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Learn Why Most of the Traders Fail The evidence suggests that only a very small proportion of day traders makes money year over year. There are certain patterns which may separate profitable traders from those who ultimately lose money. And indeed, there is one particular mistake that in our experience gets repeated time and time again. What is the single most important mistake that led to traders losing money? Here is a hint – it has to do with how we as humans relate to winning and losing. Our own human psychology makes it difficult to navigate financial markets, which are filled with uncertainty and risk, and as a result the most common mistakes traders make have to do with poor risk management strategies. Traders are often correct on the direction of a market, but where the problem lies is in how much profit is made when they are right versus how much they lose when wrong. Bottom line, traders tend to make less on winning trades than they lose on losing trades. Humans aren’t machines, and working against our natural biases requires effort. Once you have a trading plan that uses a proper reward/risk ratio, the next challenge is to stick to the plan. Remember, it is natural for humans to want to hold on to losses and take profits early, but it makes for bad trading. We must overcome this natural tendency and remove our emotions from trading. That will help you to be a consistently profitable trader. ✅LIKE AND COMMENT MY IDEAS✅ Do you like this post? Do you want more articles like that
Education
by ProSignalsFx
11
5 Easy Steps for Beginners to Start Trading in Forex 📝 Being a beginner, it is natural for you to feel overwhelmed when you first start forex trading. But that doesn’t mean that you should shy away from the market. By following the 5 steps listed below, you can start your trading journey in currencies in a smooth and efficient manner. 1. Get to know what drives the market 📈 When it comes to trading in currencies, the first ever step that you would need to make as a beginner is educate yourself about the market. Although the forex market works in a very similar fashion to the stock market, the factors behind the movement of the currencies tend to be different. 2. Choose the right broker 🤝 Selecting the right forex broker is as important as getting to know how to trade in currencies. Not all brokers offer the same level of services or are always reliable. Therefore, it is essential for you to spend some time looking into the various brokers offering forex trading services. An ideal forex broker should have an easy account opening process, a simple trading platform, offer exceptional customer support and have low transaction costs. While evaluating brokers, make sure to look into their downtime frequency. 3. Establish your financial goals and targets💰 The next step is to work on your financial goals and targets. Introspect and ask yourself what you hope to achieve by trading in currencies. Also, before you actually buy and sell currencies, it is a good idea to first determine your financial targets. For instance, you can set a target for each forex trade you make or a target for each day or month of trading. Establishing these goals can make you plan your trades much better by helping you come up with a trading plan, which will ultimately make you a better trader. 4. Practice with demo (paper) trading 📃 Through extensive virtual trading practice sessions, you can quickly get the hang of currency trading and try out new trading techniques and strategies. Since you’re not really trading with real money, you don’t have to worry about losing money on trades. Instead, you can spend some quality time learning the ropes and trying to analyze the trades that you make. This can give you some much-needed perspective on how to tackle forex trading in real-time. 5. Start slow and go easy on your trades🐢 Once you’ve gotten the hang of trading in currencies on demo account, you can slowly move onto the real thing. Now, there are a few things that you should keep in mind. The forex market’s volatility tends to be quite high and can lead to wild swings in the price. Therefore, it is a good idea to start slow by using just a fraction of your total investment amount. Now that you’re aware of the 5 steps that you need to take to start trading in forex, go ahead and begin your journey. Good luck to you! Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
6
Learn How to Improve Your Forex Trading 🔝 Whether you're new to Currency Trading or a seasoned trader, you can always improve your trading skills. Education is fundamental to successful trading. Here are some tips that will help hone your Currency trading skills. ⭐️Plan How You Will Trade You may have heard the adage, "if you fail to plan, you plan to fail." This is particularly true in Forex speculation. Successful traders start with a sound strategy and they stick to it at all times. ⭐️Most traders fail because they make the same mistakes over and over. A diary can help by keeping track of what works for you and what doesn't. Used consistently, a well-kept diary is your best friend. ⭐️Patience Once you know what to expect from your system, have the patience to wait for the price to reach the levels that your system indicates for either the point of entry or exit. If your system indicates an entry at a certain level but the market never reaches it, then move on to the next opportunity. There will always be another trade. ⭐️Discipline Discipline is the ability to be patient—to sit on your hands until your system triggers an action point. Sometimes, the price action won't reach your anticipated price point. At this time, you must have the discipline to believe in your system and not to second-guess it. Discipline is also the ability to pull the trigger when your system indicates to do so. This is especially true for stop losses. ⭐️Realistic Expectations Even though the market can sometimes make a much bigger move than you anticipate, being realistic means that you cannot expect to invest $250 in your trading account and make $1,000 each trade. Although there is no such thing as a "safe" trading time frame, a short-term mindset may involve smaller risks if the trader exercises discipline in picking trades. This is also known as the trade-off between risk and reward. Trading is nuanced and requires as much art as science to execute successfully, which means that there is only a profit-making trade or a loss-making trade. Warren Buffet said that there are two rules in trading: Rule 1: Never lose money. Rule 2: Remember Rule 1. Stick a note on your computer that will remind you to take small losses often and quickly rather than wait for the big losses. Please, like this post and subscribe to our tradingview page!👍
