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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
Top 15 mistakes and solutions in trading TOP 15 Trader's Mistakes 1 - Lack of knowledge of market operation, technical and fundamental analysis, mass psychology and market cycles In the boom period, when a large number of new participants enter the market, many people believe themselves to be the "god of trading" and the "master of the markets." Beginners are satisfied with a 10-20% profit during the expansion phase, whereas quotes for liquid cryptocurrencies show a gain of 30/50/150%. Everything is contrary to the logic of the majority, which is how markets function. Sadly or luckily, the majority of individuals make common errors and are unable, due to a lack of understanding, to differentiate the fine line when an uptrend is replaced by a downturn and the distribution phase is replaced by a prolonged decline. At the moment of trend reversal, a psychological trap and a sequence of catastrophic events are established for the majority of participants, and a number of concomitant circumstances and lack of experience make it impossible to see the situation objectively. When the market is at its "bottom," the majority loses faith in growth: some sell out and abandon the market, while others wait even lower, do not purchase, and begin shopping only when everything has increased by hundreds of percent. Solution Study theory. Dow Jones theory, the fundamentals of technical and fundamental analysis, and any information regarding market cycles will be of great use. Examining the graph using large timescales, such as days, weeks, and months. You may find a wealth of material about the fundamentals of trading in the public domain or in the trading part of our website. 2 - Covetousness resembles a psychological trap Trading greed presents itself in numerous ways. Many are attracted to the cryptocurrency market by the idea of quick money, but the majority's problem is a lack of understanding of the mechanisms that move the market and how it functions. In order to arouse greed, pampas are constructed with a single "stick to the sky." Everyone sees a growth of 1000%, and as a result, earnings of 20/40/50 and even 200% no longer appear so promising, people do not sell, they are waiting for more, and the price falls into the red. Purchasing a full deposit's worth of cryptocurrencies in a single transaction is also greedy. The typical justification for such a "tactic" is that 10% of the overall deposit is greater than 10% of the portion of the deposit. Yet, when the price declines, the trader incurs losses and cannot cut the average entry price at lower values. Another example is missed opportunity syndrome, or FOMO. The price of the item has climbed by an inadequate amount over the course of one or more candles. Seeing this process, a novice decides to purchase the asset because he believes the price will continue to rise, resulting in losses. Many make the mistake of wanting to gain a lot of money quickly, but this is impossible. Fear and greed are particularly harmful emotions for traders. Solution The market requires a sensible strategy. Greed stems from inexperience and the fear of being late. Refrain from making decisions based on emotions and haste. It is essential to recognize that chances arise and disappear regularly on the market. Before initiating a trade, you should assess and justify your motives for doing so. 3 - Trading in emotional instability and excitement Any emotion in trading is detrimental. The decision to enter or exit a transaction must be calculated beforehand, devoid of emotion and haste. Emotions make it difficult to appraise the situation accurately, and you run the danger of making a mistake that may result in losses. Yet, since emotions are innate, it is impossible to eradicate them entirely; however, they can be managed. If emotions prevail, it is time to close the trading terminal and go on to other tasks. If you wake up at night to check bitcoin prices or are unable to fall asleep, this indicates that you have already made key errors in your risk management system, or that you do not have one. And this requires immediate action and, as much as possible, a "cool" head. Solution Take a break from the trading terminal, spend time with loved ones, or go for a stroll; you need emotional relief and rest from time to time. Sports are effective stress reducers. If you have already reached the point of insomnia and emotional breakdowns, you must conduct a thorough analysis of your risk management strategy and take sometimes difficult measures. If you have executed a number of unproductive transactions or one with an insufficient loss and you have the impression of "winning back," close the trading terminal immediately and do not trade on this day. Do not treat trading as a game of chance; in this emotional condition, you have no chance of success. 4 - leveraged trading Margin instruments can be effective in the hands of a competent trader, though not always and only under certain conditions. This is simply an unmanageable machine for liquidating a deposit in the hands of a novice. Futures and margin are verboten for rookie traders, since you face the risk of not having time to develop experience, but losing your deposit instantly. The average daily volatility of liquid instruments in a sideways movement can reach 3 to 10%, which indicates that squeezes may exceed adequacy when utilizing the 10th leverage - movements by 30 to 100% - on low-liquid pairs. When utilizing such leverage, setting a stop-loss is already problematic, as a stop-loss that is too far away would result in enormous losses in the event that it is triggered, and in nine out of ten situations it will be eliminated by an acceptable percentage. In addition, you will pay a commission for financing, taking into account leverage and transaction commissions. Exchanges will gladly offer you with as much leverage as you like, but this is no longer trading; with this strategy, you have a greater chance of winning money at a casino. Solution Study the fundamentals of trading, master numerous techniques, develop your own trading strategy, and gain real-world trading experience on the spot market by physically purchasing and selling various assets. You will eventually comprehend how the market operates. Under certain circumstances, success on the spot market can be enhanced with margin. 5 - Uselessness of stops Stops in trading are a substantial issue; stop-loss orders are covered in a different article. Stop-loss orders are frequently used irrationally or ignored by novice traders. Traders can be roughly divided into two groups: those who always use stops and those who prefer to operate without them. However, these are extremes. A stop positioned too closely is liable to be obliterated, while the absence of a stop under certain conditions can result in enormous losses. It is irrational to use stops during the accumulation phase because, in about eight out of ten instances, stops are eliminated precisely at those levels when there is a substantial accumulation of them, following which the price reverses and moves in the opposite direction. And when a significant upswing is established after a period of accumulation, a knockout almost always comes; it would be a shame to watch the price rise without participating. Yet there is a tight line here; you must be certain for a large percentage that this is the accumulation period, and you need also have a plan for price averaging, i.e. fiat in reserve. It is irrational to work in the distribution phase without stopping, just as it is crazy to labor in the accumulation phase with a pause. This is significant because many people lose in these situations due to lack of expertise. Eventually, the distribution is finished and a decline occurs, frequently abruptly and by a substantial percentage. Stopping dramatically minimizes the loss. If you have already opened a position and the price moves significantly in your favor, it becomes sense to place a stop-loss to safeguard profits so that if the price reverses, you will still make a profit and not a loss. While dealing with margin instruments, stops are required! Solution If you have no trading experience, we recommend that you constantly utilize stops until you understand how they operate. If the fundamentals are understood, they should be applied sensibly to the circumstance. Similarly, if you were stopped out by a stop, you do not need to re-enter the trade, pause trading, identify what went wrong, and then determine the next entry point. 