Get started

Howtotrade

How to Be a Successful Forex Trader Segment 4Trade Identification How many times have you "Missed" a trade. Once traders have a trading plan, they spend their time looking for set-ups. I would urge to take the next step which is Trade identification. I am not talking about clicking on a chart and seeing if your set-up is there. You want to be able to look and a chart and project what it can do and determine if market action will create a tradable set-up. This morning, as you can see on the chart above and my posted trade idea, when I was analyzing GBPNZD, I did not have a valid trade set-up. Specifically, although Price was below the Daily and 15 minute Kijun-Sen, as well as the cloud, it was above the 60 minute Kijun-Sen...which makes it a no-trade for me. However, I understand and recognized that if price closed below the 60 Kijun-Sen, I would have a valid Type 2 Set-up. I was able to post as such and better yet able to Bank some profit :) Most traders study price action but they do not forward think what the market can do. Thinking about what the market can do (up, down, sideways), and then applying that to your trading methodology to determine trading opportunities will, imho, greatly enhance your trading skills and you will enjoy watching the market play out the way you predicted (and so will your Bank account) I Hope this helps, stay Green my Friends Allen PS If you like this education material, please push like and follow me, so i will post more :)
by AGold54
Trading To Win "Those who lose - trade not to lose. Those who are successful - trade to Win." Losing Vs Winning Most traders are more focused on not losing than they are on winning. Do you understand what this means? This means you are acting not in your best interest, but against your self. By focusing on how much you can or might lose, or on not losing, you increase the likelihood of making mistakes which ultimately lead to a losing traders equation, and a negative equity curve. Profitable traders do not care about losing. They understand it is part of winning. They focus on winning. What is the best move in this moment? Should I get out or continue to hold based on what the market is telling me? Winning traders accept the risk totally and completely; before getting into the trade. In other words, they have already lost what is on the line. Therefore they act in their own best interest, not based on their thoughts about what they could lose, but based on what the market is telling them to do in this moment. Other than this psychological difference, here are a few other key components on How to Trade To Win. Defined Edge - Every trader who is making money in the market has some form of edge which he employs. Even if his edge is purely intuitive. This is extreme and rare however, and most traders have clearly defined their edge and will only trade that edge. This removes randomness. Many beginners think they are going to study the market and be able to trade the market no matter what it is doing (trade intuitively). This is simply not the case for most. The purpose of studying the market is to identify opportunities in form of an edge. An edge is a setup or context which repeats itself over time. It might occur once a day, once a week, or once a month. It does not matter. All that matters is that you only trade your clearly defined edge, and leave the randomness behind. For more information, you can read about the edge I use in every market I trade. We also describe how you can develop your own edge, and trade it in any market. Stop Doing, Relax Efforts - If you are losing in the market, chances are you are doing too much. Many beginners, and even experienced traders think they must be trading in order to be a successful trader. This leads to random trading, over trading, and mistakes which compound themselves. You end up digging a hole, and instead of looking for a way out, you look for a different shovel. The harder you try to make a profit, the more you do, the more actions you make, and the more you lose. The market rewards those who are observant, disciplined, and most importantly patient. The market takes from those who try too hard, and do too much. If you dont believe me, try as hard as you can to make money, and see how you do! By relaxing your efforts, you relax your mind. In turn relax your actions and decision making. You do not have to trade every day to be a profitable trader. It sounds paradoxical doesn't it? How can I make money trading if I dont trade? By only trading when it is appropriate like when your edge is present, you better your odds of success. Profitable trading does not come from trading constantly. Profitable trading comes from the act of non-doing, and out of a state of emptiness. Profitable trading is effortless, it comes out of waiting for just the right moment before taking action. And then waiting some more while the market proves you right or wrong. Profitable trading is not forced; it just happens. Active VS Passive Trading - This is very similar to the previous topic. Active trading is a trader who is constantly in the market, trading whatever he see's or feels right. This trader is often wrong, and when he is right he makes the mistake of exiting too early due to fear. This leads to a negative traders equation as he continues to struggle to do the right thing. An Active Trader mentality is one which does not believe in "non-doing." He believes he must, and can, do something. He is afraid of missing out and is often swayed by thoughts and emotions. So he continues trading never looking back, and at the end of the month cannot figure out why his account is in the red. A Passive Trader is the opposite. He passes on more trades than he takes. He does not care about what he misses out on. He only cares about what he takes and the actions he makes in the market. He does not force trades, he just watches the market until he knows what to do. Or he waits and waits until his edge finally sets up. He is passive in his efforts, rather than active. He does not care if he doesn't trade today, this week, or even this month. Trading is not what is important to him; winning is. He knows that profits come from sitting, waiting. Because he is willing to wait, he is peaceful. And profits continue to come into his account, effortlessly. For more information on developing this type of mentality, see below. We also detail how to understand markets through price action, how to create, define, and employ an edge, and how to develop your traders mentality to succeed in markets. If you found this helpful please like! Feel free to comment or ask questions.
