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WHY YOU Don't always Receive INTEREST when you are short... Q. I thought that when you go short (sell) that we earn interest (swap fees) per day. But to my surprise I was actually charged interest on my open trade with AUD/NZD. Was I not meant to earn interest?” A. Unfortunately, it depends… With each market you trade, you’ll need to look at the symbol information for each trade you take. This also depends on the deal the broker has with each market. For example, when you SELL AUD/NZD you're essentially buying NZD/AUD (as they are currency pairs). So whether you go long or short, you don't earn interest with short (sell) currencies... But make sure, you always look at Symbol information and see what swaps are positive when you are short. With the AUD/NZD you can see you pay -3.35% per year. That means each day you hold, you’ll have to pay 0.009% per day. Then with some commodities and indices you’ll either earn interest or you’ll have to pay interest when you short (sell). For example, with gold you’ll receive an interest of 1.23% per year. Whereas with cotton you’ll pay 5.4% per year. With the UK 100 FTSE, you’ll pay an annual interest of -0.24%. And with the Dow Jones you’ll receive 0.74% per year. Then with local and international stocks, you’ll receive a certain % of interest (swap fees) per year. So make sure you always check to see what each swap (daily interest fee) entails. This obviously depends on the Market Maker you're using and if you're using Trading View make sure you see the information from your broker what the interest swaps (fees) are when you go long or short.
TVC:SA40Education
by Timonrosso
4 Ways to ACTION a trade - WHEN TO FIRE!You know that successful trading is… . . . . Patience. You need to wait for the setup, reason, system, lining etc… But then there is the 2% time where you actually ACTION a trade. We action a trade for three reasons. To enter To adjust To get out But we need to talk about these reasons more… Let’s do it., ACTION #1: Trade lines up – JUST TAKE THE TRADE! When your trading signal lines up with your entry, stop loss, take profit, and system: This is the most obvious time to take action. It tells you “HELLO AN OPPORTUNITY HS ARISEN” It is crucial to act quickly and decisively when this happens, as opportunities in the market can disappear just as quickly as they appear. ACTION #2: Adjust your levels – JUST CHANGE THE TRADE There are two levels you can adjust with your trades. Stop loss and Take profit. When the market is moving in your favour, and you have solid rules to move your stop loss in the favour. This is done to lock in minimum gains. For example. When my trade is 1:1 in the money, I might move my stop loss to just above breakeven. This way I have nothing to lose if it turns against me. Then when the market is shooting in your favour, you might want to adjust the take profit. This is because you can see the market wants to move further or… There is a new setup with a new take profit level in place – which happens often with my analyses. Action #3: Execute the time stop loss – JUST GET OUT When an extended period has taken place i.e. 35 days or 7 weeks. You might want to just get out of the boring trade. You are either : • Chowing (eating away at) unnecessary daily costs holding a non performing trade. • A trade setup seems null and void as a new contrary setup as formed. • Or it’s just a plain old opportunity cost where you can put your money in better places. it may be necessary to exit the trade in order to avoid incurring too much in daily fees or missing out on other better opportunities. Action #4: Exit due to unforeseen circumstances- SERIOUSLY JUST GET OUT! For example when a black swan event occurs: A black swan event is a term used to describe a market collapse (10X the standard deviationof its normal price move) that is unexpected and has a significant impact on the market. In the event of a black swan event, it is essential to exit your trade in order to protect your capital and avoid taking a bigger loss than you expected.
TVC:SA40Education
by Timonrosso
EXPLAINED: A Bearish Fair Value Gap (FVG) - Smart Money ConceptsA Bearish Fair Value Gap is a 3 candle structure with a DOWN impulse candle (2nd) that indicates and creates an imbalance or an inefficiency in the market. WHAT DO THE IMBALANCES TELL US? These imbalances tell us that the buying and selling is not equal. Now the market needs to rebalance (move at least to 50% of the fair value gap to fill) to make up for the imbalance and rebalance. For this to happen we need to see orders filled in the prices of the candle with the FVG. HOW A BEARISH FAIR VALUE GAP IS CONSTRUCTED: 1st Candle Draw a horizontal line from the bottom of the wick. 3rd Candle Draw a horizontal line from the top of the wick 2nd Candle Draw a BOX between the bottom and the top and pull it over to see the FVG range. BETWEEN CANDLE 1 and CANDLE 3: Do NOT show common prices. They do NOT touch where the lower & the upper wicks do NOT overlap. With a Bearish FVG we can expect the market price to move UP. HOW MUCH? I believe a Bearish FVG needs to close at least 50%. So you can drag a Gann Box or a Fib retracement (take out all the other levels except 50%). Wait for the price to close and fill the prices and boom - Your Bearish Fair Value Gap has been filled. SO WHAT? When you see a Bearish Fair Value Gap, you can expect the price to move up. So you can place your stop loss below the downtrend. You can place your entry where it shows upside is imminent to close the gap. You can place your take profit above the 50% of the formation, as you expect the price to close. But also, we use other confirmation signals with the Bearish Fair Value Gap. Let me know if you have any other SMC (Smart Money Concepts) Questions.
