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Trading Psychology

Pyschology Tip of the dayHi guys, I haven't posted anything but analysis of the trades I may take in the upcoming week but I have not really covered pyschology maybe as much as I should be. I think this a huge part of trading that a lot of newer members may just skip or may not pay as much attention as they should to the subject. Being angry at something in your life or being upset will effect your trading and will blow your account if you cannot control your emotions. You need to have a risk management system in place that will limit your losses and give you that edge in the market in the long run. I know its super typical for people to say but trading is only a small percentage of the job, the real job is the pyschology and being able to control your self and be smart about your decisions. For example, today I had a hard time thinking if I should take my NZD / USD trade or not, I was thinking that it is what my setup would need for me to take but the only thing is there is no clear trend but there was a rejection of the beginning of a uptrend in my mind. Since, I am still feeling a little off about this trade I am going to lower my risk for this single trade and I will require a lot more confirmation before taking this trade. If the trade goes in my direction I can always go and add more to make a full percent or even more if you move your original trade to breakeven. Do not be afraid of missing out and try risking one or two more percent the single second the trade goes in your direction, the market will always be their and there will always be a trade for you to take. If not, the hardest thing for a trader to do... is not trading, sometimes being patient and waiting for your perfect setup is better than having three losses before taking a profitable trade, this is only going to loose money in the long run and will maybe make you a breakeven trader. If you guys want to see an analysis that I do for every pair that I am interested in take a look at the link below, this will be my most current analysis at the time. Thanks again, Keyslot
Education
by KeySlot
1
AUTOMATED TRADING BOTS: How to profit with Tezos.Tezos is one of the best token for our robot. Our robot mainly uses the DCA (dollar cost averaging) trading method. If the price drops, instead of the Stop loss order, we have a Buy limit order. This will also cause the Take profit value to drop and approach the current price. If the price falls and falls, the robot buys and buys. This keeps the Take Profit lower and lower. After that, the price of the token rises and our trade ends with Take profit, which is not far from us thanks to constant and precisely predefined purchases. The XTZ / USDT currency pair is suitable for our demonstration. You see very high volatility. It is through volatility that our robot can be profitable. If the price still went in one direction without frequent fluctuations and without "waves", the robot would earn very little. We need great volatility for big profits. Volatility in the TradingView platform will be helped by the Historical Volatility indicator. This indicator often (on this time frame) intersects the value of 50.00, which is rarely affected for low-volatile currency pairs. For example, you would look for Bitcoin very bad around 50.00 on this time frame. The key to our profitable trading bot is volatility! At a time of market colapse, when almost everyone is going through and positions in the Futures markets are being liquidated on a large scale, we are EXTREMLY profitable thanks to our robots. Of course, it is very important that you know how big the position is and how often, or at what intervals it is necessary for the robot to buy more. In no case is every setting of the robot profitable, on the contrary, setting up a profitable robot is not easy. You will learn how to set up a robot to be constantly profitable in our Academy. PS: One of the best things about trading with robots is that you remove all emotions and decisions. We wish you a nice day. UCT team.
Education
by UltimateCryptoTrader
FX Compounding Calculator (Do You Want To Be A Millionaire?) Only one way to grow a small account into a large account. That is by treating Forex trading as a marathon race not a sprint race. Do you have 2 to 5 years? You can use the compounding calculator to calculate profits. This allows you to understand better, how your trading account will grow over time. One of the most interesting facts about compounding is, that even a moderate monthly gain turns your initial capital into a serious amount of money over time. A Forex compounding calculator is useful to simulate how compounding the initial equity and the profitable trades, with a set gain percentage, can make a trading account grow over time. It works by simulating the compounding and the reinvesting of the same chosen gain percentage of the account's total equity. With this calculator traders can input the settings in order to accurately calculate the compounding results of a set of winning trades over a period of time. The use of this calculator can demonstrate traders how powerful gains compounding can be, and, that even a moderate gain percentage of 2% (for example) per trade, can turn an account’s initial capital into a substantial amount of capital over time. You will be surprised how powerful compounding can be. My goal is profit at least 1% per trade and/or 1% per session/day. Look at chart: You Can Do It- by letting your account grow with compounding profits < this is the holy grail of building your account. Albert Einstein said,"“Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.”
