Get started

Howtotrade

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
Education post 9/100 – How to trade double top pattern?The double top pattern is one of the most common technical patterns used by Forex traders. It’s certainly one of my go-to methods of identifying a potential top. Just as the name implies, this price action pattern involves the formation of two highs at a critical resistance level. The idea that the market was rejected from this level not once, but twice, is an indication that the level is likely to hold. However, as simple as that may sound, there are a few critical things that must be present for this topping pattern to be useful (and profitable). By the time you finish with this lesson, you will know exactly how to identify a double top as well as how to enter and exit the pattern to maximize profits.
Education
by GroundStoneHoldings
How To Trade Monero We broke out of the major falling wedge. This wedge hold true since the beginning of the correction. I think we will bounce of the $140 lvl and revisit the breakout lvl of the falling wedge. At around $140 there is a huge resistance and it is typically the case that when you break out of a wedge that the price will retest the breakout price. As you can see I count this new impulsive move as a one wave of a bigger bullish move. We completed an ABBCDE correction inside the falling wedge, which indicates that the bullish momentum is indeed a reversal. How to Trade: If you want to trade the bigger swings I would advise you to wait for the pullback. Then when we are back at the Breakout lvl (blue box) see if we bounce or if we break through and fall even further. If you do fall even more we can at max fall to the purple line or the EW count would not be valid. In both cases wait until you see a reversal and wait for conformation. 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 from your interactions.
BITFINEX:XMRUSDLong
by aamonkey
3
How To Trade ETHWe are currently at a very critical point where ETH decides if we already finished the correction or not. If we are finished, we must bounce of the 0.786 Fib which is a HUGE support (and psychological number with $500) So, if we do bounce of (see O1 in purple), then we have finished the first wave of a new cycle with higher highs and higher lows coming in our way. When that will happen, we are officially in the second bigger wave of ETH, with everything that happened so far as the first wave. And with that we will see new highs (meaning the price will surge over $1400 in the long run). Well this is the positive point of view. But I have some problems with that: 1. We also have a big resistance (orange line) we also have to break through + a thick clout which supports the idea that it will be hard to break through this point. Therefore, I definitely think that we will bounce off of this resistance at least once before we go higher. 2. There is also the possibility that we break through this support and go even deeper. This supports the view at the 1week candle sticks (I will integrate that idea below). It basically shows that the correction can also not be over jet and that we are still in a big ABC correction. Either way we can just sit back and prepare for the worst and hope for the best . And also either way we are soon finished with the correction and we are going for new highs. It is just a matter of how low you got into the coin. How to trade it: And what I would advice you to do is not to go all in at once but averaging in. I will buy some right now if it goes up awesome if not I am happy I can get more coins for an even cheaper price before we take off. I use this strategy basically on all of my trades. I average in on the way down and will take profits on the way up. (with rebuys at the corrections off the first and second wave)
BITFINEX:ETHUSDLong
by aamonkey
6
HOW TO TRADE CONSOLIDATION The short answer: DONT. I've decided to use EUR/GBP today as a prime example of when to sit on the sidelines and not risk a cent of your capital. As you can see, the past 7 weeks have been an absolute mess with price looking very indecisive and all over the place. This means that traders are not able to come to a consensus of whether they are bullish or bearish on this particular pair. Now remember when you are trading you want to be able to identify and execute your trades where there is likely to be a large amount of buy/sell orders (particularly 'smart money' orders however this is a lesson in itself) and if price is just moving sideways, how exactly will you be able to do that? The answer is most likely you most likely will not be able to. The trick with trading consolidation is being able to stay patient and let the masses fight over a measly amount of pips while waiting for the market to show you the direction it is heading next. You will be able to identify this when price clearly breaks the current consolidation either to the upside or downside. When this happens after a long period of consolidation, you might notice it does this with tremendous strength (I like to picture this as the market 'coiling' up before releasing its stored energy to either the bull or bear side). Now the question you should be asking yourself after that point is ''How can I now take advantage of this potentially newly formed trend?''. Instead of just getting long or short as hell after seeing a breakout, I like a little more confirmation before putting any of my capital at risk. This usually comes in the form of a pullback to the first potential lower high/higher low after the breakout has occurred and this is usually where I look to place an entry if my strategy signals to do so. Hope you were able to take some value from this mini lesson, let me know in the comments or PM me if you want more short lessons similar to this! Have a great trading week.