TVC:SA40Education
by Timonrosso
XAUUSD We caught the sells and 18/4/23 Outlook Good evening Gold Gang! what an amazing day on the gold chart The first sells came after the forecasted fake out of the key level .. i entered as soon as i saw a bearish candle form after the rejections at key level .. i rode it down to the next level and then price continued again. Both levels forecast and its amazing to receive messages from traders who took the same trades as me. For tomorrows price action, price has rejected the major key price level of 1983 with a huge wick. Id like to now start to move upwards to correct the bearish drops. This could be the beginning of the all time high run .. but we will need a biiig news catalyst for this to happen. Sells below the previous close but be aware of price at 1979 as there may be a reaction from there. Have a great evening guys, please leave a like and follow along for more xauusd updates tommyXAU
OANDA:XAUUSD
by tommyXAU
5
Why you should NOT view LOSSES as LOSSESI want you to stop thinking of trading losses as losses. It’s having an effect on you emotionally and is stopping your full potential of growth. Financial trading, like any other business or aspect of life, involves costs. That’s just life. In business, there are costs associated with equipment, rent, salaries, taxes, and legal fees. In our personal lives, there are costs associated with household expenses like rent, groceries, insurance, medical fees, taxes, and repairs. Similarly, in trading, there are costs associated with normal losses, daily interest charges, and drawdowns. It’s crucial to remember that losses are an inevitable part of trading and should be viewed as a necessary cost of doing business. Just as a business owner must invest money in equipment, rent, and salaries to run their business, traders must also be prepared to invest money in losses in order to be successful in the long run. If you try to avoid taking a trade, because you are worried about the loses, you will miss out on the greater rewards for when profitable trading opportunities come your way. When you see trading losses as costs… You will be able to take a more objective and strategic approach to the trading decisions that you make going forward. This can help you to minimize losses and maximize profits over time. So there are few things you need to do to mange your costs (losses) emotionally and physically. Action #1: Set realistic stop losses Place your stop loss with every trade and never risk more than 2% of your portfolio per trade. Action #2: Understand the concept of Risk to Reward better. The risk-reward ratio is the ratio of the potential profit of a trade to the potential loss. By understanding the risk-reward ratio, traders can make more informed trading decisions and can better manage their risk. Action #3: Don’t feel your losses If you feel 2% is too much to risk, risk less! Get to the point with your life where a loss isn’t that much as with where the reward isn’t worth celebrating. Overtime, you’ll slowly grow your account and your mind too.
TVC:SA40Education
by Timonrosso
Patience is a Virtue in Trading! Learn Why: In trading, timing is everything. Winning traders are patient. They know how to control their impulses so as to act decisively at the opportune moment. Rather than acting on a whim, they carefully devise a detailed trading plan, in which precise entry and exit strategies are specified, and strictly follow it. Discipline is the key to successful trading. Although discipline can be learned, some people are more disciplined and self-controlled than others. It is useful to determine where you stand on this trait, and if you’re impulsive, developing psychological strategies to compensate for it will allow you to trade profitably. Research studies have demonstrated that some people have difficulty delaying gratification. In the jargon of behavioural economics, they “discount delayed rewards.” That is, they would rather take a small profit now, instead of waiting for a larger profit later. Depending on your style of trading, discounting a delayed reward can be a problem. For a long-term investor, for example, it is necessary to buy-and-hold long enough for one’s long term strategy to play out. There may be minor fluctuations during the waiting period, but seasoned investors have learned to wait it out. Most novice investors, in contrast, impulsively sell as the masses panic and buy the stock back at a top, which usually results in a losing trade. If you are a long-term investor, it is necessary to be able to control your impulse to make a profit and allow the price to rise over time. Even shorter-term traders, such as a swing trader, must fight the urge to sell early. Although trades are held for much shorter windows, a swing trader must know how to wait patiently for the optimal time to sell. Selling a winner too early is not going to allow one’s account balance to increase exponentially at an ideal rate. The scalper is at the opposite end of the spectrum. Most scalpers feel an overpowering need to take a quick profit as soon as they can get it. To some extent, it may be wise for a person who has trouble patiently waiting for the price of an investment instrument to increase to become a scalper. The conventional wisdom these days, however, is that decimalization has made scalping less viable. It is useful to take other steps to work around one’s inclination to sell prematurely. For example, one can use the automatic settings on one’s trading platform to specify an exit strategy. It has often been said that looking at one’s screen during the trading day is like sitting in front of a slot machine and trying to resist gambling. It’s hard. Just as the one-armed bandit tempts recreational gamblers, charts and indicators on a computer screen tempt seasoned and novice traders alike to make hasty trading decisions. It may be useful to refrain from constantly looking at how a particular stock or commodity is doing while you’re waiting for your trading plan to play out. If you have to walk away, while having the automatic settings on to manage risk, then, by all means, turn off your screens or walk away. It is also useful to objectify the trade. The more you can learn to view the trade objectively, as if you just don’t care what happens, the more you’ll be able to resist the temptation to close out a trade prematurely. A cold, rational approach to trading, along with a detailed trading plan, is the best defence against impulsive trading decisions. Patience is a virtue when attempting to trade profitably. It is useful to remember that humans have a strong, natural tendency to avoid risk and loss at all costs. This tendency often protects us from harm, but there are times when it can compel us to act impulsively. We are naturally inclined to avoid losses at all costs, even if it means selling a potentially winning trade before it reaches fruition. Unless one can let winners increase in price sufficiently, profits won’t balance out losses. The ability to control one’s impulses and wait for larger, delayed rewards is vital for long-term survival. It’s worth developing this ability. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
9
BIG TIP OF THE DAY - Ride Winners and Cut losers BIG TIP OF THE DAY: If you want to ride up winners, lock in profits and reduce losers here is what to do. 1. Place your Entry Stop loss and Take profit (But have a TP 2 and TP 3 in place). 2. When the price approaches TP 1 (Close half of your position and move your stop loss to Breakeven) 3. When the price hits TP 2 (Close half of your position and move your stop loss half-way) 4. When the price hits TP 3 (Close your entire position). This is how to ride your profits and winners.
