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Realities vs. Trading Myths. This one is for beginners!Hello traders, today we will talk about Myths and Reality of Trading. As you may already be aware, there are a lot of misconceptions that new traders encounter before they begin their trading careers. The following interpretations of those statements are presented on the layout: 1) The majority of individuals believe that trading is simple and that they can immediately stop working or doing anything else in order to make a living off of trading. In fact, he or she MUST have a backtested strategy and have sufficient industry knowledge in order to be successful, reliable, and a full-time trader in general. Keep in mind that achievement takes time, but it is totally worthwhile! 2) "Trading is like a casino" is a statement we frequently hear. This phrase is frequently used by only two types of people: those who have never been able to succeed in this field and those who have no plan or notion of what they are doing. Never open a position based on the outcome of a coin toss or what other people are saying. A trader may be inspired to open a position on a certain security by the ideas and analysis of others. 3) No matter what line of work one is in, including trading, one can never become wealthy in a single day. A qualified lawyer must practise for at least six years before becoming a licenced surgeon, which takes between 10 and 14. What gives you the impression that you can master trading in a matter of weeks or months? 4) Use a Stop Loss at all times to prevent substantial losses, regardless of the circumstance. Regardless of whether liquidity hunt occurs or not, it is always necessary to keep secure. 5) Risk management always takes precedence over victory percentage. Imagine your next 10 trades have a 1:3 Risk-to-Reward ratio with a 50% win rate. This implies that you will win 5 and lose 5. Let's imagine we choose to stake 1% of our capital on each deal. If we quickly calculate the numbers, we can see that with a 50% win rate and a 1:3 RR, our next 10 transactions will net us a tasty 10% return. Of course, this is not always the case because there are various things to take into account, including spreads, charges, pip value, etc. This is a great illustration to get the point across, though. 6) A significant portion of traders prefer trading the "Smart Money" concept, which is ostensibly the closest thing we have to institutional trading, over the "Retail Way" because they find it to be more profitable. The main line is to pick a method that works best for you and stick with it while adjusting it as you go. Changing tactics every week or month won't help one become consistent. You must commit to and stay to a single trading strategy. 7) Many beginning traders tend to increase their risk in attempts to make more profits. This approach is so risky and totally wrong. If one is willing to make more money trading, it is important that he or she increases the input, and not the risk. This chart is just for information Never stop learning I would also love to know your charts and views in the comment section. Thank you
Education
by CRYPTOMOJO_TA
6
EMOTIONAL STATES OF A TRADERHello traders, today we will talk about EMOTIONAL STATES OF A TRADER #1 Optimism – Everything starts with a positive outlook or a hunch that will lead traders into buying a stock. #2 Excitement – Things start to move the way we want them to you feel giddy because of it. This is where we start hoping and anticipating that we are possibly making a success story in the stock trading world. #3 Thrill – The market is continually going in the direction favorable to you. At this point, you are starting to feel that you are too smart. This is the stage where we are fully confident with the trading system that we have. #4 Euphoria – This is the point where both the maximum financial risk and maximum financial gain are marked. As the investments you made start to turn to easy and quick profits, we simply ignore the risk’s basic concept. At this stage, we start trading at every opportunity we see with the aim of making bucks. #5 Anxiety – The market starts to turn around. The market is starting to get back your hard-earned gains. However, this is new to us, we still believe with the trend we have seen before and still trade. #6 Denial – We still think that the market simply does not turn as quickly as we hoped. There must be something wrong is what we keep on believing. #7 Fear – Reality finally sets in and you now realize that you are not that smart after all. From being confident, you are now confused. We know that we should start getting out with a small profit but we just cannot bring ourselves to move on. #8 Desperation – At this point, all of your gains are lost. Without knowing what to do, we attempt to do things that will leverage our position again. #9 Panic – This is the most emotional stage as this is where we are hopeless and clueless. We feel like we lost control and now are left at the mercy of the market. #10 Capitulation – This is where we reach our braking point and start selling our position for whatever price so as we can get out and lose no more. #11 Despondency – After our exit, we now view the market as something not for us and we develop a phobia of buying stocks. #12 Depression – We drink, pray or cry. We think we are so dumb and we start to analyzing where we went wrong. This is where true traders are born. #13 Hope – We realize that the market has a cycle, which then renews our hope and we believe that we can still do it. #14 Relief – The market turns positive once again. We are seeing the coming back of our prior investment and we now have our faith in it back. The cycle will then start all over again and it is up to you how to play it this time. This chart is just for information Never stop learning I would also love to know your charts and views in the comment section. Thank you
