EXPLAINED BASIC CONCEPTS OF TRADE📊
📈 Unleash Your Trading Potential with These Proven Strategies! 🚀
Hello, Aspiring Traders!
Are you ready to embark on the exciting path to trading success? Trading isn't just about making profits; it's a disciplined business, an art form, and a psychological challenge. The keys to success are deceptively simple but often overlooked.
✨ Trading is NOT Gambling!
Bid farewell to unrealistic expectations and the notion that trading is akin to rolling the dice. To steer your journey in the right direction, follow these steps:
🚀 Set and Maintain Risk-Reward Ratios.
Never risk more than 1% of your deposit on a single trade. Ensure control over your risk exposure by using variable lot sizes, regardless of market conditions.
🚀 Steer Clear of the "All-In" Approach.
Resist the urge to place your entire account balance on a single trade in the hopes of recouping losses. Trading is about learning, not desperation.
🚀 Safeguard Your Capital with Stop Loss Orders.
Utilize Stop Loss (SL) orders consistently. Avoid relying on manual closures, as emotions can lead to costly decisions.
🚀 Establish Daily and Weekly Loss Limits.
Set sensible limits. If you encounter three consecutive losses in a day, take a break. If your losses exceed 10% of your account within a week, step back for the following week. This break is crucial for your growth as a trader.
✨ Maintain a Calm and Collected Demeanor
Successful traders exhibit a unique blend of discipline akin to a robot and the intuitive faculties of a human. Remember, entering the market too early or too late is just as detrimental as being wrong. Maintain your composure:
🧘 Keep Emotions in Check.
Euphoria and panic are your adversaries. Emotions belong in the casino, not in trading.
🧘 Steer Clear of FOMO (Fear of Missing Out).
Don't trade out of fear or impatience. Premature entries driven by FOMO can lead to losses.
🧘 Forge Your Own Path.
Resist the temptation of herd mentality. Successful traders are independent thinkers.
🧘 Cultivate a Diverse Watchlist.
Focus on instruments with setups you understand work. Avoid inventing trades that don't align with your strategy.
✨ Consistency is the Key to Triumph
Steady gains are far superior to volatile boom-bust performances. Here's your roadmap to consistency:
📊 Discover Your Trading Strategy.
Thoroughly research and select a trading strategy that aligns with your personality and comprehension.
📊 Employ Paper Trading and Backtesting.
Test your strategy in real-time and refine it through paper trading and the analysis of historical data.
📊 Monitor Your Trades.
Maintain meticulous records to pinpoint your strengths, weaknesses, and recurring patterns in your trading.
📊 Codify Your Rules.
Establish a precise algorithm for your trading strategy to minimize emotional decision-making.
🚀 In Conclusion: Embrace the Journey!
Trading is a long-term endeavor, not a shortcut to wealth. Along the way, you'll face challenges, losses, and setbacks, but when you succeed, you'll unlock the path to financial freedom!
🙌 Show your support for these strategies with a LIKE and share your thoughts in the COMMENTS! Let's navigate the world of trading and reach success together! 🌟
Hello, Aspiring Traders!
Are you ready to embark on the exciting path to trading success? Trading isn't just about making profits; it's a disciplined business, an art form, and a psychological challenge. The keys to success are deceptively simple but often overlooked.
✨ Trading is NOT Gambling!
Bid farewell to unrealistic expectations and the notion that trading is akin to rolling the dice. To steer your journey in the right direction, follow these steps:
🚀 Set and Maintain Risk-Reward Ratios.
Never risk more than 1% of your deposit on a single trade. Ensure control over your risk exposure by using variable lot sizes, regardless of market conditions.
🚀 Steer Clear of the "All-In" Approach.
Resist the urge to place your entire account balance on a single trade in the hopes of recouping losses. Trading is about learning, not desperation.
🚀 Safeguard Your Capital with Stop Loss Orders.
Utilize Stop Loss (SL) orders consistently. Avoid relying on manual closures, as emotions can lead to costly decisions.
🚀 Establish Daily and Weekly Loss Limits.
Set sensible limits. If you encounter three consecutive losses in a day, take a break. If your losses exceed 10% of your account within a week, step back for the following week. This break is crucial for your growth as a trader.
✨ Maintain a Calm and Collected Demeanor
Successful traders exhibit a unique blend of discipline akin to a robot and the intuitive faculties of a human. Remember, entering the market too early or too late is just as detrimental as being wrong. Maintain your composure:
🧘 Keep Emotions in Check.