6 - Non-fixing losses incurred when the price moves against you but you do not close your position If a trader becomes an investor owing to circumstances rather than his own volition, he is a poor trader. The "HODL strategy" is an explanation for a trader's insolvency and their own faults. Long-term asset freezing is the worst thing that can happen to a trader - "I'll wait out the crypto winter and still sell for a profit" is not a trader's behavior model. It does not matter to a trader what the current trend is; he must have effective strategies for any scenario. Waiting out losses is a waste of resources since there is volatility at every price level, and volatility is an opportunity to make money. Trading on financial markets necessitates the presence of lost deals; it's just the nature of the business. No trader has 100 percent profitable trades, and this is typical. Profitable trades must cover bad trades, and losses must be contained. If you are unwilling to recover losses when the price moves against you, you lose control of the situation and become a victim of circumstances. Solution Before entering a trade, you should have a contingency plan in place in the event that the price moves against you. In certain circumstances, this may involve deliberate averaging, while in others, it may include fixing losses. Recognize that losing transactions are a normal part of the process. 7 - Transaction concluded too quickly We touched on this topic briefly at the beginning of the article. The scenario is typical: a trader enters a position and the price begins to move in his favor. The trader takes profit at the predetermined level, but the price continues to rise. In itoge, fixed profit represents a modest proportion of the whole movement. The circumstance is representative of a powerful trend. It would be a stretch to call this a mistake because the profit is fixed; however, in the case of a trading strategy with a limited number of assets, it can take a very long time to wait for the price to roll back below the exit point, in some cases an entire year, and in other instances, the quote may not return to its previous levels. Solution 8 - Depending on your trading approach, there are a variety of solutions, including: The gradual sale of a previously acquired asset at varying prices. Selling of a portion of the asset to remove the invested funds from the transaction and earn a little return, reserving the remaining position (conditionally free asset) for longer-term objectives. Profit protection with a stop-loss order and its progressive approach to the quote, but not too close so as not to be eliminated prematurely. Deviation from the strategy or vice versa - lack of action flexibility Confusion, agitation, and swinging between extremes are certain indicators of a lack of a trading strategy or an indication that it was constructed wrong. Planned action eliminates the possibility of unanticipated situations and makes risks manageable. The plan must account for both potential profits and losses. Frequent strategy adjustments during the trading process are typically detrimental. The contrary is also true: a trading strategy must be adaptable to the current market environment. For instance, you are in a position and the price is moving in your favor, everything is going as planned, you are almost at your goals, but then you learn that the project whose coin you are trading was hacked. In such a circumstance, you will have very little time to make a choice. In such a circumstance, blind adherence to the strategy will definitely result in losses. Solution Your activities must be automated, and you must have a well-thought-out trading plan that takes into consideration all possible eventualities. In the event of a force majeure, it is vital to make swift decisions and build market-specific flexibility. 9 - "Finding knives." Investing a major portion of the deposit in the purchase of an asset amid a severe price decline is a bad choice. It is known as "catching knives" in business parlance. No one can accurately predict where the price will stop fluctuating and begin to consolidate. Before making a decision based on a thorough analysis of the situation, it is vital to comprehend the core cause of such a decline. You cannot make purchases after the upcoming autumn without comprehending the market's overall condition. After distribution at the peaks, the value of altcoins can decrease by 70 to 99 percent. To clarify, an asset in a bear market can lose 50% in a day, 50% in price, another 50% in a day, and another 50% in a day dozens of times before reaching its ultimate bottom. In addition, it is not a certainty that he would recover after this, particularly if it is an illiquid asset, of which there are thousands. Solution If you continue to employ this technique in your trading strategy, you should limit your exposure by allocating a smaller portion of your entire deposit and bear in mind that this "bottom" may not be the last one. With this strategy, it is crucial to master the fundamentals of technical analysis and how to construct horizontal levels and trend lines. 10 - Absence of system, algorithm, and subjective opinion You must know beforehand where you are buying and selling, what portion of your deposit you are working on, the permissible losses, and the rationale for these activities at the same levels. All of this is a trading strategy. In acts, there should be no spontaneity, excessive self-assurance, or hesitancy. You should not take the subjective opinion of another as the truth. The more confident words and assertions sound, the more confidence they inspire on a psychological level, directly into the subconscious, and you begin to feel that these are your own thoughts. The bitcoin market is rife with numerous types of manipulation; therefore, every information must be double-checked. The situation is compounded by the fact that newcomers are frequently directed by their own expectations and desires rather than by objective data. For instance, a break in a trend or a breakdown of a horizontal level is objective evidence, whereas an item that is overbought or oversold is merely an opinion. Solution Incorporating risk management and financial management into your own trading strategy. Use objective knowledge, not the opinion of others, for analysis. If you consume a great deal of information regarding the crypto sector, you need carefully select your sources and listen to opposing viewpoints on the situation. 11 - Ineffective financial management Money management should be the default inclusion in your trading plan. This entails splitting both the deposit and the assigned amount to join the asset, as for different trading techniques. It is not suggested to purchase the entire anticipated quantity of cryptocurrencies in a single transaction, since it will be unable to equalize the entry price in the event of a price decline. Beginners frequently make this error while purchasing something with their entire deposit. In addition, money management covers the distribution of trading and storage locations for assets. We do not encourage trading on a single exchange; use many exchanges. If your bitcoin is sitting idle on an exchange, withdraw it to a cold wallet or hardware wallet. Solution 12 - Money management must be an important component of your trading plan Too slothful to retain records No professional trader would conduct business without keeping transactional statistics and records. It is impossible to comprehend one's own efficiency without this. Some exchanges provide account analytics at a high level, while others do not; however, all statistics are maintained for a specified time frame. After a while, you will forget the prices at which you acquired your own investment portfolio. It will be unusual to sell an item without knowing if you are making a profit or a loss. A trading journal will educate you more than a dozen trading books combined. Record the purchase price, date, exchange, reasons for entry, feelings