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.
Forextrading
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
Price Action Definition #1Price Action Definition #1
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
Price Action Trading Is A Style Of Trading That Utilizes Price Movements Across A Specific Time Period
Price Action Traders Base Their Trading Decisions Off Of Price / Market Movements Rather Than On Market Indicators
Price Action Trading Ignores Other Means Of Analysis Such News / Economic Events And Fundamental Analysis That Tend To Influence The Movements Of The Markets
Price Action Traders Use Raw Price / Market Historical Data To Help Them Predict Future Price Movements And Market Direction. This In And Of Itself Is A Form Of Technical Analysis
As A Price Action Trader... your main concern is to know how to Read And Understand the movements of the Market. A Price Action Trader ignores all the fundamental factors that tend to influence the movements of the market.
Price Action Traders solely rely on Price Action Data And Past Historical Market Data to help them predict future Market Movements And Direction.
Price Action is the Movement Of Price And How Price Changes... which is the "Action" of price. Price Action is much easily observed in markets with High Liquidity And Volatility.
But any market where anything is Bought Or Sold will most certainly produce some kind of Price Action
Price Action Is A Great Way Of Trading...
It Has Been Around For Many Many Years And Has Been Used By Many Many Traders All Over The World For Many Decades...
As The Saying Goes... PRICE ACTION Is King
🔥 Types of Analysis 📉 In trading and investing there are 2 t🔥 Types of Analysis
📉 In trading and investing there are 2 types of analysis a trader can make to have an edge and generate trading ideas.
📉 There is no such thing as technical analysis is better than fundamental or viceversa, personally i use fundamental analysis to understand what to buy or what to sell on a mid-long term perspective and technical analysis basically shows me when to enter the trade at a better price level.
‼️ Fundamental Analysis
• Using of the financial statements, news and events to generate trading ideas
• Mid-Long term approach
• Usually investors/traders use this for investing or position trading that could last for couple months
‼️ Technical Analysis
• Use chart, volume and price action
• Short-mid term approach
• Usually people use this for intra-day or intra-week moves
Which one you like more ?
📍 Trading Styles 📍 Trading Styles
There are a lot of strategies and types of traders and investors in the financial markets, this doesn't mean you have to learn all of them. In my opinion you should try all trading types and then conclude which one suits more to your personality becuase there is no such thing as you HAVE TO trade intraday or swing or position, everything depends strictly on you.
✅ Scalping Traders
Holding positions for several minutes, in my opinion its not recommended for the newbies as you will see a lot of losses and wins during the day and this can hurt your emotions.
✅ Day Traders
Holding positions for couple hour or a day, they basically when to know ar the end of the day If they made money or not. Same recommendation as for scalping
✅ Swing Traders
Holding positions for a several days, intra-week trading. This is the recommendation for the newbies as you dont get the market feedback really fast and you can counter emotions + overtrading, usually they take 4-5 trades during the trading week.
✅ Position Traders
Holding positions for several weeks, usually this type of traders trade on a weekly-monthly basis with a focus on the fundamental analysis more than on the technical side. Recommended for experienced traders as you can get big returns with a iron patience
What type do you like or want to be ?
🎯 Trading Plan Questions I will try to show you in this post how my intra-day trading plan works and what exactly do i use in terms of risk,pairs,timeframes.
✅ What are my trading goals ?
My intraday trading goal is to close the day in GREEN, but if i see no opportunities i dont push the buttons just to get to a profitabile day.
Focus on making 1% a day this means 22% a month that is a lot just do your math and understand the power of consistency
✅ What timeframe do i use ?
My intra-day timeframes that i am using are H1/M30/M15 you need to
know which is your higher timeframe and execution time frame for me its M15, neither higher or lower.
✅ How long to hold trades ?
Usually in 80% of the trades i hit the stop loss or take profit order before the day ends, i can left a open position overnight only if it's secured risk.
✅ Which Currency Pairs to follow ?
As you are trading intra-day you need volatility and low spreads, i trade the most volatilite instruments such as nasdaq, gold, oil, gbpusd, gbpjpy, bitcoin on the session opening as the spread is lower during those hours.
✅ What is the Risk per Trade ?
When you are starting an intra-day account you have to know first of all what will be the risk you take in every trade, the session risk and finally the daily risk.
It's very important to RESPECT the daily risk rule as this keeps you in the game when the market conditions are bad.
What is your Trading Plan ??
Imbalance Concept ✅✅✅ ⭐️ An imbalance of orders is when a market exchange receives too many of one kind of order—buy, sell, limit—and not enough of the order's counterpoint. For sellers to complete their trades, there must be buyers and vice versa; when the equation is slanted too heavily in one direction, it creates an imbalance.
I use imbalances both bullish and bearish to spot where price made ,,un-natural,, moves that should be filled as a tipical GAP move, i will look at them as MAGNET area where price should be attracted where price should go.
⭐️ You can use them as entry areas when price fills the imbalance area or profit target zones
I attached couple photos where you can see bullish & bearish imbalances both filled and un-fullfiled(price didnt come back)
Hope that was insightfull
FOLLOW / LIKE for more content ✅
⭐ ZOOM OUT ⭐ ZOOM OUT
1️⃣ When preparing to take a trade, it is better to take a broad look at the charts.
