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Risk Management

Understanding Forex Risk Management (Trading Depends On It)Forex Key Takeaways The forex market is among the most active and liquid in the world, with trillions of dollars changing hands between different currencies. Still, there are many risks that a trader must be aware of and how to minimize or mitigate those risks. Because forex trading operates with a relatively high degree of leverage, the potential risks are magnified compared to other markets. This Is Now Speculating as a trader is not gambling. The difference between gambling and speculating is risk management. In other words, with speculating, you have some kind of control over your risk, whereas with gambling you don't. Even a card game such as Poker can be played with either the mindset of a gambler or with the mindset of a speculator, usually with totally different outcomes. Know The Odds So, the first rule in risk management is to calculate the odds of your trade being successful. To do that, you need to grasp both fundamental and technical analysis. You will need to understand the dynamics of the market in which you are trading, and also know where the likely psychological price trigger points are, which a price chart can help you decide. Once a decision is made to take the trade then the next most important factor is in how you control or manage the risk. Remember, if you can measure the risk, you can, for the most part, manage it. Example On 4 hour attached chart: $10,000 account, risking 2% per trade or $200 & your trades are 1:1 (risk/reward) & 70% win rate. So, the first rule in risk management is to calculate the odds of your trade being successful. To do that, you need to grasp both fundamental and technical analysis. You will need to understand the dynamics of the market in which you are trading, and also know where the likely psychological price trigger points are, which a price chart can help you decide. Once a decision is made to take the trade then the next most important factor is in how you control or manage the risk. Remember, if you can measure the risk, you can, for the most part, manage it. HOW much money would your account have at 100 trades? . If you can not figure this out- then you are NOT ready to trade Forex for real- doing simple math goes hand in hand with success in Forex for the long run.
Education
by Anbat
4
'Trading Psychology: 'The 3 Levels of your Game'Hello Traders, As we know trading is one of the most challenging professions in the world and not only do you have to do your research and own due diligence on a technical aspect, you must ensure your mind/emotions are on point as it is the most common reason traders lose money in this industry. I wanted to share a bit of information from a mental and emotional standpoint about breaking down the 3 levels of your Psychology Game. . No matter how skilled one trader is, everyone has an area that could improve and everyone will make mistakes. The 3 main mistakes we as traders make are: To summarize this chart, the differences between 'B' and 'C' game is that in the 'B' game you have the impulse or thought to make a 'C' game mistake, like closing a trade too early or forcing a trade. Instead you retain the presence of mind and emotional control to avoid it. In your 'C' Game, your emotions are too strong and you cannot stop yourself from forcing trades or cutting profits short. While in the 'A' game, the impulse or thought doesn't happen, or its too small you barely notice. Your goal to as a trader is to eliminate and correct your performance errors that cause your 'C' game. You cannot by escape how much of the gravitational force 'C' game has by focusing on improving just your trading skills and knowledge. You will continue to make the same errors (possibly different ones, but errors are errors) which will create a level of excess negative emotion in your mind. Creating and plan of emotions to examine & review on a daily basis will help you correct your failures and fill you with a different type of emotions, happy ones. By writing down your thoughts of what is going on before, after and during, you start breaking down the backend of your trading and your decision-making becomes much easier and more confident. Creating a plan of your emotions could come with a variety of things, some of the most common ones to watch out for are: -Trigger (eg. Swing trading forex) -Thoughts (eg. I can't believe I got stopped out, it has to go up!) -Emotions (eg. I want revenge on any trade that I lost which I know I should have won!) -Behaviors (eg. Overly focused on one position) -Actions (eg. Constantly looking at P/L) -Changes to your decision-making (eg. I need to get my money back, I need to trade more) -Changes to your perception of the market opportunities or running positions (eg. Your going off prediction rather then reaction) -Trading Mistakes (eg. I'm taking the same trade over and over, until its clear I'm getting no where) Journaling down these emotions and also reviewing them on a day to day, trade to trade, basis, will help your trading game improve and make you become much more successful. I hope this has given a brief insight on how trading psychology plays a huge role in our careers, please leave a comment and share what level of game you are! If you felt this has shared some good information, please hit the like button and follow me for more of these! Thanks Trade Safe!