OANDA:BTCUSDEducation
by EliteTradingSignals
6
8 Trading Tips to Help You Increase Your Trading Profits Whether you are just getting started or you’ve been on your journey for a while now, you’ve probably discovered that day trading is not easy. You’re putting your hard-earned money on the line and facing new challenges daily. That said, every challenge you conquer takes you one step closer to your ultimate goal. Small behavioral changes can have profound impacts. Your goal is to minimize losses and maximize profits in order to increase your net profitability. Here are some tips: 1. Avoid Overtrading Traders are ambitious, sometimes too much so. Many traders feel the need to always be doing something. It’s important to remember that trading requires patience, and the quality of your trades is far more important than the quantity. 2. Avoid Under-trading Do you ever find a great trade setup that you don’t take action on, only to look back later and realize your idea was spot on? 3. Take Control of Your Losses As traders, we’re always focused on profits. After all, the main goal of trading is to turn money into more money. It’s easy to get carried away and forget about the very real potential for losses. In reality, limiting losses has the same net effect as increasing profits. 4. Simplify Your Approach There is an incredible amount of data available to traders in this digital millennium. This data is intended to improve our decision-making abilities, however it can also be overwhelming. 5. Trade Robotically As you begin to simplify your approach to trading, you can focus on making your strategy more robotic. The goal is to take all emotions out of trading so you can take a systematic approach to your trading. 6. Learn Your Strengths and Weaknesses Becoming a successful trader requires introspection, self-analysis, and evolution. Simply put, you need to analyze your own behavior and look for areas of improvement. 7. Double Down on What’s Working Learn to double down on areas of strength. Focus your efforts to trading activity that yields the highest rewards. 8. Don’t be Afraid to Go Back to Square One If you find yourself in a rut, don’t hesitate to go back to basics. In the trading world, a simple piece of advice can be a game changer. We’ve all heard quotes, lessons, or tips that have elevated our trading to new levels. What’s the best trading tip you’ve ever received? Please, support my work with like and comment! Love you, my dear followers!👩‍💻🌸
Education
by AnabelSignals
4
Top 4 Secrets of Using Technical Indicators Hey traders, Technical indicators are an essential part of technical analysis . With multiple different indicators on a chart, the trader aims to spot oversold/overbought conditions of the market and make a profit on that. Though, I don't consider myself to be an expert in indicators trading, here are the great tips that will help you dramatically improve your trading with them. #1️⃣ Do not overload your chart with indicators. There is a fallacy among so many traders: more indicators on the chart lead to an increase in trading performance. Following this statement, traders add dozens of technical indicators to their charts. The chart becomes not readable and messy. The trader gets lost and makes wrong trading decisions. Instead, add 1-2 indicators to your chart. That will be enough for you to make correct judgments. Do not overload your chart and try to make it clean: your task is to analyze the price action first and only then look for additional clues reading the indicators. #2️⃣ Learn what exactly the indicator shows The data derived from technical indicator must make sense to you. You must understand the logic behind its algorithm. You must know exactly what it shows to you. Confidence in your actions plays a key role in trading. During the periods of losing streaks and drawdowns, many traders drop their trading strategies. It happens because they lose their confidence. You will be able to overcome negative trading periods only by being confident in your actions. Only knowing exactly what you do, what do you rely on and why you can proceed even in dark times. #3️⃣ Use the indicators that compliment each other Many indicators are based on the same algorithms. Most of the time, the only difference between them is a minor change in its input variables. For that reason, such indicators leave very similar clues. In order to improve your trading, try to rely on indicators based on absolutely different algorithms. They must complement each other, not show you the same thing. #4️⃣ Price action first! Remember that your trading strategy must be based primarily on a price action. Trend analysis and structure analysis must go first. You must know the way to make predictions relying on a naked chart. The indicators must be applied as the confirmation signals only. They must support the trading strategy but not be its core. ❗️Remember that the indicators won't do all the work for you. Indicator is just a tool in your toolbox that must be applied properly and in strict combination with other tools. Would you add some other tips in this list? ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
9
Learn The Iceberg Illusion | The Fallacies & Reality We often get mesmerized by someone’s above the surface success and don’t factor in all the below the surface opportunity-costs they paid to achieve that success. This is the ‘iceberg illusion’. It’s been a fav analogy of mine for years. And yet, this just might be a better visual for sport than the ‘iceberg illusion’. You see… the hyper focus on outcomes is one of the biggest failings (or façades) that comes from social media. It creates a false impression of what leads to success. We see the success, but not the work that went into it… The unseen hours, necessary failures, setbacks, crises of confidence, the not-now’s (to the countless asks), the loneliness, the late nights and early mornings; and, all the wobbling that comes before the walking—much less running. There are no shortcuts. There are no overnight successes. The iceberg doesn’t move quickly. It’s not sped up. It just moves consistently; at often a barely discernible speed. ✅LIKE AND COMMENT MY IDEAS✅ Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
