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Psychology

Tired of Losing? "The Market cannot hurt Me. I can only hurt my Self!" - Josh Ridenour There is a Time for Losing - The 29th verse of the Tao Te Ching is about how there is a time for everything in life. A time for being ahead, a time for being behind. In the market, there is also a time for everything. A time for large profits, small profits, break even trades, losers, and consecutive losers which lead to a draw down. It is easy to get caught up in the heat of the moment depending on where you currently are. But it does not really matter what part of the cycle you are in, it is all part of a traders life and the cycle of a trading performance. Stop Predicting! It is a false belief to believe prices and markets can be predicted. If it were possible eventually the majority of market participants would figure it out and there would be no one left on the other side of the trade, and the market would cease to exist entirely. If it were possible to predict markets, you could avoid losing trades and only take winners. Anyone who has been trading for very long knows this is simply not the case. The problem with making predictions is you then shut your mind off from the information the market gives you. Instead of being open to what is happening, your mind becomes rigid and can only take in what confirms your beliefs. This prevents you from being able to flow with the market, and open your self to the opportunity in front of you. The best traders admit when they are wrong, get out, and even reverse if necessary. If you dont believe this - listen to a stock analyst on Mad Money or any other TV show about stocks. They are often so confident in what they say that they might even convince you! But there is a reason why he is on TV talking about markets, and not trading them. If he could trade the markets and make money he would have no reason to go on TV as the financial rewards are miles apart. In fact, analysts make the worst traders because they are so caught up in their thoughts and beliefs about market direction that they cannot trade effectively! Cease efforts "Wu Wei" In Eastern Philosophy there is a term "Wu Wei." It cannot be fully understood or explained in words, only experienced. At the essence of its meaning is to "Let be" to "allow" or "flow like water down a stream." The point is to stop resisting, and stop trying so hard. The harder you grasp at something, the harder you try to succeed, the more you fail. If you are constantly trying to make money, and constantly trading, you are probably not making a consistent return. Rather than trying so hard, let trading come naturally. Profitable trading is effortless. It does not require thought, only action. In fact, I try to do as little as possible, and trade as little as possible. My most profitable weeks I hardly trade at all! This has become a fundamental aspect of my trading system. Instead of constantly trying to make money all the time, I simply wait for a pot of gold to be in front of me before I do anything. Then, I take it. Again if you dont believe me; try as hard as you can tomorrow to make as much money as possible and see what happens! Stop Trying to Remove or Control Emotions - Most traders who have been trading for a while come to the idea that emotions prevent them from success and are standing in their way. I know, as I have been there. And so we try as hard as we can to remove emotions from our trading. There is a problem with this concept. You are a human right? As long as you are human, you will have emotions; no matter how hard you try to remove them. It is simply not possible. So removing emotions or attempting to do so is the wrong approach. Instead; use your emotions to your advantage! They are warning signs; listen to them. Then there is the negative internal dialogue which the market often brings out. After a series of losing trades, many traders get upset and feel bad. They blame the market for taking from them, and feel like a loser. How do you think a trader will perform after feeling this way for a few days or longer? His performance suffers as he tries to take back what was once his and he compounds his mistakes by trading out of a negative mindset. You have to learn to recognize and become aware of your internal dialogue. It is very important to your trading career, and your every day life. Most of us live our lives without the slightest idea as to what we are doing to our selves. Your mental structure is a choice. This is what I mean when I say "The Market cannot hurt me, I can only hurt my Self." My Trading Psychology book "A Traders Mentality - The Path of Self Discovery and Being a Trader" is all about these ideas and how to free your mind and better your trading performance. If you found this helpful, please like! Feel free to comment or ask questions.