TVC:SA40Education
by Timonrosso
Why we MAKE Excuses as tradersIt is an innate habit to make excuses in life. We make excuses because it is the easy way out. And let me tell you. With trading, there is no EASY way. As I like to say trading is the easiest hard way to make money. It starts with NOT making stupid excuses such as: Excuse #1: “I don’t know enough about the markets – so I won’t trade yet” People don’t trade because of one thing. Ignorance. People may make this excuse because they have not put in the time and effort to research and understand the stock or market they are trading in. They make this excuse that they believe the market is a difficult, advanced and complex world to financially grow. If you passed school, or university – you can definitely learn how trading charts work and how the market operates. Besides, it’s just demand, supply and volume and the rest is micro and macro economics (which you don’t even need). I know some 20 year olds who dropped out of school to learn to trade the markets and they are doing fine (for now). Excuse #2: “I’m scared of losing money – so I’m not going to trade”. Sure you’re worried about financial loss and that you can blow your account. Besides 98% of traders fail, because of this. But you do know you can start with a demo (paper) account in the mean time. Once you see consistent paper returns and that you have a solid and adept strategy, you can start depositing little by little. Money is no excuse when you can learn to trade – for free! Excuse #3: “I won’t be able to stick to the strategy” Most people make this excuse because either: They do not have a proven and profitable strategy. They do have a strategy but do not have the confidence to trade it. They do NOT have the faith to actually take the discipline to take a trade when the system lines up according to the strat. They don’t think they’ll be able to focus on trading because, they are distracted by other things in their lives. This is a mind game, so work on yourself before you trade for yourself. Excuse #4: “I can’t stand the fact of losing” Back to ego, pride and integrity. Let me try and help you with this one. When you buy yourself clothes, cars or other material stuff. You do know you’re spending your hard earned money – poof – gone. With business, you have monthly costs fixed and variable. With life you have expenses and unexpected doctor appointments. All of these come with an opportunity cost. I lose this to get that. Trading shouldn’t be any different. You lose a bit of capital off one trade, to bank a higher return the next time. Rinse and repeat and your losses will start to feel like costs of the business. Your winners will feel like the money to pay for some of the costs next month. Cut your ego out because every week and month you spend and waste money – it’s called maturity. Excuse #5: “I’m waiting for better conditions” When the market Is not that favourable, how do you know when it will turn back? You just need one day, one week or one month – and your portfolio could head to all time highs. It’s not our jobs to trade when markets are favourable or not. It’s our job to follow the proven strategy because we know it will yield a consistent return over time. Also… When you do eventually get into trading – then what? Are you going to stop trading again because the market isn’t feeling right for your strategy? I should hope not. You’ll be entering into a discretion and subjective form of trading which eventually ends up to be a losing strategy. I hope this helps and makes you realise that excuses are nothing more than going back into a comfort zone of no change and progress… When later in life you’ll realise. Your comfort zone, was uncomfortable to begin with.
TVC:SA40Education
by Timonrosso
8 Trading Tips to Help You Increase Your Trading Profits Whether you are just getting started or you’ve been on your journey for a while now, you’ve probably discovered that day trading is not easy. You’re putting your hard-earned money on the line and facing new challenges daily. That said, every challenge you conquer takes you one step closer to your ultimate goal. Small behavioral changes can have profound impacts. Your goal is to minimize losses and maximize profits in order to increase your net profitability. Here are some tips: 1. Avoid Overtrading Traders are ambitious, sometimes too much so. Many traders feel the need to always be doing something. It’s important to remember that trading requires patience, and the quality of your trades is far more important than the quantity. 2. Avoid Under-trading Do you ever find a great trade setup that you don’t take action on, only to look back later and realize your idea was spot on? 3. Take Control of Your Losses As traders, we’re always focused on profits. After all, the main goal of trading is to turn money into more money. It’s easy to get carried away and forget about the very real potential for losses. In reality, limiting losses has the same net effect as increasing profits. 4. Simplify Your Approach There is an incredible amount of data available to traders in this digital millennium. This data is intended to improve our decision-making abilities, however it can also be overwhelming. 5. Trade Robotically As you begin to simplify your approach to trading, you can focus on making your strategy more robotic. The goal is to take all emotions out of trading so you can take a systematic approach to your trading. 6. Learn Your Strengths and Weaknesses Becoming a successful trader requires introspection, self-analysis, and evolution. Simply put, you need to analyze your own behavior and look for areas of improvement. 7. Double Down on What’s Working Learn to double down on areas of strength. Focus your efforts to trading activity that yields the highest rewards. 8. Don’t be Afraid to Go Back to Square One If you find yourself in a rut, don’t hesitate to go back to basics. In the trading world, a simple piece of advice can be a game changer. We’ve all heard quotes, lessons, or tips that have elevated our trading to new levels. What’s the best trading tip you’ve ever received? What do you want to learn in the next post?