9
Common trading mistakes to avoid as a trader ❌ For new market traders, review these common trading mistakes so you can avoid emotional blunders with your investments and take advantage of psychological edges. The mechanics of trading are relatively simple. A click or two gets you into a trade, and a click or two gets you out. But the decision-making process behind those clicks is much more complex. And with complexity comes more opportunities to make mistakes that can affect your bottom line. Here are seven common mistakes that traders—both new and experienced—sometimes make. 1️⃣Mistake 1: Emotional trading/psychological trading Trading can bring out the best and the worst in us. For a trader, nothing is more frustrating than opening a long position and seeing the market drop, bringing the value of your long position to levels well below the price you bought it. The same can be said about missing out on a move in a stock that's been on your radar for a while. Anger, fear, and anxiety can lead traders to make quick and even irrational emotion-based decisions. The reality is that markets are cyclical, moving through ups and downs. Trading decisions based on emotions may not always give the results you want. Instead, take a step back and think through the situation logically. Every situation is different, and instead of buying or selling in a panic, think about how you can best manage risk. 2️⃣Mistake 2: Pulling stop orders When a position hits a stop order, it can often mean you're going to take a loss on it. Pulling—or canceling—a stop is often a subliminal attempt to avoid admitting you were wrong. After all, as long as the position is open, there's still a chance it could come back and be profitable. The problem is every 50% loss starts with a 5% loss. It's not magic; it's just math. And it only takes one small loss that turns into a big one to make a big dent in a portfolio. Losing is no fun, but it's part of trading. Being disciplined about managing stop orders may help you come back and trade another day. 3️⃣Mistake 3: Trading without a plan Trading plans should act as a blueprint during your time on the markets. They should contain a strategy, time commitments and the amount of capital that you are willing to invest. After a bad day on the markets, traders could be tempted to scrap their plan. This is a mistake, because a trading plan should be the foundation for any new position. A bad trading day doesn’t mean that a plan is flawed, it simply means that the markets weren’t moving in the anticipated direction during that particular time period. Every trader makes mistakes, and the examples covered in this article don’t need to be the end of your trading. However, they should be taken as opportunities to learn what works and what doesn’t work for you. The main points to remember are that you should make a trading plan based on your own analysis, and stick to it to prevent emotions from clouding your decision-making. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
6
The Simple Plunge StrategyHello dear @TradingView community! Welcome to @Vestinda, your trusted trading companion in the ever-changing world of financial markets. Our team is passionate about giving traders like you the tools and knowledge to make smart decisions and achieve your investing and trading goals. At Vestinda, we know that successful trading involves using effective strategies, analyzing the market, and managing risk. That's why we sharing a strategy that can help you make the most of downward trends — The Simple Plunge Strategy. This strategy is designed to help you navigate downward movements in the market with confidence. It focuses on spotting specific patterns that occur during sharp drops in cryptocurrency prices. By understanding and applying this strategy carefully, you have the potential to increase your profits. The Simple Plunge Strategy involves looking for certain signs: a strong and sudden downward movement in price, shown by a big candlestick with high trading volume. After the drop, the price often recovers to levels seen when the candlestick opened. By closely watching how the price moves across certain boundaries, you can find good points to enter trades and set your profit targets and stop-loss levels. To use the Simple Plunge Strategy effectively, it's important to find the right entry points and manage your risk. You can find entry points by watching the price as it rises above the starting point of the candlestick with a big volume. To determine your profit target, you can use half of the candlestick range. And to manage risk, you can set a stop-loss order above the previous high point. This strategy can be used with different timeframes, but looking at 15-30 minute intervals can give you opportunities for quick trades. When applying the strategy to cryptocurrencies, look for coins or tokens that have experienced significant drops with high trading volume. Watch how the price moves above and across the starting point of the drop to find potential entry points. You can also find examples of Simple Plunge patterns on CEX platforms, which list various cryptocurrencies. Take a look at coins such as ETH, DOGE, and others to see instances where the price sharply drops and then rises again, indicating possible entry points. Remember, the Simple Plunge Strategy can also be used in reverse to identify opportunities during upward movements. A similar pattern often occurs when prices rise. We'd love to hear your feedback on the Simple Plunge Strategy. Have you tried this approach in your trading? Share your thoughts, questions, and experiences in the comments below. Let's have a lively discussion and support each other in the world of trading.
