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EURUSD-Daily Chart Trade Ideas and Analysis Jan 8th-12th 2024 Weekly Chart Analysis Current Possible Trade: Long: If Price stay around the doji candle and makes more market structure than I would take for confirmation entry long before I enter the trade. A. This would increase the probability of the trade Short Trades : I would wait for price to move down to the c.1 demand zone and look to entry on the lower timeframes Daily Chart Analysis: 1. Price is currently in between the weekly high strong (protected) swing range. Near the equilibrium of the Daily swing range. 2. During NFP on Friday Jan 5 price swept the strong lows and is currently giving us a long legged doji candle. A. From my backtest experience price will likely range a bit after this candle formation.
by Trader_Miles
Unlocking The Trader's PyramidIn the realm of trading, success isn't solely derived from intricate technical analysis. Surprisingly, the key to triumph lies in an unconventional ratio: 20% technical analysis and a staggering 80% blend of emotions, discipline, psychology, risk management, and money management. If you appreciate our charts, give us a quick 💜💜 The 20%: Technical Expertise Yes, technical analysis is crucial, comprising the foundational 20% of your crypto trading journey. This segment encompasses chart patterns, indicators, and market trends. However, it's not the sole determinant of your success. The 80%: The Pillars of Triumph The real magic happens within the 80%. Embracing your emotions, mastering discipline, understanding market psychology, and implementing astute risk and money management techniques form the cornerstone of your success. Emotional intelligence allows you to navigate market highs and lows, discipline ensures you stick to your strategies, and psychological resilience helps you stay steady amidst volatility. Effective risk and money management safeguard your capital and nurture your profits. This symbiotic blend of technical expertise and emotional intelligence propels you towards trading mastery. By allocating your focus and energy according to this pyramid, you're not just trading; you're sculpting success . Let this balanced approach be your guiding light in the trading journey! Happy trading! 💜
Education
by Vestinda
6
Introduction to Behavioral FinanceIntroduction Behavioral finance is a captivating field that explores how human psychology affects financial decision-making. Traditional finance models assume investors are rational beings, making logical choices to maximize wealth. However, behavioral finance acknowledges that emotions, cognitive biases, and herd mentality often lead individuals to deviate from rationality. In this article, we delve into the intriguing world of behavioral finance, investigating the psychological factors that influence investors and traders and how these elements impact their decision-making processes. Cognitive Biases: The Subconscious Pitfalls Cognitive biases are ingrained mental shortcuts that our brains use to simplify information processing. Although helpful in everyday life, these biases can lead to significant errors in investment decisions. Common cognitive biases include: a. Confirmation Bias: Investors tend to seek and favor information that supports their existing beliefs or opinions, ignoring contradictory evidence. This leads to a skewed perception of market trends and an unwillingness to challenge preconceived notions. b. Overconfidence Bias: Many investors overestimate their ability to predict market movements, leading to excessive risk-taking and potentially significant losses. c. Anchoring Bias: This bias occurs when investors fixate on a particular piece of information (e.g., the purchase price of a stock) and use it as a reference point for future decisions, disregarding changing circumstances. d. Loss Aversion: Investors often fear losses more than they value gains, causing them to hold onto losing positions for too long in the hope of a turnaround, leading to missed opportunities. Emotional Influences on Decision-Making a. Fear and Greed: Fear and greed are potent emotions that profoundly impact investment decisions. Fear can trigger panic selling during market downturns, while greed may fuel excessive risk-taking in pursuit of high returns. b. Regret Aversion: Investors tend to avoid making decisions that might result in regret, such as realizing losses on investments. This reluctance may lead to inaction and failure to rebalance portfolios as needed. c. Herding Behavior: Humans are social creatures, and this extends to financial markets. Herding behavior occurs when investors follow the actions of others, even when it may not be in their best interest, potentially exacerbating market trends. d. Availability Heuristic: Investors often rely on easily accessible information or recent events to make decisions, leading to an overemphasis on recent market trends and news. Conclusion Behavioral finance sheds light on the critical role psychology plays in investment decision-making. Cognitive biases, emotions, and herd mentality can lead investors astray, affecting their financial well-being and market stability. Recognizing these psychological factors is essential for investors and traders seeking to make more informed and rational choices. As financial professionals continue to explore behavioral finance, the integration of psychology with traditional finance models promises to enhance our understanding of market dynamics and human behavior in the world of finance. By embracing the insights offered by behavioral finance, investors can take steps to minimize biases and make more objective and strategic investment decisions for long-term success.
Education
by financialflagship
Mastering Emotional DisciplineMastering Emotional Discipline: The Key to Successful Investment Decision-Making Introduction Investing in financial markets can be an emotional rollercoaster. Fear, greed, and euphoria often cloud judgment, leading to impulsive and irrational decisions. One crucial lesson for successful investors is the significance of emotional discipline in investment decision-making. In this blog post, we will delve into the importance of keeping emotions in check and how it can lead to more informed and prudent investment choices. The Impact of Emotions on Investment Decisions Emotions can significantly influence how we perceive and react to market movements and financial news. Some common emotional biases include: Fear of Missing Out (FOMO): Feeling the urge to invest in a rapidly rising asset, driven by the fear of missing out on potential gains. Loss Aversion: Placing more emphasis on avoiding losses than achieving gains, often leading to holding onto losing positions for too long. Overconfidence: Being overly confident in one's investment abilities, leading to excessive risk-taking and overconcentration in high-risk assets. Herding Behavior: Following the crowd and making investment decisions based on the actions of others rather than on individual analysis. The Importance of Emotional Discipline Rational Decision-Making: Emotional discipline allows investors to make rational, well-thought-out decisions based on fundamental analysis and research rather than impulsive reactions. Long-Term Perspective: Emotional discipline helps investors maintain a long-term perspective, enabling them to ride out short-term market volatility and focus on their investment goals. Avoiding Herding Behavior: By staying emotionally disciplined, investors can avoid the pitfalls of herd mentality and make independent decisions based on their own convictions. Risk Management: Emotional discipline is essential for effective risk management. It helps investors set and stick to stop-loss levels and position sizes that align with their risk tolerance. Strategies for Maintaining Emotional Discipline Investment Plan: Develop a well-defined investment plan based on your financial goals, risk tolerance, and time horizon. Stick to the plan, even during turbulent market conditions. Avoid Impulsive Actions: Before making any investment decisions, take a step back, and assess the situation objectively. Avoid impulsive actions driven by emotions. Diversification: A diversified portfolio can reduce the impact of individual asset volatility, reducing emotional stress during market fluctuations. Focus on Fundamentals: Rely on fundamental analysis and research rather than short-term market movements. Solid research provides a more objective basis for investment decisions. Conclusion Emotional discipline is a critical aspect of successful investment decision-making. By recognizing and managing emotional biases, investors can make rational choices aligned with their long-term financial goals. Embrace emotional discipline as your guiding light in the tumultuous world of investing, and let it pave the way to a more confident and rewarding investment journey. Remember, investing is a journey, not a race. Stay patient, stay disciplined, and stay on track to achieve your financial aspirations.
