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Tradingbasics

Why Do You Need a Trading Journal? 📝 Hey traders, 📖 Trading Journal is a crucial element in your trading education. Even though the majority tends to neglect it, in fact, it is considered to be the essential part of a daily routine of a professional trader. In this post, we will discuss why you should keep a trading journal & how it enhances your trading performance. Let's start with the obvious: ✍️ Trading journal is applied for recording your trading positions: winning and losing ones. With that, you can monitor your current performance, identify the mistakes that were made and examine your decisions. ❌ Analyzing the errors you learn your weaknesses & the situations when it is preferable not to trade. You adjust your trading strategy accordingly in order to avoid similar mistakes in future. 💪 Examining the winning trades you learn about your strengths. You identify the trading instruments, the trading setups where your strategy reaches the highest accuracy. ⚖️ Working with the numbers you can measure your investing exposure and calculate your account drawdowns. You can analyze your losing streaks & your long-term/mid-term/short-term account statistics. 📈 Analyzing the figures you can measure your progress over time by comparing your current results with the old ones. 😡 Keeping the record of your emotions, you can measure & quantify the psychological element of your trading. You may calculate the percentage of emotional decisions being made and their effect. 🌟 Consistent journaling makes you disciplined. It teaches you to strictly follow the rules of your trading plan & constantly learn from your mistakes in order to hasten the path towards a more disciplined and profitable trading career. A trading journal should be simple and tailored to your specific trading style and the goals you would like to achieve. I hope that my words will inspire you to keep a trading journal! Do you have the one already? ❤️Please, support this idea with like and comment!❤️
OANDA:XAUUSDEducation
by VasilyTrader
102
FIBONACCI TOOL common reversal levels📊 ❗️Fibonacci levels are one of the most popular tools for analysis. These are price levels that are located in certain parts of the movement corresponding to the mathematical Fibonacci numbers. 🟢What are Fibonacci numbers? In the XIII century, the famous scientist Leonardo of Pisa lived in the Republic of Pisa – the first major medieval mathematician in Europe. On the cover of one of his most famous works was attributed filius Bonacci (son of Bonacci). Hence the nickname Fibonacci. The Fibonacci numbers are a sequence of numbers derived from Leonardo's experiment on rabbits. The Pisan mathematician decided to find out how many pairs of rabbits will be in a fenced pen a year after the start of breeding (provided that there will be only one pair in the pen in the first month). In the third month, the cuts began to multiply recurrently – each subsequent number was equal to the sum of the previous two (1, 2, 3, 5, 8, 13, etc.). If any number from the sequence is divided by the previous one, you get a number tending to 1.61803398875… This number is the "golden ratio". In algebra, such a number is called the Greek letter phi. When dividing any number from the sequence by the following, the inverse of phi 0.618 is obtained. When dividing any number from the sequence by the number following one, 0.382 is obtained. In this form, Fibonacci numbers are much more familiar to traders. 🔴Correction levels Correction (retracement) - movement against an existing trend. The correction "absorbs" part of the trend movement. Of the Fibonacci numbers, 38.2 are mainly used for correction levels (from the previous trend movement), 50%, 61,8%, 78,6%. Correction levels are based on candle wicks, in other words, on their maximum or minimum points. To build a correction level, you need to find a trend. Fibo levels can be asymmetrical, so it is especially important to pay attention to where the beginning and end of the wave on which the level is being built are located. On a downtrend, 0% at the bottom, 100% at the top. When ascending, the opposite is true. The most significant correction level is 61.8. When a breakdown of this level occurs, a new trend in the opposite direction usually begins. After that, it is necessary to build a new corrective level. Correction pattern – movement between minor correction levels. After such a move, the price usually moves to the key level of 61.8. 4 patterns are depending on which levels of correction the price concerns. ⚠️Even if the skills of analyzing the state of the market by Fibonacci levels will not be a big advantage in trading, then in any case it is a great (and to some extent integral) experience of technical analysis. Fibo levels can be combined with a footprint, deltas, and other tools. The trader will understand only in practice if it is possible to benefit from this or not. ❤️ Please, support our work with like & comment! ❤️
BITSTAMP:BTCUSDEducation
by SignalProvider
23
Three Steps to Become A PROFESSIONAL TRADER 👨‍💻👩‍💻 Hey traders, The road to consistently profitable trading is hard and dangerous. This path can be split into three main milestones. Each of those requires discipline, time & patience. 📚The first step is your trading education. Starting with a basic understanding of what are the financial markets & how they work and finishing with the sophisticated techniques of risk management, so many things must be learned. In the beginning you will be most likely paralyzed by the complexity of the whole system. Even the choice of a trading education provider is not that simple taking into consideration the sheer amount number sources that could be found on the internet. It is highly advisable for you to accompany your trading education with demo account trading so that you could apply what you’ve learned in practice. 