The Story of a Failed Trader | OKXIDEASOnce upon a time there was a man who was a very poor and he belong to a middle class family but he had the ability to dream it. He was 20 years old and he also think that he spend all of had 20 years doing nothing, he was a dreamer. He wanted to become a rich man, he finding ways to become a rich man, he tried almost every thing but failed. One day he watched a video about trading on YouTube and he decided to become a trader, become a rich with trading and fulfill all of had dreams. He started to learn trading, he watched all of educational videos about trading on YouTube and spend had 15 hours every day just watching videos, now he knows about the basic trading he shifted to the analysis part of trading, he started to practice and learn the technical analysis. He find the method that he can trade with, he combined some technical indicator signals and created strategy for himself. Now he had very passionate about trading, wanted to open a real account and start trading with real account. He had some saving money around 500 dollar he deposited that money in the real account and start trading with that money. He started dreaming from the first day of trading and created some trading rules for himself like he had to take 10% risk per trade and don't take that trade which is below 1/1 risk to reward ratio. On the first day he had taken almost 3 trades and win all of them, now he was more excited for trading he had made $192 profit means something around 38% profit on 500 dollar account. He wanted to trade more but he was a little bit smarter one, he think that i am in profit and my wining ratio is 100% so why i just damage my wining ratio and why i just risk my today profit so he had decided to come back tomorrow. On the second day he had $692 total balance in the account, he had to play a little bit more smarter than a previous day and he decided to take 10% risk per trade of the current total balance $692 in the account rather than the starting balance which is $500. On the second day he take almost 4 trades and he won 2 trades out of 4 trades, now the account condition had almost break-even no loss & no profit, he decided to try again and trade more, he finding the reason to trade more and then he calculate today and yesterday total taken trades which is 7 trades, he think that i won 5 trades out of 7 trades so my wining ratio is almost around 70% which is good and i can trade more because my wining ratio is still above 50% so i am still in positive side. He trade almost 3 trades again and he lose all of them, now he had very sad and almost broken, he decided to step back and come back later. He sturdy himself and come back on the third day, now he had facing a little bit draw-down on the third day the total account balance is around 484 dollar, he started looking for the trades opportunity and at the end of the day he took almost 5 trades with the 10% risk per trade but the third day results had also again bad and he lose 4 trades out of 5 and just win 1 trade, he had very shameful from himself, he closed the laptop goes to outdoor and talk to himself. He analysis the current situation of the account, it that point the total account balance is around 276 dollar he almost around 45% in draw-down and the wining ratio had below 50% so now he entered to the negative side. On the fourth day morning he traded 2 trades and he lose both of them now he almost lose the hope and the account condition had around 72% in draw-down and he left only 138 dollar in the account. At the time he give up and he just decided to depend on just one trade, he just waiting for the best opportunity of the day and finally he got the trade but at the end he lose that trade again and he almost blow out had account.
After that all he had stressful and sad from almost one week, he decided to leave the trading and move on to the next thing and he looking to find other things that suitable for him because he think that trading is not suitable for him. One month later he just scrolling on the internet and he see the FAQ that 90% of traders lose and only 10% had succeed, now he had a little bit shock and he think that its pretty normal every trader in the 90% had facing that stage which stage that i faced.
