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Trading Plan

The importance of sticking to the plan 👊👌As traders we are our own worst enemies! A common theory with trading is as follows. 10% is having a good strategy, 30% is having good risk management and the final 60% is psychology. If we as traders fail to address the final psychology part of the sentence above then we as traders will fail in the markets. The chart shown in this idea is EURGBP working the 30 minute time frame. The strategy is a rules based mechanical approach working a 1:1 RR to fixed stop loss and take profit targets. I know I have a proven edge with this strategy as with all my ideas the built strategy tester report is at the foot of this idea shows the strategies credentials. Position sizing is correct I trade this strategy on a stand alone account for this pair and I'm happy to risk 2% per trade of my capital from said account. So where does the psychology part come in to all this? The emojis on screen show the emotions I would of been feeling with this trade once upon a time! An emotional roller coaster! The chart shows three trades. A short which hit TP followed by a long which hit SL. Then the trade I'm using for this idea which lasted a full 13 days! But this is where sticking to the plan and the rules I set help remove that emotional roller coaster. Not sticking to that plan could of created many outcomes. I could of closed for less profit than intended as part of the plan or worse still could of cut my losses only for the trade to go on and hit TP target. The above would of then led to more emotions thus effecting my future trading decisions and choices. With each trade I enter I am comfortable with said outcome whatever that maybe. That comes from trading a proven strategy, having correct risk management and then by sticking to the rules of the trading plan for the strategy. Sticking to a plan removes any subjectivity and helps take care of the psychological side of trading. I even automate my strategies now and not checking trades every minute of the day has helped removed all those up and down feelings the emojis on the chart represent. I'll end with one final thought patience has to be part of your plan. The markets take from the impatient and give to the patient ones among us. ------------------------------------------ I try and share as many ideas as I can as and when I have time. My trades are automated so I am not sat in front of a screen daily. Jumping on random trade ideas 'willy-nilly' on Trading View trying to find that one trade that you can retire from is not a sustainable way to trade. You might get lucky, but it will always end one way. ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. The stats for this pair are shown below too. Thank you. Darren
Education
by pow_removetheguesswork
38
Insanity... the thing most traders do (intro)This is a short intro to a major problem traders face... in a longer video, coming out tomorrow most likely, I will explain more on how to stop being an "insane" trader and take control of your trading results by working on the most important person in (your) "room", which is YOU! Just how important are YOU to yourself? take any picture where you are with the people you love the most and look at it, the person you will first search in the picture is you... so I rest my case. Anyway, this video might wake you up a little, if it doesn't the full version will!
OANDA:US30USDEducation
by PrimedGroup
Fibonacci Extension Tool (How To Use)How To Use The Fibonacci Extension Tool: Bearish example (like Chart) A) Highest Top Point B) Reversal Bottom Point C) 2nd Highest Top Point (Note) Can NOT be higher then A Point. D) Will be 3 points or targets, 1st target at 50% extension, 2nd target at 100% extension & 3rd target at 150% extension. The rules for take profit orders are very individual, but most traders use it as follows: A 50, 61.8 or 78.6 retracement will often go to the 161 Fibonacci extension after breaking through the 0%-level. A 38.2 retracement will often come to a halt at the 138 Fibonacci extension. Fibonacci extensions to the price moves. As you can see, the extensions provided great places for take profit orders. Conclusion: Fibonaccis are multi-functional This demonstrated how to use Fibonaccis efficiently in trading. Don’t make the mistake of idealizing Fibonacci s and believing that they are superior over other tools and methods. Fibonacci is a great tool to have and can be used very effectively as another confirmation method. Whether you are a trend following or a support and resistance trader, or just looking for ideas how to place your take profit orders, Fibonaccis are a great addition to your arsenal.
Education
by Anbat
Bullish Golden Cross (How To Trade)What Is a Golden Cross? A golden cross occurs when a faster-moving average crosses a slower moving average. Sounds simple enough right? However, the key point is the moving averages which constitute the cross, and the direction in which they cross. Specifically, you need the 50-period and 200-period simple moving averages. Anything other than these two periods and it is not a true golden cross. Golden cross happens when a 50-day moving average for an asset trades higher than a 200-day moving average. In other words, prior to the the cross, the 50 moving average would have been below the 200 sma. You can use either MAs or EMAs- your choice. What are the three stages of a golden cross? 1) As the downtrend in the stock market ends, the short-term 50-day moving average moves below the 200- day moving average. 2) In a crossover, when a stock recovers, the short-term moving average crosses over the long-term moving average. That’s where the term golden cross comes from, when the two average lines cross on a chart. 3) In the last stage, the short-term moving average continues to move upward. That’s usually a sign that the market is on a bullish trend. "All big rallies start with a golden cross, but not all golden crosses lead to a big rally,” Golden crosses are not a definite timing signal to buy. “They tend not to be timing signals, but more for confirmation of a move that has been in place.” Look for both 50 ema and 200 ema to be close together, confirming indicators like Demand or Supply zone, pivot points, pair, price, session & time.
