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3 paradoxes in tradingIn life, as in trading, there are many paradoxes. Some things are obvious, some are not. With experience comes awareness, and we begin to see what we have not seen before. Understanding the fundamental principles will help you move on correctly. Paradox #1: The more you need money, the longer you won't have it Everyone who came to trading needs money. Often a new trader is a person who has recently lost his job and now hopes to earn them by trading. Here they will be disappointed. After all, trading is a very risky activity, and if you still do not have knowledge and experience, the risks increase to the skies. When you are in desperate need of money, your thoughts and actions are driven by emotions, not logic. And your trade is doomed. As the saying goes, "if you can't afford to lose, then you can't afford to win." The more you strive to make a profit from trading, the more it will elude you. If you came to the market because you really need money, your brain is already set up for emotional mistakes. This is a bad attitude, leading only to big losses. Paradox #2: The more mistakes you make, the more likely you are to succeed Mistakes are good! If you don't forget to learn from them. If you lost everything and still didn't give up, you got closer to victory. This is a very important point, most of them give up here, and the best continue to work. No matter what anyone tells you, the most important thing in trading is practice. Nothing in this life teaches better than the good old practice. Real trading will immediately show all the flaws of the above trading system, flaws in your brain. This is the best teacher, but don't forget to listen to him! Make one mistake, write it down and don't repeat it again. Work it out and continue trading further. I promise that you will learn much more from this experience than from any trading seminar from the "guru" of trading. Make enough mistakes (and learn from them) and you will start making money. It's very simple. Paradox #3: The more you are convinced that you are right, the less likely it is that you have the right knowledge "One of the problems in our world is that smart people are full of doubts, and stupid people are full of self–confidence" - Charles Bukowski. Some people may say that trade is neither a science nor an economy. Unlike the physical sciences, financial markets simply have too many unknowns to have a high degree of confidence in the accuracy of forecasting future prices. To send a rocket to Mars, it is enough for us to understand the laws of physics accurately, but we cannot predict tomorrow's market prices with approximately the same degree of accuracy. Why? This is because we can rely on the laws of physics that remain unchanged, but we cannot rely on the same thoughts, moods and actions of people who essentially drive the markets. The best retail traders understand that regardless of the thoroughness of their analysis, there is still much that they do not know and cannot know about the market. Thus, when they are "lucky", they use trading methods that increase their profits, and when they are "unlucky", they use trading methods that limit their losses. In trading, as in life, confidence is nothing but an illusion. Good luck! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
16
Important educational post😎 In this tutorial, you will find out how to have a great 1:4.5 trade 🙏 Before reading this tutorial, please follow and like me 🔻 As you can see, the trend is downward Using the top and bottom seen in the 4-hour time frame, Fibonacci was drawn The range of 50 to 61 Fibonacci (golden zone) is too much for us to enter we will wait A good candle pattern is made in this range (evening star). After the completion of the third candle, we enter the SELL position 🔴We set SL above the second candle 🟢We set TP to 1.6 Fibonacci Simply and without the strange fluctuations of the lower time frames, we profit very easily ❌ Of course, dear friends or traders who have the knowledge can enter the SELL position by finding a good range in the GOLDEN ZONE before forming the EVENING STAR.
Education
by mohammadsamiei
How To Make a Trading PlanThis time we are going to touch upon one of the basic things that every aspiring trader should have: a trading plan. Many people, after reading silly articles on the internet, confuse a trading plan with the rules of your trading strategy. Well, they are two different things. If you want to know what is a trading plan for forex trading, what it should contain and how to make it, you will learn after reading this material. How to make a trading plan for forex trading? 4 obligatory documents for a trader every trader should have 4 documents, thoroughly drawn up and spelled out both electronically and in hard copy, namely: - Trading Strategy Rules - Checklist for entering a trade - Rules of Money Management - Trading Plan 1) Rules of the strategy - clear rules for entry and exit transactions, also describing: trading hours, timeframe, currency pairs, elements of analysis, and other nuances, directly related to opening and closing transactions. 2) Checklist for entering the market - the list of conditions for transaction opening. You put a tick against each of these conditions, if at least one of them is not satisfied - you do not enter the market. 3) Rules of money management used - clearly spelled out instructions for calculating the size of the position. Be it % of the deposit, N lots for X balance units, or other methods of calculation of the order size. 4) Trading plan - a road map that answers ALL the possible "what if" questions in your trading. Most often a trading plan is advised to include both strategy rules and money management and a bunch of other unnecessary stuff. I'm against having everything in "one pile". Because with a big amount of information you simply will not pay enough attention to it, and it will turn out that you do have a trading plan, but it is of no use. What should a trading plan consist of? Below is a list of parameters a trader should include in his trading plan. They are categorized and examples are given. Don't forget that these are just examples - you will need to make specific points on your own, based on your trading strategy, money management, overall risk level, and views on the foreign exchange market. 1) Force Majeure You must clearly spell out (as well as take the necessary preparatory steps) what you will do if: power outage, "fly" windows, shut down the Internet, an invasion of aliens starts.... Precautions against such circumstances usually include: a laptop with a charged battery (in addition to the main computer), a smartphone/tablet with installed mobile MT4, VPS-server, 3G-modem or smartphone with modem mode, a list of nearby cafes with free WI-FI, phones of friends who live nearby. 2) Restrictions on profits and losses It should also be spelled out what you will do in case of large profits, sufficient profits and a series of losing trades. Everything here is highly individual and depends on your trading style and risk. A few examples to give you an idea of what we are talking about: - "After I reach a profit of 20 pips, I do not trade on that day anymore." (Note that 20 pips is a profit limit per day, not a goal. This is important - setting a profit target is very dangerous.) - "After 5 losing trades in a row, I take a break for a week." - "If I have a 20% drawdown, I stop trading for the rest of the month." - "If I earn 10% - I do not trade this week anymore". - "If I get three stop losses on one pair, I don't trade it that day anymore." - Etc. 3) Emotional states - when you can't trade - "If I'm sick, I don't sit at the computer that day." - If I'm depressed, upset, depressed, or just want to sleep, I shouldn't get into the terminal. - "If I am too excited, angry at someone/something, unable to concentrate, excited about something, enthusiastic, scared, nervous, etc. - I won't open a trading platform." 4) Complex trading tactics If you use several trading strategies, then describe the conditions, when which of them to use. For example: - "If the market has been trending for the last week, I apply strategy X, if the market has been flat - strategy Y" - "The Expert Advisor enters the market, then I disable the Expert Advisor and manage the position by the rules of strategy Z." 5) Sources of information used Examples: - "I watch the list of upcoming news in the economic calendar, I do not trade half an hour before and half an hour after important news. If there are Non Farm Payrolls on that day, I do not trade at all." - "I mark possible sets on the chart, but I check the analytics before I enter into trades. If there are contradictions, I recheck the opportunity to enter. 6) My trading objectives are long-term and short-term. It's important to keep a memo in front of you - why are you doing this in the first place. This will help you both come back from heaven (why do you need 100500 trades a day, if your goal is a stable 10% a month), and keep in mind the long-term plans in times of drawdown. Examples: - "My goal is 5% per month. So, I understand that chasing the number of trades and looking for entries where there are none is stupid." - "Trading is interesting to me as a hobby. I'm earning enough as it is. That's why I do not risk more than 0.5% in a deal." - "I like the market as a source of adrenaline. I like risk and I like to win. I understand that this approach is dangerous and I never deposit more than the amount I don't feel sorry to lose." - "I borrowed 10,000,000 rubles from bandits. I understand that if I don't pay them back 12,000,000 in a month, they will kill me. Good luck to me." 7) Something of your choice This may be a favorite quote, a personal rule of "do not look at the terminal more than twice a day" or "keep your pet cat in the other room while analyzing charts". Or some specific nuances related to your trading methodology. Your trading plan Be sure to create a trading plan. Print it out and put it on the table next to your computer. Or attach it to the wall. It is important to have this document before your eyes. And, of course, you have to follow it.
