UNDERSTAND MACRO-FINANCE!WHILE ALL PRICES HAVE RISEN SINCE 1913 (THE CREATION OF THE FEDERAL RESERVE), SOME HAVE DONE SO MORE THAN OTHERS!
THE FINANCIAL SYSTEM HAS BECOME SO LARGE AND COMPLEX THAT IT IS IMPOSSIBLE TO TRACE THE ACTUAL SIZE OF THE ENTIRE MONEY SUPPLY ( M3 )!
WHEN IT COMES TO ESTIMATION, YOUR GUESS IS AS GOOD AS ANY EXPERT'S!
THE ONLY WAY TO DETERMINE IF M3 IS RISING OR FALLING IS BY LOOKING AT THE PRICE OF OIL , THE PRICE OF THE 1-MONTH TREASURY BILL AND THE YIELD CURVE, ALL OF WHICH INDICATE THERE WAS A DEFLATIONARY PERIOD AT THE BEGINNING OF 2020!
STOCKS, WHICH ARE THE MOST FINANCIALIZED ASSET CLASS, HAVE SEEN THE GREATEST INCREASE IN PRICE, BECAUSE MUCH OF THE CREDIT THAT THE FINANCIAL SYSTEM CREATES BIDS UP THEIR PRICE BEFORE ANYTHING ELSE!
COPPER AND OIL , THE PRICES OF WHICH ARE MUCH MORE IMPACTED BY SUPPLY AND DEMAND CONDITIONS WITHIN THE REAL ECONOMY, HAVE BARELY MOVED IN COMPARISON AND REFLECT THE LACK OF REAL ECONOMIC GROWTH FOR THE PAST HALF CENTURY!
GOLD , FOR ANYONE WHO CONSIDERS ITS PRICE EVEN REMOTELY ELEVATED, HAS BARELY EVEN KEPT UP WITH THE INCREASE IN M2 (WHICH INCLUDES PHYSICAL CURRENCY, CHEQUING ACCOUNTS AND SOME SAVINGS ACCOUNTS).
THROUGHOUT HISTORY, THE MARKET CAPITALIZATION OF GOLD HAS ALWAYS EVENTUALLY MATCHED THE TOTAL MONEY SUPPLY, AND THEREFORE THE PRICE OF GOLD MUST INCREASE BY SEVERAL TIMES EVEN FROM HERE TO BE VALUED CORRECTLY!
Metals
Risk management in trading €$¥Hello my friend | Welcome Back.
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What is market risk?
Market risk is the capacity for your trades to result in losses due to unfavourable price movements that affect the market as a whole. There are several factors that can cause market risk, but movement in any of the following can exert major pressure:
Stock prices
Interest rates
Foreign exchange rates
Commodity prices
What is liquidity risk?
Liquidity risk is the possibility that you may be forced to trade an asset at a worse price than you anticipated. For example, when trying to sell an illiquid stock you may struggle to find a buyer, meaning that you have to sell your stock for less than its current market value.
In some markets, liquidity risk can even mean that your trade negatively affects the price of the asset you are buying or selling. This is generally more of an issue in emerging or low-volume markets, where there may not be enough people in the market to trade with.
How to manage your risk
Risk management is the process of identifying, analysing and reducing risk in your trading decisions. Usually, it involves developing a trading plan that helps you decide what to trade, when to trade and where to place your stop losses. Here are three tips on how to manage risk:
1. Assess risk vs return
In general, trading strategies focus on weighing up a trade’s potential risk against its potential return. If a trade has greater risk, it should carry the chance of a greater return to make that risk worthwhile.
For example, government bonds are considered a safe, low-risk investment – but when compared to corporate bonds, they offer lower rates of return. This is because the risk of investing in a corporate bond is higher, so to compensate for the added risk investors are offered a higher rate of return.
2. Understand each market’s risks
It’s important to ensure you understand the factors that influence different markets, so you can base your dealing strategies on relevant information. Improve your success rate by learning more about the markets you’re dealing on and exploring new strategies.
Our trading skills section is a great place to learn about all the markets we offer.
3. Keep learning
Learning to trade successfully while managing your risk is a continual process – and one of the best ways of ensuring that you are always improving is by starting a trading diary. By keeping track of which trades and strategies have worked in the past, you can build on your successes and learn from your failures.
