A brief explanation on the importance of risk managementEvery human activity has its ups and downs. You may face good days and bad days and it’s a norm in any other human kind activities.
Read history! Did all dynasties get consistently stronger?
In politics, did popularity rates of political figures get better day by day?
Sure not!
Even in natural events, you see uneven decreases and increases. Not only the annual rainfall rates are not always the same, but the rate of increases and decreases varies from year to year.
So strategies and setups won’t always work because they simply are man-made things to predict a human-based activity! They may fail, expire or disused someday, because this is the neutrality of nature and creatures including humans and their markets. For the last instance, even stars grow and fall.
I know there are some traders who claim their strategy will never expire. They may be liars, but they are not necessarily liars! Those who believe their strategy will never expire will admit that their strategy had bad days too. I like to say their strategy has expired and reactivated again and since they consider longer cycles (monthly, yearly or even bigger) they believe their setup has never expired. If we want to be more precise their strategy has expired but just for shorter periods (may be just for hours!).
Let me explain a little more technical, every setup is compatible with specific conditions of the market and they will fail in other markets’ conditions and traders are not foreteller but predictors, so they sometimes may get conditions have changed and sometimes they predict it wrong or get the change so late! So they sometimes make profit and sometimes don’t. For example RSI overbought and oversold strategy do not make profit in trending market on the side of the trend! I mean if markets are bullish, overbought is a norm not a sign of reversal (most peak of reversals happens in overbought or oversold but not every oversold is a sign of reversal in a trending market) and in a super bullish trending market you almost can’t find any RSI oversold. So you should use another setup! ( some traders using kind of strategy which has different setups for different conditions of market, they actually guess when their strategy is going to expire)
I divide the professional traders by methods that they choose to avoid using an unsuitable for market conditions into four general categories.
1- Ignorers: Since they got a conservative risk management strategy and they could easily ignore expiration phenomena and trade without worrying about expiration.
2- Rule makers: They have different setups for different conditions. They specify some rules to distinguish market conditions and adapt new setups to their trades. Rules could be created by using both indicators or indicator-free (price action) chars.
3- Sentimental Market traders (in case of expiration): Some traders do not use specific rules! They simply just sense market conditions has changed. They differ from rule makers because they don’t use a specific rules every time. They may use some rules unconsciously but those rules may differ time to time.
4- Equity curve analyzers. They simply analyze equity curve! They make specific rules to start using or stop using a strategy! For example they will stop using it if it is a loss-maker one for 2 weeks (this one won’t work in most strategies) or they simply try to use price action rules to analyze EC of a setup! “Mark Douglas (1990) is saying that if traders were to chart their equity, these charts would look very much like the typical bar charts and charts like these also can have the same predictive value as in the markets” “Procedia Economics and Finance 32 ( 2015 ) 50 – 55” these kind of traders may use indicators like SMA or WMA to predict profitability of a setup in future and they are also eager to use price action rules.
I believe no method is superior to another, the way an experienced trader use the method is important! But having a method to avoid large losses is necessary. And all traders consciously or unconsciously use one of them. Most price action traders are ignorers. Their strategy may expire but for short period of time. For example mine is expired right now but I’ll continue using it cause I know it’s temporarily and I don’t know when exactly it will reactive again. I also use a self-made auto-trading expert which use different indicator based setup and since the period of expirations of that setups are long, I use EC analyzing methods to detect expirations .
No matter which method you use, you can’t be an always winner trader! Ignorers may loss and they will name it exceptions. Rule makers’ rules may detect and signal expiration too soon or too late! The 3rd and 4th kind of traders may make mistakes too. There is no single trader in the world with 100% win rate in long-term!
That's why you need to limit our risks, I like optimism in life (I prefer pessimism in back-tests) but you should not be deluded, you should think what happen if you lost some consecutive trades?
If you risk more than you can handle consecutive losses emotionally, You will empty your trading account, no matter how good a teacher you had or how much you have practiced or how great trading past you have or how experienced you are or even how much you believe your emotions are in control of you
(you actually can’t control in real big loses trading), YOU NEED TO LIMIT YOUR RISK by managing it in a way that your trading is profitable enough and simultaneously do not be destructive at certain times
"Profit a little less but more consistent."
There are also too many other important rules for money and risk management and you should take them into consideration too.
Best Regards, Alisignals
Plan
Short as long as 0.459 is resistanceAlternative scenario: the upside breakout of 0.459 would call for 0.509 and 0.539.