INDEX:BTCUSDEducation
by Vestinda
Learn What Will Really Make You Profitable in Trading What brings the consistent profits in trading? Talking to hundreds of struggling traders from different parts of the globe, I realized that there are the common misconceptions concerning that subject. In this educational article, we will discuss what really will make you profitable in trading. 🔔The first thing that 99% of struggling traders are looking for is signals. Why damn learn if you can simply follow the trades of a pro trader and make money?! The truth is, however, is that in order to repeat the performance of a signal provider you have to open all your trading positions in the same exact moment he does. (And I would not even mention the fact that there will be a delay between the moment the provider opens the trade and the moment he sends you the signal) Because the signal can be sent at a random moment, quite often it will take time for you to reach your trading terminal and open the position. Just a 1-minute delay may dramatically change the risk to reward ration of the trade and, hence, the final result. 🤖The second thing that really attracts the struggling traders is trading robots (EA). The systems that trade automatically and aimed to generate consistent profits. You simply start the program and wait for the money. The main problem with EA is the fact that it requires constant monitoring. It can stop or freeze in a random moment and may require a reboot. Moreover, due to changing market conditions, the EA should be regularly updated. Without the updates, at some moment it may blow your account. Trading robot is the work: trading with the robots means their constant development, monitoring and improvement. And that work requires a high level of experience: both in coding and in trading. 📈The third thing that struggling traders are seeking is the "magic" indicator. The one that will accurately identify the safe points to buy and sell. You add the indicator on the chart, and you simply wait for the signal to open the trade. The fact is that magic indicators do not exist. Indicator is the tool that can be applied as the extra confirmation. It should be applied strictly in a combination with something else, and its proper application requires a high level of expertise in trading. 🍀The fourth thing that newbie traders seek is luck. They open the trade, and then they pray the God, Powell, Fed or someone else to move the market in their favor. And yes, occasionally, luck will be on your side. But relying on luck on a long-term basis, you are doomed to fail. But what will make you profitable then? What is the secret ingredient. Remember, that secret ingredient does not exist. In order to become a consistently profitable traders, you should rely on 4 crucial elements: trading plan, risk management, discipline and correct mindset. 🧠What is correct mindset in trading? It simply means setting REALISTIC goals and having REALISTIC expectations from the market and from your trading. 📝A trading plan is the set of rules and conditions that you apply for the search of a trading setup and the management of the opened position. Trading plan will be considered to be good if it is back tested on historical data and then tested on demo account for at least 3 consequent months. ✔️In order to follow the plan consistently, you need to be disciplined. You should be prepared for losing streaks, and you should be strong enough to not break once your trading account will be in a drawdown. 💰Risk management is one of the most important elements of your trading plan. It defines your risk per trade and your set of actions in case of losses. Even the best trading strategies may fail because of poor risk management. Combining these 4 elements, you will become a consistently profitable trader. Remember, that there is no easy way, no shortcut. Trading is a hard work to be done. ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
11
Day Trading Tips in 2023 📈 Day trading refers to a style of trading where the trader buys and sells a financial instrument within the same day, or even multiple times a day. With the right strategy and knowledge, you can take advantage of small price movements in the currency exchange market to earn a potential profit. However, it takes a lot of practice and dedication to become successful at day trading forex, so it's important for beginners to understand what they're getting into before starting out. In this article, we'll discuss five insider tips to help beginners start their journey in day trading forex. 1. Set Aside Funds You Can Afford to Lose 💵 Before you start trading, it is important to understand how much capital you can realistically afford to risk. Almost all successful traders say that you should never trade more than you can afford to lose. So, it is advisable for beginners to start small and gradually increase their trading capital as they gain experience. Typically, successful day traders commit no more than 1-2% of their account's balance per trade. Additionally, it is wise to earmark a surplus amount of funds that can be used solely for trading purposes, and ensure that you are prepared for any potential losses. This way, even if your trades go in the wrong direction or don't turn out as well as you expected, you won't be risking your personal savings or other investments. 2. Be Realistic With Your Strategies 💫 Day traders should be realistic when formulating their strategies, as having too high expectations can only lead to disappointment. Namely, strategies do not need to succeed every time in order to be potentially profitable, and day traders often make potential profits on approximately 50-60% of their trades. Furthermore, it is important to ensure the financial risk on each trade is limited to a specific percentage of the account and that entry and exit methods are clearly defined. By being realistic with their strategies, day traders can better manage risk while improving their chances of achieving long-term success. 3.Follow the Strategy 🎯 Once you have established a concise strategy that works for you, it is important to stick to it. Successful traders do not need to think on their feet or make decisions quickly, as they already have a specific trading strategy in place. It is essential to follow the strategy closely rather than try to chase potential profits or abandon the strategy when things don't go as expected. Doing so can significantly increase the chances of you being successful in the long run. 4.Stop-Loss Orders 🛑 Risk can be mitigated through stop-loss orders, which exit the position at a specific exchange rate. Stop-loss orders are an essential forex risk management tool since they can help traders cap their risk per trade, preventing significant losses. 5.Journal Your Trades 📝 A printed record is a great learning tool. Print out a chart and list all the reasons for the trade, including the fundamentals that sway your decisions. Mark the chart with your entry and your exit points. Make any relevant comments on the chart, including emotional reasons for taking action. The steps above will lead you to a structured approach to trading and should help you become a more refined trader. Trading is an art, and the only way to become increasingly proficient is through consistent and disciplined practice. What do you want to learn in the next post?