SP:SPX
by tradersmentality
Tired of Losing?"The Market cannot hurt Me. I can only hurt my Self!" - Josh Ridenour There is a Time for Losing - The 29th verse of the Tao Te Ching is about how there is a time for everything in life. A time for being ahead, a time for being behind. In the market, there is also a time for everything. A time for large profits, small profits, break even trades, losers, and consecutive losers which lead to a draw down. It is easy to get caught up in the heat of the moment depending on where you currently are. But it does not really matter what part of the cycle you are in, it is all part of a traders life and the cycle of a trading performance. Stop Predicting! It is a false belief to believe prices and markets can be predicted. If it were possible eventually the majority of market participants would figure it out and there would be no one left on the other side of the trade, and the market would cease to exist entirely. If it were possible to predict markets, you could avoid losing trades and only take winners. Anyone who has been trading for very long knows this is simply not the case. The problem with making predictions is you then shut your mind off from the information the market gives you. Instead of being open to what is happening, your mind becomes rigid and can only take in what confirms your beliefs. This prevents you from being able to flow with the market, and open your self to the opportunity in front of you. The best traders admit when they are wrong, get out, and even reverse if necessary. If you dont believe this - listen to a stock analyst on Mad Money or any other TV show about stocks. They are often so confident in what they say that they might even convince you! But there is a reason why he is on TV talking about markets, and not trading them. If he could trade the markets and make money he would have no reason to go on TV as the financial rewards are miles apart. In fact, analysts make the worst traders because they are so caught up in their thoughts and beliefs about market direction that they cannot trade effectively! Cease efforts "Wu Wei" In Eastern Philosophy there is a term "Wu Wei." It cannot be fully understood or explained in words, only experienced. At the essence of its meaning is to "Let be" to "allow" or "flow like water down a stream." The point is to stop resisting, and stop trying so hard. The harder you grasp at something, the harder you try to succeed, the more you fail. If you are constantly trying to make money, and constantly trading, you are probably not making a consistent return. Rather than trying so hard, let trading come naturally. Profitable trading is effortless. It does not require thought, only action. In fact, I try to do as little as possible, and trade as little as possible. My most profitable weeks I hardly trade at all! This has become a fundamental aspect of my trading system. Instead of constantly trying to make money all the time, I simply wait for a pot of gold to be in front of me before I do anything. Then, I take it. Again if you dont believe me; try as hard as you can tomorrow to make as much money as possible and see what happens! Stop Trying to Remove or Control Emotions - Most traders who have been trading for a while come to the idea that emotions prevent them from success and are standing in their way. I know, as I have been there. And so we try as hard as we can to remove emotions from our trading. There is a problem with this concept. You are a human right? As long as you are human, you will have emotions; no matter how hard you try to remove them. It is simply not possible. So removing emotions or attempting to do so is the wrong approach. Instead; use your emotions to your advantage! They are warning signs; listen to them. Then there is the negative internal dialogue which the market often brings out. After a series of losing trades, many traders get upset and feel bad. They blame the market for taking from them, and feel like a loser. How do you think a trader will perform after feeling this way for a few days or longer? His performance suffers as he tries to take back what was once his and he compounds his mistakes by trading out of a negative mindset. You have to learn to recognize and become aware of your internal dialogue. It is very important to your trading career, and your every day life. Most of us live our lives without the slightest idea as to what we are doing to our selves. Your mental structure is a choice. This is what I mean when I say "The Market cannot hurt me, I can only hurt my Self." My Trading Psychology book "A Traders Mentality - The Path of Self Discovery and Being a Trader" is all about these ideas and how to free your mind and better your trading performance. If you found this helpful, please like! Feel free to comment or ask questions.
Education
by tradersmentality
Strong Bulls, Weak Bears, Strong Bears, Weak BullsStrong Bulls are always looking to buy. Strong Bears are always looking to sell. Weak Bulls and Weak Bears are usually indecisive and wait until its too late, entering at the worst possible time. In general, Strong Bulls sell to Weak Bears, and Strong Bears buy from Weak Bulls. When both Strong Bulls and Strong Bears sell (strong bulls to take profits, and strong bears to initiate shorts), there is only one direction for the market to go. This is when leads to strong moves in the markets. When prices are in a strong bull trend Strong Bulls buy at any price, including a high price. This strong trend can be in the form of a spike or a tight bull channel . The Strong Bulls are aware prices are in a strong trend, and therefore are willing to buy high. This buying prevents a pullback and instead prices continue to rally. Strong bears see this and are not willing to sell yet, and so the lack of selling pressure creates a vacuum and also prevents a pullback. The same is true for Strong Bears in a strong bear trend. When prices are in a weaker bull trend, such as a broad bull channel , bulls who buy high tend to get trapped and are either forced to exit and buy lower, or scale into their position at a lower price. This is also refereed to as "averaging in to a position." When strong bulls see that bulls who buy high are getting trapped, they will only look to buy at a discount, or a pullback and will sell to take profits when prices reach near the highs. This is what feeds the bull channel , which is a form of a slanted trading range. When prices are in a trading range, both Strong Bulls and Strong Bears will only look to buy low and sell high. Most will also scale into their position if prices go against them, and they tend to take smaller profits like 1X risk. What about Weak Bulls and Weak Bears? Weak bulls and Weak bears tend to flip flop in their positions. In other words, they see a bear leg and assume prices are going lower and sell low in the bear leg, just before a rally begins. This is most obvious when prices are in some form of trading range or weak channel where there is heavy two sided trading. Weak bulls also buy high in a bull channel , or high in a trading range. They buy from strong bears who are selling high prices. They are then forced to exit or scale in, and contribute to the selling if they exit. Then when prices are near the bottom of the channel, they become convinced the market is now selling off, and sell low. This repeats over and over as they hope for a breakout and fail to realize what is occurring. A major key in learning to become a profitable trader is the ability to understand what the institutions (strong bulls and strong bears) are doing at any given time. This is how you follow "smart money." If you do not understand what prices are telling you; you are more likely to act as a Weak Bull and Weak Bear, and contribute to the market. To learn more about how to understand institutions and price tendencies, see below. If you found this helpful please like! Feel free to comment or ask questions.