NASDAQ:TSLAEducation
by MindOverMarket
❌Trading Mystery: Why 95% Of You Will Fail❓ 🟥The world of forex trading holds immense allure - the promise of financial freedom and the opportunity to make money from the comfort of your own home. However, it is no secret that the path to success in forex trading is treacherous, with estimates suggesting that a staggering 95% of traders fail to achieve their desired outcomes. So, what exactly goes wrong for these aspiring traders? Let us unlock the creative narrative behind this apparent mystery and delve into the reasons that prevent them from cracking the code. ♦️Lack of Proper Education: Just as successful carpentry requires the right tools, so does forex trading. Many traders dive into the financial ocean without a true understanding of its currents, waves, and hidden dangers. They overlook the importance of acquiring comprehensive knowledge about markets, technical indicators, risk management, and strategies. Without a firm grasp of these essentials, traders unwittingly chart a course for disaster. ♦️Emotional Tempests: Imagine being a captain of a ship, navigating treacherous waters while being plagued by anxiety and fear. Forex trading is not for the faint of heart. As the markets fluctuate, traders battle their own emotions, succumbing to impulses that lead to impulsive trading decisions. Greed, fear, and overconfidence can cloud judgment, causing traders to buy or sell impulsively rather than relying on calculated analysis. Emotion-driven trading inevitably leaves traders shipwrecked amidst the unforgiving tides of the forex market. ♦️Unforeseen Volatility: The forex market is a living organism that reacts to an array of factors, from economic data to geopolitical events. These dynamics can send currency values into a frenzy, defying logic and leaving traders bewildered. Sudden fluctuations, unpredictable trends, or unexpected policy decisions can capsize even the most astute trading strategies. By underestimating volatility, traders find themselves drowning rather than riding the waves. ♦️Inadequate Risk Management: Imagine moving forward without a life jacket while navigating choppy waters. This risky endeavor can lead to dire consequences, just like trading without proper risk management. Successful traders understand the importance of setting stop-loss orders, managing trade sizes, and allocating a portion of their capital to each trade. Those who disregard risk management find themselves sinking beneath the weight of their poor decisions. ♦️Overreliance on Automation: In recent years, the rise of automated trading systems has piqued the interest of aspiring traders. While these algorithms can streamline processes and enhance efficiency, they are not a guarantee of success. Blindly relying on automation without understanding how it works or constantly monitoring its performance may result in unexpected losses. It is essential to strike a balance between human insight and technological support. 🟥The realm of forex trading is a captivating one, tantalizing traders with elusive riches. However, becoming part of the 5% who succeed requires diligence, perseverance, and a deep understanding of the whimsical nature of the market. One must embark on this journey by arming themselves with knowledge, taming their emotions, embracing volatility, implementing effective risk management, and balancing human intuition with automation. Only then can traders hope to navigate the tempestuous seas and emerge victorious in their pursuit of forex trading success. 😸Thank you for reading buddy, hope you learned something new today😸 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
5
🧠 THE CYCLE OF MARKET EMOTIONS📍 When starting a trading career, much emphasis is placed on trading strategies, technical analysis, and indicators, which is important. However, as traders gain experience, they may discover that analysis and strategy become more intuitive as they find their specialization in the market. On the contrary, trading psychology often demands significant effort from most traders. It is often overlooked that trading psychology is developed through practice. Some argue that simulated trading lacks realism and cannot adequately prepare traders for the emotional aspects of trading. However, this holds true only if traders have not yet learned to trust a tested strategy. The market emotions run the gamut from fear, despair, hope, anxiety, and even euphoria. It is so common to experience these emotions that you can actually expect them to occur in a predictable cycle. We call it the market of emotional cycle. 📌 Think of it this way: we all start out with optimism – optimism that we are going to make lots of money in the market. Over time we may have trades go in our favor and make lots of money. However, if we aren’t in tune with the normal price cycle of the market, we can ride our profits all the way back down, leading us to despair. The goal, of course, is to become a trader who learns to manage his emotions and make wise decisions. Instead of hope and fear and greed, become a process-oriented trader who can trust his judgment on the market. In the upcoming TV ideas, we will make a deep dive on each parts that effect the trader's psychology and why it does so. 👤 @QuantVue 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
2
Market Psychology and Your Trading Decisions✨ Unlocking the secrets of market psychology is vital for successful trading. Here's why: 🔹 Emotions at Play: Fear, greed, and herd mentality significantly influence your trading choices. 🔹 Rational Thinking: Being aware of market psychology helps you maintain a calm and logical approach to decision-making. 🔹 Trend Spotting: Recognizing market psychology enables you to identify potential market trends and reversals. 🔹 Tackling Biases: Self-assessment must consider three biases: 1️⃣ Confirmation Bias: Avoid favoring information that confirms pre-existing beliefs. 2️⃣ Overconfidence Bias (Dunning-Kruger Effect): Beware of overestimating your abilities as a novice trader. 3️⃣ Loss Aversion Bias: Recognize the inclination to avoid losses more than seeking gains. 🔹 Prospect Theory: Understand how prospect theory shapes decision-making, where individuals take risks to evade losses rather than pursue equivalent gains. 🔹 Stay Informed: Stay updated with market news to avoid impulsive reactions to short-term fluctuations. 🔹 Empower Your Trades: An understanding of market psychology empowers you to make informed and rational trading decisions. ✨ Harness the power of market psychology for long-term trading success! 📈💪
TVC:DXYEducation
by Moon_SmartMoney
Power of Psychology TradingIn the dynamic world of trading, it is widely acknowledged that strategy and market knowledge are essential for success. However, there is a critical aspect that often goes unnoticed but holds immense power in shaping trading outcomes: the psychological dimension. The psychological aspect of trading encompasses understanding and effectively managing emotions, biases, and mental states that can significantly impact trading decisions. Neglecting this facet can lead to costly mistakes driven by emotional decision-making, such as panic selling during market dips or clinging onto losing trades fueled by hope or fear. Thus, it is crucial to cultivate a clear and disciplined mindset to achieve more profitable and consistent trading outcomes. This tutorial aims to delve into the psychological landscape of trading, offering invaluable insights and practical tips to help you master your mind and, consequently, conquer the market. Common Psychological Traps in Trading Traders frequently fall into various psychological traps that can severely undermine their trading performance. One such trap is overconfidence. After experiencing a string of successful trades, it becomes easy to develop an invincible mindset, leading to riskier behaviors and impulsive decisions. Fear and greed are two emotions that often dictate trading decisions. They serve as key drivers behind market trends but, if not managed properly, can result in significant financial losses. The fear of missing out (FOMO) can drive traders into hasty, poorly thought-out trades, while greed can create a reluctance to sell even when all signs point to a market downturn. Another common psychological pitfall is anchoring. This occurs when traders become fixated on specific price points or values, distorting their perception of a security's true worth and hindering rational decision-making. Understanding Your Trading Emotions To effectively manage your trading emotions, it is essential to first understand them. One practical approach is to maintain a trading journal. In addition to recording your trades and their outcomes, this journal should document your emotions and thoughts at the time of each trade. Over time, patterns may emerge, revealing how your emotions influence your trading decisions. Another crucial factor is knowing your risk tolerance. Each trader possesses a unique level of comfort when it comes to taking risks, and comprehending this can significantly shape your trading strategy. A risk-averse trader might prefer more stable assets, while a risk-tolerant trader may be comfortable with higher volatility. Strategies for Managing Trading Emotions Being in the right mental state before engaging in trading is paramount. Developing a pre-trade routine that helps you calm down and focus can prepare you for the trading day ahead. This routine could include activities such as meditation, exercise, or reviewing the latest market news and your trading plan for the day. Having a clear trading plan also provides a solid foundation for managing your emotions. This plan should outline your strategy, encompassing risk management tactics, potential entry and exit points, and your objectives for each trade. It serves as a roadmap, grounding you when market volatility triggers emotional responses. Additionally, learning stress management techniques can be invaluable in the trading arena, often laden with stress. Taking regular breaks, practicing deep breathing exercises, and maintaining a balanced lifestyle outside of trading can help maintain your mental equilibrium. Conclusion and Further Reading Trading psychology is a vast and intricate field, but understanding its fundamental principles can profoundly enhance your trading performance. By familiarizing yourself with common psychological traps, comprehending your own emotions and risk tolerance, and employing effective strategies to manage your trading emotions, you can make more informed and profitable trading decisions. Continuous learning and emotional self-awareness are key to successful trading. There are numerous resources available for those who wish to delve deeper into trading psychology, risk management, and market analysis. While the journey to master your trading psychology may present challenges, the potential rewards - improved trading outcomes and personal growth - far outweigh the effort invested.
