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Risk Management

Learning Plan: 13 Essential Topics to Study in Trading Hey traders, I receive dozens of questions each and every day concerning the topics to study to become an expert in technical analysis . Here I have collected the main subjects that, in my view, are essential for successful trading. *the order of the topics is spontaneous and there is no logical sequence 1️⃣ - Candlestick patterns To me, candlesticks are very important for understanding market behavior. A single wick quite often can tell you a story. Mastering different candle stick patterns, you will be impressed by how much data and information you may derive from analyzing them. 2️⃣ - Price action patterns At first glance price chart is complete chaos. The market looks irrational and it feels like there is no way to read it. Price action patterns are the language of the market. With them, the price fluctuations start to make sense. 3️⃣ - Support & resistance All my predictions, all my trades & signals are always based on support & resistance levels. These are the levels that make the market change its direction, they influence the market so much, therefore you should learn to identify them and constantly hold them on focus. 4️⃣ - Supply & demand zones The only difference between support & resistance and supply & demand zones is the fact that the first ones are represented as levels while the second ones are represented as the zones. The identification of these zones is very important for proper market analysis. 5️⃣ - Key levels Key levels are the strongest supports and resistances. Of course, spotting various supports and resistances on the chart, we can not say that they all are equal in their significance. There is a strong (however subjective) hierarchy of them. The most significant are called key levels and from them, the most significant moves are always expected. 6️⃣ - Trend analysis When I teach my students how to analyze the price chart, I always start with a trend analysis topic. Knowing where exactly the market is going, having specific and objective rules for the trend identification are necessary for successful trading. 7️⃣ - Top-Down analysis Multi-time frame analysis is my passion. I am constantly combining the signals & observations from different time frames to make my trading decision and predict future market moves. It proved to be a very efficient method of trading various markets. 8️⃣ - Financial instruments Though to many it may sound obvious, in practice I know that a lot of people are struggling with a simple question "What to trade?". You must learn to properly build your watchlist and you should have strong reasoning behind the selection of each unite that is inside. 9️⃣ - Trend following trading As we know, the trend is our friend. And even though the phrase itself is very simple and straightforward, it takes so much effort and time to learn to follow the trend properly. 1️⃣0️⃣ - Counter trend trading Occasionally the market reverses. Properly identifying early reversal signs and then catching a sharp counter-trend move, huge profits can be made. Even though such a style of trading is considered to be extremely risky, being applied properly will generate a lot of cash. 1️⃣1️⃣ - Risk management Losses are inevitable. They are part of the game and we can do nothing about that. The only thing that we can do, however, is to control the losses. Calculating the risk for every single transaction is essential to avoid a margin call. 1️⃣2️⃣ - Leverage trading Leverage selection, margin are the things that are tightly connected with risk management topic. These are the terms that you must know how to operate with. 1️⃣3️⃣ - Trading psychology Playing with real money, occasionally losing significant portions of your trading account can be a tough game. It takes time to build a strong psyche to deal with the irrationality of the market. Which topic to start with? Pick any, learn it, study it. They all are equally important so at the end of the day you need to cover them all in order to become successful. Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
16
howto set stoploss correctly and do a goodjob of risk managementStop loss is a necessary means to control risk, and using a good stop loss point is the only way for investors to win. There are two types of methods for setting the stop loss point: the first type is a regular stop loss, that is, when the reasons and conditions for buying or holding disappear due to changes in market conditions, the position must be closed or stopped immediately. The second category is auxiliary stop loss. In practice, the maximum loss method, retracement stop loss, sideways stop loss, expected R multiplier stop loss, key psychological price stop loss, tangent support level stop loss, moving average stop loss, cost moving average stop loss, Bollinger band stop loss, volatility stop loss, K-line combination stop loss, chip intensive area stop loss, CDP (contrarian operation) stop loss, etc.Investors should judge based on their own risk tolerance and choose a stop loss method that suits them. The market has been fluctuating all the time, and there are opportunities at all times, but before we make a transaction, when we look at a certain position, we also need to refer to whether the stop loss position is well set, how much profit margin can be grasped, and whether it has played a role in using small capital to fight for high returns. The size of the stop loss: It can be set according to the resistance support in the seeking stop loss point above. The size of the stop loss we are talking about here should be set more based on the profit margin. This is the high return of small capital. When our profit margin can only be seen at 5-8 points, the stop loss can be controlled at about 3 points; The stop loss point for medium- and long-term trading can be appropriately enlarged, and when the profit point is above 30 points, the stop loss can be set to more than 8-10 points.Of course, the size of the stop loss is more of a reference factor in resistance and support. Spread in stop loss: We all know that the cost of trading is composed of spread and commission. When we place an order, we try to find the best entry point and calculate the spread. Then the same is true when setting the stop loss. The above talked about finding the stop loss point and the size of the stop loss, then in the gold investment market, it is often a decimal point that can change the profit or loss, so we need to calculate the spread when setting the stop loss. Several principles for setting a stop loss point: 1. Once the stop loss point is set, it is not recommended to change frequently if it is not necessary. It should be implemented decisively. Stop loss is actually a prerequisite and guarantee for profit. 2. The stop loss point should be set before each lot is traded. 3. The stop loss point can be flexibly changed, but it must not be changed day and night. 4. Before setting the stop loss point, it must be based on the current overall trend In order to facilitate everyone to continue to follow up on my analysis and sharing, you can like and follow me; in addition, I will share the daily real-time strategy in the channel. If you can't follow up in real time, you may make operational errors.You can use the following methods to enter my channel for free to follow the latest news and follow up on market trends in real time.
