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Risk Management

8 Trading Tips to Help You Increase Your Trading Profits Whether you are just getting started or you’ve been on your journey for a while now, you’ve probably discovered that day trading is not easy. You’re putting your hard-earned money on the line and facing new challenges daily. That said, every challenge you conquer takes you one step closer to your ultimate goal. Small behavioral changes can have profound impacts. Your goal is to minimize losses and maximize profits in order to increase your net profitability. Here are some tips: 1. Avoid Overtrading Traders are ambitious, sometimes too much so. Many traders feel the need to always be doing something. It’s important to remember that trading requires patience, and the quality of your trades is far more important than the quantity. 2. Avoid Under-trading Do you ever find a great trade setup that you don’t take action on, only to look back later and realize your idea was spot on? 3. Take Control of Your Losses As traders, we’re always focused on profits. After all, the main goal of trading is to turn money into more money. It’s easy to get carried away and forget about the very real potential for losses. In reality, limiting losses has the same net effect as increasing profits. 4. Simplify Your Approach There is an incredible amount of data available to traders in this digital millennium. This data is intended to improve our decision-making abilities, however it can also be overwhelming. 5. Trade Robotically As you begin to simplify your approach to trading, you can focus on making your strategy more robotic. The goal is to take all emotions out of trading so you can take a systematic approach to your trading. 6. Learn Your Strengths and Weaknesses Becoming a successful trader requires introspection, self-analysis, and evolution. Simply put, you need to analyze your own behavior and look for areas of improvement. 7. Double Down on What’s Working Learn to double down on areas of strength. Focus your efforts to trading activity that yields the highest rewards. 8. Don’t be Afraid to Go Back to Square One If you find yourself in a rut, don’t hesitate to go back to basics. In the trading world, a simple piece of advice can be a game changer. We’ve all heard quotes, lessons, or tips that have elevated our trading to new levels. What’s the best trading tip you’ve ever received? Please, support my work with like and comment! Love you, my dear followers!👩‍💻🌸
Education
by AnabelSignals
4
How To Trade For A Living?Have you ever thought what is it like to be living life without a day job? I'm sure many of you have the same experiences as me. Let's take a trip down the memory lane. A life without a day job. That's nice. You don't have to wake up at 7am to prepare your day, dragging your feet to the washroom to washup. 7.45am you're out of your house, getting ready to squeeze in the public transport. Looking around you are people similar to you, scrolling through their phone, watching Netflix, or closing their eyes trying to get some last minute rest before the 9 - 5 grind begin. I sure think about it every time I need to go office instead of working from home. I have a dream of enjoying a life without day job, and I don't want to leave it as a dream. When I found out about trading on YouTube, I thought how easy trading was. I just need to draw some demand and supply, some trendlines and wait for breakout. Take a long or short based on the confirmations given and I'll be rich. Next moment, I'm in the live market with my $500 account buying and selling 10 lots of forex pairs. I got lucky on my first few trades, turning that $500 into $1,000. I feel like a god. This is so easy. I'm gona quit my day job in a few months time. What happened next is as you guessed it. I blew up the account with a few losses. Over the next few months, I tried to take trading seriously. Absorbing all the content on YouTube every single day. Time and time again, I blew my accounts. Maybe trading isn't so easy after all. Think about how many times have you blown your accounts so far? I tried looking around, from Babypips to Reddit to Forexfactory. I was introduced to copy trading, signals, expert advisors and account management services. I tried them all, losing 5 figures of money in total in a span of 2 years. That's a story for another day. I took trading really seriously a few years back after signing up for a mentorship which took me to profitability eventually. Time To See Success? I worked hard and eventually came up with a strategy with a win rate of 34% and average return of 2.6R. I thought of borrowing money to fund my trading "career", or even just trade full-time without a safety net. My backtest results showed me an average return of 10% every single month. In my mind, I thought that I could be really rich by compounding all these profits. I can't remember why, but I realized it wasn't a good idea. It was a good decision I didn't go ahead with my plan. What I failed to considered was that a period of drawdown and losing streak can damage my trading psychology. I did not have any live experience back then. On paper it sounded nice, having an average return of 10% every month, I could literally double my account once every few months. The problem here is that like many of you, I was overly optimistic with my backtest results. You have to understand that a trading strategy accounts for only 30% of your trading career. There are actually many profitable trading strategy out there that are very simple. However, as simple as they might seem, we just like to think that the grass is greener on the other side, always wanting to find the next holy grail with high win rate and high returns strategy. Meat Of Your Trading Career If a trading strategy only accounts for 30% of your trading career, where do the other 70% go to? If you've been reading attentively, you will know that the answer is trading psychology. Trading psychology is an underrated skill that many traders and investors ignore. Even if I give you a profitable strategy, if you do not have a trained trading psychology, you will turn it into an unprofitable one and call me a scammer. Do you remember how do you feel when you lose a trade? Do you feel sad, angry, and demoralized? How do you feel when you lose 3 trades in a row? Let me ask you again, how do you feel when you lose 5 trades in a row? You start to deviate from your trading plan and start taking bigger positions, hoping that the next trade will help to cover the losses you've made. I don't have to remind you that this is a recipe for disaster. Without getting your trading psychology in tip-top condition, you are unlikely to survive trading for a living for long. Trading For A Living Trading as a full-time trader is very different compared to when you're trading with a full-time employment income. Without your day job, you do not have a steady stream of income. Let's say your monthly expenditure is $2,000 and your day job gives you a steady income of $5,000. You have nothing to worry about. You are not afraid of not able to pay your bills on time, you do not need to be afraid of not having enough money for groceries. You still have leftover money to have fun and invest. You don't stress over having a steady stream of $5,000 monthly. As long as you don't screw up, you are unlikely to get fired from your day job. Trading for a living is different. First, you have to ensure that your strategy is profitable. Second, you have to ensure that your trading psychology is strong enough for you to survive in the live market. Third, you have to ensure that your capital is large enough for you to make constant withdrawal, AND compound your trading account at the same time. Before you say "this is easy" and submit your resignation letter, please take a few moment to understand the importance of this. Are you already trading live at least for a few years? You must ensure that your trading strategy can survive all kinds of market condition - a year is a good gauge to begin with. Personal Finances Aside from your trading, it's good that you make sure you have your personal finances in order. Jumping to trading live means that you will forgo your monthly recurring income and solely relying on trading for income, which is not consistent. This is even worse if you are in a period of drawdown. Imagine you have bills to pay, mouths to feed and debt to pay off. Without any income for a few months, you will feel the stress and pressure start to kick in. This will inevitably affect your trading psychology, leading you to overtrade or even taking trades that don't fit your trading plan. The most important thing is to ensure you have at least 1 year's worth of your living expenses saved up. Of course if you can save more, it will be better. This is to cover your basic necessities and to pay off mortgage, bills and potentially any medical needs that might arise in the future. Having this stash of money in your savings account will take pressure off your back as you do not have to worry about not profiting from the market. During period of drawdowns, you will be less affected and pressured to make the "right" and "profitable" trades. Taking It "Slower" I know it's very exciting wanting to trade for a living by ditching the 9 - 5. You don't have to report to anyone. You don't have to wake up early and squeeze on the public transport. You don't have to adhere to a working culture that you don't like. I don't like to take too much risk. What I'm doing right now is on top of my 9 - 5 job, I trade. To fit my current lifestyle, I'm trading on the higher timeframe instead of scalping on the seconds or 1 minute timeframes. This allow me to still have a consistent monthly cash inflow while allowing me to trade and build my account size. At the same time, I'm also tackling funded account challenges and have been consistently getting payouts. I want to make sure that I have a decent safety net before transitioning into a full-time trader. It might take me a few more years, but I would rather not having stress and pressure which might screw up years of my progress. It is the time and freedom I will have while trading full-time that I value. If trading full-time means feeling stressed out everyday, I'd rather not do it. Taking Accountability While it's easy to say that you will be accountable for your own actions and trades, how many of you are actually taking accountability? Look at your trading journals (if you even have one), look at how many times have you deviate from your trading rules? It is not easy following your own rules when you're alone. No one is watching you. No one is there to look out for you. No one is there to encourage you. No one is there to punish you. You have to do it yourself. It is a lonely path. Having an accountability partner or a trading mentor changes everything. Not only do you have someone to talk to, but you have someone to be responsible for. Trading can be a lonely journey as you're the only one clicking on the buy and sell buttons. Talking to your mentor can help you discover flaws in your personality or habits that you never knew you had. Now, imagine you have a habit of taking trades without confirmation but you're oblivious to this. By explaining your thought process of taking a trade to a mentor, you will realize this is a problem that you didn't know you had. Just by eliminating this habit, you see your win rate increase. Profitability doesn't comes from winning more trades. Sometimes, all it takes is just to take fewer losing trades. I'm currently coaching a mentee - let's call him Andy. Andy has been trading for a few years in the indices and forex markets. Often times, he will make quite a sum of money, only to lose them all back into the market. Why? A doesn't make use of stop losses. He knows that this not a good way to trade. He knows. But no one is there to keep him accountable for not using a stop loss. He does not have a concrete trading plan to follow. Before the start of our mentorship, Andy admits that he has a gambling mindset which made him lost a lot. This is close to 7 figures of losses, which is really A LOT. Friends and families asked him to stop with his nonsense and stop dreaming about achieving financial freedom through trading. Right now, Andy has a solid grasp of technical analysis skills, as well as risk management. His trading psychology improved greatly from when I first get to know him. He is currently backtesting a profitable trading strategy with a guided trading plan. He will be trading live once he has all the necessary backtested data for him to be confident in trading the live market. Stay consistent. Stay safe. Success is just around the corner. If you enjoy such content, feel free to click the like button and subscribe for more. Let me know what are your thoughts and learning points in the comments below so others can learn from you too! Please let me know what kind of topic you would like to read next :) Happy weekend!