Education
by Anbat
1
YOUR SUCCESS IN TRADING | Expectations VS Reality 💰🤔☠️ Hey traders, Being a full-time trader & running a coaching program for the last three years, I met hundreds of struggling traders from different parts of the globe. Guess why the majority of them could not make it? What was the main reason for their bad luck? It wasn't their trading strategy, nor their technical analysis. The source of their failure was the expectations. Trying different trading strategies, following the signals of different signal providers, these traders expected quick gains and exponential account growth. They were actually in a state of a constant search of a holy grail, of a magic wand that will open Pandora's box to them. Just a single losing trade made them skeptical while the first losing streak made them drop the strategy and return back to the search. They keep spending thousands of dollars on trading strategies promising them close to 100% win rate. There is this common mantra, the stereotype about a pro trader: a guy with 4 screens making a quick buck on each and every market rally, driving Lambo, and living in a mansion. Unfortunately, the reality is different. Ahead you will encounter loneliness, losses, pain, and disapproval. The road to success in this game is long and dangerous. Get ready to see the skepticism in the eyes of your relatives and friends. Many years and tons of money must be spent in order to make it. But even mastering the system, becoming a consistently profitable trader you will not constantly beat the market. Your wins will just slightly outperform your losses giving you the means for living. If you are ready for that if you are courageous enough to start and to proceed no matter what, you are already one step ahead of the majority. Be prepared to work hard and practice much, set a correct goal, and sacrifice your presence for the sake of an independent and prosperous future. Are you ready? ❤️Please, support this post with a like and comment!❤️
Education
by VasilyTrader
145
Retail vs Institutional InvestorsRetail ✔️Retail Traders are individual traders who buy or sell stocks, securities, or assets from their personal accounts. ✔️Retail Investors mostly focus on technical analysis, price patterns, and Indicators. ✔️Because of low volume, orders submitted by a retail trader cannot affect the price of an asset. ✔️Retail traders can come out of trades or their positions easily at any time with minimum slippage. ✔️Retails investors have more quality of life as they don't have to trade on a regular basis and can take a break whenever they want. Institutions ✔️Institutional traders are highly skilled individuals who have a degree in finance, economy, or math and are employed by large institutions to do the trading. ✔️Institutional traders carry out the most trades over any major exchanges and greatly influence the price of a security, commodity, stock, or cryptocurrency. ✔️Institutional Traders have access to a large amount of capital and exotic products. They also have early access to the latest news and buzz as they have the ability to pay a good amount to various media outlets. ✔️Institutional Traders manage accounts for larger groups or institutions, banks, hedge funds to buy and sell stocks. ✔️Because of large volume orders, institutional traders can greatly impact the prices of a security ✔️Institutional traders focus on fundamentals, sentiments, and trading psychology. What kind of trader are you? And let us know more differences between these two in the comments box below. Follow us for more educational ideas, analyses, and scripts. Happy Trading!
Education
by Tuned_Official
Trading Charts (What Do You See?)What do you see on attached one hour EurAud price action? (you should write down your answers to as many as you can)-Commonsense Here are some questions to ask yourself? (Yes, there are other questions to answer) - its the only way to trade Forex for the long term. 1) Any sideways price action? 2) Any downward price action? 3) Any upward price action? 4) What session (Sydney, Tokyo, London or NY) did price action move? 5) What pair are you trading (EurAud)- Which part is in session? Are they strong or weak? 6) What time in session is it? before major news? before session open? during two session overlap? Tokyo/London or London/NY? 7) Where is price action right now? Around a psychology round number? Per chart: 1.60500 or 1.60000. Yes, there are more psychology round numbes. 8) Where is high or low of day with this pair? Do high and lows occur mostly or generally at around same time of session with this pair? Part of edge? 9) When did big bank or institutional candles get involved? How could I have been on same move with them with right risk management? 10) Any doji candlesticks? undecided. When did they happen? Could I have traded a breakout of that range? 11) Any engulfing two candlestick patterns? If yes, when did they happen and how could I have been on that trade? 12) Any pin bar three candlestick patterns? If yes, when did they happen and how could I have been on that trade? 13) When is low liquidity and volume in Forex session per day? End of London to End of Tokyo (12 hrs). Should you be day scalping or scalping during these low liquidity and volume times of day? Scalping only. 14) What is pair doing on higher time frames of 4 hour, daily, weekly and monthly? 15) What is the pip value, lot size on this pair? 2% of $10,000 is $200. Always keep your risk the same on every trade- make trading mechanical. 16) Should I trade a Gbp/Jpy trading during NY session? Yes, during overlap (4hrs) of London/NY session is high liquidity and volume to trade.