Education
by DeGRAM
14
The ART of the Fade.Tilray is a Cannabis stock, but the importance of this post is the art of fading. I have numerous posts on Volume profiles and how and why they are very effective, and have kinda made it a mission to show you how great they are! Here I am showing you how to fade around value, notice the profile, notice how price is trading sideways in this range and building mass of orders, I have used the two blue horizontals to show the outerside of range, and look how price has acted! Absolutely beautiful fades back into Value! honestly so beautiful. Price attempts to break the outside boundaries before being turned around and heading back into the mass of orders, it is truly beautiful. The takeaway from this post is the importance of using a volume profile in trading, as the big boys are! step up your game now!
NASDAQ:TLRYEducation
by ZenFlo
2
TURN ON YOUR BRAINWith age, mental clarity deteriorates, we get tired faster and cannot focus on completing tasks for a long time. At the same time, age is not the only reason for the decline in performance. Lifestyle also plays an important role in this. Poor nutrition, lack of sleep and lack of exercise, constant stress, smoking and environmental pollution factors – all this leads to damage to fragile brain cells. Our brain is very strong and, if we help it, it will work at full power again. Today I want to share with you five ways to improve the work of your brain. Let's go! Healthy fats To improve cognitive functions of the brain, as well as the prevention of mental and affective disorders, it is advised to use flax seeds, salmon and walnuts in food, because they contain a large amount of omega-3 fatty acids. These acids improve and support the ability of your brain to adapt to different situations, improve memory and increase learning ability. Many studies have shown that the use of omega-3 fatty acids increases a person's IQ. In addition, it has been proven that the lack of omega-3 fatty acids leads to the development of mental disorders. Green tea Green tea is recommended to protect the brain from the effects of free radicals. It is full of nutrients and trace elements, rich in antioxidants. In addition, green tea promotes fat burning and increases the metabolic rate in the body. Green tea helps to improve short-term memory and improve cognitive functions of the brain. Physical activity It has long been known and repeatedly proven the positive effect of physical activity on the brain. Some people think that physical activity means a lot of intense and hard sports, but this is not the case. Scientists have proven that it is enough to take a 40-minute walk at least once a week. Such activity improves neural connections, reduces the influence of age on brain function and enhances cognitive skills. In addition to walking, warm-up exercises have a positive effect on the work of the brain. Scientists have proven that the inclusion of warm-up exercises in daily activities improves brain function, helps to cope with tasks faster and better. Foods that stimulate brain activity Proper nutrition and proper diet are very important for brain function. Scientists have proven that children who ate before going to school absorbed the material better and were easier to learn. In addition, people who followed a proper healthy diet had a lower risk of developing brain disorders in old age. To improve brain function, it is recommended to take the following products: • Dark chocolate. It has been proven that it enhances the attention and concentration ability of the brain. • Broccoli. It is rich in vitamin K, which is known to enhance cognitive and thinking abilities. • Blueberries. It contains anthocyanins and antioxidants that support interneuronal connections in the brain and contribute to the prevention of memory loss. • Nuts. They contain a large amount of magnesium, a trace element that is responsible for improving both short-term and long-term memory. • Pumpkin seeds. They are a source of zinc for your body, which is extremely necessary for improving memory and thinking skills. • Greens, asparagus, olives, and whole grains are also rich in vitamin E, which probably helps prevent cognitive decline, especially in the elderly. The superfoods mentioned above contribute to the activation of the intellectual resources of the brain, improve memory and increase efficiency. Music Surely you have turned on music more than once during workouts to better tune in to physical activity. In addition, people listen to calm music to relax. And what about training? It has been proven that classical music increases concentration and improves the level of self-discipline. In addition, it was proved that students who listened to Mozart's works against the background demonstrated the best results in processing spatial and linguistic information. Scientists have proven that music reduces stress levels, which has a positive effect on brain function and reduces the occurrence of chronic diseases, mental disorders and slows down brain aging. Result Our brain, like the rest of the body, needs care. Proper nutrition, physical activity and music contribute to improving brain function. All these tips will inevitably lead you to a new level of brain activity. Watch your body! Good luck! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
17
Fear In TradingThe profession of a trader can add a whole wagonload of extra emotions and experiences to your life. Fear, along with other important emotions, hope and greed, drive the forex market. Because of the fear of losing money that affects everyone involved in forex trading, fear can be called the number one emotion in trading. Generally speaking, the emotion of fear arose as a result of a perceived threat and has evolved into a natural defense mechanism in most animals. In our heads, the limbic system is responsible for fear, which is one of the most primitive parts of the brain. Fear is one of the components of the instinct of self-preservation in developed animals and manifests itself in the form of "fight or flight”. It is the same with humans. Response of forex traders to the fear manifestation When trading, there are several types of emotional responses associated with fear: - Fear of failure - Fear of missing potential profit - Fear of losing everything; doom. The aforementioned fear-related emotions are reflected in the daily movement of the markets and often lead to trading losses if not properly controlled. Nevertheless, fear can be extremely helpful in case of market contingencies. As W.D. Gunn, one of the famous traders of the past, remarked, "Fear will save you if you act quickly when you realize you have made a mistake." Many professional traders admit to using fear as a sort of sixth sense to get out of a position in time. This refers to situations where neither take-profit nor stop-loss has been triggered yet, but the trader feels that "Something is wrong." Another quote by Gunn reflects the above well: "Fear of the market is the beginning of the road to wisdom. How fear drives your trading Having a good trading system and all the necessary technical and analytical tools is not enough to succeed in forex trading. You also need the right mental attitude. Which can only be achieved by learning to control your emotional reactions in all possible trading situations. Most people have no way of knowing how they will react or what emotions they will display when they start trading. And they have no idea how much their emotional reactions will affect their profitability. Another emotional reaction that can negatively affect a forex trader includes fear, preventing them from doing anything, namely opening/closing positions. This can be especially detrimental if the trader, holding a losing position, finds himself paralyzed, unable to close a losing order while the market continues to move against him. This type of reaction can also prevent the trader from opening a position when he hesitates to "pull the trigger" and thus goes against his own trading plan and system rules. Another type of fear, which occurs during forex trading, usually occurs after the trader has closed a losing trade. Due to the loss of confidence in their system caused by a previous losing position, the forex trader may be too scared to re-enter the market, even fully aware of the possibility of recovering the money lost on a previous trade. How to use fear in forex trading Basically, when it comes to fear, keep in mind that fear refers almost exclusively to future events. It can take the form of prolonging an unacceptable situation (holding on to losing orders), which can make the current situation even worse. A good way to deal constructively with fear is to replace it with hope which can be very damaging to the trader. For example, instead of thinking, "I hope the market comes back," you can replace this thought with a much more helpful "I'm afraid I'll lose more money. Caution in trading can't hurt. This thought replacement technique can help well if you find it morally difficult to accept (and close) losing trades. In general, if you can be disciplined and trade using a good strategy, with application and unquestioning adherence to a money management system, fear and other emotions can be easily curbed. As long as you "plan your trade and trade plan," fear can usually be kept to a minimum in your forex trading.