Head and shoulders typesHello my friend | Welcome Back.
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The head and shoulders chart pattern is a popular and easy to spot pattern in technical analysis that shows a baseline with three peaks, the middle peak being the highest. The head and shoulders chart depicts a bullish-to-bearish trend reversal and signals that an upward trend is nearing its end.
The pattern appears on all time frames and can, therefore, be used by all types of traders and investors. Entry levels, stop levels and price targets make the formation easy to implement, as the chart pattern provides important and easy to see levels.
What Are Fibonacci Retracements and Fibonacci Ratios?How Fibonacci Ratios Work
Before we can understand why these ratios were chosen, let's review the Fibonacci number series.
The Fibonacci sequence of numbers is as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. Each term in this sequence is simply the sum of the two preceding terms, and the sequence continues infinitely. One of the remarkable characteristics of this numerical sequence is that each number is approximately 1.618 times greater than the preceding number. This common relationship between every number in the series is the foundation of the ratios used by technical traders to determine retracement levels.
The key Fibonacci ratio of 61.8% is found by dividing one number in the series by the number that follows it. For example, 21 divided by 34 equals 0.6176, and 55 divided by 89 equals about 0.61798.
The 38.2% ratio is discovered by dividing a number in the series by the number located two spots to the right. For instance, 55 divided by 144 equals approximately 0.38194.
The 23.6% ratio is found by dividing one number in the series by the number that is three places to the right. For example, 8 divided by 34 equals about 0.23529.
Fibonacci Retracement and Predicting Stock Prices
For unknown reasons, these Fibonacci ratios seem to play a role in the stock market, just as they do in nature. Technical traders attempt to use them to determine critical points where an asset's price momentum is likely to reverse.
Fibonacci retracements are the most widely used of all the Fibonacci trading tools. That is partly because of their relative simplicity and partly due to their applicability to almost any trading instrument. They can be used to draw support lines, identify resistance levels, place stop-loss orders, and set target prices. Fibonacci ratios can even act as a primary mechanism in a countertrend trading strategy.
Fibonacci retracement levels are horizontal lines that indicate the possible locations of support and resistance levels. Each level is associated with one of the above ratios or percentages. It shows how much of a prior move the price has retraced. The direction of the previous trend is likely to continue. However, the price of the asset usually retraces to one of the ratios listed above before that happens.
The following chart illustrates how a Fibonacci retracement appears. Most modern trading platforms contain a tool that automatically draws in the horizontal lines. Notice how the price changes direction as it approaches the support and resistance levels.
Fibonacci Retracement Pros and Cons
Despite the popularity of Fibonacci retracements, the tools have some conceptual and technical disadvantages that traders should be aware of when using them.
The use of the Fibonacci retracement is subjective. Traders may use this technical indicator in different ways. Those traders who make profits using Fibonacci retracement verify its effectiveness. At the same time, those who lose money say it is unreliable. Others argue that technical analysis is a case of a self-fulfilling prophecy. If traders are all watching and using the same Fibonacci ratios or other technical indicators, the price action may reflect that fact.
The underlying principle of any Fibonacci tool is a numerical anomaly that is not grounded in any logical proof. The ratios, integers, sequences, and formulas derived from the Fibonacci sequence are only the product of a mathematical process. That does not make Fibonacci trading inherently unreliable. However, it can be uncomfortable for traders who want to understand the rationale behind a strategy.
Furthermore, a Fibonacci retracement strategy can only point to possible corrections, reversals, and countertrend bounces. This system struggles to confirm any other indicators and doesn't provide easily identifiable strong or weak signals.
The Bottom Line
Fibonacci trading tools suffer from the same problems as other universal trading strategies, such as the Elliott Wave theory. That said, many traders find success using Fibonacci ratios and retracements to place transactions within long-term price trends.
Fibonacci retracement can become even more powerful when used in conjunction with other indicators or technical signals. Investopedia Academy's Technical Analysis course covers these indicators as well as how to transform patterns into actionable trading plans.
How to Trade the Head and Shoulders PatternThe head and shoulders chart pattern is a reversal pattern and most often seen in uptrends.
Not only is head and shoulders known for trend reversals, but it’s also known for dandruff reversals as well.