Education
by CRYPTOMOJO_TA
4
Why You Should Never Hold on to Your Positions Beyond a Certain Good day, traders. I'd like to use this opportunity to advise both new and experienced traders alike that holding (hodling) your position is not recommended beyond a certain point. According to percentage calculations, the return required to recover to break-even increases at a considerably faster pace when losses grow in size (due to compound interest). It goes downward after a loss of 10% because a gain of 11% is required to make up for it.When the loss is 20%, it takes a 25% gain to make up the difference and return to break-even. To recoup from a 50% loss, a 100% gain is needed, and to reach the initial investment value after an 80% loss, a 400% gain is needed. Investors who experience a bear market must understand that it will take some time to recover, but compounding returns will aid in the process. Think about a bear market where the value drops by 30% and the stock portfolio is only worth 70% of what it was. The portfolio increases by 10% to reach 77%. The subsequent 10% increases to 84.7%. The portfolio reached its pre-drop value of 102.5 percent after two further years of 10 percent gains. Consequently, a 30 percent decline requires a 42 percent recovery, but a four-year compounding rate of 10 percent returns the account to profitability.I will be doing a second part to this post on the idea of "DOLLAR COST AVERAGING" (DCA). The math behind stock market losses clearly demonstrates the need for investors to take precautions against significant losses, as depicted in the graphic above. Stop-loss orders to sell stocks or cryptocurrencies that are mental or limit-based exist for a reason. If the market is headed towards a bear market, it will start to pay off once a particular loss threshold is reached. Investors occasionally struggle to sell stocks they enjoy at a loss, but if they can repurchase the stock or cryptocurrency at a lesser cost, they will like it. Never stop learning I would also love to know your charts and views in the comment section. Thank you
FX:XAUUSDEducation
by CRYPTOMOJO_TA
2
How to Avoid Falsa Breakouts and Breakdowns?Hello traders, today we will discuss how to Avoid Fails Breakouts and Fails Breakdowns. Have you ever witnessed a significant resistance level being broken and opened a long trade just before the market made a sharp move to the downside? Have you ever entered a short position after seeing the price break-through support only to watch the market rebound? You are one of many false breakout victims, so don't feel bad. It might be challenging to learn how to recognise these things. Continue reading as we talk about fakeouts and breakouts and introduce two potent indications from the @CRYPTOMOJO_TA team that can assist you in staying on the right side of the market and avoiding more suffering. As shown above, the answer to this issue is actually quite straightforward. Waiting until the candle closes to determine the strength of the breakout is preferable to acting on trade as soon as the price breaks a crucial level. Therefore, it is not a good idea to position entry orders above or below support or resistance levels in order to automatically enter a breakout trade. Entry orders allow us to become "wicked" into breakout trades that never occur. This indicates that the only way to successfully trade breakouts is to be seated in front of our trading terminals and prepared to take action as soon as the candle closes in the breakout zone. When the candle goes out, we can How to avoid a false breakout It can be almost impossible to tell a true breakout from a failed break if you don’t know what you’re doing. Here are four ways to avoid a failed break: Take it slow One of the simplest ways to avoid a false breakout is also one of the most challenging for many traders and investors – to simply wait. Instead of buying into the trend the moment your asset breaks through its support or resistance level, give it a few days (depending, of course, on your trading style and its timeline) and watch as, often, the failed breaks simply weed themselves out. Watch your candles A more advanced version of waiting it out, a candlestick chart can come in handy. When you suspect a breakout is happening, wait till the candle closes to confirm its strength. The stronger the breakout appears, the more likely it’s not a failed break. While this can be an effective way to identify false breakouts, many traders and investors don’t have the time to sit and watch their chosen chart around the clock. That’s why, with us, you can set alerts to notify you of the specific market conditions you’re waiting for. In the case of a breakout, for example, you’d create an alert based on the candle’s close price, to notify you of any potential breakouts. Use multiple timeframe analysis Another efficient way to identify breakouts, and what of those are likely failed breaks, is multiple timeframe analysis. This entails watching your chosen market using a variety of different timeframes. When using this technique, you’d likely spot the potential for a breakout in the short term, then ‘zoom out’ to view that same market over a week, a month or even longer before opening a position. This helps with identifying a false breakout because you’re paining perspective of your asset over both the longer and shorter term. Studying its patterns can show if what you think is a breakout is actually significant in the context of that market. Know the ‘usual suspects Some patterns in charts can indicate the likelihood of a false breakout. These include ascending triangles, the head and shoulders pattern and flag formations. Learning how to identify these patterns can help you to tell the difference between a breakout and a false breakout, as these three formations are often associated with failed breaks. For example, ascending triangles are indicators of a temporary market correction, rather than