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Direction Easy✔️ Timing Hard ❌Hi Traders, I think the analysis part of trading is the easy bit. By that I mean most traders usually have the correct direction in mind but timing is difficult. AUDJPY is a classic example. The analysis was simple. Price broke about daily resistance, retested it and I was looking for continuation. I entered the trade but price came back and took me out for a breakeven. Then, it continued it same direction I expected it to. Personally, I prefer to preserve my capital by going breakeven once in good profit and I do not even confident re-entering a trade if price retraces so sharp and took me out the trade. 1. How soon do you place your trade at breakeven once it is in profit? 2. Do you re-enter a trade is it took you out at breakeven and show signs of following your original trade idea? Comment below.
Education
by UnknownUnicorn8360477
2% Max LossMoney Man has not seen the need to adjust his levels as he still stands with his original idea that ETH needs to break a pattern, clear as day on the chart, to get buyers over the fatigue. The short term trendlines are telling us this and has proven themselves as guiding pattern formation. Logic thus would change the top of Decision 1 and bottom of Decision 2 to keep these lines inside it as we go. So, he is taking this time to expand more on his ideas around risk. We all have heard about the Kelly Criterion, but also about the 2% rule (cap your losses at 2% of total allocation – the total you have allocated to trade in a particular instrument like ETH). He would classify the Kelly Criterion as an advanced risk management tool, hard to pin down within so much variance that a market has. Advanced, you say? Then that must be what a new trader should use! Not so fast. New and even older hands typically calculate their acceptable risk before admitting defeat on a trade, via back testing. Here lies the rub as more important than; the “past results do not guarantee future results” understanding – there is the lack of experience in relation to their own emotional tolerance to red. You know: the old “close winners fast and let loser run” outcome. Money Man has written about the well-known break-even parabolic horizon a long time ago and link that below. He mused then that that parabola is what sinks even brick and mortar businesses. Now he wants to give his thoughts on the 2% (used in this explanation – but could be more or less) risk to total allocation. There is another parabola hidden here (in red) and finding your sweet spot is the goal. So, your sweet spot would depend on your tolerance to loss (percentage) and its relationship to the chart / price action (distance on chart in percentage). Many traders simply trade with their whole allocation and thus sit at the far left grey bar (100% of allocation in) and far left of the parabola, forced into a 2% below entry price stop loss placement. The other extreme is a trader who only uses 2% of their allocation on any trade to trade with and have no need for a stop loss if they believe in the 2% rule. There is the option to adhere to the 2% rule and adjust your position size according to where you would like to put your stop loss. The graph above tries to give a quick reference rule of thumb and illustrates how the distance of your stop loss parabolically grows the smaller your position size. Back of an envelope math but soothing to the adrenal glands if you can find your own sweet spot. Where does the whole 2% rule come from? Money Man does not know for sure but knows that it has been around for a long time and has thus been discussed and “peer reviewed” extensively. Also, and more importantly, it speaks to another reality in the antifragility of staking your options in your favour while keeping your risks in check – an advantage you can still reap even if the percentage is too low for your liking. The reason for including it is that it could be a bridge between “betting 100% on every trade” and having a very well-developed dynamic trade size to stop loss placement distance dependent on market conditions. Please double check the math that went into the above graph before use. Remember there are no guarantees, only probabilities. Very Important to me: Please like if you appreciate the effort, Please comment and develop this further and Please follow if you see this analysis thread going somewhere you would like to know about.
BITSTAMP:ETHUSDEducation
by Rule72
3
11 Rules for the Ordinary Trader Through your trading carrier, you will learn to develop your own paths and ways to become successful in your own way, but there are many things that will give you a boost of knowledge in your trading carrier. Down bellow lists 11 different rules I have gathered from many sources. Rule 1: Price has memory. What happened the last time a stock hit a certain level? Chances are it will happen again. Watch trades closely when price returns to a battleground. The prior action can predict the future. Rule 2: Profit and discomfort stand side by side. Find the setup that scares you the most. That’s the one you need to trade. Don’t expect it to feel good until you take your profit. If it did, everyone else would be trading it. Wisdom from the East: What at first brings pleasure in the end gives only pain, but what at first causes pain ends up in great pleasure. Rule 3: Stand apart from the crowd at all times. Trade ahead, behind or contrary to the crowd. Be the first in and out of the profit door. Your job is to take their money before they take yours. Be ready to pounce on ill-advised decisions, poor judgment and bad timing. Your success depends on the misfortune of others. Rule 4: Buy at support. Sell at resistance. Trend has only two choices upon reaching a barrier: Continue forward or reverse. Get it right and start counting your money. Rule 5: Manage time as efficiently as price. Time is money in the markets. Profit relates to the amount of time set aside for analysis. Know your holding period for every trade. And watch the clock to become a market survivor. Rule 6: Don’t confuse execution with opportunity. Save Donkey Kong for the weekend. Pretty colors and fast fingers don’t make successful careers. Understanding price behavior and market mechanics does. Learn what a good trade looks like before falling in love with the software. Rule 7: Control risk before seeking reward. Wear your market chastity belt at all times. Attention to profit is a sign of immaturity, while attention