Education
by Anbat
Weekly Market Maker Cycle (Go With It)Weekly Market Maker Cycle: On a 1 hour or 4 hour chart, you should be able to find this weekly market maker cycle. If you know what Big Money/Smart Money is doing, trade with them. The cycle starts on Monday and ends on Friday, MM (Market Maker) will mostly trap traders on Monday, everyone is back on screens and is expecting a highly productive week of trading. MM makes what we call a stop hunt, induce traders to take wrong direction. So MM will reverse price action against everyone. This cycle has three stages: 1) We have accumulation where the market maker accumulates contracts. 2) Next we have manipulation, where the MM manipulates price against the traders that have been trapped on the contracts MM have accumulated. 3) Lastly we have the trend release, where the MM releases the intended trends after every stop loss has been hit. The MM has three weekly templates that they follow, but they wont make this very obvious for everyone to see. Its there in front of your eyes its just that you don't pay full attentions to what is really happening on chart, instead you are being fed with useless indicators and zones. At times, MM may start trap on Friday, setting bait for traders to become victims next week. MM do that so on Monday, MM doesn't start on a empty slate, but with traders trapped from previous session or week. If you understand price action you can see this trap by the MM. Forex is a physiology game, which most realtor traders lose.
Education
by Anbat
2
8 TRADING HABITS OF SUCCESSFUL TRADERS👩‍💻👨‍💻 Hey traders, Consistently profitable traders have a lot of things in common. Watching how they act and following their ideas & thoughts we can spot a lot of commonalities among them. In this article, I have collected 8 trading habits that a trader should have to become successful. 1️⃣ - Continuous Learning 📚 The markets are infinitely deep in their nature. Trading & constant monitoring of the market always unveil new, uncharted elements and things. With 8 years of day trading, I can't help wondering how many new things I learn each and every day. With continuous learning you evolve, you become better and it improves your trading performance & results. 2️⃣- Emotional Stability 🙏 The market is a wild beast who always wants to bite us. And most of the time it manages to do that: drawdowns, losing streaks... Those who trade for at least 1 year know how unpredictable and unstable the market is. A perfectly looking trading setup can easily turn into a big losing trade. Of course, that is painful, of course with more and more losers, the anxiety will pursue us, the stress will overwhelm us. Only by remaining stable and calm, you will manage to overcome the negative periods. Learn to control your emotions, learn to take losses! 3️⃣ - Constant Practice 💪 Pro traders never stop, they always watch the charts, they always monitor the prices, and follow the market. Trading requires constant TRADING. Just spending one single week on a vacation without charts, you can not imagine how hard it is to return back. The trading skills must be constantly maintained. 4️⃣ - Trade Journaling 📝 Pro traders always assess their past performance & results. They track each and every trading position that they opened. Both losing trades and winning trades require analysis and observations. Only by studying the past results the trader can improve his trading performance and evolve. Only by identifying mistakes & peculiar commonalities, the trader learns to lose less than he makes. 5️⃣ - Anticipation of Different Outcomes 👁 Everything can happen in financial markets. Pro trader always reasons in probabilities. He knows that 100% chances do not exist. Accepting the probabilities the trader (even while opening the trade) is always ready for completely different outcomes and accepts each and every move of the market. 6️⃣ - Flexibility & Adaptivity 🕺 The markets are always changing. If you were trading before COVID crisis, I guess you feel how the reality among us shifted. With fundamental changes in our daily lives, the markets changed as well. It is hard to say what exactly has altered though, however, we all can feel it. In order to survive in a constantly changing environment, one should adapt. One should look for ways to be one step ahead. To beat an evolving market, the traders should constantly polish their trading strategies, drop the things that don't work anymore, and adopt the new, reliable ones. That is the only way to stay afloat. 7️⃣ - Selection of Right Markets 📈 The trader always knows what to trade and he always has a reason. He admits that some financial instruments are appropriate for his trading style while some are completely not. Pro trader does not wander around aimlessly from one market to another. He has a plan to follow and rules to rely on. 8️⃣ - Realistic Expectations ⭐️ Many newbie traders drop trading just because of wrong expectations. The desire to get rich quick, to catch 20/1 risk to reward trades without substantial losses is playing a dirty trick with them. The true trader is not greedy, in contrast, he is humble and the only thing that he wants is simply to win more than he loses and make that amount sufficient enough to have a good living. Adapting these 8 habits, you will see dramatic improvements in your trading. And even though most of them require a substantial effort and many years of practicing, trust me, it is worth it and it will help you in your daily life as well. Would you add some other habits to this list?🤓 Let me know in a comment section. ❤️Please, support this idea with a like and share your feedback in a comment section!❤️