💸It is imperative to invest in your education, while simultaneously saving up for your first(but not last) real trading account. Spending your money on education & then saving in order to build your first trading account, a sufficient amount of money is required. Be prepared for failures. Be prepared to blow your first and second trading account & fund it again. Be prepared that the majority of premium educational sources won't meet your expectations. I don't know any trader who succeeded in trading without investing a huge amount of money in that. 👨‍💻With the money being invested & with the knowledge gained, you must practice on a real account. You must choose the trading strategy that is appealing to you and start trading with that. Quite soon you will realize that theoretical knowledge has nothing in common with real market conditions. You will change trading strategies one after another until you finally find the one that truly makes sense to you. Then you will spend a couple of years playing with that, learning the rules & constantly polishing your trading plan. 🏁At some moment you will stop losing. At some moment your trading account will start growing steadily and you will become a consistently profitable trader. As the market conditions change constantly. You must be vigilant & learn to survive in a changing environment. Education, active investing & practice are required from you to keep being afloat. I hope that this article will help you to build realistic expectations concerning trading. If you are ready to learn a lot, invest money & practice many years not making a dime, then one day you will definitely make it. Do you agree with my thoughts? ❤️Please, support this idea with like and comment!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
38
Bites Of Trading Knowledge For New TOP Traders #5 (short read)Bites Of Trading Knowledge For New TOP Traders #5 --------------------------------------------------------------- What is the bid-ask spread? – Bid-ask spread is the amount by which the ask price exceeds the bid price for a market. The bid-ask spread is the difference between the highest price that a buyer is willing to pay and the lowest price that a seller is willing to accept. An individual looking to sell will receive the bid price while the one looking to buy will pay the ask price. A wide spread may indicate low supply or demand for a market at that point of time during the trading period, while a narrow spread would indicate sufficient supply and demand for a market meaning strong buying and selling competition is at play. What is the role of a market maker in the financial markets? – Market makers are market participants who ensure there is enough liquidity and volume of trading in the markets and offer to sell a market at the ask price and will also bid to purchase a market at the bid price to traders and investors. How does the bid-ask spread relate to liquidity of a market? – The size of the bid-ask spread from one market to another differs mainly because of the difference in liquidity of each market. Certain markets are more liquid than others and that commonly is reflected in their lower spreads. Price takers demand liquidity while market makers supply liquidity. For example, foreign currency futures would have very low spreads during the trading day given the use of currencies as a medium of exchange to do business globally compared to live cattle futures, which relates more to businesses in the United States domestic market. RISKS AND OPPORTUNITIES FOR CORPORATES AND INDIVIDUAL INVESTORS – Diversification: Futures Spreads with Currency Futures – A futures spread is usually created when one futures contract is sold simultaneously to the buying of a second related futures contract in order to capitalize on a discrepancy in price. Currency futures spreads combine the use of different currencies usually paired to the U.S. Dollar with the same contract month to express a relationship between the two currencies usually taking into account their strength or weakness relative to each other. For example, the Singapore Dollar (USDSGD) may be seen to be strengthening (price movement is downward) while the South Korean Won (USDKRW) may be seen as being very weak (price movement is upward). To take advantage of this observation, we would want to buy Singapore Dollar (sell the USDSGD future) and sell the South Korean Won (buy the USDKRW future) and as a result eliminate the U.S. Dollar. However, it must be noted that not all currencies are quoted in the same way like the Australian Dollar futures is quoted “AUDUSD”. It means then that to take advantage of a strong Australian Dollar and a weak South Korean Won quoted as “USDKRW”, an investor would need to buy both the AUDUSD future and the USDKRW future. Diversification: Portfolio Risk Using FX Futures – Individual investors taking a portfolio approach with managed futures and spot foreign exchange could be entering into emerging market currency positions including for example Hong Kong Dollar, Singapore Dollar or South Korean Won. Depending on the view of each of the currencies in the portfolio, it could be constructed to eliminate exposure to the U.S. Dollar. However, there may be a time during which investors would like to introduce U.S. Dollar exposure and they could do so by using Mini U.S. Dollar Index ® Futures with a contract value of $10,000. For example, the U.S. Dollar Index ® may be observed to be in a medium term uptrend and an investor may want to consider entering into a long position in the Mini U.S. Dollar Index ® Futures based on their strategy of choice and exit the position when either their profit target is achieved or their loss limits are triggered. TRADDICTIV · Research Team -------- Disclaimer: We do not provide investment advice, nor provide any personalized investment recommendations and/or advice in making a decision to trade. Before you start trading, please make sure you have considered your entire financial situation, including financial commitments and you understand that trading is highly speculative and that you could sustain significant losses.