to loss is a sign of experience. The markets have no intention of offering money to those who do not earn it. Rule 8: Big losses rarely come without warning. You have no one to blame but yourself. The chart told you to leave, the news told you to leave and your mother told you to leave. Learn to visualize trouble and head for safety with only a few bars of information. Rule 9 : Enter in mild times, exit in wild times. The big move hides beyond the extremes of price congestion. Don’t count on the agitated crowd for your trading signals. It’s usually way too late by the time they act. Rule 10: Perfect patterns carry the greatest risk for failure. Demand bruises on your trade setups. Market mechanics work to defeat the majority when everyone sees the same thing at the same time. When perfection appears, look for the failure signal. Rule 11: See the exit door before the trade. Assume the market will reverse the minute you get filled. You’re in very big trouble when it’s a long way to the door. Never toss a coin in the fountain and hope your dreams will come true. Yours truly, Jacob Schildcrout **Note, I dont take credit for these rules, these have been gathered from sources for your convenience***
COINBASE:ETCUSDEducation
by JacobSchildcrout
3
3x ETF SOXL vs other 1x semi ETFs over various time horizonsI compare SOXL returns with SOXX, SMH, and PSI, all ETFs in the semiconductor space. CONCLUSIONS AND FINDINGS: YTD 2021 SOXL has not provided any net benefit over it's peers. And if you use stop loss orders you've probably lost money on it due to its extreme volatility. Smaller quant ETF fund PSI is the better performer on most/all time horizons YTD or more recent, especially from a risk/reward perspective. Only when comparing SOXL against the others on a time horizon of 1 yr or longer does SOXL outperform it's peers. Importantly however, charts mimic real life only to the extent we make the purchase the entire position at once and don't touch it over the entire time frame. But this is not what most traders do. Thus, I recommend holding SOXL only if you're going to buy it and not set any stop loss orders, touch it, trade it, or even look at it for a year or more. But you probably can't handle that. I can't either. Thus the better, more realistic strategy for most traders is to get PSI or one of the other primary ETFs covering this space.
NASDAQ:SMHEducation
by theagileagent
How to Trade Price Action Daily!Hello Fellow Traders, Here is a Educational Video (How to Trade Impulse/Correction/Impulse) . Key things to Remember: When Trading This Type Of method - You Should Always have an Open mind when it comes to "Where the Market will Finish The correction" The Strongest Levels of Fibonacci is the 61.8 & 38.2 (These Are Generally the levels that the Market Loves to Finish its correction) The Best way to follow This Method is if the following conditions apply. Conditions - 1. Look & Find a Big Impulse On bigger Timeframes (Weekly, Daily or 4Hours) 2. Wait for The Market to Finish its Impulse (You will notice the market starts to move the opposite direction to the original Impulse) 3. Pull Your Fibonacci From The Start Of the Impulse to the End of the Impulse Aka ( From high to low = Sell OR Low to High= Buy) 4. Be Patient and wait for the Market to Reach the Aka Strong Levels (61.8 Or 32.8) OR Which Ever is Better Align With Good Structure! 5. Once you Have a smaller Timeframe break of structure or Momentum Change (You will look for an Entry Based on Market Environment + Structure) 6. Enter Your Trade Preferably of 1hOur Or 4hour Timeframe (whichever has given confirmation mentioned in point 4) 7. Always Use Risk Management / 1% Risk to Trade Entries using this Method 8. Patience is the Key to Success! Let Me know if you have any Questions or Comments Below! Your Support Is Appreciated! Happy Trading & Goodluck! See You in the Next Educational Video! Global Fx Education
Education
by Global_Fx
The importance of intelligence to tradingINTELLECTUAL QUOTIENT The one we hear the most nonsense about and for 1 legit piece of info there are 500 TB of crap. People are super insecure about this. Even in investing circles, where individuals are at or above average, still insecure. Academics using Finnish data (because at 19-20 men have to pass an IQ test for the military) found that 25% top IQ (IQ > 110) make up 50% of market participants 25% bot IQ (IQ < 90) make up 9% of market participants So virtually everyone reading this should be average or above, and I don't do simple magical indicators so that probably adds another filter. Academics looked at tech stocks on the Helsinki stock exchange and found that in the sample period 1/1995-11/2002 the annualized returns (dividends etc included) were: - For the 42% with the lowest IQ 9.52%. The 1rst to 4rth stanine. IQ <96. I'll call them INT 1-4. - For the 4% with the highest IQ 14.45%. The 9th stanine. IQ > 126. I'll call them INT 9. A significant difference. Remember the vast majority are passive investors that just follow the market as a whole. Imagine 1/3 of a country invests, they have a separate life they're not all active. Much of the difference in performance - which is monotonously correlated with IQ - comes from lower IQ individuals joining at the wrong time. But even when ignoring the timing, and looking at returns as if they all joined equally over time (by adding weights to the data) scientists found that INT 9 (IQ > 126) returned 14.84% and INT 1-4 (IQ < 96) returned 12.65%. So not only wrong timing but also wrong stock selection. I am guessing they regrouped 1-4 to not humiliate people with intellectual disability (INT 1)? Sources: papers.ssrn.com papers.ssrn.com Proven by science, all the big liars saying it does not matter are big liars trying to be liked. About market timing. There is a clear pattern, it just jumps at you. Page 61 of IQ, Trading Behavior, and Performance you can see for yourself so I'll keep it short: Basically like it or not, people with an IQ over 105 (37% of the population), which already is the majority of market participants, are the ones buying during the bull market, and the average and below all rush in when prices start to go parabolic, making them go even more parabolic, smart people step away, and 1-5s hold the bag and keep buying when the price is clearly in a bear market (poor pattern recognition). To all the people that joined crypto in 2017 and are going "oh no not me": The Finnish data set only looks at men over 20. And the vast majority of