Bearish Outlook on USDT Dominance (USDT.D)Hello Everyone! 👋
I hope you’re all doing well. I’ve shared my thoughts on the USDT.D price in the chart below. I believe this analysis could be useful for your trading decisions.
📈 Rationale:
Market Dynamics:
A decrease in USDT dominance typically reflects a shift in investor confidence toward altcoins, leading to increased liquidity and buying pressure.
Technical Analysis:
Recent price action indicates weakening in USDT.D. Indicators such as support a bearish outlook.
Impending Breakout:
A break below 4.28% to 4.31% could trigger swift market reactions, providing ample trading opportunities.
CRYPTOCAP:USDT.D
Best Regards
Riskmangement
DreamAnalysis | Understanding Liquidity Pools in DeFi EP03✨ Welcome to the Third Lesson of DeFi Education!
🔄 In the previous session, we discussed liquidity pools and understood that they serve as a source of passive income. Today, I want to talk about how profits and losses occur in liquidity pools.
👀 Common Scenarios in Liquidity Pools
The most common scenario is when the prices of the two tokens in the pool remain stable, allowing users to earn income solely through transaction fees.
🔼Price Increase Scenario
The second scenario occurs when both tokens increase in value equally. For example, in the ETH-BTC pool, if Bitcoin and Ethereum both rise by 20%, the user not only earns fees but also benefits from the increased value of their tokens.
📉 Price Decrease Scenario
In the next scenario, both tokens may decline in price equally. Here, the user still earns transaction fees, but the overall value of their Bitcoin and Ethereum holdings decreases.
📊 Asymmetrical Price Movement
If one token significantly outperforms the other, the number of tokens held by the user decreases, and they miss out on the potential profits from that token's increase. Conversely, if one token experiences a substantial drop in value, the user's assets become more concentrated in that depreciating token, leading to potential losses.
🧠 Understanding Optimal Strategies
These various scenarios can arise for users when creating liquidity pools. As you progress in this education series, you will gradually learn how to identify the optimal conditions to maximize your profits.
⏰Upcoming Topics
In the next session, I will cover different types of liquidity pools, such as liquidity pool staking, to gradually guide you into the world of DeFi with real money.
❌Disclaimer
The information provided in this lesson is for educational purposes only and should not be considered financial advice. Liquidity pools and DeFi investments involve significant risks, including potential loss of capital. Please conduct thorough research and consult with a financial advisor before participating in any DeFi platforms. The channel and its creators are not responsible for any financial losses incurred.
Analysis of USD CHF Daily timeframe. Big upward move expected.
USD CHF was for the last couple of months tracking down in its price, inside of a falling wedge. But on Wednesday and yesterday price appears to have exited this giant wedge.
The Relative Strength Index has this pair heavily oversold, so much so that a bigger move in the opposite positive direction by the USD is surely on the cards very soon, as some of the shine and value of USD enters the minds of traders and it becomes bought-up instead of bought-down.
* easy_explosive_trading analysis only. We don't intend or expect to get every analysis correct, however we follow the path of least destruction and resistance.
DreamAnalysis | CAKEUSDT Start Uptrend?👋 Welcome back to your favorite channel, D reamAnalysis! Today, we're going to analyze one of the key utility coins in the crypto space, PancakeSwap (CAKE), and explore its future potential.
🌐 What is PancakeSwap (CAKE)? PancakeSwap is a decentralized exchange (DEX) built on Binance Smart Chain (BSC). It allows users to swap BEP-20 tokens using the Automated Market Maker (AMM) model. Users can stake tokens to provide liquidity and earn CAKE tokens as rewards.
📊 Weekly Time Frame Analysis:
After being rejected at the top of the weekly box resistance at 4.789, CAKE moved towards the bottom, but this time, it didn’t reach the previous l ow. This indicates strong buyer momentum and a lack of sellers in the market.
Currently, CAKE is stuck below the resistance at 2.077. If it breaks this resistance with strong volume and RSI confirmation, we can consider a buy position for spot and long-term holding, with a stop loss placed at the bottom of the box around 1.089.
💡 Recommendation: Before investing, I suggest researching the project further to understand if you can maximize your profit. The main trigger for the uptrend will be breaking 4.789, which will mark the start of a solid upward movement.
📅 Daily Time Frame Analysis:
For the third time, CAKE is testing the resistance at 2.055. This time, there’s a higher chance of breaking through because we’ve registered higher lows since 1.41, indicating a stronger upward trend.