ICESG:SDX1!Education
by traddictiv
SUPPORT & RESISTANCE. Explanation For Newbies👨‍🏫 ✅Support and resistance levels are the price areas on the chart where the price has ever changed its direction. This place always attracts traders, because near the levels there are obvious places for setting stop losses and entering into a deal. Also, there are always limited orders of large buyers or sellers near the levels. ❇️We can say that the level is a price area in the market where traders consider the price to be overstated or undervalued, depending on the current market dynamics. Therefore, it is always important to pay attention to the key levels at which support and resistance have reversed roles or there has been a strong rebound in the price. ⚠️What is the support level? 🟢In theory, the support level is an area below the current market price where participants will make purchases and there are high chances to keep this area under pressure from sellers. At the time of the test of the support level, prices are repelled and begin to rise, therefore, the pressure from sellers decreases, since they cannot gain a foothold under the level to continue moving down. We can say that the buyers, in this case, were stronger. 🟢As a rule, such levels can be determined in advance on price charts. These can be both daily and hourly charts. However, experienced traders identify higher time intervals as more important. For example, the support level on the daily chart will be much stronger than the support area on the five-minute timeframe. 🟢On a daily time interval, prices can test support for weeks before bears can push the price lower. On a five-minute chart, sometimes one test is enough to gain a foothold below and move to the next level. 🟢Also, with the breakout of the support level, we can state the completion of the development of the upward movement. If prices are rising, and after the test of the support level, we constantly observe a rebound and a continuation of the rise. In this case, we can talk about the continuation of the upward trend. If at some point we observe a breakout of the support level, then we can think about the end of the upward trend on the chart. ⚠️What is the resistance level? 🔴The resistance level is the opposite of the support area. If the support is below the current market price, then the resistance area is above the current market price. Thus, resistance indicates an area where the pressure from sellers is much higher than the pressure from buyers, prices are repelled and a drop occurs. Therefore, at the moment of testing a strong resistance level, prices quickly push off and begin to move in the opposite direction. 🔴With the development of a downward trend, resistance levels represent a place for conservative selling in the direction of the current trend. Recall that the basic rule is to sell on resistance and buy near the support area. Therefore, if the trend goes down, then a correction occurs, after which prices test resistance. In this case, the buyers' strength runs out and there is a decline in the direction of the current trend. ❗️The ability to correctly draw support and resistance levels is one of the basic skills that every trader should have. Levels are also the basis for trading strategies and the right risk-to-profit ratio. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by SignalProvider
15
PRICE ACTION TRADING | RISING WEDGE PATTERN 🔰 Hey traders, Rising wedge pattern is one of the most accurate price action patterns. Being relatively simple to recognize, it is applied in various trading strategies. ⭐️The pattern itself signifies the exhaustion of bulls. Even though the asset keeps growing in value, the price action legs contract forming a narrowing channel. Being stuck between two contracting trend lines, one serving as support and one serving as resistance, the price forms a wedge pattern. 🔔The trigger that we are looking for to sell the market is a bearish breakout of the support of the wedge (candle close below). To not be caught by a false breakout, it is highly recommendable to wait for a bearish violation of the last higher low level as well. Only then the wedge breakout is confirmed. ⚡️Trading the market aggressively, one opens a short position on spot just after the candle closes. ⚡️The conservative trader will wait for a retest of the broken support of the wedge though for a safer entry. ✔️Safest stop will lie strictly above the highest wick within the wedge. ✔️Initial target will be based on the closest key structure support. Learn to recognize this pattern and be disciplined to wait for its confirmed breakout. Only then a high trading performance will be achieved. What price action pattern do you want to learn in the next post? ❤️Please, support this idea with like and comment!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
122
What are candlesticks in trading and how to use them?🕯 ✅The price dynamics of an asset are displayed on the chart in different formats, including bars, lines, or candles. The latter format is most popular among traders and is often used in technical market analysis. What are candles and how to work with them? 🟢Candlesticks (Japanese candlesticks) are a graphical way of displaying price dynamics, in which vertical rectangles and lines are used. This method was invented on the rice exchanges of Japan in the 17th century, from where it got its name. A price candle consists of two main elements: 1️⃣the body is a vertical rectangle that shows the opening and closing levels of trades; 2️⃣wicks (shadows, tails) - vertical lines from above and below the body of the candle, reflecting fluctuations in value in the interval between opening and closing. ❗️The main advantage of a candle over bars and a linear chart is that it allows you to get 4 important indicators for technical analysis at once: High - the highest price for the period; Low - the lowest price for the period; Open - the opening price of the period; Close - the closing price of the period. 🔴When using a linear graph to get the same information, 4 indicators would have to be displayed on the screen at once, which is inconvenient and complicates the perception of information. At the same time, candles display the process of cost formation in a specific time interval, so the position and appearance of candles on the hourly and daily periods will differ significantly Types of candles ⚠️Two main types of candlesticks correspond to market trends: Bullish candle - formed when the closing price of the period was higher than the opening price. On the chart, such a candle is displayed in green (on b / w - white) and indicates the victory of buyers in this time. A bearish candle - is formed if the period is closed at a price lower than it was opened. On the chart, bearish candlesticks have a red color (on b / w - black) and they show that sellers are dominating at the moment. ❤️ Please, support our work with like & comment! ❤️
Education
by UnitedSignals