TVC:GOLDEducation
by UnitedSignals
10
MC DONALD'S TRADING LESSONSStory time… One of the greatest success stories of all time, is with the company which is based on the glorious golden arches we still see today. Mc Donalds… It all started in 1940 where, two brothers, Maurice and Richard “Dick” Mc Donald’s made a small fortune selling hamburgers in San Bernardino, California… They took a product and an idea and turned it into a fast, convenient and consistently profitable business. Once they mastered their strategy and system then they introduced Ray Croc (a shrewd American businessman) into an agreement to build more Mc Donalds… However, he barely made enough profits to sustain, find more franchisees and even pay off his expenses… That’s when Harry Sonneborn came about where he made Ray Croc realise, he was in the land business rather than the restaurant business… Ray Kroc explained… “Pretty simple, really. Franchisee finds a piece of land he likes, gets a lease, usually 20 years, takes out a construction loan, throws up a building, and off he goes.” Sonneborne then said: “You don’t seem to realize what business you’re in. You’re not in the burger business. You’re in the real estate business.” This conversation lead to the global expansion of McDonald’s, turning it into the most successful fast food corporation in the world. In this article, I’m not going to talk about Ray Kroc, but instead how the brother’s starting concept applies to trading. Here are three lessons I learnt from Mc Donald’s Success #1: Less is more… The brothers were geniuses from the start… When something didn’t work, they threw it out… When something showed to work, they harnessed it, optimised it and improved it… They did this with data. The brothers took sales data to compare which products were making more money. They found that 80% of their sales in the last 3 years came from simple burgers. Each burger was made with precise ingredients. Any deviation and this caused sales to drop. The rest of the 20% were drinks and barbeque. So the brothers made their life easy and got rid of the barbeque pit completely. They also cut their menu down from 25 items to just 11 items. It mainly had Burgers Fries Milkshakes and Soft drinks They said let’s do less of what’s not helping sales and focus on what is making the most revenue. Once they got rid of the barbeque pit the brothers later on systematised the burger making process. So how does this relate to trading… Less is more is one of my most powerful quotes when it comes to trading… You need to cut out a LOT of data to maximise your returns… Find one or two systems that suit you. Minimise the number of markets, time frames and charts to look at. Cut out unnecessary indicators that conflict with the systems signals and frequency. Choose a certain time that works best for your system. Stick to 1 or two financial instruments to trade. Only have 1 or 2 or max 3 trading accounts with reason. It will take time and effort on your side to cut out what needs to be cut, but you won’t regret it in the long run… As Mc Donald’s did… Take a product improve it drastically then sell it to the masses. #2: Find a system to repeat over and over With Mc Donald’s did you know… They took a tennis court and drew out the compartments of making a burger. They then orchestrated it with their employees until the flow and speed was at the most optimised level. Once they found a winning system, reduced the time to make a burger and optimise the process – they were able to even drop the price to appeal more demand… At the time, they could drop the burger to 15 cents… With trading, you know this… You’ll need to find, adopt, follow and repeat your turn-key system. It doesn’t matter whether it takes you 2 months, 2 years or even 7 years to get right. Once you have it, you’ll be able to generate consistent results year in and year out. Just like the cycle of burgers, you’ll have your very own consistent cycle of success through trading… Also, with your one system you’ll be able to optimise it and improve it when conditions change… This brings us to the third lesson… #3: “We love to see you smile” This was one of Mc Donald’s campaign they used from 2000-2003, which has stuck… Not only does Mc Donald’s keep to their winning formula, systems, products and manner – but they also adapt to change… They continue to offer new items on the menu’s as time’s change… From Happy Meals, Toys, Lollipops, Café’s, Ice creams, food cultural adaptions to even Vegan food… They think of everything to adapt to change… BUT! They don’t stop offering their winning products that bring in revenue. With trading you need to also evolve as a trader and adapt to change. Sure, your system will remain consistent. Sure, your risk management won’t change… But there are certain elements that require change such as… New markets: You might want to incorporate your system with new markets i.e. AI, Electric Vehicles, Metaverse, Cannabis, Energy alternatives, Crypto, NFTs. AI (with ChatGPT, DALLEE, BING) and so on… New instruments: Also, we might need to evolve from the current financial instruments we’re trading… Once day, CFDs and Spread Betting might be a thing of the past. I personally have evolved from shares, warrants, futures to ETFs. You never know what will be next… New automations: We might soon have robots and AI to use out system to find trades and execute them. You get the point… If you want to be successful with trading you have to understand the power of systems to repeat… This way the system will do the job for you… Next time you’re at Mc Donald’s, you’ll see what I mean.