Additionally, during this move towards resistance, volume has increased, and the RSI is rising above 70, which is another confirmation that we may break through the resistance. 🔗 Chart Analysis
⏳ 4-Hour Time Frame Analysis :
In this time frame, CAKE has moved up with the help of a parabolic trend, creating higher highs and higher lows. However, the size and number of candles are decreasing, showing signs of trend weakness. But remember, trend weakness alone doesn’t confirm a reversal.
📈 Long Position:
Our entry trigger is clearly set, and upon breaking 2.084, we can open a long position and aim for higher targets.
📉 Short Position:
This largely depends on Bitcoin’s movement. For a short position, we need a trend reversal or a break below the parabolic line and the support at 2.006.
💬 This wraps up today’s analysis. If you found this helpful, feel free to share it with your friends and leave a comment with your thoughts or any other pairs or coins you’d like us to analyze.
📌 These analyses are merely our ideas based on a chart that doesn’t follow strict rules. Technical analysis is an art, and these insights are not financial advice.
USD SEK is flowing nicely to the Upside. BUY.
USD SEK looks to be getting into it's new trend upwards after falling out a falling wedge earlier. It's gotta stop falling sooner or later.
But be aware it also has price action up and down inside a monthly bullish pennant. How bullish right now is what needs to be known.
Lesson 5: Patience – The Key to Long-Term Trading SuccessWelcome to Lesson 5 of the Hercules Trading Psychology Course—Patience: The Key to Long-Term Trading Success. Building upon the foundational traits of Initiative and Discipline covered in previous lessons, today we delve into the essential virtue of Patience. Whether you’re trading stocks, commodities, cryptocurrencies, or any other financial instruments, patience is a crucial element that can significantly influence your trading outcomes.
Why is Patience Essential in Trading?
Patience is more than just waiting; it’s about making informed decisions and allowing your strategies the necessary time to unfold. In the fast-paced world of trading, it’s easy to feel the urge to act immediately, but this impulsiveness can often lead to mistakes and missed opportunities.
Self-Inflicted vs. External Impatience
A lot of our impatience is self-inflicted, stemming from our own desires for quick profits and immediate gratification. However, some impatience arises from external factors beyond our control, such as sudden market fluctuations or unforeseen economic events. Understanding the sources of impatience is the first step toward managing it effectively.
Avoiding Financial Scams
Impatience can make traders vulnerable to financial scams that promise quick returns. Scammers often prey on individuals who are desperate and impatient, offering schemes that sound too good to be true but ultimately lead to significant losses. Recognizing these scams and maintaining patience can protect you from falling victim to deceitful practices.
The Long Game vs. Rushing
Playing the long game in trading is far more beneficial than rushing into quick trades. Patience allows you to wait for optimal trading opportunities, align your strategies with market conditions, and build a sustainable trading career. Without patience, even the best strategies can falter under the pressure of immediate results.
Realistic Trading Plans
For those who aren’t starting with substantial capital, patience is key to building a realistic plan for making a living through trading. Setting achievable goals, managing expectations, and avoiding the allure of “get-rich-quick” schemes are essential for long-term success and financial stability.
Key Concepts in Trading
Successful trading isn’t just about technical analysis or spotting trends; it’s equally about mastering the psychological aspects of trading. Two critical components are money management and trading psychology.
Money Management
Effective money management involves controlling your risk, setting appropriate trade sizes, and ensuring that no single trade can significantly impact your overall portfolio. It’s about protecting your capital and making informed decisions that align with your financial goals.
Trading Psychology
Understanding the psychological side of trading—such as initiative and discipline—is where the real magic happens. Many traders struggle with maintaining initiative, which can hinder their trading performance. Additionally, discipline helps traders stick to their strategies and avoid impulsive decisions based on emotions.
The Marshmallow Test and Trading Patience
The Marshmallow Test, conducted in the 1960s and 1970s at Stanford University, examined how patient children could be. Participants were given the choice between eating a marshmallow immediately or waiting for a short period to receive a second marshmallow. The results revealed that those who exercised patience tended to have better life outcomes, including higher academic achievement and better emotional control.
Fast forward to today, and our culture’s emphasis on instant gratification can make it challenging to cultivate patience, especially in trading. The markets don’t cater to our need for immediate satisfaction, and many trading promotions set unrealistic expectations for quick wins. Patience helps traders resist these temptations and focus on long-term success.