FX:USOILEducation
by Blessed_V
What is the golden stop-loss rule? For trades such as stocks, futures, or forex, stop loss is a part of the trade, and it only works for investors if there is a stop loss in each transaction and it is adhered to. Today, I bring you a 3:1 gold stop loss rule, hoping to help with your investments. Stop loss is a way to minimize losses in current market trades and is frequently mentioned. However, the essence of stop loss is not just setting a stop loss price. In particular, in markets such as forex and futures where long and short positions can be taken, too many stop losses will undoubtedly cause significant loss of capital. Market leaders use people's fear to cause repeated shocks, even unilateral rises or falls to trigger short-term traders' stop loss prices, and then quickly retract. The normal daily volatility of the stock market is also around 5%, so if your stop loss is set at 5%, won't it often be hit? This requires attention to two issues: first, judging the trend of the market, whether it is a volatile market or a clear trend market; second, setting a reasonable stop loss position. First of all, it's important to understand that the most notable characteristic of the trading market is volatility, and most of the time it's in a volatile trend, regardless of whether it's in a larger time frame or a shorter time frame. Therefore, the investment strategy for a volatile market should be the preferred strategy for short-term traders. Secondly, identifying the range of volatility is crucial. Find the highest and lowest prices in recent price fluctuations. After a sharp rise or fall in the market, a corrective wave will form between these highest and lowest prices, sometimes lasting a long time. For example, commonly seen patterns such as triangle consolidation or box consolidation require a longer period of time before forming a new breakthrough. As for what prices to choose as the range, it depends on your trading period, whether it's daily, weekly, 60-minute, or even minute-by-minute. By using price analysis to determine the operational cycle, you will find a clear pattern of fluctuation range. The stop-loss price for such fluctuations should be set outside the highest or lowest points, and smaller stop-loss or trailing stop-loss should not be used. When the price breaks through the highest point, it is necessary to observe its sustainability. In most cases, it will return to the range-bound area again. However, if the sustainability is strong, it continuously sets new highs, and trading volume continues to increase, a new trend can be determined, and the stop-loss can be changed to a trailing stop. Its price should be set at a price that falls more than one time period beyond the highest or lowest price, and there is no new high or low in three consecutive time periods. At this time, it can be judged that the trend has stopped and entered a range-bound market. For example, if the time period is a 5-minute candlestick chart, then the trailing stop should be set at a price formed by a relatively large 5-minute candlestick chart. But generally, it should not exceed two candlestick chart prices, because beyond this price, the profit left is often very small. The 3:1 golden stop-loss rule in trading skills means that the profit of the take-profit point is three times the loss of the stop-loss point. For example, if you buy a stock and it falls by 7% or 8%, you should close your position in a timely manner. When your stock rises by 20% to 25%, you should consider selling some of it, and not be greedy and wait for it to rise further. Of course, the percentage values here can be changed according to the market situation, but the ratio should always be maintained at 3:1. Some investors may have doubts, what if I set a stop loss at 8% and then the stock rises significantly, even by more than 50%, after I sell it? It seems like a big mistake to sell it, and many investors may no longer believe in the 3:1 rule. Actually, the reason why we set a stop loss at 8% is to prevent it from falling by 10%, 20%, 25%, 40% or even more. You can think of it as a small insurance premium to ensure that an 8% loss doesn't turn into a 60% loss. Isn't it easier to handle that way? For most investors, an 8% loss is manageable, but a 60% loss is a burden that many cannot afford. In the market, human weaknesses will be reflected. When you hold a stock that falls, you will lose some capital, and you will fear that it will continue to fall, rather than hoping it will rebound to make up for previous losses. As a defensive measure, trading systems should still follow the 3:1 rule for stop losses. Finally, I wish everyone a happy investment journey.
TVC:GOLDEducation
by Ice_and_Fire1
3
How to resolve being trapped in gold position. Given that no matter what market conditions may be, there will always be friends who find themselves trapped in a position, here are several methods for unlocking these positions: Long-term unlocking: If an investor has a clear view of the big trend (such as a bullish market), and their position is trapped in a small trend (a dip in the market), they can first stop the loss and close out the position. Then, they can enter the market again at a lower price to earn the price difference and obtain the profit from the big trend while reducing the risk of being liquidated by the small trend. Short-term unlocking: If the investor's judgment of the market is completely wrong, they should close out the position promptly to avoid suffering greater losses from the continuing one-sided trend. The longer a short-term investor holds a position in a one-sided market, the greater the loss. Light position unlocking (also suitable for large fund investors): It means adding more long positions as the market falls, using idle funds to lower the average cost, and waiting for the price to rebound. The advantage is that as long as the operation is correct, unlocking is possible as soon as there is a rebound, regardless of how deeply the position is trapped. Swing unlocking: This method is suitable for being trapped in various market stages, especially in volatile markets. It relies on the fluctuation of stock prices to unlock the position by using the price difference between high and low prices. The idea is to buy low and sell high, gradually reduce the cost, and minimize losses. The advantage is that the operation techniques are diverse and flexible, and can be adapted to different situations. If operated correctly, the unlocking speed is fast. The disadvantage is that it requires a high demand for personal time, energy, and skills, and frequent operations have a certain cost pressure. It requires professional guidance from those who have time, energy, and technical knowledge. Tips for trading gold: 1.Entry point: The entry point is crucial. Although gold and crude oil trading involve two modes, long and short, there are actually four modes: low long, low short, high long, and high short. In a one-sided trend, all four modes are feasible. However, in a volatile market, it is essential to avoid low short and high long positions. These positions are akin to chasing rising and falling markets, which often leads to losses. 2.Stop loss: Before placing a trade, determine the stop loss price and ensure it is reasonable. Immediately input the stop loss price after placing the order. The purpose of stop loss is to limit losses. Only by limiting small losses can you preserve your capital. Sometimes you need to let go to gain something. Do not assume that if you lose this time, you cannot earn it back. Manage investment risks carefully. 