekly,monthly results as they are not random as daily results,a single trade means nothing dont be anxious and change something in your system only if you have more than 100 trades journaled so you know what works and what doesn't
🔰 Don't try to hit home runs aka BIG RETURNS OVERNIGHT it's a gambler short term thinking and their account have zero durability overtime
🔰 Focus on risk management and improve your edge over the market on a daily basis both technical and mental/emotional
LONG TERM over SHORT TERM ✅
Healthy Mind 📉📉📉🧠 How to keep Mind Healthy ?
🎯 Don't go against the Markets
Always and always learn from your mistakes & try to never make that again.
🎯 Be Humble
Patient and resist the ilussion that you somehow possess the alchimist's stone of trading, head down and work hard, cocky attitude will ruin your trading career
How do you stay with a healthy mind in the markets ?
Volume Trading Indicator ✅✅✅✅ Volume is an important indicator in technical analysis because it is used to measure the relative significance of a market move. The higher the volume during a price move, the more significant the move and the lower the volume during a price move, the less significant the move.
✅ Volume indicators are technical tools to evaluate a security's bull and bear power. Most look specifically at buying vs. selling pressure to determine which side is in control of price action. Others attempt to identify emotions that are moving the security at a particular time.
✅ A high positive multiplier with high volume indicates strong buying pressure which pushes the indicator higher. On the other hand, a low negative number with high volume indicates strong selling pressure which pushes the indicator lower.
✅ Down volume indicates bearish trading, while up volume indicates bullish trading. If the price of a security falls, but only on low volume, there may be other factors at work aside from a true bear turn
Do you use Volume Trading Indicator ?
Cup and Handle Trading Pattern 📉📉📉✅ A cup and handle is a technical chart pattern that resembles a cup and handle where the cup is in the shape of a "u" and the handle has a slight downward drift. A cup and handle is considered a bullish signal extending an uptrend, and it is used to spot opportunities to go long.
🎯 Cup Handle Pattern
William O'Neil's Cup with Handle is a bullish continuation pattern that marks a consolidation period followed by a breakout. ... The cup forms after an advance and looks like a bowl or rounding bottom. As the cup is completed, a trading range develops on the right-hand side and the handle is formed
🎯 What happens after cup and handle pattern?
If a cup and handle pattern is confirmed, it will be followed by a bullish price move upward. You can pick a price target based on the size of the cup, but it becomes much less clear what will happen after the initial breakout from the cup and handle pattern.
🎯 How reliable is cup and handle pattern?
The accuracy rate for cup and handle pattern for forex and stock on Daily timeframe are 65% and 68% respectively.
Three Black Crows Candlestick Pattern 📉📉📉Three black crows is a phrase used to describe a bearish candlestick pattern that may predict the reversal of an uptrend. Candlestick charts show the day's opening, high, low, and closing prices for a particular security. For stocks moving higher, the candlestick is white or green.
🎯 The three black crows candlestick pattern is considered a relatively reliable bearish reversal pattern. Consisting of three consecutive bearish candles at the end of a bullish trend, the three black crows signals a shift of control from the bulls to the bears.
✅ The black crow pattern consists of three consecutive long-bodied candlesticks that have opened within the real body of the previous candle and closed lower than the previous candle. Often, traders use this indicator in conjunction with other technical indicators or chart patterns as confirmation of a reversal.
✅ Three Black Crows Explained
Three black crows are a visual pattern, meaning that there are no particular calculations to worry about when identifying this indicator. The three black crows pattern occurs when bears overtake the bulls during three consecutive trading sessions. The pattern shows on the pricing charts as three bearish long-bodied candlesticks with short or no shadows or wicks.
In a typical appearance of three black crows, the bulls will start the session with the price opening modestly higher than the previous close, but the price is pushed lower throughout the session. In the end, the price will close near the session low under pressure from the bears.
This trading action will result in a very short or nonexistent shadow. Traders often interpret this downward pressure sustained over three sessions to be the start of a bearish downtrend.
✅ Limitations of Using Three Black Crows
If the three black crows pattern involves a significant move lower, traders should be wary of oversold conditions that could lead to consolidation before a further move lower. The best way to assess the oversold nature of a stock or other asset is by looking at technical indicators, such as the relative strength index (RSI), where a reading below 30.0 indicates oversold conditions, or the stochastic oscillator indicator that shows the momentum of movement.