those are well over 30. They had more than enough time to earn some money, hear about stocks, and get into investing. The European demographic pyramid is really terrible. And of course older people invest more than broke young people that study or barely started to work. People get into investing in waves. The tech bubble was when plenty of 20 yos (back then) got in. I didn't know I could invest by myself before 2017. All of us 20-30s are just a tiny minority that makes no difference stat-wise compared to the vast number of middle aged workers and retirees. For my defense I entered at the top, during the parabola but I was not a permabull, all the bagholding 1-5s were laughing at me for being bearish... I like it here, how it is now. If Bitcoin goes vertical to over 100K the 25% at the bottom will start to appear again. And start arguing. And making circular logic. And screaming. And sending threats. Oh boy. INT 6 represents 17% of the general pop & in this data 23-24% of market participants, INT 7-9 23% of the general pop is 36-37% of market participants. You know, even today after they lowered the level drastically, only 1/3 of people completes college education (or equivalent for us French), and they're not 1-4s. Seems obvious to me that someone that struggles with a division won't be making money in the markets, do people think this is manual labor? But whatever, as I said, IQ matters because these 4 things matter: 1. Pattern Recognition: The ability to understand the world through analogies. Predicting a crash because many elements are similar to the previous crash is not very different to looking at a bunch of dominos in an IQ test and guessing which one is next in the list. 2. Numbers skills: being able to quickly calculate risk, volatility, as well as understand probabilities. Good way to avoid holding a bag and waking up "Oh what? How am I down 75%? Didn't see that coming". You have to see that coming. You need to know how much you'll make or lose if the price goes up/down by x percent, how likely it is to happen using implied volatility, and much more. 3. Planning & Problem Solving: NEW problems. Not "learn by heart your school lesson" problems. Parrots and college professors do not make great traders. Learning by heart is useless. Every time it's different. "This time it's different". You can mix this with pattern recognition and it becomes obvious where I'm getting at: dumb money ALWAYS goes "this time it's different". You should be able to adapt to new variables, solve new problems, and be able to recognize how NOT different they are. All snowflakes are different. This is literally IQ at its finest and nothing more. You either see the "different" pattern of dominos and can solve the problem or you don't have the IQ and simply do not see it (and insult people that do see it call them stupid and conspiracy theorists). 4. Dealing with a lot of info: being able to analyse much information, while ignoring distractions. Academics that looked at data unsurprisingly found that higher IQ individuals had more diversified portfolios. And also, higher IQ individuals are able to analyse more data as well as ignore distractions (according to a BBC article). How to increase my IQ? There is a way. Only 1 way I know of: "Scientists found that multitasking reduced men IQ by 15 points, lowering them to the level of an 8 year old". I am certain it's not like this for women, prob just reduces it by 5 points or something, or maybe 0 idk. We men tunnel vision. So ye just focus on 1 goal only and get good at it. This "multitasking" will make you a complete noob. Literally an 8 year old to be more precise :D. Women have same average IQ as men also. I don't really know what the differences are for investing, probably not much. They're probably better at being organised too. That's just... so bad for me you have no idea. What a mess. Obviously it's also possible to learn about numbers and improve at it... And one learns to recognize snowflakes by studying plenty of snowflakes, regardless of his abilities (just will be easier for someone who scores higher that's all). EMOTIONAL QUOTIENT Why do I write so much? Good thing there is very little research about this, so not much to say. First, no, women do not score higher (in IQ either btw). Just because there is the word "emotional" in it people assume silly things. It's just a word. Irrelevant. So I'm calling it brzbjfbrhdjf from here on. These are pretty self-explanatory honestly. People with high brzbjfbrhdjf perform better than people with low brzbjfbrhdjf. There are exceptions. I found that people with LOW empathy made better debt collectors XD Better serial killers too I bet! A doc, not sure how serious, shows how they tested portfolio managers, and these had significantly higher brzbjfbrhdjf than average people. There is very little research on brzbjfbrhdjf, as opposed to IQ that has a lot of it, but there sure is a lot of "understanding" media articles about brzbjfbrhdjf, saying how great it is, as there are tons of articles saying how awful IQ is (insecure much?) and none praising it or just listing some of the positives. The market does not care where you bought, remember? It's about what the market is feeling, so go scream "BITCOIN IS GOING TO ZERO!" and find out if: - They are mocking you (honestly): They are complacent, euphoric or thrilled, depends. Can't really teach this... Have to "feel it" idk. - They are angry (includes mocking you but if you have high "empathy" & "social skills" you can tell they are mad): Anxious - They go "pfff", "I'm over it", they sigh: Well capitulated and depressed, bottom? So many people think the world revolves around them, and when there is someone they don't like they get persuaded that person is dumb or loses money XD They think if they believe hard enough it will happen? I find it stupid, so the term "emotional" intelligence might be accurate, the intelligence part anyway. I could go on but I think that's enough. If I find something interesting I'll share. It might be more important than IQ, OR not be more important but since all investors have high IQ anyway then IQ won't matter but "EQ" will differentiate between the mediocre ones and great ones. Having both = jackpots. OF COURSE here we talk about people that put in the hours. Obviously just having "good genetics" won't make you Mr Olympia if you drink beer all day long and never work out, know what I mean? People with low empathy can make money by the way, plenty of autists (famous for not being able to understand people feelings) are great money manager. Remember Michael Burry? Predicted the housing crisis and shorted morgage swaps, great at stock picks. Famous now, made lots of money. You know what else Michael Burry did? Short WAY too early. Because people were still way thrilled back then. And he quit managing other people money (I doubt he understood their stress), in an interview he explains how they were mad even after he made them lots of money. A guy with low empathy dealing with very emotional people (very emotional doesn't mean high "emotional" intelligence) and very little self-management (also little ba**s). 