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Psychology

Principles Of Risk Management One of the main topics, and perhaps the most important, is the topic of risk management and risk reward. Beginners often do not take this topic seriously, trying to hit the jackpot in every transaction, risking all or almost all of the capital and not realizing what the consequences of such actions may be. Whatever trading style you use, whether it's day trading or scalping, the way you manage risk will still be decisive in the question of whether you will be profitable at a distance or not. Margin trading gives a lot of advantages, but most often it ruins newcomers who open deals with a large volume and quickly lose money when the price goes against them. The ability to manage risks correctly will help you stay in the game for a long time and be profitable at a distance. Focus on protecting what you have. In the pursuit of profit, traders forget about risks, forget about capital protection. It is important to remember that after each loss, the percentage of profit that needs to be returned to breakeven increases exponentially, depending on how much you lose. Fundamentals of Risk Management The market is changing every second and at any moment there may be news that will make the price go against you. The desire to risk everything in one transaction leads to the closure of novice accounts, instead, it is better to manage risks and stay in the game for a long time, making a profit. Anything can happen in the markets and it is simply unwise to risk everything in one transaction. You must remember: 1. You should not risk more than you can afford to lose. 2. Each trade must be opened with the correct risk reward ratio. (RRR) The Risk Reward Ratio (RRR) is how much you are willing to lose, compared to the expected profit in each trade. You should strive for a ratio of less risk / more profit. One of the best ways to manage risk is the 1% method. This method of risk control means that in each transaction a trader risks 1% of his capital. This is correctly used even by managers of large hedge funds and they do it for a reason. Do not think that only 1% of the capital can be traded. You can use at least all your capital for trading, but your stop loss should be no more than 1% - this is your risk. You can use leverage if you need to, but don't lose more than 1% in one trade if you want to become a professional. The Best Risk-Reward Ratio For Trading Before opening a position, you should know how much you can lose and how much you expect to win, and the ratio should not be lower than 1:1. A ratio below 1:1 means that you lose more than you can win, and this is an extremely dangerous activity that can eventually lead to the loss of the entire account. If the ratio is 1:1, you will be at breakeven, even if 50% of your trades are unprofitable. If the ratio is higher than 1:1, then you will be in the black, even if more than half of your trades are closed in the negative. Do not forget that it is impossible to win in every transaction and without proper risk management, such a game will lead to big losses. Do not forget about the rules of risk management, use a profitable strategy and act according to the rules, do not give in to emotions and then success awaits you. ------------------- Share your opinion in the comments and support the idea with Like. Thanks for your support!
Education
by DeGRAM
1
TRADING PRINCIPLES THAT EVERYONE SHOULD KNOW. PART 2.Hello traders! Today we will continue to explore the principles that every trader should know and do. READ THE NEWS. The impact of news on ALL markets is enormous. Every news can turn the market against you and break any trading plan. Read news, professional analytics, reports, any information that may be useful. You should always be up to date with the latest news in order to correctly assess future movements. MAKE A TRADING PLAN. Every trader should have a well-built strategy and a clear plan of action. Before each trading session, the trader analyzes the market and outlines the possible direction of the market and opportunities for opening positions. Even before the market opens, you should be ready and know what you will do. After each trading day, you have to analyze positions and work on mistakes. BE RESTRAINED AND DISCIPLINED. Do not give in to emotions. Don't go into a new position often. Don't change your mind every five minutes. Don't forget about the risks! A good strategy will help you not to drown in this emotional storm. ACCEPT YOUR LOSSES AND MOVE ON. There are thousands of profit opportunities on the market every day. But if you lose all your money in the pursuit of winning back the lost money, you will not have the opportunity to trade for a long time and will not have the opportunity to become a successful trader. Trading is a long distance where you need to be able to stay on track, be able to accept losses and move on. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩💻
Education
by Lingrid
12
UNSUCCESSFUL vs. SUCCESSFUL TRADERUnsuccessful Trader You are trading without a Specific Trading Strategy The main reason for opening positions for you is not clear strategy rules, but your own intuition. And even after several failures, you continue to repeat your mistakes due to the lack of discipline and the lack of a trader's trading journal. You often over-trade and get Margin Calls Your instincts make you trade too much, open new positions again and again, forgetting about the risk and thus getting frequent margin calls. Because of such disorderly market entries, you become very emotional, lose control and lose money quickly. You get attached to Open Positions Following your own emotions, you often hold on to an open position for too long, hoping that the profit will become even greater, while forgetting about the take profit that you set yourself. As a result, a profitable position becomes unprofitable, and you begin to believe and expect that it will become profitable again, overstaying the unprofitable position. You're Too Emotional Your mood changes with every price reversal. Forgetting about the analysis, you often open new positions and lose more than your risk management can afford. Successful Trader You have an Effective Trading Plan You have written on a piece of paper a strategy of actions for any market situation and always follow the rules prescribed in the strategy. You often analyze your trades in a trade journal and always remember your mistakes and hits. You Understand What Risk Is You have clear rules of risk management. Even before opening a position, you know how much you can lose in this trade and do not lose more than allowed by the rules of risk management. You don't move your stop loss and you don't act emotionally. You Control Your Emotions You clearly follow your strategy, leaving no room for emotions. Even before opening a deal, you have analyzed everything and know exactly what to do – you have a plan of action. You always fix a part of the profit You do not forget to protect your capital, so you close part of the position in plus or zero, and let the rest of the position grow further. Now you will not only not lose your money, but you can also earn. ------------------- Share your opinion in the comments and support the idea with Like. Thanks for your support!
