Get started

Tradingstrategy

How to Begin Trading in 6 Steps If you have already taken the leap and started trading – You may skip this article and enjoy your day 😊 Beginner traders, I’m writing this for you! Financial trading has never been more accessible, cheaper and innovative than ever before. What you have available today, I once had to pay up to $10,000 a year. And some charting platforms cost up to $25,000 a year! Absolutely insane. And now today, it’s ready for you for practically FREE especially on TradingView!. However, if you’re ready to to embark on this journey successfully, there are some essential components that you must have. You’ll need 6 things to start your trading the right way. 1. Trading Platform A trading platform is your gateway to the financial markets. It’s an online software that allows you to execute trades, monitor markets, analyze price charts, and do much more. The best platforms are user-friendly, offer a wide range of tools, and support multiple asset classes such as stocks, forex, insdices, commodities, and cryptocurrencies. They should also offer either spread betting, CFDs (which is what I like), futures and or lots. Make sure the platform you choose is regulated by relevant financial authorities and offers strong security measures to safeguard your funds and data. 2. Charting Platform A charting platform is a tool used to visualize market data. You should be able to choose various formats such as line, bar, and candlestick charts. They also provide a range of technical analysis indicators, such as moving averages, RSI, MACD, and Fibonacci retracements, which can help you analyze market trends and make informed trading decisions. When you choose a charting platform, consider its ease of use, customizability, the range of available indicators, and compatibility with your trading platform. 3. Fund Your Account Before you can start trading, you need to fund your trading account. Now here’s the funny thing. Most people put in like $1,000 or like $10,000 – Something ridiculously small. And they just keep it at that. Look, you can have a sizeable account in your portfolio. And you can trade as if you have $1,000. You don’t need to trade everything. But you do need to take that leap and deposit money into your account. Also, understand the platform’s margin requirements to avoid potential margin calls (When they tell you – you have to cough up more money). You need to be 100% ready and have your capital management prepared to a T. 4. Trading Strategy This is your roadmap. This is your ‘holy-grail’ This is your game plan. This is your future plan in the financial markets. You get the point. A strategy will outline: • How to know when a trade lines up. • When to enter trades according to criteria • When to exit a trade according to criteria. • When to adjust your trade if need be (Lock in profits, cut losses, maximise gains). • Which markets to trade • How much to risk on each trade. Your strategy can be based on technical analysis, fundamental analysis, or a combination of both. I have used a 20 year old strategy that incorporates chart patterns, money management rules, two indicators and Smart Money Concepts. More importantly, your strategy should align with your financial goals, risk tolerance, and trading schedule. 5. Trading Journal A trading journal is a record of all your trades. It includes entry and exit points, the reasons for taking the trade, the strategy used, and the outcome. I also have other elements like Mistakes, Emotions, Drawdowns, Risk to reward and so many more. Basically, it’s a valuable tool to reflect on your performance. This will allow you to review your trades, learn from your mistakes, and improve your strategy over time. 6. Rules and Criteria To ensure discipline and risk management in trading, it’s essential to set rules and criteria. These guidelines will help you remain consistent and prevent emotional decision-making. Here are some examples: • Halt after a 15% drawdown on your account: This rule can prevent further losses during a bad trading period. It’s a form of risk management, forcing you to stop and reassess your strategy when things are not going as planned. • Never risk more than 2% per trade: This rule ensures that even multiple losing trades in a row won’t wipe out your account. • Only trade with the trend: When market is up – only look for longs. When market is down – only look for shorts. When market is sideways – Be cautiously • Every trade needs a stop-loss and take-profit level This automates risk management, ensuring you exit trades at predetermined levels. • Limit the number of trades per day or period This prevents overtrading. Always think quality versus quantity. And if you have a couple of trades, make sure you know what the WORST case scenario is for your portfolio if you hit a losing streak. Sometimes it’s best to hedge positions (Longs and Shorts). and keeps you focused on quality rather than quantity. • No trading during high-impact news events Markets can be particularly volatile during these times, which can increase risk. This is just a fraction of your journey. Enjoy your trading journey. It’s exciting. It’s also long, be patient. This won’t take a month, a year or even three years. But after 3 years, you’ll get a taste of the potential of trading fortunes. But it’s all up to you! This needs preparation, discipline, and constant learning. You have the starting steps… Now get to it.
TVC:SA40Education
by Timonrosso
4 Dangerous News Events - for TradersWhen you’re a mechanical trader. And when you think you got trading in a bag. You still need to be logical and rational when trading the markets. There are exceptions. And you need to consider these exceptions which could have a profound effect on the financial markets. It’s these unforeseen circumstances, that you need to take the stand. You might need to risk less. You might need to not take the trade. You might need to halt trading for a few days. All because of these potential 4 events. Let’s get into them so you can stay out of them. Black Swans (Unprecedented events) Black Swans are highly unpredictable events that go beyond what is usually expected of a situation. One definition I like is this. A Black Swan is where an event can cause the market to move 10 standard deviations away from the norm. When this happens they could potentially have severe and wide-reaching consequences. You’ll see the market will jump erratically and even cause a halt in trading activity completely. So when you spot a Black Swan. Just take it easy from trading the markets that can be affected. Here are 10 Black Swan Events that I can think of that had an impact on the markets. 2008 Global Financial Crisis Triggered by the collapse of the US housing market, it led to a worldwide banking crisis and severe global economic downturn. COVID-19 Pandemic An unprecedented global health crisis that had significant repercussions on global economies and markets in 2020. Dotcom Bubble Burst (2000) The dramatic rise (due to greed and optimism) and fall (due to fear and panic) of internet companies in the late 1990s led to a severe market correction. Brexit (2016) Britain’s unexpected decision to leave the EU had immediate impacts on global markets. Japanese Asset Price Bubble Burst (1992) This led to a lost decade of economic stagnation in Japan. (Have you seen the Nikkei! And can you imagine holding stocks from 1992?) Swiss Franc Unpegging (2015) The Swiss National Bank’s sudden decision to remove the cap on the Franc’s value against the Euro led to extreme currency volatility. (Forex trading was a nightmare seeing some prices drop hundreds of pips). September 11 Attacks (2001) The terrorist attacks had immediate and long-term effects on global economies and markets. (I was too young to worry so I missed this one.) Fukushima Nuclear Disaster (2011) Triggered by a massive earthquake and tsunami, it had significant impacts on global energy markets. (I remember holding oil stocks while driving. And I came home to R120,000 loss). Flash Crash (2010) The US stock market crash, triggered by a high-frequency trading algorithm, sent a financial shockwave around the world. (Fat fingers caused by unknown factors). Oil Price Negative (2020) For the first time in history, the price of US oil turned negative due to low demand during the COVID-19 pandemic. Moving on... Non-Farm Payrolls (Major spikes during news release) The Non-Farm Payroll (NFP) report is the big one. It is released on the first Friday of each month and is a key economic indicator for the United States. It shows us the total number of paid US workers, excluding farm employees, government employees, private household employees, and employees of non-profit organizations. When the numbers are higher than expected, there are more jobs and the stock markets go up. When the numbers are lower than expected, there are less jobs, more pessimism which causes stock markets to plummet. Significant deviations from forecasts in the NFP data can lead to major spikes in market volatility. If the data shows job growth, it indicates a strong economy, which can boost the US dollar and negatively impact bonds due to the potential for increased interest rates. Conversely, lower-than-expected job growth can indicate a weakening economy, potentially weakening the US dollar and boosting bond prices. Possible Warnings (Micro and Macro Announcements) Keeping an ear to the ground for both micro and macro announcements can provide a trader with essential foresight. On a micro level, company-specific news such as: Earnings reports New product launches Executive changes M&A activities Rights Offers and share distributions These can result in large price movements. On the macro level, broader economic announcements like: Changes in monetary policy inflation rates QE (Quantitative Easing) Credit tightening GDP growth Consumer sentiment FOMC, Central banks meetings and economic talks and geopolitical events You’ll see these will have a ripple effect on wider market movements. Huge Gaps (Spikes in Volatility in Prices) Price gaps occur when there’s a significant difference between the closing price of one trading period and the opening price of the next. Basically, a void between two price candles. This generally happens when one market moves up during the day. And then a bigger and leading market crashes. This results in the first market opening a lot lower down than the previous close. This can be due to an impactful event that happened in the time between the two periods. Keep an eye out on these four events. It’ll help you better navigate the market landscape, react to volatility, and potentially make better trading decisions. Remember, the financial markets are affected by a myriad of factors, and a keen understanding of these key events can be a critical part of your trading strategy.
