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6 IMPORTANT Trading Orders You need To Know!DO YOU KNOW THE 6 TRADING ORDERS? There are many trading orders that a broker can offer. You’ll just need to confirm on the platform or give them a call, which ones they have. And it’s important to know which one suits your trading needs best. Before you buy or sell a trade, there is usually a setting that you can choose to execute your trade. Common options include: 1: GTC: “Good Till Cancelled” Where the order remains active until you manually cancel it. 2: FOK: “Fill or Kill” (Settle!) This type of order requires immediate execution of the entire order quantity. If the full amount is not executed, it is then cancelled. 3: GTD: “Good Till Date” Where you can specify a specific date until which the order is valid. 4: MIT: “Market if Touched” This order is triggered when the market price reaches a specified level (trigger price). It then becomes a market order and is executed at the best available price. 5: LIT: “Limit if Touched” If a Limit if Touched order is triggered when the market price reaches a chosen or trigger price. 6: GTC (Good Till Cancelled). This way you’ll know that your position (order) will stay in the market until you cancel it manually.

Education

Just Don't Trade When...Just Don’t Do It Trader By now, you know what to do as a trader. I’ve pretty much drilled in your mind. You can hear my voice echo the 4 Ms. But one overlooked thing that’s also important… Are the things not to do. Let’s crack into the 5 things… #1: DON’T fear losing – It’s just the cost of trading Losing trades are an inevitable part of trading. So why fear losses if they are going to come. And it’s not just one or two losses. You’re about to take thousands of losses in your life. But don’t see them as losses. Instead, view them as the cost of doing business in the markets. Every trade carries a level of risk (hence we use stop losses in every trade). And losses are opportunities to learn and refine your strategies (if need be). So make it natural to embrace your losses as a part of the trading process. This way you’ll cut the ego, and take on each trade with a more objective and focussed point. #2: DON’T dwell on past failures – You are only as good as your last trade While it is essential to learn from past mistakes. If you dwell on them, they will excessively hinder your hard worked progress. Trading is an ever-evolving journey, and each trade presents a new opportunity. Instead of fixating on past failures, blown accounts, big drawdowns and times you just F*ed up with your trading system and mentality… Rather focus on the present and future. There is only NOW and what is to COME. So apply the past time lessons and focus on improving your decision-making performance in the next trade. You are only as good as your last trade. #3: DON’T expect fast riches – This is a slow and gradual process Trading is not a get-rich-quick scheme. If you expect to make it big in the first three years, I have news for you. Unless you already have a million rand portfolio to grow and bank from, this is going to take take. Cut out these unrealistic expectations because it’s going to be an emotional ride with excessive risk-taking. Instead, adopt a long-term perspective, set realistic goals and understand that trading success is a gradual process. Let the power of compounding work in your favour over time. #4: DON’T compare yourself to others – Your personality & risk profile shape you Each trader is unique. You are unique. Therefore, you have different risk tolerance levels, trading styles, and market perspectives. If you compare yourself to others, you’re going to feel inadequate and you’re going to enter into temptation on imitating their portfolios. It is essential to embrace your own strengths and weaknesses as a trader. Understand your personality, risk profile, and trading preferences, and align your strategies accordingly. Find what works for you and develop a personalized approach that suits your individual needs and goals. Trading is a self-learning journey that takes time and effort to master. #5: DON’T give up – You only lose when you quit! Persistence is key in trading. It is natural to face challenges and setbacks along the way. But the only time you truly lose is when you give up. Stay committed, maintain a positive mindset, and keep pushing forward. You still being in the game is what will differentiate you between failure and success. So let’s conclude what you must NOT do… #1: DON’T fear losing – It’s just the cost of trading #2: DON’T dwell on past failures – You are only as good as your last trade #3: DON’T expect fast riches – This is a slow and gradual process #4: DON’T compare yourself to others – Your personality & risk profile shape you #5: DON’T give up – You only lose when you quit! Just don’t do it, trader!

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TREND CONTINUATION PATTERNS Chart pattern construction is an important part of any market analysis. Charting patterns are powerful indicators of potential market movements. These patterns appear on a chart and are used to predict when a trend is likely to continue or reverse. The three most common patterns are triangles, wedges, and flags. They are all typically seen as signs of a trend continuing, but their specific meaning varies depending on the trend they are associated with. For example, a triangle can signal a continuation of a trend, while a flag can signal a potential reversal. ✴️ Triangles Triangles are formed when two trend lines converge, forming a pattern that resembles a triangle. These can be either symmetrical or asymmetrical, and are usually seen as a sign of a bullish or bearish trend continuing. Symmetrical triangles can be seen as a sign of consolidation before a breakout in either direction. Asymmetrical triangles are usually seen as a sign of a continuation of the existing trend. ✴️ How to trade triangles Trading triangles can be a very profitable endeavor, but it can also be risky. There are three main types of triangles: ascending, descending, and symmetrical. Ascending and descending triangles are bullish or bearish, while symmetrical triangles can be bullish or bearish, depending on the trend. Once you have identified a triangle pattern, you need to wait for a breakout. A breakout is when the price breaks out of the triangle pattern and continues in the direction of the trend. When trading triangles, it is important to wait for a confirmed breakout. A confirmed breakout is when there is a clear break of the triangle pattern and the price has moved in the desired direction. There are a number of different signals you can look for to help you determine when a breakout is happening. These include candlestick patterns, moving averages, and volume. ✴️ Wedges Wedges are similar to triangles in that they are formed by two converging trend lines. However, the difference is that wedges form a pattern that resembles a wedge shape. Wedges can be either rising or falling, and are usually seen as a sign of continuation for the existing trend. Rising wedges are generally seen as bearish, while falling wedges are seen as bullish. Wedges can be a useful signal if used correctly, but they are not always clear-cut. It is important to understand whether a wedge is rising or falling, and whether it is being viewed as bearish or bullish, in order to get the most out of this pattern. ✴️ How to Trade wedges When trading wedges in the forex market, there are two main approaches – the breakout approach and the reversal approach. The breakout approach involves trading the breakout of a falling wedge pattern. This type of pattern is typically seen during an uptrend and is seen as a potential sign of a reversal. When trading a falling wedge, traders will look for prices to break out of the wedge by either going above the resistance trend line or below the support trend line. If prices break out above the resistance trend line, it is seen as a sign that the uptrend will continue and traders can look to buy. On the other hand, if prices break out below the support trend line, it is seen as a sign that the uptrend is over and traders can look to sell. The reversal approach involves trading the reversal of a rising wedge pattern. This type of pattern is typically seen during a downtrend and is seen as a potential sign of a reversal. When trading a rising wedge, traders will look for prices to break out of the wedge by either going above the resistance trend line or below the support trend line. If prices break out above the resistance trend line, it is seen as a sign that the downtrend is over and traders can look to buy. On the other hand, if prices break out below the support trend line, it is seen as a sign that the downtrend will continue and traders can look to sell. ✴️ Flags Flags are formed when two parallel trend lines form a pattern that resembles a flag. They are usually seen as a sign of a continuation of the existing trend, although they can also signal a reversal. Bullish flags are typically seen as a sign that the trend will continue higher, while bearish flags are seen as a sign that the trend will continue lower. In light of the recent market volatility, it is important to remember that chart continuation patterns such as triangles, wedges and flags can be a powerful tool for predicting potential market movements. They are usually seen as a sign of a trend continuing, although their individual meaning can depend on the trend they are associated with. As such, it is important to be familiar with these patterns to be able to accurately predict potential market movements. ✴️ How to trade flags When looking for a flag pattern to trade, you should be on the lookout for two distinct highs or lows that form a trend line. The trend line should then be connected to a parallel line that is a few pips below the lower peak. If you identify a valid flag pattern, then you can move on to the next step. Once you have identified a valid flag pattern, you should then calculate your risk and reward. Your stop loss should be placed just below the lower parallel line of the flag pattern, and your target price should be placed at the upper parallel line. Good luck, and happy trading!

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Revenge Trading is Lethal - 5 Reasons Why!Do you feel it in your bones. Where do you want to: Take trades to make up for losses? Take trades for the sake of trading? Take trades out of emotions and gut (gat feel)? Take trades to make a quick buck? If so, you have felt the power and dangers of Revenge Trading. TO put it blunt. Revenge trading is detrimental, dangerous and just plain stupid for any traders to succumb to. I feel like I can finish the article already as I have said what I needed to. Not just yet! You need to understand why Revenge Trading is to your downfall. Let’s start with these: #1: Impulsive decisions are dangerous In the heat of the moment, you just want to take an impulsive trade. This can lead to disastrous outcomes. Revenge trading happens when you want to try recoup losses quickly. And so traders abandon their strategies, systems and rules. And they take on unwarranted risks. This will stop you from making good, calculated, logical and well-informed decisions based on sound reasoning and market research. Don’t do it! #2: Trading on emotions is deadly Emotions such as fear, greed, and frustration have no place in trading. Revenge trading is fueled by these emotions. And this causes traders to deviate and steer way from their plans by instead acting irrationally. What then? Bigger losses, unnecessary risks to the portfolio and skewed results on your trackrecord. Your hard earned and timely worked on journal! Is it worth it? I think not. Cut out your emotions and work at being calm and take on the more logical approach, devoid of emotional interference. #3: Violating trading rules is damaging Every trader should have a set of well-defined trading rules in place. Not just rules but also a list of criteria. Revenge trading typically involves disregarding these rules and just going against everything you should do. Basically, what the average dumb retail trader does which results in 98% of traders losing in this financial endeavour. Violate your rules and there will be severe consequences. Loss of confidence. Bigger losses More losses Erratic wins (which make you want to do it again and again and again) Not worth it. Don’t do it. #4: Too much unnecessary risk You know you’re using your hard earned cash to trade and build a portfolio right? So why are you burning it and cutting it up like it’s nothing? This reckless behavior can lead to bigger drawdowns and can even wipe out trading accounts entirely. Don’t do it! #5: Creates an ongoing cycle of doing it again Great! Once you have violated your rules, gone against your strategy and pretty much gone ape or rogue on trading – it takes a lot to gain ones integrity and discipline back. One of the most dangerous aspects of revenge trading is its cyclical nature. Break the rule, you’ll break it again. Cheat, you’ll cheat again. Enter a gambling mentality and you’re in trouble. Bank a winning rogue trade and you’ll succumb to the trading world of discretionary action. However, if these subsequent trades result in further losses, the cycle repeats, trapping traders in a never-ending loop of revenge trading. Breaking free from this destructive pattern will then need a ton of discipline, self-awareness, and a commitment to sticking to one’s trading plan. So please be careful. Trade well! Don’t trade like gambler. Avoid the perils of revenge trading by all means, starting from today. And when you feel the need to do it (like a junkie), come back and read this article. Had to be said.

