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Long or Short Entry Checklist? Understanding The DifferencesHi Traders, today we'll be discussing about a topic regarding " Should you have a long or short entry checklist? - Advantages & Disadvantages ". Majority's always thinking about having a long checklist to ensure they stick to their trading plan. But do you know that being too picky to your setups aren't always the best thing to do? Sometimes less is more. Below are some of the pros' and cons' Long Checklist Advantages - Great filters - It allows you to identify high probability setups and filter out lower quality trades by having strict approach to the market - Systematic approach - Having a longer checklist systematize your trading approach. It eliminates some of your negative emotion by abiding to the checklist and ticking the boxes - Multiple confluences - A longer checklist allows you to strictly lines up multiple confirmation to each setup, which will improve your overall trading confidence Disadvantages - Delayed action - By adding more filters to each trade, it tightens your criteria to each setup, which might cause you to be late to some trades - Missing out & hesitation - As you're constantly waiting for more confirmation to your trade, it might negatively turn you into an overly conservative or fearful Trader. You're always hesitating to pull the trigger due to the over-complicated checklist - Overthink - Some of the setups or opportunity happens to be simple and impromptu, if you're imposing overly strict criteria to each position, you might end up losing some of the simple great runners Short checklist Advantages - Simplicity - Less is more, by simplifying your trading system, it allows you to have less opinion in the market which leads to better clarity - Increased opportunities - By loosen or eliminate some 'unnecessary criteria', it increases the amount of opportunities presenting to you as you're not looking for the perfect trade - Flexibility & Reactivity - This is one of the most important traits I find in most successful Traders. Being resilient and reactive to various market condition is crucial to your long-term trading success Disadvantages - Fear of Missing Out (FOMO) - Understanding the difference between simplifying your process (having an edge in the market) AND having no clue of what you are doing. FOMO usually appears when you are merely trading the market to make money (outcome-oriented), rather than having a fixed process to beat the market consistently - Revenge trading & Over-trading - Both these negative traits usually appear after FOMO, where your subconscious & conscious mind are out of control. You are chasing the market, your ego has taken over your brain, it's convincing you that whatever you're doing MUST be correct. When these signs appear, you must take a step and calm down your mind to prevent some self-sabotaging effect - Instinct-trading/ gambling - If you're a newer Trader, an overly simplify checklist might not work for you as what you need the most is the discipline to stick to your process. The major difference between a Trader and a Gambler is that Trader never hope and pray. If you're constantly enforcing your personal will and expectation into the market (hoping & praying), this is something you should reflect upon now. - Closing out trades early - If you do not have a systematic process, often your Caveman brain will cause you to close out your trades earlier (both winning & losing positions) due to uncertainty and fear. Your subconsciousness will always convince your to secure your profits as soon as possible, which is not the best thing to do in the long-term. Consistently profitable Traders cut their losers and ride their winners, by taking off your winners too soon you are ruining your own probability of success in this business. Comment down below what's your worst unrealistic expectations in the market! "A Trader looks for consistency, the Gambler looks for a quick profit." Trade safe as usual. Do follow my profile for daily fx forecast & educational content.
KRAKEN:BTCUSDEducation
by TraderNeoh
3
How to make money with price actionSo you want to get into price action? Not fundamentals ey. But then one HAS to do all this backtesting, there is no dodging it. Can't go into "TA" to dodge the FA work, and then want to also dodge the stat work xd No magic trick here. Let's get started immediately. EURUSD 2020 covid trend (can't 100% dodge fundas, always good to know why we're going in a direction): EURUSD 2018-2019 "thing" (trade war uncertainty and erratic tweets): EURUSD 2017 trend: We are starting to see trends last 1-2 years in recent history, so not much point looking at a 5Y chart. It's also silly to be super zoomed in on some "intraday" or "swing trading" chart with no clue what is really going on. EURUSD 2015-2016 ranging 2 years: EURUSD 2014 violence some may remember: Day gamblers looking for "10 pips" that hold bags were happy to go through a 3500 pips loss. Still has not recovered. I can only imagine the incredible pain loss averse gamblers must have gone through. The pain not only never ends but it just keeps getting worse and worse and worse. Just no chance to breathe, only unbearable pain. Well that's interesting, why am I licking my lips? EURUSD in 2012-2013 does not look very fun: EURUSD 2011 downtrend Hey, starting to see some recurrent things here... EURUSD 2010 uptrend Backtesting tip: Doing it while playing a turn based game (alt tab between turns), or watching something that requires little attention, working out (between sets), "afk farm" games too... No one lasts with "motivation", we all have to find tricks. EURUSD 2010 downtrend And before that, we go to the 2000s era where FX was popular with hedge funds and trends lasted more than 1 year. 2008-2013 saw most FX funds disappear. Another tip: Maybe fundamentals can help predict when a trend will last, and avoid failing on this sad 3 impulses downtrend. It worked