TVC:SA40Education
by Timonrosso
How to identify a trend move using AnchorsIn the video I discuss the concept of Anchors in trading and how I use them in my own trading. Anchors play a major part in identifying the prime areas to trade and also in risk management when in a trade. I will discuss my prime setups and trading areas using anchors and multi-timeframe analysis. ** If you like the content then take a look at the profile to get more daily ideas and learning material ** ** Comments and likes are greatly appreciated **
CBOT_MINI:YM1!Education
by TradeTheStructure
16 Golden Risk Management Rules for TradersTo build your portfolio. You need to learn to manage your risk. And over the last 16+ years, I’ve given you maybe five ideas on how to do it. Well, today I have 16 of the most essential Risk Management rules I could come up with in just one seating. They might not all apply to you. But most of them I believe will definitely resonate with you, your portfolio and with your risk profile. So, I have taken the time, energy and effort to jot down the 16 most powerful Risk management rules, you can apply to your trading. Starting today… Here they are… RULE #1: The 2% Rule Never risk more than 2% of your total trading capital on a single trade. This rule will help you to limit the impact of any single trade on your portfolio. RULE #2: The Probability Rule – Classify trades as high, medium, or low probability This depends on your trading strategy. If you know how to spot a: High probability trade (HPT) (good chance of winning). Medium probability trade (MPT) (lower chance of winning). Low probability trade (LPT) (very low chance of winning). I have a very simple rule. With a HPT, risk 2% of your portfolio. With a MPT, risk 1.5% of your portfolio. With a LPT, risk 1% of your portfolio Only risk according to the state of the probabilities of the trade – right? RULE #3: 20% Drawdown Rule – Halt trading at a 20% loss to avoid deeper slumps If that inevitable Drawdown kicks in. And your portfolio drops 5%, 10% and then down to 20%. Halt trading. Don’t stop! Instead, move over to paper trade your account until the conditions turn up and the system works again. And when you do start, only start risking 1% at a time until you are confident again with your strategy and with your frame of mind. This rule alone, you’ll save you from blowing your account. RULE #4: NEVER risk money you can’t afford to lose If you feel emotionally tied to your money. Or you need the money for daily living expenses or retirement savings. Don’t trade with it. You will feel like a wreck. Instead of enjoying the trading journey and process. Trading will be an emotional rollercoaster during both winning and losing streaks. RULE #5: The Time Stop-Loss Rule – Apply a time-based stop-loss rule to limit losses If a trade doesn’t reach its profit target within a specific timeframe – Close the trade. I have a 7 week time stop loss before I consider closing trades. Either you’ll bank a lower loss than you planned. Or you will bank a lower profit than planned. This prevents capital from being tied up in stagnant trades. NOTE: There are times where I might NOT implement a time stop loss. For example, when I short (sell) a trade which earns interest income each day. RULE #6: The Trailing 1:1 Rule – Use a 1:1 trailing stop-loss to protect profits Once a trade hits a 1:1 risk-reward ratio. I might trail my stop loss up to just above break even. This way I will bank a minimum gain, should the trade turn against me. My win rate will go up, for the portfolio. And emotionally it’s easier to hold a trade where you’ve secured a minimum profit. RULE #7: Half off Rule – Take half your profits early to secure gains If the trade is moving nicely in my favour. And it reaches a R:R of 1 to 1. Sometimes I’ll close half my position. I’ll then trail my stop loss to above breakeven. This way I’ll bank a decent profit. And I would have left room for the market to continue rallying to my initial take profit. This rule alone is God-sent. RULE #8: The 1% Margin Rule – Limit margin use to 1% of your account to control risk For those who are worried about HIGH leveraged instruments. This one is for you. The rule is, if you’re trading on margin (leverage). Never risk more than 1% of your trading account on a single trade. This way: You’ll have majority of your portfolio to trade with. You’ll have less money exposed to risk in any one trade. You’ll be able to track your risk better, for if the market gaps. RULE #9: The Intraday Stop Rule – Set an intraday rule to know when to stop trading for the day If you take on an intraday trade i.e. Smart Money Concepts trading a Forex Pair or index. Set a daily loss limit or a maximum number of losses. If you reach this amount, stop trading for the day to prevent your portfolio from spiralling into more losses. Come back the next day, to slay. RULE #10: Forex NEWS Rule – Stay off the market during high-impact news events This happens during high-volatile events. And this applies with mainly Forex! If there are any high impact news events such as major economic announcements. It can significantly increase trading risks. When these days come, I don’t take any Forex trades. Here’s are the main High-Impact-News events: CPI (Consumer Price Index) news report days CPI measures the changes in prices of a basket of goods and services over time as a measure of inflation. NFP (Non Farm Payrolls) A monthly report released (on the 1st Friday of the month) by the US Department of Labor. It shows the number of jobs added or lost in the non farm sector. This is a measure of the health of the US economy. PPI (Producer Price Index) A measure of the average change over time in the prices that domestic producers receive for their goods and services. This is another measure of inflation and economic growth. First with CPI and then with PPI. FOMC (Federal Open Market Committee) When the FOMC the US Federal Reserve meets to set monetary policy, (decision on interest rates and the money supply). RULE #11: The Risk-Reward Rule – Aim for a risk-reward ratio of at least 1:1.5 If you do NOT see a trade with a Risk to Reward of at least 1:1.5. It is NOT a good idea to trade. Anything less than 1:1.5, and your risk will be similar to what you are looking to gain. And remember, you still need to cover costs, brokerages and daily interest charges. It’s not worth buying and selling trades with a R:R of 1:1.5. I prefer to trade with risk to rewards of 1:2 instead. That way, even with a 40% win rate, I’ll be profitable. RULE #12: The 20% Golden Rule – Never expose your portfolio to more than 20% Trading is a risky biscuit. So, even though you have money in your account. Doesn’t mean you should have all of