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The Master Pattern - 3 Phases of the Market | Smart Money THE 3 PHASES OF THE MARKET The market goes through 3 phases, these phases can be seen on all assets and on all time frames. They happen on repeat. These phases can be identified and market on your chart, to understand the true intentions of the market and also predict what will happen next. 1) CONTRACTION PHASE When price forms a LH and HL this is the start of the contraction phase, you draw a box around it. This is when the buyers and sellers equalize and there is low institutional volume. This is a leading indication, letting you know the expansion phase is going to come next. 2) EXPANSION PHASE As soon as price expands out side of the contraction box this confirms the expansion phase has started. Price likes to whipsaw around the value line multiple times liquidation both sides of the market, this is how the market makers fill their massive orders. This symbolized volume coming back into the market. This is the phase where most retailers lose their money. 3) TREND PHASE The trend phase is the 3rd phase in the market and this is the profit taking phase. This is the phase where the market makers take profits off their previously accumulated positions. This is the best phase to trade and the safest phase to trade. When you understand these 3 phases, it can give you a deeper understanding to the Rhythm of the market and help you understand what will happen next. By knowing what phase you are in, you are able to trade it according to its characteristic's. The master pattern concepts is the the real smart money concepts. Hope this helps.

AEducation

by Smart_Money-Trader

TRANSPARENCY IN PROVIDING FOREX SIGNALS Transparency of forex signal providers is an important concept for making successful trading decisions. Transparency of forex signal providers means that an investor can view a signal provider's trading history, including results and statistics. This gives an investor the opportunity to evaluate the verified trading history and make a decision on whether to connect or disconnect a signal provider. The advantage of forex signal provider transparency is simply invaluable. As every investor knows, there are many signal providers in the Forex market with bad reputations which can cause an investor great losses. This is why it is essential to have transparent information about signal providers, which gives the investor the advantage of making a more informed decision. Fortunately, thanks to technology and global support from forex brokers, transparency of forex signal providers is becoming more and more accessible. Usually trading platforms provide detailed information about signal providers, including their trading history, results, win/loss percentages, types of trading strategies, etc. This gives investors confidence in their decision, which means they don't have to worry about the signal provider hiding information. Forex signal providers are important to traders because they provide information that can help them make investment decisions. Therefore, it is very important for signal providers to be transparent. To have the right to be called transparent, forex signal providers should provide traders with complete and reliable information about their methods of analysis and trading. This way, traders can make an objective and informed decision on whether to use their services. Here are a few signs of transparency that can help traders evaluate a forex signal provider: 1. Open price presentation: the forex provider should present transparent prices for currency pairs, including spreads, commissions and other fees. 2. Transparent pricing: Forex signal providers must provide traders with complete information about the rates and terms of their services. This will help traders avoid misunderstandings and miscommunication in trading. 3. Transparency in the process: Forex signal providers must also provide traders with detailed information about how they analyze and trade the markets. This way, traders can get more information about how the signal provider makes decisions. 4. Open risk policies: Transparent forex providers have a clear risk policy and provide information about their policies and precautions. 5. Openness about historical results: Forex providers must provide access to their historical results to show you how they operate. Given the above signs of transparency, you will be able to choose a reliable forex provider and make the right decision about your trading actions. You will need to do your homework and study the market, but this will allow you to choose a transparent forex provider that will give you the opportunity to profit in forex trading. Overall, the transparency of a forex signal provider is an essential part of successful trading. Traders should have access to complete and reliable information in order to make the most of their investment. In conclusion, the transparency of forex signal providers plays a key role in successful trading. Thanks to the availability of information about signal providers, investors can properly assess their risks and make informed trading decisions.

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by UnknownUnicorn15614419

Ways find out all the institutional investors in a stock SEC Filings: Visit the U.S. Securities and Exchange Commission (SEC) website and search for the company's filings, particularly the 13F filings. Institutional investors with more than $100 million in assets under management are required to file a Form 13F, which discloses their holdings. Look for the most recent filings to get up-to-date information. Company's Investor Relations: Check the investor relations section of the company's official website. Many companies provide information about their institutional investors or a list of major shareholders. Look for annual reports, shareholder presentations, or investor relations contact information to gather more details. Financial News Websites: Visit financial news websites like Bloomberg, Yahoo Finance, or CNBC. These platforms often provide comprehensive information on institutional investors, including major shareholders and investment firms. Look for the "Ownership" or "Institutional Holdings" section, which may provide a list of institutional investors and their holdings. Stock Market Databases: Utilize stock market databases such as Morningstar, Thomson Reuters, or FactSet. These platforms offer detailed data on institutional ownership and holdings. You can search for the specific stock and access institutional ownership reports or ownership changes. Institutional Investor Reports: Some investment research firms release reports on institutional investors. Examples include Institutional Investor, Preqin, or Institutional Shareholder Services (ISS). These reports often provide insights into institutional ownership, trends, and changes in the investment landscape. Stock Exchanges: Visit the official website of the stock exchange where the stock is listed. Exchanges like the New York Stock Exchange (NYSE) or NASDAQ may provide information on institutional investors or major shareholders. Remember, institutional ownership can change over time, so it's essential to check for the most recent data and updates. Bascially none of these are live....

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Traders Help the Economy in 4 Ways!When you trade and invest, there are many elements that you will continue to help contribute to. I can think of 4 main ways including: Way #1: You help with liquidity (volume) Remember, you are the intermediary in the markets. When you exchange money and buy and sell, you’re helping provide liquidity and volume. This makes it easier for other market participants to trade and manage risk. No matter how small or big the account size is, every trade counts. (Similar to the butterfly effect). Way #2: Helping our fellow brokers and managers Yes I know most people can’t stand the fact of the fat cats making millions of rands off other portfolios. But in South Africa, I find that most brokers are very small and don’t earn a lot of money. (Some small brokers earn under R25,000 per month). So when you buy and sell trades, you will help pay the small brokerage fees, which will aid to the salaries of the brokers you are using. Way #3: When you pay brokerage and fees, it creates more jobs When you pay the brokerage and trading platform fees. You are not only helping the brokers. But also the company they work for. The more money that goes into the firms, the more jobs that are created for other employees (Facilitators, marketers, support staff, risk managers, accountants, analysts, domestic workers, etc…) Way #4: This brings growth to your broker or market maker When your broker is doing well, as they have good clients and investors – this gives them a bigger incentive to help build and grow the company further including: · Better technology. · Better innovation · Better efficiency · Better features in the business This will also improve your experience with their growth developments. And so, I’m sure you can see that even if you want to trade for yourself, you will still be helping many companies, people and the economy as a whole… Nothing to feel bad about.

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5 DANGERS of Trading Penny Stocks Just so you know. I believe if you’re following a world renown and successful Penny Share expert, you’re in good hands. They are able to spot low risk investments and guide you through the process of owning great Penny Stocks. But as a trader , who only looks at charts – THIS IS DANGEROUS TERRITORY. Remember, Penny Shares are high risk, high volatile, low credible companies that are LOW prices i.e. Under $1.00. And so, I just want to write as a trader point of view five key reasons why penny stocks can be dangerous to traders. DANGER #1: High Volatility (Jumpiness) Penny stocks are notorious for their high volatility. These stocks tend to experience rapid and drastic price fluctuations, often without apparent reasons. I’m talking about companies that can jump 10%, 30% and even 70% in a day. The lack of stability and price predictability can make it very difficult for traders to make informed decisions. Sudden price jumps or drops can result in significant gains or losses within a short period, amplifying the risk factor. And if you place your stop loss within a tight range, there’s a bigger chance you’ll get stopped out. DANGER #2: Low Liquidity (Less Volume) Think of Liquidity like the flow of water. It tells you the ease of being able to BUY or SELL a market, without impacting too much of the price. Once again, we look for low to medium volatility. Penny stocks typically have low liquidity due to limited trading volume. With fewer buyers and sellers in the market, it can be difficult to execute trades at the prices you want. And this leads to slippage and even higher transaction costs. Also, low liquidity may also prevent you from even entering or exiting your positions quickly. And this can even TRAP you in an unfavourable market environment for an extended period of time. DANGER #3: Not Established Businesses Penny stocks are often associated with small, early-stage companies that are not yet established in their respective industries. These companies may lack a proven track record, have limited financial history, and face various operational and market risks. So if you want to invest in these type of companies as a trader, it’s better you do it with fundamentals, research, business models and future prospects. If you do it purely on speculative purposes, this could be very risky for your portfolio. DANGER #4: More Likely to Head to Zero Yes all trading requires levels and degrees of risk and rewards. But it is not worth it, if some petty company is doing really badly and is showing signs of going to 0.00. Penny stocks are more susceptible to declining in value and potentially heading towards zero. I mean, South Africa has witnessed instances where penny stocks have experienced substantial losses, which took out a ton of investors. For example, companies like African Bank Investments Ltd (ABIL) and Oakbay Resources and Energy Limited serve as cautionary tales, where investors lost huge amounts as these companies approached or reached bankruptcy. Talking about bankruptcy. DANGER #5: High Chance of Bankruptcy and Liquidations Penny stocks are also more likely to go bankrupt or get liquidated compared to a Blue-chip stock. This is because of the nature of the companies, the inexperience, the lack of funds and structure, as well as its credibility. Financial instability, mismanagement, or unfavourable market conditions can lead to the collapse of these businesses. We saw this also in South Africa with the liquidation of Sharemax Investments and the bankruptcy of Pamodzi Gold Limited. This lead investors with little to no value for their investments. So remember this as a traders We want low volatility, high liquidity (volume), credible companies with great reputations, track record and credibility. And we want attractive charts that work with our trading strategies. If you want to be a savvy Penny Share investor that's fine. But as a trader, I have given my precautions.