He decided to come back to trading and start from the zero, he started to modify had strategy and created new rules for had strategy like he set this time risk to reward ratio for had trades is minimum 1/2 and he decided to risk only 2% of the total account also he decided to take only 2 trades per day, this time he opened the demo account rather than the real account and start trading with demo account, he decided to journal had journey and after one month of consistency he hadn't break any rules and when he see the results after month he had profitable, now he feel like stronger and he continue the journey with that same demo account after three months he had similar results and still profitable. In that time he think that i don't have much money and in trading it's required a lot of money to earn a lot of profits, he started to search for that how he had to prove himself to big investors and raise money for himself to trade. One day he searching and he knows about prop firms trading now he had interested in that and wanted to know more about prop firms, he think that this is the big opportunity for himself to become succeed quickly, now he decided to trade with prop firms and buy the challenge from the prop firms, he adjusted had strategy rules and trading plan according to the prop firms requirement, now but the only problem is that he don't have money to actually buy the prop firms challenge. By the way he was dropout from the school after completing had secondary education and so he just setting at the home, he don't have much money to buy the challenge, the pocket money of him had just depend on him father and he hadn't want to say to father to give me extra money because of him father was very poor and he work as a taxi driver, so then he had decided to get the any kind of job for himself and try to earn some money in the form of salary and buy the challenge with that money, he worked hard and after one month he got the salary and then he just swift to the prop firm website and buy the $50000 account challenge for himself, now he started trading with challenge account phase one, on the phase one he decided to risk only 1% per trade, take only 2 trades a day and the every trade risk to reward ratio had to minimum 1/2 after one month of consistency he gained +8% profit, he was in profit but he hadn't achieved the prop firm required profit target which is +10% in that case prop firm gives traders free retake so then he take the challenge again with the new account and new month from zero and he think that my wining ratio for the previous month is almost around 40% with minimum 1/2 risk to reward ratio and my daily limit is 2 trades so i need to increase my daily limit from 2 to 3 because if i traded with the same rule 2 trades a day then i hadn't pass with 40% wining ratio. He calculate some numbers like he think, if i take 3 trades per day so then at the end of the month my all trades had to be 60 trades per month and if i maintain my 40% wining ratio then i can easily pass the challenge with that mindset he started the challenge and strictly follow the rules after month he hadn't maintain the 40% wining ratio and he end up with some loss and failed the challenge, this time he almost faced big depression after some days left he realized had mistake and he think i made mistake that i increase my daily trades limit because of this my wining accuracy goes down, i just forced myself to take 3 trades per day and get trapped into the normal trades.
At that time he hadn't left any pathway he almost try everything but at the end he faced failure, him father had now getting older and he decided to step back again he start going to the normal job and start saving 30% of had salary, he do that job for almost one year and after one year later he had some saved money in the bank account to buy multiple 10x challenges, he come back to the trading but this time he hadn't leave the job and he do trading like part time thing. He started had journey again he decided to hadn't give up and repeat the process so then he started buying challenges after one by one in some challenges he failed in phase one in some he failed in phase two in some he almost pass the challenge and got the live funded account but hadn't get payout and lose the account in the first month.
The journey had started goes on and he just repeating the process and doing try again and again.
Will be continued.....
Some lessons from the story
> Never open real account in the start, try to learn first on demo account.
> Don't try to be smart in the front of the market.
> Don't lose hope in draw-downs just repeat the process of your trading plan.
> Take every trade with the hope of wining.
> Never depend on a single trade.
> Don't leave too fast stay in the market.
> Give yourself enough time to create the solid proven strategy that works at least for you.
> Respect your trading limits.
> Don't depend on just trading and never leave your job, consider trading like part-time thing in the starting.
> Learn from your mistakes and improve your performance.
> Make mistakes but don't repeat that mistakes again.
> Never depend on small capital always look for an opportunity.
> Journal your journey, record your trading performance and improve next time.
> Don't fear from failure.
> Be patient, market is here not going anywhere.
> Don't force yourself to take normal trades wait for good opportunity always.
> Don't count the numbers, you need to count the percentage.
> Don't try to be rich quickly.
> Step back, if you damaged from market then simply step back and come back stronger don't try to fight.
If you learned any other lessons from the story, let me know in the comments.
What you feel about one day he will be succeed or just the failure always, also let me know in the comments.
I hope you enjoyed the story, appreciate my work with like comments and share.
I wish you good luck in trading.
Riskmangement
Turtle Power: Experiment Turns Novices into MillionairesHi and welcome back! As a trader, you have probably at one time heard about the Turtle Traders, right? But what was it, and what can we learn from it?
Let me take you on a journey into the fascinating world of the Turtle trading strategy! 🐢💰
This legendary trading experiment, conceived by two master traders, Richard Dennis and William Eckhardt, in the 1980s, showcases the power of a well-designed system and the right mindset.