Education
by Anbat
Bollinger Band Indicator (How To Use)The Bollinger bands Indicator is a forex trading indicator. This Bollinger bands Indicator can be used to find out the trading entries and the exits in the market trading. This can be used with any type of currency pair. In market trading, the Bollinger bands indicator is used to identify price range levels. The Bollinger bands indicator can be defined as a price letter that has both price upper and lower levels that generate better trade. The standard deviation method is developed in this Bollinger bands indicator. To calculate price levels, the Bollinger bands indicator uses two types of variables in the indicator chart. The period and the standard deviation are the names of these variables. The time period or time frames that this Bollinger bands indicator uses are called to as the period. Enter and Exit when price action hits the outer edges of Bollinger bands and make a Engulfing, Harami or Pin-bar reversal candlestick pattern
Education
by Anbat
1
FOMO (Fear of Missing Out) Biggest problem with beginner tradersHi Everyone, today I wanted to ramble a little more on something that I struggled a lot with and still do to this day, that is the fear of missing that one big trade that your one hundred percent sure that this is the one that will make you a millionaire. This is where the problem comes in many people think of trading as such a simple thing but also over complicate it at the same time. When you ask another trader they may be using ten different indicators on their chart at once they will tell you that it helps them time the market better and is their way of approaching the market, this approach is perfectly fine if that your personal style. But, on the flip side if you ask that same trader if they are willing to create a simple trading plan to make sure that their emotions are in check before taking the trade and this is the trade they really want to be taking. A simple trading plan can really make a difference in anyone's trading career but this is not the main focus for today, I will be posting more on a strict trading plan to do exactly that, keep you in check and allow for your edge in the market to really reveal itself. Fear of missing out, this is something that many of us have personally struggled with whether we like it or not some of us including myself even struggle with it to this day. This is when you are looking at the chart and without doing a full analysis on the pair you go into it already having a bias on the pair and this will only allow you to see the market in one single way. This causes you to think there is a good trade but in reality there is nothing really even going in your favor, but you think oh no I know for a fact this thing is going down and I need to get in now for a better risk to reward ratio. This causes you to be blinded to what is actually happening in the market and leads you to taking a stupid trade that could have easily been avoided. Some of you may be following me already and have already seen some of my analysis and post these previous few weeks, while a lot of them went against my initial analysis I did not take half of the trades on my account. For me to take a trade I want to have confirmation which would be a close above the zone of recent highs or lows and after that close confirming that there is more momentum in my favor, only then will I actually take the trade. I have this "Rule" in place to allow for better trades and try to limit me to my stupid trades due to my fear of missing out. I even started to literally sit on my hands or not even look at the charts for a while waiting to see if my trade that I would want actually lines up or if it is a false breakout, waiting for that confirmation has allowed for me to take a lot less losing trades and this is something that I would highly suggest doing in your own trading strategy as well. You should be able to close your eyes and imagine your perfect setup right now, and that is the only conditions you should take a trade under. If you are taking trades based on emotions that is never going to go well, so many different things can happen in someone's life that can effect their personal trading routines and overall psychology. It is very very very important to have rules set in place to help better your trading and help you along that journey of becoming a break even trader and even a future profitable trader. While this will allow for a person's strategy to really thrive, risk management and the proper set up rules will really improve any trading strategy no matter how good or bad it may be. Thank you all for the support the trading community has already showed me while I have been trying to share my trades for my own personal benefit and the benefit to whoever may take a peek at my information. Hope you all had an amazing trading week and I will be posting more about suggested topics or whatever I feel like writing about that day, hope you had a good day. Thanks again, KeySlot
BITFINEX:XRPUSDEducation
by KeySlot