a true breakout. How to trade a false breakout If you’re a trader, you may want to use a false breakout as an opportunity to go short, making a profit or loss from predicting that a market’s price is about to drop from its current high. Or, you could use it as an opportunity to hedge – going long in case it’s a true breakout and going short on the same market in case of a failed break. To trade a false breakout you’d: Create a live CFD trading account Do technical analysis on your chosen market to identify false breakouts Take steps to manage your risk, including stop orders and limit orders Open and monitor your first trade How to trade breakouts Here’s how to trade breakouts with us: Create a live account or practise first with a demo account Learn the signs of a market about to break out – you can find out far more about breakouts by upskilling yourself on IG Academy Open your first position Plan your exit from the position carefully, including setting stop orders and limit orders Take steps to manage your risk Everything you need to know about trading breakout stocks False breakouts summed up A false breakout is a significant movement out of a market’s normal support or resistance levels that don’t last – hence it ‘fails’ These can cause costly mistakes for traders, thinking a market has hit a true breakout and to go long, only for it to lose momentum shortly afterwards You can avoid false breakouts – or trade them intentionally – by studying your chosen market and knowing the chart patterns timeframes and other signs of a failed break With us, you can trade on breakouts and failed breaks using CFDs. This chart is just for information Never stop learning I would also love to know your charts and views in the comment section. Thank you
BITSTAMP:BTCUSDEducation
by CRYPTOMOJO_TA
8
Support and Resistance is the name of the gameHi all, below is an article that I learned years ago and that has contributed massively to my trading success over the years and I would like to share with you. Due to the rules at tradingview, I cannot post the link so I will write it here. When it comes to trading support and resistance is the name of the game and support and resistance comes right off the chart. Name any indicator you can imagine, any concept of data crunching you think of, they all use the Open, High, Low, or Close from whatever time frame they are analyzing. In short, they get their data from the chart. Every indicator, algorithm, volume analysis, Market Profile, or Fib level, all seek to do the same thing, “FIND SUPPORT OR RESISTANCE”! Moving averages, traders try to use them for support and resistance. Bollinger bands, Keltner Channels, MA Envelopes, they use them to try to find support and resistance. No matter what, all methods ultimately seek to find the support or resistance from which traders will enter, manage, and exit their trades. Contrary to popular belief, indicators, if used correctly, DO NOT identify support or resistance. Indicators DO NOT time your trades. Indicators if used correctly are “TRADE FILTERS”. They merely give us permission to buy or sell support or resistance once WE have identified it, not a piece of software. It does not matter what you put on the bottom of your chart if you don’t know how to read the top half of the chart you will not make it in this business. That is our focus and that is what we teach, how to correctly get a “READ” on the market by understanding how Market Structure works. Key Points: All trading is about support and resistance: Indicators DO NOT identify support or resistance or time your trades. The majority of traders use indicators to find support or resistance, the majority of traders lose Indicator do not identify support or resistance, they are merely trade filters If you don’t know how to properly read the top half of the chart, then it does not matter what you put at the bottom of the chart. Trading at its basic essence is about knowing with a high probability where buyers are most likely to come in so we can buy, or where sellers are most likely to come in so we can sell, with a level of confidence that the trade will produce some form of profits while we manage our trades to longer term targets. If you don’t know how to spot support or resistance, how will you know when the market is testing it? If you don’t know where the market is most likely to go, how will you know when it gets there? How will you know where the best exit is in real time? Therefore, every day when you check the market opening. Do not ask yourself if you could trade today. Ask yourself if you could find support and resistance today. Remember, BUY AT SUPPORT & SELL AT RESISTANCE.
OANDA:XAUUSDEducation
by UnknownUnicorn25937650
BTC/USDBTC still inside descending channel It was really boring phase inside this range What next ? Can Breakout this time or dump again ? According to chart BTC has this time a higher chance to Breakout because this is the 5th time to test resistance and potential inverse head and shoulders Important Resistances : 1st : between 38k-39k 2nd : between 41k-42.5k (daily close above this bulls will have the upper hand) What can we advice : extended patience .. opportunities are endless but your money not Good luck every one and have nice weekend
CRYPTOCAP:BTCShort
by DeclanBrock
4
EURUSD SHORT: TRIGGER AND ENTRY USING RISING WEDGE PATTERN Price sold below the RWP (RISING WEDGE PATTERN) to 1.20952 before a pullback to retest lower channel trend line. A retest of the lower channel trend line is the trigger for a short entry which is bearish until the next logical support region. The first support region is at 1.20867-1.20789 and the second at 1.20269-1.20198 region on the chart. The strength of a RWP depends on the measure of convergence of the trend lines at the apex of the channel trend. This is a good pattern for a short entry within a bullish trend. Hope you've enjoyed the read, more RWP analysis ideas are welcomed!