Dennis believed anyone could be trained to trade successfully, while Eckhardt argued that trading skills were innate. To settle the debate, they devised the Turtle trading experiment. They selected a diverse group of 23 individuals, known as the "Turtles," and taught them a trend-following trading system focused on trading commodities and currencies. The core principles of this system were:
Follow the trend : The Turtles used Donchian Channels, tracking 20-day and 55-day price channels, to identify breakouts and breakdowns. When the market price broke above the 20-day high, it was a buy signal. When it broke below the 20-day low, it was a sell signal.
Cut losses short : The Turtles followed a 2% rule, never risking more than 2% of their account on any single trade. They calculated position sizes using the N value, the 20-day average true range (ATR), dividing the 2% risk amount by the N value.
Position sizing and pyramiding : The Turtles adjusted their position sizes based on market volatility and employed pyramiding, adding more contracts at specific increments up to a maximum limit as the market trended in their favor.
Stop Losses : They used a stop-loss order equal to 2N for every trade, exiting the trade to minimize losses if the market moved against their position by twice the N value.
Diversification : The Turtles traded a diversified portfolio of markets, spreading risk and enhancing returns.
Scaling Out : They used a two-tiered exit strategy, exiting a portion of their position when the market retraced by 10-day low/high and the remaining position when the market retraced by 20-day low/high.
With these principles, the Turtles were handed real money to trade. Over the next four years, they collectively made more than $100 million , proving that trading success could be taught. The Turtle trading experiment demonstrated the power of a disciplined, trend-following system combined with the right mindset.
In conclusion, the Turtle trading strategy is an extraordinary tale of how a simple, yet effective, trading system can lead to remarkable results when executed with discipline and consistency . As you venture into the world of trading, remember that the strategy in itself is not as important as the lessons of the Turtles: stay disciplined, follow the trend, and manage your risk . You might just be the next trading success story! 🌊📈
Want to become a Turtle?
💡 Curious about the Turtle trading strategy? Dive into TradingView's Public Indicator library, where you'll find a collection of Turtle-related scripts crafted by the Pine Script™ community. Just open a chart, click "Indicators," and search "Turtle" to access a variety of indicators that'll give you a feel for this legendary system. Happy exploring!
💡 The Original Turtle Rules (PDF): This free eBook, written by Curtis M. Faith, one of the original Turtles, contains the original Turtle trading rules and guidelines.
Link: www.trendfollowing.com
🚀 Like and follow if you appreciated this article.
📖 More useful publications can be found under "Related Ideas" below ⬇️⬇️⬇️
USDCAD, LONGPrice action is developing a flat formation which we may see one more leg down before the next impulse phase.
We can see a clear uptrend in the HTF which a long opportunity at the bottom of this structure giving is double bottoms would be a good opportunity to buy.
Thanks
Trade Safe
Share your opinion by leaving a comment below.
Top Mistakes to Avoid After a Losing TradeI hope you already know that losing trades are inevitable in trading. No matter how professional a trader is, mistakes are made. It's part of the game, and the possibility of making mistakes should simply be factored into your trading strategy. But what really matters for success in the market is how you handle the fact of incurring losses.
Today, I've compiled a list of actions you should avoid after a loss:
Avoid immediately trying to recoup lost money. "Revenge trading" is a common mistake where a trader, after a loss, wants to take revenge on the market and quickly recover losses. This is purely a psychological and emotional problem. After a loss, it's better to take a break and objectively evaluate the situation before making a decision to enter into a new trade.
Don't look for someone to blame for your losses. It's very easy to find a reason for your loss: market conditions, manipulators, other traders, or Telegram channels where you seek signals. Ultimately, you must take responsibility for your own decisions and actions. Look for the real cause!
Don't rush to change your trading strategy after a losing trade. Radical changes in strategy after a loss can lead to new losses. Instead, re-evaluate the strategy and identify areas that need improvement, study the reason for the loss. A loss does not necessarily mean that the strategy is ineffective.
Don't ignore risk management. Until you deal with risk management, you will suffer losses in the market again and again. A trader must have a risk management plan to protect themselves from a series of losses.
Don't jump into hot trades on the spot and don't blindly follow the crowd. Take a break, conduct thorough analysis, and make a well-reasoned decision to enter into a trade. If you rush again or jump in with the crowd, it usually leads to even greater losses.
