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THE ROAD TO SUCCESS The article is aptly named for it is the road that matters not the destination. And here is why: Our brain, though incredibly complex, runs its basic functions on ancient and primitive brain circuits using the carrot and stick principle to motivate us to do some things and to demotivate us from doing other things. That carrot and stick stimuli come in the form of pleasure and pain of varying strength, and the brain creates a dynamic map of the positive and negative stimuli and then our prefrontal lobes develop the best path to navigate this map. The map to success right? Well, kinda… The thing is that if the map and the assigned values of the stimuli were fixed we would have all soon achieved whatever we desired in the moment and would have been ecstatic for the rest of our lives, but our brain is there to ensure survival and reproduction therefore, the stimuli value map is dynamic with the brain reducing the reward we get each time we do the same thing that we previously craved, with the exception of the few basic things vital for survival like food and reproductive activities. Anyhow, just as with drugs the high is less and less potent form the same dose as the time goes by. So is the “high” form a certain level of success we reached. Happy at first, we will soon notice that the “kick” is no longer there, meaning that the values on the map have been reassigned and the brain is demanding that you set off on another quest to achieve yet even greater success. That way you keep moving, and the final success is always just one step away, but just like the horizon with each step towards it, it makes one step away from you. That is why we, as traders, need to appreciate the road itself too. Get joy from looking at the charts, finding patterns, learning new things and creating strategies. Without that, the life of a trader with its ups and downs, and constant stress will drive you nuts pretty soon… Cheers to all of you, who enjoy the charts as much as I do, and thanks to Tradingview, for giving such a great platform for savouring each and every moment of it!
Education
by ProSignalsFx
7
Learn Paralysis By Analysis | Trading Psychology Hey traders, In this article, we will discuss a very important term in trading psychology - paralysis by analysis. Paralysis by analysis occurs when the trader is overwhelmed by a complexity of the data that he is working with. Most of the time, it happens when one is relying on wide spectra of non correlated metrics. That can be various trading indicators, different news outlets and analytical articles and multiple technical tools. Relying on such a mixed basket, one will inevitably be stuck with the contradictory data. For example, the technical indicators may show very bearish clues while the fundamental data is very bullish. Or it can be even worse, when the traders have dozens of indicators on his chart and half of them dictates to open a long position, while another half dictates to sell. As a result, the one becomes paralyzed, not being able to make a decision. Moreover, each attempt to comprehend the data leads to deeper and deeper overthinking, driving into a vicious circle. The paralysis breeds the inaction that necessarily means the missed trading opportunities and profits. How to deal with that? The best option is to limit the number of data sources used for a decision-making. The rule here is simple - the fewer indicators you use, the easier it is to make a decision. There is a common fallacy among traders, that complexity breeds the profit. With so many years of trading, I realized, however, that the opposite is true... Keep the things simple, and you will be impressed how accurate your predictions will become. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
16
Mastering and Understanding Candlesticks Patterns An overview of Candlesticks A candle represents the changes in price over an interval of time, such as 1 day or 1 minute. The main body of the candle illustrates the opening price at the start of the time interval and the price when the market closed at the end of the interval. The length of the shadows shows how much the price has moved up and down with respect to a candlestick within a specific duration. The candlestick body describes the difference between the opening and closing prices for the corresponding time period. THe market is a battleftield between buyers and sellers. If one side is stronger than the other, the financial markets will see the following trends emerging: If there are more buyers than sellers, or more buying interest than selling interest, the buyers do not have anyone they can buy from. The prices then increase until the price becomes so high that the sellers once again find it attractive to get involved. At the same time, the price is eventually too high for the buyers to keep buying. However, if there are more sellers than buyers, prices will fall until a balance is restored and more buyers enter the market. The greater the imbalance between these two market players, the faster the movement of the market in one direction. However, if there is only a slight overhang, prices tend to change more slowly. When the buying and selling interests are in equilibrium, there is no reason for the price to change. Both parties are satisfied with the current price and there is a market balance. Analysis aims at comparing the strength ratio of the two sides to evaluate which market players are stronger and in which direction the price is, therefore, more likely to move.