for the Yen a few years ago when the BOJ almost literally told traders "Hey if you short our currency we will give you money". And another tip: Eyeball backtesting. Have an idea? Want to know if it is worth digging in? Well don't just go full fanatical try hard! Do not spend hours and hours writing every detail in excel. Eyeball it with approximate numbers. Takes seconds. Then 2 choices appear: - Onto something ===> Go for the details - Nah it's nothing ===> Congratulation you did not waste tons of time on nothing (small time loss) Limiting losses, it's also valid with your time. How about I go look at the GBPUSD in the 80s ey? GBPUSD downtrend in 1980-1981 Aaaaaaaaaaand same story as usual ;) Repeat this 10 times, for a total of about 100 excel lines and ~25 trends. Then write some rules, and go backtest them on other charts. Because yes, the major currency pairs (USD, EUR, JPY, GBP, AUD, CAD, CHF, NZD, CNH, MXN, SEK) more or less work the same, but don't take my word for it. Choices appear. Does the aspiring money manager want to only go for 3 impulses? And then miss all the big winners? Does he want to sacrifice winrate for bigger reward to risk ratios? Does he want a higher winrate (noob). Sometimes there are 5 impulses, does he (or she) go for 5? Or consider it is worth it to give up some winners? Weak hands or strong hands once in a trending winner? Most people have weak hands with winners but doesn't mean one has to absolutely ALWAYS hold. Holding all the time and letting it retrace hard would probably be a mistake. The noob that took the time (really it would barely take a few days of honest work) could already get started. I said get started, I don't know if it would make money. Maybe? Clearly 2R is a beginner thing. What if you could get 38% winrate with 2R and 22% winrate with 4R! Clearly worth it, but as always the majority of people are loss averse and choose the bad choice, trading is just not for them. One has to some stats, have a good working memory for many reasons, be able handle numbers like "I3 - .6 - Fast - EURUSD" (2 variables 2 constants). If someone cannot quickly juggle with numbers this is the wrong job. The variance is important for example, if an average pullback is .5 but 45% are in the .25-.45 range, and 45% in the > .8 range, here there are 2 groups to separate. Obviously here we would want to only go for the .25-.45 range, get a 4 or 5 or even greater reward to risk, let losers chase high winrate with gigantic stops. If 30% of the time the price bottoms in a .2 range and extends 1 at least, here that's a 5 risk to reward on double the breakeven winrate. Then what happens to the 70% who cares? A few bottom further away, a few turn into a new opposite trend, a few go sideways, they all stink. All for illustrative purposes, but it's typically what happens. I don't really know. What about some ways to increase the winrate, tips, and for those that have a hard time sticking to rules, especially cutting losses and holding winners? Surely, Mr Renev that said motivation did not work knows some tricks to fix all of that. Find tricks... I know no tricks in fixing gross mediocrity, just follow the rules, non negotiable. It's really simple. Can't do it ==> Wrong job. Can mediocre make money? I don't know I do not deal with mediocre. Also we can try to zoom in, but ideally only after having mastered the timeframe presented in this article. This is what I do, I zoom in. Let's take my 2020 idea "The pound is a 500 years old ponzi going to zero" So here is the full chart (1 year): Go H4 on I3: Then we can even go to H1: The target is 450 "pips" which for GBPAUD is in the 1 week ATR range, but better than the average. In a recent "tips" idea I showed: - Day gamblers working on a 8 hour ATR realistically need a PF of 1.15 (very best scenario) - 1.25 just to breakeven! - Swing Gamblers on a 2D ATR need a PF of 1.05 on EURUSD to breakeven. - And I won't look at scalpers because they can't possibly be serious. I think they are actually trolls. With this weekly ATR a PF of 1.02-1.03 is the breakeven rate. I am not bleeding much money compared to going long term. Day gamblers miss out on so much, AND they need an exceptional profit factor, ok not that amazing either (for day gambling it is) JUST TO BREAKEVEN. All that wasted money, how does it not drive them nuts? They're just throwing away a 20% margin. I just want to pull my eyelids out. To make money with Forex, many questions will have to be answered, and for this only one way, as we say in France "Va falloir aller au charbon!" (literally "Have to go to the coal"), means it will take time and effort and actively getting things done. So many questions: What trends can be eliminated? What trends SHOULD be eliminated? What impulses to go for? What is the optimal WR & RR compromise area? Do I just go for ABC first? Where to exit? What are solid Support and Resistance? Do I go for uptrends starting from a multi year low only (to dodge ranges)? How many ATR are each wave? What does 2 extend to? What other questions could I ask? How do I get inspiration to find more questions? Do I exploit this strategy enough? Can I optimise it more or should I look for something else? Hey and each of these questions will direct to more questions. "When I have this, this, and this, where do I exit". Like "Where I'm in the presence of a creeper trend", "fast trend", "clean trend"... Each trend has its own set of questions, all the same I listed, plus a few specific ones. It is essential to approach the study of markets in general and charts more specifically in manageable chunks. All while following economic news and checking on charts regularly. A day that makes sense could be one with 4 hours of backtesting, 4 hours of analysing charts, 4 hours of "fun" watching videos and reading and writing (all about investing), and 4 hours of time to eat and do unrelated stuff. All of this for 1 simple strategy. Answering these questions is a task to accomplish over years.