NASDAQ:NVDA
by A1TradingHub
FrogAlgo: Not profitable trader before!I made a huge mistake when I first started trading – I jumped from one strategy to another, constantly searching for the "holy grail." I tried everything from signals and account management to mentorships and expert advisors. Each approach seemed profitable initially, but as soon as I invested more capital, I encountered significant losses. It was a frustrating and costly experience. I realized that I was being emotional in my trading, driven by greed and fear. I would see others boasting about their consistent high returns on social media, and I wanted to replicate their success. But deep down, I knew that if they truly had a winning strategy, they wouldn't be selling courses or mentorships for a small fee. They would be working with large institutional players and making substantial profits. The key realization was the importance of having a trading plan. Without a plan, I was going in circles, constantly shifting from one strategy to another. I needed to follow a consistent approach and stick to my rules. Even if I hit a big winning trade, I shouldn't deviate from my plan. By sticking to a well-defined trading plan, I could eliminate emotional decision-making and irrational behavior. Achieving consistency required backtesting my strategy and taking at least 100 trades to validate its effectiveness. I learned that profitability comes from two angles: increasing my win rate and avoiding bad trades. It may seem counter-intuitive, but by focusing on a strategy with a risk-reward ratio of 1:3 and maintaining an above break-even win rate, I could generate significant profits. It didn't have to be a high-risk, high-reward approach. I had my share of ups and downs, trying different strategies and mentorships, but eventually, I found my own holy grail. It took perseverance and a willingness to learn from experienced traders. I developed a framework that worked for me, which involved chart analysis, setting alerts, documenting analysis, and following a step-by-step plan. I also emphasized the importance of journaling trades, recording emotions, and analyzing patterns to improve my trading psychology. Having a mentor was crucial in my journey. A mentor provided valuable guidance, shared their mistakes, and helped me refine my approach. It's important to find someone who can analyze your strategy objectively, show solid trading results with third-party verification, and support your personal development beyond trading. In conclusion, trading success comes from having a well-defined plan, sticking to it, and avoiding emotional decision-making. Consistency is key, and profitability can be achieved through a balanced approach that focuses on risk management and a decent win rate. Find a mentor who can guide you, but ultimately tailor your strategy to fit your own lifestyle and goals. Remember, success is within reach if you stay consistent and committed.
AMEX:SPY
by A1TradingHub
Self reflectionThe past couple of days has seen EURUSD hit my POI and start to bounce off and head towards my target. While this is nice, the downside is that I have not yet been able to position myself into this trade. This video is just about my emotional state at this moment and some takeaways I need going forward. Initially this was meant to be a private video but in the spirit of transparency and just wanting to be held more accountable to myself I decided to make it public.
Education
by udonahi
1
Getting Over Emotional Barriers to Successful ResultsInvesting plays a crucial role in personal finance, serving as a vital avenue for individuals to expand their wealth and financial security over an extended period. Despite its significance, numerous individuals shy away from investing due to various perceived obstacles that hinder their progress, including a lack of knowledge, fear of risks, and limited resources. Unfortunately, these barriers can impede individuals from reaching their financial goals and securing their future. In this comprehensive article, we will delve into the common obstacles that hinder successful investing, and we will present practical tips and strategies to overcome them effectively. Our ultimate objective is to empower individuals by eliminating these barriers, enabling them to make well-informed investment decisions and ultimately achieve long-term financial prosperity. Emotional Aspect Emotions exert a profound influence on the realm of investing, often stealthily shaping our choices and behaviors without our conscious awareness. Fear, greed, and even overconfidence can distort our judgment and result in suboptimal investment decisions. Recognizing and effectively managing our emotions becomes paramount for achieving success in the realm of investing. This article aims to delve into the profound impact of emotions on investment endeavors, pinpoint prevalent emotional biases that can derail our investment strategies, and offer pragmatic advice for navigating the emotional landscape when making investment decisions. By gaining insight into the intricate interplay of emotions and investments, we can enhance our investment outcomes and attain greater financial security for the long term. Lack Of Knowledge The misconception that successful investing revolves solely around buying and selling the right stocks can lead investors astray. This oversimplified viewpoint fails to acknowledge the intricacies of market dynamics and the multifaceted factors that drive investment performance. Moreover, investors often overestimate their ability to outperform the market and unwittingly expose themselves to unnecessary risks. Another common pitfall is the allure of strong performance, which tempts investors to chase the latest trendy sector without fully comprehending the underlying reasons or associated risks. This behavior can result in an unbalanced portfolio with an excessive concentration of funds in a single investment, such as their employer's stock, which undermines diversification. Furthermore, a significant number of investors lack a comprehensive understanding of fundamental investment concepts, such as bonds, interest rates, and central bank policies, which can profoundly impact their decision-making. For example, some investors may avoid bonds altogether, unaware of their potential advantages in situations such as company bankruptcy, or fail to recognize the influence of rising interest rates on bond prices. Lastly, investors often struggle with determining the appropriate time to sell a substantially appreciated stock, failing to capture profits or free up capital for other investment opportunities. This oversight can result in an imbalanced portfolio that excessively favors the appreciated stock, exposing investors to unnecessary risk. Market fluctuations inevitably prompt portfolio readjustments, sometimes to the dismay of investors. Rebalancing involves selling some of the best-performing investments to acquire quality stocks that have lagged. Understanding these fundamental concepts and adopting a more rational approach to investing can empower investors to achieve greater financial success and navigate the complexities of the market with confidence. Concentrating Too Much On The Details Despite many investors proclaiming to prioritize a long-term investment perspective, their decision-making is frequently swayed by short-term market movements and fleeting notions. While the importance of establishing long-term financial goals, such as purchasing a home, saving for education, and preparing for retirement, is widely acknowledged, many individuals neglect to devise sound financial plans to actualize these aspirations. This lack of strategic planning renders their choices vulnerable to the unpredictable fluctuations of the market, heightening the likelihood of impulsive decisions that undermine their ability to achieve long-term goals. Invariably, when the market experiences an upswing, the average investor hastily plunges into stocks and mutual funds in an attempt to capture some of the profits amassed by seasoned professionals. Conversely, during a market downturn, panic often grips the average investor, prompting them to sell investments near the market's nadir. Regrettably, this cyclical pattern frequently repeats itself, resulting in investors enduring substantial capital losses and growing disenchanted with the stock market. Methods For Overcoming Emotional Obstacles To enhance the likelihood of success in investing and trading, several strategies can help overcome barriers. Consider the following tips: Educate yourself: Lack of knowledge is a major obstacle to successful investing. Invest time in learning the fundamentals, including different investment types, risk management, diversification, and market trends. Online courses, workshops, seminars, and financial advisors can assist in expanding your knowledge base. Develop a plan: Create a well-defined investment plan that aligns with your financial goals and risk tolerance. This plan should encompass a diversified portfolio, clear investment objectives, and a strategy for monitoring and adjusting your investments over time. Maintain discipline: Avoid making impulsive decisions driven by emotions or short-term market movements. Stick to your investment plan and resist the temptation to chase fads or engage in impulsive trades. Embrace long-term focus: Successful investing requires a long-term perspective. Don't overly fixate on short-term fluctuations; instead, concentrate on your long-term objectives. Seek assistance when needed: Don't hesitate to seek guidance when necessary. Working with professionals like financial advisors, accountants, or investment experts can provide valuable insights and help develop a personalized strategy tailored to your specific needs. By implementing these strategies, you can overcome barriers to successful investing and increase the likelihood of achieving your financial goals. Conclusion Investing presents its fair share of challenges, often impeding individuals from reaching their financial goals. Emotional biases, limited knowledge, and getting lost in intricate details are common barriers faced by investors. However, by effectively managing emotions, acquiring knowledge, formulating a clear investment plan, maintaining discipline, adopting a long-term perspective, and seeking assistance when needed, investors can overcome these barriers and attain lasting financial success. It is vital to understand that investing is a journey that demands patience, perseverance, and a willingness to learn and adapt. By implementing these strategies, investors can conquer emotional obstacles and make well-informed investment decisions that yield profitable outcomes.