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Diversification in Cryptocurrency Investing In the evolving world of finance, cryptocurrencies have carved a unique niche, attracting investors worldwide due to their potential for high returns. With over 6,000 cryptocurrencies in existence as of mid-2023, investors have a multitude of choices when building a crypto portfolio. However, the inherent volatility of the crypto market also means a higher degree of risk. One way to manage this risk is through portfolio diversification. This comprehensive guide will delve into the principles and strategies of diversification in the context of cryptocurrency investing. Understanding Diversification Diversification, in financial parlance, is the practice of spreading investments among different types of assets to reduce risk. The primary purpose is to limit exposure to any single asset, thereby mitigating potential losses. As the saying goes, "Don't put all your eggs in one basket." When applied to cryptocurrencies, diversification entails spreading investments across a variety of crypto assets. Given the high volatility and unpredictability of the crypto market, diversification doesn't completely eradicate the risk. However, it does offer a certain degree of protection against the extreme price swings characteristic of individual cryptocurrencies. Importance of Diversification in Crypto Investing The need for diversification in crypto investing stems from the market's inherent volatility. Due to factors such as regulatory news, technological advancements, market sentiment, and macroeconomic trends, crypto prices can fluctuate wildly within short periods. While this volatility can provide opportunities for significant gains, it also exposes investors to substantial losses. A diversified portfolio helps to mitigate these risks. If one cryptocurrency in the portfolio experiences a significant decline, the impact on the entire portfolio may be cushioned by other cryptocurrencies that remain stable or increase in value. Diversification Strategies in Cryptocurrency Investing A well-diversified crypto portfolio involves more than holding an assortment of cryptocurrencies. It requires a strategic approach that considers various factors such as the types of cryptocurrencies, token sectors, blockchain ecosystems, investment strategies, and balancing crypto and non-crypto assets. Types of Cryptocurrencies There are thousands of cryptocurrencies available for investment, each with its unique features, use cases, and market behavior. A diversified portfolio could include a mix of the following: - Bitcoin (BTC): As the first and most prominent cryptocurrency, Bitcoin often forms the foundation of many crypto portfolios. - Ethereum (ETH): Known for its smart contract functionality, Ethereum is another major player in the crypto world. - Altcoins: These are alternatives to Bitcoin and include a wide range of cryptocurrencies like Litecoin (LTC), Ripple (XRP), Cardano (ADA), and many others. - Stablecoins: These are digital tokens designed to minimize volatility by pegging their value to a reserve of assets, usually a fiat currency like the U.S. dollar. Token Sectors Investing across different token sectors offers another level of diversification. Some of the main categories include: - Decentralized Finance (DeFi): DeFi projects aim to emulate traditional financial systems in a decentralized manner. This sector includes cryptocurrencies related to lending platforms, decentralized exchanges, and yield farming platforms. - Non-Fungible Tokens (NFTs): These are unique digital assets that represent ownership of specific items or pieces of content on the blockchain. - Utility Tokens: These are tokens used to access services within a specific blockchain ecosystem. Blockchain Ecosystems Investing in various blockchain ecosystems is a powerful diversification strategy. Each blockchain has its unique features, community, and associated tokens. By investing across multiple blockchains, you are effectively spreading risk and potential rewards across various platforms. Some of the prominent blockchain ecosystems include Ethereum, Binance Smart Chain, Polkadot, Solana, and Cardano. Diversification through Investment Strategies Investment strategies also play a significant role in portfolio diversification. Some of these strategies include: - Holding (HODLing): This involves buying and holding cryptocurrencies for a long time, irrespective of short-term price fluctuations. - Trading: This involves buying and selling cryptocurrencies based on short-term price movements. This strategy can be further divided into day trading, swing trading, and arbitrage trading. - Staking: In proof-of-stake (PoS) and its variants, you can participate in the network's consensus mechanism by holding and staking your coins, earning new coins as a reward. - Yield Farming: This involves lending or providing liquidity to DeFi platforms in return for interest and fees. Balancing Crypto and Non-Crypto Assets Lastly, diversification also includes maintaining a balance between crypto and non-crypto assets. Even if you're heavily invested in crypto, it may be wise to hold a portion of your portfolio in traditional assets such as stocks, bonds, real estate, and commodities. This can provide stability during turbulent crypto market conditions and offer returns that are not correlated with the crypto market. How to Diversify Your Cryptocurrency Portfolio Step 1: Understand Your Risk Tolerance Before investing in any asset, including cryptocurrencies, you need to understand your risk tolerance. Ask yourself how much risk you are willing to take and how much investment you are ready to lose without affecting your financial stability. Step 2: Research Cryptocurrencies Conduct thorough research on different types of cryptocurrencies. Understand their underlying technology, use-cases, and potential for future growth. This will help you select a mix of coins for your portfolio. You should also stay updated on crypto market trends, news, and regulatory changes as these can significantly affect crypto prices. Step 3: Choose a Variety of Coins A well-diversified crypto portfolio should contain a mix of established cryptocurrencies like Bitcoin and Ethereum, as well as promising altcoins. However, you should not randomly select coins. Each cryptocurrency in your portfolio should be backed by thorough research and sound reasoning. Step 4: Diversify Across Sectors and Ecosystems Invest in cryptocurrencies across different sectors (DeFi, NFTs, utility tokens, etc.) and blockchain ecosystems (Ethereum, Binance Smart Chain, Polkadot, etc.). This can help reduce exposure to risks associated with a particular sector or ecosystem. Step 5: Use Different Investment Strategies Utilize a combination of investment strategies such as long-term holding, trading, staking, and yield farming. Different strategies can help spread risk and maximize returns. Step 6: Balance Your Portfolio with Non-Crypto Assets To safeguard your portfolio from extreme crypto market volatility, consider investing a portion of your portfolio in traditional assets such as stocks, bonds, real estate, or commodities. Step 7: Regularly Monitor and Rebalance Your Portfolio The crypto market is highly volatile and can change quickly. Regular monitoring allows you to track the performance of your investments and make necessary adjustments. Rebalancing involves adjusting your portfolio periodically to maintain your desired level of asset allocation and risk. Potential Limitations of Diversification in Cryptocurrency Investing While diversification is a generally recommended strategy for managing investment risk, it does come with certain potential limitations. Investors must be aware of these aspects when building a diversified cryptocurrency portfolio. Reduced Potential Returns Diversification aims to mitigate risk by spreading investments across various assets. However, this approach can also potentially limit gains. If you invest in a wide array of cryptocurrencies, your portfolio may not grow as much when one cryptocurrency experiences a dramatic price increase. Essentially, while diversification helps limit downside risk, it may also cap the upside potential. Over-Diversification While having a variety of investments can help to reduce risk, there is such a thing as over-diversification. If you hold too many different cryptocurrencies, it can become challenging to effectively monitor and manage your investments. Additionally, if the number of investments is too large, the positive performance of one asset might be negated by the poor performance of another. Increased Complexity Maintaining a diversified portfolio can be complex and time-consuming. Each cryptocurrency needs to be researched thoroughly before being added to the portfolio, and even after the investment, it needs to be monitored continuously. This process can become overwhelming, especially when investing across various token sectors and blockchain ecosystems. Costs Diversification can sometimes come with higher costs. If you're trading or transferring your cryptocurrencies frequently to maintain a diversified portfolio, transaction fees or "gas fees" can add up. For small portfolios, these costs might make diversification less effective. Lack of Correlation Data In traditional finance, assets are often chosen for diversification based on their correlation. In the cryptocurrency market, however, the relatively short history and high volatility can make it challenging to determine reliable correlation coefficients. This lack of reliable data can sometimes limit the effectiveness of diversification. Conclusion: Diversifying the Smart Way Diversification is a powerful strategy to manage the inherent risk associated with investing, particularly in volatile markets like cryptocurrencies. However, successful diversification requires a deep understanding of the crypto market, careful analysis of individual crypto assets, and regular portfolio review and rebalancing. Diversification strategies should be personalized to fit an individual's risk tolerance, investment goals, and knowledge level about cryptocurrencies. With the rapidly evolving crypto landscape, staying informed and adaptable is crucial to maintaining a diversified and resilient crypto portfolio. Remember, while diversification can mitigate risk, it does not guarantee profit or protect entirely against loss in a declining market. As always, thorough research and due diligence are vital before making any investment decisions.

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AN ICT FAIR VALUE GAPS(GAPS AND INEFFICIENCIES)WHAT IS AN ICT FAIR VALUE GAP? An ICT Fair Value Gap is a level in between candlestick that price inefficiently left open. These are little pockets of inefficienct levels that are left opened in other for price to later come back to those left out Gaps to be later filled up TYPES OF FAIR VALUE GAPS 1. Bullish Fair value Gaps : This gaps are also known as the Buyside Imbalance Sellside Inefficiency(BISI). As the name implies, only buyers participated in the move up and left a porous price action in it's wake in the form of a Sellside Inefficiency. Examples are illustrated below 2. Bearish Fair Value Gaps : This gaps are also known as the Sellside Imbalance Buyside Inefficiency(SIBI). As the name implies, only sellers participated in the move downwards and left a porous price action in it's wake in the form of a buyside Inefficiency. Examples are illustrated below HOW TO USE FVG FOR ENTRIES Just like you can make use of the FVG's to determine the direction on the HigherTimeFrame, it can also be used to for entries on the LowerTimeframe(1min - 15min). Hints to take note of For a FVG to be valid for entries, it have to follow the following contet/Framework, which are 1. The FVG must only be used on a Time Session 2. When the bias found is Bullish, there has to be a form of Sellstops taken/an SMT formed with the benchmark for the asset class you are trading with and vice versa for a Bearish Bias After the criteria's have been met, look for FVG and trade into it Examples of Entry models with the use of FVG's following the given criteria's CME_MINI:NQU2023 Criteria 1 : Session must be aligned Criteria 2 : Since Price is Bullish, look at the sellstops it took out All criteria's have been met, head to look for the FVG to take a trade... FOREXCOM:EURUSD Criteria 1 : Look for buystops to be taken, while being bearish this time around Criteria 2 : Make sure that to sell into a bearish FVG(SIBI), price must be in a suitable trading session All criteria's have been met, head to look for a FVG to trade within the session Hope you have learnt a thing or two about how to effectively make use of an ICT Fair Value Gap(FVG)? To get more proficient at using FVG's, you should backtest and study FVG's on your own Good-Luck and Good Trading!!