Education
by MrRenev
10 free trading tipsTip 1- Use statistics to avoid bad setups, and enter and exit at high probability areas Example: Wanting to join an early trend on a pullback? It probably is a bad idea to enter before 50% retrace. Elliott rules even say wave 2 typically retraces to 78.6%, so it's probably a good idea to wait for a big retrace before going in. Of course, and this could be another tip of itself, Elliott never made money investing, so it's best to learn from the charts than him. Tip 2- Use the daily chart, or more precisely the 6 months to 5 years chart By studying the charts one quickly learns that price evolves on the "daily chart". By this I don't mean the candles absolutely have to be 1 candle = 1 day, as long as depending on several factors 6 months to 5 years of price data are visible. Typically I go for about 2 years, and clicking on "D" is what looks best. Plus humans are on a 24 hour cycle, so daily candles just makes sense. Some people can't stand noise and just look at moving averages. Tip 3- It is probably a good idea to not try to join very extended trends on a pullback When an extended trend finally has a pullback, it's often going to be a big one. We all heard over and over some numbers such as "1.618". If 90% (totally arbitrary number) of EURUSD trends that make it to 2.618 and pullback end up reversing, and only 1% make it really far, you sure you can get a 1 to 100 risk to reward? Some areas might be best to avoid. In all competitions champions find all the tricks to make it as easy as possible. That's how one becomes the best. Not by being a complete idiot that goes straight ahead tries to brute force. "I die, yes, but with honor!". No no, no honor, you die like an idiot the enemy is laughing at you, and your village will get raped and burned to the ground. People love to be hipsters. I prefer to win, to crush the competition. Tip 4- You already heard this: Cut losses, hold winners, be disciplined Are bagholders hipsters, or just weak? Clearly all the "diamond hands" are simply weak cowards that piss themselves at the idea of taking a loss. I do not want to waste too much time on this one, a very easy way to gain a huge advantage over the competition. Just careful beginners with huge rewards and tiny stops. Greedy stops won't lead to great profits, but to death by a thousand cuts. Tip 5- Do not daytrade, day trading is stupid Ah the day gambling hipsters. "I'll be the one in a hundred that makes it". Even roulette and sports betting have better odds. And the 1 in 100 that make it, assuming it's not just luck, make PEANUTS. They'd earn more flipping burgers. As I explained, price action is based on the "daily" chart. Trends last months, they can be divided in smaller moves that last days to weeks. And the price, as I also explained, reacts around these daily chart swings, and daily chart extensions. Another reason why daygambling is so troll. And since day gamblers "close at the end of the day" (vomit) you could be right and lose money! You could be wrong and lose money! So even if they have some edge, they add enormous randomness (and ruin an edge) because there is a time factor we have no control on, they'll close before bed at a completely random price, just because "the day is over". Same concept as the binary option scam that got banned. That's literally gambling! Oh and when they "close at the end of the day" 🤢 they will be making even less than 15 pips, with spreads still the same size. Tip 6- For the noobs: Start with something simple that works and conditions will be added over years I think the best course of action would be to go for the basics, something that is expected to work, going with the trend, not focussing too much on the entry, having a reward better than the risk but not too tight (greedy). And with time improve it. It's like making muscle. If you stop trying to be a hipster and just do what you are been told (don't daytrade, don't hold losers, don't go against the trend), after the initial learning curve (1-5 years, sorry for the dreamers/gamblers) on year 1 you gain 7.5 kg muscle (7.5% returns), year 2 5 kg muscle, year 3-5 5 kg muscle, year 6-20 maintain, maybe small additional gains. Guys like Bill Hwang have shown someone could be a self-made billionaire making 60% a year, so these numbers are just illustrative. The idea is traders develop over time. All the famous ones really got good after several years, and peaked decades after they started. There are no steroids in trading. Ok I guess there are, those would be insider trading, but this isn't easy to access, and a crime. Tip 7- Noobs again: use indicators if you want too, but don't waste time trying to look for indicator edges If you think indicators look good then use them, but don't waste too much time looking for an edge. We'd know if there was one. Don't be lazy, when starting one probably should spend a little bit of time backtesting indicators, and quickly will find out there is nothing of value, no edge based on the indicator itself. And then they can look for something else with a clear head, without wondering "did I miss something". Tip 8- Beginners or intermediate traders that are not yet profitable: Don't aim for huge asymmetric risk to reward You look at charts, there is volatility, in the real or original sense of the word. Trends have plenty of pullbacks, 23.6%, 38.6%, 50%. You might have noticed those were quite significant pullbacks. Not tiny 5-10% pullbacks. So how does a risk to reward of 1 to 20 or 1 to 10 make sense? And how is someone not yet experienced, not even profitable, going to pinpoint exact high and top? I know NO ONE that can be that precise. When George Soros broke the bank of England, he sold at the upper end, and had a large risk to reward. Correct me if I am wrong but he sold for 10 billion, made 1 billion, and said his risk was below 2% (200 million). That was the trade of a lifetime and his reward was 5 times his risk "only". I think he said his hit rate was below 30%. I doubt he typically takes trades with a risk to reward of 20. Or ever. Maybe there is an edge out there, with 100 RR, who knows? But I think it is more reasonable to start with something between 1.5 and 3. Tip 9- Strong trends are the best, pretty obvious but people seem to avoid these On strong trends retail positions are massively on the wrong side, some sources show the percentage of positions and some show more. The very few traders that are in the correct side have tiny gains, out of hundreds of thousands of accounts the people going in the correct direction and holding can be counted with 1 hand. Makes me feel very special. 1 in a thousand. Even 1 in 10,000. It's really simple too. I was tired of try harding 2 years ago, and I just yolo'd in trends, and it worked out. And last year I repeated it, and it worked again! So I focussed on that, and added a strategy to my arsenal. I call it "breakout" but there's really 2 strategies and one of them is not a breakout at all. I wish I started with this, because it is a real goldmine. Not just the easiest, but most productive too. And I'd build the other strats later. When I started I quickly noticed big patterns that flashed in my eyes, once you see them you cannot unsee them, so I went in that direction, obviously. If you're onto something do not spit in the soup! But if you have a choice, let's call it that, I encourage everyone to aim in the direction of trend following! It's well worth it. If you want to make money. For those that would rather be hipsters, well, have fun. Tip 10- Breakouts! Strong trend breakouts! Be patient And final tip, with breakouts in strong trend, they very very often don't go anywhere. Best way to lose money is to fomo. I'd rather miss out. So the trick is to have a condition like this: "It has to go far enough." Or it can go like this: "I want the price to remain above the previous high", that's not realistic, so it could be "I want 2/3 of the price to be above the previous high, and then to double bottom with the high of the bounce above the previous high", which is more reasonable. This is all just my personal opinion, I do not offer refunds. And it is all specific to Forex. Do you own research. With the charts. All praise the charts. Glory to the charts.