Education
by DeGRAM
2
TRADING PRINCIPLES THAT EVERYONE SHOULD KNOW. PART 1.Hello traders! For a long time, the Forex market has created a large number of trading methods. Finding your strategy that suits you specifically is one of the main steps in achieving success in the Forex market. And it is worth remembering that successful traders do not use anything magical in their trading. Everything has been invented for a long time for both a novice trader and a successful trader. The main task of beginners is to choose a fairly easy strategy and strictly follow its principles and rules. So what does a beginner need to know in order to trade profitably? Price levels. It is difficult for a beginner to determine price levels and trade them correctly. There are no specific rules in this topic, since the price does not draw clear points, but forms zones. Many traders use support and resistance levels in their trading and for beginners, the main task at the beginning of the journey will be the concept of selling from resistance and buying from support. There are three types of trading systems based on price levels. 1. If the price moves within the framework of a sideways movement, the trader can sell from resistance and buy from support. 2. If there is a prevailing trend in the market, for example, bearish, a trader can sell from resistance and expect support to break through. 3. The same rules work in the bull market, only in a different direction. If the price breaks through the resistance, then this zone becomes a support from which you can buy. Consider the principles of trading from price levels. #1 Understanding the market context. The key to profitable trading from the levels is the ability to correctly understand the market context. Bearish pressure leads the market movement through an impulse movement that breaks through support and creates new lows – in this context, selling strategies will not work well. That is why it is so important to follow the concept of the market context: When the market falls, creating new highs and lows, we are talking about an impulsive bearish context. The correction is created by an impulse that is weaker than the main trend. A sideways movement occurs when both demand and supply are approximately equal and the price cannot move in a certain direction. As soon as the bulls or bears take over, the price will make an impulse in the direction of the strong side. #2 Top-Down Analysis The market is ruled by big money, which pays great importance to large timelines. And it is vital for an ordinary trader to know where smart money is pushing the market. To do this, it is worth noting strong levels on the monthly-weekly-daily timeframes in order to know exactly where the price is most likely to rebound. On the other hand, if the price is above the key levels, then the market is bullish. #3 Candlestick Patterns Almost every trader uses candlestick patterns in his analysis, which are a very strong analysis tool. Reversal candlestick patterns create an excellent opportunity to enter a trend reversal. The higher the timeframe on which the pattern was formed, the stronger its signal will be. Knowing candlestick formations is a very important part of a trader's professional growth. #4 Risk Management Any trader should be aware of the risks and be able to control them. Although this topic goes beyond the definition of the market context, it is still very important. There are many ways to control risks. An important rule is to set a stop loss and risk in each position, as recommended, no more than 2% percent. Hedge fund managers risk an even smaller percentage in each transaction, sometimes 1% or even lower. It is better to grow slowly than to fall quickly. If you lose 2% of the capital, in the next transaction, in order to get your money back, you will already need to make 4%, which in general is not difficult to do. But if you lose 50%, you will need to make 100% profit already, which is almost unrealistic. Conclusions Summarizing the above, you can make the following sequence of actions: Identify the key support and resistance levels. Wait for the candle to form in the desired direction. Stop loss above or below the candlestick pattern. Take profit is placed at the following support or resistance levels. Always make sure to use proper money management for each trade, and never take on a risk that exceeds the return. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
113
BEST CANDLESTICK PATTERNSCombinations confirming the reversal of the "bearish trend" 1. Inverted hammer and combinations of hammers. The hammer has a large shadow under the small green body, and the inverted hammer has a large shadow over the small red body. It appears, like all subsequent combinations, at the base of the downtrend, before the reversal. 2. "Bullish harami" consists of two candles: the first with a long red body, which covers the second with a short green body. A distinctive feature is that this model assumes a price gap. The fact is that "harami" in Japanese means pregnant, so if you look closely at the drawing, you will see that the body of the right candle is, as it were, inside the body of the left candle. 3. Short candles in the "star position". A "star" is a candle with a fairly small body, formed after the break with the closing of the previous candle, usually having a large body. Therefore, in this model, the candle should appear at the bottom of the downtrend, have a short body and open with a break down compared to the previous candle. The third red candle with a short body should close above the first candle. 4. "The morning star in the position of three candles." Here, the first candle should be red, which indicates a strong downward movement, the second has a short body and is formed with a gap relative to the first candle, and the third candle is necessarily green, the price of which has increased to at least a value at the level of half the body of the first candle. Ideally, the morning star should have a gap before and after the second candle, but the gap between the second and third candles is rare. 5. A short candle in the "harami" position. This combination is similar to the "bullish harami" that we described earlier, only in this case the second candle is short and red, but it is also located in the body of the first candle. The third candle is necessarily green. Combinations confirming the reversal of the "bullish trend" 6. "Bearish harami" is the same as "bullish harami", only a long green body should appear first, and a short red body should appear second, and the body of the right candle is absorbed by the body of the first candle. The next candles go out. 7. "Bearish absorption". Here, the first is a short green candle, and the second is a long red one, and if you look, the body of the left candle is inside the body of the right candle. After that, the price decreases. 8. "Shooting star" is a short candle with a missing lower shadow and a very long upper one. 9. The bear cross "harami" is formed when the first candle is long and green, and the second candle ("child") is a "doji". 10. "A three-line star in thought" or in another way "the repulsed offensive of three white soldiers". This combination reflects a gradual steady increase in prices and consists of three candles, the opening price of each of which is located inside or near the previous green body. The closing price of candles is equal to or approaching the maximum prices. If the second and third candles (or only the third candle) show signs of weakening, that is, their bodies gradually decrease or relatively long upper shadows form, then the "repulsed offensive of three white soldiers" model is formed. This pattern should cause particular alarm if it appears after a long uptrend.