Trading PillarsFirst pillar: learning to trade is hard work, but it can be taught. 1) The successful trader can be modeled and taught to other people. 2) Learning to operate requires as much education as any other profession. Second pillar: Know yourself. 3) You need to find a trading system that suits your needs 4) To achieve that, you need to know yourself: a) Your values b) Your strengths c) Your weaknesses d) Meaningful beliefs (Spiritual, yourself, market, system) e) Advantages f) Trading weaknesses 5) You can only exchange your beliefs about the markets, not the market itself. Know and understand your beliefs. 6) The development of the system is 100% psychological: beliefs, mental states and strategies. 7) You must know your personal criteria in order to operate with a trust system. Third pillar: Errors 8) A mistake means not following rules. 9) you are responsible for everything that happens to you. When you understand this, you can correct your mistakes. 10) Avoid repeating the same mistake. Self-sabotage. 11) An operator who comments 10 erroneous operations has an efficiency of 90%; But that 10% drop in efficiency might be enough to make you a losing trader. Follow your trading plan. Fourth pillar: Position size objectives and strategies. 12) 50% of system development consists of thinking carefully and clearly defining a set of written goals: desired profit, maximum acceptable reduction, and how important each is. 13) Meet your goals through position size strategies. 14) Can you perform 10 operations without errors? 15) You must know your mission / purpose in life and incorporate it into your trading. 16) You need to know your financial freedom number (Passive income per month minus expenses) Fifth pillar: Probability and risk / reward. 17) Never open a position and know the initial risk. 18) Define your success as multiples of your initial risk: Risk / Reward → R:R 19)% constant losses. All operations must have the same price. 20) Make sure the earnings on average are more than 1R. 21) Never trade unless the R:R of this trade is 1: 2 22) Your performance has to do with controlling risk and managing positions through exits. Sixth pillar: Market systems and types. 23) Understand how your trading plan works in each type of market: a) Volatile bullish, quiet bullish, laterally volatile, laterally calm, volatile bearish, silent bearish. 24) For each type of markup, create a large sample size to estimate what the plan will be, i.e .: Entry, exit, and profit-taking strategy.
Education
by Ed_Ale
AUTOMATED TRADING BOTS: How to profit with Tezos.Tezos is one of the best token for our robot. Our robot mainly uses the DCA (dollar cost averaging) trading method. If the price drops, instead of the Stop loss order, we have a Buy limit order. This will also cause the Take profit value to drop and approach the current price. If the price falls and falls, the robot buys and buys. This keeps the Take Profit lower and lower. After that, the price of the token rises and our trade ends with Take profit, which is not far from us thanks to constant and precisely predefined purchases. The XTZ / USDT currency pair is suitable for our demonstration. You see very high volatility. It is through volatility that our robot can be profitable. If the price still went in one direction without frequent fluctuations and without "waves", the robot would earn very little. We need great volatility for big profits. Volatility in the TradingView platform will be helped by the Historical Volatility indicator. This indicator often (on this time frame) intersects the value of 50.00, which is rarely affected for low-volatile currency pairs. For example, you would look for Bitcoin very bad around 50.00 on this time frame. The key to our profitable trading bot is volatility! At a time of market colapse, when almost everyone is going through and positions in the Futures markets are being liquidated on a large scale, we are EXTREMLY profitable thanks to our robots. Of course, it is very important that you know how big the position is and how often, or at what intervals it is necessary for the robot to buy more. In no case is every setting of the robot profitable, on the contrary, setting up a profitable robot is not easy. You will learn how to set up a robot to be constantly profitable in our Academy. PS: One of the best things about trading with robots is that you remove all emotions and decisions. We wish you a nice day. UCT team.
Education
by UltimateCryptoTrader
YOUR SUCCESS IN TRADING | Expectations VS Reality 💰🤔☠️ Hey traders, Being a full-time trader & running a coaching program for the last three years, I met hundreds of struggling traders from different parts of the globe. Guess why the majority of them could not make it? What was the main reason for their bad luck? It wasn't their trading strategy, nor their technical analysis. The source of their failure was the expectations. Trying different trading strategies, following the signals of different signal providers, these traders expected quick gains and exponential account growth. They were actually in a state of a constant search of a holy grail, of a magic wand that will open Pandora's box to them. Just a single losing trade made them skeptical while the first losing streak made them drop the strategy and return back to the search. They keep spending thousands of dollars on trading strategies promising them close to 100% win rate. There is this common mantra, the stereotype about a pro trader: a guy with 4 screens making a quick buck on each and every market rally, driving Lambo, and living in a mansion. Unfortunately, the reality is different. Ahead you will encounter loneliness, losses, pain, and disapproval. The road to success in this game is long and dangerous. Get ready to see the skepticism in the eyes of your relatives and friends. Many years and tons of money must be spent in order to make it. But even mastering the system, becoming a consistently profitable trader you will not constantly beat the market. Your wins will just slightly outperform your losses giving you the means for living. If you are ready for that if you are courageous enough to start and to proceed no matter what, you are already one step ahead of the majority. Be prepared to work hard and practice much, set a correct goal, and sacrifice your presence for the sake of an independent and prosperous future. Are you ready? ❤️Please, support this post with a like and comment!❤️