Education
by MrRenev
3
How to Determine Market Direction Using Multiple time frameIn this video I try to explain the best way to determine market direction. Define a uptrend--- Series of higher highs and higher lows In an uptrend your goal is to buy from a support and form a new higher high In order for you to buy from a support, your lower timeframe must be in a downtrend Define a downtrend--- Series of lower highs and lower lows In an downtrend your goal is to sell from a resistance and form a new lower low In order for you to sell from a resistance, your lower timeframe must be in an uptrend Avoid using historical levels to fight market direction If you can keep these rules, you will always be safe. Few is always more Thank you and trade safe
Education
by Data_Block
12
When Can I Become a Full Time Trader?One question that constantly comes up, and understandably so is, When Can I Become a Full Time Trader? Being a trader is like running a business. You are the manager / owner / operator of "You, Inc." How much capital does it take to run your business? What's your monthly P&L? How much money do you need to have in "float" in case of emergencies (like, oh, I don't know, a global pandemic that sends the price of everyday items skyrocketing?) If your goal is to become a full time trader, where trading is your primary source of income and provides you with all of your material needs for now AND the foreseeable future, do you have a PLAN on how to get there? Do you know how much capital you need and / or what rate of return you need from your trading system and / or how many trades on average you need to generate your income target? Let's figure out how much Monthly income you need. First, take your monthly expenses. Include things like rent or a mortgage, a car payment, utilities, gas expenses for your car, etc. and total them up. Second, take all expenses that might be annual or irregular and put an amortized amount each month into a separate checking account for when they come up. For instance, HOA fees may be billed semi-annually. You may plan on a vacation every year. You may have to replace a major appliance every 3 years. Factor all those expenses and what it may cost as a monthly savings plan and put them into that account. These expenses would come out of that account without touching your monthly income. For example, it's easier to pay $69/month in expectation you will have to replace your fridge, stove, or set of tires every 3 years than to have to come up with an unexpected $2,500 when the fridge dies on you. With these initial stats, you know how much you need to make a living trading... just to break even. So, what does the responsible business owner (trader) need to do? DOUBLE that number so you are putting an equal amount in savings (for a rainy day / a down month / or the "nest egg") and factor in taxes, say an additional $35% in the United States - the top tax bracket. This final number is what you should comfortably want to make to consider yourself financially free – not dependent on ANY source of income except for your efforts in trading. Now, given how much money you want / need to live on, what type of trading performance against what amount of capital do you need to achieve this monthly desired income?  How much capital do you have in your trading account? What is the Win Rate of your current trading system? How much money do you earn on each winning trade and how much do you give back to the market on every losing trade? Finally, how many trades on average does your trading system find for you each day given the hours you work your trading business? Let's assume you have a $20K trading account, and you trade using the 1% Rule of Risk Management and the 3R rule of expectation – your Reward-to-Risk Ratio. Let's also say that your trading system is able to locate two trades per day during the timeframe that you are "working" the markets and your Win Rate is 50%. So, if you you win one trade and lose one trade each day, winning $600 and losing $200, you are netting $400 for the day. Multiply this by 20 (the average number of trading days in a month) and you will have an estimate of what monthly income you can generate from your trading account. An important question is then, "How many trades might you take per day?" For example, during one backtesting period I found that my trading system, Sabre, generates an average of 11.7 trades per day in the Futures Market on the 1-hour timeframe. If you decided that you would be trading Sabre for four hours per day, say from 5-7 in the morning and 8-10 at night, it would pull up an average of 2 trades per day.  Once you are armed with all this information: Your trading account size, your trading system win rate, your trading hours and trade frequency, you can calculate how much income you may be able to generate from your trading system given that all things go according to plan. And as Hannibal Smith liked to say, "I love it when a plan comes together!" Once you run the calculations, if you run short of what you would like to earn, you can now determine what action(s) you might want to take to get you closer to your goal in a quicker timeframe. For example, if your win rate is 30% with your current trading system what would it take to get it up to 60%? Do you need to check your psychology? Are you constantly leaving money on the table? Are you fearful of entering trades that you should have logically had no problem getting into? Should you join a trading group that is experiencing a level of success you want to achieve to help you overcome any technical or psychological hurdles? Mechanically, if your trading system is not giving you the number of trades necessary to reach your income goals, what can you do? Perhaps you can go down a timeframe. Theoretically, if you are finding 2 opportunities per day on the 60 minute timeframe, you may be able to find as many as 8 opportunities per day by going down to the 15 minute timeframe. Maybe it's about capital: If you have a $5,000 account you might find a way to  put another $10,000 in there and instead of having a $50/$150 Risk:Reward ratio with a $5,000 account you could have a $150/$450 Risk:Reward ratio with a $15,000 account.  One way to grow your account is to never 'withdraw' by keeping all profits until your account reaches the 'critical mass' necessary to generate the required income. That's the beauty of exponential growth! Additionally, perhaps you can add a second trade strategy to your mix. If you are a Supply-and-Demand trader maybe you can find a breakout strategy to take advantage of additional opportunities. After developing Sabre, my trend-trading strategy, I developed what we call the Clubhaul: a counter-trend strategy. Now I had 2 different strategies, increasing my daily number of opportunities to find successful trades. Having access to multiple trading strategies is like the handyman with three different hammers or multiple sets of screwdrivers: They each do a specific job under specific conditions, and it's not always the case that "one size fits all." What goes for the handyman's toolbox, is also applicable for your trading toolbox. To get to where you want to go you need to know where you are starting from. As G.I. Joe says, "Knowing is half the battle." So hopefully you can create yourself a spreadsheet and crunch the numbers and you can see (1) where you currently are in your trading journey (how viable is my trading plan, how much capital do I have, what hours will I be working the markets) (2) where you want to be ultimately (how much income do I want to generate on a monthly basis, how much capital do I need to consistently generate that income, and which strategy(ies) will get me there? and (3) what I need to DO to get from where I am to where I want to be. Trade Well!