OANDA:XAUUSDEducation
by TopTradingSignals
12
Fundamental Analysis in Forex Trading Economic indicators and announcements are an essential part of fundamental analysis. Even if you’re not planning on finding trades using fundamentals, it’s a good idea to pay attention to how the overall economy is performing. Here’s a cheat sheet covering six key indicators and announcements to watch out for. 1. Non-farm payrolls (NFP) The non-farm payrolls report estimates the net number of jobs gained in the US in the previous month – excluding those in farms, private households and non-profit organisations. 2. Consumer price index (CPI) The chief measure of inflation is the consumer price index, which measures the changing prices of a group of consumer goods and services. 3. Central bank meetings As we’ve seen, most traders follow economic figures so they can anticipate what a central bank might do next. So, it only makes sense that we pay attention to what happens when they actually meet and make decisions. 4. Consumer and business sentiment reports Multiple organisations are constantly surveying consumers and business leaders to create sentiment reports. While the number of reports they produce is staggering, they all play their part in shaping the markets’ expectation for the future. 5. Purchasing manager index (PMI) Purchasing manager indices measure the prevailing direction of economic trends in a given industry, according to the view of its purchasing managers. They are used as an indicator of the overall health of a sector. Pay close attention to these fundamentals. They play a crutial role in trading.
OANDA:XAUUSDEducation
by UnitedSignals
12
✅JOURNEY OF A TRADER=HERO'S JOURNEY! 📖I was reflecting on how I became a trader, and suddenly I was reminded of a great book called «A hero with a thousand faces» which then led to the analogy between the journey of a trader and the hero's journey. And while just as any analogy this one is somwhat superficial, I really feel like there is a lot of truth to it. Just think of how many of us have trading histories that look something like this? ♣️A grand call to adventure. Who would not want to make a pile of money working from the comfort of your own computer screen? ♠️Finding a mentor. Good mentors matter! Few of us who have succeeded would have done so without some help. ♣️Crossing over into an “unreal” world. Markets are crazy. When we look deeply into markets, maybe we become a little crazy ourselves, and we certainly become disconnected from ordinary reality. ♠️Facing dire challenges. The emotional highs and lows of trading can be extreme. Is there a trader alive who hasn’t been awake at 4am wondering if they can ever do this, why they ever tried in the first place, how they could be so stupid to make the same mistakes over and over, and what they were going to do tomorrow? (This is probably not the time to mention that we only write stories about the heroes that complete the journey! A lot of dragons feasted very well, for a very long time.) ♣️Failure somehow, perhaps almost miraculously, is transformed to success. ♠️We figure out how to incorporate our trading activities into the everyday world, and discover that things probably weren’t quite as exotic or difficult as we had thought. 📌My point is that trading is not really about learning patterns. It is not about learning some math. It is not about skill development, and it is not even about risk management. All of these things are important, but the real work of trading is work on ourselves. ✅Remember: Before facing the dragon in a cave, one needs to awaken the dragon within. Leave a comment and a like bros👍🏻
Education
by ProSignalsFx
6
Candlestick Analysis - A Classic Way Of Using Candlesticks An overview of Candlesticks A candle represents the changes in price over an interval of time, such as 1 day or 1 minute. The main body of the candle illustrates the opening price at the start of the time interval and the price when the market closed at the end of the interval. The head and tail represent the highest and lowest prices during the interval. If the price closed at a price above the opening price, then the candle is referred to as a 'bullish' candle and if the price closed below the opening price, then the candle is referred to as a 'bearish' candle. The length of the shadows shows how much the price has moved up and down with respect to a candlestick within a specific duration. The size of the candlestick body shows the difference between the opening and closing price and it tells us a lot about the strength of buyers or sellers. Below, the most important characteristics of the analysis of the candlestick body are listed. A long candlestick body, that leads to quickly rising prices, indicates more buying interest and a strong price move. If the size of the candlestick bodies increases over a period, then the price trend accelerates and a trend is intensified. When the size of the bodies shrinks, this can mean that a prevailing trend comes to an end, owing to an increasingly balanced strength ratio between the buyers and the sellers. Candlestick bodies that remain constant confirm a stable trend. If the market suddenly shifts from long rising candlesticks to long falling candlesticks, it indicates a sudden change in trend and highlights strong market forces.