Education
by VasilyTrader
145
Entries live examplesHere is an update to my previous idea on entries. I kept rambling on and on so this was too big for an update. Since you can't possibly cover the entire subject even in an entire book, let's go with 2 examples live, not in hindsight. They might (probably maybe even) just fail. Maybe I'll start a new idea with more 3-4 new ones, so we can look at entry + getting stopped (-1R) + trailing + target etc. Or maybe markets start trending a lot and I'm absorbed and can't be bothered posting. I don't know. Don't have a crystal ball. I want to update this with 2 live examples, and see how they go (probably both lose) 1- Here is an example where you only need a 15% winrate to make money. Price sometimes consolidates, stays within a range, and then goes down, at least often enough to breakeven right? Oh ye this goes beyond entry but basically before analysing much, the "pattern" or "price action" in itself should at least breakeven, it should have a chance to work. The risk being limited is what matters, like George Soros with the bank of England, he entered where he was close to "being wrong" (without being greedy trying to enter 5 pips from stop), same with Buffett, he enters when things look bad and could be about to turnaround or it could just be "the end" so he enters close to "being wrong". I don't like the words being wrong because this is not what it is, call it instead "trade invalidated". If I say something happens 20% of the time and it happens 20% of them that does not make me wrong 80% of the time, but rather right 100% of the time. This is something I did not mention before: as far as I, and everyone who isn't a troll, can tell: the price in sideways is random. So it does not matter where you enter in that area. How dense is it to try to catch the "magical perfect entry" in a RANDOM price action? You don't know where when why the price will go. If there was a magical entry then people could trade these sideways and make money, and to my knowledge the only people that do are retail day traders on the internet. This is not the best setup, but no setup is ever the best anyway so... Disclaimer: I am short NZDUSD. Net position will be short EURUSD actually XD But the EURUSD price action was just bad ye I don't know where to enter so it matters. The NZD isn't looking that bad after all. The EURUSD I think goes down, but chart looks disgusting, no way I can tell where to enter. Random sideways in a small area versus random sideways in a giant area. The different is risk to reward. Find the tool to express your ideas with the best RR. Now there are some added spreads but it's fine, not like I day trade with a stop 3 times the size of the spreads. And I might rotate back to being short the NZD, I kind of adapt all the time. If I get stopped on EURNZD and I have no good opportunity to short EURUSD or my opinion of it going down diminishes (it's not binary by the way you have to think in probas), and NZDUSD continues down, well in that case I won't be short EURUSD anymore, and might even increase my NZDUSD size (but only when a pullback happens). So ye that part is binary for me, and for Warren Buffett too by the way: Me: No pullback I don't buy WB: No discount, no PE below 10 (or something) = I don't buy. But I don't care about catching the very bottom or having an exact precise entry. Since Warren Buffett does it that way, and made billions, I think it's safe to say it's ok to do it that way too, even if he traded "investing" markets and we are talking about "hedging" markets here. 2- FOMC on the 22. Might have to wait until then, or Monday at least (market could move Monday in anticipation). Here I think the entry matters :p The number might not (oh yes actually it does) but the date does (or more). Odds of it being a coincidence are really low. Statistically this has absolutely NOT been a coincidence. Here I'm supposed to emphasize the "been", and go "past performance does not bla bla bla" I mean... If I have to explain this in the first place... If an "individual investor" needs this explained to them, well this is the wrong job for them. This is so trivial. Ye, the stupid pattern might repeat itself, I'm willing to risk 1 to make ??? 10? If it keeps going? Past bull markets lasted 1.5 - 4 years so statistically I could make 10 or more. I don't have any clear stats on this pattern, how often do they repeat themselves, would be too simple, anyone with more than 2 fingers and the ability to spell their name and count to 10 would make money. Which is not everyone, USA universities have "special classes" for "high school graduates" that are illiterate and have a lower math level than ravens. So... with everyone becoming suprisingly dumb, AND the "dumb money" getting interested in the market... my odds of winning and making money go up. There is much more to take into account, like the FED manipulating markets. But here the entry matters. Like when you have something that had 1/65 million odds of happening, you can't ignore it. You could say "hey maybe they created this on purpose to trick people"... That isn't a real thing. By experience it does not happen, again, statistically. FOMC is the 21-22. FX & commodities should move too once "certainty" comes back. Inch'allah things get moving on the 20 (monday), but either way we should go allelujah on the 22. Praised be Yahweh for making some people smart and some people dumb. And Dionysus if things don't work out.