COINBASE:BTCUSDEducation
by ktlfx
1
Position Sizing StrategiesPosition Sizing Traders spend much of their time looking at charts and analyzing using technical or fundamental analysis, or a combination of both. While this indeed is a very good thing to spend time on, not all traders take their time to focus on risk management, and more specific position sizing. I see a lot of new traders or old traders which trade only to have their accounts blown up by taking random positions with no plan whatsoever. Proper position sizing is a key element in risk management and can determine whether you live to trade another day or not. Basically your position size is the number of shares you take on a trade. It can help you from risking too much on trade and blowing up your account. Without knowing how to size your positions properly. You may end up taking trades that are far too large for your account. In such cases, you become highly vulnerable when the market moves even just a few points against you. Your position size or trade size is more important than your entry and exit when trading or investing. You can have the best strategy in the world. But if your trade size is too big or too small, you will either take too much or too little risk. So how do you prevent yourself from risking too much? How do you know the right quantity to buy or to sell when you initiate a position? Let's say you have $10,000 in your account, and there's a stock valued at $100 you like and want to buy. Do you buy 100 shares, 10 shares, or some other number? This is the question you must answer to how to determine your position size. If you decide to spend your entire account balance and buy 100 shares, then you will have a 100% commitment to the stock and this is not indicated also in taking a position that represents a large portion of your total portfolio. There is also the opportunity cost involved, you will have to pass up other trades that you may have liked to enter. Position Sizing is a critical issue that a trader needs to know beforehand and to do on the fly. It's as important as picking the right stock or currency to invest. Position Sizing Strategies ☀️ There are several approaches to position sizing and I will run down some of the more popular ones. 1️⃣ The first one and the most common one is "Fixed percentage per trade". Position Sizing can be based on the size of an overall portfolio. This means a percentage of that overall capital will be predetermined per trade and will not be exceeded. That would be 1% or even 5%. This fixed percentage is an easy way for you to know how much you are buying when you buy to use a simple example of fixed percentage position sizing. Let's take again the $10,000 account size and a $100 stock. If you take a simple one-person position based on your account size that comes down to a single share, you may be thinking you are no better than the person with a $100 account buying one share. The difference is that the $100 account holder has a 100% position size while the $10,000 account holder is putting just one percent at risk. Which position size allows a trader to sleep better at night? Of course, the second position sizing helps control the risk. A 1% hard limit on each trade allows you to tolerate many losses in your search for profits. Protecting your capital is your primary job. Your secondary job is allowing room in your portfolio to find other trading opportunities. The fixed percentage amount is an easier approach to accomplishing this 2️⃣ The second risk management approach involves a "fixed dollar amount per trade". This approach also uses a fixed amount for this time. It's a fixed dollar amount per trade, rather than a percentage of the actual portfolio. This involves choosing a number again and using the same $10,000 portfolio as an example. So you decide you won't spend any more than $200 on any trade. For traders with small account sizes, this can be an attractive approach because it limits how much you can lose. However, it also limits what stocks you can buy. You will have to roll out some securities based solely on their price. Of course, this is not necessarily a bad thing. 3️⃣ The third approach is "volatility-based position sizing" A more complex approach, but one that allows for more flexibility is position sizing based on the volatility of the security you plan to buy. It's more dynamic because it doesn't treat each stock the same. This approach allows you to drill down and exercise finer control over your portfolio. For example, growth stocks will invariably be more volatile, and that volatility will be reflected in your portfolio. To reduce that overall risk on your portfolio. You wouldn't buy less high volatility stocks than you would lower volatility stocks. You can measure volatility with something as simple as a standard deviation over a given period, say 15 or 10 trading days. Then depending on the deviation, you adjust the number of shares you buy when you initiate a position. This allows lower volatility stocks to have more weight in your portfolio than higher volatility ones. Position Sizing based on this ideology lowers the overall volatility within a portfolio. This strategy is frequently used in large portfolios. Even longer-term traders and investors face position sizing questions for them when the price of a security with their holding goes down. It represents more value. Adding to their position, in this case, is referred to as averaging down. Long-term traders can decide to average down using similar position sizing approaches by risking either a fixed dollar amount or a percentage amount when the stock trades down you can use standard deviation here as well to help figure out the dollar amount. Some additional common sense risk parameters seem worth mentioning and may be incorporated into your trade plan. For example, Once you've figured out how much you're comfortable losing a stop loss level for each trade should be determined and placed in the market. A seasoned trader will generally know where to put their stop loss orders after having optimized their trading plan and chart analysis is often performed when setting stop-loss orders rules of thumb should be followed when you use stops to manage risk on your positions. By now I hope you realized that correct position sizing is crucial. You should always consider how much you buy when you buy and also know how you came up with that number. Regardless of your account size. Take the time to come up with a consistent approach that matches your trading style and then stick to it. You can incorporate flexibility as well. For example, if you're willing to take more risks with your portfolio, you can die a lot of the person that you use. sound money management techniques can help make an average trader better and a good trader becomes great. For example, a trader that is only right half of the time, but gets out of losing trades before the loss becomes significant and knows the right winners to a substantial profit would be way ahead of most others with trade with no clear plan of action whatsoever. And you have to find the right balance because if you risk too little and your account won't grow and if you risk too much, your account can be destroyed in a few bad trades. 🌱 If you found value and learn something new, leave me a like to show your support. 👍🏼❤️
INDEX:BTCUSDEducation
by parissap
23