by dvburn3r
Will AUD Trump The USD - Short To Long Term Analysis Of AUDUSDFrom a daily perspective AUDUSD has been in a in a clear uptrend, displaying higher highs and higher lows which, looks to continue rising, after potentially making a new higher and a further higher high. What this can means for short to medium term traders is that there could be shorting oppourtunities down to around 0.7650 and 0.7500, a confirmation of this will be a break of the daily double top neckline, down to the daily support 0.7650 and outer trendline. As previously stated, a break of daily support at 0.7650 and the outer trendline will take price down to 0.7500, this is where I'll be looking for longs up to monthly resistance at 0.8000. 0.8000 is a interesting target price at it's both point A of the weekly decending trendline and the D1 fib extention.
by DANIELDOTS
2
Why most people fail as retail traders?I see two main reasons which complement each other for the high rate of failure. First and foremost, the media and the industry promote this idea that it’s easy to become a profitable trader and anybody can go it. This is, of course, not true. Theoretically, anybody can do it if willing to put the effort and approach it as a business. Practically almost nobody approaches trading with the same rigorousness as any other professional endeavor. Let’s put aside the first reason, about which there is not much we can do. A big chunk of the industry relies on peoples being naive and we’re not going to change that. On top of the first reason, we have a second reason related to people themselves. Most of those who try trading financial markets simply don’t manage their emotions and risk well enough to survive the learning curve. Managing your own emotions turns out to be a complex endeavor and constantly changing market conditions lengthen the learning curve. One of the things that makes this business so attractive is also the main thing that makes it so difficult to master. The direct and sometimes violent feedback you receive from the market, after each trading decision, has an astonishing impact on a human’s ability to keep his psychological well being in check and control his own reactions. It has the potential to disrupt executive functions and trigger instinctual “fight or flight” responses. This leads to emotional trading or trading on tilt which quickly generates more losses than any other mistake you could make in this business. Most other jobs have a protective buffer zone between usual day to day work decisions and the ultimate feedback — end of the month paycheck. This profession doesn’t. Every little call you make has an immediate impact on your capital. Every little mistake can take a portion of your capital away and every good decision can bring it all back and more. This kind of psychological exposure is heavily distressful and being aware of its mechanisms makes a huge difference. So … psychology differentiates the pro. Don’t get me wrong … professional discretionary traders are not emotionless but are much more aware and in control of their reactions. The successful pro deeply understands that trading is mainly about people's perceptions and the rest are just details. You may ask yourself how can such a level be reached? A starting point is to stay away from any market, financial instrument, time frame, trading technique, or any combination of those that doesn’t fit who you are deep inside. The least the exposure to triggers that can awake the demons within, the best. Always seek strategies that you understand and match your inner self. For example … if you are impatient trade shorter time frames, if you are very risk-averse don’t use huge margin, if you are risk-averse but you don’t have enough capital use margin with a tight risk management (maybe options), if you have a statistical mind try quantitative approaches etc. There are infinite possibilities to adapt to yourself and is a must to do it if you want to have a chance. It always amuses me to see the vast majority of educational resources geared towards what market does when most of the success in this business is knowing how you adapt to the market, whatever it may do. And, of course, the market is, more or less, the other traders.
COINBASE:BTCUSDEducation
by Mihai_Iacob
1
Gold off to another take off?OANDA:XAUUSD Gold seems to be respecting the support/resistance areas confirmed by: trendlines, support, pivot standard, and Fibonacci levels. It is a great time to be alive and see gold with a support at 1883 on the 15 min chart, make sure to go through all time frames for stronger levels. Fundamentals are also at play here since no good news surfacing the planet yet. There is a list of good news headlines to watch out for that could make this downtrend: Covid-19 Vaccines; End of Recession; DXY uptrend; US Elections,which we will probably see August or September. When you have two or more levels come together at a certain point on your chart that is called confluence zones, they can further validate the areas. If you liked the chart please leave a thumbs up and check my previous analysis as it will motivate me to continue. Have a great weekend & Happy Trading! About my style of analysis, I like a simplistic route of Naked Forex and Candlestick patterns. I do combine tools, but I don't like to base my analysis on indicators alone even though they are great help for confirmations sometimes. While embarking on this trading journey remember to pick whatever style works for you, everyday is a learning experience. If you have any trading ideas please drop in the comments. This chart is for educational proposes only, this is not financial advice. KEY LEVELS R3 1937.47 R2 1917.95 R1 1902.75 PP 1883.23 S1 1868.03 S2 1848.51 S3 1833.31
OANDA:XAUUSDLong
by Cangaceiro
USDCAD Go Long Entry Trigger Not Met Yet Of PostingThis trade looks very promising. The market is currently moving in a descending triangle as shown. This means lower lows and lower highs. We are currently approaching the low of the edge of the triangle. Secondly, the 50 Period EMA has been dis-respected therefore we expect it to bounce back from it. Thirdly, the market is moving above the 200 EMA supporting the trend that the market is moving in the uptrend. We are currently looking for an entry point to go long which could include a MACD signal overlap (which is looking very probable and soon) and some sort of bullish candlestick pattern.
Long
by MarlzRana