NYSE:MCDEducation
by Timonrosso
ROADMAP from COMFORT to GROWTHMost people take the easy road of being in a Comfort Zone. For this reason, they keep getting the same results and remain in their ‘uncomfortable’ position in life. Think about it… Those that don’t understand new things, never adapt to something that could change their life for the better. Those that keep earning the same old salary, never grow their retirement kitty to the level they wish. Those that never throw things away, end up cluttering their life with the old. Trading is no different. It requires you to step out of your comfort zone in the beginning, to create something that can change your life. Besides, great things never came from being in a comfort zone. Let’s talk about the stages required to become a Growth Trader. ZONE 1: COMFORT This is where most people stay. They don’t take the necessary steps to open a trading account, fund it and grow their portfolios. Instead, they stay in a feel safe and in control of their non-growing finances. I still have people who’ve followed me for 15 years, and haven’t taken ONE single trade. You need to jump out and take action. ZONE 2: FEAR When you have finally decided to take a leap of trading faith, a whole bunch of new fear with encompass your mind. Will I lose money? Will trading work for me? Will I be able to follow a strategy each day? Will I be on time to trade the markets? What if the market environment is not conducive when I start? Harness this fear, because it means one thing… CHANGE IS COMING… ZONE 3: LEARNING Every loss, gain, rule is a lesson and adaption to entering a NEW zone. Every challenge you face, is one less challenge you’ll need to deal with in the future. Every difficulty you experience is a skill that you’ll acquire for trading. The more you learn about the technical and fundamentals of the financial markets, the higher the level of experience and wisdom you’ll gain as a trader. The learning phase is imperative to achieving success in any field… ZONE 4: GROWTH The accumulated lessons, experience, wisdom, actions and tribulations of repetitive actions – are the foundations to entering into a new comfort zone of GROWTH. The difference is… You would have taken the necessary steps to succeed and accomplish your trading goals. It will eventually reach the point, where the above zones will help you enter into a conditional and automatic process into your life where trading is nothing more than a continuous habit. Once the fear, thrill and uncertainty are removed – only then you’ll realise that the initial comfort zone of inactivity was the uncomfortable phase that took you nowhere… Life begins at the end of your comfort zone. Read that last sentence again.
JSE:J200Education
by Timonrosso
5 Choices you Make as a Trader - THIS Or THATFrom the second you turn on your computer, to the time you press buttons commit your funds into your trades and close your computer. You are making your own choices. Do you choose this? Do you follow that? Do you go against this? Do you type that? So technically, your financial future success lies all in your fingers. In this TradingView piece, you need to ask and answer what choices are you prepared to make – to turn your life around as a trader. CHOICE #1: Sleep until noon – Wake up early If you’re a position trader (trade once per week or so) like me, then you’ll know profitable opportunities knock VERY slowly. You can wake up late, open your trading platform and see a missed trading opportunity just like that. Or you can set your alarm, wake up to check the markets to confirm if there is a trade lined up or not. DON’T MISS YOUR TRADING OPPORTUNITIES! CHOICE #2: Only trade your starting portfolio size – Deposit money each month Let me be frank. R5,000 isn’t going to turn you into a millionaire. R20,000 isn’t going to turn you into a millionaire. I’m sorry but it has to be said. You need to find a way to keep depositing a bit of money into your trading account each month. Whether it’s 5% or 10% of savings, the more you deposit each month – the faster your portfolio will grow as you have more to make money from money. CHOICE #3: Go against your strategy – Follow your strategy I know it’s tempting to want to go against your strategy. You want to move your take profit, stop loss, you want to buy more. You want to take some money off the table. The problem is – make this choice and you’ll set a dangerous precedent. It will be the start of going against your strategy the next time and eventually, you’ll only be trading with discretionary (self) which I need to remind you is… A COMPLETE LOSING STRATEGY! The stock market doesn’t work on emotions. It doesn’t think and it doesn’t feel. So why should you? Keep to your proven and profitable trading strategy, and the profits will yield as your system has shown you time and time again. CHOICE #4: Learn and then drop the E – Try to earn and drop the $ Trading is a forever learning business. You need to learn how the markets work. You need to learn how the trading environments operate and when they are favourable or unfavourable to your strategy. You need to learn WHICH are the best instruments to trade. Which are the most reliable and secured brokers. Which trading platforms are up to date with technology. What NEW markets there are to utilise and profit from. The list continues. Please follow your own learning time line as a trader and then you’ll find it will all be worth it. CHOICE #5: LATER – NOW! I still get people who send me messages like… “Timon I’ve been following you for 15 years and haven’t started trading yet, what do you suggest?” Simple! Get out of your comfort zone, stop being lazy and take the necessary steps to start your trading journey. 15 years! You could have had all the experience you needed by now. You could have gained important lessons to build your portfolio. It’s all on you. The best time to start is NOW! There is no past (as it already happened). There is no present (as it automatically becomes the past). There is no future (as it’s still to come). So all you have is an infinitesimal photo shot of time called NOW! Got it? Make your choices and materialize your trading into the reality you’ve desired.