A quick and dirty trading method I useSo lately I've been using an Envelope indicator, and nothing else. I have it set to a 3-period smoothed MA on MT5, which is basically the same thing as 6 exponential on TradingView. From there, for every pair, I fine-tune the envelope's deviation range to create a very specific situation. 1) You want consolidation candles to generally close inside of the envelope. Most candles should close inside the envelope, or at least have presence on the inside. Sometimes trends are stupidly strong, though. 2) You want momentum candles to close outside of the envelope. So how do you trade it? Simple. 1) When a momentum candle closes outside the envelope, you look to enter a position on the inside of it. 2) You place a hard stop loss, which could be a 1:1 if you think in ratios, or a specific amount of money that you're willing to lose. The stop should be reasonably wide, like pretty distant from the opposite side of the envelope, because wicks happen all the time. 3) You close with a loss *only* if the price either hits your hard stop (unlikely), or if a candle closes on the wrong side of the envelope. This is important! 4) You take profit either when you're happy (typically 1:1 or greater), or with a trailing stop loss. The purpose of this trading system is to trade the *exact* trend you're on currently, rather than going for some kind of fibonacci pullback or whatever. On top of that, your losses are well controlled since your entries usually won't be far from your exit if you're wrong. Example:
Education
by WinkleTrades
2
HOW-TO: Build your strategy with Protervus Trading ToolkitHi Traders! This tutorial will show you how to build your own strategy and link it to Protervus Trading Toolking (PTT) . First of all, let me remind everyone that this content should be considered educational material, and backtesting results are not a guarantee. My goal is not to provide ready-made strategies, signals, or infallible methods, but rather indicators and tools to help you focus on your own research and build a reliable trading plan based on discipline. So, without further ado let's start building our first strategy! For this tutorial we'll build a simple EMA Cross strategy and add the Chaining Snippet to link it to PTT. The first step is to create a new indicator in Pine Editor and add the initial requirements: //@version=5 indicator("EMA Cross (data chaining)", overlay = true) Let's now create the inputs where we will be editing EMAs' length: FastEmaLen = input.int(50, title = "Fast EMA Length") SlowEmaLen = input.int(200, title = "Fast EMA Length") At this point we can proceed by calculating the two EMAs: FastEma = ta.ema(close, FastEmaLen) SlowEma = ta.ema(close, SlowEmaLen) We are now ready to script our Entry conditions: BullishCross = ta.crossover(FastEma, SlowEma) BearishCross = ta.crossunder(FastEma, SlowEma) We also wish to see the two EMAs plotted on the chart, so we will add the following code: plot(FastEma, color = color.new(color.green, 0)) plot(SlowEma, color = color.new(color.red, 0)) At this point, our code should look like this: Great, we are now ready to add PTT Snippet by pasting all the code at the end of the one we just wrote. Let's head to the CONDITIONS INPUTS section and replace the placeholder text for EntryCondition_1 , giving it a proper name: EntryCondition_1 = input.bool(true, 'Ema Cross', group = 'Entry Conditions') We can also add null to the unused inputs to clear the settings panel: ADDING ENTRY CONDITIONS We'll now be adding our Long and Short Entry conditions in the ENTRY \ FILTER CONDITIONS section. In LongEntryCondition_1 we should replace null with BullishCross : LongEntryCondition_1 = BullishCross Same for ShortEntryCondition_1 down below: ShortEntryCondition_1 = BearishCross Guess what? We're done! We just added our Entry conditions: We can now compile the script and add our indicator to the chart, along with PTT. Let's open PTT and select "EMA Cross (data chaining): Chained Data" in the Source Selection drop-down menu - the data will now be forwarded to PTT and we can start tweaking the settings to experiment with our new strategy: ADDING EXIT CONDITIONS Let's say we now also want to add an Exit condition for when the price goes above (or below) the fast EMA, signaling a trend reversal: we can do that in no time! Go back at the top of the code, and right after our EMA calculations, add: PriceAboveFastEma = ta.crossover(close, FastEma) PriceBelowFastEma = ta.crossunder(close, FastEma) Of course, we also need to add the newly created conditions in the snippet code. Let's find the section EXIT CONDITIONS and, just like our Entry conditions, we can replace the null placeholder with our actual conditions: LongExitCondition_1 = PriceBelowFastEma ... ShortExitCondition_1 = PriceAboveFastEma If we also want to use these conditions as Stops, we can add them to the STOP CONDITIONS section: Note: Exit Conditions will close the trade in profit, while Stop Conditions will close the trade in loss. Still, you should not worry about scripting it yourself: PTT will take care of analyzing the trade and separate Exits from Stops when the signal to close the position is received. ADDING FILTER CONDITIONS Besides using our indicator to open and close trades, we can also use it to filter the signal from another, chained indicator. To keep this tutorial simple, let's use the same EMA Cross script, so we can add it again to the chart and use the first one as Signal, and the second as Filter. Let's add our Filter conditions in the script: FastAboveSlow = FastEma > SlowEma SlowAboveFast = FastEma < SlowEma Just like we did in the previous steps, we should now add the option in the settings panel and the Filter conditions in the snippet code: CHAINING INDICATORS We currently have one EMA Cross indicator working as Signal in the chain, linked to PTT on the chart: Let's copy-and-paste the EMA Cross indicator (or add it again) to have two of them. The first one on the chain will act as Filter, so in the settings let's give the two EMAs a longer length (e.g. 250 and 300) in order to verify the trend and discard signals received when it's not favorable. Remember to set output mode as Filter, and tick the Filter box. The second one will be our Signal: we can choose the length of the two EMAs we will use as Entry \ Exit when a cross happens (e.g. 100 and 200), enabling our Entry and Exit conditions by ticking the boxes. This time, we will tick the "Receive Data" box, and select the Chained source of the Filter: If before linking the Filter you already had the Signal linked to PTT, you will notice it automatically recalculates the data - and if our Filter works as intended, the improvements will be visible ;) EXTRAS If your indicator doesn't plot anything on the chart, we must enable a "Dummy Plot" in order to prevent issues, since we are sending chained data as an invisible plot and it cannot be the only plot in the code. Just un-comment the line plot(close < 0 ? close : na, title='Dummy Plot') to avoid this problem: ADDING SIGNALS MARKERS PTT will show all labels and markers for trades, but if you wish to have them on the indicator or just to debug your signals, you can enable and customize the last lines in the snippet: CHAINING SCHEMA |-- Filters (optional, any number of filters - linked one to another) |---- Signal (mandatory, only one indicator must be set to Signal - in case of multiple Filters, Signal must be linked to the last Filter in the chain) |------ Protervus Trading Toolkit (linked to Signal) |-------- PTT Plugins (Strategy Wrapper, Trade Progression, etc - linked to PTT) NOTES - When you chain an indicator, its source remains "locked" even if you un-tick the Receive Data box. If you wish to use that source on another indicator you should un-link it first (just select "Close" as source to free the indicator's chain output). - If you remove indicators in the chain, all other indicators linked AFTER it will be deleted - to prevent this, you should un-link chained indicators before removing them. - Pine Script is limited to one source input per indicator, so you cannot chain indicators that let you choose another source to calculate data: for example, if you have an RSI indicator with a source selection ( input.source ) you must remove that input and only use the one for chaining. You can read more on PineScript Reference page.