15
Patterns of possible market correction or reversal 📊 Trend reversal or correction chart patterns signify a reversal of the current trend on the observed chart. In a bullish trend, a reversal formation indicates a highly probable reversal and initiation of a bearish movement. In a bearish trend, a reversal patterns leaves bullish clues and indicates a highly probable bullish accumulation. No matter bullish or bullish reversal pattern is spotted, The trigger that we are looking for is a breakout of the pattern’s support/resistance. ❤️ Please, support our work with like & comment! ❤️
Education
by SignalProvider
7
Trade everything that moves. The mechanics of the position set💡 Trading on the market can be regarded as a full-fledged struggle for the right to survival, where the main enemies are two factors, infinite randomness and time. By adapting your positions to what is happening, you risk becoming that very accident and you can only fight with time. The mechanics of the position set includes a theory about the direction of the price. Directivity theory The essence lies in the continuous direction of the price when the distance from the selected zone is inevitable. It is important to highlight the level and work as soon as the price reaches these values. How is the usual set of positions made Opening a position in a certain direction, as soon as the price goes against the desired forecast, closing with a stop loss, abandoning the transaction, searching for a new entry point, and trying to predict the direction, is an extremely difficult task. An example of a set of positions taking into account the theory of price orientation and risk control R The mechanics of position recruitment are based on clear and simple principles of operation, flexible thinking, quick adaptation to market sentiment. If you start to apply these mechanics in practice, you will notice how at first glance simple things are difficult to do the practice. There will be a feeling that nothing will work, there is no logical explanation for this, eventually, everything will be lost and a big chaotic high-speed car will crush you. This is the basic principle, as long as the market is such, you have very little chance of the death of capital. While large funds, investors, and someone else is fighting among themselves for huge movements, we do not necessarily have to accept their rules of the game and play on their territory in predicting the general and long-term direction of the market. You should think with your head and look for benefits primarily for yourself, taking into account all the nuances of what is happening. But how to be flexible? Constantly turning over a position is completely unprofitable, in the final execution, losses exceed the target profit. It is not at all clear where and when to put stops, overturns, and takeaways. This is where the risk control system R will help us She kicks down the door, breaks into our strategy, and, as the most important puzzle, falls into its rightful place! From my experience, the optimal risk per trade for a beginner is $10 With a smaller volume, there will simply be no motivation to work. But it is worth remembering that the deposit should not be extremely small, as it will not withstand a series of unsuccessful transactions For example, if the deposit is $100, 1R= $10, the power reserve is 10 stops, this is extremely small But with $ 400, you can already try, since the probability of getting 40 stops in a row is extremely small Example of risk calculation for a $1000 deposit The risk is reasonably low R=$10 Power reserve 1000/10=100 100 stops I recommend having a power reserve for the 200R series, from practice I can say that for training and the first results will be enough. All calculations are carried out without taking into account the commission A few tips for improving efficiency: - Do not risk your funds in vain, TradingView provides an excellent opportunity for paper trading (demo) completely free of charge, where you can try out any of your ideas and strategies. - Search for highly volatile tools and work with them. - Analyze the broker (exchange) for conditions, commissions play a particularly important role, pay attention and look for more favorable conditions. - Before you start trading, you should have a clear action plan, the most important component of which should be a risk control system. - Your stop should be tied only to the mathematical component of the transaction. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by UnitedSignals
15
CANDLESTICK PATTERNS BASICS | Engulfing Candle 📚 Hey traders, In this educational post, I want to discuss with you one of the most accurate REVERSAL candlestick patterns - the engulfing candle. On EURUSD chart, I spotted for you bullish & bearish examples of this pattern. The logic behind this pattern is quite simple: ⭐️In a bullish trend, after a strong directional movement, the price reaches some important structure level. Growing steadily and forming a sequence of green bullish candles the price suddenly forms a strong bearish candle. What is particular about that candle is the fact that its total range (distance from the wick high to wick low) & body range (distance from body open to body close) exceed the ranges of a previous bullish candle. 🔻Such a candle we will call a bearish engulfing candle. Most of the time it signifies a strong spike in selling volumes and willingness of sellers to push. With a high probability, such a formation leads to a pullback or even a trend reversal. ⭐️In a bearish trend, after a strong short rally, the price reaches some demand cluster. Instead of breaking that and going lower, the price forms a strong bullish candle. That candle engulfs the range of the previous bearish candle & its body size exceeds the size of the previous candle. 🟢Such a candle we will call a bullish engulfing candle. Quite often such a formation leads to a pullback or even a trend reversal. 🔔And there is just one single tip that will dramatically increase your performance trading the engulfing candle: It is recommended to rely on this pattern ONLY IF it is formed on a key level: ❗️Bullish engulfing candle must strictly form on a strong support. ❗️Bearish engulfing candle must strictly form on a strong resistance. Forming beyond key levels, the pattern occasionally will give false signals. ⏳Preferable time frames to trade engulfing candles are daily/4h. Learn to spot this pattern & you will see how efficient it is. What candlestick patterns do you want to learn in the next posts? ❤️Please, support this post with like and comment!❤️
Education
by VasilyTrader
28