Education
by ocaptain
146
Becoming a Successful Trader is a Process of EliminationBecoming a trader is not a journey for the faint of heart. Becoming a successful trader is ultimately an act of determination . Not unlike the titular character of the John Wick trilogy (Quadrology? Pentology?), we traders have to be "a man of focus, commitment, sheer will." (and I'm certainly not being sexist... this goes for you female traders as well!) We have to get up early, stay up late, follow a routine, backtest, journal, rinse, and... repeat... and repeat ... and REPEAT . Focus . Commitment . Sheer will . Ultimately, the journey of becoming a successful trader is a process of elimination, not much unlike Michelangelo sculpting his great masterpiece, David, from a mediocre piece of marble . Reportedly, someone asked the artist how he made such a magnificent sculpture from the hulking slab of what was a previously abandoned project – literally a 'leftover' piece of marble. His reply was "Simple... I just chipped away all the parts that weren't David." Likewise, the successful trader we want to be is inside us... we just have to chip away all the pieces that are "un-traderlike". Early in my trading journey I had several friends, who career-wise, were in "high places", who tried to convince me that the road I was about to travel was a pathway to failure. One is a fund manager who oversees 8-figure retirement accounts for wealthy clients. Another friend is an industry recognized globetrotting auditor for Fortune-100 clients. Another friend was a nuclear engineer. (All smart cookies, right?) All three tried to sway me from my plans of becoming a trader by recounting stories of friend after friend who lost their homes, lost their fortunes, lost their marriages, lost their minds, etc. after losing their proverbial shorts in the markets. Their universal theme: "Trading is a path doomed for failure. It's legalized Gambling! Nobody makes money trading." Well, friends, just watch the news... somebody is making money in the markets, and the secret to success is to do what successful people do. My motto: "Do what successful people do, get what successful people got." Just because you are a successful accountant, a successful investor, a successful nuclear engineer, it doesn't make you a successful trader, and it's hard to take advice from someone who you respect, but has no experience in the field they are pontificating on, saying, "you can't make money doing 'X' " if they themselves have never done it.  I'm not going to listen to my brother for financial advice... he's broke. I'm not going to listen to my uncle for marriage advice... he's been divorced 3 times. I'm not going to listen to my brother-in-law for business advice... he's started and shut down 10 businesses in 5 years. Likewise, I wasn't about to listen to anyone, friends and family included, who have never traded tell me that I can't become a successful trader. It is said that you are the average of the five people you spend the most time with . If we want to become successful at trading, we have to associate with successful traders ... and we have to simply do what they did to get what they've got . We not only need to take on certain new behaviors and attitudes... more importantly we have to stop doing certain activities and stop believing certain things to start heading in the direction we want to go in our trading, or any aspect of our lives for that matter. These are the things that are preventing us from being successful. We have to take away all the "bits that aren't trader-like" and become the magnificent trader we are destined to be. This is a simple process of elimination. Elimination Point 1: Eliminate or limit relationships that do not support you and your goals. I had to 'eliminate' or limit some relationships (as mentioned above, people who never traded before trying to tell me that "nobody makes money trading"), and establish new relationships (those among the trading community who are successful at trading) and follow in the footsteps of the successful. One of my mottos as I alluded to before is: "If you do what successful people do ... you will get what successful people've got ." Why spend time with or take advice from someone with literally zero experience in a field they feel qualified to pontificate about?) Just look at all our FaceBook "friends" who think they're qualified to give advice on immunology, virology, or geopolitics of the Middle East. Turn that noise off... Ain't nobody got time for that!   Elimination Point 2: Eliminate or limit activities that do not move you forward in your goals. I love movies. One of the reasons (well, the primary reason) I built my home was that I could build my dream home theater in its massive bonus room. It has 2-tier seating, a 144" projection screen, an ear-splitting loveseat-pounding surround sound system, custom cabinetry, and so on... I would binge TV shows (7 seasons of 24, 5 seasons of Breaking Bad), I would have Movie Marathons (9 Star Wars films, 6 Middle Earth movies, 8 Fast & Furious films) and host monthly movie nights with our friends. Other hobbies included woodworking, writing, getting on the JetSki several times each week, not to mention all my other 'commitments'. We live fast-paced, hectic lives full of 'good' things. However, our glasses are full . In order to add "developing my trading skills" to our glass we have to "empty" that glass of 'good' things in order to make room for 'better' things. This can be a very difficult thing for us to admit: We have to sacrifice the "good" for the "better." My movie routine is now simply Friday afternoons with friends and a twice-a-month movie "date night". I'm not on the lake as often as I'd 'want' to be but I'm still getting out on the 'ol SeaDoo. I haven't done a recreational woodworking project in a long while. Freeing up or reorganizing my time gave me the ability to spend at least four (and sometimes eight) hours per day to hone my trading skills and develop my own consistently profitable trading system... Every day we need to focus on whittling away bad habits and building on good habits ... Every day we need to build our trading psychology from "I hope I can trade full time someday" to "By doing what these successful traders are doing I will get what I deserve after my consistent efforts in short order!" We need to change our commitment level from "I'll find time to fit in learning how to trade when I can" to "I'm committing the time to develop this skill in order to never be dependent on an employer, customers, on the economy, ever again!" And day by day I and my fellow traders who followed this philosophy alongside me were committed to build our trading performance from a 20% win rate, to a 40% win rate, to a 60% win rate... to where we now have a reliable, consistent income from the markets. Elimination Point 3: Eliminate all education channels but one: Become an education minimalist.  One of the blessings of the internet today is the plethora of information available about trading. One of the curses however is you can easily find yourself "spinning plates" jumping from guru to guru, watching video after video, following technique after technique and six months later after spending hour after hour doing all that you find you are no farther ahead in your trading journey than when you started.  (I speak from personal experience!)  I one day decided to simplify : simply look at the trading styles of all my favorite traders and choose one single trading method which I thought would be the best fit for me. My goal was to turn my light bulb into a laser . Fun fact: a 5-watt light bulb will barely keep a muffin warm. A 5-watt laser will cut through steel . If you focus all of your energy and efforts into one spot , you can literally burn through the barriers that have been holding you back from becoming the trader you want to be, the trader that you need to be. What one technique do you know, which one mentor or trader do you respect, which one timeframe can you focus on, what one market will you trade over and over until you have the win rate you need to take your trading full time ? Elimination Point 4: Excuses. Eliminate them! It has been said that "Excuses are reasons wrapped up in a lie." We can all justify, give a 'reason' for why we can't wake up early, why we can't stay up late, why we can't carve out 90 minutes per day to develop our skill, why we can't commit that first $10K in capital, why we can't join that trading group...  You can make Money , or you can make excuses . You can't do both. Find the reasons you can and will do what you need to do to get what you are committed to get. Put together a playlist of inspiring music. Put your alarm clock on the other side of the room. Read The Miracle Morning . (More importantly, don't just read it, DO the Miracle Morning!) We don't have the time to do everything in the world that we want. But we do have the time to do everything that we need to do that is important . If you "don't have time" to trade or develop your skill to the next level then it's just not "important" enough. If you really want to be a successful trader, (the great) it has to be important enough that it will usurp the time previously committed (or squandered) on other activities (the good). Take 15 minutes to look at what people, activities, excuses, you need to eliminate or limit, and what habits, routines, and relationships you will add or magnify in your life. Then put those items on the calendar and as the most successful ad campaign in history commands, "Just Do It!" Trade Well!