3.Position sizing: How you allocate your funds affects your ability to tolerate risks. Oversized positions or full positions can lead to increased losses and psychological pressure. Often, you cannot analyze market trends carefully, which can result in mistakes. 4.Take profit: Many traders struggle to take profit, causing profitable trades to turn into losses. In a one-sided trend, the push stop-loss method can be used to increase profit margins. Taking profit requires personal consideration of exit points. Not every trade needs to yield thousands or millions of dollars. Sometimes, in a volatile market, a profit of a few hundred dollars can accumulate over time. 5.Mindset: This is the most critical point and one that every investor must master. When you enter the market, it is undeniable that everyone is here to make money. However, your mindset determines how far you will go on the investment journey. The goal is to prefer small gains over losses, not to think about making more or less profit. Opportunities require us to seek them out ourselves. The moment you read this article, you have already been given an opportunity. Everyone in life experiences setbacks and failures, but the difference lies in our mindset when faced with adversity. Some people always regard setbacks as failures, which can undermine the courage to succeed. In investing, the key is to be on the right path and have the right direction. "A calm sea never made a skilled sailor," and there is no stable market environment. The purpose of investing is to make money! A clear mind is more important than a clever mind in this market. A good habit is more practical than a skilled technique. Perseverance is long-lasting, and authenticity is eternal. This is true of anything we do. I hope my article can bring you benefits and smooth sailing on your investment journey. May my investment experience benefit investors, and with you and me, an ordinary person plus an ordinary person, may we have an extraordinary investment experience and insights. Be meticulous in life and ordinary in your work. May your investment journey be smooth sailing. If my article is helpful to you, please remember to like it. If you have other questions during your operations, you can follow my homepage↓↓↓ to conveniently get the information in the first time. FXOPEN:XAUUSD TVC:GOLD COMEX:GC1!
FXOPEN:XAUUSDEducation
by Ice_and_Fire1
1
judgment of technical indicators and application skills1. Simple judgment of support and resistance: Support and resistance levels are the points in the chart that are subjected to continuous upward or downward pressure.The support level is usually the lowest point in all chart patterns (hourly, weekly, or annual), while the resistance level is the highest point (peak)in the chart.When these points show a downward trend, they are recognized as support and resistance.The best time to buy/sell is near the support/resistance level that is not easy to break.Once these levels are broken, they tend to become reverse obstacles.Therefore, in an uptrend market, the broken resistance level may become support for the upward trend; however, in a downtrend market, once the support level is broken, it will turn into resistance. 2. Understanding of lines and channels: Trend lines are a simple and practical tool in identifying the direction of market trends.The upward straight line is formed by at least two consecutive low points connected.Naturally, the second point must be higher than the first point.The extension of a straight line helps determine the path along which the market will move.Upward trend is a specific method used to identify support lines/levels.On the contrary, the downward line is drawn by connecting two or more points.The variability of trading lines is to some extent related to the number of connection points.However, it is worth mentioning that each point does not have to be too close.A channel is defined as an upward trend line parallel to the corresponding downward trend line.Two lines can represent price upward, downward, or horizontal corridors.The common attribute of a channel that supports the connection point of a trend line should be between the two connection points of its reverse line. 3. Understanding and understanding of the average line: If you believe in the creed of "trend is your friend" in technical analysis, then the moving average will benefit you a lot.The moving average shows the average price at a specific time in a specific period.They are called "moves" because they are measured at the same time and reflect the latest average. One of the shortcomings of moving averages is that they lag behind the market, so they are not necessarily a sign of a trend shift.To solve this problem, using a shorter period moving average of 5 or 10 days will better reflect recent price movements than a 40 or 200-day moving average.Alternatively, the moving average can also be used by combining two average lines of different time spans.Regardless of the use of 5 and 10-day moving averages, or 40- and 200-day moving averages, buy signals are usually detected when the shorter-term average crosses the longer-term average upward.In contrast, a sell signal will be prompted when the shorter-term average crosses the longer-term average downwards. In order to facilitate everyone to continue to follow up on my analysis and sharing, you can like and follow me; in addition, I will share the daily real-time strategy in the channel. If you can't follow up in real time, you may make operational errors.You can use the following methods to enter my channel for free to follow the latest news and follow up on market trends in real time.
FX:XAUUSDEducation
by Blessed_V
Ways to achieve greater profits It's not necessary to use heavy positions or hold onto trades in order to achieve greater profits. I want to emphasize the dangers of these two approaches again. Heavy positions - the most direct manifestation of this in the market is that even if you are in a relatively good position, once you are stopped out, the heavy position can lead to significant losses. Of course, it must be acknowledged that if you can correctly predict the direction, it can also bring significant returns. However, when weighing the two approaches, preserving capital should always be the first principle. Holding onto trades is even riskier. Once you encounter a one-way market, if you keep adding to your position, the result will be huge losses or even blowing up your account. Therefore, both approaches are not advisable. The correct approach is twofold. First, operate in markets with larger formations, using staged profit-taking and setting trailing stops to take advantage of greater market space with zero risk. By holding for the long term, you can maximize profits. Second, as the market continues to move, add to your position appropriately in situations where you already have profits, and then set stop-loss orders to protect your capital. For example, if you sell at the upper bound and the market later falls below the lower bound, the entire formation will turn downward. We understand that there is still a lot of room for the market to run, so if you have profits from your sell order at the upper bound and the formation begins to turn downward, you can use additional orders and stop-loss orders to hold onto the position with zero risk, thereby maximizing profits. Follow me for more interesting ideas that will greatly help your trading.