Education
by FOREXN1
24
Avoiding emotion in Trading!Avoiding emotions in trading can be challenging, but it is essential for making rational and objective decisions. Here are some strategies to help you minimize the impact of emotions on your trading: - Develop a trading plan: Create a well-defined trading plan that outlines your goals, risk tolerance, entry and exit points, and overall strategy. Following a plan helps you stay focused on your predefined criteria instead of making impulsive decisions based on emotions. - Set clear rules and stick to them: Establish clear rules for your trading activities and adhere to them strictly. For example, determine the maximum amount you are willing to risk on a single trade and never exceed it. Having predetermined rules eliminates the need for impulsive decisions driven by emotions. - Use stop-loss orders: Implementing stop-loss orders helps limit your potential losses by automatically triggering an exit from a trade when a certain predetermined price level is reached. This can prevent you from holding onto losing trades due to the fear of missing out or the hope that the market will reverse. - Avoid overtrading: Overtrading can occur when you let emotions, such as greed or fear of missing out, dictate your actions. Stick to your trading plan and only execute trades that meet your predefined criteria. Taking fewer, well-analyzed trades can reduce emotional decision-making. - Practice risk management: Effective risk management is crucial for maintaining emotional balance. Determine the appropriate position size for each trade based on your risk tolerance and overall portfolio management strategy. By managing risk effectively, you can minimize the impact of losses on your emotions. - Maintain a long-term perspective: Trading can be volatile in the short term, but it's important to keep a long-term perspective. Avoid getting overly influenced by daily market fluctuations or short-term trends. Focus on your trading plan and the bigger picture, which can help you make more rational decisions. - Take breaks and manage stress: Trading can be stressful, and stress can amplify emotions. Take regular breaks, practice relaxation techniques, and engage in activities outside of trading to maintain a healthy emotional state. A clear and focused mind is essential for making objective decisions. - Analyze and learn from your trades: After each trade, review your performance objectively. Analyze both successful and unsuccessful trades to understand the factors behind the outcomes. By learning from your experiences, you can refine your strategy and reduce emotional decision-making in the future. Remember, emotions are a natural part of being human, but successful trading requires discipline and the ability to make rational decisions. While it may not be possible to completely eliminate emotions, these strategies can help you minimize their impact and make more objective trading decisions.
AMEX:SPY
by A1TradingHub
Why 90% Of Traders FAIL⁉️ Trading is one of the most fascinating and exciting professions in the world. It promises huge profits, financial independence, and the ability to work from anywhere. But with great rewards come great risks, and 90% of traders fail. Why do so many traders fail? Let's explore the reasons. 📚Lack of education: Many traders jump into trading without the proper education or training. They don't understand the market dynamics, technical analysis, and risk management. Trading is a skill that needs to be learned and practiced over time. Without education, traders are like blind people trying to navigate through a maze. 💔Emotional trading: Emotions are the biggest enemy of traders. Fear, greed, and hope can cloud judgment and lead to poor decision-making. Successful trading requires discipline and emotional control. Traders must learn to keep their emotions in check and stick to their trading plans. 📉Overtrading: Many traders believe that more trades translate into more profits. However, overtrading can lead to burnout, stress, and losses. Traders must focus on quality trades, not quantity. 🆘Lack of risk management: Trading involves risk, and traders must learn to manage it. Risk management includes setting stop-loss orders, using proper position sizing, and diversification. Traders who don't manage risks can quickly wipe out their accounts. ❌Unrealistic expectations: Trading is not a get-rich-quick scheme. It requires patience, persistence, and hard work. Many traders have unrealistic expectations about their profits and timelines. They give up too soon or take too much risk in search of quick profits. So, what can traders do to avoid failure? ✅Firstly, educate themselves. Learn the fundamentals of trading, technical analysis, and risk management. Investors can take various online courses for trading like those from Udacity, the Trading Academy, etc. ✅Secondly, manage emotions and develop discipline. Learn how to control your emotions and stick to your trading plan. Traders must treat trading as a business and follow strict rules like any other business. ✅Thirdly, trade with proper risk management. Develop a risk management strategy before starting trading. Use stop-loss orders, never risk more than you can afford to lose, and diversify your portfolio. 🧠In conclusion, trading can be a rewarding profession that offers many benefits. However, traders must be aware of the risks and pitfalls. By educating themselves, managing emotions, and developing robust risk management strategies traders get a good chance of succeeding in trading. Good luck! 😸Thank you for reading buddy, hope you learned something new today😸 Do you like this post? Do you want more articles like that?