Euphoria and panic are your adversaries. Emotions belong in the casino, not in trading.
🧘 Steer Clear of FOMO (Fear of Missing Out).
Don't trade out of fear or impatience. Premature entries driven by FOMO can lead to losses.
🧘 Forge Your Own Path.
Resist the temptation of herd mentality. Successful traders are independent thinkers.
🧘 Cultivate a Diverse Watchlist.
Focus on instruments with setups you understand work. Avoid inventing trades that don't align with your strategy.
✨ Consistency is the Key to Triumph
Steady gains are far superior to volatile boom-bust performances. Here's your roadmap to consistency:
📊 Discover Your Trading Strategy.
Thoroughly research and select a trading strategy that aligns with your personality and comprehension.
📊 Employ Paper Trading and Backtesting.
Test your strategy in real-time and refine it through paper trading and the analysis of historical data.
📊 Monitor Your Trades.
Maintain meticulous records to pinpoint your strengths, weaknesses, and recurring patterns in your trading.
📊 Codify Your Rules.
Establish a precise algorithm for your trading strategy to minimize emotional decision-making.
🚀 In Conclusion: Embrace the Journey!
Trading is a long-term endeavor, not a shortcut to wealth. Along the way, you'll face challenges, losses, and setbacks, but when you succeed, you'll unlock the path to financial freedom!
🙌 Show your support for these strategies with a LIKE and share your thoughts in the COMMENTS! Let's navigate the world of trading and reach success together! 🌟
Comment:
Candlestick patterns need to be one of your trading arsenal's most effective weapons. We can determine the direction of the market using several candlestick patterns. All timeframes exhibit these patterns, but the daily candlestick patterns seem to be the most reliable.
Once you recognize these patterns, you may be ready for your next move and use other tools to join the market, including the previously discussed MA approach and flag patterns (see attached charts). This chart is just for information
Candlestick patterns need to be one of your trading arsenal's most effective weapons. We can determine the direction of the market using several candlestick patterns. All timeframes exhibit these patterns, but the daily candlestick patterns seem to be the most reliable.
Once you recognize these patterns, you may be ready for your next move and use other tools to join the market, including the previously discussed MA approach and flag patterns (see attached charts). This chart is just for information
Comment:
Comment:
Good day, traders.
I'd like to use this opportunity to advise both new and experienced traders alike that holding (hodling) your position is not recommended beyond a certain point. According to percentage calculations, the return required to recover to break-even increases at a considerably faster pace when losses grow in size (due to compound interest). It goes downward after a loss of 10% because a gain of 11% is required to make up for it.When the loss is 20%, it takes a 25% gain to make up the difference and return to break-even. To recoup from a 50% loss, a 100% gain is needed, and to reach the initial investment value after an 80% loss, a 400% gain is needed.
Investors who experience a bear market must understand that it will take some time to recover, but compounding returns will aid in the process. Think about a bear market where the value drops by 30% and the stock portfolio is only worth 70% of what it was. The portfolio increases by 10% to reach 77%. The subsequent 10% increases to 84.7%. The portfolio reached its pre-drop value of 102.5 percent after two further years of 10 percent gains. Consequently, a 30 percent decline requires a 42 percent recovery, but a four-year compounding rate of 10 percent returns the account to profitability.I will be doing a second part to this post on the idea of "DOLLAR COST AVERAGING" (DCA).
The math behind stock market losses clearly demonstrates the need for investors to take precautions against significant losses, as depicted in the graphic above. Stop-loss orders to sell stocks or cryptocurrencies that are mental or limit-based exist for a reason. If the market is headed towards a bear market, it will start to pay off once a particular loss threshold is reached. Investors occasionally struggle to sell stocks they enjoy at a loss, but if they can repurchase the stock or cryptocurrency at a lesser cost, they will like it.
Never stop learning
I would also love to know your charts and views in the comment section.
Thank you
I'd like to use this opportunity to advise both new and experienced traders alike that holding (hodling) your position is not recommended beyond a certain point. According to percentage calculations, the return required to recover to break-even increases at a considerably faster pace when losses grow in size (due to compound interest). It goes downward after a loss of 10% because a gain of 11% is required to make up for it.When the loss is 20%, it takes a 25% gain to make up the difference and return to break-even. To recoup from a 50% loss, a 100% gain is needed, and to reach the initial investment value after an 80% loss, a 400% gain is needed.