2️⃣ Taking into account the higher time frame charts, makes you see the bigger picture of the market structure and have a better bias.
3️⃣ Analysis carried out on the daily (1D) and
four hour (4H) gives you "stronger entries" and reduces the chances of having false signals.
4️⃣ Of course there are different types of traders, and the SCALPERS would not want to stay long in the markets thus trading the smaller time frame. This can also be done with reference to higher time frame zones by scalping only when the market is around a strong reaction point from the higher time frames.
💥 ZOOM OUT
⭐ DO NOT FOMO⭐ DO NOT FOMO
💥The financial market provides trading opportunities every day.
💥Do not FOMO (Fear of missing out). Most often rather than not you will always be in the wrong end of a trade if you FOMO on it
🤔 What to do instead?
1. Remain calm, if you didn't plan the trade, let it be.
2. Ignore traders who shill trading opportunities without giving you concrete reasons and research details.
3. DYOR (DO Your Own Research).
4. Understand that you will get other opportunities so no need to panic.
DO NOT FOMO !!!
The Trader As An ArtistArtist What is art? I hear people say that word (art) a lot. In my opinion, everyone should stick to what they consider it to be. These arguments have been going on for the longest time. Ain’t stopping soon. Funny, when most hear the word “art” they’d have already imagined: the Da Vinci’s Mona Lisa or Vincent Van Gogh’s Starry nights. Art is actually one of the first way we learnt to explore the world—Through its elements and principles.
Today I opened my desktop… or is it laptop? Any-hoo, that’s not the point. I opened this piece of work and decided to do an in-depth research on the definition of “art”. According to the Oxford languages, They said, “Art is expressing or applying human creative skill or imagination in visual or non-visual form”. Honestly, I don’t even think that’s the definition I was looking for. I mean—not everyone knows they have the “creative skill”… What’s this creative skill anyway?
A creative skill is basically the ability to think about a task or problem in a new or different way. Meaning it can be anything right? P.S—Some-one said, “the best creative skill anyone can have is patience”. So are you trying to say, I need a creative skill to do an “art”. Huh… Well… Hey now, don’t get me wrong I’m not trying to argue with oxford. Maybe that’s their view of this word. Who am I to judge? Like I said, “it really can be anything; any-thing you can think of at all” here’s why:
Is Art Just About The Creative Skill?
Talking with Jules the other day—I heard her linguistic teacher say, communication is an “art” of… Wait, hold up. Heh, so communication can be an art. I mean—people do this thing everyday, How else is information passed if not through communication. All the definitions I’ve looked up on the word (art)—has the word “skill” in it. Any skill at all. I mean if oxford says the skill has to be creative well, their problem.
Ergo, can we say, we all do “art” in one way or the other. Lol! I just felt insanely proud saying that out loud.
Anyway, my view point is—the definition of art is subjective, we’re all right. Art is basically anything. It’s a language. Not just a thing, can also be a way. Anything that can be done by us humans (mammals), is definitely an “art”. I might be wrong but, I’ll come back to that.
What Is Art?
Back to my definitions—Then there’s that word “imagination”. You know what, I believe anything you can imagine is an art. Defining art is hard because—there’s no right or wrong in the definition of art. If you go on the internet now or ask someone, you’ll hear gazillion definitions.
More Definitions Of Art
Leo defines it as: experiencing an emotion and transmitting it onto others. A creative work of a human. It’s more than practice, it’s a way of life, Form of expression, quality of doing something. Also, An activity that manifests beauty, and The mastery and ideal way of doing something.
The definitions are infinite. Till today, the definition is subjective, open, debatable—It’s so amazing how one thing can mean different things. Art can be an emotion or feeling, an expression, imagination… It’s such an interesting word.
You watch movies and you cry, how exactly can a movie make you cry? How can one be so talented in evoking: feelings, moods or emotions on others—just by a single act? My British friends will say, “Amazing inn it”.
A Work Of Art
There’s a term that intrigues me, “a work of art”. Since the word “art” there is subjective it can be anything you make it to be. Art is an expression. Your job can be a “work of art” That can mean different things to different people.
This Friday, I took a stroll on google—came across Anita Louise’s blog. Anita made reference to an artist who said: he’s art has no meaning. She says, “the no-meaning is the meaning”. That took me down memory lane. I remember my first sculpture class in—art class, we were supposed to create whatever anything at all. Mr. Jake said, “become art”…
Heh, I remember picking tooth picks, more than a thousand of them. Had no clarity of what I wanted to make. Decided it’s best I play around with it. In the evening, I discovered that it gave me some kind of shape that I couldn’t describe. That piece didn’t make sense to me. To my out-most surprise, I scored the highest. Jake said, “Woah, Jamal this is interesting…” it made him curious. He also stated: that’s exactly what art means.
Mr. Jake’s statement left me in a state of awe.