Many traders typically look at other chart patterns or technical indicators to confirm a breakdown, rather than using the three black crows pattern exclusively. As a visual pattern, it is open to some interpretation such as what is an appropriately short shadow.
Do you use this candlestick pattern ?
Stochastic Trading Indicator 📉📉📉📉 The Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods. The indicator can range from 0 to 100. The closing price tends to close near the high in an uptrend and near the low in a downtrend, the stochastic indicator is a two-line indicator that can be applied to any chart. It fluctuates between 0 and 100. The indicator shows how the current price compares to the highest and lowest price levels over a predetermined past period.
📉 How do you use a stochastic indicator?
How to use the Stochastic indicator and “predict” market turning points
If the price is above 200-period moving average (MA), then look for long setups when Stochastic is oversold.
If the price is below 200-period moving average (MA), then look for short setups when Stochastic is overbought.
📉 Is fast stochastic good?
The "fast" stochastic uses the most recent price data, while the "slow" stochastic uses a moving average. Therefore, the fast version will react more quickly with timely signals, but may also produce false signals. The slow version will be smoother, taking more time to produce signals, but may be more accurate.
Do you use Stochastic Indicator ?
Trading Aspects to Master 📉📉📉🎯 Analysing
To trade like a profesional first of all you have to learn technical/fundamental techinques to trade the market without them you have zero chance to succed in the markets.
Learn - candlestick patterns, simple patterns, fibonaci, market structure, trendline, imbalance, orderblock, volume profile etc
🎯 Risk Management
To survive in this game you need a very strict risk management, you will pass hard times and your account will survive.
Risk Management rules should include :
Risk per trade
Session Risk
Daily Drawdown Limit
Weekly Drawdown Limit
Monthly Drawdown Limit
You have to know your numbers, start small then grow.
🎯 Entries
Develop a rule based entry strategy always and every time, for example you will short a certain asset only if price is in a bearish market structure and its rejecting a fibonacci key area, you have to build your own system and develop confidence.
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Intra-Day Strategies 📉📉📉Today i will share with you types of intra-day strategies that can work in every market no matter if it's forex/stocks or crypto.
📊 Reversal Strategy
Buy close to the support (demand area) and sell from the resistance (Supply area) for the reversal move
📊 Patterns
Buy/Sell using different technical patterns such as Wedge,Triangle,DoubleTop Double Bottoms, Head&Shoulders
📊 Moving Averages
Using MA to understand trends and cross-overs, basically you have to LONG when price is above EMA/MA and vice-versa
📊 Pullbacks
When a new's event makes a big movement such as CPI,NFP, Unemployment but then a correction move happens
📊 Gap Up/Down
Trading Gap's Up/Down basically they appear during fundamental release or fundamental context when the market is closed, it's basically a big discrepancy between buyers and sellers
What is your intra-day strategy
📊 What is Market Seasonality ? 🎯 Seasonality refers to particular time frames when stocks/sectors/indices are subjected to and influenced by recurring tendencies that produce patterns that are apparent in the investment valuation.
🎯 Seasonality is a characteristic of a time series in which the data experiences regular and predictable changes that recur every calendar year. Any predictable fluctuation or pattern that recurs or repeats over a one-year period is said to be seasonal.
📊 What is a Seasonality Forecast?
In time series data, seasonality refers to the presence of variations which occur at certain regular intervals either on a weekly basis, monthly basis, or even quarterly (but never up to a year). Various factors may cause seasonality - like a vacation, weather, and holidays
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✅ You can use the Market Seasonality as an extra fundamental confluence for the price, we have 2 market seasonalities bullish and bearish. If a price has bullish seasonality it means the pariticular asset will tend to rise during that cycle and viceversa. Market Seasonality (MS) is a good tool to have in your arsenal but only if you are trading on a mid-long term perspective. You can't trade using the market seasonality on a scalping or a intra-day basis because it makes no sense.
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Survival Rules in TRADING 📉📉📉📉 Survival rules in trading for newbies, if you respect those rules i can make a bet you wound't lose your account as the majority of traders are.