OANDA:XAUUSDEducation
by TopTradingSignals
9
The 12 Days of Effective Trading Learning Hey traders, In this article, we gathered for you 1 2-days intensive trading learning marathon. We hope that it will help. 1 Day: Practice placing support and resistance lines. 2 Day: Perfect placing trend lines. 3 Day: Study candlestick patterns. 4 Day: Review chart patterns. 5 Day: Practice placing fibonacci retracements. 6 Day: Learn about moving average. 7 Day: Master market structure. 8 Day: Watch videos on momentum oscillators. 9 Day: Learn about divergence. 10 Day: Study risk managment. 11 Day: Review fundamental literature. 12 Day: Create a trading plan. Let us know if such a marathon helped you in your journey.
OANDA:XAUUSDEducation
by UnitedSignals
9
PSYCHOLOGY OF A TRADER | TRADING BASICS Market psychology is the idea that the movements of a market reflect (or are influenced by) the emotional state of its participants. It is one of the main topics of behavioral economics - an interdisciplinary field that investigates the various factors that precede economic decisions. Many believe that emotions are the main driving force behind the shifts of financial markets. And that the overall fluctuating investor sentiment is what creates the so-called psychological market cycles. So, the sentiment is made up of the individual views and feelings of all traders and investors within a financial market. Another way to look at it is as an average of the overall feeling of the market participants. But, just as with any group, no single opinion is completely dominant. Based on market psychology theories, an asset's price tends to change constantly in response to the overall market sentiment - which is also dynamic. Otherwise, it would be much harder to make a successful trade. In practice, when the market goes up, it is likely due to an improving attitude and confidence among the traders. A positive market sentiment causes demand to increase and supply to decrease. In turn, the increased demand may cause an even stronger attitude. Similarly, a strong downtrend tends to create a negative sentiment that reduces demand and increases the available supply.
OANDA:XAUUSDEducation
by UnitedSignals
7
A Beginner's Guide to Candlestick Charts A candlestick chart is a type of financial chart that graphically represents the price moves of an asset for a given timeframe. As the name suggests, it’s made up of candlesticks, each representing the same amount of time. The candlesticks can represent virtually any period, from seconds to years. While candlestick charts could be used to analyze any other types of data, they are mostly employed to facilitate the analysis of financial markets. Used correctly, they’re tools that can help traders gauge the probability of outcomes in the price movement. They can be useful as they enable traders and investors to form their own ideas based on their analysis of the market. The following price points are needed to create each candlestick: Open — The first recorded trading price of the asset within that particular timeframe. High — The highest recorded trading price of the asset within that particular timeframe. Low — The lowest recorded trading price of the asset within that particular timeframe. Close — The last recorded trading price of the asset within that particular timeframe. Collectively, this data set is often referred to as the OHLC values. The relationship between the open, high, low, and close determines how the candlestick looks. The distance between the open and close is referred to as the body, while the distance between the body and the high/low is referred to as the wick or shadow. The distance between the high and low of the candle is called the range of the candlestick. Being able to read candlestick charts is vital to almost any investment style, learn different candlestick patterns and you will be surprised how accurate they are.
OANDA:XAUUSDEducation
by TopTradingSignals
8
INVESTING VS TRADING VS GAMBLING | Know the Difference Hey traders, In this post, we will compare investing and trading with gambling. 📈Investing Investing is the act of putting money in a financial market with the expectations of a long-term positive return. The investing decisions are usually made using fundamental analysis. The main goal of an investor is to predict the long-term market trends and benefit on them. Professional investing also involves assets allocation and diversification aimed to hedge potential risks. 💱Trading Trading is the process of selling and buying financial instruments expecting a short-term (occasionally, mid-term) profit. The trading decisions are usually based on technical and fundamentals analysis. The goal of a trader is to predict local price fluctuations and catch them. Professional trading implies strict, rule-based actions following a trading plan. 🎰Gambling Gambling is the act of betting on a specific event with the expectations of winning some value. Being completely luck-based, gambling usually involves get rich quick schemes and pursuit of easy money. What differs professional trading and investing from gambling is the fact that professional trading / investing involves objective analysis and strict planning, while gambling remains purely intuition based. Unfortunately, most of the market participants pretend that they trade and invest professionally while acting as gamblers in fact. Remember that long-term, consistent profits can be achieved only with the plan. Your intuition may bring some short-term profits, but in a long-run it will most likely lead you to a bankruptcy. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
10
WHY 95% OF TRADERS DO NOT SUCCEED? 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.