FTX:BTCUSDEducation
by Protervus
2
What are True and False Break Outs ?False Break outs impose considerable loss to traders. How to recognize a false break out? To recognize a false break out we should first learn what is a true break out? In fact,simply, Every break out which is not a true one is a false break out. BTC in it's recent movements shows two beautiful example of false break outs. As shown on the chart, we have a dynamic resistance line with three clear rejections and two false break outs. It means before 1st break out which was 4th rejection BTC had a chance to break out the resistance but it never succeeded. Why? A true break out has three important conditions : 1. first of all, Break out should be done by a strong high volume bullish candle and at least 50 % of body of such candle should be placed above the valid resistance. 2. A pull back to broken resistance and rotation is necessary to be sure about true break out. Please note sometime we may not see a complete pull back ( if there is a support before broken resistance) but who can accept the risk of false break out? 3. Continuation of movement in direction of break out. As we can see, BTC in it's 4th and 5th attempts to break the line was unsuccessful even to fulfill the first condition. Also shown on the chart is what could have been a true break out. Although simple in concept, false break outs are headaches for some traders. What makes traders to fall in the trap of false break outs is not because of complexity of the concept ( As it is very simple ). It is about controlling emotions and psychology. Good luck everybody.
COINBASE:BTCUSDEducation
by SaeedSajedi
6
What is Spread in Trading | Trading Basics 📚 Hey traders, It turned out that many newbie traders completely neglect spreads in their trading. In this post, we will discuss what is the market spread and how it can occasionally spoil a seemingly good trade. 💱No matter what financial instrument we trade, in order to buy the asset we need to have a counterpart that is willing to sell it to us and vice versa, if we want to sell the asset, we need to have someone to sell it to. The market provides a convenient exchange between buyers and sellers. The asset price is determined by a current supply and demand. However, even the most liquid markets have two prices: bid and ask. 🙋‍♂️Ask price represents the lowest price the market participants are willing to sell the asset to you, while 🙇‍♂️bid price shows the highest price the market participants are willing to buy the asset from you. Bid and ask price are almost never equal. The difference between them is called the spread. 📈The spread size depends on liquidity of the market. 📍Higher liquidity implies bigger trading volumes and greater number of market participants, making it easier for them to make an exchange. On such markets we see lower spreads. 📍From the other side, less liquid markets are categorized with low trading volumes, making it harder for the market participants to find a counterpart for the exchange. On such market, spreads are usually high. For example, current EURUSD price is 1.0249 / 1.0269. Bid price is 1.0249 - you open short position on that price. Ask price is 1.0269 - you open long position on that price. The spread is 2 pips. ❗️Spreads must always be considered in a calculation of a risk to reward ratio for the trade. For scalpers and day traders, higher than usual spread may spoil a seemingly good trade. Always check spreads before you open the trade. In 2020, for example, we saw unusually high spreads on Gold during UK/NY trading sessions. Spreads were so high that I did not manage to open a trade for a couple of days. Not considering spreads in such a situation would cost you a lot of money. Do you consider spread when you trade?🤓 ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
3
Stand Up Strong, Do It Again - The Power of Not Giving UpMost of us, we all go through periods of vulnerability, periods where we are filled with negativity and pressure. If none of your surroundings comprehend you, I am here rooting for you. The path to a better self is never going to be an easy route, we go through failure, periods of low energy, periods of depression. But... so what? Life still goes on. No one will be there patting on your shoulder carrying you up. You got to stand up strong alone, and continue paddling. Fail once, do it again. Fail twice, do it again. Fail thrice, do it again. UNTIL you succeed. The toughest and strongest human being are those who refuse to give up, who truly the process of getting beaten up again and again. The same goes into trading; "90% of Trader blow up 90% of their capital within 90 days" So how do you become a winner in such a competitive place? Is to simply survive. Survive long enough so you get to build a stream of trading lessons from your mistakes. You then constantly review your mistakes and fix them like a specialist. The longer you stay in the market, the higher the chance you are going to become the top 10%.