Education
by DeGRAM
2
Trading strategies, Part 1: First stepsWelcome to a series of videos called Trading Strategies. In the next couple of weeks, we'll talk about different strategies one can use to maximize gains: Market psychology, trading tools, trading styles, technical analysis. Today, the first steps: 1- Defining who you are: Are you an investor or a trader 2- Educating yourself: Knowledge is the best tool someone can have on the market 3- You can't win all the time 4- Don't be greedy Stay tuned for more content
BITSTAMP:BTCUSDEducation
by KairoiCapital
1
Loss aversion: the biggest “sin” in trading "Losses loom larger than gains" - this expression is a good illustration for the term "Loss aversion" - a key concept in the Prospect Theory (Kahneman and Tversky, 1979). The Prospect Theory is a psychological theory that has built foundations for the modern field of Behavioral Finance. It is the work Kahneman received a Nobel prize for in 2002. According to the Prospect Theory, the psychological pain of loss is nearly twice as intense as the pleasure of the equal size gain. People hate losses and are more prone to take risks when they try to prevent losses. But in trading, accepting small losses is an inevitable and necessary part. Everyone knows that to be profitable in trading, you must cut losses fast and let profits grow. But in fact, traders do everything exactly vice versa over and over again. The reason is loss aversion. Traders let a losing trade live too long, hoping that it will get back to the green zone. At the same time, they close profitable positions too early, not letting the profit grow. People tend to fear losing the earned profit more than missing the opportunity to increase it. Though the abovementioned behavior may work for some particular positions, in the long run, it harshly worsens trading performance and is the surest way to ruin trading capital. Some people may think that this staying in losing trades is just another psychological trading mistake one should work on to get over. But Prospect Theory says that the problem is much deeper than it may seem. Loss aversion is how our mind works as a result of millions of years of evolution. And it is not clear if it is even possible to change this fundamental asymmetry in the perception of losses and gains. One can say without exaggeration that loss aversion is the "biggest sin" and the ultimate reason that people are bad at trading in general. And this is the psychological bias we always have to keep in mind and account for when trading. There are solutions how to decrease the negative impact of loss aversion. And they are well known but, as it often is, underestimating a problem leads to the same thing for the importance of its solution. The solutions are the following: In each trade, one should risk such an amount of money that does not trigger any pain in the case of loss, One needs to develop a system that has a statistical edge and then strictly stick to it. The other helpful tools to address this problem are automation and algorithmic trading. Algorithms can make many boring small trades systematically without getting tired and not affected by emotions. And various kinds of trading automation offered by state-of-art charting software help manual traders stick to their systems (real-time alerts, trading signals visualization, dashboards, etc.).
NASDAQ:TSLAEducation
by AstrideUnicorn
Psychology of the market circle Hello traders! Euphoria and Anxiety, Fear and Greed Psychology of the market cycle Any trader finds himself under the influence of changing market cycles. At favorable moments, investors feel joy and are overwhelmed with self-confidence. On dark days, the investor falls into despair and feels anxiety attacks. The only way not to succumb to such an emotional influence is to follow the clear rules of a properly compiled system. Unfortunately, most traders have no plan and no strategy. In order not to become a victim of emotions, a trader must have an idea of the emotional stages of the market cycle. Psychological stages of trading An uptrend is a trader's emotions. Optimism When the market is growing, the trader sees an opportunity to earn and invests money. The economy is growing, the price is rising, profits are growing. At such a moment, the trader feels confident, begins to open new positions after each pullback, which eventually turns into a kind of instinct. At this stage, the trader begins to forget about the risks. Enthusiasm and Abundance The market is starting to accelerate. Traders experience pleasant feelings of joy and enthusiasm. The trader begins to lose his head, confidence overwhelms him. Euphoria After that, the last stage of the upward trend comes - Euphoria. Money comes very easily, the trader is overwhelmed with confidence in his actions and decides to open positions using leverage. At some point, the trader begins to think that he is a professional analyst, and it is not he who is following the market, but the market is following him. This stage in the market helps large investors to discount their shares to self-confident traders who buy everything in a row, believing in the continuation of the upward trend. In fact, this phase is the most risky, after which the trend is reversed. Emotional stages of a Downtrend in the market Anxiety The price is starting to slow down, there are fewer and fewer sellers, bears are gaining momentum. For a trader blinded by luck, this phase looks like another correction. But the market can no longer create new highs and falls, forming new lows. Such a fall creates anxiety in the trader's soul, easy profits begin to melt. Denial and Fear Fear fills the market, traders are afraid to be wrong, because recently they ruled the market. At this stage, the trader denies that he is wrong and tries in every way to justify holding unprofitable positions. Like any beginner, a trader believes that sooner or later the price will not only return, but also go beyond the maximum. Denial brings the trader to a state of helplessness and inaction, from misunderstanding of the situation on the market. The trader gets lost, not knowing what to do and waits without knowing what, without closing unprofitable positions. Despair and Panic The price continues to fall, and the trader falls into despair, because the confidence in holding a losing position is already beginning to disappear. This phase is the most painful, because the severity of losses presses too hard to stay calm. Surrender The unprofitability of the position is increasing, traders can no longer tolerate this pain. In this phase, traders have to capitulate just to stop these torments. Traders are starting to close positions and it is here that large companies are included, for which this moment gives a new opportunity for large profits. Asset buying begins, because a reversal is possible soon. Despondency and Confusion As it often happens, as soon as a trader has closed a position, the market begins to grow. It looks like the law of meanness. This phase drives the trader into despondency, because the position was closed a moment before the rise. It is here that newcomers begin to think about whether it is worth investing further. Hope The market is starting to revive. The price shows new highs and the investor has hope. It seems that here it is, a new opportunity. The trader begins to enter the market, forgetting about the past, without drawing conclusions. A trader enters the market when the price has already accelerated, at points where the risk is again close to a critical value, the cycle begins again. Traders should keep this cycle in mind. Such emotional roller coasters can ruin anyone. A well-designed strategy can help avoid these painful blows. Remember the risks, remember the cycles, work on the mistakes, and victory will not take long to wait. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
40