6 month hold on $GTN with tight risk 80% upsideGTN has amazing fundamentals in Broadcasting sub industry compared to its peers, technically at the bottom of an expanding long term wedge, and we're going into political ad season and its market is in many swing states that will see high political ad spending; this has a tight risk stop loss at 18% and easy upside of 80%;
I will take a measured long position in this soon at 2%-4% of portfolio and hold for 6=12 months.
I do not have a position in this currently but will likely go long this week
Simple Math Defies Logic"The ones who make the most money lose the least when they are wrong"
Let's use a scalping trading style for example
Say you have a set risk reward ratio of
-10 pips for being wrong
+30 pips for being right
Start trading
Loss
Loss
Loss
Win
Loss
Loss
Loss
Loss
Loss
Win
Loss
Loss
Loss
Win
Win
Loss
Loss
Win
Loss
Loss
Wow, a lot of losses, but hold on.... You have the same amount of money you started with, minus maybe a small bit on commission.
How does that happen?
Let's put the running total (pips) next to each trade
Loss -10
Loss -20
Loss -30
Win 0
Loss -10
Loss -20
Loss -30
Loss -40
Loss -50
Win -20
Loss -30
Loss -40
Loss -50
Win -20
Win +10
Loss 0
Loss -10
Win +20
Loss +10
Loss 0
Final for the day = 0 ( -1.5 - 2.5 pips for commissions)
Accuracy rate: 30%
So in simple terms, by just using a simple risk management set up that allows you to win more than 1x the risk, you do not have to have a very high accuracy rate in order to make even a small profit.
It is very difficult to keep your mind in check about this simple math, because we look at each trade on it's own, instead of looking at a series of trades (for a day/week/month) to judge performance. Keeping the overall picture in mind, and just making sure you do not allow more risk on a position than you planned, and most cases you will begin to see an improvement on trading.
By not using stops, losses can quickly mount up, because losing streaks happen. Stick to the plan, and let your mind just sit in the corner mad about the stop rules (Ignore the feeling, like a 2 year old that didn't get ice cream, or because they weren't right, & just remember the math).
*If you move your stop, one of two things apply:
You are either finding more support for the idea, just a bad entry. Move the stop to what you would risk as an additional position had you taken the trade from the spot you decide to move the stop from, and count it as two trades.
If you had a small stop, but not the maximum risk you allow on the idea, then move it no further than you planned to risk as a maximum for a single trade.
Moving a stop because you have a reason is OK, just COUNT IT, and MAKE SURE you have a REASON to do so.
DO NOT just move it because you don't want to lose, or you will take out your own account very quickly.
AUDCAD, LongPrice action is shifting from a bearish market to a potential bullish one. Price is currently moving within a decending channel which is at a level that has had a strong reaction too previously indicating that we could see the next bullish phase begin.
To add confluence to this set up, we could see a H&S pattern which the Right shoulder could be in the beginning with a swing target of 0.93350 range.
Look at the LTF for an entry that meets your trading plan.
Thanks
Trade safe
** If you felt this was helpful in any way, hit the LIKE button and FOLLOW me for more educational ideas and analysis **
Share your opinion on this pair by leaving a comment
GBPCHF, ShortPrice has created a strong reversal impulse followed by a developing bearish correction indicating more downside is likely. Wait for bearish confirmation before taking this short opportunity.
Thanks
Trade Safe
** If you felt this trade waa helpful in any way, hit the LIKE button and FOLLOW me for more educational ideas and analysis **
GBPNZD, ShortPrice action moving within an ascending channel which indicates a reversal is forming. Price could make one more leg up before a making its way to the lower boundary of the channel.
Thanks
Trade Safe
**If you felt this idea was helpful in anyway hit the LIKE button and FOLLOW me for more educational ideas and analysis **
UKOIL, ShortPrice has correctively pulled back to an area which we saw a strong impulse push downward breaking structure indicating could see a potential reversal occur at this level.
If we don't see a bearish confirmation validating a sell, I will look for a different that meets my trading plan.