CME_MINI:ES1!Education
by MrRenev
2
When to enter? Does it even matter?With value investing everyone knows: Buy when there is blood in the street, when a good company has a P/E ratio of maybe under 10. But with currencies, other than the advice "50% to 61.8% fib" and a whole lot of troll "buy every bottom sell every top with the magic indicator or magic drawing on the chart" there is no common knowledge. We can look at this recent example where the price dropped, went sideways, and then dropped hard. We could keep looking at winning examples when selling or buying at the top of these bands or ~61.8% retracement The only way to know how good they are is by backtesting a large number and writing down the stats. But are there other ways to enter? Rather than write an entire novel with chapters I will simply go through a list of screenshots Some say it doesn't matter where you enter... It does and it doesn't, depends what you mean by that. First Second Third Fourth Fifth Sixth Seventh Eight Ninth Final This is all simplified to make my point, or points I guess. So you can't just say "entry doesn't matter". People that tried trading, failed, got into "holy grail" safe good boy passive S&P in the last 70 years averaged bla bla bla wake me up, they're the ones saying this. Oh so it does not matter if they buy a stock at a P/E of 8 or 280? Of course it matters!!! Entry matters! BUT where you enter EXACTLY does not matter. I'm not sure how to put it, but go through the examples and you see what I mean. Sometimes it matters, but even if you miss it there are other ones, and these entries are going to be at least a small area "of opportunity" anyway. Well it's more complicated than a "yes" or "no". There are plenty of ifs. And plenty of ways to approach this. Look, Warren Buffett bought too early or later and sold too early all the time. And? Most famous investor in the world. Is there an optimal super entry that gives better results than anything else? Statistically there has to be one, so yes. If we spend ages making stats and we find it do we know it will remain this particular one? Probably not... Can we find it without it just being hindsight bias? Probably not... Would having the mighty perfect entry (I didn't say find every exact bottom, that's not actually possible) make a big difference to our results? Lol you might go from 20% returns to 20.5%. Probably even less. The endless search for the holy entry newbs seem to all be obsessed with... Fool game. It's same as with video games, Starcraft, Lol, Dota, W3. Or chess... Newbs go "I will farm for 40 minutes full eco ignore military, full Nasus q, full catch his pawns, I'll be a monster and they'll see", 15 minutes later "Ok tough guy just wait late game you will feel sorry", 5 minutes later "Victory!" or "GG easy noob", 1 minute later "Report Nasus useless afk trash ebay account". Haha I laugh every time. They really make all the same type of newbie "late game" and "magnet logic" mistakes, 80% of retail FX goes into "day trading" because "hey I figured out I'll get more trades and therefore grow my account faster duh", "Hey you can't lose if you don't sell", "Hey I have this brilliant martingale average down", "Hey wassup wassup wassup I found a trick", "hey if I go for lots and lots of little wins, take my profit fast I'll win small but very often and scale", "hey if I run conservative robots that only return 1% but I run 500 of them...", "hey if I add all these conditions". What a circus. Miss the good old days. Can't humiliate noobs with trading their account is secret, they open their mouths when they get lucky then vanish, and it's not a 1 v 1 or 3 v 3 or whatever it's a 1 v whole market. Even if we cooperate and share ideas it's still a 10 v 10 million or idk. There is however the "bull vs bear" thing. But the Bitcoin bulls from 2018 from 15k to 3k almost all left (losers) and the few ones that stayed pretend they won (or they're too dumb to figure out they were on the wrong side of the market). S&P 500 bear tears are pretty delicious at the moment by the way. You both can say entry matters and entry doesn't matter and be mostly right. Don't waste too much time trying to perfect it. Calculating max risk, probabilities of drawdown, when to exit, when to hold, when to add, how to trail, correlations, those are at least as important as the entry. What I can say is entering very early, far from the stop, out of fear of missing out is bad, and entering very late for a giant risk to reward is greedy and bad. Around 50% retracement is often a good compromise. Stats will help choosing areas and price action (stats such as: over the past 10 years on breakouts would it work out to enter in the big red candle? How about on the previous low? How about 61% fib when the price reacts near the previous low? Etc). Entry doesn't go alone, for example when you average in a sideways within a trend well you'll want to move your stop each time you add according to your average price. That's a whole other subject. Coming up with a whole strategy even simple and even once you sort of understand the markets and have the basics of price action is still clearly going to take a couple hundred hours at best... Just writing this took me a little over 2 hours, and I rushed it, and I obviously don't start from scratch I researched all of this. Just writing an intro like this about entries and stops and targets and trends and pullbacks and breakouts and timeframes and risk and all the other stuff, not even with stats, that alone probably would take 100 hours by itself. How long it takes to convince yourself to hold winners and cut losers and quit a gambler mentality however = infinite time, just quit now you'll save time (thousands of hours!), investing is not for you. Oh and finally, an entry "signal" is a joke. You don't go from 0 to 100 "wow this would be a great buy because of this entry", that's beyond ridiculous. You are supposed to be watching something before getting in and waiting on certain conditions to enter (pullback after breakout), never heard of anyone that had "entry signals". When George Soros went short the GBP it was "because of the entry" but he had a whole theory. The "entry" wasn't a magical signal it's simply he was close to the floor, well ceiling, and had a big RR with big odds! And he explains how "I was selling weeks before", he actually "dollar cost averaged" as I explained. He didn't wait for a certain magical point, he wasn't greedy waiting for a 1 pip stop.