1. Self-Awareness: is the ability to understand how emotions affect yourself and other people. 2. Self-Management: is the ability to control impulsive decisions. 3. Motivation: is having a passion for what you do along with a curiosity for learning. 4. Empathy: as in the ability to understand how people feel (fear, euphoria, etc). 5. Social Skills: as in being aware of the people around you, people with different point of views. The military gets the best results by filtering at entry. Rather than punish everyone because of some gamblers, regulators ought to filter at entry. In some video game, would a MAGICIAN starting with 0 STR and built as a melee tank do well? No. People with low "IQ" and "EQ" have nothing to do in this business. Better to do something else. What else that I do not know. Society has a problem with low IQ individuals, there are no jobs for them. Tech advanced too fast humans can't keep up. Just convince intelligent women to focus on their careers and give welfare to dumb ones when they have kids, that'll solve the problem long term! I do not have autism (kinda disappointed), it's not that I do not KNOW this sounds distasteful to people, I am very aware of it, it's just that I don't give a rat's ass. Not going to start lying to be popular. Plus everyone can keep burying their heads in the sand, things will just keep getting worse. Specific to investing, people will low IQ/EQ will be told everyone can make it, buy a course or whatever, waste hundreds of hours, lose their money, quit. Oh great. But for a moment they felt really good and had high hopes. High hopes that got completely crushed. Great. At least some bullshiter got to be the nice guy! Most "1-4s" know they're not super smart and avoid the market, most people that get offended are 5+ but get offended in their name because they're so virtuous or something. But idk recently they're trying to "democratize" investing, and all sort of random people with no clue what they are doing and a gambling mentality are jumping in to pump the pyramid scheme higher. This can only end badly. So I wonder, are the people pushing for this nonsense really "well intentioned"? Or just trying to keep the pyramid scheme alive a bit longer and pump their holdings at the expense of "useless eaters"?
Education
by MrRenev
5
How To Add Emojis To Your ChartIf you publish a lot of research from your TradingView account, emojis will give readers another way to engage with your work. Emojis are recognized globally and can help others better understand how you're thinking or feeling. They can also be used as quick reminders or notes. Here's how you can add emojis to your chart: 1. Copy and paste an emoji directly into the text box tool like this 👋. If you need help finding an emoji to copy and paste, there are several websites that make this easy to do. You can add emojis to any text box or drawing tool that supports text. 2. The second method is to use the Signpost tool. The Signpost tool is located in the Annotation Tools menu on the left-side of the chart. Select the Signpost, place it on the chart, and then open its settings to add an emoji. The Signpost tool can be used to leave detailed notes at specific price levels. It is easy to use, fully customizable, and it can be dragged to any point on your chart. We've included a few examples on the chart above where we've also customized the background color of each Signpost. 😎🐻 🥶🐂 Thanks for reading! Let us know if you have any questions or comments. Our team is always listening and waiting to help.
NASDAQ:COINEducation
by TradingView
26
PATTERNS & PITFALLS #1 The market is designed to make you fall into traps, and make you doing things. By nature, we tend to overcomplicate things and trading is one of them. As in coding, the best way to code is to Keep It Simple Stupid (kiss). One of this thing is what i call “The Home Runs Chaser”. A large majority of retail traders, slowly tendto look everyday for a stock heading up to the moon. Why does this happen? How we slowly enter into that thinking process when we start trading? So you start trading for few days or few weeks, you see a stock on an uptrend and you go long, take money and then you see the stock going up fast after you exited, what do you tell yourself? “Damn it, i should have held it a little longer, if only...” And then it happens a few more times, and BINGO you’re in it, you’re in the trap designed by the stock market: - You start looking everyday for home runs. - Now you have the “win or loss” mentality So you allow yourself to lose it. You see gains but you’re focusing on the holy grail, the holy target! LOOKING FOR HOME RUNS WILL LEAD YOU TO NOT GETTING PAID !!! Plus it will frustrates you a lot because most of the time, you won’t have the home run. => We must enter the right way of course, as usual, BUT BUT BUT, we must take quick wins when it’s on our side. => Sometimes we have low wins when the stocks have low momentums and sometimes big wins if they are big. But at every trade: you should take partial profits along the way. Exemple: you enter long in stock XYZ at 20$ with 100 shares. Your target is 22$. Instead of waiting the price to reach 22$ to sell your 100 shares, what you should do is to take partial profits. So at $20.49 you sell 25 shares, then at $20.99 you sell again 25 shares. If it goes over 21$ then you wait for the price to reach 21.30 to sell again 25 shares BUT if the price goes back to 20.50, just sell 25 shares to secure a bigger win. The remaining of the 25 shares are sold at ~ $21.97 in the case it goes up, or sold at ~ $20.20 if the price drops. That’s how you secure a win and not let the trade goes against you..... And if you have to leave your computer, just use the trailing stop with an ok spread between the price and the stop just not to be stopped too quick if the price moves down a bit before going up.