Thanks
Trade Safe
** If you felt this idea was helpful in any way, hit the LIKE button and FOLLOW me for more analysis and educational ideas **
GBPAUD, ShortPrice is correctively moving within an LTF ascending channel within larger reversal structure which we could see a sell opportunity to bottom of HTF channel.
If we don't see a bearish confirmation to validate this sell, I will not take this trade.
Thanks
Trade Safe
** If you felt this idea was helpful in any way, hit the LIKE button and FOLLOW me for more analysis and educational ideas **
EURAUD, Failed breakout, Short the Double topPrice action is shaping up for a bearish run as price was unable to continue the momentum and fell short of a double top level on the HTF. Looking at the lower time frames we can see a potential H&S printing retesting the March high indication more bearish price action is likely.
Look for a short to the lower trendline.
Thanks
Trade Safe
** If you felt this idea was helpful in any way, hit the LIKE button and FOLLOW me for more analysis and educational ideas **
Comment below and and share your opinion on this set up
EURGBP, Bearish H&S, Short term sellPrice action is in a down trend as we can see on the HTF price is moving within a decending channel. Looking at the LTF we can see a short term sell opportunity as price is potentially completing the right shoulder of a Head & Shoulders pattern which in nature is a bearish indicator.
Look for a short entry around the neck line of 0.885 that fits your trading plan.
Thanks
Trade Safe
**If you felt this was helpful in anyway hit the LIKE button and FOLLOW me for more analysis and educational ideas**
Comment below and share your opinion on this set up.
Top10 Mistakes to avoid as a New TraderIntroduction
When starting out as a trader or investor, it is important to be aware of the mistakes that can be made. Mistakes are common, and even experienced traders and investors make them from time to time. However, new traders and investors are particularly vulnerable to making mistakes, which can lead to significant losses. In this article, we will discuss the top 10 mistakes to avoid as a new trader or investor, and provide tips on how to avoid them.
Mistake 1: Lack of education
One of the biggest mistakes that new traders and investors make is not educating themselves about the markets they are investing in. It is important to have a basic understanding of the financial markets, including the stock market, foreign exchange market, and commodity markets.
Before making any trades or investments, new traders and investors should spend time learning about the different financial instruments, such as stocks, bonds, and options. They should also understand the basic concepts of fundamental and technical analysis, which can help them identify profitable trades.
There are many educational resources available to new traders and investors, including books, online courses, and seminars. Some of the most popular books on investing include "The Intelligent Investor" by Benjamin Graham, "The Little Book of Common Sense Investing" by John Bogle, and "A Random Walk Down Wall Street" by Burton Malkiel.
Mistake 2: Failure to set goals
Many new traders miss out on setting goals. Having clear and realistic goals is important in trading or investing because it helps traders and investors stay focused and motivated.
Some common goals for new traders and investors include building wealth, generating passive income, and achieving financial independence. Goals should be specific, measurable, achievable, relevant, and time-bound (SMART). For example, a SMART goal for a new investor could be to earn a 10% return on their investment within the next 12 months.
Mistake 3: Emotion-based decision making
Emotions can be a trader's worst enemy. Fear, greed, and hope can all cloud judgement and lead to poor decision-making. New traders and investors are particularly vulnerable to emotional biases, such as the tendency to hold on to losing trades for too long or to sell winning trades too quickly.
To avoid emotional biases, new traders and investors should develop a trading plan and stick to it. They should also set stop-loss orders, which are orders to automatically sell a security when it reaches a certain price, to limit their losses.
Mistake 4: Not having a plan
New traders and investors often make the mistake of trading without a plan. A trading plan is a written set of rules that outlines a trader's entry and exit criteria, risk management strategy, and other important factors.
A trading plan should include the trader's goals, risk tolerance, and trading strategy. It should also outline the types of securities the trader will invest in and the timeframe for holding those securities. A trading plan is important because it helps traders avoid impulsive decisions and stick to a consistent strategy.
Mistake 5: Lack of diversification
Another common mistake that new traders and investors make is failing to diversify their portfolio. Diversification involves spreading your investments across different asset classes and industries, which can help to mitigate risk and protect your portfolio against losses.