Education
by ProSignalsFx
14
Emotions It is impossible to have a prejudice every day. However, it is possible to designate rules, models and criteria in order to exclude decision-making on an emotional basis. Notice, research and record everything that happens before, after and during each of your trades. Pay attention to the time period when errors occur and analyze all the details: triggers, thoughts, emotions, behavior, actions, changes in decision making, changes in the perception of the market, opportunities or current positions, trading failures. Before opening the next trade, remember your previous experience. This will help you avoid repeating old mistakes. The moments after the completion of transactions provide an excellent opportunity to track exactly how you came to this and what thoughts, emotions manifested in the moment. The recording process itself can also help to defuse the emotional state. Your first goal is to reach a level of complete detail in your trading strategy. Continue to map out your behavior pattern in as much detail as possible until you identify the initial trigger and analyze it as part of your trading preparation. During a trading session, try to write down new details. After, combine and analyze your notes to better prepare for the next session. Once you have identified the details associated with your trades, look for the early triggers that come before each one. You may be able to spot smaller errors or notice subtle changes in market perception. For example: you spend too much time on informational noise or make a trade that does not meet all the criteria of your trading plan. Create a working day schedule taking into account the instrument sessions. Set up a timer so that it fires at regular intervals during your scheduled break and doesn't disrupt your work. During this time, take a few minutes to become aware of your thought process and understand how you feel. If there are signs of a problem, write them down. Understand the intensity of the emotions. You may think that anger and frustration are two different emotions, but anger is just heightened frustration. Understanding how an emotion intensifies will help you recognize the details of your behavior pattern, including the original trigger. .... Have you ever faced a situation where, despite having a well-designed trading plan and a carefully crafted trading strategy, your actual trading day turned out to be completely unpredictable? In such instances, your actions deviate from the original plan, and momentary weakness casts doubt on the effectiveness of the entire trading session. These unexpected emotions can catch you off guard. One of the reasons for this is a lack of recognition of what is happening. Emotions often arise as immediate reactions or reflexes triggered by certain events, which traders often misinterpret as problems. Let's consider the example of a loss from a trade. Many traders may become furious and enter positions without following proper trading patterns. However, this doesn't happen to everyone. Instead of expressing anger, some traders easily cope with failures, instinctively understanding the situation and turning it into opportunities. Therefore, a crucial aspect of developing a trading plan is identifying and addressing your own internal struggles, which serve as the underlying cause of the problem. It's important to note that in many cases, the initial trigger for these emotions is subtle and barely perceptible consciously, yet it already impacts your mental stability and your habitual interaction with the market. Even if the trading day starts off on the wrong foot, by regaining composure at the right moment and avoiding impulsive reactions, you can prevent basic mistakes and maintain control over your psychological state, ultimately improving your performance. The secondary arousal occurs when a trader becomes aware of or reacts to the impulses, thoughts, and actions that occurred initially. In simple terms, the mind and thoughts amplify the emotions that have already emerged. In everyday life, people often don't differentiate between these experiences. However, if the source of the reflex is not identified, along with the secondary causes, finding a solution to the situation becomes challenging. Triggers will continue to generate more and more emotions that need to be managed. Awareness of the initial impulse and the subsequent reaction are the two starting points that enable progress. After all, stressful situations can accumulate and overlap, creating a precedent for a cumulative effect. Trading is a business, not a game of chance. This is where it is important to keep a professional mindset while following the trading plan. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. --- • Look at my ideas about interesting altcoins in the related section down below ↓ • For more ideas please hit "Like" and "Follow"!
BITSTAMP:BTCUSDEducation
by Crypto4light
What are Your Biggest Struggles in Trading?Hey everyone! I've been trading for a year now, and while I've had some successes, I've also faced some challenges along the way. I know I'm not alone in this, and I want to hear from you all too! I believe that we can all learn from each other and grow as traders, which is why I'm reaching out to the TradingView community. If you're comfortable, I'd love to hear about your own trading struggles. Whether you're just starting out or a seasoned pro, I think we can all benefit from sharing our experiences. Moreover, we all know how lonely this journey can get, so sharing and learning from other's struggles could improve our mindset and the way we tackle the losses, as well as the success. Personally, I struggle the most with keeping a trading journal organised and use it as a feedback loop, improving my trading strategy. I have tried for a while to keep track of my trades in apple notes, but it gets frustrating when you try to actually learn and discover patterns in your errors. On the other hand, another struggle comes when my emotions take over my strategy, and I have been searching desperately for tools and ways of fighting this urge. Leave a comment of your biggest or most uncommon struggle and let's improve our trading skills by sharing!
OANDA:XAUUSD
by m_maia14
Trading Success Through Journaling: Reflect, Learn & GrowHello traders, today we will talk about how journaling can be a really helpful tool for you in your trading journey. Journaling is a simple yet powerful tool that can help you gain insight into your mental and emotional state, identify patterns and triggers, and make more informed decisions. In this post, we'll explore how you can use journaling to improve your trading performance. 1. Reflect on your emotions: After each trade, take a moment to journal about your emotions during and after the trade. This can help you identify patterns in your emotional responses and provide insight into how certain emotions may affect your trading decisions. 2. Identify triggers: By journaling about specific events that preceded a trade, you can identify the triggers that lead to your emotional responses. This can help you take steps to manage your emotions before they affect your trading decisions. 3. Evaluate your decision-making: After each trade, take a moment to journal about the decision-making process you used. This can help you identify any biases or patterns in your decision-making that may be affecting your trading results. 4. Set goals and track progress: Use journaling to set goals for your trading and track your progress over time. This can help you stay motivated and focused on your long-term goals. 5. Increase self-awareness: Journaling can help you become more self-aware of your thoughts, feelings, and behaviors. This can help you identify any negative thought patterns and work to change them, which can lead to improved trading performance. To make the most of journaling, you should be honest with yourself and write down what you truly feel and think. Journaling is a powerful tool for reflection, learning and making adjustments for the future. It's important to note that journaling is not a standalone strategy, but rather it's a tool that can be used in conjunction with other analysis and indicators to inform trading decisions. Also, you don't need any specific equipment, just a pen and a notebook, and you can journal at any time. In conclusion, journaling can be a powerful tool for traders looking to improve their performance and manage stress. By gaining insight into their mental and emotional state, traders can make more informed decisions and improve their overall trading results. Give it a try and see how it can help you in your trading journey. I would love to hear about your own experiences with journaling in trading. Please feel free to share your thoughts, feedback, and tips in the comments section below. Your input and feedback is valuable to me and to the trading community!
Education
by m_maia14
40
How not to miss an opportunity. I found out about Bitcoin many years ago when it was in prime time only to be associated with organized crime , scams, and money laundering. And that remained deep in my mind. Since jail seemed a bad idea, I convinced myself that crypto it’s not for me. As time went by, I didn’t see the good fortune because my mind was still relating Bitcoin to a dark area . Something kept me from buying and I didn’t know what. As I was on the dark side, I am now thinking that the ones who listened to another side of the story, the winning side, greatly benefit from it. Later I found out that psychologists have a name for my burden and it’s called Anchoring bias . It is described that first introduced knowledge on a subject has a great impact on our later decisions . The first details I come upon Bitcoin unconsciously affected my judgment and kept me in a do not act state of mind and made me miss my chance. That’s when I found some ways to improve my decision-making process and to look at data from another perspective , which I am going to share with you. But first, let’s take a glimpse at anchoring bias, an error of our mind present in many aspects of our lives, which usually works against us. Picture yourself in a shop on Black Friday. Would you buy an item for 150$ and how would that make you feel if you knew that it was discounted from 200$? We tend to look at the price of 200$ as an anchor that quickly drives our behavior to a decision to act. Similar to adjustment bias, comparing the 200$ item now seems like a bargain. The same thing happens in trading. How do we know whether a stock is overpriced or not? By comparing it with past quotations that act as an anchor. Is BTC overpriced at 20k? We all would agree that in 2017 it was, but how about now? These anchors make us act unwisely and take unconscious decisions with small returns. This could lead to unsatisfying results, frustration, or wipe our account over the long run. Once you get better at identifying the anchoring bias, you can use it to your advantage. Think about what makes good and strong support & resistance. The perception is that a large number of investors credit that bid as a fair value for them. So what should we do? T o have a better understanding of what drives our choice it’s important to double-check our mindset, emotions, and the data that we encounter. Does it help us or it could be a potentially harmful anchor? What is the context of the news? In the example above, could we consider solely that 150$ is a fair price, without the 200$ price before the discount? Also, if you have a strong assumption about a subject, try to look at other points of view, not to change your mind but just to reinforce the reasons you already have. Remember that the first step into overcoming a bias is to be aware of its presence and next just look inside you to find proof that drives your decisions. So, let’s recap Find context - Figure out if the price you set for your buy order is a fair one or if you find it good compared to the day before. Find anchor - Do I want to invest in this company I have never heard of before just because my cousin thought it was a good idea? Observe - Do I have doubts about this buy? Do I follow my plan or I am unconsciously driven to make this purchase Review - Have I looked at other oppions?