NASDAQ:UPSTEducation
by youssHark
The Fibonnaci Retracement, A Traders Best FriendWe all know what the fibonnaci is. But how do implement it into trading and how does it work? The tool i use the most is the fibonacci retracement. You drag it across the chart. Drag it on starts to ends of trends and you have a fibonacci retracement now. How does it work? Now that you have drawn your fibonacci you see these ,,zones". The most common number used in fibonacci tools are 0.618 or 1.618, also known as the golden ratio. The most common example of the fibonacci retracement you'll see are rejections from 618 zone to 382. The 764 zone is thought to be a strong rejection zone. The 1 and -0.618 are thought to be reversal zones. Between 0.5 and 0.618 is the ,,golden zone" for shorts or longs. Now lets say we have a fibonnaci with the numbers 1, 0, 0.5, 0.618, 0.764 and -0.618 and i draw it on a up trend from start to finish. What is most likely going to happen is the price will go into our ,,golden zone" and retrace up. Take profit will be -0.618 or 0. And our stops will be just bellow 0.764. You can customize your fibonnaci to your likings and test to see what works and what doesn't. The zones i recomend most are those i mentoned earlier in the example. Remember to draw the fibonnaci on trends, NOT consolidation. If you liked this little guide leave a like and share it to a friend ;).
Education
by fxAljtaric
Ways to solve our overtrading issuesHello, I have an overtrading problem. There are solutions, they are just not on the internet on trading websites. They come up with the same useless nonsense you'd expect "take some time off the screen", "don't try to get rich quick", "defeat your overtrading", "get motivated get a plan and force yourself to stick to it", "be patient" 🤦‍♂️. What is next? "Brush your teeth be a good boy and do your homework"? Or even better "do not overtrade". My brain doesn't care that "less is more" my brain is thirsty. Really there is no such thing as "placing the threshold here". There is not such thing as "not (under/)overtrading". You always either overtrade or undertrade. If we want to compare this to drawing a line, or in other words placing a barrier, it would be like placing a barrier but not 2 or 3D, there would be 20 dimensions, and all opaque, and ever changing, and you do not know which one is more important which one is less. Good luck learning by heart how to do it in a book. Of the past 5 months 4 of those had nearly no good setups for me, it was very hard. I can't just do nothing. So I took really terrible setups. Way too many. Ok let's skip the excuses. Even if I am not trying to go only for the ideal stuff at all, I've been taking way too much, I went through my logbook and I would say I took 2-3 times too many. We want to compete, we want to play the game. Most people, and most people this idea is targeted to, are at an intermediate level to advanced. Beginners that do not even have an edge well overtrading is not really hurting them is it. They do not give back profits, there are no actual profits to give back! A word for beginners. Since we're going to end up investing anyway aren't we? Well perhaps they might as well start with managing a simple low risk portfolio. Build a solid base. Might as well start with the easiest part. Least difficult. And might help avoid overtrading from the start. If I could start over I would not hesitate. Once an intermediate has his niche, a few currencies, his favorite websites & tools, and an edge, well that just won't do will it. There is no resting on laurels until we really have plenty of knowledge, strategies, instruments we can handle. Constantly look for more edges. And progressively widen the business with more currencies. Can also add commodities. With time the base grows, like a strategy game. Might want to test the new strats on a separate low stakes accounts while running the core one on the real account. A player with several edges, and a wide array of instruments, as well as a couple years experience, is what I'd call advanced. At some point if we try adding even more instruments or strategies we'll just mess it up, it takes enough time to manage our vast business already. And after several years the strategies sort of come without looking for them anyway. Plus the markets do not have infinity opportunities to offer. Just keep doing research, improve your understanding of the market, keeping updated on everything... A serious advanced trader will be busy, no worries here. The issue is there are not enough opportunities. We want to compete, we are eager to fight. If nothing happens in the market, price is just random as far as we know (only retail day gamblers will say it's not and we know how well they perform), what to do? Well there are some tricks: - First use and abuse adding to winners. If you're going to overtrade anyway, might as well do it with a winner than some choppy garbage. Not ideal, use this in last resort. Adding to winners should probably have some rules to it. Better to have bigger winners than more losers. - Go manage a portfolio on the side, invest a little / position trade. And when the urge to take a trade comes, find a good winning investment and add to it. I would not start dreaming of adding and adding and adding to Forex, but with stocks, sure. Buying an additional S&P call is like taking a new trade. Better this than gambling on 2019 EURUSD. - If you have a severe addiction and just can't help it, well... I guess in last resort there is still the option of going day gamble on the side, but this should not take your attention from your main business. This can easily eat up time & focus, and mess up results without adding anything positive.