by tradersmentality
1
There are still people buying this ponzi scheme :oI thought every one figured out this was a blatant ponzi scheme. Insiders did make up fake partnerships. Insiders (cost basis of zero btw) did keep selling in plain sight. Incredible... They sure don't call it "dumb money" for nothing. From 3.50 to 0.0005 LOL! This will be hilarous. Probably bounces on the way down, but ultimate fate is ZERO. I see a big buy with no stop loss at sub 1 cent. Stop loss is zero, target is *10 or more. At minimum *5. When I say big I don't mean the position size but how I view the trade, as a "big one". No point having a stop loss, might as well hold bags. Risking 1 to make 10. No point trying to risk 0.5. This is how I see it. The lower it goes, as long as it does not go straight to zero, the harder it will bounce and go to 1 cent or more at least (even if it falls another 50%). If this scam gets banned by then or exit scams all at once the trade is invalidated. I have no interest in the 10 cents and 5 cents supports. Staying away.
POLONIEX:XRPUSD
by MrRenev
43
The ramblings of a wannabe trader #13"A good trader can hope but should not expect!" - TulpenFieber -What we Expected- When I was a child most nights were long and hard. It was rare that a night was quiet. It was rare that you were able to sleep enough to feel like a human being the next day. But occasionally it did happen. Every once in a while, there were no fires to put out. Every once in a while you didn’t have to wake up in the middle of the night and go hide in the bunker. All of us hoped for such a night. Knowing how rare they occurred, we developed a saying. "Expect the worst, hope for the best." If we expected a quiet night but didn’t get it, the next day was much more painful. The night longer than usual. The problem wasn’t external. The problem was the psychological obstacles we had to overcome due to the unmet expectation. -What it Means to Expect- Expectation is a “rigid clinging to unreal belief.” Expectation is demanding exactly what we want to happen regardless of what is actually happening. Expectation is typically fixed and frozen. It is inflexible and rigid. It is unable to give or to bend or to change. Sadly, expectations are limited to our previous experiences. We are unable to expect something that we haven’t seen before. We cannot expect something better than what we know. The worst part of expectations is what happens when we hold onto them. They infect and overwhelm us, like a virus. They consume us like the plague. We are unable to give them up. We are unable to let go. Expectation influences our behavior and attitudes. It affects how we see the world. And then how we respond to it. -What it Means to Hope- Hope on the other hand is much different. While expectation is the assumption that something is actually going to happen, false or not, hope is the wish for something to happen. Hope is flexible. It is alive. It responds to all situations instead of battling against the ones that appear to be opposite. Hope admits reality, always acknowledging what is, but never resigning itself to what is. Hope allows other to grow. It desires good for another, but gives them room to change over time. Hope is not limited by previous experience. We can hope for more than what we know. We can hope for something better. Our imaginations and dreams influence our hopes.´Since hope admits uncertainty, it does not die when it goes unmet. A hope deferred does not kill the soul. We may need to adjust our hopes, but we can always keep hoping. Hope helps us to keep moving forward. Hope fills us with life. -Unmet Expectations- What happens when our expectations go unmet? Expectation is so rigid, we always respond negatively. We become angry. And then we make an attempt to control. We try to force our expectations. We manipulate. We bribe. We shame. Expectation does not let us accept what we do not want. If we hold to a false expectation, a belief that it will be and should be different than it is, it will poison our perspective. It will negatively influence how we see a market and how we navigate it. When it does not live up to our hopes, we can keep hoping for it because hope is flexible. We may adjust our hopes based on what we learned. We may even let go of our hopes realizing they were too unrealistic. But we can always hope for it. As a wise man once said, “There is no such thing as a false hope.” BTC is hope!