during the transaction, and similar information. After a period of time, you will be able to study and comprehend the causes of past errors and successful transactions. Solution 13 - Notepad, pen, and a methodical approach. Overestimated dangers Regardless of the size of the deposit, restrict the allocated funds for high-risk strategies to a specific amount or percentage. In the event of a loss, continue trading with the current balance without replenishing it. If a profit is made and the balance increases, transfer a portion of the money to less risky methods or withdraw them to fiat. Elevated risks include x5+ leverage, starting a trade with the full deposit or a substantial portion, entering an asset with a single order without averaging, and trading illiquid assets. Solution 14 - A methodical approach to risk management. Do everything and you will fail There are various methods for constructing working portfolios. Someone trades many specific altcoins, someone trades simply bitcoin, and someone trades circumstances without reference to particular assets; however, success is the most important factor. The enormous number of active cryptocurrencies is one of the primary obstacles for newbies. To handle the situation, it is required to comprehend a variety of project-related aspects, including fundamental analysis, technical analysis, order book status, transaction history, project-related news, price, etc. It is physically impossible to control more than five assets simultaneously without the assistance of a team of analysts. By working with many cryptocurrencies, you run the danger of losing focus and overlooking crucial nuances that will effect the outcome. Solution Initially, do not trade more than three assets; if you can keep track of a larger number, you may gradually increase the quantity. 15 - Inability to withdraw from the market and await suitable conditions. Staying out of the market is one of the most difficult aspects of trading for most novices. There are times when the wisest course of action is to monitor the market. It is not true that the more transactions there are, the greater the profit. You can conduct dozens of transactions per day and incur a loss in a month, or you can conduct two or three transactions per month and earn a profit. It is easier to work during the growth phase, and without theory and experience, it is nearly difficult to earn a profit during the flat and downturn phases. If it were possible to make money during the growing phase, the ideal course of action during the turning point would be to take a vacation or limit the trading portion of the initial deposit in order to get expertise trading with little sums. The remaining 99% of a trader's time is spent on self-development, market analysis, hunting for opportunities, and waiting for advantageous entry points into trades. Solution Utilize the time while you are out of the market to your advantage. Instead of mimicking a monkey's actions, participate in self-education: read foundational literature on trading, discover new trading tactics, and study the assets you're interested in as thoroughly as possible. In this way, at the moment when a beneficial situation occurs on the market, you will be ready for it. 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
1
Risk Less money in Drawdowns. More money in winning streaksA drawdown is a period of decline in the value of a portfolio. This is where you take a number of trades, and the losses drop the portfolio at a marginal level (if you know what you’re doing). During these times, the market is typically more volatile (jumpy) and unpredictable. And so you have a higher chance to risk money in unfavourable times. Risk less with drawdowns When your portfolio drops 6%, 8% or even 11% - This is where you’re not sure when the market will become more favourable. This is the time where you decide to risk less money per trade. You would drop the risk from 3%, 2% to 1.5% or even 1%. Then keep trading until the markets pick up and start to favour your portfolio… Once you’re out of the drawdown then… Risk more money with the winning streak During the winning streaks, the market is typically more stable and predictable, and the chances of making a profit are higher. You can then pump up the risk back to 2% or 3% (if you’re a risky biscuit). When do you do this? When your portfolio is either BACK to an all-time-high. Or when you can see the market has broken out of the sideways consolidation and volatile period. Risk management is an important aspect of successful investing, and adjusting the amount of money being invested based on market conditions is one strategy that can help investors achieve their financial goals. By risking less money during drawdowns and more money during winning streaks, you as the trader can lower your potential losses and maximize your potential gains.
JSE:J200Education
by Timonrosso
Traders balance between intellect and emotionsHow can traders create a balance between intellect and emotion? In trading, rationality and passion are two sides of the same coin. Rationality helps us make educated and reasonable trading decisions, but unbridled emotions may be harmful. How do traders strike a balance between these two factors? - Understand your emotions and their influence on your trading is the first step. For instance, if you experience panic when you lose, you may terminate the deal early than necessary. If you are excited about winning, you may hang onto a position longer than required. Understanding your emotions and their influence on your trade can enable you to exert greater control over them. - Create a trading strategy based on facts and data, not on your emotions. This will assist you in making more educated trading selections and avoiding emotional mistakes. Create a risk management compliance system that will assist you in minimizing losses and maximizing profits. - Practice yoga and meditation to enhance your emotional control. This can help you become calmer and more concentrated, which will allow you to make better trading judgments. - In conclusion, the equilibrium between intellect and emotion in trading is crucial for success. By understanding your emotions, adopting a sensible trading plan, and practicing strategies for emotion regulation, you may reach incredible harmony and balance, as well as make better educated trading judgments. Throughout the trading process, you must practice and continually evaluate your psychological condition. 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
Humble yourself or the markets willAs a trader, you must approach the market with humility and an understanding that you are at its mercy. And so you need to remember that the market, doesn't know you, doesn't care about you, and doesn't work to reward you. Let’s break that down. The Market Doesn't Know You The financial market (Mr. Market) is a complex and dynamic system that is influenced by a multitude of factors. These factors are beyond our control and are pretty much impossible to predict. As a trader, you need to remember that the market doesn't know you, isn’t out to get you and that your success or failure is not a personal reflection of your worth. The Market Doesn't Care About You It can be tempting to think that the market is out to get us and that every loss is a direct result of our own mistakes. However, the market doesn't care about us as individual. They don’t have some personal vendetta against us. Every trade is simply a result of supply and demand dynamics along with risk, reward and probabilities. We must accept that sometimes the market will work against us, no matter how skilled or experienced we are. The Market Doesn't Work to Reward You There is such high competition with trading. This environment is very high-pressured. It sometimes feels like we are in some race to make as much money as possible. However, it is important to remember that the market doesn't work to reward us. As a trader, you must be humble and understand that success in the markets takes time, patience, and you must be willing to learn from your mistakes. Also need to approach each and every trade with a level-headed and open-minded perspective. Focus on this, and you you’ll make which will help us to make better decisions and increase our chances of success.