DIVERGENCE IS CONVERGENCE ✅There are several main ways to work on the stock exchange in trading. Technical analysis, for example, is recognized as effective and is used by almost all market participants. But the disputes about indicator analysis do not stop for a long time. Some traders talk about the backwardness of the method because trading operations are performed faster every day. Others build successful strategies based on one or more indicators. Still, others combine two methods to find successful market entries and get an effective tool for making money on the stock exchange. Divergence is often used for this, which will be discussed below. 🔴What is divergence Divergence is one of the strongest signals that indicator analysis can demonstrate. To obtain it, one of the possible oscillators is used. The divergence conditions are that the curve of the price chart diverges from the indicator data. For example, with an uptrend, the price continues to move up, while the oscillator shows a decrease in the interest of the main participants of the trading system. In this case, we should expect a change in the direction of the price. Such a change does not always mean a new trend. Sometimes it can be a normal correction or price fluctuation. To determine the exact forecast, the methods of technical analysis of divergence are used. The result largely depends on the timeframe, sometimes on the support and resistance levels. ⚠️There is also an opposite process — convergence when the price of an asset decreases, and the indicator shows growth. This process is called convergence. Both signals are used in the Forex market, but they are known collectively as "divergence". There are bullish and bearish divergences in the Forex market. In addition, divergence is divided into three types: 1️⃣Classic divergence. 2️⃣Hidden divergence. 3️⃣Extended divergence. ❗️To successfully trade currency pairs on Forex, taking into account divergence, you need to learn how to correctly read information from the market. A combination of indicators and fundamentals of technical analysis will help in this. Divergence plays an important role, so its indicators cannot be ignored. ❤️ Please, support our work with like & comment! ❤️
BITFINEX:BTCUSDEducation
by SignalProvider
15
Trend Reversal Patterns📈📉 1️⃣ Pattern head and shoulders After the pattern has become visible, namely, the right shoulder is visible, the trader needs to wait for the breakout of the neckline. Breakouts occur on strong impulses with a sharp increase in volume. Therefore, in order not to miss the entry and enter at the best price, it is better to use a sell stop order. To calculate where the price will go after the breakout of the pattern, it is enough to measure the height of the pattern (vertically from the maximum of the head to the neckline) and postpone it until the breakout point. 2️⃣ Inverted head and shoulders pattern Occurs in a downtrend and foreshadows an uptrend. The rules for working on a figure are similar to the previous ones. It should be noted that "head and shoulders" in its pure form is very rare. Be careful! 3️⃣ Double Bottom Pattern After you have identified the pattern on the price chart, you need to wait for the breakout of its resistance line. If the price has broken through the resistance, then the target will be the width of the pattern's range - the distance from the lowest point to the resistance. 4️⃣ Double Top pattern A double top is like a double bottom. The only difference is that this pattern is reversed and occurs in uptrends. The number of extrema in a pattern can be not only double, but also triple. But the rules of work will be the same for everyone - enter the breakout, postpone the target to the height of the figure and wait for it to be fulfilled. 5️⃣ Diamond We measure the height and wait for the breakdown. If there is a breakout, then the target of the price movement will be the height of the pattern from the breakout point. 6️⃣ Cup and handle Trades are opened when the "handle" is broken upwards. The target is the height of the formation. ❤️ Please, support our work with like & comment! ❤️
BITSTAMP:BTCUSDEducation
by UnitedSignals
11
Trading Basics | Your Main Trading Time Frame ⏳ Hey traders, You frequently ask me what is the most important time frame to analyze and follow. And even though I must admit that multiple time frames must be taken into consideration for successful trading like weekly/daily/4h/1h. Among them, there is the one that is universally considered to be principal. That is a daily time frame. There are a lot of reasons why so many traders rely on a daily time frame: 1️⃣ - Daily time frame shows a global market trend at the same time reflecting a mid-term and short-term perspective letting the trader catch trend following moves and spot early reversal signs. 2️⃣ - Covering multiple perspectives, daily time frame is the foundation of the majority of the trading strategies being the main source of key levels & pattern analysis. 3️⃣ - Daily time filters out news events that happened during the trading day. It shows the composite reaction of the market participants to all the data posted in the economic calendar. 4️⃣ - Daily time frame reflects all trading sessions. Within one single candle, we see the outcome of the Asian, London, and New York Sessions. 5️⃣ - Daily candle filters out all the noise from lower time frames & intraday price fluctuations and sudden spikes & rejections. 6️⃣ - Covering all the trading sessions, daily time frame mirrors the activities of big players like hedge funds and banks. Showing us the flow & direction of big money. ⚠️Being so important for analysis, do not neglect other time frames. The most accurate trading decision can be made only relying on a combination of intraday and daily time frames. What is your favorite time frame to trade? ❤️Please, support this idea with like and comment!❤️
OANDA:XAUUSDEducation
by VasilyTrader
26
Keep your schedules in order Keep your schedules tidy and clean. Focus on understanding and feeling the market, not clouding your judgment with indicators! When people send me their screenshots of technical analysis, sometimes it happens that I have a hard time understanding them. Such graphs are in complete disarray and cause confusion and frustration. Tip: after you have used the indicator, remove/hide it from your chart. Keep only what is relevant. Do you keep your charts clean? ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSD
by SignalProvider
6
