Get started

NEW

10 Reasons New Traders FailOvertrading Overtrading often occurs when a trader feels compelled to be constantly active in the market, mistakenly equating frequency with profitability. It's an emotional reaction, driven by factors like the thrill of making trades, a desire to recoup losses quickly, or the erroneous belief that high trading volume automatically equates to increased profits. Overtrading can easily lead to unnecessary and costly mistakes, both in terms of the transactions themselves and the psychological stress associated with constant activity. Moreover, overtrading can lead to higher transaction costs due to increased brokerage fees and the potential for slippage, which is the difference between the expected price of a trade and the price at which the trade is executed. Additionally, overtrading can cause trader fatigue, where one becomes so engulfed in making trades that they lose sight of their broader strategy and make ill-informed decisions. Traders need to avoid the overactivity trap and focus on careful, thought-out trades based on research and analysis. Chasing Hot Tips Chasing hot tips can be alluring for both new and experienced traders. The promise of a quick profit based on so-called "insider information" can be hard to resist. However, trading on rumors or unverified information is fraught with danger. The information could be incorrect, misconstrued, or already priced into the market, which could lead to losses rather than the anticipated profit. In addition, relying on hot tips can divert a trader's focus from developing their own analytical skills. Instead of learning how to interpret market data, understand company fundamentals, or analyze industry trends, they become reliant on the advice of others. This makes their trading success dependent on factors outside of their control. Traders should focus on honing their own research and analytical skills, which allows for greater control over their trading decisions and independence from unreliable tips. Ignoring Risk Management Risk management is a key component of successful trading. Traders who ignore risk management rules can experience severe losses, even if they have a sound trading strategy. One common form of risk management is the use of stop-loss orders. These orders allow traders to limit their losses by setting a predetermined exit point for a trade should the market move against their position. Another aspect of risk management is diversification. Diversification involves spreading your investments across various assets, sectors, or geographies to reduce the risk of a single investment or group of investments performing poorly. Concentrating too much capital in a single trade or investment increases the risk of significant losses. Furthermore, allocating an appropriate amount of capital to each trade is also a crucial risk management strategy. Even experienced traders can make incorrect market predictions, and it's important to ensure that a single bad trade does not wipe out a significant portion of the trading capital. Emotional Trading Emotional trading is one of the most common pitfalls for traders. Fear and greed are powerful emotions that can significantly impact trading decisions. Fear can cause traders to panic and sell their positions at a loss during market downturns, while greed can make traders overconfident, leading them to hold onto winning positions too long or take on risky trades in the hope of higher profits. Impatience is another emotional trap that can lead to overtrading or premature entry and exit from positions. Trading requires patience to wait for the right trading opportunities and to allow profitable trades to reach their full potential. Emotional decisions often lead to poor trading outcomes and can be mitigated by following a strict trading plan and using tools like stop-loss and take-profit orders. Moreover, learning to manage emotions is an ongoing process for traders. Techniques such as meditation, regular breaks, and maintaining a healthy lifestyle can help manage stress levels and keep emotions in check. It's also crucial to review trades regularly and learn from both successes and failures. Lack of Trading Plan Having a well-defined trading plan is crucial for trading success. The plan should detail the trader's financial goals, risk tolerance, criteria for entering and exiting trades, and strategies for different market conditions. Without a clear trading plan, traders risk making impulsive decisions, veering off their initial strategy, and potentially suffering significant losses. A trading plan acts as a roadmap, guiding the trader through the market's volatile landscape. It can help maintain discipline, particularly in stressful market conditions, by providing a predefined framework for making decisions. This prevents reactive decision-making based on short-term market movements or emotional reactions. A well-crafted trading plan should also be flexible, allowing the trader to adapt to changing market conditions. Regularly reviewing and updating the plan can help traders stay aligned with their long-term goals and ensure that their strategies are still effective. Using Excessive Leverage Leverage can be a double-edged sword in trading. While it can amplify potential profits by allowing traders to control larger positions with a smaller amount of capital, it can also magnify losses. Traders who use excessive leverage can find