JSE:J200Education
by Timonrosso
How to Spot the Confluence Zone | Pro Fibonacci Technique If you are struggling with the identification of accurate trading entries, you definitely should try confluence zones. Note: there are hundreds of variations of confluence elements. In this example, we will discuss trend lines and fibonnachi. ❗️To identify a confluence zone, the price must follow a trend line (it should match higher lows if the market is bullish ; it should match lower highs if the market is bearish ). Once the trend line is confirmed by at least two touches and consequent reactions, you can look for a confluence zone. 1️⃣Project a trend line and identify the next POTENTIAL touchpoint of the market with a trend line . 2️⃣Take the last impulse in the direction of the trend. Draw a fib retracement based on it (swing low to swing high in case if the market is bullish , swing high to swing low in case if the market is bearish ). 3️⃣Take the previous impulse (it must be in the same direction as the initial one). Draw a fib retracement based on it. 4️⃣Look for a match of retracement levels of the last two impulses and a projected trend line . In case if two retracement fib.levels & trend line match, you found a confluence point. 5️⃣ Apply it as a safe entry point. You will get a perfect trend following opportunity. Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
9
$QQQ Weekly Outlook 2/6/23$QQQ QQQ closed at 306.18 after a 20 point move from the 290 level this week. QQQ can pullback to 301-300 if it cant not defend 305 Monday. 300 will be the support to look for continuation to the upside. Below 300 we can pullback towards 295 293 again. Remember never to trade with a Bias. The top day traders use simple strategies. You don’t need 50 different indicators to tell you which way the market will move each day. To generate consistent profits, Keep your approach simple and PAYtiently wait for the right trade setups. Having Decision fatigue can lose large amounts of money in a short period of time. The main cause of this when Day Trading is over trading. Always look for quality over quantity because it this will always add to larger profits in the long term!
NASDAQ:QQQ
by MoneyFlow_Options_Community
$SPX Weekly Outlook 2/6/23$SPX SPX closed at 4136.49 after a big week with multiple Earnings reports, Feds, and Data. We can see some consolidation early this week between 4100 and 4150. As long as SPX can defend 4100 we can continue up through 4200 in the next 1 to 2 weeks. Below 4100 we can see a 60-70 point pullback. 4100 can present a good opportunity in both directions. Remember never to trade with a Bias. The top day traders use simple strategies. You don’t need 50 different indicators to tell you which way the market will move each day. To generate consistent profits, Keep your approach simple and PAYtiently wait for the right trade setups. Having Decision fatigue can lose large amounts of money in a short period of time. The main cause of this when Day Trading is over trading. Always look for quality over quantity because it this will always add to larger profits in the long term!
SP:SPX
by MoneyFlow_Options_Community
7 Things to Consider Before Trading Full-TimeFor many traders, the dream of full-time trading represents the ultimate freedom. Full-time traders have the ability to choose their own hours, trade from anywhere, and select which opportunities to pursue. However, not all traders are ready to make the leap to full-time trading. Just as too much freedom can harm some economies, not everyone is prepared for the challenges of full-time trading. So, how do you know if you're ready to trade full-time? Here are some signs to consider: 1. You have sufficient capital: Trading full-time means quitting your current job and relying on your trading income as your primary source of income. Be realistic about the fact that you may not make significant profits in your first few months. 2. You have tried and tested various methods and strategies: It's important to have a strategy that has proven profitable for you, as well as other strategies that are suitable for different market conditions. You never know when and for how long market trends may shift. 3. You have spent a significant amount of time trading live accounts: Trading live accounts bring about psychological challenges that you may not encounter when trading demo accounts. It's important to have a good understanding of your trading strengths and weaknesses and to be able to stick to a trading plan before committing to full-time trading. 4. Trading is your passion: If trading is what motivates you to get up and start each day, it may be a sign that you're ready to trade full-time. 5. You have a solid risk management plan: Full-time trading requires a steady stream of income, so it's crucial to have a risk management plan in place to protect your capital and ensure that you can continue trading in the long term. This includes setting stop-loss orders, properly sizing your trades, and having a plan for handling losing trades. 6. You have a support system: Trading full-time can be isolating, so it's important to have a network of friends, family, or other traders to talk to and share ideas with. It can also be helpful to have someone who can hold you accountable for your trading plan and help you stay disciplined. 7. You have a plan for your non-trading time: Full-time traders often spend a lot of time in front of their computers, so it's important to have a plan for how you'll spend your time outside of trading. This could include exercise, hobbies, and social activities to help maintain a healthy work-life balance. Making the decision to become a full-time trader shouldn't be taken lightly. It requires a significant commitment of time and capital, and it may not be right for everyone. By considering these factors and being honest with yourself about your readiness, you can make an informed decision about whether full-time trading is the right path for you. We hope you found this post valuable and informative.
Education
by ROBINHOODLAB
1
10 things you need to know about Cryptocurrency1. Introduction: Cryptocurrency is a relatively new concept that has gained a lot of attention in recent years. But what exactly is it, and how did it become so popular? Definition of cryptocurrency: At its most basic, cryptocurrency is a digital or virtual currency that uses cryptography for security. Cryptocurrency is decentralized, meaning it is not controlled by any government or financial institution. This decentralization makes it possible for users to make secure, direct transactions with each other without the need for intermediaries. A brief overview of the popularity and growth of cryptocurrency: The first and most well-known cryptocurrency is Bitcoin, which was created in 2009. Since then, the popularity and value of cryptocurrency have exploded. As of 2023, there are over 21,844 different cryptocurrencies in existence with a total market value of over $859 Billion. The increasing adoption of cryptocurrency by merchants, investors, and consumers has led to its mainstream acceptance and the establishment of a thriving cryptocurrency market. However, despite its growing popularity and mainstream acceptance, cryptocurrency is still a controversial and misunderstood topic. In this blog, we will explore the basics of cryptocurrency, how it works, and its potential future impact. 2. Cryptocurrency is a digital currency: Cryptocurrency is a digital or virtual currency that uses cryptography for security. This means that it exists purely in electronic form and is not tied to any physical asset or currency. Instead of being printed or minted like traditional fiat currency, cryptocurrency is created through a process called mining. How cryptocurrency is created and stored: Mining is the process of verifying and adding transactions to the blockchain, a public ledger of all cryptocurrency transactions. Miners use powerful computers to solve complex mathematical problems and are rewarded with a certain amount of cryptocurrency for their efforts. The process of mining helps to secure the blockchain and prevent fraud. Once it is created, cryptocurrency is stored in a digital wallet, which is a software program that stores the user's public and private keys. These keys are used to access and make transactions with the user's cryptocurrency. Digital wallets can be stored on a user's computer or in the cloud, and they can be accessed from anywhere with an internet connection. The differences between cryptocurrency and traditional fiat currency: There are several key differences between cryptocurrency and traditional fiat currency, such as the U.S. dollar or the euro. One of the main differences is that cryptocurrency is decentralized and not controlled by any government or financial institution. This means that it is not subject to the same regulations and is not backed by any physical assets. Another difference is that cryptocurrency is not physical. It exists purely in digital form and is stored in digital wallets. In contrast, traditional fiat currency is physical and can be stored in a physical wallet or bank account. Finally, cryptocurrency is subject to high levels of volatility, meaning its value can fluctuate significantly over short periods of time. In contrast, the value of traditional fiat currency is generally more stable. Overall, while cryptocurrency shares some similarities with traditional fiat currency, it is a unique and distinct type of currency with its own set of characteristics and features. 