Forex Education and Leverage
While this lesson focuses on all financial markets, it’s worth noting that trading education often emphasizes the use of leverage—a tool that can amplify both profits and losses. Leverage is enticing because it allows traders to control larger positions with a smaller amount of capital. However, without proper understanding and disciplined risk management, leverage can lead to significant losses.
Many educational programs and trading platforms showcase flashy tools and promising high returns, which can mislead inexperienced traders into thinking that success is easy. True mastery of trading involves understanding the nuanced nature of market movements and the importance of disciplined strategies over flashy indicators.
The Realities of Trading
Many individuals enter trading with the misconception that it’s a quick path to financial freedom or a way to eliminate debt. However, the reality is that patience is crucial. Beginners may experience early successes that lead to overconfidence and excessive risk-taking, resulting in substantial losses that shake their confidence.
In their rush to recover losses, some traders fall for scams that promise miraculous returns but deliver nothing. This cycle of chasing losses can lead to a pattern of deceit and continual loss, highlighting the importance of patience and disciplined trading.
How Scammers Exploit Trading Desperation
When traders are desperate and lack knowledge, they become easy targets for scammers. These fraudsters exploit the trader’s impatience and desire for quick profits by offering schemes that seem promising but are fundamentally flawed. One such scam is the dual line scam, which has roots in sports betting but has infiltrated trading markets as well.
Scammers make outrageous claims about turning small investments into massive returns, enticing traders with the allure of easy money. They often charge hefty fees for these bogus opportunities, leaving traders financially devastated while the scammers reap the rewards.
The Price of Deceitful Trading
Consider the example of a trader named Marco, who manipulates the system to profit deceitfully. Marco convinces multiple individuals to bet on opposite outcomes, ensuring that he profits regardless of the market’s direction. Such tactics not only lead to significant losses for unsuspecting traders but also erode trust within the trading community.
Why People Fall for Get-Rich-Quick Schemes
Individuals like David, Holly, and Sergio are drawn to charismatic figures like Marco because they believe in the promise of effortless success. Despite experiencing losses, the initial taste of profit keeps them hooked, reinforcing unrealistic expectations. This highlights a fundamental flaw in chasing quick profits without understanding the underlying complexities of trading.
Why Patience is Key to Achieving Success
True trading success requires embracing the long game and committing to continuous self-improvement. Quick money may seem appealing, but it often leads to traps that undermine your trading career. Patience allows you to set realistic goals, persevere through challenges, and build a solid foundation for long-term profitability.
Most traders struggle because they don’t maintain their goals long enough, leading to high failure rates despite significant effort. Perseverance and patience are essential to navigating the ups and downs of trading and achieving lasting success.
How Can You Succeed in Trading?
Success in trading doesn’t necessarily require starting with a large capital. While a substantial investment can provide more opportunities, there are pathways for those with limited funds:
Trading on Behalf of Others: Demonstrating consistent wins through demo trading can allow you to manage funds for others, building your reputation and capital over time.
Attracting Investors: Wealthy individuals often seek skilled traders to help them earn more than traditional bank interest rates. Showcasing your trading abilities can open doors to lucrative opportunities.
Proprietary Trading Firms: These firms provide the capital you need to trade, but they require proven results and may involve upfront costs for training and desk fees.
Key Strategies for Successful Trading
To excel in trading, it’s essential to implement effective strategies:
Find a Reliable Trading System:
Look for systems with a solid track record, ideally with results spanning at least a year.
Test your system on a demo account or with real money, starting with a manageable investment.
Document Your Results:
Market your documented trading results online to attract opportunities.
Consistent documentation helps in building credibility and attracting potential investors.
Engage with Trading Communities:
Participate in forums, webinars, and trading groups to share experiences and gain insights.
Networking with other traders can provide support and new strategies.
Continuous Learning:
Stay updated with market trends, new trading tools, and advanced strategies.
Invest in your education to refine your skills and adapt to changing market conditions.
Why Play the Long Game in Trading?
Patience and a long-term perspective are crucial for overcoming obstacles and achieving trading goals. Trading is a journey filled with challenges, and maintaining a realistic timeline helps you stay proactive and committed.