BITSTAMP:BTCUSDEducation
by tradersmentality
4
The Advantages of Technical Analysis (Price Action)Technical Analysis (AKA Price Action) Technical analysis is the understanding and observing of markets through the only thing that matters; price. Prices generate similar patterns over time, in every market. A single price chart contains more information than you would ever imagine at first glance. Everything you need to know about any company, or market is on the chart in front of you. The current price is what the true value of the market is, regardless of news, indicators, or anything else. The Advantages of Technical Analysis (Price Action) No News - Everything you need to know is on the chart in front of you. Completely disregard all news and outside information. All news is already built into the current price. The price action of the market is all you need to know. Once you understand how institutions operate, you can follow them. No indicators . All indicators are a derivative of price. For example a Fibonacci level. Every price on a chart is a Fibonacci level of some other price on the chart. Although they appear to work, these levels do not work because of Fibonacci. But instead due to the traders equation, which is the mathematical formula institutions use to enter and manage trades. Clearly define support and resistance. You can see on a chart where prices are likely to do something. These are "Key entry points" or "Buy and Sell Zones." Clearly define risk and edge. With technical trading, you have the ability to define your risk before getting into a trade. If the market does not do what you expected, and instead goes beyond your stop, you exit. Without needing to wonder about why this happened, or constantly observing the news. Identify the strongest markets without relying on outside information like news, indicators, someone else, or a "tip." Become independent and trade for your self. If you found this helpul please like! Feel free to comment or ask questions.
COINBASE:BTCUSDEducation
by tradersmentality
Day Trading - Only Strong Trend Days (Can also be used on HTF)Day Trading - Only Strong Trend Days (Can also be used on HTF) There are generally only 2-5 strong trend days a month. The majority of trading days are some form of trading range days, either within a range or a weak channel which reverses and forms a trading range. On strong trend days the market offers what most traders want - a high probability of a large reward, with a tolerable risk. Usually the risk feels greater (and often is) on a strong trend day because there is a sense of urgency, and the bars are often bigger than normal. On trading range days the bars tend to be smaller, offering what appears to be a lower reward, but there are many more failures and reversals. This makes it very difficult to identify a good setup, and even when there is one the market does not make it very far before there is an opposite reversal. This lures unsuspecting traders in, who continue fighting the market taking every trade or only the losers. This type of market is like a boa constrictor. The more you fight, the more you struggle, the tighter its grip and the harder it is to overcome the draw downs and emotional fatigue. Because these types of days are hard to trade and do not offer what I want (a good chance at a large reward), I choose to sit these days out. Instead, I wait for a strong trend day, and then continue to wait some more for a pullback and my edge. Does this mean I miss out on some good moves? Sure. But I do not care. I trade to win, not to trade for fun. It does not matter what I miss, it only matters what I take and the actions I make in the market. So how does a trader know if the day is a trading range day or likely to become a strong trend day and should be traded? In order to help guide you, here are some common characteristics of a trend day. "......" After the above has been identified - it is still better to wait for a pullback and an edge like a "......." This increases the likelihood of a good trade with a strong traders equation. It also helps decrease stress of prices going against the position as it often does when you just enter at the market or without an edge. Of course, waiting is not easy. Just like Tom Petty said "Waiting is the hardest part!" Does this mean you are less likely to lose? Usually, but not always. Even with trend trades fail, although less often. It is absolutely possible to lose money selling in a bear trend or vice versa. The key is to continue onward, and enter the next with trend trade if there is one. If not, or it also fails, prices are more than likely in a trading range and you just haven't yet realized it. If this is the case, it is often better to stop trading and wait for a strong trend day, rather than continuing to fight the market when it is not offering what you expected. **These ideas and strategies can also be applied to higher time frames and long term investing. "..." = withheld material from original post (members only material). If you found this helpful please like! Feel free to comment or ask questions