themselves facing losses that exceed their initial investment, leading to significant financial stress. Understanding the implications of leverage is crucial. Traders must be aware that while leverage can magnify profits, it also increases the potential for losses. Therefore, it's essential to manage leverage carefully and consider it as part of the overall risk management strategy. Furthermore, traders should consider their risk tolerance and the current market conditions before deciding on the level of leverage to use. In more volatile markets, using high leverage can be particularly risky. A conservative approach to leverage can help traders to navigate the markets more safely. Failing to Adapt The financial markets are dynamic and continuously changing, influenced by a myriad of factors including economic indicators, geopolitical events, corporate news, and investor sentiment. Traders who fail to adapt their strategies to changing market conditions can find themselves on the wrong side of the market, leading to potential losses. Staying informed about global and industry-specific news can help traders to anticipate market trends and adjust their strategies accordingly. Moreover, utilizing a range of analytical tools, including both fundamental and technical analysis, can provide insights into potential market shifts. However, it's important to balance the need to adapt with the benefits of maintaining a consistent trading strategy. Constantly changing strategies can lead to overtrading and inconsistency. Therefore, while it's crucial to adapt to significant market changes, it's equally important to stick to a well-defined trading plan and avoid knee-jerk reactions to short-term market fluctuations. Lack of Education and Practice Trading is a complex activity that requires a broad range of skills and knowledge. A lack of education and practice can leave traders ill-equipped to navigate the markets and can lead to costly mistakes. Understanding market mechanics, trading platforms, and various trading strategies is crucial for anyone hoping to trade successfully. Education should be an ongoing process for traders. The financial markets are constantly evolving, and successful traders are those who continually learn and adapt. This includes understanding economic indicators, developing technical analysis skills, and keeping up to date with market news. Practice is equally important. Using demo accounts or paper trading allows traders to test their strategies and gain experience without risking real money. These platforms simulate real trading conditions, providing an opportunity for traders to familiarize themselves with different trading situations and understand how they would react. Not Setting Realistic Expectations Setting unrealistic expectations about trading profits can lead to disappointment and may encourage risky trading behavior. It's important for traders to understand that trading involves substantial risk, and achieving consistent profits is challenging and requires a significant amount of time, effort, and discipline. While it's natural to aim for high returns, traders should also focus on risk management and capital preservation. Recognizing that losses are part of trading and learning how to manage them effectively is a vital part of achieving long-term trading success. In addition, traders should be patient and adopt a long-term perspective. It's unlikely to make substantial profits overnight, and attempting to do so can lead to overtrading or using excessive leverage. By setting realistic goals and maintaining discipline, traders can improve their chances of achieving sustainable profits over the long term. Herd Mentality Herd mentality refers to traders' tendency to follow the crowd rather than making independent decisions based on their own analysis. This can lead to inflated prices in the case of buying frenzies, or plummeting prices during panic selling. Either scenario can result in significant losses for traders who join the herd too late. It's crucial for traders to conduct their own research and analysis and to be confident in their trading decisions. While it can be helpful to be aware of market sentiment and trends, blindly following the crowd can lead to poor trading outcomes. Moreover, what works for one trader may not work for another due to differences in risk tolerance, investment horizons, and financial goals. Therefore, it's important for traders to develop their own trading strategies and to stick to their trading plan, regardless of what other market participants are doing. In conclusion, while the road to trading success is often filled with challenges and obstacles, the wisdom gained from understanding these potential pitfalls can significantly augment a trader's journey. The discipline and self-awareness fostered by managing emotions, sticking to a well-crafted plan, and avoiding the temptation to follow the herd will not only enhance trading success but also contribute to personal growth and emotional intelligence. Balancing the courage to take calculated risks with the humility to learn from mistakes fosters resilience. This resilience, paired with an insatiable appetite for learning and adapting, forms the bedrock of a successful trader's mindset. With these tools at one's disposal, navigating the turbulent waters of the financial market becomes a fulfilling endeavor, offering both financial rewards and valuable life skills.