Education
by MrRenev
1
5 Strategy - To help you towards your long term Financial Goals!Hello Traders, Newbies & Fellow Friends! Today I decided to post this Educational & Motivational Post for Everyone to Read! I hope your Enjoy this Journey with me! Before we start! Id like to mention a few Things: Financial Freedom is Not an amount of money , Its a state of mind! Trust Your Brain, Not Your Gut - "When things are going well, people think it’s going to be springtime forever,” & “When things are dark and stormy, they think it’s going to be wintertime forever. But I’m a student of history, and it’s always cyclical." Cultivate Patience - Mastering your finances is just like mastering your mindset—it doesn’t happen overnight. It takes years, if not decades, to see a true transformation. “I think the secret to patience is knowing what your outcome is and focusing on still making progress, It’s about momentum and being a student of what works.” These five strategies can help you stay on track toward your long-term financial goals: 1. HOME in on what matters! Be strategic about the financial news that you consume. If you are trading on the Forex Market, there’s no need to check your chart every 10min. You will only drive yourself crazy. Instead, spend those 30 minutes doing something valuable like reading a book or watching a YouTube channel (Global Fx Education) about a financial strategy. “We’re drowning in information but starving for wisdom,” “The only way to stay strong and centered is to be clear on what you want to serve, stand guard at the door of your mind, and make sure you’re feeding your mind something besides Nonsense. - invest in yourself!! 2. LEARN to be comfortable with risk! Even the safest trading conditions have a level of risk—tolerating it is simply part of the game. “Risk is the secret to success,” “If you want to succeed at any level— in Forex Market, in your contribution to the world—you have to learn how to deal with this four-letter word.” Trading should be based on goals and what we’re trying to accomplish,” 3. FOCUS on what you already have! High achievers always tend to focus on self-improvement! But if you’re always focused on what’s missing, you’ll never be able to attain true happiness. 𝗖𝗵𝗮𝗻𝗴𝗲 𝘆𝗼𝘂𝗿 𝗺𝗶𝗻𝗱𝘀𝗲𝘁 to focus on what you do have: Perhaps you don’t possess enough money to travel and donate as much as you would like to charity, but you do possess enough to pay for a sizable share of your child’s college For Example. That’s big! 4. DON’T MAKE impulsive decisions. If you find yourself tempted to make rash decisions with your money, you’re not alone. “Humans aren’t really wired to be great investors; it’s just not the way we are built,” we often make decisions based on emotions or intuition rather than facts.” 5.KNOW your limits! The world’s most skilled investors didn’t make it big due to one or two lucky investments—they’ve spent their lives learning how to be the best at what they do.! Like an wise man always Told me - Rome wasn't Built in a Day, Take careful consideration in everything you do. Notes - Adjust Your Worldview With the volatility of the Stock market & Forex Market, political division across countries and unpredictability of the pandemic, it can often feel like we’re living during a terrible time in history. But a little dose of perspective can remind us that’s not necessarily the case. It’s human nature to see things with a negativity bias, But it’s important for Investors / Traders to have an optimistic outlook on the world. “If you accept that it’s a great time to be alive—life expectancy is going up, the population is growing, we’re innovating and we’re getting better every year—then that’s the kind of place where companies / Assets / Markets can thrive,” “And if they thrive, you’re going to do well as an investor / Trader.” Those who choose to view the world through an optimistic lens will prosper, Remember this - “Some people freeze to death in the winter,” while “Others learn how to snowboard and spend time with their family by a warm fire because they know winter is not forever.” Thank You All For Reading This Motivational / Educational Post! I hope it Has changed Your View / Trading Psychology For the future! I have Left my Previous Educational Posts Below! Something Great to do today - Like, Share this Post, Leave me a comment Below! Global Fx Education Stay Safe!
SAXO:XAUUSDEducation
by Global_Fx
3
Forex retail traders in a nutshell99% of retail FX traders are scalpers or day gamblers or "swing" traders. According to a paper on the BOJ website I'll link below, in 2015 a mindblowing 57% of retail clients were "scalpers". 86% were either scalpers (0 to 1 hour) or day gamblers (1 hour to 1 day). They excluded those with positions held over 1 month, 1 week to 1 month was only about 5%, much much smaller than all the day gambling. "Share of accounts by investment time horizon" So it's not 86% of trades it's really 86% of accounts. For something very niche that no one does. www.boj.or.jp Can't blame the FX brokers for giving their clients, which are nearly all gamblers, what they want. These gamblers looking for excitation and with get rich quick dreams. Success rate of 0% not even 1% not sure what's going on up there. They're not even meant for this business at all. Becoming a trader when you have risk & loss aversion facepalm. "It's ok I can work on my flaws and improve" It is like if being an exterminator would pay a whole lot and so people with a phobia, terrified of rats would start getting into the business "Yes I'm scared to death of rats but I can make it work, for the money do not try to demoralize me". Or snakes & spiders maybe that's a better example, more people scared of wittle spiders. Clearly ridiculous. "My whole lower body is paralysed but that won't stop me from running a marathon (on my hands?) and winning!". Since Europe banned binary options (gosh what a scam), which was at least forcing day gamblers to have fixed losses, and with the exception of a few turbos, day gamblers really have their work cut out for them: At least with online casinos they have a fixed loss. Bet 1 coin lose 1 and that's it. But when they day gamble Forex there is not "hard loss" so they can keep letting the loss get bigger and bigger (due to loss aversion). Some regulators want to fight retail trading, and keep spreading FUD about it "99% lose". What do you expect? Doesn't mean it's soooo hard, 99% lose but do not forget 99% are drunk gamblers! Forex especially since the late 2000s and even more since 2013-2015 has very little trends, not much volatility, and not that much returns to offer, so it gets a more and more negative image but FX traders are allowed to look elsewhere when nothing happens. Maybe really dumb regulators are going to ban it the moment it turns and becomes very profitable again. They have all these mental flaws: - Risk Aversion - Loss Aversion - Caring what others do and think - Casino mentality - Emotional behavior in general (FOMO, regret, confirmation bias, denial, etc many more) About the casino mentality here are 2 articles about a recent comment by Charlie Munger: www.nasdaq.com www.investopedia.com These day gamblers, at least they should pick the correct tools where they might have a chance. The best one has to be the DAX (the Dow Jones might come close too): Pros: - Very small costs (house edge is the smallest) - Lots of activity while it is open for 8 hours - I think about 1/5 days are good trend days - 90% of days have the top or bottom of the day in the first 90 minutes I think, or something like that - There are other cool stats but I don't really remember - AND many other day gamblers also bet on it! The money gamblers hope to win has to come from somewhere, well here it comes from other day gamblers. So I'm guessing all the day gamblers just do the same thing? Buy the trend when there may be one, and what separates the winners from the losers is the ones with the biggest... personalities hold their winners and have what it takes to exit losers fast... And that's it... Zero intelligence... I do not know or understand what gets the vast majority into this whole super short term game, broker propaganda? That's just how gambling mentality works? 99% can't just all be gamblers? Did people lie to them and tell them this is how you are supposed to trade? Why did I never hear about this lie myself? Does it come from what they saw in some movies and tv? (I never watch tv).