Education
by Keeleytwj
6
Unlocking the 6 Levels to Financial Freedom If you’re living paycheck-to-paycheck or stuck in a job you don’t love just to pay the bills, it can be easy to feel as though you’re financially trapped. But financial freedom doesn’t need to be elusive—with some focused and consistent effort, you may be able to achieve financial freedom sooner than you expected. Below, we’ll discuss the different stages of the financial freedom journey Stage 1: Dependence ✔️ The “dependence” stage of financial freedom can last from your childhood and teen years even into your adult life. If you rely on a parent, a significant other, or someone else to pay your living expenses, you’re in this stage. Fortunately, as soon as you become solvent—that is, when your income exceeds your expenses—you’ve moved on to stage 2. Stage 2: Solvency ✔️ Solvency comes when you’re able to meet your financial obligations on your own. (If you’re partnered, you can still be considered solvent even if your partner’s income is necessary to meet your total household expenses—since you’re supporting two or more people instead of just yourself.) Stage 3: Stability ✔️ You’ll transition from solvency to stability once you’ve created an emergency fund of a few months’ expenses, repaid high-interest debt, and are continuing to live within your means. While stability doesn’t require you to be debt-free—as you may still have a mortgage, student loans, or even credit card debt—you’ll have a savings buffer to ensure that you won’t go into debt if you encounter an emergency or unexpected expense. Stage 4: Security ✔️ You’ll feel financially secure once you’ve eliminated your debt (or have enough assets to pay off all your debt) and could weather a period of unemployment without worry. At this point, money is not just a safety net, but also a tool you can use to build the future you’ve been planning. At this point, you may consider investing in other assets besides retirement accounts — a taxable account, rental real estate, or even your own small business. Stage 5: Independence ✔️ Once your investment income or passive income is enough to cover your basic needs, you’ve achieved financial independence. A financially independent person can retire at any time without worrying about how to cover their costs of living, even if they may have to downsize their lifestyle a bit. Stage 6: Freedom ✔️ The line between financial independence and financial freedom can be a fine one; for many, it’s simply the difference between having enough to cover your needs or having more than enough. Once you have financial freedom, you don’t need to pinch pennies (unless you want to), and you can take more risks with money you’re willing to lose. Now that you know the stages of financial freedom, think about where you are. How much do you need to get to the next level? What do you want to learn in the next post?
TVC:GOLDEducation
by UnitedSignals
5
Common trading mistakes to avoid as a trader ❌ For new market traders, review these common trading mistakes so you can avoid emotional blunders with your investments and take advantage of psychological edges. The mechanics of trading are relatively simple. A click or two gets you into a trade, and a click or two gets you out. But the decision-making process behind those clicks is much more complex. And with complexity comes more opportunities to make mistakes that can affect your bottom line. Here are seven common mistakes that traders—both new and experienced—sometimes make. 1️⃣Mistake 1: Emotional trading/psychological trading Trading can bring out the best and the worst in us. For a trader, nothing is more frustrating than opening a long position and seeing the market drop, bringing the value of your long position to levels well below the price you bought it. The same can be said about missing out on a move in a stock that's been on your radar for a while. Anger, fear, and anxiety can lead traders to make quick and even irrational emotion-based decisions. The reality is that markets are cyclical, moving through ups and downs. Trading decisions based on emotions may not always give the results you want. Instead, take a step back and think through the situation logically. Every situation is different, and instead of buying or selling in a panic, think about how you can best manage risk. 2️⃣Mistake 2: Pulling stop orders When a position hits a stop order, it can often mean you're going to take a loss on it. Pulling—or canceling—a stop is often a subliminal attempt to avoid admitting you were wrong. After all, as long as the position is open, there's still a chance it could come back and be profitable. The problem is every 50% loss starts with a 5% loss. It's not magic; it's just math. And it only takes one small loss that turns into a big one to make a big dent in a portfolio. Losing is no fun, but it's part of trading. Being disciplined about managing stop orders may help you come back and trade another day. 3️⃣Mistake 3: Trading without a plan Trading plans should act as a blueprint during your time on the markets. They should contain a strategy, time commitments and the amount of capital that you are willing to invest. After a bad day on the markets, traders could be tempted to scrap their plan. This is a mistake, because a trading plan should be the foundation for any new position. A bad trading day doesn’t mean that a plan is flawed, it simply means that the markets weren’t moving in the anticipated direction during that particular time period. Every trader makes mistakes, and the examples covered in this article don’t need to be the end of your trading. However, they should be taken as opportunities to learn what works and what doesn’t work for you. The main points to remember are that you should make a trading plan based on your own analysis, and stick to it to prevent emotions from clouding your decision-making. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
6
Top 5 Tips to Increase Your Profits in Trading 📈 In this educational article, I will share with you very useful tips how to improve your profitability in trading the financial markets. 1. Decrease the number of financial instruments in your watch list. ⬇️ Remember that each individual instrument in your watch list requires attention. The more of them you monitor on a daily basics, the harder it is to keep focus on them. In order to not miss early confirmation signals and triggers, it is highly recommendable to reduce the size of your watch list and pay closer attention to the remaining instruments. 2. Avoid taking too many positions. ❌ For some reason, newbie traders are convinced that they should constantly trade and keep many trading positions. Firstly, I want to remind you that the management of an active position is a quite tedious process that requires time and attention. Therefore, more positions are opened, more time and effort is required. Secondly, if the newbies can not spot a good setup, they assume that they are obliged to open some positions and they start forcing the setups. Remember, that in trading, the quality of the trading setup beats the quantity. I advise taking less trades, but the better ones. 3. Let winners run if the market is going in the desired direction. 📈 Once you caught a good trade and the market is moving where you predicted, do not let your emotions close the trade preliminary. Try to get maximum from your trade, closing that only after the desired level is reached. 4. Open a trade after multiple confirmations.✅ Analyzing a certain setup remember, that more confirmations you spot, higher is the accuracy of the trade that you take. In order to increase your win rate, it is recommendable to wait for at least 2 confirmations. 5. Don't trade on your cellphone. 📱 A good trade always requires a sophisticated analysis that is impossible to execute on the small screen of the cellphone. A lot of elements and nuances simply will not be noticed. For that reason, trade only from a computer with a wide screen. Relying on these tips, you will substantially increase your profits. Take them into the consideration and good luck to you in your trading journey. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
7
MASTERING AND UNDERSTANDING CANDLESTICKS PATTERNS To understand the price and candlestick analysis, it helps if you imagine the price movements in financial markets as a battle between the buyers and the sellers. Buyers speculate that prices will increase and drive the price up through their trades and/or their buying interest. Sellers bet on falling prices and push the price down with their selling interest. ☑️ If one side is stronger than the other, the financial markets will see the following trends emerging: 1 - If there are more buyers than sellers, or more buying interest than selling interest, the buyers do not have anyone they can buy from. The prices then increase until the price becomes so high that the sellers once again find it attractive to get involved. At the same time, the price is eventually too high for the buyers to keep buying. 2 - However, if there are more sellers than buyers, prices will fall until a balance is restored and more buyers enter the market. 3 - The greater the imbalance between these two market players, the faster the movement of the market in one direction. However, if there is only a slight overhang, prices tend to change more slowly. 4 - When the buying and selling interests are in equilibrium, there is no reason for the price to change. Both parties are satisfied with the current price and there is a market balance. It is always important to keep this in mind because any price analysis aims at comparing the strength ratio of the two sides to evaluate which market players are stronger and in which direction the price is, therefore, more likely to move. ☑️ The size of the candlestick body shows the difference between the opening and closing price and it tells us a lot about the strength of buyers or sellers. 1 - A long candlestick body, that leads to quickly rising prices, indicates more buying interest and a strong price move. 2 - If the size of the candlestick bodies increases over a period, then the price trend accelerates and a trend is intensified. 3 - When the size of the bodies shrinks, this can mean that a prevailing trend comes to an end, owing to an increasingly balanced strength ratio between the buyers and the sellers. 4 - Candlestick bodies that remain constant confirm a stable trend 5 - If the market suddenly shifts from long rising candlesticks to long falling candlesticks, it indicates a sudden change in trend and highlights strong market forces. ☑️ The length of shadows helps in determining the volatility, i.e. the entire range of price fluctuations. 1 - Long shadows can be a sign of uncertainty because it means that the buyers and sellers are strongly competing, but neither side has been able to gain the upper hand so far. 2 - Short shadows indicate a stable market with little instability. 3 - We can often see that the length of the candlestick shadows increases after long trend phases. Increasing fluctuation indicates that the battle between buyers and sellers is intensifying and the strength ratio is no longer as one-sided as it was during the trend. 4 - Healthy trends, which move quickly in one direction, usually show candlesticks with only small shadows since one side of the market players dominate the proceedings. ☑️ For a better understanding of price movements and market behaviour, the first two elements must be correlated in the third element. 1 - During a strong trend, the candlestick bodies are often significantly longer than the shadows. The stronger the trend, the faster the price pushes in the trend direction. During a strong upward trend, the candlesticks usually close near the high of the candlestick body and, thus, do not leave a candlestick shadow or have only a small shadow. 2 - When the trend slows down, the ratio changes and the shadows become longer in comparison to the candlestick bodies. 3 - Sideways phases and turning points are usually characterised by candlesticks that have a long shadow and only short bodies. This means that there is a relative balance between the buyers and the sellers and there is uncertainty about the direction of the next price movement. ✅With this article we want to show you that you do not have to remember any candlestick formation to understand price. Quite the opposite. It’s very important on your path to becoming a professional and profitable trader that you start thinking outside the box and avoid the common beginner mistakes. Learn how to understand how buyers and sellers push price, who is in control and who is losing control. Please, like this post and subscribe to our tradingview page!👍
OANDA:BTCUSDEducation
by EliteTradingSignals
11