BITFINEX:DOGEUSDEducation
by ocaptain
108
How Charts Should be Set Up (info via Mark Polumba) Charting (Planning the Trade) Dark Mode Wicks stand out (Wicks indicate a rejection: buyers were there to push it back up or sellers were there to push it back down) 4 hour chart Magnet locks trendline to wick Trend Line - Right end extended for future spots AGAINST US dollar - COIN base, against Bitcoin - Finance Log scale equals out return from a macro scale and looking at asset over long period of time especially when an asset has done 100% growth multiple iterations Time and percentage data is important when looking at risk-reward: long position shift Trade list: add BTC(USD) BTC1! - indicates gaps (90% of gaps get filled) BTCUSDLONG/SHORT - how many OUTSTANDING shorts on currency of bitcoin, heads up on squeeze or overextended long positions that would be forced sells on market and add market pressures BTC.D - market cap of bitcoin (of all of the total crypto markets, what percentage of all that asset class is held in bitcoin Total crypto market cap - overall market cap of all assets held in crypto Total 2 - shows value of all other crypto taking bitcoin out of account Between 4/5/6 Can see overall health of market and how well altcoin is growing in comparison Often things move in 4 cycles between Coffins? And bitcoin and coffins and alt coin (alt coin presents incredible opportunity to get a double gain if both alt coin value are going up to the value of bitcoin Stick to top ten because they have the most liquidity. Can’t get out of price without liquidity ETHUSD - coin based ETHBTC - binance Chart of ETH/BTC might look diff then ETH/USD which creates lots more opportunity for creating value LINKUSD - coinbased LINKBTC - binance ATOMUSD - coin based ATOMBTC - coin based RSI MACD, top TTM Squeeze Volume - alert on volume moving up 50% in 2 bars Alerts are your best friend
COINBASE:ETHUSDEducation
by oliviamackenzie
1
Power of compounding interest, but why do traders still fail ? Hello everyone: Welcome to this quick educational video on Compounding interest in trading. Today I want to break down the benefits of compounding a trading account while keeping good risk management at bay. The reason why compounding interest is so lucrative is due to investing interest on top of interest, and your trading account can grow much faster than traditional investment returns. The important note is that, by having strict risk management rules, proper trading plan, the account can grow over time. But why do many traders fail to do so ? Let's take a deeper look into this: Many new/beginner traders often get involved in trading due to its profitable potential. However, most of them do not learn about risk management, trading psychology on mindset and emotions. They tend to over trade, over leverage their accounts in hope to double it in a short period of time. This almost always leads to traders to blow their accounts, and re-deposit more money to “chase/revenge” their losses, and the cycle continues. The truth is, growing the account by compounding can eventually double a trading account, but only in time and with strict risk management rules. However, the greed, emotion and mindset often become the tread stone for the traders’ success. It's important to understand that having a consistent, sustainable approach in trading can lead to profits and growth over time, but it's not something that is instantaneous, which is what most new/beginner traders often misunderstood. This can be due to social media, and lots of typical trading “guru” out there promising guaranteed results and easy money. Take a step back and think about compounding interest in time and scale. 5-7.5% return per month may not seem much for a small trading account, but it is sustainable and consistent by not over-risking and over-trading. In time when the account is at a larger scale, a few % return with compound effect in a year can generate very sizable return and growth. In today’s trading industry, there are many prop firms out there that allow you to trade their funds, if you can be consistent and sustainable. Understand these firms are not looking for traders to double their larger capital, rather, to have consistent return and proper risk management. When you can prove you can be consistent to compound a small account, then when you actually do trade a larger account, the % return would be the same. Last Note: Build up the right habits from the start. Your job in the beginning of trading is not to make massive returns, rather to focus on risk management, control emotion, and understand trading psychology. Once all these are checked, then you will be miles ahead of other traders who are still struggling to understand the concept. Any questions, comments or feedback welcome to let me know. Thank you Jojo
BITSTAMP:BTCUSDEducation
by jojofang0901
149
BASICS OF SAVING & INVESTMENT | RULES YOU SHOULD NEVER BREAK Debt and living on credit is a universal norm . While the "wisest" among us are trying to persuade themselves how they "hack" the system buying on credit card smartly, the richest among us keep following totally different commandments . You must remember that debt makes you dependent , it makes you submissive to the system. To become truly free and wealthy, here are the simple rules that will change your life if you follow them: 1 - Spend less than you make 2 - Do not save what is left after spending, but spend what is left after saving 3 - Invest the rest in the industries that you understand 4 - Never borrow to invest 5 - Stop trying to get rich quick 6 - Never let your emotions intervene 7 - Patience pays The rules by themselves are very easy and straightforward, however, most of us are not disciplined enough to follow. Learn them, try them, practice them and one day you will become free! ❤️ Please, support my work with like and lovely comment !❤️ It truly helps! Thank you!