FXOPEN:XAUUSDEducation
by EagleEyeStrategy
Two methods to ensure no loss of principal There are only two ways to avoid losing capital: one is to have a small stop-loss space (reflected in the entry position), and the other is not to bet too much at once. For example, buying one lot with $10,000 can earn $1,000, and buying ten lots with $100,000 can earn $10,000. Although the probability is the same, the more you do, the more you earn, and the less you do, the less you earn. However, controlling losses should be the top priority. As discussed earlier, if you buy too many lots this time and get stopped out, it will result in a big loss, which violates the principle of capital preservation. Some traders become increasingly greedy after making profits and then add more positions. A typical behavior is adding positions. For example, if you bought 10 lots at first and then made a profit in the expected direction, the trader would blame himself for not buying more at the beginning. Then, he would begin to imagine that the market would continue to move in the expected direction and invest most of his capital in this product, let alone any correct practices such as taking profits in batches. After you add more positions, it means that the cost has changed. Once the market reverses slightly, you will go from being profitable to losing money. At this point, you panic, lose your ability to think, and greed slowly turns into hope. You hope that this is only temporary, but the losses increase every moment. Perhaps you will have some luck a few times, but it won't be long before there is a risk of a big loss or liquidation. It is important to understand that becoming rich cannot be achieved by just one market movement, so don't be obsessed with this one time. Greed makes people forget about risk, and don't always imagine that the market will move in the expected direction, ignoring the risk of the opposite trend. This is the key to keeping your capital out of danger. Follow me, and I will share more interesting ideas that will greatly help your trading.
FXOPEN:XAUUSDEducation
by EagleEyeStrategy
Who Moves the Forex Market | Forex Market Players Forex is the largest market in the world, with the tremendous daily trading volumes and millions of market participants. In this educational article, we will discuss who moves that market and who are its 6 the most significant players. 1. Governments Governments tend to set economic goals and influence the markets with their political decision. They define the course of their nations, issuing policies and imposing regulations. 2. Central banks Central banks implement the decisions of the governments, applying multiple instruments: Central banks control the emission of the money, shifting the supply and demand. They control interest rates and define the credit policies. Central banks control the international trade and sustain the exchange rates of the national currencies by interventions and handling the foreign currencies and gold reserves. 3. Commercial banks Commercial banks handle the international transactions. Over 70% of total Forex Market transactions directly refers to the actives of commercial banks. Commercial banks are also involved in speculation activities, benefiting from market fluctuations by relying on various strategies. 4. Corporations Corporation is the business that operates in multiple countries. With the constant capital flow between its branches and counterparts, corporations are permanently involved in a currency exchange. Also, corporations usually hedge currency risks, storing their liquidity in particular currencies. 5. Investment funds By investment funds, we imply the international or domestic professional money management companies. Dealing with hundreds of millions of investments, they quite often are operating on Forex market, buying foreign assets, speculating and hedging. 6. Retail traders The main goal of retails traders and speculators is to make short terms profits from their transactions on the market. Typically, the activities of traders constitute a relatively small portion of total trading volumes. Knowing which forces move the forex market, you can better understand how it works. The spot prices that you see on the charts reflect the sentiment of all the above-mentioned participants. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
4
Non-farm payrolls data is about to bearish the gold market!Today, the U.S. February quarter-adjusted non-farm payrolls data will be released. Everyone knows that this data will play a key role in the gold market, because the performance of non-farm payrolls will directly affect the fundamental sentiment, which will determine the direction of the gold market in a short period of time.Does the non-farm payrolls data to be released today benefit the gold market or suppress the gold market?Let us make a bold prediction. On Wednesday, the announced value of ADP employment in the United States in February was 242,000, the previous value was 119,000, and the forecast value was 200,000, while the actual announced value of 242,000 was much higher than the previous value and the forecast value. To a certain extent, it shows that the U.S. economy is strong and supports the dollar, thereby suppressing the gold market. On Tuesday, Fed Chairman Powell's hawkish speech suppressed the gold market. However, after Fed Chairman Powell mentioned on Wednesday that the rate of interest rate increases in March depends on the data, the number of initial jobless claims in the United States released on Thursday was 210,000, higher than the previous value of 190,000 and the forecast value of 195,000, reflecting that the tight job market in the United States has still not eased, causing the market's expectations of the Federal Reserve raising interest rates by 50 basis points in March to cool down, US bond yields fell sharply, and the dollar was dragged down, which benefited the gold market. And today's non-farm payrolls data show that the market expects the number of new jobs to be 205,000, compared with the previous value of 517,000. Judging from the ADP data guidance, the non-farm payrolls data show that the market expects the number of new jobs to be higher than the expected value of 205,000, and the number of initial jobless claims in February remained at a comparable level. Although the number of people applying for unemployment benefits at the beginning of the week was as high as 210,000, overall, the number of new jobs in the month will not have much impact, so I think the non-farm payrolls released today will be higher than the expectation of 205,000, thereby suppressing the gold market. It should also be noted that the position of SPDR, the world's largest gold ETF, decreased by 3.47 tons to 903.15 tons on Thursday, a new low since the end of January 2020, suggesting that institutional and professional investors are still inclined to bearish the gold market. It can also be seen from the trend of gold. Although gold has recorded a strong rise in the short term, the strong pressure above still exists. Therefore, the early rise of gold is most likely to be to prepare for non-farm payrolls data and reserve room for the decline of the gold market.Then everyone thinks that the non-farm payrolls data to be released today will benefit the gold market or suppress the gold market?Everyone is welcome to come and discuss. In order to facilitate everyone to continue to follow up on my analysis and sharing, you can like and follow me; in addition, I will share the daily real-time strategy in the channel. If you can't follow up in real time, you may make operational errors.You can use the following methods to enter my channel for free to follow the latest news and follow up on market trends in real time.