Education
by DeGRAM
11
📌 Types of Orders in trade : An order is an offer sent using your Exchange or broker’s trading platform to open or close a transaction if the instructions specified by you are satisfied. Basically, the term “order” refers to how you will enter or exit a trade. Orders Types: There are some basic order types that all Exchanges or brokers provide and some others that sound weird. Orders fall into two buckets: Market order: an order instantly executed against a price that your Exchange or broker has provided. Pending order: an order to be executed at a later time at the price you specify. Limit Order: A limit order is an order placed to either buy below the market or sell above the market at a certain price. This is an order to buy or sell once the market reaches the “limit price”. You place a “Buy Limit” order to buy at or below a specified price. You place a “Sell Limit” order to sell at a specified price or better. Once the market reaches the “limit price” the order is triggered and executed at the “limit price” (or better). It is clear where the order should be filled ,But it does not necessarily mean that it will be filled and it depends on the sufficient volume in the specified price or price range( trigger - order ) Market Order: A market order is an order to buy or sell at the best available price. It is not clear where the order will be filled ,It depends on where the price order meets a right volume in apposite order on the other side ! Stop Loss Order: An order to close out if the market price reaches a specified price, which may represent a loss or profit. A stop loss order is a type of order linked to a trade for the purpose of preventing additional losses if the price goes against you. If you are in a long position, it is a sell STOP order. If you are in a short position, it is a buy STOP order. REMEMBER THIS TYPE OF ORDER. A stop loss order remains in effect until the position is liquidated or you cancel the stop loss order. Trailing Stop: A stop loss order which is always attached to an open position and which automatically moves once profit becomes equal to or higher than a level you specify. A trailing stop is a type of stop loss order attached to a trade that moves as the price fluctuates. Trailing stops helps to lock in profits or limit losses as a trade moves favorably. They also allow traders to place a pre-set order at a specific percentage away from the market price when the market swings. Limit Orders versus Stop Orders: New traders often confuse limit orders with stop orders because both specify a price. Both types of orders allow traders to tell their exchanges or brokers at what price they’re willing to trade in the future. The difference lies in the purpose of the specified price. A stop order activates an order when the market price reaches or passes a specified stop price. One-Cancels-the-Other (OCO): An OCO order is a combination of two entry and/or stop loss orders. Two orders are placed above and below the current price. When one of the orders is executed the other order is canceled. An OCO order allows you to place two orders at the same time. But only one of the two will be executed. It is usually used when there is uncertainty for next movement of market and the price is between the two key levels of higher resistance and lower support, and you are waiting for the price reaction so on. for example, you want to buy bitcoin that already trading about $20500 and place a OCO order that if the price reaches the lower support of $20k , you place a buy-limit and your stop-buy limit will be canceled immediately , or otherwise if it crosses the higher resistance of $21k and breaks out it , your stop-buy is active, and your sell-limit order will be canceled at the same time . vice versa , suppose you have already bought bitcoin at 20k for instance , you place an OCO order, so if it reaches the higher price about 22k as your TP ,you sell it and your cancel stop-limit order will be canceled , or otherwise if it goes down and loses the lower support, your stop-loss will be activated and sell -limit order will be canceled . other concepts: Post-Only Orders Available as an additional option to Limit or Conditional Limit Orders, Post-Only Orders serve to strictly ensure that your Limit Orders will be placed into the order book and therefore pay a lower trading fees then it is ultimately executed. By selecting this option, the system will automatically cancel the limit order, if it detects that it will be executed immediately upon the order placement. Good till cancelled (GTC): The order will remain valid until it is fully executed or manually cancelled by the trader. GTC is suitable for traders who are willing to wait for all contracts to be completed at a specified price and can flexibly cancel unconcluded contracts at any time. Fill or Kill (FOK): The order must be immediately executed at the order price or better, otherwise, it will be completely cancelled and partially filled contracts will not be allowed. This execution strategy is more commonly used by scalping traders or day traders looking for short-term market opportunities. Immediate or Cancel (IOC): The order must be filled immediately at the order limit price or better. If the order cannot be filled immediately, the unfilled contracts will be cancelled. IOC is usually used to avoid large orders being executed at a price that deviates from the ideal price. With this set, the contracts that fail to trade at the specified price will be cancelled. sources: help.bybit -babypips.com. -academy.binance This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate.