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by ifeanyichukwu_E

Decoding Forex Mysteries: USDCHF & EURGBP Reaction to Rate Hikes Welcome to the intriguing world of Forex, where currencies act at their own rhythm, sometimes defying expectations and confounding even the most experienced traders. In this article, we are going to unravel the “mysteries” surrounding the reactions of USDCHF and EURGBP to recent interest rate hikes. We will dive into the realms of market anticipation, monetary policy statements, and the significance of staying ahead in this dynamic landscape. 1. The Resilience of USDCHF As the Swiss National Bank (SNB) raises interest rates from 1.5% to 1.75%, market observers brace for the anticipated downward movement of the USDCHF. However, contrary to expectations, the currency pair displays remarkable resilience. Let's explore the underlying factors: a) Priced-in Expectations: The forex market is renowned for its ability to assimilate information in advance. It is likely that market participants had already factored in the interest rate hike, blunting the immediate impact on USDCHF. Such anticipatory behavior highlights the importance of staying attuned to prevailing sentiment and analyzing market positioning. b) Comparative Interest Rates: Understanding the relative interest rates of different currencies is paramount. If the rate hike in Switzerland was aligned with or lower than market expectations, and other major currencies offered more attractive rates, investors might have favored those currencies, mitigating the downward pressure on USDCHF. c) Monetary Policy Statement Outlook: Monetary policy statements accompanying interest rate decisions provide crucial insights into central banks' future intentions (you can usually watch them live on YouTube 30 minutes after the data release or on Bloomberg type of channels). Since the SNB's statement revealed a cautious and neutral stance, it has tempered the impact of the rate hike on USDCHF. Market participants pay close attention to forward guidance, as it shapes expectations regarding future policy actions and influences currency movements. 2. The Curious Behavior of EURGBP Let us now turn our attention to EURGBP, which failed to sustain a short sentiment following the Bank of England's interest rate hike from 4.5% to 5.00% (versus the expected 4.75%) and left a nasty week. To understand this curious behavior, we delve into the following factors: a) Market Expectations: The forex market is often driven by expectations and anticipatory positioning. If traders had already priced in the interest rate hike, the actual announcement might not have triggered a significant market reaction. Therefore, the lack of sustained short sentiment in EURGBP could be attributed to market participants adjusting their positions in advance. The GBP was up already by 4% within the last month against major currencies, so a big chunk of market was already longing EG for the expected short term recovery (guilty, but we also made a 2.9% profit closure on this). b) Monetary Policy Outlook: Beyond interest rate changes, central banks' monetary policy outlooks play a vital role in shaping currency dynamics. The accompanying statement from the Bank of England, which shed light on their future plans, indicated a more gradual approach to tightening or expressed concerns about economic conditions. Such cues influence market sentiment and limit the downward pressure on EURGBP. In case of UK, this is already not a good look with their inflation rates :/ Now, you may ask: “Investroy, what do we do if fundamentals don’t exhibit the expected economical impact?” Don’t worry, we got you! A Prerequisite for Success In the ever-evolving forex market, staying ahead of the curve is crucial. To navigate the intricacies and maximize opportunities, traders must adopt a proactive approach: a) Monitor Central Bank Communications: Understanding central banks' intentions requires careful analysis of their policy statements, speeches, and press conferences. These sources provide valuable clues about future policy decisions and can guide trading strategies. b) Assess Economic Indicators: Keep a keen eye on economic indicators that impact currency valuations, such as GDP, inflation, and employment data. These indicators provide a foundation for understanding a country's economic health and can influence currency movements. c) Stay Informed of Geopolitical Developments: Geopolitical events, such as trade disputes or political instability, can significantly impact forex markets. Being aware of these developments and their potential consequences on currency movements is crucial for staying ahead. d) Analyze Market Sentiment: Sentiment analysis, gauging the collective psychology of market participants, can offer valuable insights. Monitoring market sentiment through various indicators, such as positioning data and sentiment surveys, helps identify potential shifts and align trading strategies accordingly. e) Embrace Technological Tools: Utilize advanced trading platforms and tools that provide real-time data, customizable charts, and algorithmic trading capabilities. These resources empower traders to analyze market trends, spot patterns, and execute trades swiftly. Bonus) this one is a little subjective, but markets are very cyclic, if something is oversold, but everybody is expecting further bearish move, be sure there is a retracement coming before that happens 😊 Stay safe and enjoy your day!

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Optimal Guide to Action Trades Better There are only a few decisions you need to make as a trader. When you actually need to press buttons to action trades. To enter, to adjust and to exit. It’s crucial for you to know when is the right time to do so. You need to consider certain factors and criteria to enhance the chance of profitability. And at the same time to mitigate risks. So here are four optimal actions you’ll need to take. When the Trading Signals Line Up – ACTION! This one is a given. When your trading system, strategy and signal all align. This refers to the convergence of multiple indicators or technical analysis tools, such as breakout patterns, Smart Money Concepts, moving averages, trend lines, or oscillators. When these signals confirm each other, it presents a higher probability trade setup. You need to wait for the confirmation though and the go ahead. This way, you’ll gain the competitive edge for when to enter and to avoid premature trades. Adjust the Stop Loss or Take Profit Levels – ACTION! During a trade, it is essential to monitor the market closely and be ready to adjust the stop loss or take profit levels (according to your strategy). This should NOT be guess work. This should be calculated on probabilities and in a way that you can optimise the strategy in a mechanical fashion. The stop loss is a predetermined level that limits the potential loss on a trade. While the take profit is a predefined level at which a trader intends to exit the trade with a profit. As the market evolves, price action and new information may necessitate revising these levels to protect profits or minimize losses. Which we often do as traders to increase the win rate and lock in potential and minimal profits. Traders should remain flexible and make timely adjustments to ensure their trade is aligned with the prevailing market conditions. When the Time Stop Loss Hits – ACTION! In certain trading scenarios, there may be a need to exit a trade before it becomes a long-term investment. This is particularly relevant in markets where overnight positions incur daily interest charges, such as in some derivative or forex markets. Traders must set a predetermined time stop loss i.e. 7 weeks holding a trade. You don’t want to incur too many interest charges. You don’t want to MARRY a trade. You don’t want to have capital tied up in stock during nonperforming trades. This is an opportunity cost where you can choose better trades to line up. If this time stop loss is reached, it is prudent to exit the trade (no matter what time of day it is), even if it is still within the specified stop loss or take profit levels. Either you’ll take a less than desired profit or less than expected loss. By adhering to the time stop loss, traders can avoid accumulating excessive interest charges and maintain your trading strategy’s integrity. When a Freak Anomaly Spooks the Market, like a Black Swan – ACTION! In rare instances, unforeseen events or anomalies, often referred to as Black Swan events, can greatly disrupt financial markets. These events are characterized by their unpredictability and magnitude, causing extreme market volatility. Normally when a market or index moves 10 times the standard deviation of it’s normal move. When such anomalies occur, it is crucial to act swiftly and exit the trade. Trying to ride out these events can lead to substantial losses. By recognizing the abnormality and promptly exiting the trade, traders protect their capital and avoid unnecessary risks associated with highly volatile market conditions. That’s it. A few but powerful times you need to take action to lock in, protect, manage, bank and call it quits. Master this and you’ll make better and well-timed decisions and adapt your positions to changing market conditions.

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WHAT IS CUP AND HANDLE FORMATION In the traders' job the chart patterns indicating price changes are of great importance. This includes the "Cup and Handle" formation. A cup and handle is a popular chart pattern among technicians that was developed by William O’Neil and introduced in 1998. What does the pattern look like? "Cup with handle" is the term chosen because of the undeniable similarity between this type of dishes and what the trader sees on the chart. It is hard to judge how much this pattern is in demand among traders, because there are more practical interest formations. Cup The formation of a bullish trend is considered as an important condition that leads to the formation of such a position. Although experts consider it to be a reversal. "Cup with a handle" is formed at the moment when the correction of the previous rising direction of the chart takes place. At the same time, the trader should definitely pay attention to the depth of the chart. It is of interest if the formed slope does not exceed 80% of the trend that was before the formation of this specific pattern. The bottom of the formed bowl meets the period of price consolidation, upon its completion the ascent begins. Handle The handle on the chart means nothing else than the correction of prices in relation to those that were at the time when the right side of the cup was formed. Trades compare this section not so much to a pen as to a flag. Of interest is the situation when the flag begins to form immediately after the end of the formation of the right side of the cup. The length of the handle created by the chart should not exceed 50% of the size of the right side of the cup. The formation of this part of the graph takes quite a long time. The long-time interval indicates the subsequent formation of the trend. This section of the chart becomes fully complete only after the resistance level is broken. If we look at what we see on the chart from a practical point of view, we can say the following: when the left part of the cup is drawn, there is a gradual decline in prices, at the time of formation of the bottom they remain stably low, and during the creation of the right part there is a gradual increase in prices. At the moment of the breakdown a sharp increase in the number of trades is observed. How to trade the chart pattern on Forex Aggressive Conservative Regular Each of them has its own positive and negative characteristics. Low demand among the used Forex methodologies is caused by the fact that it requires taking into account a large number of indicators, otherwise the probability of making a mistake is very high. Particular difficulties may occur in the analysis of the depth and width of the chart figure. The probability of missing a profit when working with this type of chart is rather high. Aggressive method It is considered riskier. It is based on the behavior of the handle. The orders should be started after the breakout of the handle or, using another terminology, the breakout of the flag. In this case the "stop" position is placed below the level that the breakout of the candle. Regular Method The regular approach to trade positions are opened immediately after the breakdown of the pattern line. Stop-loss should be placed below the handle, that is, below the line involved in the formation of resistance. Conservative method It is used most often. It is based on the classical traditions of trading. Attention is paid to the breakdown of the technical line. The ideal variant is entering after the retest of the breakout line. The stop-loss should be below the handle or below the "breakout" candle from the breakout line (at least if it is big enough).