3. Cryptocurrency uses blockchain technology: One of the key technologies that make cryptocurrency possible is blockchain. Blockchain is a decentralized, digital ledger that records transactions on multiple computers, making it difficult for any single transaction to be altered or tampered with. Each block in the chain contains a record of multiple transactions, and once a block is added to the chain, the transactions it contains become part of the permanent record. Definition of blockchain: At its most basic, a blockchain is a series of blocks that are linked together using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data. This structure makes it almost impossible to alter the data contained in any single block without altering all of the blocks that come after it, making the blockchain a secure and transparent record of all transactions. How blockchain works to secure and record cryptocurrency transactions: In the context of cryptocurrency, the blockchain is used to secure and record transactions. When a user wants to make a transaction with their cryptocurrency, they create a digital "message" that contains the details of the transaction, including the amount of cryptocurrency being sent and the recipient's digital wallet address. The message is then broadcast to the network of miners, who verify the transaction and add it to the blockchain. Once a transaction has been added to the blockchain, it becomes part of the permanent record and cannot be altered. This helps to prevent fraud and ensure that all transactions are transparent and secure. The role of miners in verifying and adding transactions to the blockchain: Miners play a crucial role in the process of adding transactions to the blockchain. They use powerful computers to solve complex mathematical problems and are responsible for verifying and adding transactions to the blockchain. When a miner successfully adds a block to the blockchain, they are rewarded with a certain amount of cryptocurrency. The process of mining helps to secure the blockchain and prevent fraud. It also ensures that there is no single point of failure in the system, as the blockchain is decentralized and spread across multiple computers. Overall, the role of miners in the cryptocurrency ecosystem is essential to maintaining the security and integrity of the blockchain. 4. Cryptocurrency is decentralized: One of the key features of cryptocurrency is that it is decentralized, meaning it is not controlled by any single authority or entity. This is in contrast to traditional financial systems, which are centralized and controlled by governments or financial institutions. What it means for a system to be decentralized: A decentralized system is one in which there is no central authority or point of control. Instead, the system is distributed and controlled by a network of users. This can be contrasted with a centralized system, which is controlled by a single authority or organization. The benefits and drawbacks of decentralization for cryptocurrency: There are both benefits and drawbacks to decentralization in the context of cryptocurrency. One of the main benefits is that it makes the system more secure and resistant to censorship. Because there is no central point of control, it is much more difficult for an attacker to compromise the system or for transactions to be blocked or censored. Another benefit of decentralization is that it can make the system more transparent and accountable. Because all transactions are recorded on the blockchain, they are publicly visible and cannot be altered. This can help to build trust and confidence in the system. However, decentralization also has its drawbacks. One of the main drawbacks is that it can make the system more complex and harder to understand. It can also make it more difficult to reach a consensus on important decisions or updates to the system. Overall, the decentralization of cryptocurrency is both a strength and a weakness. While it offers many benefits, it also comes with its own set of challenges and complexities. 5. Cryptocurrency can offer anonymity: One of the features of cryptocurrency that has attracted both praise and criticism is its potential for anonymity. While traditional financial transactions are linked to the identity of the user, cryptocurrency transactions can be anonymous, making it difficult to trace the identity of the sender and recipient. How cryptocurrency transactions can be anonymous: There are several ways in which cryptocurrency transactions can be made anonymously. One of the most common is the use of pseudonymous addresses. These are unique, randomly generated addresses that are used to send and receive cryptocurrency. Because they are not linked to any specific identity, it is difficult to trace the identity of the user associated with a particular address. Another way to increase anonymity is through the use of a virtual private network ( VPN ) or a privacy-focused browser like Tor. These tools can help to mask the user's IP address and make it more difficult to trace their online activity. The potential for cryptocurrency to be used for illegal activities: Because of its potential for anonymity, cryptocurrency has been associated with illegal activities, such as money laundering and the sale of illegal goods. While it is true that cryptocurrency can be used for these purposes, it is important to note that it is also possible to trace cryptocurrency transactions and identify the users involved. Law enforcement agencies have successfully used blockchain analysis to track and prosecute individuals involved in illegal activities using cryptocurrency. Overall, while cryptocurrency can offer a certain degree of anonymity, it is not completely untraceable. It is important for users to be aware of the risks and potential legal consequences of using cryptocurrency for illegal activities. 6. Cryptocurrency is subject to volatility: One of the key characteristics of cryptocurrency is that it is subject to high levels of volatility, meaning its value can fluctuate significantly over short periods of time. This volatility is due to a variety of factors, including market demand, investor sentiment, and regulatory developments. How the value of cryptocurrency can fluctuate: The value of cryptocurrency is determined by supply and demand in the market. When there is high demand for a particular cryptocurrency, its value will generally increase. Conversely, when demand is low, the value will generally decrease. In addition to market demand, the value of cryptocurrency can be influenced by investor sentiment and speculation. When investors are optimistic about the future of a particular cryptocurrency, they may be more likely to buy it, which can drive up its value. On the other hand, when investors are bearish or uncertain, they may be more likely to sell, which can drive down the value. Finally, regulatory developments can also impact the value of cryptocurrency. For example, if a government announces new regulations or restrictions on cryptocurrency, it could affect investor sentiment and demand for the asset. The potential risks and rewards of investing in cryptocurrency: The high volatility of cryptocurrency can be both a risk and a reward for investors. On the one hand, the potential for significant price movements can make it a risky investment. On the other hand, the potential for significant price appreciation can also make it a potentially lucrative investment. It is important for investors to be aware of the risks and to carefully consider their investment strategies when it comes to cryptocurrency. It is also important to diversify investments and not invest more than you can afford to lose. 7. Cryptocurrency is not yet widely accepted: While cryptocurrency has gained a significant amount of mainstream attention in recent years, it is still not widely accepted by merchants and consumers. While some merchants have begun to accept cryptocurrency as a form of payment, the majority of transactions still take place using traditional fiat currency. The current level of adoption and acceptance of cryptocurrency by merchants and consumers: The adoption and acceptance of cryptocurrency by merchants and consumers