Education
by PRO_SMART_Trader
6
Boxing and TradingSome complex things are easier to understand through analogies and metaphors. What do boxing and trading have in common? Nothing at first glance, but if you look closely… 1. You can't avoid the bumps. Even the best boxers with incredible technique and reaction are not able to get away from all the blows. At the same time, missing a shot does not mean losing, it's just part of the game. It is the same in trading – it is impossible to avoid losses, they are part of the game. Do not think that you are the best and will be able to avoid stop losses. A professional trader takes stop losses for granted and does not worry about it - he just continues to trade as if nothing had happened. They are waiting for the next opportunity to strike in order to win at a distance. 2. Miss a lot of punches instead of a single one that will knock you out. The best boxers missed punches, but they had enough technique not to miss the hardest punches. A true professional should be able to defend himself both in boxing and in trading. Follow risk management and learn to identify your worst case scenario. Use an adequate position size, protect it with a stop loss, and always make sure that never, under any circumstances, one trade leads you to a margin call. 3. You don't have to win by knockout - winning on points is also a victory! The audience loves a knockout because it looks beautiful and spectacular. But most of the wins boxers get on points. The best boxers are always focused and will not allow themselves to throw dangerous punches in the hope of winning with one punch. They know that thanks to accurate and effective strikes, they can win without the risk of running into a counterattack. In trading, you don't need to earn huge profits from a single trade. Regular small winning trades will add up over time. A professional trader always remains in control, and he knows that this advantage guarantees success in trading in the long term. 4. Control your emotions. The fight doesn't start in the ring, the fight starts before the ring. Every boxer feels this psychological pressure, but it does not lead the best astray, and even vice versa. The best are able to influence and influence their rivals. In trading, our enemy is you, or rather our emotions. We must be able to control them, not let them influence us. 5. Preparation for each battle is unique. Each new fight is special, because each new opponent uses his own style, has his own characteristics. You need to be able to analyze both your own actions and the actions of a new opponent. In trading, it boils down to the fact that after each closed position, you need to analyze it and understand where there were mistakes and where there were not. This is an important job that will make you a professional. 6. You have to react to what is happening now. Making a plan for the fight before the fight is a good strategy, but you need to be flexible enough to be able to change the plan at the right time if the situation requires it. The best boxers were able to do this, unlike those who stuck to the plan even realizing that the plan has not worked for a long time. Traders are most often very static and trade in reaction mode. Despite the fact that you must have a trading plan and follow it clearly, during some unexpected events you must be able to adapt to the changed market conditions. Amateurs often get "stuck in time" during bad periods – as a result, they get a knockout blow that went before them for a long time. 7. You have to go all the way from the beginning. Tyson, Ali or Holyfield hardly made the decision that they would fight for the world title. They started boxing very early and could hardly imagine their future boxing career. They fought in dozens and hundreds of small fights in dilapidated halls and worked slowly until they were able to take a step on the big stage. Traders should follow the same path. You can't decide to become a profitable trader right now. Most likely, you will go through several accounts, you will lose money for a month or a year, or even more; you will have to work 7 days a week for 12 hours a day without knowing whether all the effort spent will pay off and whether you will achieve your goal. 8. Become a master of the basics. The best boxers are those boxers who perfectly master simple techniques: they move perfectly in the ring, hit effectively, defend perfectly, possess a dangerous hook and incredible endurance. The best boxers do not need to own a unique and outstanding technique or develop their own tricks and tricks – they train their skills on what really matters. Only then will the trader have a chance of success when he masterfully masters the basic principles and techniques. Being able to perform multi-time frame analysis, understand how to read the price and its "mood", understand the basic principles of statistics, have a constant principle of setting the position size and risk management, as well as unquestioning adherence to their trading rules - all this is the basis of any successful trader. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
10
Trading DiaryYou will encounter an enormous amount of information in trading. The emotions you will experience while doing so will also be unlike anything else. Therefore, you will need a diary. And not just one, but two: A diary for traders and a diary for emotions. Trading diary This's simple. If you don't monitor the effectiveness of your trades and if you don't keep statistics, you're playing the lottery. Records of your trades help you control not only the trading process, but also your emotions. They show a complete picture of your struggle with the market. A picture that you can then learn from it. Keeping a trading diary is not difficult at all. It is most convenient to do it in a excel spreadsheet or google docs. In fact, all you need from a trading diary is: the open and close time of the trade; asset name; trade volume or lot size; notes (which indicator, which system is used); and the result Such a table will give you a lot of opportunities to analyze your trades. And most importantly, it will save you from impulse entries. Nothing in the table will be forgotten. What else could be added to it? For example, an extended description of the reasons for entry or reasons for failure. A screenshot taken before you open a trade is very helpful. Some people even record a mini-video, but this is, in my opinion, unnecessary. All this data is evidence. And you show them to yourself later, if the trade was successful or not. If it was successful, note that it was an excellent entry according to your plan. If not, take apart your mistakes and write them down. Emotional diary This diary is treated extremely negligently. You should not keep such diaries because you "have to" do it because someone said something. You have to feel an urgent need to do so, to record your emotions. How and when to do it? You know the easiest way is sincerity. Be honest with yourself. You can't be successful in trading if you constantly lye to yourself. Your job is simply to understand how you feel before, during and after trades. Writing down a lot of words is not an option, it takes time. It makes sense to create a dictionary of code words. Some even use hieroglyphs or emojis for this purpose, as each emojis is a meaningful picture. By doing this, you begin to understand yourself much better. Every day we experience a fairly fixed set of emotions. Always fear, greed, boredom, joy (much less often than other emotions). In trading in general, emotions are complex, where a thought is followed by an emotion and vice versa. By exposing your emotional portrait, you will immediately see your weaknesses. Let's say the fear that the trade won't work out. And what is this fear, its reasons? For example: Lack of practice (uncertainty); you are not confident enough in your trading system (doubts); you have violated money management and are afraid of losing money (fear); you're working on your last dime and you're scared (fear); you're sick of all the technicalities (impatience); the trade is lost (indignation). What to write in the diary? Everything that relates to trading: before, during and after. Trading is a set of skills and certain abilities, no matter what specific techniques or tools are chosen. And the final result depends on the systematization of your skills. It depends on how well you follow your own plan, how you execute it and how you monitor it. The diary should include: your motivations, why you came into this business; what the market is to you, how you assess and analyze it; how you analyze mistakes and missed opportunities; how you keep track of your trades. Everything must be prescribed. You can have a simple list; you can have a complex program, whatever you like. Formalize your approach to trading. This is the only way to turn an amateur into a professional trader. Take screenshots. Lots of them with descriptions. In Tradingview, they are made with one button. You don't even have to install a separate program. Study your trading diary The diary is a jewel. It's your trading life. On weekends, when there are no trades, it's a good time to open it and dive into studying your past trading week. As you go through it, try to answer the following questions: How much, given the risks, was the correct lot size? Was the entry really as successful as you thought it would be? What tools could be used to improve it? Did you think things through patiently or did you open a trade because you couldn't wait? Did you follow the trading plan when opening the trade? What happened to the support and resistance levels during the trade? Was there any big news? By constantly asking yourself these and similar questions, you will learn to control your emotions and be able to treat the market as a regular, structured work, where no surprises can happen to you, because you have thought everything through in advance and know how to act in case of profits and losses. What to do with statistic? Nothing complicated. You actually need the diary for two things: to find something that works; and what is known to be useless. It is the diary that allows you to find answers to many questions in relation to currencies, best trading days of the week, special instruments and much more. If you track your trades in a diary, you're on the road to professional trading. This way you rely on structural logic rather than your memory, which regularly fails us, also due to the continuous influence of emotional factors. Use it, regularly, do it for yourself. Be sincere with yourself. Talk to yourself, criticize, praise, if there is a reason to do so. Do not keep all your emotions inside, they will come back to you later through wrong trading decisions. Dear diary...