your money in different markets. I like to limit my capital to a maximum of 20% of my total investment portfolio. Remember, you are gearing up when you trade. While leverage can magnify gains, it can also magnify losses. It’s crucial to know how to use leverage effectively. Also, it’s our job to and avoid taking on more debt than we can handle. Because when you trade on margin (leverage), you’re exposing yourself to MORE than what you deposit. So protect most of the capital at a time in your portfolio. RULE #13: The Hedgehog Rule – Don’t be too long or too short – Hedge your positions I like to say hedge your positions. Don’t HOG on too many longs. Or too many shorts. When a main index is showing strong signs of moving in a certain direction (up or down). You may feel the absolute need to buy as many stocks as possible, to ride the trend. However, you need to remember the market can change the trend direction just as fast. And your winning positions can instantly turn to losers. So, when you are holding a high number of longs, make sure you trade a couple of shorts. When you are holding a large number of shorts, make sure you trade a few longs. This way you can hedge your positions in case the market does make a turnaround. Effective hedging strategies can protect your portfolio from market volatility. RULE #14: Multi-Account Rule – Use different accounts for different markets Every market acts differently. Forex works differently to stocks. So, I like to have two different accounts for each. I like to track and trade Forex for one account and stocks for another. Having too many eggs in one basket, will skew the portfolio and your track record – due to the sporadic and different movements with each set of markets. So, diversify your portfolios across different asset classes and markets to manage risk. RULE #15: Check Up Rule – Regularly monitor your portfolio’s performance The markets are always changing including: Algorithm New volume being injected in the markets Dynamics of demand and supply This causes a shift in different market environments and echoes into the financial world. Therefore, you need to regularly review your portfolio. This will help you to realign it with your goals, statistics, drawdown & reward management as well as your risk tolerance and goals. RULE #16: Correlation Rule – Understand and monitor the correlation between assets Markets are generally positively correlated. This means, they tend to move in the same direction. If you see a large bank company going up in price and you go long, the chances are good that other banking companies are also going up in price (within the main stock market). When you understand correlation between stocks, forex, indices, commodities etc… You can find more high probability trades which will better diversify your portfolio, reduce your risk and you’ll be exposed to other market opportunities in similar markets. Told you it will be worth it! Save this, print it out and keep it by you. These are the most important money management rules I believe are necessary to know as a trader. Below is the summary of them again, with the subheading. If you found this helpful, please send let me know in the comments. 16 Most NB* Money Management Rules RULE #1: The 2% Rule – Never risk more than 2% of your trading capital RULE #2: The Probability Rule – Classify trades as high, medium, or low probability RULE #3: 20% Drawdown Rule – Halt trading at a 20% loss to avoid deeper slumps RULE #4: NEVER risk money you can’t afford RULE #5: The Time Stop-Loss Rule – Apply a time-based stop-loss rule to limit losses RULE #6: The Trailing 1:1 Rule – Use a 1:1 trailing stop-loss to protect profits RULE #7: Half off Rule – Take half your profits early to secure gains RULE #8: The 1% Margin Rule – Limit margin use to 1% of your account to control risk RULE #9: The Intraday Stop Rule – Set an intraday rule to know when to stop trading for the day RULE #10: Forex NEWS Rule – Stay off the market during high-impact news events RULE #11: The Risk-Reward Rule – Aim for a risk-reward ratio of at least 1:1.5 RULE #12: The 20% Golden Rule – Never expose your portfolio to more than 20% RULE #13: The Hedgehog Rule – Don’t be too long or too short -Hedge your positions RULE #14: Multi-account Rule – Use different accounts for different markets RULE #15: Check Up Rule – Regularly monitor your portfolio’s performance RULE #16: Correlation Rule – Understand and monitor the correlation between assets
JSE:J200Education
by Timonrosso
What are Fakeouts, Shakeouts and Whipsaws?Let's get straight into the three cronies of trading disaster when taking and holding a position. Fake-out: (When the price makes a false breakout of a chart pattern) A fake-out occurs when the price of a market appears to break out of a certain chart pattern. This could be a trendline, support, or resistance level. But then quickly reverses and retreats back within the pattern. Shake-out: (Where the market is highly volatile and the price moves to levels that hits their stop losses and gets traders out of their trades) A shake-out is a scenario where the market becomes highly volatile and the price moves rapidly to levels that trigger the stop-loss orders of many traders. Stop-loss orders are pre-set risk levels at which traders automatically exit their positions to limit their losses. A shake-out is designed to "shake out" weak or inexperienced traders from the market. When stop-loss orders are triggered, it can create a temporary spike in the opposite direction of the prevailing trend. Once these traders are "shaken out," the market might resume its original trend. You’ll see this most commonly with low liquid, high volatile markets like Penny Stocks or Penny Cryptos. Whipsaw: (This is where the market will change its most prominent direction within the day). Whipsaw refers to a situation where the market quickly changes its direction within a relatively short period, often during a single trading day. This can cause confusion and losses for traders who are caught off-guard. Whipsaws can occur due to various factors, such as sudden news releases, economic data surprises, or changes in sentiment. They are characterized by sharp price movements that can make it difficult to make accurate trading decisions. Whipsaws are especially common during periods of high market uncertainty or when there's a lack of a clear trend. Let’s create a quick summary of the three: Fake-out: (When the price makes a false breakout of a chart pattern) Shake-out: (where the market is highly volatile and the price moves to levels that hits their stop losses and gets traders out of their trades) Whipsaw: (This is where the market will change its most prominent direction within the day).