COINBASE:BTCUSD
by TulpenFieber
The Hardest Part of Trading (Not what you Think)Seeking More information - When first introduced to markets, every beginner immediately thinks he must learn the rules of the market in order to succeed. He initially believes there is a "holy grail" a system, a leader, or a mathematical equation like Fibonacci levels. He believes these will protect him in the market, and will lead him to a profit once he understands them. The problem is, there are no set rules which work consistently in the market. If there were, the institutions and everyone else would simply use them. What would happen then? Well, there would be no one or institution to take the opposite trade, and the market would cease to exist altogether. And so the new trader changes from one system to another, from one guru to another, and constantly thinks he must learn more information in order to succeed. What he believes to be preventing his success is a lack of knowledge, a lack of information. But you see, the more information you have does not necessarily lead to better decisions. There is a lot of evidence to support the contrary, and suggests that too many choices actually impair decision making skills. On top of this, most of the information in the trading world is quite simply wrong. There are 10 x more scam artists who claim to "know" and will take your money to teach you how to trade than there are profitable traders. These people do not understand markets them selves, and cannot make money in the market, so instead they prey on new market entrants. This is the primary reason I started my trading website; to provide high value information at a low cost. And to give those who are serious about trading an actual chance to make it in the markets. Dealing with Uncertainty - The reason most traders seek new information is because they are afraid of uncertainty and want certainty. They seek something to protect them in the market. Something to protect them from themselves. A system that will guarantee a profit. But there is no such thing. Markets constantly change and evolve through the market cycle. And there is no system that works across all three parts of the market cycle. The sooner you realize this, the closer you will be to making a profit. It is very hard to learn how to deal with uncertainty. But you do it every day. When you wake up in the morning are you certain you will live through the end of the day? No, and you can never be completely certain of this. Certainty is an illusion. There is no certainty in this life. The only certainty is... uncertainty! Patience and Discipline (Ability to Do Nothing) - Every profitable trader uses these two terms (patience and discipline) when asked how they are profitable. When a beginner hears this, he rarely understands what this means. Discipline means doing something even when you dont want to do it, or doing something you dont want to do. Patience means waiting for your turn, or waiting for something to happen. In other words, when the time is not right you must do nothing. This stokes a fear in most people, especially in today's give me distractions, social media world. They say "Well what am i supposed to do if i am doing nothing?" Doing nothing seems contrary to getting what you want, getting somewhere. In and outside of the trading world everyone believes in order to be a "trader" you must trade - constantly. This is why most lose money. Because they do not understand that there is a time for doing nothing. And that time is most of the time! See more on understanding markets (Price Action Trading) and yourself (Trading Psychology) at my website below. If you found this helpful please like! Feel free to comment or ask questions.
SP:SPXEducation
by tradersmentality
TSLA 60% Bull ProbabilityTSLA reversed up from a failed bear breakout and sell climax. The bulls have closed the exhaustion gap and created several potential breakout gaps around 200. The bulls now have a 60% chance of creating a second leg up and test of the middle of the upper trading range around 300. The bears need a strong breakout below the 180 higher low. The probability of this is 40%. Once prices get back into the 260-360 trading range, prices will once again return to a 50/50 directional probability. If the bulls continue to get strong consecutive closes, and the bears do not get any strong selling pressure, the probability will slightly favor the bulls for a test of the high of the range. To learn more about how to determine the directional probability and how to create a trade based on this, please see below. If you found this helpful please like! Feel free to comment or ask questions.