Unleashing the Power of Sentiment Indicators in TradingChapter 1: Introduction to Sentiment Indicators In the world of trading and investment, understanding market sentiment is essential for making informed decisions. Market sentiment refers to the overall attitude, emotions, and opinions of market participants towards a particular financial instrument, sector, or the market as a whole. It is a key factor that influences price movements and can provide valuable insights for traders. The role of emotions in trading is also crucial. Emotions such as fear, greed, optimism, and pessimism can significantly impact trading decisions and market behavior. Understanding and analyzing these emotions can help traders gauge market sentiment and identify potential trading opportunities. Sentiment analysis is the approach used to measure and quantify market sentiment. It involves extracting subjective information from various sources such as social media, news articles, and options markets to determine the prevailing sentiment. The goal is to understand and interpret the collective emotions of market participants. Sentiment indicators play a vital role in sentiment analysis. These indicators are tools and metrics that provide quantifiable measures of market sentiment. By incorporating sentiment indicators into their analysis, traders can gain a deeper understanding of market psychology and make more informed trading decisions. In the following chapters, we will explore different types of sentiment indicators and their applications in trading. We will delve into social media sentiment analysis, news sentiment analysis, options market sentiment, and more. Through real-life case studies and examples, we will demonstrate how traders can effectively leverage sentiment indicators to enhance their trading strategies and navigate the markets with greater confidence. So let's dive into the exciting world of sentiment indicators and discover how they can empower traders to make smarter trading decisions in various market conditions. Chapter 2: Social Media Sentiment Analysis Social media has become a powerful platform for expressing opinions and sharing information, making it an invaluable source for understanding market sentiment. Platforms such as Twitter, Facebook, and Reddit provide real-time insights into the thoughts and emotions of a wide range of market participants. Traders can harness the power of social media by analyzing sentiment expressed in posts, comments, and discussions related to financial instruments or markets. This can be done through the use of sentiment analysis tools and platforms. These tools employ natural language processing and machine learning algorithms to analyze and quantify sentiment. When analyzing social media sentiment, it is crucial to identify the influential platforms for each specific market. Different financial instruments and markets have unique social media platforms where participants share their views and opinions. For example, Twitter might be the primary platform for discussions related to cryptocurrencies, while LinkedIn could be more relevant for the stock market. By focusing on the platforms that hold more influence, traders can gain more accurate insights into market sentiment. Real-time sentiment analysis of social media involves monitoring conversations, identifying relevant keywords, and applying sentiment analysis algorithms. This process enables traders to gauge the sentiment as positive, negative, or neutral. By tracking sentiment shifts in real-time, traders can make timely trading decisions and take advantage of emerging trends or sentiment-driven price movements. To illustrate the effectiveness of social media sentiment analysis, let's explore some case studies. In one example, a trader monitors sentiment on Twitter for a particular cryptocurrency. By analyzing the sentiment expressed in tweets, the trader identifies a surge in positive sentiment accompanied by an increase in trading volume. This information serves as a signal to enter a long position, anticipating a price increase driven by bullish sentiment. The trader successfully profits from the sentiment-driven rally. In another case, a trader uses sentiment analysis of social media discussions to identify a sudden increase in negative sentiment towards a stock. Recognizing this shift in sentiment, the trader decides to exit their position or tighten their stop-loss level to protect their profits, anticipating a potential price decline. This proactive risk management based on sentiment analysis helps the trader avoid potential losses. By incorporating social media sentiment analysis into their trading strategies, traders can gain a deeper understanding of market sentiment and improve their decision-making process. However, it is important to remember that social media sentiment analysis should be used as one piece of the puzzle alongside other forms of analysis to build a comprehensive trading strategy. Chapter 3: News Sentiment Analysis News plays a significant role in shaping market sentiment. Positive news such as strong earnings reports, positive economic indicators, or favorable regulatory developments can create a bullish sentiment, leading to increased buying interest. Conversely, negative news such as poor economic data, geopolitical tensions, or negative corporate announcements can generate a bearish sentiment, resulting in selling pressure. News sentiment analysis involves analyzing the sentiment expressed in news articles, press releases, and other sources of financial news. The goal is to extract the overall sentiment conveyed by the news and understand its potential impact on market sentiment and price movements. There are various tools and techniques available for news sentiment analysis. These tools employ natural language processing and machine learning algorithms to analyze the sentiment of individual news pieces. They assign sentiment scores, such as positive, negative, or neutral, to quantify the sentiment expressed in the news. Financial news headlines are particularly important as they often convey the key sentiment of an article. Traders can focus on analyzing sentiment in news headlines to quickly gauge the overall sentiment without delving into the complete article. This allows for efficient scanning of multiple news sources and provides traders with timely insights into market sentiment. Incorporating news sentiment analysis into trading strategies can be done in several ways. Traders can use sentiment-triggered trade entries, where they initiate trades based on significant shifts in news sentiment. For example, a trader might enter a long position in response to overwhelmingly positive news sentiment regarding a particular stock, anticipating a price increase. Alternatively, news sentiment can serve as a confirming factor for technical analysis. If technical indicators suggest a bullish trend, positive news sentiment can provide additional confidence in the trade. Let's examine a case study to further illustrate the application of news sentiment analysis. Suppose a trader is analyzing the sentiment surrounding a company's earnings announcement. Through news sentiment analysis, the trader identifies a strong positive sentiment across various financial news sources. This positive sentiment indicates high market expectations for the company's earnings results. Based on this analysis, the trader decides to enter a long position before the earnings release, anticipating a favorable outcome. When the company exceeds expectations and reports stellar earnings, the positive sentiment is reinforced, resulting in a significant price increase. The trader profits from the sentiment-driven rally by making a well-timed trade based on news sentiment analysis. Chapter 4: Options Market Sentiment Options trading provides valuable insights into market sentiment as it reflects investors' expectations and sentiment towards the underlying asset. By analyzing options market sentiment, traders can gain a deeper understanding of market sentiment and potential price movements. One commonly used sentiment indicator in options trading is the put/call ratio. The put/call ratio compares the volume of put options, which give traders the right to sell an asset, to the volume of call options, which give traders the right to buy an asset. A high put/call ratio suggests bearish sentiment, indicating that more traders are betting on a price decline. Conversely, a low put/call ratio indicates bullish sentiment, with more traders anticipating a price increase. Another important indicator is implied volatility. Implied volatility is derived from options prices and reflects the market's expectation of future price volatility. Higher implied volatility suggests increased market uncertainty and potentially heightened bearish sentiment, while lower implied volatility indicates lower expected volatility and potential bullish sentiment. Traders can also analyze options-related metrics such as open interest, the skew index, and the volatility skew to gauge market sentiment. Open interest represents the total number of outstanding options contracts, providing insights into trader positioning and sentiment. The skew index measures the perceived risk of extreme price moves, while the volatility skew indicates the difference in implied volatility between options with different strike prices. To illustrate the application of options market sentiment, let's consider a case study. Suppose a trader observes a high put/call ratio in a particular stock, indicating bearish sentiment. This signals a potential price decline. The trader combines this information with other technical indicators pointing towards a bearish trend and decides to enter a short position. As the market sentiment unfolds, the stock experiences a significant price drop, validating the initial bearish sentiment and resulting in a profitable trade for the trader. Chapter 5: Fear and Greed Index The Fear and Greed Index is a sentiment indicator that measures market sentiment on a scale of extreme fear to extreme greed. It combines various factors, such as stock price momentum, market volatility, junk bond demand, and safe-haven flows, to gauge overall market sentiment. The components and calculation of the Fear and Greed Index can vary, but the index generally assigns a numerical value or category to represent the prevailing sentiment. Extreme fear levels suggest a highly pessimistic sentiment, often associated with market downturns or significant price declines. On the other hand, extreme greed levels indicate excessive optimism and potentially overbought conditions, signaling a potential market correction. Traders can incorporate the Fear and Greed Index into their trading strategies in several ways. It can serve as a confirming factor for technical analysis, where extreme fear or greed levels align with other indicators pointing towards a potential trend reversal. Additionally, contrarian traders may use extreme sentiment levels as a signal to consider taking opposite positions, capitalizing on potential market reversals. Let's explore a case study to demonstrate the practical application of the Fear and Greed Index. Suppose the Fear and Greed Index reaches an extreme greed level, indicating excessive optimism and potentially overbought conditions in the market. A trader who closely monitors the index recognizes this as a warning sign and starts analyzing other technical indicators. They observe overextended price levels, declining trading volume, and bearish divergence on oscillators. Taking all these factors into consideration, the trader decides to exit their long positions or initiate short positions, anticipating a potential market correction. As the market sentiment shifts from extreme greed to fear, the market experiences a significant decline, validating the trader's decision and resulting in profitable trades. Chapter 6: Conclusion and Future Outlook In conclusion, sentiment indicators provide valuable insights into market psychology and can significantly enhance trading decisions. By understanding market sentiment through sentiment analysis tools, traders can gain an edge in their strategies. Social media sentiment analysis allows traders to tap into the real-time opinions and emotions of market participants, while news sentiment analysis helps traders assess the impact of news events on market sentiment. Options market sentiment and sentiment indicators such as the Fear and Greed Index provide additional perspectives on investor expectations and sentiment towards the market. As technology and data analysis techniques continue to advance, sentiment analysis is expected to evolve further. Integration of artificial intelligence and machine learning algorithms can enhance sentiment predictions and improve the accuracy of sentiment analysis tools. This will empower traders with even more robust insights into market sentiment. To harness the power of sentiment indicators effectively, it is essential to integrate them with other forms of analysis, such as technical analysis and fundamental analysis. By combining multiple perspectives, traders can make well-informed trading decisions and increase their chances of success. In the ever-changing landscape of financial markets, sentiment indicators will continue to play a crucial role in understanding market dynamics. By staying abreast of emerging trends and advancements in sentiment analysis, traders can adapt their strategies and stay ahead of the curve. Ultimately, by leveraging sentiment indicators, traders can enhance their trading success and capitalize on market opportunities.