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Forex Trading Key Factors Important factors that if well approached, will ensure your long term success. Forex trading is a popular form of investing that involves buying and selling currencies in the foreign exchange market. As with any form of trading, success in forex trading requires a deep understanding of the market and the key factors that impact profitability. In this blog post, we'll discuss some of the most important factors that traders need to keep in mind when trading forex. Liquidity: The Lifeblood of Forex Trading Liquidity refers to the ease with which a trader can buy or sell an asset without affecting its price. In forex trading, liquidity is crucial because it ensures that traders can enter and exit positions quickly and at a fair price. Traders should look for currency pairs that have high trading volumes and low bid-ask spreads to ensure they have access to liquid markets. Void Gaps: Managing Risk and Protecting Profits Void gaps occur when there is a sudden and significant change in the price of a currency pair due to unexpected news or events. These gaps can be dangerous for traders because they can cause losses or missed opportunities. To avoid void gaps, traders should use stop-loss orders and other risk management strategies to protect their positions and profits. Mindset: Discipline and Focus are Key Forex trading requires a disciplined and focused mindset. Traders must be able to control their emotions, avoid impulsive decisions, and stick to their trading plan. Common psychological traps that traders should be aware of include fear, greed, and overconfidence. By developing a disciplined and focused approach to trading, traders can improve their chances of success. Selecting the Right Trading Sessions: Timing is Everything Forex markets are open 24 hours a day, five days a week. However, not all trading sessions are created equal. Traders should select the sessions that align with their trading style and goals. For example, traders who prefer short-term trading strategies may find the London and New York sessions to be the most active and volatile, while those who prefer longer-term strategies may focus on the Asian session. Patience: The Virtue of Successful Traders Patience is a virtue in forex trading. Traders should avoid the temptation to jump into trades too quickly or exit them too soon. Impatience can lead to costly mistakes, such as entering trades that don't meet the trader's criteria or closing profitable positions too early. By exercising patience and waiting for the right opportunities, traders can improve their chances of success. Execution: Putting Theory into Practice Executing trades properly is essential for success in forex trading. Traders should use stop-loss orders, position sizing, and risk management strategies to protect their capital and maximize their profits. They should also be aware of the potential impact of slippage, which occurs when the price at which a trade is executed differs from

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Bull Market Booming: Top Tips to Maximize Your Investment Gains!It appears that a bull market has taken hold in the US market, as evidenced by the remarkable rise of the S&P 500 index, surging over 20% from its October lows. Adding to this favorable outlook, the Federal Reserve has finally implemented a much-anticipated pause in the cycle of interest rate hikes. With the shift in market sentiment from bearish to bullish, investors are eagerly looking for avenues to leverage this upward trend and make the most of the prevailing conditions. Today, we will delve into the various factors that indicate the arrival of a bull market, along with strategies and invaluable tips to help you seize the opportunities presented by this favorable market scenario. What Lies Behind All This Optimism? The current wave of optimism in the market and the emergence of a new bull market can be attributed to several significant factors that are often overlooked or avoided in discussions. One key reason behind this optimism is the remarkable earnings results reported by companies. Investors are celebrating the fact that companies are no longer delivering mediocre performance. Instead, they are exceeding expectations and showcasing strong growth. This shift in mindset from accepting average results to embracing a "glass-half-full" outlook is driven by the realization that companies are meeting and even surpassing the high growth expectations set for them. This surge in optimism is fueled by the confidence that companies have proven their ability to generate substantial earnings and capitalize on market opportunities. Investors are therefore responding by driving up the market and contributing to the overall bullish sentiment. It is important to acknowledge and consider this fundamental aspect when discussing the reasons behind the current optimism and the substantial year-to-date increases observed in the market. The impressive performance of companies and their ability to meet or exceed growth expectations have played a vital role in shaping the current bullish market sentiment. S&P 500 daily chart The positive forward guidance provided by CEOs further reinforces the current optimism in the market, as it signals their increased confidence in navigating challenges, particularly those posed by inflation. A notable example of this trend can be seen in Nvidia's Q1 earnings report, which highlighted the company's upwardly revised guidance. This adjustment reflects the strong demand for AI technologies that power applications at major industry players such as Google, Microsoft, and OpenAI, the creator of ChatGPT. Nvidia's projected revenue of $11 billion for Q2 significantly surpassed the estimates put forth by Wall Street analysts. This impressive figure serves as tangible evidence that the AI craze is more than just hype. The surge in demand for graphics processing units (GPUs) from both established tech giants and startups as they develop their AI platforms has been a key driver behind Nvidia's remarkable performance. As a result, the company's shares experienced a staggering 26% surge, propelling Nvidia's market value to an extraordinary $1 trillion. This achievement places Nvidia among the elite group of publicly traded US companies that have reached this milestone, joining the ranks of industry giants such as Apple, Microsoft, Google parent Alphabet, and Amazon. The significance of Nvidia's market value milestone further solidifies the notion that the demand for AI technologies is substantial and here to stay, providing a strong foundation for the ongoing bull market in the US market. Tesla stock daily chart Tesla has also emerged as a significant player worth noting in the current market landscape. The company has experienced a remarkable turnaround, with its stock value surging by an impressive 70% over a six-month period, including a notable 53% increase in the past month alone. This is a noteworthy development, considering that Tesla had suffered a substantial loss of around two-thirds of its value in 2022. The strategic and timely price cuts implemented by Tesla, although initially perplexing to some, are now proving to provide the company with a potential market share advantage. These price adjustments have contributed to the renewed interest and confidence in Tesla, ultimately fueling its recent resurgence. As the Q1 reporting cycle has concluded, the results reveal a strong performance for tech stocks in the latter half of the year. This surge can be attributed to the prevailing optimism surrounding the Federal Reserve's approach to nearing the end of its rate hike cycle. The anticipation of higher interest rates, coupled with concerns of slower economic growth and softer labor market conditions, has contributed to a decline in inflation. Surprisingly, the adverse effects that were initially expected to impact households and businesses have been less severe than initially predicted. Furthermore, with the concerns surrounding the US debt ceiling alleviated and the mitigation of inflation risks, the overall market sentiment has undergone a transformation from bearish to bullish. This shift in sentiment is likely to continue, with stocks, particularly mega-cap tech companies like Tesla, expected to maintain strong returns throughout the remainder of the year. Overall, Tesla's impressive turnaround and the positive performance of tech stocks exemplify the overall market's optimistic outlook, driven by a combination of factors such as Federal Reserve actions, inflation dynamics, and improved market conditions. Top Bull Market Stocks to Consider Buying Now: Tesla (TSLA) This is not financial advice. Indeed, Tesla's influence extends beyond its position as a dominant player in the electric vehicle (EV) market. The company's offerings go beyond vehicles and encompass solar and energy storage solutions. Tesla's plans to establish a factory in Shanghai for manufacturing Megapack batteries further solidify its position as a leader in the renewable energy sector. These batteries play a crucial role in storing renewable energy, alleviating strain on the grid during peak hours, and promoting a more sustainable energy ecosystem. While Tesla's growth will be primarily driven by its vehicle production, the company's positive outlook is reinforced by upcoming price cuts and the launch of new products such as the highly anticipated Cybertruck and Semi. These product expansions contribute to the company's overall growth potential and indicate its commitment to innovation and diversification within the EV market. Despite some mixed recent financial results, investing in Tesla during the current bullish market phase is seen by many as a reasonable bet on the company's potential to become the world's largest automaker. Tesla's strong market presence, technological advancements, and commitment to sustainability have garnered significant investor confidence and positioned the company for continued success in the evolving automotive and renewable energy sectors. Alphabet (GOOGL) Alphabet stock daily chart Google, with a staggering market capitalization of $1.6 trillion, stands as one of the most prominent names in the business world. It secures its place among the top five most valuable companies globally and boasts a widely recognized and esteemed brand. Google remains at the forefront of groundbreaking advancements in various technological spheres, including mobile technology, cloud services, data analytics, artificial intelligence (AI), and virtual reality. These innovative developments continue to drive the company's success and shape its competitive edge. Notably, a significant portion of Google's revenue stems from its dominance in internet advertising, a lucrative sector that contributes substantially to its financial performance. The active integration of AI within Google's operations serves as a strong catalyst for the growth of its shares. As AI technology becomes increasingly prevalent, it expands the addressable market for Google, creating new avenues for growth and revenue generation. The global corporate AI market, in which Google actively participates, is projected to experience a remarkable annual growth rate of 34.1% until 2030. This highlights the immense potential and opportunities that lie ahead for Google as it leverages AI capabilities to propel its business forward. With its continuous pursuit of technological innovation and a diversified revenue stream, Google remains a formidable force in the industry, poised for sustained growth and influence in the years to come. Intel (INTC) Intel stock Monthly chart The increasing adoption of artificial intelligence (AI) technology has created a surge in demand for chips, leading to notable market movements for prominent AI chip manufacturers. Both Advanced Micro Devices (AMD) and NVIDIA have experienced significant share price increases since the start of 2023, capitalizing on the growing enthusiasm surrounding AI advancements. In light of this trend, chipmaker Intel is also seeking to position itself as a key player in the AI chip market. Intel has been engaged in negotiations for a strategic initial public offering (IPO) investment with Arm, a renowned British chipmaker. This move follows NVIDIA's previous unsuccessful attempt to acquire Arm. By exploring this potential partnership, Intel aims to solidify its position in the AI chip sector and leverage Arm's expertise and technology to enhance its own capabilities. The negotiations highlight the fierce competition among chipmakers to secure a prominent position in the rapidly expanding AI market. As the race for AI chip dominance intensifies, these developments demonstrate the strategic moves undertaken by major players in the industry to stay ahead in the evolving landscape of AI technology. The outcome of these negotiations will undoubtedly have implications for the future trajectory of the AI chip market and the competitive dynamics among key players such as AMD, NVIDIA, and Intel. Strategies For Investing In A Bull Market If we are indeed in the early stages of a new bull market, it's crucial to have strategies in place to make the most of rising stock prices. Here are four strategies to consider: 1 ) Diversification and Asset Allocation: Review your asset allocation to ensure you have sufficient exposure to stocks to benefit from the bull market. Consider rebalancing your portfolio by reducing your allocation to bonds and cash while increasing your allocation to equities. However, exercise caution and remain aware that market conditions can change rapidly. Don't assume that stocks will only go up from here. Maintain a well-balanced portfolio that includes a mix of stocks, bonds, and cash. If you're uncertain about the ideal mix, the Rule of 110 suggests subtracting your age from 110 to determine the percentage of your portfolio to allocate to stocks. 2 ) Focus on Growth Stocks and Sectors: In a bull market, growth stocks and sectors tend to perform well. Look for innovative companies that leverage technology to create efficiencies or address global challenges. Industries experiencing rapid growth in 2023 include CBD product manufacturing, 3D printing, solar power, and artificial intelligence. Remember that growth stocks offer higher return potential but also come with increased risk compared to more established companies. 3 ) Consider Value Investing: Value stocks are equities that appear undervalued relative to their intrinsic value. They may be trading at lower prices due to investor overreactions or a market environment that favors faster-growing assets. In a strong bull market, value stocks may lag as investors favor growth assets. However, for patient, long-term investors, this presents a buying opportunity. Value stocks often shine during bear markets and may offer dividend payments. Utilize the bull market to increase your holdings of value stocks, which can act as a buffer during the next bear market while providing dividend income. 4 ) Dollar-Cost Averaging: Implement a strategy known as dollar-cost averaging (DCA), where you invest a fixed amount on a regular schedule, regardless of market fluctuations. For example, invest $400 on the same day each month instead of trying to strategically time the market. DCA helps manage the volatility often seen in the early stages of a bull market. By investing consistently, you buy more shares when prices are low and fewer shares when prices are high. This approach lowers your average cost basis over time and minimizes the impact of short-term market fluctuations. Remember that these strategies should be tailored to your individual financial goals, risk tolerance, and time horizon. It's advisable to consult with a financial advisor who can provide personalized guidance before making any significant investment decisions. Risks To Be Aware Of In A Bull Market While bull markets can present favorable opportunities, it's crucial to be aware of potential risks and pitfalls. Here are three significant risks to consider: 1 ) Overconfidence and Speculation: During a bull market, there is a tendency for investors to become overconfident and take on higher levels of risk. This can lead to speculative investing, where investors chase after high-risk, high-reward opportunities. However, when the bull market eventually ends, these speculative investments may experience substantial losses. It's important to maintain a balanced approach to investing and avoid excessive risk-taking, as downturns can permanently impact the outlook for smaller, less established companies. 2 ) Market Bubble: Bull markets can sometimes give rise to market bubbles, where stock prices become significantly detached from their underlying value. This occurs when investors, driven by excessive optimism, push prices to unsustainable levels. While market bubbles can provide opportunities for gains in the short term, they also carry the risk of a sudden correction or crash. Once the bubble bursts, panic can set in, causing a rapid decline in stock prices and the onset of a new bear market. It's essential to remain cautious and be aware of signs of excessive market exuberance. 3 ) Impact of Interest Rates and Inflation: The interplay between interest rates, inflation, and economic conditions can influence the trajectory of a bull market. Changes in interest rates by central banks, such as the Federal Reserve, can impact borrowing costs and corporate profitability. Additionally, shifts in inflation levels can affect consumer spending power and overall economic growth. Uncertainties regarding future interest rate hikes or spikes in inflation can introduce volatility and potentially dampen or reverse a bull market. It's important to monitor economic indicators and the actions of central banks to gauge their potential impact on market conditions. It's worth noting that predicting the specific outcomes of these factors in the coming months or years is challenging. The key is to remain vigilant, maintain a diversified portfolio, and consider the long-term perspective when making investment decisions. Consulting with a financial advisor can provide valuable guidance in navigating the risks associated with a bull market. Tips For Benefitiing From A Bull Market To successfully navigate a bull market and maximize your investment potential, it's important to consider the following strategies: 1 ) Stay Disciplined: Maintaining discipline is crucial in avoiding excessive risk-taking and speculative behavior. Define your investing parameters and process, and stick to them. Establish clear criteria for the types of investments you're willing to make and the level of risk you're comfortable with. Evaluate any exceptions carefully and have a clear exit plan for more speculative assets. By staying disciplined, you can mitigate the risks associated with overaggressive investing and ensure a more measured approach to capitalizing on the bull market. 2 ) Think Long-Term: Adopting a long-term perspective is key to protecting your investments from short-term market fluctuations and potential downturns. While it can be tempting to make impulsive decisions based on short-term market movements, it's important to focus on your long-term financial goals. Allocate a portion of your portfolio to cash reserves to cover emergencies or major purchases, so you don't need to tap into your investment accounts during market volatility. This long-term outlook allows you to weather market cycles and take advantage of opportunities that may arise, while also providing stability and peace of mind. 3 ) Rebalance Regularly: Bull markets can lead to overexposure to stocks as their value appreciates. Regularly rebalancing your portfolio helps maintain your desired asset allocation. For example, if your target allocation is 70% equities and 30% bonds and cash, and stocks have outperformed, your allocation may shift to 75% stocks and 25% bonds and cash. By periodically selling stocks and purchasing bonds, you can restore your desired asset allocation and lock in some profits from the bull market. Rebalancing also helps manage risk by ensuring that your portfolio remains aligned with your risk tolerance and investment objectives. 4 ) Seek Professional Advice: Each individual's financial situation is unique, and it's important to consider your circumstances when implementing investment strategies. Regularly review your investment plan and consult with a financial professional to ensure it remains aligned with your goals and risk tolerance. A financial advisor can provide personalized guidance based on your specific situation, help you navigate market trends, and offer insights on potential investment opportunities. They can also assist in assessing the performance of your portfolio and making adjustments as needed. By following these strategies, you can position yourself to make informed investment decisions, manage risk, and capitalize on the opportunities presented by a bull market. However, it's important to remember that investing involves inherent risks, and past performance is not indicative of future results. Stay informed, monitor market conditions, and be prepared to adjust your strategies as needed. Conclusion: As the bull market gains momentum, it is essential for investors to be well-prepared and make informed decisions. Employing various strategies such as diversification and asset allocation, emphasizing growth stocks and sectors, considering value investing, and implementing dollar-cost averaging can significantly enhance one's ability to navigate the market effectively. Nevertheless, it is crucial to remain cautious of potential risks, including overconfidence, market bubbles, and the influence of interest rates and inflation. To maximize gains during the bull market while minimizing potential risks, it is vital to maintain discipline, adopt a long-term perspective, regularly rebalance portfolios, and seek professional advice. It is important to note that individual circumstances vary, thus investment strategies should be tailored to align with personal financial goals and risk tolerance.