TVC:GOLDEducation
by UnitedSignals
4
Why Failure Is Key Of Success Like anyone else on Earth, I’ve had successes (and failures) in years past, at both the personal and professional level. If you’re scoring at home, that’s called being a human being. I can probably make a case that failure is more important than success in many respects because you can’t really succeed unless you’ve truly inhaled your failures (own it!) and then exhaled them to improve your future approach. There is no finality about failure, said Jawaharlal Nehru. Perhaps, that is why learning from failure is easier than learning from success, as success often appears to be the last step of the ladder. Possibilities of life, however, are endless and there are worlds beyond the stars-which is literally true. What appears as success in one moment may turn out to be a failure or even worse in the next moment.We often do not know what is failure and what is success ultimately. Failure gives us the opportunity to bounce back, to learn from our mistakes, and helps us appreciate success. Failure is therefore not the end, but only a stage in our journey. If it crosses our path and we know how to draw the necessary lessons from it, it even allows us to question ourselves when it's necessary and by doing so, it moves us forward. Dear followers, let me know, what topic interests you for new educational posts?
BITSTAMP:BTCUSDEducation
by SignalProvider
8
Practical Insights into the Risk ManagementHey there, amazing @TradingView community! It's @Vestinda, and we're on a mission to deliver content that truly makes a difference. 👉 To become a successful crypto trader, it's essential to have a solid understanding of trade and risk management concepts, such as stop losses, position sizing, and scaling. In this article, we'll explore these key concepts in-depth to help you minimize your risks and maximize your gains in the cryptocurrency market. Four Risk Management Concepts Every Crypto Trader Should Understand To effectively manage the risk associated with trading, it is essential to first develop a comprehensive trade management and risk management strategy. Before committing your capital to any position, it's critical to have a clear plan in place to minimize potential losses and optimize your overall trading performance. Successful market speculation requires effective risk management to preserve capital, which is the primary objective. By minimizing losses and maximizing gains through a comprehensive trade and risk management strategy, traders can achieve long-term success in the market. One of the key strategies employed by the most successful traders is to minimize their losses while allowing their profitable trades to run. This approach is essential for avoiding disastrous scenarios, such as allowing profitable trades to turn into losers or allowing a single bad trade to wipe out an entire account. By focusing on risk management and trade management, traders can increase their chances of success and protect their capital over the long term. It's true that implementing the "cut losses quickly and let profitable trades ride" strategy can be challenging, especially for discretionary traders who need to constantly evaluate changes in fundamentals and market sentiment against price movements. However, there are trade and risk management ("TRM") tools and methods available that can help simplify this process. While these tools and methods may seem complex at first, they are quite accessible and easy to learn. With the right TRM strategies in place, traders can effectively manage risk and optimize their performance in any market condition. Before diving into trading, it's crucial to understand four key concepts in trade and risk management: Stop losses: Stop losses are predetermined exit points designed to limit potential losses on a trade. By setting a stop loss, traders can automatically close a position if the market moves against them beyond a certain point, minimizing their losses. Traders may use price action signals, technical indicator signals, fundamental analysis, or a combination of all three to determine the appropriate level for a stop-loss order. This helps to limit potential losses on trade and is a crucial component of effective risk management. Position sizing: Position sizing refers to the amount of capital allocated to a specific trade. By properly sizing positions based on risk tolerance and market conditions, traders can optimize their overall risk management strategy and minimize the impact of potential losses. Position sizing refers to the process of determining the quantity of cryptocurrency to long or short based on the maximum amount of value a trader is willing to lose if the trade fails, also known as "max risk." For novice traders, it is recommended that the maximum risk should not exceed 1-2% of their portfolio for short-term transactions and 5% for longer-term positions. For example, if a trader has a cryptocurrency account with $ 1,000 and wishes to purchase a token with a market price of $ 10.0 per token, they would need to determine the appropriate position size to maintain their desired level of risk. If their analysis indicates that they should place a stop loss at $ 5.0 per token to limit their maximum risk to 2% of their account, or $ 20.0, then the appropriate position size would be 4 units (40$ position size). This way, if the token's value drops by $ 5.0, the resulting loss of $ 20.0 would equal 2% of the trader's account. Scaling: Scaling involves adjusting position sizes based on the performance of a trade or the overall market conditions. By scaling into or out of positions based on market conditions, traders can adjust their risk exposure and optimize their potential for gains while