AMEX:SPYEducation
by Julien_Eche
Learn What Will Really Make You Profitable in Trading What brings the consistent profits in trading? Talking to hundreds of struggling traders from different parts of the globe, I realized that there are the common misconceptions concerning that subject. In this educational article, we will discuss what really will make you profitable in trading. 🔔The first thing that 99% of struggling traders are looking for is signals. Why damn learn if you can simply follow the trades of a pro trader and make money?! The truth is, however, is that in order to repeat the performance of a signal provider you have to open all your trading positions in the same exact moment he does. (And I would not even mention the fact that there will be a delay between the moment the provider opens the trade and the moment he sends you the signal) Because the signal can be sent at a random moment, quite often it will take time for you to reach your trading terminal and open the position. Just a 1-minute delay may dramatically change the risk to reward ration of the trade and, hence, the final result. 🤖The second thing that really attracts the struggling traders is trading robots (EA). The systems that trade automatically and aimed to generate consistent profits. You simply start the program and wait for the money. The main problem with EA is the fact that it requires constant monitoring. It can stop or freeze in a random moment and may require a reboot. Moreover, due to changing market conditions, the EA should be regularly updated. Without the updates, at some moment it may blow your account. Trading robot is the work: trading with the robots means their constant development, monitoring and improvement. And that work requires a high level of experience: both in coding and in trading. 📈The third thing that struggling traders are seeking is the "magic" indicator. The one that will accurately identify the safe points to buy and sell. You add the indicator on the chart, and you simply wait for the signal to open the trade. The fact is that magic indicators do not exist. Indicator is the tool that can be applied as the extra confirmation. It should be applied strictly in a combination with something else, and its proper application requires a high level of expertise in trading. 🍀The fourth thing that newbie traders seek is luck. They open the trade, and then they pray the God, Powell, Fed or someone else to move the market in their favor. And yes, occasionally, luck will be on your side. But relying on luck on a long-term basis, you are doomed to fail. But what will make you profitable then? What is the secret ingredient. Remember, that secret ingredient does not exist. In order to become a consistently profitable traders, you should rely on 4 crucial elements: trading plan, risk management, discipline and correct mindset. 🧠What is correct mindset in trading? It simply means setting REALISTIC goals and having REALISTIC expectations from the market and from your trading. 📝A trading plan is the set of rules and conditions that you apply for the search of a trading setup and the management of the opened position. Trading plan will be considered to be good if it is back tested on historical data and then tested on demo account for at least 3 consequent months. ✔️In order to follow the plan consistently, you need to be disciplined. You should be prepared for losing streaks, and you should be strong enough to not break once your trading account will be in a drawdown. 💰Risk management is one of the most important elements of your trading plan. It defines your risk per trade and your set of actions in case of losses. Even the best trading strategies may fail because of poor risk management. Combining these 4 elements, you will become a consistently profitable trader. Remember, that there is no easy way, no shortcut. Trading is a hard work to be done. ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
11
Day Trading Tips in 2023 📈 Day trading refers to a style of trading where the trader buys and sells a financial instrument within the same day, or even multiple times a day. With the right strategy and knowledge, you can take advantage of small price movements in the currency exchange market to earn a potential profit. However, it takes a lot of practice and dedication to become successful at day trading forex, so it's important for beginners to understand what they're getting into before starting out. In this article, we'll discuss five insider tips to help beginners start their journey in day trading forex. 1. Set Aside Funds You Can Afford to Lose 💵 Before you start trading, it is important to understand how much capital you can realistically afford to risk. Almost all successful traders say that you should never trade more than you can afford to lose. So, it is advisable for beginners to start small and gradually increase their trading capital as they gain experience. Typically, successful day traders commit no more than 1-2% of their account's balance per trade. Additionally, it is wise to earmark a surplus amount of funds that can be used solely for trading purposes, and ensure that you are prepared for any potential losses. This way, even if your trades go in the wrong direction or don't turn out as well as you expected, you won't be risking your personal savings or other investments. 2. Be Realistic With Your Strategies 💫 Day traders should be realistic when formulating their strategies, as having too high expectations can only lead to disappointment. Namely, strategies do not need to succeed every time in order to be potentially profitable, and day traders often make potential profits on approximately 50-60% of their trades. Furthermore, it is important to ensure the financial risk on each trade is limited to a specific percentage of the account and that entry and exit methods are clearly defined. By being realistic with their strategies, day traders can better manage risk while improving their chances of achieving long-term success. 3.Follow the Strategy 🎯 Once you have established a concise strategy that works for you, it is important to stick to it. Successful traders do not need to think on their feet or make decisions quickly, as they already have a specific trading strategy in place. It is essential to follow the strategy closely rather than try to chase potential profits or abandon the strategy when things don't go as expected. Doing so can significantly increase the chances of you being successful in the long run. 4.Stop-Loss Orders 🛑 Risk can be mitigated through stop-loss orders, which exit the position at a specific exchange rate. Stop-loss orders are an essential forex risk management tool since they can help traders cap their risk per trade, preventing significant losses. 5.Journal Your Trades 📝 A printed record is a great learning tool. Print out a chart and list all the reasons for the trade, including the fundamentals that sway your decisions. Mark the chart with your entry and your exit points. Make any relevant comments on the chart, including emotional reasons for taking action. The steps above will lead you to a structured approach to trading and should help you become a more refined trader. Trading is an art, and the only way to become increasingly proficient is through consistent and disciplined practice. What do you want to learn in the next post?