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Why you DID NOT take the trade - 4 REASONS So you never took a trade again? This could be where the problems are rising. It’s also where you are probably missing out on what could help take your portfolio out of the drawdown. And sometimes, despite favourable market conditions, you may find yourself still hesitating to enter a trade. I want to explore four common reasons why traders fail to take the trade and how to overcome them. #1: The market moved too much One of the most common reasons traders hesitate to take the trade is that… The market has already moved significantly, and they fear they have missed the opportunity. However, it’s important to remember that the market is constantly in motion. The train will move and there is always an opportune moment to get into a trade. A sound trading strategy should take into account different market conditions, including volatile ones, and provide clear entry and exit points. If the market lines up despite how high or low it’s gone. Just take the trade. #2: You’re scared to lose the trade FOLO or Fear Of Losing Out is another common reason traders hesitate to enter a trade. While it’s natural to want to avoid losses. It’s important to remember that trading involves risk, and losses are inevitable. A sound risk management strategy, including setting stop-loss orders and managing position size, can help you to minimize potential losses and build confidence in entering a trade. #3: Too much money to spend Traders may also hesitate to enter a trade if they feel they have too much money to spend. Take oil for example. Most market markets (brokers) offer you to buy Brent crude but you have to buy 100 contracts as a minimum. In this case, it MIGHT be too much money to spend. Not because of how much of your portfolio you’re using up, but also because the risk might outweigh 2% of your portfolio. Then you get other markets like the JSE ALMI 40, where you’ll need to spend around R9,000 to enter a trade. It sounds like a lot (especially if your portfolio is less than 10,000. But, that’s why one should start with a larger minimum account size. I started with R30,000 in 2003 and even then it was too little to grow into a substantial amount. Then when it grew to the first R150,000, I started feeling comfortable with the portfolio size and it opened more opportunities to trade additional markets. So, that’s why if you want to take trading seriously, you got to cough up the cash into your portfolio and trade accordingly to strict money and reward management. #4: No trust in the system yet This one is a given and the most abundant reason to NOT take a trade. You might hesitate to enter a trade if you don’t have faith or confidence in your trading strategy or system. In this case, it’s essential to go back, review and test the strategy, ensuring it aligns with personal trading goals and is backed by sound research and analysis. When you build trust in a trading system, and you take the time and patience to see the good and the bad, then your confidence will grow. And that will be an essential step towards taking more trades to help grow your portfolio. Why don’t you take trades when you should? Is it because: You don’t trust your system You’re scared to lose money You don’t trust certain markets You don’t have enough money to trade different instruments You’re not ready with your strategy You don’t have confidence with yourself, discipline and emotions yet? Find them, harness them, work on them and you might have your answer.