JSE:J200Education
by Timonrosso
The Power of the 3 Seconds Rule in TradingIn the fast-paced world of financial trading, time is often the difference between success and failure. One effective strategy that I’ve found incredibly beneficial is the 3 Seconds Rule. This rule, adaptable to virtually any life scenario and business. It’s simple… Before you make a crucial decision, you count to three. 1, 2, 3 This will help you streamline the process to execute. It’ll also stop you from hesitating, over analyses or overthinking. Let’s delve into how this can be applied. Trade Lines Up: Preparation is Key The first stage in this strategy involves setting up your trade. This includes preparing your charts, drawing the lines, placing indicators, and identifying potential entry points. This will help you to map out your trade plan in advance/ Also you’ll be able to respond quickly. The 3 Seconds Rule here encourages swift action. Once your analysis is complete and everything lines up, count to three, and finalize your setup. This helps to avoid second-guessing your analysis, which can lead to paralysis by analysis. Place Your Trading Levels: Define Your Parameters Next open your trading platform and count to three. 1, 2, 3. Then put in your trading levels. These levels include the entry point, stop loss, take profit point, volume of trade, and whether it’s a long or short position. This ensures that your predefined strategy is implemented promptly. This is critical in a market environment where prices can change rapidly. Just Take the Trade: Execution is Crucial The final stage involves actually executing the trade. You’ve done your analysis, prepared your charts, identified your levels, and now it’s time to make the trade. Again, you apply the 3 Seconds Rule. 1, 2, 3 And then click the button to execute. Like I said before, this will eliminate the fear or hesitation that can often occur at the moment of execution. By forcing yourself to take action within three seconds, you are not allowing time for doubt or fear to prevent you from following your carefully crafted trading plan. The Benefits of the 3 Seconds Rule In the world of financial trading, the 3 Seconds Rule offers numerous benefits: Eliminates hesitation: When you commit to taking action within three seconds, you will avoid becoming trapped in a cycle of overthinking that can lead to missed opportunities. Encourages decisive action: The 3 Seconds Rule compels you to make a decision quickly. Reduces stress: By making a plan and sticking to it within a set timeframe, you can minimize the anxiety and stress of waiting too long. So you got the power of the 3 Seconds Rule? 1, 2, 3, – GO!
JSE:J200Education
by Timonrosso
6 Quantifiable Trading Goals to KnowThere is one thing that will separate the winners from the losers. Knowing your numerical trading goals. When you have a back-tested and solid strategy, everything else becomes easier. You have the past and the potential future in your vision. And all you need to do is follow the rules and then keep them in check. To do this, you need to have written down your goals, drawn from your trading statistics and back-tested journals. This will give you the spine of your trading strategy and ultimately guide you on the path to sustainable profitability. There are many numbers to take in but I’m going to kickstart you with probably six of the most critical trading goals. This will help you set your own milestones for success. Number of Trades to Take in a Year (e.g., 120) You need to have some type of idea of the number of trades, you’ll execute in a year. This number can be derived from your trading strategy, time frame choice, risk tolerance, and market analysis. For instance, if you’re a swing trader focusing on weekly chart patterns and SMC, you might aim for 120 trades in a year. This equates to 10 trades per month. Maybe you want to take 60 trades with stocks, indices and commodities. Maybe you want to take another 60 trades between Forex and crypto. Make sure you have a rough number according to your stats, so you can keep on track. Number of Winners Winners and losers come with the game. So you need to identify the number of winning trades you intend to achieve in a year. Let’s say you’re aiming for a win rate of 62.5%. With the earlier goal of 120 trades in a year, you’re targeting approximately 75 winning trades (120 * 0.625). Number of Losers Losing trades are an inherent part of trading. You need to have an acceptable number of losing trades in mind. This will help you to manage risk effectively and maintain emotional equilibrium. In our example, if you’re aiming for 120 trades a year, you should look at taking around 45 losing trades. If 62.5% is your win rate then 37.5% is your losing rate (100% – 62.5%). Win Rate Your win rate represents the percentage of trades that yield profits. With a target win rate of 62.5%, this means you aim to close over half of your trades with a profit. Sure, you’re not going to bank 62.5% every week, month and year. You might have a 70% win rate one year. You might have a 55% win rate the next year. Remember, consistency is key here. But with consistency, you’ll find it’ll balance to around 62.5% win rate per year. Percentage Return Trading is relative. Doesn’t matter if you have a $10,000 (R200,000) or a $300,000 (R6,000,000) account. You need to think in percentages and not dollars. For example, if your starting capital is $10,000 and your goal is a 32% annual return, you’re targeting a profit of $3,200 (R64,000) by year-end (0.32 * $10,000). Expected Drawdown % Then we need to prepare for the drops. Drawdown refers to the reduction in your trading capital after a series of losing trades. When your portfolio goes from an all time high and takes a dip, that’s a drawdown. An expected drawdown of 20% means that you should be prepared for a decrease of up to $2,000 (R40,000) in your starting capital of $10,000 (R200,000) during the course of the year. It might come in May. It might last ‘till August. This will enable you to track your performance, manage risk effectively, and maintain focus on what truly matters. Remember consistency leads to long-term profitability.
JSE:J200Education
by Timonrosso
The Power of Trading Tunnel VisionAs humans. It’s tough. In this day and age, it feels impossible to just focus on one task at a time. You’re already shifting your attention. As you read this! You’re thinking about: What to eat, what you’re missing on Facebook, how boring this article is going to be, what’s on TV tonight, bills you have to pay, how else can you make bread for your financial future. Right? You can’t help it. It’s a disease. It’s affecting most people. It affected me for most of my life. And I think it’s one of these reasons why people are: NOT happy, NOT succeeding with their goals and NOT building their lives the way they want to. It needs to stop TODAY! Just do me one favour… Try and focus on one goal at a time. Get through this article first, move onto the next thing. Think of a racehorse. For them to be focused, avoid danger, remain undistracted and see the goal… They need to wear blinkers. So let’s put on our blinkers and let’s see why tunnel vision is the very skill you need to succeed. Not just with trading. But with every endeavour you embark to achieve and succeed. #1: Sharper Focus Tunnel vision allows you to concentrate and direct your attention to one thing at a time. Your analysis. Your setups. Your execution. Your modifications. Your reporting and reviewing. #2: Less distractions When you cut out your distractions, you will make more better decisions as a trader. It’s a skill. Put your phone away. Close your social media windows right now. Clear your desk and cupboards. Take the dog or cat out. Switch off the TV. Focus on your trading each day or when you do trade. #3: Better Risk Management When you are just about to take the trade. Make sure you double check your maths, volume trading size – according to what your portfolio is currently valued at. You don’t understand how many people make mistakes with: Wrong sizes, miscalculated levels and incorrect risk and reward. Protect and safeguard your trades with careful risk management consideration. #4: Speed up results and optimise your tasks: When you focus on one task at a time, this might be surprising but. You will finish sooner than you thought. When you put in your full – time, capital, and mental energy – you’ll be more efficient, productive and more laser focused. #5: Reduced Stress Of course when there are less distractions, less worry and less things to deal with at a time – this drops your stress. And I know you have stress right now. It’s the state of the world with the fast-paced connectivity and exponential developments. But when you narrow your life down to one thing at a time, I promise your stress will drop which will help with your trading decisions. #6: Superior strategy understanding By concentrating on a particular strategy or system, you will find that you’ll build a more profound understanding to where, why and how you’re putting your money. Master the strategy and only that one and you’ll see how far you’ll go. #7: Consistency and perseverance When you adopt tunnel vision in your life, you will begin to be more disciplined with your approach. This will lead to more consistency in your trading results. And you’ll find it will promote a stable growth of your portfolio. #8: Clearer Goals to achieve Like the horse sees the goal ahead. When you focus your attention on your goals and what you need to do to achieve them, one step at a time. You can track your progress more effectively. You can steer your trading in a better direction. You can take control of your trading with lightning focus. #9: Keeps you in the Now Time is fleeting. Before you know it, you’re in bed ready to wake up and repeat the routine. But what if, because you’re living so much in your head, that’s why time is going so quickly. I mean, right now I am only focusing on writing this article. And I’m putting in all my heart, energy and soul. And because there are no distractions, I FEEL the present. I feel time going slowly with each typing. So maybe you should to. Do everything in the present. Do it with full focus. Do it with heart. Do it with optimism and care. And this will have a positive effect on your trading.