COINBASE:BTCUSD
by TheSimpleThinking
THE MOST USEFUL TRADING SITES ...and how to utilize themIn this post, I will share the some of the most useful trading sites that are available to you and how you are able to utilize them to your advantage whether it's for fundamentals, charting, analysis, performance tracking, news events or just to follow your favorite professionals and their ideas & education that they share publicly. First and foremost, if you haven't made this your PRIMARY trading platform, I want to encourage you to use and SUBSCRIBE to TRADINGVIEW As we all evolve as traders, I'm sure we can all relate to one thing in common which is hard work and dedication. Trading is one of the hardest professions out there and without hard work, practice and dedication, we know that 90% of traders fail to make it in this industry. TRADINGVIEW gives you all the resources you need to be able to become one of the 10% as it enables you to become a content creator, it gives you a community to research ideas, you're able to watch livestreams, catch news flows, back test & analyze your own strategies and most importantly of all, you have direct support team to help guide you by sharing their own personal trading experiences, publicly as well as privately. Whether your choice of market is Forex, Stocks, Crypto, Bonds, Futures, Commodities or Yields, TRADINGVIEW has all the tools to be able get you well on your journey to become a professional trader. See Figure 1: Subscriptions WWW.MYFXBOOK.COM MYFXBOOK has a variety of different tools to use ranging anywhere from position size calculators, COT data (Commitment of traders), Broker spreads/quotes/volumes, news flows, correlations and most importantly, account linked performance analysis. You may be a full time trader or a part time trader with a 9-5 job, either way analyzing your entries, exits, RR ratio, drawdowns etc. are necessary to find what works and what doesn't. Trading is about probabilities and if you're not making money in 25 trades, you need to reanalyze and change your approach. Myfxbook.com allows you to link your trading platform to breakdown your performance, ultimately being your own coach to find the approach that suits you the best. See Figure 2: Performance Stats WWW.TRADINGECONOMICS.COM As many different crises happen throughout the world (especially the most recent ones within the last few years), understanding how the Federal Reserve operates to manage monetary policy is key to get an edge in your positions in the forex market. TRADINGECONOMICS gives you all the accurate information needed to be able to forecast and research throughout 196 countries like, economic indicators, exchange rates, stock market indexes, government bond yields and commodity prices. Micro and Macro economics are a big part of how this world operates and having access to all the most important information that drives the Feds decisions due to the economy being split between these two realms are valuable as they could be bridged together for more accurate forecasting. See Figure 3: Inflation Rates/GDP Growth (By Country) WWW.FOREXLIVE.COM FOREXLIVE has many different helpful resources to keep you up to date in the market no matter what time zone or trading session you take part in. As our lives are busy with family, day jobs, business endeavors or simply being in different time zones, you may not be able to watch all sessions play out and in fact, taking a break from the screen is healthy for your mind and emotions. The great thing about FOREXLIVE is that you are able to read Session Wraps to keep you up to date with a summary after each session (Asian, European, U.S) completes. Psychology is a big part of why a trader either succeeds or fails which balancing your time on and off the markets are important to detach your emotions from your positions. Set a plan for how many times you will scan the charts a day and fill that in between time with activities like exercising, reading, chores, spending time with your family, going for a walk and much more. See Figure 4: Session Wraps WWW.INVESTOPEDIA.COM INVESTOPEDIA was founded in 1999 headquartered in the heart of New York city U.S. This website provides comparisons of financial products, reviews, ratings, comparisons of different financial products and most importantly, it is a financial dictionary. With the broad range of information provided, it gives readers the confidence to manage every aspect of their financial life. Whether you're learning about money and investing for the first time or are looking to improve your knowledge and skills, anyone from an experienced investor, a business owner, a professional, an advisor, INVESTOPEDIA has all the information to build your skills. See Figure 5: 4 Basic Things to Know About Bonds/Key Takeaways WWW.INVESTING.COM INVESTING.COM is a well known site that offers real-time market quotes, information about stocks, futures, options, analysis, commodities and most importantly an economic calendar. Keeping an eye out for the high impact news events will help you adapt and control the volatility during those peak hours. Another helpful aspect of this site is knowing what will drive the market mood for each upcoming week. The top 5 most important fundamental areas to watch for are explained and broken down to help your forecast and analysis so you can prepare your trade setups accordingly. Applying fundamental analysis along with technical analysis will help you become a better trader as when the high impact news events hit, markets get volatile which could cause a running profit turn into an absolute loss. Knowing when to be in or out of the market is valuable so you don't go into a draw down phase. See Figure 6: Economic Calendar As I only have mentioned a small number of sites that you are able to access, we all know there are so many other ones available out there, paid and free. Researching and spending the time to read to broaden your knowledge in the financial world will only help you grow as a trader and essentially improve your trading results. Check out some more free sites: www.fxstreet.com www.dailyfx.com www.forexfactory.com www.babypips.com Please share the site that most helps you in by leaving it in the comment section. I would love to see the variety of ones available. ** If you felt this was helpful in anyway, please support by hitting the LIKE button and FOLLOW me for more educational and analysis ideas ** I appreciate all the feedback! Thanks Trade Safe
Education
by ktlfx
1
Why is so hard to exit a losing trade?Think about a trading situation where you find yourself in a losing position without a stop loss. You have the option to take a certain loss or just continue to see what happens. Exiting the trade could help you minimize your loss, but why do you delay to make a move? Psychologists explained that we favor to believe that actions can do more harm than inactions, even though the result could be similar or painfully. So, in a trading instance we feel that our action – to exit a losing trade immediately – could have a bad outcome than our inaction. This mind flaw was named as the omission bias. We fail to step in because our misunderstanding of our feelings about the future outcomes. So next time when you have a trade going against you, think about what consequence inaction could have to your portfolio.
COINBASE:BTCUSD
by TheSimpleThinking
How to achieve profits by managing emotions?Market fluctuations are often a direct reflection of the emotions of market participants. Managing and controlling emotions is essential for successful trading. If you cannot control your emotions, you will suffer from impulsive emotional behavior and make bad decisions, which will harm your trading performance. Negative emotions such as fear, hatred, anger, greed, jealousy, pessimism, and despair can lead to negative consequences for traders. Traders who have negative emotions may lack the ability to leave positions, refuse to accept reality, and blame others, resulting in selling positions only after a long period of price declines, missing the best buying points, and selling too early. Negative traders may also regard failure as a negative, significant, and final result, attributing losses to their own shortcomings or negligence. Everyone experiences various emotions, but people with high emotional intelligence can better manage their negative emotions and vent them appropriately. Emotional control skills can be developed through practice, but it is important to note that this process is a long-term and systematic one. Traders must be psychologically prepared for this. Therefore, no matter what happens, you must control your impulsive emotions. Take a deep breath for 10 seconds, then choose the best course of action. This often leads to more rational and correct decisions. Do not make decisions when impulsive, and do not make promises when excited. By managing your emotions, you gain control over your life. There are various emotions in life, and you must learn to manage and control them. Do not be a slave to your emotions. Manage your negative emotions and cleverly transfer them . Similarly, controlling emotions in life determines emotional control in trading. The three stages of emotional failure leading to trading losses are: 1) being careless before unexpected events occur; 2) being panicked after unexpected events occur; 3) being eager to make up losses after suffering losses. The solutions are as follows: Always respect the market and trade with caution. Approach the market with a trembling, cautious attitude. Once you suffer losses, do not panic. Stop trading temporarily, find the cause, identify the problems, and improve your system. Impatience is the biggest reason for traders' losses. Heavy positions are impatience, opening and closing positions without signals is impatience, frequent trading is impatience, adding positions is impatience, which is essentially greed, wanting to make money quickly. Be patient, make calm decisions, and the market will reward you.
