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Are you revenge trading 😖🤔Revenge trading! It all catches us all out at some point in our trading journey's. The markets don't care about your loss and neither should you! Losses are a part of trading and have to be accepted. No one can be right 100% of the time regardless of method used. Revenge trading will add to those losses and compound that account draw down even more. Irrational emotions have no place in trading and they are what lead to revenge trading. The way to eradicate this issue is by going about your trading a logical manner. First off is build or use a strategy with a known proven edge. Second is follow that strategy to the letter and only enter trades when all your parameters/confluences are met. The markets take from the impatient and give to the patient ones. The example I am using on chart is using a trend following strategy of our own. This strategy is a good win percentage and I know that as the built in strategy tester shows me all the stats. As always the report box is at the bottom of the idea showing those very stats. A 61% win rate means losers still happen and as you will see on the chart the buy trade hit stop loss before price went on an upward trend. The old trader in me would of been pouring over this chart trying to guess which way will it go? What should I do enter a long again? That would of paid of in this instance but not the logical thing to have done it would of been luck and luck only. Who knows with emotions at play would I of had a thought the price was going to head down? Then place a sell order? Luckily I didn't have to make any of those choices with emotions at play. I accepted the loss on the fact I know I'm trading a proven strategy and I simply waited for the next trade alert and let probability play out. The next trade was a short that found it's intended take profit target. This process is more simpler for those who are using a mechanical trading system like the one on chart. But regardless of system or approach in use if you are following the trading plan to the letter revenge trading shouldn't occur. Find an edge, apply that edge, stick to the proven plan and revenge trading won't be your issue. Instead you'll be one of the patient ones that the market is giving to 👌👍 ------------------------------------------ I try and share as many ideas as I can as and when I have time. My trades are automated so I am not sat in front of a screen daily. Jumping on random trade ideas 'willy-nilly' on Trading View trying to find that one trade that you can retire from is not a sustainable way to trade. You might get lucky, but it will always end one way. ------------------------------------------ Please hit the 👍 LIKE button if you like my ideas🙏 Also follow my profile, then you will receive a notification whenever I post a trading idea - so you don't miss them. 🙌 No one likes missing out, do they? Also, see my 'related ideas' below to see more just like this. The stats for this pair are shown below too. Thank you. Darren
Education
by pow_removetheguesswork
Psychology of OTHER People in the Market Matters More Than YoursMorning Traders - The next in our series of education posts is going to focus solely on Psychology. specifically regarding the psychology of OTHER people in the market. Once you nail this topic its going to give you a huge edge on the market. Any trader is always looking whether the next few price swings are going to be bullish or are they going to be bearish? That is the essence of trading - If you know the next few price swings are going to be bullish then it makes it easy to make money right?! Once you have this identified then you simply just need to time your entry, the safest way to do that would be to be watching for a short term pullback against your bias of where the price swings will be headed. Its important that when looking at these price swings, you watch HOW the price moves, don't need to concern yourself with any chart patterns or candlesticks, but ask yourself as you watch the price move, is the price moving with strength or weakness? If price is pulling back from your bias with weakness then this is an opportunity to place your entries and wait for the price swings you have anticipated. If price pulls bask with strength then it could be time to consider you bias again and stay on the sidelines. The real key when analysing price action both in the long term price swings you see and in each movement within those price swings is the psychology of everybody else that is trading in that market with you. Much has been written and spoken about regarding making sure you own mindset and psychology is right within trading but I personally feel understanding how other people are feeling within the market is worth so much more. Once you understand how other people are feeling, their emotions etc then its becomes easier you predict their actions. One of the most powerful emotions we feel that affects our decision making is fear. Im sure everyone can easily anticipate the actions of a fearful person, so we just need to translate that into the chart. So start watching where are people getting trapped into bad positions? When are they feeling fearful that they made the wrong trade? When are they praying for the market to turn around? These are the traders you want to target because by their nature these are weak traders and likely unprofitable ones, you want to watch for points in the market where these traders know they have got it wrong.. So you should be looking to take the other side of their trades and profit from their mistakes. The other major aspect of fear you should look for in markets is FOMO. Fear of Missing Out. You see this type of emotion ALL the time in markets, its essentially the market equivalent as when you see people run for the tube / underground as the warning beeps have started and doors are closing... People who have been sat watching the market for a while suddenly see it moving in one direction and start running to enter the trade as quickly as they can... the psychology of this is that they will likely enter with the wrong position size, they haven't analysed the new market conditions that were different from when they were watching the market before, and most importantly their risk management has now gotten out of control. When you see after an already strong price movement that it starts to slow down momentarily and then rockets again in the same original direction - This is typical of FOMO trading. Its wise when you see this to start thinking about places some trades opposite to these traders. So when people say you should analyse price action - this is the most powerful way to do that. Its not about head and shoulders patterns, its not about doji candles or anything else you hear spoken about... Its simply about human emotions and how they are expressed within the charts. To be successful you need to start identifying the moments and points in the chart where you know people will buy after you have already brought, or where they will sell after you have already sold.
Education
by JoelWarby
NZDCAD to come downThe chances are very high the pair will come down in the nex few sessions. The impulse-correction relationship is very obvious on the chart. This brings us to a conclusion that there is going to be at least one more down move back to the trendline. However trading this pair might require experience and skills. This night the RBNZ (the Bank of New Zealand) decides its interest rate. Therefore all kiwi moves might be very rough. Fractology recommends trading this pair when there is a clear breakout. As soon as the pair reaches the trendline, it will be safe to put your trade to breakeven and watch if it goes down to the daily trendline.
Short
by AleksandrLombrozo
EURUSD selling opportunityEURUSD has been under a lot of buying pressure for the last two weeks. Fortunately, markets do not move in straight lines. Markets give us a chance to enter short positions when a price is heavily overbought. I assume such overbought conditions are clearly visible on EURUSD chart. In terms of wave theory, it is highly likely the price will go down if it violates the pattern line. it would be reasonable to wait for that break and then sell after a period of a small correction.
Short
by AleksandrLombrozo