BITSTAMP:BTCUSDEducation
by BiggWigg
4
Is this a new type of divergence? (widths of top looking structures seen in chart, but are they? could they be hiding their true identity and transgendering into bottoms right before your very eyes? Using an MRI Scan on the RSI, we can see it actually might be a WEAKER TOP, why does it look so small in the RSI? I think this might be a new type of divergence I discovered. The red marker indicates what looks like a "top" in the chart, but actually looks possibly more like a bottom-looking-structure, in the RSI. You can back test this yourself, look for dumps in the past, and compare, I can bet the Bottoms in the RSI will appear to be getting more narrow, and the tops becoming much wider and more pronounced before a dump. Just IMO & as always, HAPPY TRADING! :)
by UnknownUnicorn3237473
They say never buy a new stock I mean...unproven, unknown...the upside is outweighed by the downside. So instead of buying it under some random pretense of "the future"...I put it on my watchlist. I mean, who doesn't like a good space story. I know of no other launch sites in Canada and have never heard of any other companies...so at least they have the news portion, or at least whatever algorithm I'm plugged into. So MAXQ has a piece of ground they claim to be suitable for their launch site. How long does it take to build a launchsite? How would you know? When was the last one you know that wasn't monstrous built? Needless to say things usually take long and cost more...so the battle is uphill for the crew trying to send this ship to space. Anyone out there watching this? Any thoughts? Technicals? With my limited crayon based skills of trying to make patterns on charts I can offer no technical review of this stock....but wouldn't a space launch system in Canada be awesome?
NEO:MAXQ
by Honkytime
1
NVIDA - BULLISH SCENARIONVIDIA technical indicators suggest good conditions to seek 285-290 levels from March 2022. The dividend payout coming on the 7th of March might open a dip opportunity for the bulls. GeForce NOW | The Next Generation in Cloud Gaming is gaining significant momentum in the gaming community with the new subscription-based services and the demand for budget gaming setups since it only requires a wireless controller and a 2021 or later smart TV. Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.
NASDAQ:NVDALong
by legacyFXofficial
My Biggest New Trader Mistakes & Lessons LearnedI thought I'd share my experience with other New Traders (I'm still 'new', 2yrs in). I made all the classic mistakes and plenty more, my learning is only just beginning. Hopefully this educational post helps others new to trading. Use a Stop Loss So many times I didn't use a Stop Loss. One of the main reasons was I kept getting Stopped Out and then the price reversed, it made me paranoid. Also when the day changes at the start of the Asia session, or over the weekend with the gaps on market open, I thought I was better not having one. I've Learned: If you don't use a Stop Loss it's psychologically hard to get out of a losing trade and you can easily blow your account. I think it's OK to move the stops temporarily before the Asian open, but ideally the trade would only be left open if a) it's well in profit and b) the move looks likely to continue. Don't move your SL & TP I kept moving both of these stops, I either couldn't face the actual loss when a trade went bad (it seemed less real on paper and there was always 'the chance' it would come back in my favour) or I got greedy when the trade went in my favour and then before I knew it, it reversed and my profit was gone. I've Learned: Moving Stops and Targets risks profitable trades; it's psychologically damaging as it suggests lack of planning and strategy, this is gambling. On the other hand, having a plan and seeing it playout, however big or small is hugely satisfying and is the best confidence builder. Get In and Out I kept looking for the really big moves, and I had a few, but only a few. I believe the longer you're in a trade, the riskier it is due to the many factors that can affect price - Institutions, Fundamentals, Global Events, there are so many things that can turn a good strategy bad, and I lost money. I've Learned: There are so many trading pairs, so many options, there'll always be another trade. Staying in a trade for too long is leaving money on the table, when it could be in your account, getting out too early is annoying, but having profit on the trade is much more important. Leaving trades over a weekend I've left both winning and losing trades over a weekend, and many times previously winning trades went against me, and losing ones got worse. Price can be unpredictable due to fundamental changes over a weekend. I've Learned: On a Friday, unless 80% happy that your trade will continue in the