NASDAQ:TSLALong
by tradersmentality
How to Trade to Win"Those who lose - trade not to lose. Those who are successful - trade to Win." Losing Vs Winning Most traders are more focused on not losing than they are on winning. Do you understand what this means? This means you are acting not in your best interest, but against your self. By focusing on how much you can or might lose, or on not losing, you increase the likelihood of making mistakes which ultimately lead to a losing traders equation, and a negative equity curve. Profitable traders do not care about losing. They understand it is part of winning. They focus on winning. What is the best move in this moment? Should I get out or continue to hold based on what the market is telling me? Winning traders accept the risk totally and completely; before getting into the trade. In other words, they have already lost what is on the line. Therefore they act in their own best interest, not based on their thoughts about what they could lose, but based on what the market is telling them to do in this moment. Other than this psychological difference, here are a few other key components on How to Trade To Win. Defined Edge - Every trader who is making money in the market has some form of edge which he employs. Even if his edge is purely intuitive. This is extreme and rare however, and most traders have clearly defined their edge and will only trade that edge. This removes randomness. Many beginners think they are going to study the market and be able to trade the market no matter what it is doing (trade intuitively). This is simply not the case for most. The purpose of studying the market is to identify opportunities in form of an edge. An edge is a setup or context which repeats itself over time. It might occur once a day, once a week, or once a month. It does not matter. All that matters is that you only trade your clearly defined edge, and leave the randomness behind. For more information, you can read about the edge I use in every market I trade. We also describe how you can develop your own edge, and trade it in any market. Stop Doing, Relax Efforts - If you are losing in the market, chances are you are doing too much. Many beginners, and even experienced traders think they must be trading in order to be a successful trader. This leads to random trading, over trading, and mistakes which compound themselves. You end up digging a hole, and instead of looking for a way out, you look for a different shovel. The harder you try to make a profit, the more you do, the more actions you make, and the more you lose. The market rewards those who are observant, disciplined, and most importantly patient. The market takes from those who try too hard, and do too much. If you dont believe me, try as hard as you can to make money, and see how you do! By relaxing your efforts, you relax your mind. In turn relax your actions and decision making. You do not have to trade every day to be a profitable trader. It sounds paradoxical doesn't it? How can I make money trading if I dont trade? By only trading when it is appropriate like when your edge is present, you better your odds of success. Profitable trading does not come from trading constantly. Profitable trading comes from the act of non-doing, and out of a state of emptiness. Profitable trading is effortless, it comes out of waiting for just the right moment before taking action. And then waiting some more while the market proves you right or wrong. Profitable trading is not forced; it just happens. Active VS Passive Trading - This is very similar to the previous topic. Active trading is a trader who is constantly in the market, trading whatever he see's or feels right. This trader is often wrong, and when he is right he makes the mistake of exiting too early due to fear. This leads to a negative traders equation as he continues to struggle to do the right thing. An Active Trader mentality is one which does not believe in "non-doing." He believes he must, and can, do something. He is afraid of missing out and is often swayed by thoughts and emotions. So he continues trading never looking back, and at the end of the month cannot figure out why his account is in the red. A Passive Trader is the opposite. He passes on more trades than he takes. He does not care about what he misses out on. He only cares about what he takes and the actions he makes in the market. He does not force trades, he just watches the market until he knows what to do. Or he waits and waits until his edge finally sets up. He is passive in his efforts, rather than active. He does not care if he doesn't trade today, this week, or even this month. Trading is not what is important to him; winning is. He knows that profits come from sitting, waiting. Because he is willing to wait, he is peaceful. And profits continue to come into his account, effortlessly. For more information on developing this type of mentality, see below. We also detail how to understand markets through price action, how to create, define, and employ an edge, and how to develop your traders mentality to succeed in markets. If you found this helpful please like! Feel free to comment or ask questions
Education
by tradersmentality
Unethical trading representations (educational)This topic has not to my knowledge been covered on Tradingview before now. I specifically explore ' unethical trading representations' and explain in the limited time what that means as a concept. To be absolutely clear, I am not asserting that every paid-for service or representation is unethical or illegal. What I am saying is that new traders and the inexperienced are like 'fresh meat' for these schemes, that aim for a small percentage of them. The impact assessment - whether or not new traders pay for 'inner circle' access in these things, is of real importance. Nothing said in this post refers to any identifiable individual, group or entity. New traders especially need to be hyper-vigilant and cautious before parting with their money. But even if not parting with money, the potential negative impact is of importance. I declare a personal bias, that I have been stung by three of these early in my trading career.
Education
by Captain_Walker
CALL ME CRAZY: BITCOIN COULD HIT $30,000 IN 2 YEARS.In this screencast I make out the argument for Bitcoin getting to $30,000 USD in 2 years. This is not a prediction. My speculative projection is based on geopolitical, macroeconomic issues and market psychology. No fundamentals involved. Have a listen. If you have alternative ideas do share by commenting or PM. Let's share and learn together. DISCLAIMER : This educational post is speculative. Opinions expressed here are not intended as 'advice' even if so construed. DYOR! Your decisions in the markets are your own. If you make decisions based on this post and you lose money, you are totally responsible for your losses .