vary depending on the location and the specific cryptocurrency in question. In some countries, cryptocurrency is more widely accepted than in others. For example, in countries with unstable or unreliable fiat currencies, cryptocurrency may be seen as a more stable and secure alternative. Overall, while the use of cryptocurrency is growing, it is still a relatively small part of the global economy. According to a 2021 survey, only around 5% of the global population has used cryptocurrency, and only a small fraction of merchants accept it as a form of payment. The potential for wider acceptance in the future: Despite the currently limited adoption of cryptocurrency, many experts believe that it has the potential to become more widely accepted in the future. As the technology continues to mature and more people become familiar with it, it is possible that cryptocurrency could become a more mainstream form of payment. In addition, the increasing use of cryptocurrency for cross-border payments and the potential for it to be used as a store of value could also drive wider adoption. As more merchants and consumers become aware of the benefits of cryptocurrency, it is likely that its use will continue to grow. 8. Cryptocurrency is not yet regulated: One of the challenges facing the cryptocurrency industry is the lack of clear and consistent regulation. Because cryptocurrency is a relatively new and decentralized asset class, there is currently a patchwork of regulations across different countries and jurisdictions. The current state of regulation around cryptocurrency: The current state of regulation around cryptocurrency varies widely depending on the location. In some countries, cryptocurrency is heavily regulated and treated like any other financial asset, while in others it is largely unregulated. In the United States, for example, the regulation of cryptocurrency is split between various federal agencies. The Internal Revenue Service ( IRS ) treats cryptocurrency as property for tax purposes, while the Commodity Futures Trading Commission (CFTC) regulates certain cryptocurrency derivatives. The Securities and Exchange Commission (SEC) also has authority over certain cryptocurrency offerings that are considered securities. In contrast, some countries have taken a more hands-off approach to cryptocurrency regulation. For example, Switzerland has a reputation for being a cryptocurrency-friendly jurisdiction, with relatively light regulation compared to other countries. The potential for future regulation: Despite the current patchwork of regulations, it is likely that cryptocurrency regulation will become more consistent and harmonized in the future. As the cryptocurrency industry continues to grow and mature, there is increasing pressure on governments and regulatory bodies to provide clarity and guidance on how to handle cryptocurrency. In particular, there is a growing consensus that there is a need for better consumer protection and regulatory oversight to ensure that the cryptocurrency market is fair and transparent. It is possible that we will see more countries adopt cryptocurrency regulations that are similar to those that currently exist for traditional financial assets. However, it is also important to note that the decentralized nature of cryptocurrency means that it is difficult to regulate in the same way as traditional assets. There is a risk that too much regulation could stifle innovation and limit the potential of cryptocurrency. Overall, the future of cryptocurrency regulation is uncertain and it is likely that it will continue to evolve as the industry matures. It is important for governments, regulatory bodies, and industry participants to work together to find a balance between protecting consumers and promoting innovation. 9. There are many different types of cryptocurrency: While Bitcoin is the most well-known and widely used cryptocurrency, it is far from the only one. As of 2023, there are over 21,844 different cryptocurrencies in existence with a total market value of over $859 Billion. These cryptocurrencies differ in a number of ways, including their underlying technology, use cases, and market value. The most well-known and widely used cryptocurrencies: Some of the most well-known and widely used cryptocurrencies include Bitcoin, Ethereum, and Litecoin. Bitcoin: Bitcoin was the first and is still the most well-known cryptocurrency. It was created in 2009 and has the largest market capitalization of any cryptocurrency. Bitcoin is decentralized and uses a proof-of-work consensus mechanism to secure the blockchain and validate transactions. Ethereum: Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud, or third-party interference. These smart contracts are powered by Ethereum's native cryptocurrency, Ether. Litecoin: Litecoin is a cryptocurrency that was created as a lighter and faster alternative to Bitcoin. It uses a different proof-of-work algorithm and has a faster block time, making it more efficient for small transactions. The differences between the various types of cryptocurrency: While all cryptocurrencies use blockchain technology and share some similarities, there are also significant differences between the various types. Some cryptocurrencies, like Bitcoin and Litecoin, are primarily used for peer-to-peer transactions and are designed to be a store of value. Others, like Ethereum, are designed to support smart contracts and decentralized applications. Cryptocurrencies also differ in terms of their underlying technology, such as the proof-of-work algorithm they use, their block times, and their block sizes. These technical differences can impact the performance and scalability of the cryptocurrency. Overall, there are many different types of cryptocurrency, each with its own unique features and characteristics. It is important for users to understand the differences between these cryptocurrencies in order to make informed decisions about which ones to use or invest in. 10. Conclusion: Cryptocurrency is a digital or virtual currency that uses cryptography for security. It is created through a process called mining, in which powerful computers solve complex mathematical problems to verify and add transactions to the blockchain. Cryptocurrency is stored in a digital wallet and can be used to make transactions online. One of the key features of cryptocurrency is that it is decentralized, meaning it is not controlled by any single authority or entity. This decentralization can make it more secure and resistant to censorship, but it also makes it more complex and harder to understand. Cryptocurrency can offer anonymity, as transactions can be made using pseudonymous addresses that are not linked to any specific identity. However, it is also possible to trace cryptocurrency transactions, and the use of cryptocurrency for illegal activities carries legal risks. Cryptocurrency is subject to high levels of volatility, meaning its value can fluctuate significantly over short periods of time. This volatility can be both a risk and a reward for investors, and it is important for investors to be aware of the risks and to carefully consider their investment strategies. Cryptocurrency is not yet widely accepted by merchants and consumers, and the regulation of cryptocurrency varies widely depending on the location. However, it is likely that cryptocurrency will become more widely accepted and regulated in the future. There are many different types of cryptocurrency, each with its own unique features and characteristics. It is important for users to understand the differences between these cryptocurrencies in order to make informed decisions about which ones to use or invest in. The future potential of cryptocurrency: Despite the challenges and uncertainties facing the cryptocurrency industry, many experts believe that it has a bright future. As technology continues to mature and more people become familiar with it, it is possible that cryptocurrency will become a more mainstream form of payment. In addition, the increasing use of cryptocurrency for cross-border payments and the potential for it to be used as a store of value could also drive wider adoption. As more merchants and consumers become aware of the benefits of cryptocurrency, it is likely that its use will continue to grow. Some experts also predict that cryptocurrency could have significant implications for the way in which financial systems operate, potentially disrupting traditional financial institutions and changing the way we think about money. Overall, while there are many challenges and uncertainties surrounding cryptocurrency, it is clear that it has the potential to transform the way we think about and use money. It will be interesting to see how the industry evolves in the coming years and what the future holds for cryptocurrency. We hope you found this post valuable and informative.