By embracing the long game, you recognize that success doesn’t happen overnight. Instead, it results from consistent effort, disciplined strategies, and the ability to navigate through both profitable and challenging times. Subscribing to a disciplined and patient approach ensures sustainable success and minimizes the risks associated with impulsive trading decisions.
Conclusion: Embrace Patience to Transform Your Trading Journey
Patience is more than just waiting; it’s about making informed decisions and allowing your strategies the necessary time to unfold. By embracing patience, you empower yourself to navigate the complexities of all financial markets with confidence and determination.
In Lesson 5, we’ve explored why patience is essential, how impatience can lead to financial scams, and the importance of playing the long game in trading. These elements are vital for building a strong foundation and achieving consistent profitability across all financial markets, whether you’re a swing trader or a day trader.
Action Steps:
Reflect on Your Patience:
Assess how patient you are in your current trading approach. Identify areas where impatience may be affecting your decisions and commit to cultivating greater patience.
Develop a Comprehensive Trading Plan:
Create a detailed trading plan that outlines your strategies, risk management techniques, and criteria for entering and exiting trades. Ensure that this plan emphasizes patience and long-term success.
Implement Robust Risk Management:
Protect your capital by setting appropriate stop-loss orders, limiting trade sizes, and diversifying your portfolio across different financial instruments.
Maintain a Trading Journal:
Document every trade to gain insights into your trading behavior and identify patterns that need improvement. Reflect on your trades to reinforce patience and discipline.
Practice Emotional Control Techniques:
Incorporate mindfulness practices, meditation, or journaling into your daily routine to manage stress and maintain emotional equilibrium.
Engage with the Trading Community:
Join forums, attend webinars, or participate in trading groups to share experiences and gain support from fellow patient traders.
Trust in Your System:
Have confidence in your trading system. Understand that success takes time and that patience is a critical component of achieving long-term profitability.
By implementing these strategies and focusing on unique, relevant keywords for each lesson, you can effectively optimize your Hercules Trading Psychology Course for search engines while providing valuable and engaging content to your learners. This balanced approach ensures that your course ranks well without falling into the pitfalls of keyword cannibalization, ultimately attracting a broader and more targeted audience.
Ready to take the next step?
Continue your journey by enrolling in Lesson 6: Emotional Control in Trading, where you’ll learn techniques to manage your emotions, build emotional resilience, and maintain a balanced mindset, ensuring consistent trading success across all financial markets.
Unlock Your Full Potential with our Trading Psychology CourseSuccess in trading goes far beyond technical analysis and market knowledge. True mastery in the financial markets requires a deep understanding of the psychological traits that drive consistent performance and resilience. To help traders of all levels strengthen their mental game, I’m excited to announce the Hercules Trading Psychology Course – a comprehensive, 13-lesson journey into the mind of a successful trader.
What You Can Expect:
For this course I am going to provide multiple lessons, each delving into key psychological principles that separate the top traders from the rest. Whether you're a beginner looking to establish a strong foundation or an experienced trader seeking to refine your mental approach, this course will provide you with essential tools to:
Master Initiative, Discipline, and Patience – the 3 core traits every successful trader needs.
Build emotional resilience to handle losing streaks, market volatility, and avoid costly psychological traps like FOMO.
Develop a structured mindset that supports consistent profitability across any market or timeframe.
Why is Psychology So Important in Trading?
The mental aspect of trading often gets overlooked, but it’s the difference between making rational decisions and being driven by emotions like fear, greed, or desperation. This course will help you strengthen your trading mindset and equip you with practical strategies to stay disciplined, focused, and confident in your decisions – even when the markets are unpredictable.
Course Structure :
Some of the covering topics are:
The 3 Essential Traits Every Trader Must Master
The Power of Initiative in Trading
Discipline – The Pillar of Consistent Profitability
Handling Losing Streaks with Emotional Control
Overcoming Desperation in Trading
How to Beat FOMO and much more.
Each lesson is designed to be easy to understand and filled with actionable insights you can start applying immediately to improve your trading performance.
What’s Next?
Stay tuned for Lesson 1 today, where we’ll dive into the 3 essential traits that form the foundation of successful trading: Initiative, Discipline, and Patience. By mastering these traits, you’ll build the psychological resilience needed to navigate the ups and downs of the financial markets.
Make sure to follow me to catch every lesson as it’s released. I’m looking forward to sharing this journey with you and helping you take your trading to the next level!
EUR CHF Momentum to the upside starting now!