SP:SPXEducation
by tradersmentality
Day Trading Trend or Trading Range? Can be applied to investingIn the previous article we discussed only trading on strong trend days or strong markets. We also identified what increases the likelihood of a day (or market) becoming a strong trend. As said before, there are only a handful of strong days a month (or only a few strong markets at any given time). Because of this, it is just as important to identify and understand when a market is likely not a trend and more likely a trading range. Within the first hour or two of the open (when day trading), it is often obvious if the day will likely become a trend day or a trading range. Once the market has been identified as likely a trading range, it is unlikely to become a trend day as the market tends to continue what it has been doing. In this case it is more likely to continue to have heavy two sided trading and less likely to convert into a strong and healthy trend. But wait - most channels are some form of trading range right? Yes. This is a form of slanted trading range, or a trending trading range. This is where the market is technically in a trend but it is very weak and likely to reverse at any time. In fact, by the close it will likely reverse and the trend is unlikely to remain intact. Characteristics of a Trading Range Day "............" So if most days are not trend days and are instead some sort of trading range, cant a day trader use this information to his advantage? Of course, if it aligns with your trading style or method. But you must understand that you are not likely to win on many trades, or win a large reward. Instead most trades even strong ones, only go for 1X the risk. On top of that there are many trades to take, most of which fail. This makes it difficult to remain focused and continue trading without emotions and without missing the trades you need to win to recover losses. What about only taking strong trades ".......?" That is a reasonable thing to do, but the probability is still often lower and the reward is as well. And on these days most stop order entries fail, resulting in repeated failures. This is a "............." If not, you will likely get stopped out just before prices go your direction! Or the market will only go in your favor temporarily before stopping you out. This makes trading difficult for beginners and even for those with experience. However most do not realize they should simply remove themselves from the market during these times. Instead they continue to trade as they think they should, and continue to grow losses, making it harder to recover even on a good trading day. "I do not like to trade when the market is likely to reverse at any time. I only like to trade when the market is not likely to reverse at all." - Josh Ridenour **These ideas and strategies can also be applied to higher time frames and even long term investing. "..." = withheld material from original post (members only material). If you found this helpful please like! Feel free to comment or ask questions
Education
by tradersmentality
Day Trading Trend or Trading Range? Can be applied to investingIn the previous article we discussed only trading on strong trend days or strong markets. We also identified what increases the likelihood of a day (or market) becoming a strong trend. As said before, there are only a handful of strong days a month (or only a few strong markets at any given time). Because of this, it is just as important to identify and understand when a market is likely not a trend and more likely a trading range. Within the first hour or two of the open (when day trading), it is often obvious if the day will likely become a trend day or a trading range. Once the market has been identified as likely a trading range, it is unlikely to become a trend day as the market tends to continue what it has been doing. In this case it is more likely to continue to have heavy two sided trading and less likely to convert into a strong and healthy trend. But wait - most channels are some form of trading range right? Yes. This is a form of slanted trading range, or a trending trading range. This is where the market is technically in a trend but it is very weak and likely to reverse at any time. In fact, by the close it will likely reverse and the trend is unlikely to remain intact. Characteristics of a Trading Range Day "............" So if most days are not trend days and are instead some sort of trading range, cant a day trader use this information to his advantage? Of course, if it aligns with your trading style or method. But you must understand that you are not likely to win on many