OANDA:XAUUSDEducation
by Blessed_V
3
What is the golden rule of taking profits? For trading stocks, futures, or forex, taking profits is also part of the trading process. For investors, taking profits and adhering to it during a trade is effective. When to take profits? Where is the best position for stop loss and take profit? Which strategy is more profitable? Taking profits and stop loss is one of the most important aspects of trading. If not handled properly, it could lead to losses. In previous articles, we have discussed the rule of stop loss. This chapter will discuss the rule of taking profits. Investors are advised to follow and read this article. If it is helpful, please give it a like. Thank you. Methods of taking profits Taking profits means closing the position and securing profits when the trading goal is achieved to prevent market reversal. Taking profits can be divided into static and dynamic methods. Static taking profits means setting a target for taking profits and closing the position when the target is reached. For example, if the profit expectation is 100 points and the price has risen 100 points, the position is closed to take profits. The target for taking profits is fixed and static. Dynamic taking profits means the profit target is dynamic and is held until the price meets a dynamic standard before closing the position. For example, when holding a long position and floating profits, close the position when the market price breaks the bearish level. Traders cannot know in advance where the bearish level will appear and need to monitor the market dynamics. Next, we will discuss five methods of taking profits. Method 1: Fixed point profit taking This is the simplest method of static taking profits. After entering the position, set a fixed profit space. This profit-taking method is more suitable for intraday and short-term trading. For example, after entering an intraday trading position, set a fixed profit-taking point of 50 points. Intraday trading has a relatively obvious characteristic of fluctuating trends, and market prices tend to rebound and even fluctuate repeatedly. The profits from holding positions during market rebound may be given back, so setting a fixed profit-taking point can be more advantageous during trading. In practical trading, the number of fixed stop-loss points should be set according to the volatility of different products. For products with high volatility, set a larger number of fixed stop-loss points, and for products with low volatility, set a smaller number of fixed stop-loss points. Please note that this method should not be underestimated simply because it is simple. Whether this method is useful or not depends on the specific usage environment. Method 2: Fixed profit and loss ratio take profit. This is a commonly used static take profit method in medium and short-term trading. First, let's talk about the profit and loss ratio. The ratio of the profit space of an order to the stop loss space is the profit and loss ratio. For example, if the profit is 100 points and the stop loss is 50 points, the profit and loss ratio is 2:1. Fixed profit and loss ratio means that the take profit is set according to a fixed ratio based on the stop loss space. For example, if the stop loss of an order is 100 points, setting the take profit at 100 points results in a profit and loss ratio of 1:1. Setting the take profit at 150 points results in a profit and loss ratio of 1.5:1. Setting the take profit at 200 points results in a profit and loss ratio of 2:1, and so on. The fixed profit and loss ratio method is easy to operate and highly executable. Moreover, when the market fluctuates and the stop loss space expands, the take profit space will also expand accordingly, making it very flexible. Method 3: Take profit combined with technical indicators. This is also a static take profit method. After entering an order, the take profit is set based on technical indicators. For example, setting the take profit at the level of previous highs and lows, or at the support and resistance levels of the Bollinger Bands or important moving averages, is feasible. In addition, in practical trading, it is common to enter and exit at small time frames while looking at the support and resistance levels of larger time frames. For example, entering at the 5-minute level and setting the take profit at the support and resistance level of the 1-hour chart, or entering at the hourly level and setting the take profit at the Bollinger upper and lower bands of the daily chart, is essentially a logic of "going small and looking big". Method 4: Take profit following the trend. This is a dynamic take profit mode and a trend-based take profit strategy. After entering an order, the position is held following the trend indicator, and the position is held until a reversal signal is issued, at which point the take profit is closed. Tracking with trend lines, channel lines, and turning points in the market are all common practices in daily trading. Method 5: Combination of multiple methods, batch-wise profit taking. The above four methods are the most mainstream and commonly used methods, but each method has its pros and cons. For example, the fixed profit and loss ratio method cannot hold onto trend profits, and the trend tracking method cannot make profits in volatile markets. Therefore, some clever traders combine these methods and take profits in batches. For example, after the order is entered, when the profit and loss ratio reaches 1:1, part of the position is closed, and the remaining position is exited using the trend tracking method to achieve greater profits. In practical trading, traders can combine the above profit-taking methods in different ways, such as combining the support and resistance levels of the previous high with the fixed profit and loss ratio, or combining the support and resistance levels of the previous high with the trend tracking method. After discussing these five profit-taking methods, it is only providing traders with an idea, and the specific results of practical trading must be reviewed and analyzed in combination with their own trading systems. OANDA:XAUUSD FXOPEN:XAUUSD
TVC:GOLDEducation
by Ice_and_Fire1
5