📉 The key word there is IF YOU RESPECT
✅ 1. Always trade with a stop loss
✅ 2. Have a pre-determined risk on each trade no more then 1%
✅ 3. Don't move your stop loss if the price is not going in your favour
✅ 4. Don't add to losing positions, only viceversa. Add to your winning positions
✅ 5. You have to increase your risk only if you are in profit on your account, decrease your risk when you are losing and increase it when you are winning.
Hope that was usefull for your trading plan.
Forex Market ✅✅✅
✅ KEY TAKEAWAYS
The foreign exchange (also known as FX or forex) market is a global marketplace for exchanging national currencies against one another.
Market participants use forex to hedge against international currency and interest rate risk, to speculate on geopolitical events, and to diversify portfolios, among several other reasons.
Major players in this market tend to be financial institutions like commercial banks, central banks, money managers and hedge funds.
Global corporations use forex markets to hedge currency risk from foreign transactions.
Individuals (retail traders) are a very small relative portion of all forex volume, and mainly use the market to speculate and day trade.
✅ Who Trades Forex?
The forex market not only has many players but many types of players. Here we go through some of the major types of institutions and traders in forex markets:
📊 Commercial & Investment Banks
The greatest volume of currency is traded in the interbank market. This is where banks of all sizes trade currency with each other and through electronic networks. Big banks account for a large percentage of total currency volume trades. Banks facilitate forex transactions for clients and conduct speculative trades from their own trading desks.
When banks act as dealers for clients, the bid-ask spread represents the bank's profits. Speculative currency trades are executed to profit on currency fluctuations. Currencies can also provide diversification to a portfolio mix.
📊 Central Banks
Central banks, which represent their nation's government, are extremely important players in the forex market. Open market operations and interest rate policies of central banks influence currency rates to a very large extent.
A central bank is responsible for fixing the price of its native currency on forex. This is the exchange rate regime by which its currency will trade in the open market. Exchange rate regimes are divided into floating, fixed and pegged types.
Any action taken by a central bank in the forex market is done to stabilize or increase the competitiveness of that nation's economy. Central banks (as well as speculators) may engage in currency interventions to make
their currencies appreciate or depreciate.
For example, a central bank may weaken its own currency by creating additional supply during periods of long deflationary trends, which is then used to purchase foreign currency. This effectively weakens the domestic currency, making exports more competitive in the global market.
Central banks use these strategies to calm inflation. Their doing so also serves as a long-term indicator for forex traders.
📊 Investment Managers and Hedge Funds
Portfolio managers, pooled funds and hedge funds make up the second-biggest collection of players in the forex market next to banks and central banks. Investment managers trade currencies for large accounts such as pension funds, foundations, and endowments.
An investment manager with an international portfolio will have to purchase and sell currencies to trade foreign securities. Investment managers may also make speculative forex trades, while some hedge funds execute speculative currency trades as part of their investment strategies.
📊 Multinational Corporations
Firms engaged in importing and exporting conduct forex transactions to pay for goods and services. Consider the example of a German solar panel producer that imports American components and sells its finished products in China. After the final sale is made, the Chinese yuan the producer received must be converted back to euros. The German firm must then exchange euros for dollars to purchase more American components.
Companies trade forex to hedge the risk associated with foreign currency translations. The same German firm might purchase American dollars in the spot market, or enter into a currency swap agreement to obtain dollars in advance of purchasing components from the American company in order to reduce foreign currency exposure risk.
Additionally, hedging against currency risk can add a level of safety to offshore investments.
📊 Individual Investors
The volume of forex trades made by retail investors is extremely low compared to financial institutions and companies. However, it is growing rapidly in popularity. Retail investors base currency trades on a combination of fundamentals (i.e., interest rate parity, inflation rates, and monetary policy expectations) and technical factors (i.e., support, resistance, technical indicators, price patterns).
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Tips for Trading Currency Pairs ✅📉 Trading Currency Pairs
I will try to explain in this post what you should look at when you are starting trading the Forex Market (Currency Market )
✅ Choose Liquid Pairs
Choose liquid pairs so you will have all your orders filled easily, dont trade pairs with low Liquidity as those can impact your trading results. EURUSD / GBPUSD / AUDUSD / NZDUSD etc and don't trage USDZAR / USDRON / USDBRL and other exotic pairs
✅ Analyze Fundamentals
Fundamentals drive the markets especially in the Forex Market, take a look at the country's monetary policy are they hawkish or doveish on a certain currency, also take a look at inflation, nfp, unemploymenyt, gdp as those affect the market as well.