trades, or win a large reward. Instead most trades even strong ones, only go for 1X the risk. On top of that there are many trades to take, most of which fail. This makes it difficult to remain focused and continue trading without emotions and without missing the trades you need to win to recover losses. What about only taking strong trades like ".......?" That is a reasonable thing to do, but the probability is still often lower and the reward is as well. And on these days most stop order entries fail, resulting in repeated failures. This is a "............." If not, you will likely get stopped out just before prices go your direction! Or the market will only go in your favor temporarily before stopping you out. This makes trading difficult for beginners and even for those with experience. However most do not realize they should simply remove themselves from the market during these times. Instead they continue to trade as they think they should, and continue to grow losses, making it harder to recover even on a good trading day. "I do not like to trade when the market is likely to reverse at any time. I only like to trade when the market is not likely to reverse at all." - Josh Ridenour **These ideas and strategies can also be applied to higher time frames and even long term investing. "..." = withheld material from original post (members only material). If you found this helpful please like! Feel free to comment or ask questions
COINBASE:BTCUSDEducation
by tradersmentality
ABBV Sell Vacuum - Understanding Climaxes and VacuumsABBV is selling off this week in a third leg down from the buy climax and all time high. Although it looks strong at first glance, this is more likely a sell vacuum (sell climax) than the start of a strong bear breakout. A vacuum is created when strong bulls step aside and wait for prices to reach a location they want to buy, and the strong bears continue to hold for the same price level (and some continue to sell). This creates a temporary one sided market. This sell off is likely a test the previous converging triangle, and middle of the trading range preceding the bull breakout. The bulls will look to form some sort of double bottom which could be a failed breakout below the 60 or 50 lows, or an actual double bottom. If there is a reversal up next week, it would form a parabolic wedge bull flag, bears will look to take profits and bulls will look to re-establish longs. If instead there is continued selling and a strong breakout below the 50 low, the bears will likely get a test of the opening tight trading range around 40. If you found this helpful please like! Feel free to comment or ask questions.
NYSE:ABBV
by tradersmentality
How to be a Successful Forex Trader Segment 3DCCS Disease: CCS Disease is a disease many new traders are afflicted with and it can be fatal!! CCS disease is short for "constantly changing strategies". Certainly, I firmly believe that a trader must find a trading strategy that fits both their personality and the time they have to trade. However, once you find a strategy that you like, imho, you must back test the heck out of it!!. Figure out how it responds to different market conditions, is it a strategy that can only used when the market is in a range or trending, can be used before news, after news. How big of a stop is needed, How far will it run... trade parameters are essential but more importantly, Build confidence in your strategy. without the confidence that your strategy will work, you leave yourself susceptible to the psychological terror the market can cause. I have tried alot, probably well over a 100 strategies in my trading career. the truth is that if I would have properly back tested then and stuck with them I would have been successful sooner. if you test a strategy and it has an 75% win rate (which is pretty damn good), that still means you will lose 25% of the time. Unfortunately, it does not mean that out of 100 trades your first 10 won't be losses and which point you give up and move on. Been there, done that. So I would urge you to back test your strategy so you have at least 100 trades and then forward test the strategy for at least 100 trades before you change. I hope this Helps, stay green my Friends Allen ** The Above chart is an example of how I document my trades-- every trade. I also use a spreadsheet to keep track of the data.
Education
by AGold54
5
GOLD Video - Pure PRICE ACTION Top Down AnalysisOANDA:XAUUSD - Weekly (Bearish) : Doji at a weekly level indicating indecision and momentum loss with a wide swing divergence - Daily (Bearish) : Pinbar rejection with divergence - 4hr (Entry) : Double top with a trendline break EP: 1336.25 SL: 1360.36 TP1: 1311.47 TP2: 1290 www.pipkingsfx.com Like the content? Support it by.... SMASHING that LIKE button & following my profile :] ... Leave a comment with your questions & ideas! Thanks !