JSE:J200Education
by Timonrosso
Tips to be a Healthy Trader - Wisdom Yields HealthI came up with a corny slogan in 2013. “Wisdom Yields Wealth”. Well, today I came up with another corny slogan but relevant to today and this year. “Wisdom Yields Health”. As you know, health is the greatest wealth of all when it comes to your: Physical appearance Mental cognitive thoughts Important decision making Longevity In 2023, health is everything as the world continues to linger in a very stressed phase. (Especially, what’s going on in South Africa with Eishkom, water issues and tax month having kicked off). If you want to be a good trader, you need to focus on not only your money and mind but also your health. Health will help you optimise your trading performance. So, this is a short but important article to remind you to try be a little bit healthier. HEALTH TIP #1: Sleep Even Hours It’s an old wife’s tale that you need 7 hours of sleep. It’s proven that the sleep cycle works on EVEN hours, NOT odd. So if you sleep 7 hours, you’ll deprive yourself of the last 1 hour you need to complete your cycle. When you decide to go to sleep, set an alarm for 6 hours or 8 hours to get the right amount you need. Also, if you wake up before the alarm and you feel fresh – stay awake, don’t go back to bed. Listen to your body more and it will reward you better. You need to be clear headed when you wake up in order to take on the markets with a fresh mindset. HEALTH TIP #2: Drink COLD Water Listen… You’re made up of over 73% water. So you might as well fuel yourself up and stay hydrated. First glass in the morning and another glass every two hours. Or just have a 2 litre bottle next to you. When it’s finished, refill it. Ok you’ve heard that a million times. Here’s where it gets interesting. Did you know that if you drink ice cold water, it will help you to keep awake, will fire your neurons and will boost your thinking capabilities. That’s the big tip with drinking water as a trader. Ice, Ice baby! HEALTH TIP #3: Eat less ‘high energy to consume’ foods in the day You know what puts us off work, trading and life? Having a bloated and painful stomach, because of the stuff we ate. I’m talking breads, pastas, sweets, crisps and fried food. When you eat this stuff, you won’t feel in the mood to trade, think or work. It’s also probably affecting in the bedroom too! Eat these in moderation and NOT when you trade or a few hours before you trade. Anyway, I’m not giving advice, just some tips that’s helped me to trade better over the years. HEALTH TIP #4: Keep Walking Gyms might be inaccessible right now. And exercise is just too difficult to keep motivated to follow. So instead, take your trade for the day and go for a walk around your complex, park or anywhere just to burn those calories and keep you fit and healthy. I’m in Greece right now and nothing beats a good walk around the Ancient historical sites in Monastiraki such as the Agora, Acropolis and even the amphitheatres. Or a walk around the Marina – Flisvos harbour to take in the cool breeze and breathtaking view of the sea. Find your piece of heaven (where ever it is) to walk around and burn those calories at least twice or three times a week. I can go on about health tips, but four is more than enough to start with. Please look after yourself, your body and your mind.
JSE:J200Education
by Timonrosso
1
Top Tips For Beginner TradersTrading can be a lucrative and exciting venture, but it can also be overwhelming and risky for new traders. Whether you are interested in stocks, forex, or other markets, there are some important tips to keep in mind as you begin your journey as a trader. Let's outline some of the top tips for new traders. Start with a solid education The first step to becoming a successful trader is to gain a solid education on the markets you are interested in trading. This can involve reading books, taking courses, attending seminars, and researching online. By understanding the fundamentals of trading, you can avoid many common mistakes and develop a strong foundation for your trading career. Develop a trading plan Before making any trades, it is essential to develop a trading plan that outlines your strategy, risk management approach, and goals. Your plan should also include details such as the types of trades you will make, the timeframes you will trade on, and the tools and indicators you will use to analyze the markets. Practice with a demo account Many brokers offer demo accounts that allow you to practice trading without risking real money. This is a valuable way to test out your trading strategies and get a feel for the markets before committing to real trades. Practice trading on a demo account until you feel comfortable with your approach and have a solid understanding of the markets. What I love about Trading view is that you can demo trade without a broker. You can save the headache of having to find a broker later in your trading journey when you're ready to trade live. Manage your risk One of the most important aspects of successful trading is managing your risk. This involves setting stop-loss orders to limit your losses and using proper position sizing to ensure that you do not risk more than you can afford to lose. Never trade with money that you cannot afford to lose, and always be mindful of the risks involved in each trade. Think of each trade as it's own idea that gets a portion of your capital. That makes it easier to trade in size instead of betting everything in 1 or 2 trades. Keep a trading journal Keeping a trading journal is a great way to track your progress and identify areas for improvement. Record your trades, the reasons behind them, and the outcomes. Analyze your trades regularly to identify patterns, mistakes, and successes, and adjust your trading plan accordingly. Your journal will differ from other trader's journal so be mindful you're keeping dated records of everything you do. Be patient and disciplined Successful trading requires patience and discipline. Avoid the temptation to make impulsive trades based on emotions or rumors, and stick to your trading plan. Remember that trading is a long-term endeavor, and focus on making consistent gains over time rather than trying to get rich quick. If you add stress to your journey, the road to being a profitable trader will not be enjoyable. Being patient and disciplined can reserve your mental and physical capacity as a trader. Stay informed Finally, it is important to stay informed about the markets you are trading in. I'm big on not following every trader's advice or suggestions because then, you'll trade their journey. While their journey may be great yours could suffer if they decide to stop trading and you can't hold your own. To get the best results, stay up to date with current price movement. If you are a fundamental trader, stay up to date on what economical data is moving the market. be sure you understand what you do for yourself and not based on what others have to say about the market. In conclusion, trading can be a rewarding and profitable venture, but it requires dedication, discipline, and a solid education. By following these top tips for new traders, you can avoid many common mistakes and develop a strong foundation for your trading career. Remember to stay patient, manage your risk, and stay informed, and you will be on your way to success in the world of trading. I'll be live-streaming here on Trading view tomorrow at 1:00 pm EST. to give more tips to help the beginner trader. I hope to see you there and I hope you enjoyed these tips.