What is the ultimate level of stop-loss in trading? For trading in stocks, futures, or forex, stop loss is a part of the trade. It only works effectively for investors if it is included and adhered to in every transaction. As we all know, stock investment requires three basic skills: stock selection, stop loss techniques, and profit-taking strategies. However, many investors do not pay enough attention to stop loss and profit-taking techniques, and ultimately regret not setting stop loss and profit-taking points. Today, we will introduce the highest level of stop loss techniques. First, the comprehensive stop loss method is the highest level of stop loss for stock investment. Therefore, when setting the stop loss point, the overall situation must be taken into account. There is no stop loss method that exists separately from the investor's overall operation. If the stock market develops beyond the investor's ability, it means that the stop loss measures must be implemented. Second, the highest level of stop loss is in the heart of the investor. When selling stocks, investors should not only rely on their eyes but also observe and analyze with their hearts. Many stock investors only believe in what they see when selling stocks. As a result, they often miss the selling opportunity when they finally realize the situation. Third, the stop loss method based on consolidation time. If an investor buys a stock with a heavy position, but the stock price does not rise much after buying, and it starts to move sideways after a period of time, it is important to note that if the consolidation time is too long, it means that the main force cannot use funds to boost the stock price. Fourth, stop loss based on real-time trends. If the main force of a stock has been washing the stock for some time and still has not controlled the stock when it is time to do so, it means that the main force has no intention of raising the stock price, and the future outlook is pessimistic. At this time, investors should take timely stop loss measures, otherwise, they will end up suffering losses. Fifth, stop loss based on trading volume. If an investor encounters a stock that is severely oversold, and many investors are trapped at a higher price, it is time to sell the stock. However, sometimes, observing the daily k-line chart, it is found that there has been a huge increase in trading volume in recent days. Note that this is a trap set by the main force to lure retail investors. In summary, the above is the relevant knowledge about stop loss techniques that we introduce to stock investors, hoping to help our friends in the investment field. FXOPEN:XAUUSD MCX:CRUDEOIL1! FX:EURUSD
TVC:GOLDEducation
by Ice_and_Fire1
How Leverage Really Works | Margin Trading Explained Leveraged trading allows even small retail traders to make money trading different financial markets. With a borrowed capital from your broker, you can empower your trading positions. The broker gives you a multiplier x10, x50, x100 (or other) referring to the number of times your trading positions are enhanced. Brokers offer leverage at a cost based on the amount of borrowed funds you’re using and they charge you per each day that you maintain a leveraged position open. For example, let's take EURUSD pair. Let's buy Euro against the Dollar with the hope that the exchange rate will rise. Buying that on spot with 1.195 ask price and selling that on 1.23 price we can make a profit by selling the same amount of EURUSD back to the broker. With x50 leverage, our return will be 50 times scaled. With the leverage, we can benefit even on small price fluctuations not having a huge margin. ❗️Remember that leverage will also multiply the potential downside risk in case if the trade does not play out. In case of a bearish continuation on EURUSD , the leveraged loss will be paid from our margin to the broker. For that reason, it is so important to set a stop loss and calculate the risks before the trading position is opened. Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
10
How to grasp the impact of news on GOLD? Here we will use the United States as an example since it is a major world economy with significant influence and weight. Point 1: Release of important data For instance, the release of US non-farm payroll (NFP), employment data (ADP), initial jobless claims, CPI, GDP, PMI, etc. all have varying degrees of impact on the price of gold. Often, the release of this important data will trigger fluctuations in gold prices. Generally speaking, when the US dollar rises, gold falls, and when the US dollar falls, gold rises. However, there may be synchronous situations, which are very rare. If this occurs, investors need to analyze and consider it carefully. For instance, the weakness of the US dollar often pushes up the price of gold, as the decline in the US dollar can allow investors who use non-US currencies as their base currency to buy cheaper gold with other currencies. It can also stimulate demand for gold, especially in the consumption of gold jewelry. Point 2: Speeches by some important officials For example, speeches by well-known officials such as those from the Federal Reserve and the US Treasury. Undoubtedly, speeches by officials from different countries are a significant factor influencing the trend of gold prices, but the impact of officials' positions, identities, and the content of their speeches on the gold market varies in magnitude. The above two points are a few of the news contents that have a significant impact on the price of gold. In addition, other economic data in the United States should also be noted as they all mutually influence and relate to each other. COMEX:GC1! BIST:XAUUSD1! MCX:GOLD1!
FX:XAUUSDEducation
by investmentMr-X
How to achieve stable and sustained profits. How to grasp the trend in this market? It is to follow the trend. When the trend comes, the invisible force is pushing you forward. To gain profit and income in the gold and foreign exchange markets, this is particularly important. What is the secret to making profits? The answer is simple and also the most overlooked and precious thing that is free, just like the air we breathe and the sunshine. What is the secret to making money? In fact, it is simple. Throw away all the news and fundamentals, return to rationality, and independently analyze and follow the trend. Trading is a trial-and-error process! In the continuous occurrence of errors, the main problem faced is the shrinking of funds and psychological torment. A trader must reduce the probability of making mistakes because your profit comes from other people's losses. That is to say, when someone makes a mistake, there will be profits for others to earn in the market. However, you cannot calculate or predict how many people will make mistakes in the next step, how big the mistakes will be, nor can you guarantee that you will always be on the correct side. Therefore, in trading, the only thing you can do is to try to make the time of your mistakes as short as possible. The rest is to wait for others to make mistakes, let's work hard together! In trading, we may have short-term profit goals, but long-term goals are based on short-term profits. Without short-term profits, long-term goals are meaningless. Therefore, we need to balance short-term and long-term goals to achieve stable and sustained profits. Pay attention to me and make trading simpler.