Education

Mastering the Mental Game of Trading-THIS ONE FOR THE BOYZ Trading is 99.98% mental and 1% physical. Stay focused, disciplined, and immune to the influence of FUD and FOMO to maximize your trading success. Trading is not for the faint of heart! It requires a strong mindset, unwavering discipline, and the ability to navigate the treacherous waters of FUD (fear, uncertainty, doubt) and FOMO (fear of missing out). Here are some key insights to help you master the mental game of trading and stay on top of your game! 💪 1️⃣ Stick to Your Plan: A well-defined trading plan is your guiding light in the chaos of the market. It helps you make rational decisions and avoid impulsive moves driven by emotions. Trust your plan and resist the temptation to deviate from it. 2️⃣ Manage Your Emotions: Emotions can cloud judgment and lead to irrational decisions. Stay calm, composed, and unswayed by the market noise. Don't let FUD and FOMO derail your trading strategy. Embrace a disciplined approach and separate emotions from your trading decisions. 3️⃣ Timing is Key: Recognize that there are different trading opportunities in different market conditions. Some days are meant for day trading, while others are for accumulating positions. Be mindful of key levels and choose your entry and exit points wisely. Patience and timing are crucial. 4️⃣ Mind Over Bag: Trading is a marathon, not a sprint. Focus on long-term gains and building a strong position rather than chasing quick profits. Avoid being swayed by influencers or external factors that can disrupt your game plan. Keep your eye on the bigger picture. 5️⃣ Stop Loss Strategy: While stop losses are essential risk management tools, they need to be used judiciously. Tight stop losses at critical levels may lead to premature liquidation. Assess the market conditions and adjust your stop losses accordingly. Let your trades breathe within reasonable risk parameters. Remember, success in trading stems from a disciplined mindset, adherence to your plan, and the ability to overcome emotional impulses. Build your skills, stay focused, and enjoy the journey of becoming a master trader! 🚀💰

Education

by bagboybillionaire

Cost-Benefit Analysis of Looking outside the Scope of Trend A Cost-Benefit Analysis of Looking outside the Scope of Trend: To Peek or Not to Peek “The trend is your friend until the end when it bends.” - Ed Seykota Trend analysis lies at the core of technical analysis. Modern technical analysis derived from Dow Theory. In turn, Dow Theory emphasized the nature and importance of trends and their constituent parts and degrees. Many may recall Dow’s analogy of different trend degrees: the tide (primary trend), waves (secondary trend), and ripples on the waves (minor / short-term trend). Technical analysis includes many other concepts within its scope. But within technical analysis broadly, the primary focus remains the trend structure. Before considering trends, it may help to discuss the distinction broadly between technical analysis and fundamental analysis. A. Technical Analysis versus Fundamental Analysis Top traders and market experts have taken each side in the debate over whether technical or fundamental analysis has the greatest efficacy. Some have straddled the line, preferring a combination of the two. Some consider technical analysis to be not only superior but also relatively straightforward and efficient compared to other types of analysis, such as fundamental analysis or positioning analysis.FN1 Positioning analysis is beyond the scope of this post and is briefly explained in the first footnote. Jim Rogers, a famous investor who managed a reportedly very successful fund with George Soros in the 1970s, and who had had many accurate forecasts, expressed strong disdain for technical analysis—he once told Jack Schwager, “I haven’t met a rich technician.” But some of the greatest traders and market experts stand on the other side of this debate. For example, Ed Seykota is a trader of great renown included in Schwager’s 1993 Market Wizards: Interviews with Top Traders. Seykota chose the technical-analysis camp, giving the most weight to trends, chart patterns and good entries and exits. He once described markets in a way that evokes Charles Dow’s wave analogy: If you want to know everything about the market, go to the beach. Push and pull your hands with the waves. Some are bigger waves, some are smaller. But if you try to push the wave out when its coming in, it’ll never happen. The market is always right. A former portfolio manager for Fidelity Management who founded several other research and investment firms, David Lundgren, described how he came to follow the principles of technical analysis even though he still expressed great value for fundamental analysis. From an interview included in a 2021 Technical Analysis of Stocks and Commodities magazine, Lundgren shared some of his experiences and insights on this topic. In his view, fundamentals can matter significantly over the long term especially as to stocks. But Lundgren’s most outstanding remarks in this interview distinguished between these two conceptual approaches to financial markets. He aptly characterized fundamental analysis as being based on the view that the “market is wrong.” In other words, the valuations drawn from a publicly traded company’s financial statements (e.g., P/E ratio, enterprise value, book value) assume the market is “overestimating or underestimating value” and that the price should be above / below the current market price. By contrast, he said technical analysis assumes the contrary view that the market is actually right in its current price and price trend. The critical distinction between technical analysis and fundamental analysis boils down to ego, according to Lundgren, because pure technical analysis “accepts the verdict of the market” whereas pure fundamental analysis “involves hundreds of hours developing an opinion of what is attractive and often with the verdict of the market.” Much ink has and will be spilled on whether price discounts everything, and if so, how fast and efficiently (Charles Dow Theory). In any case, fundamental, technical and positioning modes of analysis are not mutually exclusive. B. Whether to Consider Data outside the Confines of Trend Since last year’s October 2022 lows in the S&P 500 (SPX) and other major US indices, the current equity market uptrend has been challenging and bewildering to many investors, traders and analysts. It has been especially difficult to comprehend for those who are keenly aware of the broader financial and macroeconomic environment, which includes purportedly tight monetary policy and quantitative tightening (reducing Treasury securities off the Fed’s balance sheet) as well as stubborn core inflation. Such an environment broadly speaking remains unfavorable to equities for the most part.FN2 But trends do not always move in the most sensible direction, and they do not always align consistently with the macroeconomic evidence. Sentiment or even positioning, discussed briefly in the first footnote, can affect the trend even when it may run counter to the macroeconomic evidence. And trends can stretch into an overbought or oversold condition longer than anyone expects, a principle captured by the old aphorism, attributed to John Maynard Keynes, that “markets can remain irrational longer than you can remain solvent.” Exhaustion doesn’t require a 180-degree turn but often appears more like a process, especially at market tops given the long-only nature of most equity capital. Pure trend followers, who supposedly consider only the technical trend-based evidence, may not care whether the trend makes sense. Indeed, they place their stops and align their trades / investments in accordance with one of many trend-based strategies. And this narrowed focus may be very helpful and exceedingly profitable at times. A recent example is the Nasdaq 100 (QQQ), or even some large or mega-cap tech names like AAPL, MSFT, META, and NVDA. These indices and securities could have rewarded narrowly focused trend-followers quite well on daily and weekly time frames over the past eight months, especially if discipline was used to enter positions at major uptrend supports with stops moved to breakeven or higher along the way. Such trend traders and investors may be busily counting their profits rather than being distracted with inverted yield curves and FOMC policy statements. The question becomes whether one may look outside the trend (or technical analysis generally). This issue likely generates pages of academic argument and hours of financial media debates between experts. And it may be something for all traders to ponder for a bit. Given how much of an influence positioning has developed on equity markets over time, as well as central-bank quantitative tightening or quantitative easing, it seems important to consider data from such sources. Such data may also include trend information that affects trends in everything else. For example, trends in the price of commodities may tell us about inflation and likelihood of tighter monetary policy / interest rate hikes by a central bank. And trends in the money supply may strengthen or weaken the case for a current trend in equities. C. Cost-Benefit Analysis of Looking beyond the Trend In this author’s view, it is not necessarily foolish or improper to sneak a peek or a long thoughtful gaze, outside a rigid trend-based framework. As with everything in life and trading, costs and benefits must be weighed. The biggest drawback to going outside the confines of trend is the tendency of many traders to try to consider far too much. Our brains are only capable of processing so much at a given time. Focusing on too much data can cause dilute confidence, weaken resolve, and obfuscate trends. In addition, by the time a trader considers a macroeconomic data point, computerized systems likely have informed all the largest institutional players, or even algorithmic or high-frequency traders, who acted on it before you even had a chance to review its implications. And the market’s reaction to non-technical data points is not always intuitive. But if one can manage understanding additional data outside the trend/price framework, one might find benefit in learning and following data on yield curves, bond-market dynamics, Fed Funds rates, macroeconomic data, inflationary measures, and volatility gauges can inform one’s outlook in useful ways. The key here is to avoid repeatedly (and blindly) fighting the trend in price—even if one fights that trend with some of the most rational, reasonable and persuasive arguments based on overwhelming macroeconomic, volatility, sentiment, positioning, or other such evidence as to why price should be going the opposite way. In short, this is the important general rule for trend-based systems—make the trend your friend until the end when it bends.FN3 D. Practical Application and Hypotheticals Just because one should make friends with the trend does not warrant chasing extended trends (see FN3), unless the trader or investor has developed particular expertise in momentum trading, and even then, caution is greatly warranted. Every trend has its proper entries for the time frame involved. Uptrends necessarily require countertrend retracements to support whether defined as an anchored VWAP, key moving average, Fibonacci retracement, upward trendline, or standard-deviation based measures such as linear regression or Bollinger Bands. Technically, this is not peeking outside the trend, but rather it merely considers evidence of trend exhaustion and the likelihood of mean reversion. Further, a trend-based framework should in fact include considering higher time frame trends such as a monthly chart where each price bar represents one month of price data. One of this author’s collaborators, @SPY_Master, has performed some excellent trend-based analysis on timeframes as high as monthly, quarterly (even yearly bars at times). It is quite common, moreover, for higher-degree trends to move in the opposite direction as lower-degree trends, such as during a monthly or quarterly uptrend experiencing a corrective retracement to trend support that lasts for days or weeks. Or the hourly trend can move against the daily / weekly trend, frequently does so whenever a countertrend retracement to trend support occurs. Can one technically “fight the trend” merely by preferring a higher degree time-frame trend when it conflicts with a shorter one? The answer depends on one’s time frame, risk tolerance, position size, and rationale. In addition, trends involving a particular stock, index, or other security can be evaluated based on their relative strength, i.e., as a ratio of the subject stock, index or security to another stock, index, security or data series. The S&P 500 can be compared to the Nasdaq 100 or 10-year Treasures. Or BITSTAMP:ETHUSD can be charted as a ratio to another cryptocurrency. This author would argue that such metrics can provide useful trend-based insights even though they incorporate data that is technically beyond the scope of trend. Below are a couple such relative-strength charts that arguably fall within trend-analysis despite relying on data that would normally be considered outside of a price trend's scope: Example 1 shows this author's relative strength chart of NASDAQ:AAPL to OANDA:XAUUSD (Gold). This is a very long-term chart showing the outperformance trend in AAPL over two decades to the precious medal and commodity Gold. Example 2 shows @SPY_Master's relative-strength chart of NASDAQ:NVDA , the AI-tech stock into which everyone's distant relatives are now inquiring after its meteoric rise from 2022 bear-market depths. The chart is a relative-strength chart of the ratio of NVDA to the 10-Year Treasury note, which aptly shows how overvalued NVDA is relative to a risk-free asset. It appears far too extended above the risk-free asset in terms of standard deviation on a linear regression-based model shown here. (Note that yields and bonds move inversely, so where an asset outperforms a risk-free bond, it means that the asset is extended given the level of yields produced by that bond.) Credit: SPY_Master (used with permission) To conclude, consider the following hypothetical scenarios as a thought experiment. Assume a stock has a monthly or quarterly chart that is extended multiple deviations above the mean (or multiple deviations as a ratio of its price to the money supply). NVDA presents a good case study for these concepts. Scenario A: A person entered the position at $290 and took profits on this stock at $405, preferring to exercise caution and avoid this stock as a long-term investment. Scenario B: A hedge fund with a 150-page report of deep research on NVDA and the macroeconomic backdrop has a 10-year time horizon and begins scaling into a short position to anticipate a mean reversion at the higher degrees of trend (monthly, quarterly time frames). The hedge fund will add one quarter at $450, another quarter position at $500, and the final two quarters between $500 and $600 if reached. Should either scenario be deemed fighting the trend? Is either scenario ill-advised use of capital? Any answers are welcome in the comments provided respectful towards others. FN1 This footnote helps explain some basics of fundamental and positioning analysis. Beyond this brief explanation, this article will defer to other educational experts for a more thorough explanation of these three modes of financial analysis. Fundamental analysis for equity indices like SP:SPX or NASDAQ:NDX considers macroeconomic data and metrics that focus on an economy’s growth (e.g., GDP), price-stability / inflation (CPI, PCE, PPI), consumption, real estate, money supply, central-bank rate policies, central-bank QE or QT, trade deficits, and more. Fundamental analysis as to individual stocks involves the use of financial data such as revenue, earnings per share, cost of goods sold, capital expenditures, and other data available from a public company’s certified financial statements, as well as financial ratios relying on such data, e.g., earnings per share (EPS), price-to-earnings (P/E) ratios, price-to-sales ratios (P/S) and liquidity ratios (current ratio). In the US and other major economies, securities rules mandate that companies file full disclosure of their financial health, certified by CEOs and CFOs, in annual reports (10-K and quarterly reports (10-Q) on an ongoing basis. Positioning analysis looks at a complex array of data that covers institutional market positioning and order flows for stocks, options, indices, commodities and futures. It also looks at increasingly important dealer hedging flows (volume and open interest) in options markets and the effect of implied volatility and time on such flows. It can include such insights as net positioning on each side of a given futures market or index by hedgers and speculators. This is an area where expert commentary is helpful to learn even the basics. FN2 Yet the central-bank and US Treasury actions behind the scenes may have masked, or even partially or wholly offset, tight Fed interest rate and monetary policy at times during the first half of 2023. For example, many financial publications and analysts discussed the US Treasury’s accounting maneuvers intended to prolong its borrowing authority in light of the debt-ceiling standoff. Commentary also noted that such maneuvering, draining the TGA account (the US Treasury’s “checking account” held at the Federal Reserve), injected money / liquidity into the financial system, which likely muted Fed’s efforts to tighten policy in the short-term while those actions were ongoing. FN3 But as is often the case with a general rule, the exceptions can dilute the rule somewhat. One prominent exception is mean-reversion analysis / trading systems. In addition, some traders and institutions are trend-reversal traders—a high risk, high reward type approach that requires immaculate risk management, timing, precision and patience, often scaling into and out of massive positions that cannot be acquired or unloaded in a period of days.