Education
by DeGRAM
4
Learn to publish your ideas - Cryptoz18Hello, here is z18 reporting. Today I will make a small guide teaching you how to use all the tools that TradingView provides you directly to make your content the best it can be. Every content creator has quite a few tools when it comes to posting an idea. However, we will not talk about how to create an idea. Let's take a look at all the possible tools. █ Content creator tools: • Title In this specific tool, it is directly sought to place a brief description so that the viewer has an understanding of the idea and is interested in entering to read it. • Description In the description, the user can directly place any content that he considers important for his idea. There are various tools in this section such as the following: ▶ Italics: It can be useful to highlight something in a paragraph directly that is relevant. ▶ Bold Font: It can be useful to highlight something important or place titles. ▶ List or list element: It is useful directly to make a list in the description. ▶ URL: It is useful to place content related to the idea. ▶ Insert URL: It is useful to place charts or ideas which you decide to relate to the current ones. ▶ Symbol: This tool is used directly to place an asset within the description. • Link to related ideas This tool is generally used to place a related idea or highlight previous content to your readers. • Privacy settings This specific tool is used to make TradingView understand if you want your idea to be private or public. • Idea type Here you can select if your idea is a tutorial that refers to any educational content for the TradingView community or an Analysis in which you can directly catalog if it is a trading idea. • Investment Strategy Here you can place if your operation has a certain direction, for example: ☀ Long: Your trade is taking a long trend. ☀ Short: Your trade is taking a short trend. ☀ Neutral: You have no decision and decide to remain a spectator until more information is gathered. • Category A category is a tool that is used directly to place what your analysis or educational content is based on, and it is very important to focus on your desired audience sector. 🔷 Trend Analysis: This refers to any concept that you use to refer to market trends. • Support and Resistance: Levels where the price stops on the chart. • Supply and demand: This principle reflects the relationship between the demand for a product and the quantity supplied of that product, taking into account the price at which the product is sold. • Pivot Points: These are significant support and resistance levels that can define potential trades. • Fibonacci: Method to determine potential levels of resistance or support in the price of a financial instrument. • Trend Lines: Angled lines that can be drawn on price charts, connecting swing lows with other swing lows or swing highs with other swing highs. • Candlestick analysis: They are one of the most well-known components of technical analysis, as they allow investors to obtain price-related information quickly from just a few price bars. • Analysis of multiple time frames • Multiple Time Frame Analysis: Performing multiple time frame analysis involves using daily charts to identify the general market trend and then studying 1-hour charts to establish specific opening levels. • Periodicity: Seasonality is a phenomenon in which the price experiences similar and predictable changes around the same period of each calendar year. • Fractals: Points of rupture since they highlight the points in which the prices do not hold and go back. • Cycles: A market cycle can be understood as a market period that takes into account the behavior from a minimum/maximum price to the next minimum/maximum price. 🔷 Harmonic Patterns: They are considered harmonics because they have a direct relationship with the Fibonacci number series. • AB=CD: Price reversal pattern that helps traders predict when an asset's price action is about to reverse. • Three impulses: Reversal pattern, so it signals an upcoming change in a trend. • Gartley: The Gartley pattern is a 5 point structure that was originated and outlined by HM Gartley • Bat: Bat Pattern is a retracement and price continuation formation that occurs when a trend temporarily reverses its direction and then continues its original movement. • Butterfly: A pattern that usually forms near the extreme lows and highs of the market and predicts a reversal. • Crab: This is a volatile extension pattern where the final move exceeds X. • Cypher: Cypher extends beyond the XA movement. This means that an extension level of AB is used to measure BC movement. • 5-0: 5-0 pattern is a unique price structure that has a precise alignment of Fibonacci ratios to validate the pattern. • Shark: Shark is made up of a series of price swings that are characterized by having precise relationships with each other, based on Fibonacci numbers. 🔷 Graphic patterns: Patterns that are constantly displayed on the chart that warn of trend continuation or reversal and are usually conditional. • Double Top or Bottom: Popular pattern in Technical Analysis because an exact price point is seen where the value of the asset is constantly rejected. • Head and Shoulders: Pattern where an HCH is seen known as Head Shoulder Shoulder where it can probably denote an interest in sending the price in a reversal of the current trend in general. • Wedge: Pattern where the value scales quickly and little by little stops scaling the same price changes in percentage, obtaining a wedge view that the main idea is several executed orders to go in a reversal of the current trend. •, Cup and handle A pattern where denotes a cup-shaped accumulation to have momentum towards the trend. • Flag: Pattern of uncertainty where a continuation or change in trend is expected and a flag is displayed where it has the same point of fixed interest where the price scales and different highs-lows depending on whether the pattern is bullish or bearish. • Rectangle: Pattern where a lateral zone is seen directly. • Parallel Canal: Canal with lateral development. • Tridents: Channel based on Pitchfork where a possible trend is denoted. • Triangle: chart formations made up of multiple candlesticks between two converging lines of support and resistance. 🔷 Technical Indicators: They are indicators with fixed conditions by their code which provide you with information that will provide you to carry out an operation. • Oscillators: These are technical indicators that do not move smoothly and are directly accompanied by the price trend. • Centered Oscillators: These are oscillators that have a fixed range. • Volatility: Indicators that seek to give you information regarding the current volatility of the asset. • Volume: Indicators that provide you with information regarding the volume in the asset. • Moving Average: Indicators that provide you with a follow-up of the price data based on periods. • Breadth Indicators: Technical analysis tools that measure the direction of the market and help traders determine if it is bullish, bearish, or neutral. • Bill Williams Indicators: Indicators based on the Bill Williams strategy that sought to catch market trends. 🔷 Wave analysis: It is a way of analyzing the market based on trend impulses. • Elliot Waves: It is based on the principle of price movements in the financial market through the waves that form it and the study of its graphic formation. • Waves of Neo: It is an extension of the ideas and concepts of R.N. Elliott, but uses his technique for analyzing waves, the aim of which is to reduce the subjectivity and perceived contradictions of traditional Elliott Wave theory as well as to improve his predictive ability. NeoWave is a discipline unto itself, with many additional rules and requirements, as well as new corrective chart patterns such as the Neutral Triangle, Diametric Formation, 5th Wave Fault Terminal, and 3rd Extended Terminal. • Sinusoidal Waves: Graph of the mathematical sine function of trigonometry. • Wolfe Wave: Means to predict supply and demand levels. • Kondratieff Wave: Its basis is that capitalist economies experience long-term boom cycles, followed by a cycle of depression. 🔷 Gann: Gann believed that the market follows a natural time cycle. His theory was based on natural geometric shapes and ancient mathematics. Gann's theory states that an asset's patterns and angles in the market can be used as a predictor of future price movements. • Gann Grid: The Gann Grid is a tool that is made up of trend lines drawn at an angle of 45 degrees (Gann Lines). According to Gann's conception, a line under the 45-degree angle represents the long-term trend line (whether it is an uptrend or a downtrend line). • Gann Fan: A technical analysis tool that is made up of trend lines with different angles of inclination. • Gann Square: Trading technique based on the symmetry of time and price. 