✅ Determening the Leverage
My recommend leverage for newbies is something around 1-30 / 1-50 so you wound't over trade.
✅ Trading Strategy
Always ensure you have a trading strategy when you will start to trade, look at those things such as market structure, key psychological levels, fiibonacci, moving averages to build a trading strategy.
✅ Choose your Trading Timeframe
You have to know what trading style you are trading, is this scalping on the lower time frame or highertimeframe position trading. Ensure you have this noted in your trading plan
Plan Before Execute 📉📉📉✅ Plan Before Execute - It is very important when you stard trading financial markets to have a plan that you follow, no plan means you dont know what you are doing and where you are going.
✅ Have an entry strategy - it is very important to know your edge, your edgea means when you enter the trades based on what confluences. Couple confluences or entry strategies are trading with the market strucutre + key leveles + fibonaci retracement or moving averages to generate trading ideas
✅ Use Stop Losses to Protect Capital - The first goal of a trader should be capital protection not capital growth, always use the stop loss on each trade. Use Take Profit - You are making money when you are closing the position, its also very important when you are closing the trade. Always place your take profits in areas where price gives a reverse signal. For example you entered from a support area with a BUY you put your TAKE PROFIT near a resistance area where price could reverse
What do you think ? Comment below..
Bearish Engulfing Pattern 📉📉📉Bearish engulfing pattern is a technical chart pattern that signals lower prices to come. The pattern consists of an up (white or green) candlestick followed by a large down (black or red) candlestick that eclipses or "engulfs" the smaller up candle.
✅ A bearish engulfing pattern is a hint that a market may have formed a top. Any engulfing pattern below the daily time frame should be ignored. These patterns should only be traded at swing highs. The engulfing candle must break key support to be considered “tradable
✅ Bullish engulfing patterns are a confirmation that more buyers want to join the uptrend. On the other side, a bearish engulfing pattern gives confirmation for more sellers joining the short side
✅ An engulfing pattern is a strong reversal signal. There are bullish and bearish engulfing patterns and they are composed of two candlesticks – one bullish and one bearish. ... It is no
Power of Consistency 📉📉📉📉 Consistency Power
🔰 Don't focus on short term results when trading, it's a marathon not a sprint. You can't become elite traders overnight
🔰 Don't care about short term results and single trade outcome, only look at the weekly,monthly results as they are not random as daily results,a single trade means nothing dont be anxious and change something in your system only if you have more than 100 trades journaled so you know what works and what doesn't
🔰 Don't try to hit home runs aka BIG RETURNS OVERNIGHT it's a gambler short term thinking and their account have zero durability overtime
🔰 Focus on risk management and improve your edge over the market on a daily basis both technical and mental/emotional
LONG TERM over SHORT TERM ✅
RSI Trading Indicator 📉📉📉🎯 RSI - Relative Strenght Index
What Is the Relative Strength Index (RSI)?
The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100.
Traditional interpretation and usage of the RSI are that values of 70 or above indicate that a security is becoming overbought or overvalued and may be primed for a trend reversal or corrective pullback in price. An RSI reading of 30 or below indicates an oversold or undervalued condition (kindly see the photos attached)
Survival Rules in TRADING 📉📉📉‼️ Survival rules in trading for newbies, if you respect those rules i can make a bet you wound't lose your account as the majority of traders are.
‼️ The key word there is IF YOU RESPECT
✅ 1. Always trade with a stop loss
✅ 2. Have a pre-determined risk on each trade no more then 1%
✅ 3. Don't move your stop loss if the price is not going in your favour
✅ 4. Don't add to losing positions, only viceversa. Add to your winning positions
✅ 5. You have to increase your risk only if you are in profit on your account, decrease your risk when you are losing and increase it when you are winning.
Hope that was usefull for your trading plan.
Liquidity Concept 📈Hi guys! I would like to briefly explain my strategy, I use liquidity to understand where should market go .