INDEX:BTCUSDEducation
by triumphing
7 Reasons why Elite Traders Crush the CompetitionHello TradingView world, I have been trading for almost 15 years and have learned some serious lessons about trading and the markets. I have also been fortunate enough to interact with many great traders over that time that have helped me tremendously, however I still struggled for a long while and wondered why I wasn’t making the progress I desperately wanted to make. I thought just like everyone else, that if I found the perfect trading strategy, all of my problems would vanish and profits would rain down from the sky like salt bae letting salt drip down off his forearm. Well guess what happened? I ACTUALLY DID FIND IT. In fact, my analysis in the market was so damn good that in 2013 I was invited to speak on a worldwide webinar hosted by Daily-FX which was then owned by FXCM. I’d have a 50 pip stop with a 500+ pip price target and I was nailing the trades left and right, so this was the reason I was invited on. I was working at the Federal Reserve Bank of New York during this time and I ended up leaving that job to trade full time that same year. Things went smoothly for a while. I partied… A LOT. Did all kinds of reckless and stupid things with my time and money and I ultimately lost it all by 2015. I pondered for a long time about what happened and once I removed my ego and stubbornness, I figured out that what makes a trader great has nothing to do with the outside and has everything to do with the inside. This is the TRUE secret of trading success. It’s all about YOU and how YOU approach trading. There is so much more to the story but without further hesitation, based on what I have learned from other great traders and have personally learned through brutal hard lessons, this is why Elite traders crush everyone else in the market and if you begin employing these lessons in your own trading, I can guarantee that you will see a dramatic change in your results. #1 - ELITE TRADERS ARE LEAGUES ABOVE YOU IN PATIENCE Everyone gets into trading for one thing and one thing only; to make money and to make as much of it as possible. One thing that the majority of traders do is that they also want to do it in the FASTEST way possible. This is where they screw up but is it any surprise that this is the case? I mean look all around you in terms of social media (Facebook, Instagram, YouTube, etc.) it’s all over the place with people touting “Watch me turn $1,000 into $10,000 in just a few days!” … This gets views, it gets attention and it encourages other traders to continuously take on massive risks in order to achieve this. Is it possible to do? YES, because many traders (Including myself) have done it but what does it also do? It creates detrimental habits that keep you in this mindset of turning a small account into a large account quickly and then that one day comes when you take on massive risk on a trade that looks “good” but ends up going violently against you for a huge loss or COMPLETE destruction of your account. Another factor is that the majority of traders want to be in the market ALL of the time. They can’t resist staying out and staying flat during times of uncertainty or when the charts aren’t clear enough to validate putting their capital at risk. Elite traders can wait hours, days and even WEEKS before putting on another trade because they understand, their trading opportunity is not yet clear and they rather wait as long as possible in order to enter the market at the most optimal time and conditions. Think about it; do you want to be in the market on a consistent basis? Are you able to wait a few days or a few weeks before putting on a new trade? It’s a very difficult thing for many traders to do while Elite traders have mastered the game of patience to their advantage. It’s not a matter of how long is the next trade going to take to develop? Rather, I’ll take the next trade when the optimal conditions are met regardless of how long it takes. #2 - ELITE TRADERS KNOW THEIR OWN WEAKNESSES Everyone has weaknesses whether we like to admit it or not. Some traders are severely impatient, some have a problem with risk management, some have a problem with making impulsive trades and become reckless, some have a problem with over analyzing their charts or trying to look at multiple markets at the same time, etc. Most traders either try to suppress them or choose to ignore them completely and this causes many to struggle and stay frustrated. Have you ever thought to yourself, “Shit, why did I do that!?” or “Why did I get out when I should have stayed in” or “Why did I chase it! I knew I should have stayed out” … There is a weakness there that you have not learned to master or work on improving it. Even if you finally acknowledge it and try to write it down or post it on your wall by your trading desk… You STILL end up making that mistake and frustration takes over. Elite traders through trial and error have learned to master their INTERNAL trading character. They know what triggers them and have found a way to stop it in its tracks so that mistakes are kept under control. They also understand that when these weaknesses start to creep up on them, they can identify WHY it’s happening and talk themselves out of it. For example, if the market is rising and it looks like it’s going to get away from them, they understand that by chasing after it, the market could turn around and leave them with an unnecessary loss or trap them in a position that they should have not gotten into in the first place. Their attitude is “The market did not give me the optimal trading opportunity that I wanted therefore I will wait. Let the market do whatever it’s going to do, I don’t care. I only care about my optimal trading opportunities” This tie’s in with reason #1 (Patience). They will not let ANYTHING force them into trades they shouldn’t be in. #3 - ELITE TRADERS FOCUS ON ONE MARKET/PAIR/SECTOR This is not only true of trading but life in general, focusing on one thing and mastering that one thing to become great at it. There are a multitude of instruments and markets to trade and it gives us traders the freedom to choose where we’d like to put our capital to work but as many of us know, too much choice can actually be a bad thing. When it comes to the Forex market, we have many pairs we can work with and that can actually be a problem. Everyone has a watch-list of pairs that they want to trade but is that causing you more trading struggles for you or keeping you confused? Whether the answer is yes or no, why are you doing that? And the answer is most likely because you believe it presents more trading opportunities but that is not always the right way to go about things. Each pair moves and reacts differently during certain market conditions and what works well on the EUR/USD may not work on the GBP/JPY. While the EUR/USD moves at a more stable pace and a big day would be considered a 1% move, the GBP/JPY can become wildly explosive and relentless when it comes to market volatility. Elite traders know this and they stick to ONE thing and become a master at it. I personally stick to the EUR/USD and that is MORE than enough to make profitable trades on. Elite traders do not divert to other markets or other pairs to try and make more profits but they lock down and focus on that one pair and crush it. It’s not common for the majority of traders to do this because they feel that they will be missing out on other trading opportunities but are they really? Or are they just finding multiple ways to take losses? In order to trade this way, it would require the ability to stay incredibly patient but it would allow for you to stay away from multiple charts and remain disciplined while not putting your capital at risk and avoiding impulse/emotional trades. This is not common but then again… this is why Elite traders do it and the majority does not. #4 - ELITE TRADERS PREFER A LONGER TERM OUTLOOK Just look at the screenshots of charts scattered on trading forums, social media or any other discussion outlet, more times than not everyone’s looking at the 1 Minute all through the 4 Hour time frames. You’ll find a few daily charts here and there and even less Weekly+ charts. Most traders want to be in the market every day and this is why Day trading is so enticing, it gives them a reason to log in, open up their charts and look for trading opportunities to make money. That’s a Mistake. You’re probably noticing that the previous 3 reasons tie into this reason and that’s because this is just another manifestation of lack of patience or inability to focus on one thing. Short term charts give the impression that there will be more moves to get in and out and not staying in a position overnight. Yes, I get that some traders out there prefer to just get into the market and then be done with it at the end of the day but more times than not, you’ll end up making impulsive trades that creates a string of losses if you don’t have your emotions in check. Elite traders like to look at the “whole picture” and prefer looking at the daily charts and up. Since longer time frames take time to develop, this is perfectly fine for them as it gives them more time to prepare for the upcoming trade and analyze the levels, they want to take a position and take profit. Once they enter a position, they set their stop and let the market work for them. They don’t need to check their positions multiple times per day since they know the market will take its