Education
by ShaquanLopez
7
Profit fixation Profit fixation There are three main profit-taking strategies: 1. Fixed RR (1:2, 1:3RR). 2. High RR (1:10RR and above). 3. Partial profit taking. Fixed RR. When trading with a fixed RR, the trader ignores the situation on the chart and places a take profit at the level of 1:1, 1:2, 1:3, taking into account the commission. This approach has a high win rate and also relieves the trader from feeling greedy. You do not need to select targets, accompany the position and worry about a random factor that the price may react to. We think that many people are familiar with the situation when the take is put on a lay, the price reaches 1:5R without removing the minimum, and then hits the stop. The weak side of the strategy is that it has limited profit potential. Often when trading with the trend, you can get more than 2 or 3%. High RR. According to this strategy, a position is opened on a lower timeframe, and targets are allocated on a higher timeframe in order to set a short stop and a long target. On the other hand, this does not prevent you from using a fixed take profit level.A. At one time, Liquidity traded high RR and set a take at the level of 1:10, regardless of the targets on the chart. Many in this strategy are captivated by mathematics. With a risk-reward level of 1:10, a win rate of 10%-20% or 1-2 profitable trades over a distance of 10 positions is enough not to be unprofitable. And yet, this strategy can harm the trader. If the price does not reach the marked targets, you will not make a profit even if you did everything right. This puts a lot of pressure psychologically, especially when it was possible to take 3-5% and close the position in plus. You may get the impression that there are only two extremes: earning rarely, but a lot, or little, but often. But there is another strategy that helps to balance and find a happy medium. Partial profit taking. The trader fixes the profit in parts as the selected goals are achieved. Targets can be determined both by schedule and by risk-reward ratio. For example, you fix 50% of the position at 1:3, 25% at 1:5 and 2 more5% at 1:10. Either 50% on FTA and the rest on potential reversal zones. This strategy will help you capitalize on your trading ideas, reducing the risk of losing profit when the price falls short of the marked targets. Partial fixation will be useful for novice traders because it creates a positive experience and demonstrates what you are capable of. Do not jump from extremes to extremes and look for balance. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
How to Earn Self-Respect as a TraderIntegrity… It’s what gives you certainty, confidence and trust for yourself. It’s what tells you, you can do it. It’s what makes you leap forward in life. And it’s what earns you self respect. With trading, you need to achieve self respect, to help feel more assertive with the trading decisions you make. In this short letter, I’ll give you some actions to help you earn the self respect as a trader. Action #1: Do the hard things Anything that requires risking your hard earned money is tough. I get it. You didn’t make money just to lose it right? Well, you need to understand that in life there are no HIGH rewards without taking some element of risk. So, force yourself to sit down, deposit money into your account, wait for the proven trading setup to line up and TAKE THE TRADE. Next hard thing to do is, wait for the trade to hit your stop loss or take profit and don’t interfere with the process. And the last hard thing, is having tunnel vision and not listening to anyone about your trading decisions. Don’t listen to the news, your friends, strangers or even your family. You have your plan and system, follow it and you’ll feel in control and you’ll gain more self respect. Action #2: Don’t think it – DO IT Coming up with ideas are easy. Writing down goals and gluing your vision board with mansions and cars – are easy. What’s hard is actually taking the action. There is never the right time because it’s always the right time. So buckle up and take action with what you need to do to achieve trading success. Action #3: Take control and learn from your losses Losses are parts of the ying and yang of trading. You need a bit of good and a bit of bad to balance and build. Remember, the markets move in a zig – zag shape and so will your trading account. So when you realise this you’ll be able to acknowledge, own, take control and learn from your trading losses. But most importantly. The losses must only come from your proven plan. Don’t move a stop loss to make you risk more. Don’t remove a stop loss because you believe the market will turn. Take small losses so that the big winners make up and drive your portfolio up. Action #4: Don’t quit when it gets hard You only fail when you quit something. Read that again. When you quit, you lose. When you quit, you give up. When you quit due to premature excuses you lose self respect. Too many traders quit because they think the market is out to get them. This is either because they are taking a few losses or because they are trying to OUTBEAT the market through emotions. Listen if you have a few rules to manage your money like: ~ Risk 2% per trade. ~ Never allow your portfolio to be in -20% drawdown. ~ Never hold more than 7 to 8 trades at a time. You’ll be able to control your risk and boost your portfolio. Let’s sum these 4 actions up to trading self respect. Action #1: Do the hard things Action #2: Don’t think it – DO IT Action #3: Take control and learn from your losses Action #4: Don’t quit when it gets hard
JSE:J200Education
by Timonrosso
12