For example, if you invest all of your money in a single stock or industry, you run the risk of losing everything if that stock or industry experiences a significant downturn. However, by diversifying your portfolio, you can help to reduce your exposure to any one particular investment and increase your chances of long-term success.
There are many ways to diversify your portfolio, such as investing in a mix of stocks, bonds, and mutual funds, or investing in companies across different industries and sectors.
Mistake 6: Chasing trends
Chasing trends is a pitfall that many undisciplined traders make and this also happens to professionals. This can be dangerous and lead to significant losses. Chasing trends involves investing in a stock or asset solely because it has recently experienced a significant increase in price, without considering the underlying fundamentals of the investment.
While it may be tempting to jump on board with a hot trend, it's important to remember that these trends are often short-lived and can quickly reverse direction. As a result, investing in a trend without doing your due diligence can result in significant losses.
Instead of chasing trends, focus on identifying investments with strong fundamentals, such as a history of consistent earnings growth or a solid balance sheet. By investing in quality companies with a proven track record, you can increase your chances of long-term success.
Mistake 7: Overtrading
New traders and investors tend to 'overtrade'. Overtrading involves making too many trades or investments, often based on emotional impulses or a desire to make a quick profit.
While it may be tempting to try to make as many trades as possible, overtrading can be harmful to your portfolio. Each trade comes with associated fees and commissions, which can add up quickly and eat into your profits. Additionally, making too many trades can increase your exposure to risk and volatility, which can lead to significant losses.
Instead of overtrading, focus on making well-informed, strategic trades based on your plan and goals. By being patient and selective with your trades, you can increase your chances of long-term success.
Mistake 8: Ignoring risk management
One of the most common mistakes new traders and investors make is ignoring risk management. Risk management is the process of identifying, analyzing, and controlling potential risks associated with an investment or trade. This includes setting stop-loss orders, diversifying your portfolio, and understanding the potential risks associated with each investment.
Many new traders and investors focus on potential profits and forget to consider the risks involved. This can lead to significant losses and can quickly wipe out an entire investment account.
There are several ways to manage risk, including setting stop-loss orders, diversifying your portfolio, and conducting thorough research on each investment opportunity. Stop-loss orders are an effective tool to limit potential losses on any given trade. Diversification is also an effective way to manage risk by spreading your investments across different asset classes, such as stocks, bonds, and commodities.
By ignoring risk management, new traders and investors increase the likelihood of experiencing significant losses. It is important to be proactive in managing risk and to always be mindful of the potential downside of any investment.
Mistake 9: Focusing too much on short-term gains
New traders and investors are focusing too much on short-term gains. While it is natural to want to see immediate returns on your investments, it is important to keep a long-term perspective in mind. Focusing too much on short-term gains can lead to impulsive decision-making and can cause investors to overlook the potential long-term value of an investment.
Short-term gains are often associated with higher risk, and it is important to remember that high risk can lead to high losses. By focusing solely on short-term gains, new traders and investors may overlook quality investments that have the potential for long-term growth and stability.
It is important to balance short-term gains with a long-term perspective. This means taking the time to research potential investments, identifying investments that align with your overall investment goals, and being patient with the investment process.
Mistake 10: Lack of patience
Finally, one of the biggest mistakes new traders and investors make is a lack of patience. Patience is critical in trading and investing, as it takes time to see returns on your investments. It is important to remember that investing is a marathon, not a sprint.
Many new traders and investors are eager to see quick returns on their investments, and they often become impatient when they don't see immediate results. This can lead to impulsive decision-making and can cause investors to sell their investments prematurely, often at a loss.
It is important to remember that successful investing takes time and patience. By taking the time to research potential investments, setting realistic expectations, and being patient with the investment process, new traders and investors can avoid making hasty decisions that can lead to significant losses.
Conclusion
In summary, trading and investing can be a rewarding and lucrative endeavor, but it is important to avoid common mistakes that can lead to significant losses. By educating yourself, setting goals, managing your emotions, having a plan, diversifying your portfolio, avoiding trend chasing, avoiding overtrading, managing risk, focusing on the long-term, and being patient, you can increase your chances of success as a new trader or investor.