🏦 Liquidity is basically a zone in the market where a lot of stops are located both retail/ institutional, I will look to enter near that area but only after the manipulation on the buy-side or sell-side liquidity to all my trades with "Smart Money". as known as "Wall Street"
You can separate the Liquidity Concepts in two areas.
✅ Buy Side Liquidity - area of the price where sellers put their stop loss, its located on old highs, equal highs (Resistance) above double tops, above key psychological numbers
✅ Sell Side Liquidity - area of the price where buyers put their stop losses, usually below old lows, below equal lows(support), below psychological key levels.
‼️ REMEMBER
Dumb Money sell at high
Smart Money SELL ABOVE THE HIGH
Dumb Money buy at low
Smart Money BUY BELOW THE LOW
Using this concept as i explained you will have less stop losses because you will allign your trades with institutional orderflow.
What is going on in the markets? Aftermaths of Russian invasionRight after Russia declared war and started its military operations in Ukraine, the markets started going crazy. Investors started moving to "safe heaven" trades and sticking with "risk-off" securities.
GOLD (XAU/USD) is everyone's favourite to trade for the moment, as the price plummeted straight after the escalation of the war. It has experienced a growth of +4.5% so far, and it has more upside potential.
EUR/USD, having a strong negative correlation with GOLD, has endured a 200 pip drop so far, constituting a 1.8% dip. AUD/USD, GBP/USD and other highly correlated USD pairs have deteriorated as well.
BITCOIN, often claimed as "digital Gold", is still continuing its downside movements, experiencing a 12.6% drop in 24 hours.
Sticking to the safe heavens and riding the trend would be the best possibility right now. Also, remember to stay risk tolerant and cold-blooded, as the markets could get really volatile from time to time, taking into account the current situation.
Price Action Definition #2Price Action Definition #2
Hello My Dear Traders... I Am A New Trader... Not Too Long In The Game... But Just Starting Out On Social Media To Help Grow Myself As A Price Action Trader
I Am New To Trading View And I Am Hoping That I Can Fit Right In And Hopefully Make Some Great Educational & Analytical Content With Accurate And Understandable Information... Thank You
Price Action Trading Is My Way Of Trading... And I Just Wanted To Share Some Information On This Great Trading Style Of Trading The Markets Using Past Historical Price Movement And Data
As A Price Action Trader It Is Crucial That You Learn To Read & Understand What The Candlesticks On The Chart In Front Of You Are Saying.
You Need To Remember That The Market Leaves Clues And These Clues Are Somewhere Hidden In The Chaos / Confusion And Noise Of The Market...
Price Action Is A Form Of Technical Analysis... And It's Main Focus Is On The Relationship Of A Market's Current / Recent And Most Importantly Past Price Action / Price Movements
When It Comes To Price Action... The Candlesticks And Bars That Are Printed On The Charts Help To Play A Very Important Role In The Market And Also In Your Interpretation Of What Is On The Charts.
You Need To Also Remember That Second-Hand Indicators And Price-Derived Indicators Are Especially Not Needed When Trading With Price Action And Your Specific Price Action Trading Strategy.
Think Of Those Printed Candlesticks On The Charts As First-Handed Market Data
Price Action Trading Analysis Gives The Trader The Opportunity To Make Sense Of What The Market's Price Movement Is Trying To Convey Through Patterns Or Price Action Signals And Price Action Setups...
This Is Why When You Are Trading With Price Action... You Must Have A Proper Price Action Trading Strategy That Has Been Previously Tested And Approved...
There Are Many Many Price Action Strategies Out There... You Just Need To Pick One - Learn It - Study It - And Understand Its Function And Process, And Most Of All Master It.
You Must Master Your Strategy... It Is Very Important That You So.
As A Price Action Trader... You Should Generally Be Concerned With The Last 3-6 Months Of The Market's Past Historical Price Action Data.
Last But Not Least... You Need To Remember That All Of The Price Action And Market Data That You See On A Chart Is A Result Of The Minds / Emotions And Attitudes Of Traders / Investors And Anyone Participating In The Everyday Cycle Of The Market And The Economy...
Hope You Enjoyed This Lesson... Please Stay Tuned For The Last And Final Part Of This Trading Lesson