Education
by ROBINHOODLAB
2
7 main mistakes of new traders List of deadly crimes committed by new traders So far, you have created a new account, purchased your first Bitcoin. You are now prepared to become a trader in cryptocurrencies. You frequently trade on an exchange where the price of the first coin you purchase increases by 10% before you sell it. Self-satisfied that you did it. Using the ingenious "Buy Low, Sell High" method, you are advancing: a Twitter account. There is already a crowd of new employees awaiting your calls. It was going so well until you committed one of the following rookie errors. 1 - Waiting Pump and Dump Observing a green candle that rockets up into the sky is one of the most beautiful sights a trader can see - if they purchased at the bottom. However, without a horse to race, envy might be overwhelming. You will experience lapsed profit syndrome and attempt to wager your entire bankroll. Occasionally it will pay off, but more often than not it will place you in an awkward situation. A quick price swing in cryptocurrency is not always indicative of a pump-and-dump scam. Positive news or a major influencer's promotion might also result in exponential growth. Before purchasing a coin, it is essential to comprehend why its value is soaring. If not, you risk failure. Many inexperienced cryptocurrency traders try with pump-and-dump organizations that guarantee rapid gains with minimal effort. Failure once or twice will be sufficient to learn the lesson and pursue more intelligent trading tactics. 2 - Buying in illiquid markets For your coin to continue increasing, someone else must want to purchase it. The issue with numerous developing altcoins and numerous tiny exchanges is that they have a dearth of orders. You can be certain that Sprouts (SPRTS) is the future of crypto, but if a sufficient number of traders disagree, you risk focusing on a currency that no one wants to purchase, or at least not at a price that you are willing to pay. There is nothing wrong with long-term investment in a coin whose fundamentals you respect. However, these "undiscovered diamonds" are prone to a lack of liquidity in the short run. Traders who have grown weary of waiting for a coin's price to rise may be compelled to sell drastically below their desired price. 3 - Set the incorrect price Raise your hand If you've ever missed a zero on a trade setup and your coins surged, set your sell order 10 times lower. This is easy to accomplish when dealing with altcoins that are priced in fractions of Bitcoin: you think you're making an order to sell 0.0000457 BTC, but you've actually placed an order to sell 0.00000457 BTC. The majority of exchanges will rise to the maximum rate. However, services like Etherdelta are not as user-friendly as others. Always double-check the buy or sell price before pressing the execute button. 4 - Transferring the incorrect coin to an exchange's wallet or use wrong chain If you sent Bitcoin Cash to a Bitcoin wallet by accident, do not expect the exchange to bail you out. However, the larger exchanges are unlikely to be of assistance. You must exercise caution before sending funds to the wallet, as errors are nearly impossible to rectify. Sending Ethereum tokens to an Ethereum exchange wallet or requesting a mining pool payout directly to an exchange wallet are other rookie errors. Avoid doing that. The greater your trading motivation, the better you will become. 5 - Revenge of trader You are unhappy because you refused to purchase a coin at the last minute, and then it flew to the moon. Or you purchased a worthless certificate - a sure loser - and it failed. Infuriated, you wager your entire fortune on the next green coin and attempt to ride this train to Profitville. In doing so, you overestimate your abilities and enter a market you have not yet explored. Where do you enter and exit the market? Why is the coin's value increasing? You are ignorant because you act based on your feelings. Revenge trading is analogous to capturing your partner in the arms of another person and then grabbing the first item you discover. Nine times out of ten, it will end in tears. The greater your ability to detach your emotions from your trade, the more successful you will become. 6 - Overactivity Too many chefs will destroy the broth, and too many traders will diminish your earnings. This is a simple trap to fall into, and every new trader does it. The day after purchasing a coin, you check to see if its value has increased by 20%. Isn't it preferable to sell and earn a profit? Not required Cut off your losses and let your winners run, as the adage goes. A basic trading approach that can deprive you of some of your greatest rewards is selling assets for the sake of profit. There is nothing more disheartening than selling a coin for a tiny profit only to discover that someone else paid 10 times as much. Additionally, excessive activity for minimal income will result in an increase in assets conserved through exchange costs. In certain ways, hyperactivity that generates tiny earnings is advantageous, but these profits will be consumed by commissions on any exchange. You comprehend the outcomes yourself. 7 - Self-confidence Intuitively, you purchase a coin and observe its value double over the next week. You repeat the procedure with a second coin and the same result occurs. You are fantastic. You are a man. You convert everything you touch into gold. You are staking your next decision on boldness, which may feel like flying to the moon. Then... one loses everything. What occurred? You are impudent, that is what. A little self-assurance is wonderful; it's what enables traders to go against the grain and make their own conclusions. Conversely, over confidence is a formula for disaster. When you disregard warning flags while feeling invincible. Eliminating these seven fatal errors does not qualify you as a professional trader; years of expertise, late hours and early mornings spent watching two monitors and creating charts are still required. Nevertheless, if you eliminate your rookie errors, you may survive long enough to become a pro. 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