Formation of distribution to Wyckoff Phase A - The moment the previous trend stops. The dominant force up to this point was demand, but now the balance is changing in favor of supply. The capitulation of the bulls has not yet happened, but it is at this stage that the bears begin to struggle to reverse the trend: • PSY - pre-delivery - at this stage, a big stock reset begins, after a strong growth. There is an increase in volumes, while the price movement begins to expand. • BC - the end of purchases - the volume increases greatly, the price soars sharply. Large players need to close their long positions without a strong change in the exchange rate, so at this moment news about profits or losses usually come out, which encourage retail traders to buy stocks en masse, which are dumped by big players. • AR - automatic reaction. The price falls under the influence of decreased purchases and retained sales - AR is formed. The minimum of movement in the AR phase is the lower bound of the TR distribution. Phase B - Creating conditions for a new trend. Smart money starts dropping long positions and opening short ones, while trying not to push the price too much in order to get a better price: • ST - secondary (repeated) test , in which the price returns to the BC area again, to check the difference in supply/demand. The supply at such a moment must exceed the demand to confirm the top. There is a decrease in volume and spread. The secondary test (ST) can sometimes be formed in the form of an upward movement (UT). At such a moment, the price may pass the BC resistance line before turning sharply. Often, after UT, the price tests the lower bound of TR. Phase C - This is a test of the remaining demand . The price can update the maximum, thereby collecting stops and a new portion of energy for the fall. This moment may turn out to be a trap for bulls who believe that the bullish trend has gained strength again. Big players will push the price against the crowd to close their positions in the footsteps, so it is quite dangerous to trade in this phase: • UTAD - uptrast after distribution. In the last phases of TR, a test of new demand is possible, after the breakdown of resistance. At the same time, UTAD does not necessarily have to appear on the chart. Phase D - breakdown of the TR line and confirmation of the bears' strength. It is here that it becomes finally clear - bulls have lost the fight and bears are pushing the price in the direction they need. Small short-term rises will often appear which can serve as good points for opening positions. The proof of the bears' strength will be the breakdown of support and a further fall in the price: • SOW - a sign of weakness. At this point, the price falls below TR or stops a little higher. All this is happening because there is more supply than demand. • LPSY - is the last power point. The weakness of growth is clearly observed when the price bounces and tries to move up, after the SOW test. The reason for such weakness may be a lack of demand or a large supply pushing the price down. In the LPSY phase, there is a wave of the last distribution of major players, after which a stronger fall will begin. Phase E - acceleration of a new downtrend. The accumulated force breaks through the TR line and a strong downward movement begins, which, however, may temporarily switch to a return to the resistance line. This moment can serve as another opportunity to enter. ------------------- Share your opinion in the comments and support the idea with Like. Thanks for your support! info taken from WyckoffAnalysis
Education
by DeGRAM
6
8 Trading Habits of Successful TradersConsistently profitable traders have a lot of things in common. Watching how they act and following their ideas & thoughts we can spot a lot of commonalities among them. In this post, I have collected 8 trading habits that a trader should have to become successful. 1️⃣ - Realistic Expectation & Vision Many traders, most often beginners, commonly fall for the trap of wishful thinking. When analysing the charts, they usually only view the market from one bias and only perceive price heading in one direction. And this is typically the one that their own analysis is pointing towards. However, going into each trade with a realistic expectation that the market doesn't care what you think may happen, and being prepared for a trade to go wrong will help keep you level headed. 2️⃣ - Anticipation of Different Outcomes Anything can happen in financial markets and for this reason, professional traders always justify their decisions in probabilities. They understand that 100% chances do not exist so looking at all possible probabilities before entering any trades, the trader is always ready for completely different outcomes and accepts each and every move given by the market. 3️⃣ - Emotional Stability The market is a wild beast who always wants to bite us and most of the time it manages to do that e.g. drawdowns & losing streaks... Those who trade for at least 1 year know how unpredictable and unstable the market can be. A perfectly looking trading setup can easily turn into a big losing trade. Of course, that is painful and of course with more & more losses, the anxiety will begin to chase us, the stress will overwhelm us and you may begin to start second guessing yourself. Only by remaining stable and calm, you will manage to overcome the negative periods. Learn to control your emotions, learn to take losses! 4️⃣ - Continuous Learning The markets are infinitely deep in their nature. Trading & constant monitoring of the market always unveil new, uncharted elements and things. Throughout all my years of day trading, I can't help wondering how many new things I learn each and every day. With continuous learning you evolve, you become better and it improves your trading performance & results. 5️⃣ - Flexibility & Adaptivity The markets are always changing. If you were trading before COVID crisis, I guess you feel how the reality among us shifted. With fundamental changes in our daily lives, the markets changed as well. It is hard to say what exactly has altered though, however, we all can feel it. In order to survive in a constantly changing environment we must always be adapting and never stagnant. 6️⃣ - Trade Journaling Pro traders always assess their past performance & results. They track each and every trading position that they opened. Both losing trades and winning trades require analysis and observations. Only by studying the past results the trader can improve his trading performance and evolve. Only by identifying mistakes & peculiar commonalities, the trader learns to lose less than he makes. 7️⃣ - Risk Management 90% of traders lose 90% of their funds within 90 days and under 90 trades . This is a well known statistic in the trading industry and aside from psychological factors, it mainly boils down to incorrect risk management. If you're looking to survive in this game and have a long, prosperous career in trading. You must have your risk management locked down. One beneficial risk management habit to develop is to not enter any trades unless they have a risk:reward ratio of at least 1:3+ . 8️⃣ - Trading Plan Sticking to your trading plan is one way of promoting long-term success throughout your trading journey. Undoubtedly, you will go through many psychological ups & downs, mental battles and periods of low confidence. Abiding by your own trading plan will help assist in ensuring that you don't step out of line from your own trading rules and allow you to stop yourself from developing bad habits overtime. 9️⃣ - Constant Practice Professional traders never stop, they always watch the charts, they always monitor the prices, and follow the market. Trading requires constant TRADING. Just spending one single week on a vacation without charts, you can not imagine how hard it is to return back. The trading skills must be constantly maintained.