Education
by MrRenev
9
How To: Build Your Own Private Signals Service Using TradingViewMany traders - especially beginners - rely on others to tell them what stocks to trade and when to place their entries and their exits. What I want to show you is not so much how to trade or what strategy to use, but once you have found a strategy that YOU like, how to set up this strategy in TradingView and get automated alerts when a stock meets your criteria. This video covers: How to setup your TradingView Chart How to add built-in or custom TradingView Indicators to your chart How to customise those indicators How to find stocks that match your criteria using the TradingView Screener How to save your set up How to set up a TradingView Alert How to get alerts sent to your phone or email or screen How to check TradingView News to see what catalyst might have caused the alert How to use TradingView Text Notes Hope the video was useful.
NASDAQ:OCGNEducation
by zAngus
66
1-2-3-4 Reversal Trading Strategy (Part 2 of 2 Bearish) 1-2-3-4 Forex Reversal Trading Strategy A 1-2-3-4 reversal chart pattern is build up of 4 definable points, known as point 1, 2 , 3 and 4. A typical 1-2-3-4 chart pattern is best traded after a strong currency pair up - or downtrend and can be defined by an easy set of trading rules. A trader can confirm the reversal trade using a technical indicator such as DMI or MACD. (or other ones) 1-2-3-4 Basic Rules for Short Trades Point (1): The high in an up trending currency market. Point (2): A downward correction in the up trend, the lowest bar in the correction before the price moves back up to point (3). Point (3): The high in the move up from Point (2) but a failure to make a new higher high(Point 1). Point (4): Go short 1 pip below point (2) Daily chart of GBPAUD shows and example of a sell 1-2-3-4 Reversal Trading Strategy, with a 1: 5+ Risk Reward setup. 50 pip stop and 285 target. This would have been a six day trade, but can use this same strategy on lower time frames. I use the Fib Extension tool for profit targets, help alot.
Education
by Anbat
Weekly Market Maker Cycle (Go With It)Weekly Market Maker Cycle: On a 1 hour or 4 hour chart, you should be able to find this weekly market maker cycle. If you know what Big Money/Smart Money is doing, trade with them. The cycle starts on Monday and ends on Friday, MM (Market Maker) will mostly trap traders on Monday, everyone is back on screens and is expecting a highly productive week of trading. MM makes what we call a stop hunt, induce traders to take wrong direction. So MM will reverse price action against everyone. This cycle has three stages: 1) We have accumulation where the market maker accumulates contracts. 2) Next we have manipulation, where the MM manipulates price against the traders that have been trapped on the contracts MM have accumulated. 3) Lastly we have the trend release, where the MM releases the intended trends after every stop loss has been hit. The MM has three weekly templates that they follow, but they wont make this very obvious for everyone to see. Its there in front of your eyes its just that you don't pay full attentions to what is really happening on chart, instead you are being fed with useless indicators and zones. At times, MM may start trap on Friday, setting bait for traders to become victims next week. MM do that so on Monday, MM doesn't start on a empty slate, but with traders trapped from previous session or week. If you understand price action you can see this trap by the MM. Forex is a physiology game, which most realtor traders lose.