5 Reasons why others trade VS why I tradeIn the last 20 years, I always love asking this one question. “Why do you want to trade?” Have you ever written down the reasons why you want to become a trader and what your true motivations are? When you answer this question, only then you’ll become more clear with the goals you wish to achieve and how to achieve them. Here’s one clichéd answer, I don’t want you to write down… “I want to make money”. This answer is lazy, impersonal and it tells you and me nothing about who you are truly, deeply and emotionally. If you think trading only teaches you one aspect of your life… I believe your eyes are still yet to be opened with the incredible possibilities that trading will bring you. And so, in this article I’m going to share a few reasons for why people want to trade. And then, I’ll share a few reasons why I trade… Here are 5 reasons why people want to trade… Reason #1: Diversification “I want to diverse my portfolio with different asset classes. This way I can produce a stream of income through long-term investing via stocks and property, short term trading with Premium MATI Trader and medium term investing through index ETFs.” Reason #2: Hobby “I have spare time and money. And what better way than to spend my time trading and making an extra income while doing something I love?” Reason #3: Monetizing my ‘down-time’ “I’ve earned the same income for the last seven years and now I want to earn an extra income during my off-hours too. For the first time in my life, trading has helped me make money while I’m watching Netflix and spending time with my wife”. Reason #4: Invest for my family and kids “Most people depend on portfolio managers and hedge funds to invest their money for their family. I’ve decided to trade the funds I have for my kids instead and take control of the growth of their inheritance through trading.” Reason #5: Keeps me sharp and well-informed “Trading might not be making me super rich yet, but I got to tell you this. It is keeping my brain sharp, well-informed and helps with my skills with decision making.” These are some of the reasons I’ve heard, which have stuck. Now I want to share with you five extra reasons why I trade… 5 Reasons why I trade! My reason #1: FREEDOM – Earn your own income when you want I want the freedom to trade and build an income stream on my own terms, times and conditions. My reason #2: Independence – Be your own boss Trading gives me the platform where I am responsible for my own trading results. This gives me full independence where I take pride with my own financial decisions. It gives me the place where I can grow my portfolio in a way that suits my personality and risk profile to a T. My reason #3: Extremely fun – New career Trading is not a job… This means, you don’t have to do it… But rather it’s an extremely productive and fun hobby to make your free time work for you. This hobby is not like sports or gym where your reward is more on the physical side. Trading is where you gain many different mental skills and bank a consistent income once you get it right. My reason #4: Mind control – Control your emotions Trading well means you have to lose at times. and when you do, you need to be able to cut out the ego and ‘baby tantrum throwing side’ away. You learn to grow up, develop a thicker skin and become a mature trader. This is one of the greatest benefits to learning to trade. It gets to the point where, after you’ve taken hundreds of trades, whether you take a loss or bank a profit, you’ll stay content. You embrace failure with open arms, because you know that it’s one step towards winning. My reason #5: Life skills – You learn risk, rewards and probabilities Once you have mastered the four elements to trading success (Markets, Methods, Money and Mind) you develop a very strong understanding of concepts like: Risk & reward management and probabilities. This won’t only apply to trading but to almost every aspect in your life. You start taking accountability of events into your life. Predictions turn into probabilities. Risk evolves into calculated acceptance. And you start to see things as they are, rather than what you want them to be… SO WHY DO YOU WANT TO TRADE?
JSE:J200Education
by Timonrosso
1
20 Checklist Items in 2023 for YOUR TradingI wish you all the health and happiness, this year has to offer. To kick you off this year on a strong note, I’ve prepared a quick 20 item checklist which you can use for your trading. Save this as a guide for 2023. Let’s go… 1. Save and deposit a portion of your money every month, into your trading account to grow it faster. 2. Cut down on social media and save 15 minutes of no distractions a day to trade. 3. Re-look and evaluate your watchlist, which fits your strategy. 4. Don’t let the news, your friends or anyone interfere with your trading signals. 5. Never extend your stop loss in a trade where you can lose more money. 6. Be more mindful and accept when market trends change. 7. Never miss a trading idea that lines up according to your strategy 8. Celebrate taking each trade that lines up according to your proven strategy. 9. Ask trading questions so you’re never left in wonder. 10. Journal and jot down every trade that comes your way to build your trading track record. 11. Screenshot and save every trading setup, to remind you on how your strategy works live. 12. Find the best time that suits your trading personality and system. 13. Stop overthinking everything, once you’re in your trade. Let it be. 14. Watch every reputable trading stream and lesson on TradingView you can, to boost your knowledge. 15. Don’t fall for scams, get-rich-quick schemes and sensationalised marketing copy or posts on social media. 16. Trust and enjoy the process, week by week. 17. Persist and persevere through your own trading time-line and don’t compare yourself to others. 18. Only take trades when your trading strategy gives you signals 19. Only do what you love and love what you do – don’t waste your time on anything else. 20. Remember to say this when you’re feeling down. “YOU CAN ONLY GET BETTER”. I trust these resolutions will help you through the year.
JSE:J200Education
by Timonrosso
53 Important Trading Acronyms and AbbreviationsHere are 53 trading acronyms and abbreviations to remember and apply to your trading. I’ve also listed them in alphabetical order to make it easier to spot! ATH - All Time High ATM – At the Money ATR – Average True Range BB – Bollinger Bands B/O - Breakout Be - Bearish BE - Break even BOS - Break of Structure Bu - Bullish CFD – Contract for Difference DD – Drawdown DMA – Direct Market Access EMA – Exponential Moving Average E/R - Earnings Report ETF – Exchange Traded Fund FA - Fundamental Analysis FOMC – Federal Open Market Committee FOK – Fill Or Kill FX – Foreign Exchange (Forex) GTC – Good ‘Til Cancelled HH - Higher High HL - Higher Low HOD - High of Day HFT – High Frequency Trading HTF - Higher Time Frame ICO – Initial Coin Offering IPO – Initial Public Offering ITM – In the Money JBTD – Just Buy the Dip LH - Lower High LL - Lower Low LOD - Low of Day L/S – Long or Short LTF - Lower Time Frame MA – Moving Average MACD – Moving Average Convergence Divergence MS - Market Structure OI – Open Interest O/N - Overnight OTC – Over the Counter OTM – Out The Money NFP - Non Farm Payrolls P&L – Profit and Loss PIP – Percentage In Point PRE - Pre Market R/R - Risk / Reward RSI – Relative Strength Index S/R - Support and Resistance SL - Stop loss TA - Technical analysis TF - Time Frame TP - Take profit YTD - Year To Date Can you think of anymore? Let me know in the comments. Trade well, live free. Timon (Financial trader since 2003)
JSE:J200Education
by Timonrosso
2