Education
by NimmoCapital
So You Wanna Trade Full Time... Is it Possible? A Good Idea?I walk you through my thoughts on the dream that most traders have: doing it full-time! I give you my personal experience and how I've tried things in the past. What I'm doing now and what works for me. Key takeaways: - The trifecta: access to capital, good strategy, cost-of-living. You have to solve for 2 / 3 of these! - You can't buy peace of mind. Have other income streams to mitigate the risk from your trading not going well for periods of time.
BITFINEX:XRPUSDEducation
by ImreSG
3
ETH An example in why retail traders are wrong!Good Morning traders! Today I have a great example of order protection and liquidity building. This is something that I have been speaking about for a long time and this current PA shows it well. The blue boxes show places where large orders have been placed and and initiated moves. See how price returns to retest these areas?! this gives the Banks, Whales and big players a chance to protect orders. Retail traders place orders outside of these areas "support and resistance areas" These orders can easily be seen, and therefore hunted. The highs and lows create areas for the big players to exit the large volume positions as every buy order needs a seller and vice versa. I hope this information has been helpful. As always trade safe. EnvisionEJ
BITSTAMP:ETHUSDEducation
by EnvisionEJ
3
The importance of sticking to the plan 👊👌As traders we are our own worst enemies! A common theory with trading is as follows. 10% is having a good strategy, 30% is having good risk management and the final 60% is psychology. If we as traders fail to address the final psychology part of the sentence above then we as traders will fail in the markets. The chart shown in this idea is EURGBP working the 30 minute time frame. The strategy is a rules based mechanical approach working a 1:1 RR to fixed stop loss and take profit targets. I know I have a proven edge with this strategy as with all my ideas the built strategy tester report is at the foot of this idea shows the strategies credentials. Position sizing is correct I trade this strategy on a stand alone account for this pair and I'm happy to risk 2% per trade of my capital from said account. So where does the psychology part come in to all this? The emojis on screen show the emotions I would of been feeling with this trade once upon a time! An emotional roller coaster! The chart shows three trades. A short which hit TP followed by a long which hit SL. Then the trade I'm using for this idea which lasted a full 13 days! But this is where sticking to the plan and the rules I set help remove that emotional roller coaster. Not sticking to that plan could of created many outcomes. I could of closed for less profit than intended as part of the plan or worse still could of cut my losses only for the trade to go on and hit TP target. The above would of then led to more emotions thus effecting my future trading decisions and choices. With each trade I enter I am comfortable with said outcome whatever that maybe. That comes from trading a proven strategy, having correct risk management and then by sticking to the rules of the trading plan for the strategy. Sticking to a plan removes any subjectivity and helps take care of the psychological side of trading. I even automate my strategies now and not checking trades every minute of the day has helped removed all those up and down feelings the emojis on the chart represent. I'll end with one final thought patience has to be part of your plan. The markets take from the impatient and give to the patient ones among us. ------------------------------------------ I try and share as many ideas as I can as and when I have time. My trades are automated so I am not sat in front of a screen daily. Jumping on random trade ideas 'willy-nilly' on Trading View trying to find that one trade that you can retire from is not a sustainable way to trade. You might get lucky, but it will always end one way. ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. The stats for this pair are shown below too. Thank you. Darren
Education
by pow_removetheguesswork
38
AUTOMATED TRADING BOTS: How to profit with Tezos.Tezos is one of the best token for our robot. Our robot mainly uses the DCA (dollar cost averaging) trading method. If the price drops, instead of the Stop loss order, we have a Buy limit order. This will also cause the Take profit value to drop and approach the current price. If the price falls and falls, the robot buys and buys. This keeps the Take Profit lower and lower. After that, the price of the token rises and our trade ends with Take profit, which is not far from us thanks to constant and precisely predefined purchases. The XTZ / USDT currency pair is suitable for our demonstration. You see very high volatility. It is through volatility that our robot can be profitable. If the price still went in one direction without frequent fluctuations and without "waves", the robot would earn very little. We need great volatility for big profits. Volatility in the TradingView platform will be helped by the Historical Volatility indicator. This indicator often (on this time frame) intersects the value of 50.00, which is rarely affected for low-volatile currency pairs. For example, you would look for Bitcoin very bad around 50.00 on this time frame. The key to our profitable trading bot is volatility! At a time of market colapse, when almost everyone is going through and positions in the Futures markets are being liquidated on a large scale, we are EXTREMLY profitable thanks to our robots. Of course, it is very important that you know how big the position is and how often, or at what intervals it is necessary for the robot to buy more. In no case is every setting of the robot profitable, on the contrary, setting up a profitable robot is not easy. You will learn how to set up a robot to be constantly profitable in our Academy. PS: One of the best things about trading with robots is that you remove all emotions and decisions. We wish you a nice day. UCT team.