time doing what it’s going to do and therefore have time for other activities in their lives or businesses. #5 - ELITE TRADERS VIEW TRADING FROM A BUSINESS PERSPECTIVE “How much can I make per day”, “How much can I make per week” or “How much can I make per month” … This is what you’ll usually hear from the majority of traders but how many times have you heard “We’ll see how performance looks at the end of the Quarter”? I’m willing to bet, not many. There is a lot of hype about how much can be made in one day or week but trading is not about just one day, one week or one month, it’s about the long game and how results look over time. Some Elite traders even go as far as looking at profit-loss on a yearly basis but because market conditions change throughout the year, reviewing how performance looks like at the end of the quarter is preferable. There is no rush to try to make a gain at the end of the day, week or month. Spacing out P/L review allows opportunities to both develop and play out especially if the market is trending. Elite traders don’t mess around in the market either, this is not a game or hobby for them while many amateurs in the market don’t take it as seriously as you would think. They know that the market is a battlefield and the other side of the trade won’t hesitate for a Nano-second to take their money. They understand that trading should be treated with the same care as running a business and properly deploying their capital out into the market is essential in bringing back even more capital for future trading opportunities that yield larger profits. Although trading is now offered to the masses and anyone can pretty much open a brokerage account and begin to trade, there are millions of traders that are misinformed and approach the market incorrectly and unprofessionally. “But, I’m not looking to trade professionally, I just want to trade casually” sure, that is completely fine however guess who’s going to eat you alive in the markets? That’s right, the Elite traders who do take things seriously and professionally. #6 - ELITE TRADERS PROTECT THEIR CAPITAL AT ALL TIMES In the boxing world, what is one of the warnings referees issue to the fighter’s right before the fight begins? “Keep your hands up and Protect yourself at all times!” and for good reason, right? So that they do not put their hands down and get a crushing hard punch to the head that knocks them out cold. It doesn’t matter how well you trained or for how long you’ve trained because one lazy mistake can cost you the fight, in some cases brutally. If you’ve been in the trading scene for any length of time, you have read or heard it countless times “manage your risk, manage your risk, manage your risk!” but how many traders ACTUALLY do it? You’d be surprised at how many do not do it at all because it’s painful to do. Painful? How so?... Well, it requires one to make small gains over time instead of putting the pedal to the metal and use high leverage on one single trade. That’s very difficult for the majority of traders to do because that means no “Account Flips” or trying to hit a homerun trade every single time and let’s face it, everyone is trying to get “rich” quickly. Elite traders know that just one mistake of not practicing sound money management by either not using a stop loss or using too much leverage can be extremely dangerous to their account and they know that it’s just not worth it. On another note, they understand that following risk control is instilling good and strong habits for their subconscious mind and it will carry along for the rest of their careers if they just stick to that simple principle. If there’s one major reason the majority of traders fail while a small percentage of traders make money consistently, it’s a lack of risk management and account/capital protection. Before you step into the unforgiving arena (Forex) be sure to protect your account at ALL times! Keep your "Guard" up and play defense! #7 - ELITE TRADERS AVOID DISTRACTIONS AND NOISE This is a pretty interesting and controversial one. It can be difficult to ignore the distractions and noise because us traders want to be part of a group or community so that we can share ideas and forecasts along with everyone else but sometimes, you’ve got to be careful with this. You may have an idea or outlook that goes against what others think is going to happen and it could get you off track. You may have experienced this a few times where you believe the market is going to go in one direction and others share the complete opposite view which then causes you to doubt your analysis. You end up cutting the position too early for fear of being wrong and ultimately the market goes in the direction you thought it would and you’re left frustrated. Distractions can also come in the form of upcoming economic data such as the Federal Reserve coming out with Interest Rates or its chairman Jerome Powell talking about certain economic projections. Volatility spikes up and it sucks you into the hype but if you have a sound trading strategy and rules, you may have noticed that even during high volatility, the market still respects order on the charts. It just moves as a faster pace. I have personally experienced this through my years of trading, in fact a recent memory comes to mind in 2020. I was invited by an online friend to a private Meta trading group and I wanted to offer some help and insight into what I knew, so I shared a screenshot of my outlook of the EUR/USD going forward. It was a powerful chart pattern I had seen countless times on the weekly chart and the EUR/USD was trading around 1.0850. Once I shared my screenshot calling for the Euro to make a strong 1000+ pip move and trend towards 1.2000 to 1.2200, some other group member immediately called my analysis a joke and that chart patterns were garbage and useless. I was going to retaliate back but I thought to myself, this is childish, unprofessional and really unproductive, so I immediately left that group. My friend apologized and said the other guy had a chip on his shoulder because he was former banker for a massive global investment bank (I won’t say which one but I can guarantee you, everyone knows it). I appreciated the apology and left it at that. I the end, all that mattered to me was that as the months went by, the EUR/USD did in fact trend towards the exact projected price levels. That was a lesson for me to avoid detrimental opinions from others. Elite traders know about this type of noise and are sure to remove any of that from their trading. This is why many stay “undercover” and you don’t really hear about them. They stay under the radar and just do what they do and do it well. The overall lesson here is that a community should be about helping others and uplifting them, even when they’re wrong. No matter how great a trader is, he/she still deals with losses and nobody is ever correct 100% of the time. Trading is already difficult, so by encouraging and helping others become better at trading the markets, everyone improves as a whole. Conclusion There you have it, just some of the basics of what Elite traders do and what has transformed my own trading results tremendously. We all know that there are a variety of ways to approach the market but if there is one takeaway from all of this is that, Top Level traders have learned to master themselves and how they mentally approach trading. It’s actually quite simple and straight forward however it can be hard to implement in real time but that doesn’t mean that it cannot be done and transform your own trading. I wish you the best in your trading journey. I personally know it can be VERY tough but it's well worth it. Keep at it and never give up.
Education
by InternalTraderNYC
4
How to Create a Trading Plan for Trading Success! Hey Traders so I figured because it's a new year why not start the year off right by setting us up for success. Having a trade journal or Trading Business Plan may be one of the most overlooked aspects of trading. However in my opinion it will separate those who are successful from those who are not. Trading is a game of probabilities and odds. Mistakes made are sometimes be very costly. Sticking to your trading plan along with money mangagement will allow us to survive the storm that we may face in the event of a drawdown. Also when we are up and riding the wave it will keep us from letting Fear, Greed and Hope getting in the way of profits. Enjoy, Trade Well Clifford
COMEX:GCG2023Education
by TradeTheIndex
2
#DXY Emotion Zones 😁😐😡😥This chart lays out the different potential pivot areas for a bounce in the #DXY. Each pivot zone could be correlated with an emotional level of the market. We can see that the DXY has not yet reached the 0.618 Fibonacci retracement level. This obviously does not have to happen, however this could potentially outline that we are currently coming out of the anger phase of the market and will move now into the depression phase of the market. If markets do better than, then I could see us moving down to the second pivot zone (The "Meh" Zone) which would move the market into a boring sideways sort of phase. Then, hopefully, a break of trend moving the DXY down to below the 0.236 Fib level (The "Happy" Zone), which may bring us into the beginning of new bull market. Then, a move below the last swing low could correlate with a new high in most equity markets. **This is my opinion based off of chart data. This is not financial advice.**
INDEX:DXY
by DoozerInvest