minimizing potential losses. Scaling refers to the practice of dividing entries and exits into two or more orders around a trader's intended entry/exit area to reduce the likelihood of setting an entry too low or too high. This is particularly important because it is nearly impossible to predict the exact price or time at which the market's direction or volatility levels will change. For example, if a trader intends to buy a token for $ 10.0 but their analysis indicates that it may drop as low as $ 8.0 before sentiment entirely flips bullish, they should consider dividing their entry/exit orders into multiple price levels. This way, they can enter the trade with a partial position if the token's price does not drop below $10.0, but if it drops to $ 8.0, they can scale into a lower average price of $ 8.75. By using scaling and position sizing in conjunction with a maximum stop loss level, traders can effectively manage their risk and reduce the likelihood of incurring significant losses. While these concepts are relatively simple, understanding and applying them correctly can help traders avoid significant risks in the cryptocurrency market. Leverage: Trading with leverage involves taking positions that exceed the account's total capital, which can be done through crypto exchanges (CEXs) offering margin trading or some DeFi protocols providing advanced borrowing mechanisms. For instance, assume you have $ 100 in your account, and you want to purchase 1 unit of XYZ token worth $ 100, creating an open position valued at $ 100. Margin trading offered by a CEX may only require a 10% margin, meaning you only need to invest $ 10 instead of the entire $ 100. You can then utilize the remaining $ 90 to open additional positions, which can be tempting for many traders. With a 10% margin requirement and a $ 100 account, you can open a position size of 10 XYZ tokens, having a notional value of $ 1000 ($ 100 x 10 units), with the CEX holding the $ 100 in your account as a margin for the trades. This would make you leveraged 10x, which is considered an extremely high amount of leverage. If the token increases in value by 10% in a short period, the position value would grow from $ 1000 to $ 1100, which means you could double your account value from $ 100 to $ 200 (i.e., $ 100 profit + $ 100 margin). Alternatively, if the token rises by 20% to $ 1200, you would triple your account to $ 300 in value. Although the potential for high profits may sound exciting, it is crucial to remember the risks associated with trading with leverage, and it is advisable to exercise caution and not get carried away by the prospect of quick and easy gains. Many traders are lured by the potential profits of leveraged trading, but it's important to remember that leverage can be just as dangerous as it is rewarding. If a trader opens a position with 10x leverage and the position loses just 5%, that would be a loss of $ 50, which is 50% of their $ 100 account. Additionally, if the position were to lose 10%, resulting in a $ 100 loss, the trader would receive a margin call and would need to deposit more money to keep their trades open. If they are unable to do so, the CEX will close all positions, also known as being "liquidated". The CEX will use the margin that the trader had provided to cover the $ 100 loss, which means that the trader's account balance would be reduced to $ 0. It's essential to be aware of the risks of leveraged trading, as you could potentially lose everything you've invested. It's important to remember that leverage in crypto trading is a double-edged sword that can either grow your account or quickly deplete it. While it's possible to make significant profits with leverage, it's equally possible to suffer substantial losses. As a new trader, it's important to acknowledge that trading with leverage requires expertise and a sound risk management strategy, which can be challenging to implement successfully. Therefore, it's wise to approach leverage with caution and focus on developing your skills and knowledge before considering this tool. Here are some recommendations that can help you navigate the exciting but risky world of crypto trading: First, it's important to be conservative with your risk-taking and to only invest in your very best trade ideas. Limiting your total exposure to the crypto sector to a small percentage of your total liquid capital, starting at 1%, is a good way to minimize your risk. You should also limit your exposure to a specific crypto asset to a small percentage of your total crypto portfolio, with a 1% to 2% max risk on short-term trades and a max of 5% risk on longer-term positions. Using a stop loss with every position is also crucial to limit potential losses. Remember, perfect timing is near impossible, so consider scaling into trading positions or "dollar cost averaging" into longer-term investments. Take profits along the way if a trade goes your way. And most importantly, avoid using leverage, which can be a double-edged sword and lead to substantial losses. Lastly, only invest your capital in your very best ideas, which should be low-risk/high-reward setups on high-probability ideas. Don't force trades when there are no compelling opportunities, and remember that "no position" is a perfectly fine position when you don't see any good opportunities. Calling all traders! Are you ready to take your skills to the next level? Join our community of like-minded traders and stay up to date with the latest market trends and insights. Hit that follow button and show your support by giving this article a big thumbs up. Together, we'll navigate the markets with ease and achieve financial success. Don't miss out on this opportunity to grow and learn with us. Let's do this!