OANDA:XAUUSDEducation
by UnitedSignals
5
FREE 12 WEEKS INTENSIVE TRADING PROGRAM 📚 Hey traders, For those who just started to trade, I suggest a 12 weeks intensive training program. Each week will be dedicated to a specific topic. Starting from the basics you will gradually mature and by the end of the intensive you will have a complete trading strategy. ✔️Week 1 - Practice market trend identification Learn to identify the direction of the trend. Master the recognition of a bullish trend, bearish trend and sideways market. ✔️Week 2 - Practice support and resistance. Learn to identify key levels. Master support & resistance recognition. ✔️Week 3 - Learn candlestick pattern. Study classic candlestick formations and practice their recognition. ✔️Week 4 - Learn price action patterns. Study classic price action patterns: trend-following patterns, reversal patterns and consolidation pattern and learn to recognize them. By the end of the first month, you will mature the basics of candlestick chart analysis. ✔️Week 5 - Practice supply and demand zones. Learn to identify supply and demand zones. Learn to combine candlestick analysis with support and resistance to identify the potential reversal zones. ✔️Week 6 - Practice multiple time frame analysis. Master top-down analysis. Learn to apply all the techniques studied previously on multiple time frames. ✔️Week 7 - Learn different entry strategies. With all the knowledge being obtained, you can practice different entry techniques. You can try trading candlesticks patterns or price action patterns, or simply key levels. Search what works for you. ✔️Week 8 - Learn risk management. Of course, entry strategies are not enough for profitable trading. Learn how to set stop loss and how to manage your risks properly. By the end of the second month, you will have a foundation for a strategy building. ✔️Week 9 - Practice trade management. Knowing how to enter the trade and how to manage the risks, the next step is to learn how to manage the active position (stop loss trailing, position protection, manual closing, etc.) ✔️Week 10 - Create a trading plan. Combine all the knowledge that you gained in a structured trading plan. ✔️Week 11 - Follow the strategy. Be disciplined and follow your rules. Test them and learn to be consistent. ✔️Week 12 - Review your plan. Following your strategy, you will inevitably find its flaws. Learn to constantly improve it. By the end of the third month, you will have a complete rule-based trading strategy. Of course, that won't be a perfect strategy, but you will have broad knowledge in technical analysis. The next 3 months alone should be sacrificed on polishing and improvement of your trading plan. Try this intensive, traders. I strongly believe that you will see a dramatic improvement in your trading upon its completion. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
15
5 Elements of a Smart Trade Plan Find out why you should have a trade plan—and the five elements that may help you put it to work successfully. Element 1: Your time horizon How long do you plan to hold a position? This will depend on your trading strategy. Generally, traders fit into one of three categories: Single-session traders are very active and look to gain from small price variations over very short time periods (minutes or hours) throughout the trading day. Swing traders target trades that can be completed in a few days to a few weeks. Position traders seek larger gains and recognize that it often takes longer than a few weeks to achieve them. Element 2: Your entry strategy Look for entry signals—for instance, divergences from trend lines and support levels—to help you place your trades. The signals you employ and the orders you use to make good on them hinge on your trading style and preferences. Element 3: Your exit plan When it comes to an exit strategy, plan for two types of trades: those that go in your favor and those that don’t. You might be tempted to let favorable trades run, but don’t ignore opportunities to take some profits. Element 4: Your position size Trading is risky. A good trade plan establishes ground rules for how much you’re willing to risk on any single trade. Say, for example, you don’t want to risk losing more than 2%–3% of your account on a single trade. You could consider exercising portion control, or sizing positions, to fit your budget. Element 5: Your trade performance Look over your trading history to calculate your theoretical trade expectancy, meaning your average gain (or loss) per trade. You start by determining the percentage of your trades that have been profitable versus those that haven’t. This is known as your win/loss ratio. Understanding what goes into a smart trade plan is the first step to prepare you for your next trade.