KRAKEN:BTCUSDEducation
by TraderNeoh
3
Measure Reward-to-Risk Ratio (RRR) key Takeaways 1. The risk/reward ratio is used by traders and investors to manage their capital and risk of loss. 2. The ratio helps assess the expected return and risk of a given trade. 3. An appropriate risk reward ratio tends to be anything greater than 1:3. How to Measure Reward-to-Risk (RRR) ? 1. Evaluate the potential price levels for your stop loss (SL) and profit target (PT) 2. Measure the distance between your entry and your stop loss (SL). This is your “Potential Risk“. 3. Measure the distance between your entry and your profit target (PT). This is your “Potential Reward“. 4. Divide the two: Potential Reward / Potential Risk. RRR Calculation 1. Potential Risk = 66.24 - 63.73 = 2.51 2. Potential Reward = 63.73 - 54.97 = 8.76 3. RRR = Potential Reward / Potential Risk = 8.76/2.51 = 3.49
BINANCE:LTCUSD.PEducation
by yaser_rahmati
Motivation Is Not A Superpower - The Power of Not Giving UpI think most people overweight the word "motivation" Motivation only gives you the sudden thrust to initiate, continue or terminate a certain behaviour at a given time, it is not lasting. Without a good attitude, mental and physical toughness, effort, passion, and focus, motivation is nothing but a booster. You do not need motivation to succeed as it only gets you started. The power of not giving up is what determine our achievement. The same goes into trading, I've coached/ talked to more than 30 Traders in the past, most of them have extreme level of interest in the beginning. But as time goes by, I saw almost every of them walk away from this business, not because they do not know trading will probably bring them financial freedom, but because their fear of failure has overweighted their motivation to succeed. Probably because they have blown up multiple accounts, instead of digging into the root of cause and finding solutions, they give up after several failure. Trading is just like any business, it requires time, energy, effort, tear, money, ongoing passion, high level of discipline and consistency to outperform the 90 - 95% of losing Traders. The more you are able to become a problem-solvers, the higher the chance you may succeed. What I always suggest to inconsistent Traders, is to become a specialist. Specialize in certain markets, certain timeframe, certain currency pairs, don't try to have your eyes all over the place. If you're constantly shifting your focus, you will never get anything done. You only need to master in one specific asset/ pair to become consistently profitable. Think about it and let me know your thoughts in the comments below.
OANDA:XAUUSDEducation
by TraderNeoh
1
Quantum cryptography and Post-Quantum cryptographyHello guys today i want to explain Quantum cryptography and Post-quantum cryptography and how they can affect blockchain security and whats the solution. lets start with a brief explanation of cryptography: Cryptography is the process of encrypting data, or converting plain text into scrambled text so that only someone who has the right “key” can read it. NOW what is quantum cryptography? Quantum cryptography simply uses the principles of quantum mechanics to encrypt data and transmit it in a way that cannot be hacked. and what is Post-Quantum cryptography? Post-quantum cryptography refers to cryptographic algorithms (usually public-key algorithms) that are thought to be secure against an attack by a quantum computer. These complex mathematical equations take traditional computers months or even years to break. However, quantum computers running Shor’s algorithm will be able to break math-based systems in moments. How Quantum Cryptography Works? Quantum cryptography, or quantum key distribution (QKD), uses a series of photons (light particles) to transmit data from one location to another over a fiber optic cable. By comparing measurements of the properties of a fraction of these photons, the two endpoints can determine what the key is and if it is safe to use. The sender transmits photons through a filter (or polarizer) which randomly gives them one of four possible polarizations and bit designations: Vertical (One bit), Horizontal (Zero bit), 45 degree right (One bit), or 45 degree left (Zero bit). The photons travel to a receiver, which uses two beam splitters (horizontal/vertical and diagonal) to “read” the polarization of each photon. The receiver does not know which beam splitter to use for each photon and has to guess which one to use. Once the stream of photons has been sent, the receiver tells the sender which beam splitter was used for each of the photons in the sequence they were sent, and the sender compares that information with the sequence of polarizers used to send the key. The photons that were read using the wrong beam splitter are discarded, and the resulting sequence of bits becomes the key. If the photon is read or copied in any way by an eavesdropper, the photon’s state will change. The change will be detected by the endpoints. In other words, this means you cannot read the photon and forward it on or make a copy of it without being detected. The Solution We Need Now for Tomorrow! The need for unbreakable encryption is staring us in the face. With the development of quantum computers looming on the horizon, the integrity of encrypted data is at risk now. Fortunately, quantum cryptography, through QKD, offers the solution we need to safeguard our information well into the future – all based on the complex principles of quantum mechanics. In January 2022 a team at Sussex University spin-out company Universal Quantum published research on transit attacks which calculated that it would require a quantum computer with a 1.9 billion qubit-capacity to break Bitcoin’s encryption in the required ten-minute window (this is the time taken for a Bitcoin to be mined). Even at 317 million qubits it would take an hour and 13 million qubits for a day. For context, IBM’s superconducting quantum computer currently has a 127-qubit processor. REFRENCES: www.investmentmonitor.ai www.quantumxc.com www.techtarget.com Hope you enjoy this article. please share me your opinion about Quantum computing in comments. can they break BITCOIN???!!!