TVC:GOLDEducation
by UnitedSignals
4
⚙️Creating a Trading Plan⚙️📍Creating a trading plan and trading journal are two important steps in developing a successful trading strategy. Backtesting is also a crucial component of any trading plan. Here are the steps you can follow to create a trading plan, trading journal, and backtest your strategy. 🔷Define Your Goals and Risk Tolerance The first step in creating a trading plan is to define your trading goals. You should have a clear idea of what you want to achieve with your trading, such as making a certain amount of profit per month or year, and how much you are willing to risk on each trade. Your risk tolerance will also play a role in determining your trading strategy. 🔷Choose Your Trading Methodology The next step is to choose your trading methodology. There are many different trading strategies, such as trend following, momentum trading, and mean reversion. You should choose a strategy that fits with your goals, risk tolerance, and trading style. 🔷Define Your Trading Rules Once you have chosen your trading methodology, you need to define your trading rules. Your trading rules should cover when to enter a trade, when to exit a trade, and how much to risk on each trade. Your rules should be clear, objective, and based on your trading methodology. 🔷Create a Trading Journal A trading journal is a record of all your trades. It is important to keep a trading journal so you can analyze your trading performance over time. Your trading journal should include the date and time of each trade, the entry and exit price, the size of the position, and the reason for entering the trade. You can use a spreadsheet or a specialized trading journal software to keep track of your trades. 🔷Backtest Your Strategy Backtesting is the process of testing your trading strategy on historical data to see how it would have performed in the past. You can use specialized backtesting software or create your own backtesting tool using spreadsheet software. Backtesting allows you to refine your trading strategy and identify its strengths and weaknesses. 🔷Analyze Your Trading Journal After you have started trading, you should analyze your trading journal regularly. Look for patterns in your trading performance and identify areas for improvement. You should also review your trading plan and adjust it as necessary. 📍Key Takeaways: 🔸 Defining your trading goals and risk tolerance is important before creating a trading plan. 🔸 Choose a trading methodology that fits your goals, risk tolerance, and trading style. 🔸 Define clear, objective trading rules based on your trading methodology. 🔸 Keep a trading journal to record all your trades. 🔸 Backtest your trading strategy to refine it and identify its strengths and weaknesses. 🔸 Analyze your trading journal regularly to identify areas for improvement and adjust your trading plan as necessary. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
4
Choosing The Right Strategy To Trade And InvestYou have been studying the charts, watching YouTube and courses videos, and reading the content from BabyPips for a few weeks or even months now. You're getting lost with so much information out there in the Internet. You come across many different terms like smart money concept, ICT, Wyckoff, Elliott Wave and supply and demand. You have no idea on what you should be focusing on. You're deciding which method you should be using to trade. Some people tell you to avoid using any indicators, while others tell you to use indicators so that your trades will be mechanical and you will not let emotions get in the way of your trade. Unable to identify which method to use is detrimental to your trading and investing career. Technical analysis is the backbone of trading in every asset classes, be it stocks, forex, cryptocurrency and even options. What's worse is that you're using the wrong or inefficient methods to analyze the market. By trying to be involved in the financial market, you aim to grow your wealth and hopefully to retire earlier. Can you imagine how much money you can potentially earn from the financial market? You are able to travel anywhere sitting on the first class seats, and able to buy anything you want without any worries for your fundamental needs like food and shelter. Right Strategy, Wrong Implementation Without the right tools, not only will you lose your wealth, but you might also need to push back your retirement age by a few years. Do you want to work for a few more years of 9 - 5, or do you prefer to retire and have the option to not work anymore? I'd definitely prefer the latter. However, the most important thing you will lose is time. Precious time will be lost by using trading with the wrong strategies. Even worse if you are using the correct strategies wrongly. You might discard it away, thinking that it's not going to be a profitable strategy even when you've already discovered one. If you know of the right strategy, you could be earning and profiting from the financial market so much earlier. Don't forget the compounding power of your profits. The later you start to profit from the market, the longer you will see your capital start to compound. Finding The Holy Grail There is actually no "right strategy" in the financial market. Some strategies work better than others in certain market conditions. Take for example Wyckoff methodology is good for identifying change in character and signs of consolidation, accumulation, distribution and reversal on 1 time frame. When using the Wyckoff methodology on a trending market, you are essentially trying to catch a reversal which is relatively riskier compared to just trading with the trend. Of course we are not deep diving into the details on how do we use Wyckoff in trading, but this is an analogy that there are different tools to be used in different market conditions. You have to find out what works for you. Price Fractality Price will do what it needs to do. Read it again. Then read it again. You and me are probably not able to control where the price will move. You need millions of dollars in order to do that, and that is usually the order size of big institutional players like funds and banks. You might be able to influence the price of some meme coins if you are a whale with a few tens of thousands of dollars, but let's not go into that. Have you ever seen price moved differently on the 1-minute timeframe compared to the 15-minute and 1-hour timeframes? You can be looking at an uptrend on the 1-minute timeframe, but it's consolidating on the 15-minute timeframe and on a downtrend on the 1-hour timeframe. Why? Price moves in different fractal. There are many big institutional players trading at different timeframes. They can be positioning themselves for a huge move on the higher timeframes, or they can be scalping their way to profits on the lower timeframes. I have 2 charts below. Are you able to tell what timeframes are they in? Of course not! Let's say you have the following data from a strategy that you've backtested using Elliott Waves: Statistics Total Trades: 100 Average RR: 2.34R Win Rate: 37% Do you know that with this result, you're already on the way to profitability if you trade exactly like how you backtested? For reference, you need a risk to reward ratio of 1:2 and win rate of 33% to have a breakeven strategy. Finding a 37% win rate and 2.34R strategy is already better than majority of the traders out there. But Keeley, with an average of 2.34R strategy, when can I get a lambo? I want a strategy with an average of 20R so that I can show off my trades on social media. First, you need to wake up. Second, you need to stay awake. There are a lot of posts in the social media where you see people hitting 100RR trades and screenshots of their profits and even MetaTrader 4 and 5. There are people who constantly post all these screenshots to garner your attention. I’m pretty sure they have something to sell you. Be it signals, mentorship, copy trading or account management. What you don’t know is the truth behind many of these screenshots. They can be taken on a demo account using big lots and no risk management. With a demo account, anything is possible. If it’s a real account, you have no idea how many losses they encountered before hitting this homerun trade. Some even go as far as getting a white label and show you that the account is “live”, but in fact it’s a demo account since they own the “broker”.  Yes, you can have an average of 20R strategy, but the higher R you're aiming, your win rate will logically be lower. If this is what you want, then you need to ensure your psychology and risk management is very very strong as you will face plenty of losses before the big win. I know many people can't wait for that 1 winning trade that covers the losses due to fear and doubt during a period of drawdown. Lifestyle Compatibility Another important concept of trading is lifestyle compatibility. Let's say you own a bicycle. A bicycle serves many purposes. It can be a mode of transport, it can be used for exercising, and it can also be used in cycling competitions. If you're travelling to work which will take you 45 minutes by train, will you choose to cycle to your workplace? I'm sure it's a no right? There is a time and place for everything. Similarly, if you resides in Asia and works at a 9 - 5 day job, does it make sense for you to be backtesting a strategy that involves scalping on the seconds or 1 minute timeframe in the Asian session when you're in office working? Coming back to the example, if you have a 37% win rate and 2.34R strategy, trade it in the live market. If this is a scalping strategy for the Asian session, you are not able to take all the opportunities that present themselves to you. You take trades half-heartedly. You lose trades. You start to cherry pick your trades. You then conclude that this is actually a losing strategy. You discard this strategy and proceed to find the next "holy grail". What if you actually stick to your strategy, but instead of trading on the 1-minute timeframe, you apply the strategy onto the 30-minute or even the 1-hour timeframe? Remember that price is fractal and most strategies work in multiple timeframes. Since you're unable to concentrate on trading on the 1-minute timeframe, you might get the same or better results on the higher timeframe. Make sure you backtest your system first! I was always on the lookout for the "holy grail" because I was making the mistake of not finding the strategy that fits my personality and lifestyle. I had a profitable system with a win rate of 12% with an average risk to reward ratio of 10R. However, it did not fit my personality at all as I need to experience a lot of drawdown before I see profits. This also did not sit well with my psychology, especially when I'm taking prop firm challenges. I would also need to be in front of the chart constantly which was not the freedom that I seek once I achieve financial freedom. So this was not sustainable at all. Before I had this system, I already have a profitable system with a win rate of 40%, averaging 2.5r per winning trade. Like many of you, I feel that even though this is profitable, it just wasn't enough. It was when I had a mindset shift and speaking to my mentor, I began to stick with my original strategy. From then, I started to see real results and my equity curve has been on a general uptrend since, with some periods of drawdown of course. This has also led me to getting my first payout with FTMO on a $10,000 account, with another payout of close to $1,000 coming in June 2023 from The Funded Trader. This $200 (post-profit split) is just a 2% profit. Imagine what my profit will be if that was a $100,000 account? Yes, it's all talk until it actually happen. It's just a matter of time when I accumulate more of these accounts to fund my personal account. Mentorship A mentor can really help to see the blind spots in your life. In driving lessons, you have a driving instructors guiding and providing you feedbacks on your driving. Sometimes, you discover things that you never knew before. You won't know how to park your vehicle properly, you won't know the technique when you need to hit the emergency break. You might know in theory, but you need someone to guide you with the practical. It cuts so much time and effort on your end with the trial-and-errors which you might not even find success in. There are a lot of scam artists out there claiming to be a trading mentor without delivering any results. Many aren't able to earn a decent profit from the market. A mentor must be able to objectively look at any strategy and tell you what's not working and what you should stop, not just forcing you to use his own strategy. He must be able to talk to you about his own mistakes and show you solid trading results via 3rd party verification such as Myfxbook or Fxblue, and not through screenshots or excel worksheet. He should walk you through development as a person outside of trading. Stay consistent. Stay safe. Success is just around the corner. If you enjoy such content, feel free to click the like button and subscribe for more. Let me know what are your thoughts and learning points in the comments below so others can learn from you too! Please let me know what kind of topic you would like to read next :) Happy weekend!
Education
by Keeleytwj
Why Failure Is Key Of Success Like anyone else on Earth, I’ve had successes (and failures) in years past, at both the personal and professional level. If you’re scoring at home, that’s called being a human being. I can probably make a case that failure is more important than success in many respects because you can’t really succeed unless you’ve truly inhaled your failures (own it!) and then exhaled them to improve your future approach. There is no finality about failure, said Jawaharlal Nehru. Perhaps, that is why learning from failure is easier than learning from success, as success often appears to be the last step of the ladder. Possibilities of life, however, are endless and there are worlds beyond the stars-which is literally true. What appears as success in one moment may turn out to be a failure or even worse in the next moment.We often do not know what is failure and what is success ultimately. Failure gives us the opportunity to bounce back, to learn from our mistakes, and helps us appreciate success. Failure is therefore not the end, but only a stage in our journey. If it crosses our path and we know how to draw the necessary lessons from it, it even allows us to question ourselves when it's necessary and by doing so, it moves us forward. Dear followers, let me know, what topic interests you for new educational posts?