This pair should keep Wednesday trading volatile at least in the currency markets.
EUR looks to be making a bigger move upwards and that could be starting today.
* For education and illustration purposes. Trading is risky.
* Advice-Consider smaller lot size. It can make you bigger money in a trade because it can keep you in a trade for much longer. Longer duration of trade is often where the bigger money is made.
AUSSIE will be the last to move on interest rates. Buy AUD CHF
Do you ever wish you could make that BIG move in a trade, over maybe a couple of months but for big-bucks.
Timing is everything for these big moves.
They don't make it easy for us retail traders to capitalise on these big moves.
AUD CHF is a very high time frame double bottom right now.
Recommended to scale into with tiny lot size, so you can watch it, and then master how to trade these huge double-bottom systems for the big money in the markets.
AUD is returning to the strength it had through 2023. This is a way to get in at the bottom.
* Trading is risky. Not to be taken as investment advice. For education and illustration purposes.
How To Reduce Your Risk Before Even Taking The TradeIn an interview Warren Buffet was asked about his investment approach, where he responded by explaining a mental model that he and his business partner Charlie Munger would use when selecting companies to invest in, called the Circle of Competence.
When asked about the circle of competence Warren Buffet would often use a baseball analogy to explain it. Where an average baseball player can appear exceptional by simply waiting for the right pitch.
In other words in most cases Warren and Charlie would find companies where they have an understanding and experience surrounding the industry which allows them to make an investment decision with a fair amount of competence.
By making sure they stay well within their circle of competence they're able to reduce the risk significantly by simply understanding what they're investing in.
Although this principle is used quite extensively by Warren and Charlie, it can also be used by you.
By simply reducing the amount of instruments you're watching and begin studying the ones you already understand, you automatically give yourself a unique edge while at the same time reduce your risk before you even take the trade.
So, as you move into the next and final quarter of the year, be sure to have a look at your watchlist and start refining it to a point where all you're looking at are instruments you understand and are well experienced in.
By doing this you'll be able to remain focused and stay in the zone for a lot longer, while all the more reduce your risk long before you even take the trade.
Very High Time-frame Analysis, AUD USD
The Aussie Dollar has been bouncing back lately against many of the major currency's.
Here, we took a look at the AUD USD, 3 Month Chart.
As I recently suspected, it looks good to breakout & upwards soon, out of a consolidation it's been in since July 2022. The latest 3 month candle looks like it might drive it out of this range, when exactly I have no idea, but soon is the feeling.
Since Mid-2024 Coinbase SP has been sucked down with all Crypto!
Coinbase is a well established setup and professional company in the Crypto world, a new-base may be forming on its chart and new, fresh buying emerging right now.
This next 15 minute shows the bottom of the Coinbase chart structure.
See next chart below
OX: ZRXUSD. Buying Demand Is Back & Now Above It's 50EMA.
Cryptocurrency seemed to love FOMC a couple of days ago, unlike the Gold-price that sent a nasty sell-signal to Long-holders, not even 1 hour after an interest rate reduction was announced. But that's Gold-trading where your screen can go from red to green at the blink of an eye and vice-versa before you get a chance to rub your eye-brow.
OX is ZRXUSD and its about to make a bullish cross on the Daily timeframe and it's really turned around as of late. I give it a Buy-signal.
If you're looking for something a bit more long term, consider OX maybe, 370% under it's 2024 March high. Unlike the Gold price, where you generally get zero % under yearly highs.
DreamAnalysis | OPUSDT Possibility of Breakout and First Bullish📚 Welcome to Your Usual Channel, DreamAnalysis!
✨ Today, we’ll be taking a look at one of Ethereum’s layer-2 projects, Optimism (OP), and see when we might consider buying during the bull run.
🛠️ About the Optimism (OP) Project :
Optimism is a Layer 2 solution for the Ethereum network, designed to improve scalability and reduce transaction costs using Optimistic Rollups. This platform allows developers to deploy decentralized applications (dApps) with higher speed and lower costs, while maintaining the security of the Ethereum main layer.
📊 Weekly Time Frame :
On the weekly time frame, we can observe that OP hasn't experienced a major bull run yet and doesn't have much historical data. After breaking the downward trendline and pulling back toward the 1.196 support, we saw a drop in bearish volume, and sellers lost strength. For some time, the price has been ranging between the 1.196 support and the 1.957 resistance, without any significant movement.
Enter after breaking the 1.957 resistance.