Education
by TraderAmin-KZ
6
Becoming A Flexible TraderTo become a flexible Trader might sounds like an easy thing to do, but to become a consistently profitable Trader in the market takes lots of internal growth. In this video I'll be sharing some of my personal experiences and advice into becoming all-rounded 'good ' Trader. If you like the content make sure you click the like button and share it with anyone else who needs to watch this. Trade safe and take care. All the content I've posted are for educational purposes, please perform your own research and only take it as a reference.
OANDA:XAUUSDEducation
by TraderNeoh
Never Try To Hide Your Mistakes By Making More MistakesOne of the common patterns amongst Traders that's really causing them to unable to achieve consistency, is the fact that they do not own up/ admit their mistakes. We're all humans, and we're bound to make errors every day, week, or month. There's nothing wrong with making mistakes, and certainly making mistakes don't make you look stupid. It is the way that you refuse to admit that you've made mistakes that makes you look stupid. Imagine today you've taken trades you're not supposed to take. During your self-reflection, you clearly knew you've over-traded, but you try to comfort yourself by putting the blame onto the markets, "the market condition was bad today, etc...". Look.. Now you've made two mistakes. 1. Over-traded 2. Not being honest to yourself that you over-traded Lying to yourself is one of the worst lies you can ever make. Overtime, It transforms and convinces you into accepting lies because it'd probably turned into a bad habit. It prevents you from growth, advance, and achieve. Some of you probably have experienced lying to others. Ask yourself honestly, how many lies do you have to make up afterwards JUST TO cover up the first lie? It's the same goes to yourself, your mind. The willingness to have complete transparency within your mind will boost your personal growth. Sometimes, if you're experiencing some horrible trading days or months, make it a habit of sharing your mistakes with someone else. Trust me, the more you're willing to own up your errors, the better you perform. Because now that you knew your problems, then you can always find solutions around it, if not, seek for help!
OANDA:XAUUSDEducation
by TraderNeoh
2
Self-Reflection Is The Key To GrowthHi Traders, in the previous mindset sharing I talked about the simple equation that has helped me to progress faster "Pain + Reflection = Process" But you could be thinking "How do i reflect?" OR "I do reflect a lot, but I don't see myself going anywhere." I believe it all comes down to the way you perform your self-reflection & self-reviewing process. If you're not digging into the root of problems, you'll never get rid of it. Let's assume today you've taken 5 trades. Now the market has closed, you're performing your daily reflection. First thing first, is to write down a list of what you think you've done right, and what you've done wrong. Maybe your entry was perfect, but you did not manage the trade well, whether you size in too big/ aggressively or you did not manage your exits well. Be very real to yourself when you're doing your self-reflection, do not try to hide things or blame things just because it makes you feel good. I've seen quite some numbers of Traders not admitting their own mistakes, trying to put the blame to the market or any external factors. Being true to yourself is the first step to changes, if you can't even be honest to yourself, there's no way you can improve. After you've written down the list, now question yourself: "Is there anything that could be improved?" OR "Is there anything that I could eliminate because they're impeding your overall performance?" Most of the times, Traders are not achieving consistency mainly because of the ONE mistake that they've been repeating, and it turned into a habit. After you've performed your self-reflection, make sure you write down your conclusion and make sure you do not repeat the same mistakes again tomorrow. One step at a time, repeat this process every day.
OANDA:XAUUSDEducation
by TraderNeoh
2
53 pip profit + Horizon wins yet again! + New Horizon tradeIf these ranges lasted forever, I wouldn't mind at all. I took 53 pips this morning long, this was something I posted 2 times about last night and this morning, so check those out for a more in depth look at the signals that lead to that move. It's really important in this market to be in before the move happens, you miss out on a lot of money, and your exposure almost triples when you chase the market. Remember that. Horizon took 76 pip profit today from last Friday. That's nearly 50 pips net, since the beginning of this range. It took a 60 pip loss after being up almost 80 pips on Thursday. It couldn't find a valid exit, which is annoying considering that this strategy could have produced over 140 pips in profit last week. Trust me I've played with trailing stops and static profit targets with this strategy and they just don't work nearly as well as just letting trades run and waiting for a strong exit signal. Trade number 3 was the worst loss Horizon has taken to date, I mentioned earlier that Horizon assesses stop losses on bar close and not in real time, so the strategy is exposed adversely to large break out candles like the one in the picture below. This is a risk that I'm willing to accept though because A. Horizon mitigates that risk using multiple confirmation protocols and B. the RR is 3-4 times the losses. This strategy is designed to take 30-50 pips on average, with occasional 100-200 pip trend. As things stand, Horizon's average loss is only about 20-30 pips. Plus Horizon's wining 6-7/10 at this point so it's all good! Plus I'm adding some logic this week that I'm hoping will boost performance even further. So far it's 2/3 and currently 30 pips up on it's 4th live trade. That said if I DID find a better alternative to this stop loss strategy, I would more than likely cut my max draw down in half. It's sitting at about 8-9 right now, which I would love to get down to about 5% using the same risk. Horizon's current exposure is 1.7% per trade because of the draw down rules that FTMO and other prop firms put in place. With my own capital, I could easily raise that to 2-3%, I don't really want to though (yes I do) Horizon , like I mentioned has pyramided a short trade which has been as high as 35 pips profit, so far, so this one's looking like a winner as well. Overall that's 150 pips taken between me and the machine in the last 4-5 days, so very happy, and I'm praying for even further success in the coming weeks. I'll link each post so you can audit my trades. I post these trades well before the moves actually happen.