Education
by UltimateCryptoTrader
Formation of consolidation according to Wyckoff (addition)Hello amateurs and professionals😎. I would like to add a few clarifications to my previous post about the Wyckoff accumulative model PS - preliminary support. The moment a large buyer appeared, who stopped the market and decided to gain a position. Volume increases and the price spread widens, signaling that the downtrend is nearing its end. SC is the maximum point of sale. Large mass sales by the public are consumed by larger professional interests at or near the bottom. Often the price forms buyout bars - it closes far from the low in SC, reflecting buying from these large interests. AR is an automatic rally that occurs when sellers begin to weaken and change sides or exit the market. A wave of purchases easily pushes prices up; this is further fueled by a short cover. The high of this rally will help determine the upper limit of the cumulative TR. ST - a retest attempt, in which the price revisits the SC area to set the position by a large player. If a bottom is to be confirmed, volume and price spread should be significantly reduced as the market approaches support in the SC area. Usually several STs are placed after SC. Nuance. False breakouts or shakes occur late in the TR and allow large players to check on stock before the mark-up campaign unfolds. The “spring” pushes the price below the low of the TR, and then reverses and closes within the TR; this action allows large players to confuse with the direction of the trend, increase liquidity and enter the market at a favorable price. However, the springs and knockout of the leads are not required elements: the accumulation diagram 1 shows a spring, and the accumulation diagram 2 shows a TR without a spring. Test. Large players check the market for supply throughout the TK (eg ST and springs) and at key points during price increases. If there is a significant supply during testing, it can be seen by volume, the market is often not ready for the markup. The spring is often followed by one or more tests; a successful test updates tops with insignificant volume. SOS - Volume appears and a major player is identified with direction. Often, an emergency signal occurs after a shake. LPS is the last point of support. Some charts may have more than one LPS despite the supposedly extreme accuracy of the term. BU - "back-up" - backups are a common building block prior to larger price increases and can take many forms, including a simple rollback or a new TR at a higher level. ------------------- Share your opinion in the comments and support the idea with Like. Thanks for your support! info taken from WyckoffAnalysis
Education
by DeGRAM
22
Formation of consolidation according to Wyckoff Phase 1 : Stopping the previously dominant trend. The offer prevailed. Decrease in supply is indicated by preliminary support (PS) and sales climax (SC). These events are visible on the charts, where widening spreads and high volume reflect the transfer of a huge number of shares from one speculator to another. As soon as sellers weaken, an automatic rally (AR) follows, consisting of both demand for stocks and covering short positions (two types of ogrok are activated). A successful secondary test (ST) in the SC area will show a decrease in sales, as well as a narrowing spread and a decrease in volume, usually stopping at the same level as SC. If ST falls below SC, either lows renewal or consolidation formation can be expected. The SC and ST minimums and the AR maximum set the boundaries of the TR. Levels can be drawn to help see the market as shown in the two accumulation charts above. Phase 2 : In Wyckoff's analysis, Phase B acts as a “cause-building” for a new uptrend (see Wyckoff's Law # 2 - “Cause and Effect”). In Phase 2, large players accumulate relatively inexpensive stocks in anticipation of a mark-up. The accumulation process can take a relatively long time and includes buying stocks at lower prices and checking for price increases by short selling (false breakouts). Typically during phase 2 there are multiple STs as well as upward actions at the upper end of the TR. In general, as TR develops to acquire most of the remaining supply, the majority of its interests are net buyers of shares. Buying and selling impart a characteristic up and down price movement to a trading range (flat). At the beginning of phase 2, the average true range is wide and accompanied by a large volume. However, as the professionals absorb the supply, the volume of the downward swings within the TR may diminish. When it turns out that stocks are likely to be depleted, the market is ready for Phase 3. Phase 3 : The instrument goes through a critical review of the remaining supply, allowing the big players to make sure the instruments are ready for growth. As noted above, a spring is a price movement below the TR support level (set in phases 1 and 2) that quickly reverses and returns back to TR. This is an example of a false breakout. In reality, however, it marks the beginning of a new uptrend after grabbing liquidity, delaying late sellers. In Wyckoff's method, a successful test of the supply, represented by a spring (or shake out), provides an opportunity for higher expectation trading. A low volume shake test indicates that the instrument will be ready to go long, so now is a good time to enter at least a partial long position. Phase 3 : There is a constant predominance of demand over supply. This is evidenced by the promotion model (SOS) with widening price spreads and increasing volumes, as well as the reaction (LPS) to smaller spreads and reduced volumes. During phase 3, the price will advance to at least the top of the TR. The LPS in this phase is a great place to go long. Phase 5 : The instrument leaves the TR zone, growth is forming, as demand is under complete control. Shakes and more typical reactions are usually short-lived. New higher-level TRs, involving both profit-taking and consolidation by large players, can occur at any time in Phase 5. These TRs are sometimes referred to as "stepping stones" on the path to even greater ------------------- Share your opinion in the comments and support the idea with Like. Thanks for your support! info taken from WyckoffAnalysis
Education
by DeGRAM
17