🔷 Fundamental Analysis: It is any concept regarding fundamental issues, some examples could be talked about: • Earnings • Growth • Value • Dividends 🔷 Finally we have Beyond Technical Analysis which would be any topic that is within trading but is not in the category. It is important to know how to use the category since these in themselves give us a better positioning towards the specific public. • Share: It is an option made to upload your idea to Twitter directly in real-time. • Tags: It could be referred to as the tradingview hashtags. Finally, you have to accept the terms and conditions and publish the idea. Now that we understand all the concepts, let's get an idea of Technical Analysis. We have the EURUHF asset. Our idea will be based on using the Exponential Moving Average indicator. Every idea must have at least a Technical Analysis concept or an indicator plus a brief description explaining why you would take that position or your opinion. It can be seen that based on how the EMA currently works we would go long if we just relied on the indicator. So our idea will be to take a long. For this you must carry out your technical analysis with your way of operating and risk management, it is highly recommended to place a Setup. I have placed a Setup, now I must understand my idea. To do this is simple. Let's think about why I am deciding to go long on this asset. In this case, the answer is because the exponential EMA is below the price and according to the EMA base that is made under the concept of Price Data this would be a possible development of an uptrend, and let's look at the temporality that we find in this case 1 HOUR. Now let's publish our idea, the publish button is located in the upper right part, once inside, first place the title, in this case, I will give a simple summary. My title will be "long possible EURHUF on H1 based on the EMA" although I'll leave you with a little tip you can place your username on the side, this tradingview will understand it as an href that is a redirection to your profile that will help some people to look at it. 🔷 Fact: Placing your username next to the title works as a redirection to your profile. Once this is done, it is time to place a description, we have several tools to be able to make a beautiful design, however, they tend to consume time for this, I usually recommend having a template which I use in all my analyzes to save time. I don't use italic-bold letters much, but I do use a lot of separators that are put as emojis in TradingView, I'll leave you some here. 🔷 Separators that I usually use: "▪, 🔹, ☑, ❌, 🔷, ⚫, ⚪" Let me show you how to use each tool on an image. • Italics and bold letters must be ensured that they are within the parameters. • Symbol and list you must use it inside the parameter and for each new line you must add " Text" • Insert URL is used to place any content that you think is relevant to your idea. • The insert chart is used to place a shot of the chart or a previous idea. • The insert symbol is used to place a direct redirect to an asset. It would look like this directly when we are doing the description as an example. But visually for the reader. ☑ You can see the final result here: Now knowing this only depends on your creativity. In case you carry out an Analysis to operate, I recommend you to place a Setup and in the description give an explanation of why you made that decision, then provide operational data such as StopLoss-TakeProfit and Entry Price, also mention regarding risk management in addition Once you upload the idea, TradingView allows you to place extra information in the comments section so that you can guide your audience in the operation. If it is educational content I recommend you to be creative there are many options in TradingView to make totally attractive covers. I hope you liked all this explanation that is mainly aimed at content creators. Tip: Remember that all your posts must respect the TradingView community rules. You can see them all directly here: www.tradingview.com
Education
by Hi244me
2
Amazon and BTC logical comparison and buy/sell tacticsAmazon's main trend is shown. And the logic of actions on bitcoin, both for those who understand what trading, hype and trend are, and for completely inexperienced traders. Amazon during the internet bubble. One of thousands of similar ones at that time (everyone knows bitcoin). Depreciated by -95% during the collapse of the bubble of Internet companies. The action is chosen for clarity. The trading situation is roughly similar to a double top. Everything is shown clearly to understand the logic of actions. Past trading situation and the implementation of the double bottom goals according to the TA classics, during the pumping / dumping of Dotcom wrappers on AMAZON shares Bitcoin secondary trend now. BTC/USD Just comparing % with the fall in 2013-2015
NASDAQ:AMZN
by SpartaBTC
25
Paper TradingThere are traders who live only from trading, there are quite a few of them. But do you think they have some secret formula for the market? Wouldn't it be great? A simple and clear way to make money from the market, no worries. You open a chart, take a trade, and just go away. In reality, it's not like that. Like many traders, I found it infinitely difficult, because trading is: Work and a continuous buttle with yourself. You have to detach yourself from your passions and become a creature that absorbs all possible and available information about markets. One must cope with a multitude of incompatible and mind-breaking emotions. You need to stop treating trading as a game and consider it as a job. The chart itself should be regarded as a real business. It's a difficult road, not an easy one. Most people lose money on this route. They get picked up by the people who follow them, they lose too, and it happens time after time, in a continuous line. Along the road of trading, you will encounter a lot of obstacles: A desire to solve your problems by investing a capital and making a large sum of money quickly. You will be very afraid and hurt to lose money and you will lose it, inevitably, there's no way around it. You will constantly lose faith in yourself and your predictions; the market has broken a lot of traders. Trading abounds in traps. How to avoid many of them? Well, you can do it the old-fashioned way by trading on paper. Paper and market prices Trading on paper. What does it mean? It means you and just a piece of paper. Yes, it's the old way. Of course, you can use spreadsheets and there are different prediction tools on trading platforms now, like forecast on Tradingview, for instance. Get a notepad, a pen, sit down in front of the chart and watch how the price moves. When your strategy indicates an opportunity for a good entry, write down all the details of the potential trade, such as: Account balance; The current price of the asset; Open and close time; The size of the trade; and of course, whether it is a buy or sell trade. All you have to do next is keep looking at the chart, or you can leave it alone. When it's time to analyze the past, just write down the current price and the new size of your balance, and if the forecast was right or wrong. That's what trading on paper is all about: you write down the data on a trade instead of risking your money. So why rush in and lose it. I understand if you don't like paper. I'm a fan of smartphones and laptops myself. So, keep records in Excel or in the trader's diary. Pros of trading on paper The pros are obvious no money is lost, you can open a chart at any time and assess the results of your efforts. Similarly, you can analyze successful predictions and learn to repeat them on the chart. Yes, of course, many brokers give demo accounts, but do not forget that they often give you the demo only for the purpose of "hooking" you on their platform. Some brokers even open a demo after depositing with real money. Paper trading doesn't require you to do anything at all. You just need to record your entries from time to time, it can't be easier, can it? And when you start getting good at it, you can try the demo or go straight to the real one, to work on a small capital. The disadvantages of trading on paper The disadvantages are obvious, this is not real trading and one can get too carried away with paper testing. Sometimes everything turns out great on paper and you diligently build up capital every single day. And then you know what happens? You'll have a very interesting thought in your head, like: "Isn't it time for me to invest more money and earn real money?" If you get greedy, you're in trouble. What a way out of this is not to think that paper successes will immediately translate into real successes. You shouldn't get greedy. Theory is theory, and practice is practice. With paper trading you certainly can't lose money. When it comes to working with real capital, it also helps to eliminate the emotional factor—the continuous stress we experience, and which we struggle so hard to tear from our hearts. Trade on paper Paper trading is the most elementary way to test strategies and educate traders' discipline. This method is old, one might say, grandpa’s way. For decades, Wall Street traders have been writing their notes on paper, before the computer age. Work on paper as close to reality as possible. If you can't afford to work with more than $100 on your account in reality, work with the same amount while trading on paper. Do not draw millions for yourself. The simulation should be as close to reality as possible. In the end, the main thing that distinguishes real trading from demo or paper trading is only emotions of the trader. After all the charts and prices remain exactly the same.