That’s the message Anita was trying to convey. Most times—the meaningless art pieces are so intriguing that it becomes meaningful. That’s the beauty of art. The language of art is about appreciating any and everything—bringing the most senseless things to life.
Art And Interpretation
For you to interpret art, you need to ask yourself three questions:
What’s the meaning?
What’s the message?
What do the patterns mean?
In philosophy—the point of view is different. It’s grouped in two ways: Intentionalism and Anti-intentionalism. Intentionalism is: viewing the art from the artist perspective, whereas—Anti-intentionalism is: viewing and interpreting it from our own point of view—based on how we feel about it. The gift of art is that, no two persons can have the same interpretation. That’s what makes art very unique, interesting and fun.
In an art class, if a still-life composition is placed in front of you, most artist would decide to do hyper-realism, others a sketch. The shading is different as well, That is, some would use pointillism, others hatching, cross-hatching or scribbling. What I’m saying in essence is: it’s all about the interpretation and expression.
After the class, you’d hear different interpretations. In all honesty, Art is such an amazing thing. Not just in drawing but—other forms as well.
Types Of Art
Listen, I know the main topic is, “the trader as an artist” but I need you to stay with me—see where I’m headed. The main purpose of this topic is: to appreciate the art of trading, to give beauty to the person behind these charts. In addition, to appreciate something is to understand the meaning behind that thing—more on this in—the principles and elements of trading. Colleges today, galleries or wherever people get their information from these days will tell you—there’re two types of art: visual and Non-visual.
Visual art—The term “visual” means sight, to see. Therefore, visual art is an art of vision. It involves the art that’s seen and felt psychically. Non-visual art—In addition, Non-visual art is an art of the soul and the brain. This type of art—can’t be seen but rather felt, it evokes feeling both good or bad in humans.
Who’s an artist
On Saturday, I went to the Library to check-out the new books. There’s a book on objective and subjective POV. There was a write-up, “when you become objective about art and not just subjective, that’s when you start to see artists all around you”. The carpenter in your neighborhood or the gardener across your yard. The writers, traders… Oops, I just said traders. Of course why not. You may not create a master piece that ends up in a museum, but, if you find yourself involved or doing something in your life that—combines a sense of purpose with practiced skill, honey, you’re an artist.
Mark joined me in the library, I wasn’t even paying attention to him, because I came across an article that said, “Trading isn’t an art”.
The writer said, the statement is ridiculous. That you can’t bring Picasso or Gogh into the picture. That really got me irritated. I find it funny how rigid one’s mind can be. To the writer everything “art” should either be a painting of some sort. Years back, I remember when someone asked what I studied—I’d tell them “art”, the next question that pops up is—woah, so you can draw? Pfft, man I get so tired.
Back to the article, I mean he’s definitely an artist Cos’ his piece got to me. Anyway, the one who’s good at something especially if it involves something with skill—that’s an artist.
What Is Trading And It’s Relation To Art.
Trading is the act of buying and selling. Everyone can buy and sell, but, not everyone can do this consistently—without having your emotions involved in someway. Buying and selling isn’t always a positive act, especially if it involves money. Your emotions come to play. Controlling them is what makes you successful in this act. Right? That’s where the skill comes in. Since I need to acquire some sort if skill to become great at this profession, Why can’t I call trading an art?
Without the skill, you’ll lose.
Art requires skill; trading requires skill. What more do you need—That’s equilibrium there. This isn’t some sort of debate though. Not debunking anything. In other words, trading is an art since it requires a skill. There’s a saying that trading is a pattern and number game. Ergo, if trading isn’t an art, how do you recognize the pattern? There’s something called “pattern” in art. A pattern is a repetition. It also involves the elements of art. However, I could go on and on. My point is, trading is an art; a trader is an artist. Finis.
The Trader As An Artist
Since I parked my bike outside, I’ll probably go pick it up. Most people don’t know this but, traders are probably one of the smartest people ever. These guys have mastered the art of emotional intelligence, self-control, discipline, and patience.
Hear me out, this is a mental skill.
A tough work like this doesn’t get much appreciation. Trading is both a visual and non-visual form of art. Visual in the sense that, The charts can be seen, It’s patterns, structure and cycle. All these have their different meanings and interpretations. However, it’s the work of a trader to read these patterns and understand them. All these require a specific skill.
The up and down tics in trading come from market structure, price-action and market cycles all which is—a graphical representation of both buyers and sellers in the market. Each tic represents a humans decision. The only way traders can really survive is: by knowing the intentions of the market. In some cases, that’s nearly impossible.
Well, these guys do it anyway.
Furthermore, It can be non-visual—due to the feelings and emotions this art evokes in the traders. Traders who can’t control their emotions encounter problems. Whereas—the ones who have mastered emotional intelligence, can see its rewards.
The Trader As An Artist -The Market’s Interpretation
Finally, how we interpret the market falls under the—intentionalism and anti-intentionalism of the philosophical interpretation of art. Intentionalism: We are interpreting the market’s movement from the it’s own perspective. That means you are trading what you see. Anti-intentionalism: Traders who interpret the market like this, trade what they think they see and react based on that.