Biases that influence your decisions Biases that influence your investment decisions Most people who invest in the stock market don't reach their goals. The top 1% of investors can double or even triple their returns from the market. Reason: how investors think How this article will help you avoid these biases: * Awareness - Knowing what biases affect your decision making is half the battle. *Routine: I've made a list of biases that affect your analysis and biases that make you overestimate investments. Cognitive frivolity All of the following biases work so well because of the way people's minds work. Cognitive light-mindedness is a state of mind that is wanted and linked to good feelings. This is the main reason why people make bad choices. Halo effect It is much easier to think in black-and-white stereotypes than in gray ones. The halo effect explains why we like or dislike everything about someone or something that is connected to them. It's harder than we think to agree with some ideas and disagree with others. What You See Is All There Is All there is is what you see. You can't think about something you don't know. In a strange way, self-righteousness goes up when you only listen to one point of view. Again, we choose certainty over uncertainty. Anchoring Our decisions are mostly based on the first information we get. If you know that Apple shares are worth $150, they will look like a good deal at $120. Not even knowing if $150 is close to what something is really worth. Regression (Correction) We love to find links between things that don't have any. Regression to the mean can be one of the most important, but often overlooked, factors. Due to price balancing, everything tends to be worth about the same. Perceptual bias We think that events were easier to predict than they really were because of what we already thought. In hindsight, it's easy to make up connections between things. The truth, though, is more complicated. There are a lot of good ways to guess what will happen. The Fallacy of Mastery Both buyers and sellers know the same things. They buy and sell stocks based on what they think. People don't believe that short-term stock picking is good luck because it's done by smart people. Loss aversion Loss aversion makes us ignore even gambling that has a good chance of going our way. A loss has twice the weight of an equal gain. Dedication bias Commitment is linked to good traits like consistency and intelligence. In this way, we don't break our promises. Investment decisions must be talked about in public. The more you talk, the more you can persuade yourself of something. Leaning toward recent events We tend to give too much weight to things that have happened recently. Because of this effect, the market tends to move in a certain direction most of the time. When things are going well, we think they will only get better. We think that when things go wrong, they will only get worse. Effect of ownership When we own something, we value it more. This is one way we can explain why we did what we did. Before we buy a stock, we look at it critically and try to find any risks. After making a purchase, we think about the good things about it to justify our choice. This is called confirmation bias We choose what to believe based on what we already know. What doesn't fit with our ideas is either ignored or called a lie. Thinking based on odds We often think based on how we feel. But in our lives, everything is a game of chances. Using reasoning to think about the most likely outcomes will help us make better decisions. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
24
TEST: Is Trading for you? Trading is NOT for everyone. Not because they can’t do it, or because it’s hard – but rather… Trading is something that only a few will feel passionate to do for the rest of their lives… I say this because there are many things that I could do well in, make a huge income from, but I unfortunately don’t enjoy. For example, Poker, horse-racing and sports bets, real-estate, portfolio manager, business consultant… Don’t feel ashamed nor feel something is wrong with you. Instead, embrace your personality and work towards what is your OWN calling and passion. In this TradingView article, well find out if trading is for you… Out of 15 things I’ll mention today, write down YES or NO for each one… Let’s go… YES or NO? Are you a good decision maker? Are you proud to be called a financial trader? Do you enjoy looking at charts and indicators? Can you handle a bunch of losing trades in a row? Do you have the will-power to trade every week? Do you enjoy reading fundamentals with markets? Can you handle losses on a weekly / monthly basis? Do you enjoy learning more about local and global markets? Is it in your personality to deal with short term market moves? Do you have the ability to NOT listen to other people and the news? Do you have the patience to wait for the market to hit your trading levels? Can you follow strict criteria without steering away from your proven strategy? Do you enjoy looking up statistics and probabilities with portfolio management? Are you able to deposit a portion of your savings into your portfolio each month? Do you have the discipline to follow and improve one trading strategy in your life? If you counted less than 10, the big question is… Do you think you can train and educate yourself to fix those items and turn them into yes’s?
JSE:J200Education
by Timonrosso
Why are only 10% of traders successful?Why are only 10% of traders successful? The popularity of exchange trading is growing rapidly today, but experience shows that only 10% of those who come to trade end up making a profit. Barrier N°1 Laziness and unwillingness to learn. Frankly, most people who want to profit from stock trading do not want to learn this. They feel sorry for the time to master the base, to practice. Having earned a couple of times on a demo account, they immediately go to trade for real money. And for this category of traders, failures are predetermined by their own attitude to the trading process. Barrier N°2 Greed and haste. "Exchange trading will make me a millionaire in just a week" - completely wrong expectations. Instead of trades with a profitability of 3-5% and a success rate of 70%, many traders are interested in trades with a profitability of 70% and a success rate of 3-5%. There is nothing surprising in the fact that such transactions do not end well. At the same time, +10% per month will increase capital very quickly if you trade systematically and do not chase fast super-profits, which always turn into losses. Barrier N°3 Mismanagement of finances. Even in the absence of a large risk of each particular trade, there is a danger of losing the profits of many previous trades by making one trade for too much. Equal lots that do not exceed 1% of the deposit are a guarantee of security. Barrier N°4 Too complicated strategy. A simple and transparent strategy is better than a complex one. It is worth striving for a yield of 60-70%, this is quite enough to consistently make a profit. The search for a "super strategy" with a 90% return is usually unsuccessful, and overly complex systems do not work very well. Barrier N°5 Wrongly organized trade. "Professional burnout" and the failures associated with it often haunt those traders who give a lot of time to work. It is advised to trade no more than 5 hours a day and conclude no more than 1-2 transactions. This will save energy and a positive attitude. Trading without drawdowns and with a stable income - exactly what you should strive for. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
28