INDEX:BTCUSDEducation
by Vestinda
1
Why 90% Of Traders Lose Money? Trading is a tough business and most people who start in the business lose money. And these numbers aren't small at all, really. In fact, they might even be scary to look at. Therefore, in this article, we will look at some of the most popular reasons why more than 90% of new traders will lose their money in trading. ____ The most common reason why many traders lose money is simply that they want to become professional traders without learning more about it first. They trade without even learning the differences between assets and how trading works. Other people start trading after seeing the hyped stories of millionaire traders on television. ____ Some traders just follow the recommendations of others and do not conduct technical analyses of their own. Traders should review the prices, analyze the volume, check the prior trends and analyze other technical indicators before placing their intraday orders. Rushing just to place buy or sell orders is one of the biggest mistakes intraday traders make. One should conduct proper technical analysis and then start trading. ____ The phrase- “Trend is your best friend” always works in the market. Not following the trend is another biggest mistake that day traders make. Unless a trader has many years of experience and understanding of the market, traders should try to avoid going against the trend. If the market is in a strong uptrend, then one should try to trade in the up direction only unless there is any strong resistance or chart pattern breakout. ____ Some traders follow rumors and recommendations which are spread by the media houses and brokers. This is another big mistake that intraday traders make. One should not blindly follow the intraday trading tips and rumors without their own analysis. Going by these recommendations without conducting your own analysis can cause huge losses. As we have discussed above traders should conduct proper research before following any recommendations or intraday tips. As we all know that the intraday trading is a mixed bag of losses and gains. Not every trade goes right or is profitable. Thus traders should put a stop loss of their trades when doing intraday trading to protect their capital from losses. Please, like this post and subscribe to our tradingview page!👍
OANDA:BTCUSDEducation
by EliteTradingSignals
5
TRADING OR A JOB? DEEP DIVE❗️ Are you torn between choosing a job and getting into trading? Both have their advantages and pitfalls, but by combining the two, you can reap the rewards of both worlds. 🚷Firstly, let's consider a traditional job. A job offers security, stability, and a predictable income. You work for a set number of hours, and you receive a paycheck. You have employer benefits such as healthcare, 401k matching, and paid time off. On the downside, you are limited to your salary, which may not always reflect your hard work and dedication. You may feel stuck in your role as there are usually limited opportunities for career advancement. And if you lose your job, you lose that source of income. 💹Now let's consider trading. Trading offers the potential for uncapped income, flexibility, and the autonomy to make your decisions. You can trade anywhere with an internet connection, and there are many different markets to choose from, such as forex, stocks, and commodities. You have complete control over your financial destiny. However, trading is not for everyone. It requires a lot of time, effort, and discipline to become successful. There are risks involved, and you can lose money if you do not know what you are doing. It can also be a lonely profession as you may be working alone most of the time. 💡Now, what if we combine the two? This is where the concept of "side hustles" comes into play. You can keep your job for the stability and security, but you can also trade on the side to increase your income and diversify your portfolio. By trading on the side, you can use the abundance of time outside of your job to learn, practice, and implement trading strategies. Gradually, you may earn enough money from trading to eventually quit your job and become a full-time trader. However, the combination of the two must be approached with caution. Trading can be time-consuming, and you do not want to sacrifice the quality of your work at your job. It is also essential to practice risk management and not invest money that you cannot afford to lose. ⚖️In conclusion, both a job and trading have their advantages and disadvantages. Combining the two is an excellent way to increase your income, diversify your portfolio, and potentially become a full-time trader. But proceeding with caution, discipline, and good money management is key to success. Remember, the goal is to build a better future for yourself, and with the right balance between a job and trading, you can achieve it. Thanks for reading bro, you are the best☺️ Like, comment and subscribe to boost your trading! Dear followers, let me know, what topic interests you for new educational posts?
BITSTAMP:BTCUSDEducation
by SignalProvider
5
Common Fears in Trading and How to Overcome Them As we discussed many types, psychology plans a crucial role in trading. Even the best strategy in the world, can be screwed by emotional decisions. In this educational articles, we will discuss 5 common fears in trading and the ways to overcome them. 1️⃣Fear of the Unknown. Lack of experience make many traders face "unusual" situations on the market: the setups, patterns, fluctuations and formation that they have never seen before. Such events cause inaction and paralyze. Not knowing how to deal with such situations, newbies make irrational decisions that most of the time incur losses. ✔️Solution: The best way to beat the fear of the unknown is to keep learning: reading the books, watching the charts, studying the historical data will help you to be prepared for various situations. Also, your mindset plays an important role here: your adaptability, your willingness to accept the changing nature of the market are essential for your success in trading. 2️⃣Fear of Being Wrong. Testing multiple strategies and trading techniques, the only way for the newbie traders to prove their efficiency is to try them, try them on real market. And of course, the majority of the stuff that you will try won't work. In trading, each mistake costs money, hence, losses will be inevitable. The fear to make a mistake will be chasing you. ✔️Solution: The best way to overcome the fear of being wrong is to build a confidence in your actions. After trying multiple strategies, you will certainly find the one that works. More you will trade with that, more winning trades you will catch, more confident you will become in your system. 