right direction over the weekend, close it and review again after market open (you may lose a few but you will have banked profits or minimised losses in many cases). Keep Fundamentals in mind I follow some traders who don't seem to care about Fundamentals, but in that time I've seen many of their signals go bad because of big news. I think, that they think, that if the news is in their favour they reach target quicker. If it's not, they reach target slower, as the market has already decided future price regardless. I've seen fundamentals shape both shorter and longer term trends, they can easily cause reversals and commonly they cause spikes in the opposite direction from what you'd expect, before then moving as you'd expect, but this can be too late. I've Learned: Each pair / trade is different, however I've learned to take a pragmatic approach, often getting out of a trade before the news and waiting for the market to calm down before considering re-entering. This can mean missing out, but too many times I was on the wrong side of the news, I'm more profitable stepping back first. Have positive involvement in the TradingView community From time to time I see comments on Trader's ideas that are less than positive, as though the commentator can predict the future? As a community of retail traders we are up against the institutions and the big money movers who love to take retail traders' money, this means as retail traders we're all on the same team. The total value of all of our accounts is like comparing the size of an atom to a planet! I've Learned: If you don't like someone's idea, move past it, or discuss professionally. Be open-minded to ideas and celebrate success, 'like' ideas that you like and give positive comments where you agree, we're all in this together, and everyone is trying their best. Do your own research I signed up to loads of Telegrams and followed signals blindly, and it cost me a lot. It's too easy for people giving signals to only report on the successful ones. The community around trading, particularly TradingView is awesome but it can be confusing, for every chart, for every pair there is so much subjectivity. Previous price action does not dictate future price movement, if it did everyone would win. I've Learned: Don't put your destiny in the hands of others, read and learn as much as possible but create your own plan and strategy, it's much more rewarding, both psychologically and for me, financially. Take a Break I was watching the charts of my trades almost constantly, whether up or down I was watching them, but not doing anything. If losing (without a SL) I'd be watching hoping it would come back, if winning I'd often manually close too early, or leave it too long (FOMO) and it was too much and made no positive impact on my trading success, it just caused stress. I've Learned: To create my plan with all of these lessons in mind, and action it if the conditions are right. If I'm working on my personal trading development now, I'm looking for future trading opportunities, I'm setting alerts for future price action, I'm writing and publishing my ideas, and most importantly I'm taking a break to enjoy weekends, holidays and normal stuff! Writing and publishing this education article is really cathartic for me, it's helping me to keep embedding the lessons I have learned. The best lessons are the hardest ones, the expensive ones! I've just started publishing my ideas on here and I appreciate all the support I can get to becoming a better trader, hopefully one day I can be good enough to do this full-time. It'd be great to know if you've experienced these and other lessons as a new trader. Are there any more that you can share with me, and the rest of the TradingView community?
OANDA:XAUUSDEducation
by Finchcliffe
7
Litecoin will pass Bitcoin before EthereumA strong position at $70+ and thrusting upward at a weak $85 resistance line, Litecoin spirals up and out of the meme generation. With all indicators looking positive for the crypto industry... We must look to utility in the coming months for profitable gains, I believe, with crypto underdog quietly taking the lead... LITECOIN What we know: - BINANCE:LTCUSDT active (true) market cap is $2.3 billion if you do not include dormant/lost Litecoin from early adoption years. - COINBASE:LTCUSD circulating supply is 1/4 the scarcity of BINANCE:BTCUSDT - BINGX:LTCUSDT Volume / Liquidity is 1/10 of COINBASE:BTCUSD - KUCOIN:LTCUSDT market cap is less than 1/50 of INDEX:BTCUSD - BINANCE:LTCBTC scales BINANCE:BTCPERP on layer 2 using Lightning Network, a high speed / low fee P2P transaction protocol. - COINBASE:LTCBTC competes with other layer 2 protocols such as BITSTAMP:ETH2ETH and BINANCE:MATICUSDT but is wildly undervalued in market cap comparison All things considered, I obviously don't think anything will pass Bitcoin. However I do believe, competitively, Litecoin will outperform it's layer 2 competitors like Ethereum in the coming months/years just on basic fundamentals alone. My price target for Litecoin in 2023: $375 - $3500