FX_IDC:XAUUSDShort
by UnknownUnicorn1591582
3
What is Price Action? All Indicators are a Derivative of PriceThere is no one clear definition of price action. It can be as simple as "Every tick on any given chart, of any given market." However this definition is too broad and does not adequately describe the term. A better definition is "The collective result of buyers and sellers entering the market for any logical reason, which together create reoccurring patterns that can be analyzed and capitalized." Price action is based on humans behaving rationally, logically, and similarly in similar situations over time, and is the cumulative effect of institutional trading. It has been, and always will remain fundamentally unchanged. If you compare a chart from 100 years ago (such as the crash of 1929) with one of today with the time scales removed, you will not be able to tell the difference between the two. It does not matter if you compare a yearly, monthly, daily, or even 1 minute chart with any other chart of a different time frame. Price action appears the same and works the same in every market, and on every time frame. The institutions cannot hide what they are doing; price action is their foot print. Price action can be used to invest long term, or day trade any market. It allows a trader or investor to identify opportunities without the use of any indicators. In fact, all indicators are a derivative of price action in one form or another. Interestingly, the patterns which repeat as well as trend tendencies can be observed on different charts, even outside of markets. Can you tell a difference between these two charts? The first is a daily chart of CSX. The second is a 5 minute chart of the MES (micro s&p). All markets and charts look the same, and behave similarly. Once you understand the information within, you can understand what the institutions are doing at any given time.
COINBASE:BTCUSD
by tradersmentality
1
EURUSD Video - Price Action Timeframe CONFLUENCE FX:EURUSD - Weekly (Neutral) : At a weekly level where price historically reversed. I can see the price is in a downtrend. - Daily (Bearish) : Inside bar with a bearish engulfing daily candle of yesterday indicating sensitivity at this level - 4hr (Bearish) : Price has broken the trendline and Moving Averages has crossed over - 1hr (Entry) : Structure has switched to Lower High & Lower Low EP: 1.12770 SL: 1.13522 TP1: 1.12019 TP2: 1.11338 www.pipkingsfx.com Like the content? Support it by.... SMASHING that LIKE button & following my profile :] ... Leave a comment with your questions & ideas! Thanks !
Short
by UnknownUnicorn1591582
2
How to be a Successful Forex Trader Segment 3CBACK TESTING CONT.: High probability set-ups To be a consistently good trader, you must trade in a consistent manner. As those of you who follow me and review my trade idea’s know, they are the same, almost boring. You see Type 1 (Shown above) or Type 2 trades all the time and they look all the same. EXACTLY!!! That is what you need. If you have taken (either live or back tested), and documented, the same set-up numerous times, you can develop a statistical basis for the probability of that trade type’s success. IMHO, this is a critical element to achieving long term Success. I believe, if you know statistically, the probability of a trades success then you will be more confident in it and allow it to play out. Moreover, if you have a method that is not quite up to snuff, then get rid of it. I would urge you to be more selective in your trade process and only look for trades that you know, through your back-testing, have a high probability of success. This is Quality over quantity. Stay green my Friends Allen ** The Above chart is an example of how I document my trades-- every trade. I also use a spreadsheet to keep track of the data.
Education
by AGold54
32
Bitcoin Short-term: Support and Resistance analysisHello, Artem is back! Here we are on XBT chart, it showing us two types of wedges: Ascending Wedge on the left with dark blue colors, and Descending Wedge on the right with red colors. Now we in a middle of descending wedge, rebounding from dynamic support *7600$ and going to resistance area of 0.618 Fib at around 8250$. Stochastic RSI already topped and looks like I will make lower high, while price will hit higher to 8250$ to complete local bearish divergence. So this will be our signal for rebound and reentry for longs I expect around 6800$ support level. If something will opposite to this idea we should be ready, so our bullish breakout should be supported by breaking out from 9000$ level. Bearish breakout should be supported by 6800$ breakdown. Good luck and feel free to share your ideas to make any contribution to this analysis.