Formation of consolidation according to Wyckoff Phase 1 : Stopping the previously dominant trend. The offer prevailed. Decrease in supply is indicated by preliminary support (PS) and sales climax (SC). These events are visible on the charts, where widening spreads and high volume reflect the transfer of a huge number of shares from one speculator to another. As soon as sellers weaken, an automatic rally (AR) follows, consisting of both demand for stocks and covering short positions (two types of ogrok are activated). A successful secondary test (ST) in the SC area will show a decrease in sales, as well as a narrowing spread and a decrease in volume, usually stopping at the same level as SC. If ST falls below SC, either lows renewal or consolidation formation can be expected. The SC and ST minimums and the AR maximum set the boundaries of the TR. Levels can be drawn to help see the market as shown in the two accumulation charts above. Phase 2 : In Wyckoff's analysis, Phase B acts as a “cause-building” for a new uptrend (see Wyckoff's Law # 2 - “Cause and Effect”). In Phase 2, large players accumulate relatively inexpensive stocks in anticipation of a mark-up. The accumulation process can take a relatively long time and includes buying stocks at lower prices and checking for price increases by short selling (false breakouts). Typically during phase 2 there are multiple STs as well as upward actions at the upper end of the TR. In general, as TR develops to acquire most of the remaining supply, the majority of its interests are net buyers of shares. Buying and selling impart a characteristic up and down price movement to a trading range (flat). At the beginning of phase 2, the average true range is wide and accompanied by a large volume. However, as the professionals absorb the supply, the volume of the downward swings within the TR may diminish. When it turns out that stocks are likely to be depleted, the market is ready for Phase 3. Phase 3 : The instrument goes through a critical review of the remaining supply, allowing the big players to make sure the instruments are ready for growth. As noted above, a spring is a price movement below the TR support level (set in phases 1 and 2) that quickly reverses and returns back to TR. This is an example of a false breakout. In reality, however, it marks the beginning of a new uptrend after grabbing liquidity, delaying late sellers. In Wyckoff's method, a successful test of the supply, represented by a spring (or shake out), provides an opportunity for higher expectation trading. A low volume shake test indicates that the instrument will be ready to go long, so now is a good time to enter at least a partial long position. Phase 3 : There is a constant predominance of demand over supply. This is evidenced by the promotion model (SOS) with widening price spreads and increasing volumes, as well as the reaction (LPS) to smaller spreads and reduced volumes. During phase 3, the price will advance to at least the top of the TR. The LPS in this phase is a great place to go long. Phase 5 : The instrument leaves the TR zone, growth is forming, as demand is under complete control. Shakes and more typical reactions are usually short-lived. New higher-level TRs, involving both profit-taking and consolidation by large players, can occur at any time in Phase 5. These TRs are sometimes referred to as "stepping stones" on the path to even greater ------------------- Share your opinion in the comments and support the idea with Like. Thanks for your support! info taken from WyckoffAnalysis
Education
by DeGRAM
15
Can we create the strategy that can wining the market??Hi guys, im guaddi min homie. I will give you two options: 1. Have stable profits in the market on a regular basis 2. Get rich quick in a short time but potentially lose all your profits quickly You will definitely choose the first option,right?. You've heard a lot of people make hundreds of thousands of dollars a day, but that's just the surface,maybe make a profit today, but the next day they will lose more than your profit. In fact, anyone can make money from trading but there are quite a few people who make a steady profit. When people enter their trades on impulse, they can make a profit for a while but can't make a profit in the long run.If you want to be a professional in trading, you must create your own trading strategy. Are professional traders good predictors of the future??? That's definitely not the case. We think we have to learn a lot of this, a lot of that, this indicator, this candlestick pattern To be able to accurately predict the next direction of the market. And of course that's not the case. The key of succes trading is the trading strategy have a good RR ratio and reasonable winrate with that RR. Or perhaps, in some cases your win rate can be very high along with the profit is also very large. To create a stable trading strategy according to the price action method or indicator, the first job is to identify the trend. You can use moving averages or draw trendlines. You can refer to strategies on youtube, forums or create your own strategies with indicators, or simply just resistance, support,...Remember no one strategy can has a 100% win rate,like I said, the win rate is just enough and the RR rate is good. I have a position with 100 USD account, if I win I get 1.5 USD if I lose I lose 1 USD but the win rate of this order is 50%,For every 100 orders like that, my average profit is 25 USD. However in trading, we can raise 50% win higher or 1.5 USD profit to 2 USD profit. You can set a fixed stop loss for example 2USD ,5USD and set the take profit 1.5 times the stop loss.Your risk should only be from 2-4% of your account. Doing so, in the short term you may lose, but in the long term, you will definitely make a profit. I don't rate strategies with high win rate but low return/profit .I just need a strategy that has a 50% win rate with a RR ratio of 1/2 or 1/1.5 Your trading strategy may have a losing streak of up to 5 even 7, but your win rate is 50% with RR ratio 1/2.So in the long term you will never lose.Such losing streaks are extremely normal and you don't need to worry because you still have a long term advantage. I have met people who every time they lose 2-3 in a row the emotional side kicks in and they start trying to develop a better strategy, despite having thoroughly tested their strategy and knowing that It is very beneficial.Because they don't stick to that really good strategy. If you have created a really good strategy for yourself then congratulations, you have a formula for winning the market, all you need to do is be patient and patient,the ratio is quite high in the case that you should not break the trading principle(In cases, you will have to make decisions and those will help you to grow up), and remember just follow the trend. See you in my other posts, thanks.