BITFINEX:BTCUSDLong
by Captain_Walker
8
FOR THE LOVE OF GOD STOP DRAWING THIS OBVIOUS EFFING WEDGE.Scroll down. Take a look at all of these "ideas." I collected these off of the FIRST TWO PAGES of tradingview ideas for TRX. Let me take a wild guess where your stop loss is... Did I guess correctly? Now let's say I want to fill a 20 million dollar bag of TRX, and I know where ALLLL of your stop losses are. What should I do? I'd push the price down right to where your all of your stops are, scooping up all your liquidity! Well what do you know, I've filled my bag of TRX! Time to push price up again! This is where you blame your losses on "volatility." I hope you weren't leveraged. Why don't you try placing your buy order where you'd place your stop loss, eh? Don't be a predictable trader.
by DadShark
3
What is "Price Action"? What about indicators?There is no one clear definition of price action. It can be as simple as "Every tick on any given chart, of any given market." However this definition is too broad and does not adequately describe the term. A better definition is "The collective result of buyers and sellers entering the market for any logical reason, which together create reoccurring patterns that can be analyzed and capitalized." Price action is based on humans behaving rationally, logically, and similarly in similar situations over time, and is the cumulative effect of institutional trading. It has been, and always will remain fundamentally unchanged. If you compare a chart from 100 years ago (such as the crash of 1929) with one of today with the time scales removed, you will not be able to tell the difference between the two. It does not matter if you compare a yearly, monthly, daily, or even 1 minute chart with any other chart of a different time frame. Price action appears the same and works the same in every market, and on every time frame. The institutions cannot hide what they are doing; price action is their foot print. Price action can be used to invest long term, or day trade any market. It allows a trader or investor to identify opportunities without the use of any indicators. In fact, all indicators are a derivative of price action in one form or another. Interestingly, the patterns which repeat as well as trend tendencies can be observed on different charts, even outside of markets. Can you tell a difference between these two charts? The first is a daily chart of CSX. The second is a 5 minute chart of the MES (micro s&p). All markets and charts look the same, and behave similarly. Once you understand the information within, you can understand what the institutions are doing at any given time.
TSX:ACB
by tradersmentality
HEXO Bull Profit Taking HEXO reversed down from a nested parabolic wedge, larger wedge and large low 2. The follow through selling has been good. The bears will likely get a second leg down before taking profits and before the bulls will look to buy again. This market is still in a bull trend, but wedges often lead to two legs sideways to down, convert the market into a trading range (atleast temporarily), and sometimes reverse the market into a bear trend. The bulls will look to form a double bottom or higher low around the $5 low. They will need to keep the bull breakout gap open in order to defend the strength of the bull trend. Otherwise prices are more likely to convert into a bull flag trading range. If you found this helpful, please like and share! Feel free to comment or ask questions.
TSX:TLRY
by tradersmentality
3
I was just trading Bitcoin all along...D'OH! The more you look at charts (and social networks), the more you see infinity repeating patterns. The more you recognize infinity repeating patterns, the more you understand the crowd mentality. The more you understand the crowd mentality the better decisions you make. My tactics are all about front running the herd. Selling before they sell or buying before they buy. You have to put in the time to see this. Those that do not, the "fx lifestyle trade from my laptop the market is an atm just look for chart patterns and indicators" morons, the "hodl moonboys ignore the news noise its just fud", are the ones we frontrunning, and the ones that end up losing all their money (ended in my pockets). No way around it. Well at least they get to be right 99% of the time thought ("right"), and without much effort. I prefer making money. Oh and it is just 1 piece of the puzzle obv...
by MrRenev
1
$ACB Weekly AnalysisThe past few weeks have been sideways to down from a lower high, but weak selling pressure. The bears want the lower high to hold and to test the double bottom around $5. Prices are currently in a converging triangle and bull flag trading range as both sides fight for control. If this week closes on its high, it would be a wedge bull flag, double bottom pullback, and also a double bottom with the previous failed bear reversal. If the bulls are able to form a wedge flag soon and keep the 5.25 bull gap open, they will increase the probability of a test of the all time high. Although there will probably be some profit taking at the new high since a trading range. The bears need strong consecutive bear bars and a breakout below the double bottom before the market is clearly no longer controlled by the bulls. If you found this helpful, please like! Feel free to comment or ask questions.