BITMEX:XBT
by ArShevelev
6
How to be a Successful Forex Trader Segment 3BBACK TESTING CONT.: Picking up from my last Educational post, Segment A... Pip Potential (PP) is a key component for me as it allows me to statistically determine how far a trade will run. In all my trades, I want, at the very least, a 3-1 risk to reward ratio (RRR). Basically I want to make $3 for every $1 I risk. Please understand and, this is very important to long term success, if you use a 3-1 RRR, or better, you can have a win rate of approximately 35% and still be profitable. YES, only 35% and still be Profitable!!! That is how you stack the odds in your favor :) Determining how far a trade is likely to run can be done a number of ways, you can use the daily ATR, pivot points, support/resistance or, as I do statistically. Any way you do it, you NEED to do it. Unfortunately, I know several traders who get into trades without thinking about where they are going to get out and that is problematic in the long term. (I always reference the long term because that is where you need to focus on, not 1 trade but rather 100 or 1000 or 10K trades...that is how your trading success will be determined). All off the above can be revealed through back testing :) If you think about your maximum draw down you can determine your stoploss, similarly, if you determine how far a trade will, probably, run you can determine your profit target. Combine the 2 and you have your Risk to reward ratio (RRR) and from that you can determine, if you should even take the trade. Personally, I never, ever, buy into resistance or sell into support. it may turn out to be a great trade but for me the Risk outweighs the reward. I hope this helps and please comment and ask questions or even make suggestions as to a topic you would like me to address. In my next post, I will cover how to determine High probability set-ups. Allen
by AGold54
8
How to be a Succesful Forex Trader Segemnt 3ABACK TESTING: Some traders find it helpful other do not. Back-testing is, imho, the most critical part of trading Back-testing the proper way, although arduous, provides incredibly valuable data. It is the Ditch digging of trading but well worth it. I have come to embrace back testing and reviewing my trades religiously and in this day and age of automation, I have found it best, for me at least, to go back to 2am est (when I start trading and scroll forward bar by bar looking for my set-ups, my entries and my exits. In fact, I spend more time reviewing and planing my trades than I actually spend trading. While this method is not for everybody and it is time consuming, I firmly believe it is well worth it for the following reasons: First and foremost, it builds confidence in your trading methodology. Seeing how your trades set-up, execute and finish while observing what the market does will allow you to stay in a trade when it is either taking heat or going your way because you will have "seen" it before. Second, it will allow you to build a statistical base for your trades. For me the 2 most important pieces of data that I look for are 1) DD (drawdown) and 2) PP (Pip Potential). This has allowed me to determine how much of a stop I usually need (point of no return for a trade) and how far the trade will run. DD, the Draw down, I find this information most useful as my position size is based on my stoploss. For example, I risk 2% of my capital per trade, so if my stoploss is 10 pips I can use a position size 10 times larger than if my stop was 100 pips. Obviously, the bigger position size the more bang for my Pips I am getting. I hope this helps and please feel free to comment and ask questions, I will continue this topic in my next post. Allen
by AGold54
2
How To be a Successful Forex trader Segement 2Have a Trade Plan Although most traders figure out pretty early on that they need a trade plan. They don't always know how to formulate it or what should go into it. Although a Trade plan can be go very much in depth, I will discuss what, imho, are the most critical components: First and foremost, it must fit YOU!! Any trade plan must fit how YOU want to trade as well as the time you have available to trade. when I first started trading, I wanted to be a scalper. However I had a day job which prevented me from trading the London and US sessions, so I had to trade the Asian Session, which is, for me anyway, not very conducive to scalping. So I developed a methodology that would trigger during the Asian session and usually hit it's profit target (or stop loss) during the London session. It was for the most part a set and forget strategy that I was comfortable with. I would urge any trader to find a methodology that they are comfortable and confident with and go from there. Second, A trade plan must give you exit targets, both good (Profit target) and bad (stop loss). I put this ahead of Entries because, I believe it is more important to understand both the risk and reward of a trade BEFORE you are in it. Third, Entry conditions, what ever your strategy is, you want to have a consistent way to trigger your trade. Fourth, the trade plan has to be repeatable. When you get to point where your trading is boring, that's is when you will the most productive. For example, in the chart above I have my "Type 1" trade, which I absolutely love and that is what I look for. If you look at my past posts, you will see that there are a lot of them and they are, after awhile, boring except that they generate MONEY!!! Fifth: Your trade plan should include a daily review. what worked?, what didn't? how can you improve? the illustration above is how I document my trades on a daily basis. I hope this post is helpful. In the next segment I will address back testing Allen