BINANCE:BTCUSDEducation
by VasilyTrader
30
Fibonacci Retracement Entries Part 3Fibonacci Retracement Tool can: 1) Give you Support lines or areas 2) Give you Resistance lines or areas 3) Where to enter a trade 4) Where to place your stop loss 5) Where to place your target profit (use the Fibonacci extension tool for profit targets)- where price action MIGHT go too. Your trading will be easier if you use the Fibonacci Retracement tool (and Extension tool)- by making your trading strategy mechanical. Trading without emotions and with risk management will put you into the 10% of successful traders, this is where you want to be. Buy low into an upwards trend and Sell low into a downtrend will great increase your profits and reduce your stress- Fibonacci Tool is the one for this.
Education
by Anbat
​​YOUR PROFIT FORMULA | Three Essential Ingredients 🤔💭💫 Hey traders, We must admit that it is phenomenally difficult to become a consistently profitable trader. This journey requires years of practicing and training, constant losses, and nervous breakdowns. If you are a struggling trader, if you are still looking for your way to succeed in this game, here is the formula that will help you to chase consistent profits. 💰Consistent profits = 📝Trading Strategy + 🤬Emotions + 📈Market Sentiment Let's discuss each element separately. 📝Trading Strategy: To be in profit in a long run requires an understanding of what do you actually trade. You must have strict and objective entry conditions. You must rely on the objective & verifiable rules for the execution of market analysis. You must have a plan to follow. A plan that is backtested and proved its efficiency. 🤬Emotions: Even the best trading plan, the most accurate trading strategy can be easily beaten by emotions. Emotional decisions such as revenge trading and early position close can easily blow the account of any size in a blink of an eye. The most disappointing thing to note right here is the fact that you can be taught how to execute technical analysis but you can not be taught to control your emotions. Your main enemy here is yourself and being in a constant battle with your greed and fear it is very easy to go broke. Only by being humble, disciplined and patient, you can successfully apply a trading strategy. 📈Market Sentiment: Mastering your emotions and having studied a trading strategy, it looks like it is finally the time to make money. However, occasionally the market tends to be irrational. Being chaotic and unpredictable, sometimes the market neglects every technical and fundamental rule. Crisis, euphoria: the reasons can be different. The fact is that such things happen. And it is your duty to learn to deal with unfavorable market conditions. 💰To become a consistently profitable trader, you must become the master of these three elements. Only then the doors to freedom and independence will be opened to you. ❤️Please, support this idea with a like and comment!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
51
How to use trendline to identify price action structure/patternHi everyone: Many have asked me about how to properly use trendlines to identify price action structures and patterns. So in today’s educational video, I will go over this topic in more detail. First, I use the trendline as a “frame” to identify structures and patterns, and NOT use it as a Support/Resistance. What I do is to put in the trendline for the highs and lows of the price action that can help me to pinpoint what the price is doing, what kind of a correctional structure that it is currently in. Typically after an impulse phase of the market, then we start to identify a structure/pattern by connecting the swing highs and lows. Second, as I always point out in my videos/streams, a structure/pattern needs at least 2 swing highs and lows to classify as a structure. Certainly more swing highs and lows are good, but it's not necessary. Often I get asked about the “third touch” or more. To me it's not necessary, but if price does form the third touch, I would proceed the same as the price has a second touch. Third, we are identifying the price action correctional structure, and sometimes the market is not perfect, it will not give you a textbook looking bullish flag as an example. Hence the backtesting and chartwork from each trader is important to get your mind familiarized with the market and its “imperfect” development of the price action. After identifying the impulse phase, then look to see what the market is doing. Is it falling into a consolidation ? Not much movement except sideway price action, or ascending/descending like consolidation will give you a clue on whether the price is correcting to continue, or correcting to reverse. Take a look at the educational videos I have made in the past regarding the type of correctional structures we typically see