Remember, the key to success is to approach trading and investing with a long-term perspective and to be mindful of the potential risks and rewards associated with each investment opportunity. By avoiding these common mistakes and staying disciplined in your approach, you can achieve your financial goals and enjoy a successful trading and investing career.
CADCHF, Bears to target 0.665 rangePrice action is shaping up for a sell opportunity as we can see a price is completing a bearish continuation indicating further downside is possible. Competition of this correction is also a 3rd touch on the upper trend line.
Find a risk entry or a reduced risk entry that meets your trading plan
Thanks
Trade Safe
**If you felt this was helpful in any way, hit the LIKE button and FOLLOW me for more analysis and education ideas**
Feel free to share your opinion on this pair by leaving a comment below
I appreciate all the feedback.
10 Rules of Risk Management
Risk management is the most important aspect of any trading plan. Apart from the mathematical and strategic methodologies to employ, there are several precautions you can adopt as a trader and consider in your decision-making process.
Never risk more than you can afford to lose.
Never forget Rule no.1.
Stick to your trading plan.
Consider the costs like spread, rollover/swap and commissions.
Limit your margin use and track available margin to avoid margin calls.
Always use Take Profit and Stop Loss orders.
Never leave open positions unattended.
Record your performance and adjust as you progress.
Avoid high volatility periods like economic news releases.
Avoid making emotional decisions when trading.
We apply risk management to minimise losses if the market tide turns against us after an event. Although the temptation of realising every opportunity is there for all traders, we must know the risks of an investment in advance to ensure we can endure if things go sour. All successful traders know and accept that trading is a complex process and an extensive risk management strategy and trading plan allow us to have a sustainable income source.
❤️Please, support our work with like & comment!❤️
What do you want to learn in the next post?
THE MOST USEFUL TRADING SITES ...and how to utilize themIn this post, I will share the some of the most useful trading sites that are available to you and how you are able to utilize them to your advantage whether it's for fundamentals, charting, analysis, performance tracking, news events or just to follow your favorite professionals and their ideas & education that they share publicly.
First and foremost, if you haven't made this your PRIMARY trading platform, I want to encourage you to use and SUBSCRIBE to TRADINGVIEW
As we all evolve as traders, I'm sure we can all relate to one thing in common which is hard work and dedication. Trading is one of the hardest professions out there and without hard work, practice and dedication, we know that 90% of traders fail to make it in this industry. TRADINGVIEW gives you all the resources you need to be able to become one of the 10% as it enables you to become a content creator, it gives you a community to research ideas, you're able to watch livestreams, catch news flows, back test & analyze your own strategies and most importantly of all, you have direct support team to help guide you by sharing their own personal trading experiences, publicly as well as privately. Whether your choice of market is Forex, Stocks, Crypto, Bonds, Futures, Commodities or Yields, TRADINGVIEW has all the tools to be able get you well on your journey to become a professional trader.
See Figure 1: Subscriptions
WWW.MYFXBOOK.COM
MYFXBOOK has a variety of different tools to use ranging anywhere from position size calculators, COT data (Commitment of traders), Broker spreads/quotes/volumes, news flows, correlations and most importantly, account linked performance analysis. You may be a full time trader or a part time trader with a 9-5 job, either way analyzing your entries, exits, RR ratio, drawdowns etc. are necessary to find what works and what doesn't. Trading is about probabilities and if you're not making money in 25 trades, you need to reanalyze and change your approach. Myfxbook.com allows you to link your trading platform to breakdown your performance, ultimately being your own coach to find the approach that suits you the best.
See Figure 2: Performance Stats
WWW.TRADINGECONOMICS.COM
As many different crises happen throughout the world (especially the most recent ones within the last few years), understanding how the Federal Reserve operates to manage monetary policy is key to get an edge in your positions in the forex market. TRADINGECONOMICS gives you all the accurate information needed to be able to forecast and research throughout 196 countries like, economic indicators, exchange rates, stock market indexes, government bond yields and commodity prices. Micro and Macro economics are a big part of how this world operates and having access to all the most important information that drives the Feds decisions due to the economy being split between these two realms are valuable as they could be bridged together for more accurate forecasting.