TVC:GOLDEducation
by Ice_and_Fire1
How to achieve profits by managing emotions?Market fluctuations are often a direct reflection of the emotions of market participants. Managing and controlling emotions is essential for successful trading. If you cannot control your emotions, you will suffer from impulsive emotional behavior and make bad decisions, which will harm your trading performance. Negative emotions such as fear, hatred, anger, greed, jealousy, pessimism, and despair can lead to negative consequences for traders. Traders who have negative emotions may lack the ability to leave positions, refuse to accept reality, and blame others, resulting in selling positions only after a long period of price declines, missing the best buying points, and selling too early. Negative traders may also regard failure as a negative, significant, and final result, attributing losses to their own shortcomings or negligence. Everyone experiences various emotions, but people with high emotional intelligence can better manage their negative emotions and vent them appropriately. Emotional control skills can be developed through practice, but it is important to note that this process is a long-term and systematic one. Traders must be psychologically prepared for this. Therefore, no matter what happens, you must control your impulsive emotions. Take a deep breath for 10 seconds, then choose the best course of action. This often leads to more rational and correct decisions. Do not make decisions when impulsive, and do not make promises when excited. By managing your emotions, you gain control over your life. There are various emotions in life, and you must learn to manage and control them. Do not be a slave to your emotions. Manage your negative emotions and cleverly transfer them . Similarly, controlling emotions in life determines emotional control in trading. The three stages of emotional failure leading to trading losses are: 1) being careless before unexpected events occur; 2) being panicked after unexpected events occur; 3) being eager to make up losses after suffering losses. The solutions are as follows: Always respect the market and trade with caution. Approach the market with a trembling, cautious attitude. Once you suffer losses, do not panic. Stop trading temporarily, find the cause, identify the problems, and improve your system. Impatience is the biggest reason for traders' losses. Heavy positions are impatience, opening and closing positions without signals is impatience, frequent trading is impatience, adding positions is impatience, which is essentially greed, wanting to make money quickly. Be patient, make calm decisions, and the market will reward you.
INDEX:BTCUSDEducation
by triumphing
Profit fixation Profit fixation There are three main profit-taking strategies: 1. Fixed RR (1:2, 1:3RR). 2. High RR (1:10RR and above). 3. Partial profit taking. Fixed RR. When trading with a fixed RR, the trader ignores the situation on the chart and places a take profit at the level of 1:1, 1:2, 1:3, taking into account the commission. This approach has a high win rate and also relieves the trader from feeling greedy. You do not need to select targets, accompany the position and worry about a random factor that the price may react to. We think that many people are familiar with the situation when the take is put on a lay, the price reaches 1:5R without removing the minimum, and then hits the stop. The weak side of the strategy is that it has limited profit potential. Often when trading with the trend, you can get more than 2 or 3%. High RR. According to this strategy, a position is opened on a lower timeframe, and targets are allocated on a higher timeframe in order to set a short stop and a long target. On the other hand, this does not prevent you from using a fixed take profit level.A. At one time, Liquidity traded high RR and set a take at the level of 1:10, regardless of the targets on the chart. Many in this strategy are captivated by mathematics. With a risk-reward level of 1:10, a win rate of 10%-20% or 1-2 profitable trades over a distance of 10 positions is enough not to be unprofitable. And yet, this strategy can harm the trader. If the price does not reach the marked targets, you will not make a profit even if you did everything right. This puts a lot of pressure psychologically, especially when it was possible to take 3-5% and close the position in plus. You may get the impression that there are only two extremes: earning rarely, but a lot, or little, but often. But there is another strategy that helps to balance and find a happy medium. Partial profit taking. The trader fixes the profit in parts as the selected goals are achieved. Targets can be determined both by schedule and by risk-reward ratio. For example, you fix 50% of the position at 1:3, 25% at 1:5 and 2 more5% at 1:10. Either 50% on FTA and the rest on potential reversal zones. This strategy will help you capitalize on your trading ideas, reducing the risk of losing profit when the price falls short of the marked targets. Partial fixation will be useful for novice traders because it creates a positive experience and demonstrates what you are capable of. Do not jump from extremes to extremes and look for balance. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
Human weaknesses that need to be overcome in the trading process Fear of missing out Before entering the market, you may have a bullish or bearish view and enter accordingly. Once you have a position, you are constantly concerned with the fluctuations of your account funds, tormented by various temptations, fears, greed, persistence, hope, and emotions influenced by these changes, and ignoring the market itself. This greatly interferes with normal thinking and judgment. Whether it's a long or short position, whether it's a profit or loss, as long as small gains and losses are within an acceptable range, one should beware of large losses. Traders should focus on the correctness of the process and be content with the results as they come. If you think about the results in advance, it will disturb the entire trading process and result in losses every time. The human mind always jumps ahead to imagine unrealistic outcomes and ignores what is actually happening in the present. This is a big mistake in our lives. These are the causes of fear or greed, which can lead to traders regretting after placing an order or closing a position, causing hesitation and indecision. The reason for this is that there is no effective trading system, causing traders to lack confidence in any aspect of the trading process. Confronting the market Traders must first understand that the market does not shift according to human will. The education we have received since childhood is based on competition, such as overcoming various obstacles and fighting difficulties. This consciousness has deeply rooted itself in the hearts of traders. In fact, when traders enter the market, they still carry this mentality. Often, some elites from various industries come to the market and suffer failures, and even more thoroughly than ordinary people. This is because successful people in other industries have a strong sense of self and do not believe they will fail. They are also unwilling to accept their own failures. Their success makes their personalities become very tough, so when the market turns against them, they do not know how to yield and compromise, but adopt a confrontational attitude until they are destroyed. People in life tend to defend their views to some extent, unwilling to admit their judgment errors. Therefore, regardless of whether a person is right or wrong, they will stick to their attitude to the end. What they defend is not the truth, but their self. This inherent nature of struggle and the attitude of not wanting to yield or give up self is the biggest obstacle in trading. Holding positions, not setting stop losses, and not admitting mistakes can eventually result in large losses or even liquidation. The pursuit of perfection The pursuit of perfection is a very greedy and extreme mentality. Because of this pursuit, it does not allow any flaws, cannot bear even very small losses, and it is difficult to execute a stop loss when necessary, and wants more profit when it is time to close a profitable position. Because of this pursuit, a person tries to capture every movement and does not want to miss any market situation. Everyone has their own limitations and areas in which they are not good at. The pursuit of perfection can easily lead to frequent and impulsive trading. To be continued...