in the market. All the videos are down below. Continue to backtest and do chart work to get familiar with drawing in the structures/patterns. The more you do these, the better and easier it is for you to identify them in your trading journey. Remember, the market is not perfect, so not all the structures/patterns will be “Textbook” like on the real, live market. Learn to deal with the “imperfect” market, so you can better utilize price action analysis to your advantage. Any questions, comments or feedback welcome to let me know :) Thank you Below are all my price action structures/patterns videos on different type of corrections. Continuation and Reversal Correction Identify a correction for the next impulse move in price action analysis Impulse VS Correction Multi-time frame analysis Continuation Bull/Bear Flag Parallel Channel (Horizontal, Ascending, Descending) Reversal Ascending/Descending Channel Reversal Rising/Falling Wedge Reversal Double Top/Bottom Reversal Head & Shoulder Pattern Reversal “M” and “W” style pattern Reversal Impulse Price Action Continuation/Reversal Expanding Structure/Pattern
OANDA:XAUUSDEducation
by jojofang0901
61
What Type Of Forex Trader Are You? Four Types Of Forex Traders: 1) Day Trader- A day trader is one who closes all trade positions at the end of each trading day and makes sure there are no open positions overnight. Day traders function with an extensive knowledge and experience of what the Forex entails. This category of Forex traders makes use of a variety of methods to make proper trading decisions that lead to success. Some trade securities with the use of technical indicators and analysis in the calculation of favorable trade entry and exit time frames while other trade based on instincts. 2) Position Trader- A position trader trades securities in the Forex market by holding a trade position for a long-term, in a period of weeks to months and sometimes, years. These set of traders, unlike day traders, are less concerned with short-term price fluctuations and the economic news release of the day. Position traders are not active traders. They initiate few trade positions in an entire year. 3) Scalper Trader- A scalper trader holds a trade position for a short-term period in an attempt to make profits out of the short hold. These set of traders buy and sell securities many times in a day with the mindset of making a small percentage of consistent profits out of the market. A scalper uses a manual and automated trading system on various platforms thereby developing functional strategies that generate profits from the bid and ask spreads. The manual system of trading involves the trader making trade executions while sitting in front of his computer while the automated trading strategy involves the trader setting rules and guidelines on how to use trade signals. 4) Swing Trader- A swing trader are those who make profits and returns in the Forex market by holding a trade position overnight to several weeks. These set of traders make use of fundamental analysis, the intrinsic value of a security, price trends, patterns, and technical analysis to search for financial instruments with short-term price momentum. Swing traders trade by the identification of securities which has an extraordinary possibility to move in a short time frame. The goal in swing trading is to trade on large price moves on a daily basis by spending longer time (weeks and months) monitoring the security in question.
Education
by Anbat
Trading Daily Charts (Might Save Your Trading)If You Master Forex Trading On Daily Charts, You Can Trade For A Lifetime. (Understand the language of candlesticks on daily charts) 1) Quality trades not Quantity of trades- Trade your best trade setups only at swing points on daily charts. 2) Patience- You make money waiting not trading. You do not need to trade 20-30 times on lower time frames per month, when 2-3 times will make same money with less emotions and stress. Also, you will have more time freedom to enjoy life and find balance. Forex trading is not everything you are. 3) Probabilities- Only trade your best set ups at swing points (ex: like support/resistance, fib ret 50% to 61.8% area, swing points, etc.. 4) Lower Lot Size- Related to using high stop loss, but like chart example let trade run for one or two weeks. 1:5 to 1:8 Risk Reward on trades will be goal. 5) Turtle Not Rabbit Trading Is Key- Trading Forex is a turtle marathon not a rabbit sprint race. Slow down- have faith in your strategy and edge. 6) Daily Trading Might Be Your Holly Grail- Look for entering only on Engulfing, Harami or Pin-bar setups on daily charts (that is all you need). If you are part of the majority of Forex traders whom trading is difficult, DO NOT trade lower time frames which are under 1 hour (to much noise). Only trade daily time frames until the end of this year and master them. Then maybe, next year can go to lower time frames of 4 hours and 1 hours. You tube videos on Forex trading position sizing, risk management and Forex daily charts. Daily charts help develop a more effective and accurate market bias, higher risk and reward (look at example chart) with 50 pip stop risk vs. 5xs to 8xs reward- which is great. Slow ans stead wins the race (Hare vs Turtle).