Education
by NeoDaNomad
2
Pain + Reflection = ProgressHi Traders, welcome back to another mindset sharing video. Whenever I go through some obstacles or failures, I always go back to this simple equation by Ray Dalio, "Pain + Reflection = Progress" In life, the only way to not experience any failures is to avoid them, which could be very detrimental to your personal growth. To grow, one need to experience certain levels of pain. To transform, one need to have a high pain threshold and tolerance. For whatever you're going through right now, just remind yourself to not give up, and things will eventually come.
OANDA:XAUUSDEducation
by TraderNeoh
18
EXIT STRATEGIES: Money ManagementHey traders, Today I wanted to dive into exit strategies. A lot of you will already have a very clear understanding of what an exit strategy is and how you usually go about it. Most of you are probably automatically thinking of stop losses and take profits, which is fair enough. Today however, I wanted to dive into some more advanced techniques. I want to have a look at what you need to be thinking about prior to entering a trade, during the trade, and then finally when it's time to get out. Yes, we use stop losses. Yes, we use take profits. But I know from my experience personally, it's very rare that I actually get my full stop loss hit. I'm usually out of the position prior to those levels. This all falls under money management, which is by far the most important aspect of your trading ability that you need to understand. We are money managers as traders. When we are risk on, we have money live in the markets. It is our job to manage it accordingly. Win or lose, the success comes down to if we are managing position and risk correctly. Now, this blog is a little bit more directed to our day traders or people who are constantly having positions with the whole idea of set stop losses and take profits. For investors, it does differ a little bit and I'll touch on that now. When it comes to buying a stuck or an asset, it is very easy come up with a trade idea. You find the idea, you buy, simple. What makes it really difficult is actually finding the appropriate time to sell. That's what actually makes the good investors. Because equity, yes, it is still extra cash in your pocket, but you don't get that cash actually in your pocket until you have hit that sold button and realized your profits. My biggest outlay to anyone in any type of investing is have an exit plan prior to entry. Have a minimum requirement, have a maximum requirement, and what to do in those scenarios. I've seen it many many times before, especially with the recent cryptocurrency boom that people just get in expecting it to go up with no exit strategy, so they never exit because it's constantly moving up. Then, Unsurprisingly, the market pulls it back in and they lose all of their equity profit. They find themselves trying to close out of their position before it's a big loss. Always have an exit plan. Now lets dive back into more of the day trading market. When it comes down to exits of the market. Most people use stop loss orders or take profit orders. These are orders you can set on your brokerage platform, which essentially, when that asset reaches a certain price, the server will read that and automatically pull your position at your requested price. These are the most common ways to manage risk. It's a very beginner friendly. It's very easy to find an area where to put your stop loss, put your stop loss, put your take profit, walk away and let the trade unfold. However, today, let's get a little bit more advanced. There are a few questions you need to ask yourself prior to entering a position. Regardless of looking at the profit potential (which is the biggest pull). Start associating yourself with the risk you are taking in order to open this position. The first question I want you to ask yourself is, how much are you willing to risk on this trade? Risk is an important factor when investing right to determine your risk level. You need to understand what is not going to affect or hurt you, but still generate enough profits to make it worthwhile in your eyes. Finding that medium balance of what you can handle when you go and drawdowns is going to be highly beneficial to risk the right amount and not go emotionally insane every time you're in a position. Once you understand what dollar value you're willing to risk, then you just position size accordingly and have a stop loss on your chart and there you will know your maximum risk. That is what you are going to lose if all goes against you on this position. Once you have the basic understanding of how much you're risking per position, you want to try and avoid hitting that stop loss at all costs. So while you're managing your position (this is something I like to do personally) if everything is going against you, it's usually a sign that it's going to continue that way. Yes, statistically, there's going to be sometimes it may be reverses. That's the beauty in backtesting your strategy so you have an in-depth understanding on what it is capable of. I look to start scaling out of my position, which means selling off my position size as we move towards the stop loss. As I mentioned above, it's very rare that I actually hit my Max loss stop loss statistically. Looking back at my journal, I've actually scaled more than 75% of my position out prior to hitting a full stop loss if not all of the position. This is giving me an incredible advantage when it comes down to statistics, because while I can still hit a full take profit and a full position in profits. But I am not hitting a full loss, so my risk to reward has actually rapidly increased, even though it's still very similar when I'm entering the trade. The second question I want you to ask yourself is, where do you want to get out? Where is your take profit? Where is your stop loss? But also look within those areas where realistically are key indications on where this price is going to move. Do you have to get through four or five support levels to reach your take profit? Should you start looking at scaling out some of the position in the profits around those levels? The more you have to go through, the harder it is going to be to actually achieve the profit. Have an exit plan. Where are the levels you want out? And finally, and this is probably the biggest one, how long you are planning on being in the trade? If you're trading down on the five minute chart, do you really want to hold this trade for two days? If it takes that long, do you only want to be trading during this market hours? Where do you want to cut this trade? This is really important because most people, especially the set and forget traders, they don't have a time limit on their trades. They allow it to just run over multiple sessions. But The thing is, the longer it runs, the less than analysis becomes true. Have a look at the time frame you're trading. If you're investing, look at the yearly outlook. How long do you really want to be holding this stock before it actually does something? I know we're not options traders. Some of you, maybe, but it is a good idea to have kind of a time scheme that you don't want to be holding any longer than. I personally look to start scaling out of the position, taking risk off the longer the trade takes, especially if I'm trying to trade on volatility. These are three questions to ask yourself and a little bit of tips and tricks when it comes down to scaling an managing risk on a more advanced level. Remember, as traders and investors, we are risk managers. We are money management specialists. Our job is to not lose money. When we stop losing money, profits will come in. Focus on your risk, focus on what you can afford to lose, and then focus on your positions and try and stop yourself from ever hitting that Max stop loss that you give yourself. I wish you all success! -Jordon Mellor