Education
by Anbat
2
Without this, you will not become a profitable trader Yes, this is risk management. Without proper risk management, your trading strategy based on levels, indicators, patterns, etc.will not make any sense. Any trading strategy should be supported by strict risk management, where the maximum allowable losses per transaction and the risk ratio are observed:the profit is always more than 1/2. You don't have to be right in every trade. It's just that your profit in successful transactions should be greater than the losses in unprofitable transactions. This correct use of risk management will lead you to success. ____________ The example shows one of the real scenarios of any trading system where the rules of risk management are observed: Deposit of 10,000$ The risk per transaction is -1% (or -100$) Total trades: 4 profitable trades = +14% 10 losing trades = -10% Total: +4% (or + 400$) Even though only 30% of the total number of profitable transactions, we still have a profitable result. Learn risk management and become a consistently profitable trader. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by UnitedSignals
128
Comparing hedge funds to retail investorsHere are some of the average profits and losses of the client of a Forex broker: From the 01/03/2014 to the 31/03/2015 FXCM accounts on the GBPJPY: - Average winner was 39 "pips" ("percentage in point" that are not percentages in points - Average loser was 64 "pips" In that period the GBPJPY ATR was: - On daily candles 140 "pips" - On 12 hour candles 90 "pips" - On 4 hour candles 55 "pips" So on GBPJPY their average "investment" was held for about 4 hours. Remember the few investors holding for weeks or months push the average tremendously up. And on USDCAD: - Average winner was 61 "pips" - Average loser was 75 "pips" In that period the USDCAD ATR was: - On daily candles 75 "pips" - On 12 hour candles 55 "pips" - On 4 hour candles 30 "pips" So USDCAD was trending and clearly non-daytraders moved the average up, but still, it's the same on all currencies, a total disregard for the range (and safe to assume market conditions or structure) they all always go for "40 pips" "winners" no matter if that takes 1 hour or 16 hours. Looking at profits assuming everything else is equal (lower timeframes don't add randomness), what would be most optimal? Assume making 1R every 4 trades Spread = 1.5p => -6p/4t Here is the cost to performance: 15 min R = 3p ==> - 200% 4 hours R = 10p ==> - 60% 2 days R = 40p ==> -15% 1 week R = 75p ==> -8% 1 month R = 175p => -3.4% 3 month R = 350p => -1.7% 1 year R = 800p => -0.75% There is a big advantage up to 1 week - 1 month, then past that it is not as significant. Of course there is an optimal holding period, or at least optimal holding periods, and that is set by the market. Hedge funds have all sorts of regulations, as well as the 2/20 scam. So even if the cost of their investing is -3% you can add 33% in fees. And then add heavy taxes but that's the same for all short term. Which is why they are bad. Especially since the dot com bubble, before that hedge funds actually did slightly better than the S&P 500 (the average of hedge funds including the baddies). Of course 99% of day traders lose money so they do not actually make 1R every 4 trades (how could they when they go for a risk to reward of 2:1?) which means the cost to performance is above 100%. Placing money with a hedge fund is throwing money out of the window and hoping the wind will push some back in, placing money by oneself as an individual investor is throwing money directly in the fire after pouring oil on it to be absolutely certain to never see it again. Maybe they all have a crush on their broker. It is said that the more retail traders join the more money hedge funds manage to make, I do not know if this is true. What is confirmed is that HFT firms, market makers, brokers, and probably quants too, make money on the back of these "individual investors" that are in the vast majority day traders. There is not much more to it. Brokers have tried over and over to gain an edge but there is none. Academics have even on occasion cancelled papers because "the data was as random as it gets". Retail investors have 0 predictive abilities, there is absolutely nothing to extract. If the market goes up, they'll be selling, if the market goes down, they'll be buying, I could code them in 1 line: If (close > open) then sell (close-open) * (LOTS_CONSTANT). Tada! Nothing special here... And nothing new, same thing as centuries ago they are dumb money that goes in the wrong direction fomos and focusses on very short term.
Education
by MrRenev
6
8 TRADING HABITS OF SUCCESSFUL TRADERS👩‍💻👨‍💻 Hey traders, Consistently profitable traders have a lot of things in common. Watching how they act and following their ideas & thoughts we can spot a lot of commonalities among them. In this article, I have collected 8 trading habits that a trader should have to become successful. 1️⃣ - Continuous Learning 📚 The markets are infinitely deep in their nature. Trading & constant monitoring of the market always unveil new, uncharted elements and things. With 8 years of day trading, I can't help wondering how many new things I learn each and every day. With continuous learning you evolve, you become better and it improves your trading performance & results. 2️⃣- Emotional Stability 🙏 The market is a wild beast who always wants to bite us. And most of the time it manages to do that: drawdowns, losing streaks... Those who trade for at least 1 year know how unpredictable and unstable the market is. A perfectly looking trading setup can easily turn into a big losing trade. Of course, that is painful, of course with more and more losers, the anxiety will pursue us, the stress will overwhelm us. Only by remaining stable and calm, you will manage to overcome the negative periods. Learn to control your emotions, learn to take losses! 3️⃣ - Constant Practice 💪 Pro traders never stop, they always watch the charts, they always monitor the prices, and follow the market. Trading requires constant TRADING. Just spending one single week on a vacation without charts, you can not imagine how hard it is to return back. The trading skills must be constantly maintained. 