After reading—trading in the zone by: Late Mark Douglas ,I think most professional traders would rather stick with—the intentionalism part of the market.
Let’s step back a little to—art and it’s interpretations. Traders also have different ways we interpret the market, different strategies, and different styles. Just like the different forms of drawing and different shading techniques (More on this in the next article). It’s all about expression. That’s why I found that article about, “Trading isn’t an art” really funny.
In conclusion
Art is about expression. Similarly, trading involves movements. These artist (traders) have learnt to read this movements, to understand its meaning, and they react accordingly. Traders developed the internal ability to control both their mind and actions. The trader as an artist is someone who has polished their chart reading skills, market analysis skills, through pattern recognition and have in the process learnt the art of emotional intelligence. Anyone can be a trader but not everyone can be—a trader.
Furthermore, to be a successful trader, means—you are a successful artist.
How Inflation Affects Our Savings & Our LivesFor the past few months, we’ve heard a lot in the news about increasing living costs. The cost of our essential goods and services – from our food to our electricity bills, housing, and electronics – is constantly rising. And our salary increases (if any) aren’t enough to cover the increasing cost of our basic expenses.
I wanted to write this article for several reasons. I’m not trying to paint a gloomy picture, but rather to help people better understand the situation and how increasing prices affect our lives. So, as trivial as it may sound, let’s start with the basics and the basic definition of inflation.
What Is Inflation?
Inflation is the decline of the purchasing power of a currency over time measured amongst a pre-selected basket of goods. Now, here’s where it gets more interesting.
The root cause of inflation is an increase in the supply of money in an economy. Our local monetary authorities (Central Banks and Governments) can increase the money supply, either by printing and giving away more money to individuals, by legally devaluing the currency, or by loaning new money into existence and purchasing government bonds from banks on the secondary market.
In all such cases, the supply of money increases. Thus, your living expenses increase, your purchasing power decreases, and you get less for your money. There are some exceptions to this – but we will get into that a bit later when we look at possible solutions to this phenomenon.
So, now, let’s review what we’ve seen for the past year, how inflation has affected our lives, and what our governments and central banks have done about it.
What Are Governments Doing?
Europe – The EU member countries agreed on a Pandemic Emergency Program. It’s designed to support the economies of member countries, and it’s worth 1.8 trillion euros. That’s a little over 2 trillion dollars.
America – The US has several programs designed to help its economy. The first was a 3 trillion dollar program designed to help the US overcome the difficulties of the COVID19 pandemic. There are also several other programs going to the Senate for approval, all of which will further fuel the current inflationary cycle.
What Level Of Inflation Are We Currently Experiencing?
Well, this is a great question. It’s also a bit tough to answer. You might think that the easiest way to measure price increases is by comparing prices at the grocery store, at the petrol station, or with your landlords. And that makes sense. But you might not all see the same level of inflation from one item to the next. This is because the official inflation figures are calculated slightly differently, and they’re based on a so-called basket of goods.
In the US, this “basket of goods” is managed by the Central Statistical Office. They decide what items to include in the basket and how often to change them. So, when the US inflation was calculated at 7.00% last week (the highest recorded rate in the last four decades), this was based on that specific basket of goods. That said, we’re seeing sharp increases in the official inflation data in many countries – with the UK hitting 5.40%, 5.70% for Germany, and 36% for Turkey. This means, regardless of each country’s chosen ‘baskets’, consumers worldwide are experiencing sharp measurable price increases.
The more we get into the new year, the more we find ourselves asking when this vicious cycle will end. Experts are yet to agree on what kind of inflation we’ll see in the months ahead. However, the one thing that they all seem to agree on is that inflation is here to stay for the next two to five years.
What Can We Do To Protect Our Savings And Plan For A Better Financial Future?
There are a few options that you can consider. For those of you who prefer to take a more traditional approach towards money, well, these options might not be for you. But let’s explore all the options available to you, regardless of your age:
1 – Savings accounts
If this has worked for you previously, I’m sorry to tell you that it might not work this time. Unfortunately, putting your money in a savings account is unlikely to be your best option when it comes to protecting your savings and your hard-earned money.
This is because of the meagre interest rates on offer. When measured against the official inflation figures, with a 1% interest rate, you are still likely to be losing at least 4% – 5% of your actual purchasing power. While the official inflation figures might be around 7%, the level of inflation for your specific purchases could be as high as 12% to 15%. For simplicity of calculation, let’s look at an example. Say you had 100,000 USD or EUR in a savings account with your favourite bank, you would be making a whopping 1,000 USD or EUR in interest in a year (that’s assuming you are lucky enough to get a 1% interest rate from your bank). With inflation ranging between 12% to 15%, this means that you will be down between 11% to 14%. That’s a loss of about 11,000 to 14,000 USD or EUR per year. You won’t see that reflected in your bank account as numbers, but you will feel it when you go out to purchase goods. And let’s not forget that we are entering the 2nd year of high inflation – and that means twice the potential loss in buying power.