OANDA:XAUUSDEducation
by UnknownUnicorn24937010
Components Of The Most Effective StrategyComponents of the most effective strategy Things are indicated that can reveal the maximum potential of your strategy, or change it a little so that you are successful. Theory Do you have enough knowledge base about the market, terminal, competition, nuances, technical and fundamental analysis, your own capabilities to feel quite comfortable in the market? Objective Were you able to define your goal, what would you like to see from yourself in the future? Is it based on a constructive vision of the market? Economy Are your resources being used productively? Do you use money management and risk management in your strategy? Simplicity Are there things in your strategy that you do not understand or could not make out? If so, get rid of it. The strategy should be as easy and understandable as possible. Psychology Are there elements of psychology in your strategy? What are you doing to get rid of the human factor and bring everything into a state of consistency? Flexibility Is it possible to move resources within your strategy? Will you be able to quickly respond to the volatility, cyclicality of the markets? Speed Is it possible to quickly redirect your "forces" within the strategy? Do fundamental things, undefined responsibilities and forms diminish your ability to act quickly? Security Is it clear which information has to be kept secure? Do you spread your plans? Initiative Does the strategy allow you not to follow the crowd and stay ahead of the competition? Accuracy Are you focusing your efforts in those areas that provide the greatest opportunity? Commitment Does everyone feel a part of the initiative and passionate about achieving its goals? Or do just a few people “own” the initiative?
Education
by Lingrid
1
Major fundamental news affecting The PriceFundamental news in the forex market provides the greatest energy for price movement. Only often these movements are unpredictable. I have a news trading strategy in my feed titled "How to trade The News Correctly" , I recommend it to study if you have an aggressive trading style and want to earn even more on news 1) Employment figures The most important news event that all speculators and investors are guided by is non-farm pay. This news event increases several times, at the time of the news release, the volatility of the main instruments on which traders earn. The NFP usually comes out on the first Friday of every new month. 2) Balance figures An indicator characterizing the difference between the value of exported / imported goods and services 3) Speeches and minutes Last mention of key speeches and minutes such as ... 1) DOMC Statements and Press Conferences 2) Voting on MPC ratings and speeches by the Governor of the Bank of England 3) Press conferences of the ECB and speeches by the President of the ECB 4) Retail Sale figures the indicator characterizes the strength of consumer demand. Its growth indicates an increase in the production of goods, a strengthening of the economy and currency. Included in the calculation of GDP 5) Consumer Price Index (CPI) Reflects the shift in the cost of core consumer goods and services 6) Expected and Forecasted Figures on the way out news 1) Positively affects the strengthening of the currency when the actual figures after the release of the news turned out to be better than the predicted ones 2) Badly affect the strengthening of the currency when the actual numbers are worse than expected 7) Any kind of news that is spoken during these events has a very strong effect on all foreign exchange and not only markets. Traders navigate and trade depending on how they think a certain currency of the respective country can react. ❗ ❗ ❗ Constructiveness in trading: follow the news when trading and try not to open orders for half an hour, at the time of release and after the release of news for half an hour ❗ ❗ ❗
Education
by DeGRAM
2
The Death of Buy-and-Hold reduxAs a follow-up to my previous article, “The Death of Buy-and-Hold” , Bitcoin in these last four months has demonstrated quite vividly to us the error of that outdated methodology, that Buy-and-Hold is truly dead and technical trading is superior to what is called “investing” today. In the two month period from February, 2021 through April, Bitcoin enjoyed a meteoric rise, gaining 100% in value during that 60 day period. However, as they say, “The bigger they are, the harder they fall…“ And fall it did… Bitcoin gave back every penny in the following two months crashing back to its February levels. The most profitable, reliable, and consistent trading systems available to the average investor, as I demonstrated in previous articles , are those systems based on "supply and demand" methodologies. We can’t fight the hedge funds. We can’t fight China. We can’t fight the “whales” of the crypto market. … But we can follow their footprints as traders . I backtested Bitcoin based on my own proprietary supply and demand methodology, but I would assume that any supply and demand system would achieve similar results because we are all chasing the same protagonist (or antagonist, depending on how you look at them). The results: From January 1, 2021 through June 22, buying and and holding Bitcoin would’ve net a zero return for the investor! Following a supply and demand methodology, however, the casual trader who might work on the 4 hour charts, checking in on their account once or twice per day, I identified 11 trading opportunities which resulted in a net profit of 42 percent . Why would the investor make zero and the trader make 42%? Buy-and-hold only works in one direction… When the product gains value. Supply and demand trading lets you profit rain or shine, by the day or by the hour, in good times and bad. I bring this up, not ultimately as an "I told you so" but as an encouragement: Yes, indeed, it is possible to pull a reliable, steady income from the markets, from the cryptos , from the indexes , from the commodities , rain or shine, week after week, once you learn to "see the money flow" and follow the trail as a trader . One does not have to have their livelihoods be subject to the whims of the economy, of policies imposed by public officials, of Tweets from CEOs, from natural disasters, from supply chain disruptions, the whims of totalitarian nations, nor an employer, employees, or customers. Most importantly, Supply and Demand trading protects us from the large financial institutions who regularly engage in Market Manipulation , whose tactics include fear and greed news cycles, whose analysts and "experts" foment 'sentiment' among their viewing audience, whose priority is to broadcast information that will financially benefit themselves, and not their viewers. Trade well!
BITSTAMP:BTCUSDEducation
by ocaptain
20