My pivot point is at 0.459.
My preference: the downside prevails as long as 0.459 is resistance.
Comment:
The RSI is below its neutrality area at 50.
The MACD is negative and below its signal line.
The configuration is negative.
Moreover, the share stands below its 20 and 50 day moving average (respectively at 0.445 and 0.5).
Trade safe -
Jimster45
GBPUSD LONG - Einstein Says So Hi traders
Please check out our simple analysis of Gbp/Usd.
Again this was on our watch list from a 4hr our perspective last week so I thought id share the daily perspective to give you the bigger picture.
I do anticipate we could see the top of the channel but my exit will be at the 0.618 of the impulsive move.
Do you agree with this set up? If you do let me know in the comments below.
Hope you have a profitable week and remember keep it simple stupid!
The Fx Chartist
NANO - Possible Next MOnthly target.Hello people!
The monthly resistances in Nano are interesting at the level we are at.
I think that if it breaks down to 3.2, then we may see a 2.04 price, which hurts the pocket of some people.
If it gets some fuel I would be planning to take some profits at 9.4.
We will see!
Have a great month you all
Idea about #PLAN using Elliott Wave TheoryIdea about #PLAN using Elliott Wave Theory. According with this wave count, maybe we will see some price decrease to the range $45.30 to $30.11.
FEIM - Trade PlanWill enter if the stock holds strongly above $11. I never go in blind. If the price can't hold, this plan is invalid.
STOP LOSS - $10.80
PROFIT TARGETS - $11.50, $12
I think 10.80 will be solid support. Volume was great this week and we broke through some important levels of resistance.
PLAN - Bullish call flow Aug 27thAnaplan, Inc. is a cloud-native enterprise SaaS company that helps improves business performance. Options - Over 3800 Sept $70 calls bought Aug 27th, Put/Call ratio is .21. Related tech business software names that did well for earnings, TEAM, MNDY, CRM, BILL. Currently above the 200 SMA, $61.8.
Quick update for XRP: What's next, $2.40 or $0.60 ?Check the 'XRP outlook APRIL/MAY', link below!
XRP is following the plan. Charts looking good. But i’m still watching the possibility to see another dip towards $0.60.
My first zone has been met. And it's holding so far.
Price could go further up from here, but another thip is still (and also) a likely scenario.
Anaplan Inc 🧙Anaplan Inc is a United states-based business performance management company. It offers cloud-based business planning and performance management platform based on a single hub where business users can create and use models. Anaplan provides solutions for finance, sales, supply chain, HR & workforce, and marketing. The company also provides professional services, including consulting, implementation, and training. Its geographical segments are the Americas; Europe, the Middle East, and Africa; and Asia-Pacific.
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BTC POSSIBLE SCENARIOI'll be looking close BTC, there is a falling wedge forming, we need to broke the trendline to fly. If the falling wedge doesn't work i will wait to Tesla FUD levels to see the price reaction. The BTC D is not working yet for the bull run, we are on an interesting week for BTC and the others crypto.
📚 Creating A Trading Plan and Executing A Trade 📚As with all great trades, we require a trading plan. This is a perfect example of how to analyse, execute and manage your trade. See linked chart for the initial trade idea.
See below for a step by step guide on how we entered this trade and what we looked for.
Goodluck and trade safe!
LET'S LEARN TOGETHERTradingview is all about sharing your ideas and knowledge with like-minded people. Sometimes we all get caught up with the trading part and forget that it's a learning journey no matter what your experience level on the market is.
As a way for everybody to take a step back and look around, we decided to create this thread where each of you can share your trading routine and any tips. Something you might think is insignificant might change somebody's trading journey for good!
A lot of you have been supporting us with coins! We make enough through trading, thus, we'll try to give back to people with the most helpful tips through the coins we have.
For instance, here are some tips Investroy analysts use on a daily basis:
1) Before making an entry on a larger time frame, we always check M15 or lower to make sure we don't have any micro-reversal patterns being created
2) We don't enter trades on Fridays
3) NOT RISKING MORE THAN 1% ON A SINGLE TRADE (NO MATTER HOW JUICY THE OPPORTUNITY IS)
4) Always waiting for confirmations (specific candle to close) before executing a reversal trade on major support or resistance
TradingView has a lot really experienced and intelligent traders, we're hoping they also join this post to share their wisdom with the people who are just starting their long (hopefully profitable) journey. All the best, my friends! Let's make the most out of our great platform!