Education
by AGold54
9
How to be a Successful Forex trader Segment 1FIRST HAVE A PLAN . Better yet, have 2 Plans! Most traders have a trade plan, that will tell them when to get in and when to get out (or at least it should and I will cover that in the next segment) What a lot of Trader's don't have and really need, is an account management plan. An Account Management Plan is necessary to keep you from causing too much damage on bad days, to having a positive outcome on so-so days and a Great out come on the good days. In short, it will protect your account and allow it to flourish :) 1. How to do you handle the bad days? Unfortunately, we all have them but limiting their impact is crucial to your long term trading success. Personally, I risk 2% of my capital per trade and usually only take 1 sometimes 2 trades per day. so the most I will ever lose in a day is 4%. which is okay because the majority of my trades have a 3-1 RRR or better, so I can make that up in 1 trade. Might i suggest, limiting your daily losses to a percentage that you can make up in a single day/session. You don't want to spend days trying to recoup losses from a single day. 2. How do you turn the so-so days into a positive: On day's where the market does not do what you expect, you need to recognize that and hopefully bank some profit or at the very least, cause no damage to your account. Sitting on the sidelines patiently waiting for a good trade is a lot better than being in a bad trade. Today was a So-So day for me. As illustrated in the above chart, I took a pullback trade with an entry at 1.8318. it took a lot of heat and almost got stopped out, but I stuck with my stop loss and the trade came back and dropped down to the bottom of my Asian box, where I banked 1/2 my position and moved my stop to flat. And the remaining 1/2 of my position did indeed get stopped out. So yes the market did not breakout and run down as expected but I still made a profit. :) 3. Make the good days.... Great!!! Before you enter into a trade, you should know where you are getting out, both good and bad. On the days where the market breaks your way. Stay with your anylasis and don't close the trade early. I talk to a lot of traders who do this and I get it!. The trade is Green, the Money is there...let's grab it!! You need t check yourself and stick with your original anylasis on how far the trade could run. That said you also must be prepared to protect your account. Personally, Once I am up 2% on the day. I will NOT let it become a losing day. Period. If the market reverses, I am out and I am done. Once I am up 4% I will lock in at least 2% of profit and so till the market reaches my Profit target and then I will close my full position. Although the market may run further, I stick with my original analysis of the proper Profit target. I hope this post is helpful and If you have questions, either put them in the comments below or message me Allen
Education
by AGold54
9
EURUSD shortLooking at potential sell towards key levels marked out by green horizontal lines. due to economic news this trade can have a major impulse which may allow this set up to come into fruition faster than expected. this is a trade i will be watching closely over the next trading week and be hoping to see the price break down, retest and then create an entry zone for me to execute. lets see how the week ahead is going to look... Lets make sure we secure the bag this week because Everyday is Money Day! Instagram : Vellly Business instagram : Learnitempire Youtube Channel : Learnitempire
by LitCap-Vell
Notes on PsychologyWhere are hedge fund managers pricing their fibonacci's? Quick notes: Fibonacci major resistance at 61.8% - good sign RSI back to par Stochastic crossover below lower threshold MACD may swing back to crossover but need more information. Resistance at 50d moving average Using 1h chart because things are happening VERY QUICKLY on this stock. Psychologically at 50 cents is a natural barrier because we know that prices are not completely logical and they fluctuate around psychology where large fund managers will set exit and entry limit prices to make sure they are 'limiting their risk/downside" SO WHERE DO THEY PUT THEIR MARKS? 50 cents on the chart had natural resistance and on the most recent climb we can see resistance jumps in increments Resistance at .50, .60, .70, .80 Then we heard good news about their trials and it DOUBLED from .8 to ~1.6 which a DOUBLE is that good for a fund manager!? YES!! SELL SELL SELL SELL PANIC PANIC FOMO LOOSE MONEY EVERYONE SELLS "GREAT! now we just made double our money, sold everything, now it has dropped back to our original price or just about ~.9 (let's increase it just a bit to not be predictable about our .8 resistance), and now let's double it again ! Now we have made quadruple our money in 10 days! WEEEE" A favorite buy back is at a 61.8% retracement, while the volatility here shows that it can easily drop all the way down to .74 at the 78.6% fibonacci... it is unlikely and we will see consolidation until the big guys have their shares and then we will see this cycle repeat itself right back up to 1.8 or even 2! AND THEN MAJOR RESISTANCE SELL SELL SELL PANIC RINSE & REPEAT.