BITSTAMP:BTCUSDEducation
by SignalProvider
8
Top 8 Rules of a Pro Trader Hey traders, Consistently 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 article, I have collected 8 trading habits that a trader should have to become successful. 1️⃣ - Continuous Learning 📚 The markets are infinitely deep in their nature. Trading & constant monitoring of the market always unveil new, uncharted elements and things. With 8 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. 2️⃣- Emotional Stability 🙏 The market is a wild beast who always wants to bite us. And most of the time it manages to do that: drawdowns, losing streaks... Those who trade for at least 1 year know how unpredictable and unstable the market is. A perfectly looking trading setup can easily turn into a big losing trade. Of course, that is painful, of course with more and more losers, the anxiety will pursue us, the stress will overwhelm us. Only by remaining stable and calm, you will manage to overcome the negative periods. Learn to control your emotions, learn to take losses! 3️⃣ - Constant Practice 💪 Pro 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. 4️⃣ - Trade Journaling 📝 Pro trders 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. 5️⃣ - Anticipation of Different Outcomes 👁 Everything can happen in financial markets. Pro trader always reasons in probabilities. He knows that 100% chances do not exist. Accepting the probabilities the trader (even while opening the trade) is always ready for completely different outcomes and accepts each and every move of the market. 6️⃣ - 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, one should adapt . One should look for ways to be one step ahead. To beat an evolving market, the traders should constantly polish their trading strategies, drop the things that don't work anymore, and adopt the new, reliable ones. That is the only way to stay afloat. 7️⃣ - Selection of Right Markets 📈 The trader always knows what to trade and he always has a reason. He admits that some financial instruments are appropriate for his trading style while some are completely not. Pro trader does not wander around aimlessly from one market to another. He has a plan to follow and rules to rely on. 8️⃣ - Realistic Expectations ⭐️ Many newbie traders drop trading just because of wrong expectations. The desire to get rich quick, to catch 20/1 risk to reward trades without substantial losses is playing a dirty trick with them. The true trader is not greedy, in contrast, he is humble and the only thing that he wants is simply to win more than he loses and make that amount sufficient enough to have a good living. Adapting these 8 habits, you will see dramatic improvements in your trading. And even though most of them require a substantial effort and many years of practicing, trust me, it is worth it and it will help you in your daily life as well. Would you add some other habits to this list?🤓 Let me know in a comment section. Let me know, traders, what do you want to learn in the next educational post?
TVC:USOILEducation
by VasilyTrader
9
Unpopular trading advice: fall in LOVE with one pair ONLYIn a world where you can love anyone and anything your heart desires, fall in love with ONE currency pair ONLY. The notion of "the more pairs I trade, the more money I will make" is false. If you wanna be a consistently profitable trader, it is more beneficial to focus on a small selection of securities and master them, and there is a concrete reason for that. Concentrating on one or two currency pairs instead of trading every single major, minor, and exotic pair will be more efficient, less confusing, and more profitable. When you study every single movement of any given pair, you get more experienced at trading it and you make more rational decisions and analyses. Looking at the chart illustration, we might observe the trading log of all transactions we executed in April and May so far. With 8 trade entries and all of them being EUR/GBP, a total return of +9.6% has been generated constituting an approximate win rate percentage of 70%. Obviously, not every trade resulted in being profitable as we encountered 2 losses and a breakeven closure. Nevertheless, as we always indicate, trading is a game of big numbers and probabilities. Instead of trading 10 securities, we have only been focusing on one single currency pair recently. One crucial thing that needs to be noted is the following: not always will the one specific currency pair of your choice provide you with clear swing opportunities as the example of EUR/GBP portrayed on the graph. Periods of long and dull consolidations, indecisions, and some other moments will take place and make a derivative unlikeable and less efficient to trade for a period of time. Therefore, always have one or two other trades on the radar to eventually monitor and analyse along with the currency pair of your preference. Love will save the world. Investroy.
Education
by Investroy
72
Big non-farm data is coming, are you ready? The monthly nonfarm payroll data is coming soon. Do you know how it will affect gold prices? The "nonfarm" data is released by the US Department of Labor on the first Friday of each month. It consists of three values: nonfarm employment, employment rate, and unemployment rate, which reflect the development and growth of the manufacturing and service industries. A decrease in these numbers represents a reduction in production by businesses and an economic downturn. Therefore, the following basic rules apply to the price trends of gold: 1. A decrease in nonfarm values indicates an economic downturn, a reduction in production by businesses, and a weakening of the US dollar, which is favorable for gold. 2. An increase in nonfarm values indicates a healthy economic condition, which is favorable for increasing interest rates, strengthening the US dollar, and unfavorable for gold. In general, if the overall economic data in the United States is weak and the ADP employment data is favorable for spot gold before the nonfarm data is released, the market may start to show a bullish trend for gold prices on Thursday and Friday. On the other hand, if there are signs of economic recovery in the United States before the release of the nonfarm data and the economy is strong, it will be bearish for gold prices, and investors can take advantage of short positions. Therefore, if the newly added nonfarm data exceeds the market's expectations, the Federal Reserve's expectation of raising interest rates may rise again. However, the uncertain global economic recovery has led to continued expectations of monetary easing by central banks, and the combined effects of these factors have led to extreme fluctuations in gold prices during nonfarm data releases. As a gold investor, you can actively pay attention to the nonfarm market, but there is no need to demand excessive profits from the market. Instead, it is essential to understand the impact of this data on gold price movements. I will provide analysis and trading strategies for gold and crude oil every day. Please click to follow, maintain your reading habits, and create opportunities for yourself. If you agree with my views, please click the rocket to support me. COMEX:GC1! MCX:GOLD1! BIST:XAUUSD1!
FX:XAUUSDEducation
by investmentMr-X
35
How To Become A Millionaire | 2 Proven Ways Seeing people announce their net worth on social media may have you asking yourself, "How do I become a millionaire?" Yet "millionaire" can feel like a huge, unobtainable word. However, the good news is that becoming one is actually more realistic than you might think. The fast-track method of becoming rich in your twenties is to start a high-growth, high-return business with a plan to exit within five years or so. But, of course, there's absolutely no guarantee you'll even make a penny, and the risk can often outweigh your other options for building a long-term income. It's important to have a well-researched idea and a solid business plan before you start, as well as a clear picture of how you'll support yourself when there's no money coming in. Having said all this, there may never be a better time to start in business than as a graduate. Your responsibilities are minimal and even if it all goes wrong, you've got a wealth of experience to build on and take forward. With your business, you should either identify a need and fill it or find a problem and solve it. Solving for customer needs and exceeding expectations along the way drives business growth. A customer need is a motive that prompts a customer to buy a product or service. Ultimately, the need is the driver of the customer's purchase decision. Learning to solve the problems of people, you can make a huge wealth on that. Just look around and look for the things to solve. What do you want to learn in the next post?
TVC:GOLDEducation
by UnitedSignals
3
📈 The Trailing Stop Loss📍 What Is a Trailing Stop? A trailing stop is a modification of a typical stop order that can be set at a defined percentage or dollar amount away from a security's current market price. For a long position, an investor places a trailing stop loss below the current market price. For a short position, an investor places the trailing stop above the current market price. A trailing stop is designed to protect gains by enabling a trade to remain open and continue to profit as long as the price is moving in the investor’s favor. The order closes the trade if the price changes direction by a specified percentage or dollar amount. 📍Important Takeaways 🔹 A trailing stop is an order type designed to lock in profits or limit losses as a trade moves favorably. 🔹 Trailing stops only move if the price moves favorably. Once it moves to lock in a profit or reduce a loss, it does not move back in the other direction. 🔹 A trailing stop is a stop order and has the additional option of being a limit order or a market order. 🔹 One of the most important considerations for a trailing stop order is whether it will be a percentage or fixed-dollar amount and by how much it will trail the price. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
5
Practical Insights into the Risk ManagementHey there, amazing @TradingView community! It's @Vestinda, and we're on a mission to deliver content that truly makes a difference. 👉 To become a successful crypto trader, it's essential to have a solid understanding of trade and risk management concepts, such as stop losses, position sizing, and scaling. In this article, we'll explore these key concepts in-depth to help you minimize your risks and maximize your gains in the cryptocurrency market. Four Risk Management Concepts Every Crypto Trader Should Understand To effectively manage the risk associated with trading, it is essential to first develop a comprehensive trade management and risk management strategy. Before committing your capital to any position, it's critical to have a clear plan in place to minimize potential losses and optimize your overall trading performance. Successful market speculation requires effective risk management to preserve capital, which is the primary objective. By minimizing losses and maximizing gains through a comprehensive trade and risk management strategy, traders can achieve long-term success in the market. One of the key strategies employed by the most successful traders is to minimize their losses while allowing their profitable trades to run. This approach is essential for avoiding disastrous scenarios, such as allowing profitable trades to turn into losers or allowing a single bad trade to wipe out an entire account. By focusing on risk management and trade management, traders can increase their chances of success and protect their capital over the long term. It's true that implementing the "cut losses quickly and let profitable trades ride" strategy can be challenging, especially for discretionary traders who need to constantly evaluate changes in fundamentals and market sentiment against price movements. However, there are trade and risk management ("TRM") tools and methods available that can help simplify this process. While these tools and methods may seem complex at first, they are quite accessible and easy to learn. With the right TRM strategies in place, traders can effectively manage risk and optimize their performance in any market condition. Before diving into trading, it's crucial to understand four key concepts in trade and risk management: Stop losses: Stop losses are predetermined exit points designed to limit potential losses on a trade. By setting a stop loss, traders can automatically close a position if the market moves against them beyond a certain point, minimizing their