Long
by UnknownUnicorn47199281
[2023] An unfortunate tale of up-and-coming mishaps.Dear readers, Unfortunately, we have failed to create our good fortune in 2022. The main reason most influencers, traders and market followers; kept the "Buy the Dip" ante; is due to most of us believing in crypto; but also the idea that if we didnt make it in 2022, the bearishness due in 2023 could become damaging to the long-haul. 2023 is the year the U.S infrastructure bill is set to kick in. This bill conveyed a number of new burdens to be carried by node operators, miners and services. The biggest one of them being the tax reporting requirements which are currently unfeasible. If it weren't sufficiently bad; we also have to remain aware of the tactics, government roll out of CBDC's, could translate into. From a support for crypto-currencies in order to drive CBDC adoption, to, a possible view of crypto-currencies cannibalizing into the market for CBDC's. We are now starting the year with bearish macro indicators. A FED that is still unwilling to stop tightening and an overall market sentiment of disappointed at no pause/break in Q4 2022. This sentiment finds further justification in the steep decline in $APPL stock. A stock that for long was seen as a barometer for tech and the one tech blue-chip the majority of funds from low-risk pension funds to high risk hedge-funds, saw as a must within any portfolio. With all this in mind, 2023 looks set to be the most bearish year to date. We are slowly entering a period in history, where people simple do not enjoy sufficient disposable income to pay for Netflix and Spotify.(Sharp users decline. Sufficient for Netflix to review its subscription model and possibly roll out an ads based subscription.) A period where credit card debt is ballooning, not due to spending propensity, but due to people relying on credit to pay monthly utility bills, mortgages and other credits due. All in all we must remain warry. Many things are set to break in 2023. Utilities are set to remain climbing. Central-banks remain unwilling to change stance. It is now not the moment to attempt buying crypto or risk-on assets. Trade safe, and if you only know how to trade crypto, consider taking the time to learn about energy markets, defense and agriculture. The sun will set on crypto once more, but in these dark times, we must rush to safety. Happy new year and lets get to it legends :) Rob
Short
by TheBitcoinGeneration
2
$XRP RunXRP has been under a lot of legal chokeholds due to the SEC and accessibility on centralized exchanges. This can be seen with a consistent support/resistance line that has been developing over the past 3 years. As the Ripple v. SEC case seems to be windling down, we may see a breakout similar to that in 2018, if not higher. Additionally, it is important to note that XRP is ISO 20022 compliant, an attractive stipulation for big banks and financial institutions.
BITSTAMP:XRPUSDLong
by roman0losses
1
Vumanchu cipher b with divergence and ssl trend First post here I’m working hard at understanding technical analysis. I’ve created a 4hr/1hr strategy with the Vumanchu cipher b with divergence, ssl trend set at 18 for both, and 50/200/400 ema. Went through marked 4hr divergence and trend based signals highlighting the 4hr trend with vertical bars marking buys and sells. made up positions on the hourly ssl trend with entry at change of trend or hourly divergence stop loss at previous wick or opposite trend line. I’m a part time trader and needed a slow strategy for short term swing trades. This strategy has provided me with multiple entry’s and clear exits great for a newer trader looking for a flexible strategy. For free! Works on all time frames I find it best on daily 4/2/1 hrs and 15/3 minutes for scalps. Just an idea!
AMEX:SPY
by importantCheet25753
xauusd gold analysis second week of december 2022Hello fellow traders and gamblers, The areas highlighted with the rectangle box are gaps which have to be filled in the upcoming months. Upon doing research and countless hours of studying, 2023 will mark the year of recession and gold rallying to new all time highs. This is evidenced by the 2007 crash which saw gold rally to new highs by 2013. We are following the same trend which started from late 2019 prior to covid outbreak. We are getting into the 4th year and gold has yet to set a surprisingly new all time high way above 2070. I cannot tell you which way the market will go but you can see in the chart is liquidity points which institutions and banks have bought and sold from. Good luck!
OANDA:XAUUSD
by Pipstarr
2