TSX:ACB
by tradersmentality
1
The Art of the FlowThe Art of the Flow Anyone who has been in the trading world for very long has heard you must "flow" with the market. Many people say it, but do they actually understand what it means? Can they truly accomplish this in the market or are they just speaking figuratively? Anyone can look at a chart and say "do this or that" or X happened because of Y, or say "I would do this in that situation." This is all hypothetical, and means absolutely nothing! There is a reason why intellectuals or really smart people cannot make money in the markets. And that is because they think. They think they have to know. They think about this or that, and attempt to understand what prices are likely to do before it happens. In reality all that matters is what you do, the actions you take in the market. And the best actions do not require thought. In other words, the ability to flow with the market is what separates the winners from the contributes. The truth is, it is very hard to flow with the market. Our minds and thoughts are constantly fighting our actions. Internal struggle prevents us from being able to accomplish the necessary goal of flowing with the market. Emotions, fears, and pain prevent us from taking the best action at the right time. A Professional Trader seems to always know exactly what to do, and when to do it. He seems to enter and exit at the best possible times. But how? Is it because he can predict the future of prices? Does he have a better understanding of price action than everyone else? This helps sure, but is not the true answer. The reason he is able to do so is due to a special talent, but it has nothing to do with predicting price movements. It is his ability to act by doing what the market instructs him to do, without giving it any thought whatsoever. He does not resist the market, nor does he become fixated on what should or shouldn't be happening. He simply responds. Like when someone throws a ball at your face; you do not think "I should move my head" you just move your head to prevent from being hit with the ball! A Professional Trader knows there is a lot more to trading than being able to understand what prices are doing or might do at any given time. Of course he must understand price action and price tendencies. But he only uses this as a tool of understanding markets. He knows the key is within his mind, and keeping it clear and free of clutter in order to always stay with the market. He keeps his mind clear like a window, not a stained piece of glass. He sees the market and world for what it is. He does not see the world through a stain of what he wants, or how he thinks it ought to be. He works on cleansing his mind and thoughts of the internal fight and outward fight of resisting the market. He focuses on taking actions he believes is correct based on what the market tells him - and he is often right and therefore rewarded. If you found this helpful please like! Feel free to comment or ask questions
A
by tradersmentality
MOST IMPORTANT TRADE LESSONS!Lesson 9 Trading Psychology is Important When you look at the market you should see your self. The market is a collection of buyers and sellers. You are a participant in that marketplace, and therefore you are the market. How can you understand the market without understanding yourself? The mental landscape of a trader is extremely important and very valuable to a profitable trader. Those that do not understand this, are likely not making money in the market. Most people wanting to be traders never stop to consider this, and they think it is more knowledge about markets they need to make money. Most of the time it is what is going on in their mind that needs work. If you think you are going to wake up one day and be a profitable trader without working on your self, you are mistaken. If you think you are going to read a few books or watch 100 videos on trading and walk into the market the following week and make money, the traders who know the value of internal work will thank you for your money! Of course you must first understand markets, price action, the traders equation, and how to read a chart. But after that you must move on and dive into your trading psychology . It is not understanding markets that brings money into your account. It is your understanding of your perceptions of the market, awareness of your internal dialogue, thoughts, and emotions, along with your knowledge of the market. Ultimately it is your actions that are generated from these that dictate whether or not you will make money. If you do not understand what is happening within your mind at any given time, you are unlikely to achieve consistency long term. Sure you may pick a few good trades. Anyone can find themselves in a winning trade, even those who know nothing about markets. But will they continue to perform well over a month or a year? It is very unlikely. Trading psychology is vital to trading, whether you choose to accept it or not. The market is a paradox, a contradiction. If your mind is tied up and you are unaware, you will make poor actions in the market. Your mind must be free. Free to flow with the market, regardless of what you want or expected. You must be able to bring your mind back to the market and the necessary action right now. If not, you will be stuck within thoughts of what happened 5 minutes ago, or held by anger and frustration for what the market should be doing. If you do not devote time to understanding your mental landscape you will never grow, and never escape the mental turmoil which the market can cause, no matter how much time you devote to understanding what markets do.. For more information on how to develop this awareness or understand your self on a deeper level, see trading psychology. Lesson 10 Allow for windfall profits Many traders believe they must hold for a reward of twice their risk or believe they have high probability and so exit at one times the risk before the market takes it back. These concepts and ideas are more likely to hurt your performance than benefit it. The truth is, the market offers what it offers, and that's it. Sure sometimes its exactly 1x the risk or twice the risk. Other times it is much more. Cutting a winning trade just because it is reasonable, does not make it the best choice. In fact, when you are in a position with exceptional follow through, you must allow it to flourish. In other words, you must allow it to grow into a windfall profit. It only takes 1 out of 10 of these types of trades to create a positive net result. If you cut this 1 trade short because the market has gone to twice your risk, you are only hurting yourself and your numbers. This is like cutting a flower when it is just starting to bud. You do not allow the flower to bloom , and prevent the beauty which will soon appear. Instead you must nourish the plant, give it water, and allow it to grow into what it can be. Cutting a winning trade short is a self inflicted wound. This is often due to fear such as fear of a reversal, or fear of giving back profits. Thoughts of getting back what you previously lost, or hanging on to what you have right now is what leads to these poor actions. Being unwilling to allow for a pullback against the position which is necessary to allow it to grow. So how do you know when to hold and when to exit? That takes experience. What is important is your willingness to learn, and openness to allow a great trade to flourish. However there are signs which can help you identify which trades are likely to turn into a windfall profit, and those that you should take what the market offers you. For clarity and more information on this see Investing Guide. *If you find this analysis helpful please like! Feel free to comment or ask questions.