See Figure 3: Inflation Rates/GDP Growth (By Country)
WWW.FOREXLIVE.COM
FOREXLIVE has many different helpful resources to keep you up to date in the market no matter what time zone or trading session you take part in. As our lives are busy with family, day jobs, business endeavors or simply being in different time zones, you may not be able to watch all sessions play out and in fact, taking a break from the screen is healthy for your mind and emotions. The great thing about FOREXLIVE is that you are able to read Session Wraps to keep you up to date with a summary after each session (Asian, European, U.S) completes. Psychology is a big part of why a trader either succeeds or fails which balancing your time on and off the markets are important to detach your emotions from your positions. Set a plan for how many times you will scan the charts a day and fill that in between time with activities like exercising, reading, chores, spending time with your family, going for a walk and much more.
See Figure 4: Session Wraps
WWW.INVESTOPEDIA.COM
INVESTOPEDIA was founded in 1999 headquartered in the heart of New York city U.S. This website provides comparisons of financial products, reviews, ratings, comparisons of different financial products and most importantly, it is a financial dictionary. With the broad range of information provided, it gives readers the confidence to manage every aspect of their financial life. Whether you're learning about money and investing for the first time or are looking to improve your knowledge and skills, anyone from an experienced investor, a business owner, a professional, an advisor, INVESTOPEDIA has all the information to build your skills.
See Figure 5: 4 Basic Things to Know About Bonds/Key Takeaways
WWW.INVESTING.COM
INVESTING.COM is a well known site that offers real-time market quotes, information about stocks, futures, options, analysis, commodities and most importantly an economic calendar. Keeping an eye out for the high impact news events will help you adapt and control the volatility during those peak hours. Another helpful aspect of this site is knowing what will drive the market mood for each upcoming week. The top 5 most important fundamental areas to watch for are explained and broken down to help your forecast and analysis so you can prepare your trade setups accordingly. Applying fundamental analysis along with technical analysis will help you become a better trader as when the high impact news events hit, markets get volatile which could cause a running profit turn into an absolute loss. Knowing when to be in or out of the market is valuable so you don't go into a draw down phase.
See Figure 6: Economic Calendar
As I only have mentioned a small number of sites that you are able to access, we all know there are so many other ones available out there, paid and free.
Researching and spending the time to read to broaden your knowledge in the financial world will only help you grow as a trader and essentially improve your trading results.
Check out some more free sites:
www.fxstreet.com
www.dailyfx.com
www.forexfactory.com
www.babypips.com
Please share the site that most helps you in by leaving it in the comment section. I would love to see the variety of ones available.
** If you felt this was helpful in anyway, please support by hitting the LIKE button and FOLLOW me for more educational and analysis ideas **
I appreciate all the feedback!
Thanks
Trade Safe
NZDUSD, Bullish Flag Pattern Price action has been shaping up to see a continuation in momentum as we can see a bullish flag pattern created which as we know indicates more upside is evident.
Ensure proper risk management is applied, find an entry and exit that meets your trading plan.
Click the LIKE button and FOLLOW me to share more analysis and educational ideas.
Thanks
Trade Safe
EURJPY, Double Top Bearish Price actionEURJPY has been shaping up for a big sell opportunity as we can see price was rising within an ascending channel which impulsively broke downward forming a bearish correction. Double tops have been confirmed indicating more downside is possible.
As we see many different target levels that price could test, it may take weeks for this sell to make its way all down.
Take your profits as the market gives you, ensure proper risk management and exit criteria is implemented.
Thanks
Trade Safe
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.
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!
s&p 500 analysis - 03 mar 2023hope all you traders are doing great! here are my observations of the s&p...
- so for two days (thursday and wednesday) the market was at a level of support, and price tried to breakout of this support level (on lower time frames) but broke back in to show that it has been respected
- the rejection of yesterdays daily candle are seen as an inverse head and shoulders on the H1
- yesterdays candle closed off bullish, and with a lot of momentum seen by the long body
- and it broke through an intraday level of resistance 3968.71 which is now our support, but price has already retested that level on the london open
- so now i am currently waiting for my peach resistance to get broken and i will go long on the retest of that zone
- but i could be wrong this is just what I THINK WILL HAPPEN ;)