FXOPEN:XAUUSDEducation
by UnitedSignals
4
The Evolution of a Trader | 3 Milestones 📈 Hey traders, In this educational article, we will discuss 3 stages of the evolution of a trader. Stage 1 - Unprofitable trader 😞 The unprofitable trader has very typical characteristics: -total absence of trading skills Most of the time, people open a live account simply after completing some beginners course like on babypips website. Being sure that the obtained knowledge are completely enough to start trading, they quickly face the tough reality. -no trading plan Having just basic knowledge, of course, they do not have a trading plan. Why the hell to have it if everything is so simple?! All their actions on the market is just gambling. They open the positions randomly most of the time, simply relying on intuition. -poor risk management In 99% percent of the time, the unprofitable trader does not even think about risk management. The position sizing, stop placement and target selection are completely neglected. Trading performance of the unprofitable traders is characterized by small wins and substantial losses and negatively trending equity. Stage 2 - Boom and bust trader 😶 Usually, traders reach boom and bust stage after 1-2 years of unprofitable trading. At some moment, winning trades start to compensate losing trades, brining non-trending equity. Such traders have very common traits: -not polished trading plan Being unprofitable for so long, traders start to realize the significance of a trading plan. Sticking to the set of rules, they notice positive changes in their trading performance. However, trading plan requires to be polished and modified. It takes many years for a trader to identify all its drawbacks before it starts bringing net profits. -lack of confidence When one starts following a trading system, confidence plays a substantial role. The fact is that even the best trading strategy in the world occasionally produces negative results. In order to not give up and keep following such a system, one needs to build trust in that. The confidence that after a series of losing trades, the strategy will manage to recover. Such a trust can be built after many years of trading that strategy. Stage 3 - Profitable trader ☺️ That is the final destination. After many years of a struggling trading, one finally sees positively-trending equity. Winning trades start to outperform losing ones, leading to consistent account growth. Profitable trader is characterized by iron discipline, confidence and consistency. He knows what he is trading, when and why. His trading plan is polished, he fully controls his emotions. He never stops learning and constantly develops his strategy. Knowing the 3 stages of the evolution of a trader, one can easily identify at what stage he currently is. That will help to identify the things to be focused on to move to the next stage. At what stages are you at the moment? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
21
HOW TO GET RICH? 1. Money mindset is everything You need to have a positive money mindset when it comes to creating wealth. Everyone carries a money story and it’s your job to understand what yours is and if it’s holding you back. Reframing your story to a millionaire’s mindset is essential for success because rich people think differently. How to get rich can’t be a passing phase in your life; it takes work and commitment. 2. Millionaires still budget Hard to believe, but it’s true. Even millionaires follow a budget. The biggest secret on how to get rich and stay rich is spending less than you bring in. There will always be wants that exceed budget limits, even for millionaires, because there is not an unlimited supply of money. 3. Money management is key Good money management is so important to get rich and stay rich. Money management is a behavior and habit. You need to be mindful of where you are investing and spending your money. There is a specific strategy to growing your wealth and maintaining it and you must follow it like you do a workout regime. 4. Invest your money for growth Investing in assets that will appreciate over time and provide you with a return on your investment such as dividend or interest payments is smart. The goal is to build your asset portfolio and make it so strong that you can live off the passive income in your retirement. 5. Build your business around your personal financial goals As a business owner you have more control over the money you make versus being an employee with a set salary. If you want more money in your pockets, you can increase your revenue and your profit margins to ensure you are taking home more money. The more profits you have in your business the more you can pay yourself a dividend or bonus, depending on the legal structure of your business. 6. Create multiple income streams Smart business owners create more than one income streamas it protects them from fluctuations in the market. That means if one source of revenue dries up due to market conditions, other sources of income can protect you from a loss. 7. CONCLUSION: The bottom line is that knowing how to get rich is something that is learned. There are no guarantees that if you start a business that you will get rich because even the best business ideas fail due to poor execution. But if you educate yourself and get help in making your business a success, you will increase your chances of success.
Education
by ProSignalsFx
3