COINBASE:BTCUSDEducation
by tradersmentality
THE MOST IMPORTANT LESSONS! Lesson 9 Trading Psychology is Important When you look at the market you should see your self. The market is a collection of buyers and sellers. You are a participant in that marketplace, and therefore you are the market. How can you understand the market without understanding yourself? The mental landscape of a trader is extremely important and very valuable to a profitable trader. Those that do not understand this, are likely not making money in the market. Most people wanting to be traders never stop to consider this, and they think it is more knowledge about markets they need to make money. Most of the time it is what is going on in their mind that needs work. If you think you are going to wake up one day and be a profitable trader without working on your self, you are mistaken. If you think you are going to read a few books or watch 100 videos on trading and walk into the market the following week and make money, the traders who know the value of internal work will thank you for your money! Of course you must first understand markets, price action, the traders equation, and how to read a chart. But after that you must move on and dive into your trading psychology. It is not understanding markets that brings money into your account. It is your understanding of your perceptions of the market, awareness of your internal dialogue, thoughts, and emotions, along with your knowledge of the market. Ultimately it is your actions that are generated from these that dictate whether or not you will make money. If you do not understand what is happening within your mind at any given time, you are unlikely to achieve consistency long term. Sure you may pick a few good trades. Anyone can find themselves in a winning trade, even those who know nothing about markets. But will they continue to perform well over a month or a year? It is very unlikely. Trading psychology is vital to trading, whether you choose to accept it or not. The market is a paradox, a contradiction. If your mind is tied up and you are unaware, you will make poor actions in the market. Your mind must be free. Free to flow with the market, regardless of what you want or expected. You must be able to bring your mind back to the market and the necessary action right now. If not, you will be stuck within thoughts of what happened 5 minutes ago, or held by anger and frustration for what the market should be doing. If you do not devote time to understanding your mental landscape you will never grow, and never escape the mental turmoil which the market can cause, no matter how much time you devote to understanding what markets do.. For more information on how to develop this awareness or understand your self on a deeper level, see trading psychology. Lesson 10 Allow for windfall profits Many traders believe they must hold for a reward of twice their risk or believe they have high probability and so exit at one times the risk before the market takes it back. These concepts and ideas are more likely to hurt your performance than benefit it. The truth is, the market offers what it offers, and that's it. Sure sometimes its exactly 1x the risk or twice the risk. Other times it is much more. Cutting a winning trade just because it is reasonable, does not make it the best choice. In fact, when you are in a position with exceptional follow through, you must allow it to flourish. In other words, you must allow it to grow into a windfall profit. It only takes 1 out of 10 of these types of trades to create a positive net result. If you cut this 1 trade short because the market has gone to twice your risk, you are only hurting yourself and your numbers. This is like cutting a flower when it is just starting to bud. You do not allow the flower to bloom, and prevent the beauty which will soon appear. Instead you must nourish the plant, give it water, and allow it to grow into what it can be. Cutting a winning trade short is a self inflicted wound. This is often due to fear such as fear of a reversal, or fear of giving back profits. Thoughts of getting back what you previously lost, or hanging on to what you have right now is what leads to these poor actions. Being unwilling to allow for a pullback against the position which is necessary to allow it to grow. So how do you know when to hold and when to exit? That takes experience. What is important is your willingness to learn, and openness to allow a great trade to flourish. However there are signs which can help you identify which trades are likely to turn into a windfall profit, and those that you should take what the market offers you. For clarity and more information on this see Investing Guide. *If you find this analysis helpful please like! Feel free to comment or ask questions.
A
by tradersmentality