Education
by Anbat
1
Spot Trading vs Margin Trading Pros and ConsSpot Trading is the most basic form of trading method and is the most suitable for beginners in trading. It's simply a BUY > HOLD > SELL mechanism. On the Other Hand Margin Trading is complicated and should only be done by experienced traders. There are various components to margin trading such as Maintenance margin, margin calls, leverage, and liquidation. Pros and cons of Spot Trading 👉Spot trading is easy to learn and understand and is a good starting point for beginners in Trading. 👉It's an easy process to manage risk in spot trading not taking all the complications of liquidation or margin calls. 👉You can hold an asset for a much longer time and in the case of cryptocurrency can also transfer to any cold wallet. 👉No Trading happens during downtrends. 👉The potentials gains are not very good on a smaller investment amount. Pros and cons of Margin Trading 👉Margin Trading needs some advanced knowledge of various things such as margin calls, liquidation, leverage, etc. Hence it's not recommended for new traders. 👉You can make profits on both uptrends(by going LONG) and downtrends(by going SHORT). 👉Gives an ability to trade much larger amounts with a relatively small initial investment by using leverage. 👉Margin Trading is risky, and if not done properly can blow your account in a very short time span. 👉Profits are higher when utilizing margin trading, and so are the losses. Every exchange has its own rules for margin trading, which need to be understood carefully before investing. Thanks for reading and what kind of trading technique do you use and why? Share in the comments below. For more similar educational ideas, scripts and trend analysis follow us. Happy Trading.
Education
by Tuned_Official
22
How to place stop loss like a Pro TraderStop loss placement is perhaps not the most glamorous of trading topics to discuss, but it is a critically important one. If you do not know how to properly place your stop loss, you will be in for a very, very rough ride as you trade the markets. Essentially, for a trader, everything hinges on proper stop loss placement and risk management. If you understand these two aspects of trading and how to approach them properly, making consistent money in the market will become much, much easier for you. Note : This lesson is based on higher time frame charts and the concepts are not applicable to very low time frames which is a different world of trading and not something I do or recommend so I can’t comment on it. The theory behind placing stop losses like a pro trader The first thing to understand and drill into your head about stop loss placement is that you should NEVER place a stop loss based on some random amount of pips. I know a lot of traders do this because I get emails from traders telling me they use “20 pip stops” or “50 pip stops”, etc. etc. This is NOT proper stop loss placement and it is definitely NOT how professional traders place their stop losses… A stop loss should typically be based on a level in the market. Price should have to breach a level to ‘prove’ your trade wrong. You want to see price invalidate your view by giving you fact-based evidence you are wrong, that evidence comes in the form of the most logical nearby level of support or resistance being breached. You need to take into account the context of the market you are trading and determine what level price would have to break through before your original view doesn’t make technical sense anymore. Let’s take a look at two examples to make this clearer… The first example below shows a random pip amount stop loss placement, the second example shows a stop loss placed within the context of the market and nearby levels. Make note of the end results of both trades… Notice in the chart below the trader placed his stop loss at an arbitrary 50 pip distance from entry. Traders typically do this because they don’t understand how to place stops properly and also because they want to trade a bigger position size. This is wrong. You need a logic / chart-based reason to place a stop loss, not just a random pip distance or a pip distance that will allow you to trade the size you want. Notice this trader would have been stopped out for a loss just before the market shot higher, without them on board… In the next chart, we can see how this trade worked out for the trader who knew how to place stops properly / like a pro and who wasn’t placing his stop arbitrarily or based on greed (to trade a bigger size). Notice the stop loss was placed beyond the key support level and beyond the pin bar low, giving the trade good space to work out but also being placed at a point that would logically invalidate the trade if price moved beyond it…. Let’s briefly go over typical stop loss placement on two price action setups I teach; the pin bar signal and the inside bar signal . You will notice, I used a risk reward ratio of 2 to 1 on each trade, this is my ‘default’ risk reward. In other words, I always start any trade by seeing if a 2 to 1 (or more) risk reward is realistically possible given the market structure and context the pattern formed within. For expanded examples, you can reach out to me for my lesson on how to place stops and targets like a pro . Note: Be aware of the average