If you're currently in a loss, you could use DeFi and staking to break even or cash out your coins if the 1.196 support is broken.
💡 Daily Time Frame:
On the daily time frame, we had a strong downtrend, but during these bearish waves, fewer red candles were recorded, and we didn’t make lower lows compared to the previous waves. This indicates buyers are back in the market.
After breaking the long-term downtrend and touching resistance, the price pulled back and once again headed toward the 1.626 resistance with decent volume. If the resistance is broken, you can even enter for spot buys with a stop-loss around 1.446, due to the higher lows according to Dow Theory.
Volume increase , Break of the RSI resistance at 59.96, which will confirm the strength of the move.
📊 4-Hour Time Frame :
In the 4-hour time frame, we're in a long-term range box, where the buyers seem to have the upper hand. Last time, the price didn’t even drop to the bottom of the range; it bounced back from the middle and moved toward the resistance.
📈 Long Position:
After the 1.626 breakout, make sure to take a long position and follow the potential bullish trend.
📉 Short Position:
Currently, we don't have a clear short trigger, unless the resistance breaks fakely, which would be a fake breakout, or if the price drops below 1.395. Right now, opening a short position is quite difficult.
💬 This wraps up today’s analysis. If you found this helpful, feel free to share it with your friends and leave a comment with your thoughts or any other pairs or coins you’d like us to analyze.
📌 These analyses are merely our ideas based on a chart that doesn’t follow strict rules. Technical analysis is an art, and these insights are not financial advice.
e-Learning with the TradingMasteryHub - Growth is "simple"🚀 Welcome to the TradingMasteryHub Education Series! 📚
Looking to unlock consistent growth in your trading? Today, we’re diving into a powerful yet straightforward formula that many overlook. Growth isn’t magic; it’s a process that involves discipline, patience, and following a few key principles. Let’s explore seven strategies that can lead you to consistent success.
1. Get Rid of the Idea that You Can Calculate Profit
It’s time to rethink profit calculation. Many traders rely on risk/reward (R/R) ratios to estimate their potential profits, but the truth is, you can’t predict how far the market will go or how volatile it’ll be on the way. Setting a profit target can actually work against you. Your brain becomes fixated on that goal, which can cause you to make irrational decisions, like holding on too long when the market is telling you to exit. It’s more likely that you’ll lose out by not taking profits before reaching your target than by missing an extended move.
Instead of trying to calculate profit, focus on managing your trades as they unfold. No one knows where the market will go, but you can follow the price action and let it lead you to bigger gains than you initially expected.
2. Always Use a Stop Loss
The stop-loss order is your best friend in trading because it’s the only thing you can control. A stop loss does more than protect your capital—it measures your discipline and ability to stick to a plan. It helps you stay aligned with your risk tolerance (what I like to call your “bud meter”).
Set your stop loss at significant areas in the market. The best place to put it? Where you’d place the opposite trade. For example, if you’re buying, put the stop loss where a sell order would make sense in the current market context. This prevents you from being stopped out prematurely and ensures you stay on the right side of the momentum.
3. Add to Your Winners, Cut the Losers
Adding to winners is a game-changer. Most traders fade out of winning trades too quickly because they fear giving back profits. But by adding to positions that are moving in your favor, you’re compounding your success. Don’t worry about getting in at a higher price—if the market is showing strength, it’s a sign to follow.
Let’s look at how most traders handle a winning trade:
- They take small profits at 1:1 R/R ratio, move their stop loss, and try to let the rest run.
- But in doing so, they lock in limited gains and miss out on the bigger move.
Now, here’s what the top 10% of traders do:
- Instead of scaling out, they add to their winners at each significant level.
- By adding small positions as the market runs, they compound their gains, allowing the trade to grow much larger than initially estimated.
This approach not only maximizes your gains but also lowers your risk on each successive entry.
4. Only Trade in Trend Direction
Trading with the trend is like surfing—catching the wave takes you much farther than paddling against it. In bull markets, overhead resistance zones are often broken, just like support levels in bear markets. These trends are driven by large institutional players, like hedge funds and banks. Retail traders only make up a small fraction of the market, so swimming against these currents is a losing game.
About 20% of trading days in major indices are strong trending days where the market moves in one direction all day long. To take full advantage of these days, you need to add to your winning trades as the trend progresses.