Stop loss is your enemy? One of the most common misconceptions in trading is that your STOP LOSS is your ENEMY. But in fact, the opposite is true. Stop loss is your best friend There will always be losing trades because they are part of the trading system. You cannot avoid them, but you can CONTROL the losses. Stop Loss is a defense mechanism designed to get you out of the market at the PRESERVED PRICE and LOSS that you planned. Exiting a stop loss certainly doesn't make you a bad trader. When a trade goes against you, you are the most vulnerable in terms of irrationality and emotional instability. SL (Stop Loss) exists to get you out of the market safely and securely before your emotions get the better of you and further damage your account balance. Most newcomers to the market make the same mistakes ... Always increase the SL size, add more positions at a loss, and risk most of their accounts for a few trades. Always adhere to 1-3% RISK PER TRANSACTION. The key to the game is longevity. By understanding that your SL is your savior, you can release the emotional tension of a losing trade and instead maintain maximum clarity on your charts to quickly move away from PRE-CALCULATED losses as a simple part of the process. With the right RISK / PROFIT RATIO and adherence to the RISK principles of 1-3%, you can get more losing trades than profitable ones, but at the same time remain a profitable trader 💰 Your worst feeling is greed. Keep your losses minimal and you will quickly find that your trading will improve tenfold by simply exiting the market when it no longer matches your preconceptions and plans. ❤️ Please, support our work with like & comment! ❤️
Education
by UnitedSignals
9
RISK MANAGEMENT + PATIENCE = SUCCESS Hello everyone! In this idea, I will try to warn you against the wrong approach to trading. As you know, 95% of retail traders hold their losing positions for too long in the market, but at the same time cut profits before the trade reaches its potential. That is, a trader, being in unprofitable positions, is ready to sit out huge drawdowns -50% ..- 70% ..- 100% of the deposit, but at the same time, with a profitable trade, he is ready to close the profit with a yield of + 1% with trembling hands. It is a common trait of a retail trader to be constantly at war with the market. The fastest way to drain your deposit is to fight against trades that are going against you. 95% of traders fall into the trap by increasing their stop loss on an open trade or, even worse, adding even more positions to a trade that goes against them, sincerely hoping that the market is about to turn around and go in their direction. Successful traders do the opposite. Taking the risk per trade of 1-2%, they minimize their losses in unprofitable scenarios by closing by stop loss. But in the case of profitable trades, they take MORE profit than they initially risk. In this case, a profitable trader may have more losing trades than positive ones, but he will still be in profit. Take the emotion out of your trade and let price hit your stop loss where you set it. Thus, your losses do not exceed the threshold of the planned risk, allowing your profitable positions (with a good risk: reward ratio) to override any that did not work in your favor. Cut your losses and let your profits grow ❤️ Please, support our work with like & comment! ❤️
Education
by SignalProvider
9
KNOW WHEN TO STOP TRADING🛑 A trader who is in a bad mood should think about taking a break. The easiest way to determine when a BREAK from trading is needed is to first assess your current emotional state and performance. - Do you constantly close the trades couple of seconds/minutes after you opened them, chaning your mind? - Do you spend all day "burning" your eyes, watching charts to find patterns just for the sake of making money fast? - Are you deviating from your trading plan? - Are you taking more risks than usual? If you answered "YES" to at least one of these questions, then it's time to stop. Always let the market give you the conditions for trading. Build your analysis = Follow your trading plan & strategy and let the market do what it needs to do. Never get into the market at random or into the first pattern you come across. You will often notice that the pattern is not the best trading condition. When you find yourself violating strict risk management and trading plan, take a step back and understand what may be causing your irrational decision-making. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by UnitedSignals
13
Bites Of Trading Knowledge For New TOP Traders #4 (short read)Bites Of Trading Knowledge For New TOP Traders #4 --------------------------------------------------------------- What is the role of a financial custodian? – A custodian or custodian bank is a financial institution that holds customers’ securities for safekeeping to prevent them from being stolen or lost. Custodians are responsible for the safety of assets and securities and provide services that include trade settlement, investing cash balances as directed, collecting income, processing corporate actions, providing valuation of securities positions, and providing recordkeeping and reporting services. What is the role of a financial exchange? – An exchange is a marketplace where securities, commodities, derivatives and other financial instruments are traded. The core function of an exchange is to ensure fair and orderly trading and the efficient dissemination of price information for any financial instrument trading on that exchange. What is the role of financial regulators? – A regulator authorizes, supervises and regulates, financial institutions operating in a country to ensure the soundness of the overall banking and financial system. This supervision enables financial institutions to operate and provide efficient banking and financial services. RISKS AND OPPORTUNITIES FOR CORPORATES AND INDIVIDUAL INVESTORS – Portfolio Diversification – Portfolio diversification is the process of investing your money in different asset classes and securities in order to minimize the overall risk of the portfolio. For both corporate and individual investors, having access to markets that enable the building of a diversified portfolio is an important consideration when managing futures focused accounts. Similar to managing risk, the market to trade would be a key variable to clearly state and support with reasons for trading or investing. Reasons for selecting one market over another could include price volatility, liquidity, daily volume traded, size of the minimum price increment, and value of the minimum price increment. Comparing these variables between markets will help decide the suitability and/or risk of each. For example, the parameters for a price driven strategy may be designed to be applied to any market whether it be index equity futures or forex futures. However, the signals for entry may not always trigger if a trader were just to focus on a single index equity futures such as the Micro MSCI USA Index futures. Having access to other futures markets to apply the strategy to allow for the creation of a diversified portfolio with varying entry and exit points or the ability for more trading oriented investors increased opportunities to execute price driven strategies more often across a range of futures markets. TRADDICTIV · Research Team -------- Disclaimer: We do not provide investment advice, nor provide any personalized investment recommendations and/or advice in making a decision to trade. Before you start trading, please make sure you have considered your entire financial situation, including financial commitments and you understand that trading is highly speculative and that you could sustain significant losses.