2 – Real estate
In my country, we have a saying that if a person doesn’t know what to do with their money, they put it into real estate. It might still be a good choice; it depends on how you look at money. But with real estate returning between 7% -8% gross per year and with rising maintenance costs, it still might not make up for the 12%-15% increase in inflation. You might help to make a complete evaluation – one that factors in increasing prices and that factors in the size of your investment. If there is further inflation, or if you find yourself in sudden need of money, you may find yourself selling at a less than ideal price. Again, this doesn’t mean that real estate isn’t a good investment; it can be, based on your financial goals and investment horizon.
Another thing to consider when evaluating your investment options is your purchasing power. It might help to compare the purchasing power of your investment now with the possible increase in the price of the property in the future. It might also help to keep in mind that if inflation goes up by 20% over three years, for example, then your property will need to go up by more than 20% in value for you to benefit from the investment.
3 – Bonds
The FED is on track to raise interest rates in 2022. So, could government bonds be the way forward? 10Y US Treasuries are often considered the benchmark for a risk-free investment. That said, they don’t usually bring high returns. Let’s assume that, in a best-case scenario, you get the kind of high annual return we saw at the beginning of the century (5%-6%). Unfortunately, it still wouldn’t be enough to beat inflation and increase your overall purchasing power.
4 – Precious Metals
Precious metals, in particular gold, have always been considered a great way to protect against inflation. One thing to consider: the financial markets haven’t been reacting very well recently to the idea of the Federal Reserve keeping a hawkish mood for the next year to come. In recent years, we have noticed how the inverse correlation between the stock market and gold has partially vanished during “cold” periods of general selloff. To avoid getting liquidated on their positions on stocks, big players would rather start selling massively their positions on assets where they have gained substantial profits, as it could be on gold. The result: massive drops also on the precious metal. This means that the old-fashioned hedge against inflation might have severe volatility in price during a bear market.
5 – Cryptocurrencies
Cryptocurrencies are considered the new store of value. They have recently been compared to precious metals and sometimes been referred to as digital gold, especially when we talk about the king of cryptos – Bitcoin. Bitcoin has proven to be a great store of value, providing stellar performances in the past years, closing 2021 with +57%. Investors who have been able to jump on crypto projects at early stages have been able to get stellar returns in the sphere of 3 to 4 digits percentage. The only tiny issue with cryptos is that they require a cold-blooded investor, being able to “hodl” during periods like the current one, where they have been losing across the board more than 50% of the picks. It’s an investment that requires a very high appetite for risk.
Be sure to take a look at our blog for more content. And don’t miss out on our free webinars. Next up: “How to protect your crypto investment against adverse market movements”.
Price Action Is Key!!!Price Action Trading Is A Method Of Trading Where Trading Traders Are Able To Make Trading Decisions About Trades Based On Price Movements - Price / Market Data... Without Relying On Indicators etc...
#1. Price Action Refers To The UP And DOWN Movement Of A Security's Price When It Is Plotted Over Time
#2. Candlestick Patterns - Candlestick Formations - Chart Patterns Are Derived From Price Action.
#3. Price Action Involves The Use Of A Naked Market Chart... With The Use Of RAW PRICE DATA
#4. Price Action Is Definitely Leading The Way... To Trading Without Lagging Indicators
#5. Price Action Does Not Involve Those Messy Charts And Clutter That Takes Up Half The Screen
⭐ THE HOLY GRAIL💥 There are varying concepts, strategies and ideas regarding trading. The primary objective is to stay profitable no matter the kind of strategy you use.
💥 Ironically some traders have this idea that there's one strategy that stands out amongst every other one out there. In my opinion, that's BS.
💥Anything and everything works in the market as long as it is back-tested with proven returns. Even the basic Support and Resistance can outperform the most sophisticated strategy if used properly by the trader with consistency and proper risk management.
💥 Every strategy out there has flaws and cannot guaranty 100 percent success rate. There will be losses and inadequacy with every given strategy out there.
***There's NO HOLY GRAIL in trading. Find that strategy that is in line with your trading style. Back test to measure the success rate, if good enough, stick to it and remain consistent with it.
Sage Trader's Nugget
How to FIND the BEST PAIRS to trade! Examples and explanations.Here the first part of the lesson: How do interest-rates effect the market and how do I find good pairs to trade?
The market offers you 5 main asset-classes:
1️⃣ Bonds
2️⃣ Stocks
3️⃣ Commodities
4️⃣ Metalls
5️⃣ Financials
What we want to indeifity as a trader is the cashflow, means where big players are buying or selling.
They don`t buy breakouts or an obvious momentum that already happened, instead they accumulate or distribute for days / weeks as they have a lot of capital to invest and cause support / resistance aswell as bottoms / tops.
Important for them are always the fundamentals such as Economic data, Inflation and so expectations for the monetary policy of central banks they price in.
Before we start the journey we need to understand the effect of Interest-Rates
I explain that simplyfied and in short as I its a complex topic:
The Interest-rate is the rate a central-bank lends money to privat credit institutions for. So your bank aswell as mine has a bank-account at the central bank of your country.
They give them money in order to have enough capital to hand out credits to privat customers aswell as companies. The lower the interst-rate is the more demand is in the market.