3️⃣FOMO - Fear of Missing Out There are thousands of instruments to trade. Many markets are opened 24 hours a day. Of course, you can not monitor them all, and even if you have a fixed watch list of the instruments that you trade, you can not monitor them 24/7. Some opportunities will always be missed. Some trading setups will form while you are sleeping, and accurate patterns will form on the instruments that are not in your watch list. Realizing the fact, that something will always be missed, is painful. For that reason, newbie traders are trying to be present everywhere at anytime. But the paradox is that more options breed more confusion. ✔️Solution: Always remember the fact that patience always pays. Opportunities will always come, but in order to catch them, you need focus. And fewer instruments you have in your watch list, more attention you pay to them. 4️⃣Fear of Losing Money The biggest risk in trading is the fact that your entire trading account can be blown in a glimpse of an eye. Moreover, trading can be learned only by trading. And losses are inevitable, no matter how good you are. That makes newbie traders be scared of opening just one single position. ✔️Solution: I always give my students the recommendation to trade with the amount that they can afford themselves to lose. Consider your trading account as an investment. With each single trade, you are investing in your skills, in your knowledge. You pay the market to teach you. 5️⃣Fear of Not Taking Profit at the Right Time Imagine you opened a trade and the market suddenly starts moving in the direction that you expected. It is coming closer and closer to your target... A few seconds after, however, the market rolls over. You see how your profits start evaporation. Probably you chose incorrect take profit level? Maybe it is the moment to close the trade manually? You are scared that all the profits will be gone. ✔️Solution: Take profit level selection is a very hard element of each trading strategy. The only way to not let your emotions intervene is to build the solid system that proved its efficiency and learn to be disciplined to follow that no matter what. Always remember that no one can teach you how to deal with yourself. How to deal with your emotions. You should go through all these fears by your own and find the way to beat these dragons. The solutions that I shared helped me to beat my dragons, I hope that they will help you to beat yours! ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
5
What is Trading Plan? Detailed Example A short ⚠️disclaimer before we start: the rules that will be discussed in this post are applicable only for technicians - traders that are relying on price action/structure/etc. Also, we assume that structure levels do work and for us, key levels are considered to be the safest trading zones/points. In order to increase the accuracy of your predictions analyzing different financial markets, you must learn to identify the direction of the market.📈 The identification of the market trend must be based on strict & reliable & testable rules. It can be based on technical indicators or price action Personally, I prefer to rely on price action. There are three main types of market trends: Bullish Trend Bearish Trend Sideways Market Depending on the current direction of the market, on the chart, I drew a flow chart✔️ that will help you to act safely. ➡️Sideways market signifies consolidation & indecision. Usually being in such a state the market tends to coil in horizontal ranges. To trade such a market safely, the best option for you will be to wait for a breakout of the range & wait for the initiation of the trend. ➡️Once you spotted a bullish market, do not rush to buy. Your task will be to identify the closest strong structure support . You must be patient enough to let the price reach that support first (and by the way, there is no guarantee that it will happen) and then you must wait for a certain confirmation. Only once you get the needed confirmation you can buy the market. ➡️The same strategy will be applicable to a bearish market. Spotting a short rally it is way early to just sell the asset from a random point. You must find the closest strong structure resistance and wait for the moment when the price will approach that. Then your task will be to wait for a confirmation and only when you got the reliable trigger you short the market. 🦉Try to rely on this flow chart and I promise you that you will see a dramatic increase in your trading performance. And even though it may appear to you that this flow chart is TOO SIMPLE, in practice, even such a set of rules requires iron discipline and patience. Thank you so much for reading this article, I hope you enjoy it! Let me know, traders, what do you want to learn in the next educational post?
OANDA:XAUUSDEducation
by VasilyTrader
10
Steps to Becoming a Profitable Trader This is a roadmap to becoming a profitable trader. Follow these steps to avoid wasting time and bouncing around from idea to idea. We start with a basic strategy idea we like, then build off it. We MAKE it profitable by following the steps outlined. 1. Focus on One Idea or Strategy Focus on one specific idea. An idea is not “price action” or “technical analysis”. That is too broad. But you could start with the idea of day trading an 8 and 21-period moving average crossover. Or MACD signal crossovers on a 1-minute chart. Or the rounded top or bottom or pattern, or triangles, or Keltner channel bounces off the center line in strong trends. Basically, you need an idea and a time frame (1-minute chart, daily chart, etc). 2. Define the Strategy Since you have your idea, you already know the basic concept of the strategy. If you don’t have a strategy yet, that’s where a bit of research comes in: finding something you like the idea of. There are loads of free strategy articles on this site, in the courses offered, and from other sources such as books, Youtube, etc. Whatever strategy you decide on, it needs to include these key components: A trade setup. The trade setup is what needs to happen for us to even consider a trade. It could be a specific chart pattern, moving average crossover, price action signal, etc. Where, when, and why we enter A trade trigger is a precise event that tells us to get into the trade. When the “trigger” event occurs, it turns a possible trade setup into an actual trade. Where, when, and why we exit profitable trades Where, when, and why we exit losing trades If and how we trail a stop loss. 3. Polish Your Strategy Keep practicing. Keep improving your strategy. Try that on different markets, under different circumstances. Make it better and better till it starts making money. Keep it simple and focused on one trading idea. Get better and better at that idea. Keep refining and building your confidence in the method. We gain confidence by seeing something work and being able to implement it. And that’s what all these steps are about. Please, like this post and subscribe to our tradingview page!👍
OANDA:BTCUSDEducation
by EliteTradingSignals
6