ALong
by antifragilemachine
Slow And Steady, Makes The Money!If you are not able to see the big picture, especially in Forex, then it is very difficult to trade these days. Market is still being traded on the various themes but only difference is that now volatility is very low and trend is kind of non-existent. Now who is able to trade a 20 pip / day range with 20/30 pip stop-loss ( as a newbie Forex trade will put it rigidly to 'contain the loss' ;) ), God knows. Of course, someone out there have the skill to scalp even such tiny range ( ohh and deduct those few pips which broker gets ! ) but for majority of traders it is not possible and trading will eventually lead to a path of death by thousand losing trades. For last couple of years my winning formula is, to be slow when others are fast ! In era of HFT and micro-second trading algorithms, it pays good if you just wait a little and stick to your game plan, rather than trying to compete with machines for those few pips. For last couple of years, one of the cash cow like trade I have preferred is shoring EURGBP. You can read the logic behind the trade somewhere in older post but by just sticking with simple formula and trading it hundreds of times with same bias, I have managed to get healthy returns without even a SINGLE LOSING TRADE ! If you keep on reading BREXIT related BS and try to implement the trades based on some technical analysis or some weird indicator then there is no way you can win over the irrational volatility. Only way to trade such thing is by looking at the bigger picture and being patient. Not only EURGBP but most currency pairs are exhibiting the similar behavior where you need to craft a plan based on common sense and then trade the next 500 pip range. Ultra low rates are not going to make Forex trading easy as far as I can see and days of few hundred pips of trading range over the good news events with decent follow up are gone. So the future is to be slow and patient in all markets.
Education
by BombayBulls
How To Trade Basic Attention TokenAs you already know I like to take a look at the BIG PICTURE and this is what I did for this post. Even if you are not trading the big swings, I think it is very helpful to know where the price will head in the next couple of month. As you can see we just reached the top again of the sine wave. BAT is trading in this range since it exists, therefore we can say this channel is very strong. This again means the resistance in the red box is EXTREMELY strong and I would not invest into this coin right now. If you hold BAT I would advise you to not be greedy and take your profits now. How To Trade If you are holding BAT look for an opportunity to take your profit If you want to invest into BAT because of the news, that coinbase maybe wants to add this coin to their portfolio, think twice. Look at the picture above. I think it is pretty clear that from a risk to reward standpoint the risk of buying right now is over 9000. My personal plan when I see a pattern like this is obviously to buy at the bottom and sell at the top of the channel. DON'T GET CAUGHT IN THE HYPE! Can it go higher? Sure, but is it likely? Think about your risk to reward at the moment. If you buy now your risk is enormously high and your reward very low. But what if it skyrockets and I miss out? What you feel is FOMO. A very dangerous feeling. If BAT skyrockets wait for the big resistance (because it will come) and then buy back in. I will keep this idea updated and we will see where this journey takes us. If you find this article helpful show it some love. The next updates will come over the next couple of hours/days depending on how much I get motivated by your interactions.
Short
by aamonkey
3