TVC:SA40Education
by Timonrosso
SYS Preparing for the Next Big Move, Syscoin Analysis Today 💎 SYS is on the verge of breaking out from a descending channel upwards and is currently positioned just below the Point of Control (POC) of the Volume Profile Visible Range. 💎 At the moment, this POC is posing a minor resistance, but it's likely to transform into support once we clear the channel. 💎 It's worth noting that SYS could potentially revisit the channel's trendline before making its upward move – so both outcomes are in play. 💎 Furthermore, with SYS situated in a zone of high demand, the bullish sentiment seems even more plausible. 💎 In the ever-evolving crypto sphere, being up-to-date and flexible is paramount. Keep an eye out for further insights and savor your trading adventure with #MyCryptoParadise!!
Long
by MyCryptoParadise_Nathan
GBP/USD Bullish Action: Seizing Winning OpportunitiesYesterday, I highlighted the bullish stance of the GBP/USD pair. In today's session, our focus was on identifying long opportunities towards the higher end of our target. Currently, our target remains valid, and we managed to capitalize on the upward movement. By examining the lower timeframes (1-5), a clear positive shift in market structure towards the long side becomes evident. Throughout this shift, two distinct opportunities to engage in long positions presented themselves. Although the price didn't quite reach the demand zone, we were still able to execute successful plays.
Long
by ivancadramac
Why Impulse Trading is DANGEROUS – 19 ReasonsJust to get you up to scratch. An impulse trader in the financial markets is someone who makes trading decisions based on sudden emotional reactions rather than structured and informed strategies. They often buy or sell markets due to fear, greed, or other emotions, disregarding systematic analysis and rational judgment. Being an impulse trader can be dangerous for the following reasons: Neglect of thorough research: Impulsive traders often disregard the need for comprehensive market analysis. Emotional trading Decisions are often driven by emotions like fear or greed. Increased risk Impulsive actions often lead to unnecessary risk-taking. Loss of capital Quick decisions can lead to significant financial losses. Overtrading Impulse trading often leads to overtrading, resulting in higher transaction costs. Lack of discipline Impulsive trading discourages the development of disciplined trading habits. Neglect of risk management Impulsive traders often disregard the importance of risk management. Increased stress The anxiety of impulsive decisions can lead to physical and mental stress. Unstable performance Results can fluctuate wildly due to inconsistent decision-making. No strategic planning Impulse trading contradicts the idea of having a clear, consistent trading strategy. Short-term focus Impulsive trading often focuses on short-term gains, neglecting long-term profitability. Dependency on luck Impulsive trading can become akin to gambling, relying more on luck than skill. Failure to learn Impulse trading does not encourage learning from mistakes or experiences. Neglecting stop loss orders Impulsive traders often neglect to place stop loss orders to limit their losses. Fear of missing out (FOMO) This emotional reaction can lead to poor trading decisions. Revenge trading Trying to recover losses quickly can lead to more losses. Market timing Trying to time the market perfectly is nearly impossible and can lead to losses. Ignoring the broader economic context Impulsive traders often neglect broader market conditions. Potential for addiction The thrill of impulse trading can become addictive, leading to a dangerous cycle.
TVC:SA40Education
by Timonrosso
1
My Trading Routine - Not that you care It’s no holy grain, but routine is crucial. You need to find what works vest for you. This way you’ll be able to streamline your trading activities. Here, I lift the curtain to reveal my daily trading routine — a blend of ritual, strategy, and discipline that helps me navigate the markets with confidence. My routine is not a magical formula for instant success, but a systematized approach that helps me get up and just get to it. Make Coffee First, the trading day starts with a good cup of coffee, lemon water and yoghurt and muesli. It’s not just about the caffeine kick, but also the ritual involved. Brewing coffee and the other bits, gives me time to mentally prepare for the day, clear my mind from distractions, and focus on the tasks ahead. The lemon water, kickstarts the stomach and neutralises the acids. Try it. It’s my simple, personal ritual that sets the tone for the rest of the day. Open My Charting Platform Once I’m caffeinated and alert, I log into my preferred charting platform. I use TradingView for the charts and a few trading platforms with the brokers. It’s essential to have a reliable, intuitive platform that aligns with your trading style and strategy. Over the years, I’ve customized my platform with specific tools and indicators that I regularly use, enabling efficient and focused analysis. As you’ve seen I have my customised indicators and setups ready to go. Analyse the Main Market Trends Trading bias is what sets the mood. Go onto your daily or weekly charts with different main indices. And jot down, on your trading platform whether you are. Long biased (Only looking for longs) Short biased (Only looking for sells) Neutral biased (Waiting for a breakout) This high-level analysis helps me understand the market’s overall mood and possible influencing factors. Also, I make a note of any significant events or releases scheduled for the day that might impact my trades. You can go to the TradingView Economic Calendar and check. Look for Trading Setups Next, I start scanning for potential trading setups. I use my pre-defined criteria and I look for opportunities that align with my trading strategy. Plug in Trading Levels After I’ve found potential setups and high probability trades. I determine my entry, stop-loss, take-profit levels and quantity to buy or sell for each trade. These levels are guided by my risk management rules and are non-negotiable. I use my pattern trading strategy accompanied with Smart Money Concepts. Execute Trades Finally, with all the analysis done and trading levels set. I just take the trade/s. This is where discipline really comes into play. Regardless of the market noise or sudden fluctuations, I stick to my plan. After all, successful trading is not about making impulsive decisions but about consistently following a well-thought-out strategy. So that’s it. There are a couple of other things, like analysing and re-evaluating the portfolio once a week and when to prepare for paying tax and possible withdraws and deposits. But this is more subjective and is determined in sporadic parts of the year, that changes each time. This is just a taste. Remember, a good trading routine is one that suits your personal style, strategy, and goals. So feel free to tweak, adjust, and make it your own.