Education
by DeGRAM
7
Multiframe analysisMultiframe analysis is when we analyze the same currency pair or other asset on several timeframes at once. You know that any price can be seen on a chart: Daily hourly 15 Minutes 5 Minute 1 minute We have plenty of opportunities to study the behavior of the same price. And it is the multiframe analysis that will allow us to do it correctly and efficiently. There are quite a few trading systems where the daily or even weekly charts are taken as the basis. Does it mean that sets on higher timeframes are not applicable on small ones? Not at all. That is exactly what we need. Let's say you saw that EUR/USD is in a downtrend on the 4 hourly chart by drawing a trend line. However, your main trading chart is a 5-minute chart and you see perfectly well that the price on it goes up/down, and the trend line from the 4-hour timeframe is hovering far above. And what to do with it, on what timeframe to look at? Traders often get confused with this. They see a sell signal on the 4-hour chart and a buy signal on the 15-minute chart. What should we do in such situations? Let's figure out what timeframes should be used and how to perfume it. Best timeframe The question of which timeframe is better to trade is asked very often. And this question is always wrongly answered when a beginner trader chooses a timeframe that does not suit him psychologically at all. Inexperienced traders want a lot of money at once in the shortest possible time. That is why they, naturally, choose the 1-minute or 5-minute chart. However, as time goes by, it turns out that these timeframes cause frustration and emotional distress to the majority of traders. The frenzied pace of price on these timeframes provokes incredible greed, turns off the brain and most lose money. Some people are comfortable trading on the 1 hourly chart. You wait much longer, and there are much less signals to take. But there is much more time to analyze the market and there is no rush. And, of course, a frequent guest in terminals are several timeframes on one screen. The whole point of the Dow theory is that we analyze the price from the higher to the lower timeframe and thus get a complete picture of the market. The timeframe is just a detailing of the price movement. Price chart is always the same. You can simply watch the price in the one minute or monthly chart. When it comes to the main timeframe, it could be too fast or too slow. This is normal, and it should be. You will try them all anyway, so the question of a constant timeframe is purely rhetorical. Let's compare several timeframes, what their pros and cons are. Long-term timeframes. These are the daily and weekly charts that give you a bird's-eye view of the markets. It’s for the real turtles. Medium-term timeframes. These are mostly hourly charts. Much more opportunities compared to the daily and weekly charts, there are can be several trades per day. Short-term timeframes. The timeframes, respectively, are 15 or 1-5 minutes. When choosing a timeframe, you should also take into account the number of trades and your deposit. Remember that the lower the timeframe, the messier trades it provokes. Such emotional traps are one of the key reasons why people lose money in forex. Psychological timeframe The main thing you need to understand is that the trading timeframe is tailored to you and your personality. Different people = different trading timeframes. With experience you will have no problem finding a good TF for you. Before looking for signals and on lower timeframe, you should analyze: 4 hourly or even daily 1 hour chart And for each, we need to draw support/resistance lines, channels, and what grandpa Dow requires of us. This is how you can identify reversals on, let’s say, a 15- minute chart. Because on higher timeframes the price encounters strong support or resistance. As you already remember, the larger the timeframe, the more reliable the resistance and support levels. When you see the big picture, the chances of successful trading decisions increase significantly. But with newbies it's the opposite. They set up a 1 or 5-minute chart and other TFs do not interest them at all. The practice of multiframe analysis We have already understood the essence of the analysis on different frames, it was also discussed in the theory of Dow. This is how we see the global price movement: long-term trends are formed on higher frames, and support and resistance are much more reliable on long-term TFs. It all starts with choosing a trading timeframe, after which we go up the ladder to get the full picture. And the full picture is an understanding of what's going on with the market. The market has only two states: a trend and consolidation. Higher timeframe analysis allows us to figure out what entry and under what conditions to make a trade. Tunnel vision or a global view; the choice is obvious. The best bundles of 3 timeframes It's best to use three TFs: The first one will show us the main trend, the big picture of the market; the second is a medium-term signal. The third is the detailing of the second signal, here we will look for the exact entrance zone. The most popular combinations of timeframes, depending on their level of detail, are as follows: 1, 5, 30 minutes; 5, 30, 240 minutes; 15, 60, 240 minutes; 1 hour, 4 hours, daytime; 4 hours, daily, weekly. There must be a sufficient time interval between timeframes. Otherwise, instead of detail, you get a simple clarification that is not particularly useful. To summarize Multiframe analysis is a framework that complements the Dow theory and, in fact, is based on it. First you must choose a global timeframe, then learn how to detail it. Conversely, enlarge the smaller timeframes to get an overall picture of what is going on. Never enter into trades without checking the situation on higher timeframes. Otherwise, you risk getting stuck on one timeframe and will surely miss an important market movement.
Education
by DeGRAM
7
Advantages and disadvantages of trading robotsHello everyone Today I want to discuss Trading Robots with you. In trading, any trading method takes place, especially trading using a robot that is devoid of emotions and performs everything that is assigned to it with the accuracy of a tick. Robots have many pros and cons, let's figure everything out in order. Advantages Speed. Any program is able to monitor more tools than a person. In addition, the program easily performs dozens of calculations and can analyze the market and make a deal in a matter of seconds, which the human brain is simply unable to do. A trader cannot learn hundreds of strategies and rules and use them simultaneously in the market, trading manually. On the other hand, the program is able to safely use complex systems. Accuracy. If the code is written correctly, if the strategy is well chosen, the robot will follow the rules accurately. An ordinary trader can choose the wrong tool, mix up the numbers, put a comma in the wrong place, the robot is absolutely accurate in its actions. Fatigue and scalability. Any trader needs rest, no one is able to sit at the monitor and constantly trade correctly. Unlike a human, a robot just doesn't get tired. He is able to work all day, seven days a week and does not ask for time off. If you use a robot, you can be free all day and go about your business while the robot does all the work for you without fatigue. Functionality. If a person finds a new strategy, he will need time to study it. And even after spending time studying, there is no guarantee that a person will understand everything that he studied the first time. But the robot will be taught easily, it is enough to write a line of code, and it will do everything, without errors, from the first time and you can add as much as you want and almost anything. The robot is not subject to emotions. Perhaps the biggest problem of a trader is emotions. Every trader, especially a beginner, experienced strong emotions when he lost or when he earned. It will not be possible to correct your psychology and get rid of emotions in a second, but fortunately, the robot does not have such problems. The core of the robot is built on clear rules, the robot simply does not know how to deviate from them, and the robot does not know emotions. The robot doesn't care how many losing trades there were before or will be after, all it knows are the rules, and it adheres to them. It is not easy to create a robot, but everyone can do it if they put enough effort and spend time. Disadvantages The complexity of making a robot (writing a program). Everyone can create a profitable trading strategy, but not everyone knows how to program and create robots. If you can program, you may have to learn a new programming language. There is an opportunity to buy a ready-made robot or order a robot to be written to you. In the first case, you will not know what is hidden in the black box, you will not be able to configure it. In the second case, there is no guarantee that the programmer will understand your idea and do everything right. The trading robot can only use technical analysis. A trader can read the news and understand the meaning that is hidden between the lines. The trader knows how to understand, but the robot does not. The robot understands only dry figures and therefore it uses technical analysis perfectly, but is not able to go beyond these limits. In addition, there will be situations when you clearly see one scenario, and the robot simply does not see it. At the same time, it is impossible to stop trading the robot if it is profitable at a distance. The only thing that can be done is to analyze this situation and, if