Investors who experience a bear market must understand that it will take some time to recover, but compounding returns will aid in the process. Think about a bear market where the value drops by 30% and the stock portfolio is only worth 70% of what it was. The portfolio increases by 10% to reach 77%. The subsequent 10% increases to 84.7%. The portfolio reached its pre-drop value of 102.5 percent after two further years of 10 percent gains. Consequently, a 30 percent decline requires a 42 percent recovery, but a four-year compounding rate of 10 percent returns the account to profitability.I will be doing a second part to this post on the idea of "DOLLAR COST AVERAGING" (DCA).
The math behind stock market losses clearly demonstrates the need for investors to take precautions against significant losses, as depicted in the graphic above. Stop-loss orders to sell stocks or cryptocurrencies that are mental or limit-based exist for a reason. If the market is headed towards a bear market, it will start to pay off once a particular loss threshold is reached. Investors occasionally struggle to sell stocks they enjoy at a loss, but if they can repurchase the stock or cryptocurrency at a lesser cost, they will like it.
Never stop learning
I would also love to know your charts and views in the comment section.
Thank you
Comment:
Comment:
Related Ideas
Some crucial aspects significantly influence technical analysis. The type of the market day is one of those crucial elements. Any trader who is actively trading in stocks, indices, cryptocurrencies, forex, derivatives, etc. may gain an advantage by properly analysing the type of market day.
Today, we'll talk about "6 different types of days" that could occur in the market. Please be aware that the six days differ greatly from one another. These patterns are not inviolate, thus they should only be used as a general indicator rather than a precise one for any given trade.
Types of market days:
# Trend day
# Double distribution trend day
# Typical day
# Expanded typical day
# Trading range day
# Sideways day
#Trend Day
The 'Trend day' is typically a volatile trading day with a definite bullish or negative momentum. On a day with a positive trend, the beginning candle typically represents the day's bottom, and the market subsequently slowly rises throughout the day. The day's high is typically marked by the opening candle on days with a negative trend, and the market then progressively decreases during the day.
Typically, a quiet day with range-bound movements comes before the trend day. Gives the possibility of a significant reward if correctly identified. Rarely, perhaps only a few times every month, do such trending days occur.
#Double distribution trend day
The 'Double distribution trend day' is a slightly complicated but incredibly effective strategy for executing aggressive trades. Because of this, institutions and experienced traders make extensive use of this method.
It is typically distinguished by being undecided at the start of the session. On a day like this, the market first moves in a narrow range. An initial balance is another name for it. The reference points are the initial balance high (IBH) and initial balance low (IBL). The day of the Double Distribution trend is quiet to start. The price eventually moves away from this range and tends in the direction of a new value, driven by buyers or sellers. When the market's momentum has subsided, another range-bound movement develops.Due to the fact that the majority of trading activity takes place at either extreme, this is where the phrase "Double Distribution trend day" originates.
Wide initial balances are more difficult to break than narrow initial balances.
#Typical Day
It is distinguished by a significant rise or fall at the start of the trading day. It might be a reaction to any significant macroeconomic news. Then, by adopting opposing positions, the market participants drive the price back in the opposite direction. The market simply trades within the range it generated earlier in the trading session when a broad range was formed in a relatively short period of time.
#Expanded Typical Day
It resembles that of the 'Typical Day' that was previously addressed. The beginning balance is not as large as on a "Typical Day," but the early price fluctuation is less erratic. This gives market participants the chance to break this constrained range. When this range is violated, either by an increase in selling pressure or purchasing pressure, the market then moves strongly in that direction.
The initial balance in this situation is greater than on a Double Distribution Trend Day but less than on a "Typical Day."
#Trading Range Day
Prices are being deliberately pushed up and down by buyers and sellers. Buyers and sellers who are responsive will try to enter at the extremes, driving prices back to the starting position. This kind of day offers both sides fantastic trading opportunities.
#Sideways Day
A "Sideways day" is one in which there is little movement in the price. As neither party makes any bold directional trades today, it is somewhat of a day of indecision for both parties. Option sellers typically enjoy trading on days like this since they can profit from time decay due to the non-directional, subdued action.
Although the Trading Range Day and the Sideways may appear to be identical, they differ greatly from one another. On a "Trading Range Day," both buyers and sellers are quite prevalent; however, this is not the case on a "Sideways Day."
Never stop learning
I would also love to know your charts and views in the comment section.
Thank you