TVC:SA40Education
by Timonrosso
How to get LASER Vision for Trading TriumphWe live in an extremely fast-paced world. It’s almost impossible to focus on just one task at a time. In fact, you’re probably already thinking of shifting your attention away from what I have to share with you today. You’re thinking of moving to the next email, what you’re going to eat, what’s on Netflix or the bills you have to pay or how else you’ll make your millions. Well just today. I want you to slow down. Relax. Can you please try to finish reading this tutorial, before you move on to the next task. You may find that this one important trait, is the missing puzzle piece for not only your trading success. But also this will help you to enjoy life, be in the now and feel way more relaxed with less stress… This won’t only drastically improve your trading but with every aspect of your life. This important trait I’m talking about is… The Power of Tunnel Vision Tunnel vision or singular focus, is where you concentrate and direct your attention to ONE thing at a time. Think of racehorses. When they have their blinkers on they tend to have singular focus with an undistracted mindset to guide them to their goal (end of the race). With trading you need to put on your own figurative blinkers and have tunnel vision to focus on: • Your trading setups • Your trading chart analysis • Your trading process and execution • Your trading adjustments • Your reviews, reports and findings This means, while you are focusing on ONE task at a time you need to Remove distractions from your life You don’t understand how much better your trading decisions will be and the clarity you’ll have when you remove distractions when you trade. Make it a habit to put away your phone, close all irrelevant tabs, declutter your space, take the dog out and switch off the TV. Make sure you have a quiet environment. Dedicate your full attention and focus entirely to your trading activities – without any distractions. And then when it comes to execution, make sure you Focus on risk management carefully Many traders have lost their accounts, by being reckless with their trading. Before you execute any trade, make it a point to double-check your math, trade volume, and other crucial factors that concern your portfolio. You'd be surprised how many times I’ve heard from traders who: Calculate wrong sizes, miscalculated levels, and incorrect risk and reward levels. This is your hard-earned money you’re working with. So you need to always be responsible, accountable and highly focused with your money management approach. Especially when it comes to risk management. Laser focus will help you accelerate results Believe it or not. When you focus on one task at a time, it can significantly boost your efficiency and productivity. This means you’ll finish sooner than you expected. That’s because you’re devoting your resources, and mental energy on one thing. And when you’re laser focused, you'll accomplish your goals a lot quicker than expected. When it comes to trading, having laser focus will help you to: 1. Finish your trading analyses sooner 2. Have your charts setup and trading analyses ready for the next day 3. See more profit opportunities 4. Make less mistakes and errors And this which will increase your productivity and optimisation levels as a trader. In fact, you might even find a way to see new elements to add onto your strategy. This way, you’ll build and master your profitable strategy. Cut out unnecessary stress when you trade When you adopt tunnel vision in your life, there’ll be less to worry about. Think about it. Doesn’t your blood pressure go through the roof when you: • Have the TV on? • Have your dogs or cats invading your space every couple of minutes? • Have too many tabs opened on your computer? • Think about your bills, life, worries and issues? And with the state of the fast-paced and modern world, I know you have stress right now. But when you cut out all the stress, distractions and problems then you’ll feel more in control. As a trader, you’ll alleviate stress when you analyse, develop a strategy, execute your trades and review your performance. You’ll improve your discipline and achieve your goals with your trading Once you start working on adopting singular focus in your life, you will feel a complete change to the way you do things. You’ll approach your trading and life, with a more disciplined manner. And when you have discipline, it will lead to you being more consistent and will promote more stability with your trading performance. And just like race horses see their end goal. You too will be able to see the steps you need to take to track and achieve your financial goals. Final words Time is flying. And if there is one thing I want you to do, is slow down and focus on each task at hand. This will help slow down the effect of time. I assure you, because it changed my life. So from today: Engage everything in the present moment. Act with full focus and concentration Do it with heart and care. Focus on each task you pursue. This mindful approach will greatly improve your trading performance. Did you make it to the end of this tutorial? Comment YES or NO.
TVC:SA40Education
by Timonrosso
3
Improve Your Trading | The Ultimate CHECKLIST For Your Trades If you are looking for a way to increase the accuracy of your trades, I prepared for you a simple yet powerful checklist that you can apply to validate your trades. ✔️ - The trades fit my trading plan When you are planning to open a trade, make sure that it is strictly based on your rules and your entry reasons match your trading plan. For example, imagine you found some good reasons to buy USDJPY pair, and you decide to open a long trade. However, checking your trading plan, you have an important rule there - the market should strictly lie on a key level. The current market conditions do not fit your trading plan, so you skip that trade. ✔️ - The trade is in the direction with the trend That condition is mainly addressed to the newbie traders. Trading against the trend is much more complicated and riskier than trend-following trading, for that reason, I always recommend my students sticking with the trend. Even though USDCHF formed a cute double bottom pattern after a strong bearish trend, and it is appealing to buy the oversold market, it is better to skip that trade because it is the position against the current trend. ✔️ - The trade has stop loss and target level Know in advance where will be your goal for the trade and where you will close the position in a loss. If you think that it is a good idea to buy gold now, but you have no clue how far it will go and where can be the target, do not take such a trade. You should know your tp/sl before you open the trade. ✔️ - The trade has a good risk to reward ratio Planning the trade, your potential reward should outweigh the potential risks. And of course, there are always the speculations about the optimal risk to reward ration, however, try to have at least 1.3 R/R ratio. Planning a long trade on EURNZD with a safe stop loss being below the current support and target - the local high, you can see that you get a negative r/r ratio, meaning that the potential risk is bigger than the potential reward. Such a trade is better to skip. ✔️ - I am ok with losing this trade if the market goes against me Remember that even the best trading setups may occasionally fail. You should always be prepared for losses, and always keep in mind that 100% winning setups do not exist. If you are not ready to lose, do not even open the position then. ✔️ - There are no important news events ahead That rule is again primarily addressed to newbies because ahead and during the important news releases we have sudden volatility spikes. Planning the trade, check the economic calendar, filtering top important news. If important fundamentals are expected in the coming hours, it's better to wait until the news release first. Taking a long trade on Gold, you should check the fundamentals first. Only after you confirm, that there are no fundamentals coming soon, you can open the position. What I like about that checklist is that it is very simple, but you can use it whether you are a complete newbie or an experienced trader. Try it and let me know if it helps you to improve your trading performance. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
6