INDEX:BTCUSDEducation
by triumphing
3
When Your Trading Journey Begins... Hey traders, In this article, we will discuss your first steps in trading. Being interested in financial markets and being attracted by an idea to become a full time trader, you decide to learn how to trade. The first obstacle that you will most likely face with is a tremendous range of topics and strategies to study: key levels, price action, technical indicators, fundamental analysis... The problem is that there is no one single way to learn how to trade. Each educational article, each guru on YouTube dictates their own specific path. You will most likely feel lost, not being able to grasp what even to start with. You will chaotically jump from one topic to another, not being able to understand which concepts do actually work. The situation will even worsen once you decide to try to trade on real money. I do not know any trade who would not blow his first trading deposit. Not only you will be paralyzed by the complexity of the subject, but you will also lose money simultaneously. There will be a lot of times when you will think about leaving this game. Many times, you will consider the entire trading industry to be a scam. That is the moment where most of the traders quit. I am telling you all that simply because I want to show you that we all have the same path. We go through the same obstacles and we think the same way. The only difference between a true winner and a loser, however, is that winners never give up. Winners keep working hard and stay patient. And at the end of the day, magic things happen to them. After years of practicing and suffering, one day you will certainly realize how the things work. One day you will become a full time trade. Just don't give up, always remember, “The nearer the dawn the darker the night.” ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
11
Risk-to-Reward > Win RateWe have mentioned it in a list of our previous educational posts and we will state it again: your risk-reward plan is much more important than your win rate. You can have a 90% win rate and still be losing in the long-run. On the contrary, you only need a 35% win rate to be a consistently profitable trader on the longer term. Beginners mainly focus on winning as many trades as possible and it is totally understandable, because we have all been there. "The more trades I enter, the more money I will make" principle has destroyed many trading careers. The explanation to the "Why?" question is pretty simple: when we are new to trading, every win gives us euphoria and makes us think we are the rulers of the market. Guess what happens next, the market hits back, puts us in a position where we are stuck in a losing streak, and humbles us enough to quit trading and think it does not work. As we get more experienced, we lean towards the "Less is more" principle and believe that quality will always be over quantity. As an instance, we have orchestrated 2 scenarios on the graph. The example on the upper side of the screen shows how our trader has a 80% win rate but has yet failed to remain in profits due to the fact that he does not have a solid risk management plan. On the opposite side of the road, we have Trader B who is able to remain in consistent profits by winning only 20% of the executed transactions. All those minor losses that he made got covered by one big win, and as long as he keeps following the current risk management policy and strategy of his, he is sure that he will be consistently profitable in the long run.
BITSTAMP:BTCUSDEducation
by Investroy
11
How to survive in the market for the long-term? In the market, regret is a frequent word. Many people face the complex investment market and often feel fear, hesitation, and regret, whether it's before buying, after buying, after selling, or just watching without buying. How to avoid this phenomenon? The fear, hesitation, and regret are largely due to not knowing how to manage positions and follow the crowd. Often pursuing high probability profits results in the opposite. Risk management is an unavoidable issue when it comes to this. Whether you are a financial master or an individual investor, the importance of risk management is paramount. To relax and operate in the market, you need to face your current situation, make correct judgments on the profit and loss ratio, determine your operating frequency and position management, and give yourself correct psychological guidance. Everyone's personality is different, and their risk tolerance and trading styles are also different. There is no strategy that is 100% accurate, but if you want to survive in the market for a long time, you need to control risk. Don't be afraid of losses. Losses are inevitable, but the key is how much loss you can tolerate. This is the core of risk management. For small losses, we need to prepare ourselves psychologically. This is a link in risk management. Don't rely on luck. The losses brought about by a lucky mentality are incalculable. About 70% of the time in market fluctuations is in oscillation, and only about 30% of the time is in a unilateral surge or decline. Therefore, accumulating small victories is the magic weapon for long-term success. Always wanting to go all-in and make a big move at once may result in missed profits due to not exiting in time. No matter what state you are in now, I hope I can bring you a little bit of help!
INDEX:BTCUSDEducation
by triumphing
The Simpliest Math Behind Every Succesful TraderWhat exactly is risk management? The ability to control your losses so that you do not lose all of your equity is referred to as risk management. This is a system that may be applied to everything that involves probabilities: trading, poker, blackjack, sports betting, and so on. Many inexperienced traders underestimate the significance of risk management or don't understand the basics when it comes to risk management. Would you risk $5,000 on every trade if you had a $10,000 trading account? Probably not. Because it only takes two consecutive losses in order to lose everything. 🧠 Now, let's imagine a thought experiment, in wich 🤩Alex and 🤨Peter are both traders with $10,000 in their accounts. Alex is a high-risk trader who puts $2500 risk on every trade. Peter is a cautious trader who puts $100 risk on every trade. Both apply a trading strategy that has a 50% success rate with an average risk-to-reward ratio of 1:2. For good example, let's imagine the next 8 trades had the following results: 4 losing trades in a row 4 winning trades in a row Here is the result for Alex: -$2,500, -$2,500, -$2,500, -$2,500 = -$10,000 Loss of the total account 😭😭😭😭 Here is the result for Peter: -$100, -$100, -$100, -$100, +$200, +$200, +$200, +$200 = +$800 Profits. 🏆 🏆 🏆 🏆 Can you tell the difference? See how risk management show the difference between being a profitable or losing trader. Peter managed to recover losing trades, and get into good profits after 8 trades. Alex didn't survive 4 trades... 🚨 You might have the finest trading strategy in the world, but if you don't manage how much you lose, you'll lose it all. It's only a matter of probability and time. However, following this basic example will assist you to make your trading more profitable. Simply give it a shot. Kind regards Artem Crypto Follow, Like and Share are appreciated! Take a look at my other Educational ideas below:
INDEX:BTCUSDEducation
by ArShevelev
12