I mean, if you want to buy a car would you rather finance it with 5% or 2% interest-rates? You have the opportunity to buy a car with less debts at the bank.
Same for companies, if you need a second office, goods, more capital for production etc. you rather take that opportunity when rates are low.
Credit-business has a huge competition and banks will offer lower and lower interst-rates to attract more customers.
The longer lent term the more risk is involved as you could for example lose your job and won`t be able to pay back the credit anymore, means interest-rates are usually higher due to the risk than short-term-lendings.
The yields are shown in the bondmarket👉
This is why everyone talks about a "reversed rate-curve" as a sign for a recession. Because your bank gets money in the short-term from the Centra Bank on order to hand them out in the long-term to make money. If the risk of an upcoming recession is present the short-term involves more risk, thus short-term yields are higher than long-term-yields and banks can`t give out any credits anymore as they pay more to the central bank than they make.
Here a quick overview of interest-rate-effects:
Higher interest-rates
1️⃣ Increased cost of borrowing 👉 Reduced investment 👉 Lower economic growth and bad for stocks
2️⃣ Higher mortage interest 👉 Reduced consumption 👉 Lower economic growth and bad for stocks / house prices
3️⃣ Increased return for savings 👉 Less spending 👉 Lower economic growth
4️⃣ More demand in the currency due to higher interests / returns 👉 Lower inflation
Vice versa with lower interest-rates. The lower the interest-rate, the more consume and investment is in the market.
You see there is a lot to learn and to understand and to give you all information I`d have to finish a course.😆
Let`s start with the corona-crises:
The FED has just started to raise interest-rates after the financial crisis in 2008. And as you probably understand now, they lowered them back in the days to provide more money to the market and to boost consume / investment to rescue companies.
After the raise corona came and shocked the market. The first reaction of the FED was to lower interest-rates. They do this because they want you not to keep your money on your bank-accound and instead spend it to boost the economy and of course to use the chance to get a credit for better conditions.
Additionally they have raised their total balance-sheet, continued with quantative easing (printing money to buy bonds) and we`ve got the stimulus-package.
Demand and Supply regulates a price ... now we have tons of supply and fear of inflation.
Now ask yourself: What is the best trade here?
Probably to short the US-Dollar and to BUY stocks!
What currency has the strongest weight in the US-DOLLAR-BASKET? 👉 Euro with ca. 57%. Euro will have the strongest rally due to the weak US-Dollar.
What is asked when the stockmarket pumps? Australian Dollar aswell as New Zealand Dollar 👉 Both will fly, but even more than EURO because of the USD weakness.
Most attractive pairs:
1️⃣ AUD/USD long
2️⃣ NZD/USD long
Also good pairs:
1️⃣ EUR/USD long
2️⃣ GBP/USD long
We know AUD and NZD are both stronger than EURO due to the risk-on in the stockmarket means:
1️⃣ EUR/AUD long
2️⃣ EUR/NZD long
Whatlese do we know? We know Crude OIL pumping due to risk-on in the market. It goes up as a pre-indication for inflation and a healthy economy. Who exports OIL? Ah yeah... CANADA.
So if there is more demand in OIL and the market buys in CANADA investors have to exchange their currency into the Canadian Dollar.
USD falls due to low interest-rates 👉 Canadian dollar moves up due to pumping OIL 👉 USD/CAD SHORT
Just a few examples here how to think.
Central-Banks are independed institutions and have the following task:
1️⃣ Provide economic growth
2️⃣ Price-Stabillity
Central Banks aim for an Inflation of 2% a year (compared the year before) because they consider this as a healthy level.
They basically define this as a fine line of "prices are not going crazy" and "companies make more money." A little bit of inflation, or higher prices increase earnings of companies that can as a result expand, offer more jobs etc. 👉 Which defines the first task economic growth.
The problem is.. they can provide money to the market in case of fiscal support is needed, but they can`t take it back and SAY GUYS WE NEED OUR MONEY, its too much floating and inflation is too high.
1️⃣Healthy economy:
Rising inflation and a growing economy
"Rate hikes getting likely as economy doesn`t need fiscal support"
2️⃣Unhealthy economy:
Stable inflation but a stagnation of the economy
"Rate hikes getting less likely as economy needs fiscal support."
Now we have a dilemma here.....
3️⃣ Disaster and current situation
High inflation but a stagnation or even a slowdown in economy
"Rate hikes are tricky as the economy needs fiscal support while inflation is already HIGH."
Either price-stabillity or the economy suffers❗️
Now keep this in mind: Jerome Powell promised Biden to fight the inflation at all costs in order to get his second term in office.
It is tricky to know what he is gonna say, but we know he promised it to the President. This is why the market is so shaky.
The market hopes to see a dovish Jerome after the Sell-Off in stocks.
At the same time the market knows we will see a year with rate-hikes.
What do you think will be the best pair to trade after the FOMC?!
WHAT IS MARGIN? Traders must know this📚
✅Significant investments are required to gain access to foreign exchange markets. Not everyone who wants to try their luck in the world of trading has such funds. However, thanks to brokers that act as intermediaries and provide loans to traders, trading has become available to everyone. Thus, the essence of margin trading is to conclude transactions in financial markets with the use of borrowed funds provided by a broker.