4️⃣ - Trade Journaling 📝 Pro traders always assess their past performance & results. They track each and every trading position that they opened. Both losing trades and winning trades require analysis and observations. Only by studying the past results the trader can improve his trading performance and evolve. Only by identifying mistakes & peculiar commonalities, the trader learns to lose less than he makes. 5️⃣ - Anticipation of Different Outcomes 👁 Everything can happen in financial markets. Pro trader always reasons in probabilities. He knows that 100% chances do not exist. Accepting the probabilities the trader (even while opening the trade) is always ready for completely different outcomes and accepts each and every move of the market. 6️⃣ - Flexibility & Adaptivity 🕺 The markets are always changing. If you were trading before COVID crisis, I guess you feel how the reality among us shifted. With fundamental changes in our daily lives, the markets changed as well. It is hard to say what exactly has altered though, however, we all can feel it. In order to survive in a constantly changing environment, one should adapt. One should look for ways to be one step ahead. To beat an evolving market, the traders should constantly polish their trading strategies, drop the things that don't work anymore, and adopt the new, reliable ones. That is the only way to stay afloat. 7️⃣ - Selection of Right Markets 📈 The trader always knows what to trade and he always has a reason. He admits that some financial instruments are appropriate for his trading style while some are completely not. Pro trader does not wander around aimlessly from one market to another. He has a plan to follow and rules to rely on. 8️⃣ - Realistic Expectations ⭐️ Many newbie traders drop trading just because of wrong expectations. The desire to get rich quick, to catch 20/1 risk to reward trades without substantial losses is playing a dirty trick with them. The true trader is not greedy, in contrast, he is humble and the only thing that he wants is simply to win more than he loses and make that amount sufficient enough to have a good living. Adapting these 8 habits, you will see dramatic improvements in your trading. And even though most of them require a substantial effort and many years of practicing, trust me, it is worth it and it will help you in your daily life as well. Would you add some other habits to this list?🤓 Let me know in a comment section. ❤️Please, support this idea with a like and share your feedback in a comment section!❤️
BINANCE:BTCUSDEducation
by VasilyTrader
30
Fibonacci Extensions Part 5What Are Fibonacci Extensions? Fibonacci extensions are a tool that traders can use to establish profit targets or estimate how far a price may travel after a pullback is finished. Extension levels are also possible areas where the price may reverse. Key Takeaways: Common Fibonacci extension levels are 61.8%, 100%, 161.8%, 200%, and 261.8%. The Fibonacci extensions show how far the next price wave could move following a pullback. Fibonacci ratios are common in everyday life, seen in galaxy formations, architecture, as well as how some plants grow. Therefore, some traders believe these common ratios may also have significance in the financial markets. Extension levels signal possible areas of importance, but should not be relied on exclusively. The Difference Between Fibonacci Extensions and Fibonacci Retracements While extensions show where the price will go following a retracement, Fibonacci retracement levels indicate how deep a retracement could be. In other words, Fibonacci retracements measure the pullbacks within a trend, while Fibonacci extensions measure the impulse waves in the direction of the trend.
Education
by Anbat
​​YOUR PROFIT FORMULA | Three Essential Ingredients 🤔💭💫 Hey traders, We must admit that it is phenomenally difficult to become a consistently profitable trader. This journey requires years of practicing and training, constant losses, and nervous breakdowns. If you are a struggling trader, if you are still looking for your way to succeed in this game, here is the formula that will help you to chase consistent profits. 💰Consistent profits = 📝Trading Strategy + 🤬Emotions + 📈Market Sentiment Let's discuss each element separately. 📝Trading Strategy: To be in profit in a long run requires an understanding of what do you actually trade. You must have strict and objective entry conditions. You must rely on the objective & verifiable rules for the execution of market analysis. You must have a plan to follow. A plan that is backtested and proved its efficiency. 🤬Emotions: Even the best trading plan, the most accurate trading strategy can be easily beaten by emotions. Emotional decisions such as revenge trading and early position close can easily blow the account of any size in a blink of an eye. The most disappointing thing to note right here is the fact that you can be taught how to execute technical analysis but you can not be taught to control your emotions. Your main enemy here is yourself and being in a constant battle with your greed and fear it is very easy to go broke. Only by being humble, disciplined and patient, you can successfully apply a trading strategy. 📈Market Sentiment: Mastering your emotions and having studied a trading strategy, it looks like it is finally the time to make money. However, occasionally the market tends to be irrational. Being chaotic and unpredictable, sometimes the market neglects every technical and fundamental rule. Crisis, euphoria: the reasons can be different. The fact is that such things happen. And it is your duty to learn to deal with unfavorable market conditions. 💰To become a consistently profitable trader, you must become the master of these three elements. Only then the doors to freedom and independence will be opened to you. ❤️Please, support this idea with a like and comment!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
51