Education
by the5erstrading
8
This is why patient traders are profitable and consistent"Cut the losers only, let the winners run". One of the quotes that are pretty popular among beginning and experienced traders. Sounds pretty simple, but let's take a look at it in practice. On the left-hand side, we have illustrated the recent trading history of a patient trader, and on the right side, that of an impatient one. Taking a close look at the recent trades of the patient trader, we can observe that he has a solid trading plan, rock-solid psychology and discipline, and a very good risk management plan. Out of 5 trades, he has only won 3 of them. But due to the fact that he risks only 1% of his trading capital per trade and sets realistically-positive Take Profit levels that vary depending on the market, he makes really appetising returns. On the contrary, the impatient trader has everything to fail. If we take a look at the recent trade history, we can notice that this trader neither has a well-defined risk management strategy nor any discipline or patience (well, the name says it all). There is a common misconception in the world of trading that states: "the higher your win rate is, the more profitable you will be in the markets". This statement is absurd and totally incorrect. No matter how high your win rate is, if you are not risk tolerant and you put all of your eggs in the same basket, you will be far away from reaching the doors of consistency and profitability. To add, patience and a strong psychology are heavily linked and cannot exist without each other. Hence, once you teach your mental state the importance of the ability of sitting on your hands and waiting, your trading journey will head towards the correct direction. Enjoy the read! Investroy.
BITSTAMP:BTCUSDEducation
by Investroy
29
Types of Orders In Trading | Trading Basics 🤝💱 Hey traders, In this post, we will discuss types of orders that we use in Forex trading. ➖ Market order. Trading position is opened at a current price level. Buying the asset, you will open a trading position at a current ask price. Selling the asset, you will open a trading position at a current bid price. Even though market order is the most preferable type of orders among newbie traders, I highly recommend not to use that, especially if you are a day trader. ❗️The main problem is that prices constantly fluctuate and there is a certain delay between order execution and position opening. For these reasons, the position will be opened from a random price level within the range where the market is currently staying, affecting a risk to reward ratio. ➖ Limit order. Trading position will be opened only from a desired price level. With buy limit, you will buy the asset from a certain level. (current price remains above the order) With buy stop order, you will buy the asset from a certain level. (current price remains below the order) With sell limit, you will sell the asset from a certain level. (current price remains below the order) With sell stop, you will sell the asset from a certain level. (current price remains above the order) That is the order type that I prefer. Limit order helps you to trade from a desirable level, automatically executing the order once it is reached, letting you preliminary set it. ❗️However, remember that there is one big disadvantage of that order type: there is no guarantee that the price will reach the desired price level to activate a trading position. For that reason, occasionally you will miss the trades. Try these order types on a demo account to learn how they work in practice. Which order type do you prefer? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
9
Does Trading More = More Profits?Seems like most of the Traders think that by trading more = more profits. The answer to this can be two-dimensional. Yes, theoretically the more you trade means you could make more money. If we simply do the math, day trader should be making more than swing trader/ long-term investor right? But why the failure rate of short-term Trader is much higher than swing Trader & long-term value investors? The key element here is emotions. Let me share some examples here: • Trader A is a swing Trader. On average he takes about maximum 5-10 positions per month • Trader B is a day Trader. On average he takes about 5-10 positions per day In this case, let's put performance asides, but who do you think will have less emotions involved in their decision making process? Definitely Trader A. When you're taking less trades, means each time before you get involved in any position, you spend more time on your planning process, you are aiming for quality rather than quantity. When you have more involvement in the market, you have a higher probability of over-trading, over-thinking, and over-reacting. I'm not here trying to blast daytrading isn't profitable, it is in fact profitable. But most retail Traders take large numbers of unnecessary trades which elevate their risks, causing them not able to achieve profitability over the long-run. When you lose a trade, you have a tendency of revenge trading. The more trades you lose, your irrational thoughts creates hope and ego, believing that you cannot be wrong. The devil behind all these bad trading habits is purely illusion, the illusion of "This is going to be the best trade" OR "What if i don't take this and it turns out to be a winning trade?" CEOs', Hedge Fund Manager, etc... They are all paid generously to make a small quantity of quality decisions, not to take large numbers of poor decisions. The same goes to trading, market will reward Traders who understand Risk Control and Trade Management. The lesson here is to never rely on luck & hope in your trading. Instead, put more focus on your discipline and planning process. The more you are able to disregard the market noises, the better you perform.
OANDA:XAUUSDEducation
by TraderNeoh
2