COINBASE:BTCUSDEducation
by SignalProvider
18
BASICS OF SAVING & INVESTMENT | RULES YOU SHOULD NEVER BREAK Debt and living on credit is a universal norm. While the "wisest" among us are trying to persuade themselves how they "hack" the system buying on credit card smartly, the richest among us keep following totally different commandments . You must remember that debt makes you dependent , it makes you submissive to the system. To become truly free and wealthy, here are the simple rules that will change your life if you follow them: 1 - Spend less than you make 2 - Do not save what is left after spending, but spend what is left after saving 3 - Invest the rest in the industries that you understand 4 - Never borrow to invest 5 - Stop trying to get rich quick 6 - Never let your emotions intervene 7 - Patience pays The rules by themselves are very easy and straightforward, however, most of us are not disciplined enough to follow. Learn them, try them, practice them and one day you will become free! ❤️Please, support my work with like and lovely comment!❤️ It truly helps! Thank you!
COINBASE:BTCUSDEducation
by SignalProvider
8
The Key To Confident Trading - Focus On What You Can ControlHi Traders, today's topic regarding "The key to confident trading - focus on what you can control." Believe or not, some of the best Traders out there I know, have huge amount of confidence in their own trading profitability. The confidence to stick to your process & strategies, execute your trade, and get yourself through drawdown period are all essential. Focus on your mistakes, is the one and only thing that makes you a better Trader each day. During your journey to a consistently profitable trader, it's crucial to understand what are some of the factors you can control, and what you cannot control. This post is inspired by Mark, a trading mentor. Can 1. Pre-trade/ Post trade Process Have a strict routine and checklist, before you start jumping into the market begin shooting your position all over. Spend the effort to create your daily plan, be prepared, and be sharp clear on what you're looking for. After any closed position, spend the time to review and reflect them, identify common mistakes and methods to leverage them into your advantage. 2. Trading environment Trading requires immense focus, you must have a peaceful trading office that allows you to tackle the market with a calm mindset. 3. Position size Majority of Traders blow up their capital due to improper position sizing and risk management. Protect your capital at all cost, and never allow one position to cause damage to your capital. Treat every trade the same way, trading is a probability game. 4. Entry/ Exit The patience to wait for the market to come to your entry point/ criteria is essential. The same goes to exit, identify your exit plan beforehand, so you're well-prepared for any possibilities. 5. Stop position Knowing when to get out of a trade is equally important as your entries. Identify multiple ways to exit a position, it could be scale out, trail stops, market structure, etc. Learn how to squeeze as much milk from each winning trade and ride them through your daily review. 6. Markets you trade Especially in the beginning of your trading journey, narrow down your watchlist and focus on what you're good at. Less is more, pay more attention to those high quality setups and ignore the rest. 7. Diet, nutrition, sleep Great Traders focus on their diet, nutrition and sleep. If you do not have the discipline to eat and sleep properly, how good would you be at managing your capital? To be your at your peak mental performance, you must first have a healthy physical state. 8. Education & learning Keep grinding and learning everyday. Do not overlook the significance of each day, small steps everyday is what get you towards your goals. Cannot 1. What the market does Most of the losing Traders tend to blame the market or themselves whenever things aren't going according to their plan. Understand the probability and possibility. Focus on your personal performance rather than the market behaviour. 2. When it stops you out The feeling of getting stopped out of a position is unpleasant. But on the positive note, getting stop out of a bad trade avoids you from wasting your time and energy on any unfavourable setups. With a proper SL and Risk Management, several losing trades aren't a big deal, as you're confident that your capital is well-protected. Always stay positive! 3. How many losers you have As a wise Trader, we can't control how many losers we encounter as trading is a game of probability. Instead, what we can do is to focus on get to get ourselves out of a losing streaks, journal and review our mistakes. A healthy equity curve is never like a 90 degree angle, but a slow and steady uptrend-like movement that keeps you in the business as long as you want. 4. How quiet or volatile The volatility of a market is unpredictable & uncontrollable. But the ability to spot them and identify trading potential is important. If the market is quiet, simply stay out of the market if the potential isn't there. "Money is made by sitting, not trading." - Jesse Lauriston Livermore 5. Surprise events Be cautious on major news event (Eg. NFP, CPI , Unemployment Rate, Interest Rate, Government Speech). These major events usually cause some surge in market volatility , stay out of the market to avoid some unpredictable spikes OR slippage. Comment down what's your worst experience trying to 'control' the uncontrollable! "The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading." - Victor Sperandeo Trade safe as usual. Do follow my profile for daily fx forecast & educational content.