🟢The second name of margin trading is trading with leverage. Leverage is the ratio of your deposit to the amount of the working lot. To obtain this kind of credit, the trader's account must also have his funds. The minimum of the initial deposit is different and depends on the requirements of a particular broker.
🟢The margin on the stock and foreign exchange market is a pledge that is blocked by the broker on the trader's trading account during the opening of the transaction. In margin trading, the broker can issue a loan both in cash and in the form of securities. Margin is usually expressed as a percentage, showing what proportion of own funds must be deposited to open a position on a particular instrument. For example, a margin requirement of 20% means the possibility of opening a transaction with financial instruments if there is a fifth of their total value on the account. And the margin requirement of 50% allows you to open positions for a certain amount, having 50% of it on deposit.
❗️Margin trading allows a trader to sell the market, entering short positions in case of forecasting a decline in the price of a particular instrument. Let's consider the principle of opening a short position on the example of stocks.
❗️Expecting a decrease in the price of Vesta shares, a trader takes ten shares from a broker on credit and sells them on the stock exchange at the current price. After the predicted price drop, he buys ten shares at a lower cost. By returning them to the broker, the trader remains in profit. The lower the stock price falls, the more profit the trader will get.
⚠️The above transactions are actually carried out much easier. Technically, a trader does not need to sell securities and subsequently buy them again. To do this, you only need to instruct the broker to open a short position. If the trader's forecast turns out to be correct and the forecast price decreases, the trader will close the deal, fixing the profit. Otherwise, if the price increases, the trader will receive a loss.
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Market Trading AffirmationsAn Affirmation Is Defined As An Assertion That Something Exists Or Is True. An Affirmation Is Designed To Help Remind You And Encourage You That Something Must Be Done And It Must Be Adhered To
As The Saying Goes... As A Trader “You Cannot Change The Markets... You can Only Change Your Response To What They Do.”
Trading Affirmations Are Very Important And Very Much Needed Whenever You Attempting To Trade The Markets
• Pre-Trade Affirmation #16- I Believe In My Trading Edge And My Trading Strategy Completely And Wholeheartedly. And I Am And Will Act Upon It Without Any Fears – Any Doubts – Any Worries And Most Of All Any Hesitations
• Pre-Trade Affirmation #17- I Am Able To Easily Relax Myself As I Wish At Any Given Time. I Need To Harness And Use This Ability To Help Conserve My Energy, Because When It Comes To Trading I Need To Save My Strength
• Pre-Trade Affirmation #18- I Will Pre-Define And Pre-Determine My Risk On Each And Every Trade That I Place. I Will Completely And Positively Accept That Risk. And I Am Able To Completely Let Go Of That Trade Once It Is Active
• Pre-Trade Affirmation #19- I Will Make All Of My Trading Decision And Contemplate And Formulate All Of My Trading Ideas Prior To The Market Open. I Will Execute Trades When There Is Only A Price Action Signal / Setup Present
• Pre-Trade Affirmation #20- I Have To And Need To Carefully Manage And Measure My Trading Progress Towards My Desired Trading Results Each And Every Day. It Is Crucial That I Learn To Manage Myself And My Emotions Accordingly
• Pre-Trade Affirmation #21- I Need To Trade According To What The Market Is Doing And How It Is Behaving. I Cannot Trade The Markets On What I Think It Should Be Doing. As The Saying Goes “Trade What You See… And Not What You Think”
• Pre-Trade Affirmation #22- I Will Only Take / Place Trades When I See My Trading Edge Present Within The Markets. I Will Only Place Trades Or Consider Trading Only When I See My Trading Strategy Present Within The Market And Only Trade When There Is A PRICE ACTION SIGNAL / PRICE ACTION SETUP Present And Visible Within In The Market.
Pre-Trade Affirmations are very important.
You would never want to start your day much less your Trading Day without your Pre-Trade Affirmations.
They are very important and a very crucial part of your Trading. (You Should Always Read These Each And Every Day Before You Trade)
Market Trading AffirmationsAn Affirmation Is Defined As An Assertion That Something Exists Or Is True. An Affirmation Is Designed To Help Remind You And Encourage You That Something Must Be Done And It Must Be Adhered To
As The Saying Goes... As A Trader “You Cannot Change The Markets... You can Only Change Your Response To What They Do.”
Trading Affirmations Are Very Important And Very Much Needed Whenever You Attempting To Trade The Markets
• Pre-Trade Affirmation #1- I Am A Successful And Profitable Trader
• Pre-Trade Affirmation #2- I Objectively Define My Edge Within The Market
• Pre-Trade Affirmation #3- I Am Going To Spend My Time Wisely And Meaningfully
• Pre-Trade Affirmation #4- I Am Positive And I Will Pour Happiness Into All That I Am Doing
• Pre-Trade Affirmation #5- I Understand That Consistency Is More Important That Being Right
• Pre-Trade Affirmation #6- I Will Constantly Reward Myself As The Market Makes Profit For Me
• Pre-Trade Affirmation #7- I Am Patient And Let Trading Opportunities Present Themselves To Me
• Pre-Trade Affirmation #8- I Love Myself Enough To Allow Me To Experience The Success Of Trading
• Pre-Trade Affirmation #9- I Am Absolutely Clear About The Specific Results That I Want And Need In Trading
• Pre-Trade Affirmation #10- I Make Money In The Markets And This Is An Affirmation Of My Self-Mastery – Self- Learning And Professionalism
Pre-Trade Affirmations are very important.
