Regularly we see price break out after a consolidation, only to suddenly reverse and break out to the other side. Then, we continue swiftly in the direction of the initial breakout creating a "whipsaw" effect. Why is that ?
In simple words, it is the smart money that attracts retail traders by pushing in one direction (mainly breakout traders) and put their stop...
This is my current Portfolio of crypto coins.
Seperate investments like FACTOM are not included, I only use the coins which will stay in my "retirement" portfolio and which I think are the coins with the best future development.
The rates are as follows:
REP 2%
GNT 2%
DOGE 2%
LTC 5%
DASH 4%
ETH 20%
STR 10%
ICN 2%
XMR 3%
The chart represents the total value of...
The foreign exchange market operates around the clock, so it is impossible for a trader to track every market and seize every opportunity.
In forex trading, time is everything.
In order to design an efficient and timely investment strategy, it is necessary to record the market for 24 consecutive hours of trading, so that traders in their own trading hours, to...
Every sunday i watch all pairs, draw the strongest fresh supply & demand zones and set the alarm. But do i always take the trade when the price hit the zone?
Drawdowns on your account are part of trading but if you establish a trading plan then it will enable you to survive these losses and not wipe out your account.
Why Traders Lose In The Financial Market.
Three Important Things To Know Before Trading
You may be one of the traders out there, Who has lost plenty of dollars in the financial markets. So in today’s lesson we are going to check the most common trading mistakes a trader does when he starts trading.
Knowledge:
So the first important accept in losing in...
“Compound interest is the eighth wonder of the world. He who understands it, earns it... He who doesn’t... Pays it” .
The idea of compound interest is simple, use your profit to make more profit instead of spending it... You can do this whilst making small regular withdrawals!
BUT
Too many traders try to get-rich-quick and in turn blow their trading...
One of the major reasons why traders lose money is because they ride out their losses and close profitable trades too early.
While being patient can help us to achieve our maximum profit potential, being patient on the wrong side of a trade can be costly.
This is a great insight into why we are naturally predisposed to riding out losses and not quitting while we...
Three Reasons Why Most Traders Fail
Hello traders, I'm back with another educational post after receiving a lot of positive feedback. Today I'm going to break down three reasons why most traders fail!
Traders Fail?!
Yes most do, it is believed over 90% of new traders fail (this is an ongoing debate) but why is that? I personally believe it comes down to...
Utilising a Risk to Reward Ratio
How many of you obsess over an 80% profitability rate? You may feel the need to be right all the time and cannot accept a large amount of losing trades.
OR
You may think in order to become a profitable trader you need to win more than you lose.
Well it's time to put that aside.
You do not need to have a high profit/loss...
Hi,
This is just a brief description of how I manage my trades. It's important to juggle a few factors in these sort of cases.
Firstly, it's best not to mother a trade to much. You need to give it room to breath and keep your stop in a place that isn't going to kick you out to early.
If the market is telling you something is potentially wrong, you need to...
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Continued from Educational Series - Part 1 (link below) ;
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3. Expectancy :
So, now we have got our risk reward ratio and winrate.
We move on to calculate the expectancy of our trading strategy.
The formula is,
Expectancy = (Probability of Win * Average Win) – (Probability of Loss * Average Loss)
So, in our scenario,
where,
Risk...
NOTE :
this post is intended for novice or intermediate traders, professional traders can skip it or read it to refresh what they already know.
For the benefit of other traders,
I am starting an educational series where i will be covering lots of topics related to trading which everyone should abide by.
It will be in simple language and easy explanation so...
Taking profits early was a hard lesson I had to learn. I occasionally still do it. See chart
For me, the key to LONG-TERM success in this business is not your win/loss rate, but the magnitude of your wins vs your losses.
My biggest mistakes have all come from taking profits early, not from taking small losses.
I just posted an updated analysis on USDJPY where I talked about learning from getting stopped out. Now I know it may seem like I NEVER lose but in reality, I lose many trades! But I ALWAYS make much more than I lose because of PROPER stop placement and PROPER money management! If you incorporate and utilize these 2 things PROPERLY and stick to it, it will go a...