necessary, make changes to the algorithm, while carrying out the entire testing process anew. A trading robot cannot make decisions in non-standard situations. It only fulfills the logic inherent in it, and in case of problems it will not be able to change anything. Of course, the program can include the robot's reaction to some situations, but it is impossible to foresee everything. For example, if the Internet connection is lost, the robot will not be able to continue trading or at least close an open position. A trader trading manually, in this case, would call the broker and close the position, or restore the Internet. The computer may freeze, the program may close with an error, the broker may not accept the application or accept it, but with a long delay. The trading robot will not be able to react to all events and this may lead to unplanned losses. The lack of emotions, one of the advantages of a trading robot, is also a minus. The robot can drain your entire capital in one day without any embarrassment. This must be taken into account when creating a robot. For example, allow the robot to trade only a part of your capital, or make it so that when a certain threshold is reached, the robot notifies you and (or) stops trading. Conclusion Concluding the consideration of the pros and cons of using trading robots, I want to say that the negative sides can be largely offset by a professional approach to creating a robot whose algorithm will take into account actions in non-standard situations. But at the same time, of course, there is no escape from the complexity factor in the process of creating robots, this is the main deterrent, which can only be overcome by spending considerable time on mastering programming. Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
11
Bites Of Trading Knowledge For New TOP Traders #13 (short read)Bites Of Trading Knowledge For New TOP Traders #13 ---------------------------------------------------------------- What is Bitcoin and from where did it originate? - Bitcoin is a digital form of a medium of exchange with no central bank control which issues fiat currencies. Instead, the financial system involving bitcoin is managed by thousands of computers distributed around the world, a decentralized ledger, where anyone can participate by downloading open-source software and connecting to the ecosystem. The invention and implementation of bitcoin is credited to the person or persons known Satoshi Nakamoto in 2009. The white paper “Bitcoin: A Peer-to-Peer Electronic Cash System“ states that bitcoin was to be, “A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.” What is the Blockchain? - The Blockchain is a decentralized ledger that is append-only meaning that data can only be added to it. Once information is added, it is extremely difficult to modify or delete it. The Blockchain enforces this by including a pointer to the previous Block in every subsequent Block. The pointer is a Hash of the previous block. Hashing involves passing data through a one-way function to produce a unique Fingerprint of the input. If the input is modified even slightly, the Fingerprint will look completely different. Since the Blocks are linked in a Chain, there is no way for someone to edit an old entry without invalidating the Blocks that follow, allowing a secure structure. What is Mining? - Mining is the process in which transactions between users are verified and added to the decentralized ledger. The process of mining bitcoin is responsible for introducing new coins into the existing circulating supply and is one of the key elements that allows bitcoin to work within the peer-to-peer decentralized network, without the need for a third party central authority. What Is a Blockchain Consensus Algorithm? - A consensus algorithm is a mechanism that allows users or machines to coordinate the agreement of what is a valid block in the Blockchain in a distributed setting. It needs to ensure that all participants in the system can agree on a single source of truth. Types of consensus algorithms include Proof of Work (PoW) and Proof of Stake (PoS). What is Proof of Work? - Proof of Work (PoW) is a mechanism for preventing the same bitcoin funds from being spent more than once. Proof of Work consists of a consensus algorithm which is a protocol that sets out the conditions for what makes a block in the Blockchain valid. It ensures the security and integrity of bitcoin’s distributed ledger. RISKS AND OPPORTUNITIES FOR CORPORATES AND INDIVIDUAL INVESTORS - Common application of financial market instruments for managing risk and opportunities. Alternatives: Correlation in Futures Investors could allocate a portion of their portfolio to establish a managed futures position and use market correlations to determine alternative markets to enter that meet their account size and risk parameters. For example, the Asia Tech 30 Index when charted against bitcoin shows a positive correlation between the two markets. Traders or investors may have interest in gaining exposure to bitcoin, but due to their smaller account size, may prefer to participate in a market that is correlated and fits their capital limitations. In this case, the Micro Asia Tech 30 futures contract could be a viable alternative to trading bitcoin with its lower margin requirements. TRADDICTIV · Research Team -------- Disclaimer: We do not provide investment advice, nor provide any personalized investment recommendations and/or advice in making a decision to trade. Before you start trading, please make sure you have considered your entire financial situation, including financial commitments and you understand that trading is highly speculative and that you could sustain significant losses.
ICESG:SDX1!Education
by traddictiv
VRVP and Fixed range profiles.In this post I wanted to do a breakdown of how to combine two profiles, so we had this big fall away from the VRVP, we had declining sized bars, we had less orders in leymans terms, so we can use a fixed range profile of the fall away to get a better reading of the orders in detail in the fall, remember VRVP gives a big scope, fixed gives a narrow scope, so price entered an area of Low volume which I labelled in the chart. So we now look at the fixed range profile we see the largest bar of the fall, which I have labelled with the green chequered line, so price is miles away from fair value on the VPVR, it naturally wants to return here as shorts close their positions, and buyers find value in the currency, so we wait for the fixed profile to break chequered line and we aim back to the volume build up, and I want you to start calling this 'fair price', see how simple and easy that was? So when price leaves the main VRVP use a fixed range on the down move to find the POC (Point of Control) AKA green chequered line, and aim back to the fair price, this is how you find value when trading! Now when you see these crazy moves, I want you to break them down in a sensible and logical approach, treat trading like a business! become a master of finding Value! More to come! ZenFlo
Education
by ZenFlo
Volume Profile and why you need it.Volume profile is an underused and quintessential part of trading, it tells you build up of orders, it tells you fair price, and it tells you where the majority of the liquidity is. You can see in this chart, I have taken it apart piece by piece to show you the basic mechanics and why price moves the way it does, now be honest, how many of you rushed into selling GU last minute because the price was collapsing? Well the funny thing is despite not being alone in doing so in the retail trading world, big banks and instituitions were already two steps ahead as expected, check the Volume profile, notice how it declined on a massively falling currency, what this is telling you is that the amount of exchanges is very low, as the shorters pushed price down they began to close positions, also what would have happened is the amount of retail money and money that isnt associated to high end firms would have started to see negative positions so what do they do? they have to close these sells with buys! so not only are the big banks taking profit, they are also using you as rocket fuel! as the masses of small money becomes negative/trapped/stoplosses, price reacts in an equal and opposite reaction, price rallies. So where is price heading too? it is heading back to an area where it can happily trade, and this is shown by larger bars on the VP, price wants to be happy, to be happy it needs to transact alot! So two takeaways... One, dont rush into falling or rising currencies! as they are heading into areas of low volume and will use mean reversion to run you over... Two, Utilise the fact price has low VP build up to your advantage! use price action and catch moves like that GU rally back to an area of more transactions! and a final little trick, use the VP to tell you if your orderblock is real or a figment of your imagination! feel free to drop some questions below, I may have to make more posts on VP for it to make sense. Maybe I will also make some posts on examples of trading using it, and what to do and not to do. Thinking about it, there is more posts to do, I need to show how to trade mean reversion and 'mountain to mountain' tactics. Hope you find this post interesting, as I take a journey of taking back the layers of many traditional strategies, indicators and the deeper world of maths, I am doing this to try help new traders actually get somewhere! So please give me a like and a follow, I want to expand my reach here on tradingview :) All the best ZenFlo.
Education
by ZenFlo
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