Education
by joshdonoghoe
1
How To: Profit with CCI Colored Candles / Bars w/ Histogram You have SPY Trending down today CCI and Candles are red pink and purple buy the 1st or 2nd pullback where CCI goes near ZERO line on CCI I use 5min charts minium Indicator link: Color of your candles matches your CCI with Histogram indicator and trend line . CCI EMA or SMA based option, traditional or modern formula calculation options ect. Can change Length, source, Trigger Lines, colors of candles and histogram and more The CCI compares the current price to an average price over a period of time. The indicator fluctuates above or below zero, moving into positive or negative territory. While most values, approximately 75%, will fall between -100 and +100, about 25% of the values will fall outside this range, indicating a lot of weakness or strength in the price movement. A basic CCI strategy is used to track the CCI for movement above +100, which generates buy signals, and movements below -100, which generates sell or short trade signals. Investors may only wish to take the buy signals, exit when the sell signals occur, and then re-invest when the buy signal occurs again. The CCI compares the current price to an average price over a period of time. The indicator fluctuates above or below zero, moving into positive or negative territory. While most values, approximately 75%, will fall between -100 and +100, about 25% of the values will fall outside this range, indicating a lot of weakness or strength in the price movement. When the CCI is above +100, this means the price is well above the average price as measured by the indicator. When the indicator is below -100, the price is well below the average price. 1 CCI strategy is used to track the CCI for movement above +100, which generates buy signals, and movements below -100, which generates sell or short trade signals. Investors may only wish to take the buy signals, exit when the sell signals occur, and then re-invest when the buy signal occurs again. Long-term chart is used to establish the dominant trend, short-term chart establishing pullbacks and entry points into that trend. A multiple timeframe strategy is commonly used by more active traders and can even be used for day trading, as the "long term" and "short term" is relative to how long a trader wants their positions to last. When the CCI moves above +100 on your longer-term chart, this indicates an upward trend, and you only watch for buy signals on the shorter-term chart. The trend is considered up until the longer-term CCI dips below -100. When using a daily chart as the shorter timeframe, traders often buy when the CCI dips below -100 and then rallies back above -100. It would then be prudent to exit the trade once the CCI moves above +100 and then drops back below +100. Alternatively, if the trend on the longer-term CCI turns down, that indicates a sell signal to exit all long positions. When the CCI is below -100 on the longer-term chart, only take short sale signals on the shorter-term chart. The downtrend is in effect until the longer-term CCI rallies above +100. The chart indicates that you should take a short trade when the CCI rallies above +100 and then drops back below +100 on the shorter-term chart. Traders would then exit the short trade once the CCI moves below -100 and then rallies back above -100. Alternatively, if the trend on the longer-term CCI turns up, exit all short positions. Make the strategy more stringent by only taking long positions on the shorter time frame when the longer-term CCI is above +100. This will reduce the number of signals, but will ensure the overall trend is very strong. Entry and exit rules on the shorter timeframe can also be adjusted. if the longer-term trend is up, you may allow the CCI on the shorter-term chart to dip below -100 and then rally back above zero (instead of -100) before buying. This will likely result in a paying a higher price, but offers more assurance that th
AMEX:SPYEducation
by stokedstocks
1
Trading plan: BCHUSD (Bitcoin Cash)BCHUSD is looking downward. It is too early to tallk about price reversal, but the movement down did not end. The priority of the day: sales BCHUSD with the target of $1547. As expected, Bitcoin Cash falls slowly. Projected scenarios: 1. Sell BCHUSD near $1650. Sales target of BCH is the level $1547. 2. BCHUSD may remain in flat for another day. An alternative scenario: Buying BCHUSD from the level of $1700 to $1800. It would not be desirable.
BITSTAMP:BCHUSDShort
by VARZAR_INVESTMENT
1
Bitcoin vs US Dollar - Bitcoin takes a dip, but is it all over?Quick update on the Bitcoin markets, after my previous mentioned support level at 8800 failed, the price action responded by falling back into the down trend channel. We can see the the price has now been rejected by the 0.5 fib, this is bearish and as I mentioned previously, this will mean further correction is necessary in the market before prices move higher. Even though prices are falling, the volume has been building up the last 10 days and this a very healthy sign for the market. My support zone is in between $6600 and $7500, and not a bad place for longer term buy orders to be placed. Perhaps a few below 6k for luck. This could all change quickly in my opinion, should prices consolidate above 8100 today, we might see prices push higher. Worst case scenario would be a fall through the $6600 support level, this will send prices to 6k and if that fails we will retest the bottom of the downtrend channel. Being a technical trader it helps to be mindful of the fundamentals, when I take into consideration there is some bearish news, it is greatly overpowered by all the bullish developments in the crypto space. The buyers are out there (some battered and burnt), open interested is building, lets be patient and wait for the price action to lead the way. Hang out with Crypto traders here.
BITFINEX:BTCUSD
by saintbitcoin
BTCUSD - Lets go Bitcoin! Lets Go! :)I would like to pay my respects to one of the greatest minds of our time, RIP Dr Stephen Hawking. Taking a look at the Bitcoin chart this morning we can see that we are heading into my critical support zone again, lets take a look. I drew a fib in from the last major bullish market move we experienced, which was the rally from 6k up to the 11k zone. We can clearly see support zone around the 50% retrace, which is very normal for this market, considering volume and volatility is down quite a bit since we first started dropping from 20k. The support zones mentioned in the previous report are still holding, with 8800 being the final pillar of strength. Should 8800 fail us today I would expect more bearish action and a retest of $8200, possibly $7200, if the 8k zone fail to summon the buyers. In my personal opinion the market is looking healthy, this is only if prices remain above $8800. If the above mentioned support levels fail we will be in for a further correction in the market and more panic selling. Worst case scenario in my opinion is we take a dip into the 6k zone, but I think buyers will quickly step and catch the knife. Longer term speaking we are also in the 50% retrace zone from 20k, this is considered by many as a good retracement and a healthy correction for this size market cap.
BITFINEX:BTCUSD
by saintbitcoin