TradingView - Economic Calendar Widget - How it Works I've applied the amazing TradingView Economic Calendar Widget tool to my website. It's extremely useful to use and apply. What I love about it is that I can customise the high impact news to watch out for on the daily. I thought I'd share a quick How it works guide! Intro to the Economic Calendar Widget by TradingView Whether you’re a fundamental (news and market related) trader or a technical (charts and historical info related) trader, this is a must-have tool to add to your trading arsenal. What is the Economic Calendar? The Economic Calendar is a powerful tool used by most traders to help you track good & bad news announcements, economic indicators, government reports and upcoming market-moving events. Each day you’ll see a list of financial world and economical news events in a chronological order. These events are to help you research and evaluate the impact they could have on different currencies, stocks, indices and commodities. Make sure the bar chart is highlighted in blue to see only HIGH IMPACT NEWS. How to read the Economic Calendar First you can get the Economic Calendar in the TradingView Widget website by going here www.tradingview.com Once you've applied the code to your website you'll easily understand how to read the Economic Calendar. Here are the main elements to consider: 1. Date: All economic events are shown in chronological order with the date and the time the announcement was released or will be released. 2. Time and country Below the date you’ll see the country’s flag and the time the event will be released or has been announced. NOTE: If you see the bar chart highlighted in blue – it means the event is a High Impact announcement. 3. Event On the top left next to the time will indicate the news or the events. 4. Actual/Forecast/Actual With each economic indicator event released, you’ll find the Actual, Forecast (Predicted) and Previous (Prior) numbers next to the date. Actual The economic event’s data released which shows you whether the data is BETTER or WORSE than the forecast number (expected). Forecast (Predicted) The expected number or forecast is the general agreement of the experts, analysts and economists. Prior (Previous) The previous data results e.g. Last month, last quarter or previous results. How to customize your Economic Calendar First, click on countries flags at the top of the calendar. A new window will open, where you can remove or select the countries events you’d like to see. Then click ‘Apply’ to update the information. Extra notes with the Economic Calendar There are a couple of important events you’ll need to watch out for on a monthly basis. Some of the most influential events, in no specific order, are the following: • Interest rate decisions • Changed in monetary policy • Inflation rates • QE Quantitative Easing • Credit tightening • Consumer sentiment • Non-farm Payroll • Changes in Gross Domestic Product (GDP) • Consumer Price Index (CPI) • Purchasing Managers Index (PMI) • Unemployment rate • Initial Jobless Claims • FOMC, Central banks meetings and economic talks • Geopolitical events You’ll see these will have a ripple effect on wider market movements. Economic indicators are the not only important events to watch out for. Also take note about the following news events: Event #1: ECB (European Central Bank) Event #2: US Fed Event #3: Bank of England Event #4: Bank of Japan Event #5: Swiss National Bank Event #6: Bank of Australia Let me know if this was useful and if you'll apply it to your website?
JSE:J200Education
by Timonrosso
8 Signs of Trading SuccessOnce you’re a trader, you’ll always be one. Once you have the pure desire and urge to succeed, there is no turning back. And you need to go with your own time line and slowly but surely, you will make it. But there are a few signs you’ll need to consider. It’s all up to you. Let’s start with these inevitable signs. Sign #1: You Have a Passion to Trade Successful traders are driven by an innate passion for the markets. You need to have a desire to understand the intricacies of global economies, price action and the thrill of identifying high probability trades. The wins, the losses. The winning streaks and even the losing streaks. You need to have equal passion and enthusiasm to fuel the time and effort you’ll need to put into learning, practicing, and refining your strategies. Sign #2: You Have a Trading Routine A routine is crucial. Whether it’s in the morning, afternoon or at night. This routine includes regular market analysis, pre-market preparations, and post-market reviews. Pre, during and post. Pre involves doing all the preparations and looking for sexy setups. During, is identifying high probability trades and putting in your trading levels. Post is seeing how your portfolio and trades performed. And you’ll need to foster a systematic approach to trading. Successful traders know the importance of sticking to a routine to avoid hasty, emotional decisions and to stay attuned to market changes. Sign #3. You Are Disciplined In the world of trading, discipline is king. It’s the ability to maintain control, stick to your trading plan. It’s also the state where you avoid impulsive decisions based on fleeting market sentiments. Successful traders know when to enter and exit trades, when to cut losses. They also have the discipline to monitor and make any necessary adjustments. But most important, you need to follow your strategies diligently. Sign #4: You Have a System to Follow A system has a clear set of rules and parameters for entering and exiting trades, managing risks, and securing profits. You then have the ability and vision to fine-tune the system, look for the best markets to follow and navigate the markets confidently and consistently. Your goal is to reduce the role of guesswork and emotion in your decision-making process. Sign #5: You Have a Strong Mind Trading is a mental game. It’s one of my 4 M’s with trading (Markets, Methods, Money and MIND!). A successful trader possesses a resilient mindset that can handle the emotional rollercoaster that trading often brings. They remain calm under pressure, keep their emotions in check. And most important, they are able to stay rational even when faced with losses. Sign #6: You Have Tunnel Vision Think of horses with their blinkers. They can’t see beyond their central vision. They can’t see the sexy horses around them nor the food that surrounds them. So with trading you need to be central focused. You need to learn how to block out ‘noise’ and stay focused on your trading endeavours. Don’t be swayed by others. Don’t be swayed by the news. Don’t be swayed by the hear-say! Remain focused on your plan and what you know works with you. Sign #7: You Have Goals Successful traders set clear, achievable goals. They know what they want to achieve through trading and have a timeline for these goals. They are realistic about their expectations and continually monitor their progress. Based on your track record. You have goals on what your win rate is. You have goals on what no. of winning and losing trades you can expect per year. You have goals as to what your portfolio should potentially grow to each year. Having specific goals keeps them motivated, directs their efforts, and helps gauge whether their strategies are working. Sign #8: You Have Endurance You have to learn to be persistent, and endure the ability to withstand market volatility and periods of losses. You have to understand that downturns are part of the journey. You need to lose to win and how it’s the only way to help your portfolio achieve an overall upward trajectory. Also have the endurance to wait for the right trading opportunities that will present themselves. So if you got these trading signs you have a great chance at WINNING. Here they are again. Sign #1: You Have a Passion to Trade Sign #2: You Have a Trading Routine Sign #3. You Are Disciplined Sign #4: You Have a System to Follow Sign #5: You Have a Strong Mind Sign #6: You Have Tunnel Vision Sign #7: You Have Goals Sign #8: You Have Endurance
JSE:J200Education
by Timonrosso
THIS IS THE REASON YOUR STRATEGY DOESN'T WORKThe title is brash, I know. But before you click away, answer these two questions: 1) How many strategies have you tried? 2) How many strategies have you backtested through several years and thousands of trades? If you have tried more strategies than you've backtested rigorously, then stick around because that's probably the reason why you're losing money. Imagine this. Florence is a novice trader. He's seen the thousands of dollars in profit a kid 10 years younger than him can generate. He's seen the kid flexing his Lambo on Instagram. The kid mentions RSI a few times, so Florence assumes the RSI indicator is the secret to insane profits. Florence is chomping at the bits and loads up a fresh Webull account with $3,000. Every time the RSI is above 70 on a stock, he shorts that stock. Lo and behold, after 5 trades, Florence's account now sits at $2,300. He concludes the indicator does not work. Florence perseveres and is determined to find the secret strategy to quick profits. He scraps the RSI and studies "support and resistance" trading from a few youtube mentors. He reloads his Webull account back up to $3,000. With a refreshed vision, he shorts anytime a stock is at resistance and longs anytime a stock hits support. Sadly, after 10 trades, his account is down again, this time to $2,600. Florence is flabbergasted. The story goes on. He attempts implementing strategy after strategy and continues to lose money. Unfortunately, many of us are Florence. We did what he did. We got into the game without a blueprint or game plan. And this is why my title is brashly stated, "If you don't read this you are going to lose money," because it's true. If you resemble Florence even in the slightest, basing the success of your trading strategy on a handful of trades, then how do you expect to know what strategy is actually successful? I don't blame you for approaching trading like Florence. In today's age, we are seeing the market oversaturated with traders and trading coaches, or even worse, "trading influencers". As with any influx of the masses, we are going to get the scumbags trying to get you to buy their image and product by falsifying the simplicity and ease of trading. If you are jumping between strategies without quantifying its success and failure rates over thousands of scenarios, then stop trading right now because you are going to continue losing money. Find a backtesting service or at the least log every single trade you take. Whatever it is, slow down and find proof of failure before declaring failure. I don't want you to fall into a never-ending hole of searching for the "right" indicator/strategy. The truth is, most of the strategies you've thrown away probably work and you don't even know it.