XETR:DAXEducation
by MrRenev
1
Think like a Hedge-FundImagine that you are a Hedge-Fund manager, you have a lot of money to invest. You are looking to invest in AAPL for example. Let's assume for the debate, that you as a fund manager can buy any amount of stock that is traded that day. This assumption is made because we want the Anchored VWAP to represent our position line. Anchored VWAP = is a tool that you can use that calculates the average price of volume that was traded from a certain point. In practice, since you don't have a lot of money, if you could buy 1/100M stocks each day (100M is avg volume, which means you will buy /100M), your position line will be very similar, but proportional to a private account. You decide to grow your position line when the price is after a big correction and it moved above the EMA. You go only LONG, you buy every stock that is traded (you are a Huge hedge fund manager, remember?) Path 1: You start to accumulate a position. Your position line is growing in size, but it also rises in price since you are buying stocks at a higher price. In green, you can see your position line which is also your break-even line. As you can see, the price is always above the green line, which means that you are in GREEN all the time while you are in this buying campaign. Path 2: The light blue line is where your position line will get "stuck" and will not rise if you decide to stop and not add more to your position from that point in time. Path 3: Path 3 is your position line given that you keep adding to your position even in the sideways action. You just keep buying and buying. Red line: The red line is the Anchored VWAP that will be if you want to start selling all your position. You sell every day and keep selling. This is your average selling line. Conclusion: You can see that either if you choose path 2 or 3, you will all the time be in GREEN position. If you choose to stop buying and start selling (Path 2), your average return on the position will be 32%. You entered little by little, minimum risk in the position. You have a lot of "AIR" from path 2 to where the price is currently in. This post is a continuation of the post about average-up strategy. The same line of thinking. If you like, follow and like this idea so it will be saved in your saved ideas for future reference.
NASDAQ:AAPLEducation
by ZoharCho
1
Mitigating High Risk Long Positions with CoveringStop losses are an, often unwelcome, but ultimately necessary and life saving tactic to day trading. When going long, setting a high stop loss can be beneficial for getting out of bad trades quickly with small losses, and opening yourself up up more opportunities for good trades. Setting a low stop loss on the other hand, can be beneficial by greatly increasing your profit. Many trades that seem bad initially end up rallying and turning profitable. Generally speaking, the lower your stop loss, the higher your percentage of good trades. The downside to a low stop loss of course is that trades take longer, locking your funds up, and what if price actually hits your super low stop loss? You've lost a super amount of money. In my trading career so far, I've preferred a low stop loss. Losing out on a good trade due to a conservative stop loss is more painful to me than the risk presented by a liberal one. But this is a high risk to accept. Losing, say, 20% of my trading capital is definitely something I want to avoid, but not at the cost of a high stop loss. So, I can hedge my position, mitigate my risk, in one of a few ways. I can open a short position when I see my long position go south. Or I can engage in Dollar Cost Averaging: I buy more as the price falls to lower my average position size and ultimately my target profit. These are good options, but come with their own side effects. Opening a short position opens you up to risks associated with a short position, i.e. price suddenly shoots up. And Dollar Cost Averaging requires additional funds to keep buying. What else can I do? Enter "Covering". From Investopedia: "To cover is to take a defensive action to lower the risk exposure of a position" The graph attached here is a demonstration of Covering (the exact spots for buying/selling were picked hastily; this example is purely conceptual and an ideal situation). The basic idea is: when price begins to fall, sell it, just like a stop loss. However, unlike a stop loss, the intention is to buy back in at a lower price when price begins to rise again. This is like dollar cost averaging, because you're, in a sense, lowering your average position size. The difference is you don't need additional funds. This is also like short selling, because you rely on the price continuing to fall, but you haven't borrowed anything in order to benefit from this fall. As you can see in the diagram, as you sell and buy back, the amount of shares/coins/whatever you can afford off your initial capital increases, thus either increasing your profit if the trade hits the profit target, or decreasing your losses if the trade hits your actual stop loss. Here's how Ive been setting up my covers: When price begins to fall, I set a conditional market sell somewhere below the nearest support. If price falls to this level, I immediately sell everything Once I've sold all my shares, I set a trailing stop loss for the cover; I generally do ~1.2%. If, after I sell, price rises 1.2%, I buy back as many shares as I can with the money I got from selling earlier. Ideally, this trailing stop falls well below where I sold. Rinse and repeat until price either hits your original take profit or your original stop loss. Some things to note. Do not buy below your original stop loss! The purpose of this strategy is to respect your original decision, not make new ones . This is meant to mitigate a high risk situation, don't expose yourself to more risk in doing so. Also, you theoretically want to buy back above your original stop loss, even if it looks like it's going to fall through. Make your own call here, but by not buying back, you've essentially just changed where your original stop loss is, and thus changed your original trade decision. Of course, nothing is without its own risks. It's quite possible that you get stopped out for a loss every time you sell, i.e. you sold, price went up, so you buy back at a higher price to stay in the trade. This will eat into your profit if the profit target is eventually hit, or simply add to your losses if the stop loss is hit. From my point of view, that risk is less painful than the risk of hitting a low stop loss without covering. You theoretically give yourself more chances of being right with these micro trades inside of your larger trade, and if you get lucky, as is the case in my diagram, you might actually profit even if your original stop loss is hit. This strategy requires attention, for sure, but if you're both strategic and lucky, you can really save yourself from the downsides of a high risk trade without adding money to the pool, or exposing yourself to short selling risk.