ICESG:SDX1!Education
by traddictiv
Bites Of Trading Knowledge For New TOP Traders #3 (short read)Bites Of Trading Knowledge For New TOP Traders #3 --------------------------------------------------------------- What is liquidity and what is its significance? – Liquidity refers to the availability of a product and ensures market participants have the ability to buy and sell easily. A liquid market increases the likelihood for finding a counterparty when entering or exiting a trade. What is volume a measurement of in trading? – Volume in trading refers to the total number of contracts exchanged between buyers and sellers of a market during trading hours over a given period. Higher trading volumes are considered more positive than lower trading volumes because they indicate the availability of orders in the market allowing better order execution during the trading session. What is open interest in the derivatives market? – Open interest is the total number of outstanding derivative contracts, such as options or futures that have not been settled for an asset. Open interest equals the total number of bought or sold contracts, not the total of both added together. Increasing open interest represents new or additional money coming into the market while decreasing open interest indicates money flowing out of the market. RISKS AND OPPORTUNITIES FOR CORPORATES AND INDIVIDUAL INVESTORS – Position and Risk Management – Risk management is the responsibility of market participants designed to limit risk exposures that specifically applies to the participants financial profile in the market. The financial profile of a participant may include their role in the financial market or the amount of capital under their responsibility to be managed in the market, and therefore the risk variables that each would need to identify may be unique. For both corporate and individual investors, the market to trade would be a key variable to clearly state and support with reasons for trading or investing. Reasons for selecting one market over another could include price volatility, liquidity, daily volume traded, size of the minimum price increment, and value of the minimum price increment. Comparing these variables between markets will help decide the suitability and/or risk of each. For example, if bitcoin (BTC) moves around 1,000 points per day and each point is worth $1, a trader might experience a $1,000 fluctuation in their account balance for one day. Another example is the U.S Dollar / Singapore Dollar (USDSGD), which could move 70 pips or more per day and trading a standard lot size with each pip worth $10, a $700 fluctuation could be expected for one day. Market participants may also manage their risk through the size of their positions. The larger their position size, the greater is their exposure and the smaller their position size their exposure is lower. Investors should determine the risk that would result from various position sizes and select the size that ensures that their risk limit is not exceeded. Finally, setting stops with a specified loss amount provides protection if the market does not move in the desired direction. It helps to prevent creating a loss scenario which is larger than an account can handle. TRADDICTIV · Research Team -------- Disclaimer: We do not provide investment advice, nor provide any personalized investment recommendations and/or advice in making a decision to trade. Before you start trading, please make sure you have considered your entire financial situation, including financial commitments and you understand that trading is highly speculative and that you could sustain significant losses.
ICESG:BMC1!Education
by traddictiv
Bites Of Trading Knowledge For New TOP Traders #2 (short read)Bites Of Trading Knowledge For New TOP Traders #2 --------------------------------------------------------------- What is the Notional Value of a Futures Contract? – Notional value of a futures contract is how much total value the contract theoretically controls. Contract Size * Underlying Price = Notional Value. Bakkt ® Bitcoin (USD) Cash Settled Monthly Futures (BMC) for example has a contract size of 1 bitcoin and assuming the BMC price is $60,000.00, the notional value of the futures contract is $60,000.00. What is the difference between Margin and Leverage? – Margin is the amount of money deposited with the broker to control a futures contract. It is determined by the futures exchange and maybe adjusted by the broker to manage risk to their clients. Leverage is the ability to use less money to theoretically control 1 futures contract compared with buying the product underlying the contract outright which amounts to the notional value of the futures contract. To calculate how much leverage a futures contract gives, divide the notional value of the contract by the margin. The BMC example above had a notional value of $60,000.00 and with a margin requirement of $18,000.00, is equal to approximately three times leverage on our money ($60,000.00 / $18,000.00 = 3.33). What is a Point and a Tick? – Point is the smallest price increment that can occur on the left side of the decimal point. (Example. 90.000) Tick is the price movement that occurs on the right side of the decimal when looking at the price of a futures contract and is the smallest possible price change measured by markets. A Point is composed of Ticks. (Example. 90.000) Mini US Dollar Index® Futures (SDX) has a minimum price fluctuation of $0.005 representing one tick and would move from 90.000 to 90.005. It takes 200 ticks to make one point or a move from 90.000 to 91.000. Risks and opportunities for corporates and individual investors: HEDGING PORTFOLIO RISK – Hedging bitcoin exposure with the Bakkt ® Bitcoin (USD) Cash Settled Monthly Futures (BMC) contract is a way to manage portfolio risk by taking a directional position opposite to the underlying asset as protection. For example, a hedger may have plans to hedge downward price movement in bitcoin using futures contracts based on in-house market and portfolio analytical processes. The market analysis may use common technical analytical techniques such as support and resistance to formulate the trade decision. In the chart (Figure 1), if bitcoin is expected to weaken as it nears the resistance areas, the hedger may plan to enter into a short futures position using the Bakkt ® Bitcoin (USD) Cash Settled Monthly Futures contract under either price levels of $46,000 or $52,000 to lock in the value of their underlying bitcoin position. TRADDICTIV · Research Team -------- Disclaimer: We do not provide investment advice, nor provide any personalized investment recommendations and/or advice in making a decision to trade. Before you start trading, please make sure you have considered your entire financial situation, including financial commitments and you understand that trading is highly speculative and that you could sustain significant losses.