You would never want to start your day much less your Trading Day without your Pre-Trade Affirmations.
They are very important and a very crucial part of your Trading. (You Should Always Read These Each And Every Day Before You Trade)
Trading on Financial Markets | Your Guide to Trade Planning 📝
Hey traders,
In this post, we will discuss 6 crucial things in your trade planning and the main elements of trade results assessment.
1 - Before you open a trading position, make sure that you analyzed the chart. You should identify a market trend and spot major key levels.
2 - Once the chart is analyzed, you should identify the safest trading areas for your strategy (preferably the zones of supply and demand).
You should patiently wait until one of these zones is tested.
3 - Once the zone is reached, you should look for a confirmation. You can either look for a reversal candlestick/price action pattern, some fundamental trigger, or some indicator. The point is that you should rely on a trigger that is backtested and that proved its accuracy.
4 - Getting your confirmation, you should have a precise entry strategy. Some traders prefer aggressive entries on spot while others are waiting for a retest of some major/minor level.
5 - You must set a stop loss. Remember that your stop-loss defines the point where you become wrong in your predictions. Be extremely careful on that step and give the market some space for fluctuations.
6- Know your exact target level(s). Know the point where you start protection of your position, where you start profit-taking. Be very strict and don't let your greed and fear intervene.
Only then a trading position is opened.
No matter what will be the end result of your trade, you should assess it:
1 - You should journal the trade outlining its end result, trading instrument, and your entry reason.
2 - Note any peculiar thing about this trade that you noticed.
3 - Record your gain/loss percentage.
4 - Identify whether any mistake was made and if so, learn from that.
Here is your minimum plan to follow. Of course, as you mature in trading your trade assessment plan will be more sophisticated.
Do not underestimate its importance and treat it as the main element of your trading routine.
Do you plan your trades like that?
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HEAD AND SHOUKDERS PATTERNWhile we get ready for the holidays we thought we would post some chart patterns for our newbies over the next few days.
The head and shoulders pattern is a formation of 3 peaks with the head being the highest peak (Lowest on inverse). The entry should be below the neckline (Above on inverse). The measure of take profit can be taken by measuring the peak of the head from neckline and using this range, as an indicator of the take profit level.
Please do give us a like, comment and follow to support us.
GoldViewFX
XAUUSD TOP AUTHOR
MARKET STRUCTURE 🗒🗒🗒I am not the best painter, but i tried to show you the difference between the structure that we have in every market. And it doesnt depend if its crypto/stocks or forex everything is the same in terms of structure.
Trade in the direction of the HTF MARKET STRUCTURE.
Do you want more examples like that ? Comment below ..
RISK ON vs RISK OFFI tried to show you in this example what is the difference between risk on and risk off, what financial instrumnets rise during times of finacial stress aka risk off and what instruments rise during time of financial optimism aka risk on.
RISK ON - is when investor are looking to multiply their money, they are looking for RISK. MORE RISK - MORE MONEY
RISK OFF - is when investors are looking to keep/save their money, they are looking to protect more than to RISK. MORE PROTECTION - LESS MONEY
P.S - Where do you think CRYPTOCURRENCY market goes? Into a RISK ON or RISK OFF financial instrument ? Comment below
TAKE THAT NEXT TRADEHi Friends,
This post is for Educational Purpose only!!
Time Frames : 5 mins, 10 mins, 15 mins
Instruments : All Forex and Crypto Pairs
Market Session : All Sessions
Strategy Considered : Price Action Shift (PAS)
TAKE THAT NEXT TRADE
From my personal research i have seen that for a trending market, break of structure or shift in price action often leads to a big price movement moments later. Before i go into a trade, i normally ask myself a couple of questions;
1. How much is my balance?
2. How much do i want to risk?
3. Does the setup have a high winning probability?
4. Am i following my checklist? if yes, have i checked at least 4/6 of the items on the list?
5. What are my exit plans if i should take the trade?
If i am able to respond to Q3-Q5, then i will not miss that trades.
PAS Strategy Explained - Citing CADCHF (15m)
Price did not break first swing low, attempted to break the second one but failed. It eventually broke the third swing low then headed back to retest the order block that pushed price to that break. It makes sense to go in right at this point since 6/6 of my checklist have been ticked + Q3,Q4,& Q5 response is yes.
PAS Strategy give investors/ traders the opportunity to expose their capitals to low risks but highly profitable trade (in this case RRR of 1:8).
Take some time off to look at my checklist and the confluences which i have listed on the chart.
DO NOT FORGET TO LIKE, COMMENT AND FOLLOW ME.