Education

Learn The Market Volatility | The Double-Edged Sword Have you ever wondered why the certain trading instruments are very rapid while some our extremely slow and boring? In this educational article, we will discuss the market volatility, how is it measured and how can it be applied for making smart trading and investing decisions. 📚 First, let's start with the definition. Market volatility is a degree of a fluctuation of the price of a financial instrument over a certain period of time. High volatility reflects quick and significant rises and falls on the market, while low volatility implies that the price moves slowly and steadily. High volatility makes it harder for the traders and investors to predict the future direction of the market, but also may bring substantial gains. On the other hand, a low volatility market is much easier to predict, but the potential returns are more modest. The chart on the left is the perfect example of a volatile market. While the chart on the right is a low volatility market. 📰 The main causes of volatility are economic and geopolitical events. Political and economic instability, wars and natural disasters can affect the behavior of the market participants, causing the chaotic, irrational market movements. On the other hand, the absence of the news and the relative stability are the main sources of a low volatility. Here is the example, how the Covid pandemic affected GBPUSD pair. The market was falling in a very rapid face in untypical manner, being driven by the panic and fear. But how the newbie trader can measure the volatility of the market? The main stream way is to apply ATR indicator, but, working with hundreds of struggling traders from different parts of the globe, I realized that for them such a method is complicated. 📏 The simplest way to assess the volatility of the market is to analyze the price action and candlesticks. The main element of the volatile market is occasional appearance of large candlestick bars - the ones that have at least 4 times bigger range than the average candles. Sudden price moves up and down are one more indicator of high volatility. They signify important shifts in the supply and demand of a particular asset. Take a look at a price action and candlesticks on Bitcoin. The market moves in zigzags, forming high momentum bullish and bearish candles. These are the indicators of high volatility. 🛑 For traders who just started their trading journey, high volatility is the red flag. Acting rapidly, such instruments require constant monitoring and attention. Moreover, such markets require a high level of experience in stop loss placement because one single high momentum candle can easily hit the stop loss and then return to entry level. Alternatively, trading a low volatility market can be extremely boring because most of the time it barely moves. The best solution is to look for the market where the volatility is average, where the market moves but on a reasonable scale. Volatility assessment plays a critical role in your success in trading. Know in advance, the degree of a volatility that you can tolerate and the one that you should avoid. ❤️Please, support my work with like, thank you!❤️

Education

by VasilyTrader

RISK MANAGEMENT As we wait for GBP CPI news later today and the BOE rate hike decision on thursday , its good to remind ourselves that one trade doesn't make us its a marathon not a race . The volatility associated with these fundamentals is always a double edged sword . STAY WOKE

Education

#TradingViewPAY HOW TO EARN 💲💲 BY BECOME THE BEST AUTHOR ON TV Get rewarded for your ideas and scripts! A month earlier, on the 20th of May, Tradingview introduced its new Rewards Program . Sharing is powerful, right!? The TradingView community thrives on fantastic members who share their knowledge, experience, successes and sometimes even their failures. Interaction, open discussion and self-expression are the keys to understanding. In the spirit of sharing, the TradingView team, believing it is fair that outstanding contributions are rewarded, has decided to thank their dedicated contributors. The TradingView Wizards program was recently launched to bring out the real wizards. Inspired by this, TradingView has also launched a new pilot program that rewards authors whose ideas and scripts appear in the Editors' Choice section. In the event that your idea or scenario becomes an Editors' Choice, your work will not only be featured to the entire TradingView community, but you will also receive a cool $100! If several of your publications are selected during the month, you will be charged for each. Learn more about the program and its terms and conditions in this Help Center article . This pilot program is just the first step towards content monetization. TradingView promises to keep adding new ways to motivate great creators to enrich the community. At the first stage, authors are rewarded for those ideas and scenarios that have become "Editor's Choice" in the international part of the TradingView community (only in English). TradingView promises to tweak the features of the program and aspects of the program are subject to change as improvements are made to benefit our community! I must confess on my own behalf that the TradingView Editors Team has A REALLY VERY GOOD TASTE. For all the time I spent on the TradingView website (that is almost eight years), I have become the author of more than 300 publications, and the best of them have rightfully become to an "Editors' Choice" column. And so, just literally two months earlier, in April 2023, two of my publications became "Editor's Choice" again, in the international part of the TradingView community (in English). The first one is 😀 SVB Crisis Is Over?! What S&P500 and VIX Are Talking About was dedicated to the US S&P500 index SP:SPX , while the market began to show the first signs that the Silicon Valley banking crisis was over. More details can be found on the publication page . In the second publication - Occidental Petroleum Corp.: Bullish Bias. Continuation I've considered with technical aspects and opportunities of Value Investment Assets. Incl. NYSE:OXY - one of the legendary 92-year-old American investor Warren Buffett favorites, Occidental Petroleum corp. More details can be found on the publication page . While expressing many words of gratitude to the TradingView team, I must admit that the EP selection of mentioned above publications in April to the "Editor's Choice" was a pleasant surprise for me. As well as the launch of the #TradingViewPAY motivational Program a month later, the effect of which is extended to all the ideas and scenarios that have become "Editor's Choice" starting from the second quarter of 2023! Proves and Screenshots!? - Yes, please! Everything is 100 DOLLARS working! ✨💖 Dare you too! Post your best ideas and scripts! And may the reward find the best of you! -- Watch first, then share! TradingView FEAT Pandorra 💖

Education

WHAT IS ChoCH AND HOW TO USE IT ChoCH in trading is a change of sentiment (change of character) in trading order blocks. ✴️ Definition The ChoCh (change of character) is a change of sentiment in the market. That is, the change in the nature of the movement of the market from bullish to bearish or vice versa. This term is used in technical analysis strategies of order block trading. It is used by traders in the forex market, as well as in the cryptocurrency market. Choch is also known as a reversal when the price fails to form a new higher high or lower low. It then breaks the pattern and starts moving in a different direction. To form a Choch using the smart money concept on a chart in a downtrend, you must as shown above: 1.Gradually decreasing highs and lows of the bearish trend. 2. The last maximum price update. It is at this point that a change in sentiment is formed. We will go over the basics of Choch trading and the main advantages of trading. ✴️ Combination of timeframes on Forex The best entry points are formed when combining two timeframes: Keep in mind that a change in structure does not always involve a global change in market trend. 1. On the higher timeframe the order block is formed as support or resistance level, in the zone of which the reversal is looked for. This is H1, H4 or D1 time frame. 2. The lower timeframe is used to identify the change of character and entry on the trade signal after the Order Block test. On the mt4 chart this looks like the example, where the order block is highlighted by a rectangular range below. ✴️ How to trade Let's analyze EURUSD recent trading opportunity for the change of the market movement. The first one shows that a bos (break of structure) was formed after the choch. The buy position took place when the chart returned to the order block area. The next reversal pattern is relevant in determining the liquidity zone, where there are the stop losses of the crowd of traders. The difference between the previous pattern is that the price tends to break the liquidity zone after the bos. Buying is performed on the order block at the very minimum of the chart. ✴️ Conclusion Choch in trading allows the trader to determine the best reversal point with a high-risk profit ratio. Often the values reach 1k5 or more. The change of mood is easy to identify even for beginners in Forex trading on smart money. At the same time, its success rate reaches 60 percent.

Education

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