5. Seek the "Brain Pain"—It’s a Sign of Growth
Your brain is wired to avoid pain at all costs, and this can be detrimental to your trading. Most traders scale out of winning positions too soon because their subconscious is trying to protect them from the fear of losing profits. On the flip side, they’ll add to losing positions, convincing themselves that they’re getting a “discount,” even when the market shows otherwise.
To become a winning trader, you need to train yourself to embrace discomfort. This means adding to your winning trades, using stop losses that you can stomach, and cutting losses as soon as your brain starts to rationalize bad decisions. Losing should never bother you—it’s part of the game. What matters is your overall growth and consistency, not avoiding pain in individual trades.
6. Don’t Do What 90% of Traders Do—Be the 10%
Want to be in the top 10%? It’s simple: avoid the mistakes of the 90%. Here’s how:
- Always set a stop loss.
- Add to your winners, don’t fade out.
- Cut losses before they snowball.
- Trade the market, not your account—don’t take revenge trades to “get even.” Focus on what the market is showing you, not what your account balance says.
The market doesn’t care about your profit target. It only cares about price movement, so align yourself with it.
7. Analyze Your Trades, Not Just Your Results
The best way to grow as a trader is through post-trade analysis. Screenshot your charts, mark your entries, stop losses, and exits, and review them daily. This helps you identify both technical and psychological weaknesses in your trading.
Think of it this way: if you had a business partner who consistently made poor decisions, you’d fire them eventually. Be your own business partner, and change your behavior if it’s not delivering results.
🔚 Conclusion and Recommendation
Growth in trading is a simple formula: get rid of fixed profit targets, control your risk with stop losses, add to winners, and cut your losers. Follow the trend, embrace discomfort, and don’t fall into the traps that 90% of traders do. Analyze your trades with an honest eye, and over time, you’ll see steady growth.
Success in trading isn’t about perfection—it’s about discipline, consistency, and continual learning.
---
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💡 What You'll Learn:
- Essential growth strategies in trading
- The psychological edge to outperform others
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- And much more!...
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TradingMasteryHub
The 3-way of Economic Nightmares.I recently had a discussion on X, with regard to the Forecasting ability of High Yield Spreads. I was making the claim they do possess Leading Indicator qualities, while a gentleman took the other side of this debate.
To illustrate my views, I've put together a chart of FedFunds Rate, Unemployment Rate, and said High Yield Spreads.
This chart shows the last ~28yr of the above mentioned series, and how they "play" with one another.
A) Shows the period leading into the "DotCom" Bubble. We see High Yield Spreads rise first - Leading the other two data series. In a Coincident fashion, FedFunds then rolls over, while Unemployment shoots higher. A successful "Forecast" by High Yield Spreads of the impending Downturn/Recession. A successful Leading Indicator.
B) Shows the period leading into the "GFC". We once again see High Yield Spreads rise, this time SHARPLY, albeit with much less "lead time" than the previous example. As with example A), FedFunds and Unemployment then begin their inverse (to each other) dance. Once again showing High Yields Spread giving us that Advanced/Leading warning that things were getting fragile in the economy. A successful Leading Indicator - with admittedly less warning time.
C) Shows us an outlier in this analysis, and for good reason. We see our 'significant' rise in High Yield Spreads, but what we do NOT see, is FedFunds and Unemployment doing their typical dance. Unemployment continues to head lower, while FedFunds begin to rise - the OPPOSITE of what they did in the prior 2 examples.
D) Shows the period surrounding Covid. Once again High Yield Spreads shoot up in a dramatic fashion, warning bells should be going off in markets. Much like 2 of the previous 3 examples, FedFunds had also been in a "hiking" cycle. And right on cue, Unemployment skyrockets; completing our 3-way from Hell.
We now find ourself in E). In the Oval we see our significant rise in High Yield Spreads, but this is accompanied by rising FedFunds, so we do not have our "danger" signal. Unemployment also remains low. We now however see High Yield Spreads beginning to turn up, with talks of Rate Cuts to FedFunds, as well as Unemployment rising.
History may not repeat, but it does often rhyme. Are we starting to see warning signs flashing? Only time will tell, but as stated in previous posts... It's definitely not a time to be leveraged, or riding on large gains you haven't secured.
TLDR; High Yield Spreads followed by Fallings FedFunds and Rising Unemployment = Market/Economic Stroke.
As always, good luck, have fun, practice solid risk management. And thank you for your time.