ICESG:BMC1!Education
by traddictiv
Bites Of Trading Knowledge For New TOP Traders #1 (short read)Bites Of Trading Knowledge For New TOP Traders #1 --------------------------------------------------------------- What is Hedging? – Hedging is the action taken through the use of a financial instrument to minimize the loss or risk of the loss of value of an asset due to adverse asset price movements. Who are Hedgers? – Hedgers are market participants such as commodity producers who want to lock in selling prices of commodities they produce, or food manufacturers who want to lock in buying prices of raw materials purchased. Market participants also include financial institutions handling financial assets and use derivative products such as futures to manage the risk of a portfolio of financial assets. What is the difference between Physically Delivered vs Cash Settled Futures Contracts? – Physical delivery is a term in a futures contract which requires the actual underlying asset to be “physically delivered” upon the specified delivery date, rather than being cash-settled. Cash settled futures on the other hand allows for the net cash amount to be paid or received on the settlement date of the futures contract. Futures exchanges may offer both types of contracts to market participants who have different purposes for trading futures contracts. Risks and opportunities for corporates and individual investors: HEDGING – Hedging currency exposure with the Mini U.S. Dollar Index ® futures contract is a way to manage business currency risk by taking a directional position depending on business requirements for conversions to or from the U.S. Dollar. For example, a hedger may have expected the U.S. Dollar to weaken from 93.50 on 31st March (based on an analysis involving the overall downward trend in the market having retraced to the Fibonacci retracement level 76.8%) and may have had plans to convert U.S. Dollars to Singapore Dollars over the coming months to make payments to suppliers in Singapore Dollars. The hedger could have opened a short position using the Mini U.S. Dollar Index ® futures contract at or around 93.50 to lock in the value of the U.S. Dollars that they planned to use in the future at the time of payment to the supplier. TRADDICTIV · Research Team -------- Disclaimer: We do not provide investment advice, nor provide any personalized investment recommendations and/or advice in making a decision to trade. Before you start trading, please make sure you have considered your entire financial situation, including financial commitments and you understand that trading is highly speculative and that you could sustain significant losses.
ICESG:SDX1!Education
by traddictiv
TRADING HIERARCHY | KNOW WHAT MATTERS THE MOST ⚠️❗ Hey traders, I vividly remember how I started to trade 8 years ago, how I was learning, and the things that I was doing. Contemplating my old self, I notice a dramatic shift in my mindset in regards to trading. Staring at the charts and desiring to make money on price action, I wanted to become a consistently profitable trader. Making the priorities, I decided to sacrifice my time on studying technical analysis totally neglecting trading psychology and risk management. Learning different trading strategies I always came to the same result: the account went blown and nothing seemed to work. Strategies of fancy traders on YouTube, strategies from best-selling books on Amazon, nothing could produce any penny. Not giving up and pursuing my ultimate goal I came to the conclusion that I set my priorities absolutely incorrectly. To be honest, I always thought that trading psychology (like psychology in general) is s*cks. Moreover, I considered risk management to be kind of obvious, banal topic not deserving much attention. Learning risk management techniques, applying them in day trading I finally saw a glimmer of hope. Reading dozen of books on trading psychology, contemplating my mistakes, and observing my behavior I noticed so many wrong, incorrect things that I did on a daily basis. With time and practice, my mindset shifted. I realized that most of the strategies that I applied and that seemed losing to me, in fact, were decent. It turned out that mastery of technical analysis is not enough for profitable trading. Instead, that is just a tiny part of what must be learned. Now, when my students ask me about the most important things to learn & study in trading, I always say: trading psychology and risk management go first, technical analysis is the secondary. ❗ Do not neglect these topics and give them due attention. They are an essential part of your success in trading. 🤔 Do you agree with the pyramid that I drew? ❤️Please, support this idea with like and comment!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
44