In this lesson, we’ll stick to talking about trend reversals and leave the topic of dandruff for another time.
Head and Shoulders
A head and shoulders pattern is also a trend reversal formation.
It is formed by a peak (shoulder), followed by a higher peak (head), and then another lower peak (shoulder).
A “neckline” is drawn by connecting the lowest points of the two troughs.
The slope of this line can either be up or down. Typically, when the slope is down, it produces a more reliable signal.
In this example, we can easily see the head and shoulders pattern.
The head is the second peak and is the highest point in the pattern. The two shoulders also form peaks but do not exceed the height of the head.
With this formation, we put an entry order below the neckline.
We can also calculate a target by measuring the high point of the head to the neckline.
This distance is approximately how far the price will move after it breaks the neckline.
You can see that once the price goes below the neckline it makes a move that is at least the size of the distance between the head and the neckline.
We know you’re thinking to yourself, “the price kept moving even after it reached the target.”
And our response is, “DON’T BE GREEDY!”
Inverse Head and Shoulders
The name speaks for itself. It is basically a head and shoulders formation, except this time it’s upside down.
A valley is formed (shoulder), followed by an even lower valley (head), and then another higher valley (shoulder). These formations occur after extended downward movements.
Gold -- Upgrade Your Trading To Higher level By Following This🗒 Just browsing through my analysis means a lot to me.
➡️ Please follow the analysis very carefully and every detail of the chart means a lot. And always entry depends on many reasons carefully studied
Always enter into deals when there are more than 5 reasons
combined
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How To Trade Like big Boy's - and Have Full Vision To Compete The Market
By Using Gann Square Fixed
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First Step -- Chose Good Low Far From Current Price Area --
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Second Step - First Vertical line Should be on Next Bottom
That before the Sharp Movement
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Step 3
Reversal Zone Here as we Can See
----- Price Sharp Movement when Enter this
Time Zone + Support line + Square line
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Step 4 We Can Easly See a Very Good Support line
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Step 5 We Can Easly See a Very Good Support line
With Time Zone Here - So Good Reversal
this mean Reversal Zone ..
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you Can Mix this Strategy with Trend analysis and your own Style to maximum your Earning's
Why chasing % should be your focus and not pips!Here we look at 3 traders, all claiming to have a winning trade with 100 pips - however, with very different % gains on their accounts.
The main part of trading is profitability, you can not pay your bills with pips.
This explains what you need to focus on and be aware of!
Hope it helps,
Regards
Darren
Win rate. How to stay if profit zone...This painting is quite simple, but many novices can't use it because they don't have the patience.
So, they close their profitable positions with 1/1 or 1/2 risk/reward ratio.
But hold losses for a long time.
Hope this post will save your money and time.
You can be in profits even with low persentage of successfull trades but as you see only with 1/5 ratio!
Keep calm! Use predictable ratio! Become better every day!
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Thanks for your support!
Basic explanation of elliot wave using GOLD Here's a short video for any new traders who want to learn the basics of elliot wave analysis. I made this for a friend but thought I'd just post it on a public platform so it could help others as well.
Pardon the quality! I've never made a video before so shall continue to improve in the future :)
What is Gold? Why Gold is deflationary and grow up in the time!!In this technical analysis, I'm enfocous in Gold.
It's simple. Gold is money, when in the pass Gold was used as money to keep in our hand to negotiate the object's value. But in the humanity history, the bankers are smart to create the paper money, now this paper money is called US Dollar, Euro, Sterling Pound, Australina Dollar. etc.... No matter what currency you have, because it's have risk to save your money in the bank.
So, guys, this analysis is for you if you want to invest in Gold. The problem of the situation is that people are poors because the bankers created money of any, it's mean that central banks print more money to pass hand to hand on the governmet and they have a national debt that the country need to pay, but it's not payable becuase while more money have in the circulation, the currency value is devaluated through the time, and then create risk for employers, bussiness and society, that they doesn't understand it and created poors in the society.
It's simple, Gold = Money and Money = Debt, while more money have, more debt have the world and we need to out to work to pay this national debt to been slave.
So, guys, for me it's important to know these concept, also if you're new here, I invited you to follow me for tradings, investments and more.
I add important links to see it my other analysis related.
I see a Gold in 10 years near of $8,000 USD