Stop loss order is the order that automatically closes your trade once it reaches a specified price target. Learn all about it here. Table of Contents: 🔹What Is a Stop Loss Order? 🔹Why Stop Loss Orders Matter? 🔹Setting Stop Loss Levels 🔹Types of Stop Loss Orders 🔹Adjusting Your Stop Loss Orders 🔹Summary In trading, reducing risks is oftentimes all that matters...
Definitions Buy call option – a stock option is the right to buy a stock (but not the obligation) at a certain price for a limited period of time. The price at which the stock may be bought is called the striking price. Three terms describe the relationship between the stock price and the options striking price: At the money / In the money / Out of the...
Diversification is a market strategy that enables you to spread your money across a variety of assets and investments in pursuit of uncorrelated returns, hedging, and risk control. Table of Contents What is portfolio diversification? Brief history of the modern portfolio theory Why is diversification important? An example of diversification at work How to...
Here is the 5 TIPS TO DO with your mistakes: 1. Acknowledge Your Errors So often, we say things like, “It’s unfortunate, but market goes opposite me” or "SEC lawsuit crashed prices, so I lose" But blaming other people or minimizing your responsibility isn’t helpful to anyone. Before you can learn from your mistakes, you have to accept full responsibility for...
Hey! When we start trading we want to make a lot of money and became millionaires by the end of month. This awesome motivation could be cut off easily without following simple plan and strategy. When I started trading I entered only with 100$ account and loose it all within a month. I didn’t payed attention to my personal financial plan and rules, which cost me a...
Hey guys! Do you agree with me?! It's easy to become charmed by the prospect of making rapid money in the financial markets, yet trading makes almost no one rich – in fact, many individuals lose money* If you like my graphics, please use Like button 💙💛 * 90% of traders losing money, only 10% get profits. Why? Here is 3 reasons: 1) Most traders Enter A...
DAY TRADING WHILE HOLDING A 9-5 JOB Embarking on the exciting journey of day trading while managing the demands of a full-time job is indeed a challenging yet achievable endeavor. Thanks to the rise of user-friendly mobile applications offered by trading platforms, individuals now have the power to execute trades seamlessly from various locations. This creates...
The Triad of Successful Trading: Strategies, Psychology, and Risk Management. Introduction: In the dynamic world of trading, achieving success is a multifaceted challenge that requires a comprehensive approach. While many enthusiasts focus primarily on trading strategies, it is crucial to recognize that a holistic approach, incorporating trading psychology and...
Protecting Your Investments: The Art of Setting Stop Losses 📉💰 ✅Setting stop losses is a crucial aspect of risk management in the world of investing. Whether you are a seasoned trader or just starting out, understanding how to set stop losses can help protect your capital and minimize losses. In this article, we will delve into the intricacies of setting stop...
1. Study. Learn how financial markets work. Years ago I took Khan Academy's free courses on the financial markets. It really helped reinforce what I already knew, taught me new stuff and solidified my confidence in understanding how the financial markets work. Here's the link: www.khanacademy.org Learn the basics of Technical Analysis. For this part I read...
Moving averages (MA) serve as foundational tools in technical analysis, offering insights into market trends and potential entry/exit points. This article delves into the comparison between two primary types: Simple Moving Averages (SMA) and Exponential Moving Averages (EMA), providing traders with a comprehensive understanding of their differences,...
Margin trading stands as a fundamental concept in the world of trading, offering opportunities to amplify potential gains but also carrying increased risk. This article is a comprehensive guide to understanding the basics of margin trading, exploring its mechanics, implications, and the vital role it plays in financial markets. Understanding Margin Trading...
In the bustling realm of Forex, a single minute carries an abundance of activity, steering markets through rapid fluctuations and intricate maneuvers. Understanding the flurry of events that unfold within this brief window is pivotal for traders aiming to capitalize on these micro-movements. This article provides an insightful exploration into the dynamics of a...
In the dynamic world of forex trading, the strategy dilemma often prompts traders to ponder whether to adapt and change tactics or remain steadfast with their initial approach. Let's explore the implications of altering strategies compared to the outcomes of sticking to one method in the pursuit of trading success. 📈💡 The Strategy Shift: First Trader Changes...
Hey traders, In this post, we will discuss 10 divine rules that every trader must obey: 1️⃣ - Accept that risk and losses are a necessary part of trading. Even though most of the traders are looking for a holy grail, for a system that produces 100% win rate, in fact, losses are inevitable, they are part of the game. No matter how good you are as a trader,...
Hey traders, Like any discipline, consistently profitable trading requires many years of practice. In this post, we will discuss the only proven way to become successful in trading. 🔰First, let's start with the axiom: there are no inborn traders, trading is a skill, a skill that can be learned. Though talent may help you in some manner it does not guarantee...
Hey traders, One month ago I wrote an article about the importance of a trading plan. Now it is time to discuss what should be inside your trading plan. Before we start let me note that a trading plan is a very personal thing and depending on your personality you may have some other elements. In this article, we discuss key elements that must be in every...
How long to hold your trading position? Everything depends on your trading style. In this post we will discuss the preferable holding period for your trading positions. First, Let's define 4 main trading styles: Scalper, intraday trader, swing trader and investor. One of the core differences between these styles is the time horizon of their predictions of a...