CME_MINI:ES1!Education
by thetradedoc
A Trader’s Checklist: 12 Essential Trading Questions to answerWhatever you trade… A successful trader minimises these risks by asking and answering a series of vital questions. This will help you ensure a clear strategy, an understanding of the market, and a control of emotions. Let’s dive into these questions. Q 1. Has a Trade Lined Up? Identifying a potential trade is the first step. Look for trends, chart patterns, or any other signals that indicate a potential opportunity. Yuu can also use Smart Money Concepts or price action techniques to pinpoint a trading setup. Q 2. Do I Have a Strategy in Place? Every successful trader operates with a strategy. This could be based on technical analysis, fundamental analysis, or a combination of both. This will give you the roadmap to tell you when to enter and exit trades. Q 3. Do I Know Where to Place My Trading Levels? Determine your entry, exit, and stop-loss points. These are crucial levels for you to know with your trading strategy. This will remove the emotions or gut feelings or like I like to say ‘gat’ feelings. Q 4. Do I Know How Much I Need to Put into My Trade? Money management is key. Decide beforehand how much of your capital you’re willing per trade. This is obviously based on what your CURRENT portfolio is rather than what it was. A common rule of thumb is not to risk more than 1-2% of your trading capital. Q 5. Am I Ready to Buy or Sell Now? Before you pull the trigger. You need to be sure you’re ready. Have all the signals from your strategy aligned? Do you see the sign to get in? Then JUST TAKE THE TRADE. Q6. Do I Understand the Underlying Asset? Whether it’s a company’s stock, a commodity, or a cryptocurrency. You need to understand what you’re trading. You need to understand the factors that influence price movements, which can also give you that extra edge. Q 7. Have I Conducted Thorough Technical Analysis? Charts, indicators, patterns, volume or Smart Money Concepts. Technical analysis is a trader’s bread and butter. Make sure you’ve analysed the market technically and your analysis supports the trade. Q 8. Am I Letting Emotions Influence My Decisions? Fear, greed and ego are a trader’s worst enemies. Are you trading based on your mechanical and analytical strategy? Or are emotions driving your decisions? Q 9. Have I Set Realistic Profit Targets? It’s important to have profit targets in place. And they need to be realistic, based on the market conditions and your trading strategy. Remember, each market has their own trading personality so work with it. Q 10. Is This Trade Consistent With My Trading Plan? You need to make sure, your trading setup aligns perfectly with your track record and system data. Each trade should align with your overall trading plan. If it doesn’t, it may be best to pass. Q 11. Am I Overexposed in One Sector or Asset? If the quantity you choose to trade matches your risk management, you’re good to go. If you have a smallish portfolio, you might not be able to trade EVERY market. Some commodities and indices are extremely expensive and too risk when it comes to volume. If you’re overexposed in one area, you could face higher losses. Q 12. Am I Prepared for the Trade to Go Against Me? Even with all the analysis in the world, trades can go wrong. Are you prepared for this, both financially and emotionally? By asking these questions, you will at least be prepared for what is to come. Do you have any more questions you ask before taking a trade?
JSE:J200Education
by Timonrosso
3 Best Market Trading Opportunities to Maximize Profit Potential Hey traders, In the today's article, we will discuss 3 types of incredibly accurate setups that you can apply for trading financial markets. 1. Trend Line Breakout and Retest The first setup is a classic trend line breakout. Please, note that such a setup will be accurate if the trend line is based on at least 3 consequent bullish or bearish moves. If the market bounces from a trend line, it is a vertical support. If the market drops from a trend line, it is a vertical resistance. The breakout of the trend line - vertical support is a candle close below that. After a breakout, it turns into a safe point to sell the market from. The breakout of the trend line - vertical resistance is a candle close above that. After a breakout, it turns into a safe point to buy the market from. Take a look at the example. On GBPJPY, the market was growing steadily, respecting a rising trend line that was a vertical support. A candle close below that confirmed its bearish violation. It turned into a vertical resistance. Its retest was a perfect point to sell the market from. 2. Horizontal Structure Breakout and Retest The second setup is a breakout of a horizontal key level. The breakout of a horizontal support and a candle close below that is a strong bearish signal. After a breakout, a support turns into a resistance. Its retest is a safe point to sell the market from. The breakout of a horizontal resistance and a candle close above that is a strong bullish signal. After a breakout, a resistance turns into a support. Its retest if a safe point to buy the market from. Here is the example. WTI Crude Oil broke a key daily structure resistance. A candle close above confirmed the violation. After a breakout, the broken resistance turned into a support. Its test was a perfect point to buy the market from. 3. Buying / Selling the Market After Pullbacks The third option is to trade the market after pullbacks. However, remember that the market should be strictly in a trend. In a bullish trend, the market corrects itself after it sets new higher highs. The higher lows usually respect the rising trend lines. Buying the market from such a trend line, you open a safe trend-following trade. In a bearish trend, after the price sets lower lows, the correctional movements initiate. The lower highs quite often respect the falling trend lines. Selling the market from such a trend line, you open a safe trend-following trade. On the chart above, we can see EURAUD pair trading in a bullish trend. After the price sets new highs, it retraces to a rising trend line. Once the trend line is reached, trend-following movements initiate. What I like about these 3 setups is the fact that they work on every market and on every time frame. So no matter what you trade and what is your trading style, you can apply them for making nice profits. Good luck!
Editors' picks
OANDA:XAUUSDEducation
by VasilyTrader
34