volatility over the last 7 to 10 days of the market you’re trading. You want your stop at least half of ATR (average true range) if not more or you will get stopped out due to noise. The Average True Range is a tool we can use to see average market volatility over XYZ days. It is a good tool to utilize for stop loss placement when no nearby key levels are present. To learn how to apply and use the ATR tool more in-depth, you can reach out to me for my article on the average true range. The example below shows how to use the ATR for stop loss placement and how it can keep you in a trade despite initial choppy conditions after the pattern… IMPORTANT STOP LOSS PLACEMENT TIPS It’s important to consider reward or target potential before taking any trade. You base the potential target of a trade on the stop loss distance. If the stop has to be too wide in order for the trade to have enough space to potentially work out, and the risk reward potential doesn’t stack up, then it’s usually not the best idea to take the trade. Risk reward and position sizing are intimately related to stop loss placement obviously, and crucial topics in their own right. But, we are focusing here in this lesson just on stops, be aware that stops are paramount and take precedence over targets, in a way, stops are a qualifier for the target and overall risk reward and will effectively help you filter trades you should take and should not. It is important to note that stops should always remain constant and can’t be widened, however targets can be widened, stops should only ever be tightened and moved into break even and trailed, make sure that’s concrete in your trading plan. Stops are crucial to managing risk because once we find the stop loss placement we can then determine our position size on the trade and then we know ahead of time the cost and risks of the trade. As part of our trading business plan, stops are a cost of doing business as a trader, they are also there to force us to get out if we are wrong on a trade, despite our emotional bias towards staying in a trade, which in the end can cost us dearly if we were to hang onto a loser until we blew out our account balance. CONCLUSION A properly placed stop loss is truly the starting point of a successful trade. It allows us to proceed with calculating reward targets on trades and position size, effectively allowing us to execute our predetermined trading edge with a clear mental state and discipline. Traders who do not focus on stop loss placement first or put a lot of importance on doing it right, are doomed to fail and blow out their accounts. I hope today’s lesson has given you a little ‘snapshot’ into how I approach stop loss placement. My trading course and members’ area will further educate you on how I place stop losses and how I incorporate stop loss placement into my overall trading strategy. To learn more, you can reach out to me privately.
Education
by Skuchies_CryptoKing
Daily Primer: Break your limits 💥In todays daily primer we talk about limitations and cause and effect. This short 5 minute video will give you the necessary guidance as to what you need to focus on to achieve the success you seek in the markets. Success in trading, just like in any other business, is a cause and effect relationship: Poor or average causes = poor or average results good causes = good results excellent causes = excellent results If you want to achieve success, do the work! (metal: have patience, discipline, resilience) (work ethic: prepare your charts, know the news, prepare your plan)
DEducation
by PrimedGroup
Forex Trading Psychology (Word Find) Forex Psychology is very high on list of if you succeed or fail as a Forex trader. You need to get mind right of controlling risks and of slow progress. Forex trading is not a "get quick scheme" business or hobby but a slow methodical approach like laying bricks one at a time, over and over. If your trading psychology (from the neck up) is right then your trading Forex you will be easier and more profitable, that is most of Forex trading. Here is a little fun with this Forex Trading Psychology related word find- with key words in that process of the mental side of trading.
Education
by Anbat
Top 5 Most Traded Forex Currencies & Sessions The Top 5 Most Traded Currencies in the World 1. US Dollar (USD) The official currency of the United States of America, the US Dollar is also the world’s primary reserve currency. Most traded currency pair: EUR/USD Most active trading session: New York and London sessions 2. Euro (EUR) The second widely traded currency is the Euro. Most traded currency pair: EUR/USD Most active trading session: London and New York sessions 3. Japanese Yen (JPY) The Japanese Yen is the official currency of Japan. Most traded currency pair: USD/JPY Most active trading session: New York and Tokyo sessions 4. Great British Pound (GBP) The official currency of the United Kingdom and its territories, the GBP is known colloquially as the Pound Sterling. Most traded currency pair: GBP/USD Most active trading session: London and New York sessions 5. Australian Dollar (AUD) The Australian Dollar is the official currency of the Commonwealth of Australia. Most traded currency pair: AUD/USD Most active trading session: Sydney/Tokyo and New York sessions
Education
by Anbat