losses. Traders may use price action signals, technical indicator signals, fundamental analysis, or a combination of all three to determine the appropriate level for a stop-loss order. This helps to limit potential losses on trade and is a crucial component of effective risk management. Position sizing: Position sizing refers to the amount of capital allocated to a specific trade. By properly sizing positions based on risk tolerance and market conditions, traders can optimize their overall risk management strategy and minimize the impact of potential losses. Position sizing refers to the process of determining the quantity of cryptocurrency to long or short based on the maximum amount of value a trader is willing to lose if the trade fails, also known as "max risk." For novice traders, it is recommended that the maximum risk should not exceed 1-2% of their portfolio for short-term transactions and 5% for longer-term positions. For example, if a trader has a cryptocurrency account with $ 1,000 and wishes to purchase a token with a market price of $ 10.0 per token, they would need to determine the appropriate position size to maintain their desired level of risk. If their analysis indicates that they should place a stop loss at $ 5.0 per token to limit their maximum risk to 2% of their account, or $ 20.0, then the appropriate position size would be 4 units (40$ position size). This way, if the token's value drops by $ 5.0, the resulting loss of $ 20.0 would equal 2% of the trader's account. Scaling: Scaling involves adjusting position sizes based on the performance of a trade or the overall market conditions. By scaling into or out of positions based on market conditions, traders can adjust their risk exposure and optimize their potential for gains while minimizing potential losses. Scaling refers to the practice of dividing entries and exits into two or more orders around a trader's intended entry/exit area to reduce the likelihood of setting an entry too low or too high. This is particularly important because it is nearly impossible to predict the exact price or time at which the market's direction or volatility levels will change. For example, if a trader intends to buy a token for $ 10.0 but their analysis indicates that it may drop as low as $ 8.0 before sentiment entirely flips bullish, they should consider dividing their entry/exit orders into multiple price levels. This way, they can enter the trade with a partial position if the token's price does not drop below $10.0, but if it drops to $ 8.0, they can scale into a lower average price of $ 8.75. By using scaling and position sizing in conjunction with a maximum stop loss level, traders can effectively manage their risk and reduce the likelihood of incurring significant losses. While these concepts are relatively simple, understanding and applying them correctly can help traders avoid significant risks in the cryptocurrency market. Leverage: Trading with leverage involves taking positions that exceed the account's total capital, which can be done through crypto exchanges (CEXs) offering margin trading or some DeFi protocols providing advanced borrowing mechanisms. For instance, assume you have $ 100 in your account, and you want to purchase 1 unit of XYZ token worth $ 100, creating an open position valued at $ 100. Margin trading offered by a CEX may only require a 10% margin, meaning you only need to invest $ 10 instead of the entire $ 100. You can then utilize the remaining $ 90 to open additional positions, which can be tempting for many traders. With a 10% margin requirement and a $ 100 account, you can open a position size of 10 XYZ tokens, having a notional value of $ 1000 ($ 100 x 10 units), with the CEX holding the $ 100 in your account as a margin for the trades. This would make you leveraged 10x, which is considered an extremely high amount of leverage. If the token increases in value by 10% in a short period, the position value would grow from $ 1000 to $ 1100, which means you could double your account value from $ 100 to $ 200 (i.e., $ 100 profit + $ 100 margin). Alternatively, if the token rises by 20% to $ 1200, you would triple your account to $ 300 in value. Although the potential for high profits may sound exciting, it is crucial to remember the risks associated with trading with leverage, and it is advisable to exercise caution and not get carried away by the prospect of quick and easy gains. Many traders are lured by the potential profits of leveraged trading, but it's important to remember that leverage can be just as dangerous as it is rewarding. If a trader opens a position with 10x leverage and the position loses just 5%, that would be a loss of $ 50, which is 50% of their $ 100 account. Additionally, if the position were to lose 10%, resulting in a $ 100 loss, the trader would receive a margin call and would need to deposit more money to keep their trades open. If they are unable to do so, the CEX will close all positions, also known as being "liquidated". The CEX will use the margin that the trader had provided to cover the $ 100 loss, which means that the trader's account balance would be reduced to $ 0. It's essential to be aware of the risks of leveraged trading, as you could potentially lose everything you've invested. It's important to remember that leverage in crypto trading is a double-edged sword that can either grow your account or quickly deplete it. While it's possible to make significant profits with leverage, it's equally possible to suffer substantial losses. As a new trader, it's important to acknowledge that trading with leverage requires expertise and a sound risk management strategy, which can be challenging to implement successfully. Therefore, it's wise to approach leverage with caution and focus on developing your skills and knowledge before considering this tool. Here are some recommendations that can help you navigate the exciting but risky world of crypto trading: First, it's important to be conservative with your risk-taking and to only invest in your very best trade ideas. Limiting your total exposure to the crypto sector to a small percentage of your total liquid capital, starting at 1%, is a good way to minimize your risk. You should also limit your exposure to a specific crypto asset to a small percentage of your total crypto portfolio, with a 1% to 2% max risk on short-term trades and a max of 5% risk on longer-term positions. Using a stop loss with every position is also crucial to limit potential losses. Remember, perfect timing is near impossible, so consider scaling into trading positions or "dollar cost averaging" into longer-term investments. Take profits along the way if a trade goes your way. And most importantly, avoid using leverage, which can be a double-edged sword and lead to substantial losses. Lastly, only invest your capital in your very best ideas, which should be low-risk/high-reward setups on high-probability ideas. Don't force trades when there are no compelling opportunities, and remember that "no position" is a perfectly fine position when you don't see any good opportunities. Calling all traders! Are you ready to take your skills to the next level? Join our community of like-minded traders and stay up to date with the latest market trends and insights. Hit that follow button and show your support by giving this article a big thumbs up. Together, we'll navigate the markets with ease and achieve financial success. Don't miss out on this opportunity to grow and learn with us. Let's do this!
INDEX:BTCUSDEducation
by Vestinda
1
Trader ⚔️VS⚔️ Analyst !!!(Differences)Hi, everyone👋. Do you like surfing or guiding surfers? In this article, I will talk about how analysis differs from trading. A good analyst is not necessarily a good trader📉. Do you know what the point is❗️❓ The point is that analysts talk about all aspects, so they always tell the truth and explain what really happens on the market, but the traders ride the waves. Financial markets include high and low waves, so if a trader makes a mistake in measuring its depth, speed, and height may drown in the sea. If you are a trader, don’t be proud of yourself because the financial market sea is very cruel or a beast. —------------------------------------------------------------------------------------------------------------------ There are four trading keys in financial markets: Trading Strategy Capital Management Market Psychology Trader Psychology These keys are like four legs of a chair🪑 which should be sat on carefully and calmly. Although by removing one of the legs, it’s possible to sit on the chair, safety has to be considered. I’ll explain all the trading keys in the market in other posts later, but for now, let me dig into the differences between Analysis📈 and Trading💰 . What is considered in the analysis are the price targets in both rising🟢 and falling🔴 markets, the probability of its occurrence and non-occurrence, and the necessary conditions for both. Considering the subtlety of an analyst's words and the mentality of the people studying - who are mainly looking for confirmation of their position - generally, the analyst will always be right unless he has declared only one direction decisively, which is not an analysis, but a signal and prediction. Declaring an upward↗️ or downward↘️ trend in only one direction is not an analysis but a prediction. It’s noted that any prediction can be wrong. But in the comprehensive analysis of both sides, the necessary conditions for their occurrence and their probability are stated, so whatever happens, the analyst is right, and you will hear the famous saying "as predicted." 🔷 A successful trader can take the following steps: Comprehensive analysis of the market situation in which he wants to trade: The technical analysis must be prepared before opening a trade position. A wrong analysis does not always lead to a wrong trade, and vice versa, a correct analysis does not lead to a correct trade because you have to see whether the position trigger is activated or not. Find useful trading strategies to achieve profitable trading: A trading strategy can be a system that includes a combination of different indicators and oscillators, which can finally indicate the entry and exit points as well as profit and stop loss while trading. This system makes you behave like a robot; after understanding and analyzing the market, you’ll wait for the entry and exit points to appear. Trusting this trading strategy is one of the critical keys to successful trading. All the points mentioned so far are related to the technical analysis aspects; otherwise, in the Fundamental field, a daily checklist of various factors affecting the market is needed, which is vital for Fundamental analysis. Find your own timeframe: Chart analysis and trading can be viewed from the 1-second time frame(short-term) to several years(long-term), but every trader should have his own time frame based on his trading strategy. The time frame is important because: The trading strategy should help traders find the entry and exit signals in the same time frame. The Stop Loss(SL) should be determined based on entry points in the same time frame. The time required to reach profitability is estimated based on the same time frame. You can't analyze on a daily time frame and expect to get a very good profit immediately after entering the position. After determining the time frame and with the help of the trading strategy, the following tasks should be done. Studying market analysis to identify market trends, the state of market movement waves, and daily, weekly, and monthly support and resistance zones. Determining the Entry Points(EP) based on the strategy Determining the Stop Loss(SL) based on the strategy Determining the Take Profits(TP) based on the strategy All the above must be done before entering the market, and the only thing done after entering the market is the last step—changing the exit point based on the variable stop loss to increase profit. —------------------------------------------------------------------------------------------------------------------ 🔷 Conclusion: According to the explanations given, it can be understood that analysis and trading have a significant differences. It should be noted that every wrong analysis published on social networks does not indicate that the analyst does not trade well and vice versa. So, to profit from the financial markets, you must be trained in the first step. Become an analyst and then trade. For this, you have to go step by step, don't be greedy, don't rush, so that you can stay in the financial markets and earn profit every day until you get a continuous profit one day.