KRAKEN:BTCUSDEducation
by TraderNeoh
10
Retail gamblers found the holy grail... To be a rogue trader!I just had a little look into "robots". I've known from reading some of the BIS reports that Forex quants mostly vanished after 2008. But I wanted to go on these FX retail sites that are heavy in the "automated" very short term "trading", which is not actually day trading as they run these programs 24/24 there is no "end of the day so let's stay out of the market for 2/3 of the time to compound profits faster" 😄 Here is how I expect an exchange with an "automated" day gambler would go: My day gambling strategy works muahahaha it does well on backtest for 1 years.   Me: "That's simply because the pair you tested it on has been trending for 1 year you numbskull" Well you just have to apply it in the right conditions!   Me: "With your crystal ball? If you know what they are, why not just manually take 1 trade?" Aha! Because of the power of compounding! Rather than risk 1% to make 5% I will make 2% 25 times.   Me: "Your brain on holiday? Forgot you would also compound spread costs and losses?" Well forget it, if you rly zoom in and can't see anything it looks magical! Doesn't depend on the 1 year trend!   Me: "Then it depends on the 1 month trend?" No! no matter what you say I have an idiotic answer! Usually starts with "You just have to"! I'll throw idiotic answers at you until you get bored and give up on me because I am hopeless!   Me: "Well done I give up" "Thanks for the laugh though" 😂 Take a good friend of mine, UDNCNY: I can tell you for a fact that an "automated strategy" of the kind I am going to describe would work. Don't even need to backtest it. The strategy is as follow: Take about any indicator (RSI, Bollinger Bands, etc). When the price goes down (< 30 RSI or lower band) then goes back up to the middle (RSI 50 or center of Bollingers) you sell. And of course the same on the opposite with buying. Yes that strategy would work, we can quickly eyeball it: In practice this is not even what they do. A risk-to-reward ratio as enormous as puny 1-to-1.8? That's like 1% of retail. Never! What they do is have super distant stops, or no stops. And quickly by looking at USDCNY you understand how they can win. Shorts at a loss are all in a pullback, and the price never goes very far, so by just waiting they will turn into winners at some point. In my example which wasn't the best part of the USDCNY trend, there are 6 short signals, and 3 longs. The longs that are not winners quickly, will "never" recover so they'll take a loss on a far away stop here. But some longs are winners, and most to all shorts are winners, the smaller the reward and bigger distance the stop is, the close to 100% winrate it gets on shorts. To sum up, with their ridiculous high winrate strategies applied in the right conditions: - The vast majority of trades are going to be winners no matter what - Maybe 1/3 of the losers are in the wrong direction and will be big bags - Maybe 2/3 of the "losers" are in the correct direction and eventually will recover These troll retail gamblers are zooming in a flower to the molecule level and wondering why it suddenly went invisible. Must be magic! They have no clue. There is an insect on the flower, that's why you can't see the flower molecule anymore you numbskull. This indicator strategy I mentioned works on a trend, how about a nice thick really gross sideways? Constantly stopped! But have no worries for the retail gamblers have a trick up their sleeve! With a very wide stop such as the risk is 20 times the size of the reward you will keep winning! Hurrah! Martingale! And then it will start trending in the wrong direction and the clowns will get wiped out. And I can assure you, this happens more often than 1 in 20 times 🙂 Now we are getting to my favorite part: The holy grail in the title. I went to myfxbook take a look at system. By default they show you only the ones with positive returns, and many of those are very recent. No no no no no. let me change that filter to at least 1 year of activity, and any returns. What's this? More than half show red returns? Oh my that's a lot of -99% 🙂 Most people quit before getting to -99. How about I pick one of the "winners"? Weird, why are their open trades private? Another one. Private. Another. Private. And another, private again! Oh I found one! TrumpBot. Interesting, that's a lot of red sir. 70 open trades, almost all in the red. USDCAD, EURUSD, USDJPY. All EURUSD are sells, and all the ones ones are buys. He took plenty of short term trades (well long term now as he's been holding the bag for a while) LONG on the USDOLLAR. Oh no! Remember USDCNH? Well these bags go back to early in the USD downtrend. He's been holding for nearly a year 🙂 L - O - S - E - R Just takes 1 L to wipe out these clowns. They can hack some site to make losses vanish, and obviously the dum dums that buy these kinds of systems are too lazy to really do their research so they never notice it, but if it's real money IT'S REALLY GONE. There are some guys that have been struggling to make money for 20 years and have sold robots for 10. Is it cruel if I... roll myself on the floor while I laugh to tears? 🤣 What about all these "private" systems? They're holding bags too? There is a name for this. It starts with an F. And ends with raud. It is the rogue traders specialty. They do a bit more (pros), call them "hedges", manipulate accounting for example, take opposite positions to cut their losses while keeping them secret (unrealized)... Here is a regulator release on famous Karen Bruton, known as "the supertrader". She was made famous by Tom Sosnoff that had her appear on his show. The SEC fined her and a partner to over a million dollar. She lost way more than that. No jail. www.sec.gov Tom Sosnoff is a market maker from the 80s that created a popular trading platform that he sold, and now teaches people to sell option spreads. With no edge or risk it will return little money, like 1%. Karen the Supertrader got superresults by leveraging that strat. Which causes it to LOSE money. Looks like Karen couldn't figure out high school level maths, nowadays this got to be 2nd uni year, the levels has collapsed it's amazing, my sister aiming for med school doesn't even HAVE math classes since 16 year old, science with no maths, genius government. "But kids don't like it", ye so let's make them even dumber than they already are! Yes but Karen convinced investors, and even Tom Sosnoff and his colleagues, that she made money! Ye, just like all the myfxbook trolls. She never closed the losers. Plenty of realized gains, and much larger unrealized losses. Pathetic. And the flip side? Warren Buffett has held unrealized gains on Coca-Cola since 1987. Never held losses very long. Ever. Some uni nerd looked at it. We know because he has to report all positions. Losers (and crooks) hold losers. Winners hold winners. That simple.
Education
by MrRenev
Five Ways To Use The Multiple Chart LayoutOur multiple chart layout tool gives traders and investors an easy way to study multiple symbols or timeframes at once. In this post, we'll explain five ways to use the multiple chart layout feature to optimize your process. Chart different timeframes If you look closely at the charts above, you will notice that there are different timeframes for each chart. One is a daily chart, one is a weekly chart, and another is a 30-minute. The multiple chart layout makes it possible to see these different timeframes all on the same screen. If you search for trades and do research on all time horizons, this is an important feature to master. Customize the look and feel of your layout Every trader and investor is different in their approach. That's why it's important to have customization tools available. Each chart in the example above uses a different color gradient as its background. The chart farthest to the right is also a line chart while the other two show candlesticks. When using the multiple chart layout you can create your own custom workspace to match your individual style needs. Diversify your indicators The charts above also show different indicators. For example, the yellow line farthest to the left is a Moving Average while chart in the middle shows a Volume Profile and the chart on the far right shows only volume. You can add only the indicators that matter for each specific chart within your layout. Chart different symbols at once In the example above, we're looking at three totally different symbols, but all viewable on one screen. This way we can follow price action, study similarities, and look for ideas across different assets. It speeds up our research and is another helpful way to monitor different symbols across the market. Sync your charts With the click of a button you can sync the symbol, crosshair, interval, time, and drawings for all charts in your layout. To get started, click the layout button at the top of your chart and then find where it says "SYNC ON ALL CHARTS." From this menu you can select the syncs you need so that they all update instantly. Thanks for reading and we hope you enjoyed this post! If you have any tips, suggestions or feedback to share about the multiple chart layout please write it in the comments below.
NYSE:AMCEducation
by TradingView
75