COINBASE:COMPUSDEducation
by tapRoot_coding
1
How To Get Out of a Good Trade? - Setting Your TPHi Traders, today's topic regarding 'How To Get Out of a Good Trade? - Setting Your TP' . Are you still struggling to set a proper profit target? Or are you still watching some of the best trades reverse against you? It can be frustrating sometimes watching some of the best runners turn into a breakeven OR losing trade. These are some of the methods I personally use to get out of a great position ( Trade Management ) 1. Technical levels (S&R zones) - This is mostly related to 'set and forget' type setup, you identify everything before hand, set your TP at key levels (broader thesis), leave it to run. But one thing when you're setting your target at key levels, you have to first understand the market condition then compare it to the current volatility. Eg. if the market is in a choppy range and you're setting your target at the all-time-high, it makes no sense (unrealistic) . - Also know that S&R are zones, so if you're setting your target at the absolute tip of the resistance, there'd be times where market just reverse against you, because mostly likely you've neglected the " zone " factor 2. Trailing Stops (Moving averages OR Prior high/ low) • Moving Averages This is great when you're looking for an extension sort of market movement, such as trading a flag/ exhaustion pattern. You're betting that the market will keep banging into your intended direction. How to trail it? You must first Identify the strength of the trend - Medium OR Weak trend (deep pullback) = 50ema to trail it - Strong trend (shallow pullback) = 18ema to trail it • Prior high/ low This is great when the market is in a strong trend, and your thesis is telling you that it MUST respect the higher highs & higher lows/ lower highs & lower lows sequence - Go down to lower timeframe such as 15m, everytime when price forms a minor level, trail your stops to that structural area - This method also helps you to keep track with the fresh momentum If you're constantly watching the market reverse against you, there few main issues are - You're having your target way too far (unrealistic TP), identify the daily ATR, then understand the probable and possible. - You're looking for an extension move in a ranging condition (market isn't going to keep ripping into one direction, there will be times where it ranges, this is when you MUST have a realistic target such as setting them at previous swing high/ low) 3. Fixed RR This is great if you're looking for a more systematic method to handle your TP & emotion at the same time - Eg 1:3RR - But by using this method, you'd somehow decrease your long-term expectancy as you're getting out of position way too soon sometimes - Yes you do eliminate some effort to figure out your TP in every setup, but you'd tend to have many ' re-entries ' too, as the frustration of getting out of a good position too early is overwhelming too. Feel free to comment below what's your worst nightmare in trading! "I know where I'm getting out before I get in." - Bruce Kovner Trade safe as usual. Do follow my profile for daily fx forecast & educational content.
KRAKEN:BTCUSDEducation
by TraderNeoh
33
8 Steps To Make A Forex Trade!!8 Step To Make A Forex Trade: 1) Start the Trading Platform- The first step is opening the trading platform. 2) Open The Chart- Now choose a currency pair and open a chart. Select a time frame. 3) Add Indicators (if you want too)- or skip this step. 4) Place The Order- Now prepare to place the order. 5) Set The Stop Loss And Take Profit Levels- Now set your stop loss and take profit levels. This step is optional but highly recommended. Experienced traders have found that setting a stop loss at half the pip amount or less than your take profit level can set you up for long-term success. This is because you can be right less than half the time and still come out at the end of the week, month, year ahead if you have a favorable risk-reward. Setting the stop loss will limit your losses if the market does not move in the preferred direction. Setting the take profit level will make sure that the trade exits in profit once the market makes the downward move that is expected. It can be an advantage to set these levels when you place the trade because once the trade is actually in the market, the pressure can make it difficult to make decisions. 6) Order Confirmation- Submit order and wait for confirmation screen. Confirmation is important as is ticket number because you may need to reference the ticket number if you need to call broker about trade. Of course, you don't want anything wrong to happen with execution, but if there is a mistake in execution on part of broker you will need to go to them with confirmation and ticket number so they can correct their mistake and credit account back if necessary. 7) The Waiting Period (Waiting Not Trading Is Where You Make Or Lose Money)- Now waiting period begins. This is the more difficult concepts in Forex trading. Some traders find it helpful to turn off the screen and get away from the market once they've entered so that they are not constantly fretting over market moves. Either way, sticking to a good risk reward is a favorable approach and whether your stop or take profit order gets hit, you have done your job correctly. 8) Trade Completion- Finally, the trade is complete. Trade results can be only three, which are makes money, loses money or breaks even. Remember in trading to do four things: Win Big, Win Small, Lose Small but Never ever Lose Big!!! Risk management on all trades is necessary.
Education
by Anbat
1