Education
by pejman_zwin
20
TRADING OR A JOB? DEEP DIVE❗️ Are you torn between choosing a job and getting into trading? Both have their advantages and pitfalls, but by combining the two, you can reap the rewards of both worlds. 🚷Firstly, let's consider a traditional job. A job offers security, stability, and a predictable income. You work for a set number of hours, and you receive a paycheck. You have employer benefits such as healthcare, 401k matching, and paid time off. On the downside, you are limited to your salary, which may not always reflect your hard work and dedication. You may feel stuck in your role as there are usually limited opportunities for career advancement. And if you lose your job, you lose that source of income. 💹Now let's consider trading. Trading offers the potential for uncapped income, flexibility, and the autonomy to make your decisions. You can trade anywhere with an internet connection, and there are many different markets to choose from, such as forex, stocks, and commodities. You have complete control over your financial destiny. However, trading is not for everyone. It requires a lot of time, effort, and discipline to become successful. There are risks involved, and you can lose money if you do not know what you are doing. It can also be a lonely profession as you may be working alone most of the time. 💡Now, what if we combine the two? This is where the concept of "side hustles" comes into play. You can keep your job for the stability and security, but you can also trade on the side to increase your income and diversify your portfolio. By trading on the side, you can use the abundance of time outside of your job to learn, practice, and implement trading strategies. Gradually, you may earn enough money from trading to eventually quit your job and become a full-time trader. However, the combination of the two must be approached with caution. Trading can be time-consuming, and you do not want to sacrifice the quality of your work at your job. It is also essential to practice risk management and not invest money that you cannot afford to lose. ⚖️In conclusion, both a job and trading have their advantages and disadvantages. Combining the two is an excellent way to increase your income, diversify your portfolio, and potentially become a full-time trader. But proceeding with caution, discipline, and good money management is key to success. Remember, the goal is to build a better future for yourself, and with the right balance between a job and trading, you can achieve it. Thanks for reading bro, you are the best☺️ Like, comment and subscribe to boost your trading! Dear followers, let me know, what topic interests you for new educational posts?
BITSTAMP:BTCUSDEducation
by SignalProvider
5
Position Size Calculation with Fees - Handle any LeverageExample: The account size is $4500. We risk 2%, 90 cash, for this 2R trade. If the trade idea is a success we would now have 4678 cash in our account a profit of: 178 cash And if loss, a total of 4410 cash, 90 cash loss) Is this correct? Explanation: The example seems correct but only without the fees in calculation. Even small fees like e.g. 0.04% Taker (market orders) and 0.02% Maker (limit orders) add up a lot. A lot! The example does need a position size of $56250 , which would be $22.5 in fees just to open the position and the same amount again when the stop loss (market order) triggers or $11.25 when exit with a limit order. The example does clearly need a leverage of 15 or higher to open that position size. - Tradeable balance with 15x leverage: 4500 * 15 = 67500 - And to get a loss of 90 cash within 0.16 %: 56250 / 100 * 0.16 = 90 See Image on Chart: Calculation without fees We will be fine with any kind of Leverage if we calculate it like that on every trade. The PnL is calculated from the real account balance. So we are on the right track to not blow our account. If we calculate it with the Fees in mind, the example with 0.04% fees for open and close, then the position size would be $28125 See Image on Chart: Calculation with fees The calculations show, even when it hits the Profit Target, the real Risk Reward lowers by a large amount . (The Example uses the same taker fee for open and close) I personally recommend to automate those ever recurring calculations and set the orders via an API. Relative easy to code in e.g. Python. I'm not allowed to link any external links here but some tools can be found on my Twitter (I'm not really active there otherwise): - Some link to a Microsoft Excel sheet, which was used for the calculation images. It may be useful for some, just make a copy. - And a public open source API Trade App can be found on my GitHub, link in the same Twitter feed. No other funny links else. And as last goodie: A small snippet example used in my automated strategies in PineScript, strategy.equity represents the account balance: //Example 0.001 is minumum order varip input_mathround = input(3, 'Decimal Math Round Size') varip pnllosspercent = input(2, 'Dynamic PnL Loss - Percent of Balance') getLongSizeDynamic(_entry, _sl) => pnl = strategy.equity / 100 * pnllosspercent sl_percent = (_entry - _sl)/_entry size_cash = pnl / (sl_percent*100) * 100 size_r = 1 / _entry * size_cash size = math.round(size_r, input_mathround) size There are for sure different ways to optimise the math for the own liking. This 'tutorial' is meant to give small insight into a proper position sizing, that you may too will not fear the leverage as useful tool when used correct. With the calculations above, no matter if 10, 50, 100 or even crazy 1000x Leverage shall not blow our accounts! Still always keep the fees in mind, they take our money!
INDEX:BTCUSDEducation
by Hhan44
Common Fears in Trading and How to Overcome Them As we discussed many types, psychology plans a crucial role in trading. Even the best strategy in the world, can be screwed by emotional decisions. In this educational articles, we will discuss 5 common fears in trading and the ways to overcome them. 1️⃣Fear of the Unknown. Lack of experience make many traders face "unusual" situations on the market: the setups, patterns, fluctuations and formation that they have never seen before. Such events cause inaction and paralyze. Not knowing how to deal with such situations, newbies make irrational decisions that most of the time incur losses. ✔️Solution: The best way to beat the fear of the unknown is to keep learning: reading the books, watching the charts, studying the historical data will help you to be prepared for various situations. Also, your mindset plays an important role here: your adaptability, your willingness to accept the changing nature of the market are essential for your success in trading. 2️⃣Fear of Being Wrong. Testing multiple strategies and trading techniques, the only way for the newbie traders to prove their efficiency is to try them, try them on real market. And of course, the majority of the stuff that you will try won't work. In trading, each mistake costs money, hence, losses will be inevitable. The fear to make a mistake will be chasing you. ✔️Solution: The best way to overcome the fear of being wrong is to build a confidence in your actions. After trying multiple strategies, you will certainly find the one that works. More you will trade with that, more winning trades you will catch, more confident you will become in your system. 3️⃣FOMO - Fear of Missing Out There are thousands of instruments to trade. Many markets are opened 24 hours a day. Of course, you can not monitor them all, and even if you have a fixed watch list of the instruments that you trade, you can not monitor them 24/7. Some opportunities will always be missed. Some trading setups will form while you are sleeping, and accurate patterns will form on the instruments that are not in your watch list. Realizing the fact, that something will always be missed, is painful. For that reason, newbie traders are trying to be present everywhere at anytime. But the paradox is that more options breed more confusion. ✔️Solution: Always remember the fact that patience always pays. Opportunities will always come, but in order to catch them, you need focus. And fewer instruments you have in your watch list, more attention you pay to them. 4️⃣Fear of Losing Money The biggest risk in trading is the fact that your entire trading account can be blown in a glimpse of an eye. Moreover, trading can be learned only by trading. And losses are inevitable, no matter how good you are. That makes newbie traders be scared of opening just one single position. ✔️Solution: I always give my students the recommendation to trade with the amount that they can afford themselves to lose. Consider your trading account as an investment. With each single trade, you are investing in your skills, in your knowledge. You pay the market to teach you. 5️⃣Fear of Not Taking Profit at the Right Time Imagine you opened a trade and the market suddenly starts moving in the direction that you expected. It is coming closer and closer to your target... A few seconds after, however, the market rolls over. You see how your profits start evaporation. Probably you chose incorrect take profit level? Maybe it is the moment to close the trade manually? You are scared that all the profits will be gone. ✔️Solution: Take profit level selection is a very hard element of each trading strategy. The only way to not let your emotions intervene is to build the solid system that proved its efficiency and learn to be disciplined to follow that no matter what. Always remember that no one can teach you how to deal with yourself. How to deal with your emotions. You should go through all these fears by your own and find the way to beat these dragons. The solutions that I shared helped me to beat my dragons, I hope that they will help you to beat yours! ❤️Please, support my work with like, thank you!❤️
FOREXCOM:XAUUSDEducation
by VasilyTrader
5
Cutting Expenses and Increasing Income There are steps you can take to get a handle on your finances – and your financial stress. The very first step is to figure out if your income covers all of your current expenses. An increase in expenses or a drop in income usually means a change in lifestyle. The sooner you look at your household budget, the more options you have and the better off you will be in the long run. Once you have a better understanding of where your money is going, it’s time to look at ways to make the best use of your hard-earned dollar. Cutting Expenses If you find that your expenses are more than your income, you can take steps to develop a spending plan and move toward balancing your budget. Begin by listing your expenses, starting with expenses that provide basic needs for living. Some of these are fixed, such as rent or mortgage payments, car payments, or installment loan payments. Some are variable, such as clothing or consumer goods. These expenses have some flexibility. It is important to know what you are currently spending to find ways to reduce spending and balance your budget. After you have your list, the next step is think about what can be reduced or completely cut out. Think about how a repeating weekly or daily expense will add up over an entire year. How can you save more? Buy gently used clothing. Instead of spending BMV:60 or more on name brand jeans with holes, your teenager may find “cool” jeans for $6. Save on energy costs. Turn down the thermostat 5 degrees. Turn off lights or a television when no one is in the room to save money on the electric bill. Deferring on a repair or doing it yourself. If you don’t have the skills or the tools, perhaps there is a neighbor or friend that can help. It is essential to stick to your spending plan. With less income, each spending decision is critical. Finding ways to pinch pennies can add up to dollars you can use to make ends meet Even in good economic times, financial experts recommend a spending plan for effective money management. But good financial planning is an even more essential tool in tough times. Setting priorities for spending is a necessary step in finding a way to balance your budget-especially